NGWENYA IRON ORE MINE ENVIRONMENTAL AUDIT REPORT - 2019 Prepared for Submitted by PO Box: D189, The Gables Kingdom of Eswatini Unit 5, RSTP Innovation Park Building Project proponent Environmental Consultant Phocweni, Kingdom of Eswatini 1 ENVIRONMENT AUDIT REPORT – 2019 NGWENYA IRON ORE MINE PREPARED BY PO BOX: D189, GABLES, EZULWENI, ESWATINI ON BEHALF OF THE LIQUIDATOR, FOR SG IRON ORE MINING PTY LTD IN VIEW OF RESCUSITATING THE NGWENYA IRON ORE MINE BY VUKA LILANGA MINERALS PTY LTD PO BOX: N5519, MBABANE, ESWATINI Email: [email protected] URL: www.vukalilanga.com ENVIRONMENTAL AUDIT REPORT - 2019 | Ngwenya Iron Ore Mine 2 Statement of Declaration The findings, conclusions and recommendations provided in this Audit are based on the Auditor’s legal and professional knowledge and information made available to the auditor and observations made during the site visits. Although due care and diligence has been exercised in rendering services and preparing documents, no liability is accepted as a result of use of the information contained in this document. In particular no liability is accepted for consequences should recommendations contained in this report not be implemented. This audit report must not be altered or added to without the prior written consent of the auditor. This also refers to electronic copies of this Audit Report. Declaration R3 Services, as an independent consultant compiled this audit report and declare that it correctly reflects the findings made at the time of the audit. We further declare that we, • Act as an independent consultant; • Do not have any financial interest in the undertaking of the activity, other than remuneration for the work performed in terms of the Environmental Management Act, 2002; • Undertake to disclose, to the competent authority, any material information that has or may have the potential to influence the decision of the competent authority or the objectivity of any report, plan or document required in terms of the Environmental Management Act, 2002; • Based on information provided to us by the project proponent, and in addition to information obtained during this study, will present the results and conclusion within the associated document to the best of our professional judgement. ____________________ ____________________ Nsibandze Bhekisisa Dlamini Ceb’sile Portia Director - R3 Services Author & Environmental Consultant ENVIRONMENTAL AUDIT REPORT - 2019 | Ngwenya Iron Ore Mine Declaration 3 PROPONENT’S COMMITMENT Vuka Lilanga Minerals (Pty) Ltd is committed to adhering with the CMP and other environmental requirements and legislation of the Kingdom of Eswatini to ensure that the proposed project is undertaken in an environmentally friendly manner. ____________________________ SIVARAMA PRASAD PETLA MANAGING DIRECTOR ENVIRONMENTAL AUDIT REPORT - 2019 | Ngwenya Iron Ore Mine 4 Table of Contents Statement of Declaration ........................................................................................................................ 2 Declaration .............................................................................................................................................. 2 Table of Contents .................................................................................................................................... 4 List of Figures ...................................................................................................................................... 6 List of Tables ....................................................................................................................................... 8 Glossary & Acronyms .............................................................................................................................. 9 Glossary ............................................................................................................................................... 9 Acronyms ............................................................................................................................................ 9 Executive Summary ............................................................................................................................... 10 Introduction .......................................................................................................................................... 13 The Purpose of the Environmental Audit is to assess: ...................................................................... 13 The Objectives of the Environmental Audit are therefore to: .......................................................... 13 The Scope of the audit ...................................................................................................................... 13 Part 1: Background and Project Status ................................................................................................. 14 1.1. Project Background .................................................................................................................... 14 1.2 The Swaziland Iron Ore Development Corporation .................................................................... 15 1.3 SG Iron Ore Mining Pty Ltd ......................................................................................................... 15 1.4 Project Status .............................................................................................................................. 15 Part 2: Audit Information ...................................................................................................................... 16 2.1 Scope of the Work....................................................................................................................... 16 2.2 Audit Methodology ..................................................................................................................... 16 2.3 Consultations .............................................................................................................................. 16 Part 3: Relevant Legislative Framework ................................................................................................ 18 Part 4: Description of the Abandoned & Proposed Mine Operations .................................................. 25 4.1 Location ....................................................................................................................................... 25 4.2 Size .............................................................................................................................................. 25 4.3 Workforce ................................................................................................................................... 25 4.4 Inputs and outputs ...................................................................................................................... 26 ENVIRONMENTAL AUDIT REPORT - 2019 | Ngwenya Iron Ore Mine Table of Contents 5 4.5 Manufacturing process ............................................................................................................... 26 4.5.1 Excavation and Segregation at source ................................................................................. 27 4.5.2 Dry Crushing and Screening ................................................................................................. 28 4.5.3 Wet screening and jigging for coarser sizes ......................................................................... 28 4.5.4 Spiral Circuit for finer sizes (<1mm) ..................................................................................... 28 4.5.5 Water Requirement, Sources and Recycling ........................................................................ 29 Part 5: Physical Environment ................................................................................................................ 33 5.1 Physical Landscape ...................................................................................................................... 33 5.2 Climatology Information ............................................................................................................. 33 5.2.1 Rain Fall ................................................................................................................................ 33 5.2.2 Wind speed and wind directions ......................................................................................... 34 5.3 Biodiversity.................................................................................................................................. 36 5.3.1 Fauna .................................................................................................................................... 36 5.3.2 Flora .................................................................................................................................... 36 5.4 Infrastructure .............................................................................................................................. 37 5.5 Transportation ............................................................................................................................ 40 5.5.1 Previous Operations ............................................................................................................. 40 5.5.2 Proposed Operations ........................................................................................................... 40 Part 6: Audit Findings ...........................................................................................................................