SOCIO-ECONOMIC IMPACT ASSESSMENT - FINAL VYGENHOEK PLATINUM PROJECT, MPUMALANAGA

February 2021

Prepared for: Environmental Management Assistance (Pty) Ltd P.O. Box 386 Sundra 2000 South Africa

Envital Social and Environmental Consulting P.O. Box 2159, Westville, 3630 Tel: +27 72 259 8319 [email protected] www.envital.co.za

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This document should be cited as follows: Sanderson, D. (2020) Socio-economic Impact Assessment: Vygenhoek Mine, Mpumalanga. Envital Consulting, February 2021

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EXECUTIVE SUMMARY

Envital Consulting was appointed to undertake a Socio-Economic Impact Assessment (SIA) in support of the Environmental Impact Assessment (EIA) process for the development and operation of the Vygenhoek Platinum Mine in Mpumalanga (Proposed Project) by Nomamix (Pty) Ltd. The scope of the SIA was to determine the potential positive and negative impacts of the Proposed Project and alternatives on the local and regional socio-economic landscape. The study assessed the potential direct, indirect, and cumulative impacts (in relation to other activities), and how this may affect the current and future socio-economic environment. The approach to the study included the collection of primary data in the form of focus groups and observational data from within the study area, and a review of secondary information sources, including other specialist studies, previous reports, and socio-economic statistics and research. The study was undertaken over a two-month period and included all comments for scoping phase public participation. The aim of the Proposed Project is to develop a greenfield platinum group metals ore extraction operation on the outskirts of the Eastern Limb of the Bushveld Complex. The site is located in a remote farming area of north-western Mpumalanga, in the Thaba Chweu Local Municipality, on the border of Limpopo. The local landscape is dominated by agriculture and mining activities, with tourism and conservation activities in the broader area. Mining is a key economic activity for the local municipality, and provides substantial employment and revenue streams for government, businesses, and local communities. The anticipated socio-economic impacts are likely to vary from local to the regional level, as the macro- economic benefits are likely to be realised on a regional level, while most of the negative impacts are anticipated to be localised. The area of direct impact of the Proposed Project is anticipated to be primarily within the Farm Vygenhoek, with immediately surrounding farms receiving indirect impacts. The communities within the study area (local) comprise primarily low-income households, with marginal (subsistence) livelihoods. Low levels of skills and education, as well as limited access to urban centres, means that high unemployment is a key characteristic. These communities are dependent on natural resources for their livelihoods, including open veld for grazing and collection of firewood and medicinal plants, as well as local surface water resources. While the Vygenhoek Farm is currently under state ownership and the subject of land claims, the resident community established in the 1960s, possibly as farm tenants, and so is considered established, with informal rights to land ownership under the Interim Protection of Informal Land Rights Act. The key negative impacts, that are likely to affect the Vygenhoek Community and to a certain extend other neighbouring communities, include:

 Reduced access to livelihood resources – grazing land, firewood, medicinal herbs;

 Increased pressure on resources – influx of jobseekers and informal settlements;

 Increased community conflict – over employment and resources;

 Increased social pathologies – due to an influx of jobseekers and labour;

 Increased nuisance and disruption – from dust, noise, traffic and increased people and activities; and

 Indirect damage to/loss of assets – structural damage to houses, theft, conflict, and damage to crops. The trade-off for local communities is therefore the potential for positive economic impacts, which will assist with offsetting any losses and disruption, which also apply on a regional level, namely:

 Increased employment opportunities – directly and indirectly through the mine, contractors, and suppliers; and

 Increased local economic development opportunities – through local procurement and direct investment in community projects (rural agricultural hub project).

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The Proposed Project is unlikely to improve the overall economic characteristics of the local communities, however, will have the potential to provide individuals and households with an increase in employment, income and improved socio-economic conditions. The No-Go Alternative is likely to maintain the status quo, which is currently low-income with no formal basic services and marginal subsistence livelihoods. No opportunities or investment would occur in the area, and these communities would not benefit from income and economic development in the local area. The key mitigation measures required include the following:

 Implementation of the Social Management Plan (provided in this study);

 Development of Community Plans (communications, complaints, health and safety);

 Maximising benefits, including the prioritisation of local employment and appointment of local service providers, and community development initiatives;

 Ensuring transparent, equitable and comprehensive engagement with local communities and other stakeholders throughout the Proposed Project life cycle. It is important to note that social impacts can be felt on an actual or perceptual level, and therefore it is not always possible, or at least straightforward, to measure the impacts in a quantitative manner. It should therefore not be assumed that indirect opportunities for business and employment are sufficient to acquire social license to operate in the host community. The structure and history of the local communities is such that unrest is likely to be an ongoing issue for the operations if stakeholders and communities are not properly engaged. The study determined that there are likely to be negative social and physical environmental impacts on the Vygenhoek Community (host community); however these can largely be mitigated or tolerated, and as a result are likely to be considered acceptable by the local communities as a trade-off for economic development and opportunities. It is the opinion of the specialist that the Proposed Project should be authorised within the context of the socio-economic assessment, as the Proposed Project is anticipated to be of economic benefit for the local area, as well as contributing to regional mining and economic development opportunities. Although the Proposed Project is not considered a major mining development (medium scale and extraction only), employment opportunities and the multiplier effect could improve the opportunities for currently unemployed individuals and low-income households within the local area. However, the manner in which the operations are carried out, must be done in line with best practice, including the Social and Labour Plan and the Social Management Plan. It is possible that not every eventuality of the potential socio-economic impacts have been detailed by this study, due to the complexity of socio- economic environment. It is, therefore, crucial that ongoing and transparent engagement and management of issues as they arise through the recommendations of the Social Management Plan is carried out. This is likely to ensure that the host community and other stakeholders remain in support of the Proposed Project, and that negative impacts on the host community are minimised and benefits are maximised.

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CONTENTS

SPECIALIST REPORT REQUIREMENTS ...... 1 1 INTRODUCTION ...... 2 1.1 Project Location ...... 2 1.2 Project Overview ...... 3 1.3 Project Alternatives ...... 8 1.4 Terms of Reference ...... 9 1.5 Specialist Details ...... 9 2 METHODOLOGY ...... 14 2.1 Approach ...... 14 2.2 Data Collection ...... 14 2.3 Impact Assessment ...... 15 2.4 Study Area ...... 19 2.5 Gaps, Limitations and Assumptions ...... 23 3 RECEIVING ENVIRONMENT ...... 25 3.1 Regional overview...... 25 3.2 Local overview ...... 31 3.3 Site ...... 33 3.4 Socio-Economic Policy and Planning Context ...... 42 4 FINDINGS ...... 47 4.1 Socio-economic Need and Desirability ...... 47 4.2 Factors Affecting Local Participation in the Project...... 48 4.3 Social Risks ...... 49 4.4 Perspectives on the Proposed Project ...... 50 4.5 Review of Specialist Studies ...... 52 5 IMPACT ASSESSMENT ...... 55 5.1 Alternative 1 (Preferred Alternative) ...... 55 5.2 No-Development Alternative ...... 66 5.3 Summary of Impact Assessment ...... 67 5.4 Alternatives Assessment ...... 68 6 Sensitivity Mapping ...... 70 7 KEY REQUIREMENTS FOR AUTHORISATION ...... 76 7.1 Social Management plan...... 76 8 CONCLUSION ...... 87 8.1 Impact Statement ...... 88 BIBLIOGRAPHY ...... 89

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Details of Specialist ...... 91 Specialist study Review ...... 95 Alternatives Impact Assessment ...... 110

FIGURES Figure 1 Location of Proposed Project site ...... 2 Figure 2 Topographical map – Portion 3 and 7 of Farm Vygenhoek 10JT ...... 3 Figure 3 Preferred Site Layout ...... 5 Figure 4 Key sensitivities – Social, Heritage and Floral ...... 10 Figure 5 Alternative Layouts Considered ...... 11 Figure 6 Alternative 1 - Preferred revised layout ...... 12 Figure 7 Alternative 2 - Original Layout ...... 12 Figure 8 Alternative 3 ...... 13 Figure 9 Area of Direct Impact – 2 km radius ...... 21 Figure 10 Area of Indirect Impact and study area – 10 km radius ...... 22 Figure 11 Age profile comparing district, province and national ...... 26 Figure 12 Gender profile comparing district and local municipalities ...... 26 Figure 13 Languages spoken in Ehlanzeni District Municipality ...... 26 Figure 14 Highest Education for Thaba Chweu, Ehlanzeni and Mpumalanga ...... 27 Figure 15 Age profile comparing district, province and national ...... 29 Figure 16 Gender profile comparing district and local municipalities ...... 29 Figure 17 Languages spoken in Sekhukhune District Municipality and Limpopo ...... 29 Figure 18 Highest education levels for Fetakgomo Tubatse, Sekhukhune and Limpopo ...... 30 Figure 19 Employment levels for Fetakgomo Tubatse, Sekhukhune and Limpopo ...... 30 Figure 20 Age profile for Ward 5, Thaba Chweu and Ehlanzeni Local Municipality ...... 31 Figure 21 Household Income for Ward 5, Thaba Chweu and Mpumalanga ...... 32 Figure 22 Household Size for Ward 5, Thaba Chweu and Ehlanzeni ...... 32 Figure 23 Land use within 2 km of the Proposed Project site...... 34 Figure 24 Examples of houses in Vygenhoek Community ...... 36 Figure 25 Subsistence agriculture in Vygenhoek Community ...... 36 Figure 26 Key communities relating to the Proposed Project Site ...... 38 Figure 27 Broader settlements and activities associated with Vygenhoek Mine ...... 40 Figure 28 Socio-economic Sensitivity Map ...... 71 Figure 29 Social Mitigation Hierarchy ...... 76 Figure 30 Communications Structure ...... 84

TABLES Table 1 Overview of key financial aspects – approximate values ...... 6 Table 2 Breakdown of Nomamix Shareholders ...... 7 Table 3 Breakdown of Contractors Employees and Remuneration ...... 7 Table 4 Breakdown of Mine’s Employees and Remuneration ...... 8 Table 5 Description of primary data collection ...... 15 Table 6 Definitions and Criteria for Impact Assessment ...... 16 Table 7 Key Basic Household Services – Ward 5, Thaba Chweu and Mpumalanga ...... 32 Table 8 Overview of mining operations within 10 km of site ...... 41 Table 9 Key stakeholders and socio-economic issues identified...... 50 Table 10 Summary of relevance of other specialist studies ...... 53 Table 11 Summary of potential socio-economic impacts ...... 67 Table 12 Summary of impact significance after mitigation comparing alternatives ...... 69 Table 13 Socio-economic sensitivity rational ...... 72 Table 14 Social Management and Mitigation – Construction Phase ...... 77 Table 15 Social Management and Mitigation – Operational Phase ...... 79 Table 16 Social Management and Mitigation – Decommissioning Phase ...... 82 Table 17 Thaba Chweu Local Municipality Municipal Contacts ...... 84 Table 18 Key findings of the Air Quality Impact Assessment ...... 97

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Table 19 Key findings of the Visual Impact Assessment ...... 98 Table 20 Key findings of the Health Impact Assessment ...... 100 Table 21 Key findings of the Noise Study ...... 101 Table 22 Key findings of the Noise Study ...... 103 Table 23 Key findings of the Heritage Impact Assessment ...... 106 Table 24 Key findings of the Traffic Impact Assessment ...... 108

ACRONYMS

ABET Adult Basic Education and Training EIA Environmental Impact Assessment EMA Environmental Management Assistance (Pty) Ltd GDP Gross Domestic Product IDP Integrated Development Plan HDSA Historically Disadvantaged South African NAAQS National Ambient Air Quality Standards NDCR National Dust Control Regulations NEMA National Environmental Management Act (107 of 1998) NSDP National Spatial Development Perspective PGM Platinum Group Metals ROM Run-of-mine SIA Social Impact Assessment SLP Social and Labour Plan SMME Small, Medium and Micro Enterprises TVET Technical and Vocational Education and Training WRD Waste Rock Dumps

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SPECIALIST REPORT REQUIREMENTS

A specialist report prepared in terms of Appendix 6 of the Environmental Impact Regulations of 2014 (as amended) must contain: Requirement Report Reference Check () / Comment details of- (i) the specialist who prepared the report; and a Appendix A (ii) the expertise of that specialist to compile a specialist report  including a curriculum vitae; a declaration that the specialist is independent in a form as may be b Appendix A specified by the competent authority;  an indication of the scope of, and the purpose for which, the report c Section 1.4 was prepared;  an indication of the quality and age of base data used for the (cA) specialist report;  Section 2.2 a description of existing impacts on the site,  Section 3.3 cumulative impacts of the proposed development and (cB)  Section 5.1.4 levels of acceptable change;  Section 0 the duration, date and season of the site investigation and the d relevance of the season to the outcome of the assessment;  Section 2.2 a description of the methodology adopted in preparing the report or carrying out the specialised process inclusive of equipment and e  Section 0 modelling used; details of an assessment of the specific identified sensitivity of the site related to the proposed activity or activities and its associated f structures and infrastructure, inclusive of a site plan identifying site  Section 0 alternatives g an identification of any areas to be avoided, including buffers; N/A a map superimposing the activity including the associated structures h and infrastructure on the environmental sensitivities of the site  Section 700 including areas to be avoided, including buffers; a description of any assumptions made and any uncertainties or i Section 2.5 gaps in knowledge;  a description of the findings and potential implications of such j findings on the impact of the proposed activity or activities;  Sections 4 & 5

k any mitigation measures for inclusion in the EMPr;  Section 7 l any conditions for inclusion in the environmental authorisation;  Section 7 any monitoring requirements for inclusion in the EMPr or m Section 7 environmental authorisation;  a reasoned opinion- (i) whether the proposed activity, activities or portions thereof should be authorised; and (iA) regarding the acceptability of the proposed activity or activities; n and  Section 8 (ii) if the opinion is that the proposed activity, activities or portions thereof should be authorised, any avoidance, management and mitigation measures that should be included in the EMPr, and where applicable, the closure plan; a description of any consultation process that was undertaken o Section 2.2 during the course of preparing the specialist report;  a summary and copies of any comments received during any p consultation process and where applicable all responses thereto; N/A and q any other information requested by the competent authority. N/A

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1 INTRODUCTION

Nomamix (Pty) Ltd (Nomamix) is applying for a mining right for an open cast platinum mine on the farm Vygenhoek 10JT, in north-west Mpumalanga (Proposed Project). As part of the application process, Nomamix is required to undertake a Scoping and Environmental Impact Assessment (EIA) process, as per the National Environmental Management Act (107 of 1998) and the EIA regulations (2014, as amended). Envital Consulting was appointed by Environmental Management Assistance (Pty) Ltd (EMA) to undertake a Socio-Economic Impact Assessment (SIA) study to assess the potential social and socio- economic impacts within the local and regional context as part of the EIA process for the Proposed Project. The term “socio-economic” refers to the collective social and economic effects of the activities related to the Proposed Project on the people and communities associated with the Proposed Project. This SIA is an independent study focused on the potential social and socio-economic impacts of a proposed mining development, including aspects such as quality of life, community structure and livelihoods, and broader economic impacts.

1.1 PROJECT LOCATION

The Proposed Project will comprise the development of a greenfield mine located on the outskirts of the Eastern Limb of the Bushveld Complex. The Proposed Project is located on Portions 3 and 7 of the farm Vygenhoek 10 JT situated in the Thaba Chweu Municipality, Mpumalanga (Figure 1 and Figure 2). The site is located in a remote farming and mining area of north-western Mpumalanga, on the border of Limpopo.

Source: OpenStreet, 2020 Figure 1 Location of Proposed Project site

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Source: Chief Director: Surveys and Mapping, 1989 Figure 2 Topographical map – Portion 3 and 7 of Farm Vygenhoek 10JT

1.2 PROJECT OVERVIEW

1.2.1 ALTERNATIVE 1 (PREFERRED)

The Proposed Project is anticipated to comprise the construction, operation, and decommissioning / rehabilitation of a greenfield platinum mine. The anticipated Life of Mine will be ten years. The method of mining is proposed to be advancing open pit mining method which allows for simultaneous filling of the pit. The pit will be used to develop portals which will allow the remainder of the ore to be exploited using underground mining methods. The proposed open pit will apply a conventional opencast truck and shovel mining philosophy which entails the following steps:

 Removal and storing of topsoil at a designated area;

 Drilling and blasting will be required to break the hard overburden;

 Removal of the overburden;

 Dumping of waste into the pit behind the advancing face where possible, with the remainder directed to the waste dump site (waste will be kept separate from the topsoil);

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 Drilling and blasting of the ore; and

 Loading and hauling of the ore for stockpiling at the run-of-mine (ROM) pad or for transport to the preferred concentrator. A portion of the waste rock will be used in the construction of haul roads. Topsoil will be placed on top of backfill for the purpose of rehabilitation. The ore will be stockpiled on a ROM pad and transported to the concentrator plant by trucks. The open pit mining philosophy is based on a contractor-operated operation. A production shift cycle operating 9 hours a day, 6 days a week will be adopted. Ancillary infrastructure requirements include:

 Surface water management (water supply dams, mine residue facility return water dams, pollution control dams, clean and dirty storm water controls, river crossings);

 Storage and handling of hazardous substances (fuel, lubricants, various process input chemicals, raw material stockpiles/bunkers, gas, burning oils, explosives);

 Waste management (temporary handling and storage of general and hazardous waste, on-site change houses/ablution facilities with a conservancy tank);

 Security and access control;

 Lay down and storage yard areas;

 Workshops and wash bays;

 Offices;

 Contractor camps;

 Medical station; and

 Diesel generator.

The basic site layout, including key operational areas, is provided in Figure 3.

BASIC OVERVIEW OF THE MINING METHOD Open pit mining operation will commence after the site establishment is completed. Initially, the removal of overburden will take place for a period of six months before any mining of ore is done. The first ore will be mined in month eight, and ore and waste mining will take place concurrently onwards. The pit will be mined from the north in a southerly direction, with backfilling of the mined-out areas taking place behind as the pit advances. Factors that were considered in the mine design strategy included:

 Formal and informal settlements in relation to the planned open pit mining area as well as existing mining activities – a mining restriction zone of mainly 600 m was used for design purposes, this correlates to the 600 m blast radius;

 Residue stockpiles to be placed away from outcrop positions, on the highwall side of the maximum highwall position;

 Monthly production of approximately 15,000 tonnes per month of ore;

 The weathering profile of the near-surface material;

 Backfilling of mined out areas as soon as possible to minimize dust and aid in rehabilitation, minimize haulage costs and double handling;

 Operating costs – for mining and administration;

 Selling costs;

 Mining dilution of 22% were applied after the in-situ resource estimates;

 Due to surface weathering an overall slope angle of 7° from vertical was used to ensure pit stability;

 Heritage resources and location of the communities. .

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Figure 3 Preferred Site Layout

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Ramp-up of the mine mainly includes the installation of infrastructure including:

 Workshop

 Administration office

 Lighting of stockpile area and workshop / offices

 Weighbridge Equipment that will be required to mine ore, includes:

 5 Dump trucks for the transport of ore from the pit to the stockpile area,

 2 Utility vehicles for the transport of material and explosives,

 2 Drill rigs for the drilling of the benches

 5 Excavators for the stripping of ore and waste

 2 Bulldozer for the profiling of waste

 1 Grader for the maintenance of access roads and haul roads

 1 Water bowser for dust suppression of roads and waste dumps and screening areas. Maintenance and installation of equipment required to mine in accordance with the health and safety specifications, includes the following:

 Personal Protective Equipment,

 Plant and Equipment,

 Explosives,

 Maintenance of machinery and equipment,

 Rotable spares e.g. axles, engines, and electric motors,

 Mining services material,

 Miscellaneous (Lubricants, small tools, and consumables) . The above material and equipment are stored on-site to sustain continuous production in a safe work environment for employees.

TIMEFRAMES The construction/site establishment phase is anticipated to take approximately five months, with the overburden stripping commencing in the sixth month. The first ore extraction will begin in month eight. The total life of mine is anticipated to be ten years given the estimated deposit available on the site. The rehabilitation of the site will be progressive for the duration of the life of mine, and so is anticipated to span the same ten-year period, with two to three years of maintenance and aftercare.

FINANCIALS An overview of key financial aspects for the socio-economic environment are provided in Table 1. Table 1 Overview of key financial aspects – approximate values Aspects Description Once off Annual Total (10-year LOM) Capital Site Establishment R 6 million - R 6 million Expenditure Employment Contractors Employees and - R 9 million R 90 million spend Remuneration Mines Employees and Remuneration - R 8.1 – R 9.1 R 81 – R 91 million Socio- To mitigate any socio-economic R 1 million - R 1 million economic impact that may be arise as a result

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of the Vygenhoek project and affect individuals or groups. Service Surface works & other specialists, Providers consultants, service providers - R 2.9 million R 29 million annual cost Social and Human resource development R 80 – - (R 1.1)* Labour Plan 336 000 Local economic development R 375 000 – - (R 4.3)* R 2.5 million Management of downscaling - R 35 000 (R 175 000)* * SLP only considers first 5 years before review Source: Mining Work Programme (Nomamix, 2020)

OWNERSHIP Nomamix (Pty) Ltd is made up of four shareholders as outlined in Table 2.

Table 2 Breakdown of Nomamix Shareholders Shareholder % Ownership Description Community Trust 5% Pakaneng Communal Property Association (Bantau ba ga Choma Royal Family) Workers Trust 5% To be established through the operations Sukumani Resources 20% 100% owned by Black females (Pty) Ltd BCR Holdings (Pty) Ltd 66% Well-established mining holding company that has been actively involved in mining, exploration and commodities trading since 2010

LABOUR AND EMPLOYMENT It is anticipated that the operational phase will employ 58 people in total. Of these, 44 will be new or through existing contractors, and 14 will be management or core skills positions, and employed directly by the BCR Holdings (majority shareholder), as shown in Table 3 and Table 4. According to the social and Labour Plan (SLP) (Nomamix, 2020), of the 44 labour opportunities the majority (86%) will be males and Black African (82%). The education levels for contracted labourers are anticipated to be mainly Grade 12 (60%), then Grade 11 (32%), and 8% with higher diploma or degree. It is envisaged that a core group of contractors’ staff will be transferred from the contractors’ other operations in order to fulfil the start of the mining operation to the mining right holders’ specifications. The contractor will thereafter gradually transfer staff away from the mine and begin with the local recruitment of individuals from the area. These individuals will be trained to meet the requirements of the mine, and potentially become part of the “core group” for the contractor. Key core group staff with scarce skills may be retained on the site for the duration of the contract.

Table 3 Breakdown of Contractors Employees and Remuneration Total Annual Annual Remuneration Level Position Qty Remuneration per per person position Professionally qualified Contracts Manager 1 R 840 000 R 840 000 Site Manager 1 R 600 000 R 600 000 Skilled technical General Foreman 1 R 420 000 R 420 000 Shift Foreman 2 R 300 000 R 600 000 Bench Supervisors 2 R 240 000 R 480 000 Blaster 1 R 480 000 R 480 000

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Site Mechanics 2 R 480 000 R 960 000 Semi-skilled Assistant Blaster 1 R 240 000 R 240 000 Safety Officer 1 R 480 000 R 480 000 Safety Clerk 1 R 180 000 R 180 000 Workshop Assistants 2 R 120 000 R 240 000 Admin Staff 2 R 120 000 R 240 000 Mining Operators 22 R 120 000 R 2 640 000 General Laborers 5 R 120 000 R 600 000 TOTAL 44 R 9 000 000

Table 4 Breakdown of Mine’s Employees and Remuneration Approximate Annual Remuneration (10 Position Quantity years) Senior Management 3 R 2 700 000 Middle Management 4 R 2 600 000 Junior Management 1 R 610 000 – R 1 830 000 Core Skills 6 R 2 196 000 TOTAL 14 R 8 106 000 - R 9 106 000

All labour and staff will be housed offsite in existing accommodation. The SLP outlines the policies of the Nomamix as looking to facilitate, where possible, home ownership in Mashishing and other established formal urban nodes. Employees who are from the local community and reside, or wish to reside, in their own housing will be provided with a market related living out allowance or clean wage package which includes provision for housing. Neither the contractor nor the labour sending area has been determined as yet. Although the mine is located within Thaba Chweu Local Municipality in Mpumalanga, the extensive mining activities that surround the Proposed Project are located in Fetakgomo Tubatse Local Municipality in Limpopo, which immediately borders the site. Therefore, although the area of Thaba Chweu is anticipated to be key labour sending area, the Fetakgomo Tubatse Local Municipality may also from part of this.

1.2.2 THE ‘NO-GO’ ALTERNATIVE

The ‘no-go’ alternative, according to the current EIA Regulations, must be considered in situations where the Proposed Project will have a significant negative impact that cannot be effectively or satisfactorily mitigated against. The no-go alternative refers to the option of not proceeding with the activity and ultimately the continuation of the current status quo. In other words, the Applicant does not undertake any mining or related activities on the site.

1.3 PROJECT ALTERNATIVES

The EIA process required the assessment of an initial proposed layout, which highlighted a number of issues around heritage and social impacts that are considered unacceptable. For this reason, alternative layouts were considered by the project team, and assessed on a high level by each of the specialist. The initial layout provided by the engineering team for the Proposed Project included the most practical option from a logistics and operational point of view. The basic layout was taken forward into the EIA process, and several specialists studies were conducted. The specialists determined that there were several sensitivities associated with the original proposed layout that could not be sufficiently mitigated, as indicated in Figure 4. Specific issues related to heritage resources which are concentrated in the south-western corner of the site. These resources are considered highly sensitive due to the presence of graves and cultural sites which are held in high regard by the traditional authorities and local communities.

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The project team revised the basic layout to provide several alternatives for consideration and assessment. These alternatives are illustrated in Figure 5, and comprise the following: 1) Haul roads – Options 1, 2, 3 and 4 2) New access road 3) Waste Rock Dumps (WRD) – Options 1, 2, 3 4) Office – Options 1 and 2 5) Run of mine (RoM) – Options 1 and 2

1.3.1 ALTERNATIVES CONSIDERED IN THE IMPACT ASSESSMENT

The EIA project team considered the input of each specialist and the preferred revised layout was determined, as illustrated in Figure 6. For the purpose of the SIA, and as a result of the need to revise the layout, the original layout is considered to be Alternative 2 and the remaining layout options as Alternative 3. The three alternatives therefore considered within the SIA are provided in Figure 6, Figure 7, Figure 8.

