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INDIA-ENVIRONMENTAL MANAGEMENT CAPACITY BUILDING TECHNICAL ASSISTANCE PROJECT: MINING SUB-COMPONENT Ministry of Environment and Forests Government of India

BEST MANAGEMENT PRACTICES MANUAL Volume II

[ACTIVITY II A: TASK-1 (iii)]

\ Final Draft - February 2003

Prepared by MWH Energy & Infrastructure, Inc., Mining Group (USA)


Executing Agency: Centre of Mining Environment, Indian School of Mines, Dhanbad

INDIA-ENVIRONMENTAL MANAGEMENT CAPACITY BUILDING TECHNICAL ASSISTANCE PROJECT: MINING SUB-COMPONENT

Ministry of Environment and Forests Government of India ACTIVITY II A: TASK - [1 (iii)]

BEST MANAGEMENT PRACTICES MANUAL:


Volume II, Case Studies of Model Zinc, Bauxite, Iron Ore, and Limestone Mining Operations

Final Draft February 2003

Prepared by MWH Energy & Infrastructure, Inc., Mining Group (USA) Executing Agency: Centre of Mining Environment, Indian School of Mines, Dhanbad

TABLE OF CONTENTS LIST OF ACRONYMS .............................................................................................................. iii 1.0 INTRODUCTION ........................................................................................................... 1-1 OVERVIEW ................................................................................................................... 1-1 PURPOSE .................................................................................................................... 1-1

1.1 1.2 2.0

ZINC CASE STUDIES ................................................................................................... 2-1

2.1 COPPER/ZINC CASE STUDY: ANTAMINA MINE................................................................ 2-1 2.1.1 Operational Features and Key Issues .............................................................. 2-1 2.1.2 Management Philosophy .................................................................................. 2-1
2.1.2.1 2.1.2.2 2.1.2.3 2.1.2.4 Environmental Responsibility ....................................................................................2-2 Health and Safety Responsibility...............................................................................2-2 Social Responsibility .................................................................................................2-2 Sustainable Mining Communities ..............................................................................2-3

2.1.3

Implementation of Best Management Practices ............................................... 2-5

2.1.3.1 Example: Huascarn National Park...........................................................................2-6 2.1.3.2 Example: Antamina Tailings Impoundment Facility ...................................................2-7

2.1.4 Lessons Learned .............................................................................................. 2-7 2.2 ZINC CASE STUDY: HINDUSTAN ZINC LIMITED ............................................................... 2-8 2.2.1 Operational Features and Key Issues .............................................................. 2-8
2.2.1.1 Operating Mines ........................................................................................................2-9 2.2.1.2 Operating Smelters ...................................................................................................2-9

2.2