ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR THE PROPOSED BILBOES ISABELLA-MCCAYS- BUBI SULPHIDE GOLD PROJECT - SLR Consulting

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR THE PROPOSED BILBOES ISABELLA-MCCAYS- BUBI SULPHIDE GOLD PROJECT - SLR Consulting
ENVIRONMENTAL AND SOCIAL IMPACT
    ASSESSMENT FOR THE PROPOSED BILBOES
     ISABELLA- MCCAYS- BUBI SULPHIDE GOLD
                                  PROJECT
                  Environmental Prospectus / Scoping Report
                                       Prepared in association with:
                                           GriynOva Environmental

                                                      Prepared for:
                                          Bilboes Holdings (Pvt) Ltd

SLR Project No.: 710.04026.00031
Revision No.: 1
October 2018
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR THE PROPOSED BILBOES ISABELLA-MCCAYS- BUBI SULPHIDE GOLD PROJECT - SLR Consulting
Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                                                     October 2018

DOCUMENT INFORMATION

 Title                                       Environmental And Social Impact Assessment for the Proposed Bilboes
                                             Isabella- McCays- Bubi Gold Sulphide Project: Environmental Prospectus /
                                             Scoping Report
 SLR Project Manager                         Alex Pheiffer
 Project Manager e-mail                      apheiffer@slrconsulting,com
 GriynOva Environmental                      Tawanda Marongwe
 Project Manager
 Project Manager e-mail                      tawanda@curityspill.com
 Authors                                     Nicholas Arnott, Caroline Mavhezha and Nokuthula Chinhoga
 Project Director                            Stuart Heather-Clark
 Status                                      1
 Authority Reference No
 SLR Project No                              710.04026.00031
 DRA Document No                             JZWFM2576-STU-REP-0021

BASIS OF REPORT
This document has been prepared by an SLR Group company in association with GriynOva Environmental with reasonable skill, care and diligence,
and taking account of the manpower, timescales and resources devoted to it in accordance with the appointment from the applicant.

The information contained in this report is relevant only to the specific project area and plan. It cannot be relied on for any other purpose or by any
other person.

Information reported herein may be based on the interpretation of public domain data collected by SLR Consulting (Africa) (Pty) Ltd (SLR), GriynOva
Environmental, and/or information supplied by the applicant and/or its other advisors and associates. The data has been accepted in good faith as
being accurate and valid.

This document may contain information of a specialised and/or highly technical nature and the reader is advised to seek clarification on any
elements which may be unclear to it.

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR THE PROPOSED BILBOES ISABELLA-MCCAYS- BUBI SULPHIDE GOLD PROJECT - SLR Consulting
Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                                                 October 2018

EXECUTIVE SUMMARY
1.        INTRODUCTION

This Executive Summary provides a synopsis of the Environmental Prospects Report (hereafter referred
to as the “Scoping Report”) prepared as part of the Environmental and Social Impact Assessment (ESIA)
process that is being undertaken for the proposal by Bilboes Holdings (Pvt) Ltd (Bilboes) to establish
additional infrastructure required to facilitate the extraction, handling and processing of the additional
gold-bearing sulphide ores beneath the oxide orebodies within the existing open pits at the Isabella,
McCays and Bubi Mines (see Figure 1).

1.1         Project Background

The three mines are situated within the Bubi District of the Matabeleland North Province of Zimbabwe.
The Isabella and McCays Mines are located in close proximity to one another, approximately 75
kilometres (km) north of Bulawayo, while the Bubi Mine is located approximately 30 km further north-
east of the Isabella-McCays complex. The operations at the each mine entails the removal of gold-
bearing oxide ores from open pits, leaching of the mined ores on heap leach pads, processing and
smelting to produce gold Doré. The operations are currently on care and maintenance with activities
limited to the re-leaching of the heap leach pads.

1.2         Overview of the Proposed Project

In order to extract the additional sulphide ores, the existing open pits at each mine would need to be
mined deeper and wider. The key focus of this ESIA is on the new infrastructure, including a new
processing plant, and associated Tailings Storage Facility, that would be required to process the gold
from the sulphide ore. It is currently proposed that this new infrastructure be established near the
Isabella-McCays complex. In order to facilitate the transportation of the mined sulphide ore from Bubi
Mine to the new processing plant, a new approximately 30 km haul road would also need to be
established.

Other new infrastructure associated with the proposed project would include, waste rock dumps, a new
airstrip, a limestone quarry, and associated facilities at the proposed processing plant (including a road
network, offices, housing, power and water reticulation and other amenities). The planned
establishment of some of the proposed infrastructure would also necessitate the diversion of an existing
public road and powerline.

1.3       Summary of Authorisation Requirements

The Environmental Management Act (Chapter 20:27) No. 13 of 2002 (as amended), requires that an
ESIA1 process be undertaken for an activity listed under the First Schedule of the Act.
______________________
1
      It is noted that an ESIA a process typically driven by International Financial Institutions whilst the Zimbabwean legislation refer to an
      Environmental Impact Assessment (EIA) process which culminates in the submission of an Environmental Impact Statement (EIS). For the
      purposes of this report, both terms are used interchangeably.

