Corporate Responsibility Report 2008

Key features

  • Impala Rustenburg and Springs, Mimosa and Zimplats maintained ISO14001 certification
  • No significant incidents or fines
  • Emission of SO2 rose by 39%
  • Total water consumption rose by 36% to 45 million kl
  • Total water withdrawn rose by 19.5% to 26 million kl
  • Total energy consumption rose by 3%

Environmental performance

Management

Implats is mindful of the potential impact that its prospecting, mining, smelting and refining operations may have on the environment in which it operates and, as a minimum, ensures legislative compliance.

The SHEQ Audit Committee of the Board oversees the direction of environmental issues, and environmental performance is reported to this committee on a quarterly basis. During the year, a group executive to oversee safety, health and environmental issues was appointed. This is a significant step forward for the group in the integrated management of environmental issues.

The group is committed to achieving zero harm to the environment, with compliance with legislation as a minimum objective.

Environmental management plans (EMPs) are in place and are being implemented at all operations and were reviewed and updated during the year. Implats is committed to seeking continual improvement and an environmental management system, based on ISO14001 is in place and forms the basis of this.

A total of 66 internal audits and 13 external audits were undertaken during the year.

Impala’s Rustenburg and Springs operations, Mimosa and Zimplats have all maintained their ISO14001 certification. Marula will begin its certification process in FY2009.

ISO14001 certification
OperationDate of certificationRe-certificationFY2008 surveillance audit
Impala RustenburgMay 2003, recertified in June 2006June 2009May 2008
Impala SpringsMay 2000. Last recertified in August 2006April 2009April 2008
MarulaImplementation on an ISO14001-based EMS under way, with certification planned for FY2009
MimosaMay 2007September 2010December 2007
ZimplatsSMC – October 2004November 2008September 2008
 Ngezi – November 2005November 2008September 2008

Compliance

There were no significant breaches of environmental laws, regulations or standards within the group during FY2008, and no fines were imposed. A legal compliance audit was undertaken at Zimplats. No major areas of non-compliance were recorded.

In respect of environmental authorisations, the following is reported:

  • Despite having submitted all applications, little progress has been made towards concluding water use licences at Impala Rustenburg, Marula and Leeuwkop. This situation reflects the capacity shortages experienced by the regulatory authorities and Implats’ experience is shared by other producers in all sectors.
  • An Environmental Impact Report (EIR) and EMP for the smelter expansion were submitted to the North West Department of Agriculture, Conservation and Environment (NW DACE) and the DME during the year. A Record of Decision (ROD) was received from NW DACE in July 2008.
  • Approval by the DME for the Marula Merensky Project EMP was received during the year, as was the EMP for the Leeuwkop Project.
  • DEDET (Department of Economic Development Environment and Tourism) issued a positive Record of Decision (ROD) for the Marula Merensky project.

Incident reporting systems have been implemented at all operations although there are some operational variations for the categorisation of incidents. As the overall management platform is developed in the coming year, so the various systems will be harmonised. Typically, environmental incidents are categorised into four levels depending on the nature of their impact, namely critical, high, moderate and low. There were no critical impact incidents during the year.

The following new key legislation is being considered and plans to ensure compliance are being drawn up and implemented by the South African operations:

  • National Environmental Management: Air Quality Act of 2004
  • National Environmental Management: Waste Management Bill (expected to be promulgated in 2008)
  • New Environmental Impact Assessment regulations.

In Zimbabwe, attention is being given to the implementation of new regulations and statutory instruments under the Environmental Management Act, in particular the recently promulgated statutory instrument of Atmospheric Pollution Control that will require the application for emission licences and compliance with set emission standards for dust, smoke, gases and fumes.

Stakeholder engagement

An important environmental management objective is the establishment and maintenance of open and constructive relationships with all stakeholders in respect of environmental performance. Hotlines, open days, newsletters and community liaison forums all form an integral part of the communication with stakeholders.

Performance

While environmental priorities and the potential for environmental risk vary from site to site, the priorities broadly are focused on preventing pollution (air and water), improving resource usage (water and energy), good practice in respect of waste management and land management.

Material consumption

The efficient use of raw and input materials is promoted both from a cost and environmental conservation perspective.

Primary resources used are water and energy which are discussed in detail below. Other significant raw materials consumed are explosives, oils, grease and grinding media (steel balls) and consumption is monitored. Cyanide is not used in the PGMs recovery process.

