ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
ENVIRONMENTAL SCOPING REPORT
FOR THE PROPOSED DEVELOPMENT OF A
 STEEL SMELTER IN COLENSO, ALFRED
          DUMA MUNICIPALITY
      Prepared for: Tower Iron and Steel

        PREPARED BY: FUZE ENVIRONMENTAL SERVICES CC

                    Date: 16 October 2019

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
Document Details:

 Name of Document                Environmental Report:

                                 Proposed Construction of a Steel Smelter in Colenso, Alfred Duma
                                 Municipality.

                            Environmental Assessment Practitioner Details

 EAP Company Name                Fuze Environmental Services

 Consultant managing the         Jenitha Girdary
 Application

 EAP Consultant Contact          Email: jenitha@fuzeenvironmental.co.za
 Details
                                 Cell: 0820831691

                                 BB 188 King Senzangakhona Circle, Umlazi, Durban, 4066

                                 Cell: 0820831691

                                 Fax: 086 519 094

 Qualifications and              BA Geography
 Experience
                                 Jenitha has been employed in the environmental management sector
                                 since 2007. Her 12 years of work experience extends to undertaking
                                 Environmental impact assessments, Basic assessments, compiling
                                 EMPs, undertaking site visits and field work, permits applications, ECO
                                 work, environmental law, legal screenings, co-operative governance,
                                 public participation, rehabilitation project management, quality
                                 management, and financial management.

 Signature:

 Project Director                Nokuthula Nyuswa – BSc Geology

                                          Proponent Details

 Applicant name                  Malcolm de Beer – Tower Iron and Steel

 Representative                  Sibuniso Khumalo – Chrida Trading (project manager)

 Contact Details (project        Tel: 0604351200
 manager)
                                 Email: chrida.trading@gmail.com

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
Executive Summary:

1.Introduction
Tower Iron and Steel proposes to construct a smelter at the old Eskom Power station site in Colenso.
Site identification Coordinates: 28 44’ 03.16’’ S and 29 49’42.82’’ E. The site size is 35ha.

2. Applicable Legislation:
The project will require environmental authorisation from the KZN EDTEA. A Scoping and EIA process
is required prior to authorisation being issued.

The project will be subject a waste management licence application is terms of the Air Quality Act, 2004,
a water use licence from Department of Water and Sanitation and possibly a Waste Management
Licence in terms of the NEMA: Waste Act.

3. Description of Activity:
The activity will involve the construction and operation of a steel smelter. The plant will be a primary
production plant, utilizing iron ore. Iron ore based steelmaking represents about 60-70% of the world
steel production. The main raw materials are iron ore, coal, limestone and steel scrap (from within the
plant). The main production routes are ironmaking iron ore based on the Blast Furnace (BF) followed
by steelmaking in the Basic Oxygen Furnace (BOF).
In the BF, coke is the reducing agent of iron ore. Limestone or dolomite (fluxes) are added into the blast
furnace where they react with iron ore impurities, such as silica. Steel is produced from pig iron, scrap
and lime in the BOF, where oxygen is blown to burn off the carbon.
In BOF the reactions between oxygen, carbon (carbon as gaseous carbon monoxide), silicon,
manganese, phosphorus and some iron as liquid oxides produce oxidized compounds that react with
lime or dolomitic lime to form slag. At the end of the refining operation, after steel pouring into a ladle,
the slag is poured into a vessel and is subsequently tapped into a slag pot.
The Applicant, TSI, plans to bring the existing technology/plant from an operation in Limpopo for use in
the new Colenso smelter. Iron ore will be sourced from a mine owned by the TSI.

➢ The steelmaking basic process steps are:
- Coking of various grades of coking coal
- Agglomeration of Iron Ore fines by sintering
- Iron making in BF
-Lime & dolomite calcination in calcining plant
-Steel making in BOF
-Refining liquid steel in LF followed by VD
-Continuous casting of liquid steel to billets and slabs
-Processing of slabs and billets in the plate & coil and rod mill

➢ Facilities required:
-Coke Ovens & By-products Recovery Plant (COBP)
-Sinter Plant
-Air separation plant
-Blast Furnace and Basic oxygen furnace
-Lime/dolomite calcining Plant
-Steel Melt Shop
-Continuous Casting
-Rolling Mill

Service and Infrastructure required are Electricity, Water, Waste, Storm water.

4. Alternatives: There are no site alternatives as the property has been purchased form Eskom for
the smelter construction. Alternative technology could be an open hearth or cupola furnace, or electric
arc furnace, which are not suitable for primary production or are too resource and energy intensive.

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
5. Public Participation:

Public Participation undertaken thus far involved placing site notices to garner public interest in the
project. A newspaper advert will be placed in a local newspaper. A background document was
submitted to DWS, DAFF, EKZNW, DOT, the municipalities but no comment has been received except
from DAFF.

6. Need and Desirability:

The project will create jobs for locals as well as well stimulate the economy.

7. Description of affected environment:

-There will be a change of land use from a defunct industrial site to an active industrial site.
-The access road includes Sarsar road and Sir George street.
-Water, electricity and waste services will be required.
-The existing grass and tree cover on site will be removed to accommodate construction and operation
of the plant. No cattle grazing or sand mining will be allowed to continue on the property due to safety
reasons.
-The Thukela river forms the northern boundary of the site, there is also a tributary on the outer eastern
boundary (lies outside site area). No discharges are expected to occur to the river or tributary.
Job creation is expected during operation and construction.
Operation of the smelter can produce major air emissions, affecting air quality and contributing to
climate change, and causing noise. Air emission abatement technology is required to reduce air
pollution and prevent impacts on human health.