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR THE PROPOSED BILBOES ISABELLA-MCCAYS- BUBI SULPHIDE GOLD PROJECT - SLR Consulting
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                                                                                                                                                                                                                                        Project Overview
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                                                                                                                                                                                                                                                 710.04026.00031                           2018/10/03
658922                                                                                                           668922                                                         678922
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR THE PROPOSED BILBOES ISABELLA-MCCAYS- BUBI SULPHIDE GOLD PROJECT - SLR Consulting
Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                             October 2018

The proposed project falls under activity number 7 of the First Schedule. Furthermore, an ESIA is also
required in terms of Section 48 of the Amendments to the Mines and Minerals Act (Chapter 21:05) of
1996. Thus, it is a requirement that Bilboes undertake an ESIA process for the proposed project.

In order to support international funding requirements, Bilboes are also required to ensure that the
proposed project is aligned with the International Finance Corporation (IFC) Performance Standards
which provide for the management of social and environmental risks and impacts throughout the life of
an investment.

SLR Consulting (Africa) (Pty) Ltd (SLR) in collaboration GriynOva Environmental have been appointed by
Bilboes to undertake the ESIA process for the proposed project. SLR is the lead consultant for the ESIA,
while GriynOva Environmental is the in-country partner.

2.      ESIA METHODOLOGY

2.1        ESIA Objectives

The ESIA process has the following key objectives:
•     To provide an reasonable opportunity for all stakeholders to be involved in the study;
•     To ensure that all potential key environmental issues and impacts that would result from the
      proposed project are identified;
•     To identify feasible alternatives related to the project proposal;
•     To assess potential impacts of the proposed project alternatives during the different phases of
      project development;
•     To present appropriate mitigation or optimisation measures to minimise potential impacts or
      enhance potential benefits, respectively; and
•     Through the above, to ensure informed, transparent and accountable decision-making by the
      relevant authorities.

The ESIA process consists of a series of steps to ensure compliance with these objectives and the
requirements of the Zimbabwean Environmental Management Act (Chapter 20:27) of 2002 and the IFC
Performance Standards. The process involves an open, participatory approach to ensure that all impacts
are identified and that decision-making takes place in an informed, transparent and accountable
manner.

2.2        Scoping Process

2.2.1      Public Participation Process

In terms of the Environmental Management (Environmental Impact Assessments and Ecosystems
Protection) Regulations, Statutory Instrument (SI) No. 7 of 2007, stakeholder consultation is recognised

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ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT FOR THE PROPOSED BILBOES ISABELLA-MCCAYS- BUBI SULPHIDE GOLD PROJECT - SLR Consulting
Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                  October 2018

as a fundamental element of the ESIA process. In addition to complying with these national
requirements, Bilboes has committed to undertake the engagement process in line IFC Performance
Standards, which place an emphasis on broad engagement and disclosure of findings to stakeholders
and requires a stakeholder engagement plan to be developed. A summary of the public participation
process that was followed is summarised below.

Stakeholder Identification
Relevant stakeholders to be consulted during the ESIA process were identified at the local, district,
provincial and national level. These stakeholders include individuals and organisations that may be
directly or indirectly affected, either in a positively or negatively, by the proposed project. The identified
stakeholders have been grouped into the following categories:
•      Government (authorities at District and Provincial levels);
•      General communities;
•      Specific communities;
•      Cultural groups; and
•      Local Residents.

Stakeholder Engagement
An initial stakeholder engagement exercise was conducted between the 6th and 9th of August 2018 and
entailed one on one meetings and focus-group discussions with key stakeholders and the ESIA project
team. The meetings involved briefing the stakeholders of the proposed project and gathering
information related to the roles, capacities, needs and priorities of the identified stakeholders.

A second round of stakeholder engagement meetings was undertaken between the 3rd and 7th of
September 2018 in addition to additional one on one meetings and focus-group discussions, placement
of a press advertisement and a general public meeting.

Summary of Issues Raised to Date
All comments received during the scoping process (minutes of meetings, written correspondence and
direct consultation) have been incorporated into the scoping report. Initial key issues raised pertain to:
•      Employment opportunities - the project should provide employment for the locals both skilled
       and unskilled;
•      Need for relocation - If any relocation of local residents/communities would be required, there
       should be full compensation to those affected persons;
•      Use of the new haul road – it was requested that the public be allowed to make use of the
       proposed haul road.
•      Access to clean water facilities – local residents identified the need for the provision of potable
       water;
•      Corporate Social Responsibility - stakeholders intimated that there had been insufficient support
       from Bilboes for local communities;

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                              October 2018

•       Hazards to domestic and wild animals – concerns were raised about the risks associated with
        livestock and/or wild animals becoming trapped in the open pits; and
•       The need to conserve cultural heritage.

2.2.2      Completion of the Scoping Process

This Scoping Report has been prepared to include the information that would typically be required in
the Prospectus that would be submitted to the Environmental Management Agency (EMA). It has been
submitted to EMA for confirmation that an ESIA for the proposed project is required. If this Scoping
Report is approved, the project will proceed onto the ESIA Phase.

2.3        ESIA Phase

2.2.1      Specialist Studies

Various specialist studies will be commissioned to address the key issues that require further
investigation and detailed assessment, namely soils and land capability; biodiversity; surface and ground
water; air quality; noise; archaeological, cultural and heritage; as well as the socio-economic
environment including land uses, and health

2.2.2      Integration and Assessment

The specialist information and other relevant information will be integrated into an ESIA Report, which
will include an Environmental and Social Management Programme (ESMP). The findings of the ESIA
Report will be disclosed to stakeholders via public feedback meetings with stakeholders (pre-ESIA
submission). The ESIA report will then be updated with comments and concerns raised at the feedback
meetings and submitted to EMA for review and decision-making. The final EMA decision would then be
disclosed to all registered stakeholders.

