NEW KLEINFONTEIN GOLDMINE (PTY) LTD MODDER EAST OPERATIONS

SOCIO-ECONOMIC IMPACT ASSESSMENT FOR THE PROPOSED HOLFONTEIN PROJECT, GAUTENG PROVINCE

AUGUST 2015

PREPARED FOR:

New Kleinfontein Goldmine (Pty) Ltd P.O. Box 262 Dunnottar 1590

REVISION TABLE

REV DATE AUTHOR INTERNAL REVIEW

1 23/04/2015 Zoë Gebhardt Gené Main 2 08/05/2015

3 22/07/2015 Zoë Gebhardt Gené Main 4 06/08/2015

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page i of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668 EXECUTIVE SUMMARY

The Applicant has appointed Prime Resources (Pty) Ltd “Prime Resources” to conduct the scope associated with this Socio-Economic Impact Assessment (SIA), the purpose of which is to inform the Environmental Impact Assessment (EIA) and Environmental Management Programme Report (EMPr) for the proposed Holfontein Project.

The proposed Holfontein Project is located across Portion 32 and Portion 68 of Holfontein 71 IR, near the towns of Daveyton and Springs within the Ekurhuleni Metropolitan Municipality, East Rand, Gauteng Province. The shaft area falls within Ward 67 and the road runs over both Ward 67 and 72 of the Ekurhuleni Metropolitan Municipality. The existing shaft area neighbours the Holfontein Community, made up of the Khomponi Community located adjacent to the shaft and the Holfontein Quarters Community located on the other side of the N12 highway, while the haul road will follow Carnation Road, which neighbours Welgedacht Small Holdings.

The proposed Holfontein Project will be operated as a section of Modder East Operations with all services and support being provided by Modder East Operations. The Life of Mine will consist of 2 years of construction and development and 8 years of gold production. A further 6 months to a year is assumed for decommissioning and closure.

Legislation, Policy and Planning

There are a number of legislative requirements which must be considered in any Socio-Economic Impact Assessment. Below is a list of the pertinent ones:

Constitution of the Republic of South Africa (Act No. 108 of 1996)
National Environmental Management Act (No. 107 of 1998)
National Water Act (No. 36 of 1998)
Promotion of Administrative Justice Act (No. 3 of 2000)
Development Facilitation Act (No. 67 of 1995)

The following reports are relevant to this study and project area and have been referenced and consulted throughout the study:

Ekurhuleni Metropolitan Municipality Integrated Development Plan (2013 -2016)
Ekurhuleni Metropolitan Municipality Regional Spatial Development Framework: Region C (Draft November 2014)
Ekurhuleni Metropolitan Municipality Built Environment Performance Plan (2014 -2015)
Ekurhuleni Metropolitan Municipality Corporate Disaster Management Plan (2011)

Methodology

The SIA has been undertaken in line with the Baseline and Environmental Impact Assessment process outlined in the National Environmental Management Act (No. 107 of 1998) and therefore comprises two reporting phases - a baseline phase and an impact assessment phase.

Data was collected from a number of sources in order to collate a robust and reliable data set. The following consultation was undertaken:

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page ii of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668
A meeting was held with Mr Moatlhudi Mogwera and Ms Ntokozo Dladla, the Social and Labour Plan Officers at the existing Modder East Operations, on 24 February 2015;
A meeting was held with Ekurhuleni Metropolitan Municipality Disaster and Emergency Management Services on 10 April 2015 at their Springs offices;
Site visits to the Khomponi Community were undertaken on 2 September 2014, 12 March 2015, 10 April 2015, 10 June 2015 and 23 June 2015;
A site visit to the Holfontein Quarters Community was undertaken on 2 July 2015;
Meetings with the Welgedacht Small Holdings residents were held on 23 June 2015 and 7 July 2015; and
The ward councillor of Ward 67, Mr Masele Madihlaba, as well as Mr Mandla Dlamini from the Gauteng Department of Agriculture and Rural Development (GDARD) were consulted with.

National and municipal statistical data and local primary data were discussed and compared against 4 key indicators, namely Age and Gender, Employment, Education, and Household utilities.

Socio-Economic Overview

The Ekurhuleni Metropolitan Municipality (EMM) was established in 2000, and covers an extensive geographical area. Former local administrations of the nine towns in the East Rand – Alberton, Benoni (including Daveyton and Etwatwa), Boksburg, Brakpan (including Tsakane), Edenvale/Lethabong, Germiston, Kempton Park/Tembisa, Nigel (including Duduza) and Springs (including Kwa-Thema) – were amalgamated into the new metropolitan municipality, along with two other councils – the Khayalami Metropolitan and Eastern Gauteng Services Councils.

The Holfontein Project is located in Region C of the EMM, which is on the Eastern side of Gauteng Province. Region C includes Benoni and Daveyton and is characterised by open spaces, consisting of environmentally sensitive areas and agricultural land. The Regional Spatial Development Framework indicated that Region C is largely allocated to future urban development and agriculture. The main access routes in Region C include the N12 highway, and the R50, R51 and R25 regional routes. The shaft area falls within Ward 67 and the haul road crosses both Ward 67 and 72 of the EMM.

Socio-Economic Challenges

The Integrated Development Programme highlights the following core socio-economic challenges currently facing the EMM:

Systemic poverty and inequality: certain interventions such as social grants and indigent support have been implemented in EMM but further integration with other development interventions (such as small business development) is required;
Food scarcity: poverty in cities is linked to lack of food, as food is a cash commodity. Social support food networks within EMM need to be further explored;
Inadequate human capabilities development: lack of investment into economic and social skills development, which is currently the responsibility of formal education institutions but is not always sufficiently dealt with by these institutions, and excludes anyone not enrolled in such an institution;

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page iii of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668
Lack of integration in child and family development: current early childhood development programmes are not linked to family development; this lack of integration results in inconsistent and sometimes ineffective socio-economic development;
Inadequate youth development: this development programme is largely focused on unemployment. It also needs to focus on socio-economic development and support for various youth categories; and
HIV / Aids: EMM has high HIV/AIDS infection levels. The current programme has largely been focused on treatment. It needs to also be focused on lifestyle choices and education.

Region C is experiencing a shortfall in educational, recreational, healthcare and community services. In Region C there are 519 erven (portions of land) zoned for social and community facilities; of these, 330 erven are currently undeveloped. The problem of providing these facilities is therefore not the availability of land but rather the physical development of these facilities.

Statistical Profile of Ekurhuleni Metropolitan Municipality

EMM has a total surface area of 1,975 km² that accommodates a population of 3,1 million. Migration into the area is a key challenge. This is visible in the number of informal settlements and informal trading activity. Below is a summary of the current statistical profile:

Age and Gender: the 2011 census indicated that EMM has a male-dominated adult population with the majority distribution being between 25 and 29;
Education and Employment: EMM education statistics have improved over the last 16 years. The unemployment rate increased from 1996 to 2001, but decreased by 11.6 % from 2001 to 2011;
Household Utilities: the percentage of households with electricity for lighting and cooking increased from 1996 to 2011. The percentage of households with access to piped water and formal sanitation within their dwelling / yard increased from 1996 to 2011; and
Informal Settlements: the number of households living in informal dwellings (shacks) has decreased by 25,211 over the ten year period 2001 to 2011. On average access to basic services within informal settlements did not improve significantly between 2001 and 2011.

Statistical Profile of Region C and Ward 67

Region C accommodates a total population of 401,270, while Ward 67 accommodates 37,500 of that. There are estimated to be 134,000 households within Region C with a population density of 403 people per km 2. The ratio of males to females is 1:1 and the predominant age category is 0-4 years, unlike that of the greater EMM which has a predominant age group of 25 to 29.

In 2012, 37.1 % of the region’s total population was living in poverty; a significantly higher percentage than that of EMM. The social facilities in Region C are concentrated in the built-up areas, and they appear to be in line with the requirements; however the Governance Report for Ward 67 highlights areas within the Ward where informal settlements are still greatly lacking in basic services and infrastructure.

Socio-Economic Profile of the Project Area

The following receptor communities were identified.

The Khomponi Community

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page iv of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668 The Khomponi Community is living within the historical mine hostel and house, as well as informal dwellings in proximity to the hostel and house. This community has an estimated population of 200 people. The hostel is made up of 4 housing blocks which are home to 33 households, while the house is home to 3 households. There are 8 informal dwellings surrounding both the house and hostel.

The nearest clinic is in Slovo Park, approximately 5 km away. There is a small tuck shop within the hostel, run by one of the residents, however the nearest formal shops and police station are in Sundra, approximately 7 km walking distance. Below is a summary of the current statistical profile:

Age and Gender: ranges from ages of 1 to 71, and the male to female ratio appears to be 1:1;
Education and Employment: approximately 50 % of the working males (20 and older) have piece jobs (ad hoc) on local farms or in local industry. A small percentage of the older women have employment in Sundra as domestic workers. Approximately 20 of the children attend primary and secondary school in Sundra;
Household Utilities: the community has no running water, formal sanitation or electricity;
Sense of Place: the hostel and house were observed to be in poor condition. Subsistence farming is undertaken on a small scale to grow pumpkins and maize for food. It should be noted that this community is well established. They have created a functional home for themselves and expressed concern about being relocated and / or losing their homes.

The Holfontein Quarters Community

The Holfontein Quarters Community is living within the historical mine houses (approximately 860 m from the proposed mining area), which fall within the Breswol Agricultural Holdings on the other side of the N12 highway. This community occupies 13 houses, which each have a garage / outbuilding (some of which had been converted into housing), with an estimated 2 families / households per house.

The nearest clinic is in Slovo Park, approximately 7 km away or in Etwatwa, approximately 4 km away. The nearest formal shops and police station are also in Etwatwa. Below is a summary of the current statistical profile:

Age and Gender: ranges from ages of 1 to 65, and the male to female ratio appears to be 1:1;
Education and Employment: approximately 80 % of the working males (20 and older) have permanent / contract jobs at the Holfontein Hazardous Waste Landfill site. Most of the children attend primary and secondary school in Slovo Park;
Household Utilities: the community has no running water, formal sanitation or electricity;
Sense of Place: the houses were observed to be in better condition than that of the house and hostel in the Khomponi Community. It should be noted that this community is well established.

The Welgedacht Small Holdings

The Small Holdings are dissected by four main roads running from east to west, off Pansy Avenue, namely Carnation Road, Dahlia Road, Phlox Road and Aster Road. These main roads are intersected by north- south running roads namely, Rose Avenue, Daisy Avenue and Poppy Avenue. The portions of land are used as either private residences, businesses or grazing land. Below is a summary of the current statistical profile:

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page v of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668
Age and Gender: approximate age of residents and business owners is between 1 and 75 years old and the male to female ratio appears to be slightly more male dominated, possibly 1:2;
Employment and Education: most adult residents have a tertiary education and are currently employed. The children currently attend Springs Primary or Secondary Schools or Sundra Primary School; and
Household Utilities: the houses and businesses all use borehole water as their primary water source. Most properties have access to formal sanitation (flush toilets) and all properties have electricity.

Socio-Economic Impact Assessment

The potential socio-economic issues and impacts associated with the proposed project have been identified, and the (SIA) has aimed to establish the environmental significance of these potential impacts through application of a framework for assessing significance. The impacts were identified as direct, indirect or cumulative impacts.

Direct Impacts

The significant direct negative impacts were identified as follows:
Migration of job seekers into the project area;
Decrease in air quality as a result of dust, hauling vehicles and loading of rock into trucks;
Increase in ambient noise levels at the shaft as a result of truck loading activities and the continuous operation of the vent shaft;
Proposed infrastructure will result in a visual intrusion;
Visual nuisance factors such as extensive lighting used at night;
Road safety – increased danger / pedestrians and livestock mortality rates as a result of additional haul vehicle traffic on haul route; and
Decrease in land capability as a result of ineffective on-site management and rehabilitation.

Indirect Impacts

The significant indirect negative impacts were identified as follows:
Overcrowding leading to pressure on existing infrastructure and services;
Overcrowding leading to social ills and decreased quality of life;
Establishment of tuck shops and canteens in the Holfontein project area in order to supply mine employees and new residents with food and drink; and
Loss of sense of place due to overcrowding, increased noise and traffic, and a change in the visual landscape.

Cumulative Impacts

The significant cumulative negative impacts were identified as follows:

Increased heavy vehicle traffic resulting in decreased air quality; and
Increase in seasonal flooding downstream of project area.

Mitigation, Management and Monitoring

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page vi of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668 Impacts associated with air and noise pollution as well as traffic safety and potential flooding can be mitigated, managed and controlled, and were not considered significant post-mitigation. The key mitigation measures proposed to manage these impacts are as follows:

A water spray dust suppression system must be administered on site and along the haul route during construction, operation and decommissioning phases;
A waste rock berm and wall must be erected around ore hoisting and loading areas (6 m in height) to provide a natural noise barrier between the boundary of the activities and the Khomponi Community;
It is recommended that vertical axial fans are installed below the surface level within the ventilation shaft. It is further recommended that vertical attenuated exhaust / intake stacks are utilised at surface level;
It is recommended that a pedestrian walkway be installed along the Holfontein Road in order to limit pedestrian traffic accidents and to ensure children have a safe path to Pansy Avenue;
Air quality, noise and traffic safety monitoring measures must be implemented;
It is recommended that the unpaved portion of the haul route between the Blesbokspruit crossing and the paved portion of Carnation Road be paved; and
It is recommended that the mine discharge excess groundwater to a point opposite the ERWAT Welgedacht Waste Water Treatment Plant, which will ensure that there is no cumulative impact on the flood conditions experienced by the Welgedacht Small Holdings residents.

The impacts related to in-migration and associated overcrowding of the Khomponi Community are impossible to predict and thus difficult to quantify. These impacts can therefore not be mitigated instead a socio-economic management and monitoring plan must be implemented throughout the LoM. Some of the most important management measures are as follows:

Transparent, effective and ongoing community engagement;
Establishment of a Community Engagement and Security Forum to ensure that stakeholders are notified and consulted throughout the LoM;
Prompt response to grievances raised by IAPs and community members via an established grievance mechanism;
Development of an In-Migration Management Plan in order to reduce the in-migration of job- seekers into the area and to mitigate the associated negative impacts. It is recommended that this Plan be compiled in collaboration with the EMM, local authorities and residents of the area;
Compilation of a Community Development Programme specifically for the Holfontein Project. It is recommended that this is undertaken in collaboration with EMM and local government.

None of the direct or indirect impacts identified are expected to affect the Holfontein Quarters Community, due to their distance from the proposed project.

