Environmental Assessment Report
Summary Environmental Impact Assessment Project Number: 39932-01 December 2006
Indonesia: Reconstruction of Cement Production Facility in Aceh Project
Prepared by PT Semen Andalas Indonesia for the Asian Development Bank (ADB).
The summary environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.
CURRENCY EQUIVALENTS (as of 6 October 2006)
Currency Unit – rupiah (Rp) Rp1.00 = $0.000109 $1.00 = Rp9,212.5
ABBREVIATIONS AND INDONESIAN TERMS
ADB – Asian Development Bank AMDAL – analisis mengenai dampak lingkungan (environmental impact assessment process) ANDAL – analisis dampak lingkungan (environmental impact study report) BOD – biochemical oxygen demand CO – carbon monoxide CO2 – carbon dioxide COD – chemical oxygen demand EMP – environmental management plan EPC – engineering, procurement, and construction HSE – health, safety, and environment kabupaten – regency kecamatan – district kelurahan – subdistrict NOx – nitrogen oxides RKL – rencana pengelolaan lingkungan (environmental management plan) RPL – rencana pemantauan lingkungan (environmental monitoring plan) SAI – PT Semen Andalas Indonesia SEIA – summary environmental impact assessment SO2 – sulfur dioxide TSP – total suspended particulates
WEIGHTS AND MEASURES
µg – microgram ˚C – degree Celsius dBA – decibel adjusted ha – hectare Kcal – kilocalories km – kilometer l – liter m – meter m2 – square meter m3 – cubic meter mg – milligram mm – millimeter MMTPA – million metric tons per annum MW – megawatt Nm3 – normal cubic meter pH – measure of acidity and/or alkalinity t – metric ton
GLOSSARY ambient – Referring to existing or predominant conditions. biochemical oxygen – The amount of dissolved oxygen that microorganisms demand need to decompose soluble organic matters in wastewater. cement – A powdery product made from limestone and small amounts of other raw materials, heated to form clinker, which is then ground to a powder with small amounts of gypsum and other additives. chemical oxygen demand – The amount of oxygen needed to oxidize organic matter in wastewater under acidic conditions. circulating fluidized bed – A clean coal technology process that produces a combustion mixture of coal and limestone in a liquid state by vertically moving air. The process effectively removes sulfur and nitrogen from coal, thus reducing sulfur dioxide and nitrogen oxide from coal-burning emissions. clinker – A hard substance produced in cement kilns, which is ground with gypsum and other additives to make cement. greenhouse gas – Any gas that contributes to the “greenhouse effect,” which is implicated in global warming. The major ones are carbon dioxide, methane, and sulfur dioxide. gypsum – A naturally occurring mineral, hydrated calcium sulfate. Hardgrove Grindability – An index of how easily a coal can be pulverized for Index (HGI) use in power plants. A low HGI (< 50) is considered hard to pulverize. limestone – A naturally occurring rock, primarily composed of calcium carbonate, often containing trace amounts of other minerals. nitrogen oxide (NOx) – Oxides of nitrogen, the sum of nitric oxide (NO) plus nitrogen dioxide (NO2). Although other oxides of nitrogen occur, such as nitrous oxide (N2O), they are normally excluded from the definition of NOx. shale – Shale is a fine-grained sedimentary rock whose original constituents were clay or mud. siltstone – Siltstone is a geological term for a sedimentary rock whose composition is intermediate in grain size between the coarser sandstone and the finer mudstone. It contains mostly oxides of silicon, aluminum, iron, potassium, and calcium.
NOTE
(i) In this report, "$" refers to US dollars.
CONTENTS
Page
MAPS I. INTRODUCTION 1 II. PROJECT DESCRIPTION 2 A. Need for the Project 2 B. Project Scope 2 C. Resources Requirement 3 D. Implementation Arrangements 4 III. DESCRIPTION OF THE ENVIRONMENT 4 B. Project Area 5 C. Physical Environment 5 D. Biological Environment 9 E. Socioeconomic Environment 10 G. Sociocultural Environment 10 IV. ALTERNATIVES 10 A. Project Alternatives 10 B. Alternative Water Sources 10 C. Alternatives for Power Generation 11 D. Alternatives for Fuels 11 E. Alternatives for Process Technology and Major Equipment 11 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 12 A. Environmental Standards and Guidelines 12 B. Environmental Impacts During Construction 12 C. Environmental Impacts During Operations 14 D. Health and Safety Aspects 20 E. Land Resettlement 21 F. Compatibility of the Project with Other Development Projects in the Area 21 G. Induced Development 21 H. Decommissioning 22 VI. ECONOMIC ASSESSMENT 22 VII. ENVIRONMENTAL MANAGEMENT PLAN 23 A. Mitigation Measures 23 B. Environmental Monitoring 23 C. Environmental Policy 23 D. Emergency Response Plan 23 E. Implementation of the RKL and RPL 24 VIII. PUBLIC CONSULTATION AND DISCLOSURE 24 A. Public Consultation 24 B. Enhancement of Public Communication 26 IX. CONCLUSIONS 27
Appendixes 1. Cement Production Process 28 2. Project Implementation Schedule 32 3. Project Implementation Team Organization 33 4. Operation and Maintenance Organization Chart 34 5. Calculation of SO2 Emission 35 6. Summary of Environmental Management Plan During Construction 36 7. Summary of Environmental Management Plan During Operations 37 8. Summary of Environmental Monitoring Plan 38 9. Lafarge Group Environmental Policy 39
Map 1
o 98 o 00'E 104 00'E MYANMAR INDONESIA RECONSTRUCTION OF CEMENT PRODUCTION FACILITY IN ACEH A n d a m a n S e a THAILAND
o o 8 00'N N 8 00'N
0 50 100 150 200 250
Kilometers
Kuan PROJECT SITE Langkawi Island Banda Aceh Pinang Island Lhokseumawe Lhoknga S t r S o u t h C h i n a S e a a i t s
NANGGROE ACEH o f MALAYSIA DARUSSALAM M Belawan a l Medan a c c a KUALA LUMPUR
Simeulue Island NORTH SUMATRA Dumai SINGAPORE
Batam Nias Island Tanjung Pinang Pekanbaru RIAU ISLANDS
o 0o R I A U 0
Padang WEST I N D O N E S I A Siberut Island SUMATRA Jambi J A M B I Pangkal Pinang BANGKA-BELITUNG S U M A T R A Palembang SOUTH SUMATRA National Capital Pagai Islands Provincial Capital City/Town Bengkulu o o 4 00'S 4 00'S PT Semen Andalas Indonesia Terminal BENGKULU PT Semen Andalas Indonesia Cement Plant Lafarge Malayan Cement Berhad Terminal LAMPUNG J a v a Lafarge Malayan Cement Berhad Cement Plant S e a National Road Bandar Lampung Provincial Boundary International Boundary Boundaries are not necessarily authoritative.
I N D I A N O C E A N
o 98 00'E 104 o 00'E
06-3740a HR t o
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INDONESIA 2 RECONSTRUCTION OF N CEMENT PRODUCTION FACILITY IN ACEH LHOKNGA CEMENT PLANT
to Quarry 1
Power Plant
Limestone Crusher
e c Siltstone Crusher n e h F
J ce e A Main Substation t da t y an B N to
o
. Siltstone 1 Preblending Power Station for Composer Bed Cement Grinding Room Jetty No. 2 Pre-grinding for Clinker Raw Materials Mixing Pre-heater and Calciner Limestone Customer Preblending Office Cement Silo Bed Packing Plant
Main Office Kiln h Mechanical bo Weigh Bridge la eu Shop Existing M to Clinker Silo New Water Ware House Clinker Pool Silo Water Pump 0 6 M - 3 7 a 4 0 p b
H
2 R
I. INTRODUCTION
1. The tsunami that struck Banda Aceh in North Sumatra, Indonesia, on 26 December 2004 extensively damaged the cement plant of PT Semen Andalas Indonesia (SAI)1 in Mon Ikeun Village, Kacematan Lhoknga, Kabupaten Aceh Besar, Nanggroe Aceh Darussalam Province, about 17 kilometers (km) from Banda Aceh City (Map 1). SAI has ceased cement production, instead importing cement from a Lafarge-affiliated producer in Malaysia to maintain its market share, which was about 31% in its target markets in North Sumatra before the tsunami. After assessing prospective cement demand in the region, as well as the damage to its production facilities, SAI formulated a project to rehabilitate its cement plant and support facilities (the Project), and to increase production capacity to 1.6 million metric tons per annum (MMTPA) from the old plant’s 1.4 MMTPA. The rehabilitated cement plant will have more modern production and environmental control facilities. To implement the Project, SAI approached the Asian Development Bank (ADB), Deutsche Investitions- und Entwicklungsgesellschaft mbH, Nederlandse Financierings Maatschappij voor Ontwikkelingslanden N.V., and Société de Promotion et de Participation pour la Coopération Economique about providing financial support.
2. To obtain environmental clearance for the Project from the Government of Indonesia and the provincial government, SAI engaged a team of consultants2 to conduct an environmental impact assessment (EIA) from March to June 2006. The EIA followed the requirements stipulated in the relevant national and provincial laws and regulations regarding the analisis mengenai dampak lingkungan (AMDAL) (environmental impact assessment process). In particular, the EIA was in accordance with the regulations promulgated by the state minister of environment, No. 308 of 2005, on environmental impact assessment for rehabilitation and reconstruction of Aceh after the earthquake and tsunami. Based on the AMDAL documents, the Ministry of Environment granted the Project environmental and social clearance on 16 August 2006.
3. This summary environmental impact assessment (SEIA) of the Project has been prepared for use by ADB in its internal review of environmental aspects of the Project.3 The SEIA captures essential information presented in the three AMDAL documents: (i) the analisis dampak lingkungan (ANDAL) (environmental impact study report), (ii) the rencana pengelolaan lingkungan (RKL) (environmental management plan), and (iii) the rencana pemantauan lingkungan (RPL) (environmental monitoring plan). It also incorporates the latest developments on project implementation and some additional analyses. The SEIA follows the structure outlined in ADB’s Environmental Assessment Guidelines (2003).4 However, the SEIA also updates information on project implementation, rectifies the results of air pollutant predictions in the ANDAL, and provides the following additional information requested by ADB: (i) calculation of the amount of carbon dioxide (CO2), (ii) marine biological resources, (iii) environmental impact assessment of the captive power plant, (iv) economic assessment, and (v) assessment of the Project’s complementarities with other development projects in the project area.
1 SAI is a subsidiary of the Lafarge Group, a world-leading producer of construction materials based in France with affiliated companies in several countries. 2 CV. Cipta Puga 3 ADB classified the Project for its environmental review as category A, i.e., a project with significant impacts if not adequately mitigated. 4 ADB. 2003. Environmental Assessment Guidelines. Manila.
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II. PROJECT DESCRIPTION
A. Need for the Project
4. Based on a detailed study conducted by SAI, the Project is justified on the following grounds:
(i) Producing cement in Aceh will be more economical than importing cement from Malaysia due to high transportation cost relative to the cement cost. (ii) Rehabilitation of the damaged facilities would be more cost-effective than constructing a new plant. While the project cost is estimated at $159 million, the cost of a new cement plant would be $190 million–$200 million. The savings of about $30 million–$40 million would be realized through repair and rehabilitation of some of the damaged equipment and structures of the existing complex.