1.4 TERMS OF REFERENCE

The scope of the SIA was to determine the potential positive and negative impacts of the Proposed Project and alternatives, including the No-Go Alternative, on the local and regional socio-economic landscape. The study considered the direct, indirect, and cumulative impacts of the Proposed Project in relation to current and proposed activities within the local area. The objectives of the SIA were to:

 Conduct a desktop review to develop a baseline of the socio-economic receiving environment associated with the Proposed Project;

 Conduct relevant field work to inform the socio-economic assessment process;

 Develop a social profile for the Proposed Project area through the description of the social receiving environment that may be affected by the proposed activity;

 Identify, describe, and assess the potential social impacts associated with the Proposed Project; and

 Provide mitigation measures and recommendations to enhance the socio-economic sustainability of all phases of the Proposed Project. This report has been compiled in support of the Scoping and EIA process undertaken by Environmental Management Assistance (Pty) Ltd.

1.5 SPECIALIST DETAILS

Danielle Sanderson is an independent, qualified specialist with twelve years’ experience in social and environmental impact assessment. Refer to Appendix A for declaration of independence and curriculum vitae of the specialist.

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Figure 4 Key sensitivities – Social, Heritage and Floral

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Figure 5 Alternative Layouts Considered

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Figure 6 Alternative 1 - Preferred revised layout

Figure 7 Alternative 2 - Original Layout

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Figure 8 Alternative 3

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2 METHODOLOGY

2.1 APPROACH

The purpose of the SIA was to provide the socio-economic context for the Proposed Project and assess the potential impacts on the receiving social and socio-economic environment. The approach to this SIA study was informed by the scale of the Proposed Project within the local context. The site is located on an undeveloped portion of land, currently used on an ad hoc basis for subsistence grazing by local rural communities. The SIA process, therefore, required a desktop assessment of previous studies and background information for the site and project context, and field research, including interviews with representatives from potentially affected communities. There is currently no specific legal framework that governs SIA processes in South Africa; however, a SIA study must meet the requirements for specialist reports in Appendix 6 of the National Environmental Management Act (107 of 1998). In addition, the International Association of Impact Assessment provides guidelines for assessing and managing the social impacts of projects (IAIA 2015). Both of the aforementioned frameworks have been used to inform this study.

2.2 DATA COLLECTION

The data collection phase of the study comprised of two components: 1) Primary data collection – field research; and 2) Secondary data collection – desktop research.

PRIMARY DATA At the outset of the study, several sources of information were reviewed to identify the potentially affected communities and directly and indirectly affected stakeholders. These sources include:

 Stakeholder database and public participation meetings from the scoping phase of the EIA process (EMA, 2020);

 A previous environmental and socio-economic impact assessment study for the Vygenhoek site (Digby Wells, 2012); and

 Current maps and databases (e.g. Google Earth Pro, topographical maps). The focus of the study was on the communities immediately adjacent to the proposed site, namely the communities on Farm Vygenhoek (10JT), and other relevant communities in close proximity to the site. A range of primary data was collected during the site investigation from these and surrounding areas during the period from 6 to 8 October 2020. The key methods of primary data collection were structured, open-ended interviews and discussions, as described in Table 5. In addition, the following primary data was captured:

 Observational data was obtained about the site and surrounding land uses, characteristics and activities of the site and surrounding areas was undertaken by the specialist during the field work period.

 Issues raised at scoping phase stakeholder engagement meetings – which took place in Lydenburg on 7 and 8 September 2020. The level of data captured is considered to have identified the key issues and the number of interviews (as per Table 5) is considered sufficient for the scope of the SIA.

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Table 5 Description of primary data collection Type of data Group Date Description No. collection representatives present Structured Bantau ba 6 October Meeting held in Boksburg, and included 1 and open- ga Choma 2020 general discussions, and a formal (Kgoshi) ended Royal investigation of the history and dynamics of Interviews Family the Royal Family and communities on the Vygenhoek site. Vygenhoek 7 October Meeting held in the community on Farm 18 Community 2020 Vygenhoek, and included general (including elders) discussions, observations and a formal survey of the demographics and livelihoods of households within the community. Protea 7 October Meeting held in the community on Farm 9 Community 2020 Skaapkraal, and included general (including the discussions, observations and a formal Chairperson and survey of the demographics and livelihoods of elders) households within the community.

2.2.1 SECONDARY DATA

Several sources of secondary information were employed for the SIA. Firstly, the other specialist studies undertaken for the EIA process were reviewed, to identify potential socio-economic impacts resulting from the biophysical environmental impacts, including:

 Final Scoping Report (EMA, 2020);

 Air Quality Impact Assessment (Rayten Environmental, 2020);

 Visual Impact Assessment (LOGIS, 2020);

 Blast Impact Assessment (De Jager, 2020a);

 Noise Impact Assessment (De Jager, 2020b);

 Heritage Impact Assessment (HCAC, 2020); and

 Traffic Impact Assessment (Siyazi Limpopo Consulting Services, 2020) Other sources of information included previous studies related to the Proposed Project site (Digby Wells, 2012), similar mining projects, municipal policy and planning reports, national strategic documents, and international journal articles and reports on similar projects.

2.2.2 DATA ANALYSIS

The information gathered through both the desktop assessment and field work was systematically collated and analysed using standard social science methods, including reduction, trend, and qualitative analysis. The key social issues were identified through a combination of understanding the current social and proposed environment, review of impacts of similar projects, and understanding gained through various specialists’ studies. The potential positive and negative impacts associated with the Proposed Project were identified; following which a qualitative assessment of the priority socio- economic issues was conducted.

2.3 IMPACT ASSESSMENT

It is challenging to categorise social impacts, as they are often cross-cutting and multifaceted. In addition, not all impacts are perceived in the same way by all stakeholders or communities, and this perception may also change over time. Burdge and Vanclay (1996) state that: “Certain impacts, such as changes to the nature or character of a community may be perceived as negative by some members of the community, and as positive by other members. Thus, impacts are not simply positive or negative in themselves… but are subject to the value judgements of individuals.”

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Vanclay (2002) refers to the social change processes that can take place as a result of projects, including:

 Demographic processes: changes and impacts related to the composition of local communities;

 Economic processes: changes and impacts on the way in which the local people make a living and the economic activities in the society;

 Geographical processes: changes and impacts on land use patterns;

 Institutional and Legal processes: changes and impacts that affect the efficiency and effectiveness of local authorities; and

 Socio-cultural processes: changes and impacts that affect the culture of the local society, i.e. the way that people live together. Not all social change process may, however, result in an impact. The social change processes are discussed broadly in Section 4 and subsequently the impacts are assessed according to the applicability to the project and potentially affected stakeholders and communities in Section 5. The SIA made use of a methodological framework to meet the combined requirements of international best practice and the National Environmental Management Act (107 of 1998) (NEMA) EIA Regulations of 2014, as amended. The SIA made use of a methodological framework based on a qualitative assessment of significance, using a structured definition of:

 Intensity of impacts

 Duration of impacts

 Extent of impacts

 Probability of exposure to impacts The impact assessment strives to identify activities which require certain environmental management actions to mitigate the impacts arising from them. Table 6 provides a description of the impact assessment process, including the definitions of criteria used to determine the significance rating. Table 6 Definitions and Criteria for Impact Assessment PART A: DEFINITIONS AND CRITERIA* Definition of CONSEQUENCE Consequence is a function of intensity, spatial extent, and duration Definition of SIGNIFICANCE Significance = consequence x probability Social - negative Social - positive Criteria for ranking VH Severe change, disturbance, or degradation. Substantial, large-scale of the INTENSITY of Associated with severe consequences. May change or improvement. environmental result in severe illness, injury, or death. Targets, Considerable and impacts limits and thresholds of concern continually widespread benefit. Will be exceeded. Substantial intervention will be much better than the current Combination of required. Vigorous/widespread community conditions. Favourable Magnitude, mobilization against project can be expected. publicity and/or widespread Irreplaceability* of May result in legal action if impact occurs. support expected. affected resource, High Irreplaceability Low Irreplaceability and Reversibility** Low Reversibility High Reversibility of impact H Prominent change, disturbance or degradation. Prominent change or Associated with real and substantial improvement. Real and consequences. May result in illness or injury. substantial benefits. Will be Targets, limits and thresholds of concern better than current regularly exceeded. Will definitely require conditions. Many people will intervention. Threats of community action. experience benefits. General Regular complaints can be expected when the community support. impact takes place. Low Irreplaceability Medium Irreplaceability High Reversibility Low Reversibility

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M Magnitude - Moderate change, disturbance or Moderate change or discomfort. Associated with real but not improvement. Real but not substantial consequences. Targets, limits and substantial benefits. Will be thresholds of concern may occasionally be within or marginally better exceeded. Likely to require some intervention. than the current conditions. Occasional complaints can be expected. Small number of people will Medium Irreplaceability experience benefits. Medium Reversibility Medium Irreplaceability Medium Reversibility L Minor (Slight) change, disturbance or nuisance. Minor change or Associated with minor consequences or improvement. Minor benefits. deterioration. Targets, limits and thresholds of Change not measurable/will concern rarely exceeded. Require only minor remain in the current range. interventions or clean-up actions. Sporadic Few people will experience complaints could be expected. benefits. Low Irreplaceability Low Irreplaceability High Reversibility High Reversibility VL Magnitude - Negligible change, disturbance or Negligible change or nuisance. Associated with very minor improvement. Almost no consequences or deterioration. Targets, limits benefits. Change not and thresholds of concern never exceeded. No measurable/will remain in interventions or clean-up actions required. No the current range. complaints anticipated. Low Irreplaceability Low Irreplaceability High Reversibility High Reversibility Criteria for ranking VL Very short, always less than a year. Quickly reversible the DURATION of L Short-term, occurs for more than 1 but less than 5 years. Reversible over time. impacts M Medium-term, 5 to 10 years. H Long term, between 10 and 20 years. (Likely to cease at the end of the operational life of the activity) VH Very long, permanent, +20 years (Irreversible. Beyond closure) Criteria for ranking VL A part of the site/property. National /International the EXTENT of L Whole site. Provincial impacts M Beyond the site boundary, affecting immediate Regional – local /district neighbours municipality H Local area, extending far beyond site boundary. Local / communities within the area of indirect impact VH Regional/National Affecting immediate neighbours / project area of direct impact

*Irreplaceability of No irreplaceable resources will be impacted (the affected resource is easy to Low resource caused by replace/rehabilitate). impacts Medium Resources that will be impacted can be replaced, with effort. High Project will destroy unique resources that cannot be replaced. **Reversibility of Low Low reversibility to non-reversible. impacts Medium Moderate reversibility of impacts. High High reversibility of impacts.

PART B: DETERMINING CONSEQUENCE Beyond the Local area, A part of the site, extending Regional/ Whole site EXTENT site/property affecting far beyond National neighbours site. VL L M H VH INTENSITY = VL DURATION Very long VH Low Low Medium Medium High

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Long term H Low Low Low Medium Medium Medium term M Very Low Low Low Low Medium Short term L Very low Very Low Low Low Low Very short VL Very low Very Low Very Low Low Low INTENSITY = L Very long VH Medium Medium Medium High High Long term H Low Medium Medium Medium High DURATION Medium term M Low Low Medium Medium Medium Short term L Low Low Low Medium Medium Very short VL Very low Low Low Low Medium INTENSITY = M Very long VH Medium High High High Very High Long term H Medium Medium Medium High High DURATION Medium term M Medium Medium Medium High High Short term L Low Medium Medium Medium High Very short VL Low Low Low Medium Medium INTENSITY = H Very long VH High High High Very High Very High Long term H Medium High High High Very High DURATION Medium term M Medium Medium High High High Short term L Medium Medium Medium High High Very short VL Low Medium Medium Medium High INTENSITY = VH Very long VH High High Very High Very High Very High Long term H High High High Very High Very High DURATION Medium term M Medium High High High Very High Short term L Medium Medium High High High Very short VL Low Medium Medium High High EXTENT VL L M H VH

PART C: DETERMINING SIGNIFICANCE PROBABILITY Definite/ VH Very Low Low Medium High Very High (of exposure to Continuous impacts) Probable H Very Low Low Medium High Very High Possible/ M Very Low Very Low Low Medium High frequent Conceivable L Insignificant Very Low Low Medium High Unlikely/ VL Insignificant Insignificant Very Low Low Medium improbable VL L M H VH CONSEQUENCE *VH = very high, H = high, M= medium, L= low and VL= very low and + denotes a positive impact.

PART D: INTERPRETATION OF SIGNIFICANCE Significance Decision guideline Negative Positive Very High Potential fatal flaw unless mitigated to lower Significant benefit and must for part of the basis significance. for the decision. High It must have an influence on the decision. It must have an influence on the decision. Substantial mitigation will be required.

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Medium It should have an influence on the decision. It should have an influence on the decision. Mitigation will be required. Low Unlikely that it will have a real influence on the Unlikely that it will have a real influence on the decision. Limited mitigation is likely to be decision. required. Very Low It will not have an influence on the decision. It will not have an influence on the decision. Does not require any mitigation Insignificant Inconsequential, not requiring any Inconsequential, not requiring any consideration. consideration.

2.3.1 ALTERNATIVES ASSESSMENT

The aim of the alternative assessment was to obtain the best practicable alternatives that would have the least physical and social environmental impact. There were several layout alternatives considered during the EIA process (as discussed in Section 1.3). The SIA provides a detailed impact assessment of the preferred alternative (Section 5), and a high-level assessment of the other alternatives using the same methodology as for the preferred alternative (Appendix C). Each specialist was required to assess each of these alternatives in terms of their potential impact on the respective environmental aspects and ranked according to their likely impact. The SIA specialist considered each of the alternatives discretely in relation to existing socio-economic activities and sensitive receptors. The following issues were considered of specific concern in terms of the socio- economic assessment process:

 Proximity of the alternatives to dwellings and cultivated land

 Likelihood of staff and vehicles interacting with communities

 Noise emissions impacts

 Dust emissions impacts

 Visual impacts The SIA therefore used information and data obtained through the site visit and other specialist studies to assess the alternatives, as discussed in Section 5.4.

2.4 STUDY AREA

The SIA focused on two levels in terms of study area, namely local and regional. Social and socio- economic impacts vary from the local to the regional, as specific properties, individuals and communities may be impacted locally, whereas regional impacts may affect broader communities, businesses and other economic and social aspects.

2.4.1 LOCAL

The local area encompasses two study areas: 1) Area of Direct Impact; and 2) Area of Indirect Impact

AREA OF DIRECT IMPACT Area of Direct Impact was defined as 2 km from the border of the Vygenhoek Project boundary (Portion 3 and 7 of Farm Vygenhoek 10JT), as shown in Figure 9, and includes the social and economic activities closest to the site. This area was defined by the area likely to be directly impacted by the Proposed Project during construction and operation through noise, visual, air quality and other aspects of the project.

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One community has been identified as potentially being directly affected by the Proposed Project, namely the “Vygenhoek Community” (which forms part of the Protea Community Forum), located immediately south of the project site, on Portions 1, 2, 4 and 5 of Vygenhoek (Figure 9). There is a second group of houses, located north-west of the Proposed Project site, which could also potentially be affected by the Proposed Project. This group is referred to at the Helena Settlement in this report are reportedly used by mine employees (De Jager, 2020b). These two small groups of houses appear to include some subsistence farming.

AREA OF INDIRECT IMPACT Area of Indirect Impact was defined as the broader study area, which encompasses indirectly affected communities, businesses and other socio-economic activities. These activities may be impacted by aspects such as increased traffic, loss of staff, and employment opportunities. The Area of Indirect Impact extends approximately 10 km from the property, as indicated in Figure 10, and includes the following settlements:

 Skaapkraal  Maartenshoop

 Modderspruit  Sterkfontein

 Skaapkraal

 Rietfontein  St George

 Naauwpoort The following mining activities are situated within the study area:

 Booysendal North mine  Mototolo Concentrator

 Helena Chrome Mine  Lebowa and Borwa Platinum Mines

 Marareng Chrome Mine  Thorncliffe Chrome Mine

2.4.2 REGIONAL

The regional level is defined as the area which may be indirectly affected by the Proposed Project. The Proposed Project site falls within the Thaba Chweu Local Municipality, part of the Ehlanzeni District Municipality within the Mpumalanga Province. However, the northern and western boundary of the site border the Fetakgomo Tubatse Local Municipality which falls within the Sekhukhune District within the Limpopo Province. Most of the nearby mining operations occur within thew Limpopo side of the study area, and therefore forms part of the broader study area. As the Proposed Project and the most affected communities are located mostly within the Thaba Chweu Local Municipality, the focus of this study is on this municipality, but with selected discussion of the Limpopo region and activities within Sekhukhune District.

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Figure 9 Area of Direct Impact – 2 km radius

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Figure 10 Area of Indirect Impact and study area – 10 km radius

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2.5 GAPS, LIMITATIONS AND ASSUMPTIONS

GAPS IN DATA

 The specialist was not able to gain information on or interview representatives from the informal settlement near Ba-Choma Silica mine (Portion 12 of Farm Schaapkraal). This is the second closest community to the proposed site but is partly abandoned and no one on site was willing to engage with the specialist. They have also not been engaged through the public participation process, and the local community organisation (Protea Community Forum) does not recognise them as they are considered illegal settlers on the land.

LIMITATIONS

 Whilst a number of socio-economic issues affect the communities and their environment within the study area, the focus on the study was on the study area in terms of the Proposed Project and within the local context.

 Social impacts can be felt on an actual or perceptual level, and therefore it is not always possible or straightforward to measure the impacts in a quantitative manner.

 The focus of the assessment is limited to the social environment within the vicinity of the Proposed Project, and so excluded detailed study of the broader region, i.e. those in Lydenburg, Steelpoort and other areas that may potentially be indirectly affected by the Proposed Project.

 There are different groups with different interests in the community, and while a project of this nature may be perceived as having positive or neutral social or socio-economic impacts by one group or individual, others may perceive or experience negative impacts. This duality is highlighted in the impacts section of the report. One of the limiting factors in assessing social issues is the difficulty of attaching values to these issues.

 Health impacts have been excluded from this study, as a separate health assessment study was conducted (Adaptera Strategic Support Services, 2020), however, the information provided in that study is considered sufficient to cover the socio-economic aspects of the public and community health.

 Aspects that are not mapped in

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 Figure 3 (Preferred layout) have not been assessed (e.g. pollution control dam, waste management area, lay down and storage yard areas, and contractor camps as this information was not provided by the EIA project team.

ASSUMPTIONS

 It is assumed that the agreement between the local community (Protea Community – including Skaapkraal and Vygenhoek) and the Bantau ba ga Choma Royal Family that the Bantau ba ga Choma Royal Family will represent the interests of the local community and the Royal Family was made without coercion and that the Bantau ba ga Choma Royal Family will be transparent and fair in their representation and engagement.

 Demographic data from Provincial to Ward level was sourced from the Census 2011 data (Statistics SA, 2012), as this is the most up-to-date data available at this scale and is assumed to reflect the current socio-economic situation.

 It is assumed that the information provided by Nomamix (Pty) Ltd, Environmental Management Assistance (Pty) Ltd, the Protea Community Forum and the specialist studies is true and accurate.

 It is assumed that no workers will be housed on or near the site during the construction, operation or decommissioning of the Proposed Project.

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3 RECEIVING ENVIRONMENT

3.1 REGIONAL OVERVIEW

3.1.1 MPUMALANGA

The Proposed Project site is located within the Thaba Chweu Local Municipality, which forms part of Ehlanzeni District Municipality in Mpumalanga Province. Mpumalanga is located in the northeast of South Africa, on the border of Mozambique (to the east) and eSwatini (to the south). The Ehlanzeni is one of three district municipalities in Mpumalanga, and comprises four local municipalities namely: Thaba Chweu, City of , Nkomazi, and . The total population of the Ehlanzeni is approximately 1.8 million, with a population density of 63 people per square kilometre (Statistics SA, 2016 in Ehlanzeni, 2020). The bulk (40%) of the Ehlanzeni’s population is located in Mbombela Local Municipality (Nelspruit), while Thaba Chweu Local Municipality has the lowest population with only 5% (Statistics SA, 2016 in Ehlanzeni, 2020). The main urban areas in the Ehlanzeni are: Mbombela, , Malelane, Mashishing (Lydenburg), Barberton, , and . The capital city of the province, Mbombela (formerly Nelspruit), is the economic hub of the province and is located in the south of the Ehlanzeni (over 90 km from the site). The City of Mbombela has the highest population growth rate compared to other local municipalities, as immigrants from other municipalities and from outside the province and country are attracted to this area for employment (Ehlanzeni, 2020). Land use and settlement patterns within Ehlanzeni are influenced by a range of factors, including topography, climate, and availability of natural resources (including water, soil types, minerals, and biodiversity). The subtropical climate and varied and dramatic topography gives Ehlanzeni an aesthetically beautiful environment that is well suited to agricultural and tourism. The majority of the land use within Ehlanzeni is rural and considered either natural (83%) or agricultural (16%), with only 1% under urban or mining use (Laduma Tapp, 2010).

DEMOGRAPHICS The age profile of Ehlanzeni is slightly younger than the provincial and local municipality profiles (Figure 11), with 35% considered children (0-14 years) and 38% considered youth (15 – 34 years) (Statistics SA, 2012). There is generally a higher number of women to men throughout Ehlanzeni (Figure 12), which could be a result of out-migration of men in search of employment in Johannesburg or other areas. Thaba Chweu Local Municipality is the exception, as the number of men is higher. This is likely to be due to the many mining operations located in and around Thaba Chweu. The most spoken language in Ehlanzeni is SiSwati (54%), followed by Xitonga (22%) and Sepedi (10%) (Statistics SA, 2012) (Figure 13).

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Source: Statistics SA, 2012 Figure 11 Age profile comparing district, province and national

Source: Statistics SA, 2012 Figure 12 Gender profile comparing district and local municipalities

Source: Statistics SA, 2012 Figure 13 Languages spoken in Ehlanzeni District Municipality

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The education levels within the District are low, but similar to Mpumalanga, with 10% having no formal schooling, 40% having less than Grade 10 and only 6% having tertiary education (Figure 14). In 2011 the Ehlanzeni District had an unemployment of 30%, with Bushbuck Ridge Local Municipality having the highest unemployment at 52% and Thaba Chweu Local Municipality the lowest (20%) (Statistics SA, 2012).

50% 40%40% 40% 36% 30% 20% 18% 20% 17% 10% 9% 8% 7% 8% 8% 8% 10% 7% 7% 7% 6% 6% 0% No Schooling Less than Grade 10 Grde 11 Grade 12 Tertiary Grade 10

Thaba Chweu Ehlanzeni Mpumalanaga

Source: Statistics SA, 2012 Figure 14 Highest Education for Thaba Chweu, Ehlanzeni and Mpumalanga

ECONOMIC ENVIRONMENT OVERVIEW Mpumalanga relies on the diverse natural resources found within the province to support the local economy, including mineral and ecological. Mpumalanga is not a major economic centre within South Africa but contributes considerably to the country’s tourism, agricultural and mining. The major contributors to the Mpumalanga economy are mining (25.2%) and manufacturing (19.3%), however the main economic contributors within Ehlanzeni are community, social and personal services (45.2%), wholesale and retail trade (47%), construction (42.8%), finance (34.6%), transport (39.7%) and agriculture (33%) (Ehlanzeni, 2020). According to the Ehlanzeni Integrated Development Plan (IDP), there are indications that the local economy has been shifting from primary sector towards tertiary sector activities over the past two decades. Limited direct investment and low skills levels in the region, however, means that economic growth has been restricted and unemployment remains high (Ehlanzeni, 2020). Consequently Ehlanzeni continues to rely on agriculture, construction, mining, and tourism to provide employment for low and unskilled labourers (Ehlanzeni, 2020). Tourism is a key source of local and foreign revenue for Ehlanzeni, with internationally recognised attractions such as the Motlatse (Blyde River) Canyon Game Reserve and the Kruger National Park within its borders. In addition, there are numerous smaller reserves, sites of natural beauty and cultural attractions which contribute to the tourism development in the district (Laduma Tapp, 2010). Agriculture within the district is dominated by the cultivation of subtropical, citrus, and deciduous fruits, as well as other crops, such as nuts, tobacco, wheat, sugarcane, and vegetables (Ehlanzeni, 2020). Forestry competes with crop cultivation for land and other resources and is one of the dominant land uses in Ehlanzeni (Ehlanzeni, 2020). Ehlanzeni also has access to one of the key transport and logistics corridors in the region, namely the Maputo Development Corridor. This inter-country economic development corridor connects the industrial, agricultural, and mining areas of Gauteng, Limpopo, Mpumalanga and eSwatini with the ports in Mozambique. The spinoffs from this corridor development include direct investment in economic activities and infrastructure in the area, allowing for easier access to ports for raw materials and products from the region.

MINING Mining has contributed between 17 and 26% of the provincial Gross Domestic Product (GDP) over the past decade (Ehlanzeni, 2020). Most of the benefits, however, are recognised outside of the region, such as through export. Opportunities within the regional mining sector include (Ehlanzeni, 2020):  Growing demand on the global market for commodities (including platinum);  Beneficiation of minerals (e.g. jewellery making);

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 Platinum Group Metals mining along the eastern limb of the Bushveld Complex;  New entrants to mainstream industry for Black Economic Empowerment (Mpumalanga Mining Energy Preferential Procurement Initiative);  Small Scale mining; and  Strategic alliances for share acquisition through Broad Based Black Economic Empowerment. Key opportunities for local economic development through mining initiatives include local investment, skills development, infrastructure, and technology development and broadening of the supplier base (Ehlanzeni, 2020). The Proposed Project is likely to contribute towards the regional economy through direct investment and developing the mining sector.