3.         PROJECT DESCRIPTION

3.1        Project Data

Information providing perspective on the scale of the proposed project is presented in the table below.
The location of the key proposed project infrastructure is provided in Figure 1 above. The various
project alternatives under consideration are described in Section 5 of the main report. It should
however be noted that this information may be refined further during the ESIA phase.

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                                        October 2018

 Features                                      Statistics                                  Comment
 Group               Specific
 Resource            Target mineral            Gold-bearing sulphide ore                   Footprint largely confined to the
                     Available resource        Approximately 64Mt                          existing open pits at the three mining
                                                                                           operations.
                     Average grade             2.35 g/t
                     Footprint                 Approximately 360 ha

 Mining              Mining method             Conventional open pit mining using truck    -
 Method                                        and excavator combinations.
                     Rate of mining            Initially at 120 000 tpm and ramping up     Waste to Ore stripping ratio will be
                                               to 240 000 t/month of ore in Year 4         varied from 5 to 10: 1
                                               before reducing to 180 000 tpm after
                                               Year 7
                     Life of project           Approximately 15 years
 Processing          Plant design              Initial processing capacity would be        -
 plant                                         120 000 tpm. Production would then be
                                               ramped up to 240 000 tpm in Year 4
                                               (plant to be upgraded) and 180 000tpm
                                               after Year 7
                     Plant footprint           Approximately 50 ha                         -
                     Production                Peak production of 200 000 ounces/ 6        Initial production of 100 000 ounces
                                               220 kg per annum                            and peaking to 200 000 ounces and
                                                                                           dropping to 140 000 ounces after Year
                                                                                           7
 Tailings            Capacity                  Approximately 27 Mt                         Lowest possible
 Storage             Footprint                 Approximately 85 ha                         -
 Facility
                     Method of                 Conventional wet slurry deposition          Further detail to be provided in the
                     deposition                                                            ESIA phase.
 Limestone           Footprint                 No detailed information related to the proposed limestone quarry is presently
 quarry              Mining method and         available. Ongoing investigations are underway to determine the volume of
                     rate                      limestone required for the proposed operations. Further detail will be provided in
                                               the ESIA phase.
                     Transport
                     requirements
 Resource use        Water demand              Isabella-McCays: 184 000 m³ pm
                                               Bubi: 7 800 m³ pm
                                                                           3
                                               Processing Plant: 480 000m pm
                     Power demand              Isabella-McCays: Approximately 36 MVA
                                               Bubi: Approximately 2 MVA
 Employment          Staff: construction       This will be confirmed in the ESIA phase.   Majority of the workforce is planned to
 and housing         Staff: operational        ± 140                                       be sourced from nearby villages with
                                                                                           existing accommodation within these
                     Housing                   Accommodation facilities are planned for
                                                                                           areas. Senior management would be
                                               senior management only.
                                                                                           housed at the accommodation facilities
                                                                                           provided at the Isabella-McCays
                                                                                           complex. For the Bubi operations, staff

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                                      October 2018

 Features                                      Statistics                               Comment
 Group               Specific
                                                                                        will be bussed to Bubi on a daily basis.
 Revenue             Capital investment        USD 235 million inclusive of 5%          To be updated through the Feasibility
 generation                                    sustaining capital for Life of Mine      Study.
                                               inclusive of Initial capital of USD110
                                               million for Phase 1.
                     Annual cost to            Approximately USD 60 million             To be updated through the Feasibility
                     operate                                                            Study.
 Timetable           Construction              Expected to commence in 2019 and take    Subject to the completion of the
                                               2 years to complete                      feasibility study and receipt of the
                     Production                Anticipated to commence in the first     necessary environmental permits.
                                               quarter of 2021

4.         DESCRIPTION OF THE AFFECTED ENVIRONMENT

4.1        Physical Environment

4.1.1      Geology

The geology of the Isabella, McCays and Bubi orebodies display very similar styles of hydrothermal
alteration and mineralisation within broad shear zones. The area is underlain by the Bembesi River
Formation (in the northern half) and the Dagmar Formation (in the southern half). The Bubi operations
area underlain by metavolcanic basalts, andesites, dacites and rhyodacites belonging to the
Zwankendaba Formation and the younger Dollar Block formations.

Orebody widths at Isabella Mine range from 5 m to 20 m and are wider near surface. The oxide cap is
deepest at Isabella Mine where the range is 12 m to 40 m with an average of 24 m. The oxide-sulphide
interface at Bubi Mine is shallow in the southwest at about 10 m to 12 m below surface and increases to
30 m in the central parts and to 2040 m in the northeast. Orebody widths at Bubi vary from 10 m in the
southwest to as wide as 100 m in the central portions of the claims. The overall mineralised strike is in
excess of 4 000 m.

4.1.2      Topography

The topography of the project area is gently undulating and generally flat with exception of raised areas
created by old waste rock dumps and heap leach pads, as well as the excavated open pits associated
with the current operations on site.