8. Impact Assessment:

Impacts are expected on:

-Geology and Soils
-Surface and ground water
-Visual
-Ecology (fauna and flora-biodiversity)
-Air quality (dust emission, noise and health and safety issues)
-Socio-economic and traffic

Specialist studies done at the EIA stage (included as well in the EMPr), will provide mitigation measures
and comment on whether the project should be authorised or not.

9. Plan of Study for EIA
The study will include commissioning of specialist studies (air quality, heritage and paleontology,
hydrology, ecology, geotechnical, and operational management plans). The EIA will assess impacts in
terms of their extent, duration, probability, reversibility, intensity in order to rank its significance. Public
participation will include site notices, newspaper advert, hosting of public meeting, and distribution of
draft EIA report to all IAPs and authorities and other registered persons; the EIA will also be made
available at the library

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
Table of Contents
1.     INTRODUCTION ............................................................................................................................. 8

1.1. Introduction and terms of reference .............................................................................................. ..8

1.2. Terms of reference ........................................................................................................................ ..8

1.3. Scope of Work and Methodology ..................................................................................................... 8

2.     APPLICABLE ENVIRONMENTAL AND PLANNING LEGISLATION ........................................... 9

2.1. The Constitution, Act No. 106 of 1996, Section 24 ......................................................................... 9

2.2. National Environmental Management Act No. 107 of 1998 (NEMA), ............................................. 9

2.3. The Environmental Conservation Act, Act 73 of 1989………………………………………………….8

2.4. The EIA Regulations, December 2014…………………………………………………………………10

2.5.The National Environmental Management Air Quality, Act 39 of 2004………………………………..10

2.6. National Heritage Resources Act No 25 of 1999 ........................................................................... 13

2.7. The KwaZulu Natal Amafa And Research Institute Act, 05 of 2018…………………………………13

2.8. Conservation of Agricultural Resources Act No 43 of 1983 ........................................................... 14

2.9. National Water Act No 36 of 1998 (NWA)...................................................................................... 14

2.10. National Environmental Management Biodiversity Act, No 10 of 2004……………………………. 14

2.11. KwaZulu Natal Nature Conservation Ordinance 15 of 1974…………….………………………….15

2.12. National Forest Act Act no. 84 of 1998..………………………………………………………………15

2.13. The Development Facilitation Act 67 of 1995)………………………………………………………..15

2.14. National Health Act, 2003 Act No. 61 of 2003…………………………………………………………15

2.15. Scoping and EIA process……………………………………………………………………………….15

3.     DETAILED DESCRIPTION OF THE PROPOSED ACTIVITY .................................................... .18

3.1. Site location .................................................................................................................................. .18

3.2 Site baseline status quo…………………………………………………………………………………..19

3.3 Proposed Layout…………………………………………………………………………………………..19

3.4 Process and Technology description…………………………………………………………………….21

3.5. Service and Infrastructure Requirements ...................................................................................... 29

3.5.1      Water ........................................................................................................................................ .29

3.5.2. Electricity ................................................................................................................................... 29

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
3.5.3. Waste ........................................................................................................................................ 29

3.5.4. Storm water ............................................................................................................................... 29

3.5.5. Roads ........................................................................................................................................ 29

4.     DESCRIPTION OF ALTERNATIVES ........................................................................................... 31

4.1 Site alternative ............................................................................................................................... 30

4.2. Layout alternative .......................................................................................................................... 31

4.3. Scheduling alternative…………………………………………………………………………...............32

4.4 Technology alternatives……………………………...........................................................................32

4.5 Process/Input alternatives………………………………………………………………….....................33

4.6. No go Option………………………………………………………………………………......................33

5.     PUBLIC PARTICIPATION ........................................................................................................... .34

6.    NEED AND DESIRABILITY.……………...…………………………………………………................36

7.    DESCRIPTION OF THE AFFECTED ENVIRONMENT ...............................................................37

7.1. Admisitrative description………………………………………………………………………………….37

7.2. Location, existing land use and status, access and services ....................................................... 37

7.3. Climate ......................................................................................................................................... 38

7.4. Topography...................................................................................................................................39

7.5. Geology…………………………………………………………………………………….....................39

7.5. Surface and groundwater .............................................................................................................. 40

7.6. Ecology .......................................................................................................................................... 41

7.7. Visual impacts ............................................................................................................................... 43

7.8. Air quality, dust and noise ............................................................................................................. 44

7.9. Heritage and Archaeological…………...........................................................................................44

7.10 Socio-economic……………………………………………………………………………....................46

8. PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT........................................................49

9. CONCLUSION..................................................................................................................................54

10. DRAFT PLAN OF STUDY FOR EIA PHASE..................................................................................56

11. References…………………………………………………………………………………………………59

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
Annexures:

Annexure A: Draft Layout plans and SG diagram
Annexure B: Site images
Annexure C: Proof of public participation
Annexure D: CV of EAP

List of Tables:

Table 1: Details and expertise of EAP (page 7)
Table 2: Preliminary listed activities applicable to project (page 9)
Table 3: Energy content of fuels and energy carriers (page 22)
Table 4: Materials required for production and sources (page 24)
Table 5: input and outputs for each component (page 25)
Table 6: expected potential air emissions (page 26)
Table 7: Waste generated and storage (page 27)

List of Figures:

Figure 1: Locality (page 17)
Figure 2: SG diagram (page 17)
Figure 3: Site layout view 1 (page 18)
Figure 4: Site layout view 2 (page 19)
Figure 5: Facility illustration 1 (page 19)
Figure 6: Facility illustration 2 (page 20)
Figure 7: Steelmaking process from iron ore (page 21)
Figure 8: NFEPA wetlands and watercourses on site
Figure 9: Vegetation type on site
Figure 10: C Plan for study area
Figure 11: Palaeontological sensitivity map

Acronyms:

TIS: Tower Iron and Steel (Applicant)
EDTEA: KZN Department of Economic Development, Tourism and Environmental Affairs
DEA: Department of Environmental Affairs
CA: Competent Authority
DOT: Department of Transport
DAFF: Department of forestry and fisheries
DWS: Department of Water and Sanitation
SR: Scoping report (DSR-draft scoping report; FSR-final scoping report)
S&EIR: Scoping and Environmental Impact Report
EIA: Environmental impact assessment
EIAR: Environmental impact assessment report
EMPr: Environmental management program report
UDM: Uthukela District municipality
ADM: Alfred Duma Local municipality
AEL: Air/atmospheric emissions license
WML: Waste management license
PP: Public Participation
PPP: Public Participation process
IAPs: Interested and affected parties

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
1. INTRODUCTION

1.1. Introduction and terms of reference
Tower Iron and Steel (Pty) Ltd (the Applicant) is proposing to develop a steel smelter in Colenso,
northern KZN. The development will include all associated services and infrastructure.

In line with environmental legislation, Tower Iron and Steel (Pty) Ltd has appointed Fuze
Environmental Services as the independent environmental consultants, to undertake the
necessary environmental impact assessment process for the proposed development and receive
environmental authorisation in terms of the National Environmental Management Act, 2008.

Details and expertise of the Environmental Assessment Practitioner (EAP)
Table 1: The following consultants are involved in the scoping phase of the development (CV and
undertaking by the EAP is attached as Appendix D):

 Name                              Company                     Qualification and Field of
                                                               expertise

 Jenitha Girdary (Lead EAP)        Fuze Environmental          Environmental consultant; BA
                                   Services                    Geography, 12 years’ experience
                                                               in undertaking Environmental
                                                               Impact Assessments, Monitoring
                                                               and Auditing.

1.2 Terms of Reference:

A full S&EIA is required for this development, the undertaking of which Fuze Environmental has
been appointed as EAP. Fuze Environmental is responsible for undertaking the environmental
authorisation process and submission of the final S&EIR reports to the CA. This report comprises
the scoping aspect of the assessment.

1.3 Scope of Work
The scope of work was undertaken according to the EIA regulations, 2014.

An Application for authorisation in terms of the National Environmental Management Act, 1998 and
the Environmental Impact Assessment Regulations, 2014 (as amended) will be submitted to the
KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA). The
EIA reference number will be assigned to the final scoping report following lodgement of the
application form, preceding receipt of all comments on this draft scoping report. Thereafter, the
EIA stage will commence. Scope of work includes baseline description of environmental aspects.

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
2. APPLICABLE ENVIRONMENTAL LEGISLATION, POLICY
   AND PLANNING
The application is governed by certain legislation. For the development and activities to comply
with legislation, it is necessary that the impact of the development be known before the Competent
Authorities can take a decision in issuing authorisation. Applicable legislation, regulations and
guidelines includes the following:

2.1. The Constitution of the Republic of South Africa (Act No. 108 of 1996)- Section 24

The Constitution of South Africa, Section 24, states that every person shall have the right to the
following:
     • An environment that is not harmful to their health nor wellbeing; and
     • To have that environment protected for the benefit of present and future generations,
         through reasonable legislative and other measures, that –
 −       prevent pollution and ecological degradation;
 −       promote conservation; and
 −       secure ecologically sustainable development and use of natural resources while promoting
 justifiable economic and social development.

This report will seek to assess both positive and negative impacts on the receiving natural and
anthropogenic environments, to enable a fair and equitable decision to be issued by the CA based
on these impacts.

2.2 The Environment Conservation Act (Act No. 73 of 1989)

The Environment Conservation Act allows the Minister to provide regulations regarding various
aspects of the environment.

2.3 National Environmental Management Act No. 107 of 1998 (NEMA),

The NEMA 107 of 1998 has been promulgated in part to:
     • Provide for co-operative environmental governance by establishing principles for decision
       making on matters affecting the environment;
     • Institutions that will promote co-operative governance and procedures for coordinating
       environmental functions exercised by organs of state, and;
     • To provide for matters connected therewith.
Furthermore, Section 2 of NEMA dictates that environmental management should adhere to the
following:
     • Avoid, minimize or remedy disturbance of ecosystems and loss of biodiversity;
     • Avoid degradation of the environment;
     • Avoid jeopardizing ecosystem integrity;
     • Pursue the best practicable environmental option by means of integrated environmental
        management;
     • Protect the environment as the people’s common heritage;
     • Control and minimize environmental damage;
-         Pay specific attention to management and planning procedures pertaining to sensitive,
          vulnerable, highly dynamic or stressed ecosystems, and
-         That a risk-averse and cautious approach is applied, which takes into account the limits
          of current knowledge about the consequences of decisions and actions
The EIA process and report is a tool for compliance with the NEMA.

2.4 The Environmental Impact Assessment Regulations of December 2014 (as amended)

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ENVIRONMENTAL SCOPING REPORT FOR THE PROPOSED DEVELOPMENT OF A STEEL SMELTER IN COLENSO, ALFRED DUMA MUNICIPALITY - Prepared for: Tower Iron and ...
The Environmental Impact Assessment regulations of 8 December 2014 as amended (GNR 326)
in terms of NEMA, specifies that an environmental assessment is required before any listed activity
contained there-in is undertaken. The regulations set out the procedures and criteria for the
submission, processing, consideration and decisions of environmental assessment applications.

In particular, the regulations promulgated in terms of sections 24(2) and 24D of the National
Environmental Management Act, 1998 (Act 107 of 1998), and the EIA Regulations, Listing Notice
1, (GNR 327), and Listing Notice 2 (GNR 325), require that the proposed activities be subject to
an Environmental Impact Assessment. As such all listed activities from Listing Notices 1 and 2 are
included in the EIA application, of which a scoping report is a pre requisite.

