APPENDIX A16: FULENI FORUM ENGAGEMENT

IBUTHO COAL SUMMARY OF THE FIRST FULENI MINING FORUM SUNDAY, 10TH AUGUST 2014 1. INTRODUCTION Attached is the Agenda we followed at the Sunday meeting.

Mr Ndlela from

Ingonyama Trust board was also in attendance. Mr Ndlela is the community liaison officer for ITB. I had invited him after the Wednesday meeting which was arranged by the Mhlana Traditional council, with DMR, a Group of People opposing the mine and Ingonyama Trust. You will get separate report on this meeting, which Locksley is preparing. I invited Mr. Ndlela on Saturday afternoon so that he could understand what we intent to achieve at this meeting, and crafted the attached agenda. 2. SUMMARY OF THE MEETING HOUSEKEEPING: We needed to keep some records straight regarding the following issues: Transporting of Forum members - There will be 3 drivers paid R500 each



for transporting members to the meetings. One for Ntuthunga 1 and 2 , second for Ocilwane and Novunula and third Fuyeni and emakhwezini Hiring of Venue – We agreed to host all the Forum meetings at the



Municipal hall as it is well equipped to do presentations Arrangements for community meetings ( see Below)



Catering – We will use a registered company from the community at no



more than R80 a person for catering purposes Reporting – (see attached forms) these were discussed as we expect all forum members to report back to various stakeholders, For now we report to the Traditional council, community and Inkosi.

This will eliminate cases

where people deny issues discussed at the meetings and cost us to conduct the same meeting over and over again 3. TERMS OF REFERENCE. These were read and every member has a copy and in agreement with the terms. I stressed that if these are not signed, we will not be recognised by any structure, either the DMR, Ingonyama Trust Board or Inkosi himself. A signed copy will be finalised by the 24th of August. Please note that there were new members from eMakhwezini and Fuyeni that had to be brought to speed with these items. 4. VALUES This item was not discussed, will be dealt with at the next meeting.

IBUTHO COAL SUMMARY OF THE FIRST FULENI MINING FORUM SUNDAY, 10TH AUGUST 2014 5. OVERVIEW BY INGONYAMA TRUST Mr Ndlela outlined what their role as ITB was and how they work with communities in the mining areas. He encouraged people that the only time ITB will enter into a lease agreement with Ibutho regarding mining activities, will be when Ibutho has entered into some form of agreements with the communities or addressed all issues that communities are raising as they continue to engage with Ibutho. He committed to attend these meetings and assist to guide where needed. It appeared that when the Mhlana Traditional Council signed the consent form with Ibutho to prospect, communities were not informed. Personally, I know that this is not true. The Traditional council is composed of Izinduna who would be expected to communicate these decisions with the communities. We have pictures, minutes and dates when and which communities we visited in the past 5 years. But, Inkosi’s son will be engaged by Ingonyama Trust and the forum to verify this on the 17th of August. Ibutho will not attend this meeting. But we are currently compiling the evidence of these meetings. Mr Ndlela also stressed that as long as communities are not capacitated, we will continue to face problems. As a mining company, we should invest in such programme of educating and enlightening the communities, and then we will get better cooperation. 6. IBUTHO COMMUNICATION STRATEGY AND STAKEHOLDER ENGAGEMENT PLAN At the meeting with Inkosi on Tuesday and the Traditional Council meeting the following day, it became clear that there is a lot of confusion in terms of engaging the communities regarding our project. Firstly, we engaged communities where we informed them of the prospecting work in their areas, these have been going on for the past 5-6 years. Now there is engagement at the different level, where we bring along specialists both technical and from the environmental point of view. The level of comprehension for these community is not at the same as ours, therefore confusion come from the fact that even if we can continue to engage, we still need to educate them as to what we are doing, why , how long , etc. , while we are stressing that we are still operating under the PR concern form signed in 2007.

IBUTHO COAL SUMMARY OF THE FIRST FULENI MINING FORUM SUNDAY, 10TH AUGUST 2014 7. GENERAL Each member was issued with a file, where we explained what they should expect, from now going forward. When we discuss the EIA or scoping report, we will have specialists doing just that, and all questions related to that will be addressed and attended to. We shall prepare information relating to the topic being discussed at each meeting. This will clear a lot of confusion that is currently being experienced, and people will feel more empowered about the project and mining in general. We will also distribute information from other government departments addressing issues raised by communities or forum members

:- for an example – relocation of people or graves – guidelines from the relevant department , Section 11 which was also of great concern , in the event that Ibutho sells its rights to a new owner what will happen to the promises and agreements we are signing . 8. SCHEDULED MEETINGS We agreed to the following dates:- . I would like to get the team members committing to these dates so that we can prepare relevant information required at the meetings FORUM MEETINGS MONTH

ISSUES TO ADDRESS

August

24

September

14

Scoping report

28 October

12 26

November

9 23

COMMUNITY MEETINGS (Lebo and Thembi to attend) 31 August – Ocilwane From September to November we will allocate one Sunday to go to all communities. This means there will be only 3 meetings before end of the year for communities meetings.