3.1.2 LIMPOPO

The Proposed Project site is located on the border of between the Mpumalanga and Limpopo provinces. The area immediately north and west of the site falls within the Fetakgomo Tubatse Local Municipality, which forms part of the Sekhukhune District of Limpopo. Limpopo is located in the northern most parts of South Africa, bordering on Botswana, Zimbabwe and Mozambique, to the north and Mpumalanga, Gauteng and North West Provinces to the south. Limpopo contains five district municipalities, namely Waterberg, Capricorn, Vhembe, Mopani and Sekhukhune. The total population of the Sekhukhune is approximately 1.2 million, with a population density of 89 people per square kilometre (Sekhukhune, 2020). The population of Sekhukhune is approximately 20% of the province (5.9 million in 2018) (Sekhukhune, 2020). Groblersdal is the capital of the district, located 75 km west of the site. Other major centres include Burgefort (highest population of 12 815 people), Marble Hall, Steelpoort and Ohrigstad (Sekhukhune, 2020). Land use and settlement patterns within Sekhukhune are dominated by commercial and subsistence farming, followed by conservation, residential business and mining (Sekhukhune, 2020). The settlement patterns are mainly rural with scattered villages located primarily on communal land. There are 74 traditional leaderships within the district, which require significant engagement for planning.

DEMOGRAPHICS The age profile of Sekhukhune is slightly younger than the provincial and Fetakgomo Tubatse profiles (Figure 15), with 34% considered children (0-14 years) and 35% considered youth (15 – 34 years) (Statistics SA, 2012). There is generally a higher number of women to men throughout Sekhukhune (Figure 16), which could be a result of out-migration of men in search of employment in Gauteng or other areas. The most spoken language in Sekhukhune is Sepedi (82%), followed by IsiNdebele (4%) (Statistics SA, 2012) (Figure 17).

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Source: Statistics SA, 2012 Figure 15 Age profile comparing district, province and national

Source: Statistics SA, 2012 Figure 16 Gender profile comparing district and local municipalities

Source: Statistics SA, 2012 Figure 17 Languages spoken in Sekhukhune District Municipality and Limpopo The education levels within the District are marginally lower than provincial levels, with 12% having no formal schooling, 42% having less than Grade 10 and only 4% having tertiary education (Figure 18). In 2011 the Sekhukhune District had an unemployment rate of 44% (excluding discouraged work seekers), with Makhuduthamaga Local Municipality having the highest unemployment in the district at 50% and Fetakgomo Tubatse Local Municipality the second highest at 47% (Statistics SA, 2012) (Figure 19).

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Source: Statistics SA, 2012 Figure 18 Highest education levels for Fetakgomo Tubatse, Sekhukhune and Limpopo

Source: Statistics SA, 2012 Figure 19 Employment levels for Fetakgomo Tubatse, Sekhukhune and Limpopo

ECONOMIC ENVIRONMENT OVERVIEW The Limpopo Province is one of the poorest provinces in South Africa, with a large portion of the population (10%) and only contributing 7% of the Gross Domestic Product (TIPS, 2016). The economy relies on tertiary sector (community services, finance and trade – 58%) and primary sector (mining – 28%) (Limpopo Provincial Treasury, 2018). Within the Sekhukhune District Municipality, mining, agriculture and community services are the top three contributors to the local economy (Sekhukhune, 2020). Mining has grown significantly from 2003 to 2011 within Limpopo, however this has dropped off in recent years. Mining is anticipated to continue to grow and contribute significantly to the Sekhukhune economy (Sekhukhune, 2020). Agriculture is a key source of food, employment and economic growth within Limpopo and Sekhukhune District. Agricultural activities comprise a mix of large-scale commercial farming, and smallholder-based production and subsistence farming in the deep rural areas (Sekhukhune, 2020). Tourism is also an important (if not high) contributor to the local economy, with various activities and conservation areas scattered throughout Limpopo and a few within Sekhukhune District, such as dams, tourism routes, areas of natural beauty and historical attractions. Overall Limpopo, and especially Sekhukhune District, have little access to resources (other than mining) and is relatively disconnected as it has no key economic centres and is dominated by an arid environment which is not conducive to high agricultural productivity. The high population and low employment rates makes this region one of the most vulnerable areas of the country.

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3.2 LOCAL OVERVIEW

The Proposed Project site is located in Ward 5 of the Thaba Chweu Local Municipality, approximately 30 km west northwest of Mashishing (formerly Lydenburg) (the closet urban centre).

DEMOGRAPHICS The population of Ward 5 is 12 406 people, with a population density of 9.9 people per square kilometre (Statistics SA, 2012). This is 13% of the total population of Thaba Chweu Local Municipality and only 0.8% of Ehlanzeni District Municipality. The population of Ward 5 is considered young, with 69% being below the age of 35, and 41% below the age of 15 (Figure 20) (Statistics SA, 2012). The dependency ratio is 54%, which is relatively low compared to Mpumalanga (59%) and the national ratio of 56% (Statistics SA, 2012). The majority (90%) of the population is Back African, followed by Coloured (6%) and White (4%) (Statistics SA, 2012). The most spoken language is Sepedi (47%), followed by SiSwati (13%), and isiZulu and Afrikaans (each 9%) (Statistics SA, 2012).

Source: Statistics SA, 2012 Figure 20 Age profile for Ward 5, Thaba Chweu and Ehlanzeni Local Municipality

The highest level of education attained by individuals 18 and over in Ward 5 is relatively low with 10% having no schooling, 45% less than Grade 10, 13% have a grade 12 and only 2% having tertiary education (Statistics SA, 2012). This is similar to the local and district municipality (Figure 14). The poverty rate in Thaba Chweu in 2015 was 21.5% and the unemployment rate was 20.5% in 2011 (Thaba Chweu, 2017). Both of these aspects are low compared with other local municipalities within the Ehlanzeni District Municipality (25% - 52%) and the national average (27%) (Statistics SA, 2012). Employment within Ward 5 is relatively high at 70% of the working-age population being employed and 25% unemployed in 2011 (5% discouraged work seekers), compared to 58% and 30% for Ehlanzeni District and 62% and 29% for Mpumalanga respectively (Statistics SA, 2012). Approximately 17% of the Thaba Chweu population relies on social grants, with 51% of these individuals (8059 people) receiving child grants, 15% (2409 people) receiving disability grants and 29% (4626) receiving old age grants (Stats SA, 2012 in Thaba Chweu, 2017). There are total of 4 208 households within Ward 5. Household income within Ward 5 is predominantly low, with 12% having no income, and 25% considered low income (Statistics SA, 2012) (Figure 21). The majority (67%) of houses within Ward 5 are formal, 2% informal and 32% farm dwellings (Statistics SA, 2012). Household size varies but is characteristic of rural household sizes, with the majority having one or two people (Figure 22) (Statistics SA, 2012). Land tenure security is limited, with 50% of households being rented, 17% occupied rent-free (likely to be on farm tenants), and only 20% being owned and fully paid off (Statistics SA, 2012).

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Source: Statistics SA, 2012 Figure 21 Household Income for Ward 5, Thaba Chweu and Mpumalanga

Source: Statistics SA, 2012 Figure 22 Household Size for Ward 5, Thaba Chweu and Ehlanzeni

Formal basic services within Ward 5 are similar to that of Thaba Chweu , but slightly lower than Mpumalanga (Table 7). This is likely to be due to the rural nature of the area. Only 67% receive water through a regional water scheme, and 10% obtain water from boreholes and 10% from rivers and streams (Statistics SA, 2012). Only 65% of households have access to water-borne sewage, 17% have access to pit latrines, and 8% do not have access to formal sanitation (Statistics SA, 2012). Refuse collection is received by 63% of households, and 25% have their own refuse dumps, while 7% have no means of formal refuse disposal (Statistics SA, 2012). 68% of households have access to electricity, but just 63% use it for cooking, and 59% for heating (Statistics SA, 2012). There is a heavy reliance on wood for heating and cooking (approximately 25%), and paraffin (up to 10% of households) (Statistics SA, 2012). Table 7 Key Basic Household Services – Ward 5, Thaba Chweu and Mpumalanga

Services Description Ward 5 Thaba Chweu Mpumalanga Regional/local water scheme 67% 70% 74% Borehole 10% 12% 8% Water River/stream 10% 8% 4% Source Water tanker/vendor 7% 6% 12% Other 6% 4% 9% None 8% 3% 6% Sanitation Flush toilet (connected to sewerage system) 65% 63% 42% Facilities Pit latrine 17% 26% 45%

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Other 6% 3% 4% No rubbish disposal 7% 5% 8% Removed by local authority 63% 63% 44% Refuse Own refuse dump 25% 28% 45% Other 5% 4% 3% Electricity 68% 83% 86% Energy – Paraffin 2% 2% 1% Lighting Candles 27% 14% 12% Other 3% 1% 1% Electricity 63% 71% 69% Energy – Paraffin 10% 5% 6% Cooking Wood 24% 20% 17% Other 3% 4% 8% Electricity 59% 61% 57% Paraffin 4% 2% 2% Energy - Wood 26% 21% 15% Heating None 8% 13% 14% Other 3% 3% 12% Source: Statistics SA, 2012

ECONOMIC OVERVIEW The main economic sectors in Thaba Chweu Local Municipality are forestry, agriculture, mining, business services and tourism (Thaba Chweu, 2017). The landscape is dominated by commercial agriculture and forestry, with the western portion (near Mashishing) dominated by agriculture and scatter mining activities, and the eastern side (near Sabie), dominated by forestry (Thaba Chweu, 2017). Employment within Thaba Chweu comes primarily from the mining sector (23.9%), followed by trade (18.2%), community services (14.7%) and then agriculture (14.0%) (Thaba Chweu, 2017). Other sectors include private households (8.1%), manufacturing (7.0%), construction (6.0%), finance (4.7%), and transport (3.1%). Many of the large towns within Thaba Chweu depend mainly on tourism as their main economic driver, with the exception of Mashishing, which has received a boost from mining activities in the western parts of the municipality (Thaba Chweu, 2017). The Proposed Project is, therefore, likely to contribute towards local economic development through employment, local investment and procurement, and skills development.

3.3 SITE

3.3.1 LAND USE & TENURE

The area within and surrounding the Proposed Project site is rural in nature and is characterised by a mix of agricultural and mining activities. The Farm Vygenhoek is under state ownership, and is currently subject of a land claim, which has reportedly been in process since 2009 (Skaapkraal Community, 2020). The site is comprised of a mixture of formal (rural and/or traditional) and informal residential houses and homesteads, and subsistence agriculture (Figure 23). Agricultural activities on the site include extensive grazing of community cattle, and subsistence crop farming (Vygenhoek Community, 2020). The land use on land neighbouring the site include:

 Small-scale commercial fruit orchards (peaches);

 Extensive livestock grazing / open veld;

 Subsistence agriculture (maize, vegetables, livestock);

 Mining (silica, platinum, chrome);

 Formal and informal rural and farm residential.

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Figure 23 Land use within 2 km of the Proposed Project site

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There are several mines in the broader area, from two to ten kilometres from the site (and beyond). This mining is mainly for Platinum Group Metals which are being extracted along the remainder of the Eastern Limb of the Bushveld Complex, extending both south and north of the site. These activities include extraction pits, waste dams, processing plants, and associated offices and housing. The neighbouring mining activities have formal ownership of the land, as do the neighbouring farmers. Historically the communities on Farms Vygenhoek and Schaapkraal settled as farming tenants, but when farmers sold the land to the South African government as part of the “Land Reform” process, these communities remained on the sites. It is assumed that they have tenure in terms informal rights to land ownership under the Interim Protection of Informal Land Rights Act (Act 31 of 1996, as amended).

3.3.2 SETTLEMENTS AND COMMUNITIES

The settlements associated with the Proposed Project are rural in nature, and comprise traditional communities, and commercial farms (including farmhouses and farm tenants). Other potential receptors are nearby mines and accommodation associated with these mines.

VYGENHOEK COMMUNITY The main community associated with the Proposed Project is the Vygenhoek Community. The settlement referred to in this study as the “Vygenhoek Community” is located immediately south of the Proposed Project property, on Portions 2, 4, and 5 of the Farm Vygenhoek 10JT, with two houses within Portion 7. This community was established around 1973 with one family/household moving to the site. Currently the community is comprised of approximately 49 households and 245 people (5 people per household) (Protea Community, 20201). The houses in the community are constructed from a variety of materials, including brick and mortar with paint (formally farm or farm tenant houses), handmade brick and mortar, stone and mortar, “wattle and daub”, and tin and board (Figure 24). Livestock kraals or pens are constructed from locally found stones and sticks, with fencing wire erected across them (Figure 25). There are no formal basic services within the community. They obtain water from a small dam located east of the community of Farm Vygenhoek. There is no electrical supply and so residents use wood (collected from the veld) and paraffin for cooking and heating. There is also no formal sanitation, only pit latrines built by the residents. The community comprises wholly of Black African individuals, all of whom speak Sepedi (or Northern Sotho). The exact ratio of men to women in the community is unknown, but there is a higher proportion of men to women, which is atypical of many rural communities. The reason provided for this was due to the high availability of mining jobs nearby, which attracts men to move into the area. The community generally has a low level of education, with most adults having up to a Grade 10 level. There are no schools available in the immediate area, with the closest being a government boarding school located at Boschfontein (3 km from the community). A small primary school used to be located on the Vygenhoek community site, however this was closed some time (assumed several years) previous. The households within this community fall into the low-income bracket, with households earning an average of R 4000 per month. These are all male headed households. Income is generated primarily through men working at mines in the areas, specifically Booysendal and mines near Steelpoort. Approximately 30% of the total adult population is employed. The reasons for high unemployment is due to the lack of education and skills, as well as the distance from opportunities in Mashishing and lack of transport. There is little employment (seasonal or full time) on neighbouring farms. The lack of transport restricts people travelling to town for work, as only two or three people have private vehicles, and demand high rates for transport. There is no public transport to the settlement, as buses and taxis cannot travel along the unpaved roads. The only other stable source of income is social grants (child, pensioners, disability, etc.) These grants contribute significantly to the overall household income. Old

1 The number provided by the Vygenhoek Community was 120 people 28 houses; however different data was received from the Protea community representative, indicating 245 people in 49 houses. The latter was broken down by portion (Portion 2 (38), Portion 4(7) and Portion 5 (4) = 49 houses). As a house or asset register was not conducted as part of the SIA, this cannot be verified.

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age and disability grants are R 1860, childcare dependency grant is R 1860, and child support grant is R 445 per month (SA Government News ,2020).

Figure 24 Examples of houses in Vygenhoek Community

Figure 25 Subsistence agriculture in Vygenhoek Community

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HELENA SETTLEMENT There is are two small groups of houses, located 1.1 km and 1.8 km north-west of the Proposed Project site, on Portion 7 of Mareesburg 8JT. This settlement comprises two groups of houses: five in the southern group and four in the northern group, approximately 800 m apart. The inhabitants are reportedly mine employees (De Jager, 2020b), assumed to work at the Helena or other nearby mines. The community was not visited, but satellite imagery indicates that the residents conduct subsistence farming, likely to supplement their income (as other communities in the area do). The structure and demographics of these settlements is not known, but it is assumed that they will be comprise mostly of men (mine workers), possibly with a few family members (wives / women and children). The proximity of these settlements to the Proposed Project could resulting nuisance from noise, blasting and dust; however the topography between the settlement and the Proposed Project site is raised and they are on a different farm to the site with no access, and therefore are unlikely to be affected by visual and other indirect social impacts.

SKAAPKRAAL COMMUNITY The community referred to as the “Skaapkraal Community” (for the purposes of this report), is located approximately 5 km south of the Vygenhoek site on portions 1, 2, 3, 4, 5, 6, 7, 8 and 9 of Farm Schaapkraal 42JT (Figure 26). This community was established in 1964, when farm workers settled here. According to the representatives interviewed, around 2008 the farmer owners on the Farm Schaapkraal left the area, as the land was under land claim. The farm primarily cultivated peach trees, with cattle or other livestock. Some of these assets, namely the orchids, were apparently left for the farm tenants to make use of. For a number of years, the community used these assets to build a business. These trees have, however, subsequently been burnt down by another community. The Skaapkraal community comprises 46 households and approximately 277 people (average of 5.5 people per household). This community has a similar demographic to the Vygenhoek community, in other words Black African, Sepedi-speaking people, with a high ratio of male residents due to nearby mining activities. Houses are constructed from a variety of materials, including brick and mortar, stone, “wattle and daub” and tin and board. There are no formal basic services to the community. Water is collected from local streams and dams within the Skaapkraal property. There is no electrical supply and so residents use wood (collected from the veld) and paraffin for cooking and heating. There is also no formal sanitation, only pit latrines built by the residents. There is approximately 40% employment within the community, with a total of 45 people employed full time. Approximately 50 people are employed on a temporary basis. Most employment is through the neighbouring mines, namely Booysendal and Everest. Around 2012, new people started moving into the area (on the Vygenhoek property) and apparently sabotaged the community assets (i.e. burnt the peach trees). This caused significant conflict between the two communities. This has apparently subsequently subsided, and the people who moved into the area in 2012 have left again. Recently the Vygenhoek Community (original group) and the Skaapkraal Community have come together to form the “Protea Community” (refer to Section 3.3.4).

INFORMAL There is a small informal community located approximately 3 km south of the Proposed Project site, on Portion 12 of Farm Schaapkraal (Figure 26). This settlement is comprised of between 80 and 100 informal tin structures (estimated from Google Earth). This group of people settled here in 2013 (as per Google Earth), and it is thought the reason for people moving onto this site was either establish a claim on the land or to work in the proposed mines, namely Ba-Choma Silica mine situated on portion 1 of Vygenhoek or the platinum mine previously proposed on Portion 7 and 3 of Vygenhoek. It was not possible to interview representatives from this settlement, as very few people occupy the settlement. According to the Protea Community representative, many people have moved out of the site in recent years. The settlement does not form part of the Protea Community and are considered outsiders by this community.

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Figure 26 Key communities relating to the Proposed Project Site

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OSHOEK ROAD FARMS The road between Vygenhoek Farm and the Sekhukhune Road, which is the likely road to be used by the proposed mine (trucks and other vehicles) is called Oshoek Road (Figure 26). This stretch of road transverses or serves the following farms:

 Skaapkraal 42JT (Portion 11);

 Bergkant 41JT; and

 Boschfontein 15J (portions 3, 4, 5, 40, 11, 40). The nature of the communities along this road are assumed to be mostly farm tenants (low-income) and one formal farmhouse (medium to high income) near to Sekhukhune Road. Farming activities appear to include orchids and extensive cattle grazing.

OTHER SETTLEMENTS There are various farming settlements in the broader study area located between 5 and 10 km east and south of the Proposed Project site (area of Indirect Impact) (Figure 27). To the east, there is concentration of settlement along the Sekhukhune Road. These settlements consist of formal farming settlements (large farmhouses and associated buildings), farm tenant settlements, and small informal settlements. The distance to Mashishing and other centres means that these communities are likely to be self-reliant or reliant on farms for basic services. While these were not investigated in detail, it is assumed that these communities rely on local commercial farming, mining and other businesses for employment. The scattered informal or traditional settlements are likely to rely on some level of subsistence farming to sustain their livelihoods (evident through observation and satellite imagery). There is an older (assumed former farming) community located on Farm Sterkfontein (53JT) near the Everest Mine to the south of the Proposed Project site. This community comprises a mix of formal and traditional housing and has formal infrastructure such as a community hall or offices and appears to be supported by the Northam mining group (Booysendal and Everest mines). To the northwest of the Proposed Project site are also formal mining housing near to the Steelport mines. These are likely to be self-contained and run by the relevant mining operations. Small rural farming settlements are also noted to the west of the site, which are likely to be self-contained and reliant on farm infrastructure and subsistence agricultural.

3.3.3 INFRASTRUCTURE

There is little formal public infrastructure, other than roads, within the local area. Most businesses are likely to rely on private resources for basic services (e.g. boreholes and generators), with a few connected to government services (e.g. Eskom) along the main roads. Informal and traditional settlements are likely to rely on self-built infrastructure (e.g. water pipelines and sanitation) or communal resources (e.g. dams and foraged wood) for basic service. There are no formal shops or other public infrastructure within in the study area. The only exceptions are a South Africa Police Services Station at Maartenshoop, as well as a pharmacy, farm shops and guest lodges near Maartenshoop and along the secondary road to the east. There are no permanent clinics or other public health facilities, but a mobile clinic visits the area once a month (Skaapkraal Community, 2020). There is one government school located at Boschfontein that is used by the farm communities. There is also Shanga Primary located at Maartenshoop. The next closest schools (government and private) are located in Mashishing. There is a Technical and Vocational Education and Training (TVET) college also located in Mashishing.

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Figure 27 Broader settlements and activities associated with Vygenhoek Mine

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3.3.4 SOCIAL AND POLITICAL STRUCTURES

The formal authority in this region is the regulated municipal structure, which means that a Ward Councillor and Ward Committee is responsible for representing and engaging with the local communities. The Proposed Project site falls within the jurisdiction of the Bantau ba ga Choma Royal Family, under the Pakaneng area. This traditional authority, by agreement in October 2020 became the key contact for local communities related to the Proposed Project Site (refer to Section 4.3.2). There is also a local Community Based Organisation, namely the Protea Community Forum. This group consists of two communities, on the farms Vygenhoek and Schaapkraal (referred to as “Vygenhoek” and “Skaapkraal” Communities in this report). These communities were previously in conflict (due to land and socio-political issue) but have recently come together to form a single community to represents their social and economic interest. There is a formal structure including a chairperson, secretary, and treasurer. The Vygenhoek community has their own internal communications structure, however this is less formal and relies on internal social and political structures. The key communications structures for the above communities and organisations is provided in Section 7.1.4.

3.3.5 LOCAL ECONOMIC ACTIVITIES

There are two key types of economic activities in the study area, namely mining and agriculture.

MINING There are several mines within 10 km of the Proposed Project site, as described in Table 8 (refer to Figure 10). This mining is mainly for Platinum Group Metals (PGM) and chrome which are being extracted along the eastern limb of the Bushveld Complex, extending the border south and north of the site. The majority of these operations are underground mines, with associated processing and waste storage facilities. Table 8 Overview of mining operations within 10 km of site Location Operation Operator Operation Type Commodity/ies Booysendal UG2 North Northam Platinum Underground South- Limited (Indirect) Booysendal Merensky North Underground PGM west Booysendal Platinum Everest / Booysendal South Proprietary Ltd. (Direct) Underground Helena Chrome Mine Underground Magareng Chrome Mine Glencore South Africa Processing Chrome North- Thorncliffe Chrome Mine Underground west Mototolo (Borwa and Lebowa Anglo Platinum and Underground Platinum Mines and Mototolo PGM Xstrata Alloys JV Concentrator) Processing Unknown (operations South Ba-Choma Open cast Silica have ceased)

There are several chrome, ferrochrome and platinum mines located further north of the abovementioned operations within the Steelport area in Limpopo, namely:

 Dwarsrivier Chrome Mine (Assmang)

 Tweefotnein Chrome Mine (Samancor)

 Tubatse Ferrochrome Mine (Samancor)

 Two Rivers platinum Mine (African Rainbow Minerals/Implats)

 Modikwa platinum Mine (African Rainbow Minerals/AngloPlatinum)

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 Lion Ferrochrome smelter (Glencore/Merafe Chrome) The above mining operations provide a high number of employment opportunities for local communities within the study area and support the economy of Mashishing.

AGRICULTURE The agriculture within the study area appears to be scattered. The main type of farming includes extensive livestock (mainly cattle), maize and vegetables for subsistence purposes, and commercial fruit orchards and other crops (e.g. nuts and soya).

TOURISM There are three identified guest houses and lodges located along the Sekhukhune road, as well as a small restaurant on the Oshoek Road. Thorncliffe Lodge and Guest Farm, and Didingwe River Lodge are located north-west of the site. Thorncliffe appears to form part of the nearby mining infrastructure (accommodation for staff and consultants), while Didingwe appears to be private. There are likely to be informal shops and taverns within the local rural communities. There is little formal tourism or recreational activities in this area, with the exception of the Buffelskloof private reserve and lodge, located over 10 km north-east of the site (north of Maartenshoop).

3.4 SOCIO-ECONOMIC POLICY AND PLANNING CONTEXT

3.4.1 NATIONAL POLICY

The national context of the SIA is based in the three key national pieces of legislation, which promote the social, economic, and environmental rights of South Africans, as described below.

CONSTITUTION OF SOUTH AFRICA (108 OF 1996) The Constitution of South Africa, and specifically the Bill of Rights, gives South Africans the right to: “an environment that is not harmful to their health or well-being; and to have the environment protected, for the benefit of present and future generations, through reasonable legislative and other measures” This right is inherent in the EIA and SIA process, and underpins the needs to link the people to the environment in which they live, in terms of sustainable development and the right to healthy living environment. The Constitution outlines the objectives and development duties of municipalities. As well as the legal rights of all South Africans. There are two provisions within the Constitution that are of specific relevance for the SIA context, namely Sections 25 and 26. as provided below: Section 25:- “(1) No one may be deprived of property except in terms of law of general application, and no law may permit arbitrary deprivation of property. (2) Property may be expropriated only in terms of general application – (a) for a public purpose or in the public interest; and (b) subject to compensation, the amount of which and the time and manner of payment of which have either been agreed by those affected or decided or approved by a court (6) a person or community whose tenure of land is legally insecure as a result of past racially discriminatory laws or practices is entitled, to the extent provided by an act of Parliament, either to tenure which is legally secure or to comparable redress” Section 26:-

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(1) Everyone has the right to have access to adequate housing. (3) No one may be evicted from their home, or have their home demolished, without an order of court made after considering all the circumstances. No legislation may permit arbitrary evictions.”