Conclusion

The potential socio-economic impacts of the proposed project are largely considered manageable with the effective implementation of the proposed mitigation measures, management and monitoring plan. It is however essential that the proposed mitigation and management measures are implemented consistently and effectively.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page vii of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668 NEW KLEINFONTEIN GOLDMINE (PTY) LTD MODDER EAST OPERATIONS

SOCIO-ECONOMIC IMPACT ASSESSMENT FOR THE PROPOSED HOLFONTEIN PROJECT, GAUTENG PROVINCE

TABLE OF CONTENTS | REPORT STRUCTURE

1 Introduction ...... 1

1.1 Details of Author ...... 1 1.1.1 Declaration of Independence ...... 1

2 Project Overview ...... 2

2.1 Project Location ...... 2 2.2 Project Description ...... 2

3 Legislation and guidelines ...... 6

3.1 Legislation ...... 6 3.1.1 Constitution of the Republic of South Africa (Act No. 108 of 1996) ...... 6 3.1.2 National Environmental Management Act (No. 107 of 1998) (NEMA) ...... 6 3.1.3 National Water Act (No. 36 of 1998) (NWA) ...... 7 3.1.4 Promotion of Administrative Justice Act (No. 3 of 2000) (PAJA) ...... 7 3.1.5 Development Facilitation Act (No. 67 of 1995) (DFA)...... 7 3.2 Policy and Planning ...... 7 3.2.1 EMM Integrated Development Plan (IDP) (2013 -2016) ...... 7 3.2.2 EMM Regional Spatial Development Framework (RSDF): Region C (Draft November 2014) ...... 8 3.2.3 EMM Built Environment Performance Plan (BEPP) (2014 -2015) ...... 9 3.2.4 EMM Corporate Disaster Management Plan (2011) ...... 9 3.3 Guidelines ...... 10 3.3.1 International ...... 10 3.3.2 National ...... 10

4 Methodology and Approach ...... 11

4.1 Data collection ...... 11 4.1.1 Desktop Research ...... 11 4.1.2 Stakeholder Engagement ...... 11 4.2 Data Analysis ...... 13

5 Limitations and Assumptions ...... 14

5.1 Census Data ...... 14 5.2 Questionnaire and Interviews ...... 14 5.3 Alternatives ...... 14

6 Socio-Economic Baseline Characterisation ...... 15

6.1 Geographical and Administrative Context ...... 15 6.2 Socio-Economic Overview ...... 16 6.2.1 Ekurhuleni Metropolitan Municipality ...... 16 6.2.2 Region C and Ward 67 ...... 16 6.3 Statistical Profile of Ekurhuleni Metropolitan Municipality ...... 19

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page viii of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668 6.4 Statistical Profile of Region C and Ward 67 ...... 26 6.5 Socio-Economic Profile of the Project Area ...... 26 6.5.1 The Holfontein Community ...... 26 6.5.2 The Welgedacht SH ...... 34

7 Socio-Economic Impact Assessment ...... 39

7.1 Impact Rating Methodology ...... 40 7.2 Direct Impacts ...... 41 7.2.1 Continued Employment for ME Operations Employees ...... 41 7.2.2 Temporary or Permanent Migration of Job Seekers into the Project Area ...... 41 7.2.3 Decrease in Air Quality at the Site ...... 43 7.2.4 Increase in Noise Pollution at the Site ...... 44 7.2.5 Visual Intrusion on the Landscape Character ...... 46 7.2.6 Visual Nuisance Factors ...... 46 7.2.7 Impact on Groundwater Users Due to Dewatering Activities of Mining Sections ...... 47 7.2.8 Increased Pedestrian / Domestic Animal Injury and Mortality ...... 48 7.2.9 Decrease in Land Capability ...... 50 7.3 Indirect Impacts ...... 51 7.3.1 Overcrowding Leading to Pressure on Existing Infrastructure and Services ...... 51 7.3.2 Overcrowding Leading to Social Ills and Decreased Quality of Life ...... 51 7.3.3 Establishment of Shops and Canteens near the Holfontein Site ...... 52 7.3.4 Loss of Sense of Place Due to Overcrowding, Increased Noise and Traffic, and a Change in the Visual Landscape ...... 53 7.3.5 Reduction in Air Quality Affecting Crops and Farming Livelihoods ...... 53 7.4 Cumulative Impacts ...... 60 7.4.1 Increased Dust / Particulate Matter at the Site ...... 60 7.4.2 Increased Heavy Vehicle Traffic Resulting in Decreased Air Quality ...... 61 7.4.3 Increased Heavy Vehicle Traffic Resulting in Increased Pedestrian / Livestock Injury and Mortality ...... 61 7.4.4 Increase in Seasonal Flooding Downstream of Project Area ...... 62

8 Socio-Economic Management and Monitoring Plan...... 64

8.1 Social and Labour Plan (SLP) ...... 64 8.2 Community Development Plan (CDP) ...... 64 8.3 Community Engagement ...... 65 8.4 Training and Awareness Programmes ...... 66 8.4.1 Employee and Contractor Training ...... 66 8.4.2 Community Training ...... 66 8.5 Security Personnel ...... 66 8.6 In-Migration Management Plan ...... 67 8.7 Emergency Preparedness and Response Plan ...... 67 8.8 Socio-Economic Monitoring Programme ...... 67 8.8.1 Objective ...... 67 8.8.2 Monitoring Sites ...... 67 8.8.3 Programme ...... 67 8.8.4 Reporting ...... 69

9 Conclusion ...... 70

10 References ...... 73

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page ix of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668

FIGURES Figure 1: The locality of the proposed project area ...... 3 Figure 2: Ward 67 and 72 of the EMM, with the project area identified in red ...... 4 Figure 3: The proposed project layout relative to local communities ...... 5 Figure 4: Regions A to F of EMM. Region C is outlined in red (M. Kriek, 2014) ...... 15 Figure 5: Draft Regional Spatial Development Framework for Region C (M. Kriek, 2014) ...... 17 Figure 6: Distribution of population by age and gender, Ekurhuleni district – 1996, 2001 and 2011 (Statistics South Africa, 2012) ...... 20 Figure 7: Population growth rates by district municipality and Gauteng province – 1996, 2001 and 2011 (Statistics South Africa, 2012) ...... 21 Figure 8: Distribution of the population aged 20 years and older by highest level of education and district municipality and Gauteng province – 1996, 2001 and 2011 (Statistics South Africa, 2012) ...... 22 Figure 9: Unemployment rate by district municipality and Gauteng province – 1996, 2001 and 2011 (Statistics South Africa, 2012) ...... 23 Figure 10: Informal settlement access to services in EMM (Housing Development Agency, 2013) ...... 25 Figure 11: The Khomponi Community dwellings, surrounding the Holfontein shaft area ...... 29 Figure 12: The Holfontein Quarters Community dwellings, across the N12 highway from the Holfontein Project area ... 33 Figure 13: Farm portions within the Welgedacht SH ...... 36 Figure 14: Proposed wall and berm to act as noise barriers around the project area ...... 45 Figure 15: The proposed pedestrian walk way along Holfontein Road ...... 49 Figure 16: Location of Carnation Road upgrade and proposed discharge pipeline ...... 63

TABLES

Table 1: Welgedacht SH registered IAPs ...... 34 Table 2: Summary of Direct Impacts ...... 55 Table 3: Summary of Indirect Impacts ...... 59

APPENDICES

Appendix 1: Declaration of Independence Appendix 2: New Kleinfontein Goldmine (Pty) Ltd Social and Labour Plan Officer Meeting Minutes Appendix 3: Questionnaires Appendix 4: Holfontein Quarters Community Meeting Notes

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page x of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668 LIST OF ACRONYMS

AH Agricultural Holdings BEPP Built Environment Performance Plan CBD Central Business District CDP Community Development Plan CESF Community Engagement and Security Forum CSIR Council for Scientific and Industrial Research DEA Department of Environmental Affairs DEAT Department of Environmental Affairs and Tourism DMR Department of Mineral Resources DWS Department of Water and Sanitation ECO Environmental Control Officer EE Employment Equity EIA Environmental Impact Assessment EMP Environmental Management Programme EMPr Environmental Management Programme Report EPR Emergency Preparedness and Response ERWAT East Rand Water Care Association GDARD Gauteng Department of Agriculture and Rural Development GDP Gross Domestic Product GM Grievance Mechanism HAZOP Hazard and Operability Study HRD Human Resources Development HRM Human Resources Manager IAIA International Association for Impact Assessment IAPs Interested and Affected Parties ID Identity Documents IDP Integrated Development Plan IFC International Finance Corporation LED Local Economic Development LOM Life of Mine ME Modder East MPRDA Mineral and Petroleum Resources Development Act No. 28 of 2002 NAAQS National Ambient Air Quality Standards NEMA National Environmental Management Act, No. 107 of 1998 NEM:AQA National Environmental Management: Air Quality Act, No. 39 of 2004 NKGM New Kleinfontein Goldmine (Pty) Ltd RAP Resettlement Action Plan RDP Reconstruction and Development Programme RSDF Spatial Development Framework SAAQIS South African Air Quality Information System SANS South African National Standards

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page xi of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668 SASSA South African Social Security Agency SEMMP Socio-Economic Management and Monitoring Plan SEP Stakeholder Engagement Plan SH Small Holdings SIA Socio-Economic Impact Assessment VAC Visual Absorption Capacity WWTW Waste Water Treatment Works

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page xii of xii Report Title: Socio-Economic Impact Assessment Project Number: 140668 1 INTRODUCTION

New Kleinfontein Goldmine (Pty) Ltd (NKGM), “the Applicant”, has targeted an additional gold resource in the Gauteng Province, adjacent to their existing Modder East (ME) Operations, for the extension of their operations to include the proposed underground mining Holfontein Project. As such, the Applicant is pursuing an amendment to their existing approved Environmental Management Programme (EMP) (DMR Ref No. WV 5/3/2/987 and PWV 6/2/2/1136) in terms of Section 102 of the Minerals and Petroleum Resources Development Act, No. 28 of 2002 (MPRDA), as well an application for Environmental Authorisation for activities listed in terms of the National Environmental Management Act, No. 107 of 1998 (NEMA) and the Environmental Impact Assessment (EIA) Regulations (GNR982 of 2014).

The Applicant has appointed Prime Resources (Pty) Ltd “Prime Resources” to conduct the scope associated with this Socio-Economic Impact Assessment (SIA), the purpose of which is to inform the EIA and EMP Report (EMPr) for the proposed Holfontein Project.

1.1 Details of Author

Name of Firm: Prime Resources (Pty) Ltd 70 - 7th Avenue, Parktown North, Physical Address: Johannesburg Postal Address: PO Box 2316, Parklands, 2121 Telephone Number: 011 447 4888 Fax Number: 011 447 0355 Email: zoe @resources.co.za

Zoё Gebhardt, the Senior Scientist and principal author, has a M.Sc. (Hydrology and Business Management) from Imperial College London and three years’ experience in the field of environmental and social science.

1.1.1 Declaration of Independence

Zoё Gebhardt is an independent environmental consultant with no vested interest in the proposed project other than to fulfil the contract for delivery of specialised services including, among others, those stipulated in the terms of reference. The official declaration of independence form is attached as Appendix 1.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 1 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 2 PROJECT OVERVIEW

2.1 Project Location

The proposed Holfontein Project is located across Portion 68 and Remaining Extent of Holfontein 71 IR, near the towns of Daveyton and Springs within the Ekurhuleni Metropolitan Municipality (EMM), East Rand, Gauteng Province (Figure 1).

The shaft area falls within Ward 67 and the haul road runs through both Ward 67 and 72 of the EMM (Figure 2). The existing shaft area neighbours the Holfontein Community, which is divided into the Khomponi Community who live adjacent to the shaft, and the Holfontein Quarters Community, who reside close to the shaft but across the N12 highway (Figure 3). The proposed haul road runs along Carnation Road, which neighbours the Welgedacht Small Holdings (SH) (Figure 3).

2.2 Project Description

The proposed Holfontein Project will be operated as a section of ME Operations with all services and support being provided by ME Operations. The Life of Mine (LoM) will consist of three years of construction (2019 – 2021) and development and 8 years (2021 – 2028) of gold production. A further 6 months to a year is assumed for decommissioning and closure. The following infrastructure will be utilised / constructed:

Primary access will be by means of the existing Holfontein shaft (Figure 3).
Overburden and ore will be hoisted through the shaft, and rock hoisting will be limited to a 12 hour day shift to limit the noise associated with tipping and trucking of ore.
Rock will tip from the skip every 2 minutes into a concrete bin rather than a steel bin in order to limit associated noise. The material loaded will be wet in order to limit dust generation.
All overburden and ore will be transported from the Holfontein shaft to the ME Operations plant by road (Figure 3). The estimated hauling cycle time between the Holfontein shaft and the ME Operations for a 30 tonne road truck is 30 minutes. Two trucks will be required, and will operate for 12 hours a day during daylight hours.
A ventilation shaft (± 30 m in height) will be constructed (Figure 3), with a single fan station and compressor on surface, both of which will run continuously.
Finally, mine employees will be transported by bus from ME Operations, where there are existing change rooms etc., to Holfontein. There will be a covered waiting area on surface which will be able to accommodate 400 employees (the estimated staff complement per shift).

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 2 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 1: The locality of the proposed project area

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 3 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 2: Ward 67 and 72 of the EMM, with the project area identified in red

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 4 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 3: The proposed project layout relative to local communities

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 5 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 3 LEGISLATION AND GUIDELINES

3.1 Legislation

There are a number of legislative requirements and guidelines which must be considered in any SIA. These are identified and summarised below.

3.1.1 Constitution of the Republic of South Africa (Act No. 108 of 1996)

The Constitution of the Republic of South Africa (Act No. 108 of 1996) has been adopted as the supreme law of the country and forms the foundations for a democratic society in which fundamental human rights are protected. In terms of the environment, Chapter 2 Section 24 states that everyone has a right:

a) “To an environment that is not harmful to their health or well ‐being; and b) To have the environment protected, for the benefit of present and future generations, through reasonable legislative and other measures that i. prevent pollution and ecological degradation; ii. promote conservation; and iii. secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development.”

This SIA assesses the impact of the development on the well-being of people in order to safeguard their future well-being.

3.1.2 National Environmental Management Act (No. 107 of 1998) (NEMA)

The NEMA is intended to provide a framework for integrating environmental management into all developmental activities to promote co-operative environmental governance with regard to decision making by state organs on matters affecting the environment. These are some of the principles of NEMA which have an important bearing on the socio-economic aspects of this project:

Environmental management must place people and their needs at the forefront of its concern, and serve their physical, psychological, developmental, cultural and social interests equitably;
Development must be socially, environmentally and economically sustainable;
Decisions must be made in an open and transparent manner, and access to information must be provided in accordance with the law; and
The environment is held in public trust for the people. The beneficial use of environmental resources must serve the public interest and the environment must be protected as the peoples’ common heritage.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 6 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 3.1.3 National Water Act (No. 36 of 1998) (NWA)

The fundamental principles of the NWA recognize that sustainability and equity are central guiding principles in the protection, use, development, conservation, management and control of South Africa’s water resources. These guiding principles also recognise the basic human needs of current and future generations and the need to promote socio-economic development through water usage.

Section 27 of the NWA requires that the applicant of a project provide a motivation in terms of the efficient and beneficial use of water in the public interest and a description of the socio-economic impact of the issuing or refusal of a Water Use Licence (WUL). The Applicant will submit a motivation in terms of Section 27 together with their Water Use Licence Application (WULA), as required by the NWA.

3.1.4 Promotion of Administrative Justice Act (No. 3 of 2000) (PAJA)

In terms of the Bill of Rights, everyone has the right to administrative action that is lawful, reasonable and procedurally fair. This right has been given effect via the PAJA. The provisions of the PAJA apply to all decisions of all organs of state exercising public power or performing a public function in terms of any legislation that adversely affects the rights of any person. The Act also prescribes the procedure that must be followed by an organ of State when it makes decisions. If an organ of State implements a decision that impacts on an individual or community without granting them an opportunity to comment, the ultimate decision will be unlawful and may be set aside.

3.1.5 Development Facilitation Act (No. 67 of 1995) (DFA)

A number of key planning principles, set out in Section 3 of the DFA, have a bearing on assessing a proposed development in terms of the national planning requirements. The planning principles include: promoting the integration of the social, economic, institutional and physical aspects of land development; optimising the use of existing resources, including such resources relating to agriculture, land, minerals, bulk infrastructure, roads, transportation and social facilities; and encouraging environmentally sustainable land development practices and processes.

3.2 Policy and Planning

The following reports are relevant to this study and project area, and have been referenced and consulted throughout the study.

3.2.1 EMM Integrated Development Plan (IDP) (2013 -2016)

The integrated planning approach for the EMM is documented in the IDP which focuses on bulk service delivery as well as major and future developments in the region and the associated potential to alleviate poverty and enhance economic growth. The vision of the EMM is based on

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 7 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 the provision of sustainable and people-centred development services that are affordable, appropriate and of high quality. They are focused on social, environmental and economic regeneration of the city and its communities.

Relevance to the project

The IDP highlights the following core socio-economic challenges facing the EMM:

Systemic poverty and inequality: typical of all South African cities. Certain interventions such as social grants and indigent support have been implemented in EMM but further integration with other development interventions (such as small business development) is required;
Food scarcity: poverty in cities is linked to lack of food, as food is a cash commodity. Social support food networks within EMM need to be further explored;
Inadequate human capabilities development: such as lack of investment into economic and social skills development, which is currently the sole responsibility of formal education institutions but not always sufficiently dealt with by these institutions and excludes anyone not enrolled in such an institution;
Lack of integration in child and family development: current early childhood development programmes are not linked to family development, this lack of integration results in inconsistent and sometimes ineffective socio-economic development;
Inadequate youth development: this development programme is largely focused on unemployment. It also needs to focus on socio-economic development and support for various youth categories; and
HIV / Aids: EMM has high HIV/Aids infection levels. The current programme has largely been focused on treatment. It needs to also be focused on lifestyle choices and education.

The SIA will need to consider these issues with respect to the local communities potentially affected by the project.

3.2.2 EMM Regional Spatial Development Framework (RSDF): Region C (Draft November 2014)

A SDF integrates development and conservation objectives in order to create an aligned planning tool for spatial development. In order to address the spatial issues and challenges and to direct development within the metropolitan area, the EMM completed the formulation of Regional SDFs for Regions A, B, C, D, E and F. The purpose of the SDF for Region C is to understand the current spatial development of the region in order to present a clear strategic vision for its future spatial growth.

Relevance to the project

The project area falls within Ward 67, which is within Region C. The RSDF provides information regarding existing infrastructure as well as current and future spatial development in the project area. The RSDF indicates that much of Region C is largely allocated to future urban development and agriculture.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 8 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 3.2.3 EMM Built Environment Performance Plan (BEPP) (2014 -2015)

The BEPP is a long-term, outcomes-based strategic plan aimed at the integration of South African cities towards accelerated and inclusive economic growth. The BEPP identifies and discusses five major trends and pressures on the EMM built environment and discusses infrastructure and development backlogs facing the Municipality.

