The Case for Protecting Headwaters in the Enkangala Grasslands Authors WWF- SA: Christine Colvin, Angus Burns
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ZA Coal and Water Futures in South Africa The case for protecting headwaters in the Enkangala grasslands Authors WWF- SA: Christine Colvin, Angus Burns CSIR: Dr Klaudia Schachtschneider, Ashton Maherry, Dr Jessica Charmier De Wit Sustainable Options: Dr Martin de Wit Reviewers WWF- SA: Sindiswa Nobula CSIR: Dr Jeanne Nel, Dr David Le Maitre, Dr P Ashton Dedication The report is dedicated to the memory of Prof Kadar Asmal – South Africa’s first democratic minister of Water Affairs, a visionary thinker in sustainable water development and a supporter of WWF-SA. Acknowledgements We would like to thank the following participants who either contributed to the report via individual discussions with the authors or attended workshops held by WWF-SA to debate the current state of coal mining and water impacts in South Africa. Pieter Viljoen, Department of Water Affairs (DWA); Koos Pretorius, Foundation for Sustainable Environment; Francois van Wyk, RandWater; Gert Grobler, DWA; Bantu Hanise, Council for GeoScience; Danelle van Tonder, Council for GeoScience; T. Nemataleni, DWA; Helen Gordon, WWF-SA; Brent Corcoran, WWF-SA; Harry van der Westhuizen, Umcebo Mining; Henk Lodewijks, Anglo Thermal Coal; Charl Nolte, Exxaro; Koos Smit, Exxaro; Khosa Rhulani, Varsiwave; Bruce Mansoor, Varsiwave; MatomeMakwela, Chamber of Mines; Rudzani Mudau, Department of Mineral Resources; Stephinah Mudau, Chamber of Mines; Dan Sonnenberg, South African National Biodiversity Institute (SANBI); Mandy Driver, SANBI; Anthea Stephens, SANBI; Melissa Fourie, Centre for Environmental Rights; Terrance McCarthy, University of the Witwatersrand. Design and Layout by Jenny Frost Design Published in November 2011 by WWF-World Wide Fund For Nature (Formerly World Wildlife Fund), Cape Town, South Africa. Any reproduction in full or in part must mention the title and credit the above-mentioned publisher as the copyright owner. © Text 2011 WWF-SA All rights reserved WWF is one of the world’s largest and most experienced independent conservation organizations, with over five million supporters and a global Network active in more than 100 countries. WWF’s mission is to stop the degradation of the planet’s natural environment and to build a future in which humans live in harmony with nature, by: conserving the world’s biological diversity, ensuring that the use of renewable natural resources is sustainable, and promoting the reduction of pollution and wasteful consumption. www.wwf.org.za CONTENts EXecUTIVE SUMMARY i 3. COal MINING IN SOUTH AFRIca 22 3.1 South African coal reserves 22 LIst OF FIGURes iv 3.2 Key corporate role players in the coal mining industry 23 LIst OF TABLES vi 3.3 Junior (new and BBBEE) mining companies 24 LIst OF ABBREVIATIONS vii 3.4 Coal exports and domestic sales 24 3.5 The economic value of the current level of 1. INTRODUctION 1 coal mining 25 1.1 Purpose of this report 1 3.6 Legislation affecting coal mining 26 1.2 Water resources and water security in RSA 1 3.7 Application processes for prospecting and mining licences 28 1.3 Energy security and strategies for green growth 3 3.8 Links to ministries other than DMR 28 3.9 Process to decommission 29 2. tHE ENKANGala ARea – A case stUDY FOR 3.10 Current shortcomings in the laws, FUTURE DEVELOPMENt 5 application processes and co-operative governance around mining 29 2.1 The Grasslands biome and conservation area 5 3.10.1 Weaknesses in the legislative process and co-operative governance 30 2.1.1 Enkangala: A Critical water source area 6 2.2 Down-stream dependency on 3.10.2 Weakness in the application process 30 Enkangala headwaters 8 3.10.3 Weakness in enforcing regulations 31 2.2.1 Water Infrastructure 10 3.10.4 Weaknesses in EMP application processes 32 2.2.2 Groundwater resources in the area 11 3.10.5 Weaknesses in the decommissioning process 33 2.2.3 Wetlands in Enkangala 11 3.11 Prosecutions for poor practice 34 2.2.4 Climate change predictions 13 3.12 History of mine abandonment in RSA 36 2.3 Current economic activity dependent on 3.13 Consequences of abandoned coal mines 37 the Enkangala water supply 14 3.14 Guidance for best practice in the coal 2.3.1 Enkangala 14 mining sector 37 2.3.2 Upper Vaal 15 4. COal MINING IMPacts ON wateR ResOURces 40 2.3.3 Thukela 15 4.1 The pollution of water resources by 2.3.4 Usutu/Mhlatuze 16 coal mining 41 2.4 Economic activity in the Grasslands 4.1.1 Prospecting 41 project area 16 4.1.2 Active mining 41 2.4.1 Agriculture 16 4.1.3 Post-mining 43 2.4.2 Coal 17 2.5 Coal reserves in the Enkangala area 18 4.2 Differences between