The proposed development possibly triggers the following activities, as included in the application
for authorisation form:

Table 2: Preliminary Listed Activities applicable to project

 Number       and   Activity      (in                      Description of each listed activity
 date of relevant   terms of     the
 notice:            relevant       or
                    notice)

 GNR        327,    Listing Notice 1,   It is possible that there may be temporary storage of a dangerous
 December 2014      Activity 13         substance on site during construction, and operation, exceeding 80
 (as amended)                           cubic meters but not more than 500 cubic meters. These will include
                                        fuel.

 GNR        327     Listing Notice 1,   The smelter may possibly need to develop and operate facilities and
 December 2014      Activity 25         infrastructure for the treatment of effluent, wastewater or sewage with a
 (as amended)                           daily throughput capacity of more than 2 000 cubic metres but less than
                                        15 000 cubic metres. This will be confirmed at EIA stage.

 GNR        325     Listing Notice 2,   The activity will comprise of the construction of a steel smelter plant,
 December 2014      activity 6          including the construction of an administration block and smelter plant,
 (as amended)                           pool and drainage. An air emissions licence is required prior to
                                        continuation of smelting activities.

 GNR        325     Listing notice 2,   The proposed site is approximately 35ha in extent. It is expected that
 December 2014      activity 15         around 15ha will be initially cleared for construction and operational
 (as amended)                           aspects, but this area could increase to over 20ha in future.

Listed activities as stated above, are described as activities that may not commence without
environmental authorisation from the Competent Authority. Note that all activities requiring a BA
(GNR 327 Activities) will be included in the S&EIR and assessed thereunder. Should additional
activities emerge during the scoping process, these will be included in the application form.

2.5 National Environmental Air Quality Act, (No. 39 of 2004)

The National Environmental Management Air Quality Act (NEMAQA) makes provision for the
publication of the Listed Activities and Minimum Emission Requirements, which require applicants
to apply for and obtain an Atmospheric Emissions License (AEL) from the District or Metropolitan
Municipality, via the South African Atmospheric Emission Licensing and Inventory Portal
(SAAELIP). SAAELIP is an online portal for the management of Atmospheric Emission Licences
(AEL) as well as the estimation and reporting of atmospheric emission inventories in terms of the
AQA. SAAELIP provides a seamless integration between the management of Atmospheric
Emission Licences and the reporting of atmospheric emissions into the National Atmospheric

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Emission Inventory System (NAEIS), application and submission of Atmospheric Emission
Licences online, application status tracking, submission of emission compliance reports online,
and tracking historical versions of all applications and emissions reports.

The following listed activities, which may be applicable to the project, require an Atmospheric
Emissions Licence in terms of the AQA, are identified below:

Subcategory 4.5: Sinter plants
Subcategory 4.6: Basic Oxygen furnace steel making
Subcategory 4.8: Blast furnace operations
Subcategory 4.9: Ferroy alloy productions
Subcategory 4.10: Foundaries
Subcategory 4.11: Agglomeration operations
Subcategory 4.12: Pre-reduction and direct reduction

South Africa has published a National Climate Change Response White Paper (October 2011) that
presents the Government’s vision for an effective climate change response and the long-term, just
transition to a climate resilient and lower-carbon economy and society.

South Africa used the Air Quality Act to regulate greenhouse gas emissions.

Declaration of GHGs as priority air pollutants:

The Minister declared the following greenhouse gases as priority air pollutants and require a
person falling within the category specified in the notice to prepare and submit to the minister a
pollution prevention plan for approval, in terms of section 29(1) read with section 29(4) of the
National Environmental Management: Air Quality Act, 2004 (Act No. 39 of 2004): Carbon dioxide
(CO2); Methane (CH4); Nitrous oxide (N2O); Hydrofluorocarbons (HFCs); Perfluorocarbons
(PFCs); and Sulphur hexafluoride (SF6).

The iron and steel industry is an emitter of some of the priority pollutants.

Annexure A of the Act identifies steel and iron production (Ai) as a person required to submit such
a plan if the emission of greenhouse gases are in excess of 0.1 Megatonnes (Mt) annually, reported
as carbon dioxide equivalents, and/or if so directed by the Minister. Note that this plant is not
expected to exceed the limits for which reporting is required.

There are various applicable regulations published under the AQA, which must be compiled with
when applying for an AEL and operating a facility by an an emitter (including steel and iron
production). These are:

-National Pollution Prevention Plans Regulations -29 (3) of the Act
-National Greenhouse Gas Emission Reporting Regulation- in terms of section 53 (aA), (o) and (p)
read with section 12 of AQA (the steel plant will be required to report should the emission exceed
the specified limits)
-Greenhouse Gas Emission Monitoring (compliance reports during operation must be submitted
through SAAELIP and will form part of the national inventory)

International Policy and Frameworks:

South Africa has ratified several multilateral environmental agreements relating to air quality and
is obligated to implement the conditions of these agreements.

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South Africa’s commitments in the international arena address three major air quality issues,
namely, greenhouse gases and associated climate change; stratospheric ozone depletion and
persistent organic pollutants.

United Nations Framework Convention on Climate Change (UNFCCC):

The United Nations Framework Convention on Climate Change (UNFCCC) provides the
framework for addressing climate change as a global issue. It provides a broad consensus for
establishing institutions and practices to address climate change by introducing processes of on-
going review, discussion and information exchange.

South Africa ratified the UNFCCC in August 1997, and is classified as a non-Annex 1 Party, or a
developing country. South Africa has obligations as stated in Article 4 Paragraph 1 of the UNFCCC,
including the preparation of the National Communication, which incorporates an inventory of
greenhouse gases (GHGs), need for implementation of national ang regional programs for climate
change mitigation and adaptation. In December 2015, countries across the globe committed to a
new International Climate Agreement at the UNFCCC Conference of the Parties (COP21) in Paris,
which is called “The Paris Agreement”. In preparation for the Paris Agreement, countries agreed
to publicly outline what post-2020 climate actions they intend to take under a new international
agreement, known as their Intended Nationally Determined Contributions (INDCs).