The BEPP identifies land as the most significant constraint. Land within the urban edge will be developed by around 2019-2020, and significant investments in additional bulk and distribution infrastructure outside the urban edge will be necessary. Development patterns and trends in the metropolitan area indicate that government low cost housing programmes and not necessarily policies are directly contributing to urban sprawl. When this is linked to access service backlogs it is clear that the vision of sustainable human settlements is not being achieved (BEPP, 2014).

The BEPP indicates that existing backlogs with respect to water, sanitation and electricity are largely the result of new township establishment, the formation of informal settlements and the municipality having opted for higher level of services than the national minimum levels of service adopted. It further states that EMM is currently facing a housing backlog of 209 420.

Relevance to the project The BEPP identifies the disadvantaged communities of Etwatwa and Daveyton as target areas for service upgrading, both these areas being close (approximately 4 and 8 km respectively) to the project area. The Holfontein Community are lacking in water, formal sanitation and electricity services and thus are victims of the EMM backlog. During public consultation, community members expressed frustration with regard to the housing backlog, having been promised Reconstruction and Development Programme (RDP) housing during the 1990s.

3.2.4 EMM Corporate Disaster Management Plan (2011)

This plan determines actions to be taken by EMM Disaster and Emergency Management Services and cooperating private organizations, to prevent and mitigate disasters through the following:

Reducing the vulnerability of EMM residents to any disasters that may occur;
Establishing capabilities for protecting citizens from the effects of a disaster;
Responding effectively to the actual occurrence of disasters; and
Providing for recovery in the aftermath of any disaster involving extensive damage or other debilitating influence on the normal pattern of life within the community.

The plan focuses on disaster risk reduction as a key strategy to reduce disaster risk, decrease community vulnerability and ensure an increase in coping capacity.

Relevance to the project

Consultation with EMM Disaster and Emergency Management Services was undertaken and the Department was able to assist in community consultation and data collection (further discussed in Section 4.1.2). EMM Disaster and Emergency Management Services endeavour to assist and educate communities, such as the Holfontein Community, with respect to fire safety in the home,

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 9 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 HIV / AIDS awareness, the dangers associated with illegal mining etc. in order to improve their living conditions, protect their wellbeing and to pre-empt possible damage and disasters.

Special thanks must be given to Ms Adele Pratt and Mr Jan Heyneke for their assistance in collecting community information and data.

3.3 Guidelines

3.3.1 International

International Association for Impact Assessment (IAIA)

The International Principles for Social Impact Assessment (SIA) published by the IAIA states that the goal of a social impact assessment is to bring about an improvement in the quality of life of the current and future generations of a specific project area. A SIA must therefore strive to reduce or mitigate the potential socio-economic impacts of a project in a specific project area, while promoting community development and empowerment, and developing social capital.

The IAIA proposes that the focus of a SIA is a proactive stance to development and better development outcomes, not just the identification of negative or unintended outcomes. Assisting communities and other stakeholders to identify development goals and ensuring that positive outcomes are maximised can be more important than minimising harm from negative impacts. The good practice of a SIA furthermore accepts that social, economic and biophysical impacts are inextricably interconnected. A SIA must, therefore, consider the second and higher order impacts and cumulative impacts.

International Finance Corporation (IFC)

The IFC is a member of the World Bank Group, and one of the largest development financing institutions that focuses exclusively on the private sector in developing countries (IFC, 2012). The IFC published its Performance Standards (PS) on Environmental and Social Sustainability in April 2006, and published comprehensive Guidance Notes (GN) in July 2007. The PS and GN were revised in 2012 (IFC, 2012). These PS and GN provide SIA best practice guidelines that have been referenced where relevant.

3.3.2 National

The former Department of Environmental Affairs and Tourism (DEAT) (now the Department of Environmental Affairs) published a series of guidance documents to assist role players with the environmental authorisation process set out in the EIA Regulations (Chapter 5 of NEMA). This is known as the Integrated Environmental Management Guidelines Series and these guidelines have been followed where relevant.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 10 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 4 METHODOLOGY AND APPROACH

The SIA has been undertaken in line with the Baseline and EIA process outlined in the NEMA and therefore comprises two reporting phases. For the purposes of the socio-economic study, these phases and associated reports have been merged into this document. The processes followed for the two phases are however described below.

Baseline Phase

The baseline phase established the socio-economic conditions of the area, drawing on a variety of policies, plans and statistics as well as primary research based on interviews with key stakeholders (further detailed in Section 4.1). The process involved the identification of receptor communities and key stakeholders, characterisation of the socio-economic baseline, identification of potential issues and impacts as well as setting out of the methodology for the impact assessment. The aim of this phase was to generate an understanding of the socio-economic context and potential receptor communities in the project area.

Impact Assessment Phase

The impact assessment phase involved further desktop research of international literature and guidelines relating to best practices in identifying, assessing and mitigating potential impacts of a project on local communities. The socio-economic context and baseline conditions informed the quantitative assessment of potential impacts, for each project stage - construction, operation, decommissioning and post-closure. Finally, mitigation and management measures are proposed in order to avoid and/or mitigate the identified impacts.

4.1 Data collection

Data was collected from a number of sources in order to collate a robust and reliable data set, however certain limitations apply. These limitations are further discussed in Section 5 below.

4.1.1 Desktop Research

As discussed above (Section 3.2), the following documents and reports were consulted to inform the socio-economic context:

EMM Integrated Development Plan (2013 - 2016)
EMM Regional Spatial Development Framework: Region C (Draft November 2014)
EMM Built Environment Performance Plan (2014 -2015)
EMM Corporate Disaster Management Plan

4.1.2 Stakeholder Engagement

Consultation with NKGM’s Social and Labour Plan (SLP) Officers

A meeting was conducted with Mr Moatlhudi Mogwera and Ms Ntokozo Dladla at the existing ME Operations on 24 February 2015 (see Appendix 2 for these meeting minutes). Mr Mogwera

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 11 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 recommended consultation with Mr Jan Heyneke at EMM Disaster and Emergency Management Services Department, as Mr Heyneke was known to be familiar with the area, and the Department is active in the region.

Site Visits to Holfontein Community

The following site visits were undertaken for the Khomponi Community:

The initial site visit was undertaken on 2 September 2014, and served to establish the current state and extent of residential settlement surrounding the historical mine workings. The sealed shaft as well as the historical mine house and hostel buildings remain on site. These abandoned buildings are inhabited by local residents, who have also built informal dwellings in proximity to the house and hostel (see photographic evidence of this in Section 6.5.1).
A second site visit was undertaken on 12 March 2015, during which questionnaires were administered in both English and Zulu (a copy of this questionnaire is included as Appendix 3) to the residents living in and around the historical mine house and hostel. A survey of Welgedacht SH revealed a number of businesses, private homes and open portions of land. Notes and photographs of these findings were recorded and are further discussed in Section 6.5.2.
A third site visit was undertaken on 10 April 2015. A representative from EMM Disaster and Emergency Management Services introduced the author to Ms Thandi Skhosana, who identified herself as a community leader. Ms Skhosana lives in the historical mine hostel and was able to provide information regarding her household and the community.
A fourth site visit was undertaken on 10 June 2015 as part of the public consultation process to make the Scoping Report available to the Khomponi Community. A Scoping Report, two Scoping Report summaries (one in English and one in Zulu), a site notice, Background Information Documents (BIDs) and response forms were placed within the community (documents were left with Ms Thandi Skhosana and Mr Lucky Mkash) for their perusal.
A fifth site visit was undertaken on 23 June 2015 as part of the public consultation process. A public meeting was held at the Khomponi Community at 16h00 in order to present the Scoping Report findings and explain the NEMA process. During this meeting Mr Mashaba explained that the community, Holfontein Quarters, living on the other side of the N12, formed part of the Khomponi Community and together they referred to themselves as the greater Holfontein Community.

The following site visit was undertaken for the Holfontein Quarters Community:

A site visit was undertaken on 2 July 2015 in order to make the Scoping Report available to the Holfontein Quarters Community. A Scoping Report, two Scoping Report summaries (one in English and one in Zulu), a site notice, Background Information Documents (BIDs) and response forms were placed within the community (documents were left with Ms Busi Maseko for Mr Mashaba) for community perusal. The Scoping Report findings were also

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 12 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 presented to Holfontein Quarters Community residents, who were provided an opportunity to ask questions and raise concerns.

The following site visit and meeting was undertaken and attended by residents of the Welgedacht SH:

A site visit was undertaken on 23 June 2015 as part of the public consultation process. A public meeting was held at the Springs Secondary School at 18h00 in order to present the Scoping Report findings and explain the NEMA process.
A second site visit and authorities meeting was undertaken on 7 July 2015 at the proposed project site. The Ward Councillor (Ward 72) Mr Ramesh Sheodin invited residents from the Welgedacht SH. The Scoping Report findings were presented at the meeting and residents and authorities were provided with a BID and given an opportunity to ask questions and raise concerns.

Consultation with Local Authorities

A meeting and site visit was held with EMM Disaster and Emergency Management Services on 10 April 2015 at their Springs offices. Mr Jan Heyneke and Ms Adele Pratt provided a short report on the community living at and around the Holfontein shaft.

The Ward Councillor, Mr Masele Madihlaba of Ward 67, was consulted with and invited to attend the meetings on 10 April 2015, 23 June 2015, and 7 July 2015 but was unable to attend. However, both Mr Masele Madihlaba and Mr Mandla Dlamini from the Gauteng Department of Agriculture and Rural Development (GDARD) and internal Department of Cooperative Governance and Traditional Affairs (COGTA) assisted in obtaining additional information about Ward 67 by providing the Governance Report for Ward 67 (2011 – 2015) compiled by Mr Madihlaba.

4.2 Data Analysis

National and municipal statistical data and local primary data were discussed and compared against 4 key indicators:

Age and Gender
Employment
Education
Household utilities

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 13 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 5 LIMITATIONS AND ASSUMPTIONS

5.1 Census Data

The 2011 South African Census is the most current source of official statistics and this been used to generate a baseline profile of the EMM. It should be noted that this data may now be out of date to some degree and may no longer accurately reflect the current socio ‐economic profile.

5.2 Questionnaire and Interviews

The data and information collected through the questionnaire and interview process was undertaken by verbal consultation with community members and stakeholders. Some misinterpretation may have occurred as a result of language differences and translation inaccuracies. Similarly, verbal consultation may have resulted in personal bias from the interviewer or interviewee.

Once a relationship was established with community representatives, if was found that the questionnaires were not as valuable as discussions with various community members. Much more information was obtained from community members through open discussion than through the questionnaires (see Meeting Notes attached as Appendix 4). Thus questionnaires were not utilised during Holfontein Quarters Community interviews.

Attempts were made to interview residents and business owners within the Welgedacht SH prior to public consultation. However, almost all of the properties had no direct means of contact (such as telephone numbers or doorbells). Through the public consultation process (BIDs, media and site notices and the public meeting) it was possible to identify Welgedacht residents and business owners. All Welgedacht SH IAPs who were registered on the IAP database were provided with a questionnaire via email (see Appendix 3), in order to better inform this study. Completion of the questionnaire was not obligatory. Only 6 completed questionnaires were received back and these were used to define the Welgedacht SH baseline characteristics.

5.3 Alternatives

It is assumed that the Project will be located on Portion 68 and the Remaining Extent of Holfontein 71 IR. No alternatives to location were assessed as the Project is limited to the location of an existing facility (the reopening of a shaft) and a geological resource.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 14 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 6 SOCIO-ECONOMIC BASELINE CHARACTERISATION

This chapter is a discussion of the socio-economic profile and context of the municipality, region, and local project area.

6.1 Geographical and Administrative Context

The Project is located in Region C of the EMM, which is on the Eastern side of Gauteng Province. Region C includes Benoni and Daveyton (Figure 4) and is characterised by open spaces consisting of environmentally sensitive areas and agricultural land. The built-up zones prevail mainly in an east to west strip of the region including Etwatwa and Daveyton, while the northern and southern areas of the region are largely used for agriculture. The main access routes in Region C include the N12 highway, and the R50, R51 and R25 regional routes.

Figure 4: Regions A to F of EMM. Region C is outlined in red (M. Kriek, 2014)

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 15 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 6.2 Socio-Economic Overview

6.2.1 Ekurhuleni Metropolitan Municipality

The EMM was established in 2000, and covers an extensive geographical area from Germiston in the west to Springs and Nigel in the east. Former local administrations of the nine towns in the East Rand – Alberton, Benoni (including Daveyton and Etwatwa), Boksburg, Brakpan (including Tsakane), Edenvale/Lethabong, Germiston, Kempton Park/Tembisa, Nigel (including Duduza) and Springs (including Kwa-Thema) – were amalgamated into the new metropolitan municipality, along with two other councils – the Khayalami Metropolitan and Eastern Gauteng Services Councils.

The EMM is one of the most densely populated areas in the Province. The economy is large and diverse. Manufacturing in the EMM accounts for just less than 20 % of its Gross Domestic Product (GDP), as the EMM is home to large scale goods and commodities production. Additionally, 14 % of the EMM is regarded as high potential land suitable for agricultural production.

The IDP has identified six social development strategic tensions as critical for the EMM. They relate to systemic poverty and inequality; food scarcity; inadequate human capabilities development; inadequate child, youth and family development; as well HIV/Aids management (as detailed in Section 3.2.1). These are further discussed below in Section 6.3.

6.2.2 Region C and Ward 67

EMM has a diverse range of land use and land capability functions. Much of EMM has been allocated to future development and similarly, the RSDF indicates that much of Region C is largely allocated to future urban development and agriculture (Figure 5). The current agricultural activities occurring within Region C constitute 74 % of the available high potential agricultural land in the region.

In terms of the settlement pattern in Region C, the residential housing component falls mainly in the southern strip of the region. The townships of Daveyton and Etwatwa expand in the eastern corner of this housing strip, while the northern part of Benoni forms the western corner of the strip. The rest of the region consists mainly of agricultural land, as well as Sentrarand (a railroad yard and proposed industrial hub) in the east.

The business and industrial uses, along with a residential component, are mainly focused in the southern part of the region. The industrial uses are largely located along Pretoria Road (M44), correlating with the region’s processing, manufacturing, and distribution functions, which are dispersed along this route to relate with the rest of the industrial focus further to the south and west. The majority of development applications submitted for Region C, from 2005-2012, concern the rezoning of properties and township establishments from agricultural/industrial to residential/mixed use. There is a high demand for residential and mixed uses in the region, emphasising the need for housing provision and retail uses to meet the local community’s needs.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 16 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 Holfontein Project

Figure 5: Draft Regional Spatial Development Framework for Region C (M. Kriek, 2014)

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 17 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 According to the Council for Scientific and Industrial Research (CSIR), sustainable human settlements cannot be achieved without adequate social facilities that are differentiated according to varying development densities, community size, mobility levels and socio-economic variation.

Region C is experiencing a shortfall in educational, recreational, healthcare and emergency services. Currently there are only two proposed new schools in Region C, when it is estimated that 30 Primary and 12 Secondary Schools are required within Region C. There is also a shortfall of three community health centres, three fire stations and one police station within Region C.

In Region C there are 519 erven (portions of land) zoned for social and community facilities; of these, 330 erven are currently undeveloped. The problem of providing these facilities is therefore not the availability of land but rather the physical development of these facilities.

Ward 67 is divided into 7 voting districts. The project area falls within the Vukucinge Primary School voting district, and the Ward Councillor and GDARD have identified the following challenges facing this voting district:

Sewer spillages;
No running water;
No formal sanitation;
Over-population;
High level of crime;
High rate of unemployment;
Irregular or no electricity supply;
Absence of a Secondary School;
Negative and unmitigated effect of heavy flooding during rainy season;
Poor response from ambulance or emergency service;
Residents have to walk to local clinics in Etwatwa or Slovo Park;
Some residents do not have Identity Documents (IDs) because either they are foreign nationals from Lesotho and Zimbabwe thus cannot receive state grants or they are elderly and never obtained them; and
The original owners of the RDP houses are not easily located. Most of the houses have been left with relatives or strangers.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 18 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 6.3 Statistical Profile of Ekurhuleni Metropolitan Municipality

EMM has a total surface area of 1,975 km² that accommodates a population of 3.1 million. EMM is spread over 15.6 % of Gauteng’s land mass, houses 5.4 % of the country’s population, and houses 25.5 % of Gauteng’s population. Migration into the area is a key challenge. This is visible in the number of informal settlements and informal trading activity. The economically active people constitute 41.5 % of the population. The area contributes approximately 6.1 % to national production. Over the period 1996 to 2011, Ekurhuleni’s economy grew by an estimated average of 3.2 % per annum.

