BUILDING A NEW ZINC MINE IN A BIODIVERSITY HOTSPOT Deshnee Naidoo, CEO, Vedanta Zinc International South African Biodiversity and Business Indaba 2016 26 October 2016 PROUDLY PART OF VZI
PAGE ABOUT US
• Custodian of Vedanta Resources' southern African zinc assets • Vedanta Resources: • globally diversified natural resources major • world's second-largest zinc producer • ~1.2Mtpa mined metal • ~74% from Hindustan Zinc, 26% from Zinc International • Zinc International's Southern African operations • Black Mountain Mining (Northern Cape, South Africa) • 82ktpa MIC • Skorpion Zinc (southern Namibia) • 116ktpa refined metal • Zinc International's southern African growth • Gamsberg Project • The Lisheen Mine (Ireland) • reference point for orderly closure
PAGE 2 ABOUT GAMSBERG
• One of world's largest known unexploited zinc orebodies • ~30km from Black Mountain, Northern Cape, South Africa • discovered 40 years ago • Development now good for us • growing demand, shrinking supply globally • 60% price rise this year • Northern Cape mining industry in decline; largely overlooked ITO other development • 214Mt reserve, resource • 30-year life of mine • Opencast mine, dedicated plant • 11Mt overburden removed to date • Phase 1: • US$400m investment • 4Mtpa ore, 250ktpa metal in concentrate from mid 2018 • 1 200 jobs during construction, 850-900 jobs once operational • Phase 2: • further US$300-350m investment • 10Mtpa ore, 1Mtpa zinc in concentrate • dedicated refinery? US$500-600m
PAGE 3 OUR 'CAN DO' PHILOSOPHY
CORE VALUES SUSTAINABLE DEVELOPMENT MODEL
trust care RESPONSIBLE STEWARDSHIP
integrity respect STRATEGIC COMMUNICATIONS
ADDING AND BUILDING STRONG SHARING VALUE RELATIONSHIPS
excellence innovation
entrepreneurship
PAGE 4 OUR FOUNDER'S INFLUENCE
PAGE 5 BIODIVERSITY HOTSPOTS
Hotspot: • 35 global biodiversity hotspots (Conservation International, 2005) biodiversity reservoir that has • 2.3% of Earth’s land surface lost ≥70% of original habitat; • ~43% of endemic fauna threatened with destruction • supports more than half of world’s endemic flora • South Africa third most biologically diverse country in the world • conservation of biodiversity in South Africa of global importance • National Environmental Management: Biodiversity Act, aimed at implementing Convention on Biological Diversity • three biodiversity hotspots: Cape Floristic kingdom; Succulent Karoo and Maputaland-Pondoland regions
PAGE 6 THE GAMSBERG BIODIVERSITY CHALLENGE • New mine being developed within biodiversity hotspot • Succulent Karoo Biome • one of four in South Africa • one of 35 world wide • 6 000 plant species, 40% occur only in Succulent Karoo • 250 bird, 80 mammal, 32 reptile/ amphibian species • Bushmanland Centre of Endemism Gamsberg • 397 succulent species • 16 endemic • four restricted Biodiversity core Ecological corridors General Development nodes cultivation urban mining Biodiversity features special concern important
PAGE 7 BEYOND PHILOSOPHY: VEDANTA'S SUSTAINABLE DEVELOPMENT FRAMEWORK
Lenders Equator Principles
IFC performance standards, EHS guidelines, SUSTAINABLE DEVELOPMENT FRAMEWORK ICMM, OECD guidelines, internal issues
Responsible stewardship Building strong relationships Adding and sharing value
Strategic communications
Policies
Technical, management standards, guidance notes
VEDANTA SUSTAINABILITY ASSURANCE PROGRAMME Konkola Copper Mines Vedanta Limited (VSAP): verification process
Sesa Sterlite Vedanta Al Cairn HZL BALCO MEL WCL Zl CMT Iron Ore Copper & Power India
GAP ANALYSIS Upgrade all subsidiary management systems including ISO 14001, ISO 9001, OHSAS 18001
Subsidiary local assurance process
Sustainable Development Framework implementation in all operations
PAGE 8 BEYOND PHILOSOPHY: MITIGATION HIERARCHY
• Alternative location and design of infrastructure • pit design – set back zone from ecologically sensitive area AVOID • moved waste dump locations to avoid sensitive flora • adjusted siting of processing facilities and access roads