IPCC is an international body for assessing the science related to climate change. It was set up in
1988 by the World Meteorological Organization (WMO) and United Nations Environment
Programme (UNEP) to provide policymakers with regular assessments of the scientific basis of
climate change, its impacts and future risks, and options for adaptation and mitigation.

The IPCC assessments provide a scientific basis for governments at all levels to develop climate
related policies, and they underlie negotiations at the United Nations Framework Convention on
Climate Change (UNFCCC). The assessments are policy-relevant but not policy-prescriptive. They
may present projections of future climate change based on different scenarios and the risks that
climate change poses and discuss the implications of response options, but they do not prescribe
to policymakers what actions to take.

The proposed steel plant will be an emitter and must incorporate best available techniques to
reduce its emissions and become more efficient. South Africa has a role to play in achieving the
required 20C reduction, as required by 2050, which is mainly achievable by reducing CO2
emissions. Additionally, industries across the world, particularly iron and steel, are the largest
emitters and need to continue efforts at emission reduction.

South Africa is also signatory to the Montreal Protocol on Substances that deplete the Ozone
Layer; the Stockholm Convention on Persistent Organic Pollutants; and the Minamata Convention,
which was signed in Minamata, Japan.

Noise Control Regulations

The National Environmental Management: Air Quality Act 39 of 2004 (NEMAQA) contains noise
control provisions under Section 34. The Noise Control Regulations give all the responsibilities of
enforcement to the Local Provincial Authority, where location specific by-laws can be created and
applied to the locations with approval of Provincial Government. Where province-specific
regulations have not been promulgated, acoustic impact assessments must follow the Noise
Control Regulations.

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These regulations define the following:

Ambient Sound Level: the reading on an integrating impulse sound level meter taken at a
measuring point in the absence of any alleged disturbing noise at the end of a total period of at
least 10 minutes, after such meter had been put into operation;

Zone Sound Level: a derived dB(A) value determined indirectly by means of a series of
measurements, calculations or table readings and designated by a local authority for an area; and

Disturbing Noise: a noise level which exceeds the zone sound level or, if no zone sound level has
been designated, a noise level which exceeds the ambient sound level at the same measuring
point by 7 dB(A) or more. With the above definitions in mind, regulation 4 of the Noise Control
Regulations stipulate that no person shall make, produce or cause a disturbing noise, or allow it to
be made, produced or caused by any person, machine, device or apparatus or any combination
thereof.

All noise monitoring and assessments are currently done in accordance with the SANS
10103:2008 and 10328:2008. In terms of SANS, an industrial district is classified as ‘F’ with a ‘70’
dB(A) for outdoors during daytime and a 60 dB(A) for outdoors for night.

Noise emissions from the plant must be in accordance with accepted norms for noise emissions
and all noise measurements must be done in accordance with these guidelines.

2.6 National Heritage Resources Act No. 25 of 1999

The National Heritage Resources Act established the South African Heritage Resources Agency
(SAHRA) in 1999. SAHRA’s undertaking is to protect heritage, archaeological, paleontological
(including meteorites), structures older than 60 years and human remains as resources of potential
national significance. The act also requires a heritage and archaeological impact study to be done
in order to determine whether any resources as listed above will be impacted and sets forth
procedures prior to disturbance of any such resources. SAHRA also introduced an integrated,
interactive system for identification of areas of possible cultural interest and management of
resources.

A Heritage and desktop paleontological report is commissioned for the project, and any alterations
to buildings/structures older than 60 years, or any relocations to graves, will be subject to a permit.

2.7 The KwaZulu Natal Amafa And Research Institute Act, Act 05 of 2018

The Act has the purpose to provide for the conservation, protection and administration of both the
physical and the living or intangible heritage resources of the Province of KwaZulu-Natal.

The proposed project may impact on graves, structures, archaeological and palaeontological
resources that are protected in terms of sections 37, 38, 39, and 40 of the KwaZulu-Natal Amafa
and Research Institute Act, 2018. Permits will be required prior to alteration or destruction of such
resources.

All heritage/cultural findings of high significance will be excluded from development, including all
graveyards.

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2.8 Conservation of Agricultural Resources Act No 43 of 1983

The aim of this act is to provide for the conservation of the natural agricultural resources of South
Africa”…by the maintenance of the production potential of land, by the combating and prevention
of erosion and weakening or destruction of water sources, and by the protection of the vegetation
and the combating of weeds and invader plants.

This act will require that all wetlands that may be located on site are maintained as development
free zones where possible, that erosion is prevented in the first instance and rehabilitated where
prevention was unsuccessful, and that pollution of soil is prevented and rehabilitated where
accidental pollution has occurred.

2.9 National Water Act No 36 of 1998 (NWA)

The NWA allows for the nation’s water resources to be protected, used, developed, conserved,
managed and controlled. In undertaking these actions, the Act requires that several factors need
to be taken into account including the protection of aquatic and associated ecosystems and their
biological diversity as well as reducing and preventing pollution and degradation of water
resources, particularly chapter 4.
Section 21 of the Act identifies certain developmental and operational activities that require
authorization (licensing) from the DWS, including certain activities within 500m of a wetland or
within a watercourse (regulated areas). A water use must be licensed unless it is listed in Schedule
I, is an existing lawful use, is permissible under a general authorization, or if the authority waivers
the need for a license.
The water uses to be authorized which could be applicable to the proposed development are listed
below and will be confirmed at the EIA stage:
21(b): Storing water;
21(c): Impeding or diverting the flow of water in a watercourse (for wetlands within 500m of the
project boundary)
21(g): Disposing of waste in a manner which may detrimentally impact on a water resource;
21(i): Altering the bed, banks, course or characteristics of a watercourse; (for wetlands within 500m
of the project boundary)
The National Water Act / DWS has also produced requirements for pollution prevention plans,
which must be incorporated into the operational plans for the development.

