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BALKAN MINERAL AND MINING EAD ZIP: 2087 Chelopech Village, District OF Sofia NON-TECHNICAL SUMMARY of the ENVIRONMENTAL IMPACT STATEMENT for the Investment Project Proposal for Mining and Processing of Auriferous Ores from the Ada Tepe Prospect of Khan Krum Gold Deposit, Krumovgrad Sofia December 2010 Non-Technical Summary of EIS for Mining and Processing of Auriferous Ores from the Ada Tepe Prospect of the Khan Krum Deposit near Krumovgrad Table of Contents Introduction ................................................................................................................................ 1 1. I. General ................................................................................................................................ 1 2. Justification for the Proposed Development and Main Objectives of the Project ................. 1 3. Location of the Project - Physical Characterisation, Footprint, Distances to Protected Sites and Other Elements of the National Environmental Network ................................................... 2 4. Description of the Investment Project Proposal ..................................................................... 4 4.1. Project Overview ............................................................................................................. 4 4.2. Areas Required over Project Construction, Operation and Closure ................................ 4 4.3. Project Implementation Stages ........................................................................................ 5 4.4. Production Process. Main Process Stages ....................................................................... 6 4.5. Project Raw and Other Materials, Natural Resources and Energy Sources .................... 9 5. Description of Siting and/or Process Alternatives Together with Justification for the Selection Made Taking into Account the Impact on the Environment Including the "Zero" Alternative. ............................................................................................................................... 13 5.1. Mining Method Alternatives ......................................................................................... 14 5.2. Processing Alternatives ................................................................................................. 14 5.3. Mine Waste Management Options ................................................................................ 16 5.4. Siting Options for the Project Facilities ........................................................................ 17 5.5. Options for Water Supply and Reduction of Water Use ............................................... 18 5.6. Comparison of the Proposed Process with the BAT Requirements .............................. 18 5.7. „Zero"” (No Action) Alternative ................................................................................... 20 6. Description and Analysis of the Environmental Media and Factors, and the Expected Impacts from the Project Implementation ................................................................................ 22 6.1. Air .................................................................................................................................. 22 6.2. Surface and Ground Waters .......................................................................................... 26 6.3. Geological Setting ......................................................................................................... 34 6.4. Lands and Soils ............................................................................................................. 36 6. 5. Flora and Fauna ............................................................................................................ 39 6.6. Wastes ........................................................................................................................... 48 6.7. Hazardous Substances ................................................................................................... 59 6.8. Physical Factors ............................................................................................................. 62 6.9. Landscape ...................................................................................................................... 63 6.10. Cultural Heritage - Cultural and Architectural Monuments within the Project Area . 65 6.11. Environmental and Occupational Health Aspects and Risks to Human Health ......... 66 7. Cumulative Effects ............................................................................................................... 67 8. Description of the Measures Planned to Prevent, Mitigate or, Where Possible, Eliminate Significant Negative Impacts on the Environment, and a Plan for Implementation of These Measures: ................................................................................................................................. 67 9. Transboundary Context ........................................................................................................ 81 10. Conclusions ........................................................................................................................ 81 DANGO PROJECT CONSULT EOOD i Non-Technical Summary of EIS for Mining and Processing of Auriferous Ores from the Ada Tepe Prospect of the Khan Krum Deposit near Krumovgrad Introduction This Environmental Impact Statement (EIS) for the Investment Project Proposal for Mining and Processing of Auriferous Ores from the Ada Tepe Prospect of the Khan Krum Gold Deposit near Krumovgrad ("the Krumovgrad Gold Project") is prepared on the basis of Letter Ref. ОВОС -1402/24.06.2010 from the Ministry of Environment and Waters (MOEW) (Appendix 1). The EIS is compliant with the requirements under art. 96 par. 1 of the Environment Protection Act ("EPA") (SG issue 91/25.09.2002, last amendment in issue 46/2010) and art. 12 par. 1 and art. 14 par. 1 of the Regulation on the Terms and Procedures for Conducting EIAs ("the EIA Regulation") (SG issue 25/2003, last amendment in SG issue 80/2009). The decision to conduct an EIA of the Krumovgrad Gold Project was taken after completion of the procedures under art. 4 of the EIA Regulation. In accordance with the requirements under art. 95 par. 2 and 3 of the EIA, the EIS has bee scoped in compliance with the provisions of art. 10 par. 1 of the EIA Regulation. The EIS scope is compliant with the requirements under art. 10 par. 3 of the EIA Regulation. The EIS and the upgraded EIS scope considers all the directions and recommendations of the MOEW pertaining to the preparation of the EIS, which were provided in writing in Letter Ref. ОВОС -1402/06.10.2010, as well as the recommendations of the appropriate authorities, organisations and affected communities received as part of the consultation process under art. 95 par. 3 of the EPA and art. 9 par. 1 of the EIA Regulation. Dango Project Consult EOOD ("Dango") has been commissioned by Balkan Mineral and Mining EAD ("BMM") to prepare this EIS. Sofia The authors of the EIS are independent experts who meet the requirements under art. 83 par. 1 and 2 of the EPA (last amendment in SG issue 61/6.08.2010), which is certified with appropriate declarations included in the EIS. 1. I. General Investor's Contact Details: Balkan Mineral and Mining EAD Residence Address : Chelopech Village, ZIP Code 2087, Chelopech Village, District of Sofia Head Office Address: Sofia 26 Bacho Kiro St. Executive Director : Adrian Goldstone Tel.: +359 02 930-15-00 Fax: +359 02 930-15-95 2. Justification for the Proposed Development and Main Objectives of the Project The Environmental Impact Statement (EIS) for the Investment Project Proposal for Mining and Processing of Auriferous Ores from the Ada Tepe Prospect of the Khan Krum Gold Deposit near Krumovgrad ("the Krumovgrad Gold Project") is required under the Environment Protection Act ("EPA") and the Regulation on the Terms and Procedures for Conducting Environment Impact Assessments ("the EIA Regulation"). According to art. 22 par. 3 of the Underground Resources Act ("URA"), promulgated in SG issue 23/12.03.1999, amended in SG 61/06.08.2010, the Investor has prepared and provided a Mining Waste Management Plan as an integral part of the proposed development. This plan is prepared under the terms of the Regulation on the Specific Requirements to Mining Waste Management, SG issue 10/06.02.2009, and the Underground Resources Act ("URA"). The EIS also incorporates the Assessment of the Compatibility of the Proposed Development with the Scope and Objectives of Protection Set for Rhodopes-East Protected DANGO PROJECT CONSULT EOOD 1 Non-Technical Summary of EIS for Mining and Processing of Auriferous Ores from the Ada Tepe Prospect of the Khan Krum Deposit near Krumovgrad Site, which is required under the Regulation on the Terms and Procedures for Assessment of the Compatibility of Plans, Programs, Projects and Investment Proposals with the Scope and Objectives of Protected Sites (2007, last amendment in 2010). The EIS conforms to Bulgaria’s current primary and secondary environmental legislation. The EIA of the Krumovgrad Gold Project aims to define, describe and assess the direct and indirect impacts on the human health and the environmental media including biodiversity and its elements, soil, water, air, climate, landscape, subsurface environment, natural sites, diversity of minerals, and their interactions. This EIS considers construction, operation and closure stages of the Project. It also