Environmental Impact Report

E1153 v 4 Public Disclosure Authorized

Environmental Imapct Report

For

Public Disclosure Authorized Technical Innovation Project

Of Public Disclosure Authorized

Nanjing Iron and Steel United Co., Ltd Public Disclosure Authorized

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Table of Content

1 GENERAL...... 5 1.1 Foreword ...... 5 1.2 Compilation evidences ...... 6 1.3 Evaluation Principles ...... 8 1.4 Pollution Control Goal ...... 8 1.5 Evaluation emphasis and job grade ...... 8 1.6 Evaluation range ...... 9 1.7 Evaluation factor ...... 10 1.8 Evaluation standards ...... 10 1.9 Evaluation of the technical route ...... 15 2 CIRCUMJACENT ENVIRONMENT GENERAL OF CONSTRUCTION PROJECT AND ENVIRONMENTAL PROTECTION TARGET...... 17 2.1 Circumjacent environment general of construction project ...... 17 2.2 Local social environment summary ...... 20 2.3 Local social development plan ...... 21 2.4 Classfication of environmental functions ...... 27 2.5 Sensitive objects of environmental protection ...... 28 3. GENERAL OF CONSTRUCTION PROJECTS ...... 29 3.1 Name, characteristics, site and investment of the projects ...... 29 3.2 Others about the project ...... 31 3.3 Production scale, product mix and production performance of the project 31 4. PROJECT ANALYSIS ...... 32 4.1 Existing project analysis in NISCO ...... 32 4.2 Engineering analysis of construction projects ...... 53 4.3 Pollutant discharge status after technical technical innovation incordination project actualization...... 84 5 COMMENT ON POLLUTION PRECAUTION MEASURES ...... 92 5.1 Comment on pollution precaution measures for waste gas ...... 92 5.2 Precaution measures to waste water pollution ...... 94 5.3 Comment on noise precaution measures ...... 98 5.4 Precaution measures comment on solid waste ...... 99 5.5 Precaution measures comment on buildingup /put into use/ start-up .... 100 5.6 SANITARY PROTECTIVE DISTANCE ...... 101 5.7 Greening in plant area ...... 101 5.8 Sewage standardization setting ...... 104 5.9 Inspection schedule of three simultaneous environment measures of the construction project ...... 105 6. ANALYSIS ON CLEAN PRODUCTION AND CYCLING ECONOMY ...... 114 6.1 Purpose and function of clean production and cycling economy ...... 114 6.3 Clean production analysis of primary raw materials, materials and fuels 117 6.4 Features of production process and analysis on advantage ...... 118 6.5 Comments on water-saving, energy-saving and consumption lowering measures ...... 118 6.6 Comparison and analysis of raw and accessory materials, energy

2 Environmental Impact Report consumption and blowdown of unit products ...... 120 6.7 Analysis of cyclic economy ...... 131 7. INVESTIGATION OF POLLUTION SOURCE IN THE REGION ...... 134 7.1 Investigation and analysis of air pollution source in the evaluated area . 134 7.2 Assessment of water pollution source ...... 136 8 CURRENT STATUS ASSESSMENT OF ENVIRONMENTAL QUALITY ...... 140 8.1 Current Status Assessment of Atmospheric Environment Quality ...... 140 8.3 Existing status and effect assessment of acoustic environment ...... 153 9. ASSESSMENT AND PREDICTION OF ENVIRONMENT EFFECTS ...... 160 9.1 Assessment of atmospheric environment effects ...... 160 9.2 Impact Assessment of the Surface Water Environment ...... 181 9.3 Existing situation assessment of acoustic environment ...... 181 9.4 Analysis of environment effect by solid waste ...... 188 10 ANALYSIS OF GROSS CONTROL FOR POLLUTANTS DISCHARGE ...... 189 10.1 The purpose of gross control ...... 189 10.2 The principle of determining gross control factors ...... 190 10.3 The change of gross discharge after the implementation of technical updating & matching project ...... 192 10.4 Analyses of gross control and balancing scheme 193 11 ANALYSIS OF ACCIDENTAL ENVIRONMENT RISK 193 11.1 Factor of project risk ...... 193 11.2 Assessment of environment risk ...... 194 11.3 Blast furnace gas and accident risk forecast ...... 196 11.4 Conclusion ...... 200 12 THE ENVIRONMENTAL IMPACT ANALYSIS FOR DOCK BASIN ENGINEERING ...... 200 12.1 Project situation ...... 200 12.2 Loading and unloading situation ...... 203 12.3 General layout ...... 204 12.4 Construction scheme ...... 206 12.5 Cooperative engineering for proposed project ...... 207 12.6 Diagram of water balance for the whole area ...... 208 12.7 ANALYSIS ON POLLUTION SOURCE IN THE CONSTRUCTION PERIOD ...... 209 12.8 Analysis on pollution sources in operation period ...... 212 12.9 Pollution prevention measures ...... 217 12.10 Analysis on environment impact in the construction period ...... 221 12.11 Analysis for impact on ecological environment ...... 224 13 ANALYSIS ON ENVIRONMENT IMPACT IN CONSTRUCTION PERIOD ...... 227 13.1 Analysis on atmospheric environment impact in construction period ...... 227 13.2 Analysis on construction noise environment impact ...... 227 13.3 Analysis on water environment in construction period ...... 228 13.4 Analysis on environment impact caused by construction wastes ...... 229 14 FEASIBILITY ANALYSIS ON PROJECT SITE SELECTION ...... 229 14.1 Analysis on consistency between site selection and planning ...... 229 14.2 Analysis on site selection condition ...... 230 14.3 Analysis on general layout ...... 230

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14.4 Analysis on width of sanitary protection zone ...... 231 14.5 Conclusion...... 232 15 ENVIRONMENTAL POLLUTION MONITORING AND ENVIRONMENTAL PROTECTION MANAGEMENT PLAN ...... 233 15.1 Environment monitoring plan ...... 233 15.2 Environment management system and monitoring apparatus & equipment 234 15.2 Environment management system ...... 236 15.3 Suggestion...... 237 16 PUBLIC PARTICIPATION ...... 238 16.1 Function and purpose of public participation ...... 238 16.2 Methodology, investigating content and respondents for public participatio ...... 238 16.3 Investigating result of public participation ...... 239 17 PROFIT AND LOSS ANALYSIS ON ENVIRONMENT IMPACT...... 242 17.1 Economic Benefit Analysis ...... 242 17.2 Social Benefit Analysis ...... 246 17.3 Environment Benefit and Loss Analysis ...... 247 18 CONCLUSION AND REQUIREMENT...... 248 18.1 Conclusion ...... 248 18.2 Suggestion and requirement...... 251

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1. General

1.1. Foreword Nanjing Iron & Steel United Co., Ltd. (hereafter called ‘NISCO’) ranks among Jiangsu province key enterprises, which developed gradually from the former Nanjing Iron & Steel Plant. After the development for over 40 years, it has become a large-scale iron and steel complex. In order to speed up the development and march toward the sustainable development featuring sophisticated process, macro-scale equipment, energy saving and environmental protection, NSICO has established strategic development plan which focuses on wide medium & heavy plate / coil and strip. Especially, the proposal for Wide Plate/ coil Project has been approved by National Development and Reform Committee on 20 December 2000, the feasibility report has been approved by Regular Meeting for Premier Office on 31 October 2001, project construction started on 18 May 2002, the whole project was put into production on 18 October 2004. During the 10th five-year plan period, NISCO has made full use of state-of-the-art technology and equipment for Steckel Mill Wide Plate / Coil line, has implemented the modernization of existing equipment, has achieved the fast growth of production, better product quality and product structure by means of deepening the reform, strengthening the management, exploring the potential and implementing the revamp, has made delightful achievements in both technological modernization and technical innovation, has the capacity of producing 4.5 million steel (mainly high quality, high value-added plates). In order to make full use of existing stock assets, foreseen land and part of auxiliary facilities, ensure the balance between the raw material and final products, reduce production cost, improve economic benefits and construct the optimal production scale, NISCO decided to build the follow-up project (namely, technical innovation projects during the 10th five-year plan) at the new production area close to the Yangtze river. The implementation of above projects will heighten the technological level of the traditional iron and steel industry inside the NISCO, lay the solid foundation for the goal of building a larger and more powerful iron & steel industry and constructing cost-effective enterprise. In line with the relevant stipulations of Environment Impact Evalation Law of P.R.China and Enviroment Protection Management Bylaw for Construction Project (No. 98-253 Order, State Counsil), i.e, environment impact evaluation has to be done during the phase of project feasibility, NISCO has made careful investigation and self-examination for its investment projects in accordance with State Counsil Office Document No. 103 (2003) and No. 38 (2003), etc. and reported to relevant authorities in time. According to the requirements of relevant authorities, NISCO decided to reapply for approval document for its technical innovation projects which were put in the examination name list. To achieve this, NISCO entrusted Nanjing Environment Protection Research Institute to excute the compilation of environment impact evaluation report in September 2004. Afterwards,

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this Institute completed the compilation of environment impact report for this project based on the documentation related to this project, natural conditions and socioeconomic conditions at project site, environment protection evaluation proposal of the project, practical investigation and prospection, collecting and verifying all relevant documentation, and on the basis of environmental condition supervision, project pollution source supervision, prediction and calculation analysis, etc. Through the environmental impact evaluation, we had an idea of the environmental conditions prior to project construction, were able to predict the impact extent and range on water environment, atmospheric environment and noise environment during and after project construction, have put forword the feasible measures to control the environmental pollution and relieve the impact of project construction on the environment, provided scientific evidents for engineering design, project construction, environmental management after project construction. 1.2 Compilation evidences 1.2.1 Laws and regulations  Environmental Protection Law of P.R.China  Environmental Impact Evaluation Law of P.R.China  Water Pollution Prevention and Control Law of P.R.China  Atmospheric Pollution Prevention and Control Law of P.R.China  Solid Waste Pollution Prevention and Control Law of P.R.China  Noise Pollution Prevention and Control Law of P.R.China ；  Clean Production Reinforcement Law of P.R.China (P.R.China Chairman order No. 2002-72)  Environmental Protection Administrative Regulations for Construction Projects (State Counsil order No. 1998-253)  The Notification regarding the Suggestions for Strengthening the Industrial Water Saving (Document No. 1015, issued by 6 Ministries / Commissions / Bureaus, i.e. National Economic and Commercial Commission, etc. and National Economic & Commercial Resources Commission, 2000)  The Notification regarding‘10th Five-year Plan’Industrial Water Saving Planning (Document No. 1017, printed and issued by National Economic and Commercial Commission Resources Department, 2001)  The Notification regarding the Policy of Hazardous Waste Pollution Prevention and Control Techniques by General Administration of National Environmental Protection, National Economic and Commercial Commission, Ministry of Science and Technology (Environmental Issue No. 199, 2001)  Umpty Opinions regarding Enforcing Clean Production process (Environmental Control Issue No. 0232, National Environmental Protection Administration, 1997)

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 The Guidelines for Current Top-priority Development Key Sectors in High-tech Industry (National Development & Planning Commission, Miistry of Science and Technology, 2004)  Classification & Administration Directory for Construction Project Environmental Protection (Issue No. 14, General Administration of National Environmental Protection, 2002)  Guide Directory for National Clean Production Techniques (Part 1)  Guide Directory for Clean Production Techniques in National Key Industries (Part 2)  Clean Production Standards for Coking Industry by Environmental Protection Trade Standards of P.R.China (HJ / T126-2003)  Clean Production Standards for Iron & Steel Industry (Exposure draft) by Environmental Protection Trade Standards of P.R.China （HJ/T xx-2004）  The Notification regarding further Strengthening the Coordination between Industrial Policy and Credit Polcy to Control Credit Risk ( Document No. 746, National development and Reform Commission, 2004)  Umpty Regulations regarding Strengthening the Management of Construction Project Environmental Protection (Document No. 1, Jiangsu Environmental Protection Commission, 1998)  Provisional Regulations for Gross Pollutants Emission Control of Jiangsu (Order No. 38, Jiangsu People’s Government, 1993)  The Notification regarding Rectification & Control Measures for Contamination Drain Points Selection and Standardization of Jiangsu (Dodcument No. 122, Jiangsu Environmental Protection Control, 1997)  Regarding the Written Reply to Jiangsu Surface Water Environment Function Classifications (Document No. 93, Jiangsu Provincial Government, 1995)  Technical Guidelines for Environmental Impact Evaluation HJ/T2.1～2.3-93，HJ/T2.4-95.  The Notification regarding Enforcing National Atmospheric Environment Standards (Document No. 27, Jiangsu Environmental Protection Science, 1996). 1.2.2 Other documents  Nanjing City General Planning (Nanjing Planing Bureau, August 2001)  Nanjing Industrial Layout and Planning (Nanjing Economic Commission, Nanjing Planning Bureau, Nanjing Development & Planning Commission, July 2004).  Nanjing Yangtze-river-side Development General Planning  Nanjing Yangtze-river-side Development Environmental Protection Planning；  Nanjing Luhe District General Planning

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 Nanjing Luhe Environmental Protection Planning  NISCO Planning during ‘the 10th Five-year Plan’(CISDI, April 2000).  Regarding the Written Reply to NISCO Iron & Steel Development Planning during ‘the 10th Five-year Plan’ (Document No. 80, Nanjing People’sGovernment, 2002).  NISCO Follow-up Project Applying Report during ‘the 10th Five-year Plan’(Jiangsu Metallurgy Design Institute Co., Ltd. on 11 November 2004).  Environmental Impact Evaluation Entrustment Document (Nanjing Iron and Steel Group Co.,Ltd.) 1.3 Evaluation Principles  The principle of ‘Clean Production Process,‘Up-to-standard Emission’, ‘Pollution Prevention’,‘Drive the old with the new’, ‘Total Pollutants Emission Control’ will be applied in environmental evaluation.  NISCO will conduct the engineering analysis for construction project carefully, keep under control the ‘3aspects’of actual pollutants emission by means of actual measurement, analogy analysis, water balance analysis and material balance analysis, make an objective evaluation on the feasibility and reliability of pollution prevention & control measures scheduled for construction project, analyze the existing problems in environmental protection inside NISCO. Through environmental impact prediction, analyze the impact extent and range of construction projects on circumjacent environment, especially on air environment.  The impact evaluation of this project on environment will be carried out by making good use of the experiences in environmental supervision and management otained from construction projects in recent years. 1.4 Pollution Control Goal The goal of construction project in pollution control is to achieve up-to-standard emission and total pollutant emission shall be controlled in the range of total amount index issued by Nanjing Environmental Protection Bureau. The selection of contamination drain points must comply with the requirements of Rectification & Control Measures for Contamination Drain Points Selection and Standardization of Jiangsu. 1.5 Evaluation emphasis and job grade 1.5.1 Evaluation emphasis This construction project belongs to ferrous metal smelt process in metallurgical industry, which is classified as heavy pollution industry. The evaluation emphasis of this project is engineering analysis, clean production review, pollution prevention and control measures review, total pollutants emission control and atmospheric environment impact evaluation.

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1.5.2 Evaluation job grade 1.5.2.1 Surface water environment impact evaluation grade As the principle of ‘Separate diffluence of clean water and turbid water, water supply by serial piping system, improve the cleaniness with fresh water, dilute the turbid water with clean water, recycling use and water from one source for several applications’and ‘Drive the old with the new’will be applied in the construction project, the total emission of waste water will not increase after the project start-up; therefour, only surface water environment status evaluation will be done instead of environmental impact evaluation. 1.5.2.2 Atmosphere environment impact evaluation grade The construction project is located at plain area, soot (dust) will be selected as evaluation factor (p); for our project, p is equal to 2.57×109 and environment impact is rated as the grade 2. The atmosphere environment impact evaluation grade determination is shown in table 1-1.

Table 1-1 Atmosphere environment impact evaluation grade P (m3/h) i P ≥2.5×109 2.5×109＞P ≥2.5×108 P ＜2.5×108 Terrain i i i Complicated Grade 1 Grade 2 Grade 3 terrain Plain Grade 2 Grade 3 Grade 3 1.5.2.3 Noise impact evaluation grade Our project will be classified as the grade 3 in terms of noise impact. 1.6 Evaluation range Based on construction project pollutant emission characteristics, local meterological conditions, natural environment status, environment item evaluation range is finalized, please see table 1-2 for details.

Table 1-2 Evaluation range Range Evaluation range Local Major induatrial enterprises adjacent to project site will be pollution carefully investigated. sources Atmosphere If project is regarded the as the center, evaluation range will be within the area of 14×14 (square kilometers) Dachang section of the Yangtze river in Nanjing, i.e. from 500 meters upstream the entrance of stone river to the Yangtze Surface river to 3500 meters downstream the entrance of the stone water river to the Yangtze river, its total length is around 4 kilometers; the reach of new contamination drain point from old production area after revamp along the stone river. Noise Construction project battery limit Total emission Except for SO2 to be absorbed within Nanjing Administrative control area, all other index have to be balanced inside NISCO.

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1.7 Evaluation factor Please see table 1-3 for construction project evaluation factors.

Table 1-3 The finalization of evaluation factors

Impact Environm Total emission Status evaluation factor evaluation ent factor control factor SO2, NO2, PM10, CO, Atmosphe Benzedrine（a）, Pyrene SO2、PM10 SO2、soot re （Bap）, Ammonia, H2S, Flouride PH、CODcr, hypermanganate CODcr, index, Petroleum-related petroleum-related Surface products, volatile products, Volatile CODcr water hydroxybenzene,SS, hydroxybenzene, ammonia nitrogen, CN, SS, ammonia Fluoride. nitrogen, CN-. Noise Leq(A) Leq(A) - Solid Industrial solid - - waste waste emission

1.8 Evaluation standards 1.8.1 Atmospheric environment quality standards and polluntant emission standards Grade 2 and 3 stipulated in Environmental Air Quality Standards (GB3095— 1996) will be applied in SO2、PM10、CO, while NO2 w will follow the notification regarding Environmental Air Quality Standards （ GB3095— 1996）modified by Document No.1（ 2000） issued by General Administration of National Environmental Protection, see table 1-4 for details. Currently, grade 3 stipulated in table 1 and 4 for Industrial Kiln / Furnace Atmosphere Pollutants Emission Standards （GB9078— 1996） has been applying in sintering machine head and tail, BF hot air stove, hot metal mixer, lime kiln, converter and ladle furnace, walking beam reheating furnace in Wide Plate / Coil Plant; grade 3 stipulated in table 1 for Coking Oven Atmosphere Pollutants Emission Standards （ GB16171— 1996 ） has been applying in mechanized coking ovens; Standards for 3rd period of time stipulated in table 3 and 6 for Thermoelectric Power Plant Atmosphere Pollutants Emission Standards（GB13223— 96has been applying in thermoelectric shop boiler; grade 3 stipulated in table 1 for Atmosphere Pollutants Overall Emission Standards （GB16297— 1996）has been applying in all other workshop section. For projects under construction, waste gas from sintering head & tail, BF hot air stove and casting house, converter and ladle furnace will

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follow the grade 2 standard stipulated in table 2 for Industrial Kiln / Furnace Atmosphere Pollutants Emission Standards （GB9078— 1996）, mechanized coking ovens will follow the grade 2 stipulated in table 2 for Coking Oven Atmosphere Pollutants Emission Standards（GB16171— 1996）;BF slag granulation water steam wil follow the standard stipulated in table 2 for Ordor Pollution Emission Standards, and the dust-contained waste gas from all other shop sections will follow the grade 2 standard stipulated in table 2 for Atmosphere Pollutants Overall Emission Standards （GB16297— 1996）. Please refer to table 1-5 for details. For projects under construction, coking project will follow Coking Plant Sanitary Prevention Distance Stndards（GB11661— 89）, sintering project will follow Sintering Plant Sanitary Prevention Distance Standards （ GB11662— 89 ） , iron-making project will follow Iron-making Plant Sanitary Prevention Distance Stndards （GB11660— 89）. Please see table 1-6 for construction project sanitay prevention distance.

Table 1-4 Environmental Air Quality Satndards Grade 2 Grade 3 Measuring Concentration Concentratio Standard Pollutants time Limit n Limit source （mg/Nm3） （mg/Nm3） Daily 0.15 0.25 average SO The 2 Hourly 0.50 0.70 notification of average Environmental Daily 0.12 0.12 Air Quality average NO Standards 2 Hourly （ 0.24 0.24 GB3095— 1 average 996）modified Daily by No.1 PM10 0.15 0.25 average Document Daily 4.00 6.00 （2000） average CO issued by Hourly 10.00 20.00 General average Administration Benzedrine（a） Daily 0.01 of National pyrene（Bap） average Environmental Daily Protection 7 Fluoride average （2000） 20 Ammonia 1 time 0.2 TJ36-79 H2S 1 time 0.01

Table 1- 5 Atmospheric Pollutant Emission Standards

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Concentrati Period of Sources of Standard Pollution factor on limit time pollution source （mg/Nm3） Particles 5.0 Benzene 1.20 Mechanized soluble（BSO） GB16171— 9 coking ovens 6 Benzedrine（a） 0.0055 Pyrene（Bap） Coke quenching GB16297— 9 Dust 150 tower 6 Sintering machine Dust 200 GB9078— 96 head & tail SO2 4300 Flux crushing at sintering machine GB16297— 9 Pulverized coal Dust 150 injection 6 BF dedusting system BF hot stove and Soot 200 Existing casthouse SO 4300 projects 2 GB9078— 96 Dust 200 Hot metal mixer SO2 4300 Dust 400 GB9078— 96 Lime kiln SO2 4300

Material handling GB16297— 9 Dust 150 system in 6 steel-making plant Converter and Dust 200 ladle furnace SO 4300 Walking beam 2 GB9078— 96 RHF in Wide Plate/Coil Plant Soot 350 Thermoelectric Soot 200 GB13223— 9

shop boiler SO2 2100 6 Projects Particles 3.5 under Benzene 0.80 constructi Mechanized Soluble（BSO） GB16171— 9 coking oven 6 on Benzedrine（a） 0.0040 Pyrene（Bap） Sintering machine Dust 150 GB9078— 96 head & tail SO2 2860 Sintering machine GB16297— 9 Dust 120 dedusting system 6 BF hot stove and Dust 150 GB9078— 96 casthouse SO2 2860

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BF dedusting GB16297— 9 Dust 120 system 6 Converter and Dust 150 GB9078— 96 ladle furnace SO2 2860 BF slag GB14553— 9 granulating water H S 5.2(kg/h) 2 3 steam Material stock GB16297— 9 yard dedusting Dust 120 6 system Dusty waste gas GB16297— 9 from the other Dust 120 6 shop sections

Table 1-6 Construction project sanitary prevention distance standards Wind speed Distance（m） Standard source Category （m/s） Coking plant 2— 4 1000 GB11661— 89 Sintering plant 2— 4 500 GB11662— 89 Iron-making plant 2— 4 1200 GB11660— 89

1.8.2 Surface water environment quality standards and waste water discharge standard Water quality for water body (Nanjing Dachang Section of the Yangtze river) adjacent to construction projects will follow the class Ⅱ standard stipulated in Surface Water Environment Quality Standards （GB3838— 2002）, while stone river water will follow the class IV specified in Surface Water Environment Quality Standards （GB3838— 2002）. Existing projects (excluding Wide Plate/Coil Plant) will follow the grade 1 stnadard stipulated in table 1 for Steel Industry Water Pollutant Discharge Standards (GB13456— 92), waste water from existing Wide Plate/Coil project will follow the grade 1 standard stipulated in table 3 for Steel Industry Water Pollutant Discharge Standards (GB13456— 92). Waste water from other projects under construction will follow the grade 1 standard stipulated in table 3 for Steel Industry Water Pollutant Discharge Standards (GB13456— 92). Please refer to table 1-7 for details.

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Table 1-7 Surface water quality standards and waste water discharge standards Environ. Quality standard value Construction project （mg/L） Existing discharge standard value discharge standard value （mg/L） （GB3838— 2002） （mg/L） Item （GB13456— 92） （GB13456— 92） （GB13456— 92） Class Ⅱ Class Ⅳ Grade 1 in table 3 Grade 1 in table 1 Grade 1 in table 3 PH 6— 9 6— 9 6— 9 6— 9 6— 9 COD ≤15 ≤30 150 100 100 — — — Hypermanganate index 4 10

Petroleum ≤0.05 ≤0.5 15 8 8 Volatile hydroxybenzene 1.0 0.5 0.5 ≤0.002 ≤0.01

SS ≤20* ≤70* 150 70 70 Ammonia nitrogen ≤0.5 ≤1.5 15** 10 10 Cyanide ≤0.05 ≤0.2 0.5 0.5 lass0.5 Fluoride ≤1.0 ≤1.5 10** 10** 10** Tonnage（m3/t） — — — 20 20

Note: * SS refers to Hydraulic Ministry Standards. ** For those index not mentioned in Steel Industry Water Pollutant Discharge Standards（GB13456— 92）, please refer to Waste Water General Discharge Standards （GB8978— 1996）.

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1.8.3 Noise evaluation standards Construction project area will follow the grade 3 standard stipulated in Urban Area Environment Noise Standards (GB3096— 93) and the class Ⅲ standard prescribed in Industrial Enterprise Battery Limit Noise Standards (GB12348— 90); while circumjacent area of construction project will follow the grade 2 standard stipulated in Urban Area Environment Noise Standards (GB3096— 93). Please see table 1-8 for details.

Table 1-8 Noise evaluation standards Category Daytime Nighttime dB(A) dB(A) Urban area environment noise 60 50 standard grade 2 Urban area environment noise 65 55 standard grade 3 Industrial enterprise battery limit 65 55 noise standard class Ⅲ

1.9 Evaluation of the technical route Please see figure 1-1 for the technical route of this environmental protection evaluation.

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Entrusting document

Data collection, onsite investigation

Compiling the evaluation outline 编

Investigatio Evaluation result, Expert Environ quality monitor n, analysis comts 评估意见及专家意见（略） pervision and

Natu Soci Eng Pol Atmo Wat Nois ral al ine lut sphe er e envi envi re moni Clean production anderi ion env ronm ronm envi tor recycle economy ng sou iro ent ent ron. inve inve ana rce moni n. stig stig lys inv tor mon atio atio is eti ito

Environ.quality status investigation 环境质量现 Total quantity control 总量控制 Environ. impact Public participation prediction evaluation 环 公众参与 Environ supervision Comprehensive analysis and monitor plan 环境 Environ. measures review 环保措施评述 Conclusion, suggestion Others

Compiling report

Fig1-1 Evaluation of the technical route

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2 Circumjacent environment general of construction project and environmental protection target

2.1 Circumjacent environment general of construction project 2.1.1 Geographical location NISCO lies inside Dachang town, Luhe District and in the northeast of Nanjing. Luhe is located at the juncture between the southern Jiangsu (Sunan) and northern Jiangsu (Subei), with several highways (like Ning-Lian, Ning-Tong, 104 national highway, Ning-Huai, etc.) across it. These highways serve as traffic main artery connected Nanjing to Subei, Anhui, etc. Luhe boasts very convenient water transportation, with Chu river and 43.6km water front of the Yangtze river inside; and enjoys the conveniences of shipping & irrigation, and good conditions to build deep water harbor. NISCO is around 16km away from the Nanjing downtown, with the Yangtze river on the east, Ning-Yang highway on the west, Pukou Xinhua community on the south, Nanjing Thermoelectric Plant, Huaneng Power Company Nanjing Branch and Nanjing Chemical Industry Company on the north. Existing plants are built onto the 3-km low massif from east to west. Constrcution projects are scheduled to build onto riverside bottomland on the south of existing plants, please see the topographic map 2-1 for details. 2.1.2 Topography and physiognomy Planned area for construction projects is part of Ning-zhen hilly country and belongs to low massif terrain (extended part of Laoshan Mountains); inside Dachang area, the peak point is Mountain Xiao, with elevation up to 61.80m,. Low massif extends toward the northwest and forms zonal valley, slanting toward the Yangtze river and Ning-Lu highway separately. Constrcution site is located at Huabei terrain Subei depressed area, lies in the age-old and stable Changjiang fracture zone, belongs to Grade 7 earthquake protection area, featuring low seismic intensity and infrequent seismic activity. The south of Dachang is characterized by typical Changjiang alluvial plain, with low and flat terrain, ground elevation up to 6.0m around (Yellow sea altitude system is applied). The soil texture is mainly sandy soil and clayed soil, soil pressure is around 8-10 tons / m2; the soil is fertile, most land inside Dachang is for planting purpose. Underground water here is fairly rich. The north of Dachang is marked by hilly terrain. 2.1.3 Hydrographic characteristics The Yangtze river is the largest river in China, with basin area up to 1,800,000km2, length up to 6,300km, runoff resource amounting to 37.8% of China. Nanjing Dachang section of the Yangtze river lies in the northeast of Nanjing, is the branch of the Yantze river (on the north of Baguazhou islet), with total length up to 21.6km approximately. The main

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sub-branch is Macha river. The branch width is around 350 – 900m, the inlet & outlet and middle of this branch is about 700 – 900m wide, the narrowest position is around 350m (close to Nanjing Chmical Industry Company), the average width is 624m, average depth is 8.4m, the shape of this branch is like a big curve bend toward the north. This branch belongs to the tideway downstream the Yangtze river;due to moderate tide, there will be 2 tide crests and 2 tide bottoms daily. The flood tide will last 3 hours and ebb tide will last for 9 hours; when flood tide occurs, there will be discontinued crest, which results in counter flow. For the past years, the highest level (17 August 1954) is 10.2m (Wusong base level, Shanghai) , the lowest level is 1.54m, the biggest level variation within 1 year is 7.7m (1954), the biggest tidal range during low-water season (31 December 1951) is 1.56m, average tidal range is 0.57m (According to statistics by Nanjing Xiaguan District from 1921 to 1991). Although the water folw of this branch is influenced by the tide, annual variation of the flow is marked by runoff control; its incoming water characteristics can be illustrated by the data measured at Datong Hydrographic Station (upstream of the Yangtze river). For the past years, the largest flow is 92600m3/s and average flow is 28600m3/s (based on the statistics from Datong Hydrographic Station). Annually, the minimal monthly average flow will occur in January, the flood will start from April and reach the peak in July. The diffluent ratio of this branch varies with the flow from upper reaches, the ratio is 18% during flood season and 15% during low-water season. For the past years, the maximal flow of this branch is 18,000m3/s and the minimal flow is 1,200m3/s. The waste water from existing plants and construction projects in NISCO is fully discharged into the Stone river. The Stone river is a floodway channel, with width up to 20 –25m, water flow presenting standstill status during non-flood season, water body function classified into Grade IV. The Stone river will reach the Nanjing Dachang section of the Yangtze river finally. Both the drinking water and industrial water inside Dachang is mainly taken from the Yangtze river, no underground water is used. 2.1.4 Ecology There are 4 types of vegetation inside Dachang area, namely, planting vegetation, mountain & forest vegetation, swamp vegetation and aquatic vegetation. And agricultural planting vegetation accounts for the lion’s share. Above mountain & forest vegetation, swamp vegetation and aquatic vegetation belong to natural vegetation. 2.1.5 Meterology and climate The planned area of construction project is located at north Asia, belongs to the subtropical mosoon area, featuring the mild climate, distinct season and opportune rainfall. The rainfall varies with the season. Due to the cold air mass from polar region continent, the winter half year (October to March) witnesses prevailing northerly wind and less rainfall; due to the

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tropical or subtropical oceanity air mass, the summer half year (April to September) witnesses prevailing southerly wind and plenty rainfall. Particularly during the period from the end of May to June, plum rain will show up due to the shift of ‘flood crest’to the Yangtze river reaches. During the transitional period from Summer to Autumn, the typhoon rain will occur due to northwestward typhoon. During the whole year, frost-free period is up to 222 – 224 days, sunshine duration is 1987 – 2170 hours. Please refer to table 2-1 for details.

Table 2-1 Main meterologic and climatic characteristics No. Items Quantity and unit Annual average temprature 15.4℃ Average lowest temperature for 11.4℃ past years Air 1 Average highest temperature for temperature 20.3℃ past years Extremely highest temperature 43.0℃ Extremely lowest temperature -14.0℃ Annually average relative 77% humidity 2 Humidity Annually average absolute 15.6HPa humidity Annual average rainfall 1041.7mm Annual mimimal rainfall 684.2mm 3 Rainfall Annual maximal rainfall 1561mm Daily maximal rainfall 198.5mm 4 Snow Maximal snow depth 51cm Maximal absolute atmospheric 1046.9mb pressure annually Atmospheric Minimal absolute atmospheric 5 989.1mb pressure pressure annually Average atmospheric pressure 1015.5mb annually Average wind speed annually 3.4m/s 6 Wind speed Maximal average wind speed 25.2m/s within 10 minutes once 30 years Prevailing wind direction Winter: northeastern 7 Wind direction Summer: Southeastern Calm wind frequency 22%

Please see the rose-like figure for details in wind speed / direction at construction project area.

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Figure 2— 2 Wind speed / direction rose-like figure of construction project area throughout the year 2.2 Local social environment summary Project locus, Luhe Dachang town, is located at the northern suburb of Nanjing, facing the Yangtze river on the east, connected to Pukou on the south. Dachang town covers an area of 83.5 km2, has permanent population of 182,000, administers 3 subdistricts (Xiejiadian, Xichangmen and Shanpan) and 2 towns (Changlu and Getang), 85 neighborhood committees and 25 villager committees, is an important satellite town in Nanjing. It is an important industrial area involving petrochemical processing, electric power, chemical fertilizer and metallurgical production. This town covers Yangzi Petrochemical Company (hereafter called ‘Yangzi’), Nanjing Chemical (Group) Company (hereafter called ‘Nanhua’), Nanjing Iron and Steel United Company (hereafter called ‘Nangang’), Nanjing Thermoelectric Plant, Huanneng Power Company Nanjing Brach and it is the heavy industrial area in Nanjing. This town gradually develops into an industrial zone on the basis of Yangzi, Nanhua and Nangang, which is significantly different from those development zones grown from a piece of farmland. Thus, there are no public facilities like integrated heat supply, steam supply and sewage water treatment, each big enterprise (including Nangang) inside the town has its own public facilities related to their own projects, some small & medium enterprises have to rely on neighbouring big enterprise to sovle their own problems due to the lack of auxiliary facilities. NISCO has ranked among Jiangsu key enterprises, which gradually developed on the basis of previous Nanjing Iron and Steel Plant. After the development of more than 40 years, it has developed into a large-scale iron and steel complex with complete production process and auxiliary facilities. During the 10th five-year plan period, NISCO has made full use of state-of-the-art technology and equipment for Steckel Mill Wide Plate / Coil line, has implemented the modernization and upgrade of existing equipment, has achieved the fast growth of production, better product quality and product structure by means of deepening the reform, strengthening the management, exploring the potential and implementing the revamp, has made delightful achievements in both technological modernization and technical innovation, has the capacity of producing 4.5 million steel (mainly high quality, high value-added plates). NISCO is one of the key enterprises in Jiangsu. In 2003, NISCO achieved the sales income of 14.5 billion RMB and ranked 69 among Top 500 Enterprises in

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China. 2.3 Local social development plan 2.3.1 General plan of Nanjing city The following is indicated in the Genral Plan of Nanjing city (from 1991 to 2010): The development target of Nanjing city is: a city full of economic vitality, i.e. a modern central city downstream the Yangtze river; a city distinct in culture, i.e. a world-famous cultural & historic city; a city with optimal residence environment, i.e. a riverside city featuring the harmonious coexistence between human and nature. Dachang town is an industrial one focusing on heavy chemical industry. Chemical industry, iron & steel industry, electric power industry involving large freight volume and big water consumption, and relevant processing industry are encouraged inside the town. The planned population is 200,000 by 2010 and 350,000 for a specified future. For the urban space utilization and urban long-term planning in General Plan of Nanjing City, please see figure 2-3 and 2-4. 2.3.2 General plan of Nanjing Yangtze-river-side development The following is indicated in General plan of Nanjing Yangtze-river-side development: Nanjing is one of the traditional industrial base in China and boasts a complete industrial system, its pillar industry involves petrochemical processing, electronic information, automobile manufacturing. Riverside area has witnessed the formation of the industrial chains of great water consumption, large freight volume and export orientation. Nanjing High-tech Industrial Development zone, Nanjing Economic and Technical Development zone, Nanjing Chemical Industrial Park and Jiangning Economic & Technical Development zone (hereafter called ‘4 Development zones’)has become the important export-oriented base in Nanjing; each district along the Yangtze river has successively built its own industrial park, the general frame of new round of industrial concentration has almost formed. Industrial target : Making obvious achievement in internationalization, modernization and scale, make remarkable improvement in competitiveness, achieving the general frame formation of world-level manufacturing base. Improving the industrial concentration ratio, establishing the industrial competitive advantages both in Jiangsu and the Yangtze river delta area, realizing the target of sales income from 5 big industries (petrochemical, electronic information, automobile, iron and steel, electric power) by 2010 (500 billion RMB) quadrupling that in 2002 at least. Total investment will be up to 300 billion RMB during the period from 2003 to 2010, development zone and industrial park will quicken the expansion, the output of 4 Development zones will surpass 30% of Nanjing by 2010. Target of environmental construction: Protecting and making proper use of

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natural and ecological resources, implementing the harmonious policy of regional development, industrial layout and environmental protection, making full efforts to build the riverside area of Nanjing into the representative area of sustainable development in Jiangsu. By 2010, water / air quality and noise level will meet the national standards, coverage of green area and forest will be above 46% and 25% separately. In accordance with the principle and requirements of proper division, clear distinction, complementary function, harmonious development, the zonal area along the Yangtze river can be divided into 6 zones. Thereinto, heavy chemical industrial zone covers the regions like Xichangmen, Xiejiadian, Shanpan, Getang, Changlu, Guafu, Yudai, which mainly relies on the big park / enterprise like Nanjing Chemical Industrial park and Nanjing Iron & Steel United Company Ltd as economic pillar and intensively develops heavy chemical and iron & steel industry by making use of convenient conditions in water and highway transportation. Nanjing will persist in the policy of priority development of industry, take the path of new industrialization, push forward the integrated development of riverside industry, get 5 big industries (petrochemical, electronic information, automobile, iron and steel, electric power) larger and more powerful. Specifically, iron and steel industry will bring into full play the advantages of golden watercourse and existing industrial basis, speed up the steps of large scale, internationalization and modernization, build the iron and steel into the pillar industry in Nanjing. Meanwhile, it will adjust product mix, improve product grade, form product series, emphasize the development of wide & medium plate, hot /cold rolled stainless steel plate / coil, coated plate, etc. 2.3.3 Iron & steel industrial layout of Nanjing city Enjoying certain advantages among national iron & steel industry and favorable conditions of convenient water transportation as well as plenty of water resources for further development, NISCO and Meishan Iron & Steel Company (MISCO) are the solid basis to develop iron & steel in Nanjing. Considering the regional conditions and industrial basis throughout the Nanjing city, key constructions will be scheduled for 2 major iron and steel industrial bases, i.e. NISCO industrial park to be built up to the capacity of 6,000,000t/y steel and high value-added products and Meishan Iron & Steel industrial park to be built up to the capacity of 5,000,000t/y rolled products. By persisting in the principle of environment priority for the construciotn of above 2 bases, low-energy consumption and high value-added products will be developed by means of enforcing clean production process. 2.3.4 Nanjing Yangtze-river-side development environment protection planning In order to achieve harmonious development of economy, society and

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environment and build the riverside area of Nanjing into the representative area in sustainable development, the principle of sustainable development has to be executed during the riverside development, i.e. coordination between development and protection, strengthening the ecological protection, pollution prevention and control, environmental construction and supervision. 2.3.4.1 Control of water environment In order to reduce the pollution to water body in the Yangtze river, ensure the water in the Yangtze river up to the requirements of national standard grade 2 or above throughout the year and improve obviously the water quality of urban river including Qinhuaihe river, the comprehensive protection of water resources and water environment in the Yangtze river has to be strengthened by achieving the up-to-standard discharge of all industrial waste water and establishing a complete sewage treatment system across the whole city. Nanjing will quicken the construction of water pollution control, push forward the construction of integrated sewage treatment, improve the sewage treatment ratio and level of Nanjing city. 4 sewage treatment systems (above grade 2) will be built, namely, Jiangxinzhou sewage treatment plant to be expanded to the capacity of 640,000tons / day, Fangjiaying sewage treatment plant (300,000tons / day), Yangzhuang sewage treatment plant (200,000tons / day), 200,000 tons /day Xianlin sewage treatment plant (50,000 tons /day for the first-phase project), which gets the urban sewage treatment capacity up to 1,340,000 tons /day at least. By 2010, the treatment ratio of urban sanitary sewage will be up to above 80%. The discharge of water contaminant will be kept under strict control by strengthening the control of main pollution sources along the Yangtze river, relocating and merging the industrial sewage drain points, controlling strictly the increase of new drain points. The security of water sources will be ensured by protecting the sources of drinking water in the Yangtze river and executing strictly the regulations for pollution prevention & control in drinking water sources protection zones. 2.3.4.2 Industrial pollution prevention and control Pollution prevention and control will be emphasized and the industrial layout will be optimized. Through the comprehensive evaluation for environmental capacity, construction scale, pollution control measures in all sorts of industrial parks / zones, a scientific definition of the construction scale and development orientation for industrial parks / zones will be made. According to relative concentration of the pollution categories, heavy chemical enterprises should reduce pollution sources so as to facilitate the centralized processing of pollutants. Particularly, those industry with serious water pollution will be planned at the downstream of the city and water sources, while industry with serious air pollution will be arranged at the downstream of wind direction of the city.

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In order to achieve the zero or negative increase of gross pollution while maintaining the fast growth of economy, the pattern of recycle economy will be followed, the development of pollution-free or light pollution and high value-added industry will be encouraged. Firstly, Nanjing will strictly carry out the mechanism of environmental impact evaluation and ‘3 simultaneousness’(that is to say, from the very beginning of a project, environmental protection equipment will be designed simulataneously with that of production equipment and they will be installed and put into use simultaneously), strengthen the gross pollution control and pollution abatement measures, modernize the traditional industry (chemical ,metallurgical, etc.) by means of latest technology, enforce the clean production techniques, push forward the certification of ISO 14000 environmental control standards. Secondly, Nanjing will strictly control the emission of SO2, grasp the opportunity of ‘West-to-east gas pipeline project in China’,adjust the energy structure, roundly popularize the clean energy in production, subsistence and transportation, make the urban air quality meet the national grade 2 standard at least and the ratio of days up to grade 2 above 80%. Last, Nanjing will strengthen the environmental supervision and control, establish the environmental supervision and control mechanism involving the ‘government, enterprise and public’so as to improve the capability in environmental early-waring and prediction. 2.3.4.3 Ecological construction A good ecological environment suitable for the subsistence of mankind and animals will be created by strengthening the ecological construction and implementing the protection measures for marsh, vegetation, ecological landscape and rare species along the Yangtze river. Building ‘Green Riverside’,implementing 5 grand projects: A. Shelter belt project along the Yangtze river, i.e. a 50~200-meter-wide shelter belt with total area up to 6666.67 hectares will be built in bottomland, islets on both sides of the Yangtze river. B. Building 3 landmark ecological projects along the Yangtze river. For the upper reaches, a 1333.33 ~ 2000-hectare marsh protection zone will be built on the basis of shelter belt project in Xinshengzhou and Xinjizhou; for the middle reaches, a 666.67-hectare residence forest will be built in Banqiao area connected to the extension part of No.3 bridge over the Yangtze river; for the lower reaches, a 666.67 ~ 1333.34-hectare forest zone will be built on the east of Longtan Harbor. C. Ecological and tourism project along the Yangtze river, i.e. building an ecological park in Jiangxinzhou islet and Baguazhou islet separately. D. Riverside road in mian city zone and landscape project along the Yangtze river. Considering the development in the west part of Nanjing, a 50 ~ 100-meter-wide landscape belt from No.2 Yangtze bridge to No.3 Yangtze bridge will be built, the natural massifs in Shizi mountain, Mufu mountain, Wulong mountain, Lao mountain and etc. will be well protected and cultivated so as to form a rich and unique natural landscape. E. Establishing urban shelter belt mechanism. It is scheduled to build an ecological shelter belt in the north of the Yangtze river and an pollution

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isolation belt in chemical zone along the Yangtze river. 2.3.5 The organized planning of Pukou economic and technical development zone Pukou economic and technical development zone group will focus on Pukou economic and technical development zone, strengthen the integration of the industrial parks in Zhujiang town and Wujiang town, promote the cooperation with Nanjing high-tech development zone in division and industry by making use of the opportunity of building the new industrial park in Qiaolin town. Due to the conflict with new urban residence land, the previous riverside industrial park has been moved to the area between the north of Pu-Ba road and the east of stone river and will be used as the processing zone of extended products for NISCO. The other town-level industrial parks will be listed into town construction land planning for integrated development and construction. 2.3.6 General planningof Luhe district The following is indicated in the general planning of Luhe district: Luhe district is a manufacturing base focusing on chemical industry, a door of Nanjing to outside areas as well as a rising riverside town. Luhe Dachang town will maintain the current scale and continue to focus on production and inhabitation, its population will be limited to 200,000, construction land will be restricted to 20km2 within the planning period. Big riverside enterprises inside the Dachang town will be kept through modernizing relevant equipment and strengthening the pollution control. For the exploitation of the Yangtze coastline, 2 km coastline on the east of NISCO will be utilized as the spare coastline of NISCO expansion, 3 km coastline downstream NISCO will be used as main cargo dock for petrochemical, metallurgical and electric power industry, 1.7 km coastline upstream the Macha river will be used for ecological protection at present and building a bridge park for a specified future, 5.4 km downstream the Macha river will be used to build the Yangzi harbor with depth of terrain up to 500 ~ 800m. The 2.3 km coastline between Yangzi Petrochemical downstream and watercourse to the Yangtze river will be used as ecological protection area. The 3.1 km coastline downstream the watercourse to the Yangtze river will be used as water source protection zone. The 4.6 km coastline downstream Xiba section will be used as the construction of Xiba harbor with depth of terrain limited to 1000m. The 17 km coastline from the downstream of Baimiao river influx to the juncture between Luhe and Yizheng will be used for ecological protection, mainly for the protection of marsh on both sides of the Yangtze river. 2.3.7 Luhe environment protection planning 2.3.7.1 Environmental target A. Atmosphere Golden bull lake scenic spot and Zhimaling scenic spot are classified as Class 1 area, its air quality will reach standard grade 1 stipulated in

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Environmental Air Quality Standards（GB3095-1996）; Changlu, Yudai and Dachang (industrial area) are are classified as Class 3 area and air quality there will reach standard grade 3; Residential area, mixed area, culture area, normal industrial area and other areas are Class 2 area and their air quality will reach standard grade 2. B. Water The water in the Yangtze river will be controlled to the class Ⅱ standard stipulated in Surface Water Quality Satandards（GB3838-2002）, water in Chu river, Xinyu river and Babai river will reach or maintain the grade 5 standard, water in Macha river will reach the class Ⅳ standard, water in the other rivers inside the Luhe will reach the class Ⅲ standard. C. Noise Village areas and urban centralized residence areas will follow the grade 1 standard stipulated in Urban Area Environmental Noise Standards (GB3096-93), average equivalent sound level will be not more than 55dB (A) during the daytime and 45dB (A) during the nighttime. Urban administration areas and commercial centers will follow the grade 2 standard, sound level will be not more than 60dB (A) during the daytime and 50dB (A) during the nighttime. Industrial areas will follow the grade 3 standard, sound level will be not more than 65dB (A) and 55dB (A) during the nighttime. Main roads will follow the grade 4 standard, sound level will be not more than 70dB (A) and 55dB (A) during the nighttime. D. Disposal of industrial solid waste The comprehensive utilization and disposal ratio will be up to 100% and harmless disposal ratio up to 100%. 2.3.7.2 Objects subject to key protection The key protections are the ecological tourism resources in Golden bull lake and Zhimalin scenic spots, etc., the traditional spots like Wanshou palace, Wen temple, Ancient city wall, etc., the water sources and migration / spawn habitats for rare fishes in the Yangtze river, the rare botanic species like gingko, silver fir and metasequoia, etc. and rare zoic species like roe and spotted deer, etc. 2.3.7.3 Land utilization limitations around chemical area The area in the range of 3km outside the chemical industrial parks will not be arranged for the centralized residence communities, cultural, educational and sanitary area, and industries with demanding requirements of environmental quality. And the area in the range of 10km downstream the prevailing wind from plant battery limit will be not suitable for the centralized residence communities, cultural, educational and sanitary area, and industries with demanding requirements of environmental quality. 2.3.7.4 Environmental protection measures  The license mechanism for waste discharge will be firmly enforced so as to control the total discharge amount of pollutants.  The energy structure will be improved so as to abate the amount of

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pollutant discharge.  In line with latest requirements of national standards, the construction of ‘Area subject to 2 types of control’(specified in item 2.3.7.3) will be strengthened; The comprehensive prevent and control planning for acid rain and SO2, and control plan for total SO2 emission will be established.  Luhe will greatly develop the clean-energy automobiles, support the urban public transportation, strengthen the green belt construction on both sides of roads, strictly control the tail gas pollution from motor vehicles in accordance with the laws.  In order to monitor the atmospheric environment, one automatic monitoring station will be set up at Dachang town and Xiongzhou town in Luhe district separately.  Luhe will conduct a full drainage management for the Yangtze river Luhe section, implement a comprehensive planning and renovation of the environment, put in order all industrial discharge points along the Yangtze river, merge and relocate some discharge points, maintain the quantity of discharge points along the Yangtze river Luhe section. The coastline from downstream the Baimiao river to the juncture between Luhe and Yizheng will be claasified as marsh protection area.  The separate discharge mechanism of rain and sewage will be conducted while the sewage will be sent to treatment plant for centralized processing.  Luhe will strengthen the ecological prevention project construction between different districts of the city, forest construciotn along the rivers and roads, vigorously develop the ecological agriculture in the rural area.  Luhe will quicken the construction of up-to-standard noise areas, strictly control the traffic noise, industrial noise and social noise, prohibit newly building / rebuilding / expanding the enterprises with harmful noise around densely-populated residence area, schools and hospitals, etc.  A 20-hectare regional disposal center (including landfill and incinerator, etc.) will be built at the area between the northeast of Yangzi Petrochemical and the north of You-Lu expressway for centralized processing of hazardous solid waste in Nanjing. 2.4 Classfication of environmental functions 2.4.1 Classification of atmospheric function In accordance with Nanjing Environment Air Quality Function Classifications compiled by Nanjing Enviroment Protection Bureau in 1997, Yangzi-Changlu area and industrial area in Dachang district are classified into class 3 area and grade 3 standard stipulated in Environment Air Quality Standards (GB3095-1996) willl apply. Besides above 2 areas, all other areas will follow the grade 2 standard stipulated in Environment Air Quality Standards (GB3095-1996). The locus of projects under construction will be claasified into class 2 area in environmental function and the above-mentioned grade 2 standard will apply. 2.4.2 Classification of water environment function According to Jiangsu water environment function classification, the

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Yangtze river Dachang section coastline is classified as industrial water area for NISCO (from 100m upstream the NISCO water catchment point to 200m downstream the point, with total length up to 300m) and will follow the class II standard stipulated in Surface Water Environment Quality Standards (GC3838-2002). The stone river will follow the class Ⅳ stipulated in Surface Water Environment Quality Standards (GC3838-2002). The sensitive protection object of water environment evaluation this time is the Yangtze river Dachang section. 2.4.3 Classification of noise environment function The locus of construction projects is classified into class 3 area in terms of noise function, its environment noise will follow the grade 3 standard stipulated in Urban Area Environment Noise Standards (GB3096-93), the noise at plant battery limit will follow the class Ⅲ stipulated in Industrial Enterprise Battery Limit Noise Standards (GB12348-90). 2.5 Sensitive objects of environmental protection Please see table 2-2 for regional environment protection objects of construction project locus. Please see figure 8-1 and fugure 3-1 for regional atmosphere environment protection objects of construction project locus, figure 8-2 and figure 3-2 for water environment protection objects, figure 8-3 for noise environment protection objects.