IBUTHO COAL SUMMARY OF THE FIRST FULENI MINING FORUM SUNDAY, 10TH AUGUST 2014

9. CONCLUSION We are getting support from the community; we just need to ensure that we are capacitating people. A detailed plan for community engagement and facilitation will be crafted after our meeting with Mr Ndlela and Locksley this week.

IBUTHO COAL HOLDINGS MINUTES OF THE FULENI MINING FORUM MEETING DATE: SUNDAY, 24TH AUGUST 2014 TIME: 10H00 VENUE: KWAMBONAMBI MUNICIPALITY COMMUNITY HALL

ATTENDEES

APOLOGIES

AS PER ATTENDANCE REGISTER

Mr. Vilakazi – Ntuthunga 1 Ms. Neli Magubane – Ntuthunga 2 Mr. Mdunge – Emakhwezini Mr. Ndlela – Ingonyama Trust Board

ITEM

DESCRIPTION

ACTION BY

1.

OPENING PRAYER 1.1. Mrs. Hlengiwe Ndlovu opened the meeting with a prayer.

NOTED

WELCOME 2.1. Thembi Myeni welcomed all to the meeting.

NOTED

APOLOGIES 3.1. The apologies were noted as follows:

NOTED

2.

3.

Mr. Vilakazi – Ntuthunga 1 Ms. Neli Magubane – Ntuthunga 2 Mr. Mdunge – Emakhwezini Mr. Ndlela – Ingonyama Trust Board 4.

5.

6.

7.

READING OF MINUTES AND QUESTIONS 4.1 Minutes were read by Thembi Myeni. ADOPTION OF MINUTES 5.1 Minutes were not adopted as it omitted the following: 5.1.1 Who is Ibutho – ownership. This point was addressed by Thembi Myeni and she outlined the shareholding to the attendees. 5.1.2 Will Ibutho mine or contract this activity out – Thembi Myeni responded that we have not made any decisions as to how the Company will operate since we are still at the early stages of our application.

NOTED

NOTED NOTED

MATTERS ARISING 6.1 TERMS OF REFERENCE – It was noted that this will only be signed completely after the Community Meetings take place.

NOTED

6.2

VALUES – It was noted that this will be addressed at the next meeting.

NOTED

6.3

APPOINTMENT OF OFFICE BEARER – It was noted that this will be addressed at the next meeting.

NOTED

MINING & ENVIRONMENTAL AUTHORISATION PRESENTATION 7.1. The presentation was conducted by Marietjie Eksteen (Jacana Environmental Cc.) with Mr. Mchunu (Local School teacher) as the translator.

NOTED

7.2

NOTED

The purpose of the presentation was to:  Provided background on the Fuleni Project  Outlined and explained the Environmental Authorisation Process  Highlighted potential community impacts and benefits  Outlined the public participation process

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ThembiNkosi Zulu

Norman Shange

Enoch Chonco

Mtholile Lembethe

Lungile Thabethe

Mr. Mhlongo

Mr. Zulu

QUESTION/CLARIFICATION

Why is the project referred to as “Fuleni” instead of “Efuyeni”.

Is the Scoping Report complete. If so Ocilwane household count has not been done.

The maps shown are not Clear

Is the Company going to compensate people that will be affected by the mine

Is the mining going to be opencast or underground.

Did Ibutho find any Coal in eFuyeni and Emakhwezini

When the blasting underground mining take place will Fuyeni and Emakhwezini people by affected.

How far will the underground extend

8.1

NO.

8.1.1

8.1.2

8.1.3

8.1.4

8.1.5

8.1.6

8.1.7

8.1.8

Mr. Shange

The following questions and clarifications were noted: QUESTIONS RAISED BY

GENERAL QUESTIONS AND CLARIFICATION

8.