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                   October 2018

4.1.3      Climate

Due to its relatively high altitude, the area has a subtropical climate despite lying within the tropics. It is
cooled by a prevailing south-easterly airflow most of the year, and experiences three broad seasons: a
dry, cool winter season from May to August; a hot dry period in early summer from late August to early
November; and a warm wet period in the rest of the summer, early November to April.

The average maximum temperature ranges from 21°C in July to 30°C in October. During the rainy
season, daytime maxima are around 26°C. Nights are always cool, ranging from 8°C in July to 16°C in
January. The Mean Annual Precipitation is 657 mm.

4.1.4      Soil and Land Capability

The project area is predominantly covered by Kalahari Sands which comprise deep, unconsolidated and
well-drained tertiary sands of Aeolian origin. The dominant soils are physically and chemically uniform
and are also highly infertile. The existing soils have been impacted upon to a greater and to a lesser
degree by the current mining operations, as well as various related community activities within the
broader project area.

4.1.5      Hydrology

The proposed project falls within the Bembezi river sub-catchment of the Gwayi catchment area. The
project site more specifically falls within the Bembezi river sub-catchment which drains north-west
towards the Zambezi River.

The Mbembezi River, a regionally significant perennial watercourse, flowing from south-east to north-
west is located within close proximity of Isabella Mine to the south west. The Mdutshane River, a minor
non-perennial watercourse flows lows from north-east to south-west (into the Mbembezi River) passing
approximately 1 km away from the McCays and Isabella Mines. Two drainage lines were identified in
close proximity to the numerous pits at Isabella, both flowing from north-east to south-west into the
Mbembezi River. With respect to the Bubi operations, the Bubi River is located in close vicinity to the
southern end of the open pit at Bubi Mine.

4.1.6      Groundwater

There is limited baseline information available with respect to the groundwater resources located within
the project area. Detailed information pertaining to the presence of groundwater, associated water
quality and groundwater users will be provided in the ESIA report.

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                               October 2018

4.1.7      Air Quality

The key activities which influence the ambient air quality within the proposed project area include
biomass burning, agriculture (slash and burn practices), vehicle entrainment on sealed and unsealed
roads and wind erosion of de-vegetated areas (e.g. cleared agricultural fields, artisanal mining areas).
Key emissions associated with the Bilboes operations include the operation of the gold smelter at the
processing plant.

4.1.8      Noise

Current ambient noise levels are expected to be low and representative of a rural and agricultural type
environment. Existing noise sources other than the current mining operations include localised vehicle
movement on the road network, ambient noise from wind, animals and birds, noise from local
communities, agricultural/farming activities, and activities associated with artisanal mining.

4.1.9      Visual Aspects

The immediate environment in and around the project site is characterised by the mining operations
themselves, as well as rural agricultural and community activities, including artisanal mining. As the
project area is not visible from public tourist routes, the predominant main public views are expected to
be from local people living in the area and travelling along road networks and from people making use
of surrounding land for agriculture and grazing purposes.

4.2        Biological Environment

The proposed project area falls between the interface of the Zambezian Baikiaea woodlands and
Southern Africa bushveld ecoregions. The Zambezian Baikiaea woodlands ecoregion is a mosaic of dry
deciduous Baikiaea plurijuga-dominated forest, thicket and secondary grassland. The Southern African
Bushveld ecoregion is a classic savanna, made up of a mix of vegetation types, with somewhat arbitrary
delineations separating the different types. The vegetation in the northern parts of the ecoregion
(around Bulawayo) is considered to be tree savanna of about 6 m in height with a good grass cover.
Hyparrhenia filipendula and H. dissolute are the most common grass species.

At the ecoregional level, there a numerous mammal species that occur within the above-mentioned
ecoregions. These include several large predator species, ungulates, as well as elephant, black
rhinoceros, white rhinoceros, and hippopotamus.

4.3        Archaeology, Culture and Heritage

No specific archaeological, cultural or heritage resources were highlighted within the previous EMPs
compiled for the Isbalella, McCays and Bubi operations. It is expected that there is the potential for the

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                               October 2018

following resources to occur within the project area, particularly along the proposed haul road
alignment:
•     Stone and iron age sites;
•     Historical dwellings; and
•     Graves and/or graveyards.

4.4        Socio-Economic Environment

The Matabeleland North Province is the second-least populous and least densely populated province in
the country. The Bubi District is the seventh most populous district in the province with only 1.9 % of
this population located within urban areas.

The local communities within the area are rural in nature with the predominant economic and livelihood
activities comprising cattle rearing, subsistence agriculture, and mining. The majority of the local
communities that surround the Bilboes operations are resettlement areas. The specific villages
identified to date that are deemed most likely to be affected by the proposed project are Dabengwa
Village (located close to Isabella Mine), Swati Village 2 and Rhino Village (a portion of the proposed haul
road would pass through communal fields associated with this village), close to Bubi Mine. There are
other villages within the vicinity of the project area that may be affected by the project.

Potential vulnerable groups associated with the project area include the land users that may be located
within the footprint of the proposed haul road and communities reliant on water from the open pits for
domestic and agricultural purposes, as well as woman, children and the sick or elderly.

5.         KEY PROJECT ISSUES AND SPECIALIST INPUT

5.1        Impacts on soil and land capability

The proposed project could result in the loss of topsoil through sterilisation, erosion and contamination
impacts. A soils and land capability assessment will be commissioned to assess these potential impacts
associated with the proposed project during construction and operation.