B. Project Scope
5. The Project will reconstruct the damaged cement production and support facilities to create a modern and integrated cement production complex with an annual production capacity of 1.6 MMTPA, or an average daily production of about 4,650 metric tons (t). The environmental performance of the reconstructed plant will be better than the old plant.
6. The project scope of physical development does not include the rehabilitation of the coastal road in front of the complex, as it is a public road that is being upgraded with assistance from US Agency for International Development. The scope of physical development is outlined in paras. 7-10.
1. Quarries
7. Before it ceased production, SAI operated its own quarries for limestone, and siltstone and shale. The limestone quarry covers 79.9 hectares (ha) adjoining the cement plant. The siltstone and shale quarry covers about 63.3 ha, about 3 km from the cement plant. The limestone quarry site has proven reserves of 41.5 million t, which is adequate for 32 years of production. The shale quarry site has proven reserves of 10.3 million t (130 years production), while the siltstone quarry site has 13.9 million t (43 years production). SAI will acquire the land use rights for an additional 50 ha of the limestone quarry to improve efficiency and safety of quarrying operations, and to enhance the limestone reserves by 31.4 million t (24 years of production).
2. Cement Plant
8. The Project will rehabilitate and modernize the damaged cement plant. The reconstruction works will entail refurbishing existing facilities and equipment, and installing the following new equipment and facilities:
(i) conveyor systems within the cement plant, (ii) limestone crusher plant, (iii) raw mill system, (iv) preheater and horizontal rotary kiln,
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(v) packing plant,5 (vi) bag filters to replace the electrostatic precipitator and gravel bed filters, (vii) grate cooler, (viii) electrical system, and (ix) instrumentation and control system.
3. Power Generation Plant
9. The Project will construct a new 32-megawatt (MW) coal-fired power plant to replace the damaged 31 MW power plant using diesel generators. Circulating fluidized bed technology, a clean coal technology that is being widely used, will be adopted.
4. Port
10. SAI has an exclusive port for its own shipping needs. The port covers 1.17 ha and has two jetties. The main jetty has a 200-meter (m) berth capable of handling ships up to 10,000 dead weight tons. The water depth at the port is about 14 m. SAI has rehabilitated the main jetty. The reconstruction of the other jetty will be covered under the Project. No dredging will be required during construction or operation.
C. Resources Requirement
11. Table 1 summarizes the important information on the materials required for the operation of the cement plant.
Table 1: Material Requirements for Cement Production Material Quantity Source (MMTPA) Limestone 1,430,000 Own quarry Siltstone 372,000 Own quarry Shale 118,000 Own quarry Pozzolan 280,000 Supplier, Krueng Raya (Raya River) Iron sand 21,000 Supplier, Lamteuba Gypsum 64,000 Supplier, Thailand Coal 378,538 Supplier, Sumatra and Kalimantan Explosive 250 Supplier, Tasikmalaya Diesel oil 8,000 Supplier, Sigil MMTPA = million metric tons per annum. Note: Coal consumption for kiln 196,320 tons per year and power station 182,218 tons per year. Source: PT Semen Andalas Indonesia.
12. The cement plant also requires about 1,200 cubic meters (m3) per day of water for domestic and process consumption. The raw water will be pumped from Kreung Sarah (Sarah River) in Kecamatan Leupung, about 10 km from the cement plant, and will be conveyed through a 6-inch pipe buried about 0.8 m below ground on the existing route. This raw water and pipeline route will be the same as those used in the past.6 Appendix 1 presents a simplified mass balance diagram of the cement production, including the power plant.
5 The construction of the packing plant and a conveyor system from the port to the plant in Lhoknga is nearly completed and not included in the Project. 6 SAI obtained a permit from the local authority to lay the water pipe.
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D. Implementation Arrangements
1. Schedule
13. The rehabilitation of the main jetty, which SAI began in May 2005, was completed in August 2006. The construction of the packing plant in Lhoknga is nearly completed. The remaining rehabilitation works to be carried out under the Project have begun, and will take about 22 months to complete. Commercial operation is scheduled in October 2008. A tentative project implementation schedule is in Appendix 2.
2. Contracts
14. The Project will be implemented through three major contracts. SAI has completed the international competitive bidding of the contracts with the assistance of Holtec, an Indian engineering company. The scope of each contract is outlined as follows:
(i) Supply and installation of new equipment, and repair of existing equipment for the cement plant if it is more economical. SAI selected Hefei Cement Research and Design Institute as the supplier. The contract was signed in October 2006. (ii) Supply and installation of the power plant. The engineering, procurement, and construction (EPC) contract has been awarded to China Huadian Engineering Company for the duration of about 20 months. The contract was signed in September 2006. (iii) Construction of buildings and civil works structures, and removal of damaged equipment. The civil works contract is expected to be awarded by December 2006.
3. Project Management
15. SAI will have overall responsibility for project management, with technical assistance from Lafarge’s Asian Technical Center in Kuala Lumpur, Malaysia. Lafarge will be responsible for planning, engineering, scheduling, and construction supervision in collaboration with the project team of SAI. The organization of the project implementation team is in Appendix 3.
4. Operations
16. After completion of the project facilities, SAI will be responsible for operating them. The operation of the new cement plant will require about 300 staff, including 24 managerial personnel, 46 engineers and technical specialists, 157 operators, and 73 workers. Training will be provided as appropriate to update the staff on the technologies adopted in the new production plant. The organizational structure is in Appendix 4. Operation and maintenance of the captive power plant might be contracted out.
III. DESCRIPTION OF THE ENVIRONMENT
A. Data Collection
17. Information and data used in establishing the baseline environmental conditions were obtained from secondary and primary sources. The data on physical characteristics and biological resources of the project area were collected from various secondary sources. The data on air and water quality were collected from primary sources during the EIA. For ambient
5 air quality, air samples were collected and analyzed using the equipment and methods shown in Table 2.
Table 2: Method and Equipment Used in Collection of Data on Ambient Air Quality
No. Parameter Analysis Method Equipment 1 Noise On-Site Measuring Sound Level Meter 2 Dust Gravimetri High Volume Sampler 3 Sulfur Dioxide Pararosanilin Air Pollutant Sampler 4 Nitrogen Oxide Saltzman Air Pollutant Sampler 5 Carbon Monoxide Direct Reading Dradger Apparatus Source: CV. Cipta Puga
B. Project Area
18. The project area is about 172 ha, comprising the port (1.2 ha), limestone quarry (79.9 ha), siltstone and shale quarry (63.3 ha), cement plant site (17.0 ha), and housing area (10.6 ha).7 The cement plant site is in Mon Ikeun Village between the coastal road and the limestone quarry, a distance of about 900 m. The port is on the other side of the coastal road, opposite the cement plant. The limestone quarry is in Wue Raya Village adjacent to the cement plant. The siltstone and shale quarry site is in Naga Umbang Village, about 3 km from the cement plant.
19. The cement plant site is on the coastal road from Banda Aceh to Meulaboh. The shoreline in front of the cement plant site is rocky and blocked by a hill. The port is built on this rocky coast besides the hill. The adjacent beach is still undeveloped as a tourist area, although some local people occasionally use the beach for recreation. Several houses, which were built after the tsunami, are scattered in the area contiguous to the cement plant.
C. Physical Environment
1. Land Use
20. The project site is within the administrative area of Kecamatan Lhoknga. Based on the latest available information (2003), the land is mixed-use with no known protected ecological or cultural sites. Of the total area of 9,893 ha, agricultural use accounted for about 56.5% (5,586 ha), human settlements about 2.54%, (252 ha), and others 41% (4,055 ha). With a population of 20,444 in 2004, the area had a gross population density of about 89 persons per square kilometer (km2). The population declined significantly after the tsunami.
2. Seismic Activities
21. Aceh Province is seismically active. In the past 170 years, seven major earthquakes have been recorded north and west of Aceh, and have triggered tsunamis.
3. Water Resources and Water Quality
22. The project area has only one main river, Krueng Raba. The river is short with weak flows, and water is brackish due to seawater intrusion. Consequently, SAI has to take water
7 The housing area was part of the project area, but was destroyed by the tsunami. SAI does not plan to construct new housing facilities in the project area.
6 from Krueng Sarah in Kecamatan Leupung, the same water source used by the old cement plant.
23. During the EIA, water samples were taken from Krueng Sarah, Krueng Raba, coastal waters near the port, and about 100 m from the coastal road. Samples also were taken from the groundwater well within the cement plant site. The following conclusions can be drawn from the water quality data (Table 3):
(i) Krueng Sarah is still relatively clean, as indicated by its high dissolved oxygen and low biochemical oxygen demand (BOD58) values, and the absence of toxic pollutants. (ii) Krueng Raba is relatively polluted, as indicated by its high BOD5 and chemical oxygen demand (COD) value. Its conductivity is also high due to seawater intrusion. The water is not suitable for drinking and industrial use. (iii) Groundwater within the plant site and in the village is relatively clean. (iv) Seawater is still relatively clean, as indicated by its high dissolved oxygen and low BOD5 levels.
Table 3: Water Quality in the Project Area Krueng Krueng Lhoknga Parameter Unit Sarah Raba Groundwater Seawater Well Water Turbidity NTU 6 12 32 2 10 Suspended mg/l 10.0 23.0 2.3 4.0 6.8 Solids Temperature ˚C 28 29 28 29 29 Color Pt Co 5 12 4 10 4 standard Ph 7.8 8.0 7.7 8.1 7.6 Conductivity micro mhos 430 1,900 800 13,500 700 per cm Dissolved mg/l 6.0 4.8 3.5 5.9 3.5 Oxygen BOD5 mg/l 5.0 20 4.0 8.6 9.8 COD mg/l 11.2 31.6 16 22 20 Ammonia-N mg/l ND 0.05 0.5 0.02 0.02 Nitrite-N mg/l 0.02 0.05 0.05 0.01 0.01 Chloride mg/l 20 460 40 1,200 200 Sulfide mg/l ND ND 0.1 ND ND Oil and Grease mg/l ND ND ND ND ND Detergent mg/l ND ND ND ND ND Iron mg/l 0.1 0.1 0.2 0.1 0.1 Manganese mg/l ND ND 0.1 ND 0.05 Silver mg/l ND ND ND ND ND Copper mg/l ND 0.1 0.5 ND 0.05 Cadmium mg/l ND ND ND ND ND Chromium mg/l ND ND 0.1 ND ND Arsenic mg/l ND ND ND ND ND Zinc mg/l ND 0.8 ND 0.01 0.5 Lead mg/l ND ND ND ND ND Nickel mg/l ND ND ND ND ND BOD5 = biochemical oxygen demand, ˚C = degree Celsius, COD = chemical oxygen demand, micro mhos per cm = units of conductivity, mg/l = milligram per liter, N = nitrogen, ND = not detectable, NTU = nephelometric turbidity unit, pH = measure of acidity, Pt Co standard = platinum cobalt standard (units of color). Source: PT Semen Andalas Indonesia.
