Environmental Impact Assessment; NCSC Cement Plant 2008 Environmental Impact Assessment Report National Cement Share Company Prepared by: Fitsum Consultancy Services December 2008 IMPORTANT DISCLAIMER: This Environmental Impact Assessment Report was prepared by Fitsum Consultancy Services in 2008. It was prepared exclusively for the Ethiopian government authorities in relation to the application for all relevant environmental approvals prior to project development. Schulze Global Investments LLC (Ethiopia Branch) (“SGI ET”) has only inserted this ecover pag and a condensed table of contents (outlining relevant sections of the report) on page 2. Therefore, SGI ET makes no representation and disclaims all liability regarding the accuracy, reliability, depth, relevance, or sufficiency of the information included or omitted in this report. SGI ET disclaims liability for all previous, current, or subsequent conditions that may affect the report including but not limited to fraud, mistake, omission, ignorance, error, or change of conditions. Therefore, SGI ET is not liable for any loss or damage resulting from or relating in any way to the information presented in the report however it may be caused (including but not limited to negligence). 1 | Fitsum Consultancy Services Environmental Impact Assessment; NCSC Cement Plant 2008 Environmental Impact Assessment (EIA) Report Outline (sections relevant to SGI’s Double Bottom Line Impact Report) TABLE OF CONTENTS 2. PROJECT DESCRIPTION .............................................................................................................................. 9 5. BASELINE ENVIRONMENTAL AND SOCIO- ECONOMIC CONDITION ............................................... 117 5.1 Baseline Environmental Conditions of the Project Site ......................................................................... 117 5.1.1 Location ................................................................................................................................................................... 117 5.1.2 Topography and Slopes ......................................................................................................................................... 117 5.1.3 Air .............................................................................................................................................................................. 119 5.1.4 Noise ........................................................................................................................................................................ 119 5.1.5 Water Resources Quality ....................................................................................................................................... 119 5.1.6 Geology .................................................................................................................................................................... 119 5.1.7 Water Resources .................................................................................................................................................... 120 5.1.8 Vegetation ................................................................................................................................................................ 121 5.1.9 Wildlife ...................................................................................................................................................................... 121 5.1.10 Soil Cover .............................................................................................................................................................. 121 5.1.11 Land use ................................................................................................................................................................ 122 5.1.12 Sensitive and Unique Landscapes .................................................................................................................... 122 5.1.13 Cultural Heritage .................................................................................................................................................. 122 5.2 Baseline Socio- Economic Condition of the Project Site ....................................................................... 123 6. POTENTIAL IMPACT AND MITIGATION MEASURE .............................................................................. 127 6.1. Potential Impact .......................................................................................................................................... 127 6.2. Identified Impact and Mitigation Measure ............................................................................................... 129 6.2.1. Mining operation Expected Impacts and Mitigations ................................................................................................ 129 6.2.2. Cement Production Identified Impacts and Mitigations .................................................................................... 133 7. COMMUNITY CONSULTATION ................................................................................................................. 149 7.1 Communities concerns ............................................................................................................................... 149 7.2 Community expectations ............................................................................................................................ 150 8. ENVIRONMENTAL MANAGEMENT AND MITIGATION PLAN ............................................................... 153 8.1 Air Quality Management ............................................................................................................................. 153 8.2 Occupational Health Management ........................................................................................................... 153 8.3. Quarry Land and Waste Management .................................................................................................... 154 8.4 Energy Conservation ................................................................................................................................. 154 2 | Fitsum Consultancy Services Environmental Impact Assessment; NCSC Cement Plant 2008 1. INTRODUCTION 1.1. General Overview The investment climate in the country has improved since 1991 as a result of policy changes and formulation of the necessary legal codes. However, in Ethiopia in general and in DDA in particular investment in the manufacturing sector has remained at a rather low level as compared to other sectors. Therefore, in view of the manufacturing sector’s importance for economic development a lot need to be done toward attracting investment into the manufacturing sector of DDA. The DireDawa Administration has many favorable conditions for industrialization. In addition to the existing natural resources which can be used as a basis for industrialization, the Administration is relatively well developed in terms of social and economic infrastructures, as compared to other regions of the country. The strategic location, availability of basic social and economic infrastructures, better supply of technically skilled human resources as compared to most of the regions of the country makes DireDawa suitable for attracting investment. The DDA has a number of mineral resources that could be utilized as industrial inputs and construction raw materials. However, of the various minerals so far investigated only few are utilized to some extent. Among the construction and industrial minerals limestone, sandstone, gravel for aggregate, dimension and cut stone, feldspar are the major ones. There are also indications for the existence of metallic mineral resources such as pegmatite and mica for electronic and optical uses. Except for limestone and clay, the potential of the mineral sector of the Administration is not yet developed. Considering the existing mineral resources in the Administration and assuming some to be imported from neighboring areas, a number of products that could be utilized in the construction, industrial and other sectors of the economy have been identified. Cement is a finely ground hydraulic binding medium for mortar and concrete consisting substantially compounds of calcium oxide with silicon dioxide, aluminum oxide and ferric oxide which have been formed by sintering or fusion. When mixed with water, cement hardens both in airflow in separators of various kinds. Cement is a bonding agent for 3 | Fitsum Consultancy Services Environmental Impact Assessment; NCSC Cement Plant 2008 materials and also it is a finely powdered substance, which possesses strong adhesive power when combined with water. In construction and engineering works, the word cement means hydraulic cement, which is by far different from other bonding agents such as adhesive, asphalt and commercial clay, epoxy resin, glue and mucilage. Among the cementing materials, the most common and widely used in construction is the Portland cement. This hydraulic cement is produced by burning an intimate mixture of clay and limestone materials and grinding the resulting clinker to a fine powder, usually with few portions of gypsum to retard the set. Other hydraulic cements of vital importance in construction and engineering works can be produced by using Portland cement as a base material. These include:- • Portland blast furnace slag cement, • Oil- well Cement, • Natural Cement, • Alimonies Cement, and • Expansive