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Table 2-2 Regional environment protection sensitive objects of construction project locus Name of protection Dist. to Item Populatio Environ. References objects Azimuth constru. site s n (10k) Func. （km） Yangzi Petrochemical Northeast 5.0 1.5 residential area

1.0 Shangba village at East （the 0.1 Baguazhou islet nearest） NISCO residential Nortwest 2.2 1.5 area Pancheng town Northwest 5.0 3.5 BF in new Nanjing High-tech Atmo iron making development Southwest 6.6 5 Class 2 area sphe plant, zone re NISCO Yanjiang town Southwest 5.0 5 Taishan town Southwest 7.5 7 Dachang town North 2.9 20 Pukou Xinhua Southwest 1.2 0.16 community Xinhua primary Southwest 2.1 0.02 school Wangjiawan village Southwest 3.2 0.05

Mazhuang village Southwest 3.9 0.05 Yangtze river — — — Influx point Dachang section ClassⅡwate of stone Wate Water sources for 170000 r body river to the Downstream 4.1 r NISCO t/d Yangtze Stone river（exit water Class Ⅳ river — — — course） water body NISCO residential Northwest 2.2 1.5 area BF in new Pukou Xinhua iron Southwest 1.2 0.16 Nois community Class 2 area makingplant Xinhua primary e Southwest 2.1 0.02 2 , school NISCO Wangjiawan village Southwest 3.2 0.05 Mazhuang village Southwest 3.9 0.05

3. General of construction projects

3.1 Name, characteristics, site and investment of the projects Project name: NISCO follow-up innovation project during ‘10th five-year plan’period Project characteristics: Technical innovation and expansion Construction site: Inside the planning area for NISCO during ‘10th

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five-year plan’period (see figure 3-1). Gross investment: Total investment of the project is up to 6,279.14 million RMB; thereinto, environmental investment is around 657.7745 million RMB, which accounts for 10.485% of gross investment. Please refer to table 3-1 for each sub-project and corresponding investment.

Table 3-1 Investment list for NISCO follow-up innovation project during ‘10th five-year plan’period Estimated Investment No. Project name (million Remark RMB)

180m2 machine under Sintering machines : hot commissioning, 1 729.62 180m2×1+360m2×1 360m2 machine under construction 55 batteries×2 under Coke ovens : hot commissioning, 60 903.92 55 batteries×2+ 60batteries×1 batteries under 2 construction Energy-saving projects, e.g. dry 215.60 Under construction quenching coke project, etc. 2000m3 BFunder hot 3 Blast furnaces :2000m3×1+2550m3×1 1,790.00 test, 2550m3 under construction 120T converter+120T LF+RH+2500mm continuous slab 740.00 Under construction 4 caster HM torpedo cars and repair facilities 150.00 Under construction 5 3500mm Steckel mill finishingline 280.00 Under construction 6 Raw material stock yard 180.00 Main part in operation Main part completed, 7 Dock, harbor, elevated railway 360.00 rest part under construction One 20000m3/h oxygen-making unit 8 and three combined heat and electric 540.00 Under construction generator units General drawing and transportation, auxiliary system, water treatment plant Partly completed, partly 9 390.00 and water piping system modification under construction and expansion Total 6,279.14

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3.2 Others about the project Floor space: 180×104m2。 Employees: 2500; threinto, operating and managing (including logistics) personnel is 2300 and 200 separately (Note: All employees are transferred from the existing plants). Please see figure 3-1 for the layout of project area. 3.3 Production scale, product mix and production performance of the project See table 3-2 for production scale and product mix of the project and table 3-3 for production performance of the project.

Table 3-2 Production scale, product mix of the project No. Project name Completed Scheduled 2 One 180m machine with 2 Sintering machines: One 360m machine with annual 1 2 2 annual capacity of 1,868,000 180m ×1+360m ×1 capacity of 3,736,000 tons tons Two 55 batteries coke ovens Coke ovens: One 60 batteries coke oven with with annual capacity of 55 batteries×2+60 batteries×1 annual capacity of 592,800 tons 1,086,800 tons 2 Dry quenching project with Energy-saving projects, e.g. dry — annual capacity of 1,545,200t quenching coke project, etc. coke Blast furnaces : One blast furnace with One 2550m3 BF with capacity of 3 3 3 2000m ×1+2550m ×1 capacity of 1,539,000t pig iron 1,961,000t pig iron 120t converter + 120t LF + RH 120t + 2500mm continuous slab caster, HM torpedo cars and converter+120tLF+RH+2500mm 4 — repair facilities with annual continuous slab caster, HM capacity of 1,672,500 tons of torpedo cars and repair facilities molten steel for LF / RH and 1,649,000 tons of slabs 3500mm Steckel mill finishing 3500mm Steckel mill finishing line with annual capacity of 5 — line 500,000 tons of wide medium plates /coils 6 Raw material stock yard Raw material stock yard — Elevated railway with annual 7 Dock, harbor, elevated railway freight volume of 3.540,000 Dock and harbor tons Three combined heat and One 20000m3/h oxygen making electric gererators with total One 20000m3/h oxygen making 8 unit and three combined heat installed capacity of unit and electric gegerator units 2×50+1×12 MV separately General drawing and transportation, auxiliary system, General drawing and transportation, auxiliary system, water 9 water treatment plant and water treatment plant and water piping modification and expansion piping modification and expansion

Table 3-3 Production performance of construction project

Sub-project name operating days /year operating hours / year Working status Sintering 330 7920 Continous Coking 365 8760 Continous

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Blast furnace 350 8400 Continous Converter 300 7200 Continous Steel rolling 300 7200 Continous Average 329 7896（based on 8400 — hours / year）

4. Project analysis

4.1 Existing project analysis in NISCO 4.1.1 Existing production facilities 4.1.1.1 Coking, sintering and iron making system Coking, sintering and iron making system consists of two 42 batteries coke ovens with annual capacity of 580,000 tons, two 39m2 sintering machines and two 32m2 sintering machines with annual capacity of 2,500,000 tons, two oxydizable pelleting shaft furnaces with annual capacity of 950,000 tons, one 300m3 blast furnace and four 350m3 blast furnaces with total capacity of 2,000,000 tons. 4.1.1.2 Steel making system It consists of three 30t top blowing converters with annual capacity of 2,000,000 tons, one 100t UHP EAF, one LF and 5-strand continuous billet caster with annual capacity of 900,000 tons, one 4-strand continuous billet caster (R6m4), one single-strand continuous slab caster (R5.7-21m) and one 5-strand continuous billet caster (R8m5) with annual capacity of 2,000,000 tons. 4.1.1.3 Steel rolling system It consists of one set of breakdown intermediate rolling mill (φ650×2) with annual capacity of 400,00 tons, one set of bar mill (vertically φ550×1/ vertically φ450×6), one set of rolling mill (φ430 × 1/ φ350 × 2/φ280 × 5/φ28), four 1200 pack rolling sheet mills with annual capacity of 100,000 tons, one set of 3-high Lauth mill and 4-high plate mill (2500), one set of wire rod mill unit (including φ520+φ400×4 rougher, φ400×4 intermidate mill, φ340×4 prefinishing mill and φ212×2+φ165×8 finishing mills). The total rolling capacity is 2,600,000 tons / year. 4.1.1.4 Wide Plate / Coil project It consists of one 120t converter, one torpedo car, one set of HM pretreatment system, one LF, one VD, one set of Steckel mill and incorporated auxiliary facilities. The annual capacity is 1,000,000 tons of medium plates / coils. Please see table 4-1 for details.

Table 4-1 Existing projects in NISCO

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Name of Output No. existing Process discription Main facilities in 2003 projects Fuel feeding chute for trucks, transfer station, fuel silo, coarse crushing Fuel preparation & room / fine crushing room; receiving system; Flux silo (at proportioning Flux preparation & room), transfer station, receiving system; flux crushing room and Material sieving room; Two 39m2 proportioning Proportioning room, 2.55 sintering system; quicklime tank; primary million machines, 1 2 Mixing system; mixing room, transfer tons of two 32m Sintering, cooling station, preballing room; sinter sintering and main blower Sintering, cooler room, machines room; main exhaust fan room; Products sizing Primary sieving room, system; secondary sieving room, Heat recovering product sampling and system. inspection room; Ventilation, dedusting and power supply / distribution room Material supply and proportioning system; Material supply and Mixing, crumbing, wetting, proportioning grounding and palletizing system; system, raw pellet sieving 0.9 Two 8m2 Pelletizing system; and transportation;； million Shaft furnace 2 shaft Shaft furnace, pellet tons of furnaces system; baking, sieving and acid 8m2 Cooling system and transportation;； pellet transportation system. Ventilation and dedusting system; Water supply and discharge system;

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Coal receiving device, crushing room, coal and coke sampling room; One 58-Ⅱ Coke wharf, coke screen Coal preparation coke oven building, coke storage shop (42 trough, transfer station; batteries) Coking shop; 0.56 Desulphrization, Sulphur million 3 and one Coke sieving / ammonia, Ammonia tons of 80-type storage system evaporation device, final coke coke oven system; cooling, benzene (42 Gas puifying system. absorption, coarse benzol batteries) distillation, gas automatic blowoff device, biochemical treatment for waste water. Coke / iron ore bin and handling system; furnace top and crude gas system; Furnace body system; pulverized coal preparation and injection 3 system; Blast One 300m blast 2.2 Tuyere platform, cast furnaces: furnace million 4 3 house and slag treatment 300m ×1+ Four 350m3 blast tons of system; 350m3×4 pig iron furnace Hot air stove system; pig iron machine room; thermodynamic facility; Fuel gas facility; water supply and discharge facility; Ventilation, dedusting facility.

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Name of No. existing Process description Main facilities Output in projects 2003 HM desulphur. and dedusting system; Scrap disposal and charge-mixing shop; Slag department, bulk material receiving bin HM desulphur device; (ferroalloy, etc.) and Three 30t converters feeding system; with combined top Converter fume and bottom blowing; blower room, Two 30t ladle dedusting / purifying furnaces; system; One 4-strand Secondary soot / fume Three 30t top continuous billet system in converter 2 million 5 blowing caster (R6m4); shop; tons of converters One ultra-low head LF dedusting system; liquid steel single-strand Power supply and continuous slab distribution system, caster(R5.7-21m); water supply and One 5-strand discharge system; continuous billet Drying building caste (R8m5); modification for 2*600t HM mixer. compressed air system Recirculated water treatment system for steel-making, conticaster and steel rolling. Train / truck receiving system, dock receiving system Material receiving No.1; 2 million system; Receiving belt Raw material tons of bed 6 Transfer station; conveyor and related plant blending Mixing and reclaiming facility; material system. Mixing / stocking machine, mixing / reclaiming machine; Dedusting system.

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Scrap disposal and charge-weighing shop; Slag department, bulk material bin 1×100t UHP EAF; (ferroalloy, etc.) and 1×100t LF; feeding system; 1×100t VOD (O and EAF / LF fume blower 1×100t UHP 2 0.9 million Ar blowing from room and dedusting / 7 electric arc tons of bottom); purifying system; furnace liquid steel One 5-strand Power supply and continuous billet distribution system; (150mm) caster. Drying building modification for compressed air; Recirculated water treatment system for caster shop. One air turbo compressor, one O2 turbo compressor and one N2 turbo compressor; One air precooling, purifying, 3 One 20000m /h O2 fractionation, boosting generating unit; and expansion 3 Two 6000 m /h O2 system, one I&E generating units; control system; Oxygen One 3200 m3/h O One water treatment 2 Cpacity: 8 making and generating unit; system, one final gas 29200m3/h gas supply One 200,000m3 BF storage system, one gas holder; cryogenic liquid One 50,000m3 COG system and one gas holder; pearlite warehouse; Gas boosting station. Fourteen auxiliary oil pump stations, gas boosting blower (centrifugal blower, piston-type blower and volumetric blower); Electric precipitation system.

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Name of No. Process description Main facilities Pouput in 2003 existing projects The capacity of pump station No.1 is 30400t/h Power supply system: The capacity Five main substations; of pump Two thermoelectric 35t station No.2 boilers, two 3000Kw/h Power supply system; and Water supply / generator units, one Combined heat / No.4 :2000t/h discharge and 1500Kw/h generator 9 electric generation clarified water, combined heat unit; system; 10000t/h turbid and electric Pump station system Water pump house. water; generator unit No. 1 , pump station Pump station system No. 2 and No. No.3: the 4, pump station system capacity of No.3. water supply is same as No.2. Fresh Water station:1000t/h Compressed air house, 400,000 t Steel rolling 2×Φ650/2×Φ650/8×Φ35 10 recuperative RHF, medium system 0 rolling mills rolling mills, levellor, sections 2×Φ500/1×Φ480V+2×Φ shears, water 430,000t HR 450V+2×400H+4×400H treatment system. strip rolling mills 5×Φ550/6×Φ420/4×Φ35 850,000t small 0 rolling mills bar 1200 rolling mill and 120,000t sheet 4×Φ800rolling mills Φ850/Φ550/Φ850×2350 and 1,000,000t Φ780/Φ730×2500/Φ156 plate 0/Φ1410×2400 rolling mill 1×Φ550/1×Φ350/1×Φ28 150,000t small 0/5×Φ250/1×Φ250 rolling sections mill

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φ5.5~16 ㎜ common carbon smooth surface round wire rod and 550,000t wire φ6.0 ～ 12 ㎜ screw rod wire rod high speed rooling mill One 120t converter, one torpedo car, one One set of Steckel mill Wide Plate /Coil 1,000,000t 11 HM pretreatment and relevant auxiliary system plate / coil system, one LF, one facilities. VD device.

4.1.2 Raw / auxiliary material consumption of NISCO existing projects Please refer to table 4-2 for details in the consumption of raw / auxiliary and fuels of NISCO projects.

Table 4-2 Raw / auxi. material and fuel consumption of NISCO existing projects Entry No. Name Amount (10000t/y) 1. Sintering system No.1 (2×39m2) A Ore mix 110.7 B Imported metal powder 7.86 Fines from Yeshan mine C 0.14 site (Nanjing) D Crude ore powder 0.5 E Return fines 0.89 F Anthracite 4.01 G Coke breeze 3.6 H COG gas 707.43 2. Sintering system No.2 (2×32m2) A Ore mix 72.16 B Domestic fines 3.39 C Imported metal powder 6.42 D White coal 0.66 E Coke breeze 5.57 F COG gas 590.53

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3. Iron making system A Sinter from No.1 system 144.0 B Anthracite 23.42 C Coke 80.14 D Nut coke 5.7 E BF gas 136944.89 F Pellet 96.8 G Sinter fron No.2 system 109.5 H Imported lump ore 9.86 4. Converter A COG gas 5. EAF A COG gas 1322.38 6. Pelletizing Fines from Yeshan mine A 30.37 site (Nanjing) B Domestic fines 21.14 C Imported metal powder 48.06 D BF gas 24103 7. Coking A Cleaned coal 72.62 B COG gas 2893.65 C BF gas 47055 8. Steel rolling A Fuel oil 1.84 B COG gas 12753.3 C BF gas 86526.8 9. Boiler A COG gas 669.31 B BF gas 13600 C Steam coal 6.42 COG gas for other D 1879.32 applications

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BF gas for other E 3681.32 applications

4.1.3 Water balance of NISCO existing projects Please see figure 4-1 for details.

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1000 Water return pump

282 Small section mill0 280 500 Iron-making plant0 500 1000 3391 165 Sintering plant0（23） 142 85 76 1345 Ohters 0（9） WS—01 2359 1347 10015356t/a Steel-making plant

⌒ 900 945 Irn-making plant 0 925 1299 255 Sintering plant0（0） 255 1900 1261 WS—02 99 Bar mill plant 1842 81 10350325t/a ⌒ 6150 7440 2 Iron-making plant 00 1100 86 3 Strip plant 560（6） 80 57 4 Gas plant 1500（15） 42 16670 8407 1966 Pu 133 Sheet plant 0（13） 120 WS—03 mp 16837085t/a 62 Section mill plant 50 ho 550 Power plant 0（50） 500 us 79 74 e Others 0（5） 890 126 Pelletizing plant 110 149 131 WS—04 23 21 Others 0（2） 1039090t/a 8620 60 55 2096 Others 0（5） 281 2036 226 WS—05 Power plant 0（10） 2335599t/a 1800 p W u a

m t 890 p e Domestic water to 890 r ⌒ ⌒ h o c

u a 270 8620 s t ⌒ e c h

N m 1800 Water purify.station 630 o e

. n 90 1 t Wire rod mill plant 70 180 电炉厂4670（50） 130 253 2194 Plate mill plant 2881 223 WS—06 14998688t/a 2218 694 Coking plant 900（10） 684

1271 457 Legend Wide plate/coil plant 用水分厂 循环水量 损耗水量 Fig 4-1 Water balance in NISCO（t/h） 炼钢厂 3423 （112）

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4.1.4 Gas balance of NISCO existing facilities Please see table 4-3 for details.

Table 4-3 Gas balance of NISCO existing facilities Gas consumption (104m3/a) Remarks Output Operating No. Items Converter (104t/a) time (h) BF gas COG gas gas 1 Input 311912.00 22946.51 BF: 1.1 192.41 8400.00 311912.00 2×300+3×350=1650 1.2 Coke oven: 2×42 57.17 8760.00 22946.51 2 Output 311912.00 22946.51 2.1 Coking plant:2×42 57.17 8760.00 47055.70 2922.65 2.2 Sintering No.1:2×39 148.32 7920.00 707.43 2.3 Sintering No.2:2×24 109.63 7920.00 590.53 2.4 Pelleting plant:2×8 90.82 7884.00 24103.10 BF plant: 2.5 192.41 8400.00 136945.00 45.00 2×300+3×350 2.6 Converter:3×30t 183.18 8306.00 2441.84 2.7 EAF:1×70t 80.00 7458.00 1322.38 Section plant: 2.8 44.39 6665.00 16049.60 2.17 (Blanks, products) 2.9 Strip plant 40.37 6000.00 6630.35 2929.46 2.10 Bar mill plant 71.41 6000.00 31231.40 141.59 2.11 Sheet plant 11.59 6000.00 14162.20 394.63 2.12 Plate mill plant 92.64 7400.00 10160.20 5996.22 2.13 Rebar mill plant 13.25 6000.00 928.29 Wire rod mill plant 2.14 47.01 7000.00 4911.74 2633.09 (after revamp) 2.15 Thermodynamic 7000.00 6533.82 669.30 2.16 Thermoelectric 7000.00 7066.48 For civil use 484.36 2.17 Others 8760.00 356.09 2.18 Losses 7062.41 381.48 Due to trial production, New converter: the gas is 2.19 1×120t ignited and emitted to atmosphere. 3 Balance 0.00 0.00 4 Equivalent BF gas 0.00

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4.1.5 Sulphur balance of NISCO existing projects Please see table 4-4 for details.

Table 4-4 Sulphur balance of NISCO existing projects Input Output (emission) S No. Incoming Amount S content S amount Outgoing Amount S amount content name (10k t/a) (%) (t/a) name (10k t/a) (t/a) (%) 1. Sintering system No.1 (2×39m2) 1.1 Ore mix 110.7 0.082 907.94 Sinter 144.05 0.038 547.39 Imported Outsourcing 1.2 powder 7.86 0.014 11 returns 1.09 0.038 4.14 1.3 Yeshan fines 0.14 0.184 2.58 Fume ▲ 735 1.4 Crude fines 0.5 0.3 15 1.5 Return fines 0.89 0.038 2.14 1.6 Anthracite 4.01 0.41 164.41 1.7 Coke breeze 3.6 0.50 180 1.8 COG gas 707.43 520 3.46 Subtot 1286.53 1286.53 al 2. Sintering system No.2 (2×32m2) 2.1 Ore mix 72.16 0.0868 626.43 Sinter 109.6 0.043 471.28

2.2 Domestic 3.39 0.4 135.6 Outsourcing 1.22 0.043 5.25 fines returns Imported 2.3 metal 6.42 0.014 8.99 Fume ▲ 602.94 powder 2.4 White coal 0.66 0.41 27.06 Coke 2.5 5.57 0.50 278.5 breeze 2.6 COG gas 590.53 520 2.89 Subtot 1079.47 1079.47 al 3. Iron making plant Sinter from 3.1 No.1 144.0 0.038 547.2 Hot metal 192.41 0.07 1346.8 system Slag and gas 3.2 Anthracite 23.42 0.41 962.64 63.2446 0.856 5415.22 ash 3.3 Coke 80.14 0.59 4487.84 Fume from 3.4 Nut coke 5.7 0.5 285 ▲ 148.22 air stove 3.5 BF gas 136944.89 115 148.22 BF gas 311912 115 337.60

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Water 3.6 Pellet 96.8 0.038 367.84 washing 33.6 desulphur Sinter from 3.7 No.2 109.5 0.043 470.85 system Imported 3.8 9.86 0.012 11.83 lump ore Subtot 7281.44 7281.44 al 4. Converter Fume from 4.1 COG gas 2130.62 520 10.43 combustio ▲ 10.43 n Subtot 10.43 10.43 al 5. EAF Fume from 5.1 COG gas 1322.38 520 6.48 combustio ▲ 6.48 n Subtot 6.48 6.48 al 6. Pelleting system Yeshan 6.1 30.37 0.184 558.8 Pellet 90.82 0.047 426.854 fines Domestic 6.2 21.14 0.136 287.58 Return ore 7.96 0.047 37.431 fines Imported 6.3 metal 48.06 0.014 67.28 Fume ▲ 475.46 powder 6.4 BF gas 24103 115 26.09 Subtot 939.75 939.75 al 7. Coking Cleaned 7.1 72.62 0.68 4937.33 Coke 57.17 0.59 3373.03 coal 7.2 COG gas 2893.65 520 14.16 COG gas 22946.5 520 119.32 Fume from 7.3 BF gas 47055 115 50.93 ▲ 65.09 coke oven

Desulphur 22946.5 1444.98 Subtot 5002.42 5002.42 al 8. Steel rooling 8.1 Fuel oil 1.84 1.2 220.8 8.2 COG gas 12753.3 520 62.42 RHF fume ▲ 376.87 8.3 BF gas 86526.8 115 93.65 Subtot 376.87 376.87 al 9. Boiler

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9.1 COG gas 2548.63 520 12.47 Boiler fume ▲ 279.84 9.2 BF gas 17281.32 115 18.70 Boiler slag 1.23 1.11 136.53 9.3 Steam coal 6.42 0.6 385.2 Subtot 416.37 416.37 al 10. Wide plate /coil plant 10.1 COG 12400 200 23.34 Fume ▲ 37.91 10.2 BF gas 13460 115 14.57 Subtotal 37.91 37.91 Total amount of S emission ▲ 2738.24 Note:1. The unit of gas amount is 10,000m3/a, S content refers to the content of 3 H2S(mg/m ); 2. Steel rolling in above table includes section mill plant, strip plant, sheet plant, plate mill plant, bar mill plant, wire rod mill plant and rebar mill plant; 3. ▲ refers to the emission amount of S in the fume.

4.1.6 Current status of pollutant discharge 4.1.6.1 Current status of water pollutant discharge In 2003, NISCO consumed 56504.28×104t water in total, make-up water amount is 7240.8×104t, recycle amount is 49263.48×104t/a, recycle ratio is 87.2%, total discharge amount of wasted water is 5557.61×104t/a. For the discharge amount of water pollutant of each drainage point in NISCO, please see table 4-5 for details.

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Table 4-5 NISCO water pollutant discharge amount in 2003 Waste Volatile Petroleum water Suspende Drain point Index COD hydroxybe Related Cyanide NH — N amount d material 3 nzene products (×104t/a) Concentrat 26.37 80.44 — — — — WS-01 1001.5356 ion（mg/l） Total（t/a） 264.11 805.66 — — — — Concentrat 36.87 61.74 0.027 2.0 0.005 — WS-02 1035.0325 ion（mg/l） Total（t/a） 381.65 639.01 0.28 20.8 0.05 — Concentrat 50.87 89.53 0.026 1.86 0.005 — WS-03 1683.7085 ion（mg/l） Total（t/a） 856.48 1507.5 0.43 31.25 0.09 — Concentrat 45.08 91.47 — — — — WS-04 103.9090 ion（mg/l） Total(t/a） 46.84 95.05 — — — — Concentrat 31.55 79.86 — 1.19 — — WS-05 233.5599 ion（mg/l） Total（t/a） 73.69 186.52 — 2.78 — — Concentrat 42.0 113.68 0.035 2.18 0.065 12.2 WS-06 1499.8688 ion（mg/l） Total（t/a） 629.977 1705.04 0.518 32.64 0.971 183.2 Total 5557.6143 Total（t/a） 2252.747 4938.78 1.228 87.47 1.111 183.2

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4.1.6.2 Current status of atmospheric pollutant emission The pollution sources of NISCO at present are steam boilers, sintering machines, BF, RHF for steel rolling, annealing furnace, coke ovens, etc. The fuels for above applications are smoke coal, white coal, coke, gas and heavy oil. The current emission consists of SO25476.48t/a, NOX 3416.01t/a and soot (dust) 10606.106t/a. Please see table 4-6 and 4-7 for organized and inorganized emission of pollutants.

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Table 4-6 Organized emission of atmospheric pollutant in NISCO Exhaust stack Offgas amount Soot NO SO No. Offgas sources x 2 Height （104m3/a） （t/a） (t/a) (t/a) （m） 1 10t steam boiler 35 15117 0.72 42.9 54.95 2 35t steam boiler 70 122666 173.84 460.9 504.73 3 Converter 1# 45 18201 27.3 — 20.86 4 Converter 2# 45 16709 25.06 — 20.86 5 Converter 3# 45 20643 30.96 — 20.86 5# BF cast house 6 dedusting 45 586956 292.3 — — 7 RHF in section mill 60 27790 1.61 90.2 36.16 8 RHF in strip mill plant 42 26591 0.93 48.6 43.02 9 RHF in bar mill plant 45 54952 3.14 107.6 71.72 10 RHF in sheet plant 25 25918 1.44 72.7 35.68 11 RHF in plate mill plant 50 61012 14.41 100.8 521.96 12 RHF in rebar mil plant 25 5281 0.11 6.5 8.90 13 RHF in wire rod mill plant 90 23934 0.77 36.9 36.30 14 1#-5# air stove 50/60/36 237024 13.015 745 296.44 Stock house dedusting in 15 BF 3# 45 103890 64.525 — — Stock house dedusting in 16 BF 4# 30 196166 87.133 — — Stock house dedusting in 17 BF 5# 36 83459 48.037 — — Coal injection in old BF 18 plant 28 12130 18.618 — — 19 Coal injection from BF5# 40 14229 14.474 — — Annealing process in 20 sheet plant 36 5824 0.34 17.6 — 39m2 sintering machine 21 head 60 155083 199.93 756.1 1470.0 39m2 sintering machine 22 tail 45 319834 156.636 — — Material crushing for 39m2 23 sintering machine 30 14971 8.566 — — Flux crushing for 24 39m2sintering machine 30 24265 17.914 — — Sinter crushing from 25 39m2 sintering machine 45 90897 56.739 — — 32m2 sintering machine 26 head 80 139388 200.16 458.4 1205.88 32m2 sintering machine 27 tail 45 278499 149.54 — — Sinter crushing for 32m2 28 sintering machine 35 152847 70.652 — — Exhaust Offgas amount Soot NO SO No. Offgas sources stack height x 2 （104m3/a） （t/a） (t/a) (t/a) （m）

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Material crushing for 32m2 29 sintering machine 20 47899 21.509 — — Flux crushing for 32m2 30 sintering mchine 20 29118 9.786 — — 31 Coke oven1#-2# 100 97907 4.99 257.4 130.18 32 100t EAF 35 508840 174.53 — — Pelleting shaft furnace1#、 33 2# 60 201698 142.73 122.9 950.92 Bentonite dedusting in 34 pelleting system 12 4679 0.9 — — 35 EAF LF 35 16741 24.44 — 12.96 36 Wide plate / coil plant 45 1124500 161.32 91.51 75.82 Total — 4865658.0 2219.074 3416.01 5476.48

Table 4-7 Inorganized emission of atmospheric pollutants in NISCO Side length of No. Pollution sources Soot/dust (t/a) sources(m2) 1 Coke oven body 854.763 155×20 2 BF casthouse 3758.008 170×22 3 BF stock house 1240.987 170×6 4 Converter workshop 1329.362 200×96 5 EAF workshop 590.547 155×62 6 Coke oven coal stock yard 110.09 440×40 7 Material stock yard No.11 51.51 520×35 Coal stock yard for 8 8.08 50×20 thermoelectric plant Primary material stock yard close 9 338.653 338×30 to the Yangtze river 10 Slag storage yard 11.312 320×100 Wide plate / coil plant converter 11 72.00 shop 12 Wide plate / coil plant HM mixer 21.72 Total 8387.032 —

4.1.6.3 Current status of solid waste discharge Please see table 4-8 for the generation and discharge of solid wastes in NISCO.

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Table 4-8 Category, utilization amount and method of solid wastes from existing projects in NISCO Utilization Utiliza. Generation Category Name amount ratio Utilization method amount(t/a) (t/a) (%)

Hazardous Tar 28600 28600 100 Export or used as fuel. wastes Waste oil 281 281 100 Regeneration or used as fuel.

General Used as raw material of cement after industrial BF slag 599034 599034 100 granulation solid wastes

After selecting the scrap steel through heating, crushing and magnetic Converter slag 311423 311423 100 concentration, slag lump can be used for road paving and pit filling, while slag power for recycle. For oxidizing slag, after selecting the scrap steel through crushing and magnetic concentration, its slag lump can be used for EAF slag 160005 160005 100 road paving, pit filling, slag powder used for recycle; reducing slag can be used for making cement. Boiler ash 12300 12300 100 Brick making Other Sintering dust 32341 32341 100 wastes Pelleting dust 20889 20889 100 BF gas ash 33412 33412 100 (slurry) Sent back to sintering system for material Converter dust 47629 47629 100 mixing. /slurry EAF dedusting 8800 8800 100 ash Scale from 44591 44591 100 Steel rolling Industrial 45600 45600 100 For road paving, pit filling. rubbish Total 1344910 1344910 100

Composition and utilization of solid wastes in NISCO: A. BF slag It mainly consists of CaO、SiO2、Al2O3, etc. Please see table 4-9 for the specific composition. BF slag in NISCO will be used as the material for cement making after granulation.

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Table 4-9 BF slag composition (%) CaO SiO2 Al2O3 MgO Fe2O3 S MnO 3849 2642 67 113 0.152 0.21.5 0.11

B. Converter slag It is mainly comprised of CaO、SiO2、FeO, please see table 4-10 for details. After selecting the scrap steel through heating, crushing and magnetic concentration, remaining slag lump can be used for road paving and pit filling; small part of slag power will be sent back to sintering plant, most part will be sold to cement plant.

Table 4— 10 Converter slag composition (%) SiO2 MnO Al2O3 CaO MgO FeO Fe2O3 P2O5 11.715.5 3.074 11.57 4953.38 3.0610 1117.20 6.898 1.672

C. EAF slag It is devided into oxydizing slag and reducing slag. Oxidizing slag mainly consists of CaO、SiO2、FeO, etc. Please see table 4-11 for details. After selecting the scrap steel through drop hammer crushing and magnetic concentration, remaining slag lump can be used for road paving and pit filling, while slag power for recycle. Table 4-11 EAF oxidizing slag composition (%) CaO Al2O3 SiO2 TFe Fe2O3 FeO MgO MnO P 32.944 2.4815.5 10.3426 4.2312.8 0.867.8 4.6722. 5.971 0.0160.1 0.714.68 2 9 .3 5 6 9 9 99

Reducing slag mainly consists of CaO、SiO2、Al2O3、MgO, etc. Please see table 4-12 for details. It can be used as raw material for making the white cenment.

Table 4-12 EAF reducing slag composition (%) CaO Al2O3 SiO2 TFe Fe2O3 FeO MgO MnO P 31.657.6 4.8617.8 16.7222. 0.1319. 0.056.9 0.4518. 0.240.7 0.0140.0 5.522.2 3 4 85 45 5 7 1 47

D. Sintering dust It consists of soot / dust collected by dedusting system from sintering machine head / tail, product sizing, cooling and sieving process, etc., please see table 4-13 for details. Its main composition is FeO, CaO, SiO2, and all of them will be sent back to sintering system for material mixing.

Table 4-13 Sintering dust composition (%) FeO Fe2O3 CaO SiO2 Al2O3 MgO MnO 10 50 10 7 1.85 3.4 0.12

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E. BF gas dust (slurry) BF gas cleaning will be done by the gravity dust catcher and veturi tube catcher; the former is used for collecting gas dust and the latter for gas slurry. Please see table 4-14 for detailed composition. BF dust and slurry mainly consists of FeO and fixed carbon, which will be sent back to sintering system for material mixing.

Table 4-14 BF dust and slurry composition (%) FeO Fe2O3 CaO SiO2 Al2O3 MgO S Fixed carbon 510 40 812 1015 57 23 0.40.5 1550

F. Industrial refuse Industrial refuse in NISCO is mainly waste refractory material. The lining of BF, HM mixer, HM ladle, converter, EAF, and RHF invovles refractory; relining process will result in a certain amount of waste refractory. Its main composition is Al2O3 and SiO2. Lump molding mass can be used for building material or making firebrick after crushing; crushed / fine refractory can be used for road paving and pit filling. 4.1.7 Environmental problems in NISCO 4.1.7.1 Existing environment problem  Water recycle ratio seems a little lower, only 87.2% in 2003, which does not comply with the requirements of clean production process.  Without any treatment, most sanitary sewage is mixed with industrial sewage and discharged, which will exert influence on surface water environment.  There are a lot of inorganized emission sources of atmospheric pollutant, which will result in a high concentration of particles (Eg.: item 4, 5, 6, 7, 9, 10) in the air and affect the air environment.  Secondary fume / dust from 30t converter in old steel making plant results in heavy pollution, and there is no treatment for HM mixer fume in this plant as well.  Dedusting projects for casthouses from BF No.1 to No. 4 in old iron making plant have not been completed.  Dedusting projects for stock houses from BF No.1 to No. 3 in old iron making plant have not been completed.  There is no dedusting facilities for material stock yard in old production area.  Converter gas is not recovered yet in Wide Plate /Coil plant although the gas recovery device has been built; recovered gas will be used to generate electricity and NISCO is scheduled to incorporate it into power network in 2005.  As HM mixer will be changed into torpedo car, HM reladling station and

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dedusting system are under construction and will be completed and put into use by April 2005.  There is a big dust nuisance at converter slag disposal yard in Wide Plate / Coil plant, which has resulted in heavy secondary pollution and can be solved by installing spray equipment. 4.1.7.2 Environmental issues of built subprojects during project construction  The NH3— N of waste water from coking shop in new iron making plant is not up to required standards, the waste water treatment system is subject to A2/O process and under commissioning at present; it is estimated that the treated water will reach the required standards in June 2005 and be sent to coke quenching and slag granulating process.  Due to air leakage at lime silo, there was a heavy secondary polltution in sintering shop, which has been solved by repair welding now. 4.2 Engineering analysis of construction projects 4.2.1 Construction projects 4.2.1.1 Main projects and auxiliary projects The construction projects mainly consist of one 360m2 sintering machine and one 180 m2 sintering machine, one 60-batteriy coke oven, two 55-battery coke ovens, one 2000m3 BF and one 2000m3 BF, one 120t converter, one 2500mm continuous slab caster, Steckel mill finishing line and relevant system, auxiliary living and production facilities, please see table 4-15 for details.

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Table 4-15 Overview of construction projects Project No. name Main process description Main facilities Annual capcity Material receiving hopper for truck, transfer station No.1, fuel silo, coarse crushing room and fine crushing room; Flux bunker (at material Fuel receiving and preparation proportioning room), transfer system; station No.3, flux crushing Flex receiving and preparation room and sieving room; 2 sintering system; Material proportioning room, 180m sintering machine: machines: Material proportioning system; quicklime tank; 1,868,000t ; 360m 2 1 2 180m ×1 Material mixing system; Primary mixing room, transfer sintering machine: 2 +360m ×1 Sintering, cooling and main station No.5, preballing room; 3,736,000t . blower room; Sintering machine, cooling Product sizing system; device and main blower room; Remaing heat recycle. Sinter sieving room No.1 and No.2, product sampling room, transfer station No.6 and No.7; Ventilation , dedusting, power supply and distribution, water supply and discharge. Coal receiving device, crusher room, coal / coke sample preparation room; Coal charging dedusting ground station, coke discharge coke ovens: dedusting ground station, coke 55-battery×2 Coal preparation shop; Two 55-battery coke dry quenching system; +60-battery×1 Coking shop; ovens: 1,086,800t; Coke wharf, coke sieving （Coking Sieving and storage system; 60-battery coke oven: chamber is 6m building, coke storage bin, Gas cleaning system. 5,928,ooot. 2 high） transfer station; Desulphur, sulphur ammonia and ammonia evaporating device, final cooling, benze absorbing, crude benzol distillation, gas blowoff device. Dry quenching furnace, waste Coke dry heat boiler, electric generating quenching Coke dry quenching system unit, deduster, related soft 140+75t/h project, etc. water system and recirculated water system. Ore / coke bin and material handling system;； BLT and curde gas system; BF body system; Coal preparatipon and injection (PCI) system; 3 3 Tuyere platform, casthouse, 2000m BF: 1,539,000t BF: 2000m ×1+ 3 One 2000m BF, pig iron; 3 2550m3×1 and slag treatment system; One 2550m3 BF. Hot air stove system, pig cast 2550m3 BF: 1,961,000t machine room, thermodynamic pig iron. facility; Fuel gas facility, watersupply / discharge facility; BF TRT electric generating system; Ventilation and dedusting

54 Environmental Impact Report

facility. HM reladling station and dedusting system; HM desulphur pretreatment and dedusting system; Scrap disposal yard and weighing room; Slag room, bulk material 220t torpedo car; (ferroalloy, etc.) receiving HM reladling station; hopper and feeding system; HM desulphur pretreatment Converter fume cleaning and 120t converter device; gas recovery system; Refined liquid steel: No.2, 2500mm One 20t converter with top 4 Converter shop secondary 1,672,500t, continuous slab and bottom bolwing; fume treatment system; slab :1,649,000t. caster. One 120t LF; 18t/h quick action fuel gas One 120t RH VD; boiler room; One 2500mm continuous slab Power supply / distribution caster. system and water supply / discharge system; Compressed air drying room; Recirculated water treatment system for steel making, caster and steel rolling process. Workshop and plate yard; nd Across-the- Bay crane; 2 shear line; One WR Finishing capacity: 3500mm Steckel Recirculated water treatment 5 grinder; 500,000t wide plate / coil. mill finishing line system for steel making, One set of cold levellor. caster and steel rolling process. The yard after modification will keep existing trains, truck Strip rubber No.4 to be built for receiving system, dock primary material stock yard; receiving system No.1; dock Secondary stock yard to be Material stock receiving system No.2 will be 6 built (including strip rubber yard built, Receiving belt No.6 and No.7, and related conveyor will be enlarged and mixing stocker and mixing the capacity of relevant reclaimer). facilities will be improved as well. A 3000-5000t floating dock to be built along the coastline of production area In NISCO, including six 2000t master Shipping capacity: 6 ~ 6.4 berths for final products, three — million tons. 300-500t slave berths. The total length and width of the harbor is 400m and 170m Dock, harbor separately. 7 and elevated Railway signal and railway telecommunication facility; Water supply / discharge facility; Ventilation and air conditioning Crossover railway project facility; Civil work facility; Power supply and distribution system; Elevated railway bridge facility.

55 Environmental Impact Report

One air turbo compressor, one O2 turbo compressor, one N2 turbo compressor; One air precooling system, one air purifying system, one air fractionating system, one boosting / expanding system, 20000m3/h one instrumentation control system and one electric control system; Water treatment sustem, one Oxygen making One oxygen making unit; final gas storage system, one and combined 8 One thermoelectric plant cryogenic liquid system; One heating / electric featuring general use of gas. peralite warehouse. generating unit One full steel-construction fuel gas boiler (NG-220/9.8Q) featuring High temperature, high pressure, natural circulation, balanced Installed capacity: ventilation; 2×50+1×12 MV High temperature high pressure Bleed-condensation steam turbine (C 50 -8.83 / 1.27-Ⅱ); QFW-60-2 turbo generator. Genaeral Newly-built 11km railway; drawing and 4 2 Feight volume: 9 Newly-built road:10×10 m ; - transportation, 3,540,000 tons Earthwork amount:76×104m 3 etc.

4.2.1.2 Public projects 4.2.1.2.1 Electric power, steam and compressed air The sintering, coking and iron making subprojects of NISCO technical innovation projects during the 10th five-year plan period are powered by the newly-built main substation No.5 at new production area close to the Yangtze river, 120t converter No.2, 2500mm continuous slab caster and Steckel mill finishing line are powered by the main sunbstation No.3. The steam required by all subprojects of construction project in NISCO are supplied by existing facilities and incorporated public facilities, while the compressed air is supplied by compressed air station of each subproject itself. Please see table 4-16 for details.

Table 4-16 Consumption list of electric power, steam and compressed air of each subproject of construction project Steam Electric Compress consumpti No. Project name consumption ed air on 4 4 3 （×10 kwh/a） 4 (×10 m /a) (×10 t/a) Sintering machine: 1 2 2 19800 20.37 2900 180m ×1+360m ×1 Coke oven: 55 battery 2 ×2+60 battery×1 8764 21.6 6933

56 Environmental Impact Report

Energy-saving project (Eg.: coke dry quenching 2171 0.16 1694 system) 3 3 3 BF: 2000m ×1+2550m ×1 46900 14.0 14350 120t converter No.2 and 4 2500mm continuous slab 1283 20.4 10625 caster 3500mm Steckel mill 5 784 0.4 1150 finishing line Total 79702 76.93 37652

4.2.1.2.2 Gas supply and fuel The required O2,N2 and Ar2 by construction project will be piped from 20000m3/h oxygen making unit. BF hot air stove for construction project will utilize the mixed gas (BF gas, COG gas and converter gas), 120t converter will utilize the mixed gas, continuous slab caster will utilize the COG gas. The above fuels are from all coke ovens, blast furnaces and converters in NISCO. 4.2.1.2.3 Water supply and discharge The required water by all subprojects of NISCO technical innovation projects during the 10th five-year plan period is supplied from one water purification station (3000t/h) built at new area along the Yangtze river; besides, one chemical treatment water station will be built (40t/h), the water from this station will be up to salt-free standard grade 1 and be sent to BF soft water recirculation station and sintering plant. The construction project will implement the principle of ‘water supply by serial piping system’,‘improve the cleanliness with fresh water’,‘dilute the turbid water with the clarified water’and ‘recycling utilization’; its total water consumption is 58673.4t/h, thereinto, make-up fresh water flow rate is 1842.7t/h, reciculated water flow rate is 56830.7t/h, recycle ratio is 96.9%. The construction project will follow the mechanism of ‘separate discharge of rain and sewage’and ‘separate diffluence of clarified water and sewage’. The discharged water from combined heat and electric generating unit and new steel-making area will be sent to the industrial water purification station to be built close to drain point WS-06; the treated water will be sent to all plants in NISCO as make-up water. This station will be put into operation in October 2005 and 80% (4116.8t/h) waste water through drain point WS-06 (5146t/h) can be purified here and used for production purpose again. After that, the waste water from production process in NISCO will be greatly reduced from 5557.61×104 t/a to 1362.65×104 t/a. t/h. As the emploees for construction project will come from inside NISCO, no employees will be increased; therefour, there will be no increase of water

57 Environmental Impact Report

for living use and there will be no new increase of sanitary sewage; the sanitary sewage in construction project area will be recycled or discharged into the Yangtze river after treatment. Please see figure 4-2 for details of total water balance.

58 Environmental Impact Report

431．7 110.1

Fresh water consump.at 110.0 sintering11system 0.1 Water consump. Of recirculated system循

22.3

Fresh water consump. Water consump. At 65.0 Waste water treatment at aat coking81.5 system coking plant焦化用水 station 酚氰废水处理 Makeup water for coke quenching 熄 25851 645.4

Consumption at BF system Water consump. Of Makeup water for slag 炼铁工序新鲜水用量586.2 recirculated system 循 granulating system Fresh water total consum 7797 221

Consumption at Water consump. Of 90 steelmaking and311.0 caster炼钢 reciculated system 循

800 26

14 Consumption at steel Water consumption Of Recycled after treatment 40.0 rolling轧钢工序新鲜水用 recirculated system 循 at steel amking area炼钢

104 132 187.9

Consumption at material Water consumption Make up water for NISCO yard原料场工序新鲜水用187.9 ofclarified water production

21644 393

FW consump. Clarified water 133 to 新 鲜 用 水 Heat/elec. generator 526 be used for production 清下水 133 补充全厂生

Fig. 4-2 Total water balance of construct.

59 ENVIRONMENT IMPACT REPORT

Water supply / discharge and water flow balance of each subproject is separately described as follows:

A. Sintering system B. Coke ovens C. Blast furnace D. 120t converter No.2 and 2500mm continuous slab caster

All the subprojects of 120t converter No.2 and 2500mm continuous slab caster will follow the principle of ‘water supply by serial piping system’,‘improve the cleaniliness with fresh water’,‘dilute the turbid water with the clarified water’ and ‘recycling utilization’, its total water consumption is 8108t/h, thereinto, make-up fresh water flow rate is 311t/h, reciculated water flow rate is 7797t/h, recycle ratio is 96.2%.

The production waste water for all subprojects of 120t converter No.2 and 2500mm continuous slab caster is mainly from the water discharged by caster clarified water recirculation system, converter gas dedusting, compressed air station purification recirculation water system, and discharged amount is 90t/h. The discharged water will be sent to industrial water purification station to be built, the treated water will be reused for production of whole plant as makeup water. This station will be put into operation in October 2005; after the startup of above station, 80% (4116.8t/h）of discharged water from this drain point WS-06（5146t/h）can be recycled, and waste water discharge amount will be greatly reduced from 5557.61×104 t/a to 362.65×104 t/a. Please see figure 4-8 for details. ENVIRONMENT IMPACT REPORT

1386 14

14 Soft water closed recirculat. Plate exchanger system

3899 98

228 For indirect cooling clean Cooling tower 冷 130 water recirculation system 间 却塔

950 47

70 Caster clarified water recirculation Sedimentation, filter 32 and cooling 沉淀 9

952 51

60 Dischargedwa Converter gas dedusting clarify. Radiative 49 system ter 净下水 Fresh water sedimentation 40 90 consumption 480 11

20 Air cooling station fresh water Cooling tower 9 recirculate. syste

Figure 4— 8 Water consumption balance of 120t converter No.2 and 2500mm continuous slab caster（t/h） ENVIRONMENT IMPACT REPORT

E. 3500mm Steckel mill finishing line The capacity of 3500mm Steckel mill finishing line will increase from 1,000,000t/a to 1,500,000t/a. Water increase amount is 840t/h; thereinto, make-up water amount is 40t/h (fully used for clarified water recirculation system of steckel and finishing line), recirculated water flow is 800t/h, and recycle ratio is 95.2%. Production waste water of 3500mm Steckel mill finishing line is mainly from clarified water recirculation system for both Steckel mill line and its finishing line; cooling water from this system will be recycled after stabilizing ang sedimentation process, only amount of 14t/h will be discharged. This discharged water will be sent to industrial water purification station to be built close to drain point WS-06 in NISCO, the purified water here will be used for production makeup water of all plants in NISCO. This project will be put into use in October 2005, the startup of this project will recycle 80%（4116.8t/h）of drain point WS-06（5146t/h）for production, that is to say, the discharge amount will be reduced from 5557.61×104 t/a to 1362.65×104 t/a, please see figure 4-9 for details. 800 26

Fresh water consump. Discharged Mill & finishing line Water stabilizing and water amount clarifiedwater system sendimentaion process 净下水 40 14

Fig. 4-9 Water balance (t/h) of 3500mm Steckel mill and finishing line

F. Material stock yard G. Combined heat / electric generating and oxygen making unit

4.2.2 Consumption of main raw / auxiliary material Please see table 4-17 for the consumption of main raw / zuxiliary material and fule gas of all subprojects of construction project. ENVIRONMENT IMPACT REPORT

Table 4-17 Consumption list of main raw / auxiliary material and fuel gas No Project name Name Unit Amount Bed blending material 104t/a 503.17 Return fines 104t/a 174.65 Quicklime 104t/a 25.21 Sintering machine: 4 2 Limestone 10 t/a 25.77 1 180m ×1 4 2 Sinter dust 10 t/a 24.95 +360m ×1 Coke breeze 104t/a 28.01 COG gas 104m3/a 2234 Lube oil t/a 168.56 Cleaned coal for coking use 104t/a 22．34 Wash oil t/a 2235 Sulphuric acid（93%wt） t/a 15038 NaOH（40%wt） t/a 5403 Coke oven: HPF desulphurizer t/a 14 2 55-battery×2 Water stabilizer t/a 142 +60-battery×1 Liquid chlorine t/a 20.5 Aggregate iron t/a 1253 Ca(OH)2 t/a 232.4 Na2CO3 t/a 2790 Phosphate t/a 92.6 SInter 104t/a 376.0 Pellet 104t/a 86.6 Lump ore 104t/a 28.9 Limestone 104t/a 5.3 Silica 104t/a 5.3 Balst furnace: Manganese ore 104t/a 7.0 3 2000m3×1+ Coke 104t/a 126.0 3 2550m ×1 Pulverized coal 104t/a 56.0 Chlorine 104m3/a 9450 BF gas 104m3/a 158550 COG gas 104m3/a 735.0 Converter gas 104m3/a 22750 Oxygen 104m3/a 14308 Passivattion powdered 4 10 t/a 0.07 maganesium Lime powder 104t/a 0.50 Hot metal 104t/a 175 Scrap steel 104t/a 15.35 Active lime 104t/a 10.26 120t converter No.2 Dolomite fines 104t/a 2.98 and 2500mm Fluorite 104t/a 0.50 4 4 continuous slab Ore 10 t/a 2.50 caster Ferroalloy 104t/a 2.50 Mold powder 104t/a 0.10 Chlorine 104Nm3/a 3964 Oxygen 104Nm3/a 9624 Argon 104 Nm3/a 302 Mixed gas 104 Nm3/a 2550 COG gas 104 Nm3/a 574 4 3500mm Steckel mill Slab 10 t/a 50 5 4 3 finishing line O2 10 Nm /a 2.7

The compositions of the main raw materials and fuels as well as the sinters for sintering process are detailed in Table 4-18, 4-19 and 4-20. The physical and ENVIRONMENT IMPACT REPORT

chemical characteristics of the main materials, harmful to environment, used in the coking process and their safety performance during storage and transportation are detailed in Table 4-21. The quality requirements of the main raw material and fuel for iron-making are in Table 4-22.