5.2        Impacts on hydrology

The proposed project could have a negative impact on drainage patterns and subsequent aquatic
ecology through a reduction in surface water runoff and river crossings associated with the proposed
haul road. Furthermore, projects of this nature will generally present a number of pollution sources
that can have a negative impact on surface water quality if unmanaged. A hydrological assessment will
be commissioned to assess these potential impacts associated with the proposed project during
construction and operation.

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                               October 2018

5.3        Impacts on groundwater

The proposed project could influence groundwater levels through pit dewatering. The proposed
increase in the depth of the existing open pits could increase the volume of inflows into these workings.
Furthermore, groundwater could become contaminated from number of project-related sources. A
groundwater assessment will be commissioned to assess these potential impacts associated with the
proposed project during construction and operation.

5.4        Impacts on air quality

Mining projects present a number of air pollution sources that can cumulatively have a negative impact
on ambient air quality, ecosystem functionality and surrounding land uses. The increase in the scale of
the proposed project and inclusion of the proposed haul road will influence potential impacts and
health-related issues. An air quality impact assessment will be undertaken to investigate these issues.

5.5        Impacts on ambient noise and vibrations

The proposed project s will generally present a number of noise pollution and vibration sources that can
have a negative impact on surrounding communities/land uses if unmanaged. Typically, the following
noise pollution sources may be associated with the proposed project: mining equipment, blasting,
crushing, vehicle movement and materials handling. Similarly, the proposed project would have a
number of associated activities that would lead to vibration impacts (e.g. blasting). These impacts will
be significant if the surrounding land users are sensitive to noise pollution or located in close proximity
to vibration sources. A noise and vibration assessment will be undertaken to investigate these issues.

5.6        Impacts on biodiversity

Regardless of the selected project alternatives, the proposed project is expected to have a negative
impact on fauna and flora through the loss of natural vegetation which could lead to habitat
fragmentation and degradation. Depending on the final layout of the proposed project, parts of the
riparian habitat may be lost due to the possible river crossings. Together, these impacts may cause a
reduction in ecosystem functionality. It is proposed that the detailed biodiversity (flora, fauna and
aquatic systems) investigation will be conducted.

5.7        Impacts on archaeological, cultural and heritage sites

Archaeological, cultural and heritage resources of varying significance could occur in and around      the
project area. The additional project footprint areas and proposed new haul road will increase          the
likelihood of effecting archaeology or areas of cultural significance including graves, depending on   the
selected project alternatives. Given this, the process of selecting project alternatives should take   the

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                  October 2018

findings of the specialist investigation into account. It is proposed that a detailed archaeological, cultural
and heritage impact assessment will be undertaken.

5.8        Impacts on socio-economic environment

The proposed project could have positive and/or negative impacts on the following:
•  employment for local communities;
•  the local and national economy;
•   social structures within communities;
•   basic housing and related services (including water supply);
•   local heritage resources including graves;
•   health and safety of local communities; and
•   livelihoods of community members who make use of the land.

In addition, the alignment of the proposed haul road may require the relocation of some agricultural
fields and/or houses. Should relocation and/or compensation become a requirement, appropriate legal
and IFC requirements would need to be followed. It is proposed that a socio-economic impact
assessment, as well as a health impact assessment will be undertaken.

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                                                                                                        October 2018

CONTENTS
EXECUTIVE SUMMARY............................................................................................................................. I

1         INTRODUCTION .......................................................................................................................... 1-1
1.1       PROJECT BACKGROUND ........................................................................................................................1-1
1.2       OVERVIEW OF THE PROPOSED PROJECT ...............................................................................................1-1
1.3       APPLICANT’S DETAILS ............................................................................................................................1-4
1.4       AUTHORISATION REQUIREMENTS .........................................................................................................1-4
1.5       DETAILS OF THE ESIA CONSULTANTS ....................................................................................................1-5
1.6       STRUCTURE AND CONTENT OF REPORT ................................................................................................1-6

2         SCOPING APPROACH .................................................................................................................. 2-1
2.1       ESIA OBJECTIVES ....................................................................................................................................2-1
2.2       SCOPING PROCESS.................................................................................................................................2-1
2.2.1     INFORMATION COLLECTION AND DATA USE .................................................................................................................................. 2-1
2.2.2     PUBLIC PARTICIPATION PROCESS ..................................................................................................................................................... 2-2
2.2.3     SUMMARY OF ISSUES RAISED TO DATE ........................................................................................................................................... 2-3
2.2.4     SCOPING REPORT .............................................................................................................................................................................. 2-4
2.3       ASSUMPTIONS AND LIMITATIONS .........................................................................................................2-4