Age and Gender

The 2011 census indicated that the EMM has a largely adult population (Figure 6) with majority of the population distribution being between 25 and 29 years old (12 %), and unlike Gauteng, EMM has a more male-dominated (53 %) population (compared with 47 % women). EMM has a decreasing population growth rate, as do all Gauteng municipalities (Figure 7).

Education and Employment

EMM education statistics have improved over the last 16 years, with a steady increase in the percentage of people completing Grade 12 and obtaining higher education (Figure 8). Although the unemployment rate increased between 1996 to and 2001, it decreased by 11.6 % from 2001 to 2011 (Figure 9).

Household Utilities

The percentage of households with electricity for lighting increased by approximately 7 % from 1996 to 2011, while the percentage of households using electricity for cooking increased by approximately 15 % from 1996 to 2011. The percentage of households with access to piped water within their dwelling / yard increased by approximately 3 % from 1996 to 2011, as did the percentage of households with access to flush / chemical toilets.

HIV and Rape

HIV infection rates in EMM have decreased slightly in 2014 from 22.9 % to 22.6 %, however the overall HIV infection rate in South Africa is approximately 10%. Thus EMM have a relatively high HIV infection rate.

In EMM, reported rapes fell by 9 % in 2007-2008, a substantial change given that in the years between 2001 and 2007 reported rapes only fell by 8.8 %. As almost eight rapes were reported each day in the municipality, 2007-2008 was the only year to meet the government’s crime reduction target of 7-10 % per year. Areas most affected by rape were Katlehong, Temba, Tembisa and Vosloorus, and the Zonkizizwe and Edenpark police stations have seen significant increases this decade (Hoboyi, 2009).

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 19 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 6: Distribution of population by age and gender, Ekurhuleni district – 1996, 2001 and 2011 (Statistics South Africa, 2012)

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 20 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 7: Population growth rates by district municipality and Gauteng province – 1996, 2001 and 2011 (Statistics South Africa, 2012)

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 21 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 8: Distribution of the population aged 20 years and older by highest level of education and district municipality and Gauteng province – 1996, 2001 and 2011 (Statistics South Africa, 2012)

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 22 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 9: Unemployment rate by district municipality and Gauteng province – 1996, 2001 and 2011 (Statistics South Africa, 2012)

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 23 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 Informal Settlements

The Housing Development Agency compiled a research report, Gauteng Informal Settlements Status (2013), regarding the informal settlement status of Gauteng Province. Within this report they provide a number of definitions for an informal settlement:

“An unplanned settlement on land which has not been surveyed or proclaimed as residential, consisting mainly of informal dwellings (shacks).” Definition of an informal dwelling: “A makeshift structure not approved by a local authority and not intended as a permanent dwelling” Statistics South Africa

The 2009 National Housing Code’s Informal Settlement Upgrading Programme identifies informal settlements on the basis of the following characteristics: Illegality and informality, inappropriate locations, restricted public and private sector investment, poverty and vulnerability as well as social stress. National Department of Human Settlements

An informal settlement comprises “An impoverished group of households who have illegally or without authority taken occupation of a parcel of land and who have created a shanty town of impoverished illegal residential structures built mostly from scrap material without provision made for essential services and which may or may not have a layout that is more or less formal in nature.” City of Johannesburg Metropolitan Municipality

“As a basic characteristic, the occupation of the land is unauthorised. In addition, the use of the land may be unauthorised, and in most cases the construction standards do not comply with building regulations.” EMM

While there is some variance across definitions, in most cases definitions emphasise the dwelling type, with temporary structures or dwellings that are built out of rudimentary materials as a dominant feature of informal settlements. In addition, several definitions refer to ownership of the land, the nature of land tenure and formal demarcation.

According to the Census there has been a significant increase in the number of households living in formal dwellings in Ekurhuleni since 2001. The number of households living in informal dwellings (shacks) has decreased by from 22 % in 2001 to 14 % in 2011. Current levels of access to basic services (i.e. running water, formal sanitation and electricity) are summarised below for households living in informal dwellings (shacks) in EMM (Figure 10). While the EMM achieved an increase in the percentage of households supplied with basic services, o n average access to basic services within informal settlements did not improve significantly between 2001 and 2011.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 24 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 10: Informal settlement access to services in EMM (Housing Development Agency, 2013)

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 25 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 6.4 Statistical Profile of Region C and Ward 67

Region C accommodates a total population of 401,270, while Ward 67 accommodates 37,500 of that. There are estimated to be 134,000 households within Region C with a population density of 403 people per km 2. The ratio of males to females is 1:1 and the predominant age category is 0-4 years, unlike that of the greater EMM which has a predominant age group of 25 to 29 years (Figure 6).

The RSDF identified that Region C has a relatively low average population density (4 people per hectare) due to majority of the region’s land remaining unoccupied because of a lack of living and work opportunities in the central and northern parts of the region. In 2012, 37.1 % of the region’s total population was living in poverty, a significantly higher percentage than that of EMM. The social facilities in Region C are concentrated in the built-up areas, and they appear to be in line with the requirements; however the Governance Report for Ward 67 highlights areas within the Ward where informal settlements are still greatly lacking in basic services and infrastructure.

6.5 Socio-Economic Profile of the Project Area

Through the site visits described in Section 4.1.2 the following receptor communities were identified:
The Khomponi Community, living at the existing historical Holfontein Mine;
The Holfontein Quarters Community, living across the N12 highway from the historical Holfontein Mine; − These two communities are collectively referred to as the Holfontein Community;
The residents living within the Welgedacht SH along Carnation Road.

The locations of these communities were mapped in order to better understand their proximity to the proposed project components. The living conditions of these communities are further described below.

6.5.1 The Holfontein Community

The Holfontein Community is made up of two community areas, one living adjacent to the Holfontein shaft within the historical mine hostel (approximately 100 m from the proposed mining area), historical mine house (approximately 50 m from the proposed mining area) and informal dwellings (the closest being next to the fence of the proposed mining area). They have identified themselves as the Khomponi Community (Figure 11).

The second community area is on the other side of the N12 highway, within Holfontein historical mine houses, which fall within the Breswol Agricultural Holdings (AH). They have identified themselves as the Holfontein Quarters Community (Figure 12, approximately 850 m from the proposed mining area).

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 26 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 6.5.1.1 The Khomponi Community

The Khomponi Community is living within the historical mine hostel and house, as well as informal dwellings in proximity to the hostel and house (Figure 11). Based on the definitions listed in Section 6.3, the Khomponi Community has been identified as an informal settlement. This community has an estimated population of 200 people. The hostel is made up of 4 housing blocks (see Photo 1 below) which are home to 33 households, while the house is home to 3 households. There are 8 informal dwellings surrounding both the house and hostel. According to members of this community, some of them first settled in the area 35 years ago. The majority of the residents are from Gauteng, however there are also residents originating from Mpumalanga, Limpopo and Mozambique. The main language spoken is Zulu but residents from Limpopo speak Pedi.

A few of the older residents receive pensions through the South African Social Security Agency (SASSA) but the majority of them cannot apply for pensions as they do not have IDs. Similarly, a few of the women receive child grants but many do not as they do not have IDs. The mobile clinic does not visit the Khomponi Community as it is considered too small and the nearest clinic is in Slovo Park, approximately 5 km away. There is a small tuck shop within the hostel, run by one of the residents, however the nearest formal shops and police station are in Sundra (approximately 7km walking distance).

Age and Gender

The community ranges from ages of 1 to 71, and the older members of the community appear to be financially supported by the younger adults. The majority of the younger women have small children. The male to female ratio appears to be 1:1.

Education and Employment

Approximately 50 % of the working males (20 and older) have piece jobs (ad hoc) on local farms or in local industry. None of them have permanent or contracted employment. A small percentage of the older women have employment in Sundra as domestic workers.

Approximately 20 of the children attend primary and secondary school in Sundra (which falls into Ward 7 of the Victor Khanya Local Municipality, Mpumalanga). The children walk down the unpaved road and wait for a school bus which collects them from Pansy Avenue. Approximately a third of the adults have completed Grade 10, 11 or 12.

Household Utilities

The community has no running water, formal sanitation or electricity. A large Jo-Jo water tank is filled weekly by the municipality (see Photo 8), however this tank is not cleaned which poses a health risk to the community. The community has been provided with three chemical toilets (Kharki Toilet Hire), which are cleaned out once a week by the municipality (see Photo 5). Two toilets are located at the hostel and one at the house. Non-ventilated pit latrines are also utilised. The community members use candles for lighting, paraffin for cooking and wood for heating (see Photos 2 and 3).

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 27 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 Compared with the EMM statistics reflected in Figure 10, the services supplied to the Khomponi Community appear to largely fall below the majority and indicate that comparatively the community needs are not being met.

Sense of Place

The Khomponi Community members consider themselves to be a peaceful community, and did not report any major incidents over the last year. It was reported that criminals occasionally hide stolen goods in the grass surrounding the community. The community members added that when approached, these criminals have become threatening towards residents and as a result most of the residents avoid being outside at night.

The hostel and house were observed to be in poor condition and the residents expressed concerns with regard to leaking roofs, especially during the rainy season (see Photo 1). Subsistence farming is undertaken on a small scale to grow pumpkins and maize for food (see Photo 6). Although the basic service provision needs of the community are being met they are still considered an informal settlement, as they do not have access to running water, electricity or formal sanitation. However, it should also be noted that this community is well established. They have created a functional home for themselves and expressed concern about being relocated and / or losing their homes. Children were observed playing next to the road within the community, and a few dogs were noted running along the road, in and around the community.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 28 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 11: The Khomponi Community dwellings, surrounding the Holfontein shaft area

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 29 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Photo 1: A housing block at the hostels. Photo 2: Cooking on a paraffin stove.

Photo 3: Wood stockpile at the hostel. Photo 4: Washing clothing in a wheel barrow.

Photo 6: Small scale subsistence farming is Photo 5: Chemical toilet at the hostel. undertaken at the hostel.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 30 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Photo 7: The central building near the hostel Photo 8: The Jo -Jo water tank located at the blocks, which is used as a church. hostel, in the centre of the complex.

6.5.1.2 The Holfontein Quarters Community

The Holfontein Quarters Community is living within the historical mine houses (approximately 860 m from the proposed mining area), which fall within the Breswol AH on the other side of the N12 (Figure 12). This community occupies 13 houses (Photo 9 and 10), which each have a garage / outbuilding (some of which had been converted into housing), with an estimated 2 families / households per house. The main language spoken is Zulu but a few residents speak Pedi.

The mobile clinic does not visit the Holfontein Quarters community as it is considered too small and the nearest clinic is in Slovo Park, approximately 7 km away or in Etwatwa, approximately 4 km away. The nearest formal shops and police station are also in Etwatwa. Residents have access to taxi’s along Modder Road to get to Etwatwa (Figure 12).

Age and Gender

The community ranges from ages of 1 to 65. The many of the younger women have small children. The male to female ratio appears to be 1:1.

Education and Employment

Approximately 80 % of the working males (20 and older) have permanent / contract jobs at the Holfontein Hazardous Waste Landfill site.

Most of the children attend primary and secondary school in Slovo Park. A municipal school bus collects the children from Modder Road to take them to school.

Household Utilities

The community has no running water (see Photo 11), formal sanitation or electricity. Two large Jo-Jo water tanks are filled twice a week by the municipality (see Photo 12), however these tanks are not cleaned which poses a health risk to the community. The community have no formal sanitation and only have access to non-ventilated pit latrines. The community members use candles for lighting, paraffin for cooking and wood for heating.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 31 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 Compared with the EMM statistics reflected in Figure 10, the services supplied to the Holfontein Quarters community appear to largely fall below the majority and indicate that comparatively the community needs are not being met.

Sense of Place

The houses were observed to be in better condition than that of the house and hostel in the Khomponi Community, however many of the window panes had been broken and replaced with plastic or corrugated iron. Although the basic service provision needs of the community are being met they are still considered an informal settlement, as they do not have access to running water, electricity or formal sanitation. However, it should also be noted that similarly to the Khomponi Community, this community is well established and has created a functional home for themselves. Children were observed playing within the community, and a few dogs and chickens were noted in and around the area.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 32 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 12: The Holfontein Quarters Community dwellings, across the N12 highway from the Holfontein Project area

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 33 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Photo 10 : Each house has a garage / Photo 9: Holfontein Quarters Community live in outbuilding, some of which had been converted 13 historical mine houses. into housing.

Photo 11 : Laundry and washing is done using Photo 12 : The two Jo -Jo tanks are refilled twice buckets a week

6.5.2 The Welgedacht SH

The Welgedacht SH community were identified as possible sensitive receptors to the Holfontein Project (Figure 13). The SH are dissected by four main roads running from east to west, off Pansy Avenue, namely Carnation Road, Dahlia Road, Phlox Road and Aster Road. These main roads are intersected by north-south running roads namely, Rose Avenue, Daisy Avenue and Poppy Avenue. The plots of land are used as either private residences, businesses or grazing land. The table below lists the residents and business owners who have registered on the Interested and Affected Parties (IAPs) database.

Table 1: Welgedacht SH registered IAPs

RESIDENT / BUSNIESS PLOT DESCRIPTION OWNER NO.

CARNATION ROAD East Rand Water Care Business: Welgedacht Waste Water Treatment Works 1 Association (ERWAT) (WWTW), which treats up to 35 Mℓ/d

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 34 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 RESIDENT / BUSNIESS PLOT DESCRIPTION OWNER NO.

Mr H. Backhoff 3 Private residence (see Photo 13) Mr J. Backhoff 50 Open p ortion Business (Super Service Refrigeration ) and private Mr J. de Vries 54 residence (see Photo 14) Mr B. de Vries 55 Open p ortion Ms C . Govender 56 Private residence (see Photo 15) Ms S. Govender Ms L . Swan 62 Business ( Dialogic Management Services ) DAHLIA ROAD Ms C. Felicetti 12 Private residence Mr Aslam 53 Private residence Mr J. Backhoff 63 Business (Backhoff Transport CC) Mr M. Khan 74 Business (Chicken Farm) and private residence PHLOX ROAD Ms L. Erasmus 27 Private residence Dr T. Chivo nivoni 29 Business (Fish Farm) and private residence Mr V. Fourie 83 Business Mr K. Du Plooy 93 Private residence POPPY AVENUE Mr Lawrence 43 Private residence Mr Spencer 46 Private residence Mr G. Mncube 47 Private residence Mr H. Mxasa 51 Private residence

Some of the open portions of land had livestock (cows and/or sheep) grazing on them (see Photo 16) and may be used for subsistence farming practices.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 35 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 13: Farm portions within the Welgedacht SH

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 36 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Photo 13 : Plot 3, Carnation Road (Backhoff Photo 14 : Plot 54, Carnation Road (de Vries residence) residence)

Photo 15 : Plot 56, Carnation Road (Govender Photo 16: Open plot with cattle grazing residence)

Age and Gender

The age of residents and business owners ranges from 1 to 75 years old and the male to female ratio appears to be slightly more male dominated, possibly 1:2.

Employment and Education

Most adult residents have a tertiary education and are currently employed. The children currently attend Springs Primary or Secondary Schools or Sundra Primary School.

Household Utilities

The houses and businesses in Welgedacht SH all use borehole water as their primary water source and do not have access to reticulated municipal water supply. Most properties have access to formal sanitation (flush toilets) and all properties have electricity.

Sense of Place

The private residence owners described their area as an originally low crime area, which is quiet and peaceful. However, some residents noted that there has been an increase in crime in the area

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 37 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 over the last few years. Some residents have ongoing problems with seasonal flooding from the Holfontein Stream and Blesbokspruit.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 38 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 7 SOCIO-ECONOMIC IMPACT ASSESSMENT

Social change is recognised as a natural and ongoing process, however, it is important to recognise and understand that projects have the potential to positively or negatively influence and alter both the rate and direction of social change.

Socio-economic impacts can be defined as the consequences to human populations of any public or private actions (these include policies, programs, plans and projects) that alter the way in which people live, work, play, relate to one another, organise to meet their needs and generally live and cope as members of society. These impacts are felt at various levels, including individual, family or household, community and organisation or society level (Vanclay, 2002).

Categories of socio-economic impacts according to Vanclay (2012):

People’s way of life – how people live, work, play and interact with one another on a day- to-day basis;
Their culture – shared beliefs, customs, values, and language or dialect;
Their community – its cohesion, stability, character, services and facilities;
Their political system – the extent to which people are able to participate in decisions that affect their lives, the level of democratisation that is taking place, and the resources provided for this purpose;
Their environment – the quality of the natural environment in which people live, including the air and water people use; the availability and quality of the food they eat; the level of hazard or risk, dust and noise they are exposed to; the adequacy of sanitation; their physical safety and their access and control over resources;
Their health and well-being – health is defined as a state of complete physical, mental, social and spiritual well-being and not merely the absence of disease or infirmity (WHO);
Their personal and property rights – particularly in cases where people are economically affected, or experience personal disadvantage, which may include a violation of their civil liberties; and
Their fears and aspirations – fears and perceptions about their safety and well-being and the future of their community, and their hopes for their future and the future of their children and the community.