Table 4-18 Composition of ferric raw material and flux

Compositon Burned Water TFe S Si02 Ca0 Mg0 (％) loss content Material Mixed material 61.5 0.056 4.5 2.1 1.6 3 6 Sinter powder 59.4 0.025 4.96 8.44 1.61 — — Quick lime — — 4.1 80.5 — 8 — Lime — — 1.5 50 1.0 45 —

Table 4-19 Composition of fuel (coke powder)

Composition Carbo Tfe Si02 A12O Mg0 S Ca0 K20 Na2O (％) n 3 Fuel Coke powder 85.9 0.45 6.5 4.2 0.23 0.40 0.85 0.153 0.08

Table 4-20 Main composition of sinter

Compostion Tfe FeO Si02 Mg0 S Ca0 Ca0/ Si02 (%) Material Sinter 58— 59 8— 10 4.96 1.61 0.025 8.44 1.7 ENVIRONMENT IMPACT REPORT

Table 4-21 Physical and chemical characteristics as well as safety performance of main harmful material during coking process Safety Material Physical and chemical characteristics Bio-toxicity performance A compound of benzol series, a clear and yellow liquid with aromatic odor, molecular weight of 78.11, Flammble, Crude benzol boiling point of 150℃, specific gravity of 0.88. Low explosive Insoluble in water, soluble in ethanol, acetone and aether. A clear and colorless liquid with strongly pungent smell, molecular weight of 17.03, boiling point of Ammonia Flammble Low -33.5 and specific gravity of 0.82, easily soluble in water. A colorless, pungent gas with molecular weight of Pungent to SO2 64.06, boiling point of -10.4℃ , specific gravity of — respiratory 1.43, soluble in water and ethanol. tractr A colorless, mephitic gas with molecular weight of H2S 34.08, boiling point of -60.4℃ , specific gravity of — Neurotoxic 1.19, soluble in water and ethanol. A colorless, flavourless gas with molecular weight of 28.1, boiling point of -191.1℃ , specific gravity of CO Flammble Low toxicity 0.79, slightly soluble in water, soluble in ethanol and benzol. Benzopyrene A colorless, flavourless gas with molecular formula of C20H12, boiling point of 23.7, soluble in water and Flammble Carsinogenic （BaP） all kinds of organic solvent.

Talbe 4-22 Quality requirements of main raw material and fuels for iron-making Quality requirements Total Fluctuation Size （mm） Tumbler Ash sulphur Material iron（%） of Iron index content （%） content （%） （%） Sinter ≥58.5 ±0.5 5-50 ≥72 - - Pellet ≥65 ±0.5 6-18 ≥90 - - Lump ≥64 ±0.5 8-25 - - - ore Coke - - 20-75 - ≤12 ≤0.5 4.2.3 Main metal balance, gas balance and sulphur balance for the proposed project The main metallic material balance of NISCO after the associated project in the ten fifth year plan is outlined in Figure 4-12. The gas balance of NISCO for the associated project with the proposed project in the ten fifth year plan is detailed in Table 4-23. The sulphur balance for the proposed project is detailed in Table 4-24. ENVIRONMENT IMPACT REPORT

legend

Old area Purchased pellet lime25.77 New area Crushed coke5.6 86.6 Limestone25 Coking coal proposed limestone3.96 224.2 Fuel 12.01 铁精矿 95.5 lime3.88 Lumpore28.9 lime (See *)15.8 e 5.3 (See**)503.2 Coking coal 76.7 膨润土 1.42 (See *) 2.43 Manganese7.0 (See**)77.41 coking returnore silica 5.3 crushcokesintering 2×55＋1×60 孔 fluorite1.8 2 40 coking pellet sintering 1×180＋1×360m 167.96 2×42 孔 2×8m2 2×32m2+（2×39m2） boughtlumpore 560.4 184.4 Purchasedcoke9. 56 95 31 126 For small 4 80 （220） 375.6 fromnewarea25.96 Blastfurnace25.96 blast funace 85.76 BlastFurnac Coal 56 e blastfurnace 3 Slag 119.4 1×2000+1×3502550m 4×350+1×300m3 scrap57 scrap50 220 scrap 40.7 Hotmetal D-S 200 20 hotmetalnew22.3 ore 5 Castiron ferroalloy5 311 For EAF 22.3 17.7 Converter30×3 EAF 100t×1 230 92.8 2×120tBOF LF 334.5 230 LF+VOD 2×120tLF+VD+RH 92.8 334.5 Billet billetcaster 1× 3200mmslabcaster Slab caster Rectangulardb illetcaster caster 1× 2500mmslabcaster 90 164.9 67 altenative 68 85 billet 159.6 132 88 133 54.7 67.2 steckelmill proposedwideplat 2500mmplatemill sectionmill barmill stripmill wirerodmill emill

wirerod65 plate150 wideplate150Mt plate120 section82 bar125 strip50

Figure 4-12 Main metallic balance（in 10.000t/a） ENVIRONMENT IMPACT REPORT

Table 4-23 Gas balance for the associated projects Annual CalorificWorking Yearly gas consumption No. Item production value time 104m3 t/a kJ/m3 h Blast furnace gas COG BOFgas Input 630000 71400 28430 1 New blast furnace1×2000m3 155 3250 8400 279000 2 New blast furnace1×2500m3 195 3250 8400 351000 3 New coking 2×55+1×60 battery 168 18000 8760 71400 4 Converter 1×120t 334.5 6690 7272 28430 Output 709030 48436 284 1 New coking 2×55+1×60battery 168 4651 8760 131410 13790 2 New sintering 1×180+1×360 560.4 18000 7920 2802 3 New blast furnace 1×2000m3 155 3633 8400 113220 3020 4 New blast furnace 1×2500m3 195 3633 8400 142440 3800 5 Converter 1×120t 334.5 7299 7272 8290 3150 6 Power plant 1×12MW 3406 7000 98000 1400 7 Power plant 1#×50MW 6198 7000 56070 14010 8 Power plant 2#×50MW 3250 7000 147000 9 Auxiliary and living consumption 18000 8760 1750 10 Package boiler for VD 18000 6500 4000 11 Losses and others 12600 714 284 After balance -79030 22964 28146 Equivalent blast furnace gas 106092

67 ENVIRONMENT IMPACT REPORT

Table 4-24 Sulphur balance for the proposed project Input Output Input Output S No. Input quantity S content S content Output quantity S content conten material (10,000 (%) (t/a) material (10,000t/ (t/a) t (%) t/a) a) Ⅰ.Sintering (180m2+360m2) Mixed 1 503.20 0.056 2817. 94 Sinter 560.24 0.025 1400.60 powder Coke bedding 2 28.01 0.4 1120.40 56.02 0.025 140.05 powder layer Returned 3 Lime 25.21 0 0 252.11 0.025 630.28 ore Limeston Exhaust 4 25.77 0 0 — — ▲ 2641.06 e gas bedding 5 56.02 0.025 140.05 — — — — layer Returned 6 252.11 0.025 630.28 — — — — ore Sintering 7 39.22 0.025 98.05 — — — — powder 8 COG 2802 200 5.27 — — — — Sub-to 4811.99 4811.99 tal Ⅱ.Coking（55battery×2+60 battery ×1） 1 Raw coal 223．35 0.7 15636 Coke 167.96 0.59 9909.64 2 BF gas 131410 115* 142.23 COG 71400 200 134.4 desulfuratio 3 COG 13790 200* 25.96 71400 — 5591.96 n Exhaust 4 — — — — — — ▲ 168.19 gas Sub-to 15804.19 15804.19 tal Ⅲ．Ironmaking（2000m3×1+2550m3×1BF） 1 Sinter ore 376.0 0.025 940 hot metal 350 0.035 1225 pellets BF slag and 2 86.6 0.01 86.6 126.5 0.71 8980.25 ore gas dust 3 lump ore 28.9 0.01 28.9 BF gas 639576 115* 692.25 Exhaust 4 coke 126.0 0.59 7434 — *— ▲ 172.99 gas Pulverize 5 56.0 0.43 2408 — — — — d coal 6 BF gas 158550 115* 171.61 — — — — 7 COG 735 200* 1.38 — — — — Sub-to 11070.49 11070.49 tal Ⅳ. Thermal power 1 BF gas 341690 115* 369.83 Exhaust gas ▲ 404.11 2 COG 18210 200* 34.28 Total 404.11 404.11 Ⅴ.Wide plate / coil 1 COG 3792 200 7.14 flue gas ▲ 17.51 2 BF gas 8632 115 9.34 16.48 17.51 total sulfur discharge amount ▲ 3402.83 Notes： 3 3 1) Gas unit is for 10,000m /a，Sulfur ratio refer to H2S(mg/m ) content;

68 ENVIRONMENT IMPACT REPORT

2) Above table steel rolling include medium section mill, strip mill, sheet mill, plate mill, bar mill, wire rod mill, small section mill etc; 3) ▲ is for discharge sulphur amount.

4.2.4 Main production process and waste release in each sub-project of construction project 4.2.4.1 Sintering 4.2.4.2 Coking 4.2.4.3 Ironmaking 4.2.4.4 Steelmaking and slab continuous caster BF hot metal transferred from Yangzi River new plant area by torpedo hot metal ladle is charged into hot metal pre-treatment desulfuring device to do the desulfuration, and after slag removal will be transferred to converter by crane. After charging some active lime and dolomite through high level stock, and scrap through material chute into converter, rotate the converter into vertical position, then starts oxygen blowing after lowering of oxygen lance, while the carbon inside hot metal is oxidated into CO. Flux is reacted with certain elements and forms slag. Oxygen blowing is stopped once temperature and composition reach its target value. Steel is tapped from converter, then be sent to LF refining. Bulk material of limestone, dolomite and alloy is added into the converter depending on furnace condition and steel grade, after heating, alloying, slag formation, desulphurization, composition and temperature uniformity, inclusion removal etc, then become the qualified liquid steel and transferred to caster. Converter gas is cleaned and made fuel, sub-project converter process and waste release is shown in table 4-16.

Ladle containing qualified liquid steel is transferred to ladle turret by crane. The turret turns ladle to the position just above tundish. After opening of slide gate of the ladle, liquid steel flows into tundish. When liquid steel in the tundish reaches a certain level, slide gate of tundish is opened, steel is flowed into mould, and form the chilling shell inside mould. Strand is guided in guiding system and segment, and passes secondary cooling system, during such stage the layer of strand becomes thicker. After strand passes straightening roll, it reaches primary cutting machine via intermediate roller table for dividing length. The divided slab is transferred to secondary cutting machine for cut-to-length cutting. The cut-to-length slab is marked and sent to roller table of slab pusher/ stacker. The process and its waste release is shown in Table 4-17.

Scrap yard BF hot metal Bulk material Alloy yard

s yard

c Ferroall r fume Limestone. a

p fluorite oy

Scrap chute Mixer Underneath heat 69 stock desulp fume hur

Hot metal BLT stock High level ENVIRONMENT IMPACT REPORT

Leveling segment Straightening segment Arc segment Bending segment

70 ENVIRONMENT IMPACT REPORT

Noise

Roller table Cutting machine Roller table Slab marker before cut

Waste water Scrap

Pusher and stacker Roller table Deburrer Roller table

scrap

Offline stack and check

Figure 4— 17 Caster process and waste release

4.2.4.5 3500mm Steckel mill finish line The wide plate production capacity of 3500mm Steckel mill finish line rises from present 1,000,000 tons/year to 1,500,000 tons/year. Steckel mill capacity has already arrived 1,500,000tons/year, hence only need to build the second finish line to cut the additional 500,000tons/year. #2 finish line process and waste release of 3500mm wide plate mill is shown in figure 4-18.

N N

Shearing of two Byproducts from Steckel mill line shears Shearing at cold levellor

S N

Wide plate71 / coil Roll grinder

S ENVIRONMENT IMPACT REPORT

4.2.5 Pullutant generation and emission of construction project 4.2.5.1 Atmospheric pollutant generation and emission A. Sintering system B. Coking system C. Iron-making system D. Steel-making and continuously casting system

The density of Dust Fume produced when hot metal desulphuration and deslag is 2000mg/Nm3，and the fume meeting standard will be discharged from stack to atmosphere after bag de-dust. The discharged volume of waste gas is 21000×104 m3/a，with discharging stack 45 meters high, discharging fume density 10mg/Nm3 and discharging volume 2.1t/a. Primary fume produced during the procedure of 120t converter metallurgy is cleaned, recovered, utilized, and discharged after reaching the standard, by OG Double Venturi Wet Fume Cleaning System. That means fume inside converter flows through throat, active fume collection canopy and fixed fume collection canopy to evaporated cooling duct, secondary Venturi, demister and temperature lowering tower to lower the temperature, then gas flows to gas container( built in phase one) to be recovered, bleed fume will be bleeded from 80m high stack ( built in phase one). When CO percentage of fume is higher during bleeding, the ignition device will be automatically lit to burn the waste gas and exhaust them to atmosphere. The exhaust amount of waste gas is 60000×104 m3/a，exhaust stack is 80m high, and dust density is 100000mg/Nm3. After OG cleaning treament, the gas can reach the standard, then be exhausted, with the exhaust amount 30.0t/a. No.1 converter has built the secondary de-dust system, and keeps the place for 2 future de-dust openings for No.2 converter front exhaust dust collection canopy, 10 future de-dust openings for No. 2 converter high level auxiliary raw material stock, 3 future de-dust openings for No. 2 converter ferroalloy addition stock, in this technical technical innovation project, above 15 de-dust openings will be connected to secondary dedusting system which has already been built in the construction of No.1 converter. Because the temperature for fume flowing into the bag dust catcher shouldn’tbe more than 120℃ , but when hot metal charged into the converter, the fume temperature is 220℃，so need to mix cold air to

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cool, while fume temperature for converter blowing is 80℃，blowing fume can be used for cooling utility, which means, fume from No.1 converter when charging hot metal can be cooled by No.2 converter oxygen blowing fume, so the de-dust system can be designed as per Phase one and Phase two using one common secondary de-dust system. This secondary de-dust system can collect the overflow fume which can’tbe completely collected by the primary system of No.2 converter oxygen blowing, including much fume overflowing from the canopy when lance injection, fume from scrap addition and furnace repair and secondary fume from tapping. This secondary de-dust system is alternately used for hot metal charging and heat blowing between No.1 converter and No.2 converter, and waste gas exhaust volume and exhaust density can keep current data, but exhaust time will be doubled. In order to simplify calculation, take half exhaust volume of the secondary de-dust waste gas as secondary dust exhaust volume of construction project. The secondary dust exhaust volume of construction project is 360000×104 m3/a，exhaust stack height is 60m, and dust density is 4000mg/Nm3. After treated by pulse cleaned bag de-dust, the dust reaches the standard and can be exhausted, with the exhaust density 40mg/Nm3，exhaust volume 144.0t/a. The high temperature fume with dust produced from ladle funace refining will be collected by fume collection canopy of funace cover, and flows along adjustable mixing wind looper, then goes into sparkle trapper. Fume passes through the sparkle trapper, then the sparkle and coarse grain among the fume will be separated. After mixed and lowered temperature with dust gas of charging system, the fume will be transferred along duct to the pulse cleaned bag dust catcher outside the main housing. Waste gas exhaust volume is 78000×104 m3/a, exhaust stack height is 30m, and dust density is 7692mg/Nm3. After dust catcher treatment, fume can reach the standard, then be exhausted, with the dust exhaust density 30mg/Nm3 and exhaust volume 23.4t/a. Above fume of five waste gases and dust exhaust density are all meet limit requirement of grade two in standard table 2 of Industrial Lime Kiln Atmosphere Pollution Exhaust Standard （ GB9078-1996 ） and Atmosphere Pollution Integrated Exhaust Standard（GB16297— 1996）. The waste gas exhausted from 2# 120t converter and 2500mm slab caster is 582000×104 m3/a，and the fume and dust exhaust volume are 208.95t/a. Waste gas pollutant exhausted without organization is the dust which can’t be collected by conveter secondary de-dust system, with the exhaust amount about 100t/a. Exhaust atmosphere pollutant under organization is shown in table 4— 34 ， and Exhaust atmosphere pollutant without organization is shown in talbe 4— 35. Atmosphere pollutant “ three accounts”is shown in table 4— 36. E. 3500mm Steckel mill finish line During the production procedure of 3500mm Steckel mill finish line, there is no organized waste gas pollutant exhaust. The inorganized exhaust waste gas pollutant is the exhaust dust which is from draught de-dust

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Table 4— 34 Organized Exhaust Atmosphere Pollutant of Converter and Slab Caster Exhaust parameters Exhaust status Standard De-du Exhaust Exha Outlet Pollut st ust Pollution Exhau Outlet Waste Disposal amount Densi Fuel inside ant perce Density Exhaust Exhau Stand mast source st diame tempe gas measures density ty st rate height rature amount ntage mg/m No. ter mg/m3 mg/m3 kg/h ard m ℃ 104m3/a % kg/h t/a 3 m Hot metal Fume Pulse bag 1 re-ladle — 45 3.6 120 63000 and 99.5 3000 15.0 9.0 9.45 — — — de-dust station dust Hot metal Fume GB16 Pulse bag 2 desulphura — 45 3.6 70 21000 and 99.5 2000 10.0 0.7 2.1 120 34 297-9 de-dust tion dust 6 OG Twin Converter Venturi Wet Fume 3 primary — 80 1.8 65 60000 Fume and 99.95 100000 50.0 4.2 30.0 — dust Cleaning dust System GB90 Converter Fume 100 78— 9 Pulse bag 4 secondary — 60 4.5 90 360000 and 99.0 4000 40.0 20.0 144.0 — 6 de-dust dust dust Ladle Fume Pulse bag 5 furnace — 30 1.6 70 78000 and 99.5 6000 30.0 7.8 23.4 — de-dust refining dust Fume Sub- — — — — — 582000 — and — — — — 208.95 — — — total dust

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Table 4— 35 Inorganized Exhaust Atmosphere Pollutant Pollution source Pollutant Discharge Size m） amount（t/a） 2# 120t converter and Fume and 100 2500mm slab caster dust 1000×200 3500mm Steckel mill finish Fume and 33 line dust Sub-total －

Table 4— 36 Atmosphere Pollutant“Three Accounts” （t/a） Project name Exhaust Producin Recover Discharg mode Pollutant g ed e mode amount amount amount organized Fume 81390 81181.05 208.95 2#120t converter and dust and 2500mm slab caster Fume organized and dust 100 0 100 3500mm wide Fume and organized 0 0 0 plate mill dust 2# shearing finish Fume organized 33 0 33 line and dust organized Fume 81390 81181.05 208.95 and dust Sub-total Fume organized 133 0 133 and dust

F. Raw material yard G. Thermal power generating unit project 4.2.5.2 Water pollutant production and exhaust status Construction project implements water using principle of water supply in series, using the new to supplement the clean, using the clean to makeup the clarifying and recycling usage, with total water consumption amount 1842.7t/h，recycled water 56830.7t/ h，recycled water utilized percentage 96.9%. Water discharge of construction project takes rain sewage and clear sewage splitflow system. Except for thermoelectric sub-project and steelmaking new plant area, all the other sub-projects don’tdischarge production waste water during the production procedure. The clean water （237 t/h）, which is discharged during the production of thermoelectric oxygen making project and steelmaking new plant area, go into industrial recycled water clean station which is going to be built near NISCO WS— 06# outlet, then supplement whole plant production water. This step “using the new and replacing the old”was implemented in Oct.2005, via this step 80%（4116.8t/h）of the discharge amount in WS— 06# outlet was used back to the production, therefore, after the construction project comes into use, the discharge amount of NISCO production waste water will be reduced greatly, from current 5557.61×104 t/a to 1362.65×104 t/a. Due to no addition of staff number in construction project, only

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production personnel allotment inside NISCO, consequently, there are not increase of the living water, and increase of the living sewage discharge amount, and in the construction project area the living sewage will be reused after disposal and meeting the requirement or be discharged to Yangzi River.

1) sintering 2) coking 3) ironmaking 4) steelmaking and continuous casting The production waste water of 2#120t converter and 2500mm slab caster sub-project mainly comes from discharge water of caster clarified water circulation system (clean discharged), converter gas de-dust clarified water circulation (clean discharged) and air compression station clean water circulation system (clean discharged), with the discharge amount 90t/ h. This clean discharged water goes into industrial recycling water cleaning station which is going to be built near NISCO WS— 06# outlet, then supplements the whole plant production water. 5) 3500mm Steckel mill finish line The production waste water of 3500mm Steckel mill finish line mainly comes from the clarified water circulation system of mill and shearing finish line. After system cooling water is disposed with water quality stability and sedimentation, the water can be recycled to use, and some can be discharged with the discharge amount 14t/ h. This clean discharge water goes into industrial recycling water cleaning station which is going to be built near NISCO WS— 06# outlet, then supplements the whole plant production water. 6) Raw material yard In every shop in the raw material yard, water flushing and discharging system converge at the sumps inside each shop, after lifted up by the sewage pump, drained to outdoor rain trough and flow into the clarifier, the top clear liquid will be reused for shop flooring flush after lifted by pressurized pump. 7) Thermoelectric generating unit and oxygenmaking project The main waste water from thermoelectric generating unit and oxygenmaking project are as follows: thermoelectrical boiler, thermoelectrical cooling water, discharge water of oxygenmaking cooling tower and living sewage. The principle of thermoelectric plant and oxygenmaking project to use the water is based on cleaning production, well using good water, circulation and utilization in series. To save the water, most cooled discharge water can be recycled to be circulation supplement water of cooling tower, and some will be discharged, the discharge amount 133t/ h. This clean discharge water go into industrial recycling water clean station which is going to be built near NISCO WS— 06# outlet, then supplements the whole plant production water. 4.2.5.3 Solid waste discharge status The main solid waste produced from construction project is as follows: 1) De-dust ash which is collected by de-dust system during the sinter

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production procedure is recovered 168,000ton/year. Because the iron composition is hign, it will be completely recovered and utilized. 2) Tar slag produced from Gas Cleaning Plant condensation blasting section during coke production procedure; remaining slag of oil washing produced from benzole condensation section; remaining mud produced from waste water disposal station; dust recovered from de-dust system. All these will be recovered and utilized by coal blending system. 3) BF water slag produced from BF ironmaking procedure, discharge gas ash from gravity dust catcher of crude gas system (gas ash), annual discharge mud pie (gas mud) from Gas Cleaning system (gas mud) and fume (dust) collected by all de-dust system, and the amount is separately as follows: 119.5×104t/a 、 7.0×104t/a 、 3.0×104t/a 及 3.0×104t/a. 4) Normally BF slags are all water slags, and only produced to be dry slag when emergency. Water slags are all sold to be raw material of cement, and the dry slags can be disposed to be heat preservation material. 5) Gas ash collected by coarse gas gravity dust catcher and fume (dust) collected by all dust catcher will be tranported by truck to be the material after adding water and wetted by screw conveyer. The mud pie produced from gas cleaning system will be used to be sintering raw material. 6) The main solid waste from sub-projedt of #2 120t converter and 2500mm slab caster are as follows: converter steel slag, hot metal mixer and hot metal desulphur slag, converter stain, waste refractory, caster remaining slag and slab cut head /tail end, the amount are separately as follows: 245500 t/a 、14000t/a、25000 t/a、28000 t/a、 16300 t/a 和 51000 t/a. 7) Solid waste produced from 3500mm Steckel mill finish line mainly includes rolling pieces cut head/tail end of finish line, with the production amount 34000t/a. 8) Solid wastes mentioned above are all utilized in integration. Solid waste production status and disposal measures of construction project are shown in table 4-40.

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Table 4— 40 Solid waste production and disposal measures of construction project（t/a） Production Disposal Discharg Disposal No. Project name Solid waste Code amount amount e amount measures 1 Sinter De-dust ash 84 16.8 16.8 0 Sinter reuse Tar slag HW11 113 113 2 Coke Coal tar dust 84 710 710 0 Coal blending Remaining sludge 57 230 230 Sell out for BF slag 73 1195000 1195000 building materials 3 Ironmaking Gas ash 81 70000 70000 0 Gas sludge 56 30000 30000 Sinter reuse Fume (dust) 84 30000 30000 Heat stuffiness, Converter steel 74 245500 245500 0 recycled scrap slag for building materials Hot metal mixer Recycled for Steelmaking and desulphuration 81 14000 14000 0 building and slag materials 4 continuous Sinter casting Converter sludge 56 25000 25000 0 burdening Waste refractory 81 28000 28000 0 Recycled for Remaining casting building 81 16300 16300 0 slag materials Cut head/tail end Converter 81 51000 51000 0 for slab reclamatioin Cut head/tail end Steckel mill Converter 5 pieces for finish 81 34000 34000 0 finish line reclamation line Sum — — — 1739869.8 1739869.8 0 —

4.2.5.4 Noise Sub-project noise source of construction project are shown in table 4— 41.

Table 4— 41 noise level of construction project main equipments Noise level Disposal Sub-project Noise equipments Disposal measures dB（A） effect low level noise equipment, Meet the wrapping wetkeeping and Main suction fan of sinter 100 plant noise isolation material to standard the main suction fan shell Combustion machine for 95 Muffle and noise suction Sinter ignition Circulation cooling machine, blower and 90 Muffle and noise isolation cooling fan Dedusting fan 96 Muffle and noise isolation Water circulation pump 85 Noise isolation Coke Pulverizer 88-97 Muffle and noise isolation Coke sifting machine 92-99

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Gas blower 91-96 Compressor 95-112 Pump 85-96 Bleeder for BF and BF 120 blower Gas bleeding pipe for BF 115 top equilization Remaining voltage 100 generators Venturi pipes 95 Muffle and noise Ironmaking By-pass valve for GCP 105 isolation BF electrical blower 100 Dedusting fan, stove, dry combustion fan, waste 95-105 fume fan and other fans Emergent diesel generator 100 Blower 90-100 Water pump 90-95 Big closing cover to isolate 120t converter 100 noise Primary fume fan for 95 converter Secondary fume fan for 95 Steelmaking converter and Dedusting fan for hot 90 continuous metal pretreatment Muffle and noise isolation casting LF dedusting fan 93 Hot metal mixer dedusting 86 fan Secondary cooling steam 90 exhaust fan for caster Caster 95 Steckel mill Finish line shear 105 Vibration reduction finish line and Gas compression station 95 foundation, housing noise auxiliary Air compressor 98 isolation engineering Water pump 85 vibration equipment, dust Raw material catcher fan, stacker and 80— 90 yard Vibration reduction reclaimer foundation, noise muffle Oxygen making Liquid pump, cooling tower 85-95 project and water pump Pressre reduction and steam exhaust for boiler 140 Muffle steam (intermission) Generator 100 Noise isolation, reducing Take out and condensate vibration, inside noise Thermoelectric 75 turbine suction and distance generating unit Suction fan 92 attenuation project Blower 97 Install muffle Cooling fan 70 Noise isolation, reducing vibration, inside noise Water pump 85 suction and distance attenuation

4.2.5.5 Strong exhaust source for accident The accident for contruction project is probable gas bleed from BF. Blast furnace for ironmaking utilizes raw materials like sinter ore, coal, coke, pellets, lump ore and lime, producing hot metal to make steel, and meanwhile producing the by-products and sending them to customers. Probably accident is gas bleed from BF body, and lots of gas bleeding from top in short time cause atmosphere pollution. The

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main reasons are equipment fault and power failure. The composition for BF gas is mainly CO, SO2, dust and so on, when gas accident happens, the source data are show in table 4-42. Exhaust mode: directly exhaust 10m.

Table 4— 42 BF gas bleed accident source intensity Air amount Pollutant （m3） Dust (kg) CO(kg) SO2(kg) Discharge 30000 1720 25000 43 amount

4.2.5.6 Summary table of pollutant discharge amount for construction project Pollutant discharge amount summary table of construction project is shown in table 4-43.

Table 4— 43 Pollutant discharge amount summary table of construction project（t/a） Discharge Pruduction Reduction Discharge Type Pollutant mode amount amount amount SO2 10626.28 4341.9 6284.38 Fume and 292165.2 287505.8 4659.4 Organized dust discharge H2S 6.54 - 6.54 Waste BSO 0.14 - 0.14 gas Fume and 445.0 - 445.0 dust Inorganized BSO 0.1 0.1 discharge H2S 3.0 - 3.0 BaP 0.02 0.02 Solid - - - - 0 waste

4.2.5.7 Anlysis to ‘taking the new and replacing the old’step Point to NISCO present existing enviromental problem and conjuction with this “The Ten fifth”technical technical innovation project coming into force, NISCO will implement the following “taking the new and replacing the old”step. 1) Integrated water cleaning station of industrial water recycling is going to be built near NISCO WS— 06# outlet, and this “taking the new and replacing the old” step will be carried out in Oct. 2005. With the implemention of “taking the new and replacing the old” step, 80% （4116.8t/h）of the discharge amount from WS— 06# outlet（5146t/h） will be used back for production, therefore, after the construction project comes into force, the discharge amount produced from NISCO will be reduced greatly, from present 5557.61×104 t/a to 1362.65×104 t/a.

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2) Fume of 1— 4# BF pig bed haven’tbeen disposed, de-dust disposal of 1— 2# BF pig bed was put into use in Jun. 2005; de-dust disposal of 3— 4# BF pig bed was put into use in Jun. 2005， which reduced inorganizied dust discharge around 3382 t/a in the pig bed. 3) （ 3）1— 3# BF bin of ironmaking dedusting project haven’t been finished, estimated to be finished in Nov. 2006, which may reduce dust inorganized discharge of BF bin around 1116 t/a. 4) The secondary dust of steelmaking mixer and 30t steelmaking converter pollute severe. The disposal is estimated to be finished until Oct.2005, which could reduce the dust inorganized discharge of converter housing around 1184 t/a. 5) Revamp COG dedust and desulphuration devices, which H2S percentage of COG will be lowered from present 520mg/m3 to 200 mg/m3，lowering SO2 discharge amount for 138.22 t/a. 6) Elimilate present old bad pollution equipments: Two sets of 39m2 sinter machine, sheet plant and small section plant. 7) （8）Limit production for two sets of 32m2 sinter machines and reduce SO2 discharge 1980.64t/a.

‘Take the new and replacing the old’of construction project and elimilated projects are shown in table 4-44.

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Table 4— 44 “Take the new and replacing the old”of construction project and elimilated projects Investment Implement No. Project name Pollutant reduction amount（t/a） （10,000 Remark date RMB） Rebuild industrial Waste water exhaust Present 1 2005.10 10000 circulation disposal 3458.11×104 problem 1、2 Fume disposal of Dust inorganized exhaust Present 2 2005.5 1380 steelmaking mixer about 394 problem 3、4 Secondary dust Dust inorganized exhaust Present 3 disposal of 30t 2004.10 1400 about 790 problem 3、4 converter 1— 4# BF pig bed Dust inorganized exhaust Present 4 fume disposal of 2004.10 2400 about 3382 problem 3、5 ironmaking 1— 3# BF bin dedust Dust inorganized exhaust Present 6 2004.10 1150 disposal of ironmaking about 1116 problem 3、6 Dust suppression measure in raw Dust inorganized exhaust Present 7 2004.10 130 material yard of old about 270 problem 3、7 plant area 120t converter gas not Incorporate in power network Present 8 recycled ( equipment 2004.10 — in 2005 problem 8 already configured) Not disposing the Hot metal reladling station and dedust Present 9 fume and dust from system was constructed and put into use in — problem 3、9 hot metal reladling Apr. 2005. Severe secondary pollution of 120t Present Adding spray equipment may solve the 10 converter slag 5 problem 3、 problem,being built in Dec, 2004. disposal site, dust 10 emission larger NH3— N waste water treatment of new ironmaking plant This waste water system is handled by Already built 11 coking doesn’t reach A2/O，reaching the standard in 2005，and to — 1 the standard, quench quench coke and flush slag the coke and flush slag. Bad secondary Already built 12 pollution of 180m2 Update in 12, 2004 — 2 sinter lime flux site Rebuild COG 13 2004.12 SO discharge amount 138.22 1000 — desulphuration device 2 Eliminate present At the end SO2 discharge 1470 14 two sets of 39m2 sinter — — of 2007 dust（fume）discharge 687.48 machine Limit production to 2 At the end SO2 discharge 327.84 15 Two sets of 32m — — of 2007 Dust (fume）discharge 121.98 sinter machine SO2 1980.64 — — Dust 6765.6 — — Sum of pollutant reduction （fume） Waste water discharge 3458.11×104 Note：Present enviroment problem 8— 10 are wide coil/plate project remaining problems, which will be accepted together with the project.

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4.3 Pollutant discharge status after technical technical innovation incordination project actualization. 4.3.1 Water balance after technical technical innovation incoordination project actualization Water balance after technical technical innovation incordination project actualization is shown in figure 4— 19. 4.3.2 Gas balance after technical innovation incordination project actualization Gas balance after technical innovation incordination project actualization is shown in figure 4— 45. 4.3.3 Sulphur balance after technical innovation incordination project actualization Sulphur balance after technical innovation incordination project actualization is shown in figure 4— 46.

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2965 593 593 ⌒ 500 Ironmaking plant 0（0） 500 WS—01

W 165 142

a Sinter plant 0（23） 2965 s t t 3109 85

e 76 a

r Others 0（9） t

i 2359

c 2247 o Steelmaking plant l n e a f n o i r n g 117 Rod plant 1842（36） 81 2065 Ironmaking plant 1822 86 Strip plant 860（57） 29 132 Oxygen supply plant 67 62 737 Medium section plant 50 550 Power plant 0（50） 500 79 Others 0（5） 74

890 ⌒ ⌒ Living water 801 I n

W 5146 w d

a 450 390

a w u Coke plant 1650（60） t t a s e

e t t 110

r 126

r e r Pellet plant310（16） r i

5054.9 p 4164.9 3427.9 s a 50 u 95

o p l Power company 2023 m u u p r m c 108 70

c p l Wire rod plant 1910 o e e f

a 222 130

n EAF plant4670（92） 279 Plate plant 2881（56） 223 60 Others 0（5） 55

1271 Wide coil /plate 457 i n I t 5146 n e d

g ⌒ ⌒ u r s a t

t 110.1

r Sinter 431.7(110.1) e i d

a 311.0 90

l Steel making c l r 4116.8 40.0 14 e Steel rolling 800（26） e a c

n 133 y 526

c thermoelectric21644 w l a

e 187.9 t

d Raw material yard132

e Flush slag r 586.2 Ironmaking 25910.2 circulation.2 65.0 81.5 Coking 115.8(22.3) Phenol cyanogens

Quench coke watersupplement 5.8 diagram 1029.2 Water concumption plants water WS—06 circulation water loss

Steelmaking plant Figure 4-19 Water balance after technical innovation incordination project actualization 85 ENVIRONMENT IMPACT REPORT

Table 4— 45 NISCO Gas Balance Table After ‘The Ten fifth’Technical Technical innovation Coordination

Annual Operation Yearly gas 10 4m3 Caloric No. Project throughtout time kJ/m3 10,000t/a h Converter BF gas COG gas Ⅰ Income 1026000 95200 28430 1 Ironmaking 2×300+3×350=1650 220 3250 8400 396000 2 New ironmaking 1×2000m3 155 3250 8400 279000 3 New ironmaking 1×2500m3 195 3250 8400 351000 4 Coking 2×42 56 18000 8760 23800 5 New coking 2×55+1×60 battery 168 18000 8760 71400 6 Big converter2×120t 334.5 6690 7272 28430 Ⅱ Output 1176645 83114 284 1 Coking 2×42 56 4060 8760 48870 2840 2 New coking 2×55+1×60 battery 168 4651 8760 131410 13790 3 Sinter 2×32 80 18000 7920 400 4 New sinter 1×180+1×360 560.4 18000 7920 2802 5 Old pellet 2×8 95 3250 7884 25175 6 Ironmaking 2×300+3×350=1650 220 3323 8400 181680 910 7 New iromaing 1×2000m3 155 3633 8400 113220 3020 8 New ironmaking 1×2500m3 195 3633 8400 142440 3800 9 Converter 2×30t 153.3 18000 8306 2120 10 Big concerter 2×120t 334.5 7299 7272 8290 3150 11 EAF 1×100t 92.8 18000 7458 1540 12 Medium section mill (rolling &blooming) 82 3250 6665 32340

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13 Strip mill 50 8162 6000 7350 3670 14 Bar mill 125 3250 6000 57690 15 Plate mill 120 8126 7400 17290 8540 16 Wire rod mill(after revamping) 65 8126 7000 7220 3570 17 Steckel mill(walking beam RH furnace &coiler furnace) 150 8126 7008 13460 6650 ① Cold charging 30% 45 8126 2102 7410 3660 ② Hot charging 70% 105 8126 4906 6050 2990 18 Thermoelectric 1×12MW 3406 7000 98000 1400 19 Thermoelectric 1#×50MW 6198 7000 67290 16810 20 Thermoelectric 2#×50MW 3250 7000 176400 21 Thermoelectric 2×35t 3952 7000 28000 1400 22 Auxiliary and living customers 18000 8760 1750 23 VD quick boiler 18000 6500 4000 24 loss and others 20520 952 284 Ⅲ After balance -150645 12086 28146 Ⅳ Equal quantity BF gas -25770 *Remaining COG and converter gas go into general gas piping, relieve each customer temporary requirement; Deficient part for BF will be adjusted by thermoelectric unit.

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Table 4— 46 Sulphur balance after technical technical innovation incordination Input Output Charge Discharg Charge Sulphur Discharge Sulphur NO. material Sulphur e amount material percentage material percent Sulphur (t/a) quantity (t/a) (10,000t/ name (%) name age (%) (10kt/a) a) Ⅰ/ Ⅱ sinter (2×32m2) Mixed 1 52.68 0.0868 457.33 Sinter ore 80.0 0.043 344.03 materail Domestic Out supplying 2 2.47 0.4 99.0 2.391 0.043 10.28 high fine returned ore Import 3 4.69 0.014 6.56 Fume ▲ 432.57 powder 4 White coal 0.48 0.41 19.68 5 Coke breeze 4.07 0.50 203.50 6 COG 431.09 200 0.81 Subsu 786.88 786.88 me Ⅱ．Ironmaking （present） 1 Big sinter ore 184.4 0.025 461．0 Pig hot metal 220.0 0.035 770.0 Slag and gas 2 Anthracite 26.78 0.41 1097.91 72.31 0.753 5444.34 ash Water flushing 3 Coke 91.63 0.50 4581.5 38.42 desulphuratio n 4 Nut coke 6.52 0.50 326.0 Stove fume ▲ 169.48 156581.6 5 BF gas 115 169.48 BF gas 630000 115 681.88 5 6 Pellet ore 110.68 0.01 110.68 Two sinter 7 80.0 0.043 344.03 ore Import lump 8 11.27 0.012 13.52 ore Subsu 7104.12 7104.12 me Ⅲ．Converter steelmaking Burning 1 COG 2130.62 200 4.00 ▲ 4.00 fume Subsu 4.00 4.00 me Ⅳ．EAF steelmaking Burning 1 COG 1322.38 200 2.49 ▲ 2.49 fume Subsu me 2.49 2.49

Ⅴ.Pellets Yeshan fine 1 31.77 0.184 584.57 Pellet ore 95.0 0.047 446.50 powder Domestic Return 2 22.11 0.136 300.70 8.33 0.047 39.15 fine powder fines Import 3 50.27 0.014 70.38 Fume ▲ 497.29 powder 4 BF gas 25212 115 27.29 Subsu 982.94 982.94 me Ⅵ．Coking 1 Cleaned coal 76.7 0.7 5369.0 Coke 56.0 0.59 3304.0 Coke oven 2 COG 2893.65 200 5.44 ▲ 56.37 fume

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Desulphura 3 BF gas 47055 115 50.93 22946.5 2022.69 tion COG 22477 200 42.31 Subsu 5425.37 5425.37 m Ⅶ.Steelrolling RH furnace 1 COG 15780 200 29.7 ▲ 161.63 fume 2 BF gas 121890 115 131.93 Subsu 161.63 161.63 me Ⅷ、Boiler Input Output Charge Charge Sulphur Discharge Discharge Sulphur NO. material material percent Sulphur (t/a) material amount percent Sulphur (t/a) quantity name age (%) name (10,000t/a) age (%) (10kt/a) Boiler 1 COG 1400 200 2.64 ▲ 203.27 fume 2 BF gas 28000 115 30.31 Boiler slag 1.04 1.37 142.48 3 Power coal 5.22 0.6 313.2 Subsu 346.15 346.15 me Ⅸ．Sinter (180m2+360m2) Bed blending Final product 1 503.20 0.056 2817. 94 560.24 0.025 1400.60 powder ore Hearth layer 2 Coke breeze 28.01 0.4 1120.40 56.02 0.025 140.05 materail 3 Quicklime 25.21 0 0 Return fines 252.11 0.025 630.28 Exhaust 4 Limestone 25.77 0 0 — — ▲ 2641.06 waste gas Hearth layer 5 56.02 0.025 140.05 — — — — material 6 Return fines 252.11 0.025 630.28 — — — — Sinter 7 39.22 0.025 98.05 — — — — powder 8 COG 2802 200 5.27 — — — — Subsu 4811.99 4811.99 me Ⅹ．Coking（55 battery×2+60battery×1） 1 Raw coal 223．35 0.7 15636 coke 167.96 0.59 9909.64 2 BF gas 131410 115* 142.23 COG 71400 200 134.4 Desulphuratio 3 COG 13790 200* 25.96 71400 — 5591.96 n Exhaust 4 — — — — — — ▲ 168.19 waste gas Subtot 15804.19 15804.19 al Ⅺ．Ironmaking （2000m3×1+2550m3×1BF） 1 Sinter ore 376．0 0.025 940 Hot metal 350 0.035 1225 BF slag and 2 Pellet ore 86.6 0.01 86.6 126.5 0.71 8980.25 gas ash 3 Lump ore 28.9 0.01 28.9 BF gas 639576 115 692.25 Exhaust 4 Coke 137.0 0.59 7434 — — ▲ 172.99 waste gas 5 Coal breeze 56.0 0.43 2408 — — — — 6 BF gas 158550 115* 171.61 — — — — 7 COG 735 200* 1.38 — — — — Subsu 11070.49 11070.49 me Ⅻ.Thermoelectric Exhaust 1 BF gas 341690 115* 369.83 ▲ 404.11 waste gas

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2 COG 18210 200* 34.28 Subsu 404.11 404.11 me ⅫⅠ、Wide plate/coil 1 COG 9800 200* 18.45 Fume ▲ 41.99 2 BF gas 21750 115* 23.54 Subsu 41.99 41.99 me The total sulphur discharge amount（after technical technical ▲ 4955.44 innovation） Notes: 3 3 1. Gas unit is 10,000 m /a，and sulphur ratio refers to H2S(mg/m ); 2. Above table steel rolling includes medium section mill, strip mill,plate mill, bar mill and wire rod mill.; 3. ▲ means discharge sulphur amount.

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4.3.4 Comparision analysis on NISCO pollutant discharge before and after construction project Comparision analysis on NISCO pollutant discharge before and after construction project is shown in table 4— 47. Table 4— 47 Comparision analysis on NISCO pollutant discharge before and after construction project Reduction Discharge Discharge of taking amount Increase/de Control figure Present amount of the new after crease of NISCO Pollutant Unit discharge constructio and technical amount pollutant amount n project replacing technical （+，-） general the old innovation amount Waste gas 104m3/a 9294720 11258439 0 20553159 +11258439 — discharge amount Dust （fume） t/a 10606.106 5104.4 6210.13 8944.906 -1661.2 9015.08

SO2 t/a 5476.48 6415.04 1980.64 9910.88 +4434.4 7638.4 Waste water 104t/a 5557.61 89.28 2630.0 3016.89 -2540.72 — discharge amount

CODcr t/a 2252.75 36.2 1065.9 1223.05 -1029.7 2230 SS t/a 4938.78 79.4 2338.1 2680.08 -2258.7 8100 Petroleum t/a 87.47 1.4 41.4 47.47 -40.0 — Volatilizing phenol t/a 1.22 0.02 0.6 0.64 -0.58 — Cyanide t/a 1.11 0.02 0.5 0.63 -0.48 — Solid waste t/a 0 0 0 0 0 0 From above table 4— 47，after “the ten fifth”technical technical innovation project constructed, only SO2 of the pollutant discharge amount increases 2272.48 t/a, for the other discharge amount o f pollutants don’tincrease.

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5 Comment on pollution precaution measures

5.1 Comment on pollution precaution measures for waste gas 5.1.1 Comment on pollution precaution measures for waste gas 5.1.2 Comment on pollution precaution measures for waste COG 5.1.3 Comment on pollution precaution measures for waste BF gas 5.1.4 Comment on pollution precaution measures for waste steelmaking gas 1) Dust catcher for hot metal reladling station adopts fume discharge canopy of hot metal upsidedown hole to collect the fume, dry dedusting mode of bag dust catcher and process procedure of negative pressure operation. Hot metal reladling station has six reladle positions. In Phase one set up one de-dust system in two reladle positions, and this continuous contruction project sets up another hot metal reladling de-dust system in the other four ladle positions, draught 600000 m3/h. The fume collected by fume discharge canopy of hot metal upsidedown hole goes into dust catcher, and will be dedusted along dust catcher, then reach the standard and be discharged to atmosphere from 45m high stack. 2) Fume with dust produced when hot metal desulphuration and de-slag, will reach the standard and be discharged to atmosphere from 45m high stack, after dedusting from bag dust catcher. 3) Primary fume produced by 120t converter steelmaking will be cleaned, recycled, and discharged with reaching standard, via OG twin Venturi wet fume cleaning system. Fume inside the furnace flows along furnace hole, movable fume canopy and fixed fume duct, then goes into evaporated cooling duct, after first grade overflow Venturi pipe, first impacting gravity demister, second grade ring adjustable Venturi pipe, second grade 900 bending demister, cleaned and demisted by vortex demister and lowering temperature tower, the gas will be sent to gas container (built in Phase one) to be recycled. Bleed fume will be discharged to atmosphere from 80m high stack (built in Phase one) after reaching the standard. During bleeding, if CO content of fume is higher, the ignition device will be automaticaly lit on top of the stack, and the burnt waste gas will be discharge to atmosphere. After OG cleaning and treating, fume and dust discharge density reaches 50mg/Nm3 ， which arrives the grade two standard in table 2 of 《 Industrial Limekiln Atmosphere Pollutant Discharge Standard 》 （GB9078-1996）. 4) No.1 converter has already built secondary de-dust system, and kept two de-dust holes for No.2 converter stokehole fume collection canopy, ten de-dust holes for No.2 converter high level auxiliary material stock, three de-dust holes for No.2 converter middle level ferroalloy stock, and in this continuous constuction project the fifteen de-dust holes will be

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connectted to secondary de-dust system already built in the construction of No.1 converte. Because the fume temperature to go into the bag dust catcher can’tbe higher than 120℃，but when hot metal charged into the converter, the fume temperature is 220℃，so need to mix cold air to cool, while fume temperature for converter blowing is 80℃，blowing fume can be used for cooling utility, which means, fume from No.1 converter when charging hot metal can be cooled by No.2 converter oxygen blowing fume, so the de-dust system can be designed as per Phase one and Phase two can use one common secondary de-dust system. This secondary de-dust system can collect the overflow fume which can’tbe completely collected by the primary system of No.2 converter oxygen blowing, much fume overflow from the canopy when lance injection, fume from scrap addition and furnace repair, and secondary fume from tapping. This secondary de-dust system is alternately used for hot metal charging and heat blowing between No.1 converter and No.2 converter, and waste gas exhaust volume and exhaust density can keep current data, but exhaust time will be doubled. After treated by pulse cleaned bag de-dust, the dust reach the standard and can be exhausted from the 60m high stack. 5) The high temperature fume including dust produced from ladle funace refining will be collected by fume collection canopy of funace cover, and flow along adjustable mixing wind looper, then go into sparkle trapper. Fume passes through the sparkle trapper, then the sparkle and coarse grain among the fume will be separated. After mixed and lowered temperature with dust gas of charging system, the fume will be transferred along duct to the pulse cleaning bag dust catcher outside the main housing. After dust catcher treatment, fume can reach the standard and be exhausted from 30m high exhaust mast. 6) 2500mm slab caster produces a lot of steam in secondary cooling area, so build a concentrated steam discharge system to discharge the steam out of the shop. Caster mould produces fume with dust when adding the casting powder, using fume suction fan to suck the fume to steam discharging pipe in secondary cooling area, then be discharged together with steam. 5.1.5 Precaution measures comment on steelrolling waste gas pollution 3500mm Steckel mill finish line during production procedure does’t discharge organized waste gas pollutant, and the inorganized discharged waste gas pollutant are discharge dust from draught system of wide plate/coil shop, with the amount around 33t/a.

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5.1.6 Precaution measures comment on waste gas pollution of other sub-project 5.1.6.1 Precaution measures to atmosphere pollution of raw material yard 5.1.6.2 Precaution measures to atmosphere pollution of pier, harbor dock and overhead railway 5.1.6.3 Precaution measures to atmosphere pollution of thermoelectric project 5.2 Precaution measures to waste water pollution Construction project implements water using principle of water supply in series, using the new to supplement the clean, using the clean to makeup the clarified and recycled water consumption, the total water consumption 57034.4t/h，among supplementary amount, fresh water 2016.8t/ h，recycled water 55017.6t/ h and recycled water utilized percentage 96.5%。 Construction project water discharge takes rain sewage and clear sewage splitflow system. Except for thermoelectric sub-project and steelmaking new plant area, all the other sub-projects don’tdischarge production waste water during the production procedure. The clean water（237 t/h, COD30mg/l、SS60mg/l）, which is discharged during the production of thermoelectric project and new plant area of steelmaking, goes into industrial recycling water clean station which is going to be built near NISCO WS— 06# outlet, then supplements the whole plant production water. This step “using the new and replacing the old”was implemented in Oct.2005, via this step 80%（4116.8t/h）of the discharge amount （5146t/h）in WS— 06# outlet was used back to the production, therefore, after the construction project comes into use, the discharge amount of NISCO production waste water will be reduced greatly, from current 5557.61×104 t/a to 1362.65×104 t/a. Due to no addition of staff number in construction project, only production personnel allotment inside NISCO, consequently, not increase the living water, and not increase the living sewage discharge amount, and in the construction project area the living sewage will be reused after disposal and meeting the requirement or be discharged to Yangzi River. 5.2.1 Pollution Precaution measures comment on sinter waste water 5.2.2 Pollution Precaution measures comment on coking waste water 5.2.3 Pollution Precaution measures comment on BF waste water 5.2.4 Pollution Precaution measures comment on steelmaking waste water 2#120t converter and 2500mm slab caster sub-project implements water using principle of water supply in series, using the new to

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supplement the clean, using the clean to makeup the clarifying and recycled using water, and the total using water amount is 8108t/h， among supplementary amount, fresh water 311t/ h， recycled water 7797t/ h and recycled water utilized percentage 96.2%。 The production waste water of 2#120t converter and 2500mm slab caster sub-project mainly comes from discharge water of caster clarifying water circulation system (clean discharged), converter gas de-dust clarifying water circulation (clean discharged) and air compression station clean water circulation system (clean discharged), with the discharge amount 90t/ h. This clean discharge water go into industrial recycling water cleaning station which is going to be built near NISCO WS— 06# outlet, then supplements the whole plant production water, not directly discharged to outside. Due to new added production personnel are allotted within NISCO, the living sewage will not be increased.