Air quality management

Impala Rustenburg SO2 emissions

Sulphur dioxide (SO2) emissions are the major air quality issue for the group’s smelting and refining operations, Impala Rustenburg, Impala Springs and Zimplats.

The Rustenburg Smelters’ emission reduction strategy is based on the management of three critical components: meeting ambient air quality standards, limiting visual emissions and preventing occupational exposures.

Significant capital expenditure has been invested in plant and equipment to limit these emissions, particularly as Impala Rustenburg’s smelter expansion progresses. The commissioning of the new installations, as discussed in the previous year’s report, is on schedule and expected to be in place at the end of calendar 2008. The target for the smelting complex, once the new emission abatement equipment has been commissioned, is less than 16t of SO2 per day.

Good progress has been achieved in recent years in reducing SO2 emissions at the Rustenburg operations, largely owing to the commissioning of the company’s Sulfacid Plant in 2003 and improvements in the availabilities and efficiencies of both the conventional Acid and Sulfacid Plants.

In FY2008, total SO2 emissions for the group amounted to 26 476t, an increase of 39% on the previous year.

Direct SO2emissions
 Total SOemitted/Pt ozTotal kg SO2 emitted/Pt oz
 FY2006FY2007FY2008FY2006FY2007FY2008
Impala Rustenburg10 86310 99018 1845.795.33 
Impala Springs637475342   
Zimplats4 5877 8207 95150.781.8 
Group16 32119 05326 4768.959.4913.9
Air emissions (other than SO2) (t)
 FY2007FY2008
Chlorine (Refineries)1.50.1
Ammonia (Refineries)107268
NOx (from electricity consumed by the group)11 01111 729

The availability of the SO2abatement equipment at the Rustenburg Smelter was good, with an average availability of 99.9% at the conventional Acid Plant and 94.7% at the Sulfacid Plant. The increase in the total sulphur dioxide emissions is as a result of the increased desulphurisation across the furnaces operation. Since the start-up of the third furnace, the residence time (of material within the furnace) has increased, resulting in more SO2 being released by the furnace operations. As a result, more SO2 reported to the Sulfacid Plant, which has a lower sulphur conversion efficiency, resulting in higher sulphur emissions. However, gas capture and treatment over the furnace section will improve significantly as part of the smelter upgrade project.

Rustenburg Smelter – Total SO2 Fixated and emitted (July 2006 - June 2008)

Ambient air quality monitoring was upgraded at both the Impala Rustenburg and Springs operations.

The ambient monitoring network at Impala Rustenburg consists of three ambient monitoring stations that measure meteorological conditions, SO2 and PM10 (particulate matter smaller than 10 microns). In addition to the ambient stations, a comprehensive total dust fallout network is also maintained.

The dust fallout network was expanded from 18 units to a total of 40 units to include all the operations as required by the EMP. The three ambient monitoring stations were re-commissioned in October 2007 and the graph alongside shows the measured daily SO2 levels in the Luka community which is the closest community to the Rustenburg Smelter. Ambient conditions are affected by the cumulative effect of all sources of emissions, not only industrial sources. Monitoring of ambient conditions is one of the management tools that can be used to identify and investigate trends. In the case of the one measured daily average above the National Ambient Standard, no extraordinary plant condition was found and therefore the source of this spike is probably not the Impala Rustenburg Smelter. In addition to this, there was no evidence of a spike at the other two ambient stations so this occurrence was probably due to a very localised emission within the Luka community.

Ambient SO2 (ppb) measured in Luka (October 2007 to June 2008)

Ambient air monitoring in the vicinity of the Refineries indicates only minor and infrequent exceedances against permits. The PM10 and NOx levels, for example are lower in adjacent areas than those recorded in the centre of Springs, the closest city centre. Two further online monitors are being installed, to supplement the online stack monitoring that was implemented in FY2006.

At Marula, the PM10 analysis of the fall-out dust in the vicinity of the mine is well below the standards set by the authorities. The major generators of dust are the tailings dam and dirt roads leading to the shafts and in the vicinity of the shafts.

Climate change and greenhouse gas emissions

Climate change and global warming have been considered by various bodies within Implats, specifically the SHEQ Audit Committee and the SHEQ Executive Committee. The focus of this initiative has been on understanding and reducing the impact of Implats' own greenhouse gas (GHG) emissions and carbon footprint, rather than on external impacts arising from climate change and global warming on the group.