A water use licence application will be lodged with DWS parallel to the submission of the final EIR
to the CA and after confirmation of all water uses requiring a licence. The application will comply
with regulation GNR267 of the NWA.

2.10 The National Environmental Management: Biodiversity Act (Act 10 of 2004) (NEMBA)
The Act provides for “the management and conservation of South Africa’s biodiversity within the
framework of NEMA, the protection of species and ecosystems that warrant national protection,
and the use of indigenous biological resources in a sustainable manner, amongst other provisions”.
NEMBA states that the loss of biodiversity through habitat loss, degradation or fragmentation must
be avoided, minimised or remedied. The loss of biodiversity includes inter alia the loss of
threatened or protected species.
NEMBA lists 225 threatened ecosystems based on vegetation types present within these
ecosystems. Should a project fall within a vegetation type or ecosystem that is listed, specific
actions in terms of NEMBA are triggered.
Based on the preliminary sensitivity screening undertaken, as well as the pre-disturbed nature of
the proposed site, none of the threatened ecosystems occur within the immediate development
footprint of the study site. The riparian area is to be excluded from development.

2.11 KwaZulu Natal Nature Conservation Ordinance (Ordinance 15 of 1974)
The Nature Conservation Ordinance (NCO) makes provision for protected areas (including private
nature reserves) and protection of flora and fauna. The KZN Nature Conservation Ordinance No.

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15 of 1974 also contains plant schedules (schedule 10, 11 and 12) for protected indigenous flora
requiring permits prior to removal/relocation.
Should any protected plants be removed to accommodate development of the steel smelter, then
a permit must first be obtained by Ezemvelo KZN Wildlife in terms of the NCO.

2.12 National Forest Act (Act no. 84 of 1998) (NFA)
The purposes of the National Forests Act are to: (a) promote the sustainable management and
development of forests for the benefit of all; (b) create the conditions necessary to restructure
forestry in State forests; (c) provide special measures for the protection of certain forests and trees;
(d) promote the sustainable use of forests for environmental, economic, educational, recreational,
cultural, health and spiritual purposes; (e) promote community forestry; (f) promote greater
participation in all aspects of forestry and the forest products industry by persons disadvantaged
by unfair discrimination.

The NFA proposes listed tree species that require a permit prior to removal, as well as prior to
destruction of trees located in a ‘forest’. A forest is defined as a group of three or more indigenous
tree species with interlocking canopies, exceeding 1.6m in height.

Should any listed tree species, or any ‘forests’ need to be removed to accommodate construction,
permits must be secured from DAFF prior to such destruction.

2.13 The Development Facilitation Act (Act 67 of 1995)
The Development Facilitation Act (Act 67 of 1995) (DFA) sets out a number of key planning
principles which have may have a bearing on assessing proposed developments in light of the
national planning requirements. The planning principles most applicable to the study area include:
-Promoting the integration of the social, economic, institutional and physical aspects of land
development;
-Promoting integrated land development in rural and urban areas in support of each other;
-Promoting the availability of residential and employment opportunities in close proximity to or
integrated with each other;
-Optimizing the use of existing resources including such resources relating to agriculture, land,
minerals, bulk infrastructure, roads, transportation and social facilities;
-Contributing to the correction of the historically distorted spatial patterns of settlement in the
Republic and to the optimum use of existing infrastructure in excess of current needs;
-Promoting the establishment of viable communities; and
-Promoting sustained protection of the environment.

2.14. National Health Act, 2003 (Act No. 61 of 2003)
This Act refers to the performing of environmental pollution control by municipalities. Municipal
health services are defined as including the responsibility for environmental pollution control. The
responsibility for municipal health services rests with metropolitan and district municipalities.
National and provincial departments of health have the duty to perform environmental pollution
control.
Air quality management falls within environmental pollution control, due to the possibility of causing
health impacts.

The proposed steel plant has the potential to affect human health through emissions, improper
waste disposal and handling practices. The AEL will regulate the amount of emissions permitted
from the plant, so that human health is not adversely affected.

2.15 The Scoping and EIA Process and Impact Assessment Methodology (EIA Regulations,
December 2014, as amended)

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A Scoping and Environmental Impact Assessment Reporting process (S&EIR) is a process of
collecting, organising, analysing, interpreting and communicating relevant information to the
competent authority. The competent authority needs to be presented with all the available
information to obtain an independent and objective view of the potential environmental impacts
that could arise as a result of the construction of the proposed development. In addition, a S&EIR
is a tool that incorporates the views and requirements of the general public and all interested and
affected parties.
This scoping report is inclusive of background research on the proposed development area,
consultation with key stakeholders and appointment of specialists. Public Participation is
conducted to identify the concerns of all I&APs at the initial scoping stage (carried forward and
addressed in detail at the EIA stage). All issues thus far are included in this report. Positive and
negative impacts shall be investigated and means to mitigate negative impacts and enhance
positive impacts will be addressed in the EIA phase, which shall follow from this scoping phase.
As per the EIA regulations, the objective of the scoping process is to, through a consultative
process-
(a) identify the relevant policies and legislation relevant to the activity;
(b) motivate the need and desirability of the proposed activity, including the need and desirability
of the activity in the context of the preferred location;
(c) identify and confirm the preferred activity and technology alternative through an identification
of impacts and risks and ranking process of such impacts and risks;
(d) identify and confirm the preferred site, through a detailed site selection process, which includes
an identification of impacts and risks inclusive of identification of cumulative impacts and a ranking
process of all the identified alternatives focusing on the geographical, physical, biological, social,
economic, and cultural aspects of the environment;
(e) identify the key issues to be addressed in the assessment phase;
(f) agree on the level of assessment to be undertaken, including the methodology to be applied,
the expertise required as well as the extent of further consultation to be undertaken to determine
the impacts and risks the activity will impose on the preferred site through the life of the activity,
including the nature, significance, consequence, extent, duration and probability of the impacts to
inform the location of the development footprint within the preferred site; and
(g) identify suitable measures to avoid, manage or mitigate identified impacts and to determine the
extent of the residual risks that need to be managed and monitored.

