DMR 10 mineral resources Department: Mineral Resources REPUBLIC OF SOUTH AFRICA Private Bag X33, Welkom, 9460, Tel: 057 3911342, Fax: 057 357 6003 The Strip Building, 314 Stateway Street, Welkom, 9459 Enquiries: Ms. R.R. Mphaphuli Ref: FS 30/5/1/2/3/2/1 (10034) EM E-Mail Address: [email protected] Sub-Directorate: Mine Environmental Management BY REGISTERED MAIL The Directors African Carbon Energy (Pty) Ltd P.O. Box 10020 Secunda 2302 Attention: Mr. J.F. Brand Fax no: 017 6311964 ENVIRONMENTAL AUTHORISATION IN TERMS OF THE NATIONAL ENVIRONMENTAL MANAGEMENT ACT, 1998 (ACT 107 of 1998) AS AMENDED (NEMA) AND THE ENVIRONMENTAL IMPACT ASSESSMENT (EIA) REGULATIONS 2014 AS AMENDED, FOR MINING OF COAL IN RESPECT OF VARIOUS PROPERTIES (SEE ATTACHED ANNEXURE "A"), ALL SITUATED IN THE MAGISTERIAL DISTRICT OF THEUNISSEN IN FREE STATE REGION. With reference to the abovementioned application, please be advised that the Department has decided to grant an environmental authorisation in terms of the National Environmental Management Act, 1998 (Act 107 of 1998). The environmental authorisation and reasons for the decision are attached herewith. In terms of regulation 4(2) of the Environmental Impact Assessment Regulations of 2014 as amended you are instructed to notify all registered interested and affected parties, in writing within 14 (Fourteen) calendar days, from the date of the Department's decision in respect of your application and the relevant provisions regarding the lodgement of an appeal must be provided for in terms of the National Appeal Regulations of 2014. Should you wish to appeal any aspect of the decision, you must submit the appeal to the Minister of Environmental Affairs and a copy of such appeal to the Department of Mineral Resources (Free State Regional Office), within 20 days from the date of notification, and such appeal must be lodged as prescribed in chapter 2 of the National Appeal Regulations of 2014 as amended by means of the methods as per prescribed below: Appeal must be submitted in writing to the Department of Environmental Affairs Attention : Adv. Mokete Rakgogo, Acting Director: Appeals and legal Review Email : [email protected] Tel : (012) 399 9356 By post : Private Bag X447, Pretoria, 0001 By hand :Environmental House, (473 Steve Biko) Corner Steve Biko and Soutpansberg Street, Arcadia, Pretoria, 0083 Copy of the lodged appeal to the Department of Mineral Resources Attention : Acting Regional Manager: Free State Region By facsimile : 057 357 6003 E-mail : [email protected] By post : Private Bag X33, Welkom, 9460 By hand : The Strip Building, 314 Stateway Street, Welkom, 9459 Should you decide to appeal, you must comply with the National Appeal Regulation of 2014 in relation to notification of all registered interested and affected parties, and a copy of the official appeal form can be obtained from the Department of Environmental Affairs. · DEPARTMENT OF MINEIW. ~ESllJII\CES MINE ENVIRONMENTAL MANAGEMENT Yours faithfully, PRIVATE BAG X33 WELKOM 9459 TEL: 057 391 1300 • 0 1 AOO 20!'J J· I j ENVIRONMENTAl..~1'-'TION GRANTED l <::: ...t®#. ,:%.4t. .............. .. NEMA, 1998 (ACT 107 Of 1Q9&) AS AMENDED K. KEWUTI REGIONAL MANAGER: FREE STATE REGION ACTING REGIONAL MANAGER: MINERAL REGULATION ~~~~:~~~\.t?1~~M ..... DMR 10 mineral resources Department: Mineral Resources REPUBLIC OF SOUTH A FRICA Private Bag X33, Welkom , 9460, Tel: 057 3911342, Fax: 057 357 6003 The Strip Building, 314 Stateway Street, Welkom, 9459 .....· Reference number: FS 30/5/1/2/3/2/1 (10034) EM Last amended: First Issue , Holder of Authorisation: African Carbon Energy (Pty) Ltd .··· Location of activity: Various Farms attached as "Annexure A", all situated in the Magisterial District of Theunissen in Free State Region. DECISION ACRONYMS NEMA: The National Environmental Management Act, 1998 (Act 107 of 1998), as amended DEPARTMENT: Department of Mineral Resources EA: Environmental Authorisation IEA: Integrated Environmental Authorisation DEPARTMENT OF MINERAL RESOURCES MINE ENVIRONMENTAL -'.1AN..\GEMENT EM Pr: Environmental Management Programme PRIVATE BAG X33 WELKOM 945& TEL. :i5:' ,'.:l 1 1 3·:0 BAR: Basic Assessment Report S&EIR: Scoping and Environmental Impact Report 0 1 AUG 2019 ) l&AP: Interested and Affected Parties EN VIRONMENTAL ,'IIJ1 h 0 H1::;,\"110N GR<\!