GOLDENLAY LIMITED P.O. Box 90444 Baluba Road, Luanshya ENVIRONMENTAL AND SOCIAL IMPACT STATEMENT FOR THE DEVELOPMENT OF KAFUBU FARM NDOLA DISTRICT OCTOBER, 2013 PREPARED BY GREENLINE ENVIRONMENTAL SOLUTIONS LTD, LUSAKA +260 966/977-656697 ENVIRONMENTAL AND SOCIAL IMPACT STATEMENT FOR THE DEVELOPMENT OF KAFUBU FARM EXECUTIVE SUMMARY Overview The government of the Republic of Zambia has in the past made pronouncements to make the agricultural sector the main economic earner following instabilities in copper prices and it being a non-renewable resource. GoldenLay limited is Zambian registered company incorporated on 6th July, 2007. In the last five years, GoldenLay Limited has undergone increased expansion coupled with high demand in its table eggs across the country. Due to this expansion, GoldenLay Limited identified Kafubu Dairy Farm as a potential site for the implementation of its expansion program given the fact that the farm had not been fully utilised to its potential in the last ten years. The Kafubu Farm project was also necessitated by the increased demand for Soya beans, Maize and Wheat which form a significant portion of raw material requirements for feed production for its poultry operations in Baluba. Project ownership status The project will be undertaken by GoldenLay limited. The following are the shareholders and directors of the company; NAME POSITION NATIONALITY Mohammed Bushary Managing Director Sri-Lankan Fletcher Michael Broad Operations Director Australian Peter Macsporran Non- Executive Director Zimbabwean Paul Wythe Non- Executive Director British NAME NATIONALITY % SHAREHOLDING GoldenLay Agri Limited N/A 99 Fletcher Michael Broad Australian 1 Project location Kafubu farm (formerly Kafubu dairy farm) is located in Ndola District of the Copperbelt Province. It is approximately 16Km from the Ndola CBD and about 2.5Km off the Ndola – Kitwe highway. The farm No. 9424 is 2,964 Ha in extent and is on title No. 22607 with a 99 year lease from the Zambian government. Kafubu farm lies between 1285m and 1241m MASL. The coordinates of the farm are given below. 1 | Page ENVIRONMENTAL AND SOCIAL IMPACT STATEMENT FOR THE DEVELOPMENT OF KAFUBU FARM SIDES ANGLES OF DIRECTION COORDINATES SYSTEM Metres (local-metres) Y X CONSTANT -0.00 +1440000.00 A- B 3591.33 305° 48‘ 41" A 50098.68 615.36 B - C 6135.53 26° 12‘ 19" B 47186.29 2716.71 C- D 1743.96 86°05‘ 37" C 49895.67 8221.61 D –E 1561.16 105° 53‘ 51" D 51635.58 8340.42 E- F 3870.70 179° 25‘ 05" E 53137.04 7912.79 F- A 4606.07 221° 55‘ 35" F 53176.35 4042.29 Project objectives The overall company objective of the Kafubu farm project is to increase the production of table eggs to meet the current market demand. This will be achieved through the expansion of the farming operations at Kafubu farm. Other objectives of the project will be: ‹ To be self-sufficient in the production of in-house raw materials for the manufacture of feed. This will entail the cultivation of Soya Beans, Maize and Wheat on the farm. ‹ Revamp animal husbandry operations through introduction of dairy and beef cattle on the farm to restore the original operations undertaken by the previous owners and supplement the beef and dairy market on the Copperbelt. ‹ To increase the production for GoldenLay through new poultry operations at Kafubu farm. The main objective of the Environmental Impact Assessment is to examine impacts on ecological units and processes of the project area including impacts on physical, biological, socio-economic and cultural environment and to provide mitigation measures for identified impacts. Project activities GoldenLay Limited intends to revamp and develop the farm into a commercial farm to grow Soya beans, Maize and Wheat. The farm will utilise summer (rain fed) and winter (irrigated) cropping systems. At full production capacity the farm estimates to harvest 675 Mt Soya beans, 450 Mt Wheat and 1200 Mt Maize respectively. The harvested crops will be used as raw materials for the production of stock feed at GoldenLay for the table eggs production. Winter cropping will be carried out by way of irrigation using 6 centre pivots on the farm that will draw water from the ten (10) boreholes to be drilled. The Kafubu farm project will also involve the construction of 6 poultry houses for layers and 2 for rearing houses. It will also incorporate cattle ranching for beef and dairy animals. The project 2 | Page ENVIRONMENTAL AND SOCIAL IMPACT STATEMENT FOR THE DEVELOPMENT OF KAFUBU FARM will also involve the operation of a complete state of the art milking parlour with capacity to handle 2500L of raw milk per day from its proposed 50 dairy cows. Revamping and rehabilitation of the existing infrastructure will be undertaken by the developer as part of the project implementation plan. The proposed project will include installation of centre pivots, sinking of boreholes and extension and distribution of the existing ZESCO power line