IBUTHO COAL HOLDINGS MINUTES OF THE FULENI MINING FORUM MEETING DATE: SUNDAY, 24TH AUGUST 2014 TIME: 10H00 VENUE: KWAMBONAMBI MUNICIPALITY COMMUNITY HALL

Marietjie Eksteen

Sozithi Tovela

Thembi Myeni & Marietjie Eksteen

It has not yet been done. The process is still in progress and the results will be communicated to the stakeholders. We will endeavour to get bigger maps in the next presentation and put demarcation on the actual proposed pitts. People will be compensated. At the present moment. we are working with the relevant Government Departments and Municipality to advise on the acceptable procedures and guidelines.

Will put demarcation on the pit.

The specialists will complete this exercise and advise us to communicate back to affected Communities.

Yes, we found coal but this was not of good quality

Page 2 of 5

Sozithi Tovela

Sozithi Tovela

Sozithi Tovela

Sozithi Tovela

Sozithi Tovela & Thembi Myeni

As per the title deed the farm is called Fuleni Reserve. But there is an area within the Farm called Efuyeni under Induna Mthethwa.

Both opencast and underground.

IBUTHO RESPONDENT

RESPONSE BY IBUTHO COAL

IBUTHO COAL HOLDINGS MINUTES OF THE FULENI MINING FORUM MEETING DATE: SUNDAY, 24TH AUGUST 2014 TIME: 10H00 VENUE: KWAMBONAMBI MUNICIPALITY COMMUNITY HALL

9.

PUBLIC PARTICIPATION PRESENTATION 9.1. This presentation was presented to the FMF members by Lizinda Dickson of Naledi Development.

NOTED

9.2.

NOTED

The objective of the presentation was noted as follows:  To explain the objectives of Public Participation  What has been done to date and what is outstanding  To explain the Social and Labour plan – as a regulatory requirement

Page 3 of 5

The following questions and clarifications were noted: NAME OF FMF MEMBER

Norman Shange

Mandla Mbatha

S.M. Nene

Sduduzo Mdletshe

QUESTION/CLARIFICATION

Why was the Community asked if they wanted to mine if there is still a lot of studies to be conducted

Will the Company offer bursaries now or when the mining right is awarded.

When and How will the Community know of the skills required by the Mine.

A lot of student that are not working now and are dropping out due to lack of financial assistance to help them further their education. Will Ibutho assist before mining right is awarded.

10.1

NO.

10.1.1

10.1.2

10.1.3

10.1.4

At this stage Ibutho cannot assist but will refer the issue to the Department of Education and other organisations that offer such assistance.

Ibutho is planning to co-host a Career Expo with the FET colleges which will offer relevant Courses.

After the mining right is granted.

There was no need for this but some of our Specialists were denied access to Communities and insisting that they do not want the mine.

RESPONSE BY IBUTHO COAL

PUBLIC PARTICIPATION PRESENTATION : QUESTIONS AND CLARIFICATION

10.

IBUTHO COAL HOLDINGS MINUTES OF THE FULENI MINING FORUM MEETING DATE: SUNDAY, 24TH AUGUST 2014 TIME: 10H00 VENUE: KWAMBONAMBI MUNICIPALITY COMMUNITY HALL

Page 4 of 5

Thembi Myeni

Thembi Myeni

Thembi Myeni

Thembi Myeni

IBUTHO RESPONDENT

IBUTHO COAL HOLDINGS MINUTES OF THE FULENI MINING FORUM MEETING DATE: SUNDAY, 24TH AUGUST 2014 TIME: 10H00 VENUE: KWAMBONAMBI MUNICIPALITY COMMUNITY HALL

11.

12.

13.

GOING FORWARD 11.1 The following dates were agreed for Community Meetings:  Sunday, 31 August 2014 – Ocilwane  Sunday, 31 August 2014 – Novunula  Sunday, 7 September 2014 – Ntuthunga 1 & 2

ALL

11.2

Meetings at Emakhwezini and eFuyeni will be arranged later by the Facilitators and Thembi Myeni

Thembi Myeni

11.3

Sozithi was requested to assist with Loud Speaker which will be used to invite Communities extensively.

Sozithi Tovela

11.4

Facilitators were urged to work with Izinduna when facilitating these meetings.

NOTED

NEXT MEETING 12.1 The Next FMF is scheduled for Sunday, 14th September 2014 at 10am at Kwambonambi Municipal Community Hall. MEETING CLOSURE 13.1 The meeting was closed with a prayer by Mr. Buthelezi.