Taking these categories into consideration, the potential socio-economic issues and impacts associated with the proposed project have been identified, and the SIA has aimed to establish the environmental significance of these potential impacts through application of the framework for assessing significance (see Section 7.1). The impacts are summarised in Table 2 at the end of this Section.

The impacts identified have been categorised into direct, indirect and cumulative impacts which are defined as follows:

Direct Impacts: caused by the project / activity itself and occur at the same time and place (also known as primary impacts);

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 39 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668
Indirect Impacts: caused by the project / activity but occur later in time or farther removed in distance, but are still reasonably foreseeable. Indirect effects may include changes in the pattern of land use, population density or growth rate; and
Cumulative Impacts: the impact on the environment (including social environment), which results from the incremental impact of the action when added to other past, present, and reasonably foreseeable future actions regardless of what agency or person undertakes such other actions. Cumulative impacts can result from individually minor but collectively significant actions taking place over a period of time.

The phase, construction, operation, decommissioning or post closure, during which the impacts are likely to occur has been identified, as well as the nature / status (positive or negative) of each impact. Finally, the impacts have been rated, using the system below (Section 7.1), without and then with mitigation measures. In Table 2, the first row of values is determined / calculated without the implementation of proposed mitigation measures, and the second row of values (in square brackets) considers the implementation of mitigation measures.

7.1 Impact Rating Methodology

The following risk assessment model will be used to determine the significance of potential socio- economic impacts affecting the proposed Holfontein Project. For the purpose of this study the rating parameters are defined as follows:

Magnitude: this rating has the highest weighing as it describes the severity of the proposed impact on the socio-economic environment which can be either minor, low, moderate, high or very high / unknown;
Duration: describes the period over which the impact is likely to occur, which can be either immediate, short term, medium term, long term or permanent;
Scale: describes the extent or range over which the impact occurs, which can be either the site, locally, regionally, nationally or internationally. It must also be noted that for the purpose of this study the site has been designated as everything within a 500 m radius of the existing shaft area. This includes the historical mine house and hostel (Khomponi Community) as they are directly adjacent to the shaft.
Probability: describes the likelihood of the impact occurring, which can be either improbable, low, medium, high or definite / unknown.

These parameters are then used to calculate the significance by applying the following formula:

SIGNIFICANCE = (MAGNITUDE + DURATION + SCALE) X PROBABILITY

The maximum potential value for significance of an impact is 100 points. Environmental impacts can therefore be rated as high, medium or low significance on the following basis:

High significance 60 – 100 points
Medium significance 30 – 59 points
Low significance 0 – 29 points

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 40 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 MAGNITUDE (M ) DURATION (D) 10 – Very high (or unknown) 5 – Permanent 8 – High 4 – Long -term ( ceases at the end of operation ) 6 – Moderate 3 – Medium -term (4 -8 years) 4 – Low 2 – Short -term (0 -3 years) 2 – Minor 1 – Immediate SCALE (S) PROBABILITY (P) 5 – International 5 – Definite (or unknown) 4 – National 4 – High probability 3 – Regional 3 – Medium probability 2 – Local 2 – Low probability 1 – Site 1 – Improbable

7.2 Direct Impacts

7.2.1 Continued Employment for ME Operations Employees

ME Operations are currently operating at steady state production. This production rate will be maintained until 2021 when the mine production will begin declining. Ordinarily this decline would result in company downsizing. However, the Holfontein Mine will be used to supplement the drop in production once the ME tonnage profile begins to decline. This will ensure that ME employees will retain their employment positions for the Holfontein LoM. This impact is expected to have a high positive significance.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction High Long term Local Definite High Positive Operation [Very high] [Long term] [Local] [Definite] [High] Decommissioning

Mitigation

The significance of this impact can be further improved through the effective implementation of the SLP Human Resources Development (HRD) Programme, which is further discussed in Section 8.1.

7.2.2 Temporary or Permanent Migration of Job Seekers into the Project Area

New and existing mines across South Africa continue to attract job seekers into the areas in which they operate. More often than not, this results in the development of informal settlements in the vicinity of these mines. Although the proposed Holfontein Project will not offer any new employment opportunities, as existing employees will be derived from the ME Operations, there is a likelihood that it will still attract optimistic job seekers into the area, and more specifically into the Khomponi Community, as it is situated adjacent to the site. There is also the possibility that construction / decommissioning contractors will decide to settle near to the site during the work

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 41 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 week in order to reduce their cost of transport to and from the site. This may result in the construction of additional informal dwellings in and around the Khomponi Community.

These impacts will result in overcrowding of the Khomponi Community, and potentially other areas nearby. These informally settled areas already have limited access to services and infrastructure. Migration of job seekers into the area is expected to be a largely permanent impact. However, due to the relatively short life of the mine, this in-migration will be limited. The in-migration may also be further limited once job seekers realise that there are no employment opportunities available; those that have settled may then relocate in search of alternate employment.

This significance of this impact is impossible to predict. The magnitude of the impact has thus been rated very high / unknown and the probability has been rated definite / unknown, resulting in a high negative significance.

This impact is also expected to be a residual impact, as it will not necessarily cease once the LoM has ended and the mine has closed.

NATURE / MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Very high/ Permanent Definite / Construction unknown Local High Negative [Medium unknown Operation [Very high/ [Local] [High] term] [High] unknown]

Mitigation

Although influx of job seekers into the area is considered by many as outside the control of project developers, the IFC guidelines on project-induced in-migration suggest that influx can threaten ‘project security’ and that it should be managed as a project threat (IFC, 2009). For this project in particular, this impact is difficult to mitigate as the EMM tends to attract job seekers from other provinces (EMM IDP, 2013) regardless of job availability. Due to the difficulty in predicting and thus mitigating this impact, the significance cannot be reduced.

However, the applicant can ensure that the following principles are adhered to in order to try to manage and mitigate the negative impacts associated with the migration of job seekers into the area:

Information dissemination, recruitment and supply chain transparency o The lack of employment and formal procurement opportunities available for this particular project needs to be clearly communicated to all IAPs and surrounding residents to ensure that there is no expectation of employment or procurement. o The policy of using existing employees from ME Operations must be maintained and no exceptions made. o Contractors must be encouraged to provide transport for their employees, and / or to discourage settlement within the Holfontein area. o Contractors must apply a similar policy for employment in that no employment will be provided at the gate (at the project area).
Influx management and security arrangements

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 42 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 o While the need for project security is understandable, such security measures (such as fencing and/or patrols) can have further implications on the surrounding residents’ safety and mobility. A mechanism needs to be implemented to allow free access to their community, while still restricting the uncontrolled influx of job seekers into the area. o Regular engagements with the local residents of the Khomponi Community and the security personnel through workshops and meetings should build a relationship between these parties.
Section 8 provides more detail on management and monitoring measures to be implemented.

7.2.3 Decrease in Air Quality at the Site

The National Environmental Management: Air Quality Act, No. 39 of 2004 (NEM:AQA) is an effects- based legislation, stating that activities which may result in atmospheric emissions are to be determined with the objective of achieving health-based ambient air quality standards. Each new

development proposal with potential impacts on air quality must be assessed. PM 10 and PM 2.5 are typical indicators used to identify potential health impacts of air quality.

According to the Air Quality Impact Assessment (Prime Resources A, 2015), if unmitigated, PM 10 concentrations during operations will exceed the National Air Quality Standards (NAAQS) on the western side of the project area which will likely affect the historical mine house but not the hostel. The impact has been determined has having a high negative significance.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction Very high Long term Local High High Negative Operation [Very high] [Long term] [Local] [Medium] [Medium] Decommissioning

Mitigation With the implementation of the following mitigation measures, the impact can be reduced to a medium significance:

All clearance of land must be limited to the designated area and disturbance must be minimised where possible.
Exposed areas must be re-vegetated as soon as possible to stabilise soil.
A water spray dust suppression system must be administered on site and along the haul route during construction, operation and decommissioning phases.
Construction vehicles and haul trucks travelling on unpaved roads must adhere to a speed limit of 40 km/h. Routes must be clearly sign-posted and drivers must only travel on the demarcated haul routes.
The haul trucks must be covered or the ore must be wet prior to hauling to prevent the spread of dust during transportation.
Air quality monitoring measures must be implemented as per Section 8.8.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 43 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 7.2.4 Increase in Noise Pollution at the Site

According to the noise specialist (JH Consulting, 2015) the area generally experiences low ambient noise levels typical of semi-rural environments. Using South African National Standards (SANS) 10103:2008 as a guideline, the Welgedacht SH and Khomponi Community can either be categorised as ‘rural districts’ or as ‘suburban residential districts with little road traffic’. Since neither community can be considered an isolated rural farmstead both communities must fall into the second category of suburban residential districts.

The existing background noise levels at the shaft area are typically 40-45 dB(A), which are well within the recommended zone level for a suburban residential area. The proposed noisy activities within the boundaries of the site will be associated with the hoisting and loading of haul trucks, which will only take place during daytime hours (06h00-18h00), and the noise from the ventilation shaft, which will be a consistent noise over 24 hours. These activities will result in a 2.4 dB and 4.1 dB exceedance of the recommended daytime level of 50 dB(A) at the Holfontein shaft and ventilation shaft, respectively.

The increase in noise levels during the daytime will be easily discernible by the Khomponi Community but will not result in a significant noise impact. At night the continuous operation of the ventilation shaft will result in a 13.1 dB exceedance of the recommended night time level of 40 dB(A). The increase in noise at night will result in a medium negative significance and is therefore likely to result in sporadic complaints from the Khomponi Community.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Low Long term Local High Medium Negative Operation [Minor] [Long term] [Site] [Medium] [Low]

Mitigation

With the implementation of the following mitigation measures, the impact can be reduced to a low significance.

Erect a waste rock berm and wall around ore hoisting and loading areas (6 m in height) to provide a natural noise barrier between the boundary of the activities and the Khomponi Community (see Figure 14).
It is recommended that vertical axial fans are installed below the surface level within the ventilation shaft. It is further recommended that vertical attenuated exhaust / intake stacks are utilised at surface level.
At the shaft it is recommended that the bin and chute are enclosed by an acoustic enclosure.
Noise monitoring measures must be implemented as per Section 8.8.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 44 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 14: Proposed wall and berm to act as noise barriers around the project area

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 45 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 7.2.5 Visual Intrusion on the Landscape Character

The shaft will consist of a steel headgear, with two winders (between 40 to 50 m in height), to be constructed above the existing rectangular shaft. A vent shaft (approximately 30 m in height) will be constructed to the south of the historical mine hostel. As described by the Visual Impact Assessment (Prime Resources C, 2015) these structures will result in visual intrusion and have an impact on the visual landscape as the landscape does not have the Visual Absorption Capacity (VAC) to completely “absorb” these structures. These structures, as well as additional heavy vehicle traffic and dust will create an unpleasant visual landscape in comparison to the current visual landscape which is largely farm land to the south with the highway to the north. From a socio-economic perspective this impact is expected to have a high negative significance.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction Moderate Long term Local Definite High Negative Operation [Moderate] [Long term] [Local] [Definite] [High] Decommissioning

Mitigation

The following measures are recommended in order to prevent exacerbation of the potential impact, but will not reduce the significance of the impact discussed above:

Avoid the unnecessary removal of vegetation, especially trees, where these partially or totally screen infrastructure components.
Keep vertical dimensions of tall infrastructure to the minimum heights possible;
Signage related to the proposed development is to be discrete.
Avoid the use of highly reflective materials in construction. If this cannot be avoided reflective materials should be painted a colour to allow it blend in with the landscape as much as possible. The colour is to be carefully selected, and is to be in the dark grey, brown or green range, to minimise visibility and avoid reflectivity.
Due to the height of the proposed headgear (approximately 50 m) and vent shaft (approximately 30 m) it is not possible to screen the infrastructure from view. To lessen the visual intrusion, camouflage should be utilised i.e. painting it a colour to allow it blend in with the landscape as much as possible. The colour is to be within the dark grey, brown or green range, and must avoid reflectivity.

7.2.6 Visual Nuisance Factors

Night-time lighting will be required at the Holfontein Shaft as it will be operating 24 hours a day. Because of the relatively flat topography, limited levels of development within the study area and surroundings, and the extent (height) of the proposed development, the Visual Impact Assessment (Prime Resources C, 2015) anticipates that night-time lighting will have a noticeable impact on the visual landscape and be a nuisance to the Khomponi Community residents. From a socio-economic perspective this impact is expected to have a medium negative significance.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 46 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction Moderate Long term Local Definite Medium Negative Operation [Low] [Long term] [Site] [Medium] [Low] Decommissioning

Mitigation

With the implementation of the following mitigation measures this impact can be reduced to a low significance:

Avoid unnecessary illumination, however safety / security and operational requirements may limit the extent to which this can be implemented.
Providing lights with cover fittings that limit lateral and upwards light “spill”, and positioning lights to shine towards the intended areas of illumination, rather than using floodlights.
Limiting the heights at which lights are positioned where possible will reduce “light spill”.
Make use of Low Pressure Sodium lighting or other types of low impact lighting.
Low wattage bulbs can be used to further reduce the impact.
Motion sensor activated lighting may be used instead of lights that illuminate continuously.

7.2.7 Impact on Groundwater Users Due to Dewatering Activities of Mining Sections

During public consultation, concerns with regard to decrease in borehole water quality and quantity were raised by downstream land owners. The Groundwater Impact Assessment (Groundwater Square, 2015) has considered the potential for Karoo and Dolomitic aquifers to be negatively impacted upon in terms of quality and quantity and has determined that these aquifers will be largely unaffected by dewatering and mining as mining operations will occur below the Dolomitic aquifer. As a result this impact is expected to have a low negative significance.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P)

Construction Moderate Long term Local Low Low Negative Operation [Minor] [Short term] [Local] [Low] [Low]

Mitigation

The significance of this impact can be further reduced if the following mitigation measures are implemented:

Effective casing of the refurbished shaft and ventilation shaft.
Effective sealing / grouting of underground fissures.
All contaminated stormwater from the site must be collected and contained and not allowed to infiltrate into the groundwater.
Discharged groundwater must meet the Department of Water and Sanitation (DWS) water quality standards.
Groundwater monitoring measures must be implemented as per Section 8.8.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 47 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 7.2.8 Increased Pedestrian / Domestic Animal Injury and Mortality

As discussed in the Section 6.5.1, children and dogs were noted alongside the Holfontein Road, which runs into the Khomponi Community. Children also walk down the Holfontein Road to Pansy Avenue in order to catch the school bus. Although the proposed haul road will be routed around the community (in order to prevent haul trucks travelling through the residential areas) (Figure 3), the additional heavy vehicle traffic on the gravel road between Pansy Avenue and the Khomponi Community is likely to result in increased pedestrian and domestic animal accidents and mortality. The significance of this impact is expected to be a high negative .

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction High Long term Site Definite High Negative Operation [Medium] [Long term] [Site] [Medium] [Medium] Decommissioning

Mitigation

The implementation of these mitigation and management measures will reduce this impact to medium:

The Traffic Impact Assessment (Siyazi, 2015) recommends that a pedestrian walkway be installed along the Holfontein Road in order to limit pedestrian traffic accidents and to ensure children have a safe path to Pansy Avenue. This walkway should be clearly demarcated, with appropriate signage. The walkway should be cleared and compacted to ensure an easy and comfortable walking / cycling path. Refer to Figure 15.
The Holfontein Road should be fenced to prevent pedestrians walking on the road.
Enforce safe driving practices for mine-related vehicles.
Ensure that a medical emergency response service is available in case of accidents occurring along Holfontein Road, and develop a clear policy for the management of project-related accidents in the community.
Traffic safety monitoring measures must be implemented as per Section 8.8.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 48 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 15: The proposed pedestrian walk way along Holfontein Road

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 49 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 7.2.9 Decrease in Land Capability

According to the Soil and Agriculture / Land Capability Impact Assessment (Prime Resources B, 2015) the mining process and construction of surface infrastructure may result in a loss of land capability post-closure. Once all surface infrastructure is removed, remaining compacted and ripped soils need to be re-vegetated efficiently in order to ensure that ripped / loose soils are not eroded. If this is not undertaken effectively and in a timely manner the soils may be eroded resulting in a loss of land capability. Similarly, inadequate rehabilitation and re-vegetation may result in a loss of soil fertility, which will further reduce the land capability.

