Final Report Emirates Aluminium Company EMAL Project Environmental Update Project: 503406 November 2011 Emirates Aluminium EMAL Project Environmental Update Note to the Reader This document contains the expression of the professional opinion of SNC-Lavalin International Inc. (referred to as “SLII”) as to the matters set out herein, using its professional judgment and reasonable care. It is to be read in the context of the Consultancy Agreement dated June 14, 2010 (referred to as the “Agreement”), between SNC-Lavalin International Inc. (SLII) on the one part (referred to as the Consultant) and Emirates Aluminium Company Limited (EMAL) on the other part (referred to as the Client), and the methodology, procedures and techniques used, assumptions, and the circumstances and constraints under which this mandate was performed. The Basic Design Parameters related to the smelting technologies considered in the Study were provided by the Client who bears the ultimate responsibility for the accuracy of the data provided and for the performance of the related smelting technologies considered hereinafter. The Consultant is in no position to neither verify nor confirm the accuracy of the information provided by the Client about the smelting technologies, and as such bears no responsibility as to the accuracy of the data and the performance of the smelting technologies considered in the Study. This document is written solely for the purpose stated in the Report, and for the sole and exclusive benefit of the Client, whose remedies are limited to those set out in the Agreement. This document is meant to be read as a whole, and sections or parts thereof should thus not be read or relied upon out of context. SLII has, in preparing this EMAL Project Environmental Update, followed methodology and procedures, and exercised due care consistent with the intended level of accuracy, using its professional judgment and reasonable care. Unless expressly stated otherwise, assumptions, data and information supplied by, or gathered from other sources (including the Client, other consultants, testing laboratories and equipment suppliers, etc.) upon which SLII’s opinion as set out herein is based has not been verified by SLII; SLII makes no representation as to its accuracy and disclaims all liability with respect thereto. SLII disclaims any liability to the Client and to third parties in respect of the publication, reference, quoting, or distribution of this report or any of its contents to and reliance thereon. Quality Assurance The Environment Division of SNCLAVALIN is certified ISO-9001, and as a part of this certification, an internal quality review process has been applied to each project task undertaken by us. Each document is carefully reviewed by core members of the consultancy team and signed off at Director level prior to issue to the client. Draft documents are submitted to the client for comment and acceptance prior to final production. 503406 i November 2011 - Final Emirates Aluminium EMAL Project Environmental Update TABLE OF CONTENTS Page 1 INTRODUCTION ................................................................................................. 1 1.1 Background ...................................................................................................... 1 1.2 Overview of EMAL facilities .............................................................................. 2 1.3 Scope of Work and Methodology ..................................................................... 2 1.4 Report Structure ............................................................................................... 4 1.5 List of Contributors ........................................................................................... 5 2 ENVIRONMENTAL REGULATORY FRAMEWORK.......................................... 6 2.1 Overview .......................................................................................................... 6 2.2 Environmental Permitting Update .................................................................... 6 2.3 Regulation and Supervision Bureau (RSB) ...................................................... 8 2.4 IPPC Guidelines ............................................................................................... 9 2.5 Equator Principles .......................................................................................... 10 2.6 Modifications to Applicable Regulations and Guidelines ............................... 11 2.6.1 Smelter Air Emissions ......................................................................... 11 2.6.2 Power Plant Air Emissions .................................................................. 12 2.6.3 Ambient Air Quality Standards ............................................................ 13 2.6.4 Final Effluent ....................................................................................... 13 2.6.5 Ambient Marine Environment.............................................................. 15 2.6.6 Treated Sewage Effluent .................................................................... 16 2.6.7 Fuel Storage Tanks ............................................................................. 16 2.6.8 Incident Reporting ............................................................................... 18 3 PROJECT DESCRIPTION ................................................................................ 20 3.1 Overview ........................................................................................................ 20 3.2 Design Modifications and Justification ........................................................... 20 3.2.1 Infrastructure ....................................................................................... 22 3.2.2 Power Plant ......................................................................................... 22 3.2.3 Seawater Desalination System ........................................................... 23 3.2.4 Port Facilities and Material Storage & Handling ................................. 24 3.2.5 Reduction ............................................................................................ 26 3.2.6 Carbon ................................................................................................ 26 3.2.7 Casthouse ........................................................................................... 27 3.2.8 Employment ........................................................................................ 27 3.3 Revision of Resource Requirements for Operation Phase ............................ 28 503406 iii November 2011 - Final Emirates Aluminium EMAL Project Environmental Update TABLE OF CONTENTS (cont’d) Page 3.4 Update Project Schedule ............................................................................... 29 3.5 Modifications to Pollution Control Technologies ............................................ 30 3.5.1 Gas Treatment Centers ...................................................................... 30 3.5.2 RTO for Paste Plant ............................................................................ 31 3.5.3 Hot Bath Fumes Treatment ................................................................. 32 3.6 Update Environmental Releases - Operational Phase .................................. 33 3.6.1 Air Emissions Update and Revised Targets ....................................... 33 3.6.2 Greenhouse Gases ............................................................................. 40 3.6.3 Water Management Update ................................................................ 41 3.6.4 Waste Management Update ............................................................... 44 3.7 Construction Phase ........................................................................................ 46 3.7.1 Overview ............................................................................................. 47 3.7.2 Labour Force ....................................................................................... 47 3.7.3 Construction Activities ......................................................................... 48 3.7.4 Temporary Facilities ............................................................................ 50 3.7.5 Temporary Services ............................................................................ 50 3.7.6 Port Facilities and Material Handling .................................................. 52 3.7.7 Construction Camp ............................................................................. 52 3.7.8 Wastewater Management ................................................................... 53 3.7.9 Waste Management ............................................................................ 54 4 DESCRIPTION OF THE ENVIRONMENT ........................................................ 56 4.1 Land Use ........................................................................................................ 56 4.2 Air Quality ....................................................................................................... 56 4.2.1 2007 to 2009 ....................................................................................... 56 4.2.2 2009 to 2011 ....................................................................................... 57 4.3 Soil and Groundwater Quality ........................................................................ 65 4.3.1 2007 Baseline Data ............................................................................. 66 4.3.2 2011 Monitoring Data