ALL

NOTED

Page 5 of 5

FULENI MINING FORUM MEETING 24 August 2014

Fuleni Anthracite Project Environmental Authorisation

• To provide background on the Fuleni Project • To outline and explain the Environmental Authorisation Process • To highlight potential community impacts & benefits • To discuss the Social and Labour Plan • To outline the Public Participation Process

Purpose of the Presentation

PROJECT BACKGROUND AND DESCRIPTION

Apply for Mining Right

Prospecting Right

Public Participation

Environmental Assessment

Planning

Mining Right Granted

Determine resource

Environmental Management Plan

Mineral Right Process

• New Order Mining Right (NOMR) application was submitted and is in process at the DMR • Situated on portion of farm Fuleni Reserve 14375, 45 km north-west of Richards Bay • uMfolozi Local Municipality within the Uthungulu District Municipality • Both opencast and underground mineable reserves with a Life-of-Mine of 32 years • Production of primary Anthracite product suitable for export, with secondary lower grade thermal product for domestic market

Fuleni Anthracite Project

Project Location

Efuyeni

Makhwezini

Novunula

Shayamoya

Nthuthunga

Mining area

Nthuthunga 2

Community Map

Ocilwane

Sensitive Receptors

• • • • • • • • •

Topsoil and overburden stockpiles; Haul roads and/or conveyor systems for ROM transport; ROM handling facility; Coal Handling Processing Plant (CHPP) with associated stockpiles; Pollution control dams; Temporary discard facility; Raw water storage facility(ies) and distribution systems; Access road to mine and for product transport; and Auxiliary infrastructure including workshops and stores, offices and change houses, sewage treatment plant, main electrical power supply and security fencing.

• To successfully exploit the resource, related infrastructure needs to be constructed including:

Infrastructure Requirements

Project Layout

Product Haul Road Options

ENVIRONMENTAL AUTHORISATION

NWA (36 of 1998)

EIA Regulations

NEMA (107 of 1998)

MPRDA (28 of 2002)

Legislation

Scoping, EIA and EMP for submission to KZN DAEA

triggering the threshold limit for a Full EIA required

a number of new water uses submission to KZN DWA

Licences will be required for IWULA and IWWMP for

in terms of GN545

Full EIA, including

submission to KZN DMR

Scoping, EIA and EMP for

LEAD AGENT

Requirement

applicable, majority

A number of listed activities

proposed mining activities

EIA / EMP required for

Comment

Regulatory Requirements

• Detailed assessment of the possible positive or negative impacts that a proposed project may have on the environment • Specialist studies must be conducted • Consists of two phases: • Scoping Phase • EIA Phase

What is involved in an EIA process?

• Assessment of the possible positive or negative impacts that a proposed project may have on the environment • Inclusive of environmental, social and economic aspects • Provides information relating to the impact from the activities to assist with decision-making

What is an Environmental Impact Assessment (EIA)?

Environmental Authorisation

• Introductory part of an EIA • Baseline environmental investigations (desktop studies) • To determine what information is available and what will be required to be taken into account during the EIA phase • Public Participation (Focus Group meetings) • Development of a Plan of Study

What happens during the Scoping Phase?

Environmental Authorisation

Impact assessment and modelling Assess the impacts on the receiving environment Apply the Mitigation Hierarchy Further Public Participation (Open Days) Determine Financial Provision

• • • •

Remedy

Reduce of minimise

Avoid

Study the environment

Avoid: Re-align infrastructure to avoid impact on the community Reduce or minimise: Dust suppression, noise reducing devices Remedy: Rehabilitate disturbed footprint, replace grazing land Environmental monitoring

• Methods to address the risk / impact identified • Examples of mitigation measures:

What is Mitigation Measures?

• • • • •

What happens during the EIA Phase?

Environmental Authorisation

• Water use is regulated by the National Water Act, 36 of 1998 • Number of activities are listed as water uses, including: • Abstraction of water • Storing of water (dams) • Impeding or diverting the flow of a water course (river diversions) • Disposing of waste (waste stockpile) • Removing of water found underground • Activities cannot commence without a Water Use Licence

What is a Water Use Licence?

Water Use Authorisation

• • • • •

• Fly rock (blasting) • Increased traffic (road safety)

Impact on water sources and boreholes Aesthetic impact, visual, lighting (sense of place) Disruption of social and household structures / networks Impact on burial sites Safety risks • Increase of crime (influx of people)

• Noise , blasting and vibration • Developmental diseases, i.e. HIV, TB

• Community health • Airborne pollutants, coal dust and diesel particulate matter

Risks to Community

• Equity participation (Community Trust)

• Local procurement and SMME opportunities

• Local Economic Development projects

• Skills development opportunities

• Benefits (positive):

• Impact on local businesses

• Relocation of households

• Diversion of public roads

• Loss of grazing and agricultural land

• Impacts (negative):