NATIONAL ENVIRONMENTAL MANAGEMENT ACT (107 OF 1998) The National Environmental Management Act (107 of 1998) (NEMA) is the overarching national legislation in terms of environmental protection and management for sustainable development. The principles that are enshrined within the NEMA speak to the need to integrate people into environmental management and ensure equitable consideration of people within sustainable development. The following NEMA principles highlight the need to include social impacts within integrated environmental management:

 Equitable access to environmental resources, benefits, and services to meet basic human needs and ensure human well-being must be pursued and special measures may be taken to ensure access thereto by categories of persons disadvantaged by unfair discrimination.

 Community wellbeing and empowerment must be promoted through environmental education, the raising of environmental awareness, the sharing of knowledge and experience and other appropriate means.

 The social, economic, and environmental impacts of activities, including disadvantages and benefits, must be considered, assessed and evaluated, and decisions must be appropriate in the light of such consideration and assessment.

 The costs of remedying pollution, environmental degradation, and consequent adverse health effects and of preventing, controlling or minimising further pollution, environmental damage or adverse health effects must be paid for by those responsible for harming the environment.

 The vital role of women and youth in environmental management and development must be recognised and their full participation therein must be promoted. The social aspects of the NEMA principles include equality, meeting basic human needs, and identifying social and economic impacts of development. The aims and objectives of the SIA study are to ensure these aspects are considered as part of the EIA and decision-making process.

a) Mineral Resources and Petroleum Development Act 2002 (MPRDA) (Act No. 28 of 2002) The MPRDA intends to:

 Make provision for equitable access to and sustainable development of the nation's mineral and petroleum resources; and

 Provide for matters connected therewith. The Act recognises the need to promote local and rural development and the social upliftment of communities affected by mining, and includes environmental, health, social and labour aspects related to the land on, adjacent or related to mining activities. The Proposed Project must be conducted in terms of the Mineral Resources and Petroleum Development Act, and therefore must take into consideration, and actively uphold, the intention of this Act.

b) South African Mining Charter (2018) The aim of the Mining Charter (2018 revision) is to facilitate sustainable transformation, growth, and development of the mining industry through the following objectives: (a) The affirmation of the internationally recognised principle of State sovereignty; its right to exercise authority and make laws within its boundaries; over the life of its country - including all its mineral wealth; (b) To deracialise ownership patterns in the mining industry through redress of past imbalances and injustices;

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(c) To substantially and meaningfully expand opportunities of Historically Disadvantaged Persons to enter the mining and minerals industry and to benefit from the exploitation of the nation's mineral resources; (d) To utilise and expand the existing skills base for the empowerment of Historically Disadvantaged Persons; (e) To advance employment and diversify the workforce to achieve competitiveness and productivity of the industry; (f) To enhance the social and economic welfare of South Africans so as to achieve social cohesion; (f) To promote sustainable growth and competitiveness of the mining industry; (g) To enable growth and development of the local mining inputs sector by leveraging the procurement spend of the mining industry; and (h) To promote beneficiation of South Africa's mineral commodities. Social management and mitigation measures, developed as part of the SIA, are aligned to the Social and Labour Plan, and therefore with the Mining Charter.

RESTITUTION OF LAND RIGHTS ACT, 1994 (ACT NO. 22 OF 1994) The aim of this Act is to provide for the restitution of rights in land, for which people and communities were dispossessed of under any racially based discriminatory law; to establish a Commission on Restitution of Land Rights and a Land Claims Court. At the time of the study, there were two conflicting land claims on portions of the Vygenhoek Farm (currently under state ownership) (Proposed Project site). It has been established, however, that both claimant communities have come together and agreed to be represented by one organisation (refer to Section 4.3.2).

INTERIM PROTECTION OF INFORMAL LAND RIGHTS ACT (ACT 31 OF 1996) Enacted in 1996, this is a piece of legislation aimed at protecting the rights of people living in former homelands, and others who had a claim to land without the protection of any formal documents (e.g. title deeds). It was due to be in force only until the end of 1997, however it has been amended and the validity extended, and is still valid. This law ensures that people cannot be forcibly removed from land to which they have a clear claim, but do not have the relevant official documentation. In doing so, it recognises informal rights by way of custom or indigenous law. At the time of the study, there was anecdotal evidence that the people living on Farm Vygenhoek had disassociated from the recognised traditional leadership of the area (Bantau ba ga Choma Royal Family) and had put in a separate land claim on the site. But as above, the claimant communities have subsequently come together and agreed to be represented by one organisation (refer to Section 4.3.2).

3.4.2 TRADITIONAL LEADERSHIP

There are two relevant acts, namely:

 Council of Traditional Leaders Act, 1997 – which provides for the establishment of a Council of Traditional Leaders and functions of the Council; and

 Traditional Leadership and Governance Framework Amendment, 2003 (Act No. 41 of 2003) – which provides for the recognition and establishment of traditional communities and councils; as well as to provide a framework for leadership and the roles and responsibilities of traditional leadership. The Vygenhoek Project is located on land owned by the Republic of South Africa within the jurisdiction of the Bantau ba ga Choma Royal Family (Kgoshi Makabatji Lazarus Choma) traditional leadership. It is therefore important to understand and work within the existing traditional leadership structures.

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3.4.3 REGIONAL PLANNING

In South Africa spatial development is guided by the National Spatial Development Perspective (NSDP). The Ehlanzeni District Municipality spatial development framework is nested within the NSDP’s principles. The NSDP proposes that several principles should be used as a guide by government when making decisions on infrastructure investment and development spending. These principles state that spatial development should, where appropriate, accommodate and promote private economic ventures, which can aid sustainable economic growth, relieve poverty, increase social investment, and improve service delivery. Spatial development translates into, and is informed by, the district and local municipality Integrated Development Plans and Local Economic Development Plans. The Proposed Project should consider municipal-level spatial and economic planning where possible.

INTEGRATED DEVELOPMENT PLAN The Ehlanzeni Integrated Development Plan (IDP) identifies that rural poverty within the municipality is generally caused by limited access to resources and an imbalance between population and resources (Ehlanzeni, 2020). In other words, the rapidly increasing rural population (both organic and in- migration), means that the limited resources available to the existing communities is decreasing and perpetuating the poverty cycle. Although mining and related activities can serve to uplift or empower communities, the lack of access to basic services and education means that rural communities remain underdeveloped. The IDP points out that poor rural areas and rural populations find themselves in a marginal situation as they are not part of the overall system (Ehlanzeni, 2020). They do not participate in the development process, either actively as producer, or passively as receiver of goods and services. Likewise, they hardly participate in the decision-making processes that govern economic and spatial development (Ehlanzeni, 2020). The result of this marginality is widespread apathy, especially among the older generation of the rural poor, and a dangerous gap between aspiration and reality among the youth (Ehlanzeni, 2020). Ehlanzeni District Municipality has a Rural Development Department that is aimed at addressing the lack of rural development (Ehlanzeni, 2020). These projects include the development of a rural Central Business District and an agriculture hub (Ehlanzeni, 2020). A review of the IDP reveals that there appears to be slow implementation of rural development strategies. Currently, the only rural development programmes appear to be pilot projects in Bushbuck Ridge and Nkomazi Local Municipalities. None of the current programmes or initiatives involve, or are near to, the Proposed project site or related communities. The Ehlanzeni IDP highlights the key needs for people in Ward 5, where the Proposed Project site and related communities are located. These include:

 Water Supply – Supply and infrastructure

 Electricity – Supply, stability, and infrastructure

 Roads and stormwater – Infrastructure and maintenance

 Sanitation – Infrastructure

 Community facilities – Infrastructure and maintenance

 Educations facilities – Infrastructure and maintenance

 Human settlements/land – housing development, maintenance, security of tenure

 Health – Facilities and management programmes The above aspects should be considered when developing corporate social responsibility or other community projects related to the Proposed Project.

SPATIAL DEVELOPMENT FRAMEWORK There is little information available on the spatial development for the Thaba Chweu Local Municipality or the Proposed Project site specifically. According to the Ehlanzeni Spatial Development Framework, the future development of Thaba Chweu is, however, anticipated to be focussed on mining (Ehlanzeni,

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2010). The town of Mashishing is earmarked for development of logistics and transport around mining (access and connectivity to other centres), municipal and social functions (Ehlanzeni, 2010). The site and surrounding areas are not earmarked specifically for development but considered rural and therefore reliant on Mashishing and other areas (e.g. Steelport in Limpopo) for services.

FUTURE ECONOMIC DEVELOPMENT The Local Economic Development Strategy (as described in the Ehlanzeni Spatial Development Framework) identifies mining (including platinum, chrome, vanadium, and iron ore (magnetite)) as one of the key sectors for growth for the district and local municipalities (Ehlanzeni, 2010). Other sectors include energy, agriculture, forestry, tourism, trade, and manufacturing (Ehlanzeni, 2010). The Local Economic Development Strategy identifies the following development opportunities which could translate to the Proposed Project:

 Agri processing (grains, fruit and nuts, vegetables, tobacco, forestry, and pulp)

 Gold (jewellery, refining, use in products e.g. electronics)

 Platinum mining (jewellery, refining, use in products e.g. electronics) The Ehlanzeni Integrated Development Plan identifies that there are a large number of mining application in the Eastern Limb of the Bushveld Complex directly west of Mashishing (Ehlanzeni, 2020). Mashishing has been earmarked for growth within mining sector, and to play a supportive role through housing, social infrastructure, economic, governance and logistics (Ehlanzeni, 2020).

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4 FINDINGS

4.1 SOCIO-ECONOMIC NEED AND DESIRABILITY

There are two aspects of the Proposed Project that are likely to have dual socio-economic outcomes, namely economic benefits through ore extraction (broad economic demand and resulting employment), and indirect socio-economic benefits through local investment and community projects.

4.1.1 BROAD ECONOMIC DEMAND

There are a number of mines in the vicinity of the Proposed Project that extract platinum group metals (PGMs) of the Eastern Limb of the Bushveld Complex. The Proposed Project will target the Rustenburg Layered Suite (UG2 Reef), which has been identified on the site over the last decade. The Proposed Project is small in size compared to other PMG mines in the area but will contribute to the overall extractive capacity of the region. Due to the small size of the operation, it is proposed that the ore will not be processed on site but sold on to a third party for processing at an existing plant. The metals that will be obtained from the ore extracted through the Proposed Project are used in a diverse range of industries. Key commodities to be extracted include:

 Platinum Group Metals:  Platinum, Palladium, Rhodium  Iridium, Ruthenium, Osmium

 Other Precious Metals (not part of the PGM’s):  Gold, Silver  Base Metals:  Nickel, Copper, Cobalt, Iron  Vanadium, Chrome The key metals (4E PGM) consist of Platinum, Palladium, Rhodium, and Gold. The key final product consumers are:

 Autocatalyst industry;

 Jewellery sector;

 Dental sector;

 Electrical / Electronics sector;

 Chemical industry; and

 Investment market. South Africa is the largest producer of platinum (and associated metals) in the world, most of which is exported for use in the above markets. According to the Minerals Council South Africa (2019), platinum mining generated R124.6 billion in sales, employed over 164 500 people (R52.1 billion in earnings), and generated R1.12 billion in royalties in South Africa. However, with the large number of constraints on the industry, including unreliable power supply, increased electricity prices, and community and labour protests, the industry has seen a decline in recent years. There has, however, been an uptake from smaller, independent companies with international investment into the sector. As the third largest contributor in the mining sector, after coal and gold, platinum remains a key resource for supporting economic development in South Africa. This demand will see local and regional employment and broader economic benefits.

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4.1.2 SOCIO-ECONOMIC NEED AND DESIRABILITY

Mining is a key contributor to the provincial, district and local economies, as highlighted in Section 3.1.2 of this report. While most of the direct economic benefits are recognised outside of the region, local socio-economic benefits can be developed through strategic planning. The development of smaller companies and mining is an important part of the local economy. These opportunities lead to increased local businesses development and general local economic development, as well as investment in rural communities and infrastructure that would not otherwise be realised. Key opportunities for local economic development through mining initiatives include local investment, skills development, infrastructure, and technology development and broadening of the supplier base (Ehlanzeni, 2020). The Proposed Project is likely to contribute towards the regional economy through direct investment and developing the mining sector. Platinum Group Metals mining and new entrants into the mainstream industry for Black Economic Empowerment are some of the aspects that could improve regional opportunities identified by the Ehlanzeni Integrated Development Plan (2020). The Proposed Project will comprise moderately sized extractive operation. This provides ore for processing at processing plants while providing an opportunity for a non-mainstream business to take part in the mining economy by not investing in extensive processing operations. In addition, Nomamix (Pty) Ltd will have a 20% shareholder, which is an all-Black African female-owned company (the majority shareholder is BCR holdings). This level of is a Broad-Based Black Economic Empowerment could potentially contribute to meeting the requirements of the Mining Charter and other economic development objectives in South Africa. In addition to direct and indirect economic benefits, the social development through the implementation of the SLP is critical. The rural communities have little or no infrastructure or employment currently. The investment in infrastructure could provide substantial upliftment for local communities. Skills development, employment and increased household income could also provide opportunities for these communities to improve their quality of life and livelihoods. Finally, the community representatives who were interviewed during the SIA study indicated a desire for the project to go ahead, as long as it provides opportunities and investment in their communities (skills, employment, infrastructure, and facilities). The high unemployment rate, low education and lack of basic infrastructure and services, means that these local communities would benefit from almost any opportunities that could be provided. It must be noted, however, that these opportunities are a trade-off for the likely degradation of the land and loss of sense of place (amongst other aspects in this rural environment). Any opportunity must be provided in a sustainable manner to ensure long-term benefits and prevent negative impacts on livelihoods and social structure.

4.2 FACTORS AFFECTING LOCAL PARTICIPATION IN THE PROJECT

On a local level, there are three communities that are likely to be impacted by the Proposed Project. These are:

1) Vygenhoek Community – (host community) located immediately adjacent to the project site (1.5 km south-east of the mine pit area, 1.1 km south of the RoM and offices, and adjacent to the access road), and is mostly likely to be directly impacted by the operations (e.g. dust, traffic, blasting, noise); 2) Informal Settlement – 4.5 km south of the site, which could be indirectly impacted (e.g. increased traffic, influx of jobseekers); and 3) Skaapkraal Community – 5 km south of the project site boundary from the site, which could be indirectly impacted through social change processes such as influx of jobseekers and traffic. Two of these communities consider themselves a single community from an organizational perspective and have called themselves the “Protea Community”. This is an informal structure formed by the community. The three groups are separated by distance from the site and have been described separately for the purpose of this report. Only the Vygenhoek and Skaapkraal communities have been engaged through the public participation process and through the social impact assessment specialist (focus group meeting with

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representatives).The informal community does not seem to have formal representation or structure and did not seem willing to engage during the SIA. The majority of the members of these communities have little education or access to infrastructure to access documents online, and so are not as well capacitated to understand the context or implications of the Proposed Project. This means that these communities have little opportunity to engage with the EIA process. Representative from Vygenhoek and Skaapkraal were interviewed to ensure that information on the current state of these communities was obtained and that information about the project was explained. It was important not to raise expectations of the Proposed Project, and therefore the majority of engagement has been through these representatives. No neighbouring farmers were engaged during the social impact assessment, as they did not engage in the public participation process and were not accessible or present during the site visit. They are unlikely to be directly impacted by the Proposed Project, with the exception of traffic and road impacts (valid for a large portion of the study area).

4.3 SOCIAL RISKS

There is some level of a social risk to any project of scale, but especially to mining projects. Social risk are aspects of the socio-economic receiving environment (including local and regional communities or stakeholders) that may represent a risk to the operational or financial viability of the project, or the owner or operator. The following risks have been identified for the Proposed Project.

4.3.1 SOCIAL LICENSE TO OPERATE – HOST COMMUNITY

The Social License to Operate is the ongoing acceptance of a project or activity by employees, stakeholders, and the general public. In mining, this is an informal social contract that aims to bridge the gap among the views of the most important stakeholders involved in mining activities (Komnitsas, 2020). In order to build social license, the proponent must ensure that they are managing and meeting the expectations of the host community (the community that is directly affected by the mining activities) and other stakeholders and prevent discontent and unrest. Loss of social license is usually a result of poor or late engagement, and a lack of transparency and understanding of the local context by the proponent. There is a high level of unemployment, and a lack of education and basic services within the local communities. Should there not be an adequate (perceived or otherwise) level of opportunities given to the local communities, there is a risk that the community could cause social unrest (e.g. protest) against the operation. There are two local events that support this: 1) The Protea Community has reportedly previously shut down a mining operation (Ba-Choma Silica) as the community was not engaged or made aware of the operation before commencement [there may be other reasons for closure, but this could not be verified]. 2) According to the Kgoshi and the Protea Community, there is currently an ongoing court case which involves a mining operation north of the proposed site (Aquarius Platinum). Communities are apparently unhappy that jobs were not given to local communities. But there is some dispute as to which communities are considered the local communities, as the traditional authority (Royal Family) sees it as their land, but the communities are made up of people from a number of areas. Without proper communication the communities may raise concerns. Grievances may include a lack of employment of people from local communities, a lack of training, education or skills development opportunities, and a lack of local economic development and/or community projects, as these are the aspects highlighted by the Protea Community representatives.

4.3.2 LAND CLAIMS AND TENSIONS

There is evidence, through discussion with community representatives and past reports, that there is currently some tension between traditional authority (Bantau ba ga Choma Royal Family) and Vygenhoek land occupants. While this tension was worse in the past, it is understood that tensions have eased in recent years and communities would be willing to work together.

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The land occupants do not fall under the Royal Family but have declared themselves independent (by way of declaration/affidavit at the local South Africa Police Services station). However, the Royal family consider the Vygenhoek Farm to fall under their jurisdiction as part of the Pakaneng Communal Property. There are two conflicting land claims apparently lodged with the Department of Rural Development and Land Reform on the Proposed Project site (Portion 3 of Farm Vygenhoek). This could have caused issues when it came to the distribution of benefits from the Proposed Project. However, this issue has seemingly been resolved through a resolution between parties, as of the 31 October 2020. This includes the following agreement: “The Bantau ba ga Choma Royal Family under Kgoshi Makabatji Lazarus Choma represent and take decision on behalf of the Bata ba ga Choma community in Pakaneng in all meetings with Nomamix and other Parties interested in doing business in Pakaneng.” This agreement means that the Bantau ba ga Choma Royal Family will be responsible for decision regarding the distribution of benefits from, and resolving issues related to, the Proposed Project. This agreement, together with the acknowledgment by both parties (being the Protea Community Forum representatives and Kgoshi Choma on behalf of the Royal Family) that it is critical that both the traditional authority and local communities be engaged simultaneously prior to the start of development, to allow for equitable discussions and opportunities. Transparent and inclusive engagement is key to prevent a flare-up of tensions in this area.

4.4 PERSPECTIVES ON THE PROPOSED PROJECT

The SIA process identified several groups of stakeholders. Each group has a specific interest or focus relating to the Proposed Project and the stakeholder’s relative location and interest in the project. A summary of the key issues raised by each group (including issues raised through the public participation process and SIA) is outlined in Table 9. Further details on these aspects are provided in the sections following. Table 9 Key stakeholders and socio-economic issues identified Stakeholder Key interests/issues Ward Councillor  Communication - Engagement with Traditional Authority  Consideration/inclusion of access road  Improved socio-economic development  Existing socio-political division of communities Bantau ba ga Choma Royal  Land Claim Family  Potential unrest (Traditional Authority)  Employment opportunities  Proper communication Vygenhoek Community  Impact on livelihoods - grazing (site)  Impact on natural resource - Air quality  Employment opportunities  Impact on houses - cracking  Community projects – services needed Skaapkraal Community  Heritage - graves (neighbouring)  Impact on houses  Impact on livelihoods - grazing  Community projects  Communication  Employment opportunities  Skills and education opportunities  Impact on natural resources - water  Land Claim  Informal Settlements

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4.4.1 COMMUNICATION

One of the key issues raised was the need to engage with the correct organisations. The complexity of land claims on the site, rural tenure (informal and traditional) and socio-political divisions (between traditional authority and communities wanting autonomy) means that communicating with the correct people throughout the EIA process and the Proposed Project needs to be addressed early. This has been addressed, and the discussed in Section 3.3.4 and Section 7.1.5. All stakeholders emphasised the need for communications to start as early as possible before the commencement of activities on site to ensure that they are engaged throughout the process. They also want to ensure that the correct people are engaged, and that employment opportunities go to the correct local communities. To this end, the Protea Community (Vygenhoek and Skaapkraal), and the Traditional Authority (Bantau ba ga Choma Royal Family) must all be engaged simultaneously. Communities want to ensure that the correct people are receiving opportunities and benefits.

4.4.2 UNREST

In the event that communication is not transparent and inclusive, there is a risk of community unrest, as has been seen in other mines in the area. Recent history of unrest includes court cases against existing mining operations in the area over jobs, and local unrest. Conflict in the past in the local area has led to the burning of fruit tree orchards (by one community to impair another) and closure of the Ba- Choma Silica mine, which is understood to be the result of the confusion over the land claim and poor engagement with communities.

4.4.3 IMPACT ON LIVELIHOODS – GRAZING

The specialist understands that the Proposed Project will take place on grazing land, which the Vygenhoek Community makes use of for grazing their cattle. The Vygenhoek community indicated that it would not be substantial and are willing to give this up for the opportunities the mine can bring. They have other areas they can graze. The site must, however, be fenced off to prevent cattle wandering to the mine operations and potentially causing an accident and loss of the cattle.

4.4.4 IMPACT ON HOUSES – CRACKING

The communities are concerned with the impact of vibrations from blasting on the houses closets to the Proposed Project site. At least half of the structures on site are built out of brick or stone and mortar, and therefore could become cracked or broken should the blasting impact the houses.

4.4.5 IMPACT ON HERITAGE – GRAVES

There are a number of graves identified within the Vygenhoek portions 3 and 7. The community asked that they be consulted prior to the commencement of operations to ensure that graves will not be affected or relocated appropriately.

4.4.6 IMPACT ON NATURAL RESOURCES – WATER

Water was not a concern for the Vygenhoek Community, as their water is sourced from a small dam located east of the settlement and mining activities, on a different catchment/tributary to the one the mine will be located on. The Protea Community did however query the sources of water for the mine; however, this is not an issue of concern as the mine will not be using large amounts of water (i.e. will not be processing on site).

4.4.7 LAND CLAIM

As per Section 4.4.7, there is a land claim on the site, and the communities want clarity on how this will be resolved, or who will receive benefits from the proposed development. Without this, as stated above, there is a high probability of social unrest or protests which could pose a risk to the Proposed Project.

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4.4.8 EMPLOYMENT, SKILLS AND EDUCATION OPPORTUNITIES

One of the key aspects of the mine is the potential employment opportunities that are anticipated by the local communities. Although the specialist informed them that there are unlikely to be many opportunities, the Protea Community indicated that the mining company must invest in Adult Basic Education and Training (ABET) to allow the local communities to have an opportunity to apply for jobs. Many of them are unemployed, and uneducated.

4.4.9 COMMUNITY PROJECTS

One of the key aspects that was referred to by all communities was the need for investment in the community. Key projects described by communities included: 1) Agriculture - investment in projects that will help communities to sustain their livelihoods and potentially develop businesses; 2) Basic Services – the local communities have no basic services provided by the municipality, and therefore any projects from water, electricity, and sanitation, to roads, sports fields and community halls would be welcome.

4.4.10 INFORMAL SETTLEMENTS

There have been two informal settlements in recent times within the study area. Both of which were established around 2012/13. These were: 1) Portion 12 of Farm Schaapkraal – between 80 and 100 structures still present and partially occupied near to the (now closed) Ba-Choma Silica mine; and 2) Portion 7 of Farm Vygenhoek – in the south-west corner of the Proposed Project site, which is no longer present. The reason for these informal settlements could not be verified, however the most likely explanation2 was that there were two projects underway at that time. Firstly, the development of the Ba-Choma Silica Mine on Portion 1 of Vygenhoek, and secondly the EIA process for a platinum mine on Vygenhoek (a similar operation to the Proposed Project which was never developed). It is likely that these two projects attracted jobseekers to the area creating these informal settlements. A second reason given3 was that the people that settled were supporting a land claim on one or both of the farms. It is highly likely that the Proposed Project will attract jobseekers and informal settlements comprising of “outsiders” to the local area. This can cause social tensions and competition for jobs and other resources. However, the agreement between the Bantau ba ga Choma Royal Family and local communities in October 2020 (refer to Section 4.3.2) may prevent further informal settlements by land claimants. Both Vygenhoek and Schaapkraal are however state-owned (under land claim) and so direct intervention by the government is unlikely without careful engagement and management, so the risk remains. The informal settlement on Schaapkraal has a number of structures, but many are standing empty as people have moved away from the area. The empty structures could attract informal settlers/jobseekers and grow should influx not be managed effectively.

