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Technical Assistance Consultant’s Report

Project Number: 51013-001 February 2020

People’s Republic of China: Improving Ecological Protection and Poverty Alleviation in the Mining Area in Ganzhou, Jiangxi (Financed by the Technical Assistance Special Fund-Others)

Prepared by NAREE International Limited in association with NAREE Consulting Limited

Hong Kong, China

For the Jiangxi Committee of the Chinese People’s Political Consultative Conference

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

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TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou, Jiangxi

Final Report

November 2019

Submitted to: Asian Development Bank and Jiangxi People’s Political Consultative Conference Prepared by: NAREE International Limited in association with NAREE Consulting Limited

Asian Development Bank TA No. 9480 PRC

Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou, Jiangxi

Final Report

26 November 2019

Final Report NᴧREE

CURRENCY EQUIVALENTS (as of 13 September 2019) Currency Unit = yuan (CNY) $1.00 = CNY 7.0738 CNY1.00 = $0.1413

Fiscal Year January – December

ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AML Abandoned Mine Lands Reclamation Fund (US) CAPEX Capital expenditure CBA Cost benefit analysis CEA Cost effectiveness analysis CERCLA Comprehensive Environmental Compensation and Liability Act (1980), US CIIT Commission of Industry and Information Technology DFR Draft Final Report DRC Development and Reform Commission EA Executing Agency EC European Commission EIA Environmental Impact Assessment ELD Environmental Liability Directive (EU) EMS Environmental Management System EPA Environmental Protection Agency (US) ES Ecosystem sources EU European Union FYP Five-Year-Plan GDP Gross Domestic Product IA Implementing Agency IDES Index of Dependence on Ecosystem Services IFIs International financial institutions JPG Jiangxi Provincial Government JPPCC Jiangxi People’s Political Consultative Conference KSTA Knowledge and Support Technical Assistance LCA Least cost analysis MA Millennium Ecosystem Assessment OPEX Operating expenditure PMO Project Management Office PRC People’s Republic of China RE Rare earths REEs Rare earth elements REO Rare-earth Oxides SCP Stakeholder Consultation Plan SMRCA Surface Mining and Reclamation Act (1977), US. TA Technical Assistance TAR Technical Assistance Report TOR Terms of Reference WB World Bank WTP Willingness to Pay

WEIGHTS AND MEASURES MT - Metric ton

1 hectare 15 mu 1 mu - 0.067 ha

NOTES (i) The fiscal year (FY) of the Government of the People’s Republic of China ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2019 ends on 31 December 2019.

(ii) In this report, "$" refers to US dollars

PROJECT LOCATION MAP

EXECUTIVE SUMMARY

1. This report is prepared for the Knowledge and Support Technical Assistance (KSTA): TA 9480-PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou, Jiangxi. As required by ToR, this report is prepared based on the mid-term report and constructive comments from ADB, PMO and relevant Jiangxi provincial departments.

2. This report introduces the mining process of rare earth mines in Jiangxi Province, including pool leaching, heap leaching, and in-situ leaching methods; and, examines mining impacts of different processes on domestic water, production water and physical health and safety of life and property, i.e. 1500 – 2400 tons of tailings are generated for production of 1 ton of mixed rare earth oxide and will involve a land occupation of 0.020-0.033 ha if stockpiled at an average thickness of 8m. In general, the pool leaching and heap leaching processes have been banned since 2007 due to serious vegetation damage, soil erosion, soil acidification, and water pollution, however, the damage caused by the ecological environment and the impact on the production and life of the villagers still persist. At present, the in-situ leaching process, although there are few advantages such as less damage to surface plants, no tailings discharge, less waste soil, and high utilization rate of rare earth resources. However, it does not avoid soil acidification and high heavy metal content and water pollution, especially major problems such as groundwater pollution risk).

3. According to the national policy, the Ganzhou Municipal Government has taken corresponding measures, which are embodied in the two aspects of soil and vegetation restoration and water quality improvement. However, we found that there are still problems for the remediation of abandoned rare earth mines (AREMs) in Ganzhou, such as “focusing more on the superficial aspects but less on the essential aspects”, “focusing more on the symptoms but less on the causes”, “focusing more on large mines but less on small ones”, “focusing more on the short-term effect but less on the long-term effect”, and “many works are still at the stage of exploration”.

4. This report pays close attention to abandoned rare mines impacts by using Dingnan County as an example, because this county has a history of rare earth mining since the 1980s. It has various abandoned mines left over by mining techniques such as pool dipping, heap leaching and in situ leaching with a strong research value. The project team collected a lot of useful information through the “one-on-one, face-to-face” survey with the villagers, and also collected a wealth of soil and water samples.

5. The survey of community residents found that: (1) The production and domestic water of residents are affected by abandoned mines. (2) The impacts of abandoned mines on villagers are as follows: the agricultural harvest is reduced and in some cases there is failure to harvest; the villagers need to find new water sources to avoid the impact of abandoned mines; the vast majority of villagers believe that AREMs affect everyone's health; some villagers' houses are also affected by geological disasters caused by abandoned mines.

6. The water and soil experiment found that: (1) soil still shows strong acidity. The soil fertility and nutrient preservation have not been effectively improved. (2) Groundwater consumed by residents and spring water drawn from the mountains do not meet the sanitary standards for drinking water. (3) There is a problem of the linkage between water pollution and soil pollution in abandoned mines, and the problem of water and soil pollution is still severe in the tailings area that has been shut down for more than 10 years. Therefore, abandoned mine management is a systematic and long-term project.

7. The government is mainly responsible for terrain remediation, soil erosion prevention and vegetation re-greening., and the pursuit of ecological benefits; while private sectors and individuals are more concerned about how to use the AREMs to potentially achieve bring

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Jiangxi Province NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) iv Final Report NᴧREE economic benefits can be summarized with four models: “Forest-Fruit-Grass, Forest-Grass- Vegetable, Pig-Bioprocess-Forestry (fruit trees), and Industrial Park”. The remediation of RE mines in Ganzhou Prefecture is still limited. The remediation of AREMs is still at the stage of phytoremediation, but the attention to water and soil quality improvement is not enough, and this is precisely the main factors affecting villagers' production, livelihood and physical health. The participation of private sector is still in the early stage, and the economic benefits of AREMs still remain small; the problems of inadequate technology and poor land transfer mechanism are still major constraints; and the quality of drinking water for the villagers needs to be improved. These are the main issues which have to be addressed by central and regional governments.

8. International experience in the remediation of AREMs is limited. The major producers of rare earths apart from China internationally are Australia, Brazil, Russia and the United States. However rare earth mining in Australia and the US are in remote areas compared to mining in Jiangxi province and Dingnan County where mining and associated remediation is carried out in areas with resident populations with all the associated risks. Other countries with RE deposits are Canada, India, Malaysia, Vietnam and in Europe, Greenland1 and Sweden. Other countries may have RE deposits but they are not exploited commercially. International experience in the remediation of AREMs is limited.

9. Following on from international experience the impact analysis of mining activities including RE mining have to address:

(i) The establishment of the objectives, targets and criteria for the remediation of AREMs including the time frame for remediation (ii) The evaluation of the costs and benefits (CBA) of remediation before and after remediation, including the alternative costs and benefits of different approaches to remediation at different sites. Other appraisal techniques might include least cost analysis (LCA), cost effectiveness (CEA) as well as multi-criteria analysis (MCA). (iii) Depending on the remediation approach adopted, the respect costs and benefits including biological, chemical and physical remediation. (iv) Environmental and social impact assessments (EIAs and SIAs) should be carried out before during and after remediation. (v) The application of land suitability analysis for the use of land after remediation. This assumes that there are land use guidelines and that land use planning is incorporated in the mining area in physical parameters and in legal and regulatory frameworks. (vi) The production of development plans for mine remediation with defined timeframes for the REE and other mines in Jiangxi province. (vii) The need to develop a mining remediation impact model that combines technical, economic and social parameters. (viii) The possible development of a remediation model which incorporates economic, social and technical elements, such a model would be produced subsequent the submission of this DFR

10. Based on the research on status, effectiveness, problems and objectives of the related policies and the restoration of AREMs in Ganzhou Prefecture, this report provides corresponding policy recommendations in terms of five aspects: (1) improving the mechanism of private sector participation in the remediation of AREMs, (2) improving the integration mechanism of ecological restoration and poverty alleviation, (3) improving residents’ participation in repairing AREMs, (4) improving the deep treatment mechanism and measures of AREMs, and (5) improving the value compensation and implementing an early warning mechanism for the deterioration status abandoned RE mines.

1 In the case of Greenland there is joint investment by China and Australia and environmental legislation is still being developed. TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) v Final Report NᴧREE

TABLE OF CONTENTS

A BACKGROUND ...... 1

A.1 INTRODUCTION AND PURPOSE OF THE REPORT ...... 1 A.2 PILOT STUDY ...... 2 A.3 STRUCTURE OF THE FINAL REPORT ...... 3 A.4 SOURCES OF FIGURES ...... 4 B MINING PROCESS, FORMATION, IMPACT IN GANZHOU ...... 5

B.1 OVERVIEW OF RARE EARTH ORES AND RARE-EARTH MINING IN JIANGXI PROVINCE ...... 5 B.2 THE TECHNOLOGY OF GANZHOU RARE EARTH MINING AND IMPACTS ON ECOLOGY ...... 10 B.3 IMPACTS CAUSED BY AREMS ON LOCAL RESIDENTS ...... 19 B.4 NECESSITY OF ACCELERATING REMEDIATION OF GANZHOU MINES ...... 21 B.5 SUMMARY ...... 22 C MEASURES, RESULTS AND PROBLEMS OF ABANDONED MINE REMEDIATION IN GANZHOU ...... 23

C.1 REQUIREMENTS OF THE GOVERNMENTS AT ALL LEVELS TO MINES REMEDIATION ...... 23 C.2 JIANGXI GANZHOU ABANDONED MINE REMEDIATION INITIATIVE ...... 25 C.3 OUTCOMES ACHIEVED ...... 27 C.4 KEY EXISTING PROBLEMS ...... 30 C.5 SUMMARY ...... 31 D PILOT AREA STUDY: DINGNAN COUNTY ...... 33

D.1 OBJECTIVE ...... 33 D.2 OVERVIEW OF THE CASE STUDY AREA, AND THE BACKGROUND AND RATIONAL FOR CHOOSING DINGNAN COUNTY ...... 33 D.3 IMPACTS OF AREMS ON LOCAL RESIDENTS ...... 37 D.4 IMPACT OF AREMS ON LOCAL ECOLOGICAL ENVIRONMENT ...... 46 D.5 RESTORATION MEASURES FOR AREMS BY THE GOVERNMENT ...... 55 D.6 RESTORATION MEASURES FOR AREMS BY NON-GOVERNMENT ...... 59 D.7 PERFORMANCE OF AREMS RESTORATION AND FUTURE PRIORITIES ...... 67 D.8 SOCIAL BENEFITS AFTER RESTORATION OF AREMS ...... 69 D.9 DEFICIENCIES IN RESTORATION OF AREMS ...... 70 D.10 SUMMARY ...... 72 E INTERNATIONAL EXPERIENCE IN THE REMEDIATION OF MINING AND RARE EARTH MINES AND THE IMPLICATIONS FOR CHINA ...... 74

E.1 CRITERIA FOR THE CHOICE ON INTERNATIONAL CASE STUDIES...... 74 E.2 THE ECONOMIC BACKGROUND TO RE AND OTHER MINING IN JIANGXI PROVINCE ...... 74 E.3 APPRAISAL METHODOLOGIES FOR FUTURE MINING AND REMEDIATION...... 76 E.4 APPROACHES TO THE REMEDIATION OF RE MINING AREAS...... 81 E.5 INTERNATIONAL BEST PRACTICES OF USING REMEDIATED MINING LAND ...... 88 E.6 LEGISLATION AND MINING – INTERNATIONAL CASE STUDIES ...... 94 E.7 THE INTERVENTION OF THE PRIVATE SECTOR IN THE REMEDIATION OF MINES ...... 104 F POLICY OPPORTUNITIES, OBJECTIVES AND MODELS FOR REMEDIATION OF AREMS ...... 109

F.1 RESEARCH TARGETS ...... 109 F.2 POLICY OPPORTUNITIES FOR THE REMEDIATION OF ABANDONED MINES IN GANZHOU ...... 109 F.3 RESTORATION TARGETS ...... 112 F.4 SELECTION OF RESTORATION MODEL ...... 117 G POLICY RECOMMENDATIONS FOR IMPROVING THE ECOLOGICAL PROTECTION OF ABANDONED MINES AND POVERTY ALLEVIATION IN GANZHOU, JIANGXI ...... 123

G.1 CONTEXT AND OBJECTIVES ...... 123 G.2 IMPROVING THE MECHANISM OF PRIVATE SECTOR PARTICIPATION IN REMEDIATION ...... 124 G.3 POVERTY ALLEVIATION TASKS AND INITIATIVES ...... 128 G.4 IMPROVE THE MECHANISM FOR RESIDENTS TO PARTICIPATE IN THE RESTORATION OF ABANDONED MINES ...... 131 G.5 IMPROVE THE DEEP TREATMENT MECHANISM AND MEASURES OF ABANDONED MINES...... 132 G.6 IMPROVE THE COMPENSATION AND ASSESSMENT MECHANISM FOR ABANDONED MINES ...... 136 G.7 SUMMARY ...... 139 H APPENDICES ...... 148

H.1 SOCIAL SURVEY QUESTIONNAIRE ...... 148 H.2 VILLAGE COMMITTEE CONSULTATION OUTLINE ...... 154 H.3 POLICIES AND REGULATIONS OF THE GOVERNMENTS AT ALL LEVELS ON THE RECOVERY OF RARE EARTH INDUSTRIES AND MINES 156 H.4 LIST OF KEY MANAGEMENT AREAS OF GANZHOU MINE GEOLOGICAL ENVIRONMENT...... 160 H.5 COMPREHENSIVE TREATMENT PROJECT STATUS OF DINGNAN COUNTY FUTIAN WASTE RARE EARTH MINE ...... 162 H.6 WATER SAMPLING TABLES ...... 163 H.7 SOIL SAMPLING TABLES ...... 165 H.8 QUALIFICATION RATE OF DRINKING SHALLOW WELL WATER AND SPRING WATER ...... 166 H.9 THE POLLUTION STATUS OF THE TAILING WATER IN THE IN-SITU LEACHING OF LINGBEI TOWN, DINGNAN COUNTY ..... 167 H.10 SOCIAL SURVEY RESULTS ...... 168 H.11 WATER SAMPLE RESULTS ...... 170 H.12 SOIL SAMPLING RESULTS ...... 176 H.13 MAIN PROCESS OF SEEDLING PLANTING ...... 182

TABLE B-1 CONTROL QUOTA FOR RARE EARTH MINING IN CHINESE PROVINCES IN YEAR 2018 ...... 8 TABLE B-2 DIFFERENCE BETWEEN POOL LEACHING AND HEAP LEACHING ...... 11 TABLE B-3 COMPARISON BETWEEN HEAP LEACHING AND IN-SITU LEACHING (ZOU 2012) (MAO, WU AND ZHANG 2016) ...... 13 TABLE B-4 TYPES OF ENVIRONMENTAL IMPACTS OF MINES ACCORDING DIFFERENT MINING PROCESSES ...... 19 TABLE D-1 MINING AREAS OF 6 MAIN RARE EARTH PRODUCING AREAS IN GANZHOU ...... 36 TABLE D-2 SURVEY OVERVIEW ...... 39 TABLE D-3 ENVIRONMENTAL BACKGROUND VALUES OF HEAVY METAL ELEMENTS IN SOIL OF HANSHUI VILLAGE, LINGBEI TOWN ... 49 TABLE D-4 SOIL ENVIRONMENTAL QUALITY ASSESSMENT USING GEO-ACCUMULATION INDEX METHOD ...... 50 TABLE D-5 SOIL ENVIRONMENTAL QUALITY ASSESSMENT BY PERI ...... 51 TABLE D-6 TOXICITY RESPONSE INDEX FOR VARIOUS HEAVY METALS ...... 51 TABLE D-7 ASSESSMENT OF HEAVY METAL SOIL CONTAMINATION IN RARE EARTH TAILINGS AREA ERROR! BOOKMARK NOT DEFINED. TABLE D-8 CORRELATION OF PHYSICOCHEMICAL PROPERTIES OF SOIL ...... 53 TABLE D-9 DESIGN REQUIREMENTS OF DIFFERENT TYPES OF DRAINAGE CHANNELS ...... 58 TABLE E-1 JIANGXI PROVINCE GDP; SECTORAL AND MINING DATA (USD) ...... 76 TABLE E-2 ELEMENTS OF THE FINANCIAL ANALYSIS ...... 77 TABLE E-3 ANNUAL OPERATING COSTS ...... 78 TABLE E-4 ANNUAL FINANCIAL BENEFITS ...... 78 TABLE E-5 ASSESSMENT TOOL FOR MINING OPTIMIZATION ...... 82 TABLE E-6 OUTLINE FORMAT FOR MULTI-CRITERIA ANALYSIS ...... 84 TABLE E-7 MINE REMEDIATION CRITERIA ...... 85 TABLE E-8 VALUATION OF ECOSYSTEM ...... 87 TABLE E-9 COMPONENTS OF THE IMPLEMENTATION PLAN ...... 93 TABLE E-10 INTERNATIONAL STANDARDS AND REGULATIONS RELATING TO REE MINING ...... 95 TABLE E-11 CANADA – KEY ELEMENTS OF MINE REMEDIATION TO BE INCLUDED IN ENVIRONMENTAL LEGISLATION ...... 96 TABLE E-12 SUMMARY OF REQUIREMENTS FOR BEST AVAILABLE TECHNOLOGY (BAT) FOR THE MANAGEMENT OF TAILINGS AND ROCK WASTE ...... 98 TABLE E-13 INTERNATIONAL LEGISLATION RELATING TO SUSTAINABLE DEVELOPMENT IN THE RARE EARTHS MINING INDUSTRY .... 100 TABLE E-14 GUIDELINES FOR MINING PROPOSALS, WESTERN AUSTRALIA AND ENVIRONMENTAL PROTECTION ACT (1986) COMPONENTS ...... 102

FIGURE A-1 LOGICAL RELATIONSHIP OF EACH CHAPTER IN DFR ...... 3 FIGURE B-1 DISTRIBUTION OF IONIC RARE EARTH ORES IN CHINA (MAO, WU AND ZHANG 2016) ...... 5 FIGURE B-2 MAP SHOWING THE DISTRIBUTION OF THE MAJOR MINING AREAS OF LIGHT AND HEAVY RARE EARTH ORES IN CHINA ...... 7 FIGURE B-3 FLOWCHART OF POOL LEACHING PROCESS ...... 11 TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) vii Final Report NᴧREE

FIGURE B-4 FLOWCHART OF THE IN-SITU LEACHING PROCESS ...... 14 FIGURE B-5 IN-SITU LEACHING PROCESS (MOUNTAIN INJECTION AND RARE EARTH MOTHER LIQUOR COLLECTION) ...... 14 FIGURE B-6 THE INJECTION WELL, THE DIVERSION HOLE, THE MOTHER LIQUOR COLLECTION POOL AND THE FILTRATION SEDIMENTATION TANK, AND THE RARE EARTH MOTHER LIQUOR COLLECTION TANK AND FILTRATION SEDIMENTATION ...... 15 FIGURE B-7 POOL LEACHING OF AN ABANDONED MINE IN ANYUAN COUNTY, GANZHOU CITY...... 16 FIGURE B-8 HEAP LEACHING PROCESS AND AN ABANDONED MINE IN XUNWU, GANZHOU CITY ...... 17 FIGURE B-9 HEAP LEACHING AND A TAILINGS SITE IN ANYUAN COUNTY, GANZHOU CITY ...... 17 FIGURE B-10 CHINA CENTRAL TELEVISION INTERVIEWED THE VILLAGERS OF LONGNAN COUNTY ...... 20 FIGURE C-1 TAIL WATER TREATMENT STATION FOR ABANDONED RARE EARTH MINES IN LONGNAN COUNTY OF GANZHOU CITY ...... 27 FIGURE D-1 ADMINISTRATIVE LOCATION AND DINGNAN MAP OF JIANGXI PROVINCE ...... 34 FIGURE D-2 DISTRIBUTION OF ABANDONED RARE EARTH MINES IN 6 COUNTIES OF GANZHOU ...... 36 FIGURE D-3 LOCATION OF THE TWO TOWNSHIPS AND 10 VILLAGES ...... 38 FIGURE D-4 DISTANCE OF RESIDENCE TO MINES AND POLLUTION ON DRINKING WATER ...... ERROR! BOOKMARK NOT DEFINED. FIGURE D-5 FARMLAND YIELD REDUCTION ...... ERROR! BOOKMARK NOT DEFINED. FIGURE D-6 FOREST LAND YIELD REDUCTION ...... ERROR! BOOKMARK NOT DEFINED. FIGURE D-7 PERCEPTIONS ON IMPACTS ON PHYSICAL HEALTH ...... ERROR! BOOKMARK NOT DEFINED. FIGURE D-8 LANDSCAPE AND GROUND LEVELING CROSS-SECTION ...... 56 FIGURE D-9 TRI-PLANAR GEONET SLOPE PROTECTION USED FOR RESTORATION OF XIKENG RARE EARTH MINE IN DINGNAN COUNTY ...... 57 FIGURE D-10 SELECTION OF TREE SPECIES ...... 58 FIGURE D-11 THE GRIT BASIN AT THE FOOT OF ONE ABANDONED MINE ...... 59 FIGURE D-12 COOPERATION BETWEEN GOVERNMENT AND SOCIAL CAPITALS IN ABANDONED MINES RESTORATION ...... 60 FIGURE D-13 BIRD'S-EYE VIEW OF CHINA RESOURCES WUFENG CITRUS PLANTING BASE IN DINGNAN COUNTY ...... 61 FIGURE D-14 DINGNAN DEBAO ECOLOGICAL AGRICULTURE PROCESSING PARK UNDER CONSTRUCTION ...... 63 FIGURE D-15 ZHENGHE LIVESTOCK WASTE TREATMENT PLANT ...... 64 FIGURE D-16 A CORNER OF DINGNAN INDUSTRIAL PARK CONSTRUCTED ON THE ABANDONED RARE EARTH MINE ...... 67 FIGURE D-17 MONITORING OF TAILWATER INFLUENT AND EFFLUENT QUALITY OF AN ABANDONED RARE EARTH MINE IN DINGNAN COUNTY ...... 69 FIGURE E-1 JIANGXI PROVINCE – MINING AND PROCESSING OF MINERALS ...... 75 FIGURE E-2 ECOSYSTEM SERVICES AND WELL-BEING ...... 82 FIGURE E-3 VALUATION OF SELECTED ECOSYSTEM SERVICES ...... 84 FIGURE E-4 THE MASTER PLAN FOR MINE REMEDIATION AT WHEAL JANE MINING REMEDIATION SITE ...... 91 FIGURE E-5 EU LEGISLATION RELATING TO MINING ...... 98 FIGURE E-6 RISKS OF RARE EARTH MINING WITHOUT OR WITH INSUFFICIENT ENVIRONMENTAL PROTECTION SYSTEM...... 106 FIGURE F-1 POLICY OPPORTUNITIES FOR REMEDIATION OF ABANDONED MINES IN JIANGXI ...... 109 FIGURE F-2 TARGETS OF SYSTEMATIC RESTORATION ...... 113 FIGURE F-3 PROCESS AND PATH OF REALIZATION OF ECO-PRODUCT VALUES ...... 115 FIGURE F-4 SHANGHAI CHENSHAN BOTANICAL GARDEN BUILT ON THE PIT (BEFORE AND AFTER TREATMENT COMPARISON) ...... 119 FIGURE F-5 COMPARISON OF SHESHAN STONE PIT BEFORE AND AFTER RESTORATION ...... 120 FIGURE G-1 POLICY RECOMMENDATIONS AND TARGETS OF ABANDONED MINE REMEDIATION ...... 123 FIGURE G-2 INCENTIVE MECHANISM SYSTEM FOR SOCIAL CAPITAL PARTICIPATION ...... 126 FIGURE G-3 COST-BENEFIT ANALYSIS OF ABANDONED MINE RESTORATION ...... 139 FIGURE H-1 DOMESTIC WATER SOURCES ...... 168 FIGURE H-2 PERCEPTIONS ON CHANNELS OF IMPACTS ON PHYSICAL HEALTH ...... 168 FIGURE H-3 WHERE TO FOR VILLAGERS’ DEMAND FOR COMPENSATION ...... 169 FIGURE H-4 PH VALUES OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 176 FIGURE H-5 AMMONIA NITROGEN OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 176 FIGURE H-6 NITRATE NITROGEN OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 177 FIGURE H-7 SULFATE OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 177 FIGURE H-8 FERROUS VALUES OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 178 FIGURE H-9 MANGANESE VALUES OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 178 FIGURE H-10 COPPER VALUES OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 179 FIGURE H-11 ZINC VALUES OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 179 FIGURE H-12 LEAD VALUES OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 180 FIGURE H-13 CADMIUM VALUES OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 180 FIGURE H-14 CHROMIUM VALUES OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 181 FIGURE H-15 ARSENIC VALUES OF DIFFERENT SOIL TYPES IN DIFFERENT TYPES OF TAILINGS ...... 181

A BACKGROUND

A.1 Introduction and Purpose of the Report

1. This report is prepared for the Knowledge and Support Technical Assistance (KSTA): TA 9480-PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Abandoned Mining Area in Ganzhou, Jiangxi. As required by the TOR, the KSTA will have four key outputs: (1) review the restoration status of abandoned rare-earth mines in Jiangxi (Ganzhou); (2) review cost and benefits of restoration of abandoned rare-earth mines in Jiangxi (Ganzhou), and restoration mode; (3) review impacts of abandoned rare-earth mine restoration on local community residents; (4) propose policy recommendations to improve ecological protection and poverty alleviation outcomes in the rare-earth mining areas in Jiangxi (Ganzhou).

2. The KSTA has four phases: Phase 1, inception phase; Phase 2, data collection, survey and interviews, policy review, case study, cost and benefits analysis; Phase 3, develop the objectives, focus, project planning and policy recommendations for improving ecological protection and poverty outcomes in the rare-earth areas in Jiangxi Province; Phase 4, completion of the KSTA.

3. The key deliverable of Phase 1 is the Inception Report, which describes the preliminary working pathway and approach, work plan and human resource arrangement. The Inception Workshop in Nanchang invited the officials from the Ecological Office, Poverty Alleviation Office, the Department of Industry and Information Technology and other relevant government agencies. During the workshop, the inception report was introduced, consultations were held with ADB team leader, PMO and government officials. Agreements were reached on the working pathway, outputs and objectives.

4. The key deliverable of Phase 2 is Mid-term Report, which describes the study progress and outputs of the consultants, mainly including: (1) comprehensive review of national, provincial, municipal and county policies on rare earth mining and restoration of abandoned mines; (2) review the status, methods, performance and issues of the rare-earth mine restoration in Jiangxi (Ganzhou); (3) study in the pilot areas the impacts from abandoned rare-earth mines on local community residents and ecological environment, restoration approach adopted and its cost and benefits, private sector involvement in restoration and lessons learned; (4) international experience on restoration of AREMs and relevance in the PRC.

5. The Mid-term Workshop was held in Nanchang from June 18 to 20, 2019. The Mid- term Workshop invited officials from the relevant departments of the Provincial Development and Reform Commission, Natural Resources Department, the Poverty Alleviation Office, and the Department of Industry and Information Technology. Officials from various offices expressed their approval of the overall framework and conclusions of the report and made some constructive comments to the draft final report.

6. Deputy Secretary-General Zhao Bo, the person in charge of the PMO, expressed full affirmation of the overall content of the report. She emphasized that the milestone research report written by the expert team and the PMO based on the mid-term report has been recognized by leaders of the Jiangxi Provincial Party Committee and Provincial Government, and requested relevant functional departments and the Ganzhou Municipal Government to implement the policy recommendations in the report.

7. The main outputs of Phase 3 are the DFR and Final Report. The Final Mission was held in Nanchang on November 7, 2019. Officials from the Provincial Development and Reform Commission, the Natural Resources Department, the Poverty Alleviation Office, etc.

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Jiangxi Province NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 1 Final Report NᴧREE were invited to attend the meeting. The DFR will be further modified and revised based on the discussion and the Final Report will be submitted to the ADB before November 25, 2019.

8. Phase 4 is the completion of the project through assessment and evaluation.

A.2 Pilot Study

9. In November 2018, the study framework and the deliverables were agreed with the ADB and in December, the consultants prepared fieldwork questionnaires for different stakeholders including the community residents’ institutes and agencies and an outline of further issues to be discussed. A list of required data was drafted, the data collection involves different agencies including: Minerals Management Bureau, Finance Bureau, Poverty Alleviation Office, Water and Soil Conservation Bureau, Land Resources Bureau, Water Conservancy Bureau, Development and Reform Bureau, Environmental Protection Bureau, Industry and Information Technology Bureau and Ganzhou Prefecture Rare Earth Group Co. Ltd.

10. With support from the PMO, the consultants visited Dingnan County on January 18, 2019 to conduct a three-day survey. The survey includes: (1) discussion with relevant agencies, mainly to introduce project background and significance, understand the status quo and issues of rare earth mining and abandoned mine restoration, and key measures in Ganzhou (Dingnan County); (2) visit two sites of AREMs, including Jiazibei Mine (abandoned mine from in-situ leaching) and Neitoukeng Mine (abandoned mine from pool leaching), to understand their mining history, impacts on residents and ecology, restoration measures taken and effectiveness, etc.; (3) field visit to Mashanjing Wastewater Treatment Station to understand the technology, inputs and effectiveness for treatment of wastewater from AREMs; (4) preliminary survey on community residents (8 households), one-on-one interview with community residents, to review whether the questionnaire was design properly with appropriate questions, to better prepare for the formal survey.

11. The consultants conducted the second survey in the case study site in March 2019. The main objectives of the survey are to: (1) acquire 161 community residents’ questionnaires (one-on-one interview); (2) held discussions with village and township cadres; (3) collect 24 soil samples (from 3 different types of AREMs); (4) collect 30 samples of well water and maintain spring water from 5 villages.

12. In April 2019, the consultants and PMO were invited by the Ecological Restoration Department of the Natural Resources Department of Jiangxi Province to participate in a seminar on the status, problems and suggestions for the restoration of AREMs in Jiangxi Province. More than 10 officials from the department exchanged opinions and opinions with the expert group and the project office. As one of the 11 national rare earth national planning mining areas, Dingnan County was listed as a national key construction county for soil and water conservation in 2015. It was listed as a demonstration county of ecological civilization in Jiangxi Province in 2018, and undertook the National Science and Technology Huimin Project “Abandoned Rare Earth Mining Area”. The “Reconstruction of Ecological Rehabilitation” project, the restoration of many AREMs has been affirmed by the central, Jiangxi and Ganzhou municipal governments.

A.3 Structure of the Final Report

13. The DFR contains the following chapters and appendices as shown below.

Chapter A: Introduction

Chapter B: Mining process, formation, impact in Ganzhou

Chapter C: Ganzhou mine Chapter E: International restoration measures, results experience and best practice of and problems abandoned mine remediation

Chapter D: Pilot Study Dingnan

Chapter F: Policy opportunities, Chapter G: Policy suggestions for objectives and models for the improving the ecological protection remediation of abandoned and poverty alleviation performance mines in Ganzhou of mines in Ganzhou

Figure A-1 Logical relationship of each chapter in DFR

14. Chapter B: Mining process, formation, impact in Ganzhou. Different mining processes form different types of abandoned mines, which have great differences in ecological environment and residents. Therefore, this chapter introduces the basic situation of rare earth mines in Jiangxi and Ganzhou; then it shows that different mining technologies have formed different types of mines; finally, the ecological and social impacts of AREMs and the significance of repairing AREMs are discussed.

15. Chapter C: Ganzhou mine restoration measures, results and problems. Since the repair measures of the Ganzhou Municipal Government are carried out under the guidance of the central and provincial governments, this chapter firstly reviews the national and provincial- level targets and requirements for the restoration of abandoned mines in Ganzhou. Secondly, it shows measures Ganzhou took the remediation of abandoned mines and analyze the achievements of the abandoned mines remediation in Ganzhou. Finally, analyze the main problems existing in the repair of abandoned mines in Ganzhou

16. Chapter D: Pilot area study (Dingnan County). After explaining the rational for selecting the case points and explaining the background of the case points, (1) assessing the impact of the AREMs on the production, health, livelihood and property safety of the local residents based on the information obtained from the field research and symposium; (2) based on the results of water and soil testing, analyze the impact of AREMs on the local ecological environment; (3) analyze the measures taken by the government and non-government (enterprise and individual) to repair abandoned mines; (4) from the perspectives of ecology, poverty alleviation and economic effectiveness, the results of the abandoned mines in the case are evaluated. (5) after the evaluation of deficiencies in restoration, the focus and direction of the next abandoned mine restoration are proposed.

17. Chapter E: Environmental Economics Issues and International experience and best practice of abandoned mine remediation. After comprehensively considering the characteristics of abandoned mines in Ganzhou, Jiangxi, based on the analysis of the experience of repairing mines in the United Kingdom, Australia, Portugal and other countries, we will focus on the inspirations of cost-benefit of restoration, laws and regulations for restoration, and participation in social capital.

18. Chapter F: Policy opportunities, objectives and models for the remediation of abandoned mines in Ganzhou. (1) analyze the policy opportunities for the restoration of abandoned mines in Ganzhou, including the rural revitalization strategy and the construction of ecological civilization pilot zones, and how to combine various policy opportunities to promote the restoration of abandoned mines in Ganzhou; (2) based on the relevant policy analysis, propose two major objectives for the restoration of abandoned mines in Ganzhou, systematic restoration targets and multi-recovery targets, and their short-term and long-term goals; (3) analyze different repair modes and their corresponding initiatives.

19. Chapter G: Policy suggestions for improving the ecological protection and poverty alleviation performance of mines in Ganzhou. Policy suggestions for improving the ecological protection and poverty alleviation performance of mines in Ganzhou including: (1) pathways for private sector participation; (2) combining abandoned rare earth mine restoration and poverty alleviation measures; (3) mechanism to encourage residents to participate in mine rehabilitation; (4) improve the mechanism and measures for mine deep rehabilitation; (5) improve the compensation and early warning mechanism of mine ecological value.

20. Appendices: (1) Social Survey Questionnaire; (2) Village Committee Consultation Outline; (3) Policies and regulations of the governance; (4) List of Key Management Areas of Ganzhou Mine Geological Management; (5) Comprehensive Treatment Project Status of Dingnan County; (6) Water Sampling Tables; (7) Soil Sampling Tables; (8) Qualification rate of drinking water; (9) The pollution status of the tailing water; (10) Social survey results; (11) Water Sample Results; (12) Soil Analysis Results; (13) Main process of seeding planting.

A.4 Sources of Figures

21. To describe the current abandoned mines and its impacts on local ecology and living conditions of residents, this report adopts a large number of pictures to enhance visual impacts and persuasiveness. Three main sources are involved in this report: (1) provided by the project team based on field research or by relative Ganzhou Municipal bureaus; (2) quoted from published papers with specific descriptions in the report; (3) downloaded from the Internet such as Baidu Images Gallery.

B Mining process, formation, impact in Ganzhou

22. The structure of this chapter are as follows: (1) a brief introduction to the reserves, characteristics, mining history, industrial development, and abandoned mine area of rare earths in Jiangxi Province and Ganzhou City; (2) introduction of three different mining processes and their impacts on environment and ecology; (3) from four aspects of residents' living, production, health, life and property safety, etc., explain the impacts of abandoned mines on local community residents; (4) explain that the restoration of abandoned mines is an important measure that fits the national development concept, accelerates the construction of ecological civilization in Jiangxi Province, and improves the production and life of local residents.

B.1 Overview of rare earth ores and rare-earth mining in Jiangxi Province2

B.1.1 Overview of rare-earths in Jiangxi Province 23. China is the country with the richest reserves of rare earth resources (refer to text box of Rare Earth elements and applications). According to the rare earth resource report issued by the US Geological Survey (USGS), the world's total rare earth oxides (REO) reserves are 120 million tons by 2018, and PRC's 44 million tons, accounting for 38%. In 2018, the global production of rare earth minerals is about 195,000 tons, and PRC's output is about 120,000 tons, accounting for 62%. The global rare earth smelting and separation output is about 146,000 tons, of which PRC's output is 125,000 tons, accounting for 86% (Z. Huang 2019). Therefore, PRC is in an absolute leading position in the world of rare earth smelting and separation, and has a strong voice.

4% 10%

36% 江西Jiangxi 广Guangdong东 15% 福建Fujian 广西Guangxi 湖南Hunan 云南Yunan 33%

Figure B-1 Distribution of ionic rare earth ores in China (Mao, Wu and Zhang 2016)

24. The rare earth resources in PRC are distributed in all four directions of north, south, east and west, with the light rare earth mainly distributed in the north and heavy rare earth in the south (as shown in Figure B-1 and Figure B-2) and 98% of the rare earth resources distributed in Inner Mongolia, Jiangxi, Guangdong, Sichuan, Shandong among others (Y. Liu 2007).

2 The concept of “Ganzhou Rare Earth” is generally equated with “Jiangxi Rare Earth”, mainly because the rare earth resources in Jiangxi Province are mainly concentrated in Ganzhou, and other counties and cities in the province only have a very small amount of rare earth resources.

Rare Earth elements and applications

Rare earths are non-ferrous elements. They are part of a group of elements group of metal elements known as lanthanides (15) in the periodic table of the chemical element and the yttrium and scandium elements are elements within the lanthanide group of elements. There are 17 elements in total within the lanthanide group of elements. Since the electronic structure of the rare earth element has an inner electron layer that is not completely filled, the physical and chemical properties of the rare earth element are very active, and the electron numbers of the 17 rare earth elements are different, so that each element has a unique quality. The rare earth elements are generally classified according to the difference in physicochemical properties between the rare earth elements and the separation process. One of the methods is to classify rare earths into light, medium and heavy rare earths. Light rare earth elements include lanthanum, cerium, praseodymium, neodymium and samarium; medium and heavy rare earth elements include europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, lutetium, yttrium, scandium, ytterbium.

From the current application of rare earth elements, light rare earth elements are mainly used in automotive catalysts, metal alloys, petroleum refining and other fields, while medium and heavy rare earths are mainly used in phosphors, permanent magnets, ceramics and other fields. The reason why rare earth elements give high value is because the application direction of rare earth elements is highly consistent with the direction of human science and technology development. Contemporary scientists often promote information, biology, new materials, new energy, space and ocean into six new technology groups, and rare earth elements in this large technology group have a broad application space.

The reserves of rare earth elements in rare earth minerals are not the same (the ratio of rare earth elements in minerals is called rare earth partitioning), and the rare earth ore containing higher proportion of light rare earth elements is generally called light rare earth ore. The rare earth ore with a high proportion of heavy rare earth elements is called a heavy rare earth ore. Ionic rare earth minerals have the highest reserves of heavy rare earth elements and are typical medium and heavy rare earth minerals.

The ionic type rare-earth is that the rare earth ions are adsorbed on the mineral in the form of ions, such as kaolin, montmorillonite, mostly like soil, and the content is about 0.3-0.05%, which can be eluted by electrolyte. The rare earth minerals in the southern provinces of Jiangxi and Guangdong are ionic, and mainly heavy rare earths, and the high value reserves are less valuable than the light rare earths in the north (Mao, Wu and Zhang 2016).

25. With a prospective reserve of 9.4 million tons and an available reserve of 2.3 million tons of ionic rare earth ores, respectively accounting for 40% and 35% of the national total, Jiangxi Province takes the largest reserves of rare earth in China and occupies a pivotal position in the world's rare earth sector. The ion-adsorbed medium-heavy rare earth ores in Jiangxi Province are mainly distributed in the eight counties of Xunwu, Dingnan, Longnan, Xinfeng, Anyuan, Ningdu, Qixian and Quannan in the southern part of the Province. Rare earth ores in these counties are distributed in a concentrated way and the proven and evaluated and predicted reserves account for more than 90% of the total of the whole province3.

26. The ion-adsorbed medium-heavy rare earth ores in Jiangxi Province have three characteristics: (1) With full composition, high quality, easy extraction, and low radioactivity, the ion-absorbed rare earth ores in Jiangxi Province have a rich content of medium-heavy rare earth elements closely related to high-tech industries and are the high quality resources

3 Guiding Opinions on the Development of Rare Earth Industry in Jiangxi Province, [2007]No.32

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 6 Final Report NᴧREE required for the development of the new materials industry. (2) The ore deposit features in horizontal mining with small mining depth, excellent ore body continuity and loose rock structure, implying great easiness and low cost of mining and smelting. (3) With broad application prospects, the ion-absorbed medium-heavy rare earth ores in Jiangxi Province are not only widely applied in the traditional sectors of metallurgy, leather, petrochemical, glass, ceramics, textile, and are of importance for high-tech fields such as the optical fiber,

superconductor, laser and aerospace industries.as well as new applications that will be developed in the future.

Source: TA team Production

B.1.2 REO mining in Jiangxi Province 27. The historical development of RE mining in southern Jiangxi Province has taken place over four - the stage of early mining, the stage of uncontrolled mining, the stage of integrated legally controlled mining and the stage of regulated mining4.

28. In the stage of early mining (from the 1970s to early 1980s), the mining activities were carried out by a small number of local state-owned units in a non-integrated and exploratory way featuring in small productivity.

29. In the stage of uncontrolled mining (from the mid-1980s to the mid-1990s), individuals, private enterprises, and state-owned enterprises among other entities were the main participants and the exploitation of rare earth resources entered a stage of rapid development. At the peak period, there were nearly 1,000 mines (mining sites) in Jiangxi and nearly half of the AREMs were generated in this stage.

30. In the stage of integrated (governed) mining (from the late 1990s to Year 2015), rare earth mining was carried out by mining companies with “mining licenses” under governmental Figure B-2 Map showing the distribution of the major mining areas of light and heavy rare earth ores in China

4 See "A Historical Review of Ionic Rare Earth Mine Development", Ding Jiayu, published on "Non- Ferrous Metal Science and Engineering", No. 8, 2012.

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 7 Final Report NᴧREE supervision. In this stage, totally 88 rare earth "mining licenses" were issued in Jiangxi Province. Meanwhile, 123 licenses in China, and Jiangxi Province accounted for 71.54%.

31. In the stage of regulated mining from 2016 to present, Jiangxi Province holds 45 rare earth mining licenses after the large-scale nationwide integration of the rare earth industry, ranking first in all Chinese provinces and regions. Among the 45 mining licenses of Jiangxi, 43 area held by Ganzhou Rare Earth Mining Co., Ltd. and 1 by Ganzhou Qianli Rare Earth New Energy Corporation and 1 by Wananjiang Tungsten Rare Earth Mining Corporation (both two companies are controlled by Ganzhou Rare Earth Mining Co., Ltd.). Therefore, Ganzhou Rare Earth Mining Co., Ltd. is currently the only rare earth mining enterprise in Jiangxi Province.

32. The total amount of rare earth mining in Jiangxi within the control quota5: The national total rare earth mining control index for Year 2018 is 120,000 tons, including 19,150 tons of ionic rare earth ores (mainly medium-and-heavy rare earth ores) and the total mining index for Jiangxi province is 8,500 tons, slightly lower than that of 9,000 tons for the Province for Year 2016. In the same period, the total amount of ionic rare earths in the country was 17,900 tons. It can be seen that the national total mining quota has increased by 1,250 tons in the past two years, mainly due to the increase in mining quotas in Fujian and Guangdong provinces, while the total mining quota in Jiangxi Province has decreased by 500 tons.

Table B-1 Control Quota for Rare Earth Mining in Chinese Provinces in Year 2018 REO (tons) S.N Province (Region) Rock type rare earth Ionic rare earth (mainly (light) medium-to-heavy) 1 Inner Mongolia 69250 2 Fujian 3500 3 Jiangxi 8500 4 Shandong 3600 5 Hunan 1800 6 Guangdong 2700 7 Guangxi 2500 8 Sichuan 28000 9 Yunnan 150 Subtotal 100850 19150 Total 120000

33. The total amount of rare earth mining in Jiangxi Province outside the control quota: Because the illegal exploitation (mainly refers to the mining behavior of enterprises that have not obtained mining qualifications and mining indicators) can obtain huge profits,

5 Although a rare earth mining quota has been assigned for Jiangxi Province, rare earth mining in the Province is substantially suspended. The event begins and ends with: In the six major rare earth groups with mining and business certificates (see the specific policy analysis in C.1), Ganzhou Rare Earth Group is the only local state- owned enterprise and non-listed enterprise. In order to quickly realize the list of enterprises to obtain a larger development platform, Ganzhou Rare Earth Group chose the “backdoor listing” method (i.e., a parent company (group company) injected assets into a listed company with a lower market value. Once a certain degree of controlling interest is received by the company, it will use its listed company status to get the parent company's assets for the share market. Usually the listed company will be renamed). However, due to the failure of the Ganzhou Rare Earth Group to pass the EIA approved by the Ministry of Environmental Protection before the listing, not only the backdoor listing plan was rejected, but also since 2016, the mining of rare earth raw materials has been completely suspended. Note: The progress report written by Wu Yiding and other experts in May 2019 has already elaborated on this issue, and has received the attention of the Jiangxi Provincial Party Committee and the Provincial Government, requesting the Ganzhou Municipal Government, the Jiangxi Provincial Department of Industry and Information Technology, Ecological Environment Department, and Science and Technology Department and other departments jointly studied how to promote the re-extraction of rare earth industry in Jiangxi Province.

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 8 Final Report NᴧREE illegal mining activities were once rampant. It has been a major task of the rare earth management department to combat illegal rare earth mining6. In 2013, the amount of legal rare earth mining in the country as a whole was about 10,000 tons in comparison with the actual mining of approximately 60,000 tons (Ganzhou Taxation Bureau 2015), implying the existence of extensive rare earth mining outside the control quota. Chen Zhanheng, Deputy Secretary-General of China Rare Earth Industry Association, believes that illegal mining of rare earth is very well concealed and incessant because the ionic rare earths in the southern parts of China are easier to mine and the mines are distributed in a decentralized way in the mountains. Over recent years, the market supply of rare earth in the southern parts of China has at least reached 40,000 tons per year, way too much bigger than the annual quota of 17,900 tons per year (Economic Information Daily 2015). Illegal rare earth mining is relatively serious. Taking cerium oxide as an example, the conservatively estimated global demand for cerium oxide is 1400 tons while the supply generated from the legal mining plan in Jiangxi Province is about 460 tons. Assuming that China accounts for 90% of the global supply, no less than 340 tons of cerium oxide is distributed per year beyond the control quota (ChinaIRN 2018).

34. Status quo of industrial development in Jiangxi Province: A complete industrial system consisting of rare earth mining, smelting, processing and geological exploration, engineering design, construction, product testing, scientific research and education has been developed and a complete rare earth industrial chain consisting of rare earth mineral products, smelting, separation products, rare earth metals and alloys, and rare earth materials has been built up for the development of rare earth new materials with specific properties and manufacturing of high-end application products, including rare earth magnetic materials and permanent magnet motors, rare earth luminescent materials, new energy and application components, rare earth functional ceramics, and catalytic polishing, etc.. Jiangxi Province has a strong competitiveness in rare earth magnetic materials and permanent magnet motors and has formed an industrial chain of rare earth metals: Nd-Fe-B alloys----permanent magnet motors (micro motors, mobile phone vibration motors, etc.). According to the introduction of Ganzhou City Bureau of Industry and Information Technology.

