FEASIBILITY STUDY FOR LOJANE MINE, MACEDONIA FINAL REPORT Czech-UNDP Trust Fund Procurement 03/ENVI July, 2007 Feasibility study for Lojane Mine, Macedonia REPORT IDENTIFICATION SHEET Client: UNDP-Bratislava Regional Centre Tel: + 421/259 337 176, Fax: + 421/259 337 450 E-mail: [email protected] - Contact Address: Grosslingova 35 811 09 Bratislava, Slovak Republic - Contact Persons: Mrs. Radka Konderlová, Programme Associate Contract: Consulting services for preparation of a feasibility study for Lojane Mine, Macedonia - Procurement no: 03/ENVI Contractors: University "Ss. Cyril and Methodius"- Skopje Lot 1 Contact Data: Faculty of mining and geology - Stip Goce Dlecev 89 2000 Stip, Republic of Macedonia www.rgf.edu.mk Contact Person: Dejan Mirakovski, project manager [email protected] Lot 2 DEKONTA, a.s. Contact Data: Headquarters: Podho ří328/28 400 10 Ústí nad Labem , Czech Republic Contact address : Volutova 2523, 158 00 Prague, Czech Republic Tel: +420 2 355 222 52-5 Fax: +420 2 355 222 54 E-Mail: [email protected] ,[email protected] www.dekonta.cz Contact Persons: Hana Čermáková, foreign projects coordinator Jan Vá ňa, project manager Elaborated by: Mr. Jan Vá ňa, project manager Reviewed by: Jan Van ěk, head of environmental division Approved by: Mr. Robert Raschman, managing director Made on: July, 2007 Copy No.: 2 - 2 - Feasibility study for Lojane Mine, Macedonia List of contents: Confidentiality statement ......................................................................................................... 13 Acronyms and abbreviations used............................................................................................ 14 Glossary of specific terms ........................................................................................................ 15 Executive summary.................................................................................................................. 18 1 Introduction and project background................................................................................ 20 1.1 Introduction .............................................................................................................. 20 1.2 Project background................................................................................................... 20 1.3 Project objectives ..................................................................................................... 22 1.3.1 General objectives............................................................................................ 22 1.3.2 Terms of reference............................................................................................ 23 1.4 Legislation, regulations, policy and administrative framework ............................... 25 1.5 Project team.............................................................................................................. 26 1.6 Report organization.................................................................................................. 28 2 Lot 1 - Baseline Study...................................................................................................... 29 2.1 Site description......................................................................................................... 29 2.1.1 Site location...................................................................................................... 29 2.1.2 Climatic characteristic...................................................................................... 30 2.1.2.1 Climate ......................................................................................................... 30 2.1.2.2 Temperature.................................................................................................. 30 2.1.2.3 Precipitation ................................................................................................. 30 2.1.3 Geological settings........................................................................................... 32 2.1.3.1 General geology of the area.......................................................................... 32 2.1.3.2 Ore occurrences............................................................................................ 35 2.1.3.3 Tectonics ...................................................................................................... 36 2.1.3.4 Hydrogeology............................................................................................... 38 2.1.3.5 Hydrology..................................................................................................... 39 2.1.4 Biological conditions........................................................................................ 41 2.1.4.1 Vegetation .................................................................................................... 41 2.1.4.2 Wildlife......................................................................................................... 42 2.1.5 Social setting and economic conditions ........................................................... 42 2.1.5.1 Population..................................................................................................... 42 2.1.5.2 Socio-economic conditions .......................................................................... 44 2.1.5.2.1 Employment and distribution of incomes .............................................. 44 2.1.5.2.2 Community infrastructure and services.................................................. 45 2.1.5.2.3 Planned development activities.............................................................. 46 2.1.5.3 Land use ....................................................................................................... 47 2.1.5.3.1 Agricultural land..................................................................................... 47 2.1.5.3.2 Forests .................................................................................................... 47 - 3 - Feasibility study for Lojane Mine, Macedonia 2.1.5.3.3 Urban development and spatial planning............................................... 47 2.1.5.4 Cultural and archaeological resources.......................................................... 48 2.1.5.4.1 Landscape............................................................................................... 48 2.1.5.4.2 Cultural and archaeological heritage...................................................... 48 2.2 Current environmental conditions............................................................................ 49 2.2.1 Air quality......................................................................................................... 49 2.2.2 Water quality.................................................................................................... 49 2.2.3 Soil quality ....................................................................................................... 50 2.2.4 Effects of environmental conditions on living quality and people’s health ..... 50 2.2.4.1 Public perception of the environment .......................................................... 50 2.3 Abandoned mine facilities description..................................................................... 51 2.3.1 Description of mining/mineral processing technology used ............................ 51 2.3.2 Locations of abandoned mine facilities............................................................ 53 2.4 Environmental impacts............................................................................................. 63 2.4.1 Introduction...................................................................................................... 63 2.4.1.1 Metal contamination of groundwater and surface water .............................. 63 2.4.1.2 Sediments ..................................................................................................... 64 2.4.1.3 Air emission and downwind deposition....................................................... 65 2.4.1.4 Physical impacts........................................................................................... 66 2.4.2 Toxicological profiles of contaminants of concern.......................................... 67 2.4.2.1 Antimony...................................................................................................... 67 2.4.2.1.1 Pharmacokinetics ................................................................................... 67 2.4.2.1.2 Non-cancer effects.................................................................................. 67 2.4.2.1.3 Cancer effects......................................................................................... 68 2.4.2.1.4 Susceptible populations.......................................................................... 68 2.4.2.1.5 Current exposure limits.......................................................................... 68 2.4.2.2 Arsenic ......................................................................................................... 69 2.4.2.2.1 Pharmacokinetics ................................................................................... 69 2.4.2.2.2 Non-cancer effects.................................................................................. 69 2.4.2.2.3 Cancer effects......................................................................................... 71 2.4.2.2.4 Susceptible populations.......................................................................... 71 2.4.2.2.5 Current exposure limits.........................................................................