3         POLICY, LEGISLATIVE AND ADMINISTRATIVE FRAMEWORK ......................................................... 3-1
3.1       LOCAL POLICY ........................................................................................................................................3-1
3.1.1     ENVIRONMENTAL IMPACT ASSESSMENT POLICY (1997) ................................................................................................................ 3-1
3.1.2     NATIONAL ENVIRONMENTAL POLICY AND STRATEGIES (2009) ..................................................................................................... 3-1
3.1.3     ZIMBABWE AGENDA FOR SUSTAINABLE SOCIO-ECONOMIC TRANSFORMATION ........................................................................ 3-2
3.2       LOCAL LEGISLATION ..............................................................................................................................3-2
3.2.1     ENVIRONMENTAL MANAGEMENT ACT (CHAPTER 20:27) OF 2002 ............................................................................................... 3-2
3.2.2     MINES AND MINERALS ACT (CHAPTER 21:05) OF 1996.................................................................................................................. 3-4
3.2.3     RURAL DISTRICT COUNCILS ACT (CHAPTER 29:13) OF 1988........................................................................................................... 3-5
3.2.4     PUBLIC HEALTH ACT (CHAPTER 15:09) OF 1924 ............................................................................................................................. 3-5
3.2.5     THE PNEUMOCONIOSIS ACT (CHAPTER 15:08) OF 1996 ................................................................................................................ 3-5
3.2.6     PARKS AND WILDLIFE ACT (CHAPTER 20:14) OF 1975 .................................................................................................................... 3-6
3.2.7     FORESTRY ACT (CHAPTER 19:05) OF 1949....................................................................................................................................... 3-6
3.2.8     WATER ACT (CHAPTER 20.24) OF 1998 ........................................................................................................................................... 3-6
3.2.9     REGIONAL TOWN AND COUNTRY PLANNING ACT (CHAPTER 29:12)............................................................................................. 3-6
3.2.10 NATIONAL MUSEUMS AND MONUMENTS ACT (CHAPTER 25:11) ................................................................................................. 3-7
3.2.11 ROAD TRAFFIC ACT (CHAPTER 13:11) .............................................................................................................................................. 3-7
3.3       INTERNATIONAL OBLIGATIONS .............................................................................................................3-8
3.3.1     EQUATOR PRINCIPLES, INTERNATIONAL FINANCE CORPORATION (IFC) PERFORMANCE STANDARDS AND WORLD BANK
          GUIDELINES ....................................................................................................................................................................................... 3-8

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                                                                                                         October 2018

3.3.2   BASEL CONVENTION ......................................................................................................................................................................... 3-8
3.3.3   THE RAMSAR (1971) CONVENTION.................................................................................................................................................. 3-9
3.3.4   THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE AND THE KYOTO PROTOCOL.................................. 3-9
3.3.5   CONVENTION ON BIOLOGICAL DIVERSITY ..................................................................................................................................... 3-10
3.3.6   VIENNA CONVENTION ON PROTECTION OF THE OZONE LAYER AND MONTREAL PROTOCOL .................................................. 3-11
3.3.7   THE BAMAKO CONVENTION ON THE BAN OF THE IMPORT INTO AFRICA AND THE CONTROL OF TRANSBOUNDARY
        MOVEMENTS AND MANAGEMENT OF HAZARDOUS WASTE ....................................................................................................... 3-11
3.3.8   CONVENTION TO COMBAT DESERTIFICATION .............................................................................................................................. 3-12

4       DESCRIPTION OF PROPOSED DEVELOPMENT ............................................................................... 4-1
4.1     PROJECT BACKGROUND AND OVERVIEW ..............................................................................................4-1
4.1.1   CURRENT OPERATIONS ..................................................................................................................................................................... 4-1
4.1.2   PROPOSED PROJECT.......................................................................................................................................................................... 4-1
4.2     PROJECT DATA .......................................................................................................................................4-6
4.3     LAYOUT OF SURFACE INFRASTRUCTURE ...............................................................................................4-7
4.4     MINING AND MINERAL PROCESSING OPERATIONS ...............................................................................4-8
4.5     CONSTRUCTION ACTIVITIES AND FACILITIES .......................................................................................4-13
4.6     TRANSPORT NETWORK........................................................................................................................4-13
4.7     WATER SUPPLY AND MANAGEMENT ..................................................................................................4-14
4.8     POWER SUPPLY....................................................................................................................................4-15
4.9     NON-MINERALISED WASTE MANAGEMENT ........................................................................................4-15
4.10    OTHER SUPPORT FACILITIES ................................................................................................................4-16
4.11    REHABILITATION AND CLOSURE ..........................................................................................................4-16
4.12    PROJECT MOTIVATION (NEED AND DESIRABILITY) ..............................................................................4-17

5       ALTERNATIVES IDENTIFIED ......................................................................................................... 5-1
5.1     ALTERNATIVE LAND USES ......................................................................................................................5-1
5.2     PROJECT ALTERNATIVES ........................................................................................................................5-1
5.2.1   MINING METHOD .............................................................................................................................................................................. 5-1
5.2.2   ALTERNATIVE WASTE ROCK DUMP(S) LOCATIONS ......................................................................................................................... 5-2
5.2.3   ALTERNATIVE PROCESSING PLANT LOCATIONS .............................................................................................................................. 5-2
5.2.4   ALTERNATIVE TAILINGS STORAGE FACILITY LOCATIONS ................................................................................................................ 5-2
5.2.5   ALTERNATIVE HAUL ROAD ALIGNMENTS ........................................................................................................................................ 5-3
5.2.6   ALTERNATIVE WATER SUPPLY OPTIONS .......................................................................................................................................... 5-3
5.2.7   THE “NO PROJECT” OPTION ............................................................................................................................................................. 5-4