B.1.3 Abandoned mine area in Ganzhou 35. According to statistics of Ganzhou Municipal Government, as of the end of 2015, the total area of destroyed and damaged land in the mines of Ganzhou City (including rare earth mines) was 39,767 hectares, and the remaining mines that needed to be restored were 10,023 hectares. By the end of 2015, the remaining waste rock piled up was 62.02 million cubic meters, and the tailings storage capacity was 30.86 million cubic meters. The data given by Wu Jianfu and other scholars are: about 150 million cubic meters of tailings have not been properly treated in the mining of rare earth mines in southern Anhui, and the surface vegetation of nearly 100,000 hectares of cultivated land has been destroyed. It can be seen that there is a big gap between the data provided by the two. However, the data given by both the official and the scholars indicate the large area of abandoned mines that need to be managed in Ganzhou City, the large number of tailings piled up, and the serious damage to vegetation and land.

6 As the policies and regulations of Chapter B, China's laws stipulate that mineral resources including rare earths, belong to the state, and individuals or enterprises that want to mine need to obtain the consent of the state or purchase the mining power of a certain mine from the state. Due to the characteristics of abundant and easy-to-exploit rare earth resources in Jiangxi Province, some enterprises or individuals often steal rare earth mines in a rare earth mine somewhere in the deep mountains without the consent of the relevant state departments. Since such phenomena are very serious, the illegal exploitation of rare earths has become one of the major tasks of the rare earth management in Jiangxi Province.

B.2 The technology of Ganzhou rare earth mining and impacts on ecology

B.2.1 Ganzhou rare earth mining technology 36. In the process of rare earth mining and beneficiation in Jiangxi Province, three methods, which are pool leaching, heap leaching and in-situ leaching methods, are mainly used (Luo, et al. 2014). Pool leaching and heap leaching methods which were fully banned in Jiangxi in 2007, left more than 90 km2 of abandoned mines, including 302 AREMs and 191 million tons of tailing ores7.

(1) Pool leaching method

37. In the early 1970s, a laboratory report on pool leaching process for ionic rare earth minerals was published. The main process includes: stripping the top soil of the mountain with ionic rare earth, excavating the mountain, transporting the ore to the leaching tank (the process generally uses a cement pool with an area of about 12m2 and a volume of 10-20m3 as a leaching tank), and placing the prepared electrolyte solution in the leaching tank as leaching agent (generally solution of sodium chloride and ammonium sulfate), leaching or rinsing the rare earth ore containing "ionic phase" in the pool, and using the active ions in the solution to exchange for the "ionic phase" mineral carrier from rare earth ore and then generating a new state of rare earth.

38. The mother liquid containing rare earth, obtained after adding 'top water', flows into the liquid pool or mother liquid pool through conveyance pipe or channel, and then enters into sedimentation tank. Then precipitant and miscible agents are added to the sedimentation tank to obtain rare earth mixture. After the burning, a mixed rare earth oxide with a purity of 92% or above can be obtained. After leaching, the waste residue is removed from the leaching tank and discharged at a different site. Meanwhile, the supernatant in the pool is sent back to the leaching pool for reuse as leaching agent after proper treatment. The process is shown in Figure B-3.

7 Since the mining of rare earth minerals in Ganzhou began in the 1980s, it is impossible to provide a number of abandoned mines in a given year. Mining in some mines may use both heap leaching and pool leaching. At the same time, the Ganzhou Municipal Government has not carried out statistics on which type of abandoned mines, because the effects of pool immersion and heap leaching on the environment are very similar, and no special distinction is needed. Moreover, at present, Ganzhou mainly adopts revegetation for the restoration of abandoned mines. Therefore, they are concerned about the area that needs to be revegetated. As for which year and which type is not the focus of their concern. Therefore, we are unable to obtain the type and area of a certain type of abandoned mine in a certain year.

Stripping topsoil Leaching agent (ammonium Mining ores sulfate)

Water Pool Leaching Water Tank

Mother liquor Purifying purification ores Precipitant Residues (ammonium Rare earth bicarbonate) sedimentation

Reuse Filtration wastewater treatment

Burning

Mixed Rare earth oxides Figure B-3 Flowchart of Pool Leaching Process

Source: Mao Kezhen, Wu Yiding, Zhang Xiuzhi. Research on Rare Earth Industry Regulation, China Social Sciences Press, 2016 Edition

(2) Heap leaching method

39. In the heap leaching process, which can be traced back to the late 1990s, the solution is sprayed on the ores or waste rock heaps so that useful components in the ores or waste rock heaps are selectively dissolved and leached during the percolation process and then transferred into the product solution for further extraction or recycling. The basic process is a repetitive cycle of the following steps: surface soil stripping – ore mining and beneficiation - damming and heap leaching - leaching solution recycling. Similar to pool leaching method, heap leaching method, however, is of a larger scale and theoretically achieves a higher rare earth recycling rate.

40. Compared with the pool leaching, both processes are similar as in the Figure B-3, but there are some differences, as shown in Table B-2.

Table B-2 Difference between pool leaching and heap leaching Mining Process Scale Effectiveness Leaching agent Precipitant Pool leaching Generally, a Fragmented Sodium chloride oxalic acid cement pool with operation, low an area of about output and 12m2 and a efficiency volume of 10- 20m3 is used as a leaching tank.

Heap leaching The heap Due to the large- Ammonium ammonium leaching process scale operation, sulfate bicarbonate or puts the ore into the degree of oxalic acid a special heap mechanization, leaching field to resource leaching the rare utilization and earth. The size of production of the heap heap leaching leaching field are higher than can be up to those of pool dozens of leaching meters, and the diameter can also be dozens of meters.

(3) In-situ Leaching Process

41. The in-situ leaching process is a national key scientific and technological breakthrough during the 8th FYP period. Without destroying the surface vegetation of the ore body and excavating the ore without stripping the surface soil, a series of shallow wells (trenches) are used to inject the leaching solution, which selectively dissolves or exchanges and recycles useful components from heterogeneous ore body under natural burial conditions. From "in- situ" and "naturally buried", it is known that ore does not undergo any displacement. Compared with the pool leaching and heap leaching processes, in-situ leaching does not require stone blasting, ore handling and crushing, has lower production costs and high resource utilization rate, and at the same time can protect the ecological environment. In-situ leaching method is the method currently promoted for rare earth mining and beneficiation.

42. Figure B-4 is a general flow chart of the in situ leaching process. The first is to explore the stope, determine the approximate location of the rare earth in the mountain, and lay the injection well at the top of the mountain (as shown in Figure B-5), directly inject the leaching agent (ammonium sulfate solution) into the injection well from the high water, leaching agent permeate and diffuse into the voids in the ore body, and exchange rare earth ions adsorbed on the surface of the clay mineral to form a rare earth mother liquor, which flows out from the diversion hole (as shown in Figure B-5 there is a diversion hole around the mountain body), and the rare earth leaching is completed. Thereafter, the top water is injected to wash out the ammonium sulfate and the rare earth remaining in the ore body, and the formed low-depth mother liquid is treated and reused. The rare earth mother liquor flows into the collection tank of the plant through the pipeline, and then is precipitated, removed, and filtered for separation and smelting (Figure B-6).

43. Compared to heap dipping, in-situ leaching has many advantages and disadvantages. The differences are shown in Table B-3.

Table B-3 Comparison between heap leaching and in-situ leaching (Zou 2012) (Mao, Wu and Zhang 2016) Process Advantages Disadvantages Environmental damage type and controllability Heap leaching 1. The recovery rate 1. Severe damage to Evident of rare earth mining surface vegetation; 2. environmental and selection can Easily cause soil impacts but with theoretically reach a erosion and produce relatively easy high level; 2. A large- a large number of management scale production has tailings; 3. Waste been realized. water containing ammonia nitrogen and heavy metals, etc. Improper treatment will seriously pollute villagers' drinking water and farmland irrigation water; 4. May cause mudslides or mountains. Landslides and other phenomena; 5, the cost of the leachate pool is relatively high; 6, attention should be paid to the flood control and drainage of the heap dip tank. In-situ leaching 1. The amount of 1. It is technically Both dominant and excavation of difficult; 2. It has high hidden damage mountain works is requirements on mine coexist; dominant small, and the conditions and mine damage is easy to damage to the rock floor. If the rock control; hidden surface vegetation of bed is in poor damage is difficult to the ore body is small; condition, it will cause control 2. The recovery rate the rare earth liquid to of rare earth mining leaching underground and mining selected and cause pollution to by some mining the groundwater; 3. conditions can reach Mines with poor more than 70%; 3. No geological conditions, tailings are produced. rare earth leaching rate is low; 4, may cause landslides.

Prepared leaching agent top water

Liquid injection well

Ore body

Leachate collection ditch

Rare-earth poor leachate Rare-earth rich leachate

Figure B-4 Flowchart of the in-situ leaching process

Source: Mao Kezhen, Wu Yiding, Zhang Xiuzhi. Research on Rare Earth Industry Regulation, China Social Sciences Press, 2016 Edition

inject the leaching agent (ammonium sulfate solution)

diversion hole

diversio n hole

Rock Bed exchange rare earth ions

Ground water

Figure B-5 In-situ leaching process (mountain injection and rare earth mother liquor collection)

Source: TA team Production

Figure B-6 The injection well, the diversion hole, the mother liquor collection pool and the filtration sedimentation tank, and the rare earth mother liquor collection tank and filtration sedimentation

Source: TA team field photos

B.2.2 Types of AREMs in Ganzhou and their impacts on local ecology 44. Both the heap leaching and pool leaching process will cause extensive destruction of vegetation and form a tailings pond (field). Because Ganzhou is located in the subtropical monsoon climate zone, the terrain is dominated by mountains, hills and basins. In some years, the average annual rainfall reaches 2000 mm. High rainfall may cause natural disasters such as soil erosion, debris flow, and landslides in the mining area. Although the in-situ leaching process causes less damage to the vegetation of the mountain, damage to the soil, surface water and groundwater is much greater than that of the heap leaching and pool leaching process, and the damage of the abandoned mine is more controllable.

(1) Pool leaching and abandoned mines

45. In general, the pool leaching mining and beneficiation process causes damages to vegetation in an area of 0.017 ha to 0.020 ha to produce 1 ton of mixed rare earth oxide, resulting in serious damages to the surface vegetation, stripping of surface soil, and loss of natural protection functions. Many open pits, leaching ponds (fields) and tailings yards are formed during the excavation of ore-containing hills, leaching pools (fields), and discharge of tailings, and the large volume of tailings generated in the process occupy a large area of land. It has been reported that the 1,500 – 2,400 tons of tailings are generated for production of one ton of mixed rare earth oxide and will involve a land occupation of 0.020-0.033 ha if stockpiled at an average thickness of 8m (Luo, et al. 2014) (Du 2002). Figure B-7 shows an example of pool leaching at an abandoned mine in Ganzhou Prefecture.

46. The soil and water loss caused by rare earth mining increases the frequency of natural disasters such as mudslides, landslides and floods, leading to serious damages to the natural environment. Meanwhile, improper treatment of wastewater from the process will seriously pollute water for domestic and production usage and ecological restoration is extremely difficult. In addition, with a reuse rate of 35% to 40% only, the pool leaching process, which, in the early times, was implemented in such a way that mine deposits are occupied by leaching pools, deposits easy to mine are mined while those difficult to mine are abandoned, and rich deposits are mined and poor ones abandoned. Such a low resource recovery rate has caused tremendous waste of resources, therefore increasing the difficulty of mining and beneficiation of ion-absorbed rare earth ore in the southern part of China, and new resources had to be sought from other regions (Xiao, Liu and Zhang 2014).

Figure B-7 Pool leaching of an abandoned mine in Anyuan County, Ganzhou City Source: Baidu Images Gallery

(2) Pool leaching and abandoned mines

47. Involving the use of large machinery for excavation and loading in the production process, the heap leaching process generally has a larger production capacity than pool leaching. In addition, large storage sites are required and occupied and the surface soil stripping causes severe damages to the surface vegetation. The tailings generated from the heap leaching process are left on the heap leaching site and tailings extensively discharged in the event of any dam failure will cause more significant damages to the ecological environment than the pool leaching process. It is estimated by some scholars that the heap leaching process causes serious ecological damages, with surface vegetation in an area of 200m2 damaged, surface soil in a volume of 300m3 stripped and tailings in a total volume of 2000m3 generated and soil erosion in a total volume of 12 million cubic meters caused per year by the production of one ton of rare earth (Luo, et al. 2014). Examples of heap leaching are shown in Figure B-8 and Figure B-9.

Figure B-8 Heap leaching process and an abandoned mine in Xunwu, Ganzhou City Source: Ganzhou Natural Resources Bureau

Figure B-9 Heap leaching and a tailings site in Anyuan County, Ganzhou City Source: Ganzhou Natural Resources Bureau

(3) In-situ leaching and abandoned mines

48. The in-situ leaching process has great advantages for protection of surface plants. With no tailings discharged involving little waste soil, the in-situ leaching process can raise its utilization rate of rare earth resources to more than 75%. However, due to the high technical content and complexity and the shortage of technical forces in some mine areas adopting the

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 17 Final Report NᴧREE in-situ leaching process, the process is not well mastered and most of the solution collection systems are not well designed and arranged, resulting in serious loss of rare earth resources and environmental pollution caused by heavy metal ions generated in the process and discharged into local water and soils. One of the most outstanding advantages of in-situ leaching is that it can effectively control soil erosion. However, in this process, shallow excavation of surface soil and manual trampling still destroy 1/3 of surface vegetation and the leaching solution will infiltrate into the soil and damage plant roots, resulting in stagnation of plant growth and loss of the function of water and soil conservation.

49. In the meanwhile, improper level control and excessive volume of leaching liquid, penetration of liquid injection wells, and poor fluidity of the liquid collection ditches, possible landslides during rain storms will not only result in heavy loss of leaching liquid but also bring negative impacts on the environment from the large amount of sediments discharged, causing greater potential safety hazards.

50. In areas with loose underground rock formation, ammonia nitrogen in the ion exchanger may leak easily downward, causing serious groundwater pollution. For example, some scholars conducted experiments on hills in a mining area in Jiangxi and found that only 11% of the ammonium sulfate is used in the products and about 70% of such substance enters the ground and infiltrate into the environment, causing irreversible pollution of local groundwater. It was also found by the team that the unorganized emission of VOCs is common in the smelting process, causing pollution of a certain degree to the atmospheric environment of the mine area (Liao 2018).

51. It is indicated from the results of relevant researches that the content of ammonia nitrogen in the wastewater from rare earth mining can be as high as 3500mg/L~4000mg/L and even remains at 80mg/L~160mg/L after dilution by surface water and groundwater, much higher than 25mg/L, the concentration suitable for crop growth. In addition, due to the damages of vegetation and soil, the surface water infiltration is reduced. The bare rock causes the rise of ambient temperature of the mine and the increase of evaporation, which may lead to the loss of balance of surface water, groundwater and atmospheric water cycle and change of the water storage structure of the mining area (Gao and Zhou 2011) (Yang, Liao and Jin 2013)

B.2.3 Summary 52. Each mining process has different impacts on the ecological environment. The extent and impact of the impact is different (as shown in Table B-4). Unlike pool leaching and heap leaching, in the treatment of abandoned mines left over from in-situ leaching processes, the prevention and control of surface water and groundwater should be given greater attention. In the publication of "Rare Earth Status and Policy of China" issued by the State Council, a profound summary of the ecological and environmental impacts caused by three different rare earth mining processes in PRC: early rare earth mining, smelting, separation, production processes and technologies are lagging behind. Serious damage to the surface vegetation, causing soil erosion and soil pollution, acidification, resulting in crop yield reduction or even failure.

53. At present, although more advanced in-situ leaching processes have been adopted, a large amount of pollutants such as ammonia nitrogen and heavy metals are inevitably generated, destroying vegetation and seriously polluting surface water, groundwater and farmland.

54. One point that was made earlier in this report is the fact that 1,500 to 2,000 tons of tailings are generated to produce one ton of mixed rare earth oxides so that any expansion of RE production will necessitate a clear plan of action for tailings management.

Table B-4 Types of environmental impacts of mines according different mining processes Environmental impact Pool leaching Heap leaching In-situ leaching type Vegetation damage Serious Serious Minor Soil erosion Serious Serious Minor Soil acidification Serious Serious Serious Tailings accumulation Serious Serious Minor Water Surface Serious Serious Serious pollution water Groundwater Minor Minor Serious risk Geological disaster Serious Serious Minor

B.3 Impacts caused by AREMs on local residents

55. International and Chinese research indicate that the impacts of AREMs on local residents are mainly realized through groundwater and surface water pollution and the degradation of soils while overall water having a greater impact on the local population.

B.3.1 Domestic water 56. Impacts on domestic water for residents of local communities. According to a survey of rare earth mines conducted by scholars and the media, drinking water around the mining area was polluted to different degrees. For example, in a survey conducted by a journalist of the China Securities Journal in Shangbao Village, Jibu Town, Ganzhou County, Ganzhou City, it was found that water extracted from the wells by local residents is salty during rare earth mining and there was a layer of white powder on the surface of the boiled water. With such a condition, the villagers had no choice but to pick up water or divert water from the mountains where there was no or little rare earth mining (China Securities Journal 2015).

57. In some areas with illegal mining, pollution is even more serious. In one case of illegal rare earth mining, sewage discharge resulted in serious non-compliance of ammonia nitrogen and heavy metal manganese discharges into the downstream surface water, higher than the standard limit by a factor of 384 and 92.25 respectively to the maximum, causing major damages to the ecological environment. Local residents even did not dare to drink water (Chizi Magazine 2018).

B.3.2 Irrigation water 58. Trace rare earth liquids contain ammonia nitrogen is beneficial to the crop productivity, but may if excessively applied, lead to harvest failure. According to an interview by a CCTV reporter, rare earth liquid is flushed into farmland in the rainy season, causing rice and other crops to flourish, but with little or no harvest. The rice, even if there are any occasional harvests, is found black after milling (China Quality Network 2012).

59. In a report by a Netease (https://www.163.com/) financial reporter titled "Pollution from rare earth mining in Ganzhou causes serious damages to more than 70% of arable land", as indicated in a government document on rare earth mining control in a county under the jurisdiction of Ganzhou City, rare earth mining has resulted a net increase of 37,000 mu of local soil erosion, flooding of farmland in a total area of 4000 mu, blockage of channels in a total length of 34,000 m, direct impacts on more than 30 administrative villages and more than 50,000 villagers and the cost of pollution management is approximately 900 million yuan for the short term (i.e. the Twelfth Five-Year Plan period from 2010 to 2015) and about 800 million yuan for long-term (i.e., the '13th Five-Year Plan period of 2016-2020)." (Netease 2012)

60. In some AREMs, rainwater mixed with rare earth liquid entered the fish ponds of the local villagers and fish died. The arable land of many villagers, affected by rare earth mining,

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 19 Final Report NᴧREE becomes no longer arable. As a result, arable land and farmland are abandoned and local villagers can only leave their hometown to make a living.

B.3.3 Physical health of local residents 61. Research by scholars including Wu Lei (L. Wu 1999) and Jin Shulan (Jin 2014) indicates that the incidence of leukemia in the rare earth mining area of Ganzhou is closely related to the presence of rare earth elements in drinking water. With the rare earth elements present in groundwater, the total daily average intake of rare earth elements by local residents from crops and well water amounts to 295.33 μg/(kg•d), far much higher than the critical value of safe dose and subclinical damage dose, resulting in physical accumulation of rare earth elements and very high health risks for the local population. Studies by Tu Ting and other scholars indicate that groundwater pollution in the rare earth mining area of Ganzhou has caused serious impact on the health of residents in the local community. Long-term low-dose intake of rare earth elements has toxicological effects on the brain, liver, bone and immune function of residents, and also promotes the incidence of diseases such as leukemia; ammonia-nitrogen, nitrate-nitrogen, nitrite-nitrogen and sulfate have carcinogenic and non- carcinogenic effects on residents (Tu, et al. 2017).

62. According to an interview with China Central Television on a village in Longnan County, Ganzhou City, the rare earth mine affected the drinking water of the local villagers, resulting in the blackening of the rice, as shown in Figure B-10. In the interview, the villagers reflected that the wastewater discharged from rare earth mines is the main cause of liver disease in many villagers8.

Figure B-10 China Central Television interviewed the villagers of Longnan County Source: CCTV

63. Long-term exposure to rare earth mining areas not only affects the health of residents, but also negatively affects child development. Fan, et al. (2004) measured the growth and development of children aged 7-10 years in a rare earth mining area and control area in Jiangxi Province. It is found that there is obvious accumulation of rare earth in the blood of children in rare earth mines, which is likely to have a negative impact on their health. Specifically, 15 kinds of rare earth elements in children's blood samples can be detected, and the total rare

8 Ganzhou, Jiangxi: a village that has been forced to retreat by rare earth pollution, China Net. http://www.china.com.cn/v/news/2012-03/14/content_24896765.htm

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 20 Final Report NᴧREE earth content of children in rare earth exposed areas is 1.73 times higher than that of the control group. The vital capacity and blood pressure of children exposed to rare earth were lower than those of the control group. The humeral immunity of children exposed to rare earths changed; the IQ score of children in rare earth exposed areas was significantly lower than that of the control group; the proportion of children with high intelligence decreased, and the proportion of children with low intelligence increased. Peng Ruiling and Pan Xiaochuan's research also have similar conclusions: fifteen kinds of rare earth elements can be detected in the hair of 0-3 year’s old infants in the rare earth mining area. The total amount of rare earth and 15 rare earth elements in the hair of the children in the mining area are all significant higher than the control group (Peng and Wang 2005) (Peng, et al. 2002).

B.3.4 Property Safety of community residents 64. The accumulation of tailings poses a threat to the safety of residents' property. The slopes of tailings in abandoned rare earth mining area are between 30°-50°. Most of the slopes have no direct threat to the object, and a small number of stacked slopes are close to the road, posing a safety hazard. Due to the erosion of the surface water during the rainstorm, local collapse may occur, posing a threat to people's lives and property. At the same time, the resulting large amount of sediment becomes an important material source of debris flow.

65. Due to serious soil erosion, the river bed is becoming higher which not only seriously affects the flow cross section of the river channel, but also may affect flood discharge and cause flood disasters. If the river mud is not cleaned up in time, it will further increase the riverbed and reduce the flooding capacity of the river. In the event of heavy rain and other weather, the river that loses its ability to discharge floods poses a potential safety hazard to the lives and properties of local residents (Liang, QIanchen and Tao 2018).

B.4 Necessity of accelerating remediation of Ganzhou mines

B.4.1 Accelerating the remediation of Ganzhou mine is conducive to ensuring the water quality of important river basins in China 66. In the " Several Opinions of the State Council on Supporting the Revitalization and Development of Previous Central Soviet Area including Southern Jiangxi" Ganzhou City was positioned as "an important ecological barrier in southern China", which shows its important position in the ecology of southern China. On the one hand, accelerating the remediation of Ganzhou mine is conducive to the construction of important ecological barriers in the southern region, including Ganzhou, and can play a positive role in improving and optimizing the environment in southern China. On the other hand, strengthening the management of the AREMs in Ganzhou is conducive to ensuring the water quality of the middle and lower reaches of Gan River and the middle and lower reaches of Yangtze River 9 and Dongjiang River (drinking water in Hong Kong)10.

9 The largest river in Jiangxi Province is the Gan River, and its birthplace is in Ganzhou. The Gan River is also the main water source for the Poyang Lake, as the largest freshwater lake in the country, and Poyang Lake is one of the main tributaries of the middle and lower reaches of the Yangtze River. Therefore, the ecological quality of Ganzhou is directly related to the safety of the entire ecosystem of Jiangxi Province and the Yangtze River. 10 Dongjiang River originates from the territory of Ganzhou City, Jiangxi Province. It is one of the three major water systems in the Pearl River Basin and an important source of drinking water for the Pearl River Delta and Hong Kong. Dongjiang's annual water supply to Hong Kong is between 1.1 billion and 1.5 billion cubic meters, accounting for 60% to 80% of Hong Kong's water consumption.

B.4.2 Accelerating the remediation of Ganzhou mine is an important concern of the central government for the construction of ecological civilization in Jiangxi Province 67. Of the 61 specific problems sorted out by the Central Environmental Inspector's feedback in 2017, 10 ecological problems involving rare earth mining and abandoned mining areas accounted for 16.4%. The management and restoration of rare earth mining and abandoned mining areas will be an important part of the construction of the ecological civilization pilot zone in Jiangxi Province. In the report of the 19th National Congress, the concept of “five major developments” was further clarified, and the emphasis on the development concept of “green” reached an unprecedented height. Therefore, accelerating the remediation of Ganzhou mine is an important part of the “green” development concept of Jiangxi and Ganzhou.

B.4.3 Accelerating the remediation of Ganzhou mine is conducive to improving the production and living conditions of community residents 68. Residents around abandoned mines, whether in production, livelihood, health, or life and property safety, are affected by abandoned mines, and the villagers have paid a lot of money for this. According to a survey of local villagers in Ganzhou by Wu, et al. (2018), 93.80% of the villagers believe that the ecological restoration of the mining area is extremely urgent and the social risk is relatively high. Therefore, accelerating the remediation of Ganzhou mine in Zhangzhou will help improve the production and living conditions of local villagers, reduce the economic losses of farmers, and improve the health of the villagers. Moreover, it is a supportive project to achieve sustainable development of the mining economy and a livelihood project to improve the ecological environment.

B.5 Summary

69. After introducing the history and process of mining in Jiangxi and Zhangzhou, this chapter focuses on the ecological and social impacts of different mining processes (different abandoned mines). The pool leaching and heap leaching processes have been banned since 2007 due to serious vegetation damage, soil erosion, soil acidification, and water pollution. However, the damages caused to the ecological environment and the impacts on the production and life of the villagers still persist. At present, the in-situ leaching process, although there are few advantages such as less damage to surface plants, no tailings discharge, less waste soil, and high utilization rate of rare earth resources, cannot avoid soil acidification and high heavy metal content and water pollution (especially existing problems such as great groundwater pollution risks). Accelerating the remediation of mines in Ganzhou is conducive to the implementation of the central government's concept of “green” development, and is conducive to the construction of the ecological civilization pilot zone in Jiangxi Province (only three provinces in the country have been designated as pilot zones), and to improving the production and health conditions of local villagers.

C Measures, results and problems of abandoned mine remediation in Ganzhou

70. This chapter firstly, through review the policies on the remediation of abandoned mines issued by various levels of government in PRC, understands the requirements of the governments at all levels regarding objectives, contents and measures. Secondly, it analyzes measures taken by Ganzhou in abandoned mines in two aspects: soil and vegetation restoration and water quality improvement; subsequently, the achievements of remediation are explained from the aspects of overall ecological environment improvement, ecological poverty alleviation, industrial land increase, and participation of social entities. Finally, it analyzes five major problems of abandoned mines remediation in Ganzhou.

C.1 Requirements of the governments at all levels to mines remediation

71. The issue of the remediation of abandoned mines has received the attention of governments at all levels in PRC, and various policy documents have been issued for this purpose. Since the documents involved are both comprehensive documents and documents specifically for mine remediation, in order to avoid a simple statement of the policy (see Appendix H.3 for more details), this section sorts out the existing policies based on the objectives, main content and initiatives of abandoned mine management.

C.1.1 Objectives of abandoned mine remediation 72. By 2020, it is to comprehensively eliminate Class V and worse than Class V water bodies and to significantly reduce the area and intensity of soil erosion (“National Ecological Civilization Experimental Zone (Jiangxi) Implementation Plan”).

73. By 2020, the geological restoration rate of abandoned mines in history and the land reclamation rate of mining areas will increase by 10% compared with 2015 ("13th FYP for National Economic and Social Development of Jiangxi Province").

74. Before the end of 2020, complete the task of restoring and managing the centralized contiguous AREMs of more than 10 hectares (“Jiangxi Province Implements the Central Environmental Protection Supervision Team Supervision Feedback Correction Plan”).

75. By 2025, a comprehensive dynamic monitoring system will be established, and the management of historical issues will achieve remarkable results, forming a new situation of mine geological environment protection and governance that “no longer owes new environmental debts and accelerates the repayment of past debts” (“Reinforcing the restoration of mine geological environment and Guiding Opinions on Comprehensive Governance).

C.1.2 Main procedures for abandoned mine remediation (1) Comprehensive utilization and reclamation of tailings

76. Strengthen the comprehensive utilization of tailings and associated resources, and improve the comprehensive utilization rate of resources (“Rare Earth Industry Development Plan (2016-2020)”). Strengthen the reclamation of historical rare earths, tailings ponds, mining sites and subsidence pits ("Ganzhou City Mineral Resources Master Plan (2016-2020)").

77. Implement the national strategy of the construction of the ecological civilization pilot zone in Jiangxi Province, strengthen the restoration of mine management, and increase the control of the ownerless tailing ponds (the “Thirteenth Five-Year Plan for National Economic and Social Development of Jiangxi Province”).

(2) Water quality improvement

78. Complete the safe drinking water in rural areas of Ganzhou City as soon as possible, and make significant progress in infrastructure construction ("Several Opinions of the State Council on Supporting the Revitalization and Development of Previous Central Soviet Area including Southern Jiangxi").

(3) Vegetation restoration

79. Strengthen the restoration of vegetation in abandoned mines, reduce soil erosion, and prevent geological disasters (Guidelines on Strengthening Mine Geological Environment Recovery and Comprehensive Management). Full implementation of mine rehabilitation, regreening and mine geological disaster prevention and control work (Technical Guide for Detailed Survey of Mine Geological Environment in Jiangxi Province). The government has increased its support for the restoration of vegetation and ecological restoration projects in abandoned mines ("Several Opinions of the State Council on Supporting the Revitalization and Development of Previous Central Soviet Area including Southern Jiangxi ").

(4) Ecological poverty alleviation

80. Increase the support for special funds for watershed ecological protection compensation in Luoxiao Mountain concentrated poverty areas, Poyang Lake and Dongjiang source area, and establish compensation funds and support poverty alleviation (the National Ecological Civilization Experimental Zone (Jiangxi) Implementation plan").

C.1.3 Measures for abandoned mine remediation (1) Construction of tailing water treatment station

81. By the end of 2020, complete the construction and operation of 9 tailing water collection and utilization stations in the Longnan Guanxi Small Watershed (“Jiangxi Province Implements the Central Environmental Protection Inspector Supervision Inspector Feedback Improvement Plan”).

(2) Increase financial investment

82. The state has increased financial support for the restoration of vegetation and ecological restoration projects in abandoned mines. For example, the trial site of this project is Dingnan County, and the Futian Industrial Park in its jurisdiction is one of the pilot projects for the comprehensive utilization of rare earths in Ganzhou issued by the Ministry of Finance, the Ministry of Industry and Information Technology and the Ministry of Land and Resources. The project has a management fund of 57.6749 million yuan, of which the central government funds are 36.696 million yuan, and the local self-raised funds are 20.805 million yuan ("Several Opinions of the State Council on Supporting the Revitalization and Development of Previous Central Soviet Area including Southern Jiangxi").

83. Increase financial support for the comprehensive management of geological environment and ecological restoration of abandoned mines in poverty-stricken areas; support poverty-stricken counties to make full use of ecological restoration resources such as abandoned mines to develop suitable industries (“Jiangxi Province Implementation Plan for Promoting Ecological Protection and Poverty Alleviation”).

84. Mobilize multi-channel capital investment and increase the recovery of geological environment management of historical mines (“Ganzhou City Mineral Resources Master Plan (2016-2020)”).

(3) Establish mines remediation mechanism

85. Focus on improving the economic mechanism for the development of compensation and protection, and construct a new mechanism for protection and governance involving the government, enterprises and society; encourage third-party governance, and local governments and mining enterprises may adopt the method of “paying by responsible persons and professionalizing governance”. The resulting geological and environmental problems of the mine are managed by professional institutions (“Guiding Opinions on Strengthening the Restoration and Comprehensive Management of Mine Geological Environment”).

86. Explore the establishment of an ecological compensation mechanism, a land transfer mechanism for AREMs, a monitoring and early warning mechanism for resource and environmental carrying capacity, and an evaluation and evaluation mechanism for leading cadres that reflect the requirements of ecological civilization (“Ganzhou City Mineral Resources Master Plan (2016-2020)”).

87. Defining the project of AREMs without ownership, the county (city, district) people's government shall bear the responsibility for management and protection (“Notice on Printing and Distributing the Management Measures for the Late Management and Management of Waste Rare Earth Mine Environmental Treatment Project in Ganzhou City (Trial)”).

(4) Introduce wastewater discharge standards

88. The Natural Resources Department of Jiangxi Province has issued discharge limits of main water pollutants (including 16 indicators such as PH value, phosphorus, ammonia and nitrogen) for ionic rare earth mining enterprises to reduce the impact of rare earth mining activities on water quality ("Emission Standards for Water Pollutants in Ion-Type RE mines).

C.2 Jiangxi Ganzhou Abandoned Mine Remediation Initiative

89. According to the policy documents and targets and measures proposed by the State and the Jiangxi Provincial Government on the restoration of abandoned mines, Ganzhou has taken measures to repair soil and vegetation and improve water quality in the restoration of abandoned mines. (Appendix H.4).

C.2.1 Measures for soil and vegetation remediation (1) Soil and water conservation

90. Prior to any construction activities, comprehensive consideration should be given to factors such as natural conditions, human life and development direction, and appropriate engineering methods should be selected according to the needs of actual efficacy. (1) Retaining walls should be erected in important areas such as mining sites, dumping sites and tailings ponds to prevent the occurrence of mudslides, collapses, landslides and other natural disasters; (2) Dams in the waters of mining areas should be built in a rational way to intercept sediment; Slopes with unstable structure shall be subjected to slope protection works; (3) Drainage facilities in the mining area should be improved, and grit chambers should be provided to achieve separate discharge of clear water and sewage and reduce soil erosion. Flood control and drainage works should be constructed as a supplementary measure; (4) It is also necessary to take engineering measures for topsoil treatment, site leveling, mine pits backfilling, and terrain and landform remediation, etc.

(2) Soil improvement

91. For soil improvement, the main initiatives include physical improvement, chemical improvement and biological improvement. (a) Physical improvement, mainly before mine

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 25 Final Report NᴧREE selection, the surface soil and sub-layer soil are taken away to avoid damage to the soil structure, reduce soil nutrient loss, and wait for the restoration of the mining area ecology before using the removed soil. (b) Chemical improvement, mainly to strengthen soil fertility, reduce the toxicity of heavy metals, and comprehensively adjust soil pH. For example, adding calcium sulfate or calcium carbonate to the soil can antagonize heavy metal ions, prevent plants from absorbing large amounts of heavy metals, and ensure that plants can grow stably. In adjusting the pH of the soil, calcium carbonate and slaked lime can be used for the neutralization reaction. (c) Phytoremediation, using soil organisms to attract, degrade or enrich the pollutants in the identification, and simultaneously realize the reconstruction of the soil matrix in the abandoned rare earth mining area, so that the soil nutrient elements can be increased and the toxic pollutants can be treated. It mainly includes microbial remediation technology, animal remediation technology and phytoremediation technology. Currently in Ganzhou, phytoremediation techniques are a common approach, and the key to this technology is the selection of plant species.

(3) Plant selection

92. In the selection of plants, the following principles are generally followed: (a) Selecting local and native plants is necessary to not only meet the requirements of local ecological environment development, but also effectively prevent invasion of foreign organisms. (b) For areas with massive soil erosion, it is necessary to select strong germination and fast-growing plants in the initial stage of soil improvement, such as saplings and Pseudosasa amabilis var.convexa , which can effectively ensure slope stability. (c) It is necessary to select suitable plant species according to the soil content of the mining area for improving soil quality. For example, legumes and arborescens with strong nitrogen fixation ability may be selected to not only effectively improve the soil texture and structure, but also improve nutrients in soil. (d) When selecting plant types, it is necessary to select plants rich in rare earth elements and heavy metals. For example, Dicranopteris Linearis can effectively reduce the free metal concentration of the soil and prevent its impacts on the plants so that a high-quality growth condition is provided for the plants in the mining area to further stabilize the plant community.

93. In many abandoned mining areas in Ganzhou, mixed grass seeds are generally used as part of the remediation process. There are mainly grass seeds (per one thousand square meters): 3 kilograms of broad-leaved garuda; 2.5 kilograms of ryegrass and cosmos; 2 kilograms of sage, pigpea, dog's root, and geranium; 1.5 kilograms of masson pine.

C.2.2 Measure for improving water quality 94. The issue of rare earth tail water treatment has already raised concerns in Jiangxi and tail water treatment stations are already built up in some main rare earth production areas.

(1) Construction of tailing water treatment station

95. In Dingnan County, for example, scrapers, plate and frame filter press, and air compressor, mechanical mixers, submersible mixers, submersible pumps, centrifugal blowers, ammonia nitrogen meters and other related equipment have been installed at the Mashanyu wastewater treatment station involving a total investment of about 23 million yuan. This rare earth tail water treatment station involves a monitored wastewater volume of about 2700 m3/d. The average monitored value of ammonia nitrogen is 46 mg/L in the influent and 1.2 mg/L in the effluent after treatment. The rare earth tail water treatment cost is 5.33 yuan / m311. The Small Watershed Rare Earth Mine Tail Water Treatment Project constructed in Huangsha Village, Huangsha Township of Longnan County, Ganzhou City, for example,

11 Longnan actively promotes the construction of rare earth tail water treatment station, the official website of Longnan County Government: http://www.jxln.gov.cn/zwgk/zdxm/201905/t20190520_437773.html

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 26 Final Report NᴧREE collects tail water from the rare earth mines in the small watersheds of Gongdadong, Gongdaxi and Longjiang and involves a total land occupation of 151.8mu. Constructed in the form of government procurement service, the Project involves a total investment of CNY 150 million and processes 40,000 tons of tail water per day, accounting for 71.4% of the total tail water treatment capacity of the county as a whole. Figure C-1 illustrates a tailing water treatment in Longnan County.

Figure C-1 Tail water treatment station for abandoned rare earth mines in Longnan County of Ganzhou City

Source: Longnan County Government

(2) Treatment technology and principles

96. The treatment process as adopted in the system is a two-stage percolation coupling treatment technology aiming to remove ammonia nitrogen in the rare earth tail water. The wastewater first enters the aerobic nitrification layer composed of the membrane filter material through the primary water-dispersion layer, and then is sucked through the filter and the bio- membrane and after the aerobic nitrification layer is dried, oxygen is supplied to the nitrifying bacteria through intermittent delivery of air in an appropriate amount. Under anoxic conditions, an organic carbon source is provided for denitrification, which generates carbon dioxide to provide sufficient inorganic carbon source for the growth and reproduction of nitrifying bacteria.

C.3 Outcomes achieved

97. As of March 2019, Ganzhou City has completed a total of 91.27 square kilometers of AREMs, including 19.1 square kilometers in 2017 and 15 square kilometers in 2018. The environmental problems of AREMs in history have been basically solved12. Five tailing water treatment stations have been built to significantly improve the problem of surface water contamination by rare earth tail water. The water quality excellent rate (achieved or better than

12 Data provided by the Ganzhou Mining Management Bureau

Class III water bodies) of 13 surface water sections included in the national assessment was 98.07%13.

C.3.1 Significant improvements have been made to the overall ecological environment 98. Ganzhou restored the AREMs into forest land and cultivated land, through land remediation, land leveling and reclamation, green plants such as eucalyptus, pine and grass are planted. The vegetation coverage rate in the mining area has increased from 4% before treatment to over 70% of the area, and the production and living environment of the people around the mining area has been significantly improved. (Jiangxi Daily 2018);

99. The soil erosion rate has decreased; and the soil erosion modulus has dropped from 9386t/km2 in the past to 4138t/km2 at present (Liu, Yang and Leng 2015). Water quality of some rivers has been improved to Class III water quality standard; and the overall ecological environment has been significantly improved. In Xunwu County, for example, the overall soil erosion in the mining area has dropped by 91% thanks to measures taken such as remediation of mine terrain, construction of retaining walls and intercepting drainage ditches, and restoration of side slopes and vegetation. No large-scale gullies or slope collapses occurred and the hidden hazards of geological disasters such as large-scale collapses and mudslides have been eliminated (Gannan Daily 2018).

100. According to the research of Wang Liyan and other scholars, the soil pH value of the waste rare earth mining area without vegetation restoration is less than 5.0, showing strong acidity. After selecting suitable plants, the soil acidity is somewhat relieved, and the soil nutrients in the rare earth mining area are improved after the vegetation is restored (Wang, et al. 2016). Lu Xianghui and other scholars found that in the tailings of the abandoned rare earth mining area in Xunwu County, Ganzhou City, after 3-4 years of planting eucalyptus, the herbaceous plant species increased significantly, and the pH value of the 0-60 cm deep soil layer increased significantly. The acidity has been improved to some extent, and the soil nutrient content has been significantly improved (Lu, et al. 2016).

C.3.2 Attaining “ecological restoration + precision poverty alleviation” 101. The restoration of AREMs does not only protect the lives and property of the people, but also drives the employment, investment and income levels of the local residents. In Huangpu Town of Ningdu County, for example, AREMs in a total area of 2.8 km2 have been treated. The local government, based on the local soil quality and climatic conditions, introduced peony planting enterprises and encouraged villagers to invest in such enterprises and develop a forestry and agriculture park which integrates rural tourism, leisure and recreation, and culture and health care. These developments do not only generate more employment and investment opportunities for the poor households, but also play a leading role in industry-driven poverty alleviation to help the villagers to get out of poverty. These measures illustrate how ecological restoration may contribute to precision poverty alleviation. For example, there are more than 300 acres of AREMs in Longbu Village, Shashiwai Town, Zhanggong District which potentially could provide a basis for infrastructure development.

102. After the land transfer, an ecological agricultural park is built. The park carries out production management in accordance with green ecological agricultural standards, and blueberry, grape and other products have passed organic product certification. In order to promote the poverty-stricken households to get rich together, the park has set up professional cooperatives to provide seedlings, free planting techniques and blueberry buyback model. The

13 The 2018 work summary of the Ganzhou Ecological Environment Bureau and the 2019 work plan, the official website of the People's Government of Ganzhou City, http://www.ganzhou.gov.cn/c100074/2019- 03/05/content_265369634dde49c1b52a507d7d5298ff.shtml

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 28 Final Report NᴧREE recovery price is 5% higher than the market price, and the poverty is solved. There is no problem with the company's technology and no sales channels. At present, there are 30 members in the cooperative.

C.3.3 The short supply of industrial land has been significantly mitigated 103. In all the concerned counties and cities, the AREMs have been remediated by means of terrain restoration, land leveling and construction of retaining walls and converted into construction land to meet the construction needs of local industrial parks. For example, in Dingnan County, the principal works of the abandoned rare earth mine comprehensive treatment project in the Futian Industrial Park has been completed. Thanks to the project, significant improvements have been made to the ecological environment of the mining area and nearly 3000 mu of industrial land has been created in the county, which is expected to alleviate the shortage of land for industrial parks. It is estimated that 30 enterprises will be introduced. Therefore, this project has achieved the effect of “one stone, three birds” in terms of land use, resource reuse and environmental protection14.

C.3.4 The number of social forces involved in the treatment of AREMs has increased significantly 104. In all counties and cities, various policies have been introduced to attract social forces to participate in the treatment of AREMs (refer to text box Cases of achievements in Xunwu County). In Dingnan County, for example, preferential policies are issued to provide financial support in terms of land use and infrastructure construction, and private enterprises, scientific research institutions, individual villagers, etc. are encouraged to participate in treatment of abandoned mines on the basis of rationalizing the relationship between forest rights and mineral rights and revitalizing forest rights. So far, social funds in a total amount of CNY 35 million have been attracted into the mine management effort and employment opportunities have been provided for more than 500 villagers.

Cases of achievements in Xunwu County, Ganzhou City

In the abandoned mine of Keshutang in Wenfeng Township, Xunwu County, due to years of extensive mining, the original lush mountain has become a fragmented bare mountain. As the rainy season came, the loose soil on the mountain was washed away, the road was flooded, and the fertile land was destroyed.

The abandoned forest in Keshutang has changed its appearance, thanks to the implementation of the landscape protection project of the landscape forest lake grass in Ganzhou City in 2017. Driven by the landscape protection project of the ecological protection and restoration project, the comprehensive management and ecological restoration project of the abandoned forest in Keshutang is aimed at the entire abandoned mine with an area of 6 square kilometers, mine environmental remediation, vegetation restoration, constructed wetland and small watershed water environmental protection.

Xunwu County adopts a comprehensive management mode of “three-way governance” in the mountains and underground, upstream and downstream of rivers, and in the short-term, the soil erosion in the region is greatly reduced and the soil is effectively improved. The project has achieved more than 14,000 mu of regreening, the vegetation coverage rate has increased from 10.2% to 95%, the plant variety has increased from 6 to more than 100 species, and the ammonia nitrogen content of the water has been reduced by 89.76%. The water quality of the river has been greatly improved.

14 The data is provided by Futian Industrial Park

While vigorously repairing the ecological functions of the mining area, Xunwu adheres to the concept of “ecology+” and turns waste into treasure. “Ecology + Industry” expands the park space, builds industrial parks by using rare earth abandoned mines, and manages 7,000 mu of new industrial land for contiguous treatment; “Ecology + Photovoltaics” enhances the restoration benefits, and builds two photovoltaic power stations of Noton and Aikang, and the total installed capacity The capacity is 35 megawatts, and the annual income is about 40 million yuan. “Ecology + poverty alleviation” broadens the income channels and guides farmers to plant oil tea, bamboo cypress, passion fruit, kiwi, etc., and the benefits of poverty alleviation are obvious; “Ecology + Tourism” achieves comprehensive improvement. The cultural relics such as mine relics, popular science experience, leisure and sightseeing in the region have been basically completed, and the comprehensive benefits have been greatly improved.

C.4 Key existing problems

105. It was found during the survey in several counties and districts in the southern parts of Jiangxi Province that a lot of human and physical resources have been input in all counties in the treatment of abandoned rare earth mining areas and remarkable achievements have been made. However, due to the shortage of manpower, finance, technology and capital, problems do exist in four aspects described as follows:

C.4.1 The efforts made so far in treatment of AREMs have remained focusing more on the superficial aspects but less on the essential aspects. 106. Efforts of treatment of AREMs implemented in Jiangxi Province are mainly ecological treatment of the superficial issues, i.e. ecological treatment of the surface of rare earth mines left over from the processes of pool leaching and heap leaching implemented in the historical mining of rare earth. In the process of such treatment, all the counties and cities mainly focus on actions like topping over the residual acid-soluble slags, and finally covering the top soil with vegetation such as pines, navel oranges, honey pomelo, bayberry, and ramie and other crops and compound grass species so as to restore vitality of the mountains. At the same time, intercepting dams are installed downstream to prevent soil erosion. Such treatment efforts have achieved excellent effect in conservation of water and soil (For example, Xunwu County reduced the overall soil erosion in the mining area by 91% by adopting measures such as remediation of mine terrain, building retaining walls, intercepting drainage ditch, repairing slopes, restoring vegetation, etc.) and restoration of vegetation (vegetation coverage before treatment increased from 4% to over 70%). However, no fundamental improvements are made to the pollution inside the mountains. Environmental safety hazards still exist in the mine area after treatment, posing a certain degree of potential threats to the drinking water safety and food safety of the local residents.

C.4.2 The efforts made so far in treatment of AREMs have remained focusing more on the symptoms but less on the causes 107. Extensive application of the in-situ leaching process in Jiangxi Province started in 2007, aiming to overcome the shortcomings of pool leaching, heap leaching and other processes and solve the ecological problems caused by rare earth mining by means of process improvement. The greatest advantage of the in-situ leaching process, compared with the other two processes, is that large-scale geological damages can be avoided in the mining process, problems, such as vegetation damage and soil erosion, can be effectively alleviated, and the recovery rate and collection rate of rare earth can be greatly improved. However, in the in-situ leaching process, it is necessary to build a liquid-collecting guide hole in the mountain and, in the case of continuous infusion of leaching liquid, geological disasters such as guide hole collapse and landslide may happen; on the other hand, the liquid collection effect depends on the lower geological strata of the mountain. The groundwater inside the mountain

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 30 Final Report NᴧREE may be easily polluted, causing high ammonia nitrogen wastewater to directly infiltrate into the mountain during the mining process, and significant impacts may be produced on the groundwater and the water quality around the mining area. Although the mining process has been improved, it still remains unable to eliminate both the symptoms and the causes of this pollution. Moreover, since the counties and cities have not established a tracking and monitoring system for soil, groundwater and surface water in the local environment, there is no scientific judgment on the changes of the entire ecosystem, and the treatment effect may be greatly reduced.