1) Soft water closed circulation system This system supplies indirect cooling water for slab caster, mold and closed circuit equipment, and water quality is soft and backwater is not contaminated, after plate recuperator cooling, it will be supplied to the customers to be cycle operated. Cycle water quantity is 1386m3/h，and the supplementary water is soft water, with the quantity of 14m3/h and hardness of 2mg/L(CaCO3). The system pressure will be adjusted by nitrogen pressure container, as per water level inside container to automatically fill the water to all systems. 2) Clean circuit water system of steelmaking Clean circuit water system of steelmaking will supply the clean circuit cooled water to the equipments like converter body, auxiliary equipment, fans for steelmaking system, hydraulic coupler, converter gas dust catcher, caster, LF, cold coal water and so on, with the circuit quantity of 3899m3/h. The system is open loop circulation system, and water temperature will rise after equipments consumption, which can be directly sent to cooling tower to be cooled via remaining pressure. Some water without pressure or with low pressure will flow back to hot well of circulation pump station, as per different water consumption system and different pressure to be divided into five sets of water pump and be supplied to each shop for circulation consumption. Since circulation water in the cooling tower is somehow contaminated by enviromental air dust, to control circulation water quality and fulfill the process requirement of water quality, the automatic filters without valve have to be installed on the general piping of two group of pump. To control the condensed multiple of circuit water system, some forced dirt discharging is necessary, discharged dirty water connects in series to clarified water system to be the supplementary water, with the discharge amount 130 m3/h. To prevent fouling, corruption and alga breeding, set up medicine addtion device for water quality stability, adding some medicine in system to prevent fouling and corruption, and also kill fungus and alga. 3) Caster clarified circulation water system

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Caster clarifying system supplies secondary spraying cooling, caster open circuit equipment cooling and scale flushing, with the clarified water quantity 950 m3/h. Using open loop circulation water system, above customers are all direct cooling, and discharge water includes scale and some oil. The design procedure is as follows: the discharge water of every equipment flows into scale gutter, flowing back to primary clarifier, after preliminary settled, most scale will be removed, some will be pressurized and sent to shop to flush the scale, and the other will be pressurized with chemical degreaser by water pump and sent to remove fine scale and grease further. the outlet water will be pressurized and sent to high speed filter to be filtered, using cooling tower on remaining pressure to be cooled and flow back to cooling well, then to be supplied to equipment after pressurization by water pump. Totally set up 200μm piping filter along the general outlet piping of equipment cooled water pump units. 4) Clarified circulation water system for coverter gas dedusting The clarified circulation water system of converter gas dedusting system mainly supply the direct flushing water to primary Venturi, sencondary Venturi fan and T-pipe valve, etc. The clarified water amount is 950 m3/h ， using open loop circuit water system and discharging water including much suspended matter. The design procedure is as follows: Primary Venturi and secondary Venturi flow from water sink to coarse granule separator, remove bigger granule, then flow from overhead water sink to radial type clarifier to be clarified, with the water output suspension ≤70mg/l. Flow from water sink to hot well, and sent to cooling tower after pressurized by water pump, then flow to cold well after cooled to supply the equipment circuit usage via all pumps. Sewage produced by coarse granule separator will be demisted into sewage including 30 ％ of water by spiral pressure demister, and periodic transported out. The sewage under radial clarifier will be sent to sewage treatment system, and the sedimentated sewage underneath the bottom of clarifier will be sent to thickener tank after pressurized by pump. Bottom sewage in the thickener tank will be pressurized by pump to folding filter machine, after water removal the sewage will be sent to stock, then transferred to be utilized in integration by car. The clarified liquid on the thickener tank will be sent back to radial clarifier to be reused together with liquid from filter machine. The supplementary water of this system is the clean circuit discharge water and producing new water in this system, and the clean circuit discharge water amount is 60 m3/h，producing new water 40 m3/h， system discharge dirty water 49 m3/h。 5) Clean circulation water system in air compression station This system mainly supply cooling water for air compressor, with the clean circulation water system of 480 m3/h，using open loop circulation water system. After used only water temperature rises, utilizing remaining pressure to sent to cooling tower, then flow back to cold well in pump room after cooled and temperature lowered, to supply to be

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circuit usage for the equipment like compressor via water pump pressurization. To improve water quality and prevent fouling, corruption and alga breeding, set up medicine adding device for water quality stability, adding some medicine to the system to prevent fouling and corruption, and also kill fungus and alga. Totally set up one suspended particals ≤200μm piping filter along the general outlet piping. The supplementary water of circulation water system is new water of production, and the water amount is 20 m3/h and fastest sewage discharge is 9m3/h. 5.2.5 Comment on pollution Precaution measures to steelrolling waste water The production waste water of 3500mm Steckel mill finish line mainly comes from the clarified water circulation system of mill and shearing finish line. After system cooled water is disposed with water quality stability and sedimentation, the water can be recycled to use, and some can be discharged with the discharge amount 14t/ h. This clean discharge water goes into industrial recycling water clean station which is going to be built near NISCO WS— 06# outlet, then supplements the whole plant production water, not directly discharged outwards. Living sewage of sub-project will all be discharged into NISCO new plant area and be treated by sewage treatment plant, then discharged into Yangzi River with meeting the standard. Due to new production personnel are allotted inside NISCO, the discharge amount of living sewage won’t increase. 5.2.6 The production waste water of 3500mm Steckel mill finish line mainly comes from the clarified water circulation system of mill and shearing finish line. After system cooled water is disposed with water quality stability and sedimentation, the water can be recycled to use, and some can be discharged with the discharge amount of14t/ h. This clean discharge water goes into industrial recycling water clean station which is going to be built near NISCO WS— 06# outlet, then supplements the whole plant production water.

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5.2.6.1 Comment on pollution precaution measures to raw material yard waste water 5.2.6.2 Pollution precaution measures to waste water from pier, harbor and overhead railway 5.2.6.3 Pollution precaution measures to waste water from thermoelectric generating unit and oxygen making sub-project 5.3 Comment on noise precaution measures 5.3.1 Comment on sinter noise precaution measures 5.3.2 Comment on coke oven noise precaution measures 5.3.3 Comment on BF noise precaution measures 5.3.4 Comment on steelmaking noise precaution measures In the precondition of meeting process design, every motor, fan, water pump and so on for steelmaking sub-project of construction project will choose the low noise product as more as possible. Converter adopts big open airproof noise isolation cover, and noise can be reduced to 90dBA also; the noise level of converter primary fume fan, secondary dedust fan, dedust fan for hot metal pretreatment, LF dedust fan, dedust fan for hot metal mixer, steam exhaust fan for caster secondary cooling, etc,is ranged between 86-100dB(A), using silencing and fan room noise isolation mode can lower the noise around 15dBA; the noise level for caster, auxiliary engineering project equipments like gas booster, air compressor, water pump for sewage treatment station, is ranged between 85-95dB(A), using reducing vibration foundation and noise isolation for plant housing can lower the noise around 15dBA. 5.3.5 Precaution measures comment on steelrolling noise The main noise source from 3500mm Steckel mill finish line are finish line shear and so on, which noise level is 105dB(A)，but using vibration reduction foundation and noise isolation measure for plant housing can lower the noise around 15dBA.

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5.3.6 Precaution measures comment on other sub-project noise 5.3.6.1 Precaution measures to raw material yard 5.3.6.2 Precaution measures to pier, harbor and overhead railway 5.3.6.3 Precaution measures to thermoelectric generating unit noise 5.3.6.4 Precaution measures to oxygen making noise 5.4 Precaution measures comment on solid waste 5.4.1 Precaution measures comment on sinter solid waste 5.4.2 Precaution measures comment on coke oven solid waste 5.4.3 Precaution measures comment on BF solid waste 5.4.4 Precaution measures comment on steelmaking solid waste Hot metal mixer and hot metal desulfuration slag from steel-making sub-project, can be utilized as construction materials. Through cover tightly disposal, the scrap from converter steel slag is recycled as construction materials, converter sludge can be sent to sinter blending. Waste refractory and caster slag are recycled back to construction materials. Cut head/tail end of slab can be sent back to converter to reuse. Molten slag from converter is transfered to slag yard by slag pot car for cover tightly disposal. Detail disposal process is as follows: First transport steel slag in slag turning over bay to crushing stove with 15t truck for pulverization, then extracted out of stove by excavator, put on the tilting sift, now crane suck scrap from pulverized steel slag, transferred to scrap yard; then classified by belt electric-magnetized iron removal, electro magnetized belt, 40mm cone rolling sift, 20mm cone rolling sift etc., separate medium-small size scrap, bean steel and iron powder, select three sizes of steel slag, <20mm, 20-40mm,40-150mm, for commercial slag sale, or construction and road-building materials.

There are four crushing stoves in converter steel slag processing system, and the process capacity of each stove is 110-150t/d.

5.4.5 Precaution measures comment on steelrolling solid waste The cut head/tail end of 3500mm Steckel mill finish line will be sent back to converter. 5.4.6 Precaution measures comment on other sub-project solid waste 5.4.6.1 Precaution measures to raw material yard solid waste 5.4.6.2 Precaution measures to pier, harbor and overhead railway solid waste 5.4.7 Precaution measures to dangerous solid waste Dangerous waste from construction project is tar slag, output is 113t/a,

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tar slag is stored in steel vessel, when it reach to 1/2 volume of the vessel, the vessel is then transported to coal blending system by truck, after blending by screw blender, mix it into coal for coking, so for this dangerous waste secondary pollution are stopped from the precedure of storage, transportation and treatment.

5.5 Precaution measures comment on buildingup /put into use/ start-up 5.5.1 Introduction to buildingup /put into use/ start-up/supervising project In order to comment on pollution precaution measures of buildingup project (see table 3-2), construction unit entrusts provincial environmental monitoring centre to monitor buildingup project, detail monitoring start-up projects are： 1) Charging head dust catcher of 180m2 sinter machine； 2) Charging tail dust catcher of 180m2 sinter machine ； 3) Final product whole granule dust catcher of 180m2 sinter machine； 4) Blending dust catcher of 180m2 sinter machine； 5) Flux crushing dust catcher of 180m2 sinter machine； 6) Fuel crusher of 180m2 sinter machine； 7) Dust catcher of 3# and 4# coke oven coke charging； 8) Dust catcher of 3# and 4# coke oven extracting of coke； 9) Dust catcher of 2000m3 BF bin； 10)Dust catcher of 2000m3 BF pig bed； 11)Dust catcher of 2000m3 BF BLT； 12)Biochemical treatment system of new ironmaking plant； 13)Clarified circulation system of BF gas cleaning； 14)Clarified circulation system of BF water flushing slag； 5.5.2 Supervision result summary on buildingup /put into use/ start-up project

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5.6 SANITARY PROTECTIVE DISTANCE

Due to the average wind speed of Nanjing district in recent five years is 2-4m/s, according to “Sanitary Portective Distance Standard of Ironmaking Plant”（GB11660-89）, the sanitary protective distance of ironmaking project is confirmed as 1200m.

Due to the average wind speed of Nanjing district in recent five years is 2-4m/s, according to “Sanitary Portective Distance Standard of Sintering Plant”（GB11660-89）, the sanitary protective distance of sintering project is confirmed as 500m.

Due to the average wind speed of Nanjing district in recent five years is 2-4m/s, according to “Sanitary Portective Distance Standard of Coking Plant”（GB11660-89）, the sanitary protective distance of sintering project is confirmed as 1000m.

Sanitary protective distance of iron-making, sintering and coking plants refer to general plan view3-1 of construction project.

See from view3-1, partial Xinhua community of Pukou district (about 260 households, people quantity 1040) is within sanitary protective distance of ironmaking, sintering and coking plants. Enclosed please find the implementing scheme and plan of resident moving.

Nanjing Iron and Steel Co., Ltd. belong to large combined iron and steel enterprise. The exhaust gas pollution has some effect to surrounding atmosphere quality. According to atmosphere surrounding effect evaluation of the construction project, General plan of Nanjing riverside development and general plan of Nanjing Luhe district, starting from atmosphere effect, it is supposed to move Xinhua community resident which is within sanitary protective distance of iron-making, sintering and coking plant gradually, duly and properly. Set up protective forest lawn between factories and resident areas, reducing the gas pollution to resident areas, and gradually improve the status of close distance, even crossover area between plant areas and resident areas.

5.7 Greening in plant area 5.7.1 Greening principle According to design of Forestation of plant area, mainly based on natural layout, which is combined with high trees, shrubs and grasslands. Its main merit is: making use of special cooperation of manifold plants, fully absorb dust, gas, ie. CO2, SO2 etc., effectively weaken the noise; fully exert aesthetic characteristics of multi plants on physic, pose and color etc, by the principle of harmony, comparison, change and unification, organic combine, display whole beauty of forest.

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Combination of high trees, shrubs and grasslands should follow several aspects of harmony and unification:

(1) Size of tree Both high tree and shrub have different size, various trees have different height. Proper match of tree and shrub can make arrangement of trees more abundant. In the configuration, horizontal and vertical relation of various trees should be taken into consideration. Different height of trees strew at random.

(2) Evergreen and defoliate Evergreen can steadily keep factory area green in four seasons. Hardwood usually has clearly seasoning characteristic, especially flower timber and some species which display colors like yellow, orange, red, purple etc. after going to autumn, still elegant after defoliate. Exert both of their merits, combine their height and size properly.

(3) Planting of trees There are kinds of planting trees like isolated planting, double planting, line planting, following planting and group planting, forest planting etc. Among them priority is given to line planting, following planting and group planting. Arrangement will be based on details in application.

(4)Configuration of grassland Planting lawn is an important and general green project in the factory green. Naked ground (except path) in factory area should be all covered with turf.

5.7.2 Green scheme Factory green should combine focus and disperse. (1) There are many spaces in the factory. Adopt way of focusing green, decorating lawn in large piece of space. The choice of lawn should have feature of low, dense branch, fine leaves and growing orderly, better evergreen grass. The common categories are velour grass, urus grass and cotton grass etc. Isolated planting, double planting, line planting and follow planting some high trees among the lawn, its function is sprinkle. It’spossible to adopt blossom high trees with obvious color effect, such as merry, yulan, paulownia, ceiba and huge redbud are all flower trees; High color rate trees are: purple osmund, red maple, purple leaf, maple savory, triangle maple, huanglu, gingkgo, persimmon, goldthread, black cypress, fir, double nine, shilan, white wax etc. (2) Planting path trees and high trees on both sides of road. Form into lines of forest shade. On both sides of main road inside factory area, planting green fence and rosebush, form into multi-layers of view sight. Palm, Schneider zelkova and fragrant camphor maybe choused on main road, supplement by evergreen arbor like privet, yulan etc. Flower rose bush like coral, purple osmund and China rose maybe choused on middle-level. Green lawn in the stratum. Lombardy poplar,

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birch and spruce are planted out of factory area. Green fence like arborvitae, leaflet box etc. are adopted on both sides of pedestrian in the factory, bar strip flower pond and seasoning flower are also choices. Living road selects garden trees like fragrant camphor, merry and phoenix tree etc., supplemented with shrub and herbage flower like rosebay and purple osmund etc. (3) Sight trees are planted around office building, purple sophora, weeping willow or arborvitae is for choice. Lay on border, flower frame, planting four season flowers, green fence along the walking canal. Flowers are not so extensive as trees and lawn in the whole factory area, just as key decorative stuff, but greater proportion in office and living areas. The ways of laying have two kinds as regular and natural, sub-divided into border, area and platform etc. Usually two years grass and lodge-based flower are adopted, different flower should be irregular and interleaving, alternate with density，arrangement of sight should be considered. (4) High arbor is planted in the boundary of factory, polar trees, sophora and metasequoia are on the upper-level, privet and vast yulan on the middle-level, supplemented with phoenix tree, redbud and spun gold peach etc., green turf in the low-level.

Considering practical situation of the construction project, the main pollution after completion of the project is SO2. In the meantime, PM10 background value of project location is relatively high. Green plants with anti-dust and fastness to SO2 is chosen. The recommendation of trees refers to table 5-5.

Table 5-5 Elementary list of green plants which are anti-dust and anti-harmful gas

Anti-pollution Green trees Vast yulan、mulberry、acacia、phoenix tree、rosebay、purple Anti-dust osmund、privet etc. Strong rosebay、Japan privet、vast yulan、camellia、 fastness holly、phoenix tree、acacia etc. Absorb SO2 Relatively 、 、 、 、 strong camphor peach poplar tree merry paulownia fastness etc.

5.7.3 Green Area 360000 square meter green area of construction project, occupy 20.2% of overall area. Respective green area of the construction project refers to table 5-6.

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Table 5-6 Respective item of greening area for the construction project

Designation Green area（m2） Designation Green area（m2） Sintering sub-project 36774 Raw material yard 10000 Coking sub-project 84000 Dock, harbor overhead 10000 railway Blast Furnace 92336 Oxygen making and 30000 sub-project thermoelectric generating unit Converter sub-project 37950 Overall transport, auxiliary utilities, 20000 Water treatment and Steckel mill finish line 38910 piping network sub-project revamping

5.8 Sewage standardization setting 5.8.1 Waste water drainage standardization setting According to , Nanjing environment protection bureau , and definite demand by provincial sewage water standard inspection group, the drainage system of the construction project must implement system of “rain dirt diffluence”.

Due to historic reason, there were six waste water discharges in Nisco old plants. According to Nisco water treatment layout, two industrial waste water discharge will be set up, see detail in drawing 4-19, one is original WS-01# discharge, another combine 2,3,4,5,6 to one sewage discharge, name as WS-06# discharge, sign plate and corresponding dosing unit as well as COD online surveillance instrument will be set up. Location of Nisco sewage discharge refers to drawing 3-1.

5.8.2 Exhaust emission standardization setup According to , waste gas discharge canister of the construction project must be built as standardization and set up sewage symbol, in order to sample, survey and manage. Waste gas discharge canister of the construction project refer to engineering analysis chapter, table 4-25, table 4-26, table 4-28, table 4-31, table 4-32, table 4-34, table 4-37, table 4-39 and table 5-5.

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5.8.3 Solid waste storage place standariztion It is suggested that special storage facilities or stack field should be setup for industrial solid waste; watering it at times in case of secondary dust. Marked symbol board should be setup at solid waste storage (disposal) location. Producing and disposal status of solid waste of the construction project refer to engineering analysis chapter 4-40. 5.8.4 Standardization measures on fixed noise pollution source Noise surveillance point should be mounted on most influential point of boundary from fixed noise pollution source. According to above principle and considering factory boundary geometric form, 26 noise surveillance point and symbol board are mounted on the boundary. Detailed location of 26 noise surveillance point refer to drawing 8— 3.

5.9 Inspection schedule of three simultaneous environment measures of the construction project Inspection schedule of three simultaneous environment measures of the construction project refer to table 5— 7, Inspection schedule of “leading old with new”environment measures of the construction project refer to table 4— 44.

Table 5— 5 Inspection schedule of three simultaneous environment measures of the construction project Investment Source Name of calculation Sequence Item name of environment （ten Effect Progress number pollution protection facility thousand yuan） Sintering machine head Powder dust≤100mg/m3 Built up and 180m2×1Sintering Exhaust 1 260m2electric dust 3505.09 commissioned machine gas catcher to running Sintering machine tail Powder dust≤100mg/m3 105m2 electric dust catcher Finished product granule Powder dust≤120mg/m3 60m2 electric dust catcher

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Flux crush 30m2 electric Powder dust≤120mg/m3 dust catcher Fuel crash 1850m2 sack Powder dust≤120mg/m3 type dust catcher Fuel receiving 120m2 Powder dust≤120mg/m3 sack type dust catcher Mix room 45m2 electric Powder dust≤120mg/m3 dust catcher Once blend SC30 striking Powder dust≤120mg/m3 dust catcher Annular chiller surplus Powder dust≤30mg/m3 heat boiler Waste Septic tank and dynamic COD≤100mg/L SS≤70mg/L 120.35 water sewage disposal unit Sound insulation、 Factory boundary qualified Noise elimination unit and low 30.18 noise equipment Solid Solid waste synthetic 255.05 Synthetic utilizing waste utilizing facility Beautify environment and reduce Virescence — 25.0 pollution 3 360m2×1 sintering Exhaust Sintering machine head Powder dust≤100mg/m 2 4077.3 2006．4 machine gas 260m electric dust catcher×2 Sintering machine tail Powder dust≤100mg/m 3 200m2electric dust catcher Finished product granule Powder dust≤120mg/m3 82m2 electric dust catcher Flux crush 32m2 electric Powder dust≤120mg/m3 dust catcher Fuel coarse smash Powder dust≤120mg/m3

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Fuel fine smash Powder dust≤120mg/m3 680m2sack type dust catcher Mix room 36m2 electric Powder dust≤120mg/m3 dust catcher Calces room spraying Powder dust≤120mg/m3 water dust catcher 1#transfering station Powder dust≤120mg/m3 96m2pulse dust catcher 7# transfering station Powder dust≤120mg/m3 256m2pulse dust catcher

Investment Sequence Source of Name of environment calculation Item name Effect Progress number pollution protection facility （ten thousand yuan） Annular chiller surplus Powder dust ≤30mg/m3 Exhaust gas heat boiler Septic tank and COD≤100mg/L Waste water dynamic sewage 43.19 SS≤70mg/L disposal unit 360m2×1 sintering 、 Noise of factory 1 Sound insulation 2006.4 machine Noise elimination unit and 138.72 boundary qualified low noise equipment Solid waste synthetic 454.17 Solid waste Synthetic utilizing utilizing facility Beautify environment Virescence — 84.4 and reduce pollution 3#、4#coke oven 3#、4#coke oven coal Powder dust≤120mg/m3 2 Exhaust gas 870 2004.12 （55bores×2seats） loading de-dust station 3#、4#outgoing coke 1090 2004.12 de-dust station

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3#、4#coke sift building 500 2004.12 de-dust station 3 COG desulfuration unit 450 H2S≤100mg/m 2004.12 3#、4#energy saving Energy saving reduce project like dry 14300 2006.4 pollution putting out coke etc. waste water ammonia 350 waste water return for 2004.7 braise unit waste water putting out coke and BF waste water treatment 1940 residue rinse 2004.12 station 5#coke oven coal 980 loading de-dust station 5#coke oven output 3 1290 Powder dust≤120mg/m coke de-dust station coke sift building 250 exhaust gas de-dust station 5# coke oven COG desulfuration unit 250 H S≤100mg/m3 2 2006.4 （60bore×1battery） energy saving project Energy saving reduce like dry putting out 7200 pollution coke etc. waste water ammonia 150 waste water return for braise unit waste water putting out coke and BF waste water treatment 1500 residue rinse station Beautify environment 55bore×2 coke oven virescence virescence 230 and reduce pollution And 60bore×1 coke 2005.4 Surveillance Environment oven 90 Pollution control device protection instrument 3 3 2000m Blast Exhaust gas Wash water vapor trap 12530 H2S≤5.2kg/h Built up and

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Furnace BLT charging system commissioned LY –III -S-900 low for running Powder dust≤120 mg/m3 pressure pulse bag de-dust

Investment Sequence Source of Name of environment calculation Item name Effect Progress number pollution protection facility （ten thousand yuan） BF trough charging system LY –III -S-7200 3 12530 powder dust≤120 mg/m3 low pressure pulse bag de-dust Mud grinding chamber 3 Built up and 3 casing pulse bag powder dust≤120 mg/m 2000m Blast furnace Exhaust t gas de-dust commissioned for Iron-making plant low running pressure pulse bag smoke≤150 mg/m3 de-dust smoke≤150 mg/m3 Stove stack 3 SO2≤2860 mg/m Flush water, vapor 2550m3 Blast furnace Exhaust gas H S≤5.2kg/h 2006.7 trapper 2 BLT charging system LY –III -S-900 low powder dust≤120 mg/m3 pressure pulse bag de-dust BF trough charging system LY –III -S-7200 powder dust≤120 mg/m3 low pressure pulse bag de-dust

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Mud grinding chamber casing pulse bag powder dust≤120 mg/m3 de-dust Iron-making plant LY-III-S-7200 low smoke≤150 mg/m3 pressure pulse bag de-dust smoke≤150 Stove stack 3 3 mg/m SO2≤2860 mg/m Sewage pipe net Circulation, one water Sewage treatment more use, waste water Waste water Circulating water zero exhaust; industrial system water utilizing rate 97.6% 2004.1 3 3 、 Boundary reach standard 2000m ×1+2550m ×1 Noise Sound insulation noise Blast Furnace drop Callback, integrate Solid waste Zero exhaust utilizing Sound insulation、noise Virescence virescence drop Hot metal reladle Smoke and powder dust station, pulse bag ≤15.0 mg/m3 de-dust Hot metal Smoke and powder Hot metal torpedo desulfurization pulse dust≤10.0 mg/m3 tank car and repairing bag de-dust 4 facility 120Tconverter Exhaust gas Converter primary 7974 2005.7 +120T LF+RH smoke,OG wet flue gas Smoke and powder +2500mm slab caster dust≤50.0 mg/m3 purify system Converter secondary Smoke and powder smoke pulse bag dust≤40.0 mg/m3 de-dust

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Investme nt calculati Sequence Source of Name of environment Item name on Effect Progress number pollution protection facility （ten thousan d yuan） Ladle furnace refining pulse exhaust gas Smoke and powder dust≤30.0 mg/m3 Hot metal torpedo tank car bag de-dust and repairing facility waster water Circulating water system Circulation, one water more use 4 120Tconverter +120T Sound 7974 2005.7 LF+RH +2500mm slab noise insulation,damping,noise Noise battery limit reach standard caster elimination facilities solid waste Callback, integrate utilizing Zero exhaust Sound noise insulation,damping,noise noise battery limit reach standard 5 3500mm Steckel mill 260 2005.12 elimination facilities solid waste Callback, integrate utilizing Zero exhaust Discharge powder de-dust 300 Powder discharge reach standard system exhaust gas Powder discharge, wet Reduce powder volatilization, 200 spraying dust drop unit Powder discharge reach standard Deposit ponds（2） 100 waster water reuse after deposit waste water Construction of living sewage Living sewage goes to company living 50 6 Stock house pipeline sewage system for treatment 2005.12 Sound noise insulation,damping,noise 80 noise battery limit reach standard elimination facilities solid depose collecting and solid waste 100 No secondary pollution produced storage system virescence Factory area virescence 100 Rate of virescence exceed 30% 7 Dock, harbor and exhaust gas Sprinkling unit 5 Reduce dust 2005.4

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overhead railway Construction of living sewage Living sewage goes to company living waste water 100 pipeline sewage system for treatment solid depose collecting and solid waste 50 No secondary pollution produced storage system Virescence of factory area virescence 100 Rate of virescence exceed 30% and isolation belt Construction of sewage wastewater reuse, sewage diverse 200 Diversify cleared sewage and reuse pipeline Sound 20000m3/h oxygen making noise insulation,damping,noise 200 Noise battery limit reach standard Synchronize ×1 elimination facilities with main 8 and 3 thermoelectric Virescence of factory area engineering virescence 100 Rate of virescence exceed 30% generating units and isolation belt Surveillance Continuous flue gas 30 Continuous flue gas monitoring instrument monitoring device Virescence of factory area Beautify environment and reduce and isolation belt pollution

Synthetic treatment of powder Reduce unorganized powder Synchroniz Exhaust gas disorderly discharge discharge e with main General transportation, Water treatment factory and Reduce water consuming（increase engineering Waste water 4 utilities, water treatment pipeline expansion water circulation）2630×10 t/a 9 1715 factory and pipeline Sound insulation,damping,noise noise Noise battery limit reach standard expansion elimination facilities Virescence of factory area and Beautify environment and reduce virescence isolation belt pollution Deep treatment of coke waste 10 Others Waste water 1280 Discharge reach stardard water Waste water reuse pipeline（to extinguish coke and BF slag 70 Saving water resouce flush）

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Waster water accident storage Prevent accident discharge of waste 380 pond water Total 65777.45 —

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6. Analysis on clean production and cycling economy

6.1 Purpose and function of clean production and cycling economy The iron & steel industry features heavy pollution and high energy consumption. Pollution and energy consumption have become the urgent issue to be solved for the development of iron & steel industry due to the limitation of economic factors, relatively poor technical bases, appratuses, production management capability and processes. The simple treatment to pollution, constrained by economic conditions, will bring about not only high cost and poor returns but also difficulties of solving the problem completely. The clean process of less pollution and low energy consumption has evolved as the only way for the iron & steel industry to survive and develop. The purpose of clean production and cycling economy is to achieve the control on full production process, through maximizing the use of resources and energy, minimizing waste amount and minimizing damage to the environment. This also requires no damage to the environment while products are produced from raw materials to the finish ones. Therefore, clean production and cycling economy is a necessity to achieve the strategy of sustainable development, an efficient measure to control the environmental pollution and the best way to improve the competitive competence in the market, which can greatly abate the terminal treatment. As clearly stated in Resolutions on Issues of Environmental Protection of the State Council and the Ninth-Five-Year Plan on State Environmental Protection and Objectives on 2010, great effort must be put on enforcing clean production. According to Instructions on Technical Assessment of Environmental Influence from Construction Projects (Interim), PartⅣ , Key Points on Examination of Clean Production and Actural Conditions of the Constructed Project, the analysis on clean production of this project shall be focused on the following aspects: State industrial policies, qualities of main raw materials, materials and fuels, reasons of the selection, characteristics and advantages of the process, for reduction of raw materials, materials, energy resources and pollution emission as well as cycling economy. The analysis on clean production of this project shall be compared with and assessed according to the industry standard on environmental protection of the PRC, i.e. the Standard on Clean Production, Iron & Steel Industry (For Suggestions) (HJ/T xx-2004) and Standard on Clean Production, Coking Industry (HJ/T 126-2003),. Standards HJ/T xx-2004 and HJ/T 126-2003 are applicable to the iron & steel enterprises and short process electric furnace plants and coking industries respectively, for the clean production examination, assessment of achievements on clean production and notification regulations of clean production achievements. 6.2 Analysis on state industry policies

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1) Such items as products, scale of production, process and manufacturing equipment of this constructed project are not included in the first, second or third bathes (writ 6, 16 and 32 of the state economic and trade commission) of the catalogue on discarding of laggard equipment of poor capacity, process and products, issued by the economic and trade commission of the PRC. 2) The Constructed project is not covered by catalogue on prohibition of reduntant construction in industrial and commercial investment areas (writ 14 of the state economic and trade commission, 99). 3) The constructed project is not as listed in notifications on prohibiton of plunge in eletrolytic aluminium cement industry issued by the general office of state council and transferred to the development and reform commission (State General Office Number [2003]103). 4) The prohibition and restriction categories of notifications of further enhansing coordinations between industry and credit polices to control the credit risk (development and reform commission industry number [2004]746) do not cover the product, scale, process and equipment of the constructed project. Analysis of conformance of relavent projects and the industry policy (4) refers to table 6-1.

Table 6-1 Analysis of conformance of the industry policy Conditions not restricted by Item Design norms of this project [2004]746 Charring chamber 6m,equiped with coal system (complementary), coal charge Charring chamber height 4.3m and dust precipitation station and above, equiped with dry Coke of the coke discharge, coke coke quenching, coal charging oven screen system,gas cleaning and coke oven for coke-pushing system, low moisture coke deduster quenching and dry coke quenching system Sintering machine 180 m2 and Sintering 360m2 Sintering machine 180m2 3 Volumes 2000 m and 3 Blast 2550m3, equiped with coal Volume ≥1000m , equiped with coal injector and furnance front furnace injector and furnace front dust dust catcher catcher Nominal capacity more than 100 Nominal capacity 220 tons, tons, equiped with gas recovery， equiped with gas recovery and Converter deduster, energy consumption deduster, and converter with and clean water consumption energy consumption and clean matching the criteria water consumption matching the criteria 600mm Steel Hot-rolled coil,width 1600 ～ More than 600mm hot-rolled rolling 2500mm strip

5) The constructed project conforms to the following technology of the

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class 3 environmental protection and comprehensive utilization of resources as well as the class 7 material of instructions on current priority to hi-tech industralization key areas, issued by the state development planning commission and ministry of science and technology. The class 3 environmental protection and comprehensive utilization of resources 47.Industrilization of dry coke quenching devices of the large-and-medium coke-oven plant 48. Complete sets of converter gas purification and recovery 49. Large-sized and efficient bag-type dedusters

The class 7 materials 86. Blast furnace oxygen-enriched coal injection and long-life technique 87. The efficient continuous casting system 6) The constructed projects conform to the following techniques on metallurgical industry as specified by the guide catalogue of state clean production technique (the first and second batches), enacted by the state economic and trade commission.

Techniques of the first batch in the metallurgical industry are: 1. The technique of dry coke quenching 2. The process of blast furnace oxygen-enriched coal injection 4. Waste heat recovery of sintering circulation cooler 5. Electric precipitation for fume purification in front of the sintering machine 6. The H.P.F desulfur purification technology for coke oven gas 9. Bag deduster for blast furnace gas

Techniques of the second batch of metallurgical industry 1. Power generation from blast furnace residual pressure; 2. Double pre-heating heat-accumulation-type furnce for steel rolling; 3. Long-life technology of the converter reblowing of slag-splash; 4. Efficient continuous casting technology; 5.Hot-charging and hot-transferring technology of the continuous casting billet; 7. Automatic control technology of the converter; 9. Fume purification technique of the coke oven; 12. Comprehensive long-life and efficient blast furnace technologies; 14. Steam supply to the vacuum refining process from the converter evaporization cooling system. 7) The constructed project conforms to the following technologies of that of the class 14 iron & steel as specified in the catalogue of industries, products and techniques currently encouraged by the state, enacted by the state economic and trade commission. 4.The technology development on coal conditioning of coking, coal-matching coking, tamping coking and dry coke quenching; 5. Long-life technology development of the high temperature stove; 6. Development of the blast furnace oxygen-enriched coal injection; 7. Development of the comprehensive blast furnace efficient and

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long-life technology; 10. Gas recovery and comprehensive utilization of the blast furnace and converter； 11. Pre-treatment of hot metal; 12. Refining of liquid steel; 13. Development of furnace protection using converter slag-splash; 14. Development of efficient continuous casting technology; 15. Development of hot charging and hot transferring technology for continuous casting billets. 8) The constructed project shall confrom to article 5, primary clean production technologies currently recomented, as indicated in PartⅣ , Key Points on Examination of Clean Production of Instructions on Technical Assessment of Environmental Influence from Construction Projects (Interim). 9) Sub-items of the thermoelectric combined production shall conform to articles on encouraging thermoelectric combined production, furnace gas recovery and comprehensive utilization and gas combined cycle power generation, as specified in catalogue of industries, products and techniques currently encouraged by the state (effective on September 1. 2000). According to the document of planning base [2000]1268, jointly issued by the state development and reform commission, state economic and trade commission, ministry of construction and state general bureau of environmental protection, various combined thermoelectric units shall conform to the following criteria: (1) The average annual total thermal efficiency shall be more than 55%; (2) The average annual thermoelectric ratio shall be more than 50% for generating units with unit capacity between 50MW and 200MW. The average annual thermal efficiency of this project is 88% and thermoelectric ratio 66.9%, which fully conform to the state industry policies.

Summing up, this construction project conforms to relevant industry policies of the state. 6.3 Clean production analysis of primary raw materials, materials and fuels The iron-contained raw materials for sintering are uniformly mixed materials and sintered powder. Such ores as Indian ores, Australian ores and South African ores, with low sulfur content and high-grade iron, are adopted as raw materials. SO2 content and solid waste discharge is lessened from the very beginning. The coke oven will use high-quality clean charred coal. Fuels for sub-projects of this constructed project shall be side product steam, mixed gas, blast furnace gas, coke oven gas and converter gas, among which the coke oven gas is clean desulfur gas. The H2S content is 100 mg/m3. All of the fuels are clean and with low SO2 and fume emission.

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6.4 Features of production process and analysis on advantage 6.4.1 Features of sintering process and analysis on advantage 6.4.2 Characteristics of coke oven production process and analysis on advantage 6.4.2.1 Structure and features of coke oven 6.4.2.2 New technologies used by the coke oven 6.4.2.3 Features of various gas cleaning process 6.4.5 Features of rolling mill process and analysis on advantage The capacity of the finishing line of 3500mm steckel mill shall be increased from the current 1 million tons/year to 1.50 million tons/year. The capacity of the steckel mill has already reached 1.50 million tons/year. Only the second shearing line needs be built for shearing and finishing of the newly added 500,000 tons/year of plates. This shearing line carries out cutting, straightening and roll-grinding in one time. Cold straightening process is used at the cold straightening section to save energy and lower pollution. 6.4.6 Process features for other sub-items and analysis on advantage The stock yard and general transfer projects are made to form a rational and convenient raw material transportation line by rearrangement and retrofitting, based on profit maximization requirements of the company, so as to prevent the raw material from being out and back haul, to reduce losses and to lower costs. Summing up, by using advanced processes, the constructed project shows clean production and less waste discharge. 6.5 Comments on water-saving, energy-saving and consumption lowering measures Energy-saving and consumption-lowering measures of the constructed project: 1) The principle of separation of clean and turbid water, water supply in serial, feeding up clean water with new water, feeding up turbid water with clean water, recycling use and multiple application of the same water is adopted for this project. The water reutilization ratio of the company is further increased. 2) A waste water comprehensive treatment plant is proposed to be built near NISCO WS— 06# drain outlet. Industrial waste water drained from WS— 06# shall be made as water make-up for the whole plant after treatment. The drained waste water of NISCO shall be reduced by 2630×104t/a after this measure of “the new driving the old”is carried out. 3) The double-bevel sintering ignition furnace used in this project consists of ignition zone and soaking zone. The direct ignition by double-bevel cross burner is used in the ignition zone. With short flame and complete burning, the gas consumption is decreased. At the same time, such advantages as good ignition at the sintering surface, high sintering ore yield, efficient ignition, low energy consumption and long

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life are achieved. 4) Two sections mixing are used for sintering. The mixing period is accordingly extended (total of 7.6min). Lime is used to intensify the pelletization and improve air permeability of the mixed material. The proper fuel grain is selected according to charactristics of iron-containing materials, so as to increase the output of sintering ores and save consumption of solid fuels. 5) The electric precipitation, big flues and dry precipitation of the hopper are used at the sintering machine head. Therefore, the temperature of waste gas is kept and power consumption of the fan decreased. The water consumption can be saved. 6) Temperature of the hot waste gas at the first zone of the sintering cycle cooler is relatively high, at about 300-350℃ , which may be recovered as a low temperature gas. This project uses residual heat recovery devices, which will generate more than 200℃ over-heat steam at a flow rate of 8— 10t/h and a pressure of 0.5— 0.7Mpa. The steam will return to the sintering process after incorprates in the network. 7) JN60 －6 coke oven used for this project is of twinflue structure, featuring tight and rational structure and uniform heating as well as high heat engineering efficiency.Comparing with the traditional coke oven, the design of heat accumulation chamber sealing-wall has been improved. The inner sealing-wall is changed to silicon brick, by which the sealing is remarkably upgraded due to the same expansion with the heat accumulation chamber. The ineffective insulation cover of the outer sealing-wall of the heat accumulation chamber is removed and changed to new insulation material coating with sound insulation and sealing results. One additional layer of 20mm calcium silicate plate is installed. Therefore, gas leakage of the sealing-wall and heat-losses are decreased. The heating and operation conditions at the furnace head are improved. 8) The inner red bricks of furnace end wall, hearth and roof are changed to fload bead bricks of the same strength, while the common insulation bricks are replaced by high-strength insulation bricks and furnace door lining bricks are changed to cordierite material. The insulation, utilization and structural strength are improved. 9) Double-layer single-surface automatic cleaning vibrating screen is used under bin of the blast furnace for screening powder of sintered ores and compensating to the weighing error. 10)Heat insulation of hot stoves of the blast furnace is intensified. The cold air duct is outside insulated, and sensible heat is recovered. Hot stoves are equiped with residual oxygen measuring device, which controls the air-fuel ratio during heating process to achieve automatic burning of hot stoves. The blow in temperature is increased as high as possible without gas burning. 11)The pulverized coal injection for blast furnace smelting is maximized to reduce the coke ratio. The blast furnace is operated at high pressure.Gas utilization is improved and power generation equipment using residual gas pressure of the blast furnace is installed. 12)The hot metal transportation for the converter is made by 220t torpedo ladle car, which may guarantee a sound heat-insulation, without

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temperature loss during the transportation. 13)The converter fume is evaporation cooled, and the steam recovered. The clarification of fume is made by wet dedusting. Gas is recovered. 14)The continuous slab caster of this project uses the technology of slab hot charge and hot transfer, which can save energy and reduce pollution. 15)The finishing line of 3500mm Steckel mill carries out cutting, leveling and roll-grinding in one time. Cold leveling process is used at the cold leveling section to save energy and lower pollution. 16)Fuels used by the combined thermoelectric project are residual blast furnace gas, converter gas and coke oven gas. This project changes the waste gases from the primary projects into energy resources of the power plant. By comprehensively utilizing the waste gas, energy is saved and environmental conditions improved. 17)This project adopts automatic process detection and control to keep production in the best pre-set condition. The outdated electromechanical equipment of high energy consumption is discarded and energy-saving equipment recommended by the state adopted. 6.6 Comparison and analysis of raw and accessory materials, energy consumption and blowdown of unit products The consumption of fresh water, energy and materials (raw and accessory materials)for unit products will indicate the technical know-how and management capability of an enterprise. Under the same conditions, the more consumption of resources will bring about the more impacts on environment. And the relatively high pollutant indices will indicate backward process or poor management capability. This assessment analyzes such indices as consumption of raw and accessory materials, by comparing the constructed project with indices of unit consumption of raw and accessory materials for clean production as specified in the environmental protection standards of PRC: clean production standard---iron & steel industry (For suggestion) (HJ/T xx-2004) and clean production standard---coking industry (HJ/T 126-2003). 6.6.1 Comparison of raw and auxiliary materials, energy consumption and blowdown for unit products with the（HJ/T xx-2004）standard and the analysis The comparision of such indices as raw and accessory materials, energy consumption and blowdown of the constructed project with the PRC environmental protection industry standard, clean production standard---iron & steel industry (For suggestions)( HJ/T xx-2004) and the analysis refer to table 6— 2～ table 6— 7.

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Table 6-2 Process equipment and technical figure Constructed Figure Grade 1 Grade 2 Grade 3 project Amount of coke Amount of coke Amount of coke Coke dry dry quenching dry dry 92 quenching 100% quenching≥80% quenching≥50% Supporting desulfur and sulfur recovery facilities VOG cleaning 3 3 200 H2S≤200mg/m H2S≤500mg/m Operation of Thickness of the Thickness of the Thickness of the sintering grate material material material 600 layer material and layer≥550mm layer≥550mm layer≥400mm thick material Pre-heating ignition, Residual heat Power generation by boiler or combustion air of Residual recovery of the residual heat from the heat recovery the holding heat boiler sintering process steam generator furnace or mixed material Power generation 3 ≥1000m blast 3 using blast ≥1000m blast furnace 80% furnace 100% 100% furnace top equipment equipment residual pressure Ratio of charging coke into ≤300 ≤380 ≤420 360 furnace (kg/t iron) Coal injection of the blast ≥200 ≥150 ≥120 180 furnace（kg/t iron） Splashing-slag Furnace Furnace Furnace protection of the 22000 age≥25000 age≥20000 age≥10000 converter Continuous 100 ≥95 ≥90 ≥98 casting ratio Hot-transfer and Hot-charging hot-charge of the Hot-charging temperature≥600℃ , temperature≥400℃ , Grade 2 continuous hot-charging ratio≥50% hot-charging casting slab ratio≥50% Re-heat furnace of small and medium Double section, bars, medium plates, wide pre-heating and plates and narrow strips（heating — Grade 2 heat accumulated capacity 100t/h also） combustion

Table 6-3 Utilization indices of energy and resources Constructed Indices Grade 1 Grade 2 Grade 3 project Comparable energy consumption ≤680 ≤720 ≤780 678 (kg standard coal/t steel) Metal consumption of steel 1080 1090 1100 1080 making (kg/t steel) Water consumption for ≤6.0 ≤10.0 ≤16.0 4.76 production (m 3/t steel)

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Table 6-4 Pollutant indices Constructed Indices Garde 1 Grade 2 Grade 3 project

Performance 3 Wate water drain out (m /t ≤2.0 ≤4.0 ≤6.0 0.29 index steel) COD discharge (kg/t steel) ≤0.2 ≤0.5 ≤0.9 0.012 Petroleum discharge (kg/t steel) ≤0.025 ≤0.2 ≤0.45 0.0005 Fume/dust discharge (kg/t steel) ≤1.0 ≤2.0 ≤4.0 1.53

SO2 discharge (kg/t steel) ≤1.0 ≤2.0 ≤2.5 1.71 Indices for sintering generated Machine SO2（kg/t product） 0.7 1.5 3.0 0.94 products head Fume (kg/t product) 2.0 3.0 4.0 0.29 ） Blast furnace casting house fume (kg/t 2.0 2.5 3.0 0.012 iron)

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Table 6— 5 Index of product

Index Class I Class II Class III Proposed project

Integrative yield of rolled 96 92 90 94 steel （%） 98 Rate of qualified steel （%） 99.5 99 99.2

Rate of steel quality 110 100 90 104 classification （%）

Table 6— 6 Index of waste reutilization

Index Class I Class II Class III Proposed project 96.5 Productive water reusing rate ≥95 ≥93 90 （%）

Reclaim of converter gas（kgce of ≥23 ≥21 ≥18 21.7 per ton steel）

Reutilizing rate of dust & mud 100 ≥95 ≥90 100 with Ferro（%）

Table 6— 7 Requirement of environmental management

Index Class I Class II Class III

Environmental According with relevant requirement in national and local environmental law and rule law and rule with regard to discharge standard, gross discharge control, discharge license management. Founding specialized environmental administration and full time administrator Organization

Environmental Carrying out the According with the requirement in Guideline of Auditing Cleaning Auditing auditing as per Production to carry out the Auditing; soundness of systemized the requirement environmental management; completeness and effectiveness of in Guideline of original record and statistical data. Auditing waste disposal Cleaning Sticking to national stated methods for waste disposal, strictly Production; implement national and local statement of waste transferring, found according with managerial system for hazardous waste and perform innocent ISO14001 to treatment.

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found and Environmental 1. Stipulating operating rules for each 1. Stipulating operating rules practice the management of processing operation, operational for each processing environmental production instruction for crucial post, installing operation, operational manual; process caution board for facilities apt to instruction for crucial post, program file and cause pollution and places apt to installing caution board for job file. generate waste, process operation facilities apt to cause assessable in classification. pollution and place apt to generate waste, process 2. systemizing environmental operation assessable in management, including： classification.

（1）program of environment 2. systemizing management for startup & environmental management, shutdown, and maintenance including： shutdown. （1）program of （2）program of management for environmental new, updating, expansion projects management for startup & and acceptance. shutdown, and maintenance shutdown. （3）pollution control for storage & transportation system. （2）program of management for new, （4）environment management updating, expansion monitoring. projects and acceptance.

（5）emergence program for （3）system of contamination accident. environmental monitoring and management. （6）record of environmental management. （4）emergence program for contamination.

Relevant （1）management of material （1）administrative environmental supplier. procedure for material management supplier. （2）administrative procedure for cooperator and service provider.

As known from the table 6-2 to 6-7, the fundamental of cleaning production has been implemented in the proposed project from selection of production material, saving of energy consumption, selection of production process, pollution control in course of production, and till properties of products, the pollutant produce and discharge has been controlled at the source of production process, which has considerably decreased the pollutant discharge. All the indexes of cleaning production in proposed project have reached the requirement of Class II in Criteria of Cleaning Production for Iron & Steel Enterprise (Exposure Draft) (HJ/Txx-2004), that is to say, an advanced level in China, however partial indexes have not reached the Class I of international criteria. After startup of the proposed project the requirement in the table 6-7 will be executed.

6.6.2 Analysis and comparison of unit consumption of raw material, energy and discharge with the Criteria HJ/T 126-2003 The analysis and comparison of unit consumption indexes of raw

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material , energy and discharging for the proposed project with the Standard of Cleaning Production for Coking Plant HJ/T 126-2003, an industrial standard of environmental protection, P. R. China, refers to the table from 6-8 to 6-13.

Table 6— 8 Requirement of production process and facilities

Proposed Index Class I Class II Class III project n o

i Indoor coal storage outdoor coal t a

r or outdoor coal outdoor coal storage storage with a Reaches the p cleaned coal storage with with stacker reclaimer small-volume e requirement r stockpile p large-volume stacker and water spraying stacker reclaimer

l of Class II

a reclaimer and water facilities and water o

c spraying facilities spraying facilities r o f

y Cleaned coal belt conveyance, enclosed coal conveying vestibule, close casing, Reaches t i l i conveyance with national ventilation facility requirement c a f d

n Manner of coal Reaches

a Automatically and precisely blending coal blending requirement s s

e Cleaned coal counterpunch hammer mill, with impact dedusting facility, Reaches c o

r breaking up dedusting efficiency≥95% requirement P scale of ≥1,000,000 t/a ≥600,000 t/a ≥400,000 t/a Class I production

High efficient dedusting facility, like smokeless

y coaling with high t

i Ground dedusting l i pressure c station with Ground dedusting a f air-trapping station with ammonia d

n dedusting facility, air-trapping dedusting spraying, coal a charging car s dedusting facility, dedusting Reaches the s with smoke e coaling efficiency≥99%， efficiency≥95%， requirement c

o prevention and r trapping rate ≥95%， trapping rate ≥93%， of Class III p dust control, or

g advanced and advanced and reliable

n usual control i reliable PLC PLC automatic k facilities, like wash o automatic control control system C and combustion system facilities for coal charging car, dust-collector hood, and etc.

Height of retort ≥6.0 m ≥4.0m Class I

Knocking blade Elastic d Furnace door Elastic blade door n door blade door a s s e y

t Reaches the c i

l Control of heating Automatically i o

r Controlled by instrumentation requirement c

p system controlled by PC a f of Class II g n i k o gas uptake, bridge Reaches

C Method of water seal pipe requirement

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Proposed Index Class I Class II Class III project

The electrical system of coke pusher and coal Advanced Reaches the Mechanism of charging car adopts PLC control system, mechanical requirement coke oven interlock device for other mechanical manipulation with of Class I manipulation. interlock devices

Equipped with automatic ignition device for raw gas Reaches Raw gas emission requirement

sweeping Reaches apparatus for oven Equipped with sweeping apparatus to ensure that no tar left requirement door and frame

Gas uptake pipe Reliably automatic adjustment Reaches pressure control requirement

Coal charging amount, coal pushing operation Reaches the Automatic record and oven Automatic record requirement and control temperature of Class II monitoring for each battery.

Equipped with quite Equipped with ground dedusting station with efficient dedusting With coke extracting air-trapping dedusting facility, dedusting facility, such as hot dedusting efficiency≥99%，trapping rate ≥90%. flotage casing, and station etc.