The presence of heavy vehicles and heavy earthmoving machinery during decommissioning may result in contamination of the soil due to hydrocarbon leaks. Inappropriate storage, handling, and removal of hazardous substances as well as general and hazardous waste may result in the contamination of soil. Soil contamination during operation and decommissioning may result in reduced land capability during post-closure. Ineffective land management and rehabilitation could negatively impact the land owner post-closure. The impact of this is expected to have a medium significance.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Operation High Permanent Site High Medium Negative Decommissioning [Moderate] [Permanent] [Site] [Low] [Low]

Mitigation

If these mitigation and management measures are implemented effectively this impact can be reduced to low :

Stormwater management measures must be in place throughout mining operations to prevent water erosion on site and adjacent areas. Stormwater management measures detailed in the EMP must be implemented to ensure a free draining rehabilitated landscape during post-closure.
Effective stockpile management must be carried on throughout the operation phase to prevent wind and water erosion of stockpiled soil.
General maintenance and safety precautions must be followed to prevent diesel and hydraulic fluids contaminating soil. Spills must be addressed immediately and reported.
Best practices must be employed in terms of the management of hazardous substances and general and hazardous waste. There must be a bunded waste storage area on site that has an impermeable surface and a sump, and the area must be covered.
After stockpiled soils have been replaced for rehabilitation, the soil fertility must be assessed to determine the level of fertilisation required to sustain normal plant growth (as detailed in the EMP).
Soil monitoring measures must be implemented as per Section 8.8.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 50 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 7.3 Indirect Impacts

7.3.1 Overcrowding Leading to Pressure on Existing Infrastructure and Services

There is a backlog in the provision of basic and social infrastructure in Region C as a result of lack of funds and the sparse distribution of some informal settlements (Section 6.2.2). Economic development and employment opportunities in Region C of EMM are largely clustered around Benoni and Daveyton. The potential influx of job seekers into the region, and into the Khomponi Community, will increase the pressure on already limited social infrastructure and service provision (particularly water and sanitation) as described in Section 6.4. This impact is expected to have a high negative significance on the residents of the Khomponi Community, and will result in a negative impact on their quality of life.

This impact is expected to be a residual impact, as it will not necessarily cease once the LoM has ended and the mine has been closed.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction Negative Operation Very high Permanent Site High High Decommissioning

Mitigation

This impact cannot be mitigated, however, the guidelines and recommendations in Section 8 should be implemented to in order to prevent the exacerbation of this impact.

7.3.2 Overcrowding Leading to Social Ills and Decreased Quality of Life

As discussed in Section 6.5.1, the Khomponi Community considers itself to be a relatively peaceful community with a fairly strong sense of place. Influx of strangers and job seekers into the area can result in unexpected conflicts arising between original and new residents. Newcomers moving into the community can result in an increase in crime within the community and this is expected to become disruptive and negatively impact on the residents’ current quality of life.

As discussed in Section 6.3, unreported rape is still a growing concern in EMM. There may be a potential increase in reported and unreported rape cases within the local community, as newcomers moving into the community may take advantage of unemployed women and teenage girls living in the community. There may also be a resulting increase in promiscuity, consistent with the existing EMM HIV infection rates; and the prevalence of HIV/AIDS in the area is expected to increase.

Further, competition for water and sanitation resources (already limited), may result in less clean water available for drinking and cleaning, and the currently available sanitation (chemical toilets) will be insufficient for the increased population. Some residents are already making use of the surrounding bush for their ablution requirements, and this will probably increase.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 51 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 The growth of this informal settlement may also result in an increase in crime rates in the surrounding areas, specifically the nearest formal suburb of Welgedacht SH. This impact is difficult to quantify as it is directly dependent on the migration of job seekers into the area (Section 7.2.2), which is impossible to predict. The Welgedacht SH is approximately 2 km away from the Holfontein shaft area, so there is some potential for them to be impacted by the potential expansion of the informal settlement and any associated increase in crime rates.

There is also a perception by the Welgedacht SH residents that any resulting increase in crime rates will have a negative impact on Welgedacht SH land value.

These impacts are expected to have a high negative significance on the local community. This impact is expected to be a residual impact, as it will not necessarily cease once the LoM has ended and the mine has closed.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction Very Negative Operation Long term Local High High high/unknown Decommissioning

Mitigation

This impact cannot be mitigated, however, the guidelines and recommendations in Section 8 should be implemented to in order to prevent the exacerbation of this impact.

7.3.3 Establishment of Shops and Canteens near the Holfontein Site

With the potential expansion of the Khomponi Community as a result of the mine (Section 7.2.2) residents of the Khomponi Community may establish tuck shops and canteens in the Holfontein project area in order to supply mine employees and new residents with food and drink. If these activities are not controlled they may contribute to the migration of job seekers into the project area (see Section 7.2.2) and may result in social ills such a rowdy behaviour, drunkenness and disturbance to the Khomponi Community. This impact is expected to have a medium negative significance.

This impact is expected to be a residual impact, as it will not necessarily cease once the LoM has ended and the mine has closed.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction Negative Operation Moderate Long term Site High Medium Decommissioning

Mitigation

This impact cannot be mitigated, however, the guidelines and recommendations in Section 8 should be implemented to in order to prevent the exacerbation of this impact.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 52 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 7.3.4 Loss of Sense of Place Due to Overcrowding, Increased Noise and Traffic, and a Change in the Visual Landscape

The increased noise and traffic as well as a change in the visual landscape are likely to alter the current living space of the Khomponi Community dramatically. Their quality of life and sense of place may be altered as a result of the close proximity to the proposed project, resulting in a reduced quality of life and a loss of sense of place. This impact is difficult to quantify and the magnitude of the impact has thus been rated very high / unknown and the probability has been rated definite / unknown, resulting in a high negative significance.

This impact is expected to be a residual impact, as it will not necessarily cease once the LoM has ended and the mine has been closed.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction Very high / Definite / Negative Operation Long term Site High unknown unknown Decommissioning

Mitigation

This impact cannot be mitigated, however, the guidelines and recommendations in Section 8 should be implemented to in prevent to reduce the exacerbation of this impact.

7.3.5 Reduction in Air Quality Affecting Crops and Farming Livelihoods

According to the Air Quality Impact Assessment (Prime Resources A, 2015), dust falling onto plants (crops) can interfere with photosynthesis, respiration and transpiration, and can allow the penetration of phytotoxic gaseous pollutants. Visible injury symptoms on plants may occur resulting in decreased productivity when there are high levels of dust deposition. Deposition of particulate matter on vegetated surfaces depends on the size distribution of these particles and, to a lesser extent, on the chemistry.

Hauling of rock from the Holfontein project area to ME Operations, as well as mining activities at the project area are likely to generate dust, which may have a negative impact on surrounding crops and farming productivity as described above. This has the potential to negatively impact both large scale farming industry as well as smaller scale subsistence farming. According to the Air Quality Impact Assessment (Prime Resources A, 2015), the increase in dust generation and particulate matter along the haul route are expected to be low post-mitigation, thus the impact of dust on crops and farm productivity is expected to have a low negative significance.

NATURE/ MAGNITUDE DURATION SCALE PROBABILITY PHASE SIGNIFICANCE STATUS (M) (D) (S) (P) Construction Low Long term Local Low probability Low Negative Operation [Low] [Long term] [Local] [Improbable] [Low] Decommissioning

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 53 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 Mitigation

With the implementation of the following mitigation measures, the impact can be further reduced:

All clearance of land must be limited to the designated area and disturbance must be minimised where possible.
Exposed areas must be re-vegetated as soon as possible to stabilise soil.
A water spray dust suppression system must be administered on site and along the haul route during construction, operation and decommissioning phases.
Construction vehicles and haul trucks travelling on unpaved roads must adhere to a speed limit of 40 km/h. Routes must be clearly sign-posted and drivers must only travel on the demarcated haul routes.
The haul trucks must be covered or the ore must be wet prior to hauling to prevent the spread of dust during transportation.
Air quality monitoring measures must be implemented as per Section 8.8.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 54 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 Table 2: Summary of Direct Impacts

NATURE / MAGNITUDE DURATION SCALE PROBABILITY SIGNIFICANCE MITIGATION AND DESCRIPTION OF IMPACT PHASE STATUS (M) (D) (S) (P) VALUE RATING MANAGEMENT MEASURES

DIRECT IMPACTS

Construction
Effective implementation of the Continued employment for 8 4 2 5 70 High Operation Positive SLP HRD Programme, which is ME Operations employees. [10] [4] [2] [5] [80] [High] Decommissioning further discussed in Section 8.1.

Information dissemination, recruitment and supply chain transparency; Migration of job seekers into Construction 10 5 2 5 85 High
Influx management and security Negative the project area. Operation [10] [3] [2] [4] [60] [High] arrangements; and
Section 8 provides more detail on management and monitoring measures to be implemented.
Clearance of land must be minimized;
Water spray dust suppression Decrease in air quality as a system must be administered Construction result of dust, hauling 10 4 2 4 64 High throughout LoM; Operation Negative vehicles and dumping of [10] [4] [2] [3] [48] [Medium]
Heavy vehicles must adhere to Decommissioning rock at the site. 40 km/h speed limit;
Air quality monitoring measures must be implemented as per Section 8.8.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 55 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 NATURE / MAGNITUDE DURATION SCALE PROBABILITY SIGNIFICANCE MITIGATION AND DESCRIPTION OF IMPACT PHASE STATUS (M) (D) (S) (P) VALUE RATING MANAGEMENT MEASURES
Erect a waste rock berm and wall around ore hoisting and loading areas (6 m in height);
Vertical axial fans must be Increase in ambient noise installed below the surface level levels at the shaft as a within the ventilation shaft; result of truck loading 4 4 2 4 40 Medium
Vertical attenuated exhaust Operation Negative activities at Holfontein shaft [2] [4] [1] [3] [21] [Low] stacks must be utilised; and the continuous
At the shaft the bin and chute operation on the vent shaft. must be enclosed by an acoustic enclosure; and
Noise monitoring measures must be implemented as per Section 8.8.
Avoid unnecessary removal of trees;
Keep vertical infrastructure to a Construction minimum height; Proposed infrastructure will 6 4 2 5 60 High Operation Negative
Avoid use of highly reflective result in a visual intrusion. [6] [4] [2] [5] [60] [High] Decommissioning materials; and
Paint the headgear and vent shaft in neutral landscape appropriate colour.
Avoid unnecessary illumination;
Provide light fittings which limit Visual nuisance factors such Construction 6 4 2 5 50 Medium light spill; as extensive lighting used at Operation Negative [4] [4] [1] [3] [27] [Low]
Limit heights of the lights; and night. Decommissioning
Use low pressure sodium lighting where possible.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 56 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 NATURE / MAGNITUDE DURATION SCALE PROBABILITY SIGNIFICANCE MITIGATION AND DESCRIPTION OF IMPACT PHASE STATUS (M) (D) (S) (P) VALUE RATING MANAGEMENT MEASURES
Effective casing of the refurbished shaft and ventilation shaft;
Effective sealing / grouting of underground fissures;
Contaminated stormwater must Impact on groundwater be contained and not allowed to Construction 6 4 2 2 24 Low users due to dewatering Negative infiltrate into the groundwater; Operation [2] [2] [2] [2] [12] [Low] activities of mining sections.
Discharged groundwater must meet DWS water quality standards in order to prevent ingress into Karoo aquifer; and
Groundwater monitoring measures must be implemented as per Section 8.8.
A pedestrian walkway should be installed along the Holfontein Road to limit pedestrian traffic accidents and to ensure children have a safe path to Pansy Avenue. Road safety – increased
Holfontein Road should be fenced danger / pedestrians and Construction 8 4 1 5 65 High to prevent pedestrians walking livestock mortality rates as a Operation Negative [6] [4] [1] [3] [33] [Medium] on the road; result of additional haul Decommissioning
Ensure a medical emergency vehicle traffic on haul route. response service is available in case of accidents occurring along Holfontein Road; and
Traffic safety monitoring measures must be implemented as per Section 8.8.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 57 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 NATURE / MAGNITUDE DURATION SCALE PROBABILITY SIGNIFICANCE MITIGATION AND DESCRIPTION OF IMPACT PHASE STATUS (M) (D) (S) (P) VALUE RATING MANAGEMENT MEASURES
The DMR request that a financial provision for closure be calculated during EIA process;
Financial provision is placed into a dedicated trust fund, a financial Decrease in land capability guarantee and/or by depositing as a result of ineffective on- Operation 8 5 1 4 56 Medium the funds into an account Negative site management and Decommissioning [6] [5] [1] [2] [24] [Low] specified by the DMR; and rehabilitation.
If necessary, financial provision can be accessed by the mine / DMR to fully rehabilitate the project area. The financial provision needs to be re- evaluated annually.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 58 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 Table 3: Summary of Indirect Impacts

DESCRIPTION OF NATURE / MAGNITUDE DURATION SCALE PROBABILITY SIGNIFICANCE MITIGATION AND PHASE IMPACT STATUS (M) (D) (S) (P) VALUE RATING MANAGEMENT MEASURES

INDIRECT IMPACTS

Overcrowding leading to Construction pressure on existing Operation Negative 10 5 1 4 64 High infrastructure and services. Decommissioning Overcrowding leading to Construction social ills and decreased Operation Negative 10 5 2 4 68 High quality of life. Decommissioning These impacts cannot be mitigated Establishment of tuck shops however, the best practice and canteens in the guidelines and recommendations in Holfontein project area in Construction the SEMMP (Section 8) should be order to supply mine Operation Negative 6 4 1 4 44 Medium adhered to in order to minimise the employees and new Decommissioning residents with food and significance of these impacts where drink. possible. Loss of sense of place due to overcrowding, increased Construction noise and traffic and a Operation Negative 10 5 1 5 80 High change in the visual Decommissioning landscape.
Clearance of land must be minimized; Dust generated as a result
Water spray dust suppression of hauling of rock from system must be administered Construction Holfontein to ME Operations 4 4 2 2 Low 20 throughout LoM; Operation Negative which has the potential to [4] [4] [2] [1] [Low] [10]
Heavy vehicles must adhere to Decommissioning negatively impact crops and 40 km/h speed limit; farming capability.
Air quality monitoring measures must be implemented as per Section 8.8.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 59 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 7.4 Cumulative Impacts

Cumulative impacts, as described above, are the impact on the environment, which results from the incremental impact of the action when added to other past, present, and reasonably foreseeable future actions regardless of what agency or person undertakes such other actions. It is often difficult to fully quantify existing impacts, such as dust and noise, and determine all their contributing factors, which makes it nearly impossible to quantify cumulative impacts or the degree to which the project will increase / worsen the existing impact. In light of this, the cumulative impacts are assessed qualitatively and not quantitatively.

7.4.1 Increased Dust / Particulate Matter at the Site

The impact of increased dust and particulate matter resulting from increased heavy vehicle movement over haul roads (on site) as well as dropping of mined rock from the chute into trucks may result in a decrease in the overall air quality of the region.

The Air Quality Impact Assessment (Prime Resources A, 2015) notes that the Highveld area (including eastern Gauteng and western Mpumalanga) is associated with poor air quality and elevated concentrations of pollutants, and has thus been proclaimed as a Priority Airshed Area (the Highveld Priority Area). The proposed project falls within the Highveld Priority Area and the ambient air quality is thus considered to be significantly impacted.

The NAAQS defines PM 10 as particulates associated with air pollution, with an aerodynamic diameter of 10 micron. According to the air quality monitoring data obtained from the South African Air Quality Information System (SAAQIS) for the Etwatwa Station, the annual average 3 concentration of PM 10 (104 µg/m ) already exceeds the NAAQS allowable concentration (40 µg/m3). As background concentrations already greatly exceed the NAAQS allowable concentration,

the cumulative impact in terms of the contribution of PM 10 from the proposed development on the ambient air quality is likely to be high, as any additional air pollution will continue to worsen the air quality of the Highveld Priority Area. However, this will need to be confirmed by on-site air quality monitoring during the LoM.

Mitigation

With the implementation of the following mitigation measures and the air quality management plan (detailed in the EMP), the cumulative impact of the proposed project on the Highveld Priority Area can be reduced:

All clearance of land must be limited to the designated area and disturbance must be minimised where possible.
Exposed areas must be re-vegetated as soon as possible to stabilise soil.
A water spray dust suppression system must be administered on site and along the haul route during construction, operation and decommissioning phases.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 60 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668
Construction vehicles and haul trucks travelling on unpaved roads must adhere to a speed limit of 40 km/h. Routes must be clearly sign-posted and drivers must only travel on the demarcated haul routes.
The haul trucks must be covered or the ore must be wet prior to hauling to prevent the spread of dust during transportation.
Air quality monitoring measures must be implemented as per Section 8.8.