8 The amount of biological oxygen demand (dissolved oxygen consumed by microorganisms in water) measured at 20 degree Celsius over a period of 5 days.
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4. Climate
24. The project area has distinct rainy and dry seasons. Based on the climate data from 1995 to 2004, collected at a weather station in the project area, the conditions can be summarized as follows:
(i) Ambient air temperature is fairly uniform throughout the year, varying from 20 and 31 degrees Celsius (°C). (ii) The rainy season covers 6 months from October to March. The 10-year average annual rainfall was about 1,500 millimeters (mm), ranging from 1,084 to 1,907 mm. (iii) The air is humid, with relative humidity varying from 75% to 94%. (iv) Wind directions and speeds are as follows: (a) The west-to-east direction is dominant at 47.5% occurrence (i.e., from the sea to the hill at the back of the cement plant), with wind speeds of 7–16 knots (3.61–8.23 m per second); (b) The north-to-south direction occurs about 22% (i.e., from the cement plant to Leupung village, about 10 km away), with wind speeds of 7–13 knots. (c) The east-to-west direction occurs about 5% (i.e., from the plant to the sea), with wind speeds of 8–13 knots. (d) The south-to-north direction occurs about 9.2% (i.e., from Lhoknga village, 5 km north of plant, to the plant), with wind speeds of 7–17 knots.
25. The wind data indicate that the two villages would not be affected by gaseous emissions from the cement plant due to the significant distance and the wind directions.
5. Air Quality
26. Ambient air quality was measured during the EIA at five locations: (i) on the side of the coastal road, about 400 m in front of the cement plant; (ii) an area about 500 m north of the cement plant; (iii) Naga Umbang Village, about 4 km from the cement plant; (iv) Lhoknga school, about 1.5 km from the cement plant; and (v) a location in Banda Aceh city, about 17 km from the cement plant. Air samples were collected continually over 24 hours. The air quality parameters measured were nitrogen oxides (NOx), sulfur dioxide (SO2), carbon monoxide (CO), and total suspended particles. Table 4 presents the results of air quality measures. Based on the national air quality standards and World Bank’s Guidelines, ambient air at the five sampling stations was relatively clean. The Banda Aceh station had a relatively higher level of CO as the area had more traffic.
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Table 4: Ambient Air Quality (µg/m3) Parameter Station Station Station Station Station National World Bank (i) (ii) (iii) (iv) (v) Standarda Guidelinesb 24 Hours SO2 20 10 10 10 20 356 150 NOx 25 ND ND ND 35 150 150 CO 100 40 40 20 1,371 10,000 ─ TSP 90 60 30 40 147 230 230 3 ─ = not available, µg/m = microgram per cubic meter, CO = carbon monoxide, ND = not detectable, NOx = nitrogen oxide, SO2 = sulfur dioxide, TSP = total suspended particulates. a National standards are 24-hour standards, as stipulated in Government Publication No. 41 of 1999. b World Bank’s guidelines are from World Bank. 1998. Pollution Prevention and Abatement Handbook. Washington, DC. Source: PT Semen Andalas Indonesia.
6. Noise
27. Noise levels also were measured during the EIA at the same five locations selected for the air quality measurements. The measurement at each station was done in one day at 8 a.m., 1 p.m., 3 p.m., and 7 p.m. During each measurement, the noise level was read five times at 10- minute intervals. The readings then were averaged to give the representative noise level of that measurement. Table 5 presents the results of the noise measurements. The figures indicated that the noise levels at the first four stations were acceptable when compared with the 24-hour national standards of 70 decibel adjusted (dBA) for an industrial area and 55 dBA for residential areas. The noise levels at the Banda Aceh station mostly did not meet the national standards due to heavy traffic and other urban noise-generating activities.
Table 5: Results of Noise Measurements (dBA)
Measurement Station (i) Station (ii) Station (iii) Station (iv) Station (v) 1 62 54 49 55 56 2 78 56 54 43 78 3 70 53 55 50 84 4 65 57 50 57 60 5 75 56 54 45 80 Average 70 55 52 50 72 dBA = decibel adjusted. Source: PT Semen Andalas Indonesia.
7. Sea Characteristics
28. Physical characteristics of the coastal waters where the SAI port is located can be summarized as follows:
(i) Average water depth at the SAI port: about 9 m. (ii) Tidal type: mixed tides, semidiurnal type predominant, influenced by tidal conditions in the Strait of Malacca. (iii) Tidal range: maximum 0.40 m. (iv) Wave height: average 1.26 m.
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(v) Sedimentation and erosion patterns in the vicinity of the SAI port: Similar during high tide and low tide, with small differences in the magnitude of sedimentation and erosion. These patterns suggest that the sedimentation transport in the vicinity of the port tends to be related to long-term erosion due to the small magnitude of erosion process. (vi) Fishing activities in the vicinity of the port: none.
8. Marine Aquatic Resources
29. The project site is on the coastal stretch from Lhoknga to Ujung Ritieng. Limited information on marine aquatic resources in this part of the coastal waters is available in the Aceh Nearshore Atlas and Draft Zonation Plan, which the Government’s Department of Fisheries and Small Islands prepared in March 2006. The salient findings from this document and discussions with an expert, who conducted environmental studies in the project area, are: (i) The coastline is white sandy beach fronted by nearshore fringing reefs. The reefs are essentially devoid of any conspicuous macro benthos, and live coral cover was 0.5%. The substratum is made up of boulders, sand, pavement, and rubble. (ii) Coarse sands with some hard substratum, such as pavement and rubble, dominate the seabed habitats that are mapped along the coast out to 3 km offshore. (iii) Fish populations in the area are not well known.9 However, given the poor ecological condition of the seabed and the lack of commercial subsistence fishing, aquatic diversity is probably very low with no rare or endangered species.
9. Characteristics of the Quarry Sites
a. Limestone Quarry
30. The limestone quarry covers 79.9 ha, about 500 m behind the cement plant. The quarry area is dominated by a 240 m hill, which has some small caves that are not inhabited by any bats or birds. The limestone formation, which is massive and solid, is covered with a thin layer of soil. The extraction of limestone is limited to about 20 m above mean sea level.
31. The limestone formation under the quarry area does not serve as an aquifer recharge due to its compactness. No water seepage has been observed from the hill during the rainy season.
b. Siltstone and Shale Quarry
32. The siltstone and shale quarry covers 63.3 ha, and is about 3 km from cement plant. The area is uninhabited. The quarrying operation will be limited to 5 m above mean sea level.
D. Biological Environment
33. The project area has no known endangered flora and fauna species. During the EIA, flora and fauna surveys were carried out in (i) areas in front of the cement plant, (ii) areas around office and houses, (iii) limestone quarry, (iv) siltstone quarry, and (v) some villages.
9 According to the Aceh Nearshore Atlas, fish density in the general area of the Project is 2,420 individuals per ha (about 14.56 kg per ha). Snappers are expected to be common (700 individuals per ha), with butterfly fish at 40 individuals per ha.
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Flora and fauna species found are common to the region. Flora species found included those agricultural plants and naturally grown species, e.g., Eugenia aromatica, Cocos nucifera, and Areca catechu. Fauna species found include small common mammals, reptiles, and amphibians. The largest mammals are wild boars and monkeys. Examples of dominant fauna species are Canis familiaris (dog), Bos taurus (cow), Macaca fascicularis (monkey), Capra hircus (goat), Felis catus (cat), Collocalia sp (punai bird), Callosciurus notatus (squirrel), Anas sp (goose), Gallus gallus (red junglefowl), and Ardeola speciosa (Javan pond heron).
E. Socioeconomic Environment
34. In early 2004, Kecamatan Lhoknga had a population of 20,444. After the tsunami in December 2004, the population declined to 13,577. Of the decreased population, the majority of whom were victims of the tsunami. The others presumably moved out after the disaster.
35. Most of the working age people have a low level of education, with only 0.8% receiving a secondary education or higher.
36. The economy of Lhoknga is based on agriculture and fishery, which provides a livelihood for nearly three quarters (73%) of the population. SAI is the only major industry in the area, employing about 400 people before the tsunami. Data on average household income was not available. A rough estimate, based on local knowledge, places the average household income at about Rp1.5 million per month.
G. Sociocultural Environment
37. No indigenous people live in the project area. Ethnically, almost all local people are Acehnese. The project area does not have any sites of cultural or historic value.
IV. ALTERNATIVES
A. Project Alternatives
38. In the “without Project” scenario, SAI would continue to import cement from Malaysia to meet the demand in Banda Aceh and other places in North Sumatra. The cost of imported cement would be higher than the locally produced cement under the Project. In addition, transportation cost of locally produced cement would be lower, thereby resulting in lower reconstruction costs of infrastructure. The Project, therefore, is justified by its contribution to the balance of cement supply and demand in the region.
39. The two project alternatives were considered: (i) construction of new production facilities at a new site, and (ii) construction of new production facilities at the existing site. The first alternative was ruled out due to the time required to find an appropriate new site and the costs. The second alternative also was ruled out, as it would be more expensive than the rehabilitation of the existing facilities. The Project, as designed, was found to be the most cost-effective alternative.
B. Alternative Water Sources
40. Krueng Sarah is the only alternative source of freshwater for the Project. The project site and the nearby areas have no reliable groundwater sources. The Project will continue to take water from Krueng Sarah. The river discharge during the low flow season is estimated at more
11 than 30 m3 per second, or about 2,592,000 m3 per day. The Project will abstract only 1,200 m3 per day, an insignificant portion of the total discharge. Therefore, the Project will not compete with water use for agriculture.
C. Alternatives for Power Generation
41. The damaged 31 MW power plant used five diesel generator sets that consumed about 90 tons of diesel oil per day. The diesel oil was stored in three tanks, each with a capacity of 1,000 m3.
42. The Project opts for a coal-fired power plant using circulating fluidized bed technology. This clean coal technology is more economical, and emits less air pollutants than diesel power plants and conventional coal-fired power plants. Using a coal-fired power plant also will eliminate the need for diesel oil storage, thus reducing the risk of an oil spill.
D. Alternatives for Fuels
43. Cement production is energy intensive, and the production cost is sensitive to energy cost. Coal, which was used in the old cement plant, will continue to be used in the Project as natural gas is not available in the project area. The Project will use low-sufur coal from Sumatra. Table 6 presents typical characteristics of coal to be used in the Project.
Table 6: Characteristics of Coal to Be Used in the Project
Property Value Moisture as received, % 20.38 Moisture on dried basis, % 10.82 Ash as received, % 10.14 Volatile matter as dried free of ash basis, % 28.79 Low heating value, kilocalories per kg 5,500–5,804 Carbon, % 50.07 Hydrogen, % 4.35 Oxygen, % 11.15 Nitrogen, % 1.02 Sulfur, % 0.49 Size (0–50 mm) 90.16 Hardgrove Grindability Index 49 kg = kilogram, mm = millimeter. Source: PT Semen Andalas Indonesia.
E. Alternatives for Process Technology and Major Equipment
44. The Project will continue to use the dry process with preheaters and pre-calciners, as this is the most economical process for large-scale production of cement due to its high energy efficiency.
