DRDGOLD’s policy is to comply with all the relevant national, provincial and local legislation and to strive to achieve best practice in terms of occupational health, safety and environmental management. DRDGOLD recognises the right of every employee to a safe and healthy working environment.
Each operation has a safety department which reports to the general manager of the mine and to the general manger responsible for projects across DRDGOLD, as well as a Health and Safety Committee on which unions and employees are represented. Management holds a monthly forum meeting with the unions at which members of this committee are present. Health and safety issues are among the matters discussed at these sessions.
Compliance audits are conducted by the safety department at each operation and full safety audits of specific workplaces are carried out through ‘hot spot’ visits by management and union representatives.
DRDGOLD regrets to report the death of four employees, one of whom was a contractor, during the year under review (FY07: 6). Two deaths were at Blyvoor and two at ERPM. Falls of ground (FOG) remain the principal cause, with gravity-related falls of ground accounting for two fatalities. The third was the result of a truck and tramming incident and the fourth occurred when a concrete silo collapsed in the wrong direction as it was being demolished.
The lost-time injury frequency rate (LTIFR) deteriorated at Blyvoor, from 7.85 in FY07 to 8.67 in FY08, and at Crown, from 5.99 in FY07 to 6.24 in FY08. The LTIFR at ERPM, however, improved significantly from 17.73 in FY07 to 10.94 in FY08.
While the reportable injury frequency rate (RIFR) at Crown regressed from 2.10 in FY07 to 2.54 in FY08, the regression was only slight at Blyvoor, from 3.81 in FY07 to 3.89 in FY08. ERPM showed a notable improvement, from 8.27 in FY07 to 4.49 in FY08.
More accidents are caused by falls of ground than any other factor, with gravity-related and seismic falls of ground accounting for over 34% of reportable accidents. Trucks and tramming incidents come next, being responsible for 13% of all reportable accidents.
During the year Blyvoor lost 2 220 shifts through accidents, Crown 253 and ERPM 2 610.
| Name and age | Date of accident | Operation and occupation | Home | Family |
|---|---|---|---|---|
| Samuel Vini (52) | 5 September 2007 | ERPM Driver of Hydraulic Picker | Welkom, Free State Province | Mr Vini was married with two children. |
| Paul Ngxakazela (42) | 7 September 2007 | ERPM Rockdrill Operator | Germiston, Gauteng Province | Mr Ngxakazela was married with two children. |
| Ncedile Loloni (45) | 12 October 2007 | Blyvoor Loco Guard | Tabankulu, Eastern Cape Province | Mr Loloni was married with six children. |
| Abram Pwetwe (41) | 19 October 2007 | Blyvoor Stoper | Ventersdorp, North West Province | Mr Pwetwe was not married. |
DRDGOLD regards the development of a safety mindset among all employees as a critical aspect of safety, and a number of behaviour-based safety interventions are in place. The ‘Before You Work’ campaign, which focuses on making workplaces safe before work begins, has been successfully implemented at all operations. Industrial theatre is used at Blyvoor in the communication of safety issues. Employees have been trained as actors, and perform regularly at safety meetings.
A special behaviour-based safety intervention was initiated at Blyvoor towards the end of FY08. This initiative focuses on the reduction of risky behaviour and encourages safe practices. The first part of the training for this intervention started in August 2008 and the second part will be conducted during October 2008. Each course runs for two weeks after which a system is designed. Pilot site implementation will start in December 2008.
During the year under review, a campaign was launched at all operations to emphasise the importance of Sections 22 and 23 of the Mine Health and Safety Act. These sections focus on the rights and duties of employees with regard to workplace safety, for example, the right to withdraw from an unsafe working place.
Drives to prevent falls of ground and to raise awareness are continuing at the underground operations. These focus on early morning inspections, mid-shift barring activities and the timely installation of temporary and permanent support. Seismic monitoring remains key to DRDGOLD’s efforts to prevent falls of ground.
In FY07 the concept of a mini risk assessment – requiring team members to carry out a risk assessment before starting work –was introduced at Crown plant and this campaign was rolled out to the City and Knights plants during FY08.
In addition to the initiatives described above, a number of other campaigns were launched. Trucks and tramming as well as winches and rigging were put under the spotlight at Blyvoor, where a safety day was also introduced. Work in high risk areas is stopped and the focus for the day is on the safety of employees in those workplaces. Campaigns to draw attention to the importance of protecting eyes, hands and fingers were started at Crown.