and construction of fuel storage tank, chemical/fertilizer store, staff housing compound and other support infrastructure. The farm is an existing operation with 1800Ha of used arable land that will be utilized for cropping operations. Farm operations will involve land clearing, cultivation, planting, pest control systems and harvesting. Other operations will involve rearing of birds (pullets), feeding and medication to point of lay chicken, production of eggs and rearing of beef cattle for commercial purposes including dairy animals. The eggs produced will be distributed throughout the region for sale. Project investment The total project investment budgeted for the revamping, development, implementation and operation of the Kafubu farm project by GoldenLay limited is Nine Million United States Dollars (US $ 9,000,000). The project proponent has a valid investment licence obtained from the Zambia Investment Centre. Project alternatives GoldenLay has considered alternative methods and options for the implementation of the project. These relate to site, processing methods, waste management options and farming method alternatives. The best options likely to prevent environmental impacts have been chosen for the implementation of the project. Project environmental baseline Kafubu Farm is located in Ndola District which lies on an altitude of 1269m ASL. Generally, Ndola experiences a sub-tropical climate that is strongly seasonal, with three distinct seasons. Climatic conditions are characteristic of the second agro-ecological region of Zambia with a pronounced dry and rainy season. The rainy season start in November ending in April with a total annual rain fall ranging from 1000 to 1300 mm. Air quality Kafubu farm and the surrounding areas have no baseline data on the air quality and dust. The area has no industrial activity and is a designated farming area anthropogenically disturbed by years of farming activities. The project site is surrounded by establishments of agricultural nature such as Battledore and Simpito’s farms. On analysis of the area, it was concluded that the air quality is generally good owing to the lack of industrial activity likely to cause air pollution. 3 | Page ENVIRONMENTAL AND SOCIAL IMPACT STATEMENT FOR THE DEVELOPMENT OF KAFUBU FARM Geology The geology of Ndola area is characterized by numerous rock-types. It is mainly underlain by deep weathered sedimentary rocks of the Katanga Super group, which can be further subdivided into the Kundelungu Series, but also by the Mwashia Group and the Roan and Mine Groups. The characteristic features include the calcareous mudstone and siltstone along the Zambia-Congo DR border from the southeast to the northwest in Misundu area. Hydrology The nearest source of surface water is the Kafubu River. The Kafubu River has a considerable catchment extending to the DRC border and measures approximately 539km2. The average mean annual runoff (MAR) has been estimated at 85mm or 45,815ML/yr. The Kafubu Dam, located 3.5km from the farms Eastern boundary, is a major source of water for the City of Ndola. Kafubu farm has two (02) existing boreholes located at the old main office building and the existing farm house. The boreholes are currently only used for domestic water supply to the house and the office building by the care takers of the farm. According to the samples obtained and analyzed by the UNZA environmental Laboratory, the water contains high levels of feacal and total coliforms making it unfit for human usage. The water is natural ground water and is untreated thus contains high levels of ferrous (Fe2+). Soils The project site is located in an area of intermediate to mafic metamorphosed sedimentary geology. These metamorphic rocks give rise to red, well drained soils throughout the landscape, except in low lying wetland locations. In upland and mid-slope positions, the soils are generally deep, red and orange sandy loams and sandy clay loams in the surface, overlying similar red coarse grained sandy clays and clays. Soil depth generally exceeds 100 cm. In some locations however, the soil profile has a layer of laterite gravels in the subsoil even though the soil depth still exceeds 100cm. Five soil types were identified and mapped in this reconnaissance soil survey. These are moderately deep to deep yellowish red to orange Sandy Loams, Deep red Sandy Clay Loams and Sandy Clays over Red Clays, Deep pale yellow loamy sands over yellow sandy, Wetland Margin Sandy Soils and Wetland Areas. Noise and vibration Kafubu farm is located off the industrial set up of the Ndola Central business district. The area is a designated farming area with a number of farms surrounding the project site. The farm area has a number of settlements surrounding the site. Noise levels measured in the project area are within acceptable audible levels consistent with an agricultural setting without heavy machinery and industrial activity.