4.5 REVIEW OF SPECIALIST STUDIES

A review of the other specialist studies related to the EIA process was conducted to identify potential indirect social or socio-economic aspects and impacts that may result from the Proposed Project. A summary of the key findings of each of the reviewed studies is provided in Appendix B, and a summary of their “socio-economic relevance“ of these findings is provided in Table 10. Only the studies

2 determined through discussions with stakeholders and review of imagery and reports 3 raised by one stakeholder interviewed

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Table 10 Summary of relevance of other specialist studies Study Relevance for the SIA Social and Two of the key aspects of the Proposed Project that will benefit local communities and off-set Labour Plan the anticipated negative impacts, are employment and local economic development (including (SLP) social investment and local procurement). (Nomamix, The proposals outlined in the SLP provides a sound foundation for maximising the benefits to 2020) the local communities through employment and investment in existing and potential businesses. Implementation, engagement, and alignment with local organisations is critical to ensure that these benefits are sustainable (i.e. last past the project life) through the development of local skills and businesses. Air Quality Dust emissions could potentially be a health concern and nuisance to the primary receptors Impact located immediately south of the Proposed Project (Vygenhoek Community). In addition, dust Assessment could cover crops adjacent to the access road, reducing yields and affecting subsistence livelihoods for this community. (Rayten Environmental, The AQIA indicates that the concentrations at this community are unlikely to be significant, as 2020) the prevailing winds will move dust emission in the opposite direction (towards the north-wets of the site), and therefore are unlikely to affect the community health. The mining activities located north-west of the site may incur higher than normal dust emissions, but with monitoring and dust suppression, this is unlikely to have a significant impact on the people working or living near these mines. Visual Impact The location of the Proposed Project within a valley, together with naturally occurring Assessment vegetation and other aspects, prevents significant visual impacts on receptors beyond the immediate vicinity (2 km) of the proposed project. (LOGIS, 2020) The highest visual impact is anticipated to be the change in visual and aesthetic environment for the Vygenhoek Community located immediately south of the Proposed Project site. This community is within a direct line of sight of the mining activities and make use of the surrounding land surrounding the site for their livelihoods (gazing, crop farming) and other activities. This change is likely to alter how these people experience their environment (phycological impact) as a result of a loss of natural landscape and change in nature of the area over the ten or more years of visual impact (mining activities and rehabilitation). This change is unlikely, however, to have a significant impact on their livelihoods as they do not rely on the visual landscape for income. Health Impact The impact of the Proposed Project on the current and future state of health of local Assessment communities is a key aspect of ensuring sustainable socio-economic development. The key concerns of the Health Impact Assessment were around communicable diseases due to an (Adaptera influx of jobseekers and labour, and accident and injuries as a result of operations and traffic. Strategic Management of these issues through mitigation measures and engagement with communities Support should minimise the risk but is unlikely to eliminate it. Services, 2020) Any loss of life or injury, exacerbated by the lack of access to medical facilities, could severely inhibit the livelihoods of individual or multiple households in the local rural communities. This is due to the high unemployment, low income, and strong interdependence of households in these communities. Blasting The Blasting Impact Assessment indicates that the houses within 1.6 - 2 km (Vygenhoek Impact Community) of the proposed operations are likely to respond to blasting activities and they are Assessment likely to sense the ground vibrations caused by blasting. The study states that it is unlikely that blasting will impact the houses and other structures within the Vygenhoek Community (De Jager, through air blast or ground vibration. 2020a) Despite this it should be noted that the proximity of the blasting to this community is of concern from a social perspective, as the loss of houses, or even damage to structures, could significantly impact on these marginal, low-income communities. In addition, the sound from blasting and the perceived impacts could cause phycological issues such as anxiety for people living close to the site. Noise Impact Noise impacts could affect the “physiological and/or psychological well-being of people or Assessment disturb or impair the convenience or peace” (De Jager, 2020b) of people living near the Proposed Project. The impact of noise is apparently unlikely to disrupt the day-to-day

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(De Jager, experience of people in the Vygenhoek community, with a low significance (near roads) to 2020b) insignificant (away from roads) (excluding blasting). The noise study points out that the acceptability of higher noise levels is relative to the person hearing it. The community indicated that noise was expected but the economic benefits would possibly outweigh any nuisance/disruption. Heritage The findings indicate that there are a significant number of heritage resources located within Impact the study area, and a number of culturally and historically important resources, such as burial Assessment sites, are located within the operational footprint of the Proposed Project. The current local social structures may not entirely recognise all identified features as culturally significant (due to the ongoing socio-political issues); however the long-term and inherent significance of these resources in terms of cultural and historical importance could still evoke substantial opposition if communities and traditional authorities are not engaged comprehensively and the resources are not managed appropriately. The historical ties of the site with the Bantau ba ga Choma Royal Family, as well as many other historical and archaeological aspects, must be preserved for its inherent and intangible value, as well as current socio-cultural value. While these aspects are unlikely to have a direct socio-economic impact, the potential indirect impacts on the local communities and broader traditional communities could result in a breakdown of traditional culture and heritage, and potentially impact on social structure, and potentially threaten the Proposed Project as a result. Traffic Impact The Proposed Project is unlikely to increase traffic on the D212 (Sekhukhune Road) Assessment significantly above the current levels and this road has sufficient capacity to accommodate this increase. The existing intersection between Road D212 (Sekhukhune Road) and D874 (Siyazi (Oshoek Road) requires intervention under current levels due to traffic risks of turning into Limpopo Oshoek Road from the northern carriageway. There is currently no dedicated right-turning Consulting, lane, which could result in accidents. This is currently a high-risk road due to the high volume 2020) of vehicles (heavy mining vehicles and light commuter vehicles) that travel to and from Steelpoort. The Proposed Project is likely to have a minor impact on volumes but will require the upgrade of this intersection to reduce public risk. There is likely to be an impact on the Road D874 (Oshoek Road) and the Local Road (Vygenhoek Road) as these are unpaved and are currently affected by erosion. In addition, there are likely to be increased safety risks and nuisance from increased traffic that could affect the scattered settlements located alongside them. Higher traffic (specifically heavy vehicles) could lead to further erosion and dust emissions which would affect the local communities through decreased road access and nuisance respectively. The recommendations of the Traffic Impact Assessment should mitigate the anticipated socio- economic impacts from traffic on the local communities and broader public. Specifically road safety awareness training, the upgrade of the main intersection with Sekhukhune Road, the rehabilitation of Oshoek Road and dust suppression.

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5 IMPACT ASSESSMENT

The impact assessment includes the socio-economic impacts of the proposed layout, site, and technology as the only and preferred alternative for the Proposed Project (as provided in Section 1.2). In addition, a detailed assessment of the “No-Go” alternative, and an overview of the likely impacts of the alternatives assessed during the EIA process is provided. The impact assessment considers the construction, operational, decommissioning (closure), and cumulative impacts of the Proposed Project.

5.1 ALTERNATIVE 1 (PREFERRED ALTERNATIVE)

5.1.1 CONSTRUCTION PHASE (SITE ESTABLISHMENT)

I. INCREASED EMPLOYMENT OPPORTUNITIES Description The construction phase is likely to see limited direct employment (number unknown), as the site setup is likely to include development of access roads, offices, workshop, lighting, the weighbridge, and pit preparation works. The site establishment phase is anticipated to take five months, with the overburden stripping commencing taking place in the months six to eight. The high rate of unemployment in the local area, coupled with the low skills levels, is likely to mean that very few people from the neighbouring communities will be able to be employed for this work as it is mostly skilled. Employment is also anticipated to be conducted through contractors, who may have an existing staff compliment, and so few new, local opportunities are likely to be generated during this phase. The loss of labour from local farms is often a concern with greenfield mining developments in undeveloped areas, such as the Proposed Project site. There could potentially be a loss of one or two farm staff during the construction phase, however, this is not anticipated to be significant, due to the skilled nature of the work. Indirect employment (or local multiplier effect) may be possible, should contractors or suppliers be in the position to offer local communities unskilled jobs. It is anticipated that this will also not be significant, as existing contractors and suppliers are likely to be used. Potential The impact is likely to be very low. As the opportunities are likely to be short-term, and Impact few in number. Mitigation Refer to the Social Management Plan for details (Section 7.1.1), including:

 Maximise and monitor local recruitment.

 Consultation with local communities

 Ensure local services providers are appointed.

 Prevent nepotism / corruption.

 Establish a liaison point with the adjacent farming

 Implement Community Plans (Section 7.1.5) Overall Should the above mitigation measures be put in place ait is anticipated that a s lightly Impact higher number of local employment opportunities will be generated. This impact is likely to remain low, as it will be short-term, and the scale of the construction phase is small.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Very Low High Very Low Low Low Very Low Positive With Very Low High Very Low Low High Low Positive

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II. INCREASED LOCAL ECONOMIC DEVELOPMENT OPPORTUNITIES Description The total expected expenditure for site establishment (construction phase) is estimated at six million rand. Services are likely to include the provision of construction materials, machinery and equipment, and labour and professional services for site establishment. The local procurement of materials and services could benefit local businesses and indirectly provide employment and improved local spending in the short-term through the local multiplier effect. Potential As the types of services required during construction are unlikely to exist locally (near Impact to the site), these benefits may be realised on a regional or national level. The size of the Proposed Project is not extensive, and duration of construction is short- term (five to eight months). The impact on local economic development is likely to be of very low significance. Mitigation Refer to the Social Management Plan for details (Section 7.1.1), including:

 Ensure that goods and services are procured locally, as far as possible. Overall Should goods and services be sourced locally, then the potential for economic Impact benefits to be realised locally could improve, but only marginally due to the small scale of the project and short construction phase. Little significant change is likely to occur.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Very Low High Very Low Low Low Very Low Positive With Very Low High Very Low Low Medium Very Low Positive

III. REDUCED ACCESS TO LIVELIHOOD RESOURCES Description The community representatives (Vygenhoek and Skaapkraal) indicated that the site is used for grazing on an ad hoc basis, sourcing of plants used in traditional medicine and the collection of firewood. Construction activities will require the securing of certain portions of the site, which will mean that communities (specifically Vygenhoek) will no longer have access to these natural resources. In addition, there is the potential for the loss of access to income through aspects such as poor health (e.g. communicable diseases, respiratory illness), injury, or death of a wage earner (e.g. accidents, unrest). This could result in a loss of income for one or more households due to their strong interdepended and subsistence livelihoods. Potential The loss of this land for livelihood activities could impact on the communities near the Impact site, as they will no longer have access to these resources. The communities were not clear as to the likely impact, but they indicate that it would not significantly reduce the potential for the communities to meet their immediate needs. The marginal, low-income nature of these communities means that they are highly susceptible to changes in income and should the activities on site result in accident, injury of loss of finances or livelihoods for one or more households, this could place a higher burden on other households to support them. This social burden could have additional impacts and negatively affect the broader community. The potential for these impacts to occur is likely to endure for the construction and could impact a number of settlements near to the Proposed Project over a long period (e.g. permanent loss of income due to injury). The likelihood of these impacts occurring during construction is low due to the short-term nature and low level of activities during this phase. Mitigation Refer to the Social Management Plan for details (Section 7.1.1), including:

 Engaged with the representatives and elders of local communities,

 Fence off and secure the construction areas

 Implement Community Plans (Section 7.1.5)

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Overall Implementation of the above mitigation will not prevent the loss of access to livelihood Impact resources, however, could minimise the potential sever adverse impacts of the construction phase. The overall impact is likely to be of low significance.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Very High High High Very High Very Low Medium Negative With High High Medium High Very Low Low Negative

IV. INCREASED PRESSURE ON RESOURCES Description The commencement of most mining activities in South Africa is known to attracted jobseekers to the project area, which in turn can result in the establishment of informal settlements and related impacts. An influx of people to the area prior to or during construction is highly likely given the recent history of the area, with two cases of informal settlements in the immediate vicinity of the Proposed Project (refer to Section 4.4.10). In addition, there is currently a land claim on the site, which has resulted in people moving on to the Vygenhoek Farm as claimants of the land. A new mining operation is likely to result in a resurgence of land claimants on the property or Farm. The aspect of main concern is the potential loss of employment opportunities for existing communities. In addition, other resources, such as firewood and water, could also be put under pressure with an increase in people in the immediate area. An influx of people is likely to start before or during the construction phase and could continue throughout the operational phase. Potential The high probability of people moving into the immediate vicinity of the Proposed Impact Project, even temporarily (5-10 years), could impact on the current livelihoods (natural resources use) and potential livelihoods (employment and other benefits from the Proposed Project) of the communities (Vygenhoek and Skaapkraal) in the local area. These communities are considered low-income, with marginal livelihoods (subsistence farming, no basic services, with low education and high unemployment), and therefore could be significantly impacted by changes in the socio-economic environment. Mitigation Refer to the Social Management Plan for details (Section 7.1.1) and implement Community Plans (Section 7.1.5), including:

 Maximise local employment

 Understand current needs of the local communities and monitor that these are not being negatively impacted.

 Engage local government and stakeholders to foster transparent engagement.

 Develop influx and informal settling control plan.

 Establish relationships with local police and community policing forums. Overall The influx of jobseekers cannot be directly controlled by the proponent, as people may Impact not settle on the site, but in adjacent areas on other farms. The implementation of mitigation measures may assist with reducing the number of people and duration of informal settlements, there is still a medium probability that this is influx is likely to occur.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without High High Medium High High High Negative With Medium High Medium High Medium Medium Negative

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V. INCREASED COMMUNITY CONFLICT Description The influx of jobseekers, increased pressure on resources, and competition for employment and benefits could result in social and political conflict. Conflict in the past in the local area has led to the burning of fruit tree orchards (by one community to impair another) and closure of the Ba-Choma Silica mine, which is understood to be the result of the confusion over the land claim and poor engagement with communities. This type of conflict can lead to loss of assets (e.g. theft/arson), loss of social cohesion, and unrest. Potential An increase in social conflict could impact on communities living near to the site, as Impact well as potentially impact on the Proposed Project through protests and strikes. This could commence before or during construction, and last for the duration of the operational phase if not managed appropriately and have a high impact on the structure and livelihoods of the local communities. Mitigation Refer to the Social Management Plan for details (Section 7.1.1) and implement Community Plans (Section 7.1.5), including:

 Maximise local employment

 Engage local government and stakeholders to foster transparent engagement.

 Develop influx and informal settling control plan.

 Establish relationships with local police and community policing forums. Overall Should the above mitigation measures be implemented effectively, there is likely to be Impact a reduction in the potential for conflict and a reduction in the significance of the indirect impacts on the local communities. The overall impact is likely to be of low significance.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without High High Medium High High High Negative With Medium High Low Medium Medium Low Negative

VI. INCREASED SOCIAL PATHOLOGIES Description An increase in the number of outsiders (including the presence of workers during shifts and jobseekers moving into an area associated with mining) can create an environment that spreads social pathologies and ills. These are social factors, such a substance abuse, crime, gender-based violence and anti-social behaviour that can breakdown the normal structure of a community and reduce quality of life for local residents. It is understood that mine labour and staff will not be housed on or near the site, and the number of workers for construction is likely to be very low. As discussed previously, however, there is a high potential for land claimants and jobseekers to move into the local area as a result of the Proposed Project. The latter is most likely to have an impact on the local social structure. Previous informal settlements have remained discreet from existing communities on Vygenhoek and Skaapkraal farms, and do not appear to have interfered with the social structure or make up of these communities. Potential The likely impact on social cohesion and quality of life is likely to be minimal, although Impact a higher influx of people and pressure on resources, competition for employment and conflict could all contribute to higher rates of social ills. Mitigation Refer to the Social Management Plan for details (Section 7.1.1) and implement Community Plans (Section 7.1.5), including:

 Provide access to information and create awareness.

 Develop and implement Communications Plan, Complaints Procedure and Community Health and Safety Plan.

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 Partner with local policing and local health services. Overall Should the influx of jobseekers be managed through the above mitigation, it is possible Impact that the impact on the structure and quality of life for the local communities will be low.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Medium High Medium High Medium Medium Negative With Low High Medium Medium Low Low Negative

5.1.2 OPERATIONAL PHASE

I. INCREASED EMPLOYMENT OPPORTUNITIES Description The operational phase is anticipated to employ 14 professional/management/highly skilled people directly through BRC Holdings (majority shareholder of Nomamix), and 44 people through a contractor. The latter will comprise existing contractor staff, but this will transition over to locally sourced employment who are appropriately skilled after the first year of operation. The total new opportunities are likely to have the most benefit to the local communities, but all employment over the ten-year operational phase are likely to benefit the local economy through the multiplier effect and have broader positive socio-economic implications. Employment for local communities is critical of the success of the operation, as not only will they meet the requirements of the Mineral and Petroleum Resources Development Act, but also to ensure local communities are included and helps create a “social licence to operate” within the local context and prevent unrest or conflict. The local communities have a high unemployment rate, and low education levels, and so skills development and engagement are key to ensuring local employment benefits are realised. Potential It is anticipated that a limited number of labour opportunities will be realised by the Impact local communities (Vygenhoek and Skaapkraal), while the majority of new employment will benefit the broader population (regional). If 10% (four to five jobs) (a random assumption based on the low level of skills and education in the local communities) are realised, then up to 20 people (average of four people per household) within the communities could be positively impacted. This impact is likely to be small but meaningful for these communities. Mitigation Refer to the Social Management Plan for details (Section 7.1.2) and implement Community Plans (Section 7.1.5), including:

 Maximise and monitor local recruitment.

 Consultation with local municipality, Department of Labour, and local communities.

 Prevent nepotism / corruption.

 Ensure implementation of the Social and Labour Plan. Overall Should the actual number of people employed by the mine increase as a result of Impact mitigation, the impact on households and quality of life for these households could be more substantial. It is unlikely to transform the community as a whole but would provide noticeable benefits over the life of the mine. In addition, should skills of the employed individuals be developed, the long-terms benefits would improve substantially.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Low High Medium Medium Very Low Low Positive With Medium High Medium High Medium Medium Positive

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II. INCREASED LOCAL ECONOMIC DEVELOPMENT OPPORTUNITIES Description There are two aspects of local economic development that are likely to benefit from the Proposed Project. Firstly, the indirect opportunities through promoting local procurement and spend, and secondly, the direct investment by the proponent into the development of an agricultural node and assistance of formal and informal farmers to develop sustainable businesses (refer to Section 0). The operational phase is likely to require ongoing goods and services to be provided through contractors and suppliers. The total spend on outside service providers is anticipated to be approximately R 2.9 million per year over the ten-year duration of the mine. The use of local businesses, and the subsequent economic benefits, could boost the local economy. Most of this benefit is likely to be recognised in the Lydenburg area (nearest urban and supply centre), so within the Thaba Chweu Local Municipality, but also at a regional level (other areas such as Limpopo and Gauteng). The scale of the Proposed Project is medium (smaller than the larger mining operations in the area), and so the economic impact is unlikely to be significant on a regional level. The local impact on could be beneficial through employment and local revenue and spend. The direct investment into the development of an agricultural hub and local farmers has the potential to improve the standard of living for a number of households within the local communities through skills development, and income generation. This is, however, likely to be limited by a number of factors. These factors include firstly proper engagement with local communities to ensure benefits are realised by the most appropriate communities or individuals, and secondly ensuring that skills development and self-sufficiency are suitably developed to ensure sustainability of the business/es. Potential The potential benefits to local economic development is likely to low as goods and Impact services may not be available within the local area (Local Municipality). But any spend would provide a positive impact. Direct investment is likely to have a higher impact if it provides a long-term source of employment and income. Mitigation Refer to the Social Management Plan for details (Section 7.1.2) and implement Community Plans (Section 7.1.5), including:

 Ensure that goods and services are procured locally, as far as possible by:

 Maximise (through empowerment) and monitor local content, where possible.

 Ensure development initiatives set out in the Social and Labour Plan are sustainably implemented.

 Manage community expectations. Overall The overall impact, should local empowerment and procurement occur, is likely to be Impact medium significance if implemented effectively. The provision of goods and services is unlikely to change the nature of the local economic environment significantly, but the implementation of the agricultural hub could provide significant benefits for local communities.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Low Medium Medium Medium Low Low Positive With Medium Medium Medium Medium High Medium Positive

VII. REDUCED ACCESS TO LIVELIHOOD RESOURCES Description As with the construction phase, the operational activities will require securing the site, which is used on an ad hoc basis by local communities to support their subsistence livelihoods, including collection of firewood and traditional medicines (herbs), and grazing.

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The higher level of activity, traffic and jobseekers during operational phase is likely to increase the potential for impacts on public health and safety. This could lead to an increased financial burden for local communities due to a loss of wage-earners (through illness, injury, or death) and the cost of accessing medical care. Potential The loss of this land for livelihood activities could impact on the communities near the Impact site, as they will no longer have access to these resources. The communities were not clear as to the actual impact, but they indicate that it would not significantly reduce the potential for the communities to meet their immediate needs. The marginal, low-income nature of these communities means that they are highly susceptible to changes in income and should the activities related to the Proposed Project result in accident, injury of loss of finances for one or more households, this could place a higher burden on other households to support them. This social burden could have additional impacts and negatively affect the broader community. The potential for this impact is likely to be present for the duration of the operational phase phases and could impact a number of settlements near to the Proposed Project over a long period. Mitigation Refer to the Social Management Plan for details (Section 7.1.2) and implement Community Plans (Section 7.1.5), including:

 Engaged and work with local communities.

 Develop and implement community plans, including Communications Plan, Complaints Procedure and Community Health and Safety Plan. Overall Implementation of the above mitigation will not prevent the loss of access to livelihood Impact resources, however, could minimise the potential sever adverse impacts of the operational phase and minimise public health and safety impacts. The overall impact is likely to be of medium significance.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Very High High High Very High Very Low Medium Negative With High High Medium High Very Low Low Negative

III. INCREASED NUISANCE AND DISRUPTION Description The operating times will be a production shift cycle operating nine hours a day, six days a week. The Proposed Project is likely to change the nature of the area for the Vygenhoek Community, as the operations will occur close to the Vygenhoek Community. This includes blasting within 1.5 km and waste rock dump (WRD) within 1.4 km of the closest house and 2.8 m of the bulk of the Vygenhoek community. In addition, trucks and other vehicles will access the operations along the access road which in close proximity to several houses. The influx of jobseekers and informal settlements in the area could put pressure on local resources, create social conflict and increase the likelihood of social ills. These aspects could further disrupt the social structures and livelihoods of the Vygenhoek and other communities in the area. The environment of the Vygenhoek Community is currently characterised by quiet, remote subsistence farming community, with no regular traffic, equipment or activities occurring within several kilometres. The air quality is unlikely to change significantly for the Vygenhoek community (Rayten Environmental, 2020); however noise emissions are likely impact houses near to the access roads (De Jager, 2020b). The Vygenhoek Community as they are within 1.6 and 2 Km of the blasting activities, and so may notice and respond to noise and vibrations from blasting activities (De Jager, 2020a). it is, however, unlikely that blasting will impact the houses and other structures within the Vygenhoek Community through air blast or ground vibration (De Jager, 2020a).

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The impact of mine traffic along the access road is likely to disturb communities through noise, emissions, and risk of accidents. Although the level of traffic is anticipated to be low, the change in the nature of the area with the new mining activities is likely to disrupt the Vygenhoek Community, as it is near to the access road. The change in the physical environment, including dust, vehicle emissions, noise, and influx of jobseekers and informal settlements are expected to change the day-to-day living of this community. While the community is mainly concerned about air quality and cracking of houses, they apparently welcome the opportunities that the mine could bring, and therefore willing to tolerate these changes. Potential The changes in the physical environment are likely to and change in nature of the area Impact and sense of place for the Vygenhoek community, for the duration of the operations (10 years). While the change in nature of the area will be largely tolerated for economic benefits, extraordinary disturbance or disruption to local communities could have a significant impact on livelihoods and social cohesion (e.g. physiological and phycological impacts). Normal procedures and guards implemented by the mine should prevent some of these issues, resulting in a lower likelihood, and medium significance. Mitigation Refer to the Social Management Plan for details (Section 7.1.2) and implement Community Plans (Section 7.1.5), including:

 Ensure mitigation for environmental nuisances are implemented effectively.

 Prevent influx of job seekers.

 Develop and implement community plans, including Communications Plan, Complaints Procedure and Community Health and Safety Plan. Overall The prevention of nuisances and disturbance to the local communities will ensure the Impact long-term cohesion and access to livelihoods required to maintain the state of these communities. The above mitigation should ensure that this is minimise to a low significance.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without High Medium Medium High Medium Medium Negative With Medium Medium Medium Medium Low Low Negative

IV. INDIRECT DAMAGE TO/LOSS OF ASSETS Description There are three aspects related to the Proposed Project that could affect the Vygenhoek Community, namely: damage to houses from blasting, loss or damage to livestock and crops due to mining activities. The Vygenhoek Community is located between 1.5 km and 3 km from the pit area of the mine, and blasting is anticipated to take place twice per week. De Jager (2020) indicates that blasting is not likely to affect the structures within Vygenhoek, but this community is likely to sense ground vibrations and air blast up to at least 1.6 km from the pit area. Despite this it should be noted that the proximity of the blasting to this community is of concern from a social perspective, as the loss of houses, or even damage to structures, could significantly impact on these marginal, low-income communities. In addition, the sound from blasting and the perceived impacts could cause phycological issues such as anxiety for people living close to the site. While blast and vibration is unlikely to impact livestock (BHP, 2009), should livestock wander into the active mining area or onto the access road, they could be injured or killed by machinery or falling into open pits, and the Blasting Impact Assessment (De Jager, 2020) advises that they be kept away from blasting areas during detonations. Finally, the loss of livelihoods could also be caused by aspects such as dust emissions from vehicles moving along the unpaved access roads. Should excess dust be

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generated, this could settle on crops adjacent to the access road, reducing yields and affecting subsistence livelihoods for this community. Potential The damage to or loss of a structures, livestock, or crops, and the cost of repair or Impact replacement, could have a substantial impact on the Vygenhoek Community, as they have a marginal livelihood (low income, and reliant on subsistence agriculture). The potential impacts is therefore considered high. Mitigation Refer to the Social Management Plan for details (Section 7.1.2) and implement Community Plans (Section 7.1.5), including:

 Following mitigation provided in the Blasting Impact Assessment,

 Controlled access within the blasting area.

 Schedule blasting activities at reasonable times.

 Develop a blasting schedule.

 Establish and secure a safe blasting buffer.

 Pre-emptive documenting of houses and structures near to the operations.

 Independent verification of any damage to structures or loss of assets and compensation or replacement.

 Regular dust suppression along the access road.

 Develop and implement community plans, including Communications Plan, Complaints Procedure and Community Health and Safety Plan. Overall Should adequate mitigation be put in place, including the replacement of, or Impact compensation for, lost assets, the overall impact should be reduced to a medium significance on the Vygenhoek Community, as although there is a lower probability the intensity of these types of impacts remains high due to the vulnerability of this community.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without High Medium High High High High Negative With High Medium High High Medium Medium Negative

5.1.3 DECOMMISSIONING PHASE (CLOSURE)

I. LOSS OF PERMANENT JOBS Description The total number of employment opportunities is anticipated to be limited, as the proposed operations are relatively small, and an existing contractor will be used for labour recruitment. The number of opportunities that will be realised within the local communities is likely to be low as there are unlikely to be sufficient skills available locally. However, the Social and Labour Plan (SLP) indicates that the appointed contractor will need to transition towards using local labour after the first year. The downscaling and closure of the Proposed Project is likely result in loss of permanent employment. The SLP outlines how this will be managed so as to prevent this loss including re-skilling, building databases of retrenchees, and engaging with the Department of Labour mechanisms to seek employment elsewhere. Potential The potential impact on households, with even a few job losses is likely to be Impact significant for those households. As the employment numbers for the local communities is unlikely significant enough to change the structure and income levels of the communities significantly, the loss of these jobs is similarly unlikely to significantly change the entire community; however, is likely to be significant for individual households or families.