Developed at Blyvoor and regarded as an effective safety management tool, a safety barometer has been extended to all operations. This barometer determines the risk rating for each workplace, based on the number and type of risks within that area. A simple classification then indicates the management level at which corrective action needs to be taken.
During the year under review Blyvoor won the Association of West Rand Mine Managers Inter-mine Safety Competition for the tenth year in succession. The rules of this competition are based on reportable injury frequency rates with an additional penalty for fatalities. On 8 February 2008, No 6 Shaft reached 750 000 fatality-free shifts; on 12 May 2008, No 4 Shaft completed one million fatality-free shifts; and, on 23 June 2008, the mine as a whole achieved one million fatality-free shifts.
A particular area of focus for FY09 is the prevention of fall of ground incidents. A new safety campaign to address this is being workshopped at the underground operations and is scheduled for implementation during the second quarter.
The provision of primary health care to all employees is central to DRDGOLD’s Health and Safety Policy. Secondary health care is offered where suitable infrastructure is available.
Primary health care, including occupational health and medical surveillance, at the three operations is outsourced to reputable service providers in the field. Representatives of management and organised labour belong to the lifestyle forums that have been set up at each operation. Every quarter the lifestyle team embarks on an education drive, both on the mine and in the surrounding communities, and covers such aspects as HIV/Aids, drug and alcohol awareness, sport and recreation, and nutrition.
The major occupational health care challenges that DRDGOLD faces at its underground mines, Blyvoor and ERPM, are noiseinduced hearing loss (NIHL), occupational lung disease (OLD) and tuberculosis (TB). The use of noisy equipment, such as drills and fans, is the major cause of NIHL while exposure to silica dust makes those employees working underground susceptible to OLD. Employees who are HIV positive and who are exposed to silica are at substantially increased risk of contracting TB. The main challenges at Crown are NIHL and TB.
DRDGOLD’s occupational health strategy has two pillars: trying to eliminate or reduce the cause of health problems and regular medical monitoring of employees, particularly those most at risk, in an effort to prevent such problems occurring and to detect symptoms early.
To determine the status of occupational health at DRDGOLD and to set objectives for the future, a baseline occupational health audit was conducted at all operations during FY07. Following this, project planning is under way for the implementation of a hearing protection programme.
Major focus areas in FY08 have included a programme to reduce the sound level of rockdrills and fans, and reinforcing procedures regarding the use of hearing protection devices. During FY08, the programme introduced to reduce the sound level of equipment progressed relatively well at Blyvoor where 75% of all rockdrills have been muffled. This reduces the sound levels by approximately 10 decibels. In addition, 90% of all fan installations have also been silenced. At ERPM, the process of installing muffles will start by the end of October 2008. Currently, 60% of all fan installations have been silenced; by June 2009, this programme will be complete. In terms of the reduction of dust at tips, at Blyvoor 40% of all tips have had foggers installed to reduce dust emissions. At ERPM, the installation of foggers has started.
DRDGOLD’s occupational health care programme at Blyvoor, ERPM and Crown comprises initial, periodic and exit medical examinations. At Blyvoor and ERPM, the following takes place: heat tolerance screening; diagnosis and therapy for TB, multi-drug resistant TB (MDR TB) and extremely drug resistant TB (XDR TB); the keeping of statutory records; and the submission of compensation claims to the Medical Bureau for Occupational Diseases. Details for health indicators at these two operations in FY08 appear in the table below.
During FY08 at DRDGOLD SA, no new cases of TB were identified; and one case of compensable NIHL was diagnosed, compared with 13 in FY07.
At Blyvoor, the provision of health care, including the occupational health programme, has been outsourced to Healthshare Health Solutions. Primary health care is available 24 hours per day at two on-mine clinics. A doctor serves both clinics, which employ a total of 11 nurses and nursing assistants. Secondary and tertiary health care is available to Blyvoor employees at the Sir Albert Medical Centre in Randfontein. The mine subsidises the total cost of this service.