45. However, the Project has insufficient space to replace the existing ball mill with a vertical clinker mill, which is more energy efficient. In addition, the foundation limits the Project to use of a four-stage cyclone preheating system instead of the more efficient five-stage cyclone
12 preheating system. Because a five-stage cyclone preheating system is taller, it might not be able to withstand lateral ground movements during a major earthquake.
V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES
A. Environmental Standards and Guidelines
46. The major pollution issue of the cement industry is air pollution. The EIA assessed environmental impacts of the Project, and prescribed appropriate mitigation measures to ensure that its environmental performance will meet the national and international standards and guidelines for the cement industry. The applicable standards and guidelines for air pollution control are presented in Tables 7 and 8.
Table 7: Emission Standards (mg/Nm3) Cement Industry Power Plant Pollutant National World Bank National World Banka
NOx 1,000 600 850 850 SO2 800 400 750 2000 Particulate 80 50 150 100 3 mg/Nm = milligram per normal cubic meter, NOx = nitrogen oxide, SO2 = sulfur dioxide. a The World Bank’s guidelines in Pollution Prevention and Abatement Handbook (1998) cover all fossil fuel-based thermal power plants with capacity of 50 megawatts (MW) or more. For plants smaller than 50 MW, particulate emissions may be as much as 100 mg/Nm3. If justified by the Executing Agency, particulate emissions up to 150 3 mg/Nm may be acceptable in special circumstances. The maximum emissions levels for NOx remain the same 3 as for plants larger than 50 MW, while the maximum emissions level for SO2 is 2000 mg/Nm . Sources: PT Semen Andalas Indonesia and World Bank. 1998. Pollution Prevention and Abatement Handbook. Washington, DC.
Table 8: Ambient Air Quality Standards (µg/m3) National World Bank Pollutant Averaging Period Standards Guidelines NOx 1 hour 400 ─ 24-hour average 150 150 1 year 100 100 SO2 1 hour 900 ─ 24-hour average 365 150 1 year 60 80 CO 1 hour 30,000 ─ 24-hour average 10,000 ─ Total Suspended 24-hour average 230 230 Solids 1 year 90 80 ─ = not available, µg/m3 = microgram per cubic meter, CO = carbon monoxide, NOx = nitrogen oxide, SO2 = sulfur dioxide. Source: PT Semen Andalas Indonesia.
B. Environmental Impacts During Construction
47. The Project will involve civil works construction and installation of process equipment. Construction will be confined within the cement plant proper and the quarry sites. Damaged
13 equipment and structure—almost all are steel or other metals—will be dismantled and removed to a storage site for eventual sale as scrap.
48. Environmental impacts during construction will be caused by gaseous emissions, as well as noise from heavy equipment used in the construction and trucks used in transport of materials and equipment. These impacts will be transient and insignificant due to small emission loads, and will be confined within the construction site.
1. Impact on Ambient Air Quality
49. The EIA predicted the impacts of gaseous emissions on ground-level air quality using the standard emission factors for heavy equipment,10 as well as the following data: (i) minimum wind speed of 2 m per second,11 (ii) dispersion at about 2 m above ground; and (iii) local wind directions as observed (para. 24). Based on the Gaussian model12 for the prediction, the use of heavy equipment would result in negligible incremental increases in various air pollutants in the ambient air quality compared with the national standards (Table 9).
Table 9: Predicted Emissions from Heavy Construction Equipment (µg/m3)
Parameter Distance, 200 m National Standard, 24-hour CO 0.67 10,000 NOx 0.51 150 SO2 0.53 365 Particulates 30.45 230 3 µg/m = microgram per cubic meter, CO = carbon monoxide, NOx = nitrogen oxide, SO2 = sulfur dioxide. Source: PT Semen Andalas Indonesia.
50. Water spraying and routine cleaning by road sweepers will control fugitive dust generated by construction. These basic practices will be prescribed in the construction contracts.
2. Noise
51. The noise intensities at various distances from the construction site were calculated, and the results are in Table 10. The sensitive area is the office building, which is about 100 m from the construction site. The results indicate that, if all heavy equipment is operating during construction, the noise level at the office would be about 86.6–93.0 dBA without noise attenuation and about 76.6–83.0 dBA with noise attenuation equipment. SAI will use noise measuring equipment to monitor the noise level. Noise reduction measures, such as noise absorption walls, will be installed if necessary to reduce noise levels inside the office building.
10 Rau, J.G., and D.C. Woolen. 1980. Environmental Impact Analysis. New York: McGraw Hill. 11 Minimum wind speed occasionally observed in Banda Aceh. 12 The Gaussian plume model is the most accepted computational approach to calculating the concentration of a pollutant at a certain point. This model describes the transport and mixing of the pollutants. It assumes dispersion in the horizontal and vertical direction will take the form of a normal Gaussian curve with the maximum concentration at the center of the plume.
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Table 10: Noise Intensities at Various Distances from the Construction Site
Distance (m) Without Attenuation (dBA) With Attenuation (dBA) 15 103.1–109.5 93.1–99.5 50 92.6–99.0 82.6–89.0 100 86.6–93.0 76.6–83.0 150 83.1–89.5 73.1–79.5 200 80.6–87.0 70.6–77.0 400 74.6–81.0 63.6–71.0 500 71.6–78.0 60.6–68.0 dBA = decibel adjusted, m = meter. Source: PT Semen Andalas Indonesia.
3. Other Issues
52. Construction will involve about 500 workers on average, about half of whom will be locally hired. The remaining will come from other areas, possibly with their families. The workers will find accommodations for themselves in nearby villages.
53. Construction will create debris, including damaged equipment that will have to be removed. Some debris could be sold as scrap. The contractors will need to propose appropriate methods of disposal of construction wastes. In addition, the contractors will be required to take care of treatment and disposal of wastes generated by construction workers, such as sewage and solid wastes. For 500 workers, the sewage volume would not be more than 25 m3 per day, assuming per capita water use of 50 liters per day. Solid wastes would not be more than 500 liters per day, assuming per capita solid waste volume of 1 liter per day. Sewage would be treated and disposed of using septic tanks. Municipal services will dispose of solid wastes.
C. Environmental Impacts During Operations
1. Quarrying Operations
a. Noise and Vibration from Blasting
54. In quarrying operations, limestone is extracted by blasting using explosives. SAI will change from electrical detonator to non-electrical detonator to minimize noise, vibration, and flying rocks. The blasting will be conducted daily at noon.
b. Noise from Vehicles and Heavy Equipment
55. The quarrying operations will use about 25 heavy vehicles and equipment (Table 11). As the quarries are remote from communities, and the vehicles and equipment will be scattered around the site, the noise level at the communities will be below the standards. However, quarry workers will have to use appropriate noise muffling equipment.
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Table 11: Heavy Equipment to Be Used in the Quarry No. Heavy Equipment Noise Intensity (dBA) Number 1 Hydraulic Shovel 84 1 2 Quarry Truck 82 9 3 Bulldozer 85 2 4 Road Grader 85 1 5 Rock Drill 86 3 6 Excavator 87 2 7 Service Truck 82 3 8 Front-End Loader 85 2 9 Supervisor Vehicles 63 2 Total 25 dBA = decibel adjusted. Source: PT Semen Andalas Indonesia.
c. Drainage and Soil Erosion
56. Storm runoff from the limestone quarry will drain into the sea via a natural drainage channel beside the cement plant. The siltstone quarry has a drainage system to divert the storm runoff into the sea via Krueng Raba. As the surface of the quarry sites is hard rock, soil erosion is not a problem.
2. Cement Plant Operations
57. The major environmental issue of the cement industry is air pollution caused by dust and gaseous emissions. NOx and SO2 are two major air pollutants. Pollutants such as CO, volatile organic compounds, polychlorinated dibenzodioxins and dibenzofurans, metals and their compounds, and hydrofluoric acid and hydrogen chloride are of much less concern and normally not a problem. Hence, the EIA focused on dust, NOx, and SO2.
a. Dust
58. The Project will control dust emissions from various unit operations by adopting preventive measures such as:
(i) appropriate process design, e.g., using the exhaust gas from the preheater as a drying medium in the raw mill, and using the hot gas from the grate cooler in the kiln and calciner; (ii) using low dust-generation equipment if possible; (iii) using enclosed material transport systems; (iv) using dust absorption hoods and air draft deducting devices; (v) adopting best management practices to minimize material dropping in the process; (vi) using closed circular silos for storing dusty materials; and (vii) installing water spraying devices in dust generating areas, such as roads and stockpiles of raw materials.
59. The Project will install 42 sets of bag filters as integral process equipment to remove dust in the exhaust gases before discharging into the atmosphere (Table 12). The emissions are expected to be lower than 30 milligrams per normal cubic meter (mg/Nm3), below the World Bank’s guidelines of less than 50 mg/Nm3.
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Table 12: Dust Control Equipment
Control Capacity Inlet Outlet Emission Source Equipment (m3/hr) (mg/Nm3) (mg/Nm3) Limestone Crusher Bag Filter 46,000 < 30 Shale Stone Crusher Bag Filter 22,000 < 30 Siltstone Crusher Bag Filter 22,000 < 30 Raw Meal Blending Silo Bag Filter 26,000 < 30 Kiln Feed system Bag Filter 33,000 < 30 Preheater Exhaust Bag Filter 520,000 < 80 mg/Nm3 < 30 Cooler Bag Bag Filter 480,000 < 30 Clinker Silo Bag Filter 13,390 < 30 Clinker Silo Discharge Bag Filter 18,000 < 30 Gypsum Storage Bag Filter 11,500 < 30 Pozzolan Storage Bag Filter 11,500 < 30 Pozzolan Dryer Bag Filter 57,000 < 30 Pozzolan Dryer storage Bag Filter 4500-6000 < 30 Coal Mill Bag Filter 114,000 < 30 Cement Mill Bag Filter 13,390 < 30 Cement Silo Bag Filter 8,030 < 30 Jetty Bag Filter 11,500 < 30 Cement packer Bag Filter 14,328 < 30 Power Plant Bag Filter 146,000 < 30 m3/hr = cubic meter per hour, mg/Nm3 = milligram per normal cubic meter. Source: PT Semen Andalas Indonesia.
60. The particulate concentrations in the ambient air at various distances from the cement plant were calculated using the minimum wind speed of 2 m per second (Table 13). This shows that the Project will not create a problem of particulates in the ambient air in the project area. The net ambient concentrations of particulates will meet the national standards and the World Bank’s guidelines of below 230 micrograms per cubic meter (µg/m3).
Table 13: Predicted Particulate Concentrations in Ambient Air (µg/m3) Predicted Incremental Increase in TSP Caused by the Operations Net Ambient Distance From the Baseline of the Cement Plant and Power Plant Concentrationsa Plant Ambient Wind Speed Wind Speed (kilometers) Concentrations (2 m/sec) (2 m/sec) 0.5b 90 8.28 98.28 0.5c 60 8.28 68.28 1.5 40 1.45d 41.45 5.0 30 0.13 30.13 µg/m3 = microgram per cubic meter, km = kilometer, m/sec = meter per second, TSP = total suspended particulates. a The 24-hour average national standard for TSP is 230 µg/m3 and the World Bank’s guideline is 230 µg/m3. b From first sampling point, which is the coastal road in front of the cement plant. c From second sampling point, which is an area north of cement plant. d Determined from the interpolation of the predicted incremental increase in TSP in case of 1 km and 2 km from the cement plant. Source: PT Semen Andalas Indonesia.
