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Environmental and Social Impact Assessment Kalukundi Copper/Cobalt Mine Project Democratic Republic of Congo

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Environmental and Social Impact Assessment Kalukundi Copper/Cobalt Mine Project Democratic Republic of Congo ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT KALUKUNDI COPPER/COBALT MINE PROJECT DEMOCRATIC REPUBLIC OF CONGO PART A – ENVIRONMENTAL & SOCIAL IMPACT ASSESSMENT October 2008 COMPILED BY: REUBEN HEYDENRYCH Pr. L. Arch M. Phil Environmental Management (University of Cape Town) For Envirolution Consulting REVIEWED BY: DR. MALCOLM LOGIE Pr. Sci. Nat. Managing Director: Biotechnology and Environmental Specialist Consultancy AND JACQUI RAYNES MSc Environmental Management Environmental Manager: Africo Resources Limited ACKNOWLEDGEMENTS Envirolution would like to sincerely thank the entire team that were responsible for the compilation of this report and the specialist reports that contributed to it. Thanks are also due to the Africo Resources team that provided support to the ESIA team members. In particular, Jacqui Raynes and Sauda Kilumanga are to be thanked for their generous assistance on site. EXECUTIVE SUMMARY Introduction African Resources Limited (ARL) is the holder of an exploitation permit to mine copper and cobalt on the Kalukundi Concession in the Katanga Province of the Democratic Republic of the Congo (DRC). This concession is located 50 km east of the town of Kolwezi and 205 km west northwest of Lubumbashi, the provincial capital. Prior to exercising the right to mine, ARL has committed to complying with requirements for environmental and social impact assessment, both in terms of Congolese legislation and it terms of the requirements of international financial institutions that subscribe to the Equator Principles. ARL submitted an Environmental Adjustment Plan to the DRC government (approved April 2007) to fulfil its legal requirements. Subsequent to this, ARL appointed Envirolution Consulting to prepare the current Environmental and Social Impact Assessment (ESIA) to fulfil the requirements of the Equator Principles. The ESIA is a comprehensive assessment of impacts that could occur throughout the life-cycle of the proposed mining project and it recommends measures to prevent and mitigate these impacts. Motivation for the mining project ARL is a publicly listed company and therefore needs to deliver value to its shareholders. Furthermore, the following direct and indirect benefits are expected to result from mining on the Kalukundi Concession: Capital investment of more than US$ 250 million; Generation of taxes and royalties to the DRC government; Assisting with the revitalisation of the Katanga region; Supporting the local transport industry; Injection of an estimated US$ 800 million into the local economy during the ten years (plus) of operation; Providing a market for local goods and services; Providing employment assurance for between 500 and 600 people and indirect support of an estimated 3000 people; Improvements in water, roads and communications infrastructure; Employee development through training programs; A general improvement in the standard of living; Provision of alternative livelihoods; Development of community organisational capacity. Project description The currently defined ore resources at Kalukundi occur within four fragments. The resources are predominantly composed of sulphides of copper and cobalt. However, the near-surface resources are oxides and an exclusively oxide ore zone has been delineated for processing for the first 10 years of operation. Mine life is expected to be extended through further exploration. Current planning includes the following phases: Phase 1: Site preparations and pre-production (Year 0); Phase 2: Mine production (Year 1 - Year 10); Phase 3: Future expansion (not covered by this ESIA); Phase 4: Decommissioning and closure. Over the current planned life of the mine approximately 39.3 Mt of material will be removed. All operations will be by open pit mining methods. An ore processing plant will be built on the site. The plant will operate according to well-established solvent extraction and electrowinning (SX-EW) process. Annual production of copper and cobalt cathodes will be 16,400 t and 3,800 t respectively. Waste rock from the open pits will be deposited in waste rock dumps adjacent to the pits. A single large tailings storage facility will be established on site to cater for waste generated by the SX-EW process. Due to dewatering of the open pits through boreholes and the use of minimal volumes of water in the SX-EW process, the mine will have a surplus of 22000 m3 per day, which will be discharged into the streams on site. The footprint of the infrastructure on the concession totals 302 hectares. The project will require the relocation of the existing Kisankala Village, which is located close to the