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The skills gained during employment, including ABET and transferable skills, should be transferable to other mining or other operations in the area, and therefore those individuals should remain employable through the contractor or other mining operations. Mitigation Refer to the Social Management Plan for details (Section 7.1.3), including:

 Develop a mine closure plan.

 Partner with local organisations.

 Manage expectations of communities and stakeholders. Overall The enforcement of the SLP will assist with the loss of employment for local Impact communities, and transparent and timeous communication with communities will assist with managing expectations and the loss or re-employment of individuals. Although still this loss will still occur, mitigation should ensure that the impact on individuals, household and communities is minimised.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Medium High Very High High Very High High Negative With Low High Low Medium Medium Low Negative

II. LOSS OF LOCAL ECONOMIC OPPORTUNITIES Description During the operational phase, Nomamix will strive to ensure local content for the provision of goods and services of the duration of the ten-year life of mine. The decommissioning phase is likely to see the reduction and loss of these opportunities. Should businesses have become reliant on the mine for their entire operation, the closure of the mine is likely to impact these business and employees negatively. This is especially true for the agricultural hub that is planned to be developed through the SLP to promote local economic development. Potential There is unlikely to be a high number of goods and services sourced locally, due to Impact the nature of the specialised of the mining activities; however, any reliance on the mine could have a negative long-term impact on the local economy. The agricultural hub is intended to be set up to be an ongoing, sustainable business, and so the closure should not affect this business if developed correctly. Mitigation Refer to the Social Management Plan for details (Section 7.1.3), including

 Ensure the agricultural hub will be sustainable after mine closure.

 Manage expectations and communicate with relevant communities and stakeholders. Overall The overall impact is likely to be minimal, should sufficient notice be given, and Impact procedures be put in place. The small scale of the operations means the impact on the local economy is unlikely to be significant.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Medium Medium Medium Medium High Medium Negative With Low Medium Medium Medium Medium Low Negative

III. INCREASED TEMPORARY EMPLOYMENT Description The closure of the mine could potentially require additional employees to breakdown infrastructure and rehabilitate the land. Although unknown at the time of this study, it is likely that this employment will be done through existing contractors or businesses with existing employees, as with the construction phase.

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Potential There may be unskilled employment, as well as business, opportunities available for Impact the local communities, over the course of the closure and rehabilitations. But this is unlikely to be significant and will depend on the resources available at the time. Mitigation Refer to the Social Management Plan for details (Section 7.1.3), including

 Consultation with the local communities and municipality. Overall The overall impact with mitigation to maximise the potential benefit to the local Impact communities and develop local skills base, could be improve the impact marginally to a low positive.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Very Low High Low Low Low Very Low Positive With Low High Low Medium Medium Low Positive

IV. INCREASED LOCAL PROCUREMENT Description The closure of the mine is likely to require goods and services for activities required, such as breaking down and removal of infrastructure and rehabilitation. As with the operational phase, there are few businesses operating within the immediate vicinity of the Proposed Project but are likely to be sourced regionally or nationally. Potential The spend on the closure phase is unlikely to have a significant impact on the local Impact businesses or economy. Mitigation Refer to the Social Management Plan for details (Section 7.1.3), including

 Ensure local procurement and content where possible

 Consult with the local communities and municipality. Overall The overall impact with mitigation to maximise the potential benefit to the local Impact communities and develop local economic development, could be improve the impact marginally to a low positive.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Very Low High Low Low Low Very Low Positive With Low High Low Medium Medium Low Positive

5.1.4 CUMULATIVE

The cumulative impacts are considered in terms of other existing mines within the study area. There are nine mines or mining activities within the study area, as indicated in Section 3.3.4. The cumulative impacts are related to aspects that social or economic environment that may be affected and with the addition of new mine and associated activities in this area. I. LOCAL ECONOMIC DEVELOPMENT Description Mining is one of the key economic contributors to the local economy within Thaba Chweu and Fetakgomo Tubatse Local Municipalities. The small scale of the proposed mine is likely to have a minimal impact on the local economy, whether through spend or diversification. However as this is a new activity, there is likely to be some increase in local economic development. Potential The addition of the Proposed Project is unlikely to significantly increase or diversify Impact local economic development but is likely to sustain existing businesses and contribute to agricultural development through the community investment programmes. Mitigation Refer to the Social Management Plan for details (Section 7.1.2) and implement Community Plans (Section 7.1.5), including:

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 Ensure that goods and services are procured locally, as far as possible by:

 Maximise (through empowerment) and monitor local content, where possible.

 Ensure development initiatives set out in the Social and Labour Plan are sustainably implemented.

 Manage community expectations. Overall Due to the small scale of the Proposed Project, there is unlikely to be significant Impact changes to the local economy even with maximising local procurement and investment.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Very Low Medium Medium Low Low Very Low Positive With Low Medium Medium Medium Medium Low Positive

II. INCREASED PRESSURE ON RESOURCES Description There is already one informal settlement on the adjacent Skaapkraal farm as a result of the development of the Ba-Choma Silica Mine south of the Proposed Project site. This community apparently took employment from other local communities by moving into the area, and possibly also made use of wood and other natural resources. The potential development of a new mine in the area could attract jobseekers and informal settlements, and therefore add to the pressure on economic and natural resources in this area. Potential As the Farm Vygenhoek and Farm Schaapkraal are currently owned by the state Impact (under land claim), informal settlements will be difficult to control, and completion for resources could cause unrest and conflict, and affect the livelihoods of current residents. The degree to which this occurs will depend on the number of people that settle in the local area. Mitigation Refer to the Social Management Plan for details (Section 7.1.1) and implement Community Plans (Section 7.1.5), including:

 Maximise local employment

 Understand current needs of the local communities and monitor that these are not being negatively impacted.

 Engage local government and stakeholders to foster transparent engagement.

 Develop influx and informal settling control plan.

 Establish relationships with local police and community policing forums. Overall The implementation of mitigation, including proper recruitment and engagement, Impact could reduce the potential for, and number of, jobseekers moving into the local area. The pressure on resources would not be as high.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature Without Very Low Medium Medium Low Low Very Low Positive With Low Medium Medium Medium Medium Low Positive

5.2 NO-DEVELOPMENT ALTERNATIVE

EIA regulations require consideration of the “Do Nothing” or “No Development” Alternative. In this case the status quo would remain, and no aspect component of the Proposed Project would be developed.

I. LOSS OF LOCAL ECONOMIC DEVELOPMENT POTENTIAL

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Description The construction and operational phases of the proposed development will require goods and services, and the investment in local economic development projects from the Proposed Project will contribute toward the growth of the local economy. Without these aspects, the current situation is likely to remain. Potential The impact of the no-development alternative on the local economy is unlikely to be Impact significant, as the Proposed Project is small in scale (ore extraction only, no processing, and a ten-year life span, and so not going ahead will only marginally affect the local economy. The loss of the proposed social development initiative, namely an agricultural node, could however, be a significant loss of the local communities, as it could benefit several households. The overall impact is likely to be of low consequence.

Mitigation Intensity Duration Extent Consequence Probability Significance Nature

N/A Low Medium Medium Medium Medium Low Negative

II. LOSS OF EMPLOYMENT OPPORTUNITIES Description The no-development alternative would result in the loss of direct and indirect employment opportunities. The construction, operation and decommissioning phases are likely to generate between 40 and 60 employment opportunities, including those for local communities, which would be lost. Indirect employment generation would also be lost through lack of local procurement of goods and services, as well as the lack of social investment (agricultural node). Potential In terms of the unemployment within the local area, the loss of these job is considered Impact significant. Employment is a key requirement within the local economy, together with skills development that would be provided through the Proposed Project. The long- term loss of these opportunities would mean that the local communities would not have the opportunity to develop their own income and skills and continue to rely on government grants and subsistence agriculture for their livelihoods. While the status quo would remain, other social aspects, such as an increase in population sizes and pressure on resources could impacts these communities in the future.

Mitigation Intensity Duration Extent Consequence Probability Significance Nature

N/A Low High Medium Medium High Medium Negative

5.3 SUMMARY OF IMPACT ASSESSMENT

The overall impact of the Proposed Project is likely to be a negative change in nature of the local area and potentially disrupt local communities through changes in livelihoods and social structure. However, with good management these impacts can be mitigated to a low or very low significance and ensure that positive socio-economic impacts for local communities (medium significance) and the broader local and regional economy (low significance) are created. A summary of the anticipated socio- economic impacts and their relative significance is provided in Table 11.

Table 11 Summary of potential socio-economic impacts Significance Impact Nature Without mitigation With mitigation PREFERRED ALTERNATIVE Construction Phase Increased employment opportunities Positive Very Low Low Increased local economic development opportunities Positive Very Low Very Low Reduced access to livelihood resources Negative Medium Low Increased pressure on resources Negative High Medium

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Significance Impact Nature Without mitigation With mitigation Increased community conflict Negative High Low Increased social pathologies Negative Medium Low Operational Phase Increased employment opportunities Positive Low Medium Increased local economic development opportunities Positive Very Low Medium Reduced access to livelihood resources Negative High Medium Increased nuisance and disruption Negative Medium Low Indirect damage to/loss of assets Negative High Medium Decommissioning Phase Loss of permanent jobs Negative High Low Loss of local economic opportunities Negative Medium Low Increased temporary employment Positive Very Low Low Increased local procurement Positive Very Low Low Cumulative Local economic development Positive Very Low Low Increased pressure on resources Negative Very Low Low NO-DEVELOPMENT ALTERNATIVE Loss of local economic development potential Negative Low - Loss of employment opportunities Negative Medium -

5.4 ALTERNATIVES ASSESSMENT

The SIA considered the three alternative layouts provided by the EIA project team, as described in Section 1.3, namely: 1) Alternative 1 (revised, preferred layout); 2) Alternative 2 (original layout); and 3) Alternative 3 (comprising the remaining layout options). As only the layout alternatives were considered in the EIA process, and not technology or site alternatives, the majority of impacts of the Proposed Project are anticipated to be similar across all three alternatives. This is because the mine layout will not change aspects such as employment, local economic development, and access to livelihood resources. All three alternatives have been assessed and found to have similar impacts on the local socio- economic environment; however the significance rating for four impacts differs depending on the alternative layout considered the proximity of the mine’s operations to the Vygenhoek Community. The four impacts that are anticipated to be affected by the layout alternatives are as follows:

 Construction Phase  Increased community conflict  Increased social pathologies

 Operational Phase  Increased nuisance and disruption  Indirect damage to/loss of assets These four impacts are discussed in detail in Appendix C. The rationale behind this assessment is based on the specialist’s knowledge developed through the site visit and desktop assessment conducted for the original layout. A description of the rationale for the rating significance is provided in Appendix C. A summary of the overall significance of each alternative is provided in Table 12.

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Table 12 Summary of impact significance after mitigation comparing alternatives Significance With mitigation Impact Nature Alternative 1 Alternative Alternative (Preferred) 2 3 Construction Phase Increased employment opportunities Positive Low Low Low Increased local economic development Positive Very Low Very Low Very Low opportunities Reduced access to livelihood resources Negative Low Low Low Increased pressure on resources Negative Medium Medium Medium Increased community conflict Negative Low Low Medium Increased social pathologies Negative Low Low Medium Operational Phase Increased employment opportunities Positive Medium Medium Medium Increased local economic development Positive Medium Medium Medium opportunities Reduced access to livelihood resources Negative Medium Medium Medium Increased nuisance and disruption Negative Medium Medium High Indirect damage to/loss of assets Negative Medium Medium Medium Decommissioning Phase Loss of permanent jobs Negative Low Low Low Loss of local economic opportunities Negative Low Low Low Increased temporary employment Positive Low Low Low Increased local procurement Positive Low Low Low Cumulative Local economic development Positive Low Low Low Increased pressure on resources Negative Low Low Low

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6 SENSITIVITY MAPPING

The identification and mapping of socio-economic sensitivity is a complex process. For the purposes of this study three key aspects were considered: 1) Exposure - Likelihood of being exposed to the direct and indirect biophysical and socio- economic impacts of the Proposed Project (including proximity to activities and probability of encountering impacts); 2) Vulnerability - capacity (having the social and economic resources) to manage or cope with the social change processes and induced impacts (e.g. high impact + high capacity to cope = low sensitivity); and 3) Tolerance – the limit of acceptable change or tolerance of social or socio-economic change that can be absorbed by a community/household/individual (e.g. even with capacity to absorb a change, a community may be want the change to occur for indirect economic, cultural, or intrinsic reasons). The current socio-economic status of communities in the study area were “overlain” (considered in context) with the level of potential exposure, vulnerability, and tolerance to provide insight into the key sensitive receptors and areas of high, medium and low socio-economic sensitivity. Figure 28 highlights that the key socio-economic sensitive receptors are anticipated to be the houses located immediately adjacent to the Proposed Project site and infrastructure, namely the Vygenhoek Community. Other potentially affected communities are indicated as Skaapkraal formal and informal settlements and Oshoek Road with the broader local community being of low impact. The rationale behind the allocation of high, medium, or low sensitivity are provided in Table 13.

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Figure 28 Socio-economic Sensitivity Map

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Table 13 Socio-economic sensitivity rational Rationale Sensitivity Communities Exposure Vulnerability Tolerance High Vygenhoek This community is likely to incur the This community is unlikely to be able to This community is likely to be tolerant, of highest level of physical environmental adapt to negative impacts or relocate the mining activities, as long as issues Rural, low-income impacts, including noise, traffic, dust, and more likely to be taken advantage of are managed reasonably (dust control, households, with marginal and vibration. In addition they are likely by changes in social circumstances (e.g. etc.) and the community benefits from livelihoods, largely based on to be affected by the people working on social ills and development of an economic opportunities, specifically subsistence agriculture, the mine and the change in nature of the informal economy). They are relatively employment. some employment at local area, which could impact their sense of isolated from municipal or other formal mines and no formal basic place, and potentially change their structures and rely on the Protea services or infrastructure. community structure and level of conflict Community Forum (newly formed Size 49 households and 245 through an influx of labour and community base organisation) to engage people. jobseekers in the area. There could also and manage social issues. be an increased pressure on natural Proximity to site: 800 m resources (grazing, firewood, medicinal This community could benefit plants) due to the loss of land to the significantly from employment mining activities and increased opportunities during all phases, but the competition (influx of jobseekers and lack of education and skills (or access to informal settlements). opportunities to upskill) is likely to prevent maximising these benefits. Medium Informal (near Ba-Choma) This community is likely to be exposed The lack of social connection of the The tolerance of this community is to traffic (including noise, dust, and group (and likely lack of internal unknown, but as this is an informal Informal settlement likely to vehicle emissions). As they are informal cohesion), as well as being low-income settlement, it is assumed that they may have relied on employment and disconnected from the other and transient in nature means that they be tolerant of environmental and social at the now-closed Ba- communities in the immediate area, they are likely to be highly vulnerable to changes, should they receive benefits Choma mine. Likely to have are likely to be exposed to conflict and change in the local physical and socio- from the proposed project (e.g. low-income, and little other social ills should there be an influx economic environment. employment). This does not negate education or skills. of jobseekers. consideration of impacts on this Size: ±80 structures and community, and the need to manage unknown no. people environmental impacts and consultant with them. Proximity to site: 3.5 km Skaapkraal There is unlikely to be any notable direct This community is unlikely to be able to This community is likely to tolerate the environmental exposure for this adapt easily to significant changes to the minor inconveniences and disturbances Rural, low-income community. Indirect impacts on the local socio-economic environment, as caused by the Proposed Project but households, with marginal socio-economic environment (including they are a low-income community and have indicated that due to proximity to livelihoods, largely reliant on influx of jobseekers, traffic, and few links to municipal or other formal the site, that they should be afforded the employment at local mines employment opportunities) could affect structures. This means they are opportunity to benefit from employment and subsistence agriculture, this group. relatively isolated, and so pressure on and other economic benefits should it go ahead.

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Rationale Sensitivity Communities Exposure Vulnerability Tolerance with no formal basic services resources could increase conflict and or infrastructure. reduce livelihoods of this community. Size: 46 households and 277 people Proximity to site: 4 km Oshoek Road farms The only impact anticipated is traffic The farm tenants are least likely to be It is assumed that minor changes in the impacts along Oshoek Road. Noise, adaptable to social and environmental local environment are likely to be Commercial farmland, with dust, vehicle emissions, and safety are changes, as they are low-income, and tolerated, however significant changes several farm tenants (low- of key concern. Other impacts may are likely to be dependent on the farm and social risks could cause distress and income) and one formal include the social repercussions of an they live on. resistance to the Proposed Project. farmhouse (assumed to be influx of jobseekers, such as social ills at least medium income and conflict. The commercial farmers are likely to be level). more adaptable to changes and have the resources to contest issues and Size: 9 households / 4 changes, but they are also likely to be structures and ±40 people . mostly reliant on their farmlands and Proximity to site: 4 km activities. Low Mines There is unlikely to be significant These operations are considered large The anticipated impacts are likely to be exposure to the proposed operations. Air (i.e. backed or operated by large, low, and these organisations and their Several platinum mining quality could be an issue in the north established mining companies), and so staff are likely to accept minor activities located north west west, and competition for labour will have the means to manage issues environmental and social changes due of the site, including resources could be an issue. should they arise. to the nature of their operations, namely associated labour hostels / dynamic mining activities. accommodation. Helena Settlement There is a possibility that this settlement The residents are likely to be low- The anticipated impacts are likely to be will be affected by noise and dust income, and reliant on the mines for low, and these residents are likely to Mine workers, possibly emissions. Residents may be able to work and possibly some basic services. accept minor environmental changes immediate family, sense vibrations from blasting activities, They are unlikely to be able to relocate due to the nature of their location within subsistence farming. but this is likely to be very low. The and should they be affected (dust, noise, an active mining area. Size: 9 houses/structures topography between the settlement and vibrations). the Proposed Project site is raised and Proximity to site: 1 - 1.8 km they are on a different farm to the site north-west with no access, and therefore are unlikely to be affected by visual impacts

4 Based on 5 people per household average in the local area

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Rationale Sensitivity Communities Exposure Vulnerability Tolerance or other impacts such as traffic, labour influx, or informal settlements. Tourism / accommodation There is the potential for guest These businesses are likely to rely on As the anticipated changes in the local farms/lodges located north-west of the their location (natural environment and environment are likely to be low, and Size: 3 lodges / Proposed Project to be affected by dust proximity to mines) for their business. given their proximity to other mining accommodation and noise from the Proposed Project, Changes to the environment could activities, they are likely to be tolerant of Proximity to site: 6 km although given the mining activities in disrupt these businesses. minor changes. the immediate area, and the topography, this is unlikely to be significant, other than in upset / extraordinary conditions. Insignificant Sekhukhune Road - The Proposed Project is unlikely to Many of these communities are These groups are likely to be tolerant of Farming and other rural change the current socio-economic vulnerable (low-income), but the level of minor changes, as the nature of the area settlements environment significantly for these impact is not anticipated to be a in which they live is dominated by mining groups, with the exception of minor significant change from the current level activities and currently has a high risk of Various formal and informal changes in social dynamics and of mining traffic, and so vulnerability is vehicle accidents and public safety due settlements, including potentially a few economic opportunities. not considered a significant impact to these activities, as well as economic commercial farmers and factor. benefits. their households, farm The only impact anticipated of the tenants and informal majority of these settlement is traffic settlements. impacts along Sekhukhune Road and other roads. Noise, vehicle emissions, and public safety are of key concern. Sterkspruit This community is unlikely to receive any Due to the low-income nature of this It is assumed that this community will be impacts from the proposed project due community is likely to be vulnerable to tolerant of minor changes in the local Large low-income rural to distance from the site. Minor, indirect changes in the socio-economic socio-economic environment, but should settlement, with traditional impacts on social and economic environment should they be directly or significant social disruption occur (influx and formal housing, limited opportunities may occur, but are significantly affected. However, negative of jobseekers, conflict, and competition services, and supported by unlikely. impact are likely to be limited. for resources), they are likely to become Northam (Booysendal) distressed and resist to the Proposed Mines. Project. Size: 80-100 households / structures Proximity to site: 7 km Sekhukhune Road - The tourist activities on and near These businesses are likely to rely on As the anticipated changes in the local Tourism activities Sekhukhune Road north-east of the site their location (natural environment and environment are likely to be insignificant, are unlikely to be affected directly by proximity to mines and main road) for and given their proximity to other mining environment or social changes. The their business. Changes to the

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Rationale Sensitivity Communities Exposure Vulnerability Tolerance Size: 3 lodges / Proposed Project may add a small environment could disrupt these activities, they are likely to be tolerant of accommodation number of additional guests annually businesses. minor changes. generating income for these operations. Proximity to site: 5-8 km Schools These schools are likely to receive any Schools are by nature vulnerable Slight changes in the socio-economic direct or indirect impact on a daily basis. receptors. environment are likely to be tolerated, Size: two schools, one Positional impacts may include traffic however major disruptions (unmitigated Primary, one combined along Sekhukhune Road, and additional traffic impacts and major influx of Proximity to site: 7 km north- people in the area. jobseekers) are likely to disrupt these east and 9 km south-east sensitive receptors.

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7 KEY REQUIREMENTS FOR AUTHORISATION

Should the Proposed project be authorised, it is recommended that the Social Management Plan (this section) be a requirement of the Environmental Authorisation.

7.1 SOCIAL MANAGEMENT PLAN

AIM AND OBJECTIVES The aim of the Social Management Plan provides a tool to assist with the management of the socio- economic environment to reduce the potential negative impacts and maximise the potential benefits of the Proposed Project. The objectives are to:

 Enhance local economic development and social well-being;

 Ensure local economic benefits are received by those most directly affected by the mine;

 Ensure communication channels between the community and mine are effectively developed to promote the accurate transfer of project related information and build positive relationships; and

 Implement continuous monitoring and evaluation to ensure local socio-economic well- being is maintained or improved throughout the life of the mine. The Social Management Plan has been developed in line with the identified potential socio-economic impacts described in this report and provides the objectives and measures for each impact that should be used to reduce the potential significance of negative impacts and enhance positive impacts (Table 14, Table 15, Table 16).

MITIGATION HIERARCHY Mitigation of social and socio-economic impacts should be determined through the mitigation hierarchy, as shown in Figure 29.

Adapted from: Vanclay, 2015 Figure 29 Social Mitigation Hierarchy

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7.1.1 CONSTRUCTION PHASE

Table 14 Social Management and Mitigation – Construction Phase Timing and Responsible Impact Objectives Mitigation/Management measures frequency person/s A1. Increased Maximise  Maximise and monitor local recruitment by ensuring that, where Monthly audit HR Manager Employment employment benefits possible, construction contractors appoint portions of their Opportunities for local population workforce from neighbouring communities as a condition of Start pre-construction, Community Liaison contracting, but where this does to not conflict with labour law, continue throughout Officer specifically from the Vygenhoek and Skaapkraal (subject to construction engagement). Mine Manager  Consultation with local communities through the appropriate channels (understood to be the Bantau ba ga Choma Royal Family) must be conducted to make use of local businesses and skills where possible.  Ensure local employment and local services providers are appointed where possible from the Thaba Chweu Local Municipality, and Ward 5 specifically.  Prevent nepotism / corruption in local recruitment structures through transparent and fair recruitment practices.  Establish a liaison point with the adjacent farming community to monitor the impact on their local labour.  Implement Community Plans (Section 7.1.5)

A2. Increased local Generate economic  Ensure that goods and services are procured from within Thaba Monthly audit Community Liaison economic benefit for local Chweu Local Municipality and from within Ward 5 specifically, as Officer development suppliers and far as possible by: Start pre-construction, opportunities businesses continue throughout Mine manager . Developing a register of local Small, Medium and construction Micro Enterprises (SMMEs) that could provide goods and services . Identify and develop links with skills development/ SMME development institutions

A3. Reduced Minimise disturbance  Engaged and work with the representatives and elders of local Monthly audit Community Liaison access to to existing rural communities, through the appropriate channels (understood to be Officer livelihood livelihoods the Bantau ba ga Choma Royal Family) prior to commencement of resources construction to: Mine manager

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Timing and Responsible Impact Objectives Mitigation/Management measures frequency person/s . Ensure communities are aware of the timeframes and Start pre-construction, activities occurring on site, so as to ensure continue throughout transparency and prevent conflict; and construction . Identify medicinal plants within the Proposed Project site and to relocate these to the communities where possible, within the framework of applicable legislation.  Fence off and secure the construction areas to ensure that livestock and people are not unintentionally exposed to construction activities.  Develop and implement community plans (Section 7.1.5), including Communications Plan, Complaints Procedure and Community Health and Safety Plan.

A4. Increased Prevent influx of  Maximise local employment and the use of local services providers Monthly audit Community Liaison pressure on jobseekers and as far as possible (as per A1 and A2 above) Officer resources informal settlements Start pre-construction,  Understand current needs of the local communities and monitor continue throughout Mine Manager that these are not being negatively impacted through ongoing A5. Increased Avoid conflict construction consultation with local communities, through the appropriate community between stakeholders channels (understood to be the Bantau ba ga Choma Royal conflict Family). Transparent communication  Engage local government and stakeholders to foster transparent engagement and to make them aware of potential for settlement and implications and resolve issues.  Develop a control plan in collaboration with local community representatives to control influx and informal settling.  Establish relationships with local police and community policing forums to assist with monitoring and controlling informal settlement.  Develop and implement community plans (Section 7.1.5), including Communications Plan, Complaints Procedure and Community Health and Safety Plan.