C.4.3 The efforts made so far in treatment of AREMs have remained focusing more on the large mines but less on the small ones 108. It was found during the survey that remarkable achievements have been made in treatment of contiguous and large mines, but there are still a number of collapses, stripped surfaces and local siltation areas scattered on the surface of many mountains. According to the local staff, there are mainly two reasons. On the one hand, these sites were not included in the scope of statistical survey of the area of AREMs and, therefore, no corresponding work arrangements and budgets were developed; on the other hand, these small abandoned mines require higher average cost of treatment and, with limited funds, the efforts of treatment have to first focus on the large and contiguous mines.

C.4.4 The efforts made so far in treatment of AREMs have remained focusing more on the short-term effect but less on the long-term effect 109. In response to the inspections by the Environmental Protection Supervision Team of the Central Government and the Environmental Protection Department of Jiangxi Province, the local governments tend to take “timely and instant” measures during mine remediation to "re-green" the mountains in the short term. However, in the re-greening process, the acid- base ratio of the soil is often neglected and it becomes impossible to plant effective and suitable plants in a targeted manner. Therefore, it is found that, after such inspections are finished, many plants have a low survival rate or even die extensively; in some mining areas, due to the poor performance of the maintenance teams and inadequate subsequent management, the repaired mines are found seriously eroded and problems like vegetation degradation and soil exposure among others reoccur.

C.4.5 Many works still at the exploration stage 110. Although Ganzhou has achieved remarkable results in the restoration of vegetation in AREMs, it is still at the stage of exploration to improve soil nutrients and surface water quality and prevent groundwater pollution. Take tailing water treatment as an example. The Ganzhou rare earth mining area has not yet constructed a complete drainage facility and sewage treatment plant. A large amount of sewage is discharged into the surrounding water body without treatment, resulting in serious pollution of the water environment, and with the result that the water body cannot maintain its original shape and function (Liu, Yang and Leng 2015) (C. Liang 2018). The best technology for the treatment of tailing water is still under development.

111. Gu Chunlin, director of the Environmental Protection Bureau of Xunwu County, Jiangxi Province, said in an interview with a reporter from China Central Television that there is no mature technology to effectively eliminate the pollution problem of rare earth mines. A number of local enterprises and technical teams are developing research methodologies.

C.5 Summary

112. There are a number of policy documents concerning the remediation of AREMs produced by different levels of government in PRC, including the key objectives, the content and measures for mine remediation. These confirm that the state authorities attach great

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 31 Final Report NᴧREE importance to the restoration of AREMs According to the national policy, the Ganzhou Prefecture Municipal Government has taken corresponding measures, which are embodied in the two aspects of soil and vegetation restoration and water quality improvement. However, some of the population including children may still be drinking polluted water and exposed to RE and heavy metal minerals.

113. These factors may indicate a need for some of the population to be resettled in other parts of the county. While national policy and other interventions has achieved remarkable results in guiding private sector participation, ecology and poverty alleviation. However, we found that there are still problems in the recovery of AREMs in Ganzhou Prefecture, such as “focusing more on the superficial aspects but less on the essential aspects”, “focusing more on the symptoms but less on the causes”, “focusing more on the large mines but less on the small ones”, “focusing more on the short-term effect but less on the long-term effect”, and “many works are still at the stage of exploration”. This chapter summarizes the policy and main issues and the analysis are incorporated in the policy recommendations later in this report.

D Pilot Area Study: Dingnan County

D.1 Objective

114. The core objective of this chapter is to investigate the impact of AREMs on 1) local villagers' production, living and physical health; 2) impact of abandoned mines on the local ecological environment (based on water and soil testing data). Subsequently, because the income situation of two types subjects is different, the participated benefits are also very different. Therefore, from the government and non-government (enterprise and individual), it is to analyze measures to remedy abandoned mines taken by these two types of subjects. Thirdly, the restoration effects achieved by the two types of subjects were evaluated in terms of ecology, poverty alleviation and economics. Finally, on the basis of evaluating the deficiencies in the restoration, the next step and direction of the remediation of abandoned mines are proposed.

D.2 Overview of the case study area, and the background and rational for choosing Dingnan County

D.2.1 Overview of the Case Study Area15 Geographic Profile

115. Dingnan County is located in the southern border of Jiangxi Province and adjacent to Guangdong Province in the south. The geographical position is 114°46 '～115°23' N, 24°23'～ 25°05'E, 56.2km wide from north to south, 58.4km long from east to west, narrow in the south and wide in the north, and the terrain rises in the east, west and north. The south-central is slightly lower and inclined, shaped like a water chestnut (see Figure D-1 and Figure D-3 for details).

116. Dingnan County is one of the 18 counties/cities under the jurisdiction of Ganzhou City. It is located in the previous Central Soviet Area, and within the source of Dongjiang River. The county administers 7 towns and 120 administrative villages with a total area of 1,321km2. The territory is a low hilly terrain, and its climate is mid-subtropical monsoon humid climate.

Economic and Social Profile

117. In 2018, the county's total population is 220,000, of which the county urban population is 80,200, the county's total built-up area is 9.09 km2, and the urbanization rate is 45.98%. In 2018, the regional GDP was 8.738 billion yuan, and the per capita disposable income of urban residents and rural residents reached 28,727 yuan and 9,703 yuan respectively. The total fiscal revenue was 1.186 billion yuan, the total retail sales of social consumer goods was 1.675 billion yuan, the actual utilized foreign capital was 88.8 million US dollars, and the foreign trade value was 447 million yuan.

Resource Profile

118. Natural mineral Resources. The mineral resources represented by rare earth and tungsten are widely distributed, with many varieties, large reserves and excellent quality,

15 The data in this section mainly comes from 1) official website of Dingnan County Government, http://www.dingnan.gov.cn/zjdn/xqjs/ ; 2) Work report of Dingnan County People's Government in 2019, http://www.dingnan.gov.cn/zwgk/zfgzbg/201903/t20190304_567380.html

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 33 Final Report NᴧREE making it an important non-ferrous metal base county of the city, the province and even the whole country. The rare earth ore is of high variety and high grade, classified as middle yttrium and rich europium rare earth. It is one of the first 11 rare earth planning mining areas with a reserve of 78,800 tons and a prospective reserve of 1.14 million tons. In addition, there are more than 20 kinds of mineral deposits such as ferrotitanium, graphite, bentonite and china clay.

119. Forest resources. The forest coverage rate is 83.01%. It is called the “Natural Oxygen Reservoir” and belongs to Dongjiang River (an important drinking water source for Hong Kong residents) Source Nature Reserve. The total area of forest land in Dingnan County is 1.658 million mu, including state-owned forest land of 203,600 mu; standing volume of growing stock of 4.906 million m3, standing bamboo is 15.96 million pieces; public welfare forest of 629,100mu, including 532,100mu of national key ecological public welfare forest, and 97,000mu of provincial ecological public welfare forest.

Figure D-1 Administrative Location and Dingnan Map of Jiangxi Province

Transportation Profile

120. National Highway. Dingnan County is (prepare to construct) constructing three ordinary national highways, namely G238 Nanchang-Huilai (via Xingguo, Yudu, Anyuan, and Dingnan), G358 Shishi-Shuikou (via Huichang, Xunwu, Anyuan, and Dingnan), and G535 Dingnan-Yizhang (via Dingnan, Longnan and Quannan). Among them, G535 Dingnan- Yizhang is a newly added national highway starting from Dingnan County.

121. Railway. Dingnan Railway Station is located in Lishi Town of Dingnan County, Gangzhou City, Jiangxi Province. It is a Class-3 railway station on the Beijing-Kowloon Railway, 2009km from Beijing West Railway Station and 398km from Kowloon Hung Hom Railway Station. The station and the adjacent uplink and downlink sections are electrified sections.

122. High-speed Rail. The Ganzhou-Shenzhen passenger dedicated line has started construction, with a design speed for trains of 350 km/h. The railway will pass through Dingnan at Dingnan West Station. It is expected to be completed and opened to traffic in 2021.

Meteorology and Hydrology

123. Dingnan County is located in the subtropical humid monsoon climate zone with mild and humid weather and abundant rain. The average annual temperature is 18.9°C. The annual average precipitation is about 1609.9mm, maximum at 1901.9 mm (1992), minimum at 985.0 mm (1991), the annual average precipitation days is 126 days, and the maximum daily precipitation is 686.3mm.

124. There are 244 rivers of different sizes in the territory with a total length of 1146km, belonging to the two water basins of Dingnan River and Taojiang River, and the Dingnan water flows to Dongjiang in Guangdong Province. The river bed has a high fall head, and with a theoretical potential for hydropower generation of 9.67 million kilowatts.

D.2.2 The context and rationale for Choosing Dingnan County as a Case Study 125. The selection of Dingnan County as a case point is mainly based on three aspects: one is the representative of AREMs in Dingnan County; the other is representative of the experience and model of restoration; the third is that Dingnan County is also an important base for the construction of ecological civilization in Jiangxi Province.

126. Dingnan County is typical in terms of abandoned rare earth mine issue: a. Dingnan County has a long history of rare earth mining, mining records starting from 1980s; b. demonstrating features of a large number of mines, large mining area and severe damage to vegetation; c. ecological problems caused by heap leaching and in-situ leaching have typical cases in Dingnan County.

127. As shown in Table D-1, Dingnan County, Xunwu County, Longnan County, Xinfeng County, Anyuan County, and Quannan County are the main producing areas of rare earth in Ganzhou (Jiangxi). Among them, Dingnan County has a heap leaching area of 16.76km2, accounting for 40.82% of the total heap leaching area in the six counties in Ganzhou; the total area of the two types of mining technology is 18.23km2, accounting for 31.31%, which is the most severe in the six counties (Xiong, Jiang and Qi 2018).

Table D-1 Mining Areas of 6 Main Rare Earth Producing Areas in Ganzhou Rare Earth Mining Area(km2) % of Total Rare Earth County Heap Mining Areas in 6 in-situ leaching Total Leaching Counties Dingnan 16.76 1.47 18.23 31.31 Xunwu 10.06 6.21 16.27 27.94 Longnan 1.31 7.63 8.94 15.35 Xinfeng 6.52 0.62 7.14 12.26 Anyuan 4.11 1.02 5.13 8.81 Quannan 2.30 0.22 2.52 4.33

128. Figure D-2 shows the distribution of abandoned mines formed by rare earth mining in the 6 counties of Ganzhou identified using the TM/ETM+/OLI images of the Landsat series of satellites supported by the Google Earth platform (at the top right corner is the geographic location of 6 counties in Jiangxi Province). Looking at the distribution, the AREMs are very concentrated in Dingnan County, mainly distributed in Lingbei Town in the north of the county.

Figure D-2 Distribution of Abandoned Rare Earth Mines in 6 Counties of Ganzhou

129. Dingnan County demonstrates typical experience and approaches in the restoration of AREMs: Dingnan County has gained rich experience in the restoration of AREMs. Dingnan County has intensively promoted the development of the National Ecological Civilization Pilot Zone, implemented 15 pilot projects for horizontal ecological compensation in the upper and lower reaches of the Dongjiang River Basin, implemented 3 ecological restoration projects for mountains, water, forest, field and lake, and repaired 3.44 square kilometers of abandoned mines, and completed the construction of 2 rare earth tails collection and treatment station,

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 36 Final Report NᴧREE fully completely the elimination of worse than Grade V16 water in the Lingbei boundary section, and the water quality of the boundary section of the Dongjiang River source protection area has been upgraded from Grade III to Grade II. The Zhenghe Ecological Cycle Park was completed and put into operation, and the Dingnan Model of third-party full-quantitative collection and resource utilization of livestock and poultry manure is being promoted nationwide. Multiple models of restoration of AREMs have been implemented. Four types of restoration models and approaches are being practiced in various parts of Gangzhou, including forest-fruit-grass, forest(fruit)-grass-fishery (animal husbandry), pig-bioprocess- forest(fruit), and industrial park. There are typical cases of those four types of restoration models in Dingnan County17.

130. Dingnan County is an important base for ecological civilization construction: Dingnan County was designated as national key construction county for soil and water conservation, and began to implement integrated rehabilitation of small river basins of AREMs in Lingbei. In conjunction with the integrated rehabilitation of small river basins, Dingnan County Government carried out integrated rehabilitation of 18 AREMs in the project area, including Bankeng, Pingao, Jiazibei, Fuzhushan, Aobeitang, Laishuikeng, Shangzhai and Jinglikeng. Dingnan County is a demonstration county for ecological civilization construction in Jiangxi Province. Dingnan County has taken corresponding measures in the areas of rural environmental improvement, ecological compensation of key ecological functional zones, and ecological protection and restoration, and has gained experience in the rehabilitation of AREMs that can be drawn on by Jiangxi Province and the whole country.

D.3 Impacts of AREMs on Local Residents

131. After the preliminary survey conducted by the project team in Dingnan County on January 18-20, 2019, a four-day “one-on-one, face to face” survey was conducted with the villagers on March 21-24, 2019, using the revised questionnaires.

132. Among the respondents interviewed, some villagers are still living in their village while other villagers have moved to an urban area in the County. Some of the interviewees were temporarily called back to the village by the village cadres to participate in the survey. The survey was designed as a random survey and collected information on age, education, gender and other profile information of the respondents. An outline of the survey is presented in Appendix H.1.

D.3.1 Background Information of the Sample Area 133. The towns surveyed this time are Lingbei Town and Lishi Town (see Figure D-3 for details, and the numbering is corresponding to that in Table D-2). Lingbei Town and Lishi Town are the main producing areas of rare earth in Dingnan County, also the two towns with the most severe environmental damage. They are the key areas for restoration in Dingnan County. For example, in April 2018, Dingnan County Government issued the document on Rehabilitation of AREMs in Dingnan County18, Lingbei Town and Lishi Town are designated as key restoration areas. Therefore, the sample townships are representative.

134. Lingbei Town is located in the northern part of Dingnan County and accounts for more than 50% of the RE reserves and exploitation of rare earth resources in the county. Rare earth

16 GB 3838-2002: Environmental Quality Standards for Surface Water 17 The details of four types of restoration models will be specified in Chapter D.6. 18 Rehabilitation of Abandoned Rare Earth Mines in Dingnan County, Dingnan County Government Website: http://www.dingnan.gov.cn/zsyz/xmtj/201804/t20180402_516839.html?tdsourcetag=s_pcqq_aiomsg

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 37 Final Report NᴧREE mining started in the 1980s when mining techniques include pool, heap, and in-situ leaching. A number of typical AREMs are located in the town area. The historical development of RE mining in this area means that valuable experience has in restoration of rare earth mines and the different models or restoration.

Figure D-3 Location of the Two Townships and 10 Villages

135. Located in the central part of Dingnan County, Lishi Town is the county’s political, economic and cultural center. Most of the administrative villages under the town have a history of rare earth mining. The main body of Dingnan Industrial Park falls in the town, with downstream production enterprises such as rare earth smelting and processing and rare earth materials. The model of transforming abandoned mines into industrial park land is being implemented in the town.

136. The total number of villages surveyed is 10, and the specific survey villages are shown in Table D-2 and Figure D-3. The villages surveyed are representative, for example, Caiyang Village in Lingbei Town has 18 rare earth mines, of which 13 have been mined; Nanfeng Village has the highest rare earth production in the county, with more than 30 mines.

Table D-2 Survey Overview Number of Average Education Town No. Village persons Main Crops Age Level Male Female 1 Leyuan 13 0 52 Junior high Rice, fir, bamboo 2 Caiyang 11 2 57 Junior high Rice, fir, bamboo 3 Jianxia 10 1 57 Junior high Rice, fir, bamboo Lingbei Town 4 Tiantang 14 1 46 Junior high Rice, fir, bamboo 5 Nanfeng 11 0 50 Junior high Rice, bamboo Changlon 6 9 2 52 Junior high Rice g 7 Jingkeng 11 1 55 High School Fir, navel orange Xiazhuan Navel orange, 8 12 3 58 Junior high Lishi g vegetable Town Navel orange, 9 Futian 12 3 53 Junior high vegetable 10 Chiling 13 7 63 Junior high Rice, vegetable

137. A total of 161 questionnaires were collected, of which 136 are valid, and the valid rate of the questionnaire is 84.47%. The majority of the respondents are male, with a ratio of 85.29%. The average age of the respondents is 54.63 years old (mainly because young people are out for work and have left), 76.47% had junior high school education or above, the average household size was 5.64 persons, and the average labor force per household was 2.93. The proportion of respondents who are members of the Communist Party of China is 22.22%, and 26.67% of the respondents are village cadres (mainly the leaders of each village group).

138. 88.24% of the respondents' families have non-agricultural income sources, of which migrant workers are the mainstay, with a ratio of 77.94%. Working income has become the main source of income for most families. There are two reasons for going out to work: a. more than 80% of the villagers interviewed answered that because the village is unable to effectively address children's education, they have to move to the county urban area to live, and in order to take better care of their children, they choose to work in the county urban area or in Guangdong. If it is a cross-provincial migration, the children are generally entrusted to the elders to raise. b. due to the large gap between agricultural income and non-agricultural income, and the singularity of income from agriculture, slow income growth, the villagers choose to engage in non-agricultural work.

Explanation of the sample size and representativeness of the survey:

A total of 161 villagers (also equivalent to 161 households) were surveyed, and the number of valid questionnaires was 136. Compared with the population size of the two towns, the number of villagers interviewed was relatively small. However, we believe that this survey is still highly representative:

(1) Lingbei Town and Lishi Town are the main mining areas of Dingnan County (as shown in Figure D-3). Selecting these two towns as research sites can effectively avoid the collection of invalid samples without rare earth mining activities.

(2) The respondents are random. Before the investigation, the research team did not inform the local government of the details of the investigation, so it can avoid the situation where the local government and the respondents’ “cooperation”. Respondents generally received requests for interviews the day before the interview. The respondent went to the research site (village committee) to know the purpose and content of the survey. Respondents were random, and the

village committee had no power to force them to accept the survey. The respondents volunteered to participate in the survey.

(3) Some conclusions of the survey are similar to those of many scholars, and are similar to the theoretical expectations before the survey. Therefore, although the number of samples is small, the results are robust and can withstand testing.

(4) Statistically, when the number of samples is greater than 120, it can be said that it approaches a normal distribution, and the analysis results are highly effective.

D.3.2 Villagers’ Production and Living Conditions and benefits of remediation (1) Farmland benefits

139. 63.24% of the respondents have 2-4 mu of farmland, and the per capita farmland is less than 1mu. About 5% of the farmland is abandoned due to low yield or the impact from rare earth mining.

140. Rice is still the main agricultural crop that the villagers choose to grow, accounting for more than 90%. A small part of the farmland is planted with other crops such as taro, peanut and watermelon. The harvested rice, taro, peanuts and other agricultural crops are mainly for their own consumption. According to the survey, less than 10% of the villagers conducted trade in the crop market. Income of farmers is calculated mainly based on rice production. The yield of grain per mu is 900-1,000kg. If the average land area per household is 3mu, the total grain yield is 2,700-3,000kg. According to the government purchase price of 1.2-1.3 yuan/kg, the average household gross income of the villagers is 3,375-3,750 yuan.

141. In the two towns of Lingbei and Lishi, 20.59% of the villagers transferred the land to others to use or rent farmland of other people. The rent per mu varies significantly, some are only 200 yuan/mu/year, and some are as high as 500 yuan/mu/year, more than 50% of the land rent is 300 yuan/mu, depending on soil fertility, location, etc.

(2) The benefits of forestry

142. The per capita forest land of the villagers is much higher than farmland. However, the area of forest land per household varies significantly. Some villagers (by household) only have a few mu, while some villagers (about 5%) have 80-100mu (including rented land).

143. The economic forests mainly include naturally grown mao bamboo, planted fir and pine tree. Every year, bamboo has a harvest, including the sale of winter bamboo shoots and spring bamboo shoots, and mature bamboo. However, there are differences of on-year and off-year, and the harvest of each household is also very different. For example, if some villagers have sunny land, the average yield per mu will be higher than that of the shaded forest; some villagers have relatively flat forest land, while others may have steeper forest land and their harvests vary greatly. Winter bamboo shoots and spring bamboo shoots grow every year, so there are more or less earnings every year. But it usually takes 3-5 years for bamboo shoots to grow into bamboo for sale, so such income is not yearly.

144. Among the respondents, 45 households planted fir and 4 households planted pine trees. From planting to sales, it takes at least 10 years. The local villagers generally report that it takes about 15 years to fully grow, so the cycle is long. The planting cost is about 400 yuan per mu, including seedling (3~5yuan per tree) and labor costs. The earnings vary significantly

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 40 Final Report NᴧREE according to different villagers. More than 50% of the villagers are not clear how much profit they can have as the trees haven’t been fully grown and sold; some estimate 5000 yuan per mu while some estimate less than 2000 yuan.

(3) Other land types and benefits

145. Vegetable plot. More than 80% of the villagers own the vegetable plot at 0.2-0.5mu (the villagers generally only answer an interval value for their own vegetable plot area). Mainly seasonal vegetables are grown for their own consumption.

146. Orchard. Navel orange is a kind of cash crop mostly planted by the villagers. Among the respondents with garden plot, the proportion of navel oranges planting is 28.57%, and the planting area is all within 10mu (some orchards were converted from farmland), and in a good harvest year, the gross income could reach 8000~10,000 yuan/mu. Of course, the villagers are also facing great agricultural risks, especially in case of “citrus huanglongbing”, they may need to destroy all the orange trees.

147. Fish Pond. 22.79% of the villager’s own ponds or contracted pond for fish farming, the area of fish ponds is usually a few tenths of mu. The fish are mainly for their own consumption, and some are given away to others or sold (only about one-third of the villagers who would sell), and the income from sales ranges from a few hundred yuan to several thousand yuan.

D.3.3 Villagers living and abandoned mines 148. Due to the existence of abandoned mines around most of the villagers' residences, the lives of the villagers are greatly affected. The extent of the impact is proportional to the distance. The main impact is water pollution.

(1) Domestic water and drinking water are seriously affected by abandoned mines

149. It can be seen that only surveyed 14 households live in residences where there is no mining area nearby (5000m as defined by this report), and 89.71% of the villagers live around mining areas. It can be inferred that abandoned mines are closely related to the lives of villagers. Some villagers reported that the nearest distance between the mining area and its place of residence is only 50m. The rare earth mines not only affect their domestic water, but also pose a certain degree of danger to their houses (the risk of landslides and mudslides).

150. The study found that whether the drinking water of the villagers is polluted depends mainly on the distance between the villagers' living places and the abandoned mines. The closer the distance is, the more likely the villagers are to be affected. The water supply of more than half of the villagers living within 3000m from the mine are affected by abandoned mines. Specifically, the pollution has caused water turbidity, discoloration (light yellow, grey, etc.), and odor. Among the 14 households outside a mining area within 3,000m of their residence, only one household reported that their domestic water was affected. Therefore, villagers without mining areas in the surrounding areas are basically not affected in their domestic water use.

151. There are villagers who have mining areas within 5,000m of their residences, but their drinking water was not affected. The explanations given by the villagers are as follows: (1) some villagers live above the mining area, which means that they are in the upper reaches of the water source. (2) Some villagers live in the south of the mountain, while the mining area is in the north of the mountain, although the direct distance is very close, but it is not affected

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 41 Final Report NᴧREE by the mining area; (3) some villagers live even below the mining area, however, its drinking water (such as groundwater) is not in the area or direction of impact from the mining area.

(2) Measures taken by villagers

152. After the villagers' domestic water is polluted, the original groundwater (well water) and the stream water cannot be used, and they have to find other water sources. The common practice is to divert water from the hills where no mines have been opened.

153. In the rural areas of Ganzhou, the villagers generally gather on a small scale, it is generally several households or dozens to dozens of households are concentrated in one place, so the villagers will raise funds to construct drinking water facility. The work includes: a. looking for uncontaminated hills; b. excavating a water pond in the vicinity, the size of which depends on the number of villagers, generally about 6-8m3; c. apply stones and cement inside the pond; d. install header pipe at the outlet of the pond in the vicinity of the villagers' residence, each household installs its own water conduit.

154. Water diversion costs: the water diversion costs depend on the distance between the nearest uncontaminated water source and the villagers' residence. Therefore, the water diversion costs of each household vary considerably. If there is an uncontaminated water source around the living quarters of a certain group of villagers, each household bears less water diversion cost; if the uncontaminated water source is far from the villagers’ residence, each household needs to bear higher cost. Among the respondents, the general water diversion cost is 1,000-3,000 yuan per year.

155. In Jingkeng Village and Futian Village which are close to the county urban area, the county government has installed tap water for the nearby villagers. The tariff per ton of water is basically the same as that of the urban residents.

156. Due to the pollution of water sources, the daily water use of many villagers has become reliant on supplies of mountain spring water. At present, the proportion of villagers with mountain spring water as the main source of water is 57.39%. However, 35.29% of the villagers still drink groundwater, and the proportion of groundwater within 10 meters is 70.83% (see Figure H-1 for details).

D.3.4 Impacts on the houses from Rare Earth Mining 157. There are 15 households or about 11.03% of the village houses are affected by rare earth mines, impacts include:

(i) Due to rare earth mining, especially heap leaching and pool leaching, the heap is prone to cause mudslides on rainy days, or sediment mixtures (known to the villagers as “yellow mud water”), which would impact the houses. As a result, the house has a crack in the wall or the house is affected by mudslides. (ii) After the rare earth is mined, the foundation of the house sinks, causing cracks in the walls.

D.3.5 Impacts on Residents’ Production 158. The production activities of the villagers are also affected by abandoned mines. However, cultivated land, forest land, gardens, and ponds are affected to varying degrees, with cultivated land being severely affected. The pollution of production water is the most direct and main reason that affects the agricultural harvest of the villagers.

(1) Impacts of abandoned mines to cultivated land

159. Among the respondents, 58 households reported that there are AREMs within 1,000m of their farmland, accounting for about 42.65%. Among the 58 households, the crops of 43 households are affected, accounting for 74.14%.

160. In term of impact pathways, the answer of more than 95% of the villagers is water source. After the water source of the farmland is polluted, the water containing a large amount of pollutants such as ammonia nitrogen and heavy metals is washed into the farmland, and new uncontaminated water sources can’t be found nearby, this has caused serious impact on the main crop, rice.

161. The farmland of 5% of the villagers was once affected by mudslides. Due to the stripping of the surface of the mountain by rare earth mining, it is easy to cause landslides and mudslides in the rainy Dingnan County. The farmland affected by mudslides are generally difficult to recover.

162. Some villagers explained the manifestation of rice yield reduction or failure: water with ammonia nitrogen flows into the farmland, and rice seems to grow far better than other uncontaminated farmland, but can't bear fruit. When it is time to harvest, the seedlings are still blue.

(2) Impacts of abandoned mines to forest land

163. 39 households reported that there were rare earth mining activities within 1000m of their forest land, accounting for 28.68%. Among them, 48.72% of the villagers' forest land was affected.

164. Comparing with impacts to cultivated and forest land, it can be seen that: First, compared to forest land, the farmland of the villagers was affected to a greater extent; second, impacts from rare earth mining activities on farmland crops (mainly rice) was much greater than forest land.

(3) Impacts of abandoned mines to vegetable plot

165. There were rare earth mining activities around the garden plots of 14 households, accounting for 10.29%. Among them, the garden plots of 5 households were affected by rare earth mining activities, and the impact on the harvest was below 20%. The impact on the harvest is minor for the following reasons: first, the area of the villagers' garden plots is not large, as mentioned above, more than 80% of the villagers own 0.2-0.5mu of vegetable plot; second, the water consumption of the garden is not as much as that of farmland (rice is a water-consuming crop), and irrigating crops with water containing a small amount of ammonia nitrogen is good for crop production.

(4) Impacts of abandoned mines to fish pond

166. 31 households owned or contracted ponds, and 7 of them had rare earth mines within 1000m of the pond, accounting for 22.58%. A total of 3 households were affected by rare earth mining activities. The impacts were generated from water pollution, or the rare earth liquid containing sediment was injected into the pond, causing deaths of fish and shrimp, and the yield reduction was less than 20%.

D.3.6 Impacts on Physical Health of the Villagers 167. 63.97% of the villagers believed that the serious-disease rate in the village did not increase significantly after rare earth mining activities while the other 49 villagers (36.03%) believed that the frequency of serious diseases increased with the mining activities. Among major diseases, lung cancer, stomach cancer, and liver cancer account for more than 60%. A small number of villagers' responses include rhinocarcinoma, leukemia and rectal cancer. This research findings are basically consistent with the research conclusions of scholars. (Jin 2014) (L. Wu 1999) (Tu, et al. 2017).

168. Majority villagers believed that there is a casual relationship between the health of the villagers and the mining activities and they believed that rare earth mining activities would affect their health. There were still some villagers who thought that the rare earth mining activities would not cause harm to anyone's body. The remaining villagers could not determine the relationship of the two.

169. In terms of impact pathways, all villagers believe that water pollution is the primary way to affect their health. Soil is also considered to be a significant impact pathway, with 88.78% think that the soil pollution affects people's health. 39.80% of the villagers believe that the way of harm is only from the water source. More than 60% of the villagers believe that various factors altogether affected the health of the villagers (See Figure H-2 for details).

D.3.7 Compensation for Losses 170. Mining companies19 have also compensated some villagers, but the number is small, only 24 villagers.24 households received compensation from rare earth mining enterprises, accounting for 17.65% of the total. The causes for compensation include: contamination to the villagers' farmland and forest land due to rare earth mining, mudslides impacting houses, and land acquisition for mining. The three types of compensation had large differences, even if they were of the same type, there was a big difference between households.

171. The compensation received by the villagers is much lower than the gains that may be obtained from their production. In terms of farmland infringement, more than 50% of the villagers' compensation was 500-1,000 yuan/mu, and some individual villagers' compensation was 300 yuan/mu. The compensation for forest land was higher than that of farmland, which was about 1,000-2,000/mu.

172. In case of land acquisition for rare earth mining, the government implemented “one household and one talk” approach that government officials consulted each household to agree on specific agreement for everyone, and the compensation amount between the villagers could be varied 1-10 times among every households. If it is converted into industrial land, the compensation standard for each mu is about 15,000 yuan.

D.3.8 Villagers’ Demand for Compensation 173. Some villagers’ interests have been affected and reported to the government departments at various levels to obtain corresponding compensation. 52 villagers expressed

19 To solve the drinking water sources of villagers around the mining area, Ganzhou Rare Earth Mining Co., Ltd. promised to solve the problem of tap water for the villages such as Chakeng Group and Shangzhai Trail Group, and to solve the problem of drinking water source in the leading village. Source: Ganzhou Rare Earth Mining Co., Ltd. Ganzhou Rare Earth Mine Integration Project (Phase I) Environmental Impact Assessment Public Participation Second Information Announcement, Dingnan County Government Official Website, http://www.dingnan.gov.cn/gggs/201304 /t20130408_172799.html

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 44 Final Report NᴧREE their demands to the government, accounting for 38.24% of the respondents. In terms of the level of government to express demand to, the villagers mainly chose village committees and township governments, accounting for 69.23% of the total. Only 28.82% of the villagers appealed to the government at the county level. (See Figure H-3).

174. Results of compensation demands: among the 52 households, only 6 households' claims were resolved, or a certain compensation was made. The interest loss of the remaining 46 households have not yet been effectively resolved.

D.3.9 Summary and Reflects on Next Steps 175. The survey results show that when there are AREMs surrounding, the agri-production, livelihood and health of the villagers will be affected to varying degrees:

(i) The drinking water of more than half of the villagers who live within 3000m of the mining area is affected by the rare earth mining activities. The drinking water of villagers without mining areas around them are basically unaffected by mining activities. After the villagers' production and life are affected by the AREMs, villager groups and village collectives take active measures including finding new and uncontaminated water sources. For this reason, each villager needs to spend 1,000-3,000 yuan to introduce new water sources, which were undertaken by villagers. (ii) There are 58 households with AREMs in the 1000m area of cultivated land, accounting for 42.65%, of which 74.14% (43 HHs) have reduced agri-production and reduced proportion of 79.32% affected villagers (31 HHs) is more than 20%, and even 27.91% of affected villagers has suffered from zero yield situation (annual economic loss about 3,000 yuan). Forest land, gardens, ponds, etc. are also affected to varying degrees, but the severity is not as good as cultivated land. (iii) 15 households village houses were affected by rare earth mining activities, including subsidence of foundations, cracking of walls, and influx of sand. (iv) 49 villagers believed that the number of serious diseases in villages increased after the rare earth mining. Moreover, most villagers believe that AREMs will affect people's health, and water and soil pollution is considered to be the main approach of impacts. (v) The villagers have also reported the situation to local governments at all levels or expressed their own interests, but there are still many villagers' interests claims have not been effectively resolved. Therefore, the negative externalities caused by the mining company's production and operation activities are borne by the villagers. On the one hand, the mining industry has gained more profits and benefits. On the other hand, the villagers have suffered losses in life and production, even physical health has been affected.

176. Obviously, the survey results are in aligned with “Dingnan County Mine Environmental Recovery and Comprehensive Management Plan (2019-2025)" on the ecological damage and environmental pollution of the abandoned mines in Dingnan County, which summarize as "water and soil pollution destroys water bodies and soils, and causes a large number of deaths of plants, fish and aquatic organisms, the reduction the output of agricultural and forestry crops, barren lands, and the health of the population.

D.4 Impact of AREMs on Local Ecological Environment

D.4.1 Context of soil and water quality research 177. To improve the ecological protection and poverty alleviation performance of the rare earth industry in Jiangxi Province, the project team analyzed and tested the physical and chemical properties of soil and water quality in Lingbei Town, Dingnan County, and conducted statistical analysis on the data. From the aspects of soil and water quality, the impact of AREMs on the local ecological environment was analyzed.

D.4.2 Sites Layout and Sample Collection (1) Water sampling

178. The collection of water samples is carried out according to GB/T 5750.2-2006 (Standard examination methods for drinking water20. Collection and preservation of water samples). In January 2019, a total of 21 water samples were taken from well water and mountain spring water randomly collected in Yangmei Village, Lingbei Town. Three inlet water and outlet water were taken at Tingjin Environmental Company (WWTP) and collected in 500mL polyethylene bottles for analysis of physical and chemical properties. In March 2019, in five villages of Tiantang Village, Nanfeng Village, Changlong Village, Jianxia Village and Jinnao Village in Lingbei Town, 23 water samples from well water and mountain spring water were randomly selected. 4 samples from inlet water and outlet water were taken at Tingjin Environmental Company (WWTP) and collected in 5000mL polyethylene bottles, 500mL sterile brown glass bottles and 200mL brown glass bottles for analysis of physical and chemical properties and microbiological characteristics.

(2) Soil sampling

179. The collection of soil samples was carried out in accordance with LY/T1210-1999 (Field sampling and preparation of forest soil samples). In March 2019, in the rare earth tailings area of Lingbei Town, Dingnan County: grass + masson pine (Jiazibei rare earth mine tailing, 2014 heap leaching), grass + masson pine + bamboo willow21 (Changkeng and Aobeitang rare earth tailing, 2006 heap leaching), and navel orange (Changkeng and Yangmei rare earth tailing, 2006 heap leaching). We chose 3 planting restored patterns (3 habitats) in stacking area and 1 grass + masson pine + bamboo willow (1 habitats) (Changkeng and Aobeitang rare earth tailing, 2006 heap leaching) in siltation area as research objects. In each area (habitats), we selected 3 square sites of 20m × 20m; in each square, we used diagonal method to choose 5 points to dig and sample at the depth of 0-20cm and 20-40cm respectively. The soil from 5 points at the same depth is mixed as one sample and carefully remove gravel and plant debris (such as roots, stems and leaves), and the weight of one sample is approximate

20 The standard PRC standard 21 Due to the influence of rare earth mining, the land has been exposed to excessive sand and heavy metals. If the land is no longer able to grow plants, the local government will cover the guest soil (the source of the land is generally within a radius of 5 km), and the height of the soil layer depends on the specific situation (usually 20-30 cm). Then plant mixed grass species (such as buckwheat grass, broad- leaved garfish, pig kidney bean, dog tooth root, etc.) and tree species with strong acid resistance (such as masson pine, cinnamon tree, etc.) on the soil layer. In Dingnan County, Pinus massoniana has a better effect on the choice of tree species. Therefore, during the investigation, it was found that the planting pattern of “grass + masson pine” in the tailings area was used more. After the fertility of the land has been improved, the cash crops such as navel orange and honey pomelo can be planted in the tailings area. Due to the climatic conditions in southern Anhui, it is suitable for the production of navel orange, so the planting area of navel orange is larger.

1kg. The total number of soil samples is 24 (2 for each site x 4 sites x 3 habitats) for laboratory analysis.

D.4.3 Analysis Methods 180. The pH value, total hardness, sulfate, ammonia nitrogen, nitrate nitrogen, phosphate, iron, manganese, copper, zinc, lead, cadmium, chromium, arsenic, oxygen consumption, and microorganisms in the soil and water? were analyzed using the GB/T 5750-2006 method.

181. Soil sulphate is EDTA (Ethylenediaminetetraacetic acid) titration method, ammonia nitrogen is salicylic acid-hypochlorite colorimetric method, nitrate nitrogen is phenol disulfonic acid colorimetric method, iron, manganese, copper, zinc, lead, cadmium, chromium, arsenic, etc. Determined by atomic absorption spectrophotometry.

182. All data were statistically analyzed using SPSS 17.0 statistical software, and the significance level was set to α=0.05. The data were tested by normal distribution. The differences of soil physical and chemical characteristics of different tailings types were compared by analysis of variance and Tukey test. The difference of soil physical and chemical characteristics in different soil layers was compared by paired sample T test. The Pearson correlation coefficient was used to evaluate the correlation between soil and water physicochemical characteristics. The graphics processing of the data was done using Microsoft Excel 2003.

D.4.4 Drinking water pollution in rare earth tailings area of Lingbei Town (1) General testing results

183. Sampling shallow water and mountain spring water in the villages of Yangmei Village, Tianyuan Village, Nanfeng Village, Changlong Village, Jianxia Village and Jingnao Village, Lingbei Town, Dingnan County, for physical and chemical properties and microbial analysis and testing. The results showed that the qualified rates of ammonia nitrogen, sulfate ion, manganese, copper, zinc, lead, cadmium, chromium, total hardness and oxygen consumption of drinking water were 100%, however qualified rates of nitrate, iron, arsenic and microbial were still not up to standard.

(2) Evaluation of drinking water pollution of residents around abandoned mines

184. The shallow drinking water and mountain spring water of the residents in the 6 villages around the abandoned mine in Lingbei Town, Dingnan County did not meet the sanitary standard of drinking water in GB5749-2006 (see Appendix H.8 for details), which may have certain impacts on the health of residents.

185. Arsenic in water is derived from the soil. In general, arsenic in soil exists in the form of insoluble iron, aluminum and calcium arsenate and arsenic sulfide. Under human disturbance, when soil acidity increases, poorly soluble arsenate dissolves, and arsenic dissolves, causing an increase in arsenic content in the water.

186. The growth of microorganisms requires carbon, nitrogen, phosphorus and other elements. The nitrogen content of water caused by pool leaching, heap leaching and in-situ leaching of rare earth mining exceeds the standard, causing rapid growth of microorganisms, resulting in a serious excess of colonies in water.

D.4.5 Pollution status of tailwater in situ leaching in Lingbei Town 187. In 2018, Jiangxi Provincial Environmental Protection Department issued the local environmental standard "Water Pollutant Discharge Standards for mining of Ion-type Rare Earth Ores" (DB36 1016-2018), which is tailored for the ion-type rare earth mining in Ganzhou Prefecture. This standard stipulates two discharge standards of mining sewage into Class III22 and Class IV 23 or V 24 water bodies (definition in GB 3838-2002: Environmental Quality Standards for Surface Water). As the sewage discharges into tributaries of Gan River, which is the source of drinking water, we believe the sewage discharges into Class III water bodies; thus, we will use Class I discharge standard to assess the pollution status of tailwater, including the indicators of pH value, ammonia-nitrogen, sulfate, manganese, lead, cadmium, arsenic, and oxygen demand; the indicators not regulated by DB 36 1016-2018 will be assessed by using discharge standard of Class I GB 8978-1996 (Integrated Wastewater Discharge Standard), including copper, zinc, and chromium. The pH value of the effluent tail water around the abandoned mine collected in 2019 is less than 6, and the contents of ammonia nitrogen, sulfate ion, manganese and arsenic exceed the limit of "Ion-type rare earth mine water pollutant discharge standard" (DB36 1016-2018). (See Appendix H.9 for details). 188. The rare earth mining in Lingbei Town of Dingnan County was banned in 2016, but the tail water collected in 2019 is far from satisfactory, and there is still much room for improvement in the treatment effect, indicating that the tailwater treatment of abandoned mines is a long-term systematic project.

D.4.6 Soil pollution status of rare earth tailings in Lingbei Town (1) pH 189. The soil in the abandoned mines in Lingbei Town, Dingnan County is acidic, and the soil pH value of the heap leaching in 2014 is significantly lower than that of the 2006 heap leaching soil (see Figure H-4 for details). The pH value of the tailings soil is between 4.23- 5.45, and the pH value of the grass + masson pine (stacking area) vegetation (2014 heap leaching) is significantly lower than other 3 vegetation types (2006 heap leaching), and within the same vegetation type there was no significant difference in pH between different soil layers; there was no significant difference in pH between grass + masson pine + bamboo willow (stacking area), grass + masson pine + bamboo willow (sludge area) and navel orange (stacking area). That is, the pH of the accumulation area in 2014 was significantly lower than the 0.4~1.5 units in the accumulation area and the siltation area in 2006. The results show that the pool leaching and heap leaching conducted in 2007 may be one of the leading factors of soil acidification.

(2) Ammonia and nitrate nitrogen 190. The ammonia nitrogen and nitrate nitrogen content of the heap leaching in the abandoned mines in Lingbei Town, Dingnan County in 2014 was significantly higher than that in the 2006 heap leaching (as shown in Figure H-5 and Figure H-6). The ammonia nitrogen content of grass + masson pine (stacking area) vegetation (2014 heap leaching) is significantly higher than other vegetation types (2006 heap leaching) (2.7~5.0 mg∙kg-1), and 0-20 cm soil layer ammonia nitrogen the content of (82.81 mg∙kg-1) was significantly lower than that of the 20-40 cm soil layer (232.31 mg∙kg-1). The nitrate content of grass + masson pine (stacking area) vegetation (2014 heap leaching) is significantly higher than other vegetation types (2006 heap leaching) (1.7~5.5 mg∙kg-1), and between different soil layers there was no significant difference in nitrate nitrogen. This indicates that the source of ammonia nitrogen and nitrate

22 Applicable for secondary protected areas of centralized drinking water of surface water source 23 Applicable for industrial water and recreational water areas 24 Applicable for agricultural water and landscaping water areas

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 48 Final Report NᴧREE nitrogen is ammonium sulfate in the pool leaching and heap leaching processes. After 8 years of rain erosion, the ammonia nitrogen in the 0-20 cm soil layer was reduced by 95.6%, and the ammonia nitrogen in the 20-40 cm soil layer was reduced by 98.9%. The nitrate nitrogen in the 0-20 cm soil layer was reduced by 97.0%, and the nitrate nitrogen in the 20-40 cm soil layer was reduced by 97.9%. The results show that after pool leaching and heap leaching lead to the poor performance of soil fertility.

(3) Sulfate ion

191. There is no significant difference in the content of sulfate ion in the abandoned mines in Lingbei Town, Dingnan County (see Figure H-7 for details), indicating that the concentration of sulfate ions in the soil has reached equilibrium.

(4) Heavy metals 192. The analysis results of heavy metal analysis in abandoned mines in Lingbei Town, Dingnan County (see Figure H-8-Figure H-15 for details), for the 0-20 cm soil layer, the grass + masson pine (stacking area) vegetation (2014 heap leaching). The content of ferrous and copper in the grass + masson pine (stacking area) vegetation (2014 heap leaching) was significantly higher than that of other vegetation types in 2006, and the manganese content was significantly higher than that of the navel orange (stacking area) vegetation in 2006; and there was no significant difference of zinc, lead, cadmium, chromium and arsenic contents between different vegetation types in 2014 and 2006.

193. For the 20-40 cm soil layer, the copper and cadmium content of grass + masson pine (stacking area) vegetation in 2014 was significantly higher than that of other vegetation restoration types in 2006, and the contents of manganese, zinc and chromium were significant higher than the navel orange (stacking area) vegetation (heap leaching 2006); there is no significant difference in the content of ferrous, lead and arsenic between different vegetation types in 2014 and 2006.

D.4.7 Soil Heavy Metal Pollution Assessment for Lingbei Town Rare Earth Tailings Area 194. Since it is impossible to determine the heavy metal content of soil in Dingnan County before mining, we use the research data of existing scholars as a reference to analyze the excessive standard of heavy metals in abandoned mine soil.

195. In 1988, there was no rare earth mining in Hanshui village of Yuezi Town, Dingnan County (now Hanshui Village of Lingbei Town, Dingnan County). The research group of the Soil Environmental Background Value of Jiangxi Province (75-60-01-15) collected soil samples in Hanshui Village and conducted analysis and tests (He Jili et al. Research on the Background Value of Soil Environment in Jiangxi Province. Beijing: China Environmental Science Press, 2006). The heavy metal elements in the soil of the Hanshui Village When there was no rare earth mining are adopted as background values (as shown in Table D-3). The geoaccumulation index method and the potential ecological hazard index method are used to evaluate the soil heavy metal pollution.

Table D-3 Environmental Background Values of Heavy Metal Elements in Soil of Hanshui Village, Lingbei Town Environmental Mn /(mg∙Kg-1) Cu /(mg∙Kg-1) Zn /(mg∙Kg-1) Pb /(mg∙Kg-1) Baseline Values of Soil in Hanshui 1061 2.5 139.33 129.63 Village

-1 -1 -1 Environmental Cd /(mg∙Kg ) Cr /(mg∙Kg ) As /(mg∙Kg ) Background Values of Soil in Hanshui 0.13 4.57 15.87 Village

Geo-accumulation index method

196. The geoaccumulation index method (Igeo) assess heavy metal contamination of soil sediments from the perspective of environmental geochemistry. The land accumulation index method is more scientific and intuitive to evaluate the status and degree of heavy metal pollution in soil. In addition to considering the human pollution factors and environmental geochemical background values, it also considers the influence of background value fluctuations caused by natural diagenesis. It is used by many scholars as a quantitative index for assessing soil heavy metal pollution levels caused by human activities. Its formula is:  C  =  i  I geo log 2    kBi 

197. Where: Ci is the measured content of heavy metal elements; Bi is the environmental geochemical background value of the measured heavy metals; k is the coefficient correction for taking into account of changes in the background value may be caused by diagenesis, used to characterize sedimentary features, rock geology and other effects, generally, the value is 1.5. The grading of soil environmental quality assessment using geo-accumulation index method is shown in Table D-4.