• Fencing, demarcation and access control of sensitive areas
MINIMISE • High Density Polyethylene (HDPE) lining of tailing dam • Separate different types of waste rock based on leachability characteristics
• Translocation of sensitive species to be utilised for concurrent rehabilitation of Gamsberg REMEDY • ~77 252 plants species • supervision by expert horticulturalist and regional botanical specialist • continuous health monitoring of plants to avoid stress and mortality
• ‘No net loss’ objective for residual impacts • Identification and securing properties nearby with similar biodiversity OFFSET features • ~40 000ha identified as potential offset • Management of offset properties • IUCN - independent review panel to monitor progress
PAGE 9 PARTNERSHIP WITH IUCN
PARTNERS PROJECTS TO BE UNDERTAKEN
• International Union for Conservation of Nature, (IUCN) • Biodiversity assessments is world’s oldest and largest global environmental • undertaking biodiversity assessments in organisation consultations with stakeholders to assess ‘No net • >1 200 government and NGO members loss impact’ of mining • ~11 000 volunteer experts in 160 countries • Biodiversity SWOT Analysis • review Biodiversity Action Plans • Objectives of partnership • Implementation of Biodiversity Offset Scheme and • develop mutually beneficial partnership to monitoring performance of biodiversity offsets proactively address mining impacts of biodiversity • Reporting: publish Biodiversity Performance Reports annually either independently or part of Integrated • guide BMM/Vedanta on biodiversity management Sustainability Reporting with international knowledge/expertise • Review and verification: review biodiversity performance • capacity building and empowerment of local and, as needed, secure independent expert verification. NGOs/institutions on biodiversity management and enhancement • Biodiversity and livelihood enhancement: implementation of suitable projects with potential of • facilitate BMM in becoming long term regional regional biodiversity and livelihood enhancement and partner for promoting sustainability implementation
PAGE10 WHERE WE STAND NOW: PLANT HARVESTING, NURSERY
PLANT HARVESTING PROGRESS GAMSBERG RESEARCH AND REHAB CENTRE
• Search and rescue was done on the current • Seed collection is ongoing mining footprint area • 356 415 seeds collected • Initially minimum 10 810 plants to be harvested • Seeds stored at seed bank at Aggeneys nursery • Current harvested status: • Plants will be grown from collected seeds • 2015 – 59 257 • These plants will be used for Gamsberg • 2016 – 17 959 rehabilitation • More significant discoveries made on • Gamsberg to be used for research and tailings facility educational purposes • Anacampseros retusa discovered • Donated to SANBI and Karoo Desert National Botanical Garden • Remainder kept at nursery in Aggeneys
PAGE11 LESSONS LEARNED
• Long term, not easy journey • Need to define set a vision on biodiversity and required outcomes of level of integration • KPIs set in performance management • Non-aligned internal processes will delay progress
PAGE12 LESSONS LEARNED CONT'D
• Fundamental change on management systems • Strong leadership and strong teams required • Partnerships important (external expertise) • Broad stakeholder engagement and dialogue
PAGE13 THE WAY AHEAD
Leadership in biodiversity Contribute to biological • Internalise impacts diversity protection • Opportunities in biodiversity • Greening SLPs • Biodiversity policy • Biodiversity is asset not risk • Management of impacts on • Biodiversity part of long and short biodiversity – no net loss term strategy • Invest in biodiversity Biodiversity as a risk • Assess impact on biodiversity • Design to minimise impact
PAGE14 POSTSCRIPT: THE LISHEEN EXPERIENCE
• Underground support • Equipment removal • Re-watering • Closing, sealing access to old workings • Tailings deposition restoration • Alternative industrial use • Our people
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