The Blyvoor lifestyle team identified five community development workers who were trained and certificated by the North West Province’s Department of Health. These voluntary workers visit homes in the surrounding area, educating and counselling members of the community on various health issues such as HIV/Aids and TB. Every quarter an education drive is carried out both on mine property and in the community to raise awareness about HIV/Aids and the dangers of drugs and alcohol. At the same time the importance of sport, recreation and good nutrition is emphasised. Since the establishment of the lifestyle team, there has been a significant increase in the numbers of community members attending the community clinic on Blyvoor property, from an average number of 567 people per month in FY07 to 964 per month in FY08. The number of condoms distributed by the clinic has increased from an average of 227 per month in FY07 to 778 per month in FY08.
Health care at ERPM is outsourced to Life Healthcare and primary health care is available to employees at the on-site clinic. The mine also has an occupational health clinic, situated at Far East Vertical Shaft, which is staffed by a doctor and four nursing sisters.
The Caritas Care Home, which operates from premises donated by ERPM, is a hospice to employees and people from the wider Ekurhuleni area.
All Crown employees are covered by a medical aid scheme. An occupational health clinic, staffed by a full-time occupational health practitioner and a part-time doctor, handles medical surveillance and the treatment of NIHL and TB.
| Blyvoor | 2008 | 2007 | |
|---|---|---|---|
| Noise-induced hearing loss (NIHL) | Number of diagnostic audiograms performed | 49 | 113 |
| Submission for possible compensation | 27 | 75 | |
| Cases compensated | 22 | 75 | |
| Tuberculosis (TB)† | Monthly prevalence rate per 100 000 employees | 2 512 | 2 897 |
| Occupational lung disease (OLD) | Number of cases submitted to MBOD†† | 105 | 75 |
| ERPM | |||
| NIHL | Number of diagnostic audiograms performed | 37 | 27 |
| Submission for possible compensation | 27 | 27 | |
| Cases compensated | 4 | – | |
| TB† | Monthly prevalence rate per 100 000 employees | 1 956 | 1 695 |
| OLD | Number of cases submitted to MBOD†† | 22 | 5 |
| † | Blyvoor and ERPM each had seven reported cases of MDR TB during the year. |
| †† | Medical Bureau for Occupational Diseases |
DRDGOLD recognises that HIV/AIDS is a serious threat to the well-being of employees, the company and the industry. While recognising that there is no simple method of countering this threat, the company’s strategy includes the following:
The management of HIV/Aids at Blyvoor is based on prevention and treatment. A joint management/union initiative, called Project Tsietsi by employees in memory of a colleague who passed away, was established at the mine during the year. This project has run a number of awareness campaigns. A focus on HIV/Aids forms part of the lifestyle team’s quarterly education initiative. Posters are widely used to raise awareness at Blyvoor. Employees are encouraged to go for VCT which is available at the on-mine clinics. The clinics run a wellness programme which involves lifestyle counselling and medication for opportunistic infections.
When it is medically indicated that antiretroviral therapy (ART) is required, Healthshare refers patients to a private practitioner in Carletonville, Dr David Masuku, who is highly experienced in the treatment of HIV-positive patients. Through years of liaison with other practitioners in the field and contacts with donors he has become an accredited provider with the President’s Emergency Plan for AIDS Relief (PEPFAR). This means that he treats patients with ART drugs which are sponsored by a donor. The treatment protocol followed is in line with the Department of Health’s regimens. This ensures continuity of treatment if an employee should leave Blyvoor because that employee is then referred to a government facility. There are currently more than 100 employees on ART.
In a joint venture with the Merafong Municipality, Blyvoor is in the process of establishing a hospice on its premises, with capacity for 500 patients, which will be available to its employees as well as members of the community. The intention is that ART will be available at this facility – to be known as the Elijah Barayi Medical Centre – which will also house and care for people suffering from HIV/Aids. The centre will be run by the non-governmental organisation Siyaphila, which has completed its study to ascertain the funds required to get started. It is envisaged that the centre may start functioning in the last quarter of 2008.
To ensure the success of its HIV/Aids programme, Blyvoor adheres to seven basic principles.
HIV/Aids awareness drives are run by ERPM every quarter. Gatherings are held at different locations and employees and members of the community are invited to attend and listen to talks by invited speakers. The company sponsors T-shirts as well as entertainment in the form of videos and musical performances. Attendance figures at these events are increasing as is the number of those volunteering for HIV/Aids tests. The treatment provided by the Caritas Care Home includes VCT, a wellness programme and free ART, which is sponsored by the state.