Table D-4 Soil Environmental Quality Assessment Using Geo-accumulation Index Method Grade Igeo Value Contamination Assessment Ⅰ Igeo≤0 No contamination Ⅱ 0＜Igeo≤1 Slight contamination Ⅲ 1＜Igeo≤2 Mild contamination Ⅴ 3＜Igeo≤4 Slightly Heavy Ⅵ 4＜Igeo≤5 Heavy contamination Ⅶ Igeo＞5 Very heavy contamination

Potential Ecological Risk Index Method (PERI)

198. The Potential Ecological Risk Index Method (PERI) is based on the background values of heavy metals in soil and sediment, combined with the biotoxicity coefficient, ecological effect and environmental effects of heavy metals, to evaluate the degree of harm of heavy metals by quantitative method, and calculate the ecological risk index of heavy metals, and conduct evaluation by a comparable and equivalent attribute index grading method. PERI is an evaluation method that can be used to reflect the ecological risk of single metal in the soil, and to comprehensively reflect ecological risk of various heavy metals in soil. The formula is:

n C i E i C i = s ∑ r i = i • i f i RI = i=1 Er Tr Cf Cn (2)

199. Where: RI is the potential ecological risk index of various heavy metals in the soil or i i sediments; Er is the monomial potential ecological risk factor; Tr is the toxicity response index for heavy metal, reflecting the toxicity of heavy metals and the sensitivity of water to heavy i C i metals; Cf is pollution coefficient for a certain heavy metal; s is the measured values of i heavy metals contents; Cn is background reference value of heavy metals. The grading standards of potential ecological risk of heavy metals are in Table D-5. The toxicity response indices for various heavy metals are in Table D-6.

Table D-5 Soil Environmental Quality Assessment by PERI i Er Ecological risk level of RI General level of single factor pollution potential ecological risk i Er ＜40 low RI＜150 Low-grade i 40≤Er ＜80 moderate 150≤RI＜300 moderate i 80≤Er ＜160 higher 300≤RI＜600 severe i 160≤Er ＜320 high 600≤RI serious i 320≤Er serious

Table D-6 Toxicity Response Index for Various Heavy Metals Element Mn Cu Zn Pb Cd Cr As Toxicity 1 5 1 5 30 2 10 coefficient

Assessment of Heavy Metal Soil Contamination in Rare Earth Tailings Area

200. The geoaccumulation index method shows that in years before 2007, after heap and pool leaching, there is no contamination of Mn, Zn and Pb metal elements in the four types of rare earth tailings, and mild contamination of As, serious contamination of Cu, grass + masson pine (accumulation zone) tailings are heavily contaminated, grass + masson pine + bamboo willow (accumulation zone), navel orange (accumulation area) and grass + masson pine + bamboo willow (sedimentation zone) tailings are moderately contaminated. The Cr element contamination is in all four types of rare earth tailings, among which, the grass + masson pine (accumulation zone) tailings are moderately contaminated. Grass + masson pine (accumulation zone) tailings is mildly contaminated.

201. PERI indicates the heavy metal content in grass + masson pine (accumulation zone) tailings, and mild pollution in the other types of tailings.

202. In general, the four types of tailings were contaminated by heavy metals, among which, the grass+masson pine (accumulation zone) tailings heaped in 2014 bore a relative high heavy metal content. The other three types of tailings heaped in 2006 were mildly contaminated by heavy metals. It can be speculated that the heap leaching process enriches the heavy metals in the rare earth tailings soil, and at the same time, heavy metals are lost with the scouring of rainwater, which may have negative impact on surface water and groundwater.

D.4.8 Correlation of physicochemical properties of Soil in the Rare Earth Tailings of Lingbei Town 203. The correlation of the physicochemical properties of soil in the rare earth tailings is shown in Table D-8. The correlation between different indicators is a concentrated demonstration of physical, chemical and biological effects. The results showed that SO42- was significantly positively correlated with pH. Ammonia nitrogen and nitrate nitrogen were significantly negatively correlated with pH value, that is, the lower the pH value, the higher the content of ammonia nitrogen and nitrate nitrogen in the soil. There is a significant positive correlation between ammonia nitrogen and nitrate nitrogen, indicating that ammonia nitrogen and nitrate have the same source, and nitrate nitrogen is derived from the nitrification of ammonia nitrogen. The metal element has a significant or significant negative correlation with the pH value, that is, the smaller the pH value in the soil, the stronger the acidity, and the higher the metal element content in the soil, indicating that the heap leaching process enriches the soil with heavy metal elements. There is a significant positive correlation between most of the metal elements, indicating that these metal elements are associated.

204. The correlation of physicochemical properties of soil in rare earth tailing soil is shown in table D.7.

Table D-7 Correlation of Physicochemical Properties of Soil 2- Nitrate pH SO4 NH3-N Fe Mn Cu Zn Pb Cd Cr As nitrogen pH 1 0.445* -0.615** -0.679** -0.718** -0.710** -0.648** -0.573** -0.536** -0.583** -0.584** -0.441*

2- ** SO4 1 -0.226 -0.203 -0.401 -0.606 -0.296 -0.180 -0.083 -0.122 -0.369 -0.071

NH3-N 1 0.905** 0.696** 0.461* 0.872** 0.605** 0.405* 0.728** 0.348 0.237 Nitrate 1 0.674** 0.426* 0.904** 0.640** 0.404 0.783** 0.368 0.311 nitrogen Fe 1 0.674** 0.805** 0.619** 0.420* 0.543** 0.570** 0.570**

Mn 1 0.460* 0.443* 0.230 0.306 0.635** 0.188

Cu 1 0.738** 0.541** 0.825** 0.523** 0.517**

Zn 1 0.556** 0.793** 0.703** 0.407*

Pb 1 0.447* 0.225 0.352

Cd 1 0.637** 0.390

Cr 1 0.444*

As 1 Note: * P<0.05, ** P<0.01

D.4.9 Conclusions 205. Due to various historical reasons such as outdated mining technology, lack of environmental awareness, and illegal mining of enterprises, the problem of tail water and soil pollution of AREMs has been caused. Although the local government has taken measures to restore the AREMs, the restoration efforts are mainly concentrated on vegetation restoration, soil and water conservation, etc. Soil remediation and water quality control are still in the early stage of trial, and the financial investment is insufficient and the technology needs improvements, therefore, governments of all levels need to pay extra attention to the current soil and water pollution problems. Specific issues are as follows:

206. (1) The drinking water and mountain spring water of the residents in the abandoned rare earth mining area are not in compliance with the relevant standards. The residents in the mining area mainly drink well water and mountain spring water. The total number of bacteria and arsenic content in drinking water generally exceeds the standard limit. Pool leaching, heap leaching and in-situ leaching processes affect drinking water of residents in rare earth mining areas.

207. (2) The pool leaching and heap leaching process significantly changed the soil physical and chemical properties of the abandoned rare earth tailings. a. The abandoned rare earth tailings soil presents extreme or strong acidity. The tailings accumulation area generated by heap leaching process in 2014 has a significantly lower pH than the tailings accumulation zone and sedimentation zone in 2006. It reveals that over time, the acidity of the soil washed with rain will be weakened. b. The content of ammonia nitrogen and nitrate nitrogen decreased significantly with time, and the soil fertility preservation of rare earth tailings was poor. The ammonia nitrogen and nitrate nitrogen in the tailing’s accumulation zone, produced by the heap leaching process in 2014, were significantly higher than that of the tailings accumulation zone and sedimentation area in 2006. It indicates that the soil fertility within rare earth tailings is hard to maintain. c. The heap leaching process enriches the heavy metals in the rare earth tailings soil, especially Cu, Cr and As. According to the PERI, the heavy metal contamination in the tailings accumulation zone produced by the heap leaching process in 2014 is higher than that of the accumulation zone and sedimentation zone in 2006, this reveals that heavy metals are lost with the scouring of rain over time, which may influence surface water and groundwater25.

208. (3) Tailing water treatment in rare earth mining areas is a long-term project. The tailing water collected around the rare earth mining area mined by the in-situ leaching process does not meet the “Ion-type Rare Earth Mine Water Pollutant Discharge Standard” (DB36 1016- 2018). In 2016, the rare earth mining in Dingnan County was completely stopped, but the rare earth tailing water extracted from the in-situ leaching process collected in 2019. Even after three years the pH value was detected lower than 6, and ammonia nitrogen, sulfate ion, manganese and arsenic did not meet the standard.

209. (4) The management of abandoned mines is a systematic project. The pool leaching and heap leaching process cause serious damage to the ecological environment, resulting in

25 The water and soil test results in this section are basically consistent with the conclusions stated in the Dingnan County Mine Environmental Recovery and Comprehensive Management Plan (2019- 2025). As one of the main points in the plan, “the main processes for rare earth mining are heap leaching, pond leaching and in-situ leaching. A large amount of ammonium sulphate is used as a leaching agent in mining, and its strong acidity remains in the tailings. This causes the pollution of most of the surface soils of rare earth mines. This conclusion is basically consistent with the findings in this section.

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 54 Final Report NᴧREE vegetation damage, soil stripping, aquifer destruction, soil and water acidification, water and soil pollution, soil erosion, geological disasters, etc., while producing a large number of rare earth ore mining and stripping areas, stacking and siltation areas. The management of abandoned rare earth tailings is a systematic project with the ultimate goal of soil and water conservation and vegetation restoration. The characteristics of the stripping area, the accumulation area and the siltation area should be based on the principle of “restoration of vegetation complemented by engineering measures”. From the test results of domestic water and tail water, the results are not satisfactory. One of the important reasons is that the soil containing elements such as heavy metals and ammonia nitrogen flows into the surface water due to the influence of rainwater. Therefore, in the treatment of abandoned mines it should combine soil management and water treatment, and the soil management should be priority.

D.5 Restoration Measures for AREMs by the Government

210. Among the subjects involved in the restoration of abandoned mines, according to their interest functions, they can be divided into two major bodies: government and non-government (enterprise and individual). The government mainly pursues ecological and social benefits in the restoration of abandoned mines, including restoration of mine vegetation, improvement of water quality, decline of land loss, reduction of geological disasters, enhancement of people's ecological access, and ecological poverty alleviation. Under the constraints of its finances, the government strives to achieve ecological and social benefits, while paying less attention to economic costs and benefits than enterprises and individuals.

211. As a national ecological civilization ecological pilot zone (one of three provinces in the country), the demand for ecological management including mine restoration in Jiangxi Province is significantly stronger and more urgent than other provinces. The central government also has higher requirements for the ecological management of the Jiangxi provincial government, and it is hoped that Jiangxi Province will summarize more models and experiences of ecological governance. Therefore, compared with enterprises and individuals, the government has gone further in the repair of abandoned mines, and has also summarized many valuable experiences.

D.5.1 Main measures taken by government 212. The main geological environment problems of abandoned rare earth mining in Dingnan County are vegetation damage, soil erosion, acidification of soil and water, metal concentration exceeding the standard and secondary geological disasters such as collapse and landslide. Based on the experience and lessons learned from the restoration of AREMs for many years, Dingnan County has determined the overall direction of “vegetation restoration as priority, engineering measures as supplement”, through the measures of vegetation and bio-measures, to address environmental geological problems in mines. The restoration measures include six major aspects, including (details and figures are shown in D.5.2 – D.5.6):

(i) landscape and ground levelling: conduct levelling of the slopes and platform in the accumulation and sedimentation areas in the mines. (ii) Slope protection and vegetation restoration: protection and re-greening of the slopes in the accumulation areas of the AREMs; covering the flat sites in the accumulation area platform with borrowed soil, and planting trees and sowing mixed grass seeds for regreening; covering the sedimentation area with borrowed soil, and planting trees and sowing mixed grass seeds for regreening. (iii) Water intercepting and drainage: Excavate drainage ditches following the topography of the mining area to prevent the surface water from scouring and eroding the mining site.

(iv) Grit basins: based on the overall experience of Ganzhou, construct grit basins where there is a faster water flow due to height difference or at the confluence of multiple drainage ditches, so as to provide functions of settling and energy dissipation, and prevent water flow from washing and eroding downstream sites. (v) Construction site access road: develop a convenient transportation network in the mining area to facilitate early site works and the later greening maintenance. (vi) Monitoring: conduct monitoring on the stability of landfill slope and excavation slope in the restoration area, and performance monitoring of land reclamation and vegetation.

D.5.2 Landscape and Ground Leveling 213. Due to disorderly mining, the original landforms in the rare earth mining area are seriously damaged, the site integrity is poor, and the area is left with scarps after stripping of the mountain, the height is 2-20m, the slope is 35-60°, the tailings piles are in disorder, the wall is loose and messy, under the scouring of surface flow, gullies are developed with different depths between 1~6m. Following the principle of excavation and filling balance in the area, reduce the height of some fill slopes, conduct unified leveling, or carry out slope grading and slope repair based on the terrain.

214. For the sedimentation area, backfilling is carried out for depression areas; the vegetation in the sedimentation area is seriously damaged, the soil is loose, and the gully is developed. Given the current situation of the site, backfilling and compaction are carried out for the gully and depression areas to control soil erosion (as shown in Figure D-5).

Figure D-4 Landscape and Ground Leveling Cross-Section Source: Baidu Images Gallery

D.5.3 Slope Protection and Vegetation Restoration Slope Protection and Greening

215. For the steep slopes of the gullies with poor stability, design KTC blanket 26slope. KTC blanket slope protection is used in the restoration areas of Xikeng, Muzishan and Neitoukeng where the slopes are steep and gully issue is severe. For gentle slopes and relatively stable slopes, use tri-planar geonet for straight face protection and greening (see Figure D-5 for details).

Figure D-5 Tri-Planar Geonet Slope Protection Used for Restoration of Xikeng Rare Earth Mine in Dingnan County Source: Ganzhou Natural Resource Bureau

216. Sowing: After the soil is backfilled, the mixed grass seeds are evenly sowed.

217. Covering: After the grass sowing is completed, the surface of the slope is covered with non-woven fabrics to maintain the water content on the slope and reduce the erosion of the seeds by rainfall, which promotes seed growth. If the temperature is too high, there is no need to cover it to avoid pests and diseases.

218. Maintenance and management: After the work is completed, it is necessary to carry out regular maintenance until the lawn is developed. When the lawn is as long as about 5 cm, the non-woven fabrics can be uncovered.

Greening of Stripping Site

219. For the high-steep slopes in the stripping area, regreening will be conducted by planting climbing plants (creeper), and for the flat area in the restoration area (vegetation damage area), the land will be flattened for digging tree pit and planting. The tree species can be selected according to the local vegetation growth and planting conditions in each mining area.

Greening of Accumulation Area Platform and Flat Site

220. The restoration is mainly to transform abandoned mines into usable forest land, based on the restoration experience of AREMs in Ganzhou and local planning and development, the accumulation area platform and relatively flat sites are mainly for planting trees (pit planting) and covering the surrounding areas of planting with borrowed soil, and sowing mixed grass seeds.

26 KTC blanket is a new type of ecological slope protection and soil and water conservation products integrating composite fiber fabric, reinforced mesh wire and various grass materials.

221. Selection of trees: mixed with arbor and shrubs such as masson pine, silver leaf honeysuckle and Lespedeza, with a planting spacing of 2.5*2.5m (In Figure D-6, left is masson pine, middle is silver leaf honeysuckle and right is Lespedeza). The tree planting process is detailed in Appendix H.13.

Figure D-6 Selection of tree species Source: Baidu Image Gallery

Greening of Sedimentation Area

222. Due to the large amount of sand in the sedimentation area, the vegetation cannot grow all year round. After the terrain is leveled, in order to achieve vegetation restoration, the clay soil suitable for plant growth is covered for 15cm, the distance for borrowing soil within 5km, then mixed grass seeds will be sowed.

D.5.4 Water Intercepting and Drainage Works 223. The rainfall in the restoration area is relatively large, at the same time, due to the stripping of the topsoil and the destruction of vegetation, the mudslides in the restoration area are frequently caused and the soil erosion is serious. In order to make the drainage in the rainy season smooth, and to protect the safety of the accumulation area and platform, drainage ditches are constructed in the restoration area. Different types of drainage channels are designed:

Table D-8 Design Requirements of Different Types of Drainage Channels Types of Cross- Wetted Hydraulic Discharge Design flow drainage section ( ) perimeter radius (R) coefficient(C) (Q) channel (x) Type I 0.14 𝛚𝛚 0.95 0.12 53.70 0.28 Type II 0.57 2.20 0.27 61.95 1.13 Type III 1.28 3.20 0.40 66.03 1.89

D.5.5 Grit Basin 224. Construct grit basins where there is a faster water flow due to height difference or at the confluence of multiple drainage ditches, so as to provide functions of settling and energy dissipation, and prevent water flow from washing and eroding downstream sites. The design

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 58 Final Report NᴧREE of the grit basin is 5-10m length, 2-3m width and 1.5m depth, and the wall thickness is 25cm. 15cm thick gravel cushion.

Figure D-7 The grit basin at the foot of one abandoned mine Source: Ganzhou Natural Resource Bureau

D.5.6 Construction Site Access Road 225. Develop a convenient transportation network in the mining area to facilitate early site works and the later greening maintenance. Width of subgrade is 3.5m, laid with ore layer, inner side of road is provided with groove.

D.6 Restoration Measures for AREMs by Non-Government

226. In order to implement the national policy on encouraging the restoration of abandoned mines involving “third parties and social capital participation”, Dingnan County issued preferential policies, provided support and preferential treatment in terms of land use and infrastructure construction, and encouraged social enterprises and individuals to participate in the abandonment. In the repair of the mine, Wufeng Company, Weidian Company, Ruiyuan Biotechnology Co., Ltd., Debao Group and other enterprises and individuals such as Zhang Yuhua and Zhong Deyou participated in the restoration of abandoned mines.

D.6.1 Cooperation among non-government entities 227. Follow the principle of “cultivation, forest, water and engineering measures where suitable”, through the implementation of landscape and ground leveling, water retaining and draining, and planting and vegetation measures, the AREMs will be restored to become industrial land, farmland and forest land, complemented with other works including slope restoration, vegetation, retaining wall, drainage channel and soil remediation. It also provides

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 59 Final Report NᴧREE policy support measures such as financial subsidies, tax reductions, and loan tilts to encourage social capital to participate in the rehabilitation of abandoned mines. Enterprises and individuals determine different uses of land based on their own needs and capabilities. Therefore, there is a close division of labor between the government and non-government (enterprise and individual) in the repair of abandoned mines ( Figure D-8).

Figure D-8 Cooperation between government and social capitals in abandoned mines restoration Source: TA team Production

228. It can be seen that in the government's interest function, ecological benefits occupy the main body and are the first, followed by social benefits, and finally economic gains. For enterprises and individuals, as a subject of maximizing profits, the interest function is mainly based on the consideration of cost minimization and maximization of incomes. Of course, when pursuing the most benefits, this “leads unintended consequences”, such as promoting local economic development, driving employment and poverty alleviation, and increasing local fiscal revenue.

D.6.2 Forest-Fruit-Grass Model 229. The forest-fruit-grass model is currently the most widely used restoration model in Ganzhou City and Dingnan County. Through the restoration process as stated in D.5 and two to four years of post-maintenance, the vegetation coverage of the AREMs is over 80%, the height of some pine trees can reach more than 2m, and the diameter of the crown is about 2m. Then choose appropriate fruit trees for planting according to the properties of the local soil. The fruit trees planted on the AREMs in Dingnan County mainly include citrus and sweet pomelo varieties such as golden pomelo, wogan, and locust.

Dingnan County Case I:

230. Planting forest trees and fruit trees on AREMs is the most involved project of social capitals in Dingnan County. Among them, China Resources Wufeng Company's project in Dingnan County is the most representative.

231. The China Resources Wufeng Ganzhou citrus planting base locates on the abandoned rare-earth mine at Hanhuxikeng of Dingnan County. In the 1980s, a large number of rare earths were mined. The early backward “moving mountain” mining technology caused serious damage to the mining area and surrounding ecological environment, showing the state of sparse vegetation, vertical and horizontal gullies, and serious soil erosion.

232. In 2011, Dingnan County focused on the management of AREMs. The county government invested more than 1 million yuan to implement the interception ditch and retaining wall project in the mining area, which basically solved the problem of soil erosion, and the later management and protection became a problem.

233. The China Resources Wufeng Ecological Development (Zhangzhou) Co., Ltd. determined the project location during investment investigation, and planned to invest in the construction of a large-scale pig farm. The company invited experts to investigate, but through the test, it is known that the soil is very suitable for planting high-quality citrus, sweet pomelo and other fruits after slightly improved. Thus, the company adjusted its investment direction and changed the original farming to a boutique orchard project.

234. The company invested more than 30 million yuan to implement a small watershed management project. Through the implementation of topographic remediation, water storage and drainage engineering, and soil improvement projects, a new irrigation facility was built, and more than 30,000 Thai golden pomelo, wogan, and locust oranges were planted on the slope. For citrus and sweet pomelo varieties, an ecological and organic high-end orchard was planned and constructed, and the abandoned rare earth mine was transformed into “Mountain of flowers and fruits” (as shown in Figure D-9).

Figure D-9 Bird's-eye view of China Resources Wufeng Citrus Planting Base in Dingnan County Source: Dingnan County Government

235. The county also actively guides private individuals to participate in the remediation and utilization of AREMs. After the government invested in the hardening of access roads, the

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 61 Final Report NᴧREE mine undertaker Zhang Yuhua raised more than 5 million yuan of social investment, rectified the nearly 200-mu Changkeng tail rare earth mine in Lingbei Town, leveled the land in the goaf, excavated the reservoir, and planted cash crops such as navel oranges, melons and fruits.

Fruit safety - the case of the navel orange in Ganzhou

Zhong Linsheng's study (Zhong and Lu 2015) on the distribution characteristics of rare earth elements in the soil of southern Ganzhou navel orange orchard showed that the total amount of rare earth elements in the soil of the navel orange orchard was higher than the average content of rare earth elements in the soil of the Chinese mainland (186.80 mg/g), and the average content of light rare earth elements is 10.5 times that of heavy rare earth elements. However, studies by Liang T (Liang, et al. 2005) and Takada J (Takada, et al. 2002) scholars have shown that the order of accumulation of rare earth elements in different crops basically follows the law of decreasing from root to stem → leaf → flower → fruit → seed. The greater the migration distance of soil rare earth elements, the lower the rare earth content in fruit trees. Although the content of rare earth in the roots or leaves of soil or navel orange is high, due to the action of soil-plant barriers and the selective absorption and controlled accumulation of navel orange plants, the accumulation of rare earth in the flesh of the terminal organs of navel orange plants may also be very low (Wang, Tian and Gao 2018). Therefore, scholars have different views on the food safety in Ganzhou navel orange. For the safety of fruits, the Ganzhou Municipal Government has taken corresponding measures. For the quality and safety of navel oranges, the Ganzhou Municipal Government has formulated the “Safety Traceability System for Ganzhou Navel Oranges” to supervise various fertilization, medication and product quality in navel oranges to ensure that the quality of navel oranges meets the national food safety standards. Some navel oranges planted in AREMs are included in the national export quality narrative demonstration area for navel oranges. Although the local government has taken some measures, at present, the food safety of Ganzhou Navel Orange cannot be effectively guaranteed. In Ganzhou, there are many small-scale planting of navel oranges. After these navel oranges mature, farmers sell directly on the market or sell through e-commerce platforms, and many navel oranges do not pass relevant food safety tests. Therefore, it is recommended that local governments need to strengthen food safety inspections for navel oranges grown on abandoned mines.

D.6.3 Forest-Fruit-Vegetable Model 236. This model reorganizes the slopes of AREMs into flat land, constructs projects such as intercepting drainage ditch and retaining walls, and then improving the soil, such as removing the topsoil, covering the physical form of the guest soil, planting Bahia grass, foxtail, etc. Herbal planting reduces the soil's heavy metals, ammonia and other elements to a safe standard. Then, the land is converted into agricultural use and vegetables are grown to suit the local climate. This model requires that the ecological conditions of abandoned mines should not be too harsh, that is, the soil and water quality are less polluted.

Dingnan County Case II:

237. Dingnan County has obvious advantages in natural resources and has natural conditions suitable for the development of ecological agriculture. Shenzhen Debao Group makes full use of the natural resources’ advantages of Dingnan County to develop ecological agriculture in several villages and towns such as Xiazhuang Village, Jinji Village and Shuibang Village in Dingnan, which has promoted local economic development, promoted the employment of villagers and improved poverty alleviation performance.

238. Debao (Ganzhou) Modern Agricultural Science and Technology Park Project is invested and constructed by Shenzhen Debao Group, which is a group company mainly based on group meal service. It is the first group meal enterprise in Guangdong Province, daily supplying meals of more than 1 million person-times. The annual operating income is over 2 billion yuan.

239. The Debao (Ganzhou) Modern Agricultural Science and Technology Park project has a total investment of 510 million yuan, including the construction of 3,000 mu high-standard steel frame greenhouses and a 328 mu deep processing, refrigeration and sorting center.

240. The project takes the development of green ecology as the main aim, and aims to build a national-level modern agricultural science and technology ecological demonstration park. In accordance with the development concept of “one business combining three industries”, the project is dedicated to build Debao (Ganzhou) Modern Agricultural Science and Technology Park into a modern agricultural science and technology ecological demonstration complex with fruit and vegetable planting demonstration, nursery for growing plants, agricultural science and education, deep processing of agricultural products, food production, modern agricultural tourism, leisure, shopping experience.

241. Relying on good ecological advantages, after the project is fully completed, it will cooperate with Shenzhen Food and Medicine Administration and Shenzhen Standard Technology Research Institute to develop standards for supplying Shenzhen, and build Shenzhen supplying bases to help Dingnan vegetables go directly to Guangdong, Hong Kong and Macau Region. At the same time, through the strong chain of vegetable industry, we will promote the integration of agricultural tourism, leisure and tourism experience.

242. There are 139 households in 7 villager groups of the Xiazhuang Village involving in High Standard Vegetable Demonstration Base in Lishi Township, covering an area of 450 mu. All high-standard vegetable greenhouses will be planned. After the completion of the base, the development model of “company + base + village collective + farmers (poor households)” will be adopted to carry out high-quality, high-efficiency and ecological vegetable planting demonstrations, and radiation will drive neighboring farmers to develop vegetable cultivation.

Figure D-10 Dingnan Debao Ecological Agriculture Processing Park under construction Source: Dingnan County Government

D.6.4 Pig-Bioprocess-Forestry (fruit) 243. This model uses saprophytic organisms and pig manure produced from pig breeding to treat rare earth tailings. Under the technical measures of modern production and management, a large number of saprophytic organisms convert pig manure into living protein and organic fertilizer on rare earth tailings. The saprophytic organisms transform the pig manure while stirring in the tailings. Under their stirring, the organic fertilizer reacts with the tailings to form a high-quality soil that preserves water and fertilizer and nutrient-rich. Combined with the cultivation of economic forests (fruits), the objective is to achieve comprehensive treatment of pig manure pollution and rare earth tailings and reduction of soil erosion, and to develop green low-carbon circular ecological agriculture.

Dingnan County Case III:

244. In the treatment of AREMs, the biogas electricity generation project is currently one of the largest social capital projects in Dingnan County. The project will comprehensively control the disposal of rare earth mines, treatment of agricultural livestock and poultry pollution, and using clean energy.

245. Dingnan is a major county for pig breeding. In 2016, there were 723,600 pigs in the county, and 41,250 heads of live pigs, including 40,000 sows. On the one hand, it has the pressure of environmental protection, and on the other hand, it is the pillar of animal husbandry. The dilemma has once made the county “embarrassment when talking about pigs”. Until 2017, the county introduced Ganzhou Ruiyuan Biotechnology Co., Ltd. to build Zhenghe Ecological Park, and the problem of livestock and poultry manure treatment was completely resolved.

246. Zhenghe Ecological Park (Dingnan) Project is located in Dingnan County Lingbei Town, Ganzhou City, with a total area of 1,376 mu, including: 251 mu of agricultural waste treatment center, 125 mu of scientific research center and experimental land, and 1000 mu of energy ecological farm. The total investment is 126 million yuan. The project is constructed by Ganzhou Ruiyuan Biotechnology Co., Ltd.

247. Zhenghe Ecological Park (Dingnan) is guided by the concept of agricultural circular economy, focusing on manure management of livestock and poultry farms, restoration of ecological environment and resource utilization of agricultural waste. Taking large-scale biogas project as the core link, combined with organic fertilizer production and construction of energy ecological farms, it is to achieve the basic treatment of manure of large-scale farms, restoration of contaminated farmland and rare-earth tailings, and creation of regional energy ecological cycle agricultural park model.

Figure D-11 Zhenghe Livestock waste treatment plant Source: TA team field photes

248. The main construction contents of the Zhenghe Ecological Park (Dingnan) project: a. Establish an agricultural waste storage system to solve the pig farm waste and agricultural waste collection and transportation. b. Biogas power generation center: 20,000 cubic meters of medium temperature anaerobic fermentation tanks, one 3MW biogas generator set. c. Organic fertilizer center: an annual output of 30,000 tons of solid organic fertilizer and 380,000 tons of biogas slurry. d. Energy Ecological Farm: The first phase target is 1,000 mu. e. Research Center: Prepare an energy ecological farm and heavy metal pollution control engineering technology center.

249. The Dingnan Regional Energy Ecological Cycle Agriculture Park adopts the operation mode of “government guidance, enterprise-led, market-oriented operation”, which is an ecological cycle agricultural system project based on the comprehensive utilization of livestock waste and the remediation of rare earth tailings in three aspects:

(i) The pig farm is ecologically transformed, adopting clean production, and the manure is quantified and collected by a third party is fully, and the farm has zero discharge and zero pollution. Third-party processing centers receive sufficient fermentation feedstock. (ii) The Agricultural Waste Recycling Center utilizes fiber hydrolyzing technology, multi-feedstock co-fermentation technology, and high-temperature biodegradation technology to make resource utilization of agricultural waste such as cultured manure, sick and dead livestock, and energy crops. The biogas generated in the treatment center is used for power generation and grid connection. The biogas residue is made into solid organic fertilizer. The biogas slurry can be disposed of at the local energy ecological farm, or it can be further processed into liquid fertilizer. The liquid organic fertilizer can be applied to water and fertilizer integration technology. (iii) Energy eco-farm establishes a database of ecological energy crop resources by cultivating emerging energy crops, and establishes a sustainable supply system of biomass by using wasteland of tailings and abandoned farmland, and at the same time achieves ecological remediation of rare earth tailings, heavy metal treatment of farmland and biogas removal.

250. The project is the first national-level energy ecological farmland demonstration base in China, and has set up an ecological remediation and treatment station for abandoned rare earth mining areas, by carrying out rare earth tailings remediation and farmland heavy metal treatment projects, and built a 1000-mu demonstration base for ecological remediation of abandoned rare-earth mines.

D.6.5 Industrial Park Model 251. Dingnan County carried out land leveling of the abandoned rare earth mining area and developed it into industrial land. Currently, Futian Abandoned Rare Earth Mine Comprehensive Restoration Project in Dingnan County has been completed and accepted. After the implementation of terrain remediation and slope protection and greening, the ecological environment has been significantly improved. After the completion of the project, not only the ecological environment of the mining area has been greatly improved, it also generated 2,000 mu of additional industrial land, which alleviates the contradiction of the shortage of land in the industrial park, and reduces the impact on the water quality of the Dongjiang River source, ensuring that the people in the lower reaches of the Dongjiang River will have safe drinking water.

252. At the same time, the company actively introduced rare earth deep processing enterprises to settle in the industrial park, and actively carried out research on tailings utilization and industrialization technology. By building waste rare earth mines into industrial parks, we have achieved threefold objective, including land saving, resource reclamation and environmental protection.

Dingnan County Case IV27

253. The Dingnan County Futian Abandoned Rare Earth Mine Integrated Restoration Project is one of the three abandoned rare earth mine restoration projects in Ganzhou, as assigned by the three ministries in 2013, with a restoration fund of 142.66 million yuan. The area for restoration is about 1.1km228. Through the implementation of terrain remediation, slope protection and greening, and water interception and drainage, the industrial and mining wasteland will be restored into industrial land. The project was implemented in three phases. The first phase of the project was completed in June 2016; the second phase was completed in June 2018; and the third phase was completed in March 2019 (. After the implementation of the project, the environment of the mining areas is improved, the impact on the water quality of Dongjiang River source is reduced, furthermore, an additional 2000mu of industrial land is generated, which will provide land guarantee for the industrial development in Dingnan and its target to double the output in three years.

254. At present, there are 208 enterprises entering the park, 171 enterprises have been put into operation, 37 enterprises under construction, and 48 enterprises above designated size. In 2017, the industrial sales value reached 7.438 billion yuan, a year-on-year increase of 25.25%. The main business income was 7.413 billion yuan, a year-on-year increase of 14.8%, the industrial added value increased by 8.1%, and the total profit reached 783 million yuan, an increase of 11.91% over the same period. The infrastructure construction was 352 million yuan, a year-on-year increase of 468.39%. The fixed assets investment was 2.538 billion yuan, a year-on-year increase of 74.45%. The investment contracted funds were 3.852 billion yuan, a year-on-year increase of 125.58%. The project fund of over 100 million yuan was 3.645 billion yuan, a year-on-year increase of 142.1%, engaged in industrial production of 6,390 people, an increase of 29.38%.

27 The main source of information is: The basic situation of the industrial park in Dingnan County, the official website of the Dingnan County Government, http://www.dingnan.gov.cn/zsyz/gyyq/201804/t20180403_516954.html 28 Governor Liu Qi inspected the Futian Waste Rare Earth Mine Comprehensive Treatment Project, the official website of the Natural Resources Department of Jiangxi Province, http://www.jxgtt.gov.cn/News.shtml?p5=62387004

Figure D-12 A Corner of Dingnan Industrial Park Constructed on the Abandoned Rare Earth Mine Source: Dingnan County Government

D.7 Performance of AREMs Restoration and Future Priorities

255. According to statistics, in the 7 years from 2012 to 2018, the county invested about 260 million yuan in the restoration of AREMs; the county government urged the mining rights owner, Ganzhou Rare Earth Mining Company and the production contractor to invest a total of 25 million yuan, completed about 1.1 square kilometers of mines restoration work.

256. Judging from the current ecological achievements, the main goal of abandoning mines has been achieved, and the soil and water quality improvement is still in the early stage of exploration, and a combination of soil management and livestock and poultry pollution control is realized.

D.7.1 Vegetation Restoration 257. According to the requirements of the central government and the provincial government, by the end of 2018, all AREMs need to complete vegetation restoration. In August 2018, all the restoration of all AREMs in Dingnan County was basically completed. In 2018 alone, the restoration of 2.049 square kilometers of AREMs were completed.

258. On one hand, due to the terrain limitations of Ganzhou City, there are a lot of steep slopes in the AREMs. In rainy season, the vegetation restoration work is extremely difficult. On the other hand, due to some inadequacies in the restoration and management of some mining areas, some plants are not growing to expectations.

259. Therefore, according to the calculation of the relevant departments, the vegetation restoration work in Dingnan County has completed over 80%, and further improvement is needed.

D.7.2 Soil Improvement Performance 260. At present, Dingnan County and Ganzhou City are still in the early stage of soil management, and the effectiveness of governance has not fully manifested. The performance can be expressed as: Phytoremediation has a good improvement effect on the physical and chemical properties of the abandoned land in the mining area, which can increase the total organic matter content and concentration, increase the concentration of available nutrients, and reduce the level of heavy metal pollution in the soil. However, the phytoremediation

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 67 Final Report NᴧREE benefits of abandoned land in mining areas are closely related to the selection of restored plants. Some species have better soil fertility improvement, while others may have no significant effect on the chemical properties of rhizosphere soil (Liu and Duan 2007). Many eucalyptus trees have been planted in Dingnan County, and these trees have been proven to effectively improve soil acidity and increase soil organic matter content (Guo, Zhou and Zhang 2013). Pine, dog tail grass, and Baixi grass have strong coverage ability in AREMs, and have strong anti-stress ability to strong acid, heavy metal, high salt and high concentration rare earth elements in soil, thus, they can be used as pioneer plant restoration species to restore rare earth tailing areas (Zeng 2016) (Xiao, Li and Peng 2013) (Liu, Zhou and Yang 2013).

The mode of phytoremediation is mainly divided into six types: a. plant purification, mainly through the absorption of leaves and the filtration of roots to clean contaminated air and water; b. plant degradation is the transformation and degradation of plant root exudates and specific enzymes to remove organic pollutants in the soil; c. biodegradation of the rhizosphere is the transformation and degradation of organic pollutants by the metabolic activities of microorganisms such as mycorrhizal fungi and bacteria in the rhizosphere; d. plant extraction, e. plant evaporation, and f. plant fixation are mainly the use of plants absorbs accumulation, volatilization and chelation and precipitation of root exudates to remove and fix heavy metals and improve soil fertility.

261. From the test results of the project team on the soil, the effect of the remediation has not been reflected. The soil of some AREMs is extremely acidic and strongly acidic. The soil fertility is not strong, and some of the heavy metals are more than the local. The average level.

D.7.3 Water Quality Improvement 262. Since 2007, Jiangxi Province has fully promoted the in-situ leaching process (see C.2.2 for details of its process). However, in situ leaching processes may easily contaminate surface water and groundwater. The tail water treatment station is an important measure to prevent water pollution from in-situ leaching.

263. Figure D-13 shows the monitoring of the tailwater treatment station of an abandoned rare earth mine in Dingnan County. It can be seen from the figure that the pH of the influent water is extremely unstable, and in some time periods, it exhibits strong acidity; in some time periods, it shows strong alkalinity.

264. The monitored values show that the influent pH on July 19, 2018 was 4.14, which was the minimum value of the reporting period. During the period from July 2 to July 19, 2018, the influent pH averaged 4.27. On February 21, 2019, the pH of the influent water was as high as 9.61, which was the maximum value of the reporting period. In the 272-day monitoring data, the average value was 5.99, and the overall water body exhibited acidity.

265. Performance of tailwater treatment: a. The pH of the tailwater drain is generally stable with an average of 7.24 and a standard error of 0.17. b. The ammonia nitrogen value at the water outlet has a certain volatility, the minimum value is 0, the maximum value is 2.28 mg/L, and the average value is 0.61 mg/L (the red horizontal line in the figure). About 53.31% of the time (145 days), the national surface water category I discharge requirements were met. Although ammonia nitrogen has not yet achieved zero emissions, and the treatment work still needs further improvement, but the overall ammonia nitrogen emissions met the national surface water discharge standards.

Figure D-13 Monitoring of Tailwater Influent and Effluent Quality of An Abandoned Rare Earth Mine in Dingnan County Source: TA team Production

D.7.4 Realize “Using waste to treat waste” 266. As a major agricultural and aquaculture province in China, the problem of livestock and poultry pollution in Jiangxi Province is more severe than other provinces and cities. In the process of repairing AREMs, enterprises set up treatment plants in abandoned mines, collect pollutants from livestock and poultry, concentrate and convert them into biogas and generate electricity; meanwhile, improve the local soil through livestock manure, that is, re-use one pollutant to control another pollution, and achieve effects of addressing both waste problems (using bio-waste to treat mining waste).

D.8 Social Benefits after Restoration of AREMs29

D.8.1 Benefits of Poverty Alleviation 267. Ecological restoration + poverty alleviation: 36 respondents reported that the restoration of AREMs brought employment opportunities, accounting for 26.47%. The main forms of employment and income: (1) 32 villagers were temporarily employed to AREMs to engage in land leveling, planting trees, digging trenches and so on. The income of the villagers is calculated in days, 120-140 yuan/day for men and 80-100 yuan/day for women. (2) The two villagers contracted the land after the restoration and greening, and the earnings have not yet been reflected. (3) 4 villagers were employed in Futian Industrial Park (part of the industrial park is built on the restored abandoned rare earth mine), and the income is about 3,000 yuan/month.

29 The social and environmental impacts of the rare earth mining are discussed in Ali. S.H. (2014). Social and Environmental Impact of Rare Earth industries.

268. Industrial development + poverty alleviation: The abandoned rare earth mine is built into Futian Industrial Park. It is expected the newly generated 2,000 mu of land can receive 30 enterprises to settle down, which will bring in fixed assets investment of over 6 billion yuan, employment opportunities for over 20,000 people. In the AREMs, fruit trees were planted, Wufeng Company and Zhenghe Company hired local villagers. For example, Wufeng Company employs more than 50 villagers in the local area for the management of fruit trees such as navel oranges and honey pomelo. Weidian Company employs more than 20 villagers to grow ramie and kenaf planted in AREMs.

269. Agricultural Cooperative + poverty alleviation: Debao Company develop the model of “company + base + village collective + farmers (poor households)” is implemented to help the poor households increase their incomes and get rid of poverty, at least 20 local poor households and over 30 poor population are benefited, and the average household income is increased by over 10,000 yuan.

D.8.2 Economic Benefits 270. Alleviate the shortage of industrial land and promote industrial development: through the conversion of waste rare earth mines into industrial land, it will add more than 2,000 mu of industrial land to Dingnan County. At present, the park has formed advantageous industries such as textile industry, electronic information industry, mold industry, rare earth permanent magnet materials and application industry, non-ferrous metal industry and bio- pharmaceutical industry. Among them, the rare earth permanent magnet material and application industry is the priority industry in Dingnan County. In 2017, the main business income was 5.038 billion yuan, an increase of 17.99% compared with 2016, accounting for 70.56% of the total revenue of the park, and achieving profits and taxes of 920 million yuan.

271. Abandoned mines become agricultural parks, driving agricultural development: Take the Wufeng Ganzhou citrus planting base as an example. The company has planted more than 30,000 varieties of citrus and sweet pomelo varieties such as Qin Guojin pomelo, Wogan, and Maogu. In 2018, the citrus planted at the planting base just hanged fruit, and it ushered in a bumper harvest. The company expects to produce more than 3,000 tons of high- end fruit per year during the high-yield period, with an annual output value of more than 18 million yuan. The construction of a boutique orchard has contributed to the local economy, and it has also provided demonstrations for other farmers to participate in fruit trees and the possible spillover effects.

D.9 Deficiencies in Restoration of AREMs

D.9.1 Restoration contents a. Insufficient Maintenance and Management of Vegetation

272. On the one hand, strengthen the post-management and maintenance of AREMs. There are quite a few ecological restoration projects not delivered in time after completion, and the responsible entity for maintenance was not in place. The subsequent management and maintenance are inadequate, resulting in serious damage to the restored mines and reoccurrence of vegetation degradation and soil exposure. A long-term mechanism should be established to strengthen inspections, identify late management and maintenance entities, make available of project management and maintenance funds, strengthen mine closure management, and consolidate environmental restoration achievements.

273. On the other hand, replanting should be conducted for AREMs with poor restoration results. Due to inadequacies in the aspects of restoration, the results of some mines restoration are worse than that of other similar mines. If the enterprises are accountable, they should be required to take remedial measures within prescribed timeframe; in case of natural causes, additional restoration funding may be provided to enhance the vegetation restoration results. b. Insufficient Management of Water Pollution Control

274. Compared to vegetation restoration, water pollution control will be a long-term and arduous task for Ganzhou and Jiangxi Province in the future. According to the survey of community residents and the results of water quality testing, the demand and necessity of water pollution control are constantly increasing. Governments at all levels in Jiangxi Province should raise awareness on the importance of water pollution control and establish that water pollution control is safeguard for sustainable development of mining industry, and a livelihood project to improve ecological environment.

275. As the pressure on capital investment exceeds the county fiscal capacity, the water pollution control in Dingnan and other counties of Ganzhou is in its infancy. However, as the county where mines restoration is most pressing, Dingnan currently only invested in the construction of two tailwater treatment stations. Given to the quantity of mines and geographical conditions, 8-10 tailwater treatment stations are needed. There is a funding shortage of 160~200 million. It is estimated that about 1.5~2.0 billion of funds will be needed for construction of tailwater treatment stations for the main rare earth production areas in Ganzhou. c. Lacking Measures for Soil Improvement

276. In soil improvement, a small number of AREMs use livestock manure or other soil amendments, while more mines rely mainly on natural or plant absorption to digest excessive heavy metals, ammonia and nitrogen.

277. Due to the high input cost and low profit of the former method, the possibility of large- scale implementation is low. Relying on the nature requires a long period of time, and there is infiltration to groundwater due to rain-wash. Therefore, from the perspective of cost and time, it is more reliable to grow acid-resistant grass and trees that can effectively absorb heavy metals, ammonia nitrogen, such as crabgrass, Bermudagrass, and Paspalum, Thrushcross, Slash pine, Cinnamon tree, etc.

D.9.2 Insufficient Economic Benefits 278. Dingnan County has achieved significant ecological benefits in the restoration of AREMs, however the conversion of the ecological benefits into economic benefits is limited, and the estimated conversion ratio does not exceed 10%. According to the thought of General Secretary Xi Jinping, "Green Mountains and Clean Water Equal to Maintains of Gold and Silver", it is critical for the mines restoration to dwell upon how to transform the natural ecological advantage into economic and social advantages, explore mechanisms to realize the value of ecological products, and establish a path with government leadership, enterprise and social participation, market-oriented action and sustainability.

279. The economic benefits are difficult to achieve due to the poor land transfer mechanism. Since the interests of above-ground and underground belong to different subjects, when realizing land transfer, social capital---enterprise or individual must communicate and

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 71 Final Report NᴧREE negotiate with multiple subjects. If the land involves multiple villagers, the transfer costs will be greater, so that the transfer cannot be achieved. For example, the case of Zhenghe Ecological Park introduced in this section has been completed for nearly three years from the project establishment, but the land acquisition work has only completed about 80%, and there are still more than 200 mu of land that has not been transferred.

280. When exerting social and economic benefits, it is necessary to further clarify forest rights and land rights. Dingnan County can apply to carry out national pilots of transfer of land rights and forest rights in abandoned rare earth mining areas to improve the social and economic benefits of AREMs.

D.9.3 Lack of R&D and Promotion of Restoration Technologies 281. Technical cooperation with scientific research institutions is insufficient. Jiangxi University of Science and Technology, Jiangxi Agricultural University, Provincial Nonferrous Metal Research Institute and other research institutes have many research results in the restoration of abandoned mines. According to the soil quality of rare earth mining areas in Jiangxi Province, the techniques of soil remediation under various conditions have been studied, and crops suitable for planting have been selected. However, the results of production and research are slow to change into products, and local governments cannot apply these research results in practice.

282. The research and development of tailwater treatment technology is insufficient, which needs to reduce treatment costs and improve treatment efficiency. It is understood that the treatment performance of the tailwater treatment station needs to be further improved. The water quality of the effluent in some periods is highly volatile, the stability is not high, and in some cases, the discharge cannot meet relevant standards.

D.9.4 Insufficient Investment in Restoration of AREMs 283. The former Deputy Minister of the Ministry of Industry and Information Technology estimated that the clean-up cost of abandoned mines in Ganzhou would need to be 38 billion yuan. Such a large amount of capital needs, relying solely on the financial input of Jiangxi Province and Ganzhou City, is far from enough. Therefore, it is necessary to encourage active efforts to obtain various funds to enter the recovery project of abandoned mines.

284. The participation of various types of social capital in the rehabilitation of abandoned mines is still not enough. The participation of various types of capital in the society is mainly concentrated in the stage after the restoration of vegetation.

285. There are competitive low interest loans and technical support available from international institutions such as the Asian Development Bank and the World Bank. It is reported that international institutions such as the Asian Development Bank provide China with special loans and technical support for ecological restoration. For example, Jiangxi Xinyu Kongmu River Watershed Flood Control and Environmental Improvement Project has received a loan of 100 million U.S. dollars.

D.10 Summary

286. As the main producing area of Ganzhou rare earth, Dingnan County has a history of rare earth mining since the 1980s. It has various abandoned mines left over by mining techniques such as pool dipping, heap leaching and in situ leaching with a strong research

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 72 Final Report NᴧREE value. The project team collected a lot of useful information through the “one-on-one, face-to- face” survey with the villagers, and also collected a wealth of soil and water samples.