The following methodology was adopted for this Environmental Scoping report:
   • Conducting a preliminary meeting with the relevant environmental authority;
   • Undertaking a site inspection;
   • Conducting a baseline assessment of environmental attributes and potential impacts and
        mitigation
   • Identifying potential Interested and Affected Parties (IAP’s), and relevant authorities;
   • Supplying Background information to IAP’s and relevant authorities;
   • Advertising (Local newspaper and displaying on-site notices at strategic locations);
   • Identification and brief evaluation of impacts and alternatives;
   • Compilation of this draft Environmental Scoping report and plan of study for the EIA in
        accordance with the EIA regulations and objectives of the scoping phase; and
   • Circulation of this draft scoping report for a 30-day comment period

Baseline Description of Environmental aspects:

Collection of baseline information was undertaken during a site inspection conducted during
August 2019 in order to establish the sensitivity of the environment to potential impacts and to
determine restrictions that the environment may have on the development.
Information on the biophysical and socio-economic parameters was gathered during this site
inspection and desktop study. Information was also obtained from existing reports, aerial
photography, municipal development and framework plans and the 1:50 000 topographical maps
for the area.
The baseline environmental parameters/attributes investigated were:

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•   Land-use;
    •   Topography;
    •   Geology and Soils;
    •   Surface and groundwater;
    •   Ecology (fauna, flora, wetlands and watercourses);
    •   Air Quality;
    •   Noise;
    •   Visual;
    •   Heritage and cultural;
    •   Socio-economic; and
    •   Safety and security.

The EIA phase will focus on a detailed and comprehensive analysis of report of the environmental
attributes, identified impacts and issues of concern, identified herein.
The CA would either accept or reject the final Scoping Report (and subsequent EIA report), based
on the information provided. In the event of a rejection, the report will be amended according to
the CA requirements and resubmitted. Once the final Scoping Report has been accepted, the EIA
phase will commence proper.

The various environmental impacts that would arise as a result of the proposed development will
be identified and evaluated in terms of their relative extent, severity and significance, within the
EIA phase. Activities within the framework of the proposed development, and their respective
construction and operational phases give rise to certain impacts. For the purpose of assessing
these impacts, the development will been divided into three phases at the EIA phase as follows.-

▪Pre-construction phase/preliminary activities: Planning stage

▪ Construction phase: activities to be conducted during the actual construction of the development
and immediately after construction is completed

▪ Operational phase: activities conducted when the development is operational

Impact Assessment Methodology to be adopted

The methodology that will be used to rate the impacts at the scoping stage is qualitative. Each
category is divided into different levels. These levels are assigned various criteria. These criteria
were drawn from the National Environmental Management Act, 1998 (Act No.107 of 1998) as
amended and the Environmental Impact Regulations, 2014. The impacts shall be discussed further
at the EIA phase, employing a qualitative and quantitative approach.

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3. DETAILED DESCRIPTION OF THE PROPOSED ACTIVITY
3.1 Site Location

The proposed site is located on Lot 947, Colenso. Colenso is located within Alfred Duma local,
and Uthukela district municipalities. Co-ordinates for centre point of site: 280 44’ 03.16’’ S and
290 49’42.82’’ E. The total size of the site is 35ha.

                                              Site

Figure 1: locality showing the town of Colenso and the site. Refer to Annexure A for locality.

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Figure 2: SG diagram and site configuration. Refer to annexure C, for coordinates for boundary of site

3.2 Site Baseline status quo

The proposed development comprises of the construction of a steel smelter plant, an admin
building and associated infrastructure. The existing structures on site comprise of pools/dams,
manholes, coal hoppers, remnants of foundations, and cooling towers, previously under Eskom
ownership. The towers will be used as per TIS, as will the pools. Gravel access roads are located
within the property. The total size of the site is 35ha, however, initially, only 15ha is expected to be
used, but the extent will increase following an increase in production.

A railway line and servitude form the southern border, with the Tugela river creating the northern
border. Eskom pylons and servitude are also noted on site. The old Eskom substation is located
to the west of the site. Old Eskom abandoned buildings and houses are noted to the south, south
west and north west of the site boundary. The site itself was part of the old, decommissioned
Eskom Colenso power plant, which also had a village to cater for the workers at the plant. A recent
swimming pool and sports ground were noted on the eastern boundary of the site. A graveyard
was also noted on site.

3.3 Proposed layout

The proposed development consists of a new smelter plant and admin building, comprising of
offices, boardroom, washrooms, canteen, parking, ingress and egress points, loading,
stockpile areas, and delivery zones. Refer to Appendix C for various layouts and illustration.

Figure 3: Site layout view 1

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Figure 4: site layout view 2

Figure 5: Facility illustration 1

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Figure 6: Facility illustration 2

3.4 Technology and Process description

The plant will be a primary production plant, utilizing iron ore. Iron ore based steelmaking represents
about 60-70% of the world steel production. The main raw materials are iron ore, coal, limestone
and steel scrap (from within the plant). The main production routes are ironmaking iron ore based
on the Blast Furnace (BF) followed by steelmaking in the Basic Oxygen Furnace (BOF).