\ITED i ECO: Environmental Control Officer Nc:MA, 1998 (ACT 107 OF 1998) AS AMENDED I SAHRA: South African Heritage Resources Agency I REG IONA~~ANAGER: FREE STATE RESiON, EIA REGULATIONS: EIA Regulations, 2014 as amended MPRDA: Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002), as amended NEM: WA: National Environmental Management: Waste Act, 2008 (Act 59 of 2008), as amended NWA: National Water Act, 1998 (Act 36 of 1998) as amended EIA: Environmental Impact Assessment. FINANCIAL PROVISIONING REGULATIONS: The National Environmental Management Act, 1998 (Act 107 of 1998), Regulations Pertaining to the Financial Provision for prospecting , Exploration, mining or Production operations Environmental Authorisation for file reference number FS 30/5/1/2/3/2/1 (10034) EM Page 1 of 22 The Department is satisfied, on the basis of information available to it and subject to compliance with the conditions of this environmental authorisation, that the company should be authorised to undertake NEMA EIA listed activity specified below. Details regarding the basis on which the Department reached this granting decision are set out in Annexure "1" and "2" of this environmental authorisation. ACTIVITY APPLIED FOR By virtue of the powers conferred on it by NEMA, the Department hereby Grants an EA to African Carbon Energy (Pty) Ltd with the following contact details - African Carbon Energy (Pty) Ltd P.O. Box 10020 Secunda DEPARTMENT OF MINERAL RF.SOURCES MINE ENVIRONMENTAL MANAGEMENT 2302 PRIVATE BAG X33 WELKOM 9459 TEL: 057 39 I 1300 Contact person: Mr. J.F. Brand Fax: 017 6311964 1,,,.IIRO"""'~.: A~~:R.~~::N ~RAN,EO I E-mail: [email protected] 1No .MA, 1998 (AC·r 107 OF 1998) AS AM£NOEC I I REGIONA~MANAGER:FREf STAT~£iD to undertake the following activities listed in the EIA Regulations 2014: NEMA: LISTED ACTIVITIES: NEMA listing notice 1: GNR. 983 Activity 12: The development of- (i) canals exceeding 100 square metres in size; (ii) channels exceeding 100 square metres in size; (iii) bridges exceeding 100 square metres in size; (iv) dams, where the dam, including infrastructure and water surface area, exceeds 100 square metres in size; (v) weirs, where the weir, including infrastructure and water surface area, exceeds 100 square metres in size; (vi) bulk storm water outlet structures exceeding 100 square metres in size; (vii) marinas exceeding 100 square metres in size; (viii) jetties exceeding 100 square meters in size; (ix) slipways exceeding 100 square meters in size; (x) buildings exceeding 100 square meters in size; (xi) boardwalks exceeding 100 square metres in size; or (xii) infrastructure or structures with a physical footprint of 100 square meters or more; where such development occurs- (a) within a watercourse; (b) in front of a development setback; or Environmental Authorisation for file reference number FS 30/5/1/2/3/2/1 (10034) EM Page 2 of22 (c) if no development setback exists, within 32 meters of a watercourse, measured from the edge of a watercourse; - excluding­ (aa) the development of infrastructure or structures within existing ports or harbours that will not increase the development footprint of the port or harbour; (bb) where such development activities are related to the development of a port or harbour, in which case activity 26 in Listing Notice 2 of 2014 applies; (cc) activities listed in activity 14 in Listing Notice 2 of 2014 or activity 14 in Listing Notice 3 of 2014, in which case that activity applies; (dd) where such development occurs within an urban area; or (ee) where such development occurs within existing roads or road reserves. Activity 33: The underground gasification of 300 kilograms or more coal per day, including any associated operation. NEMA listing notice 2: GNR. 984 Activity 17: Any activity including the operation of that activity which requires a mining right as contemplated in section 22 of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002), including associated infrastructure, structures and earthworks, directly related to the extraction of a mineral resource, including activities for which an exemption has been issued in terms of section 106 of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002}. The proposed project will use the Underground Coal Gasification (UCG) process to extract the energy value of the coal in a usable form as synthesis gas (syngas) I DEPARTMENT OF MINERAL RESOURCES MINE ENVIRONMENTA L MANAGEMENT Detailed specifications of the activity are as follows: I PRIVATE BAG X33 WELKOM 9459 TEL· '.lf; ~ ' I() • 1 ''J(l i Mining activity details are as follows: I 0 1 AUG 2019 ) Area under application - 600 hectares (ha) I ::~"11Rom,1EN ,1\1. :1.u1 HOR1s,.; ,uN GRANTEl) Ne MA, 1998 IACT 107 OF 1998) AS '\MENDED Underground coal gasification 1RE GION~~P,N AG ER~FRtES'l}TEREGl~ Underground coal gasification is roughly 100 ha coal footprint (±5 million tons of coal). The UCG technology proposed for this project is referred to as Controlled Retractable Injection Point (CRIP). Using a directionally drilled injection well, the oxidant mix is injected into an underground coal seam where a cavity is formed by removing the carbon from the coal. The cavity acts like a very efficient underground gasifier, consuming and converting the coal in-situ and producing energy-carrying gas which is extracted through the production well. The project will involve gasification of about 5 million tons of coal over 20 years under an area of about 150 ha. Environmental Authorisation for file reference number FS 30/5/1/2/3/2/1 (10034) EM Page3 of22 Syngas processing and power generation The ash (non-combustible constituents) remains underground in the gasifier after the coal has been gasified.