287. The survey of community residents found that: (1) The production and domestic water of residents are affected by abandoned mines. Even if these mines have been shut down for many years, the closer the residents to the abandoned mines, more serious issues of production and livelihood will be affected. (2) The impacts of abandoned mines on villagers are as follows: the agricultural harvest is reduced, and even some villagers are failure to harvest; the villagers need to find new water sources to avoid the impact of abandoned mines, for which they need to support 1,000-3,000 yuan/household expenses for water diversion; the vast majority of villagers believe that AREMs affect everyone's health, many of them believe that there are more serious illnesses in the village caused by abandoned mines; some villagers' houses are also affected by geological disasters caused by abandoned mines. (3) In terms of the way of influence, the villagers believe that the water source is the most important, and the soil is the second way to influence.

288. The water and soil experiment found that: (1) the soil remediation effect is not obvious, and soil still shows the characteristics of extremely strong acidity and strong acidity. The soil fertility and nutrient preservation have not been effectively improved (the effect on different crops is different). The existence of these issues will pose a continuing threat to surface water and groundwater. (2) Due to the lack of proper and effective treatment measures, groundwater (well water) consumed by residents and spring water drawn from the mountains do not meet the sanitary standards for drinking water. (3) There is still a lot of room for improvement in the treatment effect of tailing water. Some heavy metal indicators exceed the “Ion-type rare earth mine water pollutant discharge standard” (document issued by the Jiangxi Provincial Government), and the impact of tailing water on the environment should be paid more attention. (4) There is a problem of mutual influence between water and soil pollution in abandoned mines, and the problem of water and soil pollution is still severe in the tailings area that has been shut down for more than 10 years. Therefore, abandoned mine management is a systematic and long-term project.

289. Due to the different interest functions of the two main bodies (public and private sector), the restoration and cooperation measures are quite different: the government is mainly responsible for terrain remediation, soil erosion prevention, vegetation re-greening, etc., and the pursuit of ecological benefits, that is, the realization benefits of “clean water and green mountains”; while social capitals and individuals are more concerned about how to use the abandoned mines to achieve their own economic benefits. The cooperation between the two types of subjects can be summarized into four types of models: “Forest-Fruit-Grass, Forest- Grass-Vegetable, Pig-Bioprocess-Forestry (fruit), and Industrial Park”. Through the joint efforts of the government and non-government entities, the three major benefits of ecology, poverty alleviation and economy have been realized.

290. However, there are still many shortcomings in the restoration of abandoned mines in Ganzhou City, represented by Dingnan County: the depth of treatment of the mines is still insufficient, mainly staying in the stage of vegetation restoration; the attention to water and soil quality improvement is not enough, and this is precisely the main factors affecting villagers' production, livelihood and physical health; the participation of social capital is still in the early stage, not implemented in a large area, and the economic benefits of abandoned mines are still small; the problems of inadequate technology and poor land transfer mechanism are still grim; and the problem of drinking water for the villagers needs to be continuously improved. These issues are the focus and direction of governments at all levels to consider and take actions.

E INTERNATIONAL EXPERIENCE IN THE REMEDIATION OF MINING AND RARE EARTH MINES AND THE IMPLICATIONS FOR CHINA

E.1 Criteria for the choice on international case studies

291. The criteria used for the choice of international case studies included were as follows:

• The importance of surface and other mining techniques in the economy • The experience of other countries other than PRC where rare earth (RE) and other mining has a history, principally Australia, Brazil, Canada, the EU and the US. • Experience in the remediation of abandoned mines • Quantitative and qualitative analysis of different approaches to the remediation of abandoned mines. Including cost-benefit, cost effective (CEA), least cost and multi- criteria analysis (MCA) to assess the economic and financial benefits of different approaches to remediation models • The direct and indirect costs and benefits of remediation including the impacts on health, water and soil quality, health, agriculture, forestry and employment • The potential for land use and sustainability post remediation. • The use of remediated mine land for economic development, including industrial, science parks and cultural facilities including industrial museums which trace the history of mining. • The legal and regulatory frameworks that individual countries have introduced to manage surface and deep mining and have undertaken remediation. The issues of pollution, environmental, health and other impacts associated with remediation and the management of abandoned mines.

292. The case study countries include some specific types of mineral exploitation including heavy metals, coal, rare earths and other minerals. Most of the case studies are for surface or strip-mining approaches although some are based on the remediation of other types of mining. Inevitability the impacts of mining. In terms of comparison with and the lessons learned from the international case studies there are a number of factors which affect the case studies, they include:

• Topography and land slope • Location – in remote areas or in populated areas. • Soil types and the mix of minerals exploited. • Hydrology and water catchments • Rainfall and other climatic factors. • The extent of mineral processing industries.

293. This chapter incorporates some of the findings and analysis contained in the Interim Report but builds on these foundations with additional material.

E.2 The Economic background to RE and other mining in Jiangxi Province

294. PRC is on the global scale and in terms of reserves of REs and other minerals has some of world’s most significant mineral reserves, particularly for REs. Jiangxi province has a number of mineral resources including copper, tungsten, fluorite, molybdenum, uranium, tin and zinc as well as rare earths. At the regional level Table E-1 shows the sectoral and specifically the relative contributions of mining and mining processing to the economy of Jiangxi province. At the national level, Jiangxi is a major producer of REs and other minerals, it is therefore an important sector for the Chinese economy.

295. Activities in the mining, mine remediation and mineral processing sectors generate value added, a contribution to provincial GDP and employment generation. On the international scale, PRC remains the most important producer of REs and some other minerals. China is also the leading exporter of rare earths and other minerals which again puts Jiangxi Province as an important international player.

296. It is estimated that Jiangxi Province produces 38 per cent of the total REE production in China and 50.3 per cent of high grade rare earths (Ministry of Land and Resources:2016). These figures show how important REE mining and processing are to the Jiangxi and national economies via direct and indirect employment in mining, remediation, 4.4 per cent of provincial GDP and 7.6 per cent of primary and secondary sectoral GDP. The distribution of mining by sub sector is shown in Figure E-130. Estimates of the relationship between remediation costs, the sales income of the RE industry in Ganzhou Prefecture in 2011 (Yang, et al. 2013), show that while past remediation costs totalled US$ 5.8 billion, the sales income of RE enterprises was only US$ 4.7 billion while the annual profit of Ganzhou’s RE industry was only US$ 0.3 billion over 10 years. It would be interesting to know whether the profitability of the industry has improved since 2011.

Jiangxi Province - Contribution to provincial GDP of the mining sector

1.1, 8% 1.3, 10% Mining and washing of coal

5.2, 38% Mining and processing of ferrous metal ores Mining and processing of nonferrous metal ores Mining and processing of non- 5.9, 44% metal ores

Source: Jiangxi Province Statistics Bureau (2018)

Figure E-1 Jiangxi Province – Mining and Processing of Minerals

297. It is recommended that macroeconomic analysis of RE mining and processing and its direct and indirect contribution to the provincial and national economies is estimated using

30 Jiangxi Province Statistics Bureau.

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 75 Final Report NᴧREE existing financial and economic data. The financial and economic analysis of RE mining options and a theoretical approach to this analysis are shown in the following sections.

E.2.1 The Regional Environmental Impacts of REE mining in Jiangxi Province 298. The impacts of REE mining in Jiangxi Province and Dingnan and other Counties in Jiangxi go beyond Jiangxi. The pollutants from REE mining in Jiangxi flow into the Ganjiang and Dongjiang rivers and from these rivers into the Yangtze and Pearl rivers (Rare Earth Mining: 2015) and other Chinese sources. It is not clear what the impacts of these are on water quality, health and any economic impacts.

299. Meng and Ji (2007) showed that the concentration of dissolved REEs in the Ganjiang river was elevated when compared with the average concentration of these REEs higher than the Chinese national average notably for europium (Eu), lanthanium (La), lutetium (Lu), samarium (Sm), terbium (Tb) and ytterbium (Yb) with concentrations ranging from 0.004 (Lu) to 2.412 (La) μg/L. It is to be confirmed that there is a regional watershed and catchment approach to managing these effluent flows.

Table E-1 Jiangxi Province GDP; sectoral and mining data (USD) ITEM Value (USD billion) Comment Primary industry 28.9 Assumed to include mining Secondary industry 147.6 Assumed to include the processing of minerals Tertiary industry 131.6 TOTAL GDP 307.1 Mining and processing of 1.1 ferrous metal ores Mining and processing of non- 5.9 Assumed to include REs ferrous metal ores Mining and processing of non- 5.2 This category is assumed to metal ores include rare earths Total mining and mining 13.3 processing Mining and processing as a 4.3 % of provincial GDP

Source: Statistics Bureau of Jiangxi Province

E.3 Appraisal Methodologies for future mining and remediation.

300. While it is not clear to what extent economic and technical appraisals are carried in the mining sector in PRC nor to the extent such appraisals are carried prior to and subsequent to mine remediation, international experience and the approaches to evaluation include a number of common features. In the case of Jiangxi Province and mine remediation, there are two mine situations:

• Mines that have been abandoned • Mines that have been abandoned and selected for remediation or partial remediation

301. The timing and phasing of mine remediation and restoration in Jiangxi to be undertaken by the public and private institutions at the levels of central government, provincial authorities is understood to be under way.

302. The Environmental Protection Agency (EPA) in the US includes such factors as waste characterization, water quality, site characteristics, liners, site hydrology and water treatment. The market and non-market benefits of mining remediation. The market benefits from mining remediation may include the following:

• Redevelopment of land for agriculture and livestock • Redevelopment of land for forestry and tree crops • Use of remediated land for infrastructure including industrial and business parks, housing and other infrastructure • Renaissance of mining activities • Creation of new employment activities

303. The non-market benefits of mine remediation are more difficult to measure without more detailed surveys, they include:

• The health benefits from reduced exposure by populations living near mining sites including heavy metal deposits and radiation. • Improvement of the landscapes and other amenities. • The willingness to pay (WTP) for these benefits, a technique which would require precise questions in communities which are low incomes.

304. The future economic and financial evaluation of remediation options for abandoned surface mines will depend on the collection of specific data on the investment (CAPEX) and operating (OPEX) costs. The key cost components are shown in Table E-2 and Table E-3 below.

Table E-2 Elements of the Financial Analysis ITEM Investment Costs (¥ 000) Comments Project design Total cost The organization responsible (¥ 000) for project design and planning Earth removal from site and Costs per km2 or m2 (¥ 000) There is the issue of waste earth deposit in another removal of contaminated soils location. and storage Erosion control Costs per km2 or m2 (¥ 000) This will vary according to factors such as slope and location Grass planting Costs per km2 or m2 (¥ 000) The time frame for establishment Forest tree planting Costs per km2 or m2 (¥ 000) The time frame for (eucalyptus) and pine establishment Fruit tree planting Costs per km2 or m2 (¥ 000) The time frame for establishment. Monitoring of effectiveness of such plantings needs to be established. Water treatment Cost per cumec treated Investment costs of water treatment works Total Operating costs (¥ Operating costs (¥ 000/year) 000/year) Additional remediation works Additional remediation works may be necessary over a period in the event of inadequate remediation

Table E-3 Annual Operating Costs ITEM Annual Operating Costs (¥ Comments 000) pre and post remediation Plant, fertilizer, costs Annual operating costs Reforestation and the planting of fruit trees and their maintenance Irrigation water Annual operating costs Irrigation water requirements may vary according to the stage growth of remedial plantings Monitoring of Annual operating costs Monitoring agency remediation impacts Management Annual operating costs Maintenance and Operation Labor Annual operating costs Skilled and semi-skilled labour requirements Temporary Annual costs This assumes to temporary resettlement costs resettlement costs may be paid by public authorities and or the private sector separately or as part of compensation packages Compensation costs for Annual costs during mine These will be based on agreed affected groups remediation guidelines for compensation for building repairs and other damage and other costs which have been borne by villagers resulting from RE mining. Continued remediation Annual operating costs Including RE mining areas, work tailings and radioactive elements. Energy Annual operating costs Use of fuel and electric power for remediation Transport Annual operating costs Transport of planting inputs Laboratory testing Annual operating costs Testing of soil quality and growth factors Insurance Annual operating costs Insurance for planting failure (if that is feasible)

305. Cost-benefit analysis (CBA) may be employed but it is recognized that international experience shows the limitations of this technique. Central to these limitations is the availability of good cost and benefit data. Given that the direct impacts of remediation investment and operating costs may be measured and certain benefits including restored agriculture, forestry, the uses of remediated land for industrial development, housing and other infrastructure.

Table E-4 Annual Financial Benefits ITEM Financial Benefit ((¥ 000) Comments Restoration of forest Value of production on remediated Depends on incremental and agricultural land: agricultural production and production of rice and other production31 forestry products32 crops, livestock production. No data available yet. Improved water Positive impacts on surface and Lack of precise data to measure quality groundwater quality and therefore on the financial benefits. This will require longer terms measures.

31 The survey indicated that 27 per cent of respondents in some cases had returned to agriculture on remediated land. 32 The evidence of the success of phytoremediation with respect has been shown by a number of authors and in the case of Jiangxi Province, an analysis was made by Changfeng et al (2015).

ITEM Financial Benefit ((¥ 000) Comments the use of potable water and water for irrigation Infrastructure Increased value added, employment Associated with Industrial Park and payment of local taxes. development on remediated land. Financial losses Financial losses foregone with With no mine remediation the remediation problems of pollution and their impacts on soil and water quality may worsen. 306. Other benefits are difficult to measure and it is costly to obtain accurate data. These impacts which do not have market value indicators, include the benefits to health, housing and other infrastructure. CBA results may not consider which remediation approaches are taken and the financial and economic indicators may change over time given the time frame for remediation. Another approach which may be the taken is to assess the preventative cost of avoiding or minimizing the negative impacts of mining on the environment or the cost of restoring degraded land to the pre mining state.

307. Another method of evaluation is cost effectiveness analysis (CEA). This technique has been used on surface mining projects in Queensland, Australia (Golding 2002) and in the United States. The advantage of CEA is that it requires less data that CBA. The main aim of CEA is to estimate the costs of reaching certain objectives in the most cost-effective way. In terms of mining remediation, these could include the costs of:

• Alternative approaches to mine remediation • Meeting PRC and or local standards for water quality • Meeting PRC and or standards for soil composition • Managing tailings and other effluent controls • Attaining targets for different uses of land after remediation • Geotechnical stability • Land use capability The mitigation of socio-economic impacts

308. Least cost analysis (LCA) is another technique for measuring the costs of mine remediation. In the case of abandoned mines, one measure would be the least costs of reaching PRC and prefecture environmental standards for each of different remediation options. The costs will have to take into account a number of factors depending on the remediation site including geology, geomorphology and the presence of settlements and infrastructure.

309. The objective would be to quantify the ecosystem service values, ecological and human use values which are linked to remediation but also to incorporate the risk factors associated with the costs and predicted changes in risk. CEA is a simpler technique than CBA in that it uses monetary measures to achieve certain rather than to measure the market and non-market costs and benefits. The remediation of abandoned mines is almost certainly subject to budgetary limits and to that extent it can illustrate alternative he investment and operating cost requirements over a given period.

310. Two other approaches to measuring the costs of environmental damage are the preventative and replacement cost methods. The preventative cost method assumes that the value of the environmental source is equal to the cost of preventing or mitigation the environmental damage or restoring the environmental asset while the replacement cost method infers the environmental quality from the cost or replacing the degraded environment to the level before the damage occurred.

311. An important part of assessing the approach to and impacts of remediation is the valuation of ecosystem services for which in some cases it will not be possible to give monetary values. In the context of surface mining in Jiangxi and other mining areas of the PRC these services include natural environment benefits including food and timber resources, grassland, climate regulation, air and water purification, air quality, water purification and regulation, soil formation, natural hazard protection including flood control, landslides and erosion control.

312. The economic value of environmental damage and marginal cost analysis

313. As mentioned in previous sections of this chapter and in Sections B, D, F and G, environmental damage is mainly the result of damage to ecosystems including fauna and flora, water resources and the impacts on health and agricultural production. The economic value of environmental damage is discussed earlier in this chapter including both direct, indirect and external costs. Where the costs of environmental damage are quantifiable then the then the marginal cost is there are the additional costs in complying with PRC standards as well as other remediation costs. In an optimal situation:

314. Marginal damage costs = marginal damage avoidance costs

315. In the case of Jiangxi mining the above calculation are future costs of mine remediation current marginal damage costs need to be compared with the costs of avoiding environmental damages, including meeting PRC water and soil quality standards. These damages include the environmental damage to ecosystems and other impacts including pollution to water and treatment supplies, erosion control compared with the costs of environmental avoidance benefits on agricultural and forestry production and other direct benefits. Another approach to marginal cost analysis is to compare the cost of an area of remediation (costs per mu or ha remediated) against the quantifiable benefits on agricultural and other productive benefits per mu or ha.

316. Qualitative assessments of AREMs

317. In the absence of quantitative data of remediation investment and operational costs, qualitative assessments may be made. This is particularly the case of the health and water quality impacts, although with further research it may be possible to quantify these impacts.

318. Risk and uncertainty assessment and the remediation of AREMs

319. Risk analysis is an important component of the financial and economic evaluation of mine remediation. In principle given that the precautionary principle is accepted in China this is an important component of risk evaluation. The first stage of risk evaluation is to identify implementation risks and therefore to integrate these into a risk assessment. One simple but basic method is the use of sensitivity analysis through varying cost and benefit assumptions and calculating their impacts on project net present value (NPV) and the return to investment – the financial and economic rates of return (FIRR and EIRRs). Risk assessment at the broad level requires:

(i) Sensitivity analysis (ii) Probability of critical variables (iii) Risk analysis (iv) Assessment of acceptable levels of risk (v) Risk prevention

320. In the case of AREM the risks are:

(i) Changes in the prices of REEs on the Chinese and international markets (ii) Foreign exchange impacts between the yuan and international currencies on imported equipment and services. (iii) Delays in obtaining finance for AMREM remediation and delays in implementation (iv) Price changes in capital equipment for remediation (v) Public and private investment in AMREM remediation (vi) Fluctuations in the costs of plant and equipment where these are imported (vii) The take up and success of phytoremediation in AMREM areas (viii) A lack of remediation of tailing ponds and the risk of potential tailing dam failure with major impacts on the local population notably in areas downstream of the dam site.

E.4 Approaches to the remediation of RE mining areas33.

321. The improvement of the environmental performance includes;

• Remediation: reversing of stopping damage to the environment • Reclamation: the process whereby land is returned to a state that can be used for different purposes – industrial parks, housing and other infrastructure and • Rehabilitation: where land is restored to the previous state prior to mining.

322. As discussed earlier in this study the remediation of RE areas will require different approaches according to a number of factors, including, geology, slope, settlements, population distribution location and existing land use. Other factors which affect the choice of remediation approach will be the relevant net benefits and cost effectiveness of different techniques. There are a number of approaches to mining remediation some of which have been highlighted in other sections of this study

323. The main techniques which may be applied to surface mining as in the case of abandoned mine sites as in the case of southern Jiangxi are:

• Physical remediation: ploughing, top soil addition and contouring • Chemical remediation: including changing the physical and chemical properties of soils • Bio remediation: phytoextraction with the translocation of heavy metals and RE deposits and phytostabilization including the immobilisation of heavy metals, soil remediation and the planting of fast growing plant and tree species.

324. Apart from soil removal and deposit one current approach to remediation as discussed elsewhere in this report is phytoremediation and biochar development, the success of these methods depends on a number of factors including the choice of appropriate species of plants including fruit trees, grasses and tree planting as well as other measures including erosion control and slope stabilisation and the monitoring of plant, tree and fruit tree development. The optimisation of mining consists of four stages which are summarised in Table E-5. This

33 Cooke JA, Johnson MS (2002)

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 81 Final Report NᴧREE assessment tool (Barakos et al: 2016) 34 is important in that it illustrates the procedures that may be applied in the event of recommencement of RE mining after remediation is complete.

Table E-5 Assessment tool for mining optimization Preliminary Basic Evaluation Special evaluation Final decision Geography Geology Economic factors Preliminary economic assessment Infrastructure Geotechnology Technology Prefeasibility study Minerology Ranking of mining Environment Feasibility study methods Metallurgical tests Surface or Socio-political Decision to proceed underground mining Value chain Unsuitability of mining Health and safety Issue of licences methods

Weighting criteria Sensitivity analysis Source: Barakos et al: 2016

Figure E-2 Ecosystem Services and Well-being

325. Surface mining through the removal of vegetation cover and the impacts of the mining on soil and slope stability as well as the pollution impacts are major threats to the environment

34 Barakos, G., Gutzmer, J. and Mischo. H. (2016). 建立强大的供应链的战略评估和采矿流程优化。可持续采矿期刊, 15 pp. 26-35

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 82 Final Report NᴧREE and the provision of ecosystem services which threaten human activities and the economies adjacent to mining areas.

326. Another approach to mining or environmental remediation is net environmental benefit analysis (NEBA) (Colombo, et al. 2012). In the case of surface mine remediation in Jiangxi Province, the process would estimate the gains in the value of ecosystem services or other ecological properties attained by remediation or ecological restoration minus the quantifiable (costs) or qualitative benefits.

327. These estimates could then be used to compare net environmental benefits (NEBs) with different management alternatives. The stages that could be undertaken for a NEBA would include to following plausible remedial alternatives:

• Quantify ecological service losses and gains associated with implementation of each remedial alternative • Quantify human use service values associated with implementation of each remedial alternative; • Evaluate how human health and ecological risk profiles might change theoretically as a result of the implementation of each remedial alternative and • Develop order-of-magnitude cost estimates for each remedial alternative.

328. Such alternatives could include:

• Leaving the contamination in place if the cost estimates exceeded the benefits • Carrying out remediation using physical, chemical and biological remediation and • Improving ecological values on site and • A combination of the above options.

329. It is clear that any sampling and analysis of different soil and water samples will differ between different mines and mining areas and therefore one solution might be to take a number of sampling as was carried out during the field surveys. A study of Portuguese abandoned mines by Matos et al (2018) assessed the use of MCA as applied to the recovery of abandoned mines (Matos, et al. 2018). Using the results from the study it was possible to compare the impacts of remediation for individual mines. With respect to mines in Jiangxi it is yet to be decided the prioritization of remediation for individual abandoned mines.

330. A study by Wang, et al. (2017) looked at land suitability analysis and the issue of ecosystem services on mining reclamation schemes where there has been degraded ecosystems. The ecosystem services included product supply, water conservation, soil protection and fertility, carbon sequestration, oxygen release and air purification rainfall. The aim of this analysis is to estimate on a hierarchical the potential suitability of land in the remediated or areas to remediate including the suitability for agriculture, forestry and other development. The land suitability was graded according to the suitability for different uses including not suitable, marginally suitable moderately suitable and highly suitable.

331. This study was carried out using a case study in a mining area of Liaoning Province, although such a methodology might be applied to other mining sites such as those in Jiangxi Province. Wang et al (2017) produced a methodology for ecosystem services evaluation which is shown in Figure E- 4. This article provides a conceptual approach to ecosystem valuation rather than producing actual costs and benefits and stresses the need for the value of ecosystem services to be integrated into the choice and valuation of these services according to specific the remediation of specific mining sites.

Figure E-3 Valuation of selected ecosystem services

332. The results of financial and economic evaluation results and the impacts of the neighboring environment and ecology in the mining areas will vary considerably according to slope and topography, soil characteristics, mineral deposits and location. There is therefore a question of whether the evaluation results should be the average over a range of mines or for individual mines. It may be that individual mines will require different approaches to remediation including the relative requirements for biological, chemical and physical remediation.

Table E-6 Outline format for Multi-Criteria Analysis AREA Dingnan County OBJECTIVE CRITERIA AND MEASURES WEIGHTING (1- TIME 100)35 PROFILE (YEARS) Quantity of contaminated soil Remove contaminated soil removed by area and by 90 5 volume Improved water quality to meet Quantity of water meeting 90 5 national standard national standards m3/% Rectify damaged infrastructure Number of houses repaired 60 3 New housing constructed Number of houses built 60 5 Improve health status of village Reduction in morbidity and 90 5 populations mortality (%) Restore land to forestry Area restored (ha/mu) 70 6 Restore land to agriculture Area restored (ha/mu) 70 6 Restore landscape to pre- Improve landscape 40 4 mining appearance (area m2)

35 These weightings purely included as examples.

Table E-7 Mine Remediation criteria WEIGHTING (1- OBJECTIVE/TARGET CRITERIA AND MEASURES 100) Pollution reduction Water, soil, effluent chemistry Quantity of contaminated soil Remove contaminated soil removed by area and volume 90 (km2/m3) or ha/mu Total remediation of mine Approval by PRC and Jiangxi

completed authorities Improved water quality to meet Quantity of water meeting national 90 national standard standards m3/% Rectify damaged infrastructure Number of houses repaired 60 New housing constructed Number of new houses built 60 Improve health status of village Reduction in morbidity and mortality 90 populations (%) Restore land to forestry Area restored (ha/mu) 70 Restore land to agriculture Area restored (ha/mu) 70 Restore landscape to pre-mining Improve landscape 40 appearance (area m2) Number of new infrastructure Developing additional new uses developments planned and 50 for remediated land developed The number of full time equivalent Generate more employment 50 jobs created Environmental assessment (EIA) See mining approval documents and 80 carried out licence conditions

333. A final approach to estimating non-market values is contingent valuation or willingness to pay for environmental improvement or to avoid environmental degradation or expressed choice theory to estimate how much people would be prepared to pay for such positive improvements in the environment and landscapes. In the case of mining case studies in Jiangxi Province and other mining areas this method would require extensive surveys which may have very subjective opinions depending which category of the population is surveyed.

334. Poverty alleviation in the context of economic development and ecosystem service. Poverty is closely linked to environmental damage and the loss and or reduction in the availability of ecosystem services. This section of the report considers some of the main elements of poverty and therefore the areas where intervention by the state, local authorities and in some cases the private sector could be involved.

335. One of the main purposes of the study is the alleviation of poverty in areas of RE mining in southern Jiangxi Province. This aim is emphasised in the ToR for the study and in previous sections of this report, notably in Sections B, D and G of the report. These sections include the impacts of RE mining on the health, local economy and ecology of the mining areas as well as policy recommendations for poverty alleviation.

336. In this section of the report consideration is given to the importance of poverty alleviation as part of the development objectives on the PRC government and the international financial insitutions (IFIs). At the national level the PRC government places a great emphasis on pover reduction via the International Poverty Reduction Centre (IPRCC). The World Bank (WB) has an extensive poverty reduction programme which aims at a number if initiatives including community development, education, agricultural production, microfinance, energy, water and sanitation and civic participation. The programme has addressed a number of projects in the PRC including the lower income provinces such as Guangxi. Like the WB, the ADB36 stresses poverty reduction in its strategies and in China it has a number of initiatives including the Poverty Reduction Pilot Project in Guizhou Province.

337. The project fieldwork in Dingnan County described in Chapter D of this report has highlighted some of the main contributors to poverty in the area, including lower agricultural production and incomes, lower productivity and health issues and inadequate provision of water and poor infrastructure. In this section of the report the relationship between ecosystems and poverty and the measure of poverty are considered.

338. A number of writers have looked at the relationship between ecosystems and poverty alleviation and ecosystem services and their relevance to the RE mining sites are discussed. Martin et al (2010)37 looked at the constraints and opportunities of linking ecosystem services and poverty alleviation. The ecosystem services framework (ES) emphasises the role of natural capital in contributing to human wellbeing as well as the role of biodiversity.

339. A number of Chinese and international research papers have looked at the impacts of mining, both small and large scale on poverty alleviation. There are a number of factors which may contribute to poverty alleviation, these will vary according to the location of AREMs:

(i) Training of management and operational staff engaged in remediation – the level of education. Poverty alleviation will benefit from such education. (ii) The extent to which fiscal transfers (taxes and levies) will contribute to poverty alleviation in mining and former mining areas. (iii) The contribution that public sector and private finance38 linked to mining activities is invested in employment generation locally though financial transfers.

340. The evidence for the surveys undertaken in Dingnan County is that ecosystems in the mining areas have been negatively affected by RE mining with the related impacts on human wellbeing notably on lower income groups. A challenge is to quantify the impacts of economic and social impacts of ecosystem damage in the RE mining areas of Dingnan County and the future benefits of remediation on poverty alleviation. As pointed out in Section C para.62 of the Inception Report, Dingnan County is not one of the deprived counties of southern Jiangxi Province where there are other counties with higher poverty indices, however a model of mining remediation based on the analysis of Dingnan County may be applicable to other RE mining counties in the region.

36 ADB (2004). Enhancing the Fight Against Poverty in Asia and the Pacific. The Poverty Reduction Strategy of the Asian Development Bank. 37 Martin, A., Blowers, A and Boersema, J. (2010). Ecosystem services and poverty alleviation: assessing the constraints and opportunities. Journal of Integrative Environmental Sciences, Vol. 7, No 2, June 2010, pp. 99-104. 38 Including financial contributions and investments by mining and ore processing companies to the establishment of small businesses and social infrastructure in AREMS.

341. Another study 39 carried out in Ningxia Hui Autonomous Region considered the relationship between ecosystem services and poverty reduction and showed how ecological reconstruction raised the income and wellbeing of the population. Zhang et al (2015)40 in a study on poverty alleviation strategies in Eastern China and critical ecological dynamics emphasise the fact that the transition to restoring ecosystems depends on the maintenance and extension of monitoring programmes of ecosystem services to assess safe operating areas for alternative land use including agriculture and the need to develop new regional and sub-regional modelling approaches that can simulate non-linear changes in ecosystem services over the period of stable remediation which in the case of Dingnan County and other areas of RE and other mining in Jiangxi and China means maintaining a balance between population, natural resources and the environment. This study considered a number of regulating systems including soil stability, air quality, biodiversity and sediment quality as well as a number of drivers on ecosystems including agricultural land use, GDP, temperature and precipitation. Provision service analysis included the main agricultural activities including crops (cotton, fruits, grain, oilseeds, tea and vegetables) as well as aquatic and livestock activities.

Table E-8 Valuation of Ecosystem Valuation Method Value factors in the Jiangxi Comment mining areasarea Direct use values Crop, livestock, forest Production value but also the production, value of other economic linkages with these productive activities. Indirect use Food chain, environmental This includes the supply chain protection (forest areas) connections with these factors Option values Direct and Indirect uses of Potential future value ecosystems Existence value Biodiversity, recreational Difficult to value; possible use amenities of WTP techniques but this would require expensive questionnaires Travel cost Expenditure to visit an Requires a questionnaire environmental asset survey which is very expensive and beyond the scope of this study Contingent valuation Willingness to pay (WTP) for Requires a questionnaire an pay for an environmental survey which is very asset – landscape, wetlands expensive Hedonic pricing Impact on property or other Requires a questionnaire values of environmental survey which is very improvement expensive. Also depends on whether there is a property market which may not be the case in Jiangxi. Option value Value for future use; bequest This would require extensive value for future generations. surveys possible using WTP techniques Benefit transfer Use of ecosystem valuations Where there is no data for the from other projects Jiangxi mining area it is possible that data may be

39 Chinese Academy of Agricultural Sciences et al. (2008). China Ecosystem Services and Poverty Alleviation Situation Analysis and Research Strategy, Ningxia Case Study. 40 Zhang, K et al (2015). Poverty alleviation strategies in Eastern China lead to critical ecological dynamics. Science of the Total Environment pp. 164-181.

available from other parts of China or internationally. Stakeholder analysis Which stakeholders benefit This would require extensive from ecosystem services? surveys

342. Much of the research on phytoremediation and the impacts on plant life have centred on the impacts on agricultural and urban land and to date we have not found any detailed analysis on the use of phytoremediation on abandoned mines in areas with REs. The impacts and success of phytoremediation will depend on a number of factors including topography, climate, and the geochemistry of the soils41. In the case of Biochar, agricultural residues may be used. Some estimates put the costs of biochar at 200-6,700 yuan per hectare and the cost of biochar at around 3,000 yuan per ton42. Green and sustainable remediation will require in Dingnan will require a number of measures:

(i) Careful monitoring of plant growth over the medium to long term and life cycle assessment (ii) Monitoring of the impacts of planting and the uptake of toxic materials including with reference to location and tree and plant species (iii) Assess the process of biochar using different materials including agricultural residues, bio-waste and other materials and the impacts on soil fertility, soil pH and water holding capacity (iv) Assessment of the suitability of biochar given the varying states of soil contamination

343. The cost effectiveness of different approaches to phytoremediation will be assessed including the payback period as well as the contribution which phytoremediation will make to direct and indirect employment generation and therefore one factor in poverty alleviation. Phytoremediation where the results are successful can make a contribution to economic development and poverty alleviation through a number of different impacts namely:

(i) Agricultural production including restored land for rice, vegetables and other crops (ii) Production of timber and other wood products where there has been afforestation (iii) Improved landscapes and the associated aesthetics43

E.5 International best practices of using remediated mining land

344. The use of remediated mining land in Dingnan County has already been demonstrated with the construction of and business zone with ecological businesses and an industrial park.

345. While many of the international cases cover mine remediation in general, the same principles may be applied to RE mines. The use on land remediated in areas of abandoned mines including surface and pit mining is conditional on a number of factors which must be taken into account (Kivinen 2017):

• Environmental, social and other risk assessments • An analysis of landscape features and quality • The development of culture and recreational facilities

41 Notably the presence of arsenic, cadmium, lead and other heavy metals. 42 David O’Connell, Tsinghua University (pers. comm) 43 Rao, e al (2017). Measures to restore metallurgical mine wasteland using ecological restoration technologies: A case study at Longnan Rare Earth Mine.

• Heritage tourism, for example the development of RE mining with a visitor center. • Industry and infrastructure development • Waste water treatment plant (WWTP) and other infrastructure requirements

346. It is clear also that these developments will depend on whether the mine is in a sparsely populated area which is not the case of Dingnan County and other mining areas in the prefecture of Ganzhou. In Dingnan County and mining areas in Southern Jiangxi Province, progress has been made in some areas for the uses of remediated mining land. These include the development of industrial and business parks and a biomass energy plan.

347. Wang et al (2017) emphasize the need for land suitability analysis prior to the development of remediated mining areas. Their analysis is based on analysis for different cells over the reclamation area. The key evaluation factors used were land elevation, climate slope, aspect, relief and distance from roads, rivers and population settlements. Using these criteria, land suitability considered the following potential uses; agriculture, forestry, recreation, industrial and commercial development.

348. The need to integrate ecosystem services with ecological mediation is stressed as is the consideration of ecosystem vulnerability. In the case of Jiangxi mining zones as in the Liaoning case study the need for various assessment of land suitability will vary according different parts of the mining impact zones.

Lavrion Technology and Culture Park, Greece44

349. Remediated land has economic value, including its uses for agriculture, forestry and other activities. One example is the development of the Lavrion Technology and Cultural Park (LTCP) in Greece (EU DG XIII: 1995)45. The park was developed in former areas of lead and silver mining with major pollution affecting the health of the local population. After the cleanup and remediation of the site new developments have included a science and technology center with links to the National Technical University of Athens as well as a visitor center showing the history of mining in the district. The park has a number of laboratories and works with the university in a number of fields including environmental technology and remediation, soil rehabilitation, energy, telecommunications and robotics. The case of the LTCP demonstrates both applied and research roles as well as generating employment on the site and at the university in Athens.

350. The use of remediated mining land will be subject to environmental law and regulations in the case study countries. However, it is cleared that remediated mining land offers the opportunities for a range of developments including housing, tourism, science and technology centers, business parks and RE visitor centers. In the RE mining areas of Dingnan County the development of industrial parks and other infrastructure and industrial activities have already been undertaken.

Wheal Jane Earth Science Park, Cornwall, UK

44 https://www.interregeurope.eu/policylearning/good-practices/item/939/lavrion-technological-and- cultural-park-ltcp/ 45 http://www.ltp.ntua.gr/home_en

351. Another project in Cornwall, South West England was established with EU and private finance46. In a former mining area, the project at Wheal Jane (WJ) mine has established a number of facilities including offices, workshops and laboratories. A number of businesses have located on the site. The aim of the Wheal Earth Science Park is to attract international mining and minerals companies and to provide a ‘one stop shop’ for the provision of consultancy, contracting, property development and expertise in post mining legacy issues. The companies on site offer expertise in civil engineering, environmental and mining disciplines. On the applied side, the center operates a tailing landfill depository.

352. The WJ site occupies an area of 68 ha of which 20 per cent is for the Earth Science Park and 40 per cent is for a tailings area which 40 per cent of the total area. The remediated site includes restoration areas including re-vegetation, woodland, habitat enhancement and an approach which seeks to blend site development with the landscape. Income generation comes from the WJ businesses as well as from the resident tenants on the site. Figure E-4 shows the master plan for the remediation on the WJ site.

46 Interreg Europe (2018). Good Practice: Wheal Jane Earth Science Park post mining business regeneration. https://www.interregeurope.eu/policylearning/good-practices/item/1729/wheal-jane- earth-science-park-post-mining-business-regeneration/

Figure E-4 The Master Plan for Mine Remediation at Wheal Jane mining remediation site

Urgeiriça uranium mining area, Centro Region, Portugal47

353. This mine was producing and processing uranium and radium ores. The tailings were contained in an impoundment covering 13 ha and with a capacity of 1.4 million m3. Drainage control was introduced for surface and groundwater and there has been continuous monitoring of the site since 2001. The remedial works led to a reduction in radiation and have reduced the contamination risk of surface and groundwater. The total expenditure on remediation financed by the regional and EU programmes was € 33 million (USD 37 million).

E.5.1 Implications for China and Jiangxi Province The Potential for a Science and Technology R&D and Business Centre in Jiangxi Province

354. The three case studies above illustrate some of potential development options for the use of remediated mining land notably for science, technology and business centres located on former mining land. The development of remediated mining offers several opportunities which could be linked with university and other research institutes. In the case of Southern Jiangxi a research center working on RE and other mining technologies might be linked to the Jiangxi University of Science and Technology which is located in Ganzhou. Further work could be carried out on the land use options for remediated mining land. Given the importance of RE mining in Jiangxi Prefecture, an important thought is whether a science, technology and education hub for mining and RE mining in particular could be established in Ganzhou Prefecture.

The Development of an Assessment Model for the Remediation of mining sites in Dingnan

355. The development of an assessment model to incorporate the options for the remediation of abandoned mines is a challenge that remains, while multi criteria analysis gives a weighting for the different parameters of remediation options another model would incorporate:

(i) A time frame for remediation (ii) Financial and economic costs and benefits from direct and indirect impacts from different remediation approaches (iii) Technical options – biological, chemical and physical remediation including soil and water treatment (iv) Pre-implementation environmental and social impact assessments (v) Social impacts – resettlement, health, poverty alleviation and direct and indirect employment creation (vi) In principle it would seem logical to combine the environmental, technical and social elements in any techno-economic model for pre and post mining. (vii) Risk factors

356. The development of an assessment model which brings together the technical, economic and social aspects will form the basis of an Implementation Plan. The components of the proposed plan are set out in Table E-10.

47 EU Interreg (2005 - present). Good Practice of abandoned mines in the Centro Region of Portugal. https://www.interregeurope.eu/policylearning/good-practices/item/1202/remediation-of-abandoned- mines-in-centro-region-of-portugal-urgeirica-uranium-mining-area-example/

Table E-9 Components of the Implementation Plan COMPONENT DESCRIPTION Geographical scope Identification of AMREM areas to be remediated (total area and area by location).Prioritisation of AMREM areas to be remediated (criteria for choice to be determined) Technical options • Different options for remediation which may vary according to the specifics of location • Equipment • Geo-engineering • Land stabilisation • Approaches to tailing management Environmental Impact and risk • Health impacts (dust and other factors) assessment • Impacts on biodiversity • Success of phytoremediation • Impacts on water courses and water flows • Continuing risk of landslides48 Economic Impact, risk • Preparation of project costings over time and assessment and finance changes in changes in CAPEX and OPEX costs. • Pre and post project evaluations • Identification of sources of finance • Changes in forex rates on exports and the costs of any imported equipment and services • Rates of inflation and he impacts on project viability Social Impact assessment • Population in impact areas • Temporary resettlement of population • Impacts on employment • Sensitisation of the population in AMREM remediation zones Project planning and • Preparation of the implementation plan implementation • Time scale of project implementation • Recruitment of technical, management and project implementation E.5.2 Conclusions and lessons learnt 357. The issues of mine remediation and their impacts on the environment require a number of impacts analyses which are summarized above. Following on from international experience the impact analysis of mining activities including RE mining have to address:

(i) Establishment of the objectives, targets and criteria for the remediation of abandoned mines. (ii) Evaluation of the costs and benefits of remediation before and after remediation, including the alternative costs and benefits of different approaches to remediation at different sites. (iii) Financial and economic analysis of remediation options using a range of techniques including CBA, CEA and MCA. Risk analysis of the options for remediation including financial and physical risks before and during project implementation (iv) Environmental and Social impact assessments should be carried out before during and after remediation.

48 In an area of relatively high rainfall the risks of landslides and soil erosion persist unless remedial measures are taken,

(v) Depending on the definition of remediation the respect costs and benefits of different processes in remediation including biological, chemical and physical remediation. (vi) The application of land suitability analysis for the use of land after remediation. This assumes that there are land use guidelines and that land use planning is incorporated in the mining area in physical parameters and in legal and regulatory frameworks. (vii) The production of a development plans over defined time frame for the REE mines and other mines in Jiangxi province (viii) The need to develop a mining remediation impact model that combines technical, economic and social parameters. (ix) The possible development of a remediation model which incorporates economic, social and technical elements.

E.6 Legislation and Mining – International Case Studies

358. One of the major issues of legislation and regulation for REE mining and processing is the lack of specific legislation and in the case of PRC and other RE producers and potential producers this is a major gap (Barkos, Mischo and Gutzmer 2016).

E.6.1 The Burden of Proof 359. A major issue for mining in general and remediation is the issue of liability and whether this is clearly defined in national and provincial legislation. The main issues are toxicity, the management of mine tailings, water quality and pollution. The main questions are:

(i) Who is responsible for environmental damage? (ii) What are the legal and statutory duties for environmental damage and by whom? (iii) What are the legal remedies for environmental damage and to whom and who is responsible for compensation for environmental damage? Is it the mining company, the provincial and or local authorities who are liable for negligence in applying environmental and other law as applies to mining activities. (iv) Is there a specific burden of proof for environmental damage? (v) How can local communities claim compensation for environmental damage and what is the burden of proof?

360. The legislation and regulatory frameworks differ as between countries depending partly on the respective power of national and local legislation. In some countries including the UK, US and Australia there is the use of common law which may interpret legislation in different ways depending on the evolution of different cases and where local authorities may take legal action against polluters. Legislation and rules are however important in that they determine the procedures of mining and remediation and may impose targets for completion.

361. A major question is how effective the legal and regulatory frameworks in ensuring that remediation meets the targets of environmental remediation as well as the social and economic impacts of REE and other mining. In terms of national and local laws to what extent is the precautionary principle (PP) has been adopted in Chinese environmental or other laws49.

49 The precautionary principle is implicitly included in Chinese Law National Environmental Protection Law (2015), Articles 5 and 39 which include the principles of priority for environmental protection, risk assessment and environmental and health monitoring

362. Legislation and regulations may set the scope and requirements to be met for mining remediation. Examples are taken from a number of counties including Australia, the EU the UK and the US. It is our understanding that there is no specific legislation or rules to provide guidelines on REE mining remediation in PRC. In the EU where REE mining is in the early stages of development, while other legal guidelines have been developed in other mining countries including the US, he EU, UK and Brazil and Australia.

363. A number of guidelines have been produced by other sources (Keith-Roach, et al. 2014) have reviewed legislation and best practice with reference to the emerging European rare earth element industry. Table E-10 summarizes the health and safety issues in REE mining and processing industries and gives an evaluation of EU and international standards but in relation to radiation exposure which is an area not covered by the present study in terms of the survey in the RE mining areas of Dingnan County although may be some evidence from the survey of health impacts linked to the radioactive elements associated with REEs

Table E-10 International Standards and Regulations relating to REE mining Past experience of the environmental impacts from REE mining and processing Radioactive contamination and radiological exposure Country Links Impacts and Regulatory Comments Australia Reviews of mining by the These are important but of less International Atomic Energy relevance to Jiangxi Province Agency (IAEA: 2011) mining given the relatively low levels of radioactivity. Brazil IAEA (2011) Leakage of storage material. Major water contamination; lack of radiation protection China IAEA (2011) High radioactivity in Bayan Obo RE mine. Unclear whether sampling taken in Jiangxi Province. Impacts of dusts led to offsite contamination and cancer though the inhalation of dust. India IAEA (2011) Beach sand mining; low doses of mozanite Malaysia Oko Institute study (2013) The regulatory system does not meet international standards Russia IAEA (2011) Thorium concentration lower than drinking water standard. In other mines environmental contamination from tailing ponds and mine water, radon inhalation levels very high Overview IAEA (2011) Dust control very important. Main impacts from monazite processing plants; tailing impoundments in China and USA identified as sources of environmental contamination including the production of acid water; groundwater contamination from dissolved solids; discharges of oil, grease, Cu, Cd, Fe, Pb) significant in US mine.

E.6.2 Canada 364. A review of Canadian legislation is based on the Canada Mining Law (2019). The legal responsibilities relating to mining and mine remediation are shared between the federal (central) and provincial authorities. As a lesson for other countries one legal opinion is that legal and regulatory aspects for mining in remediation need considerable development (Castrilli, Wanted: A Legal Regime to Clean Up Orphaned /Abandoned Mines in Canada 2010) particularly with reference to the coordination of mine legislation and practice between the federal and provincial governments.

365. Canada is a significant producer of minerals and has resources in REEs but they are in exploration phase at the moment and there is no production of REEs. Heavy REEs exist in a number of provinces including Newfoundland, Labrador, North West Territories and Quebec50. Legislation for mining activities and remediation exists at two levels (federal) and provincial. At the federal level there is the Impact Assessment Act and the Environmental Protection Act. At the provincial level there is the Ontario Mining Act and in British Columbia the Mineral Tenure Act. At the moment Canada is in search of a regulatory framework for sustainable development for the development of a future RE industry. The key elements of federal and provincial legislation for abandoned mines (Castrilli, Report on the Legislative, Regulatory, and Policy Framework Respecting Collaboration, Liability, and Funding Measures in relation to Orphaned/Abandoned, Contaminated, and Operating Mines in Canada. 2007) are as follows:

(i) Environmental protection law (ii) Environmental assessment law (iii) Mining law (iv) Conditions for the issuance of mining licenses (v) Liability for mine owners and operators (vi) Requirements for insurance and indemnity (vii) Remediation of contaminated sites (viii) Requirements for monitoring on mining conditions (ix) Emergency response (x) Preparation of a closure plan. (xi) Community involvement

366. The need for adequate legislation for abandoned mines in the Canadian context is highlighted by the Canadian environmental lawyer Castrilli in a report which recognizes that Canadian responses for abandoned mines has not been successful at solving environmental, economic and social problems associated with mining. The main conclusions of the report are presented in Table E-11.

Table E-11 Canada – Key elements of mine remediation to be included in environmental legislation TOPIC RECOMMENDATION COMMENTS Mining operator Responsible for pollution control Abandoned mine site Who is liable for Should the law and practice contamination be site specific Finance of remediation Financial issues should be Financial of remediation of addressed in the legislation. abandoned mines may Need for a permanent funding include levies on production, approach the requirement for a clean-

50 https://www.nrcan.gc.ca/our-natural-resources/minerals-and-mining/minerals-and-metals-facts/rare- earth-elements-facts/20522

TOPIC RECOMMENDATION COMMENTS up fund; funding responsibility – central, provincial government,

Interventions Requirements for the These requirements need to reclamation and restoration of be included in Chinese land, hydrology surveys, legislation and regulations if planting to avoid soil erosion, they don’t exist and are and sedimentation, water contained in the regulations treatment; prevention of for RE and other mining subsidence Mine site reporting This should include Mine site reporting should be assessment of hydrology, included as part of a health and safety, air quality monitoring program during and biodiversity values the remediation of abandoned mines Environmental law Mining and Environmental law The degree to which state should be compatible and provincial laws are compatible with respect to mining legislation and to REE mining legislation where his exists The issue of mining licenses Should recognize and use The issue here is the extent environmental and mining law that the issue of mining conditions prior to exploitation licenses contains conditionalities for exploitation. Compensation for Law should define parameters Section D of the study found environmental damage for property and health that the village surveys in damage. Dingnan County showed that the compensation to villagers for environmental damage as a result of mining was often inadequate and compensation claims were not always resolved. There need to be clear guidelines for compensation which should be adequate to compensation for financial and other losses. Source: Canadian Law and Castrilli (2007)

367. It is also stressed that there is a need between federal and provincial authorities, whether this applies to the PRC with respect to mining is another issue.