Coke dry quenching process, equipped Reaches the coke quenching with hop-pocket Coke wet quenching, quenching tower with requirement process dedusting device, baffle plate of Class II dedusting efficiency ≥99%

hop-pocket Reaches the Coke sift and dedusting device, Impact or foam type dedusting device， requirement convey dedusting efficiency dedusting efficiency ≥90% of Class II ≥99%

Including procedures of cooling drum, desulphurization, Process Reaches decyanation, ammonia washing, benzene washing, naphthalene requirement requirement washing, and etc. e

c Gas primary Reaches i Crossing pipe primary cooler, direct cooler v cooler requirement e d g n i gas blowing variable frequency speed control or hydraulic coupling speed Reaches n

a engine control requirement e l c s Reaches a desulphurization Desulphurization, and sulfur reutilization facilities g requirement

Benzol distilling Reaches Benzol tube furnace method requirement

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Proposed Index Class I Class II Class III project

Concentration of ammonia nitrogen ≤200mg/l 190mg/l of ammonia braising waste,

Gas emission from By means of pressure equilibrium or Reaches storage tank of exhausting lotion tower to reclaim and Using breather valve requirement each work station clean the waste gas of Class II

After the treatment of biological denitrification and coagulating Reaches Hydroxybenzene Reaches standard sedimentation, the water quality can reach requirement cyanide waste of Class I the standards Class II for the discharge of of Class II water pollutants at iron and steel industry.

Table 6— 9 Index of resource and energy utilization

Proposed Index Class I Class II Class III project

Process energy consumption （kg standard coal of per ton ≤150 ≤170 ≤180 Class I coke）

Fresh water consumption per Class I ≤2.5 ≤3.5 ton coke（m3/t Coke）

Steam consumption per ton Class Class I ≤0.20 ≤0.25 coke（t/t Coke） power consumption of per ton ≤30 ≤35 ≤40 38 coke（kW·h/t Coke）

heat consumption of coking ≤2150 ≤2250 ≤2350 - （kJ/kg standard coal）

Rate of coke oven gas 100 ≥95 ≥80 95 utilization （%）

Rate of water cyclic utilization Class I ≥95 ≥85 ≥75 （%）

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Table 6— 10 Index of product

Proposed Index Class I Class II Class III project

Granularity and Granularity and Granularity and strength can strength can reach strength can reach Can reach reach demands of demands of clients, demands of clients, clients, rate of requirement rate of products rate of products of Class II products meeting meeting meeting standards＞98%. standards>95-98%. standards>93-95%.

High quality coke discharges small amount of pollutants in Has relatively low Has obvious effect process of effect on Reaches on environment in steel-making, environment in requirement course of coke Coke casting and course of coke of Class II usage. ferroalloy which usage. has a low environmental effect. The process of The process of The process of storage, storage, storage, Reaches loading/unloading, loading/unloading, loading/unloading, requirement transportation has transportation has transportation has of Class II low effect on the low of effect on the low effect on the environment. environment. environment.

3 3 H2S≤200mg/m H2S≤500mg/m 200 Using qualified tar tank, equipping with dehydration, residue release device, mechanized residue removal, the device and Reaches Coal tar pipe for storage and convey making use of anticorrosion, requirement anti-leakage and antiseep material and tank car transports in closed condition.

The storage, packing, convey makes use of methods of Reaches ammoniums anticorrosion, anti-leakage and etc. requirement Obturation and explosion protection is adopted in the process Reaches Benzene of production, storage, packing and transportation, having no requirement direct contact with human body.。

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Table 6— 11 Index of pollutants created

Propos Class Index Class I Class II ed III project

coal ≤0.5 ≤0.8 Class I granules charging kg/t coke coke ≤0.5 ≤1.2 Class I pushing coal benzopyrene ≤1.0 ≤1.5 1.5 charging （a） coke t g/t coke ≤0.018 ≤0.040 0.04 n pushing a t u l l

o coal p ≤0.01 ≤0.02 Class I charging s u o SO2 e coke s ≤0.01 ≤0.015 Class I a pushing g kg/t coke Coke oven ≤0.035 ≤0.105 Class II chimney

Coke oven granules 2.5 3.5 Class I exhaust gas benzopyre inorganized ne（a） 0.0025 0.0040 Class I leakage 3 mg/m BSO 0.6 0.8 Ammonia braising ≤0.50 ≤1.0 0.51 waste water（t/t coke） p o h

s CODcr（kg/t coke） ≤1.2 ≤2.0 ≤4.0 2.0 k r t o n

w （ ） a NH3-N kg/t coke ≤0.06 ≤0.10 ≤0.20 0.10 t g u l l n i o

s （ i total cyanide kg/t p

a ≤0.008 ≤0.012 ≤0.025 0.01 r r coke） e b t a a i w n Volatile o

m hydroxybenzene（kg/t ≤0.24 ≤0.40 ≤0.80 0.4 m coke） A

sulphide（kg/t coke） ≤0.02 ≤0.03 ≤0.06 0.03

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Table 6— 12 Index of waste recycling

Propos Index Class I Class II Class III ed project

Waste water will be recycled as much r e

t Phenolic cyanide as possible after treatment; the a waste remaining will be discharged toward w

e outside after reaching the standard. t s a coke quenching Coke quenching water closed cycling, W effluent no discharge toward outside.

Coal dust collected at coal collector in coal Entirely reutilized preparing workshop Dust at the collector of coal charging and Entirely reutilized coke pushing All can be done e Entirely reutilized（such as for the use u Dust from coke d i of material at iron & steel industry, s quenching, sifting e ） r shape-making coal and etc. e t s None falls onto ground, and all are a Tar residue（including w added into coking coal or tar tank residue） shape-making coal

None falls onto ground, and all are Benzene residue regenerated added into coking coal, shape-making coal or coke tar

Laying over coal yard or adding into excess sludge coking coal As known from the table 6-8 to 6-12, the fundamental of cleaning production has been implemented in the proposed project from selection of production material, saving of energy consumption, selection of production process, pollution control in course of production, and till properties of products, the pollutant produce and discharge has been controlled at the source of production process, which has considerably reduced pollutant discharge. All the indexes of cleaning production in proposed project have reached the requirement of Class II in Criteria of Cleaning Production for coking industry (HJ/Txx-2004), i.e. domestically advanced level, however partial indexes have not reached the Class I of international Criteria. Based on the comprehensive analysis given above, the proposed project accords with the requirements of cleaning production, and can reach the domestic advanced level of cleaning production.

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6.7 Analysis of cyclic economy China will concentrate force in the first 20 years of 21 Century to build a moderately prosperous society of a higher standard in an all-round way for the benefits of over one billion people. In view of current momentum for economic acceleration, the realization of quadrupling gross domestic product (GDP) should be out of question. However, if traditional development mode is followed, resource supply will be difficult to continue and circumstance cannot bear at the time. Thus, quickening the change of economic growth manners, reinforcing the development effort of cyclic economy, pulling off the traget of ceaseless increase of sustainable development capability, continuous improvement of ecologic environment, and significant increase of resource utilization efficiency, harmonious relationship between human being and nature, and advancing the civilized development of prosperous production, well-off living, favorable zoology in course of the construction of material civilization, political civilization and spiritual civilization, which has become an important mission being ahead of us. Cyclic economy, a closed-loop material flow like resource consumption → product → reclaimable resource, technically features with resource consumption decrement, recycling and reclaim, the key point is of an increase of resource utilization efficiency in comparison with traditional economic activity, which is an open material flow or named one-way flow like resource consumption → product → waste discharge. The technical fundament of cyclic economy requests to add feedback mechanism on the basis of the traditional form of linear technology in industrial economy. During the construction of proposed project, the cyclic economy has been incarnated as much as possible. Detail of solutions refers to the following: The sintering project, a subitem of proposed project, returns fume & dust claimed at electromechanical deduster and bag deduster of sintering machine to sintering process, no discharge toward outside occurs. Water treatment applies distributary of clear and turbid water, cyclic utilization, multi uses from one source, and relay discharge. The so-called relay discharge means the water discharged from high quality water system will be used as the supplementing water to low quality water system. In addition, waste heatboiler is supposed to recuperate the waste heat of high temperature waste gas from the section 1 and 2 of circular cooling machine, then generate medium pressure steam for the use of sintering process after incorporating into steam network, which results in the decrease of energy consumption. The coking oven, a subitem of proposed project, makes full use of waste water produced in coking plant for cyclic utilization of blast furnace slag flushing and drying cooling at quenching tower during accident or maintenance, with no discharge toward environment. The drying cooling technology is used in three coking ovens, effectively reclaiming heat energy generated in the process of coke quenching for the use of electricity generation with waste heat. Solid waste produced at coking ovens and liquid waste produced at gas cleaning device, entirely admixes with raw coal for coking, with no discharge toward

131 Environmental Impact Report environment, and effectively making use of heat energy in solid waste. The granules discharged in the process of coking production is reclaimed and utilized by large-sized ground dedusting station, reclaimed granules, viz. coking dust, admix with raw coal for coking, which not only reduce the discharge of waste gas but also effectively utilize the heat energy generated by granules. The blast furnace, a subitem of proposed project, produces blast furnace slag selling for the production material of other manufactures, which reflects that the enterprise has longitudinally extended production chain from product extension to other product regeneration. The gas dust collected by the gravity dust separator at crude gas system of the project and fume dust collected at each dedusting systems is delivered by truck to sintering plant as sintering material after watering & wetting treatment by screw conveyor. Sludge cake produced in gas washing system is completely reclaimed and delivered as sintering material, therefore the purpose of reutilization and innocuous treatment of wastes produced in the process of production has been achieved. The project has adopted some measures of water saving, like water relaying supply and etc., making use of waste water from clean water circulating system, i.e. backwash water at bypass valve, as partial compensation water for gas washing cyclic system, and making use of waste water from gas washing system as partial compensation water for slag flushing circulation. Gas washing water is reutilized after treatment at radial flow sediment basin, and slag flushing water is entirely reutilized after treatment at bottom filtering sediment basin, the rate of industrial water cyclic utilization highly comes up to 97.6%, which adequately shows one of technical economy characters of cyclic economy, i.e. increasing the rate of resource utilization and decreasing resource and energy consumption in the process of production. The converter plant, a subitem of proposed project, produces hot metal desulphurizing slag and slag at hot metal mixer reclaimed for the use of construction material. Converter slag is used for construction material after heating reclaimed scraps. Converter sludge returns to converter for reutilization. Deposed refractory and casting remaining slag is reclaimed and for outside construction material. Crops of slab return to converter for reutilization, converter fume completely adopts vapourization cooling and steam is reclaimed. Aqueous method is adopted for dedusting at fume cleaning, and gas is reutilized. The converter plant of proposed project implements the principle of water relaying supply, supplementing clean with new, supplementing turbid with clean and cyclic utilization, the cyclic utilization water amounts to 7667t/h, with a rate of 96.1 percent. The clean water vented from the converter plant is supposed to be treated at the integrated wastewater treatment plant which is proposed to be built near NISCO No.6 outfall. The proposed project is planning to build an integrated wastewater treatment plant near NISCO WS-06# outfall, the solution of advancing old plants with new project was scheduled to carry into execution in October,2005. the 80% （ 2630×104t/a ） of existing waste water

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（3287.5×104t/a）will supplement for the cyclic utilization of process water in whole company, thus the discharge of NISCO waste water will decrease by 2630×104t/a after the startup of proposed project. The finish line of 3500mm Steckel mill, a subitem of proposed project, reclaims plate crops to converter for reutilization. The proposed project adopts relevant measures to dispose waste gas, waste water and solid waste produced in the process of production, and decrease dirty discharge, which shows another technical economy character of cyclic economy, i.e. extending and broadening the chain of production technique, and trying to dispose pollution within enterprise as much as possible so as to decrease the dirty discharge in the process of production. The above-mentioned measures could effectively decrease the production cost and the discharge of wastewater and solid waste, change wastes into valuables, minify pollutant producing at source, also decrease sequent pollution abatement cost, accord with the requirement and philosophy of cyclic economy. As mentioned above, the proposed project accords with the requirements of cleaning production and cyclic economy.

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7. Investigation of pollution source in the region

The pollution investigation in the region mainly includes air and water pollution. Key investigation was made on five main industrial companies of NISCO, Huangneng Thermal Power Plant, Nanjing Thermal Power plant, Nanjing Chemical Company and Yangtze Petroleum Industrial Company. Investigation method is based on the declaration of waste release in recent years. Analysis method is of pollution load at equivalent standard.

7.1 Investigation and analysis of air pollution source in the evaluated area 7.1.1 Status of consumption of fuel The main fuel in the five industrial companies of the evaluated area is of coal and oil, including industrial coal of 5.555 million t/a and oil of 343.3 thousand t/a. Based on investigation on air pollution source and structure of consumed fuel, the pollution of air in the evaluated area is mainly of coal fume, pollution factors are SO2 and fume dust. 7.1.2 Assessment method Method of pollution load at equivalent standard is adopted for assessment of pollution in the area, with formula as follows:

Qi 9 Pi  10 C0i

Wherein： Pi— i :pollution load at equivalent standard；

Qi— i: absolute release amount of waste(t/a)；

Coi— i: evaluation criterion of waste (mg/Nm3).

n k Pn  Pi  P  Pn i 1  n1

wherein：Pn— pollution load at equivalent standard

P K  n 100% n P

wherein： P— total pollution load at equivalent standard in evaluated area；

Kn— pollution load percentage of certain pollution

k

P i 总   P n n 1 134 Environmental Impact Report

source.

wherein：Pi 总 — total pollution load at equivalent standard of pollutant i in evaluated area；

Kn— pollution load percentage of pollutant i in the evaluated area. 7.1.3 Investigation of air pollution source in the area The status of air pollution release is in table 7-1.

Table 3-3 Status of air pollution release

Release exhaust Release amount of waste(t/a) amount of mast Name of company waste gas Fume (pieces) NO ★ SO (dust) X 2 (10,000m3/a) NISCO 9294720 61 5687 3329 8550

Huaneng Thermal 1 12529 Power Plant 1551263 1585 ★ 9879

Nanjing Thermal 3 13508 Power Plant 1193049 5337 ★ 14597

Nanjing Chemical 15 ★ Company 357400 530 1092 3220

Yangtze Petroleum 27 18422 3852048 13567 ★ 32129 Industrial Company Total 16248480 107 26706 48880 68375

★ Note: The release amount of NO2 was collected in 2002. 7.1.4 Assessment of air pollution source in the area The assessment result is in Table 7-2, resulted from the calculation of pollution at equivalent standard based on data investigated on air pollution source in the area.

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Table 7-2 Air pollution load at equivalent standard

pollution load at equivalent standard Seque Name of company P K (%) Fume n m nce NOX SO2 (dust)

NISCO 18956.7 27741.7 57000.0 103698.3 10.9 4

Huaneng Thermal 5283.3 104408.3 65860.0 175551.7 18.4 3 Power Plant

Nanjing Thermal 17790.0 112566.7 97313.3 227670.0 23.9 2 Power Plant

Nanjing Chemical 1766.7 9100.0 21466.7 32333.3 3.4 5 Company

Yangtze Petroleum 45223.3 153516.7 214193.3 412933.3 43.4 1 Industrial Company

Pn 89020.0 407333.3 455833.3 952186.7 100.0

Kn(%) 9.3 42.8 47.9 0.0

Sequence 3 2 1

Based on table 7-2, the sequence for pollution load at equivalent standard for five companies is as follows: Yangtze Petroleum Industrial Company, Nanjing Thermal Power Plant, Huaneng Thermal Power Plant, NISCO and Nanjing Chemical Company. The pollution load percentage at equivalent of sulphur dioxide, nitric oxides, and fume dirt is 47.9%, 42.8%, and 9.3% respectively, the main pollutants in the area are sulphur dioxide and nitric oxide. 7.2 Assessment of water pollution source The investigation was only made on industrial waste water, based on the characteristics of those industrial companies in evaluated area, the COD, volatile hydroxybenzene, Petrolic substance, and cyanide in water pollution source were mainly investigated. 7.2.1 Assessment method of water pollution source As per the principle of simple, rational and direct method, assessment is based on investigated and collected information. Method of pollution load at equivalent standard is adopted for assessment of pollution source, with formula as follows:

C i 6 Pi  Q i 10 C 0i

Wherein： Pi— i :pollution load at equivalent standard；

Qi— : release amount of waste water (t/a)；

Coi— i: evaluation criterion for waste (mg/L).

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in Pi

i 1 Ci— i: release concentration of waste (mg/L).

n n P  P P  P m  n n  i n 1 n 1

P P i K  n 100 % K  100 % P Pi i i i1 n Pn P m

wherein： Pn— pollution load at equivalent standard of certain waste

Pm— pollution load at equivalent standard of certain pollution source Ki— rate of pollution load of certain waste；

Kn— rate of pollution load at equivalent standard of certain pollution source 7.2.2 Investigation of waste water source Status of waste water release by various industrial companies in evaluated area is in Table 7-3.

Table 7-3 Main water pollution sources in evaluated area

Release of Release amount of waste(t/a) waste water Name of company CODcr Volatile cyanide Petrolic (104t/a) hydroxybenzene substance

NISCO 5557 2253 1.22 1.11 87.47

Huaneng Thermal Power 45 9.1 — — 0.30 Plant

Nanjing Thermal Power 733 49.6 — — 0.28 Plant

Nanjing Chemical Company 13244 2756 — 8.50 28.50

Yangtze Petroleum Industrial 8513 3926 0.49 0.24 153.13 Company

Total 28092 8993.7 1.71 9.85 269.68 1) 7.2.3 Assessment of waste water source in the area As calculated from the above table, the equivalent load of waste water source refers to the table 7-4.

Table 7-4 Equivalent load of pollution source in the area

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Equivalent load of pollution source Name of Km sequ Volatile cyanid Petrolic Pm company COD hydroxybenz e substan (%) ence ene ce 2531. NISCO 2 150.2 610.0 22.2 1749.4 8 35.9 Huaneng Thermal 5 Power Plant 0.6 0.0 0.0 6.0 6.6 0.1 Nanjing Thermal 4 Power Plant 3.3 0.0 0.0 5.6 8.9 0.1 Nanjing Chemical 3 Company 183.7 0.0 170.0 570.0 923.7 13.1 Yangtze Petroleum 3574. 261.7 245.0 4.8 3062.6 50.7 1 Industrial 1 Company

7045. 100. Pn — 599.6 855.0 197.0 5393.6 2 0 Kn(%) 8.5 12.1 2.8 76.6 100.0 — — sequence 3 2 4 1 — — —

Result for Table 7-4 shows that the primary water pollution is Petrolic substance, and secondly Volatile hydroxybenzene, COD and Cyanide, with equivalent load percentage of 76.6%, 12.1%, 8.5% and 2.8% respectively. The main pollution source is Yangtze Petroleum Industrial Company, with equivalent load percentage of 50.7%. The second main source is NISCO and Nanjing Chemical Company, with equivalent load percentage of 35.9% and 13.1% respectively.

7.2.4 Analysis of waste water source distribution on Stone River The Stone River is of a channel for farming irrigation and flood drainage, which is rated category IV regarding water area function. The river is mainly accommodating the waste water drained from the Nanjing High & New-technology Development area, and domestic sewage from a large number of residents in Zhujiang Town, Taishan Town, and Xinhua Community in Pukou District, as well as a majority of factory effluent and domestic sewage from NISCO. NISCO factory effluent and domestic sewage mainly affects the

138 Environmental Impact Report downstream of Stone River entering Yangtze River, the status of environmental quality monitoring shows that the pollution factor out of the range of standard at downstream of Stone River is ammonia nitrogen, which is mainly caused by the release of domestic sewage by large numbers of residents.

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8 Current Status Assessment of Environmental Quality

8.1 Current Status Assessment of Atmospheric Environment Quality 8.1.1 Current Status Monitoring of Atmospheric Environment Quality 8.1.1.1 Monitoring range and monitoring point setting Based on the principle of taking the environmental function area as the priority and considering the uniform distribution of monitoring points, 7 points will be set for current monitoring in the evaluted area, i.e. point No.1 for living area of Yangtze Petro, point No.2 at Baguazhou area, No.3 at NISCO living area, No.4 at Pancheng Town, No.5 at the High & New-technology Development area, No.6 at Yanjiang Town and No.7 at Taishan Town respectively. Please refer to the Table 8-1 for the exact location of each monitoring point.

Table 8-1 Distance and orientation of monitoring points to the proposed project

Name of monitoring Distance to the proposed project No. points Orientation Distance（m）

＃ Living area of Yangtze 1 Petro Northeast 5.0

2＃ Baguazhou area East 2.0

3＃ Living area of NISCO Northwest 2.2

4＃ Pancheng Town Northwest 5.0 southwest ＃ High & New-technology 5 6.6 Development area

＃ southwest 6 Yanjiang Town 5.0 southwest 7＃ Taishan Town 7.5 Note: the blast furnace of NISCO new steel-making plant was regarded as the reference point.

8.1.1.2 Monitoring Items The elements for monitoring are SO2, NO2, PM10, CO, benzopyrene[a], NH3, H2S, and F. The monitoring item for each point is shown in Table 8-2.

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Table 8 - 2 Overview of monitoring items at each point

Name of No. monitoring Monitoring Items Sampling frequency point

SO2, NO2,PM10, CO, G1 Living area of benzopyrene[a], Yangtze Petro NH ,H S, F 3 2 The samples for SO2 and NO2 Baguazhou were taken for consecutive 5 days, G2 SO , NO , PM of which samples for Point No.1, area 2 2 10 No.3, and No. 6 were taken everyday for consecutive 24 SO2, NO2, PM10, CO, G3 NISCO Living Benzopyrene[a], hours, and the others were taken area 6 times per day at 02:00, 07:00, NH3,H2S, F 10:00, 14:00, 16:00 and 19:00 Pancheng respectively. The samples for G4 SO2, NO2, PM10 Town PM10 were taken once per day for consecutive 12 hours of High & New consecutive 5 days. The samples technology CO, Benzopyrene[a], NH ,H S, G5 SO2, NO2, PM10 3 2 Development and F were taken for consecutive area 3 days at Point No.1, No.3 and No.6, the sampling was carried out SO , NO , PM , CO, 2 2 10 each time for the morning and the G6 Yanjiang Town Benzopyrene[a], afternoon. NH3, H2S, F

G7 Taishan Town SO2, NO2, PM10

8.1.1.3 Monitoring System and Sampling Method

1) Monitoring period and sampling frequency The monitoring work was carried out by the Key Envirmental Mornitoring Station of Nanjing from October 10th to 14th of 2004 for 5 consecutive days. The method of atmospheric sampling and analyzing was in accordance with Techanical Regime of Environmental Monitoring and Analysis Method of Atmosphere and Exhaust Gas issued by the State Environmental Protection Bureau, as well as Enforcement Regulation and Routine of Atmospheric Environment Mornitoring in Jiangsu Province issued by Jiangsu Envirmental Mornitoring Station. The Sampling frequency is shown in Table 8-2. 2) Method of sampling and analyzing

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The method of sampling and analyzing was in accordance with the Technical Regime of Environment Mornitoring (Atmosphere part) issued by the State Environment Protection Bureau. The method of sampling and analyzing refers to Table 8-3.

Table 8 - 3 Overview of the method of sampling and analyzing

Item Sampling method Analyzing method gravimetric method PM10 filtration membrane sampling （GB/T15432-1995）

Formaldehyde absorption - SO2 solution absorption method spectrophotography of rosaniline （GB/T15262-94）

Saltzman method NO2 solution absorption method （GB/T15435-1995）

CO bag sampling Non-dispersing infrared method Benzopyre high performance liquid filtration membrane sampling ne[a] chromatography Spectrophotography by Na NH solution absorption method 3 reagent Spectrophotography by H S solution absorption method 2 methylene blue filtration membrane fluorinion F filtration membrane sampling selective electrode

According to relevant technical regulations stated by the State Main Monitoring Station and Provincial Monitoring Station, quality control will be implemented throughout the monitoring process. The quality control in the process of field sampling includes calibration of flux and sampling time with the use of two stage soap film flowmeter for sampling instruments. Quality control in the process of laboratory includes sampling 20% parallel samples and 10% additional standard sample, implements blank check and trapping control on standard operating curves.

8.1.2 Current Status Assessment of Atmospheric Environment Quality 8.1.2.1 Evaluation criterion The assessment of SO2, PM10, CO, B[a]P and F accords with the

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standard category II stated in the Ambient air Quality Standard (GB3095-1996); NO2 is executed in accordance with the Revise Notice of Ambient air Quality Standard (GB3095-1996) (Document No.1 (2000) issued by the State Environment Protection Bureau). NH3, H2S is executed in accordance with the concentration limit of detrimental substance in the atmosphere of living area stated in Hygiene Standard of Industrial Enterprise Engineering. Details refer to Table 1-4.

8.1.2.2 Monitoring Result Analysis The monitoring statistical results of each monitoring item are shown in Table 8-4 to 8-7.

Table 8 - 4 Statistical summary of SO2 monitoring result

Rate of over Rate of Daily average limit of daily Concentration concentration Monitoring of average No within 1 hour over limit concentratio Point 3) within 1 hour concentration (mg/m mg/m3 n （%） （%）

Living area of 1 0.004— 0.011 0 0.005— 0.008 0 Yangtze Petro

2 Baguazhou area 0.003— 0.025 0 0.011— 0.014 0 Living area of 3 0.002— 0.183 0 0.016— 0.103 0 NISCO 4 Pancheng Town 0.003— 0.041 0 0.009— 0.017 0 High-tech 5 Development 0.003— 0.038 0 0.012— 0.018 0 area 6 Yanjiang Town 0.015— 0.353 0 0.080— 0.111 0 7 Taishan Town 0.003— 0.025 0 0.008— 0.020 0

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Table 8 - 5 Statistical summary of NO2 monitoring result

Concentration Rate of Rate of over limit within 1 hour concentration over Daily average of No Monitoring Point 3 of daily average limit within 1 hour concentration mg/m concentration（%） (mg/m3) （%）

Living area of 1 0.003— 0.011 0 0.005— 0.008 0 Yangtze Petro

2 Baguazhou area 0.006— 0.071 0 0.018— 0.040 0

Living area of 3 0.039— 0.129 0 0.073— 0.088 0 NISCO

4 Pancheng Town 0.010— 0.058 0 0.019— 0.035 0

High & 5 New-technology 0.011— 0.078 0 0.015— 0.038 0 Development area

6 Yanjiang Town 0.012— 0.162 0 0.046— 0.098 0

7 Taishan Town 0.013— 0.091 0 0.019— 0.054 0

Table 8 - 6 Statistical summary of PM10 monitoring result

Rate of over limit of Range of daily average No Monitoring Point 3 daily average concentration mg/m concentration（%）

1 Living area of Yangtze Petro 0.051— 0.139 0

2 Baguazhou area 0.028— 0.130 0

3 Living area of NISCO 0.213— 0.271 100

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4 Pancheng Town 0.152— 0.271 100

5 High-tech Development Area 0.186— 0.278 100

6 Yanjiang Town 0.207— 0.391 100

7 Taishan Town 0.135— 0.391 80

Table 8 –7 Statistical summaries of particular pollutants monitoring result

Rate of hourly average monitoring Rate of daily average monitoring concentration concentration Monitoring Item area Rate of Rate of Range of Range of over limit over concentration (mg/m3) concentration (mg/m3) （%） limit（%）

CO 1.0—1.9 0 1.2—1.3 0

B[a]P — — 0.0009×10-3—0.0013×10-3 0 1# Living area of NH 0.008—0.010 0 — — Yangtze 3 Petro H2S 0.0005—0.001 0 — —

F 0.25×10-3—1.23×10-3 0 0.74×10-3—0.84×10-3 0

CO 1.3—3.4 0 1.4—2.9 0

B[a]P — — 0.0012×10-3—0.0020×10-3 0 3# Living area of NH3 0.014—0.018 0 — — NISCO H2S 0.0005—0.002 0 — —

F 0.95×10-3—1.9×10-3 0 1.06×10-3—1.45×10-3 0

CO 1.0—1.6 0 1.1—1.5 0

B[a]P — — 0.0022×10-3—0.0041×10-3 0 6# Yanjiang NH3 0.009—0.012 0 — — Town H2S 0.0005—0.003 0 — —

F 0.82×10-3—5.01×10-3 0 0.87×10-3—4.99×10-3 0

By means of statistics and analysis we can see the status of various pollutants in the atmospheric air of the evaluated area.

3 The 1 hour concentration of SO2 is 0.002-0.353 mg/m and the daily

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average concentration is 0.005-0.111 mg/m3, there is no monitoring point with concentration over limit in terms of both daily average and 1 hour concentration.

The 1 hour concentration of NO2 is 0.003-0.162 mg/m3 and the daily average concentration is 0.005-0.098mg/m3, there is no monitoring point with concentration over limit in terms of both daily average and 1 hour concentration.

The range of daily average concentration for PM10 is 0.028-0.391mg/m3, all the monitoring points happened with daily average concerntration over limit apart from 1# at Living area of Yangtze Petro and 2# at Baguazhou area.

The 1 hour concentration of CO is 1.0-3.4 mg/m3 and the range of daily average concentration is 1.1-2.9mg/m3, there is no monitoring point with concentration over limit in terms of both daily average and 1 hour concentration.

The range of daily average concentration of B[a]P is 0.0009×10-3 — 0.0041×10-3mg/m3, there is no monitoring point with concentration over limit in the evaluated area.

The range of daily average concentration of B[a]P is 0.0009×10-3— 0.0041×10-3mg/m3, there is no monitoring point with concentration over limit in the evaluated area.

The range of primary concentration of NH3 is 0.008— 0.018mg/m3, there is no monitoring point with primary concentration over limit in the evaluated area.

The range of H2S primary concentration of is 0.0005— 0.0030mg/m3, there is no monitoring point with primary concentration over limit in the evaluated area.

The 1 hour concentration of F is 0.25×10-3— 5.01×10-3 mg/m3 and the range of daily average concentration is 0.74×10-3— 4.99×10-3mg/m3, there is no monitoring point with concentration over limit in terms of both daily average and 1 hour concentration.

8.1.2.3 Current Status Assessment of Atmospheric Environment Quality

1) Assessment Factor

SO2, NO2, PM10, CO, B[a]P, F, NH3 and H2S will be used as factors for current status assessment of atmospheric environment quality. 2) Assessment Method

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The index method of a single item standard will be used to evaluate the current status of the atmospheric environment quality, i.e.:

Iij= Cij /Csi

Wherein: Iij - index of pollutant i at monitoring point j 3 Cij- average monitoring value (mg/Nm ) of pollutant i at monitoring point j 3 3 Csi - evaluation criterion (mg/Nm ) for pollutant i（mg/m ） 3) Assessment Result The index calculation of a single factor pollutant is shown in Table 8-8 and 8-9.

Table 8-8 Value I for conventional pollutants

Value I No Measuring points SO2 NO2 PM10 1# Living area of Yangtze Petro 0.053 0.067 0.927 2# Baguazhou area 0.093 0.333 0.867 3# Living area of NISCO 0.687 0.733 1.807 4# Pancheng Town 0.113 0.292 1.807 5＃ High & New-technology 0.120 0.317 1.853 Development area 6＃ Yanjiang Town 0.740 0.817 2.607 7＃ Taishan Town 0.133 0.450 2.607

Table 8-9 value I of particular pollutants

No Measuring Value I points CO Benzopyren NH3 H2S F Living area 1# 0.325 0.130 0.050 0.100 0.120 of Yangtze Petro

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3# Living area 0.725 0.200 0.090 0.200 0.207 of NISCO 6# Taishan 0.375 0.410 0.060 0.300 0.713 Town

By calculating the value I of each evaluating factor in the evaluated area, we can further comprehend the current status of atmospheric environment quality in the area. The Value I for conventional pollutants in the evaluated area is ranked as I SO2

The Value I of each pollution factor apart from PM10 is less than 1. The current status assessment of atmospheric environment quality in the evaluated area shows that the status of atmospheric environment quality in this area is preferable.

The main reason PM10 was over limit at some measuring points of the proposed project is of dust nuisance from the nearby buildings.

8.2 Current status Assessment of Surface Water Environmental Quality 8.2.1 Summary of the Water System in the Evaluated Area The Yangtze River Nanjing Dachang reach is located in the northeast of Nanjing, and belongs to the North Branch reach of Baguazhou. Its total length is about 21.6km and its main branch is Macha River. The water surface width in Dachang reach is about 350-900m, the water surface in the inlet, outgoing reach and middle portion of Macha River is wider with the width of about 700-900m, and the narrowest water surface is about 350m and is located in the proximity of Nanjing Chemical Plant, the average river width is about 624m and the average water depth is 8.4m. The plan shape represents a big curve with protrusion towards the north.

This river reach is the tidal reach located at the downstream Yangtze River, which is affected by the medium intensive tide. Two tide peaks and two tide valleys appear everyday. The flood tide lasts about 3 hours and the ebb tide lasts about 9 hours. The flood tide has a flat top, as a flow coming from the opposite direction. According to the data statistics of the water level for Xiaguan in 1921-1991, in the past years the highest water level is 10.2m (Wusong fundamental plane, on August 17th, 1954), the lowest water level is 1.54m, the maximum water level change is 7.7m within one year (1954), in dry season the maximum tide level difference is 1.56m (on December 31st of 1951) and the average tide level difference is 0.57m within a few years.

In the past years the average flow in the Yangtze River Nanjing Dachang reach is 28600m3/s. The minimum monthly average flow

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occurs in January, the water flow starts to swell in April and reaches the maximum value in July. The diversion ratio by the Dachang-Zhenjiang reach varies according to the incoming flow from the upstream; the diversion ratio is about 18% in the flood season and 15% in the dry season. In the past years the maximum flow is 18,000m3/s and the minimum flow is 1,200m3/s in this river reach.

The Stone River located at the upstream of the assessment river reach is a channel for farming irrigation and flood drainage, which water area function is category 4. A majority of NISCO waste water will be drained to the Yangtze River via this flood drainage channel.

8.2.2 Current Status Investigation and Assessment 8.2.2.1 Assessment Factor The monitoring factors include PH, CODcr, index of hypermanganate, Petrolic substance, volatile hydroxybenzene, SS, NH3-N, cyanide and fluoride.

8.2.2.2 Monitoring Time and Sampling Frequency The samples were taken consecutively for 3 days from October 10th to 12th of 2004. The samples were taken twice per day, one at flood tide and another at ebb tide.

8.2.2.3 Monitoring Section and Monitoring Point Comprehensively considering water quality change, hydrological features, outfall position and etc. in the evaluated area, a monitoring section with one monitoring point was set on the Stone River reach, which is near the new renovated outfall locating in NISCO old production area. In addition, three monitoring sections were set on the Yangtze River reach, they are respectively locating at the position of 500m upstream the entrance of the Stone River to the Yangtze River, NISCO waterhead site which is 1900m downstream the entrance of the Stone River to Yangtze River, and the location of 1200m downstream the No.3 waterhead of Nanjing Chemical Plant which is 3500m downstream the entrance of the Stone River to the Yangtze River, each measuring section were set with 3 mornitoring points, which are located at 20m, 70m and 150m away from the north bank of Yangtze River respectively.

Refering to the Table 8-10 and 8-2 for the specific location of monitoring section.

Table 8 -10 Location of the Water Quality Monitoring Sections

River Reach No. Location Description

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Evaluated Ⅰ 500m upstream the outfall of the Stone River

NISCO waterhead site (1900m downstream the Ⅱ entrance of the Stone River to the Yangtze River) Yangtze River 1200m downstream the No.3 waterhead of Nanjing Ⅲ Chemical Plant (3500m downstream the entrance of the Stone River to the Yangtze River)

The newly renovated outfall reach in NISCO old Stone River Ⅳ production area.

8.2.2.4 Method of sampling and analyzing The method of sampling and analyzing method accords with relevant national standard and regulation issued by the State Environment Protection Bureau. 8.2.2.5 Monitoring Results

The monitoring results of water quality assessment are shown in Table 8-11.

Table 8 - 11 the monitoring results of water quality assessment (in mg/L)

Petroli Volatile SS ammon Water Section c hydrox ia cyanid evalute Items PH COD I fluorid s cr Mn substa ybenze nitroge e d nce ne n

Yangtze No No 34 0.025 no River Minimum 7.56 ＜10 1.3 detectio detectio detectio 0.21 n n n

no no 86 0.876 no Section ＜ Ⅰ Maximum 8.07 10 1.5 detectio detectio detectio 0.40 n n n

no no 60 0.206 no Average 7.75 ＜10 1.4 detectio detectio detectio 0.29 n n n

no no 35 0.025 no Section ＜ Ⅱ Minimum 7.36 10 1.3 detectio detectio detectio 0.21 n n n

no no 98 0.056 no Maximum 8.07 ＜10 1.5 detectio detectio detectio 0.28 n n n

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Petroli Volatile SS ammon Water Section c hydrox ia cyanid evalute Items PH COD I fluorid s cr Mn substa ybenze nitroge e d nce ne n

no no 51 0.027 no Average 7.70 ＜10 1.4 detectio detectio detectio 0.25 n n n

no no 20 0.025 no Minimum 7.34 ＜10 1.3 detectio detectio detectio 0.21 n n n Section Ⅲ no no 62 0.049 no Maximum 8.08 ＜10 1.5 detectio detectio detectio 0.29 n n n 0.028 no no 44 no Average 7.75 ＜10 1.4 detectio detectio detectio 0.24 n n n

0.12 no 58 3.93 no Minimum 7.20 ＜10 2.4 detectio detectio 1.25 n n

Stone Section 0.40 no 73 6.10 no Maximum 7.74 10 4.0 detectio detectio 1.49 River Ⅳ n n

0.28 no 66 4.98 no Average 7.50 ＜10 3.2 detectio detectio 1.36 n n

detection limit - 10 - 0.05 0.002 - 0.025 0.004 -

Ⅱ type 6-9 15 4 0.05 0.002 25 0.5 0.05 1.0 assessment criterion Ⅳ ype 6-9 30 10 0.5 0.01 60 1.5 0.2 1.5 Note: PH zero dimension; SS will implement the standards issued by Ministry of Water Resources.

8.2.3 Current Status Assessment of Surface Water Environment 8.2.3.1 Assessment Method The index method of single factor standard will be used for current status assessment of the surface water environment quality. The following is the formula to calculate the single factor standard index:

ci S j  c0i

Wherein: Si- Standard index of the pollutant i; ci- Average monitoring value of the pollutant i (mg/L) ; c0i-Evaluation criterion for the pollutant i (mg/L) The calculation formula for pH standard index is:

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7.0  p H J p H 7 .0 S p H , J  J 7 .0  p H s d

p H 7 .0 J pH J 7.0 S p H  p H sU 7 .0

Wherein: pHi- Average monitoring value at Point j; pHsd- Lower limit specified in the water quality standard; pHsu- Upper limit specified in the water quality standard;

8.2.3.2 Results of assessment The results of current water quality refer to the Table 8 - 12。

Table 8 -12 Calculated Results of Each Factor Standard Index (Pij)

Section PH COD I Petrolic Volatile SS ammo cyanide fluorid cr Mn substance hydroxyb nia enzene nitrog Section 0.17 ＜0.67 0.35 No No 2.40 0.41 No 0.29 Section 0.17 ＜0.67 0.35 No No 2.04 0.05 No 0.25 Section 0.17 ＜0.67 0.35 No No 1.76 0.06 No 0.24 Section 0.00 ＜0.33 0.32 0.56 No 1.10 3.32 No 0.91 Note: SectionⅠ , Ⅱ , Ⅲ will implement the standard of Category II, and SectionⅣ will implement the standard of Category Ⅳ . Table 8-12 shows that all the concentrations of PH, CODcr,IMn, Petrolic substance, Volatile hydroxybenzene, Cyanide and Fluoride have reached the limits of Category II of the Yangtze River or Category Ⅳ of the Stone River specified in Surface Water Environment Quality Standard (GB3838-2002), the concentration of SS is over limit at each measuring section and the ammonia nitrogen is over limit at SectionⅣ . And therefore, the water quality at each monitoring section of the Yangtze River is preferable and able to reach the requirements of Category II specified in Surface Water Environment Quality Standard (GB3838-2002) apart from SS. However the SS and ammonia nitrogen in the monitoring section of the Stone River occurs over limit and water quality could not the requirement of CategoryⅣ specified in Surface Water Environment Quality Standard (GB3838-2002) . The concentration of ammonia nitrogen out of range of standard is mainly caused by the domestic sewage discharged by numbers of residents, and SS over limit is caused by a partial of NISCO project constructions.

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8.3 Existing status and effect assessment of acoustic environment 8.3.1 Investigation on existing acoustic environment NISCO locates at Xiejiadian, Dachang district in northeast of Nanjing main part, about 16km away from downtown, with the Yangtze River in the south, Ningyang highway in the north, Huaneng thermo power plant, Nanjing thermal electric power plant, Nanjing chemical company and Yangtze Company in the east. The Dachang district is ranked as category III area in the classification of environmental function areas.

Xiejiadian, a low massif area, is locating at the extension toward northeast of Laoshan cordillera with severe hypography. NISCO old workshops and facilities are always built complying with the topography. So the equipments in the plant stand upright beside the hills. The plant boundary is zigzag, some places even have no clear marks of plant boundary. The proposed project locates in the south of NISCO old production area, where belongs to bottomland near the Yangtze River and the topography is quite flat. NISCO is supposed in overall scheme to cover an area of above 4 million m2, after the programming removal of local residents there will be no dwelling house existing within 100 meters around the new plant boundary, and the nearest school, Xinhua primary school, is at least 800 meters away from the plant boundary.The sensitive objectives around NISCO in old profuction area will basically keep unchanged, Those, such as Mazhuang, Wangjiawan, and the offices in north of NISCO, living area, schools and hospital, are the main sensitive acoustic objectives of the proposed project.

As a large-scale of iron and steel complex, there exist many facilities with high noise, each workshop has sources of noise pollution, and in some workshops the whole building is a big noise source. Based on the noise investigation of NISCO existing equipments in production, the main equipments with high noise in NISCO are listed in the following table 8-13.

Table 8 - 13 Main existing noise source and sound level dB(A)

Sound level Description of high noise No. during Situation for noise control equipment operation

Converter fan No.3 in steel making 1 90 plant

Converter fan No.2 in steel making 2 91 plant

Converter fan No.1 in steel making 3 92 plant

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Hill as natural barrier, the Blower for converter in steel making 4 96 sound level outside of plant plant boundary is 58dB(A)

Pump station for water treatment in 5 88 steel making plant

Dedusting fan No.1 at the charging 6 end of the sintering machine in No.2 95 sintering plant

Dedusting fan No.2 at the charging 7 end of the sintering machine in No.2 94 sintering plant

Dedusting fan No.1 at the charging 8 end of the sintering machine in No.1 94 sintering plant

Dedusting fan No.2 at the charging 9 end of the sintering machine in No.1 94 sintering plant

60m2 dedusting fan at the discharging 10 end of the sintering machine in No.1 81 sintering plant

11 Draught fan No.1 for pellet shaft kiln 80

12 Draught fan No.2 for pellet shaft kiln 83

13 Blower for pellet shaft kiln 100

14 Fan No.1 for 35t boiler in Power Plant 86

15 Fan No.1 for 35t boiler in Power Plant 87

Water treatment pump station in 16 81 Power Plant

17 Steam turbine in Power Plant 88

50 dB(A) outside of plant after 18 Recovery fan in Coke Plant 95 treatment

19 Blower No.1 in Coke Plant 87 51 dB(A) outside of plant

Blower No.1 (bag type dedustor) in 20 84 EAF Plant

Blower No.2 (bag type dedustor) in 21 85 EAF Plant

Water treatment pump station in EAF 22 88 Plant

23 Water pump in EAF Plant 86

Hot blast stove No.1 in Iron Making 24 89 Plant

Hot blast stove No.2 in Iron Making 25 88 Plant

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Water treatment pump station in Strip 26 81 Mill

Noise under power in Steel Making Outside 61 dB(A)，exceeding 27 Plant the standard value at night

28 3-high mill in Plate Mill 97 55 dB(A)

57 dB(A)，exceeding the 29 4-high mill in Plate Mill 91 standard value at night

Fan for primary fume of converters in 30 95 new steel-making plant

Fan for primary fume of converters in 31 95 new steel-making plant

32 Dedusting fan of refining furnace 93

33 VD vacuum pump 90

34 Dedusting fan for hot metal treatment 90

35 Dedusting fan for hot metal mixer 86

36 Compressor 98

37 Gas pressurizer 95

38 Pump room 85

39 Mill of wide plate/coil plant 95

Blower of wide plate/coil plant reheat 40 104 furnace

41 Pump room 85

42 Mill train in bar mill 97

43 Blower of reheat furnace 103

44 compressor 95

45 Pump room 85

8.3.2 Current status assessment of acoustic environment

8.3.2.1 Current status of ambient noise monitoring In order to objectively see the effect of NISCO production noise on the surrounding environment and comprehensively comprehend the current status of the surrounding of NISCO old and new production area, altogether 26 noise monitoring points are set along the existing plant boundary, those monitoring points locate on the boundary of NISCO new and old production area and office & living area, including 12 points distributed along the boundary of old production area, 8 points along the boundary of new production area, and 6 points

PAGE 155 OF 252 ENVIRONMENT IMPACT REPORT distributed in living & residential area, office, NISCO middle school. The distance between measuring points has considered the effects from main noise sources in plants and also principle of equal interval distribution, details refer to table 8-3. Each monitoring point is monitored for two days, once a daytime and once a night.

The environmental assessment of noise monitoring has been carried out by Nanjing Key Station of Environmental Monitoring from October 13th to 14th, 2004, The noise measuring meter is an integrated type sound level meter AWA5611 made by Zhejiang AIWA Instrumentation. The measurement has strictly complied with the Methods of Embient noise Measurement in Cities and Noise Measurement at Plant Boundary of Industrial Enterprise. The obtained sound level is an equivalent sound level treated by sound meter, the ambient environment and main sources of noise pollution around monitoring points were recorded simultaneously, details refer to table 8-14.

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Table 8— 14 Summary of Measuring result of current noise monitoring at plant boundary [Leq(A)]

Average in two Oct 13th Oct 14th Measuring days Main noise Circumstan No position source ce day night day night day night

100 m east of NISCO Old plant 1 Huaneng Power 59.1 56.7 64.2 48.4 61.7 52.6 mechanical noise boundary Plant

Steam of blast North of new New plant 2 59.6 55.3 63.4 54.3 61.5 54.8 furnace, traffic production area boundary noise

East of new Mechanical, New plant 3 53.8 53.4 59.6 49.1 56.7 51.3 coking plant steam boundary

East of new New plant 4 56.6 49.7 53.3 47.3 55.0 48.5 Mechanism coking plant boundary

Outside the New plant southeast of new Construction boundary 5 62.8 52.4 54.8 44.1 58.8 48.25 production area noise boundary

Outside the New plant southwest of Construction, boundary 6 57.2 51.4 48.7 46.4 52.95 48.9 new production vehicle area boundary

West of new New plant 7 48.4 47.1 51.2 49.7 49.8 48.4 Beyond piling coking plant boundary

Northwest of New plant 8 46.4 49.9 48.2 44.0 47.3 47.0 Road roller new coking plant boundary

Joint between Old plant 9 new and old 59.8 44.5 59.8 44.5 Traffic, knocking boundary production areas

Southeast of Old plant 10 62.7 52.3 54.3 50.4 58.5 51.4 traffic plate/coil plant boundary

Entrance of old Traffic, cooling Old plant 11 51.3 44.3 47.2 55.8 49.3 50.1 coking plant tower boundary

residential 12 Mazhuang 51.9 45.6 53.3 48.7 52.6 47.15 Social living area

West of old coke Cooling tower, Old plant 13 59.2 56.7 59.2 56.7 plant mechanism, train boundary

residential 14 Wujiawan 57.6 52.1 54.5 53.8 56.05 52.95 Social living area

Southwest of Old plant 15 wide plate/coil 59.5 56.2 59.5 56.2 fan boundary plant

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West of wide Old plant 16 59.3 58.9 59.3 58.9 Water pump fan plate/coil plant boundary

Northwest of Traffic, Old plant 17 wide plate/coil 59.6 54.5 59.6 54.5 constrction, boundary plant mechanism

West of plate Compressor, Old plant 18 mill office 57.1 54.1 57.1 54.1 hangerplate boundary building

West boundary Traffic, social 19 of NISCO middle 56.6 53.8 58.7 52.9 57.65 53.35 school living school

West boundary Traffic, social 20 of NISCO 52.3 53.1 54.0 52.1 53.15 52.6 hospital living hospital

NISCO village Traffic, residential 21 53.5 53.0 58.5 53.7 56.0 53.35 six construction area

NISCO village residential 22 58.9 54.8 62.5 53.4 60.7 54.1 Traffic, fan five area

North of NISCO Traffic, Old plant 23 steel-making 59.5 43.5 59.5 43.5 construction boundary plant

North of Old plant 24 58.7 48.9 58.7 48.9 Fan, traffic sintering plant boundary

NISCO scrape Old plant 25 60.7 52.5 60.7 52.5 Fan, mechanism yard boundary

North of NISCO Crane, Old plant 26 60.1 54.1 60.1 54.1 material yard mechanism boundary

Average 55.5 51. 6 56.9 51.1 57.0 51.5 2) 8.3.2.2 Assessment of current status of ambient noise Based on the monitoring result of current ambient noise, the continuous equivalent sound level A during daytime at plant boundaries is within 47.3-61.7dB(A) (average in two days), the average sound level during daytime is 57.0 dB(A). The ambient noise in night averaged in two days is within 43.5— 58.9 dB(A), the average sound level in two days is 51.5 dB(A), as far as the average sound level is concerned, the ambient noise level outside NISCO plant boundaries can reach the standards during daytime, but slightly fail to reach in night.

According to the types of three different function areas, the analysis was carried out by dividing the ambient noise monitoring points outside plant boundary into old plant boundary, new plant boundary and resident & school, results refer to table 8-15.

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Table 8-15 Analysis of current ambient noise

Environmental Classification Old plant New plant area of resident based on boundary boundary environmental and school area Day Night Day Night Day Night Average sound 58.4 52.1 55.5 50.0 56.0 52.3 level [dB(A)] Over limit rate % 0 25 0 0 0 0

1) Noise at old plant boundary As can see from the analysis results of current ambient noise, the noise at NISCO old plant boundary is over limit in daytime, the average sound level in night can reach standards, but of which there are 3 monitoring points out the range of standards with a rate of 25 percent. The monitoring points over limit in night and locating at the NISCO old plant boundary are No.13, 15 and 16, where all are in hills, but the noise at plant boundary can reach standards if the measurement is carried out on the other side of hills. 2) Noise at new plant boundary At present the noise at new plant boundary is quite low and reaches standard in both daytime and night. The present noise sources at new plant compose of production noise and construction noise, the reason the noise at plant boundary is relatively low is the area of new plant is very broad and the construction of many workshops and facilities have not been ready for production. 3) Ambient noise at the area of resident & school The ambient noise at resident and school area could reach standard in both daytime and night, of which 4 monitoring points locating at NISCO middle school, hospital, and employee living area are affecting a lot by the traffic noise. The ambient noise of two monitoring points at the resident area of Mazhuang and Wangjiawan reaches the standard of fuction area category III, but the noise at monitoring point of Wangjiawan is higher than that of Mazhuang. Although those two monitoring points are closing to old plant area, but quite away from NISCO high noisy facilities, and the hills are also separating residential area from workshops, which provides a rather good noise shielding and the tree on hills certainly has a function of noise absorption.