A6. Increased Reduce the likelihood  Provide access to information for the affected communities Monthly audit Community Liaison Social of increased social (specifically Vygenhoek and Skaapkraal) in advance of project Officer Pathologies pathologies impacts occurring (awareness). Establish at construction, continue Mine Manager throughout operation

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Timing and Responsible Impact Objectives Mitigation/Management measures frequency person/s Create community  Develop and implement community plans (Section 7.1.5), awareness including Communications Plan, Complaints Procedure and Community Health and Safety Plan.  Partner with local policing units to monitor criminal activity and work with local health services (monitoring and awareness, particularly HIV/AIDS).

7.1.2 OPERATIONAL PHASE

Table 15 Social Management and Mitigation – Operational Phase Timing and Impact Objectives Mitigation/Management measures Responsible person frequency B1. Increased Maximise  Maximise and monitor local recruitment by ensuring that, where Biannual audit Community Liaison employment employment benefits possible, construction contractors appoint portions of their Officer opportunities for local population workforce from neighbouring communities as a condition of Commence prior to contracting, but where this does to not conflict with labour law, operation and monitor HR Manager specifically from the Vygenhoek and Skaapkraal (subject to throughout operation engagement). Mine Manager  Consultation with local municipality, Department of Labour, and local communities through the appropriate channels (understood to be the Bantau ba ga Choma Royal Family) must be conducted to make use of local businesses and skills where possible.  Ensure local employment and local services providers are appointed where possible from the Thaba Chweu Local Municipality, and Ward 5 specifically.  Prevent nepotism / corruption in local recruitment structures through transparent and fair recruitment practices.  Establish a liaison point with the adjacent farming community to monitor the impact on their local labour.  Ensure optimal skills development and recruitment through the implementation of the Social and Labour Plan.

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Timing and Impact Objectives Mitigation/Management measures Responsible person frequency B2. Increased local Generate  Ensure that goods and services are procured from within Thaba Biannual audit Community Liaison economic opportunities and Chweu Local Municipality and from within Ward 5 specifically, as Officer development support local far as possible by: Commence prior to opportunities businesses. operation and monitor Mine Manager . Developing a register of local Small, Medium and throughout operation Prevent over-reliance Micro Enterprises (SMMEs) that could provide goods on operations and and services. projects. . Identify and develop links with skills development/ SMME development institutions. . Consultation with local municipality and communities to make use of local businesses and skills where possible.  Maximise (through empowerment) and monitor local content by ensuring that, where possible, the mine and contractors appoint local businesses (within Ward 5 or Thaba Chweu Local Municipality).  Development initiatives under a local economic development programme as set out in the Social and Labour Plan to promote local development.  Manage community expectations through open discussion on opportunities and projects and encourage active support from local government to support local communities.

B3. Reduced access Minimise disturbance  Engaged and work with the representatives and elders of local Biannual audit Community Liaison to livelihood to existing rural communities, through the appropriate channels (understood to be Officer resources livelihoods the Bantau ba ga Choma Royal Family) to ensure communities are Commence prior to aware of the timeframes and activities occurring on site, so as to operation and monitor Mine Manager ensure transparency and prevent conflict. throughout operation  Fence off and secure the construction areas to ensure that livestock and people are not unintentionally exposed to construction activities.  Develop and implement community plans (Section 7.1.5), including Communications Plan, Complaints Procedure and Community Health and Safety Plan.

B4. Increased To prevent  Ensure mitigation for environmental nuisances are implemented Biannual audit nuisance and extraordinary effectively including dust suppression, noise minimising, disruption

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Timing and Impact Objectives Mitigation/Management measures Responsible person frequency disturbance to local maintaining equipment and vehicles, blast alarms, traffic Commence prior to communities management and road maintenance. operation and monitor throughout operation  Prevent influx of job seekers through maximising local employment and the use of local services providers as far as possible (as per A1 and A2 above)  Develop and implement community plans (Section 7.1.5), including Communications Plan, Complaints Procedure and Community Health and Safety Plan.

B5. Indirect damage Prevent and mitigate  Ensure the mitigation provide din the Blasting Impact Assessment Biannual audit Community Liaison to / loss of loss of immediate (De Jager, 2020) is implemented. Officer assets community assets. Commence prior to  Establish and secure a safe blasting buffer through as per relevant operation and monitor regulations and best practice. throughout operation  Access within the blasting area shall be controlled to prevent presence of livestock or unauthorized persons during blasting.  Schedule blasting activities at reasonable times (through consultation with communities), e.g. lunch time when the community is least likely to be disturbed.  Develop a blasting schedule and provide this information to the Vygenhoek Community.  Recommended that the houses within the Vygenhoek community be documented prior to the commencement of operations, so as to ensure that should any damage occur during operations, that this can be identified, investigated, and attributed the correct source. This should include number of houses/structures, detailed description of the state of the structures, and photographic evidence.  If the operations are found, after proper investigation by a third party, to have caused damage to structures within the Vygenhoek community, then the owners of those structure should be compensated, or the structure replace with the same or better structure.  If livestock is lost due to negligence of the mine, (e.g. lack of proper fencing and monitoring), then the owner must be compensated for this loss.

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Timing and Impact Objectives Mitigation/Management measures Responsible person frequency  Regular dust suppression along the access road, especially in dry season or dry and windy conditions.  Develop and implement community plans (Section 7.1.5), including Communications Plan, Complaints Procedure and Community Health and Safety Plan.

7.1.3 DECOMMISSIONING PHASE

Table 16 Social Management and Mitigation – Decommissioning Phase Responsible Impact Objectives Mitigation/Management measures Timing and frequency person C1. Loss of Suitable transition  Develop a mine closure plan focussed on employment transition Biannual Community Liaison permanent jobs following closure following closure in line with the Social and Labour Plan, including Officer portable skills and development of skills database. Commence during Usable skills for operational phase HR Manager future employment  Partner with local organisations to assist with post-closure opportunities. Monitor during closure Mine Manager  Manage expectation and communicate with relevant communities phase and stakeholders to manage down scaling and closure.

C2. Loss of local Economic transition  Ensure enterprises developed though the local economic Biannual Community Liaison economic into alternative development initiative in the Social and Labour Plan (agricultural Officer opportunities businesses and hub) will be profitable after mine closure. Commence during enterprises operational phase Mine Manager  Manage expectations and communicate with relevant communities and stakeholders to ensure to ensure suitable plans Monitor during closure are in place to address any loss from closure. phase C3. Increased Maximised local job  Consult with the local communities and municipality to identify Biannual Community Liaison temporary creation at closure people within the local communities to undertake unskilled work, Officer employment and opportunities to build long-term rehabilitation-related Commence during businesses or employment where possible. operational phase HR Manager

Monitor during closure Mine Manager phase C4. Increased local  Ensure local procurement and content where possible. Biannual Community Liaison procurement Officer Commence during operational phase Mine Manager

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Responsible Impact Objectives Mitigation/Management measures Timing and frequency person  Consult with the local communities and municipality to identify required goods and services locally or provide upskilling to build Monitor during closure these businesses where possible. phase

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7.1.4 COMMUNICATIONS STRUCTURE

c) Local Community It is understood at the time of this study that the Bantau ba ga Choma Traditional Authority is the key contact between Nomamix (Pty) Ltd and the communities that both reside on Farm Vygenhoek and represented by the Pakaneng Communal Property Association, as per the Bantau ba ga Choma Community Resolution taken on 31 October 2020 at Lafata Ramogwerane. The structure illustrated in Figure 30 is based on the information provided by representatives of local communities and the public participation consultant collected during the EIA process.

Bantau ba ga Choma Traditional Authority Kgosi Makabatji Lazarus Choma

Protea Community Forum Pakaneng Communal Vygenhoek Community (Vygenhoek & Skaapkraal) Property Association Mr July Moqobjane Mr Jim Mosotho

Landowner & represents Directly & indirectly Directly affected traditional authority Affected community adjacent community interests Communities to site

Figure 30 Communications Structure *Note: Contact details for the above organisations and representatives will be provided through the EIA Consultant.

d) Municipality The Thaba Chweu Local Municipality Ward Councillor and Ward Committee are the key municipal structure for community and local project-related communications. The following positions and individuals are highted for information purposes at the time of the study. The Ward Councillor (and other official depending on the scope of the project or aspects to be managed by Nomamix) should be contacted prior to the develop of planning or implementation of any social or economic development project or intervention. Key contacts are provided in Table 17, as of 2020. Table 17 Thaba Chweu Local Municipality Municipal Contacts Position Name (2020) Ward Councillor (Ward 5) Malepe, Jane Office of the Speaker Magagula, Suzan Environmental Manager Ngomane, Amos Director Planning and Development Mathebula, Sindiswa

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e) Other Groups Consultation must include the informal community on Portion 1 of Farm Schaapkraal and the farmer/s along Oshoek Road at least. No other formal structures were identified during the study. It is, however, noted in the mitigation that the neighbouring farmers should be engaged to inform them of the mining process and potential labour and nuisance or public health and safety issues. It is recommended that representatives of immediately neighbouring farm owners and occupiers (including mining operations) are included in the community or business engagement forum. These may include:

 Farms  Skaapkraal  Boschfontein  Bergkant  Modderspruit  Mareesburg  Der Brochen  Mines  Northam (Booysendal / Everest Mines)  Glencor (Helena Mine)  Ba-Choma Mine (ceased operations)

7.1.5 COMMUNITY PLANS

It is recommended that the Community Liaison Officer develop plans and procedures to ensure that communities are engaged and that they are made aware of processes that are in place to manage and mitigate potential impacts. These must include the following

 Communications Plan

 Complaints Procedure

 Community Health and Safety Plan

a) Communications Plan The aim of a Communications Plan is to develop a strategy for effectively communicating information about the operation and its associated activities with stakeholders, including local communities and business. Proper engagement (i.e. two-way communication and problem solving) can reduce the risk to the operations (local social license to operate) and enhance local socio-economic benefits. This plan should include:

 An up-to-date database of all relevant stakeholders, including – public and private individuals, and community, businesses, and organisational representatives.

 Described method of communication for various scenarios including the frequency of communications (daily, weekly, ad hoc) and the means to be used (in-person, e-mail, phone call, text message, WhatsApp groups, notice boards, etc)

 Consideration must be given to disadvantaged or differently abled stakeholders (e.g. illiterate, visually impaired, etc.) and social restrictions that may apply (e.g. gender roles).

 An indication of who is responsible for communication at each stage and according to each situation, including sender and receiver of each item.

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b) Complaints Procedure The aim of a Complaints Procedure is to develop a formal process that can be used by individuals, communities and stakeholders that may be affected by operations. The Complaint Procedure should provide an opportunity for an independent review of complaints concerning operations and enhance accountability problem-solving dialogue and compliance monitoring. This plan must include:

 An appropriate mechanism for stakeholder to report issues and complaints - A formal and accessible means of communications, including an electronic and physical (hard copy) procedure, such as a complaints telephone number (e.g. hot line), email address, physical address/site with a box for written complaints, and (if possible) a SMS/WhatsApp line for ease of submission and engagement;

 A formal record of all grievances – including recording, investigation, assessment, management and close out of all grievances;

c) Community Health and Safety Plan The aim is to develop a strategy for managing the health and safety of local and affected communities throughout all phases of the project. This includes the anticipation and management of emergency situations, as well as daily and long-term health and safety aspects. This plan must include:

 Legal Context – namely South African laws and regulations governing public health and safety;

 Organisation – including community resources (e.g. clinics, hospitals, community security measures, etc.), operator and contractor resources (e.g. site clinic, staff, financial provisions, private security, etc.);

 Identification of potential impacts – as per the social impact assessment and other relevant reports;

 Identification mitigation measures – including regular monitoring and reporting, auditing and review of measures, and communication with communities; and

 Roles and responsibilities – identification of who is responsible for what aspects of community health and safety and communications

 Training and awareness – including community and staff awareness campaigns, including HIV, TB, and other communicable diseases

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8 CONCLUSION

Nomamix (Pty) Ltd proposes to develop and operate a small to medium sized, open pit platinum ore extraction operation on Portions 3 and 7 of Farm Vygenhoek. The socio-economic assessment was conducted as part of the EIA process to understand the socio-economic receiving environment, identify, and assess potential socio-economic impacts of the proposed project, and provide effective management and mitigation measures. The Proposed Project is located in a remote, undeveloped rural area situated on the north-western border of Mpumalanga, 30 km west of Mashishing (Lydenburg). There are a number of mining activities in the broader area along the Eastern Limb of the Bushveld Complex, spanning Mpumalanga and Limpopo. Mining is, therefore, one of the key economic activities in the region, providing much needed economic development and employment. This is reflected in strategic planning policies, including the Ehlanzeni District Municipality Integrated Development Plan, which emphasises the need for mining and rural development through investment within the area. Communities within the study area comprise mostly rural, traditional groups with historical ties to traditional authorities and farm tenant tenure, as well as commercial farmers and small informal settlements. The local area is characterised by agricultural activities (extensive with pockets of intensive), mining activities and undeveloped open veld. There are a few tourism activities, specifically accommodation, within the study area, as well as two schools. There are few formal public facilities and few basic services. There are several rural and farming communities within 10 kilometres of the site. The “host” community (mostly likely to be directly impacted) is referred to in this study as the “Vygenhoek Community” and is located on the southern border of the site, as close as 1.5 km to the mine pit area, and adjacent to the access road. This community comprises low-income households, that rely on employment at nearby mines for income and subsistence farming (livestock and crops) to support their livelihoods. The Proposed Project will not require the physical or economic resettlement of any communities. The site will however be on open land currently used on an ad hoc basis for grazing, collection of firewood and medicinal plants by the Vygenhoek Community. Community representatives indicated that the Vygenhoek Community are willing to forgo this loss, as it is unlikely to impact significantly on their livelihoods, and only if they are considered first for employment and economic development initiatives. The key negative impacts, that are likely to affect the Vygenhoek Community and the to a certain extend other neighbouring communities, include:

 Reduced access to livelihood resources – grazing land, firwood, medicinal herbs;

 Increased pressure on resources – influx of jobseekers and informal settlements;

 Increased community conflict – over employment and resources;

 Increased social pathologies – due to an influx of jobseekers and labour;

 Increased nuisance and disruption – from dust, noise, traffic and increased people and activities; and

 Indirect damage to/loss of assets – structural damage to houses, theft, conflict, and damage to crops. The trade-off for local communities is therefore the potential for positive economic impacts, which will assist with offsetting any losses and disruption, which also apply on a regional level, namely:

 Increased employment opportunities – directly and indirectly through the mine, contractors, and suppliers; and

 Increased local economic development opportunities – through local procurement and direct investment in community projects (rural agricultural hub project). The Proposed Project is unlikely to improve the overall economic characteristics of the local communities, however, will have the potential to provide individuals and households with an increase in employment and income, which could improve socio-economic conditions for these individuals.

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The no-go alternative, or not developing the Proposed Project, is likely to maintain the status quo. No opportunities or investment would occur in the area, and these communities would not benefit from income and economic development in the local area. The Social Management Plan provided in this study recommends a number of processes and plans that must be implemented to ensure transparent, equitable and comprehensive engagement with local communities and other stakeholders throughout the Proposed Project life cycle. It is important to note that social impacts can be felt on an actual or perceptual level, and therefore it is not always possible, or at least straightforward, to measure the impacts in a quantitative manner. It should not be assumed that indirect opportunities for business and employment are sufficient to acquire social license to operate in the host community. The structure and history of the local communities is such that unrest is likely to be an ongoing issue for the operations if stakeholders and communities are not properly engaged.

8.1 IMPACT STATEMENT

It is the opinion of the specialist that the Proposed Project should be authorised within the context of the socio-economic assessment, as the Proposed Project is anticipated to be of economic benefit for the local area, as well as contributing to regional mining and economic development opportunities. Although the Proposed Project is not considered a major mining development (medium scale and extraction only), employment opportunities and the multiplier effect could improve the opportunities for currently unemployed individuals and low-income households within the local area. However, the manner in which the operations are carried out, must be done in line with best practice, including the Social and Labour Plan and the Social Management Plan. It is possible that not every eventuality of the potential socio-economic impacts have been detailed by this study, due to the complexity of socio- economic environment. It is, therefore, crucial that ongoing and transparent engagement, and management of issues as they arise, is carried out through the recommendations of the Social Management Plan. This is likely to ensure that the host community and other stakeholders remain in support of the Proposed Project, and that negative impacts on the host community are minimised and benefits are maximised.

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BIBLIOGRAPHY

Adaptera Strategic Support Services (2020). Nomamix (Pty) Ltd Vygenhoek Platinum Mine: Health Impact Assessment. Adaptera Strategic Support Services (Pty) Ltd, December 2020. BHP (2009). Noise and Vibration: Caval Ridge Coal Mine Project – Environmental Impact Statement. BHP Billiton Mitubishi Alliance, Queensland Australia. Data World (Pty) Ltd (2018). Mpumalanga Spatial Development Framework - Policy Context Report: Final Report. Department of Cooperative Governance and Traditional Affairs, Mpumalanga Provincial Government, October 2018. Digby Wells (2012). Everest North Platinum Mine EIA & EMP – MPRDA, Environmental Impact Assessment Report for the Proposed Everest North Platinum Mine: Volume 1 of 2 – EIA & EMP. Digby Wells Environmental, December 2012. De Jager, M. (2020a). Blasting Impact Assessment for the Proposed Vygenhoek Platinum Project, Limpopo Province. Enviro-Acoustic Research CC, Pretoria De Jager, M (2020b). Noise Study for Environmental Impact Assessment for the Proposed Vygenhoek Platinum Project, Limpopo Province, Enviro-Acoustic Research cc, Pretoria. Ehlanzeni District Municipality (2020) Ehlanzeni District Municipality’s Draft IDP and Budget Review 2020/2021. Ehlanzeni District Municipality. Ehlanzeni District Municipality (2010). Spatial Development Framework: 2010 Review, Draft. Ehlanzeni District Municipality, June 2010. IAIA (2015). Social Impact Assessment: Guidance for Assessing and Managing the Social Impacts of Projects. International Association of Impact Assessment, April 2015. Komnitsas, K. (2020) Social License to Operate in Mining: Present Views and Future Trends. School of Mineral Resources Engineering, Technical University Crete, GR-73100 Chania, Greece; June 2020 Limpopo Provincial Treasury (2018) Limpopo Socio-Economic Review and Outlook: 2018/19. Limpopo Provincial Government, Polokwane. LOGIS (2020) Proposed Vygenhoek Platinum Mine, Mpumalanga Province: Visual Impact Assessment. Lourens du Plessis (GPr GISc) t/a LOGIS, November 2020. Laduma Tapp (2010) Ehlanzeni District Municipality Spatial Development Framework 2010: Review Draft. Laduma Tapp Town and Regional Planners for Ehlanzeni District Municipality June 2010. Nomamix (Pty) Ltd (2020) Social and Labour Plan: Vygenhoek Project. Nomamix, 2020 Sekhukhune (2020) District Development Plan: 2020-2021, Sekhukhune District Municipality, Groberldal Siyazi Limpopo Consulting Services (2020). Proposed Vygenhoek mine to be situated on the Farm Vygenhoek 10 JT near Lydenburg, Thaba Chweu Municipality, Mpumalanga Province. Siyazi Limpopo Consulting Services (Pty) Ltd, December 2020. Thaba Chweu Local Municipality (2017) Integrated Development Plan 2017 – 2022 Term. Thaba Chweu Local Municipality TIPS (2016) The Real Economy Bulletin: Trends, Developments and Data – Provincial Review, 2016. Trade and Industrial Policy Strategies, Pretoria. Rayten Environmental (2020) Proposed Vygenhoek Mining Project: Air Quality Impact Assessment Report – A Proposed Opencast Platinum Mine in Mpumalanga Province. Rayten Project Number: ENV-EMA-207020, October 2020 Other sources:  Google Earth Pro, 2020 (images dating from 2005 to 2018)

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 Statistics South Africa (2012) Census 2011 data: [Accessed, July 2019] http://superweb.statssa.gov.za/webapi/jsf/dataCatalogueExplorer.xhtml  OpenStreet https://www.openstreetmap.org/#map=10/-25.1105/30.3745 [Accessed 14/10/2020]  Chief Director: Surveys and Mapping (1989) 1:50 000 Topographical Map: 2530AA Draaikraal, Second Edition, 1988. Mowbray  SA Government News (2020) Social Grants Increased https://www.sanews.gov.za/south- africa/social-grants-increased. February 2020.  https://miningdataonline.com/property/1153/Booysendal-Mine.aspx#Personnel  https://www.dnb.com/business-directory/company- profiles.booysendal_platinum_%28pty%29_ltd.a7392928daeb0a258078fa0037de98bc.html

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Details of Specialist

CURRICULUM VITAE

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DECLARATION OF INDEPENDENCE

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Specialist study Review

A. SOCIAL AND LABOUR PLAN The Social and Labour Plan (Nomamix, 2020) provides the strategy for implementation of the requirements for transformation, as required in terms of Regulation 46 of the Mineral and Petroleum Resources Development Act (Act 28 of 2002). An overview of key social aspects (i.e. those relevant to the local communities) is provided below.

LABOUR SOURCING AND HOUSING The mine will endeavour to employ members of the local community for the projected labour force. Due to the level of mechanisation on the opencast mine, some highly skilled jobs may be filled by individuals not resident in the local municipality. Employment will be conducted through existing contractors. Local recruitment will be prioritised after the first year of operation as the transition from the contractor’s existing labour to locally recruited labour occurs. All labour and staff will be housed off site in existing accommodation. The SLP outlines the policies of the mining company as looking to facilitate, where possible, home ownership in the established urban areas of Mashishing and other established formal urban nodes. Employees who are from the local community and reside, or wish to reside in their own housing, will be provided with a market related living out allowance or clean wage package which includes provision for housing.

LOCAL EOCNOMIC DEVELOPMENT Nomamix proposes to undertake the following initiatives to address local economic development priorities and aid in improving the quality of life and standard of living for the local communities

 Implement a procurement policy that will ensure that Historically Disadvantaged South African (HDSA) suppliers within the local community are trained and developed to equip themselves to provide services to other companies after the closure of the mine;

 Allow community members to participate in the Adult Basic Education and Training (ABET) programmes offered at the mine; and

 Develop an alternative skills programme for employees so that after mine closure they may find employment in other industries. The mine will assist small enterprises operating in the communities to expand their business opportunities and the formation of partnerships with local government and community organisations is a key factor in determining success. The mine is committed to promoting community ownership initiatives, as this is the only way to promote long term sustainable development, beyond the depletion of mineral resources. The implementation of the community development model will be achieved through local partnership with the community. Nomamix is committed to the preferential purchasing and procurement objectives of the South African Government and broader mining industry. This includes

 Creating an enabling environment for Historically Disadvantage South Africans (HDSA) enterprises to do business with the mine;

 Promoting practices whereby an increasing proportion of contracts, concessions, and commercial agreements are awarded to HDSA enterprises;

 Providing opportunities to businesses that implement their own proven economic empowerment programs;

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Nomamix will also ensure that economic empowerment criteria is considered when adjudicating all submissions from contract mining companies, consultants, concessionaires, small scale mining companies, and vendors by:

 Encouraging existing suppliers to form partnerships with HDSA companies;

 Where appropriate, dividing contracts or projects into smaller components to enable emerging

 HDSA enterprises to qualify;

 Negotiating favourable terms of payment of HDSA and SMMEs;

 Setting and measuring targets for all procurement management on a regular basis; and

 Measuring the percentage of the value of services, consumables and capital purchased from HDSA enterprises. One local economic development project has been proposed, namely the development of a local agricultural development project or node, as follows: a) Agricultural Development Project It is proposed the proponent/operator will develop an agricultural node within the vicinity of the mine or the local area. With will be done in conjunction with consultation with representatives of the local community, as the primary beneficiaries. A Joint Aid Management approach will be taken to determine the most agriculturally appropriate “node” project for the Vygenhoek area. The nature of the crop is still to be determined; however preliminary ideas include soya bean or venison farming. The intention of the Joint Aid Management approach will be to train and assist small scale farmers (both formal and informal) to develop the initiative into a business that is self-sustaining and self-sufficient. The beneficiaries will be identified through consultation with the traditional leaders and through any other means agreed upon to ensure that the intent of this project is maintained, which is to benefit farming communities adjacent and local to the mining area. It is anticipated that this initiative will create up to ten new job opportunities through the development of the farming business/es (i.e. administrative and managerial roles).

DOWNSCALING AND CLOSURE The proposed project will have life of mine of ten years. At the appropriate time, the operator will need to implement the procedures for downscaling and retrenchment as stipulated by the Department of Labour found in Section 189 of the Labour Relations Act. The following measures will be implemented to manage this process: 1) Establishment of a Future Forum – to engage with employees, address problems, find solutions to minimise the impact on job losses, notify employees of closure and engage with the Department of Labour. 2) Mechanisms to save and avoid job losses – including engagement with employees and the Department of Labour to manage job losses within the affected communities. 3) Mechanisms to Provide Alternative Solutions for Creating Job Security – Including:

 Mechanisms to manage the downscaling and retrenchment process including early retirement, voluntary retrenchment, working shorter hours and the introduction of flexible labour practices, abolish overtime work, moratorium on recruitment, transfers to other mines or contractor operations (if possible), and job-sharing.

 Implemented of an action plan including establishing a retrenchee database, identifying appropriate retrenchees for potential Small, Medium and Micro Enterprises (SMMEs), implement appropriate transferable skills training, educate retrenchees about sustainable use of their retrenchment package, and work together with the Department of Labour’s Job Advice Centre to counsel retrenchees and assist them in locating alternative employment. 4) Mechanisms to Ameliorate the Social and Economic Impact of retrenchment and Closure – including a socio-economic impact analysis, updating closure policies to reflect the most

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appropriate use of land and infrastructure, re-skilling, and self-employment training, and ensuring sustainable use of land and infrastructure.

B. AIR QUALITY IMPACT ASSESSMENT The Air Quality Impact Assessment study was conducted by Rayten Environmental (Pty) Ltd (2020). The aim of the study was to determine the potential impact of emissions associated with the operational activities at the Proposed Project on ambient air quality in terms of dust-fall, PM10 and PM2.5. This included a baseline of prevailing meteorological conditions, current air quality and dust concentrations, identifying key receptors.