7.4.2 Increased Heavy Vehicle Traffic Resulting in Decreased Air Quality

As a result of the project, there will be increased heavy vehicle traffic along Pansy Avenue and Carnation Road, which will form part of the haul road route between the Holfontein shaft and the ME Operations (Figure 3). The Traffic Impact Assessment identified 700-900 vehicles during peak times at the Carnation Road and Pansy Avenue intersection, however, the heavy vehicle count was not specified.

Residents of the Welgedacht SH raised concerns during the public consultation process about the dust generated on Carnation Road due to vehicles travelling to and from the Welgedacht WWTW. Any dust generated due to the Holfontein Project haul trucks and buses transporting personnel to and from the ME Operations on the unpaved portions of Carnation Road will amplify the nuisance impact of dust already experienced by surrounding residents.

Mitigation

As the cumulative impact of dust could not be modelled, the cumulative impact on Welgedacht SH residents could not be determined. It is recommended that the precautionary principle be implemented in terms of the management of cumulative dust in order to address concerns that have been raised by residents occupying properties directly adjacent to the proposed haul route. Therefore, it is recommended that the unpaved portion of the haul route between the Blesbokspruit crossing and the paved portion of Carnation Road be paved (Figure 16), which will mitigate any dust generated from vehicle entrainment on unpaved roads.

7.4.3 Increased Heavy Vehicle Traffic Resulting in Increased Pedestrian / Livestock Injury and Mortality

As discussed above (Section 7.4.2), the Holfontein Project will result in additional heavy vehicle traffic along Carnation Road. The residents of Carnation Road have confirmed that heavy vehicles associated with the ERWAT Welgedacht WWTW utilise Carnation Road in order to access the WWTW. This poses an existing safety risk (as a result of speeding) which will be increased with additional heavy vehicles utilising the road. The mine will need to ensure that along with upgrading Carnation Road, mine vehicles maintain and adhere to strict speed limits along Carnation Road. It is also recommended that additional lanes are constructed at the intersections of Carnation Road / Pansy Road and Pansy Road / Holfontein Road to ensure safe turning for heavy vehicles.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 61 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 7.4.4 Increase in Seasonal Flooding Downstream of Project Area

During public consultation, concerns were raised regarding an increase in seasonal flooding due to discharge from the mine into the Holfontein Stream (the planned discharge point). Discharge to the Holfontein Stream over the LoM would result in erosion of the bed and banks of the Holfontein Stream as well as an increase in the flow and velocity of the stream. All these factors may contribute to an increase in flow volumes and potential worsening of flood conditions experienced by the Welgedacht SH residents.

Mitigation

The Hydrological Impact Assessment (African Environmental Development, 2015) considered the best location for the discharge point and recommended that the mine discharge the excess groundwater to a point opposite the ERWAT Welgedacht WWTW. This will insure that there is no cumulative impact on the flood conditions experienced by the Welgedacht SH and will also dilute and treated sewage effluent being discharged by the WWTW.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 62 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

Figure 16: Location of Carnation Road upgrade and proposed discharge pipeline

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 63 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 8 SOCIO-ECONOMIC MANAGEMENT AND MONITORING PLAN

This Socio-Economic Management and Monitoring Plan (SEMMP) recommends management and monitoring strategies which can be applied throughout the LoM, in order to, where possible, pre- empt or otherwise mitigate and manage the risks and impacts identified by the SIA.

As discussed in Section 7, socio-economic impacts are often difficult to quantify or gauge as the magnitude and probability of potential impacts are often unknown or impossible to predict. Furthermore it is challenging to create and develop specific socio-economic management measures when the magnitude and probability of the impact are unknown. Where it is impractical or impossible to propose specific mitigation measures for a particular impact (Section 7) the SEMMP provides recommended international best practice management, which, if implemented throughout the life of the Holfontein Project, will assist in preventing the exacerbation of impacts.

8.1 Social and Labour Plan (SLP)

An SLP is aimed at promoting employment and advancement of the social and economic welfare of all South Africans whilst ensuring economic growth and socio-economic development.

The NKGM SLP HRD Programme details the following initiatives which are currently being implemented at ME Operations and which will be extended to the Holfontein Project when it commences:

Skills Development Plan;
Career Progression Plan;
Mentorship Plan;
Internship/Learnership Plan and Bursary Scheme;
Employment Equity (EE) Plan;
LED Programmes; o Mini Hospital in Lindilani o Slovo Park Farming Co-operative
Downscaling and Retrenchment Plan

8.2 Community Development Plan (CDP)

A CDP must consider the potentially affected community members’ livelihoods after the mining operation has ceased, and prioritise socio-economic development measures aimed at building local capacity beyond the mine’s lifecycle. NKGM must compile a CDP specifically for the Holfontein Project. It is recommended that NKGM collaborate with EMM and local government. The following initiatives can be considered for inclusion in the CDP:

Provision of additional water tanks and water supply boreholes for the Holfontein Community;

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 64 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668
Investigation into possible installation of a modular sewage treatment plant or composting toilets for the Holfontein Community;
Formalising of 1 or 2 tuck shops outside the mine entrance, which could be run by the Holfontein Community; and
Upgrading and maintenance of Carnation Road will ensure a reduction in dust generation and will provide Welgedacht SH residents with a better road than the existing one.

8.3 Community Engagement

The stakeholder and community engagement process is a crucial process for any mining project. It is vital that all IAPs are engaged with on a regular basis, throughout the project, from pre- construction through to closure. A Stakeholder Engagement Plan and Grievance Mechanism must be drawn up for the project.

A Stakeholder Engagement Plan (SEP) is the basis for building strong, constructive and responsive relationships that are essential for the successful management of a project's environmental and socio-economic impacts. The main objectives of a SEP are as follows:

Identification of stakeholders / IAPs
Disclosure of planned project activities;
Identification of concerns and grievances from stakeholders;
Harnessing of local expertise and knowledge from IAPs;
Ongoing disclosure of project activities and monitoring results; and
Response to grievances and enquiries of stakeholders (via a Grievance Mechanism).

It is recommended that NKGM establish a Community Engagement and Security Forum (CESF) to ensure that stakeholders are notified and consulted throughout the LoM. It will be the responsibility of the Environmental Control Officer (ECO) and / or SLP Officer to manage the Forum, including:

Ensuring that the authority and IAP contact details are updated;
Informing IAPs of the establishment of the CESF and providing them with the opportunity to join the forum, attend meetings, and receive any relevant information;
Facilitating meetings during construction and operation, taking minutes of these meetings, and distributing meeting minutes prior to the next meeting (it is recommended that these meetings be held every second month);
Distributing information relevant to community health and safety to stakeholders (including environmental monitoring data, the Emergency Preparedness and Response (EPR) Plan, Grievance Mechanism (GM), issues and concerns raised);
Maintaining communication channels throughout the life of the project;
Drafting an action plan to enable the affected communities and relevant government agencies to understand the potential safety and security impacts, and disseminating the plan to IAPs prior to construction;
Timeously communicating any changes to the proposed project, impacts and/or mitigation and monitoring methods, and ensuring that proper legal procedures will be followed; and

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 65 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668
Maintaining an accident register and compiling accident reports (for the haul route). This accident register should be submitted to the CESF on a monthly basis.

8.4 Training and Awareness Programmes

8.4.1 Employee and Contractor Training

NKGM personnel and contractors must be familiar with relevant environmental and social commitments within the authorised EMP. Managers will need to be appropriately trained and familiarised with respect to the EMP in order to possess the skills necessary to impart EMP requirements to their subordinates.

All personnel involved in the construction and operation of the project must undergo a training and awareness programme on health, safety, environmental and social requirements and obligations prior to commencing activities. NKGM will develop a procedure for environmental and social training which will lay out in detail the methodology for developing and presenting environmental and social awareness and induction training specific to the Holfontein Project.

8.4.2 Community Training

Community Health and Safety training will assist NKGM in raising awareness with the local community (Holfontein Community and Welgedacht SH) regarding project-associated risks.

The objectives of the community health and safety training will be:

Raising awareness associated with all project activities;
Identification of health concerns and associated behaviour, including HIV/AIDS awareness, hygiene, related to potential sewage / chemical toilet spills; water quality and use;
Encouraging the use of safety initiatives undertaken by NKGM, including fencing and creation of a pedestrian walkway; and
Identification of dangerous / hazardous site activities, including haul roads, PCD, discharge point and pipeline, and the shafts.

8.5 Security Personnel

In order to prevent conflict between the mine and the surrounding community, a security policy must be compiled. Keys aspects of this policy include:

Security personnel must be thoroughly vetted, to ensure that none of the individuals hired have been involved in past human rights abuses;
Roles of security personnel must be limited to protecting the work force and safeguarding physical assets;
Security personnel must be encouraged to have as little interaction with the community as possible; and
Security personnel need to be properly trained in the use of armed force and violence, as well as conduct towards community members.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 66 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 8.6 In-Migration Management Plan

An In-Migration Management Plan must be developed to reduce the in-migration of job-seekers into the area, and to mitigate the negative impacts associated with this potential in-migration. The In-Migration Management Plan must include procedures for disseminating employment-related information, recruitment and supply chain procedures, as well as security arrangements. It is recommended that this Plan be compiled in collaboration with the EMM, local authorities and residents of the area.

8.7 Emergency Preparedness and Response Plan

NKGM must establish and maintain an Emergency Preparedness and Response Plan (EPRP), in collaboration with appropriate and relevant third parties. The EPRP will be developed to respond to accidental and emergency situations associated with the project in a manner that will assist in preventing and mitigating any harm to people and / or the environment. EPR training and awareness must form part of the EPRP to be developed.

8.8 Socio-Economic Monitoring Programme

8.8.1 Objective

This programme will monitor the progress and effectiveness of proposed socio-economic impact mitigation measures and ensure stakeholder input is considered as part of the ongoing implementation process. Ongoing stakeholder engagement (as discussed in Section 8.3) will play a key role in monitoring socio-economic impacts and the effectiveness of mitigation and management strategies.

8.8.2 Monitoring Sites

The following residential areas will need to be monitored in order to ensure that potential socio- economic impacts associated with the Holfontein Project (discussed in Section 7) are recorded and documented, which will facilitate effective mitigation and management:
The Khomponi Community (Figure 11); and
The Welgedacht SH (Figure 13).

8.8.3 Programme

Khomponi Community

Changes in the social conditions at the Khomponi Community. This will entail the development of a Khomponi Community database, which will keep a record of all existing residents, their households and their dwelling type. All existing dwellings should be mapped. This database will assist NKGM in monitoring any increase in population of the Khomponi Community and any increase in informal dwelling development;

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 67 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668
Similarly, the establishment of tuck shops in the vicinity of the mine should be monitored in order to ensure that any informal retail activities are controlled and are not permitted to become nuisance factors or a safety concern;
The Community’s perception and experience of crime in their area must be monitored. Crimes must be reported to the mine so that a record can be kept of criminal activity within and around the mine. This will assist NKGM in monitoring and managing the potential increase in crime as a result of in-migration and community expansion;
Monitoring of air quality and dust within and around the Khomponi Community must be undertaken according to the Air Quality Impact Assessment (Prime Resources A, 2015);
Noise monitoring must be undertaken according to the Noise Impact Assessment (JH Consulting, 2015) within and around the Khomponi Community;
Traffic safety and accidents must be monitored and documented according to the EMP and Traffic Impact Assessment (Siyazi, 2015) in order to ensure that the residents are utilising the pedestrian walk way and that fatalities are avoided;
Periodic soil contamination assessments, entailing soil analyses must be carried out. The concentrations of the heavy metals should be compared to the baseline concentrations as determined in the Soil and Agricultural / Land Capability Impact Assessment (Prime Resources B, 2015). The periodic soil contamination assessments will facilitate the identification of potential source, pathway, and receptor elements where contamination occurs, and consequently reveal appropriate remedial action(s) where necessary; and
Complaints and grievances must be reported, recorded and where possible addressed. This will assist NKGM in monitoring the possible negative impacts associated with air quality, dust, noise and visual disturbance.

Welgedacht SH

The dedicated groundwater monitoring boreholes within the Welgedacht SH must be monitored monthly for groundwater levels and quarterly for inorganic elements as per the Groundwater Impact Assessment (Groundwater Square, 2015) to ensure that the groundwater quantity and quality utilised by the Welgedacht SH are not compromised as a result of the Holfontein Project;
Carnation Road must be monitored and maintained according to the EMP in order to ensure that the road does not deteriorate or become unusable for Welgedacht SH residents;
If the recommendation of paving the unpaved portion of Carnation road is not implemented, or until such time that is paved, monitoring along Carnation Road should be undertaken to determine dust fallout as per the Air Quality Impact Assessment (Prime Resources A, 2015); and
The Community’s perception and experience of crime in their area must be monitored. Crimes must be reported to the mine so that a record can be kept of criminal activity within the Welgedacht SH. This will assist NKGM in monitoring and managing the potential increase in crime as a result of in-migration and Khomponi Community expansion.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 68 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 8.8.4 Reporting

Socio-economic monitoring is to occur at least every second month or as identified in the relevant air quality, noise, traffic and groundwater specialist reports or the EMP. An annual monitoring report is to be compiled, containing all of this information, and is to be made available to the CESF.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 69 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 9 CONCLUSION

The baseline phase of the study chiefly focused on the collection of primary and secondary data in order to characterise the current socio-economic environment and identify potential socio- economic impacts on receptors. Primary data was obtained via a verbal questionnaire, interviews, and consultation with community receptors and key stakeholders. Secondary data was collected through desktop research in the form of municipal reports and census data.

All data was collated and analysed against four key indicators, allowing for uniform comparison across the various data sets:

Age and Gender
Employment
Education
Household Utilities

The EMM covers an extensive area of the East Rand of Gauteng. The EMM is characterised by multiple land uses including industrial, agricultural and residential, among others. The area is densely populated and the largest population group is aged 25 to 29 years, which is most likely because many young adults relocate to EMM in search of employment. In the last 10 years, the EMM has achieved an increase in the percentage of people completing Grade 12 and obtaining higher education. The EMM has also reduced its unemployment rate in the last ten years.

Region C and Ward 67 reflect analogous statistics to the greater EMM area, however Region C is largely characterised by residential, agricultural and open land that has been allocated to urban development. Due to the abundance of these open land areas and fewer industrial areas Region C has become home to growing informal settlements. These informal settlements place pressure on local services and infrastructure, and increase the risk associated with disasters and natural hazards such uncontrolled veld fires and flooding.

The sensitive receptors were identified as the Holfontein Community, located at the Holfontein shaft area and across the N12 highway, as well as the residents and business owners of the Welgedacht SH. The Holfontein Community are divided by the highway into the Khomponi Community, living in and around the historical mine hostel and house, and the Holfontein Quarters Community, living in historical mine houses. The Khomponi Community fall into a very low or zero income category as most are unemployed, while the Holfontein Quarters Community fall into a low income category, as many are permanently employed at the Holfontein Hazardous Waste Landfill Site.

According to the EMM and Region C categorisation, the Khomponi and Holfontein Quarters Communities are classified as informal settlements, as they do not have access to basic infrastructure and services such as running water, electricity and formal sanitation. However, the residents say they have been living in this area for 35 years and are well established. The Welgedacht SH are largely characterised by private home and business owners. These home and business owners fall into a medium to high income category. Most residents have secondary and /

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 70 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 or tertiary education and have access to basic services and infrastructure such as borehole water, electricity and formal sanitation.

The socio-economic impact assessment identified a number of potential negative impacts resulting from the proposed project, many of which were difficult to quantify due to their unpredictable nature. As a result, most of these impacts could not be mitigated and would remain high significant impacts throughout the LoM. The following post-mitigation significant impacts were identified:

Migration of job seekers into the project area;
Proposed infrastructure will result in a visual intrusion;
Overcrowding leading to pressure on existing infrastructure and services;
Overcrowding leading to social ills and decreased quality of life; and
Loss of sense of place due to overcrowding, increased noise and traffic, and a change in the visual landscape.

It is recommended that international best practice management be implemented throughout the life of the Holfontein Project, in order to assist in preventing the exacerbation of these impacts. Some of the most important management measures are as follows:

Transparent and effective community engagement;
Establishment of a CESF to ensure that stakeholders are notified and consulted throughout the LoM;
Prompt response to grievances raised by IAPs and community members via an established grievance mechanism;
Development of an In-Migration Management Plan in order to reduce the in-migration of job-seekers into the area and to mitigate the negative impacts associated with this potential in-migration. It is recommended that this Plan be compiled in collaboration with the EMM, local authorities and residents of the area; and
Compilation of a CDP specifically for the Holfontein Project. It is recommended that this is done in collaboration with EMM and local government.