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b. NOx
61. NOx emitted from the kiln inlet is mainly produced by high temperature combustion inside the kiln. Emissions increase with the operating temperature, the amount of oxygen used in the combustion or the volume of air used in the combustion, and the reaction time.
62. The Project will have low NOx emission as the pre-calcining kiln will reduce fuel consumption. Moreover, 60% of the fuel used in the calciner will be burned below 1000°C—the temperature level above which NOx will be generated. The process is designed to keep NOx emissions below the Lafarge’s and national guideline of 800mg/Nm3. SAI estimates that the 3 emissions of NOx will be less than the World Bank’s guideline of 600mg/Nm . If the World Bank’s guideline is not met, an additional investment will be made in the pre-calciner to ensure that the NOx emissions will be below that guideline.
63. The NOx concentrations in the ambient air at various distances from the cement plant were calculated using wind speeds of 2 m per second and 5 m per second (Table 14). This shows that the Project will not create a problem of NOx in the ambient air in the project area. The NOx concentrations will meet the national standards and the World Bank’s guideline of below 150 µg/m3.
Table 14: Predicted NOx Concentrations (µg/m3) Predicted Incremental Increase in NOx Caused by the Operations of the Distance a From the Baseline Cement Plant and Power Plant Net Ambient Concentrations Plant Ambient Wind Speed Wind Speed Wind Speed Wind Speed (kilometers) Concentrations (2 m/sec) (5 m/sec) (2 m/sec) (5 m/sec) 0.5b 25 37 15 62 40 0.5c 0 37 15 37 15 1.5 0 127d 51d 127 51 5.0 0 48 19 48 19 3 µg/m = microgram per cubic meter, m/sec = meter per second, NOx = nitrogen oxide. a 3 3 The 24-hour average national standard for NOx is 150 µg/m and the World Bank’s guideline is 150 µg/m . b From first sampling point, which is the coastal road in front of the cement plant. c From second sampling point, which is an area north of cement plant. d Determined from the interpolation of the predicted incremental increase in NOx in case of 1 km and 2 km from the cement plant. Source: PT Semen Andalas Indonesia.
c. SO2
64. SO2 in cement production is generated in coal combustion, as coal used as fuel in the kiln contains sulfur. However, SO2 emissions are normally low as a large portion is absorbed by lime and forms calcium sulfate, which is discharged with clinker and kiln dust. In the circulating fluidized bed power plant, limestone is injected with coal dust to absorb SO2. Based on experience, as much as 95% of the SO2 generated can be absorbed, resulting in SO2 emissions 3 below the limit of 400 mg/Nm . The calculation of SO2 in Appendix 5.
65. The SO2 concentrations in the ambient air at various distances from the cement plant were calculated using the minimum wind speeds of 2 m per second and 5 m per second (Table
18
15). This shows that the Project will not create a problem of SO2 in the ambient air in the project 3 area. The SO2 concentrations will meet the World Bank’s guideline of below 150 µg/m and the national standard of below 365 µg/m3.
Table 15: Predicted SO2 Concentrations (µg/m3) Predicted Incremental Increase in SO2 Caused Distance by the Operations of the Net Ambient From the Baseline Cement Plant and Power Plant Concentrationsa Plant Ambient Wind Speed Wind Speed Wind Speed Wind Speed (kilometers) Concentrations (2 m/sec) (5 m/sec) (2 m/sec) (5 m/sec) 0.5b 20 9 4 29 24 0.5c 10 9 4 19 14 1.5 10 38d 15d 48 25 5.0 10 19 8 29 18 3 µg/m = microgram per cubic meter, m/sec = meter per second, SO2 = sulfur dioxide. a 3 3 The 24-hour average national standard for SO2 is 365 µg/m and the World Bank’s guideline is 150 µg/m . b From first sampling point, which is the coastal road in front of the cement plant. c From second sampling point, which is an area north of cement plant. d Determined from the interpolation of the predicted incremental increase in SO2 in case of 1 km and 2 km from the cement plant. Source: PT Semen Andalas Indonesia.
d. Carbon Dioxide
66. The combustion of coal and the calcination of raw materials, especially limestone, will generate CO2, one of the major greenhouse gases. Based on the carbon content of the coal and the raw materials, the amount of CO2 was calculated to be about 1.27 MMTPA for the production of 1.6 MMTPA of cement. The CO2 produced will be released to the atmosphere, because an economical CO2 capture technology is not commercially available.
e. Noise
67. A cement plant unavoidably generates noise, especially in grinding operations and blasting in quarrying operations. The Project will not have significant noise impacts on the communities, as the nearest community is about 3 km away. Plant operators will be provided with ear plugs to reduce the noise impacts. In addition, SAI will conduct routine maintenance of the engine muffler and grow plants in and around the project site.
f. Domestic Wastewater
68. The Project will employ about 300 people during operations. SAI does not intend to rehabilitate the staff housing area near the cement plant site, which was destroyed by the tsunami. SAI staff currently reside in Banda Aceh city with housing allowances provided by the company. The development of staff housing is not planned. The staff would generate wastewater estimated at not more than 30 m3 per day. Later, a canteen will be built, which would increase the wastewater volume to not more than 50 m3 per day. The wastewater will be treated using a septic tank and leaching field system. If staff housing is developed, it would be in a new area and SAI would construct a separate wastewater treatment facility in the staff
19 housing area to treat additional volume of wastewater, estimated at not more than 200 m3 per day.
g. Other Types of Wastewater
69. A closed-circuit cooling water system will be used in the cement production. However, a small volume of cooling water will need to be discharged from the system to maintain the solid content of the cooling water. This spent cooling water will be combined with water filter backwash from the water treatment plant and a small volume of wastewater from the power plant, including backwash water from the demineralization plant for boiler water treatment and boiler blowdown13. This wastewater has a high concentration of dissolved solids, which are not economical to treat. The combined wastewater will be discharged into the sea. As the sea is already high in dissolved solids and the wastewater volume is small, the wastewater is unlikely to change the seawater quality significantly.
3. Power Plant Operations
70. Under the Minister of Environment’s Decree No. 17, 2001, all power plant projects with capacities less than 100 MW are exempted from the AMDAL process. SAI obtained permits for construction and use of power plant for the cement production.
71. The 32 MW captive power plant will use circulating fluidized bed technology, which emits fewer pollutants than conventional coal-fired power plants. Crushed coal (6–12 mm diameter) and limestone are injected into the furnace, and are kept suspended by a stream of upwardly flowing air. This achieves more complete combustion compared with other technologies. SAI will use bag filters to control dust. About 5 t per day of limestone will be used to absorb SO2. The combustion takes place at 840–900°C, which is below the level at which NOx is formed. Solid separators remove particles from the flue gas, which are circulated back into the furnace. Emissions from this type of power plants reportedly are lower than the World Bank’s emission guidelines.14
72. The power plant will use a once-through seawater cooling system. About 8,000 m3 per hour of seawater will be pumped into the steam condenser system, and the spent cooling water will be discharged back to the sea through a 500 m natural drain. The design of the cooling water system is based on a maximum inlet water temperature of about 29°C, while the spent cooling water will be about 8°C higher than the inlet temperature. By the time the spent cooling water enters the drain, its temperature is expected to drop by about 1–2°C. An additional drop of about 3°C would be achieved while it flows through the natural drain. Thus, the temperature of the spent cooling water when it flows into the sea would be about 3–4°C higher than the ambient seawater.
73. The EIA did not conduct a complex prediction of the thermal plume that would be formed by the discharge of the warm spent cooling water on the sea surface, mainly because the discharged water is expected to be only about 3°C higher than the ambient seawater. World
9 The amount of water that has to be occasionally drained out from a boiler in order to maintain the amount of dissolved solids in the boiler tubes at a desired level 14 The circulating fluidized bed boiler emissions compared to the World Bank’s emission guidelines: (i) SO2 < 200 parts per million (ppm), World Bank 730 ppm; (ii) NOx < 100 ppm, World Bank 365 ppm; and (iii) particulate matter 50 mg/Nm3, World Bank 50 mg/Nm3. (Source: Kavidass, S. et al. 2000. Why Build a Circulating Fluidized Bed Boiler to Generate Steam and Electric Power. Presented to POWER-GEN Asia 2000. 20–22 September. Bangkok, Thailand.)
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Bank’s guidelines note that "the effluent should result in a temperature increase of no more than 3°C at the edge of the zone where initial mixing and dilution take place. Where the zone is not defined, use 100 meters from the point of discharge when there are no sensitive aquatic ecosystems within this distance."15 Since the temperature of the spent cooling water would be only about 3°C higher than the ambient seawater temperature, the water temperature at 100 m from the point of discharge will definitely be less than 3°C.
74. However, an initial assessment could be made using results of the thermal plume prediction for the Masinloc coal-fired thermal power plant project in the Philippines financed by ADB. The 600 MW power plant under this project was to discharge 104,000 m3 per hour of spent cooling water on the sea surface through an open canal extended 650 m from the shore. The spent cooling water is about 8°C higher than the ambient seawater temperature. The predicted areas influenced by discharged water with temperatures greater or equal to 3°C (World Bank's guidelines) are less than 50 ha on average and do not exceed 50 ha. The areas influenced by discharged water with temperatures greater or equal to 1°C are 90 ha (average) and 190 ha (maximum).
75. Based on the prediction results of the Masinloc project, even if the temperature of the spent cooling water under this project is about 37°C (i.e., no temperature drop in the drain), the discharge of 8,000 m3 per hour under this Project—about 13 times less water than the volume discharged by the Masinloc project—will affect much smaller areas than the Masinloc project. Though the affected area would not be 13 times smaller than the affected area of the Masinloc project, a reduction of 9 times would be credible, according to one coastal engineering expert. Therefore, the power plant under the Project would have a thermal impact on the coastal waters in an area not more than 5.5 ha. As the coastal water in front of the Project site is not rich in marine resources, the disposal of the cooling water would not have significant ecological impacts.
76. In addition to the spent cooling water, the power plant would generate a small volume of wastewater from the boiler water treatment plant and occasional boiler blowdown. This wastewater contains no harmful pollutants, and would be discharged directly back into the sea.16 The wastewater will meet national standards and the World Bank’s guidelines for wastewater.
77. The power plant will generate an estimated 55 t per day of ash. This furnace ash will be recycled back as an additive in cement production.
4. Port Operations
78. Port operations will have no significant impacts as dredging will not be required. Dust that might be generated by the unloading of coal and cement will be minimized by using a covered conveyor systems. In addition, prevailing wind will carry the dust to the sea. Ships will not be allowed to dispose of wastes during berthing at the port.