As Implats operations are based in South Africa and Zimbabwe, the group currently has limited exposure to legislation regulating GHG emissions. However, South Africa, by virtue of its dependence on electricity generated from fossil fuels, is a significant global emitter of carbon dioxide and the DME has begun the implementation of an energy efficiency strategy. Implats is a signatory to this strategy and includes targets pertaining to the environment and climate change.

The primary risks that the group faces as a result of climate change in future include physical risks such as water shortages (and hence increased costs) and electricity supply shortages and rising costs associated with cleaner electricity or alternative energy (where users pay for cleaner fuel).

The group also anticipates that there will be opportunities that will present as the global demand for cleaner technology, especially fuel cells, will be of benefit to the platinum industry. A focus on smaller, more energy efficient diesel vehicles to meet legislative requirements, will see the demand for PGMs in autocatalysts increasing.

During the year Implats submitted a response to the Carbon Disclosure Project (CDP) in respect of the CDP6 Greenhouse Gas Emissions Questionnaire. This response will be published on the CDP’s website in due course.

Integral to Implats strategy to reduce its GHG emissions, is the group’s strategy to reduce and optimise its energy usage and energy efficiency. (See discussion below). While the projects and plans that the company is putting in place may not be directly aimed at reducing GHG emissions, it certainly will be a beneficial consequence.

Key climate change indicators appear in the table below. Total direct CO2 emissions (as a result of burning fuel such as coal, diesel, petrol and gases) amounted to 414 132t, 4.5% higher than the previous year. Total indirect CO2 emissions were 2 808 766t, 3.4% higher than in FY2007. The increase in electricity consumption is as a result of commissioning of the third furnace at Impala Rustenburg, the fact that the deeper operations require more ventilation and new shaft developments.

A group policy is currently being developed and, once finalised, will be made available on the company’s website.

Total direct CO2 emissions Total indirect CO2 emissions Sources of direct CO2 emissions
Climate change indicators
 FY2007FY2008
Direct CO2 emissions (t)*396 252414 132
Indirect CO2 emissions (t)2 716 2352 808 766
MWh of indirect energy (electricity purchased)2 777 3362 931 906
Direct energy (GJ)5 661 3775 579 858
Indirect energy (GJ)9 998 41010 554 861
Total energy (GJ)15 659 78716 134 719
*Direct CO2 emissions as a result of burning fuel (coal, diesel, petrol, IBO, natural gas)
**CO2 emissions from energy purchased

Energy management

Energy management has always been of prime concern to the group, but became a critical one during FY2008 during the national energy crisis in the first half of calendar 2008.

Implats is a signatory to the DME’s Efficiency Accord in terms of which the company pledged a 15% decline in total (direct and indirect) energy demand from the 2000 baseline to 2015. In early 2008, Eskom, the national power utility, imposed a 5% permanent reduction in electrical (indirect) energy allocation. Given the group’s expansion plans, this has serious long-term implications.

The group has established an internal working committee to develop and implement an energy and load management programme that will meet the short-term 10% reduction in electricity or indirect usage and the medium-term 15% reduction in total energy.

Total energy consumption (which includes direct and indirect energy) rose by 3% to 16.14 million GJ in FY2008. Energy consumption per ounce of platinum produced was 8.5GJ, an increase of 9.5% per platinum ounce produced.

Total energy consumed (000GJ)
 FY2007FY2008
Impala Rustenburg10 44110 875
Impala Springs2 7892 520
Marula472613
Zimplats1 4681 587
Mimosa491540
Group15 66016 135

Water management

Implats recognises that water is a scarce and valuable resource, and pressure on supply may be further exacerbated by the effects of climate change. The company’s strategy involves the reduction of water consumption, the optimisation of recycling and the mitigation of any negative impacts of its operations on local and regional water resources.

Water usage

To optimise water usage and minimise fresh water consumption at the Rustenburg operations, water conservation programmes include maximising the recycling of water within the company’s operations and by drawing treated effluent into the processing facilities from the Rustenburg Services Trust. The recycling of water from the tailings operation will further improve with additional stormwater storage dams at the tailings and UG2 operation which are going to be constructed in FY2009.

Total water used by the group in FY2008 was 45 million kl, an increase of 35.6% on the previous year. Total water withdrawn amounted to 26 million kl, an increase of 19.5% on FY2007. On a product basis, this was an increase of 27% to 13.6 kl per platinum ounce. However, fresh water consumption by the group decreased by 23.2%.