The impacts associated with air and noise pollution as well as traffic safety and potential flooding can be mitigated, managed and controlled and were not considered significant post-mitigation. The key mitigation measures proposed to manage these impacts are as follows:

A water spray dust suppression system must be administered on site and along the haul route during construction, operation and decommissioning phases;
A waste rock berm and wall (6 m in height) must be erected around ore hoisting and loading areas to provide a natural noise barrier between the boundary of the activities and the Khomponi Community;
It is recommended that vertical axial fans are installed below the surface level within the ventilation shaft. It is further recommended that vertical attenuated exhaust / intake stacks are utilised at surface level;

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 71 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668
It is recommended that a pedestrian walkway be installed along the Holfontein Road in order to limit pedestrian traffic accidents and to ensure children have a safe path to Pansy Avenue;
Air quality, noise and traffic safety monitoring measures must be implemented;
It is recommended that the unpaved portion of the haul route between the Blesbokspruit crossing and the paved portion of Carnation Road be paved; and
It is recommended that the mine discharge to a point opposite the ERWAT Welgedacht WWTP, which will insure that there is no cumulative impact on the flood conditions experienced by the Welgedacht SH residents.

None of the direct or indirect impacts identified are expected to affect the Holfontein Quarters Community, due to their distance from the proposed project. The only impact which will affect them will be the potential overall decrease in air quality of the Highveld Priority Area. This impact will need to be monitored and assessed throughout the LoM.

The potential socio-economic impacts of the proposed project are largely considered manageable with the effective implementation of the proposed mitigation measures, management and monitoring plan. It is however essential that the proposed mitigation and management measures are implemented consistently and effectively.

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 72 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 10 REFERENCES

Groundwater Square (2015), Groundwater Impact Assessment Gold One International Modder East Mine, Holfontein , Gauteng, South Africa

Department of Environment and Tourism (2006) Socio-Economic Impact Assessment, Integrated Environmental Management Information Series 22 , Department of Environmental Affairs and Tourism (DEAT), Pretoria

Ekurhuleni Metropolitan Municipality (2013), Integrated Development Plan (2013/14 – 2015/16), Directorate: Publishing and Marketing, Germiston, South Africa

Ekurhuleni Metropolitan Municipality (2014), Built Environment Performance Plan (2014 -2015) , City Planning Department, Kempton Park, South Africa

Ekurhuleni Metropolitan Municipality (2011), Corporate Disaster Management Plan , Disaster Management Centre Division, Bedfordview, South Africa

Hoboyi, Nokhwezi (2009), Rape Officially a Reduction but Unofficially , Treatment Action Campaign, Communications and Research Coordinator, Ekurhuleni District Policy, Germiston, South Africa

Housing Development Agency (2013), Gauteng: Informal Settlement Status (2013) , Johannesburg, South Africa

JH Consulting (2015), Draft Environmental Noise Report New Kleinfontein Goldmine (Pty) Ltd – Holfontein Shaft , Northriding, South Africa

Kirsten Scott (2011), Proposed Kerrie Fontein and Darling Wind Farm Draft Social Impact Assessment Report , University of Cape Town, Environmental Evaluation Unit, Rondebosch, Cape Town

African Environmental Development (2015), Surface Water and Hydrological Environmental Impact Assessment pertaining to the reopening of the Holfontein Shaft by New Kleinfontein Goldmine (Pty) Ltd, Ekurhuleni Metropolitan Municipality, Gauteng Province, South Africa , Gauteng, South Africa

Kriek, Marieke (2014), Ekurhuleni Metropolitan Municipality Draft Regional Spatial Development Framework: Region C , GIBB (Pty) Ltd, Johannesburg, South Africa

Madihlaba, Masele (2015), Governance Report for Ward 67 from 2011 to 2015 , Ekurhuleni Metropolitan Municipality, Springs

Prime Resources A (2015), Air Quality Impact Assessment for the Proposed Holfontein Project, Gauteng Province, Johannesburg, South Africa

Prime Resources B (2015), Soil and Agricultural / Land Capability Impact Assessment Specialist Study for the Proposed Holfontein Project, Gauteng Province, Johannesburg , South Africa

Prime Resources C (2015), Visual Impact Assessment for the Proposed Holfontein Project, Gauteng Province, Johannesburg, South Africa

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 73 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668 South African National Standard - Code of practice, SANS 10103:2008, The measurement and rating of environmental noise with respect to annoyance and to speech communication

Statistics South Africa (2012), Census 2011 Municipal Report – Gauteng , Pretoria, South Africa

Vanclay, F (2002), Conceptualising Social Impacts , Environmental Impact Assessment Review, 22. 183-221

Siyazi (2015), Traffic Impact Assessment Proposed Refurbishment of the Existing Holfontein Shaft including Haul Route to the Existing New Kleinfontein Goldmine Modder East Operations located near Springs , Gauteng Province , South Africa

Project Name: New Kleinfontein Goldmine (Pty) Ltd Holfontein Project Page 74 of 74 Report Title: Socio-Economic Impact Assessment Project Number: 140668

APPENDIX 1 DECLARATION OF INDEPENDENCE

Declaration of Independence

Prime Resources is an independent environmental consulting firm with no vested interest in the proposed project other than to fulfil the contract for delivery of specialised services including, among others, those stipulated in the terms of reference.

I, Zoё Gebhardt, in my capacity as a specialist consultant, hereby declare that I –

ƒ Act as an independent consultant; ƒ Do not have any financial interest in the undertaking of the activity, other than remuneration for the work performed in terms of the National Environmental Management Act, 1998 (Act No. 107 of 1998); ƒ Have no, and will not engage in, conflicting interests in the undertaking of the activity; ƒ Undertake to disclose, to the competent authority, any material information that has or may have the potential to influence the decision of the competent authority or the objectivity of any report, plan or document required in terms of the National Environmental Management Act, 1998 (Act 107 of 1998); ƒ Will provide the competent authority with access to all information at my disposal regarding the application, whether such information is favourable to the applicant or not; ƒ Based on information provided to me by the project proponent and in addition to information obtained during the course of this study, have presented the results and conclusion within the associated document to the best of my professional ability; ƒ Reserve the right to modify aspects pertaining to the present investigation should additional information become available through ongoing research and/or further work in this field; and ƒ Undertake to have my work peer reviewed on a regular basis by a competent specialist.

Report Compiled by: Report Reviewed by:

Zoё Gebhardt Gené Main

Senior Environmental Scientist Principal Environmental Scientist

APPENDIX 2 NEW KLEINFONTEIN GOLDMINE (PTY) LTD SOCIAL AND LABOUR PLAN OFFICER MEETING MINUTES

6 May 2015

NEW KLEINFONTEIN GOLDMINE (PTY) LIMITED

MEETING MINUTES FROM THE MEETING HELD WITH NKGM SOCIAL AND LABOUR PLAN OFFICERS REGARDING THE PROPOSED HOLFONTEIN PROJECT, GAUTENG

DATE: 24 February 2015 VENUE: Modder East Mine Offices TIME: 13h30 – 14h30

ATTENDEES CONTACT NO. NAME ORGANISATION EMAIL ADDRESS NUMBER 1. Mr Moatlhudi Mogwera (MM) Gold One International Ltd [email protected] 011 730 7618 2. Ms Ntokozo Dladla (ND) (G1) [email protected] 3. Ms Gené Main (GM) Prime Resources (Pty) Ltd [email protected] 011 442 7714 4. Ms Zoё Gebhardt (ZG) (PR) [email protected]

MINUTES

ITEM NO. AGENDA ITEM MATTERS ARISING

Welcome and ƒ MM welcomed GM and ZG to Gold One (G1) and introduced himself and 1 introductions ND. Both MM and ND are Social and Labour Plan (SLP) officers for G1.

ƒ ZG explained that she would be compiling the Socio-Economic Impact Assessment (SIA) for the proposed Holfontein Project. ƒ MM and ND were aware of the proposed project. Using a map, ZG illustrated the location of the shaft and haul road relative to potential 2 Holfontein Project sensitive receptors. ƒ ZG asked if G1 were still considering a farming Local Economic Development (LED) initiative for the Holfontein Project and MM confirmed that they were. ƒ ZG and GM explained that PR had conducted a preliminary site visit to the shaft area where it was observed that a community was residing in the 3 Sensitive Receptors historic mine hostel and house as well as within in informal dwellings around the hostel and house.

ITEM NO. AGENDA ITEM MATTERS ARISING ƒ As this community had settled so close to the historical shaft area they were preliminarily identified as sensitive receptors. ƒ ZG showed that the haul road route would be along Carnation Road, along which the Welgedacht Small Holdings were located. ZG and GM explained that there appeared to be largely businesses and private residences along the road. ƒ ZG asked if MM and ND had any information about the people living in the historical mine hostel and house. MM said that they did not but recommended that ZG contact the Ekurhuleni Metropolitan Municipality (EMM) Disaster and Emergency Management Services as they have had experience working in the surrounding area and have information on most of the associated communities. MM said that he would email contact details for Mr Jan Heyneke, who manages the Department, to ZG. ƒ ZG confirmed that PR would conduct a site visit to the community at the historic mine hostel and house to administer a questionnaire. ZG provided MM and ND with a copy of this questionnaire and briefly explained each question. ZG asked if MM and ND had any comments or feedback on the questionnaire, which they did not. ƒ ZG asked if MM and ND could recommend the most appropriate time for a 4 Way Forward meeting. MM suggested that ZG consult with Mr Heyneke in this regard as he would be likely to have more information about the local community and might be able to suggest appropriate meeting times. ƒ ZG asked if they were in contact with the relevant ward councillor and MM said they were not, but that Mr Ace Phiri, who worked at the Springs Customer Care Unit, would be able to provide these details. MM said he would email the relevant contact details to ZG. ƒ MM thanked ZG and GM for coming and requested that MM and ND be 5 Closing kept informed with regard to the social study and the project progress. ƒ ZG and GM thanked MM and ND for meeting with them.

Gold One International Ltd - Holfontein Project Page 2 of 2 Project Number: 140668 Date: 6 May 2015

APPENDIX 3 QUESTIONNAIRES

SOCIO-ECONOMIC QUESTIONNAIRE

Prime Resources (Pty) Ltd is an Environmental Consultancy from Johannesburg. We are undertaking this survey in order to obtain a better understanding of the people living in this area. This survey will inform a Socio-Economic Impact Assessment for a possible project being investigated in the area. Please note that this information will only be utilised in order to obtain socio-economic statistics for the area. Although we would greatly appreciate your participation you are in no way obliged to participate in this survey or answer any questions that you are not comfortable with.

1 What is your dwelling number/address?

How many rooms does your dwelling 2. have?

How many adult males in your household? 3. What are their ages?

How many adult females in your 4. household? What are their ages?

How many girls (0-18 years) in your 5. household? What are their ages?

How many boys (0-18 years) in your 6. household? What are their ages?

In what country were the members of 7. your household born?

If South Africa, in what province were you 8. (household head) born?

9. How long have you lived in this place?

10. Where did you live before?

11. Is each adult in the household employed?

12. If not employed, why not?

13. What is your household income?

What is the highest level of education 14. within your household?

Do the children attend primary/high 15. school?

16. Is anyone in your household disabled?

17. In what way are they disabled?

Does anyone in your household receive a 18. social grant?

Is anyone in your household ill or do they 19. take medication every day?

20. Where is your nearest clinic or hospital?

Does your household have access to water 21. and where does this water come from?

What is the main type of toilet facility 22. used by your household?

What type of energy do you use for 23. lighting and cooking?

Holfontein Project Page 2 of 2 Socio-Economic Questionnaire Zoe Gebhardt

From: Zoe Gebhardt Sent: 22 July 2015 02:29 PM Cc: Gene Main Subject: Holfontein Project | Socio-economic Impact Assessment

Good day all,

For the purposes of the Socio‐economic Impact Assessment we would like to better understand the demographics associated with the residents of the Welgedacht Small Holdings. This will be included into the report from a statistical point of view and no personal details will be included. If you are happy to participate please complete the below questionnaire and email it to [email protected] on/before Friday the 24th of July. Please note that this is optional and if you do not wish to participate you are in no way obliged to.

How many people reside on your property? What are their ages? What is their race? Do you have access to municipal water or borehole water? Do you have access to electicity? Do you have access to formal sanitation (flush toilets)? Where is your local clinic / hospital? Where is your local police station? Do you consider your suburb a low, medium or high crime area? If there are children living on your property, do they attend school? If so, what school? What is your highest level of education (Primary, Secondary or Tertiary education)? Do you own a car or do you use public transport? Are you employed and are the adults (18 years or over) living on your property employed? If you are employed, in which sector are you employed? What is your nationality? What province/city were you born in? Does anyone living on your property have a disability? Does anyone on your property receive a social grant (pension, disability grant etc.)?

Kind regards,

Zoё Gebhardt Senior Scientist

T: +27 11 447 4888 F: +27 11 447 0355 E: [email protected]

1

the workshop ▪ 70 ‐ 7th avenue ▪ parktown north ▪ johannesburg ▪ 2193 po box 2316 ▪ parklands ▪ 2121 www.resources.co.za

This e‐mail is confidential and it is intended only for the addressees. Any review, dissemination, distribution, or copying of this message by persons or entities other than the intended recipient is prohibited. If you have received this e‐mail in error, kindly notify us immediately by telephone or e‐mail and delete the message from your system. The sender does not accept liability for any errors or omissions in the contents of this message which may arise as a result of the e‐ mail transmission

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APPENDIX 4 HOLFONTEIN QUARTERS COMMUNITY MEETING NOTES

14 July 2015

NEW KLEINFONTEIN GOLDMINE (PTY) LIMITED

NOTES FROM THE MEETING HELD AT THE HOLFONTEIN QUARTERS COMMUNITY REGARDING THE PROPOSED HOLFONTEIN PROJECT, GAUTENG

ATTENDEES: See attendance registers attached DATE: 2 July 2015 VENUE: Holfontein Quarters (across the N12 highway from the Holfontein Project area) TIME: 11h00 – 12h00

NOTES

ITEM AGENDA ITEM MATTERS ARISING RESPONSE NO. ƒ Mpho Kgame (MK), who served as the English-Zulu translator and facilitator, welcomed everyone to the meeting and introduced Zoё Gebhardt (ZG) and Gené Main (GM) from Prime Resources (PR). ƒ MK explained that PR is an independent environmental consultancy employed by the mine, New Kleinfontein Goldmine (Pty) Ltd 1 Introductions (NKGM), to assist them in undertaking the environmental process. ƒ ZG/MK explained that during the Khomponi Community public meeting, Mr Mashaba had requested that PR also consult with Holfontein Quarters, on the other side of the N12, because they form part of the Holfontein Community, which is why this meeting has been scheduled. ƒ ZG/MK explained that PR wanted to know Community more about the community in order to better 3 characterisation understand their situation. ƒ ZG/MK asked if it would be okay to ask some ƒ The attendees confirmed that this

ITEM AGENDA ITEM MATTERS ARISING RESPONSE NO. questions about the community. would be okay. ƒ GM/MK asked how many people were living ƒ The attendees were not able to in the community, how many families and estimate the number of community how many buildings. members but confirmed that there were 13 houses (each with a garage / outbuilding, some of which had been converted into housing) and they estimated 2 families per house. ƒ ZG/MK asked if their only access to water ƒ The attendees confirmed that they was the JoJo tank and if they had boreholes. had two JoJo tanks (no boreholes). ƒ GM/MK asked who supplied this water to ƒ The community noted that the them. tanks were refilled twice a week by various contractors. They thought that the municipality supplied the water to them. ƒ ZG/MK asked if they had chemical toilets or ƒ The attendees confirmed that they only pit toilets. only had pit toilets. ƒ ZG/MK asked if they had access to electricity. ƒ The attendees confirmed that they did not, they used candles, paraffin and wood for cooking, heating and light. ƒ ZG asked how they charged their cellular ƒ The attendees said that they go phones if they did not have electricity. into Etwatwa and have to pay R10 to charge their phones. ƒ ZG/MK asked whether they walk to Etwatwa. ƒ The attendees said that they catch a taxi off Pansy Avenue. ƒ ZG/MK asked where their closest clinic or ƒ The attendees said Slovo Park or hospital was. Etwatwa. ƒ GM/MK asked if most of the community ƒ The attendees confirmed that most members were employed. GM/ MK asked if of the community members were they were employed at the Holfontein employed and they confirmed that Landfill. ZG/MK asked if it was temporary or many were employed permanently permanent employment. at the Holfontein Landfill. ƒ ZG/MK asked if the children attended school. ƒ The attendees confirmed that they If so, where they went to school and how children did attend school in Slovo they got to school. Park and that they caught a school bus from Pansy Avenue. ƒ ZG/MK thanked everyone at the meeting in 4 Closing the Holfontein Quarters Community for attending the meeting.

New Kleinfontein Goldmine (Pty) Ltd - Holfontein Project Page 2 of 2 Project Number: 140668 Date: 14 July 2015