FINDINGS Key findings of the Air Quality Impact Assessment relevant to the socio-economic assessment are summarised in Table 18. Table 18 Key findings of the Air Quality Impact Assessment Aspect Description Key pollutant of  Key sources concern is dust- . Drilling and blasting at the opencast pit; fall (PM10 and PM2.5) . Bulldozing (profiling of waste); . Materials handling operations (truck loading/offloading operations); . Transportation of material on unpaved haul roads (trucks); . Material storage: Stockpiling; . Excavators (stripping ore and waste and loading trucks); and . Wind erosion from exposed areas (i.e. the open cast pit, exposed surfaces, and material stockpile areas).

Background dust  Key sources levels . Forestry activity/plantations (mainly north, north-east, west, north-west, south- west and south of proposed mine); . Commercial agricultural activity and potential biomass burning (surrounding areas); . Vehicle dust entrainment on unpaved roads (surrounding areas); and . Mining activity (including mine tailings) (low source) mainly located 6 km north and 3 – 18km south of the proposed mine.

Dispersion  Dust emissions are likely to be transported towards the north-westerly and west- north-westerly directions, as the prevailing winds at the site are south-easterly and east-south-easterly.  Moderate to fast wind speeds at the site are predicted to effectively disperse and dilution of emissions from the proposed Vygenhoek Platinum Mine operations; however, higher wind speeds could also facilitate fugitive dust emissions from open exposed areas such as stockpiles and opencast areas.  Dust emissions are likely to be suppressed during the wet months (spring to early autumn), but the dryer winter months could see higher ambient concentrations of particulates.

Modelling  Overall, the dust concentrations are predicted to be high but mostly in compliance outcomes with applicable National Dust Control Regulations (NDCR) (for dust-fall) and National Ambient Air Quality Standards (NAAQS) (for PM10 and PM2.5) over the project area.  Higher concentrations, including exceedances, are observed near the proposed surface mining activities and beyond the north-western boundary of the proposed mine within a maximum radius of 0.2km. Predicted incremental dust-fall rates, and PM10 and PM2.5 concentrations comply with the NDCR, 2013, and NAAQS at all discrete receptors surrounding the mine.

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Aspect Description Mitigation  Dust suppression should be conducted at the proposed mine where possible, to reduce additional levels in background concentrations at the site.  An internal dust management plan must be compiled and implemented during the operation phase, and monthly dust-fall monitoring should be undertaken.

C. VISUAL IMPACT ASSESSMENT The Visual Impact Assessment was compiled by Lourens du Plessis (LOGIS, 2020). The report provided an assessment of the significance of the potential visual impacts, as well as management actions and monitoring programs for the highest impact-operating scenario (worst-case scenario), including potential cumulative visual impacts. The assessment process made use of a detailed digital terrain model to determine the potential visual exposure, viewer incidence and perception (sensitive visual receptors), and the visual absorption capacity of the landscape. Thereafter the visual impact index could be calculated, and significance could be determined.

FINDINGS Key findings of the Visual Impact Assessment relevant to the socio-economic assessment are summarised in Table 19. Table 19 Key findings of the Visual Impact Assessment Aspect Description Potential visual exposure  Fairly contained area of potential visual within a valley.  Closer proximity visual exposure is expected from the settlements and homesteads south-east of the site.  Potential for longer distance exposure to the north (down the Great Dwars River valley towards the Helena mine).

Potential cumulative visual  Not expected to significantly increase the potential cumulative visual exposure exposure of mining infrastructure and activities within the region.

Visual distance / observer  Due to the remote location there are only a few potential sensitive proximity visual receptors Viewer incidence / viewer  Residents of or visitors to the settlements located south of the farm perception Vygenhoek and residents (or employees) of the mines locate north- west and west of the Mototolo tailings dam.

Visual absorption capacity  Mesic Highveld Grassland Bioregion to the east has low VAC (VAC) (Vygenhoek Community)  Central Bushveld Bioregion Higher VAC to the west (Mototolo Mine and beyond)

Visual impact index  Very high (combined visual exposure, viewer . The settlement south of the site, or on the farm itself incidence/perception and visual distance) . The house west of the Mototolo new tailings dam  High . The settlement further south of the site closer to Ba-Choma Silica Mine . Homesteads near the confluence of the Great Dwars River and the river traversing the site . The Glencore Helena mine  No impact on observers travelling along the secondary/public roads within the study area.  No additional or moderate to low visual impacts are expected.

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Visual impact index and potentially affected sensitive visual receptors

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D. HEALTH IMPACT ASSESSMENT The Health Impact Assessment, compiled by Adaptera Strategic Support Services (2020), is a systematic approach to predicting and managing the potential positive and/or negative health effects of the Proposed Project on local communities and the wider society. The impact assessment process aims to identify the existing health needs of the community and future health impacts that it (the proposed Project) may exert on the community. The assessment process was based on the existing evidence rank, the likelihood and consequence of difference health impacts to outline their significance and prioritisation for mitigation. A confidence ranking was be applied based on the available evidence. The assessment process took the following types of health outcomes into consideration:

 Infectious diseases: Malaria, HIV and Influenza, COVID-19

 Chronic diseases: Heart disease, cancer, bronchitis, asthma, silicosis, pneumonoconiosis

 Nutritional disorders: Malnutrition, vitamin deficiencies and obesity

 Physical injury: Accidents, heavy metals and chemical poisoning, hearing loss, community unrest often resulting in violence

 Mental health and wellbeing: Suicide, depression, stress, and anxiety

FINDINGS Key findings of the Health Impact Assessment relevant to the socio-economic assessment are summarised in Table 20. Table 20 Key findings of the Health Impact Assessment Aspect Description Receiving environment  Numerous small, medium, and large-scale mining operations are present across the region.  Current state (condition) of the local and regional healthcare facilities is poor to mediocre.

Key Risks  Influx of people can be expected in relation to people seeking employment. This could impact the already strained localised health care facilities, housing situation, water and sanitation, and food availability and inflation.  Increase in accidents and injuries due to increased and/or changes in road traffic, may significantly and adversely affect levels of accidents in the area.  Coronavirus pandemic (COVID-19) remains a significant risk to both the people engaged with the Project, as well as the Project achieving its objectives within anticipated timeframes. Impact Assessment Respiratory & Housing Issues (including COVID-19) Medium Category and Post Mitigation Accidents & Injuries Medium Significance Sexually Transmitted Infections Medium Soil & Water Sanitation Related Diseases Low Food & Nutrition Related Issues Low Exposure to Potentially Hazardous Materials Low Social Determinants of Health Low Veterinary Medicine & Zoonotic Issues Very Low Health Services Infrastructure & Capacity Very Low Noncommunicable Diseases Very Low

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Aspect Description Vector-Related Diseases Very Low Cultural Health Practices Very Low

Mitigation  Prepare and implement a Health Action Plan (including key performance indicators) for construction and operational phases.  Prepare and implement a specific COVID-19 management plan for construction and operational phases.  Appoint a suitably qualified and experienced Environmental, Health and Safety practitioner.  Investigate (and where feasible implement) the opportunity to support the local healthcare facilities that will be integral to the Projects direct and indirect stakeholders.

E. NOISE IMPACT ASSESSMENT The Noise Study was conducted by Enviro-Acoustic Research cc (De Jager, 2020b). The aim of the study was to determine the potential noise impact on the surrounding environment as a result of the Proposed Project. The study made use of baseline data recorded at the site, and assumptions with regards to the type of activities and equipment that is likely to be used for the Proposed Project. It considered both point- sources (machinery and activities on site) and linear (traffic/road) noise emissions. These were both modelled to provide mapped noise.

KEY FINDINGS Key findings of the Noise Impact Assessment relevant to the socio-economic assessment are summarised in Table 21.

Table 21 Key findings of the Noise Study Aspect Description Baseline ambient noise levels  Ambient noise levels considered very low overall.  Background noise in the current environment include natural noises, namely birds, and rural residential noises such as dogs barking, and people gardening and speaking.

Closest potential noise  A number of dwellings used by the local community to the east and sensitive receptors south-east. This community have a direct line of sight to the proposed activities and the activities are expected to be audible at times.  Mining activities north-west of the site. There is a hill between the proposed mining area and this point. Considering the proximity to an existing mine as well as the topography, it is unlikely that the Proposed Project activities will be audible at this point.

Key sources of noise  Construction – equipment, transport and set up activities.  Operation – Mining activities (drilling, blasting, moving rock), haulage of materials along roads.

Findings  Output of the modelling exercise indicated a potential medium risk of a noise impact at one receptor [community south/east of the site].  This relates to mining traffic noises increasing the ambient sound levels at the closest house above a noise level that could be considered disturbing.  The community falls outside of the high-risk noise impact area.

Key Management and mitigation  The access road be planned (and constructed) further than 50 m from any structure used for residential purposes.

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Aspect Description  Ensure that equipment is well maintained and fitted with the correct and appropriate noise abatement measures.  The operation should investigate the use of white-noise alarms instead of tonal reverse alarms on heavy vehicles operating on roads, within the mining area and at stockpile areas.  Potentially affected parties will receive sufficient notice (siren and blasting schedule) and the knowledge that the blast will be over relative fast result in a higher acceptance of the noise associated with the blast.

Projected conceptual future daytime noise rating levels relating to operational activities

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Potential noise sensitive areas and buffers

F. BLASTING IMPACT ASSESSMENT The Blasting Impact Assessment was compiled by Enviro-Acoustic Research (De Jager, 2020). The aim of the study was to determine the potential blasting impacts that the Proposed Project operations on the surrounding built environment in line with local regulations and international guidelines. The study considered the potential impact of three aspects, namely ground vibration, air blast and fly rock from blasting activities to remove overburden and ore from within the pit area. The potential risks were determined using methods provided by the United States Bureau of Mines. A site-specific blast design was not available; however, a blast design was conceptualised based on the available information.

KEY FINDINGS Table 22 Key findings of the Noise Study Aspect Description Ground vibration  That ground vibration levels may be unpleasant to people when blasting take place within 1,660 m from structures used for residential activities  The impact is of Low-medium significance and mitigation is available and proposed that could reduce the vibration levels to less than 2.54 mm/s within 1,660 m from the blast. However, due to the sensitivity to blast effects, it is possible that people may complain  That ground vibration levels will be of Low significance to potential sensitive structures in the vicinity of the mining area Air blast  Air blast levels will be clearly audible to all surrounding receptors, but the magnitude will be less than 120 dB.  Due to the sensitivity of people to the significant loud noise as well as secondary vibration of large surfaces (due to the change in air pressure), management measures are proposed to pre-warn the community about the potential impacts. Fly rock  There are no risks of fly rock to people or residential structures but blasting close to the mine infrastructure may result in fly rock

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Aspect Description damage. Management measures are available to ensure the risks are minimised Mitigation  The report should be updated if any parameters of the study are changed (e.g. blast size, location, design);  Blast should be controlled (charge per delay) to ensure a vibration level less than 2.54 mm/s at structures closer than 1,660 m from the blasting area  Initiate a forum to inform the close residents about the likely vibration and air blast levels, the proposed blasting schedule and warning methodology the mine will employ before a blast as well as a warning to residents that, when they are indoors during a blast, vibration of windows and ceilings may appear excessive.  The local community members must be notified of times when blasts will be undertaken, and the community must know that the potential impact of vibration was assessed.  Mine to erect blasting notice boards in the community to the South- east of the opencast pit, with blasting dates and times highlighted.  The houses (mining-related) to the north north-west should be provided with a blasting schedule in advance to the blasts.  Mine to prevent blasting in adverse meteorological conditions where possible (overcast conditions, strong wind blowing in direction of local community, early in the mornings or late in the afternoon).  People and livestock to be moved further than 500 m from active blast before a blast is detonated.  That the mine does blast monitoring, if, and when complaints about blasting effects are registered. The results from the blasting should be analysed to calculate the site constants and this blasting vibration study updated.  Any evidence of fly rock is noted and the blast be analysed for possible improvements.  It is highly recommended that the mine conduct a detailed photographic survey at selected brick and cement structures (that does not belong to the applicant) located within 2,000 m from the mine (from the opencast boundary limit) before any mining activities start (before the construction phase start where blasting is to take place). This should include a survey of all water boreholes and cement dams to determine the status of these structures.

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Potential area where people may respond to blasting vibration for the assessed blast parameters

Potential area where sensitive structures (mud or adobe) may be damaged

G. HERITAGE IMPACT ASSESSMENT The Heritage Impact Assessment was conducted by HCAC Heritage Consultants (HCAC, 2020). The aim of the heritage study was to assess the potential impacts of the Proposed Project on identified heritage resources and provide management measures to protect and preserve these resources in line with the relevant legislation. The study included a field survey which included a non-intrusive pedestrian survey to cover the extent of the development footprint.

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Table 23 Key findings of the Heritage Impact Assessment Aspect Description Archaeological  During the current assessment, selected sites from previous surveys was revisited and in addition several new sites were recorded during the current survey and a total of 83 heritage features are now on record for the study area  Sites recorded range from the Middle Stone Age (MSA) to the Iron Age and historical/recent periods, highlighting the cultural significance of the area.  The historical Choma settlement occurs within the operational (pit) area and is of high social value together with intangible features.  Numerous burial sites or graves were recorded and undoubtedly more can be expected. Several of the known burial sites are located within the mine footprint and poses the biggest risk to the proposed project. Graves should ideally be preserved in-situ or alternatively relocated according to existing legislation.

Palaeontological  The area is indicated as of insignificant to low palaeontological sensitivity on South African Heritage Resources Information System and no further studies are required in this regard.

Conclusion  The impact of the project on heritage resources is medium to high and will require extensive mitigation.

Recommendations  The independent Social impact assessment was conducted in 2016 should be incorporated into the final HIA.  This HIA must be updated based on alternative lay outs.  Based on information in the SIA Extensive social consultation with stakeholders could be required to adequately record intangible resources (living heritage sites) and to record all burial sites.  Redesign of the pit and haul roads to avoid burial sites. Grave relocation must be seen as a last resort.  The Mine Plan must be amended as far as feasible to avoid damage to the recorded heritage resources. Where this is not possible phase 2 mitigation is recommended based on approval of SAHRA permits.  Du Piesanie and Higgitt (2012) identified Choma Village as a fatal flaw and recommended that the site should be declared a Regional Heritage Site by the SAHRA. It is recommended that the settlement and associated features is preserved in situ with an adequate buffer zone.  Implementation of a site development plan.  Compilation and implementation of a monitoring programme.  Implementation of a chance find procedure for the project based on the below outline.

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Site distribution map in relation to the current layout.

Burial sites in relation to the development layout.

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H. TRAFFIC IMPACT ASSESSMENT The Traffic Impact Assessment, prepared by Siyazi Limpopo Consulting Services (Pty) Ltd (2020), aimed to assess the implications of the vehicular traffic that could potentially be generated due to the proposed mining development and: a) The traffic impact that the change in land use would have on the road and transport-related infrastructure; b) Whether it is possible to accommodate the proposed mining development within acceptable norms from a traffic engineering point of view; and c) The mitigating measures required to accommodate the proposed mining development within acceptable traffic engineering norms

Table 24 Key findings of the Traffic Impact Assessment Aspect Description Current status  Vehicle access to and from the proposed mining development site is currently by means of a local gravel road which intersects with Road D874 (Point B). Broader access to Road D874 is mainly obtained from Road D212 which provides access from the north (Road R555 - Steelpoort) and the south (Road R577 - Lydenburg).  The local road is a two-lane gravel road (one lane per direction) for the first 460 meters from the intersection with Road D874 (Point B) and then narrows to a single lane gravel road for most of the road section up to the proposed mining development site . This section of the Local Road is shared by vehicle traffic in both directions, has limited passing opportunities on most sections and in general is suitable for light vehicle traffic only.

Key issues identified  Vehicles turning right at the intersection from the north on Road D212, specifically heavy vehicles in the future as part of the proposed mining development, does so by means of a single lane sharing through and right-turning vehicles which could lead to accidents from vehicles waiting to turn right.  No reflective road studs are installed.  The relevant section of Road D874, currently a gravel road, between Points A and B which is approximately 5 kilometres apart and provides broader access from and to Road D212 is in need of some rehabilitation of some sections due to water erosion.  There is a single lane water stream crossing on Road D874 approximately 275 meters from Point A which might not be suitable for an increase in mine related heavy vehicles.  Housing and small informal settlements along the local gravel road are present and should be avoided as far as practically possible from a road and community safety perspective.  Pedestrian movements can be expected on the Local Road that currently provides access to the proposed mining development site.  Limited public transport is available in the area.

Recommendations  Construct a dedicated right-turn lane on the northern approach of Road D212 as part of the proposed mining development.  Reflective road studs should be installed at Point A in order to ensure visibility of the intersection geometry to road users at night time.  Some rehabilitation of the relevant section of Road D874 would be required.

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Aspect Description  Further investigation with regards to a single lane water stream crossing on Road D874 should be conducted to determine whether any mitigating measures would be required.  Alternative access to the proposed mining development should be investigated.

Graphical presentation of the recommended geometric road network improvements without the proposed mining development

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Alternatives Impact Assessment

1. INCREASED COMMUNITY CONFLICT – CONSTRUCTION PHASE

Summary  Influx of jobseekers of impact  Increased pressure on resources  Competition for employment and benefits  History of tension in the local area  Could result in unrest, loss of assets and breakdown of social cohesion Summary  Maximise local employment of  Engage local government and stakeholders to foster transparent engagement Mitigation:  Develop influx and informal settling control plan

 Establish relationships with local police and community policing forums

Rationale, Additional Mitigation and Significance Rating

Alternative  An increase in social conflict could impact on communities living near to the site, as well as 1 potentially impact on the Proposed Project through protests and strikes. This could (Preferred) commence before or during construction, and last for the duration of the operational phase if not managed appropriately and have a high impact on the structure and livelihoods of the local communities.  Overall Impact: Should the above mitigation measures be implemented effectively, there is likely to be a reduction in the potential for conflict and a reduction in the significance of the indirect impacts on the local communities. The overall impact is likely to be of low significance.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without High High Medium High High High Negative

With Medium High Low Medium Medium Low Negative

Alternative  As for Alternative 1 2

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without High High Medium High High High Negative

With Medium High Low Medium Medium Low Negative

Alternative  As for Alternative 1 – however, the close proximity of the mine operations, specifically the 3 office, RoM and haul roads (which will be set up during construction) could result in the increase in labour-community interaction, and the likelihood of conflict or community disturbance. There is likely to be less control over these interactions, when the mining operations are in close proximity, as community members are more likely to engage with labour during drop off/pick-up times and engage in other activities (e.g. selling of food and other goods).  Mitigation: . Stringent security and labour protocols to minimise interactions and prevent community health and safety risks.  Overall impact: With mitigation, the significance of the potential impact is likely to be reduced to a medium, however the close proximity to the Vygenhoek Community could still result in some risk to this community.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without High High Medium High High High Negative

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With Medium High Medium High Medium Medium Negative

2. INCREASED SOCIAL PATHOLOGIES – CONSTRUCTION PHASE

Summary  Increased labour, informal settlements, and land claimants of impact  Increased social pathologies and ills  Breakdown community structure  Reduce quality of life for local residents Summary  Provide access to information and create awareness. of  Develop and implement Communications Plan, Complaints Procedure and Community Mitigation: Health and Safety Plan.  Partner with local policing and local health services.

Rationale, Additional Mitigation and Significance Rating

Alternative  The likely impact on social cohesion and quality of life is likely to be minimal, although a 1 higher influx of people and pressure on resources, competition for employment and conflict (Preferred) could all contribute to higher rates of social ills.  Overall Impact: Should the influx of jobseekers be managed through mitigation; it is possible that the impact on the structure and quality of life for the local communities will be low.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without Medium High Medium High Medium Medium Negative

With Low High Medium Medium Low Low Negative

Alternative  As for Alternative 1 2

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without Medium High Medium High Medium Medium Negative

With Low High Medium Medium Low Low Negative

Alternative  Similar to Alternative 1 – However, the close proximity of the mine operations, specifically 3 the office and RoM (which will be set up during construction) could result in the high levels of interactions between labour, jobseekers and local community. There is likely to be less control over these interactions, when the mining operations are in close proximity to communities, as community members are more likely to engage with labour (e.g. during drop off/pick-up times) through activities such as selling of food and other goods and services. The high level of vulnerability of the Vygenhoek community (low-income with marginal livelihoods), means that the community members are likely to take opportunities for generating income, especially if people and activities are located close to the houses. Although operations will be restricted to working hours, social interaction often cannot be monitored or controlled.  Mitigation: . Strict security and labour protocols to minimise interactions and prevent community health and safety risks. . Community health and safety awareness campaigns would require a stringent implementation and intensive monitoring.  Overall impact: With mitigation, the significance of the impact is likely to be reduced to a medium, however the close proximity to the Vygenhoek Community could still result in some risk to this community.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without High High Medium High High High Negative

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With High High Medium High Medium Medium Negative

3. INCREASED NUISANCE AND DISRUPTION – OPERATIONAL PHASE

Summary of  Blasting and haulage of materials in close proximity to houses impact  Influx of jobseekers and informal settlements

 Noise, dust, traffic and visual impact is likely to disruption of quiet, remote subsistence farming community

Summary of  Ensure mitigation for environmental nuisances are implemented effectively. Mitigation:  Prevent influx of job seekers.

 Develop and implement community plans, including Communications Plan, Complaints Procedure and Community Health and Safety Plan.

Rationale, Additional Mitigation and Significance Rating

Alternative  The changes in the physical environment are likely to and change in nature of the area and 1 sense of place for the Vygenhoek community, for the duration of the operations (10 years). (Preferred) While the change in nature of the area will be largely tolerated for economic benefits, extraordinary disturbance or disruption to local communities could have a significant impact on livelihoods and social cohesion (e.g. phycological and physiological impacts). Normal procedures and guards implemented by the mine should prevent some of these issues, resulting in a lower likelihood, and medium significance.  Overall Impact: The prevention of nuisances and disturbance to the local communities will ensure the long-term cohesion and access to livelihoods required to maintain the state of these communities. The above mitigation should ensure that this is minimise to a low significance.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without High Medium Medium High Medium Medium Negative

With Medium Medium Medium Medium Low Low Negative

Alternative  As for Alternative 1 – However, the RoM will be located closer to the community (Alternative 2 2 = 1.4 km; Alternative 1 = 800 m), and therefore is likely to have a moderate impact due to noise and dust emissions.  Overall Impact: the overall significance with mitigation should ensure that this is minimise to a low significance.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without High Medium Medium High Medium Medium Negative

With Medium Medium Medium Medium Low Low Negative

Alternative  As for Alternative 1 3  In addition, the close proximity of the mine operations (RoM, waste rock dump and office within 250 m of community) is likely to have a high impact on the local community and other activities. High noise, dust, and visual impacts for the 10-year duration is considered a high impact due to the change in nature of the area, nuisance and health exposure for the community. Close proximity of mine staff to community (e.g. workers being dropped off /picked up for shifts) could promote the development of social ills and disrupt daily community activities.  Mitigation: . Implement stringent measures to reduce risk, including noise and visual barriers, dust suppression, strict security control. . May require the relocation of at up to twenty dwellings within the Vygenhoek Community (located 600 m of the operations) through extensive consultation and development of a resettlement plan.

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 Overall impact: Even with relocation of the closest dwellings, some dwellings and activities will still be within 700 m of the waste rock dump, and therefore disturbance may still occur which may require further mitigation (e.g. compensation) or this community will incur residual risk form the operations.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without High Medium Medium High High High Negative

With Medium Medium Medium High Low Medium Negative 

4. INDIRECT DAMAGE TO/LOSS OF ASSETS – OPERATIONAL PHASE

Summary of  Damage to houses from blasting – although unlikely according to the blast impact impact assessment report, the close proximity to the houses is of concern.  Loss or damage to livestock on site as the site is currently communal grazing land.  Loss or damage to crops as a result of dust emissions from vehicles traveling along unpaved roads adjacent to cultivated fields.  Marginal livelihood of local community, as they are low income, and reliant on subsistence agriculture.

Summary of  Following mitigation provided in the Blasting Impact Assessment. Mitigation:  Controlled access within the blasting area.

 Schedule blasting activities at reasonable times.  Develop a blasting schedule.  Establish and secure a safe blasting buffer.  Pre-emptive documenting of houses and structures near to the operations.  Independent verification of any damage to structures or loss of assets and compensation or replacement.  Regular dust suppression along the access road.  Develop and implement community plans, including Communications Plan, Complaints Procedure and Community Health and Safety Plan.

Rationale, Additional Mitigation and Significance Rating

Alternative  The damage to or loss of a structures, livestock, or crops, and the cost of repair or 1 replacement, could have a substantial impact on the Vygenhoek Community, as they have (Preferred) a marginal livelihood (low income, and reliant on subsistence agriculture). The potential impacts is therefore considered high.  Overall Impact: Should adequate mitigation be put in place, including the replacement of, or compensation for, lost assets, the overall impact should be reduced to a medium significance on the Vygenhoek Community, as although there is a lower probability the intensity of these types of impacts remains high due to the vulnerability of this community.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without High Medium High High High High Negative

With High Medium High High Medium Medium Negative

Alternative  As for Alternative 1 2

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without High Medium High High High High Negative

With High Medium High High Medium Medium Negative

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Alternative  As for Alternative 1. 3  In addition, the close proximity of the mine operations (RoM, waste rock dump and office) to the Vygenhoek Community is likely to have a high impact on the crop fields and other activities. Specifically, the dust emissions from laydown and loading of waste rock (250 m from community) could cause loss of crops.  Mitigation: . Stringent dust suppression and monitoring of community assets. . Possible relocation or compensation for approximately twenty hectares of crops (currently within 600 m of the proposed waste rock dump).  Overall impact: With mitigation, the probability id likely to be reduced, however the mine activities are still likely to pose a high risk to the Vygenhoek Community due to proximity to the dwellings, fields, grazing, and other activities.

Mitigation Intensity Extent Duration Consequence Probability Significance Nature

Without Very High Medium High High Very High High Negative

With High Medium High High Medium Medium Negative

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