D. Health and Safety Aspects
79. During the construction phase, accidents are the major health and safety concern. SAI’s contracts require contractors to implement all standard safety measures required for
15 World Bank. 1998. Pollution Prevention and Abatement Handbook. Washington, DC. 16 No fishing occurs near the project site. A special port for fishing boats is located about 15 km from the project site. Fisherfolk usually go far offshore.
21 construction, as well as institutionalize a safety management system acceptable to SAI. Further, SAI will appoint a health and safety officer to oversee the contractors’ compliance with health and safety clauses in the contracts. The health and safety officer and an assistant will monitor closely safety-related incidents, and take necessary corrective actions to minimize the number of incidents.
80. During operations of the cement plant and its supported facilities, health and safety issues could include (i) exposure to noise, dust, and high temperatures in the cement plant and the power plant; (ii) contact with allergic substances; and (iii) accidents related to quarrying operations and cement production.
81. The modernization of the new production facilities will minimize these health and safety risks significantly. Individual protective equipment, such as earmuffs for workers in the milling room, will be mandatory. In addition to these physical measures, institutional measures will be implemented, including (i) raising the level of health and safety awareness among staff; (ii) establishing an effective health and safety management system; and (iii) implementing safety management measures, including compliance auditing, as an integral element of the health and safety management system.
E. Land Resettlement
82. The limestone quarry operated by SAI covers 79.9 ha of Government land. SAI plans to acquire the rights to use 50 ha of additional land to ensure safety operations of its mining activities, and to increase its limestone reserves. Although the land is not inhabited, 18 persons have claimed compensation. SAI noted that these occupants are squatters on public land, who might have some plots for small crops.17 Only one of these people has a land title certificate. The squatters do not include any indigenous peoples. SAI has been coordinating with local government officials18 to negotiate and finalize a compensation package for the occupants.
F. Compatibility of the Project with Other Development Projects in the Area
83. In general, the Project will support the reconstruction of Banda Aceh by providing cement for construction. As it is funded entirely by the private sector, the Project does not compete for limited government funds. The US Agency for International Development is rehabilitating the coastal road in front of the project site, regardless of the Project. The Project will use its own electricity and water resources, thus not competing for the city’s limited electricity and water supply. As the adjacent beach is not a tourist attraction, the Project will not harm local tourism.
G. Induced Development
84. At the peak of construction, about 1,000 workers would be needed. Most of these workers will be recruited from the nearby areas. Temporary quarters, however, will be erected within the plant site for about 100 foreign workers. This will minimize the chance of induced development, which could cause adverse environmental and social consequences. Other workers will be from nearby villages, and will use local transportation to commute between their residences and the project site.
17 ADB social safeguard and resettlement consultant is currently fielded to assess resettlement impact and prepare necessary report in accordance with ADB’s social safeguard requirements. 18 Including mayor of Aceh Besar, officers from the Land Office and Lhoknga District, and head of village
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85. During operations, about 300 employees will work in the cement plant and support facilities. Based on the experience from the tsunami, which had devastating effects on lives and housing facilities, SAI does not plan to construct staff housing in the project site. If SAI decides to provide any staff housing, the location will be away from the project site.
H. Decommissioning
86. The raw materials reserves are adequate for 50 years of cement production. The cement plant would operate over this period, subject to its commercial viability. During this period, the plant would need to be upgraded periodically to benefit from technological developments.
87. Preparation of a definite plan for decommissioning would not be practical during the EIA. The decommissioning of the cement plant is not environmentally sensitive, as no hazardous materials are stored or produced. The hilly quarries could be flattened, though planting vegetation would be difficult due to the thin soil layer. The cement plant site could be converted to other uses, depending on economic opportunities in the future. The harbor might be used commercially.
VI. ECONOMIC ASSESSMENT
88. The project costs include the costs of the following environmental protection equipment and facilities: (i) bag filters; (ii) low-dust absorption hoods and enclosed silos for storing raw materials; (iii) wastewater treatment plant and air pollution control facilities; (iv) water spraying system on exposed areas to suppress dust; (v) safety equipment; and (vi) mobile vacuum cleaner, road sweeper, and water tanker truck. During operations, SAI will allocate an annual budget of about Rp5.4 billion for environmental monitoring with the Badan Pengendalian Dampak Lingkungan Daerah (Region Environment Monitoring Body); and for maintenance of environmental mitigation measures, such as bag filter maintenance, plant housekeeping, and drainage cleaning.
89. The Project has two types of economic benefits: quantifiable and nonquantifiable. Quantifiable economic benefits are resource cost savings from domestic production of cement, replacing imported cement. In addition, the Project will yield nonquantifiable economic benefits in terms of employment, and will contribute to natural resource-based and construction industries.
90. Environmental costs will be related to the residual amounts of dust, NOx, SO2, and other pollutants. However, as SAI will implement environmental mitigation measures to ensure compliance with the legal requirements, the residual amounts of pollutants will be small and will not create significant environmental costs. Quantifying the economic costs of the residual amounts of pollutants is not possible.
91. The economic analysis confirms the economic robustness of the Project. The Project’s economic internal rate of return is estimated at about 20%.
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VII. ENVIRONMENTAL MANAGEMENT PLAN
92. A comprehensive RKL and RPL were prepared as part of the EIA, as required under the AMDAL regulations. The RKL and RPL also cover social aspects. The context relevant to environment is summarized as follows.
A. Mitigation Measures
1. Construction Phase
93. Appendix 6 summarizes major potential environmental impacts during the construction phase, as well as mitigation measures to be implemented by the contractors and their subcontractors. The environmental management requirements are incorporated in the contracts.
2. Operations Phase
94. Appendix 7 summarizes major potential impacts during the operations phase, as well as mitigation measures to be implemented by SAI as part of the operation of the production facilities.
B. Environmental Monitoring
95. Environmental monitoring under the RPL will include emission and ambient environmental quality monitoring. The monitoring requirements are summarized in Appendix 8. SAI will have to submit semiannual environmental monitoring reports to the provincial environmental management agency.
C. Environmental Policy
96. SAI will manage the environmental aspects of the Project in line with the Environmental Policy of the Lafarge Group. The Environmental Policy, last updated in 2003 (Appendix 9), encourages the reduction of greenhouse gas emissions per ton of cement produced.
D. Emergency Response Plan
97. To ensure safety of personnel working in the cement plant and associated facilities, SAI has prepared a tsunami emergency response plan and evacuation procedures, which includes:
(i) Forming a tsunami response team consisting of (a) tsunami response officer and tsunami coordinator, who will have overall responsibility for tsunami evacuation arrangements and training; and (b) refuge coordinators, who will take control of each refuge point in the event of tsunami alarm. (ii) Educating employees about tsunami warnings, including official, automatic, and natural warnings. (iii) Identifying areas of safe refuge and posting clear signs to indicate refuge paths and refuge points. SAI selected a vertical evacuation method to evacuate people to higher ground (e.g., rock hills) or high floors in buildings and/or structures (e.g., packing plant, preheater buildings, and siltstone crusher areas). (iv) Installing tsunami alarm. (v) Training and educating the staff about actions to be taken in case of tsunami and after tsunami.
24
E. Implementation of the RKL and RPL
1. During the Construction Phase
98. SAI will require all contractors to prepare and submit an appropriate environmental management plan (EMP) tailored to the health, safety, and environmental context of each contract. The contractors will have to comply with Lafarge’s environmental requirements. Each contractor will have to appoint a health, safety, and environmental (HSE) officer to supervise the implementation of HSE measures stipulated in the EMP. SAI also will appoint an HSE officer to supervise the contractors, and to monitor and evaluate their performance. The contractors will include in their monthly progress reports a section on the results of implementing HSE measures.
2. During the Operations Phase
99. During the operations phase, HSE management will be an integral element of production management. The tentative organizational structure for the operation of the cement plant and support facilities is in Appendix 3. Environmental management will be under the Technical and Environment Unit, while health and safety aspects will be under the Safety and Health Unit. The Technical and Environment Unit will be led by a manager, who will have two staff. The unit will be responsible for monitoring and evaluating the environmental performance of the cement plant, power plant, quarries, and port. The plant operators will be responsible for routine operations of the pollution control equipment. Tentatively, SAI will allocate an annual budget of about Rp5.4 billion for environmental monitoring.
VIII. PUBLIC CONSULTATION AND DISCLOSURE
A. Public Consultation
100. SAI conducted two public consultations in April 2006. The first was held on 12 April 2006 and the second on 25 April 2006. In addition, SAI visited two local government offices in Leupung on 26 April 2006. As SAI has been operating in the area since 1983, it was able to expedite the public consultations in the context of this Project.19 A summary of each public consultation and the meeting is as follows.
1. Public Consultation on 12 April 2006
a. Place
101. The first consultation was held at a small mosque in Lhoknga village.
b. Number of Participants and Key Participants
102. About 100 participants from Lhoknga attended the consultation. Key participants included district head of Lhoknga (Camat), head of the district police, subdistrict head, village heads, three SAI representatives, a group of university students at Lhoknga, Lhoknga youth group, religious head, religious youth group, Lhoknga’s people solidarity and awareness group,
19 To accelerate the recovery in Aceh and Nias, the Government issued a regulation to simplify the EIA process. Before the preparation of the EIA, a technical team from the Ministry of Environment visited the Project and provided guidance on the preparation of the EIA together with the terms of reference of the consultant. Subsequently, the consultant prepared a draft EIA that was circulated in the first public consultation.
25 community leaders, as well as government officials from the Badan Pengendalian Dampak Lingkungan Daerah and Agency of the Rehabilitation and Reconstruction for the Region and Community of Aceh and Nias.
c. Topics Discussed
103. SAI presented the Project for rehabilitation of cement production facilities, and gave a draft EIA to the participants. The participants expressed their aspiration to rebuild their lives after the tsunami. They expressed no objection to the reconstruction of SAI cement plant, and asked SAI to consider:
(i) enhancing communication with local people in providing community development assistance, (ii) increasing assistance for local education and development of human resources. (iii) giving preference to local people in employment directly with SAI or with its contractors, (iv) remaining committed to community development activities with more focused target beneficiaries, (v) protecting the environment, and (vi) keeping the local communities informed about its reconstruction effort.
104. Two participants raised two environmental issues based on their perception:
(i) beach erosion thought to be caused by SAI’s port, and (ii) damage to the karst ecosystem done by SAI’s limestone quarrying operations.
105. For the beach erosion issue, SAI clarified that no data or evidence was available to confirm the existence of beach erosion, and that the government agencies concerned had never raised this issue. SAI also informed the meeting that beach erosion occurred naturally in several coastal areas in the country during the monsoon season.
106. For the ecological issue, SAI noted that Government’s mining department approved the limestone quarry site, which received environmental clearance based on the AMDAL carried out in 1997. SAI also confirmed that its mining operations strictly complied with all regulations. SAI said it would appreciate receiving accurate information on this ecological issue.