Total water consumption (1 000kl)*
 FY2007FY2008
Impala Rustenburg24 60829 530
Impala Springs1 3101 186
Marula2 310**4 611
Zimplats2 0786 502
Mimosa2 9723 286
Group33 27845 115
* 1.Total water consumed includes various sources of water and recycled water
* 2.As from 2008 calculation of various water usages was slightly changed to comply with the GRI reporting requirements, thus not all figures are directly comparable with previous years’ data.
**Figures updated after reporting period.
Recycled water used (000kl and % of total water consumed)
 Kl recycled% total consumption
 FY2007FY2008FY2007FY2008
Impala Rustenburg*7 8939 7193233
Impala Springs4574333537
Marula1 2273 6105378
Mimosa8341 2673939
Zimplats1 1484 1164063
Group11 55919 1453442

* Only includes internally recycled water (tailings return and Impala sewage treated effluent)

The percentage of water recycled at the Refineries – at 37% – was the highest recorded by this operation and reflects the increased management focus on this area of operation. The total water consumption at the Rustenburg, Marula, Zimplats and Mimosa operation increased as a result of more accurate water balances.

At Mimosa, the construction of a second return water dam is in progress to reduce spillages and to ensure the availability and use of return water, thereby improving the level of recycling and reducing fresh water usage.

Surface and groundwater quality

The primary concern in respect of water pollution is the potential release of process water containing sulphates, chlorides and nitrates into receiving water bodies. None of Implats’ operations are associated with acid drainage. Groundwater and surface sampling is regularly undertaken at all operations. A regional groundwater model developed in 2003 for the Rustenburg operations is updated regularly and is being used as a management tool for groundwater problem identification and pollution mitigation design should this become necessary. See box on the groundwater model.

The construction of pollution control dams at Impala Rustenburg’s UG2 Concentrator complex, and the No 3/4 tailings dams, which forms part of the water strategy’s objective of improving water quality in receiving water bodies, by minimising discharges, will be completed in FY2009.

Capital expenditure of R60 million has been allocated for water-related projects to be implemented over the next three years.

As part of the expansion at the refineries, an additional pond will be constructed at Impala Springs, to manage effluent and prevent any spillages into water courses. Applications for the necessary permits were submitted to the authorities for this during the year.

At Marula, the monitoring of the surface water by means of chemical analysis is continuing on a monthly basis.

Land and biodiversity management

The group has significant areas of land under management, some 94 022ha excluding Leeuwkop and prospecting activities.

Closure plans have been developed for Impala Rustenburg and Zimplats.

During the year, a number of houses immediately adjacent to the Impala Refineries were purchased and demolished to create a “green belt”.

Rehabilitation

Physical rehabilitation activities continued during the year at Impala Rustenburg, Marula, Mimosa and Zimplats. Opencast mining areas at Impala Rustenburg and at Zimplats are also being rehabilitated as mining progresses. During FY2008, a total area of 68.4ha was rehabilitated.

During FY2008, the Rustenburg operations started the rehabilitation of historical waste sites. The identified sites (five in total) will be rehabilitated by the end of FY2009 at an approximate cost of R8 million covering a combined area of 29ha.

An overall group rehabilitation strategy is being developed.

Biodiversity management

Apart from the Ngezi mine, none of the group’s operations are located in protected areas or in areas of high biodiversity value. The Ngezi mine is located in a national park. Red data species are located in the vicinity of the Marula operations and are catered for in Marula’s EMP. Two endemic tree species were identified in the Marula area: Sekhukhune Elephant Root and Red-berry Grey Karee.

A Biodiversity Action Plan is currently being developed for Impala Rustenburg. The programme will identify any threatened species and habitats and is designed to protect and restore biological systems within the mining area. It will require a partnership with the local authorities to work towards regional biodiversity targets. The plan will be fully implemented by FY2011. See box on our Biodiversity Action Plan.

Impala Springs is a corporate trustee of the Blesbokspruit Environmental Centre, just outside Springs. The centre, which provides environmental education to schools and communities, is located near a wetland site.

Impala Rustenburg
Impala Rustenburg

Groundwater model provides valuable insight

In 2003, Impala Rustenburg commissioned the development of a comprehensive regional groundwater model for the extent of its operations to:

  • Determine potential, current and future impacts on groundwater quality and levels.
  • Identify problem areas and design mitigation measures when required.
  • Improve and refine existing monitoring networks.

This model is reviewed and updated regularly, based on borehole water levels and quality data generated on an ongoing basis. It has allowed Impala to implement a more effective ground and surface water management programme as areas with a potential impact could be identified and control measures proactively put into place. It is possible to design effective mitigation measures as the impact is better understood.