E.6.3 Current EU legislation and Directives 368. Although REE mining is currently insignificant in the EU and the EU considers that existing legislation supports the development of REE mining but that there is a need for the evaluation of environmental quality standards and recommends that the REE industry if and when it develops is involved in decision making notably with respect to the development of remediation funds. This article was developed taking into account the potential regulatory gaps in EU legislation and the need to establish best practices to accompany any future

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 97 Final Report NᴧREE development mining in the EU. Currently REE resources have been identified in a number of EU countries including Greenland, Finland, Norway and to a lesser extent Greece and Serbia.

369. The EU has a number of directives but under which member states may formulate their own laws, regulations are binding on all EU member states. One issue with EU legislation that legislation is spread via a number if Directives with no one Directive specifically to REE mining. Specific guidelines for the management of tailings and waste rock (European Commission 2009) produced for the European Commission are summarized in Table E-12.

Table E-12 Summary of Requirements for Best Available Technology (BAT) for the management of tailings and rock waste PROCESS Seepage management and control Dam design and construction Raising dams and dam operation Removal of free water and dewatering of tailings Prepare a water management plan Control of water erosion Monitor groundwater around tailings Carry water balance to develop a water management plan Re-use of process water Mix process water with other effluents so finely ground tailings can absorb dissolved metals Control of emissions to water, noise, dust Safety and accident approaches Life cycle management Preparation of an Environmental Management System (EMS) Source: Specific guidelines for the management of tailings and waste rock (EC: 2009)

Figure E-5 EU legislation relating to mining 370. The EU Directives relate to mining waste, radioactivity51, chemicals and hazardous components, waste management, industrial emissions, landfill, groundwater/tailings, habitats including biodiversity (conservation of natural habitats and wild fauna and flora), emissions trading, environmental impact and liability, quality of drinking water, health and safety,

51 A question here is that are there specific regulations for radioactive elements in REE mining. rephrase

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 98 Final Report NᴧREE environmental noise. For radioactive materials there are basic safety standards. The international regulations and guidance on the transport of radioactive materials are contained in a number of documents including IAEA and UN Recommendations. Other EU Directives which potentially cover mining and RE mining include:

(i) The Mining Waste Directive which states that all EU waste facilities must have a permit and waste management plan. This includes clauses on tailings management (ii) The Water Framework Objective (2000/60/EC) (iii) The Groundwater Objective (2006/118/EC) (iv) The Industrial Emissions Directive (2010/75/EC) (v) The Environmental Liability Directive (2004/35/EC) which includes the polluter pays principle. (vi) The Environmental Impact Assessment Directive (2011/92/EC) (vii) Basic Safety Standards (2013/59/EURATOM)

371. While the EU Directives do not deal specifically with RE mining they address a range of issues that concern all mining activities and their environmental impacts. The onus is however on individual countries to comply with these objectives while there is an issue of how individual directives are integrated for mining. Another document52 which brings together EU Directives and guidelines for the remediation of mines puts forward the following requirements:

(i) The definition of what is an abandoned mine (ii) The need for criteria and standards for remediation (iii) The real and perceived costs of remediation (iv) A definition of applicable legislation and responsibilities for remediation (v) The definition of selection and weighting criteria in order to determine the prioritization for the remediation of individual mine sites.

E.6.4 Brazil53 372. Mining legislation including the closure and remediation of mines exist at the central and state levels. Although Brazil is reported to have RE reserves of 22,000 metric tons there has been little exploitation of REs to date. For the closure and remediation of mines in Brazil there are a number of requirements which are contained in a number of laws which place the onus on the mine operator. These requirements include:

(i) The grating of an environmental license (ii) The undertaking of an EIA (iii) An environmental management plan following the EIA. (iv) A report of the environmental impact (RIMA) (v) A remediation and development plan with an associated time frame (PRAD) which includes assessment of soils, vegetation, geology and hydrology (vi) A duty of care to be agreed with the mining operator and the acceptance of the polluter pays principle (PPP). (vii) An environmental risk assessment (viii) Licenses and approved pollution quotas for pollution limits

52 EC DG Environment (2012). Establishment of guidelines for the inspection of mining waste facilities, inventory and rehabilitation. 53 Taveira, A.C.S (2003). Financial Resources for the closure of mines, Universidade de São Paulo, Brazil, translated from the Portuguese.

373. The funding of remediation is supported by a National Environmental Fund and a State Fund for Environmental Conservation and the mining company which takes out a performance bond. A review of the state of the RE sector and its competitiveness in Brazil was carried out.

E.6.5 Other International Practice 374. Apart from EU legislation and processes, the assessment of international practice with respect to mining is summarized in Table E-13. It should be pointed out that in most countries legislation and best available practice are for the mining sector in general and not specifically for the RE sector. In terms of RE output the main producers54 in 2018 were PRC (120,000 MT), Australia (20,000 MT), USA (15,000 MT). This draft report concentrates on the main producers in order to compare existing practices in PRC. Other RE producers for which limited information is available in order of RE tonnage production are Myanmar, Russia, India, Brazil, Thailand, Burundi and Vietnam. It is likely that mining practice and legislation may well be below the standards set by PRC, the EU, Australia and the USA.

Table E-13 International Legislation relating to Sustainable Development in the Rare Earths Mining Industry Country Legislation Comment Australia Federal and state laws apply See more detailed section on for water quality and Australia later in this chapter environmental protection standards; EIA is necessary before mining (Mining Act, 1978) under the Mining act exploration licences may be issued. Brazil No law prioritising REE A government strategy for mining; technology and innovation for the development of REEs is being produced. Legislation in Brazil not found but RE mining in Brazil quite limited although according to Brazilian sources Brazil has 16 per cent of global RE reserves Russia Subsoil Law; Environmental Under environmental Expert Review; legislation protection law there is a also for processing plants and requirement for an EIA. the treatment and remediation of tailings USA Rare Earth Supply Chain See more detailed section on Technology and Resources the US later in this chapter Transformation Act (2011) Source: (Barkos, Mischo and Gutzmer 2016)

E.6.6 United States 375. The production of REs in the US has been subject to major variations in production given the closure and low profitability of some mining operations. In the case of the US, mining law mainly covers coal mining sites, although in principle other mining activities are covered.

54 These RE production figures are only estimates contained in https://investingnews.com/daily/resource-investing/critical-metals-investing/rare-earth-investing/rare- earth-producing-countries/

The main environmental laws and regulations in the US are implemented mainly through the Environmental Protection Agency (EPA) and via national legislation, although in some cases via state legislation, to this extent there may be parallels between China and the US with the central government playing the predominant role with in some cases state law being applied. Under the Federal Land Policy and Management Act (1976) the allocation of mining permits and licenses is conditional on a number of requirements including:

(i) Mine and reclamation plans (ii) Permits for air and water quality (iii) Dam and artificial pond safety (iv) The storage and transfer of hazardous waste (v) Sampling of wells via drilling (vi) Water rights (vii) Road use and access authorization

376. In 1977 Under the Surface Mining Control and Reclamation Act (SMRCA) which was a regulation to regulate surface mining and the acquisition and reclamation of abandoned mines. Under this Act, the Office for Surface Mining Reclamation and Enforcement (OSMRE) was set up. The OSMRE set up the Abandoned Mine Lands (AML) Reclamation Fund which was financed by reclamation fees on mineral production which in the case of the US was mainly coal.

377. Under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) (1980) a Superfund was set up which is managed in part by the EPA. In the case where there is no viable responsible party, Superfund gives the EPA the funds and authority to clear up contaminated sites. The main aims of the Superfund are to:

(i) Protect human health and the environment by cleaning up contaminated sites (ii) To make responsible parties pay for clean-up work (iii) To involve local communities and to (iv) Return Superfund sites to productive use.

378. This Act was replaced by the Superfund Amendments and Reauthorization Act (SARA) (1986)55. In the US a hazard ranking system (HRS) is used to place uncontrolled waste sites on a National Priorities List (NPL) which screens the impacts of contaminated sites on human health and the environment. The monitoring and development of mines also requires compliance with a number of other legal instruments including the Safe Drinking Water, Clean Water and Compensation and Liability Acts. The development of RE mines in the US requires a number of measures, these include the preparation of and Environmental Information Document and Environmental Impacts Statement. In the case of mining development in the US a number of stages to complete, these include exploration, prefeasibility studies, the issue of a permit and a financial plan. It is not clear whether all these requirements apply to post-remediation development, although these would be logical steps.

E.6.7 Australian Legislation 379. Australia like the US has legislation at both the central/federal government and state levels. A review of the literature indicates that central legislation generally takes precedence. As a major international producer of rare earths legislation is covered by a number of laws:

(i) Environmental Protection and Biodiversity Act (1999)

55 https://www.epa.gov/superfund/superfund-cercla-overview

(ii) Environmental Protection Act (1980) (iii) Environmental Protection Regulations (1987) (iv) Mining Rehabilitation Fund (2013)

380. The key elements of the Guide for Mining Proposals published by the Departments of Mines and Petroleum, Government of Western Australia are summarized in Table E-14. As in the US, Australia has a Mining Rehabilitation Fund (MRF) based on levies on production to be paid by the mining companies and in certain cases additional funding is provided by the central and state governments.

Table E-14 Guidelines for Mining Proposals, Western Australia and Environmental Protection Act (1986) components Component Items Climate Rainfall, evaporation Water Groundwater; water supply Soils Including sub surface materials Baseline environmental data Environmental threats Dust, noise, pollution Environmental reporting Risk Assessment, analysis, treatment and reporting Mine closure Remediation and audit Environmental Management System Minimization of environmental impacts Information requirements Tailings and residues, leaching processes, waste dumping, evaporation ponds, dams, location and nature of stockpiles and landfill sites. Environmental Protection Act (1986) Assessments Terrestrial fauna Flora, vegetation Water Hydrological processes, water resources and quality Processing Assessment of smelting and refining processes Environmental protection and diversity Biodiversity, ecosystems 381. There are also specific guidelines for tailings management prepared by the Department of Mines, Industry Regulation and Safety for Western Australia.

E.6.8 United Kingdom 382. Mining remediation in the UK mostly concerns former coal mining areas and quarries. Contaminated land is covered in a number of different Acts:

(i) Part IIA of the Environmental Protection Act (1990); (ii) Town and Country Planning Act (1991); (iii) Waste Management Licensing Regulations (1994) (as amended) (iv) Pollution Prevention and Control (England and Wales) Regulations (2000) (as amended); (v) Water Resources Act (1991) and the (vi) Radioactive Substances Act (1993)

383. In the UK, the Department of Farming and Rural Affairs (DEFRA) provides guidelines for the definition and level of contamination for sites. These guidelines take into account the damage to human health including life threatening and other ailments, the impacts on ecological systems, the impacts on crops, timber, livestock and buildings and groundwater. The EPA and local authorities are responsible for establishing the liability for contamination. Other regulations include the Environmental Damage (Prevention and Remediation) Regulations, the Contaminated Land Regulations (2012).

E.6.9 Financial Options and Law for Mining and Remediation 384. In several of the case study countries provision is made for the finance and compensation for mining degradation and the impacts on ecosystems and the environment. Environmental law in some countries, in the case of Canada set out the requirements for financing or compensation for mining activities including environmental and clean up orders as well as financial conditions for the issue of mining licenses. In the case of major pollution incidents, legal action may be taken against the officers and directors of mining companies.

385. As assurances against the completion of land reclamation in mining areas, bond schemes have been developed in Australia, Canada and the US and PRC has also introduced some schemes. There are various options for mining reclamations bonds (Cheng and Skousen 2017):

(i) Deposits by companies of cash and liquid assets into an account to which the regulatory controls including access can access. (ii) An insurance policy. (iii) A surety bond between the mining company, the surety company and the regulatory authority. (iv) A trust fund set up by the mining company. (v) A bond pool to which membership fees are paid including resource extraction fees, (vi) Reclamation bonds taking into account the potential disturbance area and the liabilities for infrastructure, water treatment and other reclamation requirements.

386. The bond amounts may take into account interim operations and maintenance, the presence of hazardous materials, water quality demolition, the removal of earthworks, revegetation, damage mitigation and long-term monitoring and maintenance of the reclamation works. It is understood that a number of Chinese provinces have introduced reclamation bonding systems including Zhejiang province and others.

387. Apart from the regulatory management of mining and the remediation of abandoned mines it is important that law and regulation take into account the financial and economic impact of different laws and regulations pertaining to mining and mine remediation. The long- term management of remediated mines will depend on a number of incentives to continue the process of good mine management, these may include tax deductions, conditional exceptions from liability and conditions to be met as a condition for the issue of mining licenses (Castrilli, Wanted: A Legal Regime to Clean Up Orphaned /Abandoned Mines in Canada 2010). Other legal conditions as in some of the previous case studies would be for mining companies to establish special funds for the finance of remediation, in addition a mining company, in the case of Jiangxi Province may have to pay a levy per unit of production.

E.6.10 Summary and Lessons Learned 388. International experience in the remediation of AREMs is limited. The major producers of rare earths internationally, Australia, Brazil, Russia and the United States are mining in remote areas compared to mining in Jiangxi province and Dingnan County where mining and associated remediation is carried out in areas with resident populations with all the associated risks which have been highlighted earlier in this report.

389. One approach is therefore to review the experience internationally of approaches to remediation is to take the example of other surface mining of minerals other than REs as there are similarities in approaches to remediation of RE and non-RE minerals.

390. The main lessons from international and practice are as follows:

(i) The need for a clear check list for remediation which sets out the processes of remediation. (ii) The type of remediation and the legal framework for environmental protection and the remediation of abandoned mines will have a direct impact on the investment and operating cost. (iii) In many countries environmental legislation does not have specific clauses for RE mining although this may be needed in the future, notably if EU countries. The need for clear legislation with the rights and duties of the main stakeholders. The need for stronger environmental laws with reference to the REE mining and environmental management is recognized by several Chinese academics (Yang, et al. 2013). (iv) An assessment of existing enforcement powers or develop a series of economic/financial incentives It is evident that compared to some of the previous case studies, PRC needs to introduce stricter industrial and environmental standards and laws for regulating the development of the RE industry in the future including prospection, mining, extraction, tailings, run off and remediation (Yang, et al. 2013). (v) Production of an environmental (EIA) and social impact (SIA) assessments prior to commencing remediation is necessary. (vi) Collaboration between all the agents concerned with REE and other mining remediation including environment, water, health, industry, planning and processing. This includes the mining company local provincial and prefecture authorities as well as the communities adjacent to mining activities. (vii) The importance of setting up mining remediation funds as in Australia and the US. (viii) The use of performance bonds and other guarantees of meeting the targets for remediation and land restoration are one approach to land remediation.

391. In the case of RE mining in PRC and given the importance of RE mining to national, provincial and county economies this raises the question of whether a specific legal and regulatory approach is made for RE mining. In the case of EU legislation this is not the case as existing environmental directives are considered to cover REE mining with some modifications.

392. In several states the environmental and other issues may be covered both by central or federal authorities and state or provincial authorities (Australia, Canada, United States). In the case of the EU, the Directives cover environmental issues at the EU level as well as the level of state legislation, in these cases it is important to ensure that there is coordination between the different levels of law and to establish whether certain levels of law have stronger powers than others. In the case of the PRC this is possible an issue of importance, in the case of mining and remediation in Jiangxi Province what are the respective powers of central and provincial (Jiangxi) authorities and at a lower level laws at of the prefecture (Ganzhou) and county levels.

E.7 The intervention of the private sector in the remediation of mines

393. In Europe mining remediation has been financed by a combination of private investment which follow environmental and mining laws and regulations. Most often, the participation of the private sector in the remediation activities came from the private mines as a consequence of their responsibility in their business and typically as part of the concession agreement in the exploitation of the deposits. These activities are typically more focused on the cleaning up and land restitution rather than the reconversion of the economic fabric, although the companies’ responsibilities towards the community make them engage in specific programs.

394. There are two main reasons why the involvement of private sector is often necessary in the remediation of mining. One is because of the financial resources which they can lever with the private sector i the clean-up and improving the conditions of the AREMs.; The other reason are the technologies that they may bring to remediate the damaged caused by the extraction and processing of different minerals.

395. AREMs are in different environments and therefore remediation approaches will differ. The less harmful damage comes from the digging of the open pits, where the extraction of the vegetal crust and the steep slopes of the excavation create erosion and risk of landslides. Other more dangerous elements like radioactive pollutants may also be present in the contamination of soils, water and air originating from the leachate and tailings.

396. This orderly remediation of mining sites requires a number of conditions: (i) the area to be remediated is known in advance; (ii) solutions are planned ahead; and (iii) That funding for remediation is in place options such as mandatory bonds with the government, private reserves or specific government funds56. However, the principle of restoration consists of returning the land closest to the conditions previous to the extraction, and returning or converting these areas such that production prior to mining can resume57.

397. In the case of Dingnan County, there two challenges’ the closing of the mines was not planned or sufficiently planned and prior to mine closure it is not clear how any income streams were used. In contrast to other mineral mining, RE mining and AREMs produce more harmful and long-lasting impacts. In general international experience of mining remediation follows clear guidelines and forward planning in contrast to mining operations in Dingnan County which were relatively uncontrolled.

398. Converting an abandoned mine into a productive land is possible and is done in multiple locations inside and outside of China. Attracting private sector to develop those productive activities is more complicated as it depends on the remaining pollutants and risks which may affect the quality or crop type to cultivate or the livestock to raise. Small government incentives like the lower cost for the land, tax rebates and others financial and fiscal measures may suffice to attract private sector to invest in the remediation of AREMs.

399. The remediation costs for the severe pollutants produced by rare earth extraction are relatively high and factoring this cost into any business means that mining businesses have to generate sufficient income to cover the operating costs.

56 In the United States, the reclamation of abandoned coal mines is accomplished through a coal production tax. Mine operators must pay a tax of $0.12 per ton for underground mined coal and $0.28 per ton for surfaced mined coal; the proceeds from this tax are put into the Abandoned Mine Reclamation Fund (created by SMCRA) to pay for the reclamation of AREMs. 57 This may include agriculture as well as other activities

Figure E-6 Risks of rare earth mining without or with insufficient environmental protection system.

E.7.1 Challenges of the public sector in mine remediation 400. The mining industry is very aggressive with the environment, regardless of the systems employed and protection mechanism in place. The nature of its business is to reap the land of part of its constituents using heavy machinery. Often, the extracted materials are to be treated for further refinement before the valuable product is transported outside of the deposits, while the non-valuable materials, which is frequently the more substantial part of the extraction, are disposed of.

401. The rare earth mining has two particularities compared to the extraction of other minerals. They are dispersed in low concentrations and at a shallow depth. They are costly to extract because of the low concentrations of the elements in the raw ores, and therefore, factories must use various separation and refinement techniques such as acid baths and leaching.

402. These problems require specific measures to be established at the planning stage previous to the extraction58. The accumulation of issues entailing that the extraction of this minerals is hard to be evaluated as the pollutants are dispersed on the air, on the water and remaining in the environment, some of them for a substantial period like the radioactive elements.

403. The other main reason for this lack of this remediation experience outside of China is because this is where around 95 % of the global rare earth production and a large amount of RE processing place. While the US, UK and other countries with large mining sectors have good experience the principles of mining remediation including phytoremediation, the RE mines of southern Jiangxi Province have their own specific conditions – the types of mining,

58 The legal requirements to obtain a mining license in most countries require, besides an Environmental Impact Assessment, a Restoration Plan to be carried during the extraction and at the time the mine is to be closed. This plan also requires a funding mechanism to ensure the viability of the execution.

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 106 Final Report NᴧREE geology, climatic factors as well as sources of finance and legislation. Therefore, the government, in this case, has two main challenges: on the one hand, they have a significant number of places with a variety of pollution problems to face, and there are no substantial experiences worldwide that have experience of dealing with the health associated with RE mining to be found in the PRC.

E.7.2 Examples of private sector intervention in mining and mining remediation 404. A common alternative in the decommissioning of mines is the reconversion of the buildings and real assets into new uses. Former buildings and facilities are transformed in museums, knowledge centers or commercial spaces59. However, in the reclamation of mines involving uses other than forestry requires the creation or reutilization of buildings as well as the reconversion of agricultural land into urban land for the implementation of a variety of uses.

405. There are other noteworthy unconventional cases in which public sector and private sector ingenuity align to recover depleted mines into an amalgamate of leisure and industrial estate built with sustainability principles that are not that far in time. This is an unusual example of a mine restoration in which there is no restitution of the mine to its origins, or any greenery is being used to cover the scar of the industry to the land. Instead, the approach has been to reuse the existing pit for a different use that requires no greenery or any special treatment of the soil, yet making a sustainable development for the purpose of developing new green technologies.

E.7.3 Analysis of the opportunities for the participation of the Private Sector in Ganzhou E.7.3.1 Considerations on the existing projects with private sector participation

406. In the cases and the information provided above, a crucial element in the successful involvement of the private sector consist of the consideration of the participation of the social capital. It is being mentioned before, that the participation of the social capital with the only role of financing the projects should be avoided because it cannot bring sufficient value for money.

407. In this respect, if the projects are led by the government, the share of the social capital in the venture and the implementation of the project is also determinant in the long-term goals of these projects. Making predominant government’s participation in these ventures frequently crowds out the social capital. An analysis of the existing projects in these structures is also required and to be taken into consideration for future projects. Special considerations for choosing the projects and the goals of the projects.

408. The degree to which private sector participation is needed, rely on how these projects enhance the living conditions of the population. These people, at least some of them, who were farmers before, evolved in industrial jobs with probably higher wages. Therefore, whatever new project involving the remediation of the sites has to factor in these new expectations as population will not just be content with going back to the simple activities previous to the mining jobs.

409. Engaging social capital in both of them simultaneously is a major challenge. More so, if the conditions of the soil remediation are as severe as the ones in Dingnan. This remediation requires specialized technologies and involving social capital in these activities may be possible only through a joint effort with the vision of a productive project.

410. For a more accessible involvement of the private sector in the implementation of (sub)projects, along with the clean-up of the soil, it may be necessary to include some investment in basic infrastructure, if not yet in place. This shall facilitate the inclusion of projects, particularly if these are related to tourism.

411. The development of tourism on remediated mining sites depends on what these sites may have to offer. Most tourism projects failed for not addressing the projects to the right markets or the right dimension of the project. Most international tourism projects associated to AREMs coincide on museums and amusement rides based on the topography of the mines, but the fact is that successful tourism projects are always based on unique locations or distinctive attractions.

F Policy Opportunities, Objectives and Models for Remediation of AREMs

F.1 Research targets

412. Based on the analysis of the targets, main contents and measures of remediation of abandoned mines in various policies issued by various levels of government (Section C.1), combined with the effectiveness and main problems of the remediation of abandoned mines in Ganzhou, this chapter focuses on the study of policy opportunities for the remediation of abandoned mines in Ganzhou, Jiangxi, provide two targets of systematic and multi-benefit remediation, and analyze remediation model and the basis for selection.

F.2 Policy Opportunities for the Remediation of Abandoned Mines in Ganzhou

413. Firstly, the importance of the remediation of abandoned mines has been highly valued by governments at all levels. In the various policy documents on ecological protection, national economic and social development, and rare earth industry planning, all involved in remediation of abandoned mines. content. Secondly, the remediation of abandoned mines is an important part of practicing the “Five Development Concepts”. In 2015, Xi Jinping put forward the concept of “innovation, coordination, green, openness and sharing” at the second plenary session of the Fifth Plenary Session of the 18th CPC Central Committee (referred to as the “Five Development Concepts”). Among them, green development is a concept proposed for PRC's environmental pollution and ecosystem degradation. The remediation of abandoned mines is to solve the problem of local environmental pollution and ecosystem degradation. Thirdly, the major development strategies proposed by the state in recent years all involve the remediation of abandoned mines, such as the rural revitalization strategy, the construction of the ecological civilization pilot zone, and the economic construction of the Yangtze River Economic Belt, with special provisions on the restoration of abandoned mines. Therefore, in the remediation of abandoned mines, it should combine various policies issued by PRC and Jiangxi Province (as shown in Figure F-1), and use various policy opportunities to speed up the remediation of abandoned mines and achieve targets of systematic restoration and multi- benefit remediation of abandoned mines.

Figure F-1 Policy opportunities for remediation of abandoned mines in Jiangxi Source: TA team Production

F.2.1 Promote the remediation of AREMs with the help of rural revitalization opportunities 414. According to the "Jiangxi Provincial Rural Revitalization Strategic Plan (2018-2022)", Jiangxi Province will focus on creating a new era of "the beauty of the Jiangxi", which highlights the beauty of the industry, the beauty of natural ecology, the beauty of civilization, the beauty of mutual construction, and the beauty of harmony and order. strive to get out of a rural revitalization road with Jiangxi characteristics.

415. The remediation targets of the AREMs in Jiangxi Province include achieving systematic and multi-benefit targets (see analysis in the next section), and have a strong coupling relationship with the rural revitalization strategy of Jiangxi Province, which is conducive to the realization of the restoration targets of abandoned mines. On the other side, the realization of the restoration target of abandoned mines is also conducive to the advancement of the rural revitalization strategy. Therefore, Jiangxi Ganzhou should take advantage of the opportunity of rural revitalization strategy and combine the main contents of rural revitalization to promote the restoration of abandoned mines.

416. (1) Industrial development promotes the restoration of abandoned mines. In the rural revitalization strategy, industrial prosperity is the focus, and the deep governance and long- term governance of AREMs are also driven by industrial development, that is, to realize the value of ecological products. Without the support of the industry, the restoration of abandoned mines will only achieve ecological value, and a large amount of capital investment cannot be effectively converted into economic benefits and lacks sustainability.

The Concept of Ecological Value

Ecological value mainly refers to the potential of having a good natural ecological environment and can be transformed into economic value, and the realization of this transformation has less impact on the ecology, and may also have a better protection effect on the ecological environment. Realizing ecological value means that the ecosystem is effectively improved, restored to the level before the destruction, and creates conditions for the realization of the value of ecological products.

"Ecological products" is the concept put forward by the report of the 18th National Congress and an important concept of ecological civilization construction. The value of ecological products refers to the products provided by ecosystems in order to maintain ecological security, ensure ecological regulation, and provide a good living environment. They can be roughly divided into three categories: (1) supply service products, such as aquatic products, Chinese herbal medicines, and fruit seeds of plants; (2) the regulation of service products, such as water conservation, water purification, climate regulation, etc.; (3) cultural service products, such as leisure tourism, landscape value.60

417. Remediation of abandoned mines promotes rural ecological construction. Emphasizing rural ecological protection and construction in the rural revitalization strategy, focusing on the rural scenery, the village beauty and the pastoral scenery pictures, to lay a solid foundation for the beautiful China "Jiangxi model." The abandoned rare earth mine is an important part of the ecological civilization construction in Jiangxi Province. Among the 61 specific problems sorted out by the central environmental protection inspectors in 2017, there

60 Ecological value of clean water and green mountains, People's Network, http://zj.people.com.cn/n2/2018/0728/c186806-31869581.html

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 110 Final Report NᴧREE are 10 ecological problems involving rare earth mining and abandoned mining areas. Therefore, doing a good job in the management and remediation of rare earth mining and abandoned mining areas will be an important part of the construction of the ecological civilization pilot zone in Jiangxi Province.

418. Construction of rural infrastructure promotes the restoration of abandoned mines. The rural revitalization strategy calls for the expansion of rural infrastructure construction, the introduction of social capital to promote rural economic development, the creation of more employment channels, and the effective improvement of farmers' income. Since the villagers' living and production water is affected by mining activities, in the remediation of AREMs, increasing the infrastructure construction of rural living and production water is an important means to alleviate the impact of farmers. The remediation of AREMs must achieve multi- revenue goals, including ecological poverty alleviation and employment opportunities for villagers, which is consistent with the shared goal of the rural revitalization strategy.

419. Rural revitalization requires institutional changes that facilitate the advancement of abandoned mines remediation. The rural revitalization strategy requires deepening the rural reform, including improving the basic rural management system, deepening the rural land management system, and promoting the reform of the rural collective property rights system. These reforms will facilitate the transfer of rural land and thus provide preconditions of social capital to participate in the restoration of AREMs, and to achieve the dual goals of mine remediation and ecological product value.

F.2.2 Promote the restoration of AREMs with the help of comprehensive ecological protection pilot projects 420. In December 2016, the central government proposed the first batch of the pilot projects of ecological protection and restoration of mountains, rivers, forests, farmlands, lakes and grasslands, and Ganzhou was declared and approved. By the end of October 2019, 53 pilot projects for the ecological protection and restoration in Ganzhou had been initiated, 26 were completed, and the accumulated investment was 11.762 billion yuan. The city completed the comprehensive environmental management of AREMs by 34.1 square kilometers, and the mine environment was significantly improved; the soil erosion control was completed at 1254.21 square kilometers, and the 3,291 collapsed hills were treated, and the soil erosion area continued to decrease; the land improvement and soil improvement were 74,100 mu. The land of the ditch slopes has been effectively rectified61. Therefore, the restoration of abandoned mines is an important content of “pilot projects of ecological protection and restoration of mountains, rivers, forests, farmlands, lakes and grasslands” in Ganzhou City.

421. (1) Use the opportunity of pilot projects to advance the systemic remediation targets of abandoned mines. The ecological restoration and management of abandoned mines should be carried out in an integrated manner. Since the treatment of abandoned mines involves not only re-vegetation, but also soil, surface water and groundwater improvement, etc., the functional departments responsible for “planting trees”, “improving water” and “recovering fields” should be co-ordinated to promote synergy. In this regard, the Ganzhou Municipal Government has set up a special coordination agency---"Ganzhou Ecological Protection Center". The establishment of this institution is conducive to changing the single recovery mode of “managing mountains without water, managing water regardless of mountains, and planting trees without planting grass”, and exploring a set of pilot work experience in

61 The documentary work of the pilot project to promote the ecological restoration projects in Ganzhou City, Ganzhou City official website, http://www.ganzhou.gov.cn/c100022/2019- 05/23/content_92e9f4b974f54f54bf889b5a190d4f7a.shtml

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 111 Final Report NᴧREE systematic governance and overall governance to realize systematic remediation targets of abandoned mines.

422. (2) Use the opportunity of the pilot projects to advance the multi-benefit targets of abandoned mines remediation. Among the 51 governance projects in the pilot project, most of the projects achieved multiple-benefit targets, which are also the higher and further goal pursued by abandoned mine rehabilitation. For example, in the development of green industry, Xunwu County has built industrial parks and photovoltaic power stations in the abandoned mining areas after treatment, planted economic forest fruits, and changed “waste” into “treasures”; Quannan, Nankang and other counties (districts), after the development of the rehabilitated land, developed high-quality vegetables, vineyards and other special industries; Xinfeng County promoted the rehabilitation of the disaster-stricken land, the introduction of agricultural products processing enterprises, the development of modern agricultural industrial parks, and effectively promoted the transformation and upgrading of the navel orange industry. For example, in helping to poverty alleviation and rural revitalization, with the ecological protection and restoration comprehensive treatment project, Zhanggong District has created the Feiyuan Soil and Water Conservation Demonstration Park, the Huatian Town Ecological Experience Park, the Soil and Water Loss Comprehensive Treatment Park, the Qishun Industrial Demonstration Park and the Ecological Engineering Expo Park, forming an “ecology”. These efforts form sustainable development model of “environmental restoration + rural tourism development + collective economic income increase”. Ningdu County combines the landscape and forestry lake grass ecological protection and restoration project to vigorously implement the comprehensive improvement of rural environment, and build an ecological experience park integrating forest oxygen bar, sports and fitness, leisure and sightseeing, and picking food. It builds a characteristic sports town and 4A rating rural tourist village.

F.3 Restoration targets

423. The restoration targets of AREMs in Jiangxi Province should be selected taking into account the status quo and difficulties of restoration and in such a way that staged and categorized restoration targets are selected responding to the strategic targets of ecological civilization construction established by the Central Government and the Provincial Government, including the strategies on the construction of the Yangtze River Economic Belt, the construction of the National Ecological Civilization Experimental Zone, and the pilot projects of ecological protection and restoration of mountains, rivers, forests, farmlands, lakes and grasslands. On such a basis, two major restoration targets are identified for the AREMs, i.e. the systematic restoration and multi-benefit restoration.

F.3.1 Systematic restoration targets (1) The systematic restoration target is an important goal pursued by the Chinese government for the construction of ecological civilization.

424. The national strategy for ecological civilization construction emphasizes that mountains, rivers, forests, farmlands, lakes and grasslands constitute a community of life. Ecology is a unified natural system and a natural chain allowing the interdependent natural elements to achieve circulation. Systematic, macroscopic and holistic conservation, control and management approaches should be designed based on the integral, systematic and internal laws of natural ecology and taking full account of all elements of the natural ecology whether they are located on top of or at the foot of a mountain, above or under the ground or at the lower or upper reaches of a river basin so as to enhance the circulation capacity of ecosystems, and maintain ecological balance.

(2) Systematic restoration targets for AREMs in Jiangxi Province

425. The restoration target of AREMs in Jiangxi Province refers to: in the content of restoration, the ecosystem is an organic living organism, which should be promoted by vegetation restoration to the three-dimensional restoration target of vegetation, surface (soil, water), tailings and groundwater. In terms of restoration time, it is necessary to promote the simultaneous management of “top and foot of mountains, surface and underground of soil, upstream and downstream of river basins”; in terms of restoration effects, it is necessary not only to realize vegetation greening, but also to realize “water clean”, “soil nutrient” and effective use of resources.

426. As shown in Figure F-2, the restoration of AREMs not only includes the restoration of vegetation, but also involves many other aspects like tailings, soil, surface water, and groundwater. If the soil treatment is not effectively done, the greening effect of vegetation will be greatly reduced, and soil erosion will reappear; if the surface water is not treated or not treated in good effect, continuous pollution will be caused to the Ganjiang River and Dongjiang River basins, and further affects the water quality of the Poyang Lake and the Yangtze River; the pollution of surface water will also have a continuous impact on the groundwater. Therefore, systematic restoration targets should be established for the restoration of AREMs, including soil (tailing sand) stockpiled on the ground, soil under the ground, the surface water (tail water), and the groundwater.

427. The restoration targets for short-term are: a) making continuous improvements to vegetation restoration. To achieve this target, stronger efforts will be made in the post- management of AREMs; in mining areas where vegetation is not well restored, mixed grass seeds will be spread to ensure that the mining areas are evergreen in all seasons, and wetland pine tree, cassia, eucalyptus and other suitable trees will be planted on the terraces and monitored and inspected with stronger efforts; b) stronger efforts will be made in the treatment of tail water from the AREMs through stronger efforts in financing from all possible sources to construct more tail water treatment stations for the final goal of improving the water quality of treated tail water in the main mining areas to meet the "Water Pollutant Discharge Standards for Ionic Rare Earth Mines"; c) suitable plants will be planted to make use of the digestive capacity of plants and nature to reduce the heavy metal content in soil, and bring the acidity and alkalinity close to the local average level.

Figure F-2 Targets of Systematic Restoration Source: TA team produced based on Baidu Image

428. The restoration targets for the far future are: a) vegetation restoration will be fully implemented in all AREMs, including side slopes and steep slopes where vegetation restoration is difficult; b) tail water discharged from all rare earth mines will meet the corresponding standards; c) The impacts of the production, life and health of local villagers around the mines will be minimized so that the villagers do not feel the negative impacts caused by rare earth mining on their daily life; d) groundwater monitoring will be strengthened to make sure the groundwater quality meets the respective national standards; e) the various indicators of soil will be restored to the pre-mining level.

F.3.2 Multi-benefit restoration targets 429. In the main rare earth producing areas of Ganzhou City, including the case study mines, multi-benefit restoration targets are less achieved. Specifically: for the main body of remediation; remediation effects and fund raising, mainly based on the government's financial subsidies and bonuses of Ganzhou Rare Earth Group, supplemented by some social capitals; in terms of remediation effectiveness, it is mostly a kind of government-led behavior, so the main pursuit of social and ecological benefits as outcomes, but economics, employment, poverty alleviation and other benefits are less concerned.

430. However, restoration targets only pursuing social and ecological benefits are not sustainable. Therefore, concern over economic, employment and poverty alleviation benefits are urgently needed.

(1) Realization of the value of ecological products

431. In order to implement the thoughts of the Party Central Committee and the State Council on the construction of ecological civilization and the economic belt of the Yangtze River, governments at all levels in Jiangxi Province have not hesitated in shutting down money-making but environmentally non-compliant mines and mine product processing enterprises and are marching closer to the goal of clean water and green mountains. However, in terms of the restoration of AREMs in various parts of Jiangxi Province, there are still a number of problems to address as to how to open the path of “converting clean water and green mountains to money-making waters and mountains”.

432. In October 2017, the Central Committee of the Communist Party of China and the State Council issued the circular titled "Several Opinions on Improving the Strategy and System of the Main Functional Areas", in which the four provinces of Zhejiang, Jiangxi, Guizhou and Qinghai are identified for pilot implementation of mechanisms for realizing the value of ecological products, marking the beginning of exploration in put the concept of ecological product value into action.

433. Based on the requirements of the relevant strategies and the concepts of ecological product values, targets to be realized to facilitate the realization of ecological product values in the restoration of AREMs in Jiangxi Province are identified as shown in Figure F-3. For ecological problems such as soil and water pollution, vegetation damage, tailing accumulation, and dam failure, the government will restore the abandoned mines to the status of “clean water and green hills” through various engineering and technical measures, that is, realized ecological values. In the process of realizing the ecological value to the value of ecological products, the role of the government has gradually weakened, and the participation of social groups and individuals has increased. On one hand, it has promoted the development of industries such as ecological agriculture, tourism, and health care, and has increased employment; on the other hand, it is conducive to driving local poor households out of poverty, and improving social benefits such as the environment and the health of residents.

434. For the short-term targets, active efforts will be made to promote the ownership verification and registration of natural resources, and guidance will be provided to local villagers in legal land transfer by means of subcontracting, leasing, swapping, and shareholding to achieve free transfer of land and forest rights between different entities and create fundamental conditions for the realization of the values of ecological products.

435. For the long-term targets, improvements will be made to the mechanism for realization of eco-product values and an incentive system for green finance will be constructed to encourage financial institutions to make greater efforts in the development and exploration of ecological product and green credit support mechanisms and improve the various guarantee mechanisms. Greater input will be made in risk compensation to strive for the transfer from ecological value to ecological product value.

Abandoned rare earth mines Management S oil damages V erosion S oil pollution W stockpiling T D Realization egetation egetation ailing ailing am failure ater Path

financial input financial and technology T

reatment

Realization of ecological values conversation soil W improvement S improvement Water quality reinforcement T restoration V ailing damailing oil ater and egetation egetation

Market R Land

esource

transfer trade

Realization of eco-product values

alleviation poverty P agriculture F rehabilitatio health T growth E mployment improvement H

ruit and ruit ourism and recise recise ealth ealth

Economic benefits Social benefits

Figure F-3 Process and Path of Realization of Eco-product Values Source: TA team Production

(2) Industrial development and poverty alleviation objectives

436. Development of ecological agriculture: In the poverty-stricken areas with important ecological functions and rich ecological resources in Ganzhou City, greater inputs will be made in soil remediation and water quality recovery in association with the natural characteristics of

AREMs and the proportion of investment will be increased for proactive and steady development of ecological industries and transform ecological advantages into economic advantages. Active guidance will be provided on the organic integration of ecosystem protection and restoration projects and ecological industry development; improvements will be made to the mechanism of participation of residents; policies will be launched to attract social funds to the development of ecological industries and a sustainable benefit-sharing mechanism will be constructed. Six major forest economy industries of oil tea, bamboo, flavors and fragrances, forest herbs (including medicinal wild animal breeding), seedlings and flowers, and forest landscapes will be built up.

437. Promotion of green products: Further improvements will be made to the green product standard, certification and supervision system and efforts will be made to enable the green product identification to play a role in promoting the realization of the value of ecosystem services. Actions will be taken to drive the green product transformation of the existing agricultural products with advantages in Ganzhou, including navel orange, honey pomelo, camellia, and tea. The government will increase the scale of procurement of green products, promote and implement green procurement, and improve the green procurement list release mechanism.

438. Realization of ecological poverty alleviation: Ecological poverty alleviation combines the construction of ecological civilization with alleviation of poverty. Ganzhou, a known old revolutionary area, is also one of the nation's large centralized and contiguous poverty-stricken areas. Therefore, it is essential for Ganzhou to establish the goal of ecological poverty alleviation.

439. First, staff for post-management of AREMs and forest patrol personnel will be selected and employed from the registered poverty-stricken persons with the required labor ability in accordance with the principle of “accuracy, free will, openness and fairness”. Second, during the implementation of low-quality and low-efficiency forest transformation, shelter forest, forest tending projects, actions will be taken to encourage the large-scale forestation households to give priority to poverty-stricken persons to input labor and work, give priority to the rent of forest land owned by poverty-stricken persons, and give priority to the reconstruction of the mountains contracted to and allocated to poverty-stricken persons for the goal of supporting the poverty alleviation campaign. Third, for areas heavily impacted by AREMs, greater inputs will be made in the relocation of AREMs to alleviate or eliminate the adverse effects of abandoned rare earths on the life of local villagers. Fourth, in the process of remediation of AREMs, appropriate financial and tax incentives will be given to encourage the employment of local poor villagers.

(3) Objectives of establishing a sound eco-compensation mechanism

440. In December 2018, 9 departments of the national government, including the National Development and Reform Commission (NDRC), the Ministry of Finance (MOF), jointly issued the Action Plan for Establishing a Market-oriented and Diversified Mechanism of Ecological Protection Compensation, further clarifying the principles of beneficiary-pays and steady progress and requiring stronger efforts in top-level design and system innovation. By 2020, the market-oriented and diversified ecological protection compensation mechanism will take its initial shape to effectively promote the enthusiasm of the whole society to participate in ecological protection and create a policy environment in which the beneficiaries pay and the protectors receive reasonable compensation. By 2022, the level of market-oriented and diversified ecological protection will be significantly improved, the ecological protection compensation market system will be further improved, and the interaction between ecological protectors and beneficiaries will be more coordinated, providing strong supports for ecological priority and green development.

441. In terms of the realization of the eco-compensation mechanism for AREMs in Jiangxi Province:

(i) A green benefit sharing mechanism will be established. Horizontal ecological protection compensation between abandoned rare earth mine restoration areas and beneficiary areas will be encouraged and exploratory efforts will be made in setting up a mechanism for areas at the lower reaches of a watershed to give compensation to those at the upper reaches providing water resources of better quality than the water environment quality objectives. Diversified compensation methods will be developed and active efforts will be made to promote compensation methods such as fund compensation, counterpart cooperation, industrial transfer, HR training, and joint construction of parks and areas with the required conditions will be selected for pilot projects in these regards. (ii) Improvements will be made to the compensation system for resource development. Natural resources constitute an important part of the ecosystem. The rare earth miners should compensate for the adverse effects of resource development and ensure the authenticity and integrity of ecosystem functions. The boundary and total exploitation of rare earth mines will be kept to a reasonable degree to ensure that ecosystem functions are not affected. The rare earth mining enterprises will incorporate the ecological environment input and restoration costs in the resource development process into the resource development costs so that restoration can be implemented on their own or by a third-party professional organization.

F.4 Selection of restoration model

F.4.1 Types of restoration model 442. In the selection of the restoration model, appropriate restoration models should be selected according to the topographical features, geographical location and local resource conditions and any other specific conditions of the abandoned rare earth mine. In general, there are mainly three types of models to choose from:

443. Model 1.0 is named the “R+R Model”, i.e. the re-vegetation and reclamation model mainly aiming to turn the AREMs into green and arable land. As the most common model used in the restoration of AREMs in Jiangxi Province, it is manifested in more than 90% of the AREMs.

444. The simple revegetation model applies in some abandoned mines with small area and unsuitable for cultivation, with more applicable methods, such as ecological greening and restoration of mountain sores, can be used to improve the vegetation coverage of abandoned mines. According to the actual conditions of the abandoned mine soil (such as heavy metal content, ammonia nitrogen content, etc.), choose plants suitable for planting, such as masson pine, silver leaf honeysuckle, arborvitae and other mixed shrubs, and spread the mixed grass seeds for vegetation.

445. The land reclamation model includes not only the reclamation of agriculture and forestry, but also the reclamation of fishing and animal husbandry. It refers to the principle of “affordable forest, suitable for agriculture, suitable for fishing, and suitable for animal husbandry” according to the geographical, ecological and resource conditions of abandoned mines. Comprehensive utilization of fisheries and animal husbandry.

(i) Agricultural land model. In some abandoned mines, the soil is less polluted and closer to the center of the village. After the land is leveled, the ability to cultivate the land can be restored through simple ecological restoration methods. After the reclamation of the land, modern agricultural facilities can be used to produce high- quality and excellent agricultural products, and a commodity grain production base that is based on local dominant crops and integrates the cultivation and processing of native products. This model has been implemented in Dingnan County. Xiazhuang Village has built eco-agriculture on abandoned mines by attracting Shenzhen Debao Group and is preparing to export agricultural products to Hong Kong. (ii) Forest (fruit) industry land use model. In Ganzhou, most of the abandoned mines are located in the old forests of the mountains, far from the villages, and there are fewer abandoned mines that can be converted into agricultural land. Promoting the forest (fruit) industry land use model is a more universal and feasible model. Using the combination of engineering measures and plant measures, the land in the abandoned mining area will be reclaimed. By improving the prevention and control standards for soil and water conservation engineering measures, the construction of sand dams or valleys, landfills, etc. Engineering measures to prevent soil erosion; sprinkle lime, fertilizer radish, grass seeds, etc. in new forests (fruits), gradually improve soil pH and soil nutrients; and establish irrigation facilities to plant golden pomelo, citrus, corn citrus, navel orange fruits suitable for the climate of Ganzhou.

446. Model 2.0 is the landscaping model with ecological upgrading as its significant feature. It is a model upgraded from common greening on the basis of Model 1.0 to ecological landscaping and is finally manifested in mine parks, geo-parks, wetland parks, etc.

447. The landscape re-engineering mode is mainly applicable to abandoned mines in urban areas or scenic areas, with large traffic flow and landscaping needs. This model is based on the original landscape, discovering new tourism resources, conducting rational landscape planning and design, transforming the advantages of natural resources and historical and cultural resources into economic advantages, and harvesting economic benefits while creating ecological benefits. According to the different main functions of the abandoned land after the mine abandoned land reconstruction, it can be roughly divided into urban open space, mining heritage sites, museums and so on. in particular:

(i) Urban open space. The open space of the city mainly refers to the outdoor public leisure of the city for the leisure of the citizens, including various theme parks, mine parks, natural landscape gardens, and green spaces. As for the mine garden of Shanghai Chenshan Botanical Garden, the original site of the mine is a century- old artificial mining relic. Combined with the ancient Chinese “Peach Blossom Spring” seclusion idea, the existing landscape conditions are used to design waterfalls, moat, plank roads, water curtain caves and other natural terrain. The use of the current ridges of the mountain body, deep engraving, so that it has the shape and artistic conception of Chinese landscape painting. The pit garden highlights the restored garden theme and is the largest mine garden in Asia (as shown in Figure F-4. (ii) Mining sites and tourist sites. After the treatment of the abandoned land of the mining industry and the new functional positioning, it can form a new post-industrial landscape tourism site, and the reconstruction of the landscape environment such as the mine pit, so that it can connect with the surrounding natural scenery to form a new mineral. Tourist attractions, thus creating an attractive theme tourism resources, thereby further driving the economic development of resource- exhausted cities. This kind of tourism project with the old mining area as the core

has many successful precedents at home and abroad, such as the transformation of the Ruhr area in Germany and the Fangshan Geopark Project in Nanjing and other projects in the UK and the EU. (iii) Museum. The museum should be for demonstrating alternative procedures for the transformation of mine waste sites with less pollution and more elements of abandoned mining. The museum is divided into indoor and open-air museums. These two types are only different in the form of architectural space. They all reflect the two values of mining heritage: historical commemoration and learning and education value.