2. Public Consultation on 25 April 2006
a. Place
107. The second consultation was held at Banda Seafood restaurant in Banda Aceh.
b. Number of Participants and Key Participant
108. The consultation involved 11 leaders from villages in Kecamatan Lhoknga and Leupung.
c. Topics Discussed
109. Before the second public consultation, SAI and its environmental consultant incorporated comments received during the first consultation in the revised draft EIA, which was circulated in the second public consultation. This public consultation involved only village leaders, including
26 those from Kecamatan Leupung. SAI made a presentation, including environmental aspects of the Project and its community development activities before and after the tsunami, which consisted of vocational training, clinic, and education. After the presentation, SAI was:
(i) advised to verify the boundaries of its land to ensure no encroachment. (ii) advised to pay attention to the encroachment by several small shops and houses on its land formerly used for staff housing; and to handle this problem appropriately and quickly to prevent conflicts when SAI wants to use the land. (iii) assured that new settlers along its road to the siltstone quarry would not complain when SAI again operates the quarry, as the new houses are far from the roadsides. (iv) asked about the possibility of SAI assistance in providing clean water to villages in Leupung from its water pumping facilities. (v) asked to give preference to employing local people. (vi) asked to extend its assistance to more remote villages.
110. No objections were raised on the rehabilitation of cement plant.
3. Visits to Local Government Offices in Leupung on 26 April 2006
111. Two SAI officials visited Office of Kecamatan Leupung to meet with the district head and the district police head at two separate meetings. At the meetings, the local officials:
(i) welcomed SAI’s reconstruction of its cement plant, (ii) asked SAI to provide assistance to rehabilitate Leupung since SAI abstracted water from Leupung, and (iii) asked SAI to give preference to employing local people.
112. The public consultations and the meetings summarized in paras. 100-111 demonstrate that the public does not oppose the Project. The local communities wanted SAI to consider providing more community development assistance, enhancing public communication, and giving preference to employing local people.
113. To assure the public of its environmental concern, SAI will investigate the reports of beach erosion and karst ecosystem damage in coordination with the provincial environmental management agency.
B. Enhancement of Public Communication
114. To comply with ADB’s Public Communications Policy,20 SAI will make environmental monitoring reports available to affected people, and submit such reports to ADB.21 SAI has distributed copies of the EIA to village leaders. In addition, SAI has maintained good relationships with the communities through community development programs, such as (i) construction of new houses and a mosque, (ii) provision of a mobile clinic, and (iii) vocational training. SAI staff and executives will visit communities to seek their views and suggestions in designing and implementing community development programs.
20 ADB. 2005. Public Communications Policy. Manila. 21 ADB will make environmental monitoring reports that have been disclosed locally to affected people publicly available upon submission to ADB.
27
IX. CONCLUSIONS
115. The Project is the most cost-effective alternative to rehabilitate SAI’s cement production facilities in Banda Aceh. To meet the rising cement demand in North Sumatra, the rehabilitated cement production complex will have a capacity of 1.6 MMTPA, compared with 1.4 MMTPA for the old cement facility. The Project will refurbish some facilities and replace severely damaged equipment.
116. The Project will have no major ecological impacts as it will continue to use the existing cement plant site, as well as the existing quarries for limestone and siltstone and shale. During construction, dust and noise will be normal environmental disturbances. The Project requires the contractors to adopt best environmental management practices during construction to minimize these environmental impacts. Since the project site has no surrounding communities, the residual dust and noise generated by construction will not disturb any communities. The contractors will provide appropriate training to their workers in HSE aspects of construction, and will provide necessary protective measures to the workers to minimize safety risks.
117. The Project will adopt the best process technology and designs, as well as effective pollution control equipment, to minimize emissions during operations. The emissions will meet national standards and World Bank’s emission guidelines for the cement industry. Impacts on ambient air quality have been found to be insignificant.
118. To ensure effective environmental control in line with its corporate environmental policy, SAI will establish an appropriate organization and information system for effective management of the environmental, occupational health, and safety aspects during construction and operations. The Project has formulated an effective EMP, including a monitoring program, which the contractors will implement during construction under the supervision of SAI. Further, SAI personnel will implement the EMP during operations as part of the routine and integral activities of cement production. The Project will comply fully with relevant national laws and regulations on environment, health, and safety.
119. The Project has no significant land resettlement issue, and will not affect any indigenous people. SAI is finalizing land resettlement, which will be based on transparency and fair compensation. The public has been consulted appropriately on the Project. In addition to providing local employment, SAI will continue and enhance the community development assistance it provides to the nearby communities.
120. The Project will not create any environmental benefits. It will consume nonrenewable resources in the area, including limestone (1.43 MMTPA), siltstone (0.37 MMTPA), and shale (0.12 MMTPA). However, these nonrenewable resources are abundant and are not in the protected areas. Therefore, the economic benefits from the Project will outweigh the loss of nonrenewable resources.
28 Appendix 1
CEMENT PRODUCTION PROCESS
A. Production Process
1. Cement has four elements—calcium, silica, aluminum, and iron—all of which are commonly found in limestone, clay, and sand. To make portland cement, these raw materials go through four processing stages:
(i) crushing at the quarry and then proportioning, blending, and grinding at the facility; (ii) preheating before entering the facility’s rotary cement kiln, a long, firebrick-lined, steel furnace; (iii) heating, or “pyroprocessing”, in the kiln, which makes the raw materials become partially molten and form an intermediate product called clinker; and (iv) cooling the clinker before grinding it with a small quantity of gypsum to create portland cement.
2. Figure A1.1 shows a general process flowchart for dry process cement production. The production process is described briefly as follows.
1. Limestone Crushing
3. Limestone is the basic raw material required for the cement production. For each ton of clinker production, about 1.6 tons of raw material is required. Limestone received from the quarry is crushed in the crushing plant using hammer crushers to reduce the size of limestone to 70 to 80 millimeters. The crushed limestone is transported by belt conveyor and stacked in piles. The limestone stockpile is scraped at the end face of pile, and the mixed limestone scraped out is conveyed to a hopper. Like the limestone, other additives—gypsum, shale and siltstone, and iron sand—are stacked into piles, conveyed, and kept in different transit hoppers.
2. Raw Material Grinding
4. The crushed limestone, which is pre-blended with other additives, is pulverized into fines with a vertical roller mill system. During the process of grinding the fine materials, the dust-laden gas coming out of the system is separated using bag filters or electrostatic precipitators. The ground raw material collected is conveyed and stored in a blending silo. The stored raw meal then is fine blended using a compressed air aeration system in the blending silo.
3. Coal Grinding
5. Coal is ground in the coal mill by using a vertical roller mill with stringent control measures. Coal mill grinding system is attached with bag filters or electrostatic precipitators to control the particulate emission.
4. Clinkerization
6. Clinkerization1 is central to main process, called pyroprocessing. It is done by dry process technology, which includes a four-stage cyclone preheater, rotary kiln, and grate cooler.
1 Clinkerization involves heating a mix of calcium oxide, silicon oxide, aluminum oxide, and ferric oxide at temperatures over 1,400 degrees Celsius (°C) to produce clinker, the main ingredient of cement. Appendix 1 29
7. The raw meal is preheated in a sequential arrangement of low pressure drop cyclones interconnected by a gas duct. During preheating, various chemical reactions take place, and at about 7,000°C–8,000°C calcination takes place.
8. The pre-calcined and preheated raw meal is heated further in the rotary kiln by the coal fuel to a temperature of 14,000°C–14,500°C. At this stage, the raw materials become molten products called clinker.
5. Grate Cooler
9. The clinker discharged from the rotary kiln is cooled to a temperature of 1,000°C by static pre-grate cooler. The cooled clinker is discharged from cooler, and conveyed and stored in silos.
6. Cement Grinding
10. The clinker and gypsum (additive) are ground in a ball mill. The cement product is stored in silos.
7. Packing
11. The stored cement is extracted from cement silos and packed into bags using electronic rotary packers. The mechanical loading facility is available for trucks, as well as for wagons. Each activity in the process is performed in a controlled manner.
B. Resources Requirement
12. Raw materials for cement production consist of 74% limestone, 19% siltstone, 6% shale, and 1% iron sand. The crushing of 5,700 tons of raw materials per day will release 3% vapor, with the remaining 97% coming out as dry raw meal (5,500 tons). The raw meal is processed by preheater before entering the rotary kiln, which uses coal for heating. The outputs are 3,450 Appendix 1 tons of clinker; remaining gases of carbon dioxide, carbon monoxide, sulfur dioxide, nitrogen oxides; and 5% dust. A significant portion of this dust will be captured by bag filters, and will be cycled back to the raw meal. The clinker then is added with 200 tons of gypsum and 1,000 tons of Pozzolan, which will produce 4,650 tons of cement per day. A 32-megawatt captive coal-fired power plant will supply electricity for the production process. Figure A1.2 contains a flowchart 29 that shows the resources requirements for cement production and power generation.
30
Appendix 1 1 Appendix
Source: European Commission. 2000. Integrated Pollution Prevention and Control (IPPC): Reference Document on Best Available Techniques in the Cement and Lime Manufacturing Industries. Spain.
Figure A1.2: Simplified Mass Balance Diagram
Cement Production Stack Gas 52,000 Nm3/hour
Water Vapor
200 tons Pozzolan-1,000 tons Coal-550 tons Siltstone-1,100 tons
Limestone-4,200 tons Cement-4,650tons Clinker Raw Meal Preheater and Raw Milling Cement Milling (5,500 tons) Precalcining (3,450 tons) Shale-340 tons
Iron Sand-55 tons Gypsum-200 tons
3 Power Generation-32 MW Stack gas Seawater 1,000 m /hour
Coal-435 tons Electricity CFB Boiler Steam Turbine Limestone-5 tons Generators
Spent cooling water to sea Appendix 1 Ash –about 55 tons = sent to cement milling
CFB = circulating fluidized bed, m3/hour = cubic meter per hour; MW = megawatt. Note: The diagram exhibits resources used and outputs from cement production and associated power generation in 1 day. Source: PT Semen Andalas Indonesia. 31
32 PROJECT IMPLEMENTATION SCHEDULE
2006 2007 2008 LHOKNGA Reconstruction May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 pedx2 2 Appendix
Project Appropriation
Permits and EIA Cleared
Reserves Proven - Land Purchase
Power Plant Contracting
Power Plant Contract Award
Power Plant Basic Design
Power Plant Implementation
Power Plant Commissioning
Power Plant IPT 1 Load Bank operational Power Plant IPT 2
Plant Equipment Contracting
Plant Equipment Contract Award
Cement Plant Basic Design
Cement Plant Detailed Design
Equipment Manufacturing and Delivery
Civil Works Contract Negotiation
Civil Works Contract Award
Civil Works
Cement Plant Erection Contract Negotiation
Cement Plant Erection Contract Award s Cement Plant Erection
No Load Tests
Raw mill and Kiln Load Tests
First Clinker First Clinker
Cement mills and Load Tests
ITP Clinker ITP Clinker
ITP Cement ITP Cement EIA = environmental impact assessment, IPT = in plant testing, ITP = industrial performance test. Source: PT Semen Andalas Indonesia.