Impala Rustenburg
Impala Rustenburg

Biodiversity Action Plan under development for Impala

Impala Platinum’s Rustenburg operation has begun the development of a Biodiversity Action Plan (BAP), which will be compiled over a four-year period. As an adjunct to this, will be the development of a Heritage Action Plan, which will begin in 2009.

A BAP is an internationally recognised programme addressing threatened species and habitats and is designed to protect and restore biological systems. The original impetus for these plans derives from the 1992 Convention on Biological Diversity (CBD) which, by 2006, 188 countries (including South Africa) had ratified.

Developing the BAP

A crucial element of any BAP is that while it consists of the action plan for a specific area, it is primarily a partnership with government, that works together toward achieving biodiversity targets committed to by the government. This then enables government to develop policy, target priorities and access funding for biodiversity conservation action steps.

A BAP includes:

  • preparing inventories of biological information for selected species or habitats;
  • assessing the conservation status of species within specified ecosystems;
  • creation of targets for conservation and restoration; and
  • establishing budgets, timelines and institutional partnerships for implementing the BAP.

Developing the heritage action plan

The plan also needs to be developed and consists of various specialist impact assessments which are used to identify sites that are protected in terms of the National Heritage Resources Act and to assess the potential impact upon them.

The information gathered is used to develop actions plans to mitigate and manage all identified sites of importance.

Scope of the project

Owing to the size of the current mining area at Impala, as well as the fact that very little information exists for the lease extension and prospecting areas, the scope will include all prospecting operations adjacent to the current mining area.

To assist with the interpretation and implementation of the above-mentioned action plans, a Geographic Information System (GIS) is being established. This is a computerised tool for managing geographic information and is currently widely used to assist with the implementation of these types of projects.

Compliance

A Biodiversity Action Plan will not only ensure legal compliance with current environmental legislation, but will also further align Impala with the concept of sustainable development. The National Heritage Resources Act also states that no site protected under this Act may be disturbed without a permit. It therefore requires a full assessment of the entire Rustenburg operations to identify any possible significant sites and to assess the potential, current and future impact of development on these areas.


Waste management

Waste management strategies have been implemented at all operations. A waste management module is being implemented as part of the SAP management programme, which will assist in the improved management and minimisation of waste. This was unfortunately delayed during FY2008 and will be an area of focus in FY2009.

During the process of mining, significant amounts of ore (that is minerals-bearing material) and waste rock are brought to surface and processed to extract the precious metals. Waste rock and tailings (the slurry left behind when the minerals concentrate is sent on for further processing) are deposited on surface in waste rock dumps and tailings dams respectively.

These dumps represent a potential source of ground and surface water contamination. Programmes which include landscaping and vegetation, as appropriate to the area of operation and designated land use are in place to minimise this impact.

Key production statistics
 FY2007FY2008
Ore milled (000t)21 56421 247
Tailings disposed of on tailings dams (000t)17 41319 162
Dump slag treated (000t)302365
Furnace and converter slag generated and treated (000t)842903
Total slag treated (000t)1 2081 268
Platinum produced (000oz)2 0261 865

Woodchips and sewage sludge from the Rustenburg operations continue to be collected for the manufacture of compost by Monontsha, a community-based business. This is then used in the rehabilitation of the tailings dam slopes. An area of 34,8ha was rehabilitated during the year.

The Refineries in Springs generates two waste streams that are disposed of in landfills: salt is generated by the Precious Metals Refinery crystalliser which came into full operation in February 2007. By the end of FY2008, a total of 5 000t had been disposed of. Test work into alternative means of disposal have continued and expanded.

Boiler ash is the largest waste stream, and was previously not accounted for. Some 27 000t was produced during the year, and was used for brick manufacturing.

Rehabilitation provisions

The rehabilitation provisions and liabilities are indicated in the table below.

Rehabilitation liabilities and provisions (R million)
 Rehabilitation liabilityRehabilitation provision
  FY2007FY2008FY2007 FY2008
Impala Rustenburg*498.8540.2213.4227.0
Marula*63.169.721.136.2
Mimosa102.2121.987.351.2
Zimplats11.613.78.39.7
Group675.7 745.5330.1 324.2

* In line with financial requirements
Note: There is no legislation in place to regulate rehabilitation liabilities and provisions for Impala Springs.

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Implats - Corporate Responsibility Report 2008