EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 Terengganu for Eastern Steel Sdn. Bhd. Date: October 2019 CHAPTER 1 INTRODUCTION 1.1 TITLE OF PROJECT This Environmental Impact Assessment (EIA) report is titled: “Proposed Development of 55MW Gas Fired Power Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Terengganu for Eastern Steel Sdn. Bhd.” This Environmental Impact Assessment (EIA) study is carried out for proposed development of Power Plant and New Plant Components that will be develop in the existing Integrated Iron and Steel Mill (IISM) operated by Eastern Steel Sdn Bhd located in Teluk Kalong Industrial Estate, Kemaman, Terengganu. An EIA study is deemed required based on the following: a. Compliance with EIA Approval Conditions No 11 b. DOE’s reply letter dated 19 October 2018 [ref. no: AS(PN)/37/101/000/118 Jilid 4()]. c. Compliance with EIA Order 2015 under prescribed activities. In order to address the current operation and proposed new components, the EIA study will address the cumulative impacts from current Phase 1 operations and with the proposed plant components, as well as the Production Office, Worker Quarter and Administrative Building. Hereinafter, it shall be referred to as “the Project” in this report. 1.2 PROJECT BACKGROUND Eastern Steel Sdn. Bhd. (hereinafter referred to as “Eastern Steel” or “Project Proponent”) is the owner and operator of an Integrated Iron and Steel Mill (IISM) on Lot 6293, 6294, 60129, 60130 and 60131 within the Teluk Kalung Industrial Estate (TKIE) in Kemaman, Terengganu. The overall IISM based on its conception planning is to be developed in 2 main phases – Phase 1 and Future Phase. Phase 1 is planned for maximum production capacity of 1.57 mil MT/year of iron and steel products, while the Future Phase will have an overall production capacity of 5 mil MT/year for iron and steel products, including the downstream steel products such as coils, wire, plates and others. The components that has been developed under Phase 1 in 2012 and currently in operation are: Page 1-1 EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 Terengganu for Eastern Steel Sdn. Bhd. Date: October 2019 • Sinter Plant, • Blast Furnace, • Steel Converter, • Ladle Furnace, • Continuous Caster (Slab), • Continuous Caster (Round/ Rectangular), • Oxygen Plant, and • Raw Material Storage Yard. Details of IISM components for Phase 1 and Future Phase in Table 1-1. In terms of physical development, the Phase 1 was developed on land area of about 358 ac. while the remaining 850 ac. of land is designated for Future Phase. The overall IISM occupies total land area of approximately 1,208 ac. In this EIA study, Eastern Steel is proposing to complete the Phase 1 development components as follows: • 55 MW Gas Fired Power Plant utilising waste gas (Blast Furnace Gas and Converter Gas), • Slag Metal Recovery Plant (cooling and physical separation only), • Continuous Caster (Billet) (or known as “Billet Plant”), and • Coking Plant All the above components will be constructed within the existing IISM area. To support the operation and management of IISM, a new Production Office, Worker Quarter and Administrative Building are proposed to be developed within the IISM land area. Table 1-1 Status of IISM Development Phase 1 Future No. Component Maximum Remarks Size Unit Phase Capacity 4.45 mil Phase 1 1. Sinter Plant 2.3 mil MT/year 100 m2 2 MT/year In operation 3 600 m 2.98 mil Phase 1 2. Blast Furnace 1.57 mil MT/year 1 1080 m3 MT/year In operation 3.43 mil Phase 1 3. Steel Converter 1.57 mil MT/year 60 t 2 MT/year In operation 3.43 mil Phase 1 4. Ladle Furnace 1.57 mil MT/year 65 t 2 MT/year In operation Continuous Caster 1.685 mil Phase 1 5. (Slab) MT/year In operation Continuous Caster 1.5 mil MT/year - 2 1.685 mil Phase 1 6. (Round/ MT/year In operation Rectangular) Page 1-2 EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 Terengganu for Eastern Steel Sdn. Bhd. Date: October 2019 Phase 1 Future No. Component Maximum Remarks Size Unit Phase Capacity Raw Material 350,000 3.22 mil Phase 1 7. 