Crown employees fall under a three-year HIV awareness campaign which is run by accredited education and training service provider Redpeg (a company owned and managed by black women) in collaboration with the government.
| Blyvoor | 2008 | 2007 | 2006 |
|---|---|---|---|
| VCT attendance | 91 | 74 | 82 |
| Wellness clinic participation (average per month) | 173 | 149 | 126 |
| Referrals for ART | 169 | 146 | 129 |
| ERPM | |||
| VCT attendance | 85 | 64 | 29 |
| Wellness clinic participation (average per month) | 30 | 8 | 10 |
| Referrals for ART | 40 | 36 | 9 |
DRDGOLD acknowledges that its mining activities have an impact on the environment and on the community surrounding its operations. Impacts are managed proactively in terms of management and mitigation measures contained in the Environmental Management Programmes (EMPs) in place at all of the group’s active operations. Each operation has a concurrent rehabilitation programme that is reviewed, and for which a budget is prepared, every year. The aim is to mitigate environmental impacts and reduce closure liability.
Each operation has environmental specialists on the staff who report to the general manager of the mine and to DRDGOLD SA’s environmental manager. The group has a Regional Environmental Co-ordination Committee which meets monthly to report on, discuss and implement appropriate action plans at all operations, with the aim of ensuring and maintaining a high standard of environmental performance at all times.
Numerous audits took place during the year under review. These were undertaken by:
DRDGOLD is required to comply with a number of national and provincial laws as well as local by-laws. Some of the most significant laws are: the National Environmental Management Amendment Act 8 of 2004; the National Environment Management: Air Quality Act 39 of 2004; the Atmospheric Pollution Prevention Act 45 of 1965; the National Water Act 36 of 1998; the Water Services Act 108 of 1997; the Environment Conservation Act 73 of 1989; the National Environmental Management: Biodiversity Act 10 of 2004; the National Environmental Management: Protected Areas Act 57 of 2003; the MPRDA of 2002; the Mine Health and Safety Act of 1996; the Conservation of Agricultural Resources Act of 1983; the Heritage Resources Act of 1999; and the National Nuclear Regulator Act 47 of 1999. A dynamic register, incorporating all applicable legislation, is maintained and updated every quarter. In this way DRDGOLD ensures continued alignment with amendments to existing laws as well as new legislation.
Measures to mitigate environmental impacts form a central part of the company’s mining licence applications and permitting is in place at all operations in line with the relevant legislation.
The major environmental issues facing DRDGOLD are dust control and water management. There is a robust system in place to identify, quantify, monitor, manage and report on risks, and a risk register is maintained and updated quarterly.
| Blyvoor | Crown | ERPM | DRD/ West Wits | Total | |
|---|---|---|---|---|---|
| Consultants | 1 337 | 611 | 1 867 | 205 | 4 020 |
| Dust monitoring | 20 | 262 | 102 | 92 | 476 |
| Rehabilitation | 1 591 | 6 296 | 125 | 3 504 | 11 516 |
| Trust funding | – | 26 000 | 2 400 | – | 28 400 |
| Vegetation | 975 | 3 752 | 840 | 1 902 | 7 469 |
| Water sampling | 116 | 391 | 49 | – | 556 |
| Total | 4 039 | 37 312 | 5 383 | 5 703 | 52 437 |
Dust is monitored at 158 monitoring points at all DRDGOLD operations (including closed mines such as DRD and West Wits) against the South African National Standards (SANS). These guidelines and the results from monitoring points at the operations are set out in the tables below.
Annegarn Environmental Research, a leading dust monitoring agency in southern Africa, monitors dust fall-out on the property of all operations (including DRD and West Wits).
Vegetation programmes for dormant tailings dams are in place at all the operations. During FY08, 25 hectares of top vegetation and two hectares of side slope vegetation were established at Blyvoor. The sides slopes of No 7 slimes dam were grassed and the top ridge ploughed – at a cost of more than R850 000 – to reduce the amount of dust being blown off. As No 1 slimes dam is kept available for back-up, the top has not been vegetated. However, it is ridge ploughed and a water spray system is being installed.
Some 25 hectares of vegetation were established on the side slopes of the Crown tailings complex during the year under review. This operation also makes use of sprayed water to control dust at the sites that are in the process of being reclaimed. At sites such as Mennels, which are sensitive because they are in the centre of town, a monthly inspection involving inspectors from the DME is held to ensure that the mitigating measures are adequate. Quarterly meetings are held with the local authorities and the community where dust-related issues are discussed and information shared. A dust register and a complaints book are kept at Crown for use by the public to lodge complaints which are then followed up.