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9. Assessment and prediction of environment effects

9.1 Assessment of atmospheric environment effects 9.1.1 Pollution Meteorological Features In this assessment the pollution meteorological features are analyzed by using of the ground meteorological data and space exploring data in the last years provided by Nanjing Observatory.

9.1.1.1 Normal Ground Meteorological Feature Analysis 1) Ground Wind Field Feature Analysis In Nanjing area, the east northeasterly wind prevails in spring, the east southeasterly wind prevails in summer, and the east northeasterly to north northeasterly wind prevails in autumn and winter. Around the whole year, the most prevailing wind is the east northeasterly wind and the east southeasterly wind, the sub-prevailing wind is the northeasterly and easterly wind. The calm wind (<1.5m/s) is 29.1%. The yearly wind velocity average is 1.7m/s-3.3m/s, the maximum wind velocity average is the east northeasterly wind velocity and the minimum wind velocity average is the northerly and southerly wind velocity.

2) Ground Temperature and Dew Point Temperature According to the historical meteorological data statistics the yearly and seasonly ground temperature and dew point temperature are shown in Table 9-1. In Nanjing area, the yearly temperature average is 15.1℃ , the extremely highest temperature is 39.1℃ and the extremely lowest temperature is -16.3℃ . The average temperature in the hottest month is 27.7℃ and the average temperature in the coldest month is 1.6 ℃ . The yearly dew point temperature average is 11.5℃ , the dew point temperature average in the hottest month is 24.8℃ and the dew point temperature average in the coldest month is -2.2℃ .

Table 9— 1 Yearly ground temperature and dew temperature

Summ Autum Wint Yearly Season Spring er n er average Ground Temperature 14.2 26.6 16.5 2.9 15.1 ℃

Dew Point 10.3 23.2 12.9 -1.0 11.5 Temperature ℃

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3) Precipitation The statistic of meteorological data for years indicates: the yearly average precipitation is 979.5mm in Nanjing, the precipitation in spring, summer, autumn and winter is 238.6 mm, 465.1mm, 186.2mm and 89.6mm respectively. The maximum daily precipitation is 204.3mm. The yearly relative humidity average is 79%, the maximum monthly relative humidity average is 85% and the minimum monthly relative humidity average is 75%. The maximum snow depth is 15cm. 4) Statistics of Atmospheric Stability By using the meteorological data in recent years, the above meteorological data will be analyzed through statistics and p.s. stability classification. The frequency (%) of atmospheric stability in different seasons and different years is shown in Table 9-2.

Table 9 - 2 Frequency (%) of different level of atmospheric stability in different seasons and years（%）

Season Year A-B C D E F

94 10.33 17.97 41.74 22.53 9.44

Spring 95 21.45 16.0 39.27 14.55 8.73

96 15.22 19.93 44.20 10.51 10.14

94 21.06 19.37 34.84 13.64 10.53

Summer 95 22.18 22.55 31.27 21.73 11.27

96 19.93 17.39 38.41 14.49 9.78

94 18.9 13.01 34.49 20.56 13.04

Autumn 95 16.91 13.97 31.25 22.06 15.81

96 20.88 12.09 37.73 19.05 10.26

94 7.94 12.58 35.86 25.95 17.38

Winter 95 6.32 14.5 35.32 25.05 18.22

96 9.56 10.66 36.40 26.84 16.54

94 14.56 15.91 36.74 18.19 12.38 The whole 95 16.77 16.77 34.28 18.7 13.47 year 96 16.41 15.04 39.2 17.68 11.67

Average in the last three 15.91 15.9 36.74 18.2 12.51 years

Table 9-2 shows that the stability Level D appears most frequently in

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any seasons or years, and the average frequency of stability Level D in the last three years is 36.73%. The frequency of stability Level F is minimum and the average in the last three years is 12.51%.

5) Integrated frequency of Wind Direction, Wind Velocity and Stability Table 9-3 shows the integrated frequency of wind direction, wind velocity and stability from statistics of the meteorological data in the last three years.

Table 9 - 3 Integrated frequency (%) of Wind Direction, Wind Velocity and Stability in the last three years（%）

j I K 1 2 4 6 8 A-B 0.30 0.10 0.03 0.00 0.00 C 0.00 0.27 0.37 0.00 0.00 N D 0.80 0.60 0.93 0.03 0.03 E-F 0.33 0.23 0.00 0.00 0.00 A-B 0.27 0.10 0.10 0.00 0.00 C 0.03 0.33 0.40 0.00 0.00 NNE D 0.73 1.00 1.13 0.43 0.27 E-F 1.17 0.50 0.03 0.00 0.03 A-B 0.33 0.17 0.13 0.00 0.00 C 0.00 0.70 0.73 0.07 0.00 NE D 0.37 1.13 1.90 0.43 0.57 E-F 1.17 0.50 0.03 0.00 0.03 A-B 0.37 0.33 0.40 0.00 0.00 C 0.00 0.67 1.37 0.20 0.00 ENE D 0.77 1.60 2.67 0.73 0.50 E-F 0.67 0.67 0.33 0.00 0.00 A-B 0.80 0.23 0.13 0.00 0.00 C 0.00 0.63 1.67 0.00 0.00 E D 0.63 0.83 1.50 0.67 0.43 E-F 0.40 0.87 0.30 0.00 0.00 A-B 0.43 0.23 0.63 0.03 0.00 C 0.00 0.80 2.10 0.30 0.03 ESE D 0.60 0.50 1.57 0.90 1.37 E-F 0.50 0.83 0.43 0.00 0.03 SE A-B 0.57 0.20 0.27 0.00 0.00 C 0.00 0.20 0.47 0.03 0.00 D 0.33 0.43 0.77 0.10 0.10

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j I K 1 2 4 6 8 E-F 0.37 0.37 0.17 0.00 0.00 A-B 0.50 0.23 0.30 0.00 0.00 C 0.00 0.30 0.27 0.00 0.00 SSE D 0.17 0.07 0.27 0.03 0.00 E-F 0.23 0.37 0.03 0.00 0.00 A-B 0.43 0.20 0.13 0.00 0.00 C 0.00 0.43 0.77 0.00 0.00 S D 0.50 0.43 0.33 0.03 0.03 E-F 0.37 0.33 0.00 0.00 0.00 A-B 0.20 0.07 0.10 0.00 0.00 C 0.00 0.53 0.57 0.03 0.00 SSW D 0.03 0.30 0.13 0.03 0.07 E-F 0.50 0.33 0.10 0.00 0.03 A-B 0.20 0.07 0.13 0.00 0.00 C 0.00 0.30 0.43 0.03 0.00 SW D 0.13 0.07 0.33 0.17 0.03 E-F 0.33 0.10 0.07 0.00 0.00 A-B 0.47 0.20 0.63 0.00 0.00 C 0.00 0.53 1.43 0.17 0.00 WSW D 0.43 0.83 0.80 0.47 0.13 E-F 0.60 0.60 0.03 0.00 0.00 A-B 0.47 0.17 0.13 0.00 0.00 C 0.00 0.30 0.77 0.03 0.00 W D 0.80 0.63 0.50 0.20 0.13 E-F 0.60 0.67 0.07 0.00 0.00 A-B 0.07 0.13 0.27 0.00 0.00 C 0.00 0.20 0.43 0.00 0.00 WNW D 0.43 0.47 1.13 0.23 0.27 E-F 0.50 0.17 0.00 0.00 0.00 A-B 0.27 0.07 0.07 0.00 0.00 C 0.00 0.20 0.27 0.00 0.00 NW D 0.47 0.30 0.17 0.07 0.13 E-F 0.23 0.10 0.13 0.00 0.00 A-B 0.37 0.03 0.00 0.00 0.00 C 0.00 0.20 0.13 0.03 0.00 NNW D 0.27 0.47 0.43 0.00 0.00 E-F 0.10 0.13 0.00 0.00 0.00

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j I K 1 2 4 6 8 A-B 0.37 0.03 0.00 0.00 0.00 C 0.00 0.20 0.13 0.03 0.00 N D 0.27 0.47 0.43 0.00 0.00 E-F 0.10 0.13 0.00 0.00 0.00 Note: I-wind direction K-stability J-velocity level

9.1.1.2 Boundary Layer Pollution Meteorological Features 1) Temperature Profile and Temperature Inversion Feature The temperature profile mainly reflects the rule that the temperature changes with the altitude. The atmospheric temperature inversion in the lower layer normally can be classified as the close-to-ground temperature inversion (the bottom of the temperature inversion layer is on the ground), low altitude temperature inversion (the bottom of the layer ≤500m) and high altitude temperature inversion (the bottom of the layer >500m). Most of the close-to-ground temperature inversion and the low altitude temperature inversion are created during radiation, while the high altitude temperature is formed by influence from the macroscale meteorological system. The frequency, range of altitude and strength (the average within recent three years from 1994 - 1996) of the temperature inversion at 7:00 and 19:00 are shown in Table 9-4 by using the space exploring data provided by Nanjing Meteorological Observatory.

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Table 9 - 4 Temperature Inversion Features of Different Seasons in Nanjing Area

m Yearly

e Time Features Spring Summer Autumn Winter t

I average

Frequency 26.7 9.7 50.0 54.8 35.3 e (%) r u t a r 07:00 Thickness (m) 387 359 165 302 303 e p m Strength n e

t 0.63 0.07 1.19 1.90 0.95 o i (℃ /hm) d s r n e u v o Frequency r n

i 33.6 11.2 61.0 53.0 39.7 g

- (%) o t - e 19:00 Thickness (m) 168 129 188 159 169 s o l

C Strength 0.68 0.49 1.12 1.17 0.87 (℃ /hm)

n Frequency o

i 36.7 45.2 27.3 19.4 32.2

s (%) r e v

n 07:00 i Thickness (m) 340 271 371 372 338 e r u

t Strength

a 0.99 0.47 0.47 0.67 0.65 r (℃ /hm) e p

m Frequency e

t 19.5 24.0 12.6 11.7 17.0 (%) e d u t i 19:00 Thickness (m) 367 263 375 402 352 t l a

w Strength

o 0.54 0.37 0.39 1.2 0.63 L (℃ /hm) e r Frequency u t 43.3 32.3 72.9 83.9 58.1 a (%) r e p n m 07:00 Thickness (m) 332 483 318 429 391 o i e t s r e e Strength d v 0.38 0.40 0.39 0.63 0.45 u n t i (℃ /hm) i t l a

h Frequency

g 19:00 34.5 30.8 40.4 35.6 35.3 i (%) H

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Thickness (m) 403 501 410 440 439 Strength 0.41 0.42 0.38 0.59 0.45 (℃ /hm)

2) Boundary Layer Wind Field Feature The Table 9-5 is obtained from the statistics of wind direction changing with altitude.

Table 9 - 5 Frequency of the wind direction changing with altitude

Altitude Direction change 0-100m 100-300m 300-600m 600-900m Change to the right 47.0 44.4 81.0 54 No change 47.0 36.1 6.4 29

Change to the left 6 19.5 12.6 17 Change to the right 30.6 36 41.9 45.8 by 22.5° Change to the right 11 5.6 38.7 8.3 by 45° Change to the right 5.6 2.8 by >45° Change to the left by 506 19.4 6.5 16.7 22.5° Change to the left by 6.5 45° Change to the left by >45°

Many experiments in Nanjing area indicate that the wind velocity will change following the logarithmic law in the vertical direction under neutral condition and following the exponential law under normal stratification. The wind exponent ‘m’in the formula of wind exponential law at different stabilities can be educed by the least square method based on the actual measurement data. The formula is: Z u  u ( ) m 1 Z 1 PAGE 166 OF 252 ENVIRONMENT IMPACT REPORT

Where u and u1 are the wind velocity at altitude z and z1 respectively, and m is the wind exponent. Table 9-6 lists the recommended wind exponent value m in 1997.

Table 9 - 6 Wind exponent value ‘m’at different stabilities

Stability A B C D E F

m 0.150 0.170 0.193 0.270 0.330 0.400

U10 2.0 2.2 2.7 2.5 1.8 1.6

3) Mixed Layer Height Normally, the mixed layer height H is determined by the graphical method and formula method. By using the low altitude exploring data in the assessment area, the mixed layer height in the assessment area is calculated for the last three years according to the T-Inp graphical method, the temperature profile, the Guohuan Formula and the Nozaki formula respectively. Considering the different calculation resulting from the different formula and referring to the low altitude exploring data in the evaluated area in 1997, the recommended mixed layer height H is shown in Table 9-7 at four different seasons. Table 9-8 shows the recommended H at different stabilities.

Table 9-7 Recommended mixed layer height H (m) at different season and year

4 times Seasons 02 08 14 20 average

Spring 616 709 1155 695 794

Summer 596 694 1141 720 788 Autumn 505 553 1163 683 726

Winter 488 451 1016 524 620 Year 551 602 1119 656 732

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Table 9-8 Recommended mixed layer height H (m) at different stabilities

Stability A B C D E F

H（m） 1375 1131 989 858 502 419

9.1.2 Impact Forecast on Ambient air Quality 9.1.2.1 Forecast Mode

According to the requirements by Technical Specification for Environment Impact Assessment (HJ/T2.2-93), the assessment will be carried out by using Gauss air quality mode. This mode can not only be suitable for air pollutants diffusion and transmission in the local scale area, but also has the advantages of high resolution factor and high calculation efficiency.

1) Point Source Diffusion Mode When Windy When windy (the wind average velocity U10≥1.5m/s at the height of 10m from the ground), the concentration c (mg/m3) at any point(x, y) on the ground leeward can be calculated according to the following formula by taking the ground position of the exhaust pipe as the origin:

Q y 2 c  exp(  2 ) F 2 U  y  z 2  y

k 2 2 (2nh He ) (2nh He ) F {exp[ 2 ] exp[ 2 ]} nk 2z 2z Wherein: Q— Pollutant discharged (mg/s); σy— Horizontal transverse diffusion parameter (ｍ)； σz— Vertical diffusion parameter (m); U— Wind average velocity at the exit of the exhaust pipe (m/s); h— Mixing layer thickness (m); He— Effective source height (m) of the exhaust pipe He can be calculated by:

He H s H

Wherein： Hs— Geometric height (m) of the exhaust pipe ΔH— Fume rising height (m) U will be calculated by:

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H U U ( s ) p 10 10 Wherein: P— Wind velocity height index The diffusion parameter σy、σz can be expressed as ：

1 2 x 1 X ,z 2 X

Wherein: α1— Regression index of the transverse diffusion parameter；

α2— Regression index of the vertical diffusion parameter； γ1— Regression factor of the transverse diffusion parameter；

γ2— Regression factor of the vertical diffusion parameter 2) Point source diffusion mode for breezy condition 3 When breezy (1.5m/s> U10≥0.5m/s), the concentration cL(mg/m ) at any point(x, y) on the ground can be calculated according to the following formula by taking the ground position of the exhaust pipe as the origin:

2Q cL (x, y)  3/ 2 2 G (2) 02

Where η and G can be calculated by the following formula：

 2 2 ( x 2 y 2  01 H 2 ) 2 e 02

2 2 U /2 s2/2 G e 01 {1  2s e (s)}

s 1 2 ( s)  e t / 2 dt 2 

UX s  01

Where γ01，γ02 are the regression factors for transverse and vertical diffusion parameters respectively (σx=σy=γ01T, σz=γ02T), T is the diffusion time(s). 3) The calculation formula for the maximum landing concentration and distance

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3 The maximum ground concentration Cm(mg/m ) at the exhaust pipe leeward and the distance Xm(m) to the exhaust pipe can be calculated by the following formula：

2Q Cm ( Xm )  2 e U He P

Wherein：

— 1 /2 21 2 P  1 1 1 1 1 （ 1 ) （1 ) （ 1 ) 1 2 2 2 2 2 （1  ） H e e 2

1  H e 1/ 2 1 22 X m ( ) (1  ) 2 2 4) Area source diffusion mode for windy condition When the area for the area source is not more than 1km2(S≤1km2), the unreal point source mode will be used. In the unreal point source mode, each area source will be simplified as an equivalent point source and the formula for the point source will be used to calculate the pollution concentration caused by the area source. Assuming that the side length L, source intensity Q and equivalent height H for an area source unit, taking the center of the area source as the origin, then the concentration leeward caused by the area source can be calculated by the calculation formula for the point source by modifying the diffusion parameter as follows:

Q y 2 C s (x, y)  exp( 2 ) F 2Uyz 2y

3 y 3(X X0y )

4 z 4 ( X X 0z )

Wherein： Xoy - backway(m) of the unreal point source in Y direction； Xoz - backway(m) of the unreal point source in Z direction Xoy and Xoz can be calculated by

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L y ( X oy )  ｛ 4.3 H  ( X )  z oz 2.15 5) Area source diffusion mode for breezy condition When breezy the unreal point source mode will be used for area source pollution forecast, i.e. the concentration at the area source leeward can be calculated by the mode for the point source in breezy condition after backway(m) correction of the unreal point source is done. The backway(m) correction of the unreal point source includes the following:

2 2 2 2 01 2  [( X X0 ) y  2 He ] 02

U( X X ) S  0 01

X 0 max( X0 y , X 0z )

LU X 0y  4.3001

HU X 0z  2.1502 Where X0y and X0z are the backways in Y and X direction respectively, X0 is the maximum backway. 6) Multiple source mode If there are more than one pollution sources for a certain pollutant in the evaluated area, the ground concentration at the point will be the sum of the contributions from each source. The concentration Cn at any ground point (x, y) in the evaluated area can be calculated according to the following formula:

） Cn (x, y) CPi (X Xi ,Y Yi C sj (X X j ,Y Y j ) i j

wherein：CPi - Contributed concentration from the point source i to the point (x, y); CSj - Contributed concentration from the point source j to the point (x, y) 7) Long term average mode The yearly long term average concentration at any point in the assessment area is:

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C (x, y) (C f C f rijk ijk Lrijk Lrijk i j k r r

 C f  C f )  stijk ijk  Lstijk Lijk t t Wherein: The subscript i, j, k represent wind direction, atmospheric stability and wind velocity; fijk is the integrated frequency of wind direction, stability and wind velocity when windy; fLijk is

the integrated frequency when breezy or wind static; C rijk ,

C Lrijk are the concentration contributes from the point source

r when windy and breezy or wind static respectively; C Stijk ,

C Lstijk are the concentration contributes from the area source t when windy and breezy or wind static respectively. 8) Calculation formula for the fume rising height ① Under windy, neutral and unstable condition

A. when Qh≥21000kJ/s, the fume rising height ΔH can be calculated by the following formula:

1/ 3 2/3 1 H 1.303Qh Hs U

T Qh 0.35PQv Ts

T Ts T0

Wherein： Qh - Fume heat release rate (kJ/s)； Pα- Atmospheric pressure (hPa)； 3 Qv - Actual fume exhaust rate (m /s)； ΔT - Temperature difference(K) between the fume at the outlet and the ambient；

Ts - Fume temperature(K) at the outlet； Tα - Ambient temperature (K) at the exhaust pipe outlet B. when 2100kJ/s≤Qh≤21000kJ/s and ΔT≥35K, ΔH can be calculated by：

3/5 2/5 1 H 0.292Qh Hs U

C. when 2100kJ/s

Q 1700 H H (H H ) h 1 2 1 400

H1 2(1.5Vs D 0.01Qh ) / U 0.048(Qh 1700) / U

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Wherein： Vs— Fume velocity at the outlet (m/s); D— Inner outlet diameter of the exhaust pipe (m)； ΔH2— will be calculated by the formula (5.3.36). D. when Qh≤1700kJ/s or ΔT<35K：

H 2（1.5Vs D 0.01Qh ) / U

② Under windy and stable condition：

dT H Q 1/3 (0.0098   ) 1/ 3U 1/ 3 h dz

③ Under wind static and breezy condition：

dT H 5.5Q 1/4 (0.0098  ) 3/8 h dz

9.1.2.2 Diffusion Parameter

The diffusion parameters in the city zone recommended by HJ/T2.2-93 are adopted for the assessment and the level of various stabilities are increased according to relevant regulations. 9.1.2.3 Items to be forecast

Due to the implementation of proposed project and the solution of bringing along old plants by means of new project, the discharge of fume & dust has been decreased by a certain degree, and the PM10 at ambient of proposed project will be certainly improved. Thus the increment of atmospheric pollutants is only forecasted for the assessment of effect on the air environment.

（1） average concentration forecast for 1 hour

The SO2 sampling for 1 hour at concerned point will be carried out at windy time (wind speed 2.5m/s), and wind direction NE, SE, S and W, the concentration is forecasted from multiple lapping over pollution sources.

The SO2 sampling for 1 hour at concerned point will be carried out at breezy time (wind speed 0.5m/s), and wind direction NE, SE, S and W, the concentration is forecasted from multiple lapping over pollution sources.

Maximum primary H2S concentration. Hourly average concentration under the condition of smoking at elevated point source.

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（2） daily average concentration

The daily average concentration profile of SO2 in typical day 1, 2 and 3, and concentration forecast at concerned points.

（3） yearly average concentration

The yearly average concentration profile of SO2. 9.1.2.4 Source intensity list

The forecast and assessment of source intensity refers to the analysis of air pollutant of source intensity in the engineering analysis. 9.1.2.5 Ground Concentration Forecast of Atmospheric pollutants

（1） Average concentration forecast for 1 hour

The SO2 sampling for 1 hour at concerned point will be carried out at windy time (wind speed 2.5m/s), and wind direction NE, SE, S and W, the concentration forecasted from multiple lapping over pollution sources refers to Table 9-9.

Table 9-9 Concentration of SO2 sampling at windy time（in mg/m3）

Forecast point Wind A— B C D E— F NE 0.0000 0.0000 0.0000 0.0000 1# Yangtze Petro SE 0.0000 0.0000 0.0000 0.0000 Living area S 0.0044 0.0054 0.0012 0.0254 W 0.0000 0.0000 0.0000 0.0000 NE 0.0000 0.0000 0.0000 0.0000 2# Baguazhou SE 0.0000 0.0000 0.0000 0.0000 S 0.0000 0.0000 0.0000 0.0002 W 0.0357 0.0381 0.0099 0.0008 NE 0.0000 0.0000 0.0000 0.0000 3# NISCO living area SE 0.0313 0.0329 0.0083 0.0036 S 0.0000 0.0000 0.0000 0.0011 W 0.0000 0.0000 0.0000 0.0000 NE 0.0000 0.0000 0.0000 0.0000 4# Pachen Town SE 0.0026 0.0032 0.0004 0.0000 S 0.0000 0.0000 0.0000 0.0001 W 0.0000 0.0000 0.0000 0.0000 NE 0.0032 0.0040 0.0009 0.0000 5# High & New-technology SE 0.0000 0.0000 0.0000 0.0000 Development area S 0.0000 0.0000 0.0000 0.0000 W 0.0000 0.0000 0.0000 0.0000 6# Yanjiang Town NE 0.0090 0.0100 0.0031 0.0001

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SE 0.0000 0.0000 0.0000 0.0000 S 0.0000 0.0000 0.0000 0.0000 W 0.0000 0.0000 0.0000 0.0000 NE 0.0187 0.0237 0.0324 0.0240 7# Taishan Town SE 0.0000 0.0000 0.0000 0.0000 S 0.0000 0.0000 0.0000 0.0000 W 0.0000 0.0000 0.0000

The SO2 sampling for 1 hour at concerned point will be carried out at breezy time (wind speed 0.5m/s), and wind direction NE, SE, S and W, the concentration forecasted from multiple lapping over pollution sources refers to Table 9-10.

Table 9-10 Concentration of SO2 sampling at breezy time（in mg/m3）

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Wind Forecast point A— B C D E— F direction

NE 0.0003 0.0001 0.0000 0.0000

SE 0.0014 0.0016 0.0007 0.0002 1# Yangtze Petro Living area S 0.0033 0.0108 0.0205 0.0254

W 0.0010 0.0009 0.0002 0.0000

NE 0.0019 0.0006 0.0001 0.0000

SE 0.0023 0.0008 0.0001 0.0000 2# Baguazhou S 0.0054 0.0034 0.0008 0.0002

W 0.0209 0.0562 0.0706 0.0262

NE 0.0038 0.0025 0.0006 0.0001

SE 0.0148 0.0431 0.0623 0.0338 3# NISCO living area S 0.0076 0.0098 0.0045 0.0011

W 0.0013 0.0004 0.0000 0.0000

NE 0.0011 0.0010 0.0003 0.0001

SE 0.0032 0.0102 0.0184 0.0215 4# Pachen Town S 0.0014 0.0014 0.0005 0.0001

W 0.0003 0.0001 0.0000 0.0000

NE 0.0027 0.0088 0.0167 0.0215

5# High & SE 0.0009 0.0007 0.0002 0.0000 New-technology Development area S 0.0003 0.0001 0.0000 0.0000

W 0.0002 0.0001 0.0000 0.0000

NE 0.0060 0.0190 0.0331 0.0324

SE 0.0019 0.0015 0.0004 0.0001 6# Yanjiang Town S 0.0007 0.0003 0.0000 0.0000

W 0.0005 0.0001 0.0000 0.0000

7# Taishan Town NE 0.0022 0.0082 0.0192 0.0327

SE 0.0004 0.0002 0.0000 0.0000

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S 0.0002 0.0001 0.0000 0.0000

W 0.0002 0.0001 0.0000 0.0000

Based on the Table 9-9 and 9-10, SO2 samplings for 1 hour at concerned point are carried out at windy and breezy time with wind direction NE, SE, S and W, the average concentration from multiple lapping over pollution sources is much less than the evaluation criterions. The maximum primary concentration of H2S discharge in proposed project refers to table 9-11.

Table 9-11 maximum primary concentration of H2S（in mg/m3）

A— B C D E— F

Coke oven 0.0018 0.0012 0.0008 0.0002

Based on table 9-11, the maximum primary concentration of H2S is much less than the evaluation criterions. The occurrence of inversion temperature in Nanjing is much often, the occurring frequency of inversion temperature closing to ground is above 50%. During the disappearing process of inversion temperature closing to ground, pollutants discharge can cause smoking phenomenon, which will form a zone of high concentrated pollutants closing to ground. The table 9-12 shows the maximum ground concentration and distance to pollution source of sintering machine and blast furnace when inversion temperature closing to ground disappears to inversion temperature top layer (the height of inversion temperature top layer is 180m).

Table 9-12 maximum ground concentration of SO2, TSP and distance to source under smoking condition

3 Pollution source pollutants Cf（mg/m ） Xf（m）

Sintering SO2 0.500 740

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machine TSP 0.034

SO2 0.501 Blast furnace 170 TSP 0.056

Based on the table, the high concentrated zone of pollutants on ground will locate within the radius of 800 m of the discharging source. （2）Daily Average Concentration Forecast The method of typical day is adopted to forecast daily pollutants concentration profile, the table 9-13 shows the meteorological condition for the typical day with 95% of assurance rate.

Table 9-13 Meteorological Condition for the Typical Day with 95% of assurance rate

Time 02 05 08 11 Typical day 1# 2# 3# 1# 2# 3# 1# 2# 3# 1# 2# 3# Wind SW NE E SW ENE SE SSW NE E S NE ENE direction Wind 0.7 3.0 0.7 1.0 4.3 1.7 0.7 1.0 0.7 1.3 0.7 1.0 speed Temperatu 24.3 1.4 22.5 25.2 — 0.4 22.8 26.1 — 2.2 23.1 28.3 2.7 25.5 re Stability E— F D E— F E— F E— F E— F A— B E— F D A— B A— B A— B Time 14 17 20 23 Typical day 1# 2# 3# 1# 2# 3# 1# 2# 3# 1# 2# 3# Wind S NNE E W NNE E SSW NNE E SW SE SE direction Wind 3.0 1.0 1.0 1.0 0.7 1.7 0.7 1.0 1.0 0.3 1.7 1.0 speed Temperatu 30.4 7.6 27.8 28.4 4.7 25.3 26.4 1.7 22.7 26.5 — 0.4 20.9 re Stability A— B A— B A— B A— B E— F D E— F E— F E— F E— F E— F E— F

The 500m×500m calculation grid will be used based on the meteorological conditions. The calculated average contributed concentration for SO2 and PM10 in three typical days is shown in Table 9-4. Daily average contributed concentration profile for SO2 refers to table 9-1 and 9-3.

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Table 9-14 Daily average contributed concentration of pollutants at each concerned point（in mg/m3）

Forecast point pollutant Typical day 1 Typical day 2 Typical day 3

SO 0.0003 0.0003 0.0003 1# Yangtze Petro 2 Living area PM10 0.0001 0.0000 0.0000

SO2 0.0007 0.0008 0.0007 2# Baguazhou PM10 0.0010 0.0002 0.0000

SO2 0.0110 0.0053 0.0146 3# NISCO living area PM10 0.0003 0.0001 0.0000

SO2 0.0132 0.0047 0.0077 4# Pachen Town PM10 0.0006 0.0004 0.0002

5# High & SO2 0.0041 0.0042 0.0028 New-technology Development area PM10 0.0004 0.0002 0.0000

SO2 0.0039 0.0063 0.0053 6# Yanjiang Town PM10 0.0006 0.0003 0.0001

SO2 0.0016 0.0050 0.0036 7# Taishan Town PM10 0.0007 0.0005 0.0003

Based on Table 9-14, the daily average distributed concentration for SO2 and PM10 at each point is less than evaluation criterions. （3）Yearly Average Concentration Forecast According to the integrated frequency distribution of the meteorological condition in Nanjing area, the yearly average contributed concentration for SO2 and TSP is calculated and shown in Table 9-4. The maximum yearly average concentration of SO2 in centre is 0.0035mg/m3, and the maximum yearly average 3 concentration of PM10 in centre is 0.0004mg/m , the contribution of SO2 and PM10 yearly average concentration are all less than the evaluation standards.

9.1.3 Impact Assessment on the ambient air 9.1.3.1 Assessment Index

The assessment index Ii is defined as:

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Ci Ii  C0i

Wherein: Ci— Value of concentration forecast for a certain pollution factor at different sampling time, mg/Nm3；

C0i— Ambient air quality standard for the pollution factor No. i mg/Nm3。

9.1.3.2 Quality Assessment on Ambient air Table 9-15 shows the daily average concentration forecast value, the maximum daily average concentration background value (monitoring value), the superposition of those two values and assessment index for various pollutants at 7 monitoring points.

Table 9-15 Daily Average Concentration Forecast Value, Background Value, Superposed Value and I Value of SO2 at each monitoring point

3 SO2（mg/m ） Name of monitoring point Forecast Background Superposed I value after value value value superposition

1# living area of Yangtze 0.0003 0.0080 0.0083 0.055 Petro

2# Baguazhou 0.0008 0.0140 0.0148 0.099

3# NISCO living area 0.0146 0.0130 0.0276 0.184

4# Pancheng Town 0.0132 0.0170 0.0302 0.201

5# High & New-technology 0.0042 0.0180 0.0222 0.148 Development area

6# Yanjiang Town 0.0063 0.1110 0.1173 0.782

7# Taishan Town 0.0050 0.0200 0.0250 0.167

As shown from the table 9-15, after the startup of proposed project, the superposed value of daily average concentration of SO2 at each monitoring point is less than the evaluation standards.

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9.1.4 Summary of forecast and assessment of atmospheric environment effect

The forecasting and assessing result of atmospheric environment effect shows:

The SO2 sampling for 1 hour at each concerned point will be carried out at windy and breezy time and wind direction NE, SE, S and W, the concentration forecasted from multiple lapping over pollution sources is much less than evaluation criterion. The maximum primary H2S concentration is much less than evaluation criterion. The daily and yearly average concertration of SO2, PM10 at each concerned point are both less than evaluation criterion. After the startup of proposed project, the superposed value of daily average SO2 concentration at each concerned point is less than evaluation criterion. Due to the implementation of proposed project and the solution of bringing along new with old, the dust emission is much less than before, thus the environmental atmosphere around the proposed project will be much improved after construction.

9.2 Impact Assessment of the Surface Water Environment Owning to some advanced water saving technologies and solutions, such as water relay supply, supplementing clean with new, supplementing turbid with clean and cyclic utilization, being used in the technical update & matching project, furthermore an integrated wastewater treatment plant is also proposed to build near NISCO WS-06# outfall for the solution of bringing along old with new and scheduled to carry into execution in October, 2005. The newly added discharge of waste water from the technical update & matching project (199.08×104t/a) is much less than the decrease of discharge by means of the solution of bringing along old with new (3458.11×104t/a), which thus has small effect on the water quality at Nanjing Dachang reach of the Yangtze River.

9.3 Existing situation assessment of acoustic environment 9.3.1 Analysis of noise source intensity The noise sources of expansion project can be classified as three categories, i.e. main production equpment running noise, noise from auxiliary equipment and noise from elevated railway. The newly added noise sources refer to table 9-16.

Table 9-16 The noise source of main equipment and solution in proposed project

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Noise Noise Reference decrement by Shortest sound level Type Description distance solutions solution distance to plant (m) boundary (m) [dB(A)] [dB(A)]

Openable 120t converter 100 3.0 enclosing sound 10 300 insulation

Converter fan 95 1.5 15 250

Secondary 95 1.5 15 250 dedusting fan Sound insulation Fan for hot metal 90 2.0 at fan room, 15 20 Main treatment silencer equipment LF dedusting fan 93 1.5 15 30

Dedusting fan at 86 1.5 15 40 hot metal mixer

Casting machine 95 3.0 10 200 Sound insulation Steam exhausting at workshop fan at caster 90 2.0 building 15 150 secondary cooling

Gas pressurizer 95 1.5 Silencer, sound 20 50 insulation, compressor 98 1.0 vibration damping 20 200

Sound insulation, Water pump 85 1.0 10 30 vibration damping t n e

m Boiler pressure Throttling and p i

u reducing and pressure reducing

q 140 2.0 40 80

e exhausting blowing off y

r (routine) silencer a i l i x

u generator 100 2.0 Sound insulation, 10 80 A vibration damping, Steam turbine 95 1.5 sound absorption 10 80

Sound insulation, Induced draft fan 92 1.0 vibration damping, 15 70 silencer

Air blower 97 1.0 15 70

Cooling fan 90 1.0 15 100

Water jet pump 87 1.0 15 70

Water intake pump 88 1.0 15 70 Sound insulation and vibration Water feed pump 90 1.0 15 70 damping Water cyclic 85 1.0 15 70 pump

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Converter steam Throttling and reducing and pressure reducing 140 2.0 40 250 exhausting outlet blowing off (emergency) silencer

Power plant blowing off 130 2.0 35 80 (routine) Frequency shift silencer Raw gas blowing 130 5 35 30 off (emergency)

Linear noise Traffic Elevated rail way 85 7.5 Vibration damping 3 source

The location of main sound sources refer to the drawing 8— 3。

9.3.2 Acoustic prediction mode and method

The prediction and assessment for the effect of ambient noise will be conducted on the basis of the method and mode recommended by the technical guide for assessment of acoustic environment HJ/T2.4-1995 in industrial enterprise.

（1）For the outdoor sound source, the acoustic attenuation mode is:

LＡ（ｒ）＝LＡ（ｒ０）－Kｌｇ（ｒ/ｒ０）－ΔLＡ

Wherein: LA(r) is the sound level at the predicting point r meters away from sound source; LA(r0) is sound level Aat the point r0 meters away from sound source; K is attenuation factor, K at point source will be 20 mainly used for noise of static equipment and train blowing, K at line source will be 10 mainly used for noise prediction of running train. ΔL is the attenuation value caused by other factors including sound barrier, screening equipment, air absorption, ground effect, and etc. The formula for sound barrier and air absorption is described as following.

If the sound power level is known and the sound source is on the ground, thereof:

LＡ（ｒ０）＝LＷＡ（ｒ０）－20ｌｇｒ０－8

（2） For the indoor sound source, firstly to calculate the sound level A near an enclosing construction caused by certain indoor sound sources:

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２ LＡ１（ｉ）＝10ｌｇ（Q/4πｒ１ ＋4/R）

Wherein: LAl(i) is sound level A near an enclosing construction caused by certain sound source; Q is the directivity of sound source; r1 is the distance between sound source and the an enclosing construction; R is room constant. R=Sα/(1-α), S is the room area, α is the average sound absorption coefficient. The total sound level LA1(T) in an enclosing construction caused by all indoor sound sources is: ０．１ＬＡ１（ｉ） LＡ１（Ｔ）＝10ｌｇ［∑10 ］

The outdoor sound level A transmitted from the indoor noise LA2(T) is:

LＡ２（T）＝LＡ１（T）－（TL＋6）

TL is the sound insulation factor of the enclosing construction and the experiential formula is:

TL＝18ｌｇｍ＋8 （ｍ＞100ｋｇ／ｍ２）

＝13.5ｌｇｍ＋13 （ｍ＜100ｋｇ／ｍ２）

The sound power level LWA of the outdoor equivalent sound source is converted from outdoor sound level and acoustic permeability area:

LＷＡ＝LＡ２（T）＋10ｌｇS

Wherein: S is the acoustic permeability area. The following will calculate again based on the formula of outdoor point source. （3） the gross sound level at forecasting point

Supposing the sound level at forecasting point j affected by sound

source i is LＡｊｉ, and the gross sound level affected at forecasting

point j is L Ａｊ:

０．１ＬＡｊｉ LＡｊ＝10ｌｇ（∑10 ）

Herein the LＡｊｉ includes background noise too. （4） other factors of acoustic attenuation Attenuation caused by sound barrier

Aｂａｒ＝10ｌｇ（3＋20N） N＝2δ／λ δ＝SO＋OP— SP is the acoustic path difference（see the drawing）

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λ is the wave length of sound wave. 0

S Ｐ

Schematic drawing The sound attenuation caused by air absorption is:

Aａｔｍ＝ａ（ｒ－ｒ０）／100

Using the above mentioned forecasting mode to forecast and calculate the ambient noise during day and night.

9.3.3 Forecasting result and analysis

The assessment of NISCO ambient noise only focuses on the forecast of environment outside plant boundary. Some representative datum points at plant boundary and sensitive ambient are selected for calculation. Based on the calculation result and analysis of noise at plant boundary and ambient after the completion of proposed project construction, the current noise monitoring points are still in use so as to make a comparison with current noise environment. According to the equipment noise sources newly added in the proposed project, firstly calculate the affected sound level at each noise monitoring point, and then superpose the sound level with ambient background noise (average of sound level measured in two days), and finally get forecasting sound level at each monitoring point. Table 9-17 shows the forecasting result of ambient noise outside plant boundary.

Table 9-17 The forecasting result of ambient noise outside plant boundary dB(A)

Day Night Location of Higher Higher Causes of No. monitoring than Out of the than Out of the sound level Forecasted Forecasted points curren range of curren range of increase sound level sound level t standard t standard status status 100 meters east of elevated 1 61.8 0.2 - 53.9 1.4 - Huaneng railway power plant

North of new Blast furnace 2 62.5 1.0 - 58.2 3.4 3.2 pant and railway

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East of new 3 57.3 0.6 - 53.0 1.8 - coking plant

East of new 4 55.2 0.3 - 50.0 1.5 - coking plant

Southeast of new plant 5 58.8 0 - 48.2 0 - - boundary outside

Southwest of new plant 6 52.9 0 - 48.9 0 - - boundary outside

West of new 7 50.9 1.1 - 50.0 1.6 - Railway coking plant

Northwest of 8 new coking 53.1 5.8 - 53.0 6.1 - Thermoelectric plant ity facility, sintering Joint area of machine 9 new and old 61.9 2.1 - 58.2 13.7 3.2 plants

Railway, Southeast of converter and 10 wide plate/coil 60.3 2.2 - 57.0 5.7 2.0 casting plant machine

Entrance of old 11 49.2 0 - 50.0 0 - - coking plant

12 Mazhuang 52.6 0 - 47.1 0 - -

West of old 13 59.2 0 - 56.7 0 1.7 - coking plant

14 Wujiawan 56.0 0 - 52.9 0 - -

Southwest of 15 wide plate/coil 62.6 3.1 - 62.3 6.1 7.3 plant Cutting and finish line west of wide 16 62.4 2.9 - 62.2 3.3 7.2 plate/coil plant

Northwest of 17 wide plate/coil 59.6 0 - 54.7 0.2 - plant

West of plate 18 mill office 57.6 0.5 - 45.3 0.2 - building

West boundary 19 of NISCO 58.0 0.4 - 54.0 0.6 - middle school

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West boundary 20 of NISCO 53.2 0 - 52.6 0 - - hospital

NISCO village 21 56.0 0 - 53.4 0 - - 6

NISCO village 22 60.7 0 - 54.1 0 - - five

North of 23 NISCO steel 59.5 0 - 43.5 0 - - making plant

North of 24 0 - 0 - - sintering plant 58.7 48.9

NISCO scrap 25 0 - 0 - - yard 60.7 52.5

North of 26 NISCO stock 60.1 0 - 54.1 0 - - yard

Average 57.7 0.8 0.0 52.9 1.8 0.9

As can see from the result of calculation and forecasting of ambient noise in Table 9-17, the ambient noise level outside NISCO plant boundary will be much improved after the startup of proposed project, of which the sound level forecasted in daytime is within 49.2-62.6dB (A), averagely increased by 0.8dB (A) than the current, and in night is 43.5-62.3dB (A), averaged increased by 0.9dB (A). Among the 26 measuring points, the sound level at 12 measuring points both in daytime and night are increased certainly, which mainly distribute outside new plant boundary. As can see from the analysis of noise source at each measuring point where noise increasees, the main reason of the increase of ambient noise and noise at plant boundary is from noise sources of the production of blast furnace, converter, thermo-eletric plant, Wide plate/coil plant, and linear railway noise. Based on the criterion of plant boundary noise and ambient noise in the region of category III, all the measuring points are within the limit in daytime, however six measuring points are out the range of criterion in night, respectively accounting for 0% and 23% of measuring points, and the sound level in night is also out the range of ambient noise in region of category III by 0.9dB (A). The measuring points with maximum noise among all of the measuring points are locating at the west of Wide Plate/Coil plant and Northwest of company, which have the noise over limit by 3.1, 7.3 dB (A) and 2.9, 7.2 dB (A) for the daytime and night respectively, but the location of those two points are surrounding with hills, it is certain that the ambient noise outside hills is within the criterion. In addition, the amount of sound level over limit in night at plant boundary is very low, which could be controlled within

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the criterion if proper methods of sound insulation and dumping are adopted. Details of noise control method refer to the chapter of pollution preventing and control methods. Considering the sound level forecasting at six sensitive ambient objectives, all the measuring points are keeping at the original level apart from NISCO middle school where the sound level in daytme and night is higher than the current, the increase of sound level at NISCO middle school is mainly caused by the noise from Oxygen Making Station. The noise at six sensitive objectives in daytime and night can reach the criterion for the region of category III, of which the ambient noise at residential area of Mazhuang and Wangjiawan is much less than the criterion of the region of category III.

9.4 Analysis of environment effect by solid waste 9.4.1 Generation of solid waste and toxicity analysis

A certain amount of solid waste generates in the proposed project in terms of both variety and amount, the classification work is performed in each production unit, which mainly generated in five positions: 1) dust separated by each dedusting system in the process of sintering production, yearly producing 16.8 ×104 tons; 2) tar residue produced in the process of coking production at condensation & up draught section of gas purification system; residue of oil washing produced at benzene distillation section; excess sludge produced at waste water treatment station; dust reclaimed at dedusting system; yearly producing 113×104t, 10×104t, 710×104t and 230×104t respectively; 3) the amount of water slag produced in blast furnace production, gas ash produced at the gravity dust collector of crude gas system, gas sludge cake produced at gas washing & water treating system, and dust/fume separated at each dusting system is 119.5×104t/a, 7.0×104t/a, 3.0×104t/a and 3.0t/a respectively; 4) the solid waste produced at the sub project, No.2 120 Mt converter and 2500mm slab casting machine, mainly composes of converter slag, hot metal mixer slag and desulphurizing slag, converter sludge, deposed refractory, casting residual slag, slab crops, yearly producing 245500 t, 14000 t, 25000 t, 28000 t, 16300 t and 51000 t respectively; 5) the slide waste produced in the sub project, 3500mm Steckel mill finish line, mainly include plate crops, yearly producing 34000t/a. Details of solid waste produced in the proposed project refer to Table 4-40. In comparison with National Hazardous Waste Directory, all those solid wastes such as tar residue, reclaimed raffinate, bitumen residue, belong to hazardous waste, aparting from the others.

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9.4.2 Measures of solid waste deposition

NISCO properly deposes the solid waste produced within the company, e.g. dust separated at sintering machine with a high Ferro content is entirely reclaimed for the use of sintering material; tar residue, oil washing residue, remaining sludge and dust produced at coking plant are reclaimed of their heat energy for the use of coal mixing fuel due to their high calorific value, such as the calorific value of organic residue is around 8000Kal/kg and that of tar is around 5000Kal/kg; blast furnace water slag is a kind of raw material of high grade cement, dry residue could be used for construction material after the treatment, gas dust and dust could be conveyed to sintering plant as material; slag, desulphurizing slag, deposed refractory and slab crops could be separately return to converter for reutilization or for the use of construction material after scrap reclaim, of which refractory is directly reclaimed for construction material, plate crops produced at mill finish line is entirely reclaimed for converter. Details of solid waste deposition in proposed project refer to table 4-31. Owing to the measures of comprehensive utilization implemented, zero discharge of solid waste has come true at NISCO, which not only makes the best use of resources and obtains certain economic benefit, but also avoids the effect of solid waste on environment, especially effect of hazardous waste on environment.

9.4.3 Analysis of effect of solid waste on environment

Owing to the classifying reutilization of solid waste produced at NISCO proposed project, the reutilization, decrease and innocent treatment of solid waste has been carried out to a maximum, zero discharge of solid waste from production has finally come true, which has radically eliminated the effect of solid waste on environment.

10 Analysis of Gross Control for pollutants discharge

10.1 The purpose of gross control

the purpose of carrying out gross control is to require enterprise to advance the pollution abatement and technical update of existing projects by means of implementing renovations, carry out the principle of bring along old plants with new projects, decrease the current discharge at pollution source, so that the discharge of whole company can be controlled within the index of gross control approved by environmental protection department, and achieve an organic integration of economic benefit, environmental benefit and social benefit.

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At present, the target of gross control is executed based on regional pollutants discharge in China, i.e. the discharge of a region within a certain period can not break through the distributive amount of pollutant discharge.

10.2 The principle of determining gross control factors 10.2.1 The principle of determining gross control factors According to the requirements of Gross Control Plan of Main Pollutants Discharge of Jiangsu Province in Nine-Five Period (documentary of Jiangsu Environmental Plan (1997) 51), and combining with the character of discharge from technical renovation project, the gross control factors determine as:

(1) exhaust gas: SO2, fume & dust； (2) waste water: CODcr、SS； (3) solid waste: discharge of solid waste.

10.2.2 NISCO plan of minifying the gross discharge

In the period of Eleven–five, NISCO proposes to technically update partial facilities in old plants and eliminate existing poor facilities, in this way, not only the environmental protection work in the company will be visibly improved, but also the gross discharge will be minified. NISCO plan of minifying gross of discharge refers to Table 10-1

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Table 10-1 NISCO plan of bringing along old plants with new projects and elimination

Investment Finish Pollutants minifying 4 time （t/a） （×10 ,RMB） No Description Fume and SO 2 dust

1 dust suppression at stock yard 130 2004．12 270

Fume treatment at casthouses 2400 2 of 1-4# blast furnace in iron 2005．10 3382 making plant

Dust treatment at 1-3# blast 3 furnace bunker in iron making 1150 2004．12 1116 plant 1400 Treatment of the fume of 4 converter secondary in 2005．5 790 steeling making plant 1380 Treatment of the fume of hot 5 metal mixer in steel making 2005．10 394 plant

Coking oven gas dedusting 1000 6 and desulphurization facilities 2005．12 138.22 - update

Limitation of production of two 7 2007．12 327.84 121.98 32m2 sintering machine

Eliminatin Two 39m2 g the sintering 2007．12 1470 687.48 existing machines poor equipment Sheet mill 2005．12 35.68 1.44 8 s which cause Light section mill 2005．12 8.9 0.1 serious pollution A 30 ton First half of 2.6 converter 2006

Subtotal 7460 1980.64 6210.13

10000 SS COD Update of industrial circulating 9 2007．12 reduced reduced water treatment by 2258.7 by 1029.7

Total 17460

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10.2.3 Doctrine of determining the index of discharge The index of discharge will be checked and ratified in accordance with the advanced level among craft brothers or the level of pollutant treatment by means of the best applied technology.

10.3 The change of gross discharge after the implementation of technical updating & matching project After the implementation of the technical updating & matching project, the change of gross discharge refers to Table 10-2.

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Table 10-2 The change of gross discharge after the implementation of technical updating & matching project (t/a)

Newly Minifying added amount after Discharge Actual NISCO Current discharge implementation after increase index of Pollutants discharge after of bringing old technical or gross technical plants with update decrease discharge update new projects

Fume & 10606.51 5104.4 6210.13 8945.31 -1661.2 9015.08 dust

SO2 5476.48 6415.04 1980.64 9910.88 +4434.4 7638.4

CODcr 2252.75 36.2 1065.9 1223.05 -1029.7 2230

SS 4938.78 79.4 2338.1 2680.08 -2258.7 9055.2

Solid 0 0 — 0 0 0 waste

10.4 Analyses of gross control and balancing scheme

As shown in table 10-2, by means of a series of solutions of bringing along old plants with new projects at NISCO, the pollutants discharge, such as COD, SS, fume & dust will be relatively reduced and less than current level after the implementation of the technical renovation, the discharge of COD, SS, fume & dust will be controlled within the index of gross amount approved by the environmental protection department for our company. The discharge of SO2 is beyond the index of gross amount of our company, with regards to the amount out the range of standards, on one hand, the company will try to tap the potentials, complete the solutions of bringing along old plants with new projects on schedule to minify SO2 discharge, on the other hand, the company will actively coordinate with municipal government and environmental protection bureau, the gross balancing index of SO2 is 2272.48t/a.

11 Analysis of accidental environment risk

11.1 Factor of project risk

The chapter mainly analyzes the explosion, fire, poisoning, and other risky accidents with terrible result, personal injury, and property loss

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for nature or manmade reasons during the process of project implementation. The risky factors summaries as follows: 1) Nature risky factors in construction area, such as earthquake, thunder, rainstorm, flood, and etc. 2) Main risky factors in the process of production, such as explosion, fire, and incontrollable leakage of transportation system. 11.2 Assessment of environment risk

The major biggest, most typical and aptest potential and risky accident substance of the project is fuel gas, including blast furnace gas, converter gas and coking oven gas. The flammable points of those gases are similar, causes and probabilities of causing possible accident are similar, of which the explosion limit of blast furnace is highest, the one of converter gas is much higher, both blast furnace gas and converter gas belongs to class b fire peril, and the explosion limit of coking oven gas is lowest, which belongs to class a fire peril. The burning velocity of blast furnace gas is slow, with long flame and more poisonous than coking oven gas, flammable and detonable if mixing with air. The converter gas is quite poisonous due to a high CO content, with high hazardness, highly flammable if mixing with air, detonable if lowest initiation energy is beyond explosion threshold, and likely to fire at the same time. The coking oven gas exists with high H2content, low gravity, poor flame inflexibility, aptness of floating, low radiation, low poisonousness due to low CO content, low accident, weak and relatively low hazardness although capable of diffuse without limit. It will cause toxicosis or health hazard if the gas leakage comes up to toxic concentration or beyond hygienic standard, the toxicity index and standard limit of CO refers to table 11-1, the amount of leakage which make the mixing gas reach lower explosive limit (less than upper limit) will cause explosion, it will cause fire hazard if there is a fire source or the temperature gets up to burning point. The gas explosive limit and safety data at 20℃ and 760mm mercury column refers to table 11-2.