coal and gold Acid Mine Drainage 44 2.5.1 Broad geology of Enkangala area 18 4.3 Water resource contaminants associated 2.5.2 Coal production and reserves in Enkangala with coal mining 44 and broader regions 20 4.4 Consequences of water pollution by coal mining for human health, livestock and crop productivity 45 5. A case stUDY OF HIstORIcal COal MINING IMPacts: 7.7 The potential impact of new mining on THe OlIfaNts catcHMENT 47 the water yield and water quality in the 5.1 Costs of cleaning up AMD from Enkangala area 63 coal mining 48 7.7.1 Predicting impacts of potentially acid-forming 5.2 Loskop Dam impacts from AMD 49 coal mining on water quality 63 7.7.3 Anticipated water quality impacts based on 6. CURRENT state OF wateR ResOURces IN ENKANGala 50 Olifants catchment experience 65 6.1 Present ecological status of rivers 50 7.7.4 Estimated water quality impacts with 6.2 Water quality in major rivers downstream increased mining 67 of Enkangala 51 7.8 The potential impacts of coal mining on 6.2.1 Upper Vaal 51 the economy, vulnerable communities and ecological systems 68 6.2.2 Upper Thukela 51 7.8.1 Communities using natural water resources 6.2.3 Pongola/Usutu 52 (unpiped) and untreated 70 6.2.4 Assessment of current water quality of 7.9 Defining no-go areas and applying the Klip, Sandspruit and Bivane Rivers 52 best practice 71 6.3 Potential sources of cumulative impact 7.9.1 Spatial correlations of coal reserves with on water resources in the area 54 important water, environmental and land use areas 71 7. AlteRNatIVE FUTURes FOR DEVelOPMENT IN ENKANGala 56 7.9.2 Defining no-go areas for Mining 71 7.1 A Future with extensive coal mining 56 7.2 Food and job security in Enkangala 57 8. RecOMMENDatIONS FOR BetteR COal MINING 7.2.1 High productivity soils in the area for IN SOUTH AFRIca 74 crop production 58 8.1 Mitigate – strategic planning for a 7.2.2 Subsistence agriculture in the area and sustainable future for all. 74 land-claims 58 8.2 Manage – improved management of the 7.3 Economic scenarios of potential future licensing and mining process 76 developments in Enkangala 60 8.3 Monitor and enforce – growing jobs in 7.4 Scenarios depicting economic value of the environmental sector. 77 new coal mining 60 7.4.1 Net Present Values for coal mining 61 GLOssaRY 79 7.5 Scenarios depicting economic value of agriculture 61 RefeRENces 82 7.5.1 Net Present Values for maize 62 7.6 Scenario discussion and conclusion 62 Coal and Water Futures in South Africa | page 5 Executive Summary South African government has committed itself to reducing greenhouse gas EXecUTIVE emissions and moving to a new path of Green Growth. This will improve our energy security with a diversified mix SUMMARY of renewable energy production and a reduction in our reliance on coal-fired power. The next 15 years will see a process of transition as new independent energy producers enter the market. At the same time we will be faced with the consequences of climate change and our already stressed water resources will come under increasing pressure as temperatures rise and rainfall becomes more volatile. Many of our catchments are already heavily polluted by mining (eg Upper Vaal and Olifants catchments), and six out of 19 of our WMAs will not have enough water to meet demands by 2030. We ask government to plan strategically and in an integrated manner to ensure our future water security. Twelve per cent of South Africa’s land area generates 50% of our river flow. We need to plan the development of our landscapes to protect our most important water, soil and biodiversity resources. Headwater catchments, such as the Enkangala grasslands – source of the Vaal, Thukela and Pongola – should not be exposed to new coal mining. South Africa has extensive coal reserves, and we can meet our future fossil fuel needs by planning for mining in less vulnerable areas. Coordinated strategic planning is needed now to prevent a repeat of the acid mine drainage crisis facing the Witwatersrand. Sustainable economic development and our water and food security require intervention at the highest levels to define where we will mine coal and where we will prioritise water and food (provisioning) in our landscape. WWF calls on government to 1 – Mitigate – 2 – Manage – 3 and Monitor. This report addresses this question: Should coal be mined in critical catchments? We examine the coal industry in South Africa and the documented impacts on water resources. The Olifants catchment is an area that has experienced over 100 years of coal mining and now has some of the poorest water quality in the country. Other economic development in the catchment, such as agriculture and tourism, is threatened because of the impact of coal.