Figure F-4 Shanghai Chenshan Botanical Garden built on the pit (before and after treatment comparison) Source: Official website of Shanghai Chenshan Botanical Garden

448. This model has been successfully implemented in Bayan Obo Mine of Inner Mongolia, but no typical cases have been presented in Jiangxi Province. Ganzhou is also constructing mine geological parks, such as Tongtianzhai Geological Park in Shicheng County, Wuzhifeng Geological Park in Shangyou County, Xihuashan Mine Park in Dayu County and Geological Relics Protection in Nankang Dinosaur Park. Among them, Dayu Xihuashan Mine Park and Yudu Pangushan Mine Park are awarded to the fourth batch of national mine parks.

449. Model 3.0 is the industrial model, with the distinctive feature of industrial integration, i.e. implanting, on the basis of ecological upgrade of Model 2.0, the relevant industries to turn the static mines into dynamic economies. In this model, through ecological upgrading, industrial implantation, especially involvement of laborers and consumers, the internal ecological productivity of the abandoned mines is activated to generate excellent social,

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 119 Final Report NᴧREE ecological and economic benefits. Model 3.0 is the most effective approach to realizing the value of ecological products of abandoned mines. The four restoration models described in Chapters C and D belong into this category.

450. Shanghai Sheshan Intercontinental Hotel (Shenkeng Hotel) is a typical case of the industrial model. In the town of Sheshan, Shanghai, a stone pit with a depth of more than 80 meters left by the quarry, Shimao Group used the mine to build a five-star hotel. At the beginning of the restoration, there are three repair schemes: one is to fill the pit and green; the second is to fill the pit and make the landscape, change the ecology; the third is to use the deep pit to implant the industry. Finally they selected the third option. The hotel makes full use of the existing pits and explores the surface of the ground for 88 meters. It lasted for 12 years and cost nearly 10 billion yuan. It was built in 2018 and was hailed by the National Geographic of the United States as "the world architectural miracle." The building has 2 floors above ground and 15 floors below ground level (including two floors below the water surface). The total construction area is over 61,087 square meters. There are more than 300 rooms and suites, and all rooms have a viewing terrace. Enjoy the views of the cliffs and waterfalls62. It is a classic case of abandoned mine utilization and is a successful case of the 3.0 model.

Figure F-5 Comparison of Sheshan Stone Pit before and after restoration Source: China Central Television, CCTV

451. Different restoration modes produce different ecological effects and also bring different poverty alleviation effects. In general, the 1.0 model mainly aims to bring new agricultural production opportunities to poor households, and poor households are still employed in agriculture. The 2.0 and 3.0 models have brought employment opportunities for industrial and service industries to poor households, sometimes even business opportunities, such as farmhouse. In China, after a large number of poverty alleviation initiatives, most of the poor households have already achieved poverty alleviation. However, there are still some old, weak, sick, and disabled poor households who are more difficult to obtain employment opportunities in the agricultural sector, while the 2.0 and 3.0 models may provide them with more suitable jobs. Therefore, in Ganzhou, the poverty alleviation effects of different repair modes will have a big difference.

F.4.2 Principles and standards for selection of restoration models (1) Principles for selection of restoration models for AREMs

452. The principle of top-level design. A proper top-level design must be conducted before the restoration of the AREMs. What will the mine look like after restoration? What benefits will be produced in terms of landscape, ecology, industry, employment and resource utilization, etc.? These issues must be taken into account in top-level design.

62 Hotel Introduction, Shanghai Sheshan Intercontinental Hotel Official Website, http://www.shenkenghotel.cn/index.html

453. The principle of adaptation to local conditions. Restoration model selected for AREMs should be adapted to the local conditions and flexibility should be allowed instead of simply pursuing Model 3.0 because of its high economic value. For AREMs with purely public welfare restoration targets, selection of restoration model shall be implemented by the government; for those that can be converted into economic benefits, enterprises should be the principal participant. However, the value of ecological products must be the leading direction for the restoration of AREMs.

454. It is an essential requirement that the model plan and industrial development plan must be determined first before the restoration plan is developed for AREMs in order to reduce restoration cost and achieve the most effective restoration outcomes.

(2) Basic utilization conditions of the industrial restoration model 455. Different restoration models may be applied in different conditions:

456. Mines with excellent space conditions: For mines close to the city, where certain commercial radiation and population support can be provided for industrial projects, models like industrial parks, mine parks, etc. may be considered as the main option.

457. Mines with unique resource conditions: For mines with unit resource conditions like rivers, waterfalls, hot springs, etc., these resources may be utilized to create unique tourism and health care experience zones. Nanjing Tangshan Mine Park, for example, was successfully transformed into a hot spring town through skillful utilization of local high-quality hot spring resources to attract tourist and create higher added value than ores do. 458. Relying on the tourist attractions to develop local industries. Where there are established tourist attractions around the AREMs, services such as catering, rehabilitation, and local products will be implanted purposefully. At the same time, the first-class ecological resources will be used to vigorously develop the health care and rehabilitation industry and create a new industrial pattern that “satisfies both the local villagers and tourists with the green mountains and the wealthy villages”. 459. Suitable natural and climatic conditions. Provided that the ecological environment is well conserved, the local resources will be effectively utilized and the various elements optimized for development of characteristic industries. Cash crops with high added value and suitable to the local climate and natural conditions of Ganzhou will be planted.

(3) Organic combination of multiple models upon model selection 460. The three optional models should be combined organically. According to the actual situation and geographical location of the mine, the most suitable model should be selected and, in certain cases, the three models may be used as a package, with some areas implanted with industries, some built into parks, some planted with green vegetation as appropriate for the respective project. The principle of ecological priority will be respected as a priority and industrial development to a moderate degree is allowed under the premise of ecological conservation, which is the principal target of mine restoration. 461. Mine restoration will be organically combined with beautiful countryside construction. From the perspective of geographical location, the mine repair carriers are rarely located in the city and most of them are in the countryside. It will be difficult to build a beautiful countryside if the mines are not beautiful. Beautiful countryside construction involves mine restoration and mine restoration is an important part of the rural revitalization campaign. Mine restoration should be organically combined with characteristic towns and pastoral complexes to achieve space re-engineering, ecological re-engineering and industrial re-engineering.

Efforts shall not be spared to create an economic growth point for beautiful countryside construction through mine restoration in Model 3.0. 462. Mine restoration will be organically combined with the construction of new engine of local economy. Jiangxi Province is in the critical period of industrial restructuring kinetic energy conversion. Under this context, issues like how to replace traditional industries with ecological industry and how to replace traditional resources with clean water and green mountains should be well addressed. It is necessary to combine the restoration of AREMs with structural adjustment from a strategic height through the implantation of a large number of ecological industries, environment-friendly industries and innovative industries and gradual replacement of land-reliant finance with ecological finance. The restoration of AREMs should be utilized as a chance to create a new ecological industry chain, and foster new economic growth points for the local economy.

G Policy recommendations for improving the ecological protection of abandoned mines and poverty alleviation in Ganzhou, Jiangxi

463. Based on the previous research on the status, effectiveness, problems and objectives of the related policies and the restoration of abandoned mines in Ganzhou, this chapter provides corresponding policy recommendations: (1) improving the mechanism of social capital participation in the remediation of abandoned mines, (2) improving the integration mechanism of ecological restoration and poverty alleviation, (3) improving residents’ participation in repairing abandoned mines, (4) improving the deep treatment mechanism and measures of abandoned mines, and (5) improving the value compensation and early warning mechanism of abandoned mines(Figure G-1).

Figure G-1 Policy recommendations and targets of abandoned mine remediation Source: TA team Production

G.1 Context and Objectives

464. Jiangxi Province has undertaken many national-level tasks such as the construction of the National Ecological Civilization Experimental Zone, the construction of the Yangtze River

Economic Belt, and the Rural Revitalization Strategy. The remediation of AREMs is conducive to the realization of these strategic objectives, and its experience has more significance for other provinces and cities in southern China. In the capacity building of the AREMs, a variety of strategic objectives should be considered at the same time, and the remediation of AREMs should be promoted by taking advantage of strategic construction opportunities and combining various projects.

465. In the capacity building of the remediation rare earth mines, the plan will be combined with the “Rural Revitalization Strategic Plan (2018-2022)” and the “National Ecological Civilization Experimental Zone (Jiangxi) Implementation Plan” to strengthen the value by implementing a comprehensive program. Vegetation restoration extends to soil and water (surface water and groundwater) remediation, and the mechanism for social capital to participate in the remediation of AREMs, vigorously develop rural industries, increase the income level and employment capacity of villagers, and open up the ways to realize the value of ecological products.

G.2 Improving the mechanism of private sector participation in remediation

466. Due to the complexity of the geology and ecological environment of mines, the remediation of land is difficult and the corresponding investment is considerable. At this stage, the funds invested by the administrative finances at all levels in China are limited, which cannot achieve systematic and multi-benefits targets of remediation. Therefore, actively introducing social funds and encouraging the diversification of the main bodies will not only help alleviate the problem of financial constraints, but also bring new remediation models and concepts.

G.2.1 Policy context and basis 467. In August 2016, the Ministry of Land and Resources, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Environmental Protection and the National Energy Administration jointly issued the “Guiding Opinions on Strengthening the Remediation and Comprehensive Management of Mine Geological Environment”, emphasizing the encouragement of social capital participation. The principle of “who governs and who benefits”, give full play to the guiding role of financial funds, and vigorously explore the construction of a new model of mine geological environment governance with “government-led, policy support, social participation, development-oriented governance, and market-oriented operations”, to strengthen policies and funds integration and rational utilization.

468. In June 2018, the State Council issued the "Opinions on Strengthening Ecological Environment Protection and Resolutely Fighting Pollution Prevention and Control", making arrangements for comprehensively strengthening ecological environment protection, resolutely cracking down on pollution prevention and control, and also providing policy support for social capital participation in in the area of environmental governance of mines.

469. Thus, actively introducing social capital to participate in the restoration and treatment of abandoned mines in Ganzhou is in line with the guiding spirit of the central government.

G.2.2 Principles and risks of private sector participation 470. Attracting social capital to participate in the comprehensive management of AREMs, the core is profit-driven, that is, to meet their own needs, utility preferences, and maximize their own interests.

(1) Considerations for private sector participation

471. It tries to achieve a combination of four aspects encouraging social capital to participate in the comprehensive management of AREMs: (i) to achieve the combination of the remediation of AREMs and related projects, to combine the original land reclamation, mine environmental protection, beautiful rural construction, land remediation, soil pollution control projects and geological disaster management projects; (ii) to achieve integration with land and mineral resources policies, such as mining residual tailings through mine environment remediation, to make up for the funding gap for mine remediation; (iii) to achieve a combination with industrial land use policies, especially in the later stages of control and the realization of the value of ecological products, it is necessary to combine local industrial policies; (iv) to achieve the integration with poverty alleviation policies, for example, in mine remediation, employ local poor households, encourage poor households to participate in agricultural cooperative society, and achieve precise poverty alleviation.

472. Applying the profession knowledge and technology brought by private sector. The remediation of abandoned mines requires specific expertise, and the participation of social capitals is conducive to supplementing the government's shortcomings in this regard. For example, in the case of remedying mines, tailing water and groundwater treatment is a very professional project. Only a few companies are capable of implementing it. The government should encourage enterprises to participate in professional governance through BOT and PPP approaches, applying professional knowledge and technology of social capital.

473. Find ways to work effectively with government and private sector. It is necessary to find the most effective way of cooperation between government and social capital based on remediation approaches, and to encourage social capital to participate in various ways, including direct contracting, leasing, etc., and also engage in indirect ways for the government to provide services such as technology, investment, and manpower.

474. Private sectors need benefits. Social capitals choose whether to participate in mine rehabilitation depending on the benefit of the project. For projects with low profits, the government should give preferential policy subsidies to increase their rate of return. For some projects with high profitability, the most suitable enterprises can be selected through bidding.

(2) Risks of private sectors participation

475. Social capital involved in the remediation of AREMs needs to prevent following risks: (1) pay attention to the problem of land ownership, that is, when repairing mines, we must first understand who owns the mines; (2) land use identification, pay attention to the relevant planning of land use. Some land can only be used for agricultural land, and some land can be changed to industrial land; (3) the nature of land is determined, such as the reclaimed use of abandoned industrial and mining wasteland, which has a strict scope for using; (4) the identification of land use after restoration.

G.2.3 Incentive mechanism system for private sector participation 476. According to the relevant policies promulgated by the state, the status quo and dilemma of social capital participation in rehabilitation, the policy should be in a sound incentive system that encourages the participation of social capital, as shown in Figure G-2, including: financial and taxation incentive mechanism, remediation benefit return incentive mechanism, and administrative incentive mechanism.

Figure G-2 Incentive mechanism system for social capital participation Source: TA team Production

(1) Financial and taxation incentive mechanism

477. Financial incentives. The government can formulate a series of financial subsidies for the technology and equipment investment for the remediation of the geological environment. In the budget, the relevant industries of mine geological environment restoration and treatment are subject to large-scale subsidies. The financial subsidy policy plays an important role in guiding social capital investment in the remediation of mine geological environment. It can also be used for the subsidy policy adopted by the mine geological environment restoration and treatment project, such as the preferential policy of loan interest subsidy for the incremental cost of the mine geological environment restoration and treatment project.

478. Tax incentives. The tax incentive policy mainly provides various forms of tax reduction and the exemption for social capital involved in the management of AREMs. For example, the method adopted is exempt from state-owned land use fees, tax incentives for investors to use various environmental resources after management to carry out business activities, tax deductions, accelerated depreciation, and increased fee deductions.

479. Financial support policies. Bank credit financial preferential policies, for the use of post- governance environmental resources for the construction of mine parks and tourism landscape resources. Due to its long construction period and large demand funds, banks provide credit financial support for such projects, and provide loan interest rate preferential measures to protect successfully launch. Examples include (i) the government provides investors with some necessary guarantees; (ii) financial institutions, after preliminary review, confirm that they can avoid risks, appropriately reduce bank credit access standards; (iii) investors can obtain certain interest rate concessions, and financial institutions should extend the loan period on the basis of effective prevention of risks.

(2) Remediation benefit return incentive mechanism

480. This mechanism is for internalizing the external economy of environmental assets into the actual income of investors. The return mechanism of remediation benefits is not perfect. It is the environmental assets formed by social capital participation in remediation that cannot be fully converted into economic benefits (also called “environmental asset capitalization”). The key point in establishing a return mechanism for remediation benefit returns is that property rights are clear and reasonable.

481. The implementation approach of the land equity return mechanism. (i) The treatment fee reduction is linked to the land transfer fee for construction land. Specific practices: When

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 126 Final Report NᴧREE social capital participating in the remediation of mines and restores the land for construction, through the “bidding and auctioning” procedure, after the private investors obtain the right to use the construction land, the initial remediation of the treatment costs deducts the land transfer fee, as an incentive policy for private capital to intervene in the remediation; (ii) Under the model of “company + cooperative + farmer”, social capital participates in the remediation of the geological environment of the mine, and it is managed into agricultural land. The remediation area benefits the farmers to take shares in the land. The agent of the social capital “company” is the main body of the remediation project. The role of the cooperative is to promote the legitimate and legal transfer of land by the beneficiary farmers, supervise the legal operation of the “company”, and protect the legitimate rights and interests of the beneficiaries, to form a business model of “company + cooperative + farmer”; (iii) Gaining benefits through land replacement. The proceeds of compensation for the remediation of the geological environment of the mine, the environmental assets formed by the remediation of the geological environment of the mine-the agricultural land, can be replaced by the construction land index into the government reserve, and the land transfer income obtained by the mine is used to compensate for the remediation funds.

482. Implementation approach of the equity return mechanism for tailings resource development. Attracting social capital to participate in the disposal of AREMs by providing preferential conditions for developing tailings resources and exempting mineral resources compensation fees

483. Return on the benefits of the ecological landscape. Encourage social capital to adopt a number of remediation (reconstruction) measures, and explore or create new tourism scenic spots (bands), science parks, and mining parks.

(3) Administrative incentive mechanism

484. The administrative incentive mechanism includes social public opinion incentives, government recognition incentives, integration into the government's performance appraisal, and incentive policies that combine the protection of people's livelihood policies. The administrative incentive mechanism is also manifested in the establishment of specialized organizations to carry out the management of AREMs, the establishment of remediation incentive mechanism construction work into the scope of local government performance appraisal, and the combination of governance work with the protection of local people's livelihood.

485. Social public opinion incentives mainly provide social public opinion and media publicity to social capital institutions and individuals through the power of public opinion, and improve the visibility and reputation of mining rights holders; government recognition incentives refer to the government's encouragement of social capital participation in areas with good governance effects.

G.2.4 Involving funds and technologies from international organizations 486. Through this report, ADB and relevant departments can have a better understanding of the current situation, issues, significance and necessity of ecological restoration and poverty alleviation of abandoned mines. The implementation of this project is beneficial to the realization of the rural revitalization strategy, ecological civilization, precise poverty alleviation, and other strategies, and is also in align with the key support scope of ADB's loan project. Besides, World Bank, Global Environment Fund and other institutions have similar precedents of loan assistance projects. Therefore, it is suggested that the Department of Finance and Ganzhou Municipal Government should be the executing agency to set up a project office for loans for ecological restoration and poverty alleviation of abandoned mines in Jiangxi

Province, actively connect with the Ministry of Finance of PRC, incorporate the project into the future three-year project pipeline, and promote the project to obtain financial loan assistance from ADB, WB, the Global Environment Fund, etc.

487. Given the immature domestic ecological remediation technologies for soil and water remediation, insufficient experience in remediation and deficiencies of remediation models, UNEP and Natural Resources Defense Council should be introduced to participate in the ecological restoration of abandoned mines in Jiangxi Province as advisory and consulting organizations.

G.3 Poverty alleviation tasks and initiatives

488. Section E.3 above gives an overall review of the economic and ecosystem linkages to poverty alleviation while this section concentrates on poverty alleviation tasks and targets for Ganzhou Prefecture.

G.3.1 Ganzhou urgently needs the combination of ecological restoration and poverty alleviation 489. Ganzhou Prefecture belongs to the Former Central Soviet Area (Former Chinese Central Revolutionary Base) and Luoxiao Mountain contiguous poverty areas (one of the 14 national concentrated areas). Poverty problem is particularly serious in Ganzhou. With the highest poverty rate in Jiangxi Province, Ganzhou has a certain national representativeness.

490. In 2018, the per capita disposable income of rural residents in Ganzhou Prefecture was 10,782 yuan, only 74.56% of the average level in Jiangxi Province. In November 2017, the General Office of the Jiangxi Provincial Party Committee and the General Office of the Provincial Government jointly issued the “Jiangxi Province strongly supports the implementation plan for poverty alleviation in deep poverty villages", listing 269 deep poverty villages in the province, including 167 villages in Ganzhou Prefecture accounting for up to 62.08%. "Implementation Opinions of the Jiangxi Provincial People's Government of the Jiangxi Provincial Committee of the Communist Party of China on the Three-Year Action to Win the Fight against Poverty" (issued in September 2018) requires that by 2020, the rural poor will be lifted out of poverty63 and absolute poverty will be eliminated.

491. The poverty alleviation goal sets out in the 13th FYP for Poverty Alleviation (issued and implemented by the State Council in November 2016): "By 2020, we will steadily achieve the goal of ensuring that the rural poor do not worry about food and clothing, and that compulsory education, basic medical care and housing safety are guaranteed (referred to as" Two no Worries, Three Guarantees "). Later, on this basis, the state joined the goal of "guarantee the drinking water safety of the poor residents", forming the goal of "Two No Worries, Four Guarantees" for poverty alleviation. Through the efforts of governments at all levels, the goal of "Two no Worries" has been basically achieved, but there is still a certain distance to achieve the goals of medical treatment, housing, water safety, etc.

492. Ganzhou City undertakes ecological civilization construction, but poverty alleviation tasks are still a challenge and there is a need to combine poverty alleviation with ecological restoration

63 China's current poverty line is based on the 2011 constant price of 2,300 yuan. In 2018, the poverty standard is 3,535 yuan/year (that is, the annual per capita net income is 3,535 yuan, the same below); the poverty standard is 3,747 yuan/year in 2019; the poverty standard is 4,000 yuan/year in 2020.

G.3.2 Eco-industrial development + poverty alleviation 493. As a core driving force for development-oriented poverty alleviation, industrial poverty alleviation is the most effective and direct measure to promote poverty alleviation. The fundamental approach is to expand the industrial development and other options or low- income households and to diversify diversified income sources through government guidance and market-oriented operation of enterprises, and to promote industrial and SME development to contribute to poverty alleviation through direct and indirect employment generation.

(1) Agricultural poverty alleviation

494. Generally speaking, most of the poor households live in rural areas, and agriculture is their main source of income. In the mode of agricultural poverty-stricken, the participation of poor households is high, the driving effect is sustained, and local resource endowments can also be utilized. On the basis of the restoration mode 1.0, while improving the mechanism of encouraging social capital to participate in the abandoned mine, it actively guides the agricultural enterprises to make full use of local resources and their own advantages, and provides free seedlings, fertilizers, pesticides and production equipment for the poor households, to improve the enthusiasm of poor households for production. Through the establishment of the "company + base + farmers" model, set the minimum purchase protection price of agricultural products, reduce market risks, and achieve stable growth of poor households’ incomes. Agricultural enterprises employ poor households to participate in the production and operation of enterprises, and pay wages to poor households to obtain a stable source of income. The government gives corresponding fiscal and tax incentives for enterprises to drive poverty-stricken households out of poverty.

(2) Industrial poverty alleviation

495. In the restoration model of converting abandoned mines into industrial parks (such as the Fuguo Industrial Park in Dingnan County), a large number of workers are required to enter the factory to work. The government can encourage enterprises to absorb poor households to work in factories, give enterprises financial and tax relief and preferential treatment, and provide stable jobs and incomes for poor households. At the same time, the government can provide free pre-job training for poor households to enter the factory work in the form of education and technology poverty alleviation.

(3) Service industry poverty alleviation

496. The service industry is the department that absorbs the most employed people in China, and many of the service industries have lower employment and operating limits, which is beneficial to poor households. Rural tourism is a relatively popular form of tourism in China in recent years, and it is an effective way to help the poor in poverty-stricken areas. Ganzhou City is rich in ecological resources, and neighboring provinces such as Guangdong Province and Fujian Province have high economic development levels and have a large demand for rural tourism. Therefore, tourism can be used as an important channel for poverty alleviation. In combination with the local mine conditions in Ganzhou, the restoration mode 2.0 was implemented to attract residents from neighboring provinces and cities to travel to Ganzhou.

497. The role of tourism in poverty alleviation can be seen in the direct production-driven model, the employment-driven model and the asset-earning model. a. Direct production-driven model means that the development of local tourism can expand the sales of agricultural and sideline products and promote the transformation of agriculture. Tourism enterprises develop characteristic agriculture and increase sales of agricultural products by integrating farmers'

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 129 Final Report NᴧREE resources and the land resources of abandoning mines. b. The employment-driven model refers to tourism companies that can drive local residents to engage in tourism-related work, such as entering a tourism enterprise to work. c. The asset-earning model refers to encouraging poor households to share the overall tourism income with the relevant tourist attractions, or to encourage poor households (such as preferential or interest-free loans) to convert their own houses into homestays, farmhouses, etc. to obtain operating incomes.

G.3.3 Education and training + poverty alleviation 498. Local governments have learned through research and analysis of the willingness and needs of poor households (mainly referring to poor households with working ability), mainly focusing on local industry development and enterprise employment needs, and actively organizing poor labor to participate in pre-job training and job skills training. According to the training needs of the poor labor force and the willingness to work, the training categories will be diversified, the models will be diversified, the locations will be three-dimensional and the forms will be flexible, and the skills training needs of the poor labor force will be met as much as possible.

499. For those who have willingness and abilities to work in the local enterprises, they will be directly organized by enterprises to participate in pre-job trainings to achieve closely integration of training and employment. For those who are willing to cross-provincial labor export and choose to receive skills training, organize training resources according to their training needs to implement training or guide them to receive third-party trainings. For those who are older and unwilling to go out, carry out practical technical training such as breeding and domestication services, improve the pertinence and effectiveness of training, and implement vocational training subsidies according to regulations. In the process of education and poverty alleviation, enterprises and individuals can be encouraged to implement the “helping the way” poverty alleviation methods. For example, poor households first enter a hotel or farmhouse as employees. After a few months of training, the poor households would basically understand the management methods.

G.3.4 Technical support + poverty alleviation 500. Technical poverty alleviation mainly refers to the use of mine ecological restoration technology to carry out poverty alleviation in mining areas, including slope treatment, soil improvement and other technologies. Remediation and treatment of contaminated land and abandoned land will be carried out to realize land reclamation and ecological reconstruction, and solve problems such as low land utilization rate and poor ecological environment for the mining area. Local villagers can grow economic crops in the restored abandoned mines and obtain economic resources. At the same time, the government and enterprises can provide villagers with new technologies such as cultivation and planting to increase crop yields.

G.3.5 Land Transfer and Resettlement for poverty alleviation 501. For the poor and remote mountainous areas, those who have been plagued by geological disasters for a long time, and the ecologically fragile population, we must resolutely implement and appropriately expand the relocation of immigrants from different places, and thoroughly solve the problem of the survival and development of this part of the poor through “one-step urbanization”. Integrate the funds of the land, development and reform, poverty alleviation, agriculture, forestry and other departments, combine the construction of new rural areas and the construction of characteristic towns, give priority to the supply of land needed for new site construction, and solve the problem of “moving out”; relocating the population to employment, taking measures such as “ecological compensation” for the original homestead, self-retained mountains and self-retained land of the displaced population to solve the problem of “stable” and “developable”.

G.3.6 Drinking water safety + poverty alleviation 502. According to the results of social survey and water quality analysis, the safety of drinking water for residents still needs extra attention of governments at all levels. Firstly, it is to take the lead in establishing drinking water supply projects in villages with high residential concentration, large population scale and close to downtown of counties, such as extending the water supply pipeline from downtown of counties to villages to ensure the safety of drinking water for villagers. Secondly, it is to consider small-scale centralized water supply for remote and scattered villages 64 , using a part of poverty alleviation special funds and/or Rural Revitalization Strategy funds to employ special agencies to investigate, analyze the water sources, choose the best water sources without pollution as locations for simple water plants.

G.3.7 Improve the long-term poverty reduction mechanism 503. According to the central government's strategic plan to win the battle against poverty, the goal of comprehensive poverty alleviation needs to be achieved by the end of 2020. However, after this battle, there are issues of great possibility of returning to poverty and how to effectively improve the income level of poor households, thus, it is needed to establish a long-term mechanism for poverty reduction. Firstly, it is to diversify the income sources of poor households and to enhance the stability of their income, to avoid the simplification of family economic structure. According to the actual situation of abandoned mines, the remediation should achieve land income, labor income, safeguard income and other income goals. Secondly, poverty alleviation should prioritize “eliminate poverty in mind” that stimulate the development momentum, to change the thoughts of poor households that “waiting and dependent on support”. It is to strictly popularize compulsory education, strengthen investment in human resource development, to provide loans or free assistance to their children in the high school and university education stages, and to block the intergenerational transmission of poverty. Third, it is to improve rural public services and rural social security system, to increase investment in rural infrastructure, health care and social security in poor areas, and to promote the equalization of public services in urban and rural areas.

G.4 Improve the mechanism for residents to participate in the restoration of abandoned mines

504. As the ultimate beneficiary of the management of AREMs, community residents are the most basic main elements of environmental remediation. With the awakening of civil rights awareness, residents have shown an increasingly strong desire to participate in environmental remediation. The participation of residents can restrict the bad development of government power, and can achieve a system of cooperation between the government and other entities, which can guarantee the realization of public interests.

G.4.1 Strengthen publicity and education to residents 505. Strengthen publicity and education, carry out regular publicity lectures on ecological civilization construction in villages and towns of various counties, create an atmosphere in which the whole society participates in AREMs, and make residents understand the significance of the restoration of AREMs, mobilize the whole society to take action and jointly

64 According to the field survey, it will take two hours by vehicles from some villages to the nearby county, so it is impossible to establish a water plant for centralized water supply. Some villages are located on mountains, with high altitude and affected by topography, therefore, the cost of large-scale centralized water supply is high.

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 131 Final Report NᴧREE fight Win the blue sky to defend the war, fight the battle for clear water, and solidly promote the battle of pure land to build "five beautiful" villages in the new era of Jiangxi.

506. Raise the awareness of the villagers on the significance of the restoration of AREMs. Through broadcasting, television, internet, leaflets, wall advertisements, etc., three- dimensional promotion of the significance of the restoration of AREMs and the promotion of residents’ understanding of the significance of the restoration of AREMs, including the production of the villagers themselves, Ways of influence and results of life, physical health, etc.

507. Following extensive publicity, the villagers are encouraged to actively contribute to the restoration of AREMs, provide suggestions and contributions to the government, and often invite representatives of social organizations and public opinion leaders who have been active in the field of ecological environmental protection to participate in seminars and research. Collecting the wisdom of the whole people to continuously improve the local ecological environment.

G.4.2 Public participation in abandoned mine restoration: supervision 508. Play the role of social supervision, especially non-governmental organizations, to promote the sustainable development of rare earth mines.

509. Supervision of indiscriminate exploitation. In the southern part of Jiangxi Province, many mining areas are in the “remote mountain and elder forest”, and illegal mining often occurs. At the same time of illegal mining, accompanied by the phenomenon of indiscriminate mining, the damage to the ecological environment is much higher than that of scale mining (the case of obtaining mining rights). It is difficult to stop such phenomena by the power of the government alone. On the one hand, we will actively play the role of local community residents and establish an incentive system for indiscriminate exploitation and fraud. On the other hand, in combination with ecological poverty alleviation initiatives, local poor households are hired to patrol the mountains to create employment and increase the income of residents, while effectively preventing the phenomenon of indiscriminate exploitation.

510. Supervision of the progress and quality of the project remediation. Due to the scattered distribution of AREMs and inconvenient transportation, many mines have insufficient management and protection at the later stage, resulting in poor remediation performance. Local residents are encouraged to conduct regular and irregular tracking of nearby remediation projects, report the progress and quality of the project to the grassroots organizations, and reduce the government's supervision costs.

G.5 Improve the deep treatment mechanism and measures of abandoned mines

511. The management of AREMs must adhere to the principles of “prevention first, prevention and control combination”, “development in protection, protection in development”, “scientific planning, adhere to local conditions, comprehensive management, economic feasibility, and rational use”.

G.5.1 Promote deep treatment of soil 512. At present, in the territory of Ganzhou Prefecture, the measures for vegetation restoration of AREMs have been fully implemented. The vegetation coverage rate is over 80%, soil erosion is reduced by more than 80%, and the treatment effect is acceptable. However, there are no major measures in soil management. The reasons are as follows: (i) the long-

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 132 Final Report NᴧREE term remediation cycle, effects are difficult to achieve in the short term; (ii) the amount of funds required for remediation is large; (iii) it is difficult to obtain economic benefits in the short term.

513. Soil management is an important part of the systematic management of AREMs in Jiangxi. In the process of remediation, we adhere to the principle of “natural restoration, supplemented by artificial treatment” and prepare for the 5-10 years of remediation work. In the plant selection and soil improvement program, strengthen cooperation with Jiangxi University of Science and Technology, Jiangxi Agricultural University, China Agricultural University, Nanjing Agricultural University and other research institutions.

(1) Promote phytoremediation for soil management 514. The phytoremediation method is a kind of bioremediation method. As an emerging green biotechnology, bioremediation can directly absorb pollutants and take them away from the soil through the roots of plants without destroying the soil ecological environment and maintaining soil structure and microbial activity, thus repairing contaminated soil to achieve the purpose of removing soil pollution. Compared with traditional engineering, physical and chemical repair methods, this technology is low cost, small amount of engineering, no secondary pollution, suitable for large-scale promotion, and is called cheap “green repair technology” (Wang and Shen 2014). It has good social and ecological benefits and is easily accepted by the public.

515. The main measures to restore soil through phytoremediation are as follows: (i) screening of heavy metal-tolerant plants in rural areas based on the study of natural settled vegetation in abandoned land; (ii) combining the characteristics of mining areas with ubiquitous biomass waste and industrial waste as improved materials; (iii) the control of heavy metals in the soil; (iv) through the role of vegetation reconstruction and improvement to achieve comprehensive control of water and soil pollution.

516. Plant species selection is an important measure to improve the soil. Vegetation selection should follow the local vegetation succession law, niche principle and local conditions. Following the law of succession requires us to choose the pioneer species in the early succession when selecting plant species; and the niche principle requires us to make full use of the light, heat, water, space and other conditions of the abandoned land to achieve grass, irrigation, and trees combination; the principle of adapting to local conditions requires us to take into account the production and life of local residents (Song and Liang 2018).

517. Plant species selection should do the following: (i) select pioneer species that are resistant to barren, drought-tolerant, and toxic-tolerant; (ii) prefer local or foreign economic species that have less damage to local ecology. Because the ionic rare earth ore in Ganzhou is mostly near villages, the species with certain economic value will be selected to bring about certain economic benefits to the local residents when they are rehabilitated; (iii) easy to sow, cultivate, or commercialized species. For example, economic tree species suitable for ecological restoration of AREMs in southern Jiangxi, including camellia, citrus (navel orange), ramie, etc.; (iv) form a reticular pattern of herb, shrub and horticultural plants to restore biodiversity.

(2) Promote the application of biochar and agricultural waste in soil improvement

518. Promote the application of biochar in soil improvement. The soil of abandoned land in the mining area is poor, with high ammonia nitrogen and heavy metals. Biochar has good porosity and large specific surface area, and it is feasible to use it to passivate heavy metals in sludge. The application of biochar significantly reduced the total nitrogen and total

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 133 Final Report NᴧREE phosphorus in the sludge-mine soil (X. Yang 2017). Experiments have shown that the organic improver straw, sawdust, municipal sludge, chicken manure and hemp biochar are used for single application or compound application, which significantly increases the content of organic matter in the soil and soil water retention, and slows the loss of nutrients; and significantly improve the loss of organic matter, especially after the application of sawdust, the loss of soil organic matter decreased to 45.4%, which improved the durability of the improvement effects (Chen, et al. 2018).

519. Promote the application of agricultural waste in soil improvement. The agricultural waste was used as the biomass carrier, and the Bacillus amyloliquefaciens strain was used as the plant growth promoting agent to prepare the in-situ repair plant care system for the ionic rare earth tailings. This technology not only increases soil fertility, but also prevents soil compaction and prevents rapid evaporation of soil moisture. The use of agricultural waste biomass carrier has wide source, low cost and simple operation. It can be used not only as “waste” but also as a biological fertilizer to provide plants with various nutrients, making the soil to be repaired more suitable for plant growth. It reduces leakage of irrigation water, reduces soil erosion, helps maintain soil structure, prevents secondary salinization of soil, and plays a positive role in improving regional ecological environment. The benefits of each mu reach more than 2,000 yuan, and the indirect benefits reach more than 6,000 yuan per mu. The scale of technology investment is about 3,000 yuan/mu65.

G.5.2 Water quality management and upgrading (1) Treatment of surface water

520. The main influence source of rare earth mining on surface water is the rare earth leaching and ammonium sulfate. Due to the complicated geological environment of the mine, some leaching liquids leak into the natural water body, causing water pollution, which also seriously restricts the normal mining of the mine.

521. Promote rare earth tailing water treatment technology. In the process of exploring the wastewater of the rare earth mining area, fully consider the geological environment and regional pollution factors, and implement the water treatment technology—single-stage percolation coupling technology, in the main producing areas of Ganzhou to improve the water environment quality of the mining area. Experience has been accumulated in tailwater treatment in small watersheds of mining areas.

522. Rare earth tailing water collection and treatment is carried out by means of BOT purchase service. Due to the large investment demand for rare earth water treatment stations, the capital demand for small processing stations is over 20 million yuan, and the large processing stations are more than 100 million. Therefore, the problem of tailing water in AREMs is dealt with by means of BOT purchase services. The organic combination of government governance objectives and market mechanisms not only solves technical problems, but also better plays the role of the market. According to the principle of “who pollutes who manages and who explores who protects”, the Ganzhou Rare Earth Mining Company undertakes the task of treating AREMs within the scope of mining licenses, further enhances the enterprise's awareness of ecological environmental protection, and allows enterprises to assume the main responsibility of remediation. The rights, responsibilities and interests of enterprises are organically unified.

65 Jiangxi Province (Atmosphere, Water, Soil) Pollution Prevention and Control Advanced Applicable Technical Guidance Catalogue, Beijing Boyuan Hengsheng Technology Co., Ltd. Website: http://www.byhsgroup.com/nd.jsp?id=291

523. In addition to using domestic capital, special loans to ADB, the World Bank and other international financial institutions for the tailwater treatment of AREMs are available. ADB has set up Super Green Fund for ecosystem restoration. Ganzhou can apply to ADB for the Fund for the treatment of surface water (pilot project), and then cover the use of the fund to the treatment of soil and groundwater. The Ganzhou government reported to the Jiangxi Provincial Department of Finance and the Ministry of Finance on the issue of the Super Green Fund. After obtaining the consent of the relevant departments, the Ganzhou government then submitted a formal application to ADB.

(2) Groundwater treatment

524. According to domestic and international research, under the in-situ leaching process, the injection of large-area and huge amount of leaching solution makes the groundwater level rise continuously. Ammonia nitrogen and sulphate are one of the main characteristic pollutants in the rare earth industry. They will not only enter the groundwater body through defiltration, but also directly flow into nearby rivers through rainwater erosion and surface runoff, resulting in the concentration of ammonia nitrogen, nitrite nitrogen and nitrate nitrogen (triple nitrogen) and sulfate, seriously polluting the water environment around the mine, posing a great threat to groundwater and ecological safety.

525. The groundwater in the rare earth mining area of southern Jiangxi belongs to the combined pollution of rare earth elements, triple nitrogen and sulfate, and its acidity is extremely high. At present, no good solution has been proposed for the problem of groundwater complex pollution in southern Jiangxi. However, there are already mature water treatment technologies for the above-mentioned pollutants respectively. For example, rare earth element pollution is often treated by in-situ bioremediation. Nitrate pollution is usually treated by ion exchange method, and high-concentration ammonia-nitrogen wastewater is treated with membrane technology. The technology applied to each ion is different, and the application conditions of each treatment technology are also different (Tu, et al. 2017).

526. Due to environmental friendliness, low cost and thorough repair, bioremediation has become a domestic and international hot spot in the research of rare earth element pollution control in recent years. Microbial remediation of groundwater environment research focuses on increasing microbial activity, availability or accelerating microbial degradation rate and efficiency, while the study of heavy metal hyperaccumulators is a focus of phytoremediation. In addition, the joint repair method represented by plant-microbial repair has greatly improved the safety of the repair process, and reduced the cost of repair while maintaining soil fertility and becoming a new direction of soil pollution repair (Han and Li 2012).

G.5.3 Increase the treatment of tailings and tailings dams (1) Strengthen the comprehensive utilization of tailings

527. Guiding social funds and resources into the comprehensive utilization project of tailings, actively explore the use of PPP mode, third-party management methods, fully mobilize the polarity of all areas, and accelerate the management of tailings. Promote the comprehensive utilization of tailings, organize the implementation of the tailings comprehensive utilization demonstration project, continuously improve the proportion of comprehensive utilization of tailings, expand the scale of comprehensive utilization of the industry, and reduce the impact on the ecological environment.

528. Strengthen the application of waste rare earth tailings in the material industry. Some mineral components in rare earth tailings have process characteristics that affect the formation

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 135 Final Report NᴧREE and performance of building materials. In recent years, PRC's construction industry has developed rapidly, and the demand for building materials has also increased. The use of rare earth tailings to develop building materials has effectively utilized waste tails. While mines and environmental pollution are improved, the performance of building materials can be greatly improved and it has great application value. Specifically, it includes cement manufacturing, ceramic materials, glass materials, and catalysts.

(2) Construction and consolidation of tailings dam

529. In some AREMs, due to the early construction year, mainly concentrated in the 1980s and 1990s, and long-term soil erosion impact pressure, there is a problem of disrepair. In the survey, it was found that some tailings dams of AREMs have serious safety hazards, which seriously threaten the ecological property safety of the attached villagers. In this regard, we need to work in the following aspects:

530. Conduct safety inspections of all rare earth tailings dams in Ganzhou Prefecture. Leading by the Ganzhou Municipal Bureau of Mine Management, the Department of Natural Resources, the Office of the Rare Earth, and the Bureau of Soil and Water Conservation will conduct a unified inventory of all rare earth tailings dams in Zhangzhou City, and establish a file to assess the safety risks of tailings.

531. Different approaches are taken for tailings dams with different safety factors. Combine the rural revitalization strategy fund, the ecological civilization construction fund, and the comprehensive pilot fund of the landscape and forestry lakes and grasses, comprehensively rebuild and reinforced the dangerous dam body, so that the dam body meets the design and specification requirements; set up a buffer zone, resettle the buffer zone residents, and construct a buffered back-up dams. Add a back-up flood discharge system; establish a satellite positioning monitoring system for the tailings dam to control the safety of the tailings dam.

G.6 Improve the compensation and assessment mechanism for abandoned mines

G.6.1 Improve the ecological compensation mechanism 532. Explore the establishment of multi-domain, diversified ecological protection compensation mechanisms. Increase financial support, promote diversification of compensation entities, diversify forms of compensation, focus on establishing ecological compensation mechanisms for drinking water sources and ecological compensation mechanisms for cross-border sections, improve the dynamic adjustment mechanism of compensation standards for public welfare forests, and explore ecological protection in different places. The compensation mechanism will improve the green subsidy-oriented agricultural subsidy system.

533. Improve the compensation mechanism for residents' production, life and health, and protect the legitimate rights and interests of the villagers. It is necessary not only to clarify the specific infringement identification standards, compensation standards, and compensation methods, but also governments at all levels should strengthen the emphasis on the interests of villagers and improve the satisfaction of villagers' interests.

G.6.2 Improve the realization mechanism of the value of ecological products 534. Establishing the realization mechanism of the value of ecological products is an important measure to implement the "Two Mountains" theory of General Secretary Xi Jinping

(Green mountains and clear water are equal to mountains of gold and silver), and is also an effective way to realize the transformation of "green mountains and clear water" to "mountains of gold and silver".

535. Further rationalize the mineral rights and forest rights, confirm the rights of "green mountains and clean water", and revitalize the "mountains of gold and silver". Actively promote the registration of natural resources, guide local villagers to transfer land through subcontracting, leasing, swapping, and shareholding in accordance with the law, establish a standardized and orderly land transfer mechanism, strengthen the assessment of the transfer of land and resources, and effectively protect the circulation. Both parties have legal and reasonable expediency. For the collective land and forests that have not been delivered to the household, they will be quantified in the form of equity to the members of the village share economic cooperatives.

536. Encourage all kinds of funds from the society to participate in the remediation of AREMs and solve the problem of large funding gaps. Investment incentives, subsidies, guarantee subsidies, loan interest subsidies and other means are adopted to mobilize social capital to participate in remediation. Exploring the establishment of performance-based financial fund allocation methods, gradually shifting from “complementing construction” to “compensating for operations” and from “pre-subsidy” to “post-reward”. Establish an incentive system for green finance, encourage financial institutions to increase development efforts, explore support mechanisms for ecological products and green credit, improve various guarantee mechanisms, and increase risk compensation.

G.6.3 Establish and improve the water quality early warning mechanism of AREMs 537. The establishment and improvement of the long-term early warning mechanism for the water quality of AREMs is conducive to mastering the pollution situation of the entire rare earth mining area and the spread and flow of pollution sources. The focus of the treatment will be on the surface and in the same place to promote the same treatment of AREMs. As Ganzhou Municipal is the origin of Gan River and Dongjiang River, which is related to the water safety of tens of millions of people in the mainland and Hong Kong, it is particularly important to strengthen the monitoring and early warning mechanism of water quality.

538. Establish a mine water quality early warning mechanism in the provincial environmental monitoring network system. The provincial Ecological Environment Department will take the lead, and the Department of Natural Resources, the Agricultural and Rural Affairs Department, the Forestry Bureau and other departments will regularly and regularly monitor the groundwater and surface water quality around the rare earth mines. Create a rare earth mine environmental safety monitoring and early warning system.

539. Plan mine monitoring points. Rationally plan the arrangement of monitoring points in the early warning system, and implement scientific layout according to the distribution characteristics of rare earth mines and the impact on surrounding river basins.

540. Establish an emergency and conventional event handling mechanism for early warning mechanisms. For rare earth mining areas with less impact on the river basin and relatively closed scope, “fixed-point removal” can be implemented preferentially; for sudden pollution incidents involving large areas, clear treatment processes and participating entities, emergency material reserves and other matters.

G.6.4 Promulgation of the Mine Management Recovery Fund Management Measures as soon as possible 541. In May 2018, Jiangxi Province canceled the mine environmental management recovery deposit system and fully implemented the governance remediation fund system, but so far, no specific management measures have been introduced.

542. Promote the promulgation of the “Administrative Measures for Remediation Funds for Geological Environment Management in Jiangxi Province” as soon as possible. Explain the establishment and use scope of the fund's withdrawal and amortization accounts; Clearly change the disposal method of the mine geological environment management restoration program fund, in the case of mining rights transfer and continuation, closed pits, etc.; Clarify the fund's extraction, use, and mining rights to implement the regulatory measures for mine geological environmental governance recovery obligations; clarify the provisions of the mining rights holders who fail to comply with the provisions on the disposal of mine geological environment governance and recovery obligations.

G.6.5 Improvement of food safety mechanism 543. Excessive intake of rare earth elements in human body may lead to accumulation of rare earth elements in the body, which may eventually lead to all kinds of fatal diseases. In order to realize the economic value of abandoned mines, some mines have been transformed into agricultural land, such as planting vegetables and fruit trees (mainly navel orange), which greatly improved the income level of residents. However, rich rare earth elements in soil can easily enter human bodies through human-credit fruits, roots and so on, thus, causing body diseases. Therefore, in addition to the above-mentioned measures of heavy metal absorption by plants, biochar technology and agricultural waste treatment to improve soil conditions, there is a need to improve the food safety mechanism. Firstly, before planting cash crops, it is necessary to analyze the physical and chemical properties of soil, and only after certain conditions are met can planting be allowed, to prevent excessive rare earth elements entering residents' bodies from the source. Secondly, Crops should be checked regularly, and if it is found that the edible fruits, roots and stems do not meet the food safety standards, it is not allowed to circulate them in the market. Thirdly, it is to improve food traceability mechanism and the protection measure should be added from the end. With the help of the QR code traceability system, the QR code of the product label is generated online and posted on the commodity package; the consumer can scan the QR code to view the production date, product processing information, test results and enterprise qualification information of this batch of agricultural products.

G.6.6 Establish a cost-benefit assessment mechanism before and after the restoration of abandoned mines 544. In order to achieve systematic remediation objectives, soil, groundwater and surface waters need to be treated. However, compared to vegetation restoration, these types of treatment costs are usually higher, but after repair, there will be many direct and indirect benefits. Therefore, it is necessary to evaluate cost-benefits before and after restoration of abandoned mines. According to the experience of international abandoned mine repair, CBA, CEA, MCA and other evaluation methods can be considered (see Chapter E for analysis). The cost-benefit analysis of the abandoned mines remediation in combination with the actual situation in Ganzhou is shown in Figure G-3.