During FY08, 26 hectares of vegetation on top of the Elsburg tailings complex at ERPM were maintained and the remainder of the top surface, which has yet to be vegetated, was ridge ploughed.
With regard to DRD and West Wits, 111 hectares of vegetation were maintained and fertilised on the 2L24 complex and 55 hectares of vegetation were established at the WRC tailings facility. Vegetation, established during 2006-07 at the Princess dump complex after complaints from residents, is now very well developed and self-sustaining.
| Level | Dust fall-out rate (mg/m²/day) | Permitted frequency of exceedances |
|---|---|---|
| Target | 300 | |
| Action residential | 600 | Three within any year, no sequential months |
| Action industrial | 1 200 | Three within any year, no sequential months |
| Alert threshold | 2 400 | None. First exceedance requires remediation and compulsory report to authorities. |
| Area | Monitoring points | Points monitored 2008 | <600 | Residential >600 <1 200 | Industrial >1 200 | % Compliance | % Non- compliance |
|---|---|---|---|---|---|---|---|
| Blyvoor | 5 | 55 | 55 | – | – | 100 | – |
| ERPM | 24 | 288 | 269 | 19 | – | 93.5 | 6.5 |
| Ergo | 25 | 300 | 285 | 12 | 3 | 95.0 | 5 |
| Crown | 78 | 930 | 832 | 80 | 18 | 89.5 | 10.5 |
| DRD | 26 | 312 | 280 | 27 | 5 | 89.8 | 10.2 |
Existing water uses at all operations have been registered as required by the National Water Act of 1998. Applications for integrated water use licences have been submitted by all the operations but the licences have not yet been issued.
Significant progress has been made in addressing water-related issues in the year under review.
Together with Harmony (Randfontein Estates) and Mintails SA (Mogale), DRDGOLD (through its subsidiary West Wits) participates in the section 21 company Western Basin Environmental Corporation (WBEC), formed to find solutions to the acid mine drainage from the Western Basin of the Witwatersrand goldfields, which seeps into rivers and dams in the Randfontein area. WBEC entered into a management agreement with Western Utilities Corporation (WUC) to evaluate treatment options for the water.
Three pilot plants were constructed at the end of 2007 and the results were very encouraging. A bankable feasibility study is currently being undertaken for the establishment of a full-scale treatment plant. Initial indications are that a plant of 75 million litres (Ml) per day would be commercially viable and sustainable. As the discharge from the Western Basin is some 20Ml a day, other contaminated water sources from other mining basins would be required to reach daily capacity. Once a sustainable plant has been commissioned, DRDGOLD and the other parties will be able to end their involvement in WBEC as part of their closure strategy.
ERPM pumps water out of the Central Basin of the Witwatersrand goldfields, effectively preventing the flooding of all the gold mines in this area. A plugging programme, involving the construction of water barrier plugs, was started some years ago to isolate the ERPM working areas from the Central Basin. Partially funded by the DME, the programme was completed in FY08.
The mined out area behind these plugs has been flooding, with the water level reaching 30 metres below the pump chamber on 24 level at South West Vertical Shaft on 21 November 2007. The water level is being maintained at this elevation through the use of submersible pumps. The pump chamber is pumping some 60Ml of water per day to surface. About 10Ml of this water is used for mining operations; the balance is partially treated to remove heavy materials and correct the pH, then discharged into the environment.
A section 21 company, Central Basin Environmental Corporation (CBEC) has been established to find a long-term, self-sustaining solution for this water. Apart from DRDGOLD SA, the other members are Mintails SA, Central Rand Gold and West Wits Mining. It is envisaged that, initially, a large portion of this water will be used in mining operations such as Ergo. This will ensure that the most contaminated water is used first and the country’s potable water resources are not contaminated, but are kept available for alternative uses. It is likely that the long-term sustainable solution will be a treatment plant, treating water from both the Central and Western basins to supply sufficient water for self-sustainability. CBEC will also be looking at upgrading existing pumping infrastructure to keep the basin de-watered for future mining operations.
Blyvoor is one of the founder members of the Far West Rand Dolomitic Water Association which has the responsibility of managing the consequences of de-watering.
