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New Kleinfontein Goldmine (Pty) Ltd Modder East Operations

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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.
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