Figure G-3 Cost-benefit analysis of abandoned mine restoration Source: TA team Production

G.7 Summary

545. In this chapter, based on the analysis of the current situation, effect, problems and objectives of the restoration of abandoned mines in Ganzhou above, we think that in the future, the government should combine the strategies of Rural Revitalization and Construction of ecological civilization experimental area, and carry out work in the following five aspects:

546. (1) Improve the mechanism for social capital to participate in the rehabilitation of abandoned mines. The establishment of the mechanism is conducive to the realization of multi-agent participation and multi-income restoration objectives, and to alleviate the financial pressure of local governments. The establishment of this mechanism requires the government to establish an incentive mechanism in three aspects of tax, fiscal and finance (Including fiscal incentive, tax incentive and financial support), return of governance revenue (Including land equity return mechanism, tailings resource development equity return mechanism, ecological landscape income return mechanism), administration (Public opinion incentive, government commendation incentive), etc., in order to encourage social capital to participate in the restoration and later management and protection of abandoned mines, and then realize the ecological and economic benefits of abandoned mines. Besides, actively promote and obtain funds and technical assistance from ADB, WB and other international organizations for AREMs remediation and poverty alleviation.

547. (2) Improve the mechanism of combining ecological restoration with poverty alleviation. Ganzhou, as the most poverty-stricken area in Jiangxi Province, needs to integrate the

TA-9480 PRC: Improving Ecological Protection and Poverty Alleviation Outcomes in the Mining Area in Ganzhou Jiangxi NAREE International Limited (Hong Kong) in association with NAREE Consulting Limited (PRC) 139 Final Report NᴧREE strategic goal of poverty alleviation while doing a good job in the restoration of abandoned mines. It is suggested to promote the application of various modes such as ecological industry development + poverty alleviation, education and training + poverty alleviation, technical support + poverty alleviation, drinking water safety + poverty alleviation in the repair of abandoned mines by means of government guidance and market-oriented actions of enterprises, and to implement the mode of overall relocation and poverty alleviation for areas with serious ecological problems. After China builds a moderately well-off society in 2020, the long-term mechanism for continuous poverty reduction will be gradually improved.

548. (3) Encourage residents to participate in the restoration of abandoned mines. Residents are one of the main victims of abandoned mines, and also one of the biggest victims of mine restoration. Residents' participation in the restoration of abandoned mines is not only beneficial to the long-term and deep restoration of abandoned mines, but also beneficial to the economic benefits of residents' participation in the process of mine restoration. On the one hand, it is necessary to improve the residents' understanding of the significance of restoration and establish a mechanism for residents to participate in the restoration of abandoned mines; on the other hand, it is necessary to establish a mechanism for residents to supervise identity in the process of restoration.

549. (4) Improve the mechanism for deep restoration of abandoned mines. At present, the restoration effect of abandoned mines in Ganzhou is mainly reflected in the greening of vegetation on the surface, but it is still insufficient in the deep treatment effect of water (surface water and groundwater), soil, tailing dam, etc. By vigorously promoting the technology of phytoremediation of soil, biochar and household waste, the problems of land acidification, desertification and heavy metal content exceeding the standard are changed; the water quality of abandoned mining areas is improved by means of improving water treatment technology, microbial remediation, BOT purchase, etc.; the tailings accumulation is alleviated through comprehensive utilization of tailings, through the comprehensive utilization of tailings, strengthening the modification and consolidation of sand dams (monitoring and evaluation), etc., the hazards of tailings accumulation on residents and ecology will be alleviated.

550. (5) Improve the compensation and assessment mechanism for abandoned mines. In the compensation mechanism, it is necessary to promote the diversification of compensation subjects and diversification of compensation entities, and increase the compensation for residents; in the realization mechanism of ecological product value, it is necessary to further rationalize the relationship between different property rights and encourage cooperation in various mine restoration; establishes mine water quality early warning mechanism, emergency and routine event handling mechanism in the early warning mechanism; improves the food safety mechanism to prohibit the circulation of excessive rare-earth elements foods; establishes a cost-benefit evaluation mechanism for abandoned mine repair and maintenance, to evaluate the overall input and output effectiveness, which will provide experience for the restoration work in other areas.

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H Appendices

H.1 Social Survey Questionnaire

Community resident questionnaire 1. Basic information of residents surveyed Numbering: Researcher: Address: Jiangxi Province City County / District Township/Town Village Group (natural village) Name Gender Age □ Elementary school and below □ Junior high Educational Contact school level number □ High school □ College and above Family Number of labor Party member / (Yes / No) population force village cadre

2. Agricultural Production Planting / farming Contracted Main Serial Land (water) Own area Input cost area planting / Harvest number type (Mu) / mu (Mu) breeding (yuan) (yuan) species 2-1 Arable land 2-2 Woodland 2-3 Garden 2-3-1 Tea garden 2-3-2 Orchard Vegetable 2-3-3 garden 2-4 Pond 2-5 Lake Other 2-6 ( )

3. Water consumption for agricultural production (corresponding location √ )

Serial Arable Livestock Production water Woodland Garden Pond Other ( ) number land farming 3-1 River 3-2 Creek 3-3 Lake 3-4 Reservoir Groundwater (<10 3-5 m) Groundwater 3-6 (11-50 m) Groundwater 3-7 (51- 100 m)

Serial Arable Livestock Production water Woodland Garden Pond Other ( ) number land farming Groundwater (> 3-8 100 m)

4. Water consumption for living (corresponding location √)

Miner Rive al Serial Tap r / Groundwat Groundwat Groundwat Groundwat Domesti water numbe wate cree er er (11-30 er er c water / r r k / (< 10 m) m) (31-50 m) (> 50 m) Pure lake water 4-1 Drinking Washin 4-2 g

Surrounding environment of living (corresponding location √)

Place of residence

Number of houses House House floor (building) area (m2) Constructio Number of Year of construction n cost rooms (yuan) □ Peak □ Mountainside □ Mountain foot □ Plain □ House location Riverside □ Other □ Civil structure □ Wooden □ Brick □ Brick-wood □ Reinforced concrete Building property □ Other Seria l Living environment num ber The closest 5-1 source to your □ River □ Stream □ Well □ Other home Is there a mining 5-2 area around □No □Yes (□Rare Earth Mine □Copper Mine □Coal Mine □Others) your home? The straight-line distance 5-3 between the □ 300m □ 300-500m □ 501-1000m □>1000 m mine and your home The history of 5-4 □1980 years ago □1981-1990 □1991-2000 □2001-2010 □After 2011 the mine Does the mine □ No (skip to 5-7) affect the water 5-5 □ Yes (□ can't drink directly □ can't be used for washing □ can't be used source around for any purpose □ other) your home?

The mine area is harmful to the 5-6 water source □ Odorous □ Water body discoloration □ Other around your home. Is there a special □No □Yes (□50 yuan and below/month □51-100 yuan/month □101- 5-7 expenditure for 200 yuan/month □201 yuan/month/month) purchasing drinking water? Does the mine □ No (skip to 5--10) 5-8 affect your □ Yes (□ Surface sinking □ Debris flow impact □ Wall cracking □ house? Others) Degree of □ Does not affect living □ Having impacts (□ Partially affected □ 5-9 influence on Dangerous house) your house Does the mine cause noise 5-10 □ No □ Yes (□ Very serious □ Serious □ General impact □ No impact) pollution to your house? Does the mine cause dust 5-11 □ No □ Yes (□ Very serious □ Serious □ General impact □ No impact) pollution to your home? Has the house ever suffered □No □ Yes (□ earthquake collapse □ Debris flow and landslide □ 5-1 2 from natural Surface sinking □Other) disasters?

6. The surrounding environment of the production site and its impact (√ at corresponding positions)

Serial The surrounding environment of the production site and its impact number Do you family have rare earth tailings area 6- 1 □ Yes □ No (skip to 6-5) within 300m of arable land Does rare earth tailings 6-2 area adversely affect □ Yes □ No (skip to 6-5) your farmland Route of adverse □ Water pollution □ Irrigation □ Land fertility □ Mountain landslide 6-3 impacts □ Other ( ) Result of adverse □ less than 10% □ 11-20% □ 21-40% □ 41-70% □ 71% or more 6-4 effects (reduction of □ No yield yield) Note: Please combine 2-2 for the following questions. If there is no forest land, skip this part. Do you family have earth tailings area 6-5 □ Yes □ No (skip to 6--9) within 300m of forestland Does rare earth tailings 6-6 area adversely affect □ Yes □ No (skip to 6--9) your forest land Route of adverse □ Water pollution □ Irrigation □ Land fertility □ Mountain landslide 6-7 impact □ Other ( )

Serial The surrounding environment of the production site and its impact number Result of adverse □ less than 10% □ 11-20% □ 21-40% □ 41-70% □ 71% or more 6-8 effects (reduction of □ No yield yield) Note: Please combine 2-3 questions for the following questions. If there is no garden, skip this part. Do you family have 6-9 earth tailings area □ Yes □ No (skip to 6--9) within 300m of garden Does rare earth tailings 6-10 area adversely affect □ Yes □ No (skip to 6--9) your garden Route of adverse □ Water pollution □ Irrigation □ Land fertility □ Mountain landslide 6-11 impact □ Other ( ) Result of adverse □ less than 10% □ 11-20% □ 21-40% □ 41-70% □ 71% or more 6-12 effects (reduction of □ No yield yield) Note: Please combine 2-4 for the following questions. If there is no pond, skip this part. Do you family have 6-13 earth tailings area □ Yes □ No (skip to 6--9) within 300m of garden Does rare earth tailings 6-14 area adversely affect □ Yes □ No (skip to 6--9) your garden Route of adverse □ Water pollution □ Irrigation □ Land fertility □ Mountain landslide 6-15 impact □ Other ( ) Result of adverse □ less than 10% □ 11-20% □ 21-40% □ 41-70% □ 71% or more 6-16 effects (reduction of □ No yield yield) Note: Please contact 2-4 questions for the following questions. If there is no lake, skip this part. Do you family have 6-17 earth tailings area □ Yes □ No (skip to 6--9) within 300m of ponds Does rare earth tailings 6-18 area adversely affect □ Yes □ No (skip to 6--9) your ponds Route of adverse □ Water pollution □ Irrigation □ Land fertility □ Mountain landslide 6-19 impact □ Other ( ) Result of adverse □ less than 10% □ 11-20% □ 21-40% □ 41-70% □ 71% or more 6-20 effects (reduction of □ No yield yield)

7. Life and health of the residents (√ in the corresponding position)

Serial Residents' life and health (combined with 5-2 to ask the following questions) number Is there a significant increase in the situation of 7-1 serious illness (sickness) □ Yes □ No (please skip to pages 7-3) among residents in the village? □ acute cancer (□ lung cancer □ liver cancer □ kidney Types of these serious cancer □ Other) 7-2 illnesses □ chronic disease (□ metal poisoning □ Orthopedic chronic diseases □ Other)

Do rare earth tailings 7-3 endanger the health of □ Yes □ No (skip to Section 8) residents in the village? What do you think is the □ Water source □ Land □ Air □ Dust □ 7-4 approach to harm health? Other ( ) Do the residents in the village moved out of the □ Yes (□ 10% and below □ 11-30% □ 31-50% □ 51% or 7-5 village due to the pollution of more) □ No rare earth tailings

8. Ecological compensation and employment situation (√ in the corresponding position)

Serial Ecological compensation number Do rare earth mining company compensate to 8 -1 □ Yes □ No (please skip to 8-3) production and living for your home Specific compensation 8-1-1 Specify______reasons □ Compensation more than the loss □ Compensation 8 -2 Compensation for loss equal to loss □ Compensation much lower than loss Does the country 8 - 3 compensate for your □ Yes □ No (please skip to 8-5) production? Specific compensation 8-3-1 Specify______reasons □ Compensation more than the loss □ Compensation equal to loss 8-4 Compensation for loss □ Compensation much lower than loss □ Losses cannot be measured (such as physical health damage) Are you reporting or □ Yes (□ Village Committee □ Township government □ petitioning the relevant County government 8-5 departments due to the □ City and County Government □ Municipal level or problem of rare earth above) tailings? □ No

Specific feedback (please 8- 5-1 Specify______specify)

Does rare earth tailings 8-6 remediation increase your □ Yes □ No (please skip to pages 8-9) employment opportunities? Rare earth tailings repair □ Vegetation restoration □ Land contracting for agriculture, 8-7 increases the type of forestry, animal husbandry and fishery) □ Tourism □ employment Other ( ) Increased revenues accounted for all income due □ less than 10% □ 11-20% □ 21-50% □ 51-80% □ 81% 8-8 to rare earth tailings or more remediation Does the village committee 8-9 give dividends due to rare □ Yes □ No (end interview) earth mining?

Dividends account for all □ less than 10% □ 11-20% □ 21-50% □ 51-80% □ 8-10 income 81% or more

H.2 Village Committee Consultation Outline

Town Consultation Outline

First, please let village cadres tell us about each village socio-economic profile of the village include: i) total population, ii) number of households, iii) the village collective land area and forest area, iv) the topography of the area to be restored v) the per capita net income in 2018.

Next, we will discuss around the following issues:

1. From which year did your village rare earth mine start mining? Before the remediation, how many abandoned mines in your village? What is the estimated area of tailings in your village by hectares?

2. From which year did the implementation of the rare earth tailings remediation? What is the location of mining areas where remediation has been carried in your village (total area)?

3. What were the remediation costs by type of remediation? What are the fund sources for remediation (from the government, enterprises, village collectives, and individual residents)? How much capital is invested by the higher-level government, and how much capital is invested by the township government?

4. Do the costs include upfront invest costs and subsequent operation costs?

5. What are the models of restoration [forest-fruit-grass, forest(fruit)-grass-fishing (grazing), pig-biogas-forest (fruit), industrial park or other]? Which model is most effective as per your experience?

6. Are there any industrial complexes for the treatment of the ore that need to be included in the restoration?

7. What is the main body of the implementation remediation (enterprise, government, village collective, resident individual)? How will the villagers participate in the work related to the remediation of rare earth tailings (such as greening, planting crops, etc.)?

8. If ecological restoration brings benefits to the residents in the village, what are the them (employment, agricultural harvest, industrial development, improvement of the natural environment, etc.)?

9. In order to implement the remediation of rare earth tailings, what are major changes the village has undergone regarding infrastructure construction (roads, water treatment and drinking engineering, landslide remediation projects, etc.)?

10. What are the main ecological problems before the remediation of rare earth abandoned mines and what impact on the villagers? What other areas need to be remedied in depth?

11. Has the Central Environmental Supervision Team come to the village for research? If so, what kind of rare earth tailings remediation measures have been taken by the higher-level government before or after the investigation? (If you don't have one, you can ask about it in other areas you know)

12. Are there residents relocated to other villages or counties because of the pollution of rare earth tailings? In order to promote the restoration of rare earth tailings, have the village residents obtained some ecological compensation? What is the standard of compensation?

13. In order to improve the income level of the village residents, has any relevant training been held in the town?

14. How does the town government promote the transfer rights of forest and mineral? What is the number of transfer rights? What are the main difficulties? What are the main demands of the villagers during the transfer rights?

15. What are the benefits of the completion of the tailing wastewater treatment station for your village/town?

16. Ask the town government for data on fiscal revenues and expenditures for the past 10 years.

H.3 Policies and regulations of the governments at all levels on the recovery of rare earth industries and mines

Enacted Name of law (regulation) Year Terms related to this TA Impact on rare earth mining and remediation department Constitution of People's 1. Rural land belongs to the collective ownership Since ownership and contracting rights belong to different Republic of China, National of farmers; entities, mining activities and mine rehabilitation will affect the 2018 Rural Land Contract Law of People's 2. Farmers have the right to contract land; villagers' contracting rights. Improving the land transfer 2019 the People's Republic of Congress 3. Ground water, mineral resources and other mechanism of existing land is conducive to mine rehabilitation China resources belong to the country. and the participation of social capital. 1. Strengthen the management and control of mineral resources planning, and implement strict total control and access conditions for 1. The development of strategic emerging industries and the mineral resources; Outline of the 13th Five-Year demand for rare earth resources will increase, and the need 2. Support mining enterprises to merge and Plan for National Economic for mine management will also increase; Central reorganize and close small mines; and Social Development of 2016 2. The threshold for rare earth mining will be improved, large- government 3. Strengthen the application of new the People's Republic of scale mining and operation will become a normal state, and technologies, improve the mining rate of mineral China the discharge standards for wastewater and waste will be resources, recovery rate of mineral processing stricter. and comprehensive utilization rate; 4. Focus on developing strategic emerging industries. 1. The status of the rare earth industry will continue to improve, 1. Accelerate the development of rare earth clarifying the future direction of the rare earth industry and the high-end functional materials and devices; national strategy; 2. Strengthen the comprehensive utilization of 2. Eliminate vicious competition between enterprises, strictly tailings and associated resources; Ministry of control production, and achieve the purpose of controlling the 3. Establish green mines and improve Rare Earth Industry Industry and price of international rare earth raw materials through total environmental protection requirements; Development Plan (2016- 2016 Information volume control; 4. In 2020, the annual mining and selection of 2020) Technology 3. The emission intensity of major pollutants (including sulfur rare earths will be controlled within 140,000 (MIIT) dioxide, ammonia nitrogen, wastewater, etc.) in the whole tons, and severely crack down on illegal mining industry is reduced by more than 20%; activities; 4. Encourage rare earth mining enterprises to use new 5. No mining rights will be added except for the technologies, intelligently transform and reduce the ecological six major rare earth groups. damage caused by rare earth mining activities. Several Opinions of the 2011 1. The national rare earth mining and smelting separation are 1. Accelerate the internal integration of the rare State Council on Promoting handled by the six major groups; earth industry and form six major rare earth the Sustainable and Healthy State Council 2. China Southern Rare Earth Group, of which shares are 60% groups, including North China Rare Earth Development of the Rare held by Ganzhou Rare Earth Group, has a monopoly of 45, Group, China Aluminum Group, Xiamen Earth Industry ranking first across provinces in China. Ganzhou Rare Earth Tungsten Group, China Minmetals Group, MIIT Group is the sole operator of Jiangxi rare earth mines; China Southern Rare Earth Group, China 3. The Ministry of Natural Resources releases the total amount Guangdong Rare Earth Group; of mining in each province each year.

Enacted Name of law (regulation) Year Terms related to this TA Impact on rare earth mining and remediation department Guidelines for the 2014 2. The number of national mining licenses has establishment of large rare been reduced from 113 to 63. earth enterprise groups 1. List Dong River source, Gan River source Fu River source and Min River source as national ecological compensation pilots; 2. Complete the safe drinking water in rural areas of Ganzhou City as soon as possible, and 1. The rare earth mining volume is preferred to Ganzhou (the make significant progress in infrastructure proportion of medium and heavy rare earths exceeds 40%), Several Opinions of the construction; and Ganzhou has obtained more mining licenses; State Council on Supporting 3. The national production plan of rare earth and 2. The state has increased its support for the construction of the Revitalization and 2012 State Council tungsten ore products is preferred to Ganzhou; ecological civilization in Ganzhou. In 2017, the state invested Development of the Former 4. Supporting the construction of the southern a total of 2 billion yuan in the central foundation award for Central Soviet Area ion-type rare earth strategic resource reserve Ganzhou with ecological governance. Among them, funds base in Ganzhou; related to the restoration of abandoned mines accounted for 5. Increase the support for special funds for about 30%. mine geological environment management, and accelerate the comprehensive environmental management of the remaining mines in Ganzhou. 1. Improve the economic mechanism for 1. The government encourages enterprises and individuals to compensation and protection of mine Ministry of participate in the management of abandoned mines, clarifying development; Guidance on strengthening Natural the principle of “who recovers and who benefits” and 2. A new policy for the exploitation and utilization the restoration of geological Resources, stimulates the management of funds into abandoned mines; of mineral resources that attracts social funds to environment and 2016 MIIT, MOF, 2. Accelerate the management of abandoned mines left over carry out the ecological remediation of mine; comprehensive MEP, National from history and achieve obvious ecological results; 3. To build a new model of mine ecological management of mines Energy 3. Improve a series of ecological mechanisms, such as the environment management that is “government- Administration development of compensation mechanisms and monitoring led, policy-supported, socially-involved, mechanisms for dynamic changes in geological environment. development-oriented, and market-oriented”. 1. Implement the national goal of the construction of the ecological civilization pilot 1. Abandoned mine management is an important task in the zone in Jiangxi Province, strengthen the construction of ecological civilization during the 13th Five-Year remediation of mine management, and increase Outline of the 13th Five Year Jiangxi Plan period in Jiangxi Province; the control of the unowned tailings; Plan for National Economic Provincial 2. The main content of abandoned mine management is 2016 2. Strengthen the greening of towns, villages and Social Development in People's greening and revegetation; and abandoned mines; Jiangxi Province Government 3. The goal of abandoning mine management is to increase 3. The ecological restoration rate of abandoned the treatment rate and reclamation rate by 10% compared with mines in history and the land reclamation rate of 2015. mining areas should increase by 10% comparing with 2015.

Enacted Name of law (regulation) Year Terms related to this TA Impact on rare earth mining and remediation department 1. Comprehensively promote mine environmental protection and governance restoration work, and actively promote land reclamation in mining areas; 2. Before the end of 2020, complete the task of restoring and managing the concentrated contiguous AREMs above 10 hectares; 3. Supervise and guide the improvement of the 1. The construction demand of the tailwater treatment station ecological damage monitoring and early has been upgraded, and actively applied for raising funds to warning mechanism for rare earth mining in construct tailwater treatment stations to improve the impact of Jiangxi Province Ganzhou City; Jiangxi the abandoned mines in Ganzhou on the ecological implements the Central 4. Basically restore the land and forest land that Provincial environment; Environmental Protection 2017 can be used in the mining area, carry out People's 2. Topographical remediation and vegetation restoration are Inspector's feedback and landform remediation and vegetation Government the main tasks of the restoration of abandoned mines in rectification plan restoration, and improve the ecological Ganzhou, and promote the reuse of mine land; environment of the mining area; 3. Before 2020, complete the centralized management of 5. Complete the construction of the tailwater mines. collection and utilization facilities in the mining area, and reach the emission standards of rare earth industrial pollutants after treatment; 6. Raise the construction fund for the tailwater collection and utilization treatment station, and establish a joint venture company to be responsible for the construction, operation and management of the sewage treatment station. Jiangxi Provincial 1. This standard is a regulation issued in Jiangxi Province and Bureau of is only applicable to ion-type rare earth mines in Jiangxi Quality and 1. Introduced water pollutant emission control Province; Ion-type rare earth mine Technical requirements 2. The concentration limit of water pollution emission of mining water pollution discharge 2018 Supervision, 2. The concentration limit for water pollutant enterprises of ion-type rare earth mines, such as pH 6-9, the standard Jiangxi discharge has been issued. primary and secondary standards of ammonia nitrogen are 15 Provincial and 25; the total cadmium is 0.05; the total lead is 1.0 (mg/L). Department of

Environmental Protection 1. Further refine the direction, objectives, main areas and Ganzhou Ganzhou City Mineral 1. The total amount of rare earth mining and the capital investment of the development of rare earth industry in Prefecture Resources Master Plan 2016 target of output value (the figures are Ganzhou and mine management, which is conducive to People's (2016-2020) confidential); promoting the implementation of the abandoned mine Government management policy in Ganzhou;

Enacted Name of law (regulation) Year Terms related to this TA Impact on rare earth mining and remediation department 2. Planning key areas for mine ecological 2. Enterprises and individuals need to participate in the environment and their area, reclamation area, abandoned mine management, and use financial funds to investment funds and time schedule66; incite social funds to enter mine management; 3. It is clear that the mine management content 3. The mine park is an important model for the restoration of mainly includes land reclamation, vegetation abandoned mines in Zhangzhou, and has applied to become restoration, open pit slope treatment and mine a demonstration project for the disposal of abandoned mines geological disaster prevention. It is estimated in the country. that the investment will be 1.258 billion yuan; 4. Actively promote the construction of Tongtianzhai Geological Park in Shicheng County, Wuzhifeng Geopark in Shangyou County, Xihuashan Mine Park in Dayu County and the geological heritage of Nankang Dinosaur Park. It is estimated that the investment will be 550 million yuan. Report on the area 1. The total area of AREMs in Ganzhou City is verification of AREMs 93.88 square kilometers, including 54.06 square 1. Defining the area of the abandoned mine restoration and the (points) as per the certificate Ganzhou kilometers as per the certificate and 39.82 responsible body for repair; of Ganzhou Rare Earth Natural 2018 square kilometers outside the certificate; 2. Apply for special funds to the country with the pilot project Mining Co., Ltd. Resources 2. Apply to the state and be short-listed for the of ecological restoration of landscape forest and lake Investigation report on the Bureau first batch of ecological restoration of landscape grassland. geological environment of forest and lake grassland. AREMs in Ganzhou City

66 See Appendix H.2 for the key governance areas of the mine ecological environment in Ganzhou

H.4 List of Key Management Areas of Ganzhou Mine Geological Environment

Name of key Remediation Reclamation Investment S.N. Contents of remediation Timeframe remediation area area (ha) area (ha) (million yuan) Ningdu Dagu- 1. Construction of retaining facilities at the dumping site; 2. 1 Dongshanba Rare Earth Strengthening prevention and control of soil and water pollution in the 370 171 92.50 2016-2020 Mining Area mine; 3. Leveling of the site in the mining area, vegetation restoration 1. Construction of retaining facilities at the dumping site; 2. Xingguo Dinglong Rare 2 Strengthening prevention and control of soil and water pollution in the 54 25 1350 2016-2020 Earth Mining Area mine; 3. Leveling of the site in the mining area, vegetation restoration Xingjiang-Qingtang 1. Construction of retaining facilities in dumping sites; 2. Covering and 3 Nonferrous Metals, Rare greening in damaged areas; 3. Treatment of tailings; 4. Remediation 21 10 5.25 2016-2020 Earth of mining slopes, vegetation restoration Xingguo Jie Village, rare 1. Construction of retaining facilities in dumping sites; 2. Covering and 4 earth and polymetallic greening in damaged areas; 3. Land reclamation in occupied areas; 5 2 1.25 2016-2020 mining area 4. Treatment of tailing reservoirs Yudu Yinkeng multi- 1. Construction of retaining facilities in dumping sites; 2. Covering and 5 metal, rare earth mining greening in damaged areas; 3. Land reclamation in occupied areas; 47 22 11.75 2016-2020 area 4. Treatment of tailing reservoirs 1. Construction of retaining facilities at the dumping site; 2. Nankangping-Daping 6 Strengthening prevention and control of soil and water pollution in the 2 1 0.50 2016-2020 Rare Earth Mining Area mine; 3. Leveling of the site in the mining area, vegetation restoration Gan County, Tian 1. Construction of retaining facilities at the dumping site; 2. 7 Village - Yudu Luojiang Strengthening prevention and control of soil and water pollution in the 109 50 27.25 2016-2020 Rare Earth, Mining Area mine; 3. Leveling of the site in the mining area, vegetation restoration Gan County, Tian 1. Construction of retaining facilities in dumping sites; 2. Covering and Village - Luoshang 8 greening in damaged areas; 3. Land reclamation in occupied areas; 55 25 13.75 2016-2020 Youying former rare 4. Treatment of tailing reservoirs earth mining area Rare earth and 1. Construction of retaining facilities in dumping sites; 2. Covering and 9 polymetallic mining area greening in damaged areas; 3. Land reclamation in occupied areas; 1 1 0.25 2016-2020 in Shangyou County 4. Treatment of tailing reservoirs Gan County Datian- 1. Retaining facilities for dumping sites; 2. Backfilling in subsidence Yudu Tieshan Rare areas; 3. Strengthening prevention and control of mine water and soil 10 Earth, Nonferrous 292 135 73.00 2016-2020 pollution; 4. Remediation of mining slopes; 5. Land reclamation in Metals, Energy Mining occupied areas Area Yudu Yellow 1. Construction of retaining facilities at the dumping site; 2. 11 Phosphorus Rare Earth Strengthening prevention and control of soil and water pollution in the 83 38 20.75 2016-2020 Mining Area mine; 3. Leveling of the site in the mining area, vegetation restoration

Name of key Remediation Reclamation Investment S.N. Contents of remediation Timeframe remediation area area (ha) area (ha) (million yuan) Zudong-Changlong 1. Construction of retaining facilities in dumping sites; 2. Covering and 12 multi-metal, rare earth greening in damaged areas; 3. Land reclamation in occupied areas; 650 300 162.50 2016-2020 mining area 4. Treatment of tailing reservoirs 1. Construction of retaining facilities at the dumping site; 2. Longhui - Caijiao rare 13 Strengthening prevention and control of soil and water pollution in the 16 8 4.00 2016-2020 earth mining area mine; 3. Leveling of the site in the mining area, vegetation restoration Xiefang-Yonglong Rare Earth and Metallurgical 1. Construction of retaining facilities at dumping sites; 2. Landfilling 14 97 45 24.25 2016-2020 Raw Material Mining and greening in destruction areas; 3. Remediation of mining slopes Area 1. Construction of retaining facilities at the dumping site; 2. Gupi-Hanfang Rare 15 Strengthening prevention and control of soil and water pollution in the 504 233 126.00 2016-2020 Earth Mining Area mine; 3. Leveling of the site in the mining area, vegetation restoration 1. Retaining facilities for dumping sites; 2. Backfilling in subsidence Xinfeng Tieshikou Rare areas; 3. Strengthening prevention and control of mine water and soil 16 Earth, Energy, Building 34 16 8.50 2016-2020 pollution; 4. Remediation of mining slopes; 5. Land reclamation in Materials Mining Area occupied areas 1. Construction of retaining facilities at the dumping site; 2. Xinlong-Chetou Rare 17 Strengthening prevention and control of soil and water pollution in the 505 233 126.25 2016-2020 Earth Mining Area mine; 3. Leveling of the site in the mining area, vegetation restoration Anxi-Tianjiu rare earth 1. Construction of retaining facilities in dumping sites; 2. Covering and 18 and polymetallic mining greening in damaged areas; 3. Land reclamation in occupied areas; 1183 546 295.75 2016-2020 area 4. Treatment of tailing reservoirs 1. Construction of retaining facilities at the dumping site; 2. Pitou-Longyuanba Rare 19 Strengthening prevention and control of soil and water pollution in the 54 25 13.50 2016-2020 Earth Mining Area mine; 3. Leveling of the site in the mining area, vegetation restoration 1. The land in the stripping area is leveled; 2. The intercepting facilities Dongjiang-Yumeishan are constructed in the dumping site; 3. The greening of the damaged 20 rare earth, polymetallic, area; 4. The prevention and control of water and soil pollution in the 358 166 89.50 2016-2020 energy mining area mine; 5. Backfilling in the subsidence area; 6. Treatment of the tailings pond 1. Construction of retaining facilities at the dumping site; 2. Xunwu County-Nanqiao 21 Strengthening prevention and control of soil and water pollution in the 360 166 90.00 2016-2020 Rare Earth Mining Area mine; 3. Leveling of the site in the mining area, vegetation restoration Quannan Dajishan rare 1. Construction of retaining facilities in dumping sites; 2. Covering and 22 earth and non-ferrous greening in damaged areas; 3. Land reclamation in occupied areas; 232 107 57.75 2016-2020 metal mining area 4. Treatment of tailing reservoirs Total 5032 2325 1257.75

H.5 Comprehensive Treatment Project Status of Dingnan County Futian Waste Rare Earth Mine 67

Area Remediation Total investment S.N. Project Name Executing Agency Implementing Agency Location Assignment time (km2) status (million yuan)

The construction Dingnan County started on April 29, Futian Waste Rare Futian 2015, and the Earth Mine Dingnan County Dingnan County Mine 1 Industrial 0.42 2013 completion 65.82 (of which 53 are Comprehensive Government Management Bureau Park acceptance was funds from the Ministry of Treatment Project completed on April Finance, the Ministry of Phase I 25, 2017. Natural Resources and The construction the Ministry of Ecology Dingnan County started on July 1, and Environment, of Futian Waste Rare Futian 2016, and the which 12.82 is the Earth Mine Dingnan County Dingnan County Mine 2 Industrial 0.3 2014 completion county's financial funds) Comprehensive Government Management Bureau Park acceptance was Treatment Project completed on Sept Phase II 17, 2017. The construction Dingnan County started on Sept 18, 57.6749 of which Futian Waste Rare Futian 2017, and the (33.6894 is the capital of Earth Mine Dingnan County Dingnan County Mine 3 Industrial 0.55 2018 completion the city landscape Lintian Comprehensive Government Management Bureau Park acceptance was Lake Office, 20.9055 is Treatment Project completed on March the county financial fund) Phase III 18, 2019.

Total 1.1 12349.49

67 Data is provided by Dingnan County Mine Management Bureau.

H.6 Water Sampling Tables

500mL 灭 5L 聚乙烯 200mL 棕村庄编号村民井深/m 菌棕色玻瓶色玻璃瓶璃瓶

1 李义秀 5 2 李义秀山泉水 3 钟守业 5 天堂村 4 村书记 4.5 5 罗富平 5 6 平罗富平 5 7 刘贱妹 8 8 平刘贱妹 8 南丰村 9 未名 6 10 未名山泉水 11 陈日星 8 12 陈应平 8 长隆村 13 李远成 5 14 平李远成 5 15 村委会山泉水 16 黄金生 5 17 黄芳胜 8 枧下村 18 朱成先 6 19 黄金星 4 20 平黄金星 4 21 郑阳村 5 迳脑村 22 孙兰 6 23 平孙兰 6 污水处理厂 24 进水口 1 污水处理厂 25 进水口 2 挺进环保污水处理厂 26 出水口 1 污水处理厂 27 出水口 2

H.7 Soil Sampling Tables

Mining Area Sampling number CPⅠ（0-20cm） CPⅠ（20-40）

Changkengwei Aobeitang Mining Siltation Area CPⅡ（0-20cm） 2006 heap leaching (grass + masson pine + bamboo willow) CPⅡ（20-40） CPⅢ（0-20cm） CPⅢ（20-40） CDⅠ（0-20cm） CDⅠ（20-40）

Changkengwei Aobeitang Mining Stacking Area CDⅡ（0-20cm） 2006 heap leaching (grass + masson pine + bamboo willow) CDⅡ（20-40） CDⅢ（0-20cm） CDⅢ（20-40） GDⅠ（0-20cm） GDⅠ（20-40）

Changkengwei Yangmeikeng Stacking Area GDⅡ（0-20cm） 2006 heap leaching (navel orange) GDⅡ（20-40） GDⅢ（0-20cm） GDⅢ（20-40） JDⅠ（0-20cm） JDⅠ（20-40）

Jiazibei Mine JDⅡ（0-20cm） 2014 heap leaching (grass + masson pine) JDⅡ（20-40） JDⅢ（0-20cm） JDⅢ（20-40）

H.8 Qualification rate of drinking shallow well water and spring water

Sampling Qualified Qualification Types Indicators numbers numbers rates Microbial Total number of 23 0 0 indicator colonies Organic Ammonia nitrogen 44 44 100 pollution Oxygen 44 44 100 indicator consumption Arsenic 44 6 13.6 Cadmium 44 44 100 Toxicological Chromium 44 44 100 indicators Lead 44 44 100 Nitrate nitrogen 44 43 97.7 pH 44 27 61.3 Ferrous 44 42 95.5 Manganese 44 44 100 General Copper 44 44 100 chemicals Zinc 44 44 100 Total hardness 44 44 100 Sulfate 44 44 100 All indicators All test items 44 0 0

H.9 The pollution status of the tailing water in the in-situ leaching of Lingbei Town, Dingnan County

2- NH3-N SO4 Mn Cu Zn Pb Cd Cr As CODMn pH /mg/L /mg/L /mg/L /mg/L /mg/L /mg/L /mg/L /mg/L /mg/L /mg/L Sewage treatment 4.43 41.01 319.8 6.32 0.06 0.32 0 0 0 1.44 1.32 plant 1 Sewage treatment 4.91 29.89 271.89 6.59 0.018 0.25 0 0 0 1.08 1.28 plant 2 Standard Limits Class I (DB36 1016- 6~9 25 — 2 1.0 0.05 0.1 70 2018) Class I (GB 8978- 0 2 0 1996) .5 .0 .5 Note: "—" means no request in standard.

H.10 Social Survey Results

Spring water

River/stream

Groundwater <10m

Groundwater <11-30m

Groundwater 31- 50m

Groundwater>50 m

Figure H-1 Domestic Water Sources

Combined effects of water, air and dust

Combined effects of water and other ways

Combined effects of water, soil and dust

Combined effects of water, air and soil

Combined effects of water and air

Combined effects of water and soil

Combined effects of water, air, soil and dust

Only effects of water

Figure H-2 Perceptions on Channels of Impacts on Physical Health

County and Provincial Government

Township and County Government

Village, Township and County Government

Village and Township Government

Prefecture Government

County Government

Township Government

Village Committee

Figure H-3 Where to for Villagers’ Demand for Compensation

H.11 Water Sample Results

(1) pH Value

8.00 7.00 6.00 5.00

pH 4.00 3.00 2.00 1.00 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

551. The standard limit for pH value is 6.5

(2) Ammonia nitrogen and nitrate nitrogen 0.60

0.50 1 - L ∙ 0.40 /mg N -

+ 0.30 4

0.20 氨氮 NH 0.10

0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 25.00 样品编号

1 Water Sample - 20.00 /mg∙L

15.00

10.00

5.00 Nitrate nitrogen 硝氮 Nitrate 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

552. The qualified rate of drinking water ammonia nitrogen at sampling points is 100% (ammonia nitrogen: < 0.5 mg/L). The qualified rate of drinking water nitrate nitrogen at sampling points is 97.7% (Nitrate nitrogen: < 20 mg/L)

(3) Sulfate

300.00 1 - 250.00 /mg∙L

- 200.00 2 4 150.00

100.00

硫酸根离子 SO 50.00

0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

The qualified rate of drinking water sulfate at sampling points is 100% (Sulfate: < 250 mg/L)

(4) Heavy metals

553. According to the survey results, the qualified rate of drinking water at sampling points is between 95%-100%, regarding iron (Fe: < 0.3 mg/L), manganese (Mn: < 0.1 mg/L), copper (Cu: < 1.0 mg/L), zinc (Zn: < 1.0 mg/L), lead (Pb: < 0.01 mg/L), cadmium (Cd: < 0.01 mg/L), chromium (Cd: < 0.05 mg/L). Only the qualified rate of drinking water arsenic at sampling points is around13.6% (As: < 0.01 mg/L), which revealed the drinking water has polluted by arsenic.

0.90 0.80 0.70 1 - 0.60 0.50 0.40 Fe /mg∙L

铁 0.30 0.20 0.10 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

0.12

0.10 1 - 0.08

0.06 Mn /mg∙L Mn

锰 0.04

0.02

0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

0.01

0.01 1 - 0.01

0.01 Pb /mg∙L

铅 0.00

0.00

0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

0.01

0.01 1 - 0.00

0.00 Cd /mg∙L Cd

镉 0.00

0.00

0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

0.06

0.05

0.04 1 - 0.03

Cr /mg∙L Cr 0.02 铬 0.01

0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

1.80 1.60 1.40 1.20 1 - 1.00 0.80 0.60 As /mg∙L

砷 0.40 0.20 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

(5) Total Hardness and oxygen consumption

554. The qualified rate of drinking water total hardness (Total hardness: < 450 mg/L) and oxygen consumption are at sampling points is 100% (CODMn: < 3 mg/L)

500.00 1 - 450.00 ∙L 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 total Hardness /mg Hardness 总硬度 total 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

3.50

3.00 1 - 2.50

2.00

1.50

1.00 耗氧量 COD /mg∙L 0.50

0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

样品编号Water Sample

(6) Microorganism

The qualified rate of drinking water microorganism at the sampling point is 0%. (Total number of colonies: <100 CFU/ml). The drinking of shallow well water and spring drinking water in the villages of Yangmei Village, Tiantang Village, Nanfeng Village, Changlong Village, Jianxia Village and Jingnao Village of Lingbei Town, Dingnan County are not in compliance with limits in GB5749-2006 Standards for Drinking Water Quality. 2,500.00

2,000.00 1 - 1,500.00 /mg∙L 1,000.00 colonies otal number of bacterial of bacterial number otal 500.00

菌落数 T 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

样品编号Water Sample

H.12 Soil Sampling Results

(1) pH value

Figure H-4 pH values of different soil types in different types of tailings

(2) Nitrogen

草+马尾松（堆积区）grass + Ab masson pine (stacking area) Aa

脐橙（堆积区）the navel orange Ba (stacking area) Ba

草+马尾松+竹柳（堆积区）grass + 0-20cm Ba masson pine + bamboo willow Ba 20-40cm (stacking area)

草+马尾松+竹柳(淤积区）grass + Ba masson pine + bamboo willow Ba (siltation area)

0.00 50.00 100.00 150.00 200.00 250.00 氨氮Ammonia nitrogen/mg∙kg-1

Figure H-5 Ammonia nitrogen of different soil types in different types of tailings

Figure H-6 Nitrate nitrogen of different soil types in different types of tailings

(3) Sulfate there is no significant difference in sulfate content between different vegetation restoration types and different soil layers

草+马尾松（堆积区）grass + Aa masson pine (stacking area) Aa

脐橙（堆积区）the navel orange Aa (stacking area) Aa 草+马尾松+竹柳（堆积区）grass + Aa 0-20cm masson pine + bamboo willow Aa (stacking area) 20-40cm 草+马尾松+竹柳(淤积区）grass + Aa masson pine + bamboo willow Aa (siltation area) 0.00 0.30 0.60 0.90 1.20 1.50 2- -1 硫酸根离子SO4 /mg∙kg

Figure H-7 Sulfate of different soil types in different types of tailings

(4) Ferro the ferrous content of grass + masson pine (stacking zone) in 0-20 cm soil layer (1270.56 mg∙kg-1) is significantly higher than other vegetation restoration types. There was no significant difference in ferrous content between the 20-40 cm soil layers of different vegetation restoration types, and there was no significant difference in ferrous content between different soil layers.

草+马尾松（堆积区）grass + Aa masson pine (stacking area) Aa

脐橙（堆积区）the navel orange Ca (stacking area) Aa

草+马尾松+竹柳（堆积区）grass + 0-20cm BCa masson pine + bamboo willow Aa 20-40cm (stacking area)

草+马尾松+竹柳(淤积区）grass + Ba masson pine + bamboo willow Aa (siltation area)

0.00 300.00 600.00 900.001,200.001,500.00 铁Fe/mg∙kg-1

Figure H-8 Ferrous values of different soil types in different types of tailings

(5) Manganese

the soil manganese content of navel orange vegetation restoration types is significantly lower than that of other types, and there is no significant difference in soil manganese content between different soil layers.

草+马尾松（堆积区）grass + masson Aa pine (stacking area) Aa

脐橙（堆积区）the navel orange Ba (stacking area) Ba

草+马尾松+竹柳（堆积区）grass + 0-20cm Aa masson pine + bamboo willow Aa (stacking area) 20-40cm 草+马尾松+竹柳(淤积区）grass + Aa masson pine + bamboo willow ABa (siltation area) 0.00 100.00200.00300.00400.00500.00600.00 锰Mn/mg∙kg-1

Figure H-9 Manganese values of different soil types in different types of tailings

(6) Copper

草+马尾松（堆积区）grass + masson Aa pine (stacking area) Aa

脐橙（堆积区）the navel orange Ba (stacking area) Ba

草+马尾松+竹柳（堆积区）grass + Ba 0-20cm masson pine + bamboo willow Ba (stacking area) 20-40cm 草+马尾松+竹柳(淤积区）grass + ABa masson pine + bamboo willow Ba (siltation area) 0.00 20.00 40.00 60.00 80.00 100.00 铜Cu/mg∙kg-1

Figure H-10 Copper values of different soil types in different types of tailings

(7) Zinc

In general, the zinc concentration complies with national standard (<500 mg kg-1). The soil zinc content of different vegetation restoration types is no significance, and there is no significant difference in soil zinc content between different soil layers.

草+马尾松（堆积区）grass + masson Aa pine (stacking area) Aa

脐橙（堆积区）the navel orange Aa (stacking area) Ba

草+马尾松+竹柳（堆积区）grass + Aa 0-20cm masson pine + bamboo willow ABa (stacking area) 20-40cm 草+马尾松+竹柳(淤积区）grass + Aa masson pine + bamboo willow ABa (siltation area) 0.00 20.00 40.00 60.00 80.00 100.00 锌Zn/mg∙kg-1

Figure H-11 Zinc values of different soil types in different types of tailings

(8) Lead

In general, the lead concentration complies with national standard (<500 mg kg-1). The soil lead content of different vegetation restoration types is no significant between types, and there is no significant difference in soil lead content between different soil layers.

草+马尾松（堆积区）grass + masson Aa pine (stacking area) Aa

脐橙（堆积区）the navel orange Aa (stacking area) Aa 草马尾松竹柳（堆积区） + + grass + Aa 0-20cm masson pine + bamboo willow (stacking Aa 20-40cm area) 草+马尾松+竹柳(淤积区）grass + Aa masson pine + bamboo willow (siltation Aa area) 0.00 10.00 20.00 30.00 40.00 50.00 铅Pb/mg∙kg-1

Figure H-12 Lead values of different soil types in different types of tailings

(9) Cadmium

草+马尾松（堆积区）grass + masson Aa pine (stacking area) Aa

脐橙（堆积区）the navel orange Aa (stacking area) Ba

草+马尾松+竹柳（堆积区）grass + Aa 0-20cm masson pine + bamboo willow (stacking Ba area) 20-40cm 草+马尾松+竹柳(淤积区）grass + Aa masson pine + bamboo willow (siltation ABa area) 0.00 0.20 0.40 0.60 0.80 1.00 镉Cd/mg∙kg-1

Figure H-13 Cadmium values of different soil types in different types of tailings

(10) Chromium

In general, the soil chromium content complies with national standard (<300 mg kg-1), and there is no significant difference in soil chromium content between different soil layers.

草+马尾松（堆积区）grass + masson pine Aa (stacking area) Aa

脐橙（堆积区）the navel orange (stacking Aa area) Ba

草+马尾松+竹柳（堆积区）grass + masson Aa 0-20cm pine + bamboo willow (stacking area) ABa 20-40cm

草+马尾松+竹柳(淤积区）grass + masson Aa pine + bamboo willow (siltation area) Aa

0.00 10.00 20.00 30.00 40.00 50.00 铬Cr/mg∙kg-1

Figure H-14 Chromium values of different soil types in different types of tailings

(11) Arsenic

草+马尾松（堆积区）grass + masson Aa pine (stacking area) Aa

脐橙（堆积区）the navel orange Aa (stacking area) Aa

草+马尾松+竹柳（堆积区）grass + Aa 0-20cm masson pine + bamboo willow Aa (stacking area) 20-40cm 草+马尾松+竹柳(淤积区）grass + Aa masson pine + bamboo willow Aa (siltation area) 0.00 20.00 40.00 60.00 80.00 100.00120.00 砷As/mg∙kg-1

Figure H-15 Arsenic values of different soil types in different types of tailings

H.13 Main process of seedling planting

Borrowed soil: cover Ground Leveling: 10cm of cohesive soil develop water Plant pit:dimension suitable for plant intercepting and 0.5m*0.5m*0.5m growth. borrowed soil drainage network from 5km away

Top dressing: apply Planting: place the Fertilization: dedicated ferterlizers at the side seedling and tree fertilizer and according to the needs nutribution pot in the curing soil mixed and of plant growth pit, earth up and level placed inside the pit

Nurturing: assign dedicated personnel for management and nurturing