6       DESCRIPTION OF THE STUDY AREA / BASELINE ENVIRONMENT ................................................... 6-1
6.1     PHYSICAL ENVIRONMENT ......................................................................................................................6-1
6.1.1   GEOLOGY ........................................................................................................................................................................................... 6-1
6.1.2   TOPOGRAPHY .................................................................................................................................................................................... 6-2
6.1.3   CLIMATE ............................................................................................................................................................................................. 6-3
6.1.4   SOIL AND LAND CAPABILITY.............................................................................................................................................................. 6-4

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                                                                                                          October 2018

6.1.5   HYDROLOGY....................................................................................................................................................................................... 6-4
6.1.6   GROUNDWATER ................................................................................................................................................................................ 6-7
6.1.7   AIR QUALITY....................................................................................................................................................................................... 6-7
6.1.8   NOISE ................................................................................................................................................................................................. 6-8
6.1.9   VISUAL ASPECTS ................................................................................................................................................................................ 6-8
6.2     BIOLOGICAL ENVIRONMENT .................................................................................................................6-8
6.2.1   TERRESTRIAL FLORA .......................................................................................................................................................................... 6-8
6.2.2   TERRESTRIAL FAUNA ....................................................................................................................................................................... 6-10
6.3     ARCHAEOLOGY, CULTURE AND HERITAGE ..........................................................................................6-10
6.4     SOCIO-ECONOMIC ENVIRONMENT/PROFILE.......................................................................................6-11
6.4.1   DEMOGRAPHICS .............................................................................................................................................................................. 6-11
6.4.2   ECONOMIC AND LIVELIHOOD ACTIVITIES ...................................................................................................................................... 6-11
6.4.3   LAND TENURE .................................................................................................................................................................................. 6-12
6.4.4   VULNERABLE GROUPS .................................................................................................................................................................... 6-12
6.5     AREAS OF ENVIRONMENTAL AND SOCIAL SENSITIVITY .......................................................................6-14

7       IDENTIFICATION AND DESCRIPTION OF POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS ....... 7-1
7.1     POTENTIAL PHYSICAL ENVIRONMENT IMPACTS....................................................................................7-1
7.1.1   SOIL AND LAND CAPABILITY.............................................................................................................................................................. 7-1
7.1.2   HYDROLOGY....................................................................................................................................................................................... 7-2
7.1.3   GROUNDWATER ................................................................................................................................................................................ 7-3
7.1.4   AIR QUALITY....................................................................................................................................................................................... 7-3
7.1.5   NOISE AND VIBRATIONS ................................................................................................................................................................... 7-4
7.1.6   VISUAL ASPECTS ................................................................................................................................................................................ 7-4
7.2     BIOLOGICAL (TERRESTRIAL AND AQUATIC) ...........................................................................................7-5
7.3     ARCHAEOLOGY, CULTURE AND HERITAGE ............................................................................................7-5
7.4     POTENTIAL SOCIO-ECONOMIC IMPACTS ...............................................................................................7-6

8       TERMS OF REFERENCE FOR ESIA.................................................................................................. 8-1
8.1     ESIA OBJECTIVES ....................................................................................................................................8-1
8.2     STUDY AREA...........................................................................................................................................8-1
8.3     TASKS AND RELATED TIMING ................................................................................................................8-1
8.4     STUDY TERMS OF REFERENCE ...............................................................................................................8-2
8.4.1   PHYSICAL ENVIRONMENT ................................................................................................................................................................. 8-2
8.4.2   BIOLOGICAL ENVIRONMENT ............................................................................................................................................................ 8-5
8.4.3   ARCHAEOLOGY, CULTURE AND HERITAGE ...................................................................................................................................... 8-5
8.5     HEALTH ASSESSMENT ...........................................................................................................................8-5
8.5.1   SOCIO-ECONOMIC ENVIRONMENT .................................................................................................................................................. 8-6
8.6     ASSESSMENT CRITERIA ..........................................................................................................................8-6
8.6.1   IDENTIFICATION AND DESCRIPTION OF IMPACTS ........................................................................................................................... 8-7
8.6.2   EVALUATION OF IMPACTS AND MITIGATION MEASURES .............................................................................................................. 8-7

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                                                          October 2018

8.7      STRUCTURE OF ESIA REPORT...............................................................................................................8-10

9       SUMMARY AND CONCLUSIONS .................................................................................................. 9-1

10      REFERENCES ............................................................................................................................. 10-1

APPENDICES
APPENDIX 1: STAKEHOLDER ENGAGEMENT PLAN
APPENDIX 2: MINING CLAIMS REGISTERS
APPENDIX 3: TOPOGRAPHIC MAP

LIST OF TABLES
TABLE 1-1: SCOPING ENVIRONMENTAL PROJECT TEAM ................................................................................1-5
TABLE 4-1: SUMMARY OF PROJECT DATA.......................................................................................................4-6
TABLE 4-2: CONCEPTUAL PROCESS FLOW OF PROPOSED OPERATIONS.........................................................4-9
TABLE 6-1: AVERAGE MONTHLY RAINFALL AND VARIATION AT NKAYI ..........................................................6-3
TABLE 8-1: ESIA PROCESS ................................................................................................................................8-1