2.28 mil MT/year 1 Storage Yard m2 MT/year In operation Wastewater 1.095 mil 8. 0.73 mil m3/year - 1 Future Treatment Plant 1 m3/year 10,000 180 mil 240 mil m3/year Phase 1 9. Oxygen Plant m3/hr 2 m3/year (liq. O2) In operation per unit X 5 unit Lime 0.198 mil 0.702 mil 10. Manufacturing - 1 Future MT/year MT/year Plant 5 m3 0.75 mil 11. Pellet Plant 0.25 mil MT/year Roasting 1 Future MT/year Furnace 8 x 18 In progress holes 2.2 mil 12. Coking Plant 0.8 mil MT/year - of Coke MT/year construction Oven 3.0 mil 13. Hot Rolling Mill - - - Future MT/year 0.8 mil 14. Cold Rolling Mill - - - Future MT/year 0.2 mil 15. Galvanising Plant - - - Future MT/year 0.1 mil 16. Pre-Painting Plant - - - Future MT/year 1.0 mil 17. Plate Mill - - - Future MT/year 0.75 mil 18. Section Mill - - - Future MT/year 1.0 mil 19. Bar Mill - - - Future MT/year 0.5 mil 20. Wire Rod Mill - - - Future MT/year Seamless Pipe 0.5 mil 21. - - - Future Mill MT/year Acid Regeneration 24003 22. - - - Future Plant m3/year Wastewater 18.25 mil 23. - - - Future Treatment Plant 2 m3/year 24. Conveyor System Convey raw material from Kemaman Port to the Mill Future This Environmental Impact Assessment (EIA) is prepared to present the identification and assessment of key environmental issues arising from the proposed Project and the issues of concern to be assessed during its implementation. In general, EIA will assess impacts Page 1-3 EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 Terengganu for Eastern Steel Sdn. Bhd. Date: October 2019 arising from the proposed Project as well as cumulative impacts from operation of Project and existing plants. 1.3 PROJECT LOCATION The Proposed Project will be developed within the existing plant located on Lot 6294 and partially of Lot 60129 and Lot 60131 in the Teluk Kalung Industrial Estate, Kemaman, Terengganu as shown in Figure 1-1. The entire IISM is located at Lot 6293, 6294, 60129, 60130 and 60131 within Teluk Kalung Industrial Estate (TKIE). Location plan of the IISM plant within TKIE is shown in Figure 1-2. Total overall IISM facility occupies approximately 1,208 ac. of land. Phase 1 of the development covers an area of 358 ac. Whilst the remaining 850 ac. Of land is designated for Future Phases. The Global Positioning System (GPS) coordinates for Eastern Steel plant boundaries are listed in Table 1-2. Table 1-2 Project Boundaries Coordinate No Latitude Longitude 1 N40 16’ 54.24” E1030 26’ 2.63” 2 N40 16’ 58.35” E1030 25’ 34.84” 3 N40 16’ 58.35” E1030 25’ 11.83” 4 N40 17’ 15.03” E1030 25’ 11.88” 5 N40 17’ 15.03” E1030 25’ 0.80” 6 N40 17’ 24.5” E1030 25’ 02.3” 7 N40 17’ 32.3” E1030 25’ 11.2” 8 N40 17’ 46.8” E1030 25’ 10.0” 9 N40 17’ 47.8” E1030 25’ 01.2” 10 N40 18’ 20.4” E1030 25’ 01.2” 11 N40 18’ 32.5” E1030 25’ 26.9” 12 N40 18’ 32.5” E1030 26’ 16.8” 13 N40 17’ 50.6” E1030 26’ 16.8” 14 N40 17’ 35.6” E1030 26’ 09.8” 15 N40 17’ 26.38” E1030 26’ 05.65” 16 N40 17’ 11.22” E1030 26’ 03.74” Source: Eastern Steel, 2019 The TKIE is accessible by using the Federal Route 3, the main coastal road link and later Federal Route 145 (Jalan Kemaman-Dungun) connecting Kijal to Dungun. It also can be access via the Teluk Kalung Bypass Road. The industrial estate is also supported by the Kemaman Port which facilitates the import of raw materials and export of products. Page 1-4 EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 Terengganu for Eastern Steel Sdn. Bhd. Date: October 2019 LOCATION PLAN New Worker Quarter & Administrative Building ESSB LAND New 55MW Gas Fired Power Plant Coking Plant KEY PLAN (Approved Component) New Production Office Relocation New Billet Plant LEGEND: New Slag Metal Project Site Recovery Plant New Components Source: Eastern Steel, 2019; MPK,2019 Figure 1-1 Layout of Proposed Project at Integrated Iron and Steel Mill (IISM) Page 1-5 EIA for the Proposed Development of 55MW Gas Fired Power Project No: P18006 Plant and New Plant Components at the Integrated Iron and Steel Mill, Teluk Kalung Industrial Estate, Kemaman, Revision: 0 Terengganu for Eastern Steel Sdn. Bhd. Date: October 2019 Source(s): Google Map, 2019, & Eastern Steel, 2019 LEGEND: Eastern Steel Sdn.