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Table 11-1 The toxicity index and standard limit of CO in air

CO concentration in air and COHb saturation in Standards limit and 3 ≤mg/m blood recommendation

CO concentration in Time of COHb Ambient Air Daily average 4 Reaction air half (%) at Quality Standard of human absorptio equilibriu (GB3095-1996 body 3 n (min) m state Grade B) Hourly Ppm mg/m 10 average

Allowed time mild Workplace weighing 50 26.8 150 7 d 20 headache adverse n average a l

factor e concentration l

professional b a t contact - Allowed n

Moderate limits o concentration 100 53.6 120 12 N 30 headache GBZ2-2002 for short time contact

Serious 250 134.1 100 25 8h 10 headache The Workbook of Atmospheric Queasines Environment 500 268.1 90 45 s, vomit, 1h 30 Standard collapse recommends the exposure limits of exanimatio 1000 536.2 60 60 CO in air at 0.5h 60 n reference value 1000 2% COHb (time: 5362.1 5 90 Death 0.25h 100 0 h; concentration: mg/m3) Quoted from Environmental Hygiene (mainly edited by Shanghai No.1 hospital, the people’smedical publishing house, 1983)

Table 11-2 Table of gas safety parameters

CO H2 BF gas Converter Coke oven gas gas

Explosion limits（%） 12.5-74 4-75.6 30-75 12-65 4-40

Explosion limits（g/m3） 3.3 3.3-64 — — —

spontaneous ignition 605 400-560 ≈600 550-630 ≈560 temperature

Max. explosion pressure 7.3 7.46 ≈6 ≈7 ≈7

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11.3 Blast furnace gas and accident risk forecast 11.3.1 Riddling of leakage source

The biggest influence quantity of the project is the possible leakage at gas cabinet with most serious aftereffect and highest risk reliability, secondly is transferring pipe. In case of pressure increase in cabinet, failure at emission or inlet/outlet valves, failure of water level alarming signal at water seal, defaults in manufacture, erection and construction, and operation can cause dilapidation at cabinet, and pipe can be broken for reasons of welding and corrosion, which will cause gas leakage. The basic accidental causes and probability of blast furnace gas leakage refer to table 11-3, and probability of combustion for reason of leakage refers to table 11-4.

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Table 11-3 The cause and probability of basic cases of blast Furnace gas leakage Time Time Case description probability Case description probability Pi(time/year)） Pi(time/year)） Gas transportation pipe -5 -7 5×10 Sealed cover crack 1×10 fault Power plant ignition and -8 -7 2×10 Welding fault 1×10 combustion room fault Interface, orifice -5 -7 ammonia-seal, water seal 1×10 Pipe corrosion cracking 5×10 failure Safety valve fault (shell 1×10-5 Valve fault (shell crack, 1×10-5 crack, cover crack, block) cover crack, block) -7 -5 Internal explosion cracking 1×10 Leaking from connector 4×10 -7 -4 Weld connecting crack 1×10 Bumping sparkle 1×10 Bleeding, inlet outlet valve Lightning sparkle -5 -7 fault (shell crack, cover 4×10 (lightning strike, arrester 1×10 crack, block) failure) Water level alarm, water 1×10-7 Electric spark (explosion 1×10-7 seal failure prevention device failure) Misoperation 2×10-5

Table 11-4 Blast furnace gas leakage burning accident probability Accident position Probability Pi（time/year） gas transportation pipe fault 1.6×10-7

11.3.2 Forecasting result and analysis for accident impact The simulated calculation for gas pipe leakage accident impact is made under variable degrees of atmosphere stability and by taking the adverse meteorological condition, U=1.0m/s. Table 11-5 shows the maximum ground concentration and appearing distance in different times from accident happens.

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Table 11-5 Maximum ground concentration and appearing distance in different times from accident happens Stability Item Time from accident happens 10 20 30 40 50 60 Appearing 8.9 688.4 1320.8 1900.5 2390.0 2812.3 distance(m) A-B Ground 289.8 0.06 0.017 0.005 0.002 0.001 concentration(m3/s) Appearing 18.2 612.5 1100.8 1800.3 2384.4 2932.1 distance(m) C Ground 210.3 0.51 0.15 0.04 0.03 0.01 concentration(m3/s) Appearing 53.0 650.3 1200 1800.8 2382.1 2856.5 distance(m) D Ground 168.5 1.08 0.21 0.06 0.04 0.02 concentration(m3/s) Appearing distance(m) 340.1 623.2 1320.4 1723.6 2356.7 2535.8 E Ground 1.80 1.73 0.44 0.18 0.07 0.03 concentration(m3/s) Appearing 400.5 685.6 1500.4 2000.8 2300.1 2636.5 distance(m) F Ground 0.68 1.44 0.52 0.21 0.10 0.04 concentration(m3/s)

When the leakage with big amount happens in the gas pipe, the max leaking amount of CO is smaller than 145g/m3 of the lower limit for CO explosion, therefore the accident of explosion will not happen and the fire will not be caused by self-ignition neither. Accident of CO poisoning will mostly occur. The emission amount from the accident of gas pipe leakage with big amount is smaller than the one from gas tank leakage, but the height of leaking source is lower, so it has a big influence on the items on the ground and will make human faint in the place within 5 meter’s downwind distance under the condition of strong unstable weather.

11.3.3 Risk strategy and emergency measures The design, construction and erection shall be carried out under a scientific, reasonable and quality-guaranteeing way. The relevant safety regulations, standards and norms shall be strictly followed and the management shall also be strengthened. Meanwhile, the supervision and operator quality shall be promoted so as to make the qualified design, construction and erection. Prevention measures aim to guarantee the safety of system operation and reduce the accidents as well as decrease the probability of accidents happen. Making emergency plan intends to have a high

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ability to deal with the accident when it happens so as to avoid the spread of accident, control the dangerous source, rescue the victims, guide the protection and evacuation, organize the rescue work and reduce the influence.

11.3.3.1 Risk Strategy (1) Prepare the equipments and devices for the emergency 1) Build a volunteer fire-fighting team and organization system according to the national fire code requirement. Perform the fire-fighting training, use and maintain the fire-fighting devices and tools. Be sure that the fire suppression shall be made at the beginning without any delay, accident spread and missing the good opportunity for putting out a fire. 2) The fire-fighting devices shall be equipped in accordance with the stipulations in the fire code: devices and tools for putting out and preventing a fire, passage, weir and equipments. 3) Equipped with the productive hygiene facilities (e.g. industrial illumination, industrial ventilation, antivibration, noise elimination, explosion protection and gas defence etc.) as well as the personal protective articles. (2) Organize the emergency measures for site management Organize and formulate the management system and technical measures for preventing the disastrous accidents in the project, determine the requirements for the emergency handling. Organize the training of emergency rescue team for the disastrous accidents in the company. Prepare the necessary guards and rescuing devices and equipments. Establish the site supervision mechanism and the relevant system for handling the project emergency case and define the responsibility clearly, ensure the command can be given to the designated position easily and communicate is good so the report and contact are available in time. The material department shall make sure to meet the requirements of self-help. (3) Organize the site supervision measures In order to avoid the accidents effectively, the site accidents supervision system and facilities shall be established so the accident situation can be found in time and the spread trend can be predicted. The hygiene supervision system shall be built in advance so as to conduct the monitoring, instruction and personnel rescue. The supervision system consists of the accident alarm system for the regular equipment operation, the movable or portable monitoring devices used on accident site, the analysis and inspection devices and the relevant rescuing material or medicines. The respect to training, management and quality improvement shall be paid. (4) Organize the plan and the measures for tackling problems arisen from accidents on site The Plan includes the accidents site cleaning, production recovery, pollution inspection and medical treatment for the people who deal with the accidents, the timely treatment for injured people and other

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relevant matters. Meanwhile, the further safety inspection on the accident site shall be performed so as to avoid the dispersal of pollution and further accident happens. Then analyze the accidents cause, learn the lesson, find the improving measures and submit the report to the relevant department. (5) Work out a social rescue plan in advance A social rescue plan shall be worked out according to the stipulated format to reach the requirements when the emergency cases happen. It helps to maintain the social order, control the pollution, mitigate the damage, offer the medical treatments to injured people, assist the monitoring and protect the public health etc.

11.3.3.2 Emergency plan Once the accident happens, the emergency measures shall be adopted according to the actual situation. Firstly, the leaking and fire sources shall be shut off and blocked up, then fan will be started and an alarm will be given, the spared equipment, devices and medicine for gas defense, explosion and fire protection shall be put into use to control the spread. The person who is not involved in the accident shall be evacuated to the windward side and kept far away from the site. ‘Three-prevention’personnel should come to site immediately, supervise and organize the self-save on site, isolate the pollution area from others, control the hazardous source and site, prevent the accident spread, avoid the leaking matter enters into environment. A proper and prompt alarm as well as a report shall be given. The emergency rescue shall be asked according to actual situation. The site supervision department shall give the general commands. If necessary, the social rescue centre shall be asked for dispatching their personnel to participate in the rescue.

11.4 Conclusion The main dangerous materials are blast furnace gas and coke oven gas, the main risk is poisoning, explosion and fire attributable to gas leaking. The maximum creditable accident risk value is 4×10-5/year, which is lower than the trade risk statistic value of 8.3×l0-5/year, it shows that the maximum creditable accident risk of this project is acceptable.

12 The environmental impact analysis for dock basin engineering

12.1 Project situation 12.1.1 Project name and status Project name: Stone river dock basin engineering in Nanjing Iron &

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Steel Untied Co., Ltd. Project condition: newly-built Trade category: transportation, storage and water transportation trade in posts, telecommunications and communications trade. (Trade code: 07550)

12.1.2 Construction place, scope and contents Construction place: Stone river dock basin engineering in Nanjing Iron & Steel Untied Co., Ltd. Locates in the interjunction of newly-excavated Stone River and the Yangtze River, where is 17km away from Nanjing Xiaguan Station. The length of dock basin is about 400m and the width is 170m, the left standard bank of left branch of the Yangtze River Baguazhou in the Stone River entrance section revamping engineering is connected in the south and north side and the Stone River standard bank engineering is connected in the west side. Construction scope: 6*2000t-class main berths and 3*300t-500t class auxiliary berths are set in the Stone river excavation-type dock basin engineering in Nanjing Iron & Steel Untied Co., Ltd. The annual throughput of three berths in the north of dock basin is 3-3.2 million tons, where is the general cargo wharf for finished iron & steel products. Engineering contents: The main parts of NISCO dock basin engineering are dock basin wharf engineering, dock basin access channel engineering and connection engineering around dock basin (connect to the Stone River, River bank and draining open ditch behind the bank etc.). The auxiliary parts include 11.4*104m2 stockyard, 1000 m2 accessory room for production, offices, resting place, canteen, bathroom, 300 m2 transformer station.

12.1.3 Goods type The goods in the proposed dock are the finished products in Nanjing Iron & Steel United Co. Ltd. The details refer to table 12-1.

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Table 12-1 The throughput of the wharf Freight amount Goods No Loading place Unloading Place Remark Name 104t/a Finished products Water 1 scrap 66.20 wharf transportation Finished products Finished products Water 2 Plate storage area in 60.00 wharf transportation Plate Plant Finished products Finished products Water 3 Bar storage area in Bar 20.00 wharf transportation Plant Finished products storage area in Medium Finished products Water 4 Medium Section 10.00 section wharf transportation Plant

Finished products Small storage area in Finished products Water 5 5.00 section Small Section Plant wharf transportation

Finished products Finished products Water 6 Strip storage area in 17.00 wharf transportation Strip Plant Finished products Wire Finished products Water 7 storage area in 22.00 rod wharf transportation Wire Rod Plant Finished products Coiled storage area in Finished products Water 8 100.00 plate Wide Plate/Coil wharf transportation Plant Total 300.20

According to the relevant National regulations, the transportation and loading & unloading activities for the “dangerous goods”are prohibited in this wharf. The so-called “dangerous goods”are those that have been listed in GB 12268 ‘Dangerous goods list’and ‘International Dangerous Goods Transportation Rule’ made by International Maritime Affairs Organization, with the characters of explosion, flammability, poison, corrosion, radioactivity etc and will cause personal injury and property damage easily during the water transportation, loading and unloading in the port and the storage period, therefore a special protection shall be provided for those goods.

12.1.4 Design for ship form The sizes of the ship form below are selected according to the ship form datum provided by the owner. Main berth: 2000t-class General cargo ship, sea boat, total length×molded

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breadth×molded depth×load draught = 75×12×6.8×5.2m 2000t integrated barge, river boat, total length×molded breadth×load draught = 85×10.6×2.9m Auxiliary berth: 300t-class river boat, total length×molded depth×load draught = 35×9.2×1.3m 500t-class river boat, total length×molded depth×load draught = 45×10.8×1.6m

12.1.5 Operator arrangement and available working days Three-shift system is adopted in the wharf. 880 workers mainly include shipmen, machine operators and dockers etc. The effective working time is 330 days per year, 24 hours per day, and 7920 hours in total.

12.1.6 Construction period The construction period for the proposed project is about 6 months.

12.2 Loading and unloading situation 12.2.1 Loading and unloading process According to the specification and quantity of the finished rolled steel products, the loading and unloading scheme of transporting to wharf directly is selected. The finished rolled steel products are transported to the waterfront of wharf by train in the plant, and lifted to load on board. The process is shown as follows:

train Plant wharf lift and load on board lift and load on board

Extra goods put in the warehouse

12.2.2 Loading and unloading equipment The main loading and unloading equipments refer to Table 12-2.

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Table 12-2 The main loading & unloading equipment in the proposed project No Equipment name Spec. Quantity Remark 1 Gantry crane 10t 2 2 Gantry crane 16t 2 3 Truck 20t 2 4 Rolling car 10t～20t 2 5 Rolling car 3t 2 6 Autocrane 150t 1 7 Fixed crane 5t 1

12.3 General layout 12.3.1 The basic principle for the general layout of Stone River dock basin The main function of NISCO Stone River dock basin engineering is to transport the finished products in New Iron-making plant, such as plate, coil and so on. Based on the throughput requirement, 6*2000t-class (both internal rivers and sea boat are taken into account) main berths and 3*300-500t class auxiliary berths are arranged. The general layout is made following the principle below: (1) The waterfront shall be utilized reasonably to meet the stipulation and requirement from the relevant department. (2) According to the dock basin development and control requirements for the water and land area in the general planning of NISCO Iron-making plant, the problems of loading & unloading and the connection between dock basin and the high road & railroad shall be solved reasonably. (3) In accordance with the National relevant criterion, regulation and requirement on environmental protection, the interference between each berths, the impact on ambient environment and the pollution shall be reduced as possible as they can. 12.3.2 General layout Based on the general layout of NISCO New Iron-making plant, the upstream and downstream of the dock basin entrance are connected to the standard bank of the Yangtze River. The upstream of the dock basin is connected to the Stone River, and the downstream (entrance) access channel is connected to the BaguaZhou left branch of the Yangtze River. The length of dock basin south side is 401.78m, the north side is 378.108m and the width is 170m. 12.3.3 Water area layout (1) Entrance Channel and swinging area The layout of dock basin is not in conformity with the direction

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concluded by hydraulic model experiment. The dock basin entrance is deflected to the upstream with 8 degree, so the silt amount will be increased. In order to remedy the unreasonable layout for the dock basin and reduce the silt amount, the access channel in the entrance is turned to the downstream. The angle between the access channel of dock basin and the center line of dock basin is 29 degree with the deflection to the downstream so as to reduce the silt amount. The length of access channel is about 840m, and the shipping waterway of 2000t-class single barging and double channel is adopted. The bottom width of waterway is 70m, the side slope is 1:5, and the bottom altitude is -4.00m. The shipping gyration radius is calculated as 2.5L=2.5×85=212.5m. (2) Anchor ground The sufficient water depth and area shall be guaranteed for the anchor ground and it shall also be kept away from the shipping waterway. This anchor ground is set in the place where 1.5km away from the downstream of dock basin entrance. Three anchor grounds are set with the length of 600m and the width of 75m. Its altitude is lower than -4.0m. (3) Front edge of the dock basin wharf The finished rolled steel products wharf in the north of the dock basin: the rail gantry crane is installed on the dock basin floor and two trains can be passed under the crane. The load of the train is 100t and the deadweight is 31t, 2 of 16t and 2 of 10t rail gantry cranes are equipped to fulfill the loading of 45t coiled plates. An auxiliary berth with the capacity of 300-500t is set nearby the entrance, and 5t fixed crane is installed. ① The mud altitude of the dock basin wharf Mud altitude: According to the information of ship form preliminarily selected, the maximum load draught depth is 5.2m, and the redundant depth is 0.5m. Based on the minimum navigable water level of 1.72m, the designed water depth for the front edge of wharf is 5.70m and the mud altitude of the dock basin is determined as -4.0m. ② The floor altitude of the dock basin The floor altitude of the dock basin is 10.50m, which is equal to the altitude of the built-up land in new plant area. It contributes to the vertical arrangement for the transportation engineering. A 1m wave protection wall is set behind the wharf to meet the flood control requirements. ③ Berth arrangement in dock basin wharf 6 main berths with 2000t for each are arranged in the proposed project and 3 berths for each side of the dock basin. The two 300-500t auxiliary berths can be arranged for other two sides respectively and a 300-500t auxiliary berth is set on the south side of the dock basin upstream, therefore, 3 auxiliary berths are arranged totally. The berth length is calculated based on the river

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boat length. The length of main berth Lb : 3 berths are arranged and the total width is 2×104.1+97.8=305.8m; the length of auxiliary berth Lb : the total dock basin length = 305.8+55.13=361m, the total water front: the north side is 378.10m, the south side is 401.76m; the width of dock basin: 170m is taken. 12.3.4 Layout for Land area The railroad in new plant area has been generally arranged and designed by Chongqing Iron and Steel Design Institute. The original railroad shall be moved to the west, so one railroad line will go into the north side of the dock basin and the other will go into the south wharf of the dock basin, otherwise, the railroad in the port area can not be connected to those to be built in the plant area even the arc with the minimum curvature radius of 120m will be designed as the railroad route. The concrete pavement with the thickness of 220 is designed as the back approaching of the landway wharf. In order to link up the two banks in the port, besides the railroad bridge, one road bridge with the length of 70m and the clear width of 12.5+2×3.0m will also be built above the Stone River. 12.3.5 Connection between dock basin and ambient buildings The main connection engineering include the engineering for connecting the upstream of the dock basin to the Stone River channel embankment, the engineering for connecting the entrance of the dock basin to the Yangtze River standard bank engineering in the upstream and downstream, the connection engineering for the dock basin north bank wharf and the draining open ditch etc. The connection engineering for the upstream of the dock basin and the Stone River channel embankment: connect to the dock basin by using two sections of water drop. The engineering for connecting the entrance of the dock basin to the Yangtze River standard bank engineering in the upstream and downstream: using the breast board, connecting to the Yangtze River along the dock basin and the access channel, and then connecting to the Yangtze River at 50m out of the main river bank. The access channel is connected to the left branch of Baguazhou with a bell-mouthed connection shape. The connection engineering for the dock basin north bank wharf and the draining open ditch: using a concrete box culvert of 23.5m long reinforcing bar for connection, the clear width ×the clear height = 4.0×3.0m, the entrance is controlled by a cast iron gate with the size of 4.0×3.0m.

12.4 Construction scheme 12.4.1 Construction methods The main job is made mechanically and the manual work is assistance. The construction sequence: construction for diversion firstly, then

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building and the excavation in the end. The civil work shall be made prior to the electromechanical installation and the major parts shall be made prior to the minor parts. 12.4.2 Construction for diversion Since the river bank has been constructed, the area behind the bank was built-up and the Stone River has also been leveled up, the excavation for the dock basin shall be divided into the above water section and the underwater section. 12.4.3 Construction process and methods for dock basin engineering Staking out in survey→ dust-checking line→ stripping→ making the continuous wall in the front edge of the wharf (or piling sheathing)→ filling behind the wall→ making the deep layer stirring pile and the concrete-pouring grouser→ anchoring engineering→ heightening the continuous wall (or sheet pile wall)→ water supply and sewage pipeline engineering→ reclaiming the road foundation earthworks behind the wall→ road surface engineering→ equipment installation engineering→ hoisting machinery installation engineering→ dock basin excavation engineering Except for the sheet pile engineering, the conventional construction methods can be used for this project. Due to the powdery sand soil layer under the foundation and the structure of silt and the muddy soil mixed with silty clay in the upper 20m place, the construction for piling the sheet is difficult. 12.4.4 Construction for the connection engineering The conventional hydraulic engineering construction way is utilized for the connection engineer, and the integration with the dock basin shall be paid attention to. The construction procedure: staking out in survey→ dust-checking line→ stripping→ placing the underlay→ rod placement, putting the high module→ concreting (or laying block stone) → maintenance→ backfill→ installation 12.4.5 Dock basin excavation The dock basin excavation shall be started at the late stage of the engineering. Division ditch can be firstly excavated at the middle stage, and then the width of the ditch can be enlarged to both sides. Since a deep excavation will be conducted, the above water section and the underwater section shall be separated according to the water level of the Yangtze River in the construction period. The excavation under the water will be carried out by dredger along the access channel from the Yangtze River to the dock basin. 12.5 Cooperative engineering for proposed project 12.5.1 Power supply The total electrical load in the port area is between 746kw-1103.6kw. According to the high requirement for the reliability of power supply for this engineering, the double loop of 10KV power supply is selected

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(35KV can also be used) for the electricity consumption for port area, living, illumination and equipment maintenance etc. 12.5.2 Illumination The illumination of high voltage sodium lamp is provided on the floor of dock basin, and the searchlights are also set in some selected positions. If necessary, the illumination will be put into use. The illuminations of waterproof and dustproof lamps are set in other positions. 12.5.3 Communication The communication in the port area: one telephone station is set for each 3 berths, therefore 2 stations in total in the port area. Meanwhile, the high frequency intercom system is also set. The communication for the Long distance: one dispatching telephone is equipped in the wharf, which connects to the city phones, plant phones and the fire alarm system. 12.5.4 Water supply The water source comes from the tap water network of the plants in the land area. Through galvanized steel pipes, the water will be supplied to the wharf floor. The living water pressure in the ship (P) is not lower than 0.3MPa, and the maximum amount of water supply is 700t per day. 12.5.5 Drainage The discharging pipe is set under the concrete road, the water will be discharged to the open ditch and then to the Yangtze River. 12.5.6 Fire fighting The self prepared water pump, φ19hydraulic giant, DN65 fire hose and portable fire extinguisher is equipped for fire fighting in the wharf. One fire hydrant is prepared for each berth.

12.6 Diagram of water balance for the whole area Fig 12-1 shows the water balance for the whole area after completing the project.

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930 Ship’s oily waste water 129647 Carried away Ship’s 128370 with the water Spare water for ship ship 347 Ship’s Sewage

135822 Consumption 3465 Fresh water 17325 13860 Water for 14567 living in the Wharf

Wastage 40

400 360 S

Oily waste water in e w a

wharf g e t

3 r

Initial rainwater 10m /time e a t m e n t Fig 12-1 Water balance in the wharf（Unit：m3/a）

2.12.7 Analysis on pollution source in the construction period

12.7.1 Waste water (1) The pollution attributable to water flow turbulence in the wharf construction period The short term water turbidity caused by the river accretion deposits produced in the period of wharf construction dredge and cleaning up is the major factor of the inshore water pollution. The generating amount of the suspended matter can be calculated according to the following formula: R Q  W 0 T R 0 Q------The generating amount of the suspended matter in the dredge process (t/h)

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3 W0----- The generating factor of the suspended matter (t/m ) R------Accumulating percentage for the particle diameter of the suspended matter under the condition of the generating factor is equal to the value of W 0 (%) R0-----Accumulating percentage for the critical particle of the suspended matter with the condition of field velocity (%) T------Dredge efficiency (m3/h) The expected amount of mud and sand produced in the construction 3 period will be 2t/h or so, if W0 is taken as 20kg/m , T is taken as 3 25m /h, R is taken as 8% and R0 is taken as 2%. Most of the mud and sand will be deposited in a short distance and entered into the river channel afterwards, and few of them will move horizontally following the water flow. The calculated result refers to table 1-3. (2) Oily waste water discharged by construction machinery and ships The generating amount of the oily waste water from ships in the construction period is 1t/d or so. The oil concentration in the polluted water is about 2000mg/L. According to the relevant regulation, the oil-water separator shall be installed in such vessels, and the waste water shall be treated to reach the National stipulated standard prior to the drainage. The duty of ship’soily waste water recovery and treatment shall be defined to the construction company during the construction bidding period. The terms of reaching the standard by 100% for the oily polluted water in the construction period and the relevant punishment measures shall be clearly defined in the bidding documents. (3) Domestic sewage discharged by the constructors The water consumption for the constructors is calculated as 150L/d and sewage discharging factor is taken as 0.8. If considering 200 persons for the busiest construction time, the domestic sewage amount will be 24m3/d in the construction period, in which the concentration for the major pollutant of COD is 400mg/L or so. The situation of waste water produced in the wharf construction period is shown in Table 12-3.

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Table 12— 3 The situation of waste water produced in wharf construction period Waste Pollutant concentration Pollutant amount (mg/L) (kg/d) Pollution water Treatment caused by amount Petrolic ammonia measures Petrolic ammonia COD SS COD SS （t/d） substance nitrogen substance nitrogen Ship’soily oil-water 1 3000 2000 - -- 3.0 2.0 - - waste water separator Construction Simple domestic 24 400 5-20 200 40 9.6 0.30 4.8 0.96 treatment sewage Water flow turbulence ------16000 - caused by construction

12.7.2 Wastegas The impact on atmospheric environment in the construction period is caused by the dust emission from the ground leveling up, earthworks excavation and filling, building materials transport and loading & unloading, which will increase the concentration of suspended particles in the environmental atmosphere and worsen the pollution in local area. According to the monitoring in the same building site, the dust concentration around the local ground on the construction site reaches to 1.5-30mg/m3. The end gas emitted from the construction equipment such as truck, gasoline or diesel engine of the ships is also a severe pollution source of the waste gas. The major pollutants are SO2, CO and NO2. Generally speaking, the amount of NO2 emitted from diesel engine of ship is 1.66g/KWh, and the SO2 is 2.31g/KWh. The pollutant emission factor of the gasoline or diesel used for normal truck refers to table 12-4. Taking 8t truck as an example, the pollutant emission amount of the normal diesel truck for the construction is shown in Table 12-4.

Table 12-4 Pollutants emission situation of vehicle and vessel for construction Pollutants Pollutants Emission Item emission emission amount for 8t Pollutant amount amount diesel truck (g/l gasoline) (g/l diesel) (g/100km) SO2 0.295 3.24 815.13 CO 169.0 27.0 1340.44 NO2 21.1 44.4 97.82 Hydrocarbon 33.3 4.44 134.04

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12.7.3 Noise The major noise source in construction period is the noise from the construction machinery, vessel or transport vehicle. The attenuation of the construction noise in the air is very quick. The truck and the ship horn with noise peak of 100dB(A) are generated instantly. The noise source of the concrete mixer and the excavator in normal operation is 80-90dB(A). The others major noise equipments are listed in Table 12-5.

Table 12-5 Noise sources intensity of typical construction machinery Source Source intensity Noise source intensity Noise source (dB(A)) (dB(A)) Pile driver 105 Construction craft 85 Mixing machine 90 Bulldozer 92 Electric saw 110 Excavator 79 Crane 80 Loader 80

12.7.4 Solid waste The solid wastes in construction period mainly include the construction wastes and the domestic garbage discarded by the constructors. A daily domestic garbage amount is about 0.2t and most of the construction wastes can be recovered for utilization. The management for solid waste shall be strengthened in accordance with the relevant regulations. Such solid waste shall be collected and treated together. 12.7.5 Impact on ecological environment Firstly, the aquicolous ecological environment in the Yangtze River will be affected. The condition of original water front and the nature of bottom in local area have been changed. In addition, the key factor of affecting the ecological environment in the water area to be appraised is the underwater engineering construction for the hydro-structure of wharf engineering, which will increase the suspended matters in construction water area and have an adverse influence on aquatic organism those live in such water area. Secondly, the construction for wharf and auxiliary facilities on the bank in terms of leveling up, using land and buildings will destroy the land vegetation and affect the land ecology in certain extent. It is a local impact and irreversible. However, the planting measures can make compensation for such ecological loss.

12.8 Analysis on pollution sources in operation period 12.8.1 Pollution source of waste gas and main pollutants (1) Dust emission on driveway

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All the goods for this project are delivered through road transportation. The designed freight amount is 3-3.2 million tons. Based on the loading capacity of the carrier, the amount of road dust emission for the carrying vehicle is defined as follows: Q 0.123(V / 5)(W / 6.8) 0.65 (P / 0.05) 0.72 In which: Q------Amount of dust emission for carrying vehicle, Kg/Km. per vehicle V------Velocity of carrying vehicle, Km/h W------Loading capacity of carrying vehicle, t/each vehicle P------Dust deposition amount on road surface, Kg/m2 8t truck, vehicle flowrate of 200 trucks per day, 2km of the vehicle traveling distance in the port area, 15km/h of the driving speed and 0.1kg/m2 of the dust deposition amount on the road are taken for the calculation. As the result, the dust emission amount on road in port area before and after spraying water are 42.5kg/d and 10.8kg/d respectively. (2) End gas of vehicle For 8t diesel truck, the amounts of pollutants emission per each truck are: CO：815.13g/100km； SO2：97.82g/100km； NO2：1340.44g/100km； hydrocarbon：134.04g/100km Based on the goods throughput, the vehicle flowrate of 200 trucks per day and 2km of the truck traveling distance in the port area, the NO2 emission source intensity of end gas is 185mg/s. (3) Waste gas from vessels in wharf The regular power requirement for vessel berthing in the wharf is maintained by the auxiliary machine running. The pollutants of SO2 and NO2 will be exhausted from emission port when the auxiliary machine is running. About 10g of SO2 and 7.2g of NO2 will be emitted when each 1kg diesel is consumed by the marine diesel engine.

12.8.2 Pollution source of waste water and main pollutants The pollution source of water environment in operation period mainly include the ship’soily polluted water, the domestic sewage from the ships, water for flashing equipment and ground, waste water from machine maintenance in wharf, sewage and initial rain water. The major pollution factors are: petrolic substance in ship’soily polluted water, COD, SS in domestic sewage, ammonia nitrogen, and total phosphorus etc. (1) Initial rainwater Under the weather condition of rainfall, few dusts will be contained in the initial rainwater in wharf storage yard. The initial rainwater amount can be calculated based on the formula of rainstorm intensity in

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Nanjing area, the first 10 minutes and 50 times of average rainfall per year are taken for the calculation, as the result, the maximum initial rainwater amount is 50m3/time. Such waste water will be collected and drained to the waste water disposal station for treatment. (2) Water for flushing equipment and ground The equipments in wharf shall be cleaned and maintained regularly. Therefore a certain amount of flushing waste water will be discharged. The major pollutants are COD, SS and the amount is approx. 300m3/a. The pollutants are discharged discontinuously and drained to waste water disposal station in port area for treatment. (3) Waste water from machine maintenance in wharf According to the comparison and analysis on materials from domestic wharf with similar capacity, the oily polluted water amount is about 360m3/a, such oily polluted water will be collected, separate oil from water and then drained to waste water disposal station in port area for treatment (4) Domestic sewage in wharf There are 880 persons who work in plant. The sewage amount is 21120t/a if the average water consumption per person is 100L/person.d. The main pollution factors are COD, SS, ammonia nitrogen and total phosphorous. The sewage together with the production waste water shall be treated to reach standard before discharging. (5) Oily polluted water from ship According to the statistics from the shipping department, the oily polluted water amount for 2000t-class ship is 0.8t per day. The amount of oily polluted water from ships in wharf is 305m3/a. According to the requirements stipulated in ‘Pollutants Discharging Standard for Ships’ (GB3552-83), the polluted water can only be discharged after being treated by self-prepared oil-water separator and reaching the standard. In order to keep the water quality in wharf water area, the drainage to wharf water area is prohibited. (6) Domestic sewage from the ship Based on the statistics from the shipping department, the average personnel quota for 2000t-class ship is 20 person/time. If the water consumption for each person per day is 190L and the navigation time is 10 days, the domestic sewage from ship for this project is 560t/a. Such sewage can not be discharged to the wharf water area without permission, but a special pipe connected to the wharf is used for discharging, and the sewage will be drained together with the waste water in land area for treatment. The situation for waste water in this project is shown in Table 12-6, and the situation for the pollutants in waste water refers to Table 12-7.

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Table 12-6 The prediction for total waste water amount (t/year) Polluted water for Ship’soily Waste water from Sewage Sewage flushing Item polluted machine maintenance from ship from wharf equipment and water in wharf ground Amount 560 305 21120 360 300

Table 12-7 List for waste water in running period in wharf Pollution Waste Pollutant concentration Pollutant amount Treatment caused by water (mg/L) (t/a) measures amount COD SS ammonia Total Petrolic COD SS ammonia Petrolic Total P nitrogen P substance nitrogen substance Water for Oil flushing separating, equipment 300 2000 500 - - - 0.6 0.15 air floating, and ground biochemical treatment Polluted water from machine 360 1000 100 - - 800 0.36 0.036 0.288 maintenanc e in wharf Sewage in 21120 300 150 40 4 - 6.336 3.168 0.845 0.0845 wharf Sewage 560 300 150 40 4 - 0.168 0.084 0.0224 0.0022 from ship Ship’soily 305 3000 100 - - 2000 0.915 0.031 0.61 waste water Total 22645 - - - - - 8.379 3.469 0.8674 0.0867 0.898 Initial 50 m3/time 1000 500 - - - rainwater

12.8.3 Solid waste The solid wastes in the engineering running period can be divided into two portions, one is the garbage from ships, and the other is the garbage in land area. The garbage from ships is the consumption residues discarded by the workers in ship and the maintenance wastes. The consumption residues mainly include the food debris, trash from cleaning, waste packing bag, bottle and can. According to the existing material, if the number of person on ship is taken as a factor, 1.5kg/manday and 2.0kg/manday are taken for the river steamer and seagoing vessel, the amount of consumption residues will be 6t/year or so. Maintenance wastes mainly are the wastes on deck, discarding rag, paint slag and discarding tools or parts etc. If the amount of maintenance wastes is calculated based the number of ships in port, then 20-50Kg per ship in port can be produced, and the solid waste is about 4.7t/year. The wastes in ship are collected by the garbage collection boat, and sent to the garbage disposal station in port area for treatment. The garbage in land area mainly includes the consumption residues discarded by the workers and the production wastes. The consumption

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residues are the food debris, trash from the cleaning, waste packing bag, bottle and can. If the factor is taken as 1.0kg/manday, the amount of consumption residues will be 260t/year or so. The amount of industrial wastes is related to the goods types, quantity, tightness etc. Based on the analysis for engineering with the similar scale, the industrial wastes amount is about 110t/year. The management for the industrial wastes shall be strengthened to make the amount reduce. If there is no poisonous and harmful substance, the wastes can be sent together with other consumption residues to the municipal garbage disposal station for treatment. In addition, the oily waste after waste water treatment is about 2t/year. The prediction of the solid waste amount is shown in Table 12-8.

Table 12-8 The prediction of the solid waste amount (t/a) Consumption Production Source Total residues wastes Land area 260 110 Ship 6 4.7 382.7 Waste water treatment 2

12.8.4 Noise The noise sources in project running period are the noise from production machinery and the traffic noise from vehicles in port and ship’shorn. According to ‘Technical norm of environmental protection design for engineering in port’(JTJ231-94), the noise source intensity for the various machines operation is about 80dB and the noise source intensity for the ship’sengine can reach to 85-90dB. The impact is not big since the engine is not in operation after the ship moors alongside the wharf. The details refer to Table 12-9.

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Table 12-9 List for noise in wharf No Equipment name Quantity Noise sound level (dB(A)) 1 Crane 9 70-96 2 Traction vehicle 6 70-100 3 Fork-lift truck 4 70-90 4 Loader 2 70-105 5 Rolling car 12 75 6 Ship’sengine - 95-100

12.9 Pollution prevention measures 12.9.1 Prevention measures for water pollution The system of discharging clean water and polluted water in different way is adopted for drainage system in this project. During the running period, the pollution sources in water mainly are oily polluted water, sewage and initial rainwater. The main pollution factors are petrolic substance in oily polluted water, organic substance (COD and BOD) in sewage, SS, total phosphorus, total nitrogen, SS in initial rainwater and so on. The oily polluted water mainly includes those from vehicles in port, mechanical equipment maintenance and ships entering into port. The oil content is not lower than 2000mg/L. The oily polluted water from engine room in vessel is treated through oil-water separator. The oily polluted water from harbor boat and ship without oily polluted water treatment devices will be drained to the receiving boat for environmental protection and discharged after treating to reach the standard. The sewage is discharged from living area, office building, bath, canteen and lavatory, the domestic sewage drained from ships also belongs to such sewage. The production polluted water and the sewage shall be treated to reach the standard prior to drainage. Therefore, a set of waste water treatment facility is built. The processing flow chart refers to Fig 12-2. After the procedure shown in Fig 12-2, the polluted water is treated to reach the requirement stipulated in ‘Standard for waste water general discharging’ (GB8978-1996 first-class discharging standard), and afterwards drained to the outfall of WS-04’’.

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Add agentia sewage, initial rainwater ↓ ↓ Oily waste water→ Oil separator→ air floating pool → conditioning pool→ anoxic pool→ aerobic pool → secondary sedimentation tank → discharging after reaching the standard ↓ ↓ Sludge pump ↑ Sludge moved to outside

Fig 12-2 Waste Water Treatment Flow Chart

According to the requirement of ‘Standard for discharging pollutants from ship’(GB3552-83), the oily polluted water discharged from ship’s engine room shall be drained only after being treated through self-prepared oil-water separator to reach the standard. In order to keep the water quality in port water area, the drainage to port water area is not allowed. The discharging situation for waste water after treatment is shown in Table 12-10.

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Table 12-10 Discharging situation for water pollutants Pollutant discharging Waste Pollutant amount amount Standard Discharging Source of water Treatment Concentrati Concentratio concentration way and waste water amount Amount measures Amount on n limit destination (t/a) (t/a) (t/a) (mg/L) (mg/L) Water for flushing COD:500 , COD:0.6 300 equipment SS:2000 SS:0.15 and ground COD:1000 COD:0.36 Water for SS:100 SS:0.036 machine 360 Petrolic Petrolic maintenance substance:80 substance:0. in wharf 0 288 COD:6.336 COD:300 SS:3.168 SS:150 Ammonia Ammonia Sewage nitrogen: 21120 nitrogen:40 from wharf 0.845 Total Total phosphorus: phosphorus: COD:2.26 4 0.0845 SS:1.59 COD:0.168 COD:100 Ammonia COD:100 COD:300 SS:0.084 SS:70 nitrogen: SS:70 SS:150 Ammonia Oil Ammonia 0.34 Ammonia Sewage Ammonia nitrogen: separating, nitrogen:15 Total 560 nitrogen:15 from ship nitrogen:40 0.0224 Air floating, Total phosphoru WS-04# Total Total Total biochemical phosphorus: s:0.023 phosphorus:1.0 phosphorus:4 phosphorus: treatment 1.0, Petrolic Petrolic 0.0022 Petrolic substance substance:5 COD:3000 COD:0.915 substance:5 : 0.113 SS:100 SS:0.031 Ship’soily 305 Petrolic Petrolic waste water substance:20 substance: 00 0.61 COD:10488 SS:10488 Ammonia nitrogen:104 88 Total 22645 Total － phosphorus: 10488 Petrolic substance:0. 898 Initial COD:1000 50t/time rainwater SS:500

12.9.2 Prevention measures for waste gas pollution The main waste gases emitted in the running process for this project are end gas from vehicles, dust emission and waste gas from ship. For the dust emission from vehicles, if the measures of regular spraying water and cleaning the roads where the vehicles run are taken, the degree of TSP pollution caused by the construction will be reduced.

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The ship’swaste gas is exhausted from the vessels those moor in wharf but are still in operation. When the vessels are mooring in wharf, the main engines are shut down while the auxiliary machines are still running, therefore a small amount of waste gas will be emitted. The emission of such waste gas is not continuous and regular, the emission time is short and the amount is little, so the ambient environment will not be influenced greatly. The others waste gas factors are caused by the startup of main engine when the vessel entering into or leaving the port, the actuation of auxiliary machine when the vessel mooring alongside the wharf. In addition, a certain amount of the waste gas will also be emitted when the vehicle and equipment are running. The major components are SO2 and NO2. It is an inorganized emission from surface sources. With the advanced equipments and strengthened management, the impact can be reduced to minimum. It is not necessary to adopt the prevention measures.

12.9.3 Prevention measures for solid waste pollution The solid wastes in engineering running period can be divided into two portions, one is the wastes from ships, and the other is the garbage in land area. The wastes from ships are the consumption residues discarded by the workers in ship and the maintenance wastes. The consumption residues mainly include the food debris, trash from the cleaning, waste packing bag, bottle and can. The maintenance wastes mainly are the wastes on deck, discarding rag, paint slag and discarding tools or parts etc. The wastes from ships will be collected specially by the garbage collection boat supervised by Marine Bureau. The garbage in land area includes the consumption residues discarded by the workers and the production wastes. The amount of above-mentioned solid wastes can be reduced by means of strengthening the management. For those that no poisonous and harmful substance contained, the wastes can be sent together with other consumption residues to the municipal garbage disposal station for treatment. However, for some dangerous wastes, they shall be sent together with the waste oil extracted from the sewage to the qualified company for burning treatment. 12.9.4 Prevention measures for noise The noise sources in proposed project running period are the noise from production machinery and the traffic noise from vehicles in port and ship’shorn. The noise source intensity for the various machines operation in wharf is about 80dB(A) and the noise source intensity for ship’sengine can reach to 75-90dB(A). The impact is not big since the engine is not in operation after the ship moors alongside the wharf. The major prevention measures are: selecting the low-noise products which are good for environmental protection, taking a series of sound insulation and vibration reduction measures, such as setting noise suppressor, installing soft connectors, reducing sound pressure level,

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so as to reduce the noise pollution. The speed of transportation vehicle shall not exceed the limit and the whistle shall be reduced.

12.10 Analysis on environment impact in the construction period 12.10.1 Analysis on water environment impact in the construction period The sewage is mainly produced in construction for berth and the auxiliary facilities on bank as well as the land formation in the engineering construction process. The construction polluted water includes the waste water on construction site, sewage discharged by the constructors, water for flushing the mechanical equipment, sewage from construction ship and oily polluted water etc. The waste water on construction site mainly is the waste water caused by washing the construction materials (such as sandstone, cement, lime etc), mixing by water, spraying the concrete precasting materials and the site rainfall. Such waste water contains the suspended particle which will not affect the water area greatly when it is deposited in the sedimentation tank and discharged to the outside afterwards. The sewage discharged by the constructors include the fecal sewage, drainage from canteen, polluted water from lavatory and so on, which contain CODcr ， suspended matter, ammonia nitrogen, total phosphorus, sulfide and pathogene etc. After collection and deposition, such waste water will be drained to farmlands nearby as agricultural manure. The waste water caused by mechanical equipment and ground flushing mainly contains the suspended matters and little oil. Most of such water will be evaporated on the construction site after primary oil-separating deposition, only small amount of the waste water will be discharged to the Yangtze River, so the impact on the water quality is not big. The sewage and oily polluted water discharged from the construction boat can be collected according to the relevant regulation. It will be discharged after being sent to the receiving boat for environmental protection and treated to reach the standard, so there is no adverse influence on mbient environment. The polluted water amount in the construction period is small and produced in different places, so the impact on the environment is a local, not serious, short-term and reversible one. As soon as the construction finishes, the influence will be disappeared accordingly. Therefore, no bad impact on the ambient environment will be caused. The suspended matters will be increased due to the construction. The shape of the influence range is semioval. According to investigations, the range for the concentration increased value of the suspended matter which exceed 10mg/L attributable to construction is about 100-250m in length along the water flow direction, about 50m in width perpendicular to the river bank, the range area is 0.005 ～ 0.0125km2. Since it is about 2.5km away form the Huangtiandang water source protected zone, the suspended matter caused by construction will not affect this protected zone. Meanwhile, when the

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suspended matter sinks to the river bottom, it will not have a harmful influence on the fishes, shrimps and seashells. Due to the high flow rate of the Yangtze River and the small range for the increased value of the suspended matter concentration which exceed 10mg/L caused by construction, the living of fishes, shrimps and seashells will not be affected greatly. 12.10.2 Analysis on atmospheric environment impact in construction period The influence on atmospheric environment is mainly caused by dust during the engineering construction in terms of land formation, wharf construction and so on. The dust mainly comes from the dust emission on construction site and the secondary dust emission caused by the parts fallen from the trucks for bulk materials transportation. The influence on ambient environment caused by the dust will be bigger when the construction is carried out under the weather condition of strong wind. The influence caused by construction dust emission will be generally in the area within 50m, while the range of influence caused by dust emission from construction and transportation vehicles is within 30m. In addition, the end gas emitted from big construction trucks and equipments will also have an influence on the air quality, but such influence on the atmospheric environment is a local and short one. Through improving the construction organization management level, strengthening the environment monitoring in construction period to promote and supervise the construction companies so as to make them decrease the impact on atmospheric environment caused by the construction activities to minimum when they concentrate on the engineering quality and progress. During the engineering construction period, the major atmospheric pollution factor is TSP and its influence rage is within 50m around the construction site. The impact on atmospheric environment caused by the construction activities is a local and short one and will be disappeared when the engineering is finished, so it will not have a big influence on ambient air quality. 12.10.3 Analysis on ecological environment impact in construction period

12.10.3.1Analysis for impact on aquatic life in construction period The condition of the original water front and the nature of the bottom in local area will changed due to the construction. Since the key factor of affecting the ecological environment in the water area to be appraised is the underwater engineering construction for the hydro structure of wharf engineering, which will increase the suspended matters in the construction water area and have an adverse influence on aquatic organisms those live in such water area. In addition, adverse impact on the aquatic life in Yangtze Rive Nanjing Reach will also be caused by the sewage discharged from land area in construction period.

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The construction which possibly causes an influence on water quality is the working around ship pile during the wharf construction. The water turbulence caused by piling and the slurry overflow from the overflow port will also affects the water environment. Furthermore, the influence on water can also be possibly caused by some pollutants from slurry, the main pollutant is the suspended matters. The water will be turbid due to the process of underwater construction, and the transmissivity of sunshine in water will be lower. Therefore the life that can swim will move to other places and will be injured in different degree, especially for those plankton and phytoplankton that can make photosynthesis, they will be affected severely. The main reason is that the suspended matters will be increased by construction, and the suspended particle will adhere to the plankton’sbody surface, so its normal physiological function will be disturbed. On the other hand, the low sunshine transmissivity is not good for photosynthesis, so the growth of phytoplankton will be affected and the quantity will be reduced, as the result, the primary fertility level in the water area will be lower. The original habitat will be changed by construction works during the building process. Especially for those benthonic lives, they will be affected greatly. The bottom quality in the construction water area will be changed thoroughly. Only few benthonic lives with strong moving ability can flee to other places, most of them will be buried or covered and some of them will die, so the loss of benthonic life is big. During the wharf construction period, the water environment and bottom quality are destroyed, which make the hydrobiont group especially the benthonic life group change greatly and some species that can not adapt to this environment will be reduced and even disappeared. However, it is a short-term and reversible situation. The construction area and bottom quality around this water area will be back to the quiet, the species of benthonic life and plankton will also be recovered gradually after the completion of construction. Based on the relevant documents, the species of aquatic life can be recovered to the normal level within few months after finishing the construction, and the ecological environment in this water area will also be recovered gradually. 12.10.3.2 Analysis for impact on vegetation in construction period In the wharf construction period, the using function for some lands will be changed and the ecological using function for land will be weakened so the total biomass in this area will be reduced and the vegetation covering rate will be lower. However, the ecological function and the stability will not be affected severely. The engineering analysis shows that the impact on ecological environment is mainly the impact on water environment. The major factors of impacting the water ecological environment are ship’soily polluted water, sewage discharged from ships, water for flushing equipment and ground, waste water from machine maintenance in

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wharf, domestic sewage and initial rainwater etc.

12.11 nalysis for impact on ecological environment 12.11.1Ecological environment status The main plants in water front bottomland are reed, sedge and so on. The animals mainly include the birds of heron, egret, black moorhen, red neck culver, grey pie, pie and the fishes, seashells. The creature variety is rich. Although the ecological environment in everglade of river bottomland is disturbed by the human activities, the general situation is good at present. The species of phytoplankton (algae) in this river reach is 63 or so, 26 of which belongs to chlorophyta, 21 of which belongs to bacillariophyta, 10 of which belongs to cyanophyta, 2 of which belongs to euglenophyta, 1 of which is xanthophyta, 1 of which is cryptophyta and 1 of which is pyrrophyta. The zooplankton has 30 kind, 6 of which belong to protozoan, 9 of which belong to rotifer, 3 of which belong to cladocera and 12 of which belong to copepoda. The main species for fish stocks and valuable & rare animals are 26. In which, the valuable and rare animals with national first-level protection are white cowfish, Chinese sturgeon, paddlefish, and cowfish, mullet, colorful eel belong to the national second-level protection animal. Saury, hilsa herring, east globefish belong to the fish stocks of backing incubation. The eel, crab, weever belong to the migrating fish stocks. The herring, grass carp, chub and bighead carp belong to the semi-migrating fish stocks. Basically, the main fish stocks that live here for long time are snipefish, porgy, catfish, mandarin fish, bream fish, yellow wood fish, black fish and common carp etc. 12.11.2 Analysis for impact on aquatic ecological environment in the Yangtze River caused by drainage of proposed project

12.11.2.1Analysis for impact on aquatic life caused by oily polluted water The oily polluted water mainly includes ship’soily polluted water and oily polluted water in port area. Such polluted water will affect the aquatic life severely in certain area if it is directly drained to the Yangtze River or dock basin without treatment. The main effects are described as follows: (1) If the oil film is thick and connected to a sheet form, the sunshine transmissivity in the water area around the discharging port will be lower and the phytoplankton’sphotosynthesis will also be reduced, as the result, the primary fertility in this water area will be affected. At the same time, the zooplankton’svertical migration in day and night will also be disturbed. (2) Oil pollution will harm the chemoreception organ of aquatic life as well as disturb and destroy the animal’schemotaxis so as to disturb their sensing system.