Economic Impacts and Benefits

• Identifying burial sites and other cultural/heritage sites within the area

• Determining the grazing distances from the households

• Verifying allocated fields (for cultivation) per household

• Verifying the number of occupants and livestock per household

• Verifying the number of households & buildings/structures

within a 500m radius around other mining activities

• Surveys within a 1 km radius from the planned blasting; and

Social / Household Surveys

• Traffic Study

• Socio- and Macro-Economic assessment

• Health Impacts

• Wilderness Risk Assessment & Sensitivity Mapping

• Visual / Aesthetics

• Blasting and Vibration

• Air Quality and Noise

• Surface and Groundwater Resources

• Soils, Land Use & Land Capability

• Cultural and Heritage Resources

• Biodiversity and Wetlands

Specialist Studies

SOCIAL AND LABOUR PLAN

• Divided into three sections • Human Resource Development • Local Economic Development • Planning for Downscaling and Retrenchment

• Requirement by law

• Social and labour plans are compiled to assist in addressing the social and economic impacts that operations have on surrounding communities

What is a Social and Labour Plan?

• Promote economic growth in the mining industry • Promote employment and advance social and economic welfare • Accelerate Socio economic development of mine operating areas • Utilise and expand the existing skills base for the empowerment of Historically Disadvantaged South Africans (HDSAs) and to serve the community

Objectives of the SLP

STAKEHOLDER EMGAGEMEMT

i.e. Forum meetings, Community meetings, Authority meetings

BASELINE ASSESSMENT

i.e. IDP, Census, Surveys

SLP Process

i.e. Social and Labour Plan for submission to DMR

REPORT COMPILATION

MINING RIGHT GRANTED

The Human Resource Development Programme looks at development of a skilled workforce: • Adult Basic Education and Training • Core business skills training • Artisan training • Learnerships (in-job training) • Bursaries and Internships • Employment equity

Human Resource Development

Community (i.e. local community needs)

Government (supports)

These projects must:

Company (aligns with business objectives)

Identify projects in the following categories: • Infrastructure Development • Education / Poverty Eradication / Empowerment • Income generating projects

Local Economic Development

Good Project

• Procurement

• SMME Development

• Housing

Apart from the Projects to be implemented, this section also looks at:

Local Economic Development

• Consultation with the workforce throughout the process

• Mitigating impacts if it cannot be avoided

• Looks at how to avoid downscaling and Retrenchment

• This section deals with the processes the company must put in place to plan, manage and mitigate the impacts at mine closure

Downscaling and Retrenchment

PUBLIC PARTICIPATION

What do we think about this project?

• Inclusive consultation • Sufficient, accessible information to allow meaningful contributions • Information to IAPs in various ways • Empower people to understand concepts • Enough time for comment and exchange information / viewpoints

Public Participation Principles

• Public participation involves a process resulting in improved decision-making • It is a process leading to a joint effort by IAPs, technical specialists, the authorities and the applicant who work together to produce better decisions than if they had acted independently

What is Public Participation?

Public Participation

• verify that their issues have been addressed either by the Specialist Studies, or elsewhere • comment on the findings of the EIA, whether they agree with them or not

During the Impact Assessment Phase

• identify issues of concern, suggestions for enhanced benefits and alternatives • give inputs and views on the project

During the Scoping Phase

To provide sufficient and accessible information to IAPs in an objective manner to assist them to:

Objectives of Public Participation

• Announcement of the Project (advertisements, notices) • Traditional Council and other Authority meetings • Compilation of the Scoping Report – which is a report showing what needs to studied in more detail • Establishment of the Fuleni Mining Forum to share information and obtain viewpoints and inputs from communities

During the Scoping Phase

Steps already undertaken

• Work with the Forum to spread the information to the communities regarding above aspects • Share results of the Environmental Impact Assessment and obtain inputs from the Forum

Community Meetings

• Environmental Assessment Process • Social and Labour Planning (the benefits from the project) • Share results of the Environmental Impact Assessment and obtain inputs from the Forum

Fuleni Mining Forum Meetings to discuss:

Steps to be taken going forward

• Continue to listen to comments, inputs and issues from community • Conducting Specialist studies and sharing the results of these • Making available project reports as well as summaries of the reports in Zulu for comment from the communities • Public Open Days for the communities, specifically as well as for any other stakeholders

Steps to be taken going forward

Lizinda Dickson / Adele Bezuidenhout

E-mail: [email protected]

Tel: (012) 543 9093, Fax: 086 776 3478

Naledi Development Restructured

• Please direct all your comments and concerns to our Public Participation Office

Public Participation Office

QUESTIONS AND DISCUSSION

Thank You for Your Participation