LIST OF FIGURES
FIGURE 1-1:           REGIONAL SETTING................................................................................................................1-2
FIGURE 1-2:           LOCAL SETTING ......................................................................................................................1-3
FIGURE 4-1:           OVERVIEW OF THE PROPOSED PROJECT INFRASTRUCTURE .................................................4-2
FIGURE 4-2:           LAYOUT OF THE ISABELLA MINE ............................................................................................4-3
FIGURE 4-3:           LAYOUT OF THE MCCAYS MINE .............................................................................................4-4
FIGURE 4-4:           LAYOUT OF THE BUBI MINE ...................................................................................................4-5
FIGURE 6-1:           REGIONAL HYDROLOGY OF ZIMBABWE (SOURCE: ZINWA) ..................................................6-5
FIGURE 6-2:           LOCAL HYDROLOGY OF THE PROPOSED PROJECT AREA .......................................................6-6
FIGURE 6-3:           TERRESTRIAL ECO-REGIONS IN RELATION TO THE PROPOSED PROJECT AREA .....................6-9
FIGURE 6-4:           LOCATION OF IDENTIFIED LOCAL COMMUNITIES IN RELATION TO THE
                      PROPOSED PROJECT ............................................................................................................6-13

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                  October 2018

ACRONYMS AND ABBREVIATIONS

 Acronym /                            Definition
 Abbreviation
 BIF                                  Banded Iron Formations
 CBD                                  Convention on Biological Diversity
 CCD                                  Counter Current Decantation
 CIL                                  Carbon in Leach
 EIA                                  Environmental Impact Assessment
 EMA                                  Environmental Management Agency
 EMV                                  Earth Moving Vehicle
 ESIA                                 Environmental and Social Impact Assessment
 ESMP                                 Environmental and Social Management Plan
 Ga                                   Gigaannum (one billion years)
 GDP                                  Gross Domestic Product
 I&APs                                Interested and Affected Parties
 IFC                                  International Finance Corporation
 km                                   kilometres
 ktpm                                 Thousand tonnes per month
 LOM                                  Life Of Mine
 NAP                                  National Action Programme
 NBSAP                                National Biodiversity Strategy and Action Plan
 PFS                                  Pre-Feasibility Study
 ROM                                  Run Of Mine
 SEP                                  Stakeholder Engagement Plan
 SI                                   Statutory Instrument
 tpm                                  Tonnes per month
 TSF                                  Tailing Storage Facility
 UNFCCC                               United Nations Framework Convention on Climate Change
 WRD                                  Waste Rock Dump
 ZETDC                                Zimbabwe Electricity Distribution Company
 ZIMASSET                             Zimbabwe Agenda for Sustainable Socio-Economic Transformation
 ZINWA                                Zimbabwe National Water Authority

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Bilboes Isabella- Mccays- Bubi Gold Sulphide Project                                                October 2018

1            INTRODUCTION

This chapter describes the purpose of this report, provides background to the proposed project,
summarises the legislative authorisation requirements, and describes the structure of the report and
the opportunity for comment.

1.1        PROJECT BACKGROUND
Bilboes Holdings (Pvt) Ltd (Bilboes) currently own and operate the Isabella-McCays-Bubi Oxide Complex,
which comprises three existing gold mining operations. The operations are located within the Bubi
District of the Matabeleland North Province of Zimbabwe. The Isabella and McCays Mines are located in
close proximity to one another, approximately 75 kilometres (km) north of Bulawayo, while the Bubi
Mine is located approximately 30 km further north-east of the Isabella-McCays complex. The regional
and local setting of the Isabella-McCays-Bubi Oxide Complex is illustrated in Figure 1-1 and Figure 1-2
respectively.

In summary, the operations at the each of the above-mentioned mines entail the removal of gold-
bearing oxide ores from opencast pits, leaching of gold from the mined ores on heap leach pads to
produce a gold liquor for carbon adsorption and electro-wining. The cathodes are ultimately processed
and smelted to produce gold Doré. The operations are currently on care and maintenance with activities
limited to the re-leaching of the heap leach pads.

1.2        OVERVIEW OF THE PROPOSED PROJECT
As part of their operations, Bilboes have identified additional gold-bearing sulphide ores beneath the
oxide orebodies within the existing open pits at the Isabella, McCays and Bubi Mines. The proposed
Bilboes Isabella- Mccays- Bubi Gold Sulphide Project entails the establishment of additional
infrastructure required at each of the three existing mines to facilitate the extraction, handling and
processing of the sulphide ores.

In order to extract the sulphide ores, the existing open pits would need to be mined deeper and wider.
The key focus of this ESIA is on the new infrastructure, including a new processing plant, and associated
Tailings Storage Facility, that would be required to process the gold from the sulphide ore. It is currently
proposed that this new infrastructure be established near the Isabella-McCays complex. In order to
facilitate the transportation of the mined sulphide ore from Bubi Mine to the new processing plant, a
new approximately 30 km haul road would also need to be established.

Other new infrastructure associated with the proposed project would include, waste rock dumps, a new
airstrip, a limestone quarry, and associated facilities at the proposed processing plant (including a road
network, offices, housing, power and water reticulation and other amenities). The planned
establishment of some of the proposed infrastructure would also necessitate the diversion of an existing
public road and powerline. A detailed description of the proposed project is provided in Section 4.

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                                                                                                                                                                                                                                                       SLR Consulting (Africa) (Pty) Ltd
                                                                                                                                                                                                                                               P O Box 1596, Cramerview, 2060, South Africa
                                                                                                                                                                                                                                               Tel: +27 (11) 467-0945 Fax: +27 (11) 467-0978
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