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(3) The animal’s egg and larva is very sensitive to oil pollution. Furthermore the egg and larva normally float on water surface, where the oil pollution is severe. Therefore the impact on them is severe and a big destroy on species of creature will be caused. (4) The oil dissolved in water is tend to enter into the epithelial cell of the aquatic life, destroy the cytoplasmic membrane and mitochondrial membrane as well as harm the enzyme system and protein structure. As the result, the basal metabolism activity will be disturbed and the animal species will be abnormal. (5) Since the different animal has a different sensitivity to oil pollution, the quantity of animal that has a weak resistance to oil pollution will be reduced greatly and even disappeared, while some oil-eating germ and oil-liking organism will breed and grow largely. As the result, the structure of original species will be changed and the ecological balance will be destroyed. The oily polluted water discharged from engine room in ship is treated by oil-water separator. The oily polluted water drained from the port operation boat and the ship equipped with oily polluted water treatment facility will be received by a receiving boat for environmental protection and discharged after being treated to reach the standard. The water quality in this area therefore will not be affected greatly and the influence on the aquatic life is also not severe. 12.11.2.2Analysis for impact on aquatic life caused by domestic sewage, initial rainwater and flushing water drainage The domestic sewage mainly includes sewage from ship and sewage in port area. The major pollutant in flushing water is COD. If such polluted water will be drained to the Yangtze River or dock basin directly, the aquatic life in certain water area will be affected. The main situation is: the organic substance in sewage will enter into the water and consume the dissolved oxygen in water, so the content of dissolved oxygen in water will be reduced, then the metaboly and breath of aquatic life will be affected. As the result, the growth of aerobe will be restrained while the species of anaerobe and facultative anaerobe will breed rapidly, the original species structure will be changed and the ecological balance will be destroyed. A certain amount of the poisonous organic substance such as toluene and carbinol will disturb the growth of fishes and possibly cause the death of organism. After the engineering is completed and put into production, the sewage, initial rainwater, flushing water and waste water from machine maintenance etc will be collected and pretreated in polluted water station in plant and then drained to the polluted water disposal plant for centralized treatment, the discharging to outside will be made after the first-level standard in ‘Polluted water general discharging standard’ (GB8978-1996) is reached. Therefore, the water quality in engineering area will not be affected greatly, and the influence on the aquatic life in ambient water area is also not severe.

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In addition, the water turbulence attributable to construction will also affect the aquatic ecology, which will be demonstrated in the environment impact analysis for construction period. The summary for main parts of ecological environment, impact level and abating measures in the construction and running period is shown in Table 12-11.

Table 12-11 Main parts of ecological environment impact and abating measures in construction and running period Main parts of ecological Period Impact level and abating measures environment impact Most of benthos will be buried or covered and most of them will die. No detail measures, the Construction Impact on aquatic life caused by species of aquatic life will be recovered to normal period construction condition within several months after completion of construction, and the ecological environment in water area will be recovered gradually The ecological utilization function of land will be weakened, and the total amount of organism will be reduced, the vegetation covering rate will be Impact on vegetation caused by lower caused by construction. But there is no big construction influence on its ecological function and stability. Vegetation can be made around the area for compensation Photosynthesis of phytoplankton in water will be lower caused by oil film. The egg and larva of animal will be destroyed severely, which lead to the obstacle of organism’s basal metabolism, mutant and ecological balance disturbance. Based on such situation, the oily polluted water in wharf Impact on aquatic life caused by oily shall be collected and oil shall be removed then waste water drained to the waste water disposal plant for treatment. The polluted water from ship will be discharged based on the requirement of Marine department after being treated by self-prepared oil-water separator or receiving boat for environmental protection Dissolved oxygen in water will be consumed by Running period organic substance, so the content of dissolved oxygen will be reduced. The metaboly and breath of aquatic life will be affected and the growth of aerobe will be restrained while the species of anaerobe and facultative anaerobe will breed rapidly. The original species structure will be Impact on aquatic life caused by changed and the ecological balance will be other waste water destroyed. The feculent water will be caused by a big amount of polluted water discharge, and the pleasant appearance will be changed. The waste water shall be collected and pretreated then drained to waste water disposal plant for centralized treatment and discharged to the Yangtze River after being treated to reach the standard

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13 Analysis on environment impact in construction period

It is inevitable that the ambient environment will be destroyed and affected by construction activity during the project construction period. The influence on ambient environment is mainly caused by waste gas, dust, noise, solid waste, waste and polluted water, in particular, the waste gas and construction noise will affect the environment severely. The analysis on environment impact caused by such pollution is made below, and the relevant control measures are also put forward. 13.1 Analysis on atmospheric environment impact in construction period The atmospheric pollutants in project construction period mainly include: (1) Waste gas The waste gas in construction period is mainly from the exhausted gas emitted from construction machinery and transportation vehicles. (2) Dust and dust emission In construction period, the dust pollution is mainly caused by: Loading & unloading, transportation and stacking for the construction materials such as cement, lime and sand, as well as the dust emission pollution attributable to wind power action. Ground dust emission caused by vehicles transportation. Dust emitted from the process of stacking and cleaning for construction wastes. The waste gas and dust (dust emission) from the construction process will cause the atmospheric environment pollution. In which, dust is the most harmful one. The dust pollution in construction period mainly depends on the construction operation mode, materials stacking and wind power etc. The factor of wind power has the biggest influence on dust pollution. Therefore, the reasonable and feasible control measures shall be taken to reduce the pollution level and the influencing area.

13.2 Analysis on construction noise environment impact It is inevitable that noise pollution will be caused by mechanical equipment running and vehicles transportation in construction period. All the construction machinery and transportation vehicles used for construction are noise sources. Based on the relevant documents, the situation for noise from major construction machines is listed in Table 13-1.

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Table 13-1 Noise of construction mechanical equipment Name of construction Average A sound level 10m away from equipment equipment dB (A) Excavator 82 Bulldozer 76 concrete mixer 84 Crane 82 Road roller 82 Truck 85

According to Table 12-1, the construction mechanical equipment noise is high. In the actual construction process, various machines are working simultaneously and the radiant of each noise source will be superimposed, so the noise level will be higher and the radiant area will also be larger. The impact on acoustical environment in ambient area caused by construction noise will be appraised according to ‘Noise limit in construction site’(GB12523-90). The calculated result shows that the noise of construction machine will exceed the standard within 100m, and a certain degree of pollution impact on constructors will be caused by construction noise. Furthermore, since the mobile noise sources on road in construction area will be increased, the noise pollution in area along two sides of the road will also be caused. In order to mitigating the noise impact in engineering construction period, the following control measures can be taken: (1) Enhance the construction management, prohibit the construction works with high noise at night. (2) Construction machines shall be put in the place where causes the minimum impact on the outside environment (3) Set shroud around the equipment with high noise.

13.3 Analysis on water environment in construction period The waste water drained in construction process mainly includes: (1) Production waste water Slurry water caused by excavation and borehole and various cooling & washing water drained in the construction equipment working process. The former one contains a big amount of silt, while the latter one contains a certain amount of oily soil. In addition, the oily waste water will also be discharged due to the equipment commissioning and flushing. (2) Domestic sewage Such sewage is caused by living activities of construction team, which includes the water for canteen, waste water for washing and the water for lavatory. A big amount of germ and pathogen are contained in

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domestic sewage. (3) Waste water for flushing on construction site Although such waste water does not contain the poisonous and harmful substance, much clay, sand and oily soil on ground as well as chemical matters are inside of it. The amount of above-mentioned waste water is not big, but without treatment or the treatment is not proper, it will also be harmful to the environment. So no direct and random discharge for construction waste water shall be noted.

13.4 Analysis on environment impact caused by construction wastes The main construction wastes are building rubbish and domestic residues discarded by constructors. The building rubbish shall be cleaned and removed in time, and utilized to prevent from causing the dust emission due to a long-term stacking. If the domestic residues are not cleaned and removed in time, it will be decayed and deteriorate to breed mosquito and fly. Fetor and disease contagion will also be caused, which have an adverse influence on ambient environment and worker’shealth, therefore such domestic residues shall be cleaned and treated in time.

14 Feasibility analysis on project site selection 14.1 Analysis on consistency between site selection and planning Site selection for proposed project is confirmed that the location will be in the plant area concluded by ‘ten-fifth plan’of Nanjing Iron and Steel Group Co., Ltd and the new plant area is located in the east of NISCO old plant area, where is closed to the Yangtze River. Planning red line for plant site has been approved by Nanjing Planning Bureau. The range of land use for new plant includes bottom land and old watercourse. Due to the low altitude of geographic feature, the natural elevation for the surface is about 7.0, the flood bank shall be set along the Yangtze River and the section of entrance to the Yangtze River from Stone River shall be revamped. The flood bank and revamping engineering for the section of entrance to the Yangtze River from Stone River now has been approved by the Yangtze River water resources committee of Water Resources Ministry. Based on ‘General planning for Nanjing city’, Dachang district is regarded as an industrial town with the leading trade of heavy and chemical industry, the chemical engineering, iron & steel, electric power and their cooperative industry for further processing shall be encouraged, so the site selection for proposed project is in accordance with the general planning for Nanjing city. In ‘General planning of development for Yanjiang zone in Nanjing ’,the words of ‘iron and steel industry shall take the advantage of Golden Channel and the existing industrial base, speed up the adjustment progress for building a large-scale, international and modern iron & steel industry to make I&S become an important supporting industry in Nanjing. Adjusting products structure, upgrading products level, forming

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products line, attaching importance to develop the top metallurgical products such as wide pate, hot (cold) rolled stainless plate (coil) and corrosion proof coating plate’is mentioned. So the site selection for proposed project is in conformity with the general planning for developing Yanjiang zone in Naning. ‘2km water front in the east of NISCO is prepared for NISCO development’is clearly stipulated in ‘General planning for Luhe District’. Therefore, the site selection for proposed project is in conformity with the general planning for Luhe District. In conclusion, the site selection for proposed project is in accordance with the planning for local development and national relevant regulations. 14.2 Analysis on site selection condition NISCO is a company integrated by old plants. Both new and old plants are located in Nanjing Dachang industrial zone. Nanjing Huaneng Power Plant, Nanjing Thermo-power Plant, Nanjing Chemical Industry Company and Yangzi Petrochemistry Company are also in Dachang Industrial zone. In addition, the newly-built Nanjing Chemistry Industry Park is located in Dachang Industrial zone. Therefore, it is an important industrial base in Nanjing city. NISCO proposes to build plants closed to the Yangtze River, so the transportation will be convenient. The natural Golden Channel can be used for transporting large-scale goods and the freight charge can be saved. NISCO is closed to Jinghu railroad, and a special line from Jinghu railroad has been built to make available for transporting NISCO’smaterial and products via railroad. In addition, there are several highways around NISCO, such as Ningyang Highway, Yongliu Highway and so on, which ensure a good transportation further. So the condition for building plant here by NISCO is very good.

14.3 Analysis on general layout 14.3.1 Principle for layout The layout for proposed project is conducted following NISCO ‘ten-fifth’ planning and using land shall be saved as much as possible. The general layout for plant building, transportation way and pipeline shall be made according to the production process flow, transport, fire protection, safety, hygiene and maintenance requirement under the consideration of plant detailed situation and weather condition. A compact and reasonable layout with good arrangement for process and convenient transportation is requested to benefit production and management as well as save investment. All efforts shall be made on moving the waste gas and noise sources far away from the residents and school. Make a reasonable layout by taking advantage of the orientation of geographic features and workshop and noise sources as well as the factors of dust absorption and noise reduction made by green plants to decrease waste gas and noise pollution.

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14.3.2 Layout Project to be constructed includes many parts: the major engineering in which are 2 sinter machines, 2 blast furnaces, 3 coke ovens, 1 converter and one set of continuous casting machine. The utility cooperative engineering is elevated railroad, hot metal transporting line, thermoelectricity set, dock basin, revamping for raw material yard and oxygen-making workshop etc. In NISCO ‘ten-fifth’planning, the layout for projects in two stages has been taken into account together. Coke oven, blast furnace and sinter machine are located in the new plant area. 3 coke ovens are located in the south side of the new plant nearby the Yangtze River, where is closed to the coke transport railroad in the middle place of coke plant. 2 blast furnaces are located in the north side of the new plant area nearby the Yangtze River. The new and reserved blast furnaces are located one by one on the same center line from south to north as a whole integration. Such layout will benefit to use the coal chute and railroad to outside conveniently. The length of propylaea for belt conveyor is short, which is in conformity with the requirement for material transportation. Two sinter machines are located in the west side of new plant nearby the Yangtze River. No.2 converter and No. 2 continuous casting machine are in the workshop of wide plate plant. Those aggregations integrated with the existing wide plate production line are formed as a smooth production line with reasonable process flow. Two new plant areas are connected by elevated railroad and hot metal line. Based on the principle of centralization and separation combination, the various auxiliary production facilities (such as circulation water system, cooling station, hydroxybenzene-cyanogen waste water treatment station, dedusting ground station, central distribution station, desalination water station, circulating pump room, deoxidizing water pump room and so on) shall be set closed to the loading center or nearby the targets of service so as to make a reasonable production process, shorten the pipeline and facilitate the management.

14.4 Analysis on width of sanitary protection zone The sensitive sites around proposed project are NISCO middle school, NISCO Hospital, living area for NISCO’s employee, Ma Village, Wangjiawan, XInhua Village, Xinhua primary school and so on. The distance between construction site for proposed project and NISCO Hospital, living area for NISCO’semployee Xinhua primary school is above 1000m. Except the distance between oxygen-making station and NISCO middle school is short (300m), the other newly-built projects away from NISCO middle school is about 1000m. The distance between Ma Village, Wangjiawan and sinter, coke oven and blast furnace is about 2500m. The distance is 900m between Ma Village and converter, continuous casting machine, and the distance between Wangjiawan to converter, continuous casting machine is also 500m. The regulation of width of sanitary protection zone for coke oven, blast furnace and sinter project in metallurgical industry has been made by

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China, for others, there is no clear rule. The distance between sensitive item involved in this project to newly-built coke oven, blast furnace and sinter machine as well as the standard for width of sanitary protection zone refer to Table 14-1.

Table 14-1 Distance between each sensitive item and newly-built coke oven, blast furnace and sinter machine (m) Sensitive item Coke oven Blast Sinter furnace Machine NISCO middle School 2000 1500 1200 NISCO hospital 2300 1500 1250 NISCO No.5 Village 3500 2400 1900 NISCO No.6 Village 3200 2200 2200 Ma Village 2800 3300 3000 Wangjiawan 2300 2500 2000 The closest point in the north of Xinhua 300 1050 340 community Xinhua primary school 1250 2000 1120 Standard 1000 1200 500 GB11661-89 GB11660-89 GB11662-89

Table 13-1 shows that part of Xinhua Village is within the width of sanitary protection zone, but other sensitive items are not in the range for width of sanitary protection zone, therefore the site selection for proposed project is feasible. Nanjing Iron and Steel United Co., Ltd is a large scale iron & steel untied enterprise. The emitted atmospheric pollutants will affect the ambient atmospheric environment quality in certain degree. According to the atmospheric environment impact appraisal, general planning for Nanjing Yanjiang Development and general planning for Nanjing Luhe District, NISCO will make compensation to residents who will move from the area in sanitary protection zone width. The moving and relocation for residents who live in the width of sanitary protection zone shall be finished when the ‘ten-fifth’’technical innovation cooperative project is completed. Shelter belt shall be built between plant area and residents living area to reduce the impact on residents living area caused by atmospheric pollutants and improve the situation that the distance between NISCO production area and residents living area is short.

14.5 Conclusion The reply for land use for NISCO new plant area nearby the Yangtze River and the Stone River rechanneling engineering has been given by Nanjing Planning Bureau and the approval has also been obtained from Department of water resources. The land use for proposed project is in conformity with the requirement of general planning of Nanjing city, planning of Yanjiang Development Zone, general planning for Luhe

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District and ‘ten-fifth’planning of Nanjing Iron & Steel Group Co., Ltd. Based on ‘ten-fifth’development planning of NISCO, the layout is made under the consideration of engineering in two stages. The general layout reflects the requirements of production process, geographic feature and weather condition. The planed width of sanitary protection zone basically meets the protection distance Chinese standard stipulation. Therefore, the site selection for proposed project is feasible and the general layout is reasonable.

15 Environmental pollution monitoring and environmental protection management plan

15.1 Environment monitoring plan In order to know the pollution discharging situation and environment status in post stage, control the pollution in the production period effectively, ensure the sustainable development for enterprise and local economy, safeguard the health of the employees, the discharging ports for proposed project should be monitored and supervised.

15.1.1 Monitoring plan for waste gas pollution Monitoring factors, monitoring frequency should be determined separately due to too many waste gas pollution sources and the pollution factors of different pollution sources and pollution level are various. Waste gas pollution monitoring plan shows in table 15-1.

Table 15-1 Waste gas pollution monitoring plan Monitoring Monitoring Monitoring No Monitoring factor Remarks sources frequency Unit 360m2 and 180m2 NISCO monitoring 1 SO ,dust,smoke dust 1time/week sinter machines 2 station 2550m3 and 2000 m3 Dust, smoke NISCO monitoring 2 1time/week blast furnaces dust,H2S,SO2 station Smoke NISCO monitoring 1time/week 4 times per year dust,SO ,H S,CO station 55×2+ 60×1 2 2 monitored by 3 Nanjing battery coke ovens Nanjing Benzene,BSO 2 time/year Environmental Environmental Monitoring Station Monitoring Station 120Tconverter+120T NISCO monitoring 4 LF+RH +2500mm Dust, smoke dust 1time/week station slab caster NISCO monitoring 5 Raw material yard Dust 1time/week station

15.1.2 Waste water pollution monitoring plan Waste water in proposed project is mainly from Coke Oven Workshop.

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The pollution factors in waste water are COD, volatilized hydroxybenzene, cyanide, ammonia nitrogen. Waste water pollution monitoring plan shows in table 15-2.

Table 15-2 Waste water monitoring plan Monitoring Monitoring Monitoring NO. Monitoring factor Remarks sources frequency Unit Discharging COD, volatilized NISCO port of Coke hydroxybenzene, 1 3 time/week monitoring Oven cyanide, ammonia 4 times per station Workshop nitrogen year monitored by Nanjing PH、COD, General Environmental discharging volatilized NISCO Monitoring 2 3 time/week monitoring port of the hydroxybenzene, Station station plant cyanide, ammonia nitrogen, S

15.1.3 Noise pollution monitoring plan Equipment noise monitoring, monitoring factor is Class A, the monitoring shall be made by 2 times per year. If the equipment is upgraded, maintained or restarted, the monitoring shall be conducted. Plant noise monitoring, monitoring factor is equivalent and continuous Class A, the monitoring shall be made once per every quarter. Various pollutants monitoring places: monitoring places for pollutants of waste water, waste gas and noise refer to table 5-5. 15.1.4 Atmospheric environment monitoring plan The Analyzer in atmosphere automation station newly built by NISCO will be used for monitoring. 15.2 Environment management system and monitoring apparatus & equipment

15.2.1 Personnel Assignment NISCO attached high importance on environmental protection, and an Environmental Protection Committee was founded. The environmental management organization in NISCO is Production and Safety Department and its environmental protection section. At present, there are 7 persons for environmental protection management, 10 persons who are responsible for environment monitoring. Production and Safety Department is in charge of daily environment management in whole company, supervises and manages the environment protection execution with regard to company development plan, all the new, extension, revamping engineering as well as the technical innovation projects. In addition, it’salso responsible for the environment protection statistic and evaluation in NISCO, inspection and acceptance for environmental protection of ‘three simultaneity’, daily environmental protection equipments check, cleaning production, pollution sources treatment, pollution sources monitoring, dust and poisonous matter

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monitoring in the working position and settlement for pollution dispute etc. At the same time, the relevant environment management organization in each production plant has been set in NISCO. They are lead by Production and Safety Department and responsible for environmental protection job in terms of checking the pollution sources and facilities in the plant. There are 10 monitoring persons in the environment monitoring station of NISCO. They are qualified for atmospheric quality monitoring, dust & fume test, dust test for working position, waste water and waste slag monitoring and noise test. They are responsible for routine monitoring and analysis on various pollution sources in whole plant area of company and living area according to the regulations and rules. In addition, the technical supervision on the result of various cleaning facilities is made by them. Meanwhile, they provide the technical support for knowing environment quality and the charging trend in NISCO as well as the pollution prevention, environment protection and improvement. However, at present the monitoring staff is not sufficient and the monitoring apparatus & equipments level are poor, so the personnel assignment and equipment allocation should be strengthened. Production and Safety Department will still be responsible for the pollution monitoring after the extension project putting into production. 4 professional monitoring personnel should be added due to the increasing work. The liquid phase chromatograph, gas phase chromatograph, atmospheric environment monitoring station and water treatment facilities as well as water quality inspection apparatus shall be equipped. 15.2.2 Environment monitoring instrumentation installation Environment monitoring instrumentation equipped in NISCO see table 15-3.

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Table 15-3 Environmental protection monitoring instrumentation equipped Price（Ten Instrumentation Name Type and Spec. Quantity Thousand RMB） spectrophotometer 722 grating、7210 3 0.9 Atomy absorber AA-650 1 20.0 Infrared oil analyzer JDS-100 1 5.0 Combustion efficiency analyzer DH9003 1 0.1 Fume SO2 analyzer TH-990S 1 3.0 on-line COD analyzer — 2 22.0 Dust and SO2 on-line analyzer installed on the sinter — 1 70.0 machine head Portable velocimeter LTX 1 0.1 Atmosphere automation — 1 60.0 analyzer Fume monitoring vehicle Toyota 1 50.0 Smoke dust sampling device 300H+ 2 4.0 Acidity meter — 3 0.3 Noise meter HS5633 HS6220 2 0.5 total 20 235.9 * Note: The atmosphere automation analyzer came to the end of service life which is stopped now.

15.2 Environment management system Production and Safety Department in NISCO performs the environmental protection work on a systemic, standardized and scientific way after been making efforts for many years. A complete set of environment protection management system has been established and continuous modification and improvement are made in practice. The main management system is: (1)ISO14001EMS management manual and procedure file (2)Management and evaluation methods for Environmental Protection Equipments in NISCO (3)Environmental Protection Practice in NISCO (4)Environmental Protection Management Methods for Project Constructed in NISCO (5)Objective Management & Examination Method for Environmental Protection in NISCO (6)Examination Method for Tackling Key Environmental Protection Problems in NISCO NISCO proposed to improve the environmental protection management system in order to promote the environmental protection work in NISCO. The details are shown as follows. (1) Establishing and improving “three simultaneity” management practice

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For the new and extension projects, the relevant management practice strictly following the national “three simultaneity” management rules shall be established. (2) Performing the environmental objective responsibility system and rewards and punishment practice for environmental protection. Establish an environmental objective responsibility system with various levels from plant director to teams and groups, and the accomplishment of environmental objective responsibility shall be bonded to the rewards & punishment system. Establish rewards and punishment practice for environmental protection. Reward the persons who take good care of environmental protection facilities, save energy and reduce consumption, decrease the pollutants discharging and improve the environment. Punish severely the persons who pay little attention to the environmental protection, make management regardless of environmental protection requirements, make the abnormal damage of environmental protection facilities, cause the environment pollution accident and waste the resources or energy. (3) Establish rewards & punishment practice for energy saving, water saving and consume reducing. Establish rewards and punishment practice of energy saving, water saving and consume reducing with regard to cleaning production and energy saving. Decrease the pollution discharging to reduce the pollution on environment. (4) Improve the troubleshooting measures for emergency pollution case. 15.3 Suggestion (1) Make the environmental management according to ISO Environmental quality management system. Obtain the qualification of ISO14001 environment management as early as possible and perform the management according to ISO14001 Environmental Management System. (2) Suggest make on-line monitoring for the important pollutants discharging port since the facilities for post construction are too much and the frequency and factors of environment monitoring are increased. (3) Replace the previous management mode for environmental protection equipments by adopting the market running management idea for environmental protection facilities. (4) Further improve the working ability of the environment monitoring and managing personnel, enhance the effectiveness and impartiality of the environment monitoring data. (5) Suggest applying for the qualification of national environment monitoring LAB in NISCO.

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16. Public participation

16.1 Function and purpose of public participation 16.1.1 Purpose of public participation The purpose of public participation is to give a clear idea of project to public and make them accept the proposed project so as to improve the project environmental and social benefit. 16.1.2 Function of public participation (1) Public participation is an important measure to coordinate the engineering construction and the social impact. The idea and opinion of public on environmental and social problems possibly caused by project construction can be fully known. Therefore, all the significant environmental problems arisen from or possibly caused by proposed project will be determined, and the analysis as well as demonstration will be given in environment impact assessment consequently. (2) Confirming the rationality and feasibility of environmental protection measures according to the public’sidea and opinion on the project. The public requirement shall be fully considered when designing the plan for environmental protection measures. (3) Through understanding the public’s opinion and request on proposed project, the relationship between enterprise and local public will be harmonized and the social stability and unity will be improved.

16.2 Methodology, investigating content and respondents for public participation 16.2.1 Methodology for public participation Firstly, according to the project scale, features, major environmental problems, prevention measures to be taken and final environmental effect, ‘The brief introduction for proposed project’has been made for public participation to make people fully understand the proposed project and its environment impact. Then ‘questionnaire of public participation for environmental protection for construction project in Jiangsu province’is asked to fill out by the respondents. ‘The brief introduction for proposed project’and public participation questionnaire are shown below. On Oct 9th, Oct 10th and Dec 8th, 2004, the questionnaires have been dispensed and taken back by the appraisal unit. The spot check mode was adopted during dispensing, and the investigating samples shall cover as much as possible and with the representativeness. The investigating range covers NISCO employee’s living area, Yangzi petrochemical company employee’sliving area, Pukou, high-tech zone, Xinhua primary school, Gengjiawa, Yangjiang Street, Xinhuaxincun and so on. The investigation was made following the mode below: Firstly, the relevant people who work in appraisal unit introduced the environmental protection situation after cooperative engineering for NISCO wide plate plant and the continuous technical innovation project putting in operation to the citizens who participate in the investigation. Secondly, the communication and answers were given in regard to the

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environmental project questions on this project concerned by the citizens. Thirdly, after fully understand the project situation, the citizens were asked to fill out the ‘questionnaire of public participation for environmental protection for construction project in Jiangsu province’to collect the opinions. 100 questionnaires of public participation for environmental protection for construction project in Jiangsu province were dispensed for this public participation and all of them were taken back. 16.2.2 Investigating content of public participation (1) Whether the public feel satisfaction with the current environment quality on proposed project site (including atmospheric environment, water environment and acoustic environment etc). (2) How much the public know proposed project and their reaction. (3) Idea of the public on new project location and the relation between environment and economic development. (4) The public’sopinion on environment impact caused by pollutants discharged from engineering after knowing the general situation of proposed project. (5) Suggestion and requirement on the project pollution prevention and approval from environmental project department. The detailed investigating content is shown in the table attached to this chapter. 16.2.3 Sample structure for public participation This investigation can represent the public opinion in certain degree. 100 persons were involved in it, in which, 49 persons are male and 51 persons are female. From education level, 43 persons were graduated from colleges or universities, 3 persons obtained the diplomas of technical secondary school, 28 persons were graduated from senior high school and 24 persons were graduated from junior high school and 2 persons were graduated from primary school. Nobody failed to fill out this column. From the occupation of respondents, 28 persons are cadre, 20 persons are office clerk, 24 persons are worker, 8 persons are teacher, 4 persons are farmer and 16 persons have others occupation. Nobody failed to fill out this column. From age structure, 32 persons are at the age of 18-34, 56 persons are at the age of 35-55 and 9 person’sage is above 55. 3 persons failed to fill out this column. The detailed situation for respondents refers to table 16-1.

16.3 Investigating result of public participation 16.3.1 Investigating result of public participation (1) For environmental quality status of project location, 7 persons expressed full satisfaction, 58 persons expressed part satisfaction, and 30 persons were not satisfied with it and 5 persons expressed strong dissatisfaction with the environmental quality status. (2) 83 persons had an idea about proposed project, 4 persons knew the project very well, and 13 persons didn’tknow it. (3) 3 persons believed that the environment will be severely effected or worsened by project, 19 persons thought the influence would be big, 61

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persons’idea was the project would generally affect the environment. 10 persons believed the influence is slight, and 7 persons had no idea about it. (4) 4 persons gave firm support to this project, 73 persons agreed to it with certain precondition, 7 person hold opposite opinion and 16 persons didn’tcare it. The precondition is “three-type wastes”shall be discharged after the standard has been met.

16.3.2 Suggestion and requirement of public participation To summarize the oral comments from respondents and the relevant content of questionnaire, the suggestion and requirement on the aspect of environmental protection for technical innovation project can be concluded as follows: (1) Most of them believe that the proposed project will promote local social economic development and benefit to increase the employment opportunities. Construction units should carry out their works in conformity with project design and take measures against “three-type waste”stipulated in environmental impact assessment as well as adopt advanced process and environmental protection facilities, intensify the investment for environmental protection and reduce the discharge of “three-type waste”to minimum so as to reach the target of ‘low pollution and high output’and make the balance between economic development and local environmental protection. (2) Some of the respondents requested that the construction unit should attach importance to control the atmospheric pollution resource and use clean energy as much as possible since the local atmospheric environmental quality status is bad. (3) Strict rules and regulations shall be made after project completion to ensure the waste water, gas and noise will be discharged only after reaching the standard. At the same time, the pollution accident shall be avoided and the devices for environmental protection shall keep in good condition so as to make a good living environmental for local residents. (4) Fulfilling duties and strictly performing the approval procedures by relevant departments in government are expected. The management and supervision shall be strengthened after finishing project and the monitoring inspection shall be carried out regularly. The government shall solve problems for people and benefit to next generation. (5) It is suggested that the publicity of this project shall be strengthened by construction units to help people understand the project meaning and the fact that the environmental protection will be paid more attention by government and enterprise during economic development.

16.3.3 Analysis on opposite opinion There are 7 persons who hold the opposite opinion during the investigation of public participation, which account for 7% in total

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investigating samples, refer to Table 16-2. These 7 persons believe that the proposed project will have a significant influence on the environment. This anxiety is normal. 3 persons of which also suggested that the construction unit should strengthen the treatment for pollution and discharge after meeting standard in the suggestion column, which shows that these 3 persons didn’thold the absolute opposite opinion against project. Other the other hand, it also indicates that they are not confident of the public participation and their own opposite opinion. Besides 1 person thought the dust emission and noise are big. In fact, there is the dust pollution caused by proposed project construction, but the noise pollution will not affect the residents’area.

Table 16-2 Analysis on opposite opinion Name Opposite opinion Appraisal Measures Wu Tian severe harm to environment The anxiety is NISCO shall Weng Guoxin Severe pollution to be caused normal strengthen the after several years environmental Chu Bing Harm to environment protection during construction period Zeng xiaqin Accept as long as the These two persons More introduction environment will not be don’t oppose on measures and polluted, noise will not affect project absolutely, impact shall be residents and air pollution will they only want to given to the not big strengthen the residents Sun Yun Hopes to strengthen the pollution treatment treatment measures on and the standard pollutants discharge if the air must be reached will be polluted Zhang Pollutants discharge is big, It’s possible that Jianghong hopes the discharge can be the dust emission made after meeting will be big but noise standards, and will not affect pollution on environment residents will be Fang Tingzhi A big amount of dust and high small noise

From the investigation of public participation, the opposite opinion shows the anxiety on environment pollution. Therefore the construction unit shall implement the prevention job for environment pollution during construction period and give a satisfactory reply to people. On the other hand, with regard to some aspects that people worried about, the construction unit shall make introduction as much as possible to eliminate the anxiety of people and make them support the proposed project.

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Attached table: Questionnaire of environmental protection for ‘ten-fifth’technical innovation cooperative project in Nanjing Iron & Steel Co. Ltd Respondent Company to be Age Occupation investigated Gender Education level Family address Company address Tel Are you satisfied with the present environment quality (if not, write down the reason) □very good □good □bad □very bad Do you know/understand the proposed project to be built in this area □don’t know □have little idea □ know very well How do you think the adverse aspect/impact on environment caused by the project □Very serious □big □in common level □not big □no idea What’syour attitude to this project □strongly support □accept under certain precondition □don’t care □oppose Do you have any suggestion and requirement on environmental protection aspect

Signature(seal) Introduction for proposed project The total investment on ‘ten-fifth’technical innovation cooperative project in NISCO is RMB6.279 billion, and the plant is located in the plant area newly planed where is in east side of NISCO old plant area. This engineering project will be implemented in two stages: the engineering in first stage includes 2855 battery coke oven, 18180m2 sinter machine, 1*2000m 3 blast furnace, elevated railroad, hot metal line and utility engineering such as power generator and so on. After completion of the project in first stage, the coke, sintered ore pig iron and electricity will be increased to 1.1million t/year, 2.04million t/year, 1.5million t/year and 443 thousand KWh respectively. the engineering in second stage includes 1*60 battery coke oven, 1*360m 2 sinter machine, 1*2550m3 blast furnace, 1*120t converter, a set of No.2 continuous casting machine, dock basin, 20 thousand oxygen-making machine, revamping for No.2 raw material yard and cooperative projects for water, electricity, gas and air. After finishing the projects in second stage, the coke, sintered ore pig iron, slab, steel castings will be increased to 600 thousand t/year, 3.56million t/year, 2million t/year, 1.5million t/year and 1.5million t/year respectively. The advanced equipment and production process are adopted in proposed project, so the pollutants discharged is little. The advanced technology for pollution control in the similar enterprises in China will be adopted during construction period. In which, the technology of treatment for dust emitted from coke oven, sinter machine and blast furnace and the technology of biological denitrification for coking polluted water are the most advanced in China. The whole environmental protection level is high in China. When the project puts into operation, the pollutants discharge in whole company can reach the standard, and the environment quality function category of atmospheric, water and acoustic environment will not be changed. At present, NISCO commissions our institute to carry out the environment impact assessment job, we hereby ask you to give the precious comments to help us reflect your opinion promptly and correctly in the EIA. Your precious comments are the best support on our environment assessment job.

Nanjing Environmental Protection Scientific Research Oct 2004

17 Profit and Loss Analysis on Environment Impact 17.1 Economic Benefit Analysis The static investment on new engineering for proposed project is RMB6.27914 billion (including foreign exchange USD53.53million), the summary for investment on sub item shows in table 16-1, the investment schedule for projects in separate year refer to table 16-2.

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The loan interest occurred during construction period is RMB298.954 million, the initial (start-up) working capital is RMB392.891 million and the total investment for new engineering is RMB6.970985 billion. The main financial index Assessment shows in table 17-1 to 17-3.

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Table17— 1 Summary table for investment Estimated value (Ten Thousand RMB) No. Project or Cost Name Schedule Remarks Building Equipment Installation Others Total 1 Direct investment for project — — — — — — — 1.1 Raw Material Yard Under Constructing 7726 8157 2117 — 18000 — 1.2 2×55 Battery Coke Oven Hot Commissioning 24658 26229 8831 — 59718 — 1.3 1×60 Battery Coke Oven Under Constructing 10402 14518 5754 — 30674 — Includingforeign 1.5 Dry quenching Coke Under Constructing 2827 15087 3646 — 21560 exchange:USD6350000 1×180m2 Sinter machine 12591 11192 4197 — 27980 Includingforeignexchange： 1.6 Hot Commissioning USD220000 1.7 1×360m2 Sinter machine Under Constructing 20242 17993 6747 — 44982 — 3 1.8 1×2000m Blast Furnace Hot Commissioning 26409 45061 21530 — 93000 Includingforeignexchange： 3 1.9 1×2550m Blast Furnace Under Constructing 24421 41668 19911 — 86000 USD8230000 Hot Mental Transportation 3000 10500 1500 — 15000 — 1.10 Under Constructing and Torpedo Car 1×120t Converter,1×120t LF 1.11 Under Constructing 15370 24706 2924 — 43000 Includingforeignexchange： Furnace USD27000000 1.12 2500mm Slab Caster Under Constructing 7528 22488 984 — 31000 3500mm Steckel mill and Includingforeignexchange： 1.13 Under Constructing 4200 21000 2800 — 28000 Finishing Line USD8000000 20000Nm3/h Oxygen Making 1760 10322 2918 — 15000 Includingforeignexchange： 1.14 Under Constructing Project USD2070000 2×50MV+1×12MV Thermal 8970 23400 6630 — 39000 — 1.15 Electrical Integrated Constructing partly Generator Elevated Railroad and Hot 13800 2200 — — 16000 — 1.16 Finished Mental Line general layout transportation 1.17 and water, electricity, air and Under Constructing 24680 10800 3520 — 39000 — gas etc 1.18 wharf, Dock Basin etc Under Constructing 15830 3300 870 — 20000 — Sum of first part — 224414 308621 94879 — 627914 USD53530000 Interests occurred during — — — 29895.4 29895.4 — 2 — construction period 3 Start-up working capital — — — — — 39289.1 — Total — — — — — 697098.5 —

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Table 17— 2 Investment Schedule for Separate Year Estimated Investment Schedule for Separate Year Planed time for No. Project and Cost Name investment 2003 2004 2005 completion 1 Raw Material Yard 18000 — 18000 — 2004 2×55 Battery Coke Oven April,December, 2 59718 34718 25000 — 2004 3 1×60 Battery Coke Oven 30674 — 11472 19202 2005 4 Dry Quenching Coke 21560 — 11560 10000 2004 5 1×180m2 Sinter machine 27980 17980 10000 — 2004 7 1×360m2 Sinter machine 44982 — 11487 33495 2005 8 1×2000m3 Blast Furnace 93000 63000 30000 — 2004 9 1×2550m3 Blast Furnace 86000 — 20200 65800 2005 Hot Mental Transportation and Torpedo 10 15000 — 7000 8000 2005 Car 11 1×120t Converter、1×120t LF Furnace 43000 — 17400 25600 2005 12 2500mm Slab Caster 31000 — 12400 18600 2005 13 3500mm Steckel mill and Finishing Line 28000 — 11200 16800 2005 14 20000Nm3/h Oxygen Making Project 15000 — 4500 10500 2005 2×50MV+1×12MV Thermal Electrical 15 39000 — 17550 21450 2005 Integrated Generator 16 Elevated Railroad and Hot Mental Line 16000 13000 3000 — 2004 General layout transportation and water, 17 39000 20000 15600 3400 2005 electricity, air and gas etc 18 wharf, Dock Basin etc 20000 — 14000 6000 2005 Subtotal 627914 148698 240369 238847 — Interests occurred during construction 29895.4 2609.6 9437.8 17848.0 — period Total 657809.4 151307.6 249806.8 256695.0 —

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Table 17-3 Financial evaluation table for proposed project No. Name Unit Cost Ten Thousand 1 Total Project investment 697098.5 RMB Ten Thousand Sub engineering Investment 627914 RMB Interests Occurred During Ten Thousand Including 29895.4 Construction Period RMB Ten Thousand Start-up Working Capital 39289.1 RMB Ten Thousand 2 Average Annual Sales Revenue 961986 RMB Average Annual Sales Taxes and Ten Thousand 3 39850 Additions RMB Ten Thousand 4 Average Annual General cost 834309 RMB Ten Thousand 5 Average Annual Total Profit 123728 RMB Ten Thousand Average Annual Income Tax 40830 RMB Including Ten Thousand Average Annual Profit After Tax 82898 RMB Internal Rate of Return(FIRR) of 6 % 13.99 Added Investment Financial Net Present Value(NPV) Ten Thousand 7 200374 (i=10%） RMB Payback Period of Added Investment 8 Year 9.29 (including Construction Period) Repayment Period of Loan (including 9 Year 7.30 Construction Period)

According to table 17-3, this project has good profit-making capacity based on the analysis of profit-making capacity and the sensitivity for this project, and has strong risk resistance capacity. The internal rate of return of added investment is high than current loan interests in the bank, the company has a high running security for the project. So this project has a good economic benefit and is financially feasible. 17.2 Social Benefit Analysis The steel products should meet the higher market requirements with the rapid development of the national economy. The main structure of highrise buildings will be whole steel structure instead of steel and concrete, the consumption of steel products will be increased dramatically. This project is an important part to support the development of NISCO. The project aims to meet the requirement of national economy development.

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The project is one of the key projects greatly supported by Jiangsu provincial and Nanjing municipal government. It will use the new and high technology to revamp the traditional industry, industrialize the domestic new and high technology, optimize the enterprise product structure, reduce the planed investment, save foreign exchange and drive the development of domestic manufacturing industry. The implementation of this project will have both good economic benefits and social benefits, which shows on the aspects below: 1）NISCO builds up the world advanced Wide Plate/Coil Production Line. Its products can meet the requirement of ship-building, pipeline, bridge, pressure vessel, specially the requirement of national “Natural Gas Transfer from West to East”project. So the implementation of the project will have a positive influence on the increasing of Chinese wide and thick plate supply. 2）During the project execution, the large-scale, advanced, high efficient, low pollution and low energy consuming equipments instead of previous small, out of date, high energy consuming, high pollution equipments will be adopted to reach the target of high yield, low energy consumption and low pollution. The environment will be protected and the energy will be saved under the precondition of meeting the production development requirements. The way of balancing the development between production and the environmental protection is paved, so its social benefits are remarkable. 3）With the implementation of project, the productivity will be improved, the worker’s income will be increased, and the development of relevant service industry chain can also be promoted, which benefits the social stability and sound development. 4）The implementation of the project will increase the value added tax of RMB 359.01 million, city construction tax and education additional fee of RMB 39.49million per year according to the prediction and analysis, which is good for increasing the national and local financial revenue and promoting the local economy development. 17.3 Environment Benefit and Loss Analysis 17.3.1 Investment evaluation for Environmental Protection According to the engineering analysis on the project, the pollution attributable to this project will affect the environment in a certain extent after the project putting into production. Therefore the relevant environmental protection measures should be taken to minimize the influence on the environment and meet the requirement of project environmental protection management. The investment on environmental protection in the project is about RMB 657.7745 million, which accounts for 10.48% of total project investment. 17.3.2 Benefit and Loss Analysis for Environmental Protection Investment 10.48% of total project investment is used on carrying out the treatment

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for water, gas, noise and residues pollution, as well as making the plant environment green and beautiful. All the pollutants from the project can be discharged according to the standard. The impact on external environment caused by pollutants can reduce to minimum basically and the pollutants discharging amount can be controlled under the Gross Control index issued by Nanjing Environmental Protection Bureau. In conclusion, it’sfully necessary to invest RMB 657.7745 million on environmental protection treatment, and the effect is also obvious.

18 Conclusion and requirement 18.1 Conclusion 18.1.1 Consistency with industry policy The products, production scale, process and equipment adopted of proposed project are not listed in the content of prohibiting and limiting category in the first set, second set and third set (National Economy & Trade Committee No. 6, 16 and 32 Orders)stipulated in ‘Catalog for out of date productivity, process and products to be rejected’issued by National Economy & Trade Commission and ‘Notice of controlling credit risk by further strengthening the coordination and cooperation between industry policy and credit policy’(Fa Gai Chan Ye[2004] No. 746 File) The proposed project is not listed in the content of ‘Catalog of prohibiting repeating construction in industrial and commercial investment field’ (National Economy & Trade Commission 1999, No. 14 Order) and ‘Notice of stopping the haphazard funding on electrolytic aluminum and cement industry from Development & Reform commission and transmitted by General office of State department’(Guo Ban Fa [2003] No.103 File) The main products are in conformity with the relevant clause and industry policy stipulated in ‘Catalog of industry which the foreign merchants are encouraged to make investment on’ (National Planning Committee, National Economy & Trade Commission, Ministry of Foreign Trade and Economic Cooperation No. 21 Order, issued on March 11th 2002) and ‘Guide of high-tech industrialization key fields which taking priority for development currently’(2004) The implementation of ‘ten-fifth’technical innovation cooperative project fully use the company current existing stock assets, reserved land and partial utility facilities as well as ensure the balance between raw materials in upstream & downstream and products, reduce the production cost, prompt the economic benefit, form the optimum economic scale and increase the products competitive ability in both international and domestic market. By executing NISCO ‘ten-fifth’technical innovation cooperative project, the high-tech component will be increased in the original and traditional iron and steel industry to lay a solid foundation for reaching the target of enlarging and strengthening the major industry of iron and steel in NISCO and building an enterprise with the integration of products,

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quality and profit. The construction contents are not listed in ‘Catalog for out of date productivity, process and products to be rejected in iron and steel industry’ of ‘Development policy for iron and steel industry’while the high-tech technology adopted is listed in ‘Catalog of encouraging technical innovation in iron and steel industry’. Therefore ‘ten-fifth’ technical cooperative project is in accordance with the industry development policy. In conclusion, the implementation of proposed project is complied with the relevant National industry policy. 18.1.2 Consistency with development planning and environmental protection planning The site for ‘ten-fifth’technical innovation cooperative project is selected in new plant area nearby the Yangtze River, which is in conformity with ‘General planning for Nanjing City’,‘’Ten-fifth’environmental protection planning for Nanjing’, ‘General planning for Yanjiang Development in Nanjing’,‘Environmental protection planning for Yanjiang development in Nanjing’,‘General planning for Luhe District in Nanjing’,‘Environmental protection planning for Luhe District in Nanjing’and ‘’Ten-fifth’planning for Nanjing Iron & Steel Group Co., Ltd’.The layout and land use for proposed project are complied with the situation in above files. The approval for site selection red line has been given by Nanjing Planning Bureau. The floor bank project and revamping engineering for entrance from Stone River to the Yangtze Rive have been approved by the Yangtze River water resources committee of Water Resources Ministry. 18.1.3 Consistency with the principle of cleaning production The equipment and production process for ‘ten-fifth’technical cooperative project are advanced and the pollutants are little. Its comparable energy consumption per ton, water for production per ton, waste water discharging amount per ton and reusing rate of production water reach to the advanced level, so it belong to the cleaning production process. Cleaning production index of proposed project meets the trade standard for environmental protection in People’s Republic of China and the requirement of second level standard in ‘Cleaning production standard – iron and steel industry (exposure draft)’(HJ/Txx-2004) and Chinese environmental protection trade standard ‘Cleaning production standard – coking industry’(HJ/T 126-2003), i.e. domestic advanced level, and some indexes reach the international advanced level (first level standard). 18.1.4 Fulfilling discharge according to standard During the execution of ‘ten-fifth’technical innovation cooperative project, the environmental protection measures taken are comprehensive. The environmental protection technology adopted is an advanced one in Chinese iron and steel industry. In which, the technology of treatment for dust emitted from coke oven, sinter machine and blast furnace and the technology of biological denitrification for coking polluted water are the

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most advanced in China. The measures for controlling water pollution, noise control technology and waste slag treatment technology are effective and cost-effective and also in accordance with the relevant environmental protection standard and rules. The measures for planting trees are fulfilled. The whole environmental protection level is the advanced one in China, the pollutants discharge has been controlled effectively and the target of discharging pollutants in whole company after reaching the standard has been met. 18.1.5 Reaching the Gross Control requirement The principle of ‘discharge after reach standard’,‘cleaning production’and ‘promoting old facilities by adopting new one’are implemented for the Gross Control in ‘ten-fifth’technical innovation cooperative project. By taking the measure of ‘promoting old facilities by adopting new one’,the pollutants of COD, SS and increasing amount of dust emission will be balanced. The emission amount of SO2 is beyond the index of the Gross Control, the increasing part will be balanced in the administrative area in Nanjing. Since the heating boiler with the capacity lower than 4t has been eliminated in Nanjing during ‘ten-fifth’period, accordingly 8000t of SO2 total amount is reduced. Based on the supporting policy on this project given by municipal government, the total emission amount of SO2 can be balanced in the administrative area in Nanjing. Therefore, the Gross Control requirement can be reached. 18.1.6 Local environment quality keeps the same The assessment on existing status for environment quality shows that the atmospheric environment quality, water environment quality and acoustic environment can reach the relevant environmental function requirement. Environment impact forecasting result indicates that the construction for the project will not change the existing function requirement of current atmospheric environment quality, water environment quality and acoustic environment quality in local area. 18.1.7 Public participation 4 persons firmly support this project, 73 persons accept with certain preconditions, 16 persons don’tcare about this project and 7 persons hold the opposite attitude. The people who accept with certain preconditions believe that the discharge for ‘three-type waste’shall be made after reaching standard. The public hopes that the management department for environmental protection and enterprise shall take some feasible treatment measures on environment pollution, and strictly implement the environmental protection law as well as the relevant regulations and standards for environmental protection so as to improve the local environmental quality. The way of making pollution firstly and take treatment measures afterwards is not acceptable. Furthermore, economic development can not be made through sacrificing people’shealth and polluting environment. Meanwhile, the public hopes that construction unit shall enhance the job for treating

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dust in casting house, steel-making secondary dust and dust emission in raw material yard. The strict rules and regulations shall be made after project completion to ensure the waste water and gas will be discharged after reaching the standard. At the same time, pollution accident shall be avoid and make sure that the environmental protection equipment will be working in good condition so as to make a good living environment for local residents. 18.1.8 General conclusion Based on the words above, the project construction is feasible on the aspect of environmental protection. 18.2 Suggestion and requirement (1) During the execution for post planning, the construction unit must fulfill all the environmental protection treatment measures seriously to ensure that the pollutants discharging amount will meet the requirement of the Gross Control index for pollutants discharging amount stipulated by environmental protection department after implementation of ‘ten-fifth’technical innovation cooperative project. (2) In the execution of ‘ten-fifth’technical innovation cooperative project, the attention to introduce and make advanced management mode for environmental protection, improve management mechanism and enhance the worker’senvironmental protection awareness shall be paid. (3) The suggestion raised in this environmental impact assessment shall be fully considered when the construction unit for ‘ten-fifth’technical innovation cooperative project selects tree species for planting in plant area. (4) Dust emission in coal yard is always a difficult environmental protection problem in domestic iron and steel industry. Adopting protective cover for storage yard is an ideal method relatively, but it is difficult to use widely due to its high cost and investment. By using remaining sludge in sewage treatment station to sprinkle and cover on it, the dust emission in coal yard will be controlled, and the amount for sprinkling and covering is small. After theoretical calculation, the coke quality will not be influenced. Based on this method, the wastes from coking plant can be utilized and the problem of dust emission in coal yard can also be solved successfully. Compared with the special protective covering agent for coal yard, the environment effect is almost same, while the investment will be relatively lower. Therefore, sprinkling and covering by using remaining sludge in hydroxybenzene cyanogens waste water treatment station to control the dust emission in coal yard is suggested. (5) The dust suppression job for raw material yard shall be put in the working scope of environmental protection in NISCO. Implementing this project will not only benefit the dust emission reduction and improve air quality but also reduce the resources loss. According to the

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introduction in documents, 0.5-1‰ of materials loss will be reduced, which will increase the economic benefit of millions RMB for NISCO. (6) After the project in post planning putting into operation, the job for obtaining ISO14000 environmental management system certificate shall be carried out and the management shall be made based on ISO 14000 environmental management system. (7) Environment monitoring job shall be enhanced and monitoring points for air environment in plant area shall be increased. More monitoring equipment and devices in the existing monitoring station shall be installed to meet the monitoring requirement for routine pollution sources and provide technical support to ensure the air environment quality can reach third level standard in plant area.

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