The operation pumps around 25Ml of water per day to keep the underground workings dry. Of this water, some is used in the mining process and the balance (some 8Ml) is discharged into the river system. Blyvoor is investigating the establishment of a treatment plant to treat the water to a potable standard for use on the mine. This would lessen the possibility of pollution and reduce the amount of fresh water that the operation draws from the Rand Water Board (RWB). A pilot plant was constructed and operated successfully at the end of 2007 and the mine is now in the process of contracting a company to construct a permanent plant which could become operational during the first quarter of 2009. This will assist Blyvoor as it strives to achieve the target of zero discharge.
Water quality and discharge volumes are monitored regularly. At Blyvoor, two continuous water monitors have been installed at the discharge points and can be viewed on the Internet. The required water samples are taken every week and analysed in an accredited laboratory.The results are submitted to DWAF and to the Potchefstroom municipality. Remedial action is taken as necessary.
Blyvoor is a member of the Mining Interest Group (MIG) which was established by all the mining companies in the area to deal with allegations regarding possible radiation pollution in the Wonderfontein Spruit. There have been various studies undertaken over the years but it is still not clear what remediation, if any, is needed. Government regulators have also established a specialist task team to examine all the information collected and MIG has proposed making a grant to North-West University for a scientific investigation to determine what action, if any, should be taken. Previous studies have identified the dams along the Spruit as areas that may require some form of remediation.
Two environmental incidents occurred at Blyvoor during FY08. There was a run-off in December 2007 when the No 4 and 5 slimes dam reclamation emergency dam overflowed. A breach in the dam wall – the result of a combination of heavy rain and a trip in the power supply – caused contaminated water to flow into an area (approximately three square kilometres in size) in Carletonville. It took a week to clean the affected area in the town and the affected grassland is in the process of being rehabilitated. Slimes spills occurred when the No 4 and 5 reclamation slurry pipe burst repeatedly during the year and a portion of the pipeline has been bypassed to eliminate further spills. This affected an area of about two square kilometres in size – 90% of which had been cleaned up by year-end. The operation spent close to R900 000 in FY08 on cleaning up these two areas.
To address the issues of slimes spillage and run-off, Blyvoor is creating additional toe paddocks at the Doornfontein complex and the No 4 and 5 emergency dam has been cleaned out and segregated with rock. In-dam paddocks have also been set up at the No 4 and 5 reclamation site.
Crown recorded 12 incidents during the year: one occurred when the return dams overflowed after heavy rain; the others were burst pipes. All spillage from the burst pipes was cleaned up immediately. No people or animals were directly affected. The return dams are being de-silted during the winter months to provide more storage capacity.
No reportable environmental incidents were recorded at ERPM during FY08.
No fines were imposed or legal action taken against DRDGOLD SA in connection with environmental incidents during FY08.
Blyvoor used 2 687Ml of potable water on the operation during the year. As mentioned above the mine is looking at installing a water treatment plant to treat underground water to potable standards for its own use. The size of plant currently envisaged would treat 6Ml a day. This means the mine would cut its discharge of water into the Wonderfontein Spruit by 2 190Ml a year while reducing the amount of potable water it draws from the RWB by the same amount. This meets DWAF’s objective of using the most contaminated water first and freeing up the country’s potable water for alternative uses.
Crown is dependent on the RWB at this stage for all its operational requirements because it has no alternative source. Crown used 4 597Ml of water during the year. Approximately 50% of the water sent to the slimes dam is returned and reused at the reclamation sites. A project to pump water from ERPM is being looked at to reduce the dependence on the RWB. If this proves feasible, it is likely to be implemented in 2010.
ERPM pumps approximately 60Ml of water to surface daily. At this stage 11Ml is used by ERPM and Knights plant for process water and the balance discharged. The plan is to use this water for the Ergo operations.They would need 20Ml a day from May 2009 and a possible 40Ml per day in 2010. ERPM uses water from the RWB for ice for cooling purposes because the underground water would be too costly to treat given the volumes used. ERPM used 4 314Ml of water from the RWB during the year.
Given the current pressure on the national power supply network in South Africa, state power utility Eskom requires all mining operations to reduce consumption of demand by at least 5% overall. In the event that supply to a mine is stopped, Eskom guarantees a six-hour window to allow for the evacuation of employees. Independent power generation is being considered but the expense of this option is a concern.