In the BF, coke is the reducing agent of iron ore. Limestone or dolomite (fluxes) are added into the
blast furnace where they react with iron ore impurities, such as silica. Steel is produced from pig
iron, scrap and lime in the BOF, where oxygen is blown to burn off the carbon.

In BOF the reactions between oxygen, carbon (carbon as gaseous carbon monoxide), silicon,
manganese, phosphorus and some iron as liquid oxides produce oxidized compounds that react
with lime or dolomitic lime to form slag. At the end of the refining operation, after steel pouring into
a ladle, the slag is poured into a vessel and is subsequently tapped into a slag pot.

The Applicant, TSI, plans to bring the existing technology/plant from an operation in Limpopo for use
in the new Colenso smelter. Iron ore will be sourced from a mine owned by the TSI.

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Figure 7: Steel making process from iron ore:

 ➢ The basic steelmaking process steps are:
 - Coking of various grades of coking coal
 - Agglomeration of Iron Ore fines by sintering

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- Iron making in BF
-Lime & dolomite calcination in calcining plant
-Steel making in BOF
-Refining liquid steel in LF followed by VD
-Continuous casting of liquid steel to billets and slabs
-Processing of slabs and billets in the plate & coil and rod mill

➢ Facilities required:
-Coke Ovens & By-products Recovery Plant (COBP)
-Sinter Plant
-Air separation plant
-Blast Furnace and Basic oxygen furnace
-Lime/dolomite calcining Plant
-Steel Melt Shop
-Continuous Casting
-Rolling Mill

➢ Description of Process*
Integrated primary steelmaking is characterized by networks of interdependent material and
energy flows between the various production units including sinter plants, coke oven plants, blast
furnaces and basic oxygen steel making plants with subsequent casting. Steel making from
integrated plants are characterized by iron making and subsequent steelmaking processes.

Table 3: Energy content of fuels and energy carriers:
Fuel                     Unit   LHV (MJ/unit)       Energy          Unit   Energy             intensity
                                                    carrier                (MJ/unit)

Coke                     kg     28.435              Fresh water     t      2.51

Cleaned coal             kg     26.344              Oxygen          m3     11.72

Steam (low pressure)     t      3.763               Nitrogen        m3     11.72

BF gas                   m3     3.763               Argon           m3     –

Coke gas                 m3     16.726–17.981       Blow            m3     0.88

                                                    Electricity     kWh    3.6

                                                                                   Source: Lee et al, 2017

Integrated steelworks:

The blast furnace is the main operational unit producing iron (pig iron). The two types of iron ore
preparation plants are sinter and pellet plants. Coke and powdered coal are the main reducing
agents in the blast furnace. The slag from the furnace is granulated, pelletised or tapped into slag
pits. The liquid iron is transported to a basic oxygen furnace where carbon content is lowered.
Upstream ladle desulphurization of the pig iron and downstream ladle metallurgy of the steel may
also be applied. On leaving the basic oxygen furnace the liquid steel is cast either into ingots or
by means of continuous casting.*

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Sinter Plants: Sintering involves agglomerating the furnace charge, which consists of a mixture of
fine ores, additives, iron-bearing, recycled material from downstream operations such as course
dust and sludge from blast-furnace gas cleaning, mill scale, casting scale etc., to which coke
breeze is added for ignition purposes.

Sinter plant operations include:
-Blending and mixing of raw materials;
-Sinter strand operations;
-Hot sinter screening and cooling

Coke Oven Plants: Coal pyrolysis involves the heating (1,000 – 1,100 ) of coal in an oxidation free
atmosphere to produce gases, liquids and a solid residue (char or coke). This produces blast
furnace and foundry cokes. Coke is the primary reducing agent in blast furnaces active both as a
support material and a matrix through which gas circulates in the stock column.

The coke making process can be subdivided into:
-Coal handling
-Battery operation (coal changing, heating/firing, coking, coke pushing, coke quenching) and coke
handing and preparation
-Collection and treatment of coke oven gas
-Coke oven water flows.

Blast Furnace: A blast furnace is a closed system into which iron bearing materials (iron ore, lump,
sinter), additives (slag formers such as limestone) and reducing agents (coke) are continuously
fed from the top of the furnace shaft through a charging system that prevents escape of blast
furnace gas. A hot air blast enriched with oxygen and auxiliary reducing agents (coal, powder, oil,
natural gas and in a few cases plastics) are injected on the tuyere level providing a counter-current
of reducing gases. The air blast reacts with the reducing agents to produce mainly carbon
monoxide, which in turn reduces iron oxides to metal iron. The liquid iron is collected in the hearth
along with the slag and both are cast on a regular basis. The liquid iron is transported in torpedo
vessels to the steel plant and the slag is processed to produce aggregate, granulate or pellet for
road construction and cement manufacture. The blast furnace gas is collected at the top of the
furnace. It is treated and distributed around the world to be used as a fuel for heating or electricity
production.

The main operations are:
-Charging of raw materials;
-Generation of hot blast
-Blast furnace operation
-Direct injection of reducing agents
-Casting
-Slag processing

Basic Oxygen Steel Making and Casting
The Basic Oxygen Furnace (BOF) is then used to produce steel.
The objective in oxygen steel making is to burn (oxidise) the undesirable impurities in the metallic
feedstock. The main elements oxidised are carbon, silicon, manganese, phosphorous and
sulphur.
The production of steel by the BOF process is a discontinuous process involving the following
steps:
-Transfer and storage of hot metal;
-Pre-treatment of hot metal (desulphurisation);
-Oxidation in the BOF (decarburisation and oxidation of impurities);
-Secondary metallurgical treatment;

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