middle of the concession area. Description of the existing environment Natural environment The Kalukundi Concession is located in a belt of copper and cobalt- bearing ores, which extend over 700 km from Luanshya in Zambia in the southeast to Kolwezi in the northwest. The concession ranges in altitude between 1375 m and 1500 m. The land is characterised by low relief, with the exception of the low metalliferous outcrops. The concession is drained by two westwards- flowing perennial streams in the northern portion of the concession, namely the Kii and Kisankala Rivers. Both of these watercourses have their origin on the concession. These streams enter the Lualaba River some 25 km west of the concession. Habitat integrity in these systems varies from undisturbed to highly disturbed: the most prominent source of disturbance being artisanal mining, which has deposited large volumes of sediment directly into the rivers. The climate of the concession is characterised by summer rainfall (an average of around 1200 mm per year) and temperatures of between 20 and 28 ºC per year. On a regional level, the study area is situated within the Miombo woodland belt of central Africa. Regionally, 475 vascular plants have been identified within this vegetation community. However, the local area is relatively fragmented and modified by human activity, reducing the numbers of species that exist. Broadly speaking four vegetation communities occurs within the concession area: Miombo woodland; Copper-cobalt outcrop associated vegetation; Dambo Wetland; and Gallery forest. A total of 266 plant species have been identified within the mine concession. In addition, 11 species that were not identifiable to family or genus level occur within the study area. Miombo woodland was found to be the most diverse with 183 species recorded, copper outcrops with 69 species but with a high degree of endemism; riparian communities with 35 species; dambo communities with 24 species and disturbed areas recorded 17 species. The mine region is located in an area of relatively uniform biotic complexity that has previously been poorly surveyed. It has high faunal species diversity, but no centres of endemism. The large bird and large mammal faunas are impoverished due to overgrazing and other human- induced impacts. Thirteen amphibians were confirmed on the mine site during the field survey, none of which are threatened. Eighteen reptile species were recorded in the field survey and a further 39 species probably occur in the region. One problematic species (Variable skink, Trachylepis varia complex) was collected and may represent a novelty that requires further study. Seventy-three bird species were recorded on the concession, including most of the common resident species. Many species occurring in the region are, however, absent from the Kalukundi concession due to high levels of disturbance. Over 200 mammal species occur in southern Katanga, but most large mammals are absent on the concession due to hunting. A very large proportion of the mammals that do occur on the site are insectivores, particularly bats. Ten species of fish belonging to seven families have been found in four sampling sites within the concession area. These include an unknown snoutfish (Hippopotamyrus spp.) and an unknown earfish (Keneria spp.). These are of particular importance in terms of conservation, as both species are considered to be un-described and in need of further investigation. Social and economic environment The closest major town to the concession area is Kolwezi. This is a well- established mining town, with considerable existing infrastructure including a railway, power supply, and a small airport with international status. Kolwezi town has an estimated population of 418,000 people. The two closest permanent settlements to the project area are Kisanfu and Kisankala villages. Kisankala village is within the concession area while Kisanfu is 2.5 km south of the concession area boundary. Conditions within these villages are poor, with most structures being temporary structures erected by highly mobile artisanal miners. The artisanal miners‟ population makes up 75% of Kisankala Village, which is far greater than that of „original‟ inhabitants. There is very little educational infrastructure in and around the Kalukundi Concession. There are only three primary schools within the immediate area, including one in Kisankala village. Health services in the area around the proposed Kalukundi mine are poor. Clinics provide very basic services. Although there are six “clinics” in Kisankala village, none of these are run by trained personnel. The nearest formal clinic is in Kisanfu. Prior to the establishment of boreholes and taps by ARL, Kisankala village had no formal water supply and was dependent on water from springs. There is no electricity supply in the area, although high-tension lines cross the southern part
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