While Blyvoor is able to meet the 5% reduction without production being affected, ERPM is unable to achieve the saving. Eskom is aware that ERPM pumps water from the Central Witwatersrand Basin on a 24-hour basis, using all of the installed capacity of the current infrastructure. Discussions with the utility were under way in order to upgrade the infrastructure as a partly Eskom-funded demand-side management (DSM) project. However, these discussions have been put on hold because Eskom is concentrating on more energy efficient projects as opposed to load shifting projects.
Together with IST OTOKON, ERPM is investigating a more efficient ice-making option for the ice plant, which might require less energy than the equipment that is currently being used.
As a surface re-treatment operation, Crown consumes less power than the underground operations and the impact of power cuts is therefore less severe. In addition, as it has sites in different parts of the Johannesburg area, it is only partially affected when an outage occurs in a section of the city. Nonetheless, it has reviewed its overall usage and has started to implement measures to reduce the effect of power cuts.
No areas of biodiversity fall under the management of DRDGOLD SA nor are its operations in or adjacent to protected areas of high biodiversity value. Blyvoor, Crown and ERPM manage 4 506, 1 942 and 1 469 hectares, respectively. The land disturbed by mining activities is 4 023 hectares in the case of Blyvoor and 688 hectares in the case of ERPM. Crown has cleared 239 hectares of land while 206 hectares have been cleared and developed or are in the process of being developed.
All of the operations have updated their closure plans as required by the new EMPs.
In FY08, the redundant Uranium plant was demolished at Blyvoor in accordance with the NNR’s approved procedure at a cost of R562 000. This operation’s Annan Hostel has been demolished and the rubble is being deposited into sinkholes. In the year under review, seven sinkholes were filled at a cost of R316 490. The remaining four sinkholes were filled in July 2008.
Several sites were rehabilitated at Crown during the year, including 3L17. Negotiations are also under way with various contractors to sell the oversize material that is generated at the operational reclamation sites.
ERPM is in the process of removing a redundant railway embankment.There is no cost involved in this but it will reduce the operation’s liability.
At DRD and West Wits, nine redundant shafts have been closed and capped.
The closure liabilities associated with environmental issues for each operation are reassessed on an annual basis.The amounts, calculated according to the official DME guidelines as at June 2008, are set out in the table in the next column.
The operations have trust funds to meet the final closure liability and DRDGOLD makes annual contributions to the environmental trust fund in place at each operation. Blyvoor has a trust fund of R24.3 million (FY07: R26.9 million) to provide for the financial liabilities associated with the rehabilitation and closure of this operation.This operation has presented a proposal to the DME that revenue from the sale of the No 2 waste rock dump be used to supplement the rehabilitation fund. If accepted, this will result in Blyvoor’s liabilities being fully funded.
Crown reduced its closure liability by R30 million through finding alternative uses for screen oversize material and by carrying out site rehabilitation concurrently with its operations. Crown also contributes an amount of R250 000 per month as well as revenue from scrap sales to its trust fund. In addition, in FY08 Crown made an ad hoc payment of R20 million to boost the value of this fund.
Apart from the proceeds from scrap sales, ERPM pays R200 000 into its trust fund every month.
In the case of DRD and West Wits, the rehabilitation of the tailings facilities forms the largest portion of the liability. As these facilities are all earmarked to be re-treated by Mintails, they will be removed from the closure liability when mining rights are granted. When this happens, DRD and West Wits/WRC will be fully funded.
| 30 June 2008 | Closure liability |
|---|---|
| Operation | R |
| Crown | 104 993 605 |
| Blyvoor | 61 283 274 |
| ERPM | 62 315 785 |
| DRD/Rand Leases(RL)† | 27 303 498 |
| West Wits/West Rand Consolidated (WRC)† | 36 547 950 |
| Total | 292 444 112 |
† Discontinued operations
The fund amounts as at 30 June 2008 are set out below.
| Trust funds | June 2008 | June 2007 |
|---|---|---|
| Operation | R | R |
| Crown | 37 159 250 | 11 917 935 |
| Blyvoor | 26 906 119 | 24 319 738 |
| ERPM | 12 835 761 | 9 011 218 |
| DRD/RL† | 18 188 099 | 16 398 858 |
| WW/WRC† | 15 678 020 | 14 123 218 |
| Total | 110 767 249 | 75 770 967 |
† Discontinued operations