PROJECT IMPLEMENTATION TEAM ORGANIZATION
. Project Leader
ATC Technical Experts Project Manager
Project Admin. Site Management Safety Officer BU Services Planner Scheduler Site Manager Cost Control – Admin Design Engineer Legal Expeditor Admin and Local Relay Purchasing Secretary Secretary Finance and Tax Customs Local community
Supervised Areas POWER PLANT CEMENT PLANT Plant Operation Team Supervision Team Supervision Team Power Plant OPG Civil Supervisor Senior Civil Supervisor Crushers and Stock Piles Mecha. Supervisor Senior Mecha. Supervisor Raw Mill & Cement Mill Elec. Supervisor Mecha. Supervisor Coal Mill and Storage Senior Elec. Supervisor Preheater Elec Supervisor Kiln and Cooler Clinker Storage and Transport Pozzolan Dryer, Roller Press Pozzolan, Gypsum Storage and Appendix 3 3 Appendix Handling Suppliers for implementation Suppliers for implementation Jetty
Safety Officer Safety Officer 33
Admin. = Administration, ATC = Asian Technical Center, BU = Business Unit, Elec. = Electrical, Mecha. = Mechanical, OPG = operational preparation guide. Source: PT Semen Andalas Indonesia.
34
4 Appendix
OPERATION AND MAINTENANCE ORGANIZATION CHART
SVP Manufacturing
Deputy Plant Manager
Electrical Mechanical Quarry Production Technical & Power Plant Safety and Lhoknga Manager Manager Manager Manager Environment Manager Health Terminal Manager Manager Manager
SVP = senior vice president. Source: PT Semen Andalas Indonesia.
Appendix 5 35
CALCULATION OF SO2 EMISSION
Amount of coal 196,320 t/yr Sulfur content 0.49 % Total amount of sulfur 961.97 t/yr Total amount of SO2 generated 1,923.94 t/yr 5.5 t/d 229.04 kg/hr Absorbtion 80 % SO2 emission 45.81 kg/hr Stack gas volume 287,500 Nm3/hr Emission per Nm3 159 mg/Nm3 Emission standard 400 mg/Nm3 3 SO2 = sulfur dioxide, kg/hr = kilogram per hour, t/yr = ton per year, mg/Nm = milligram per normal cubic meter, Nm3/hr = normal cubic meter per hour. Sources: PT Semen Andalas Indonesia and Asian Development Bank estimates.
36 SUMMARY OF ENVIRONMENTAL MANAGEMENT PLAN DURING CONSTRUCTION
Significance of Residual Activities Potental Issues Impacts Impacts After Control Mitigation Measures Implemented by 6 Appendix Transportation of construction materials Traffic congestion on the Public inconveniences Minor, due to light traffic Traffic management and Local police in coastal road load on the coastal road transport scheduling coordination with and some equipment can contractor and be unloaded at SAI port. SAI
Site clearing and construction of civil Noise and emissions Noise and air pollution at Minor as indicated by the Mitigation measures will be Contractors works and installation of equipment of heavy construction the construction site results of ambient noise and stipulated in the construction equipment and ambient air quality contract, including noise pro- predictions tection equipment to be pro- vided to workers, use of low- noise equipment, etc.
Disposal of construction If inappropriately disposed Minor, most wastes will be Contractors must propose Contractors wastes of, construction wastes construction debris, no toxic for SAI's approval methods could have adverse envi- and hazardous wastes apart and places for disposal of ronmental impacts. from oil. construction debris and, spent oil or chemicals,if any.
Sanitation of worker Human wastes need to Minor, the problems are Toilet wastes to be disposed Contractors quarters be disposed off properly managable as most of the of in septic tanks, refuse will to ensure hygienic condi- construction workers would be collected by the munici- tions of worker quarters stay off the construction site. pality, food sanitation and and minimum environ- hygiene will be maintained. mental impacts.
SAI = PT Semen Andalas Indonesia. Source: PT Semen Andalas Indonesia.
SUMMARY ENVIRONMENTAL MANAGEMENT PLAN DURING OPERATIONS
Significance of Residual Activities Potental Issues Impacts Impacts After Control Mitigation Measures to Be implemented by SAI Quarrying operations Noise from blasting Public disturbance Minor, blasting will be done Use non-electric detonator to reduce noise and about one time per day, and vibration so that the distance of fly rock will be no schools and houses are less than 50 meters. within 1 km of the quarries.
Coal handling and storage Fugitive dust Ambient air quality and Minor, amount of fugitive Coal unloading from ships and transport to the public disturbances coal dust will be small and storage site will be done using an enclosed con- confined to within the site. veyor system. The storage yard will be covered and will be frequently sprayed with water to sup- press dust.
Cement production and power Dust and noise in plant Health impacts on workers Minimum health risks to Bag filters to be installed at each dust generating generation workers unit process. Workers will wear protective equip- ment and receive training in safety and occupa- tional health. Operation manuals will be prepared.
Emission of dust, NOx, Deterioration of ambient air Minor, ambient air quality Conduct Lafarge computerized control system to
and SO2 to the atmos- quality with negative will meet the national stan- stablilize production and as a result reduce NOx. phere effects on health and dards and World Bank's SO2 will be reduced using scrubbing method. properties guidelines.
Cooling water bleed off Localized marine pollution Minor, water temperature The water temperature will be reduced by cascading or spent cooling water will be reduced before dispo- aeration before disposal into the sea or use in sal. landscape gardening in the site.
Wastewater from office Localized marine pollution Minor, wastewater will be The wastewater will be treated using septic tanks treated before disposal. and leaching field.
Port operations Disposal of ship wastes Localized marine pollution Minor, ship wastes will not Ships will not be allowed to dispose ballast water
be disposed of at the port. and spent oil while berthing at SAI port. km = kilometer, m = meter, NOx = nitrogen oxide, SAI = PT Semen Andalas Indonesia, SO2 = sulfur dioxide. Source: PT Semen Andalas Indonesia. Appendix 7 7 Appendix
37
38 SUMMARY OF ENVIRONMENTAL MONITORING PLAN
Parameters or Matters Appendix 8 8 Appendix Monitoring Subject Monitoring Sites to be Monitored Frequency A. During Construction 1. Ambient air quality Few sampling sites within the construction Particulates and noise Once or twice daily sites
2. Disposal of construction wastes The designated disposal site(s) Compliance with the disposal Weekly requirements 3. Disposal of worker wastes Areas around worker quarters Presence of solid wastes and Daily observation sewage
B. During Operations-Quarries 1. Ambient air quality Houses nearest the quarries Blasting noise at the limestone To verify the noise levels during the Quarry sites quarry first few days of quarrying operations Noise of heavy equipment Monitoring will not be necessary if the noise level is verified to be within the prescribed limits.
C. During Operations-Cement Plant
1. Ambient air quality Within the cement plant proper Particulates, SO2, NOx, and Monthly, 24-hour continuous sam- noise pling, and during plant Villages of Lhoknga and Naga Umbang Same as above except noise shutdown and restart
2. In-plant air quality At dust generation activities Particulates Weekly, 24-hour continuous sampling
3. Emission of air pollutants Stack gas Particulates, SO2, NOx Monthly, 24 hour continuous sampling and during plant shutdown and restart 4. Sea water quality At SAI port COD, oil and grease Monthly, grab sampling
COD = chemical oxygen demand, NOx = nitrogen oxide, SAI = PT Semen Andalas Indonesia, SO2 = sulfur dioxide. Source: PT Semen Andalas Indonesia.
Appendix 9 39
LAFARGE GROUP ENVIRONMENTAL POLICY
A. Commitments
1. Operations
(i) operate our facilities in a manner that meets local laws, standards and regulations, and state-of-the-art environmental management systems requirements; (ii) minimize the exposure of our employees and the communities around our sites to environmental, health, and safety risks by employing safe technologies and operating procedures; (iii) minimize the use of nonrenewable resources and, where feasible and safe, replace them with substitute raw materials, alternative fuels, or biomass; (iv) minimize the generation of hazardous and other wastes, reuse and recycle materials where feasible, and dispose of wastes using safe and responsible methods; (v) implement programs to prevent accidental releases; have emergency response action programs in place at all sites; (vi) conduct environmental audits for all facilities on a routine schedule and in connection with all acquisitions and divestments; and (vii) develop a rehabilitation plan for all quarry sites that takes into account the needs and expectations of our stakeholders and, where feasible, fosters wildlife habitat creation and contributes to the conservation of endangered species.
2. Greenfield Site Development and Major Modification Projects
(i) carry out an environmental impacts study when selecting greenfield sites for development or developing major modification projects, and meet the requirements resulting from being in proximity to protected areas or habitats; (ii) design and build our facilities in a manner that meets local laws, standards and regulations, as well as Lafarge’s worldwide environmental standards; and (iii) facilitate the conservation of historic remains discovered during site development and quarry operations.
3. Resources, Training, Research
(i) provide adequate financial and human resources, employee training, and awareness raising to facilitate continuous improvement in environmental performance; and (ii) take the necessary steps, including sponsoring research, to improve our knowledge of the environmental impacts of our processes and products.
4. Procurement
(i) evaluate the environmental values and policies of subcontractor and supplier candidates as part of the selection process; and
40 Appendix 9
(ii) require our subcontractors and suppliers to respect our environmental, health, and safety values, and to comply with our policies and procedures when present on our premises.
5. Product Stewardship
(i) implement sustainability and product stewardship practices in the design, manufacturing, distribution, and application of our products to enhance their contribution to sustainable construction, minimize their impact on human health and the environment, and limit the amount of wastes generated and disposed of.
6. Stakeholder Relations
(i) Provide our stakeholders routinely with environmental information about our operations and products in an open manner. We will solicit their feedback and encourage a candid dialogue. We will hold ourselves accountable to our stakeholders for our actions. (ii) Cooperate proactively with legislators and regulators to evaluate the feasibility, impact, and cost and benefit of proposed laws, regulations, and standards.
B. Environmental Objective
1. In 2001, the Group set forth company-wide environmental objectives, published in Building a Sustainable World, our first sustainability report. This initial list of eight environmental objectives was slightly revised in 2003 as follows:
(i) have 100% of our sites audited within the last 4 years by 2004; (ii) have 80% of our quarries implementing a Lafarge-approved rehabilitation plan by 2004; (iii) achieve a maximum level of stack dust emissions of 50 milligrams per normal cubic meter at all our cement plants in 2010 and report on our performance in the next report; (iv) improve data collection on water usage by 2002 and beyond; (v) reduce Lafarge’s global carbon dioxide (CO2) emissions by 20% per ton of cement over the period 1990–2010, including a 15% reduction in total CO2 tons emitted for industrialized countries; (vi) extend the measure of energy consumption to all divisions in 2003 where it is significant and track improvement into the future; (vii) achieve recycled materials use target by 2005: (a) 10% for the Cement Division, (b) 45% for the Gypsum Division, and (c) 2% for the Roofing Division; and (viii) reduce production waste going to disposal by 2005 to: (a) 1% for the Cement Division, (b) 1.5% for the Gypsum Division, and (c) 1.5% for the Roofing Division.
2. With approval from the divisions, the Group may update or add to the above environmental objectives over time. Where applicable, divisions, countries, and operations are to monitor the above indicators and track their operations performance on the above environmental objectives. Each division will submit their consolidated results and progress reports to the corporate office by 30 March of the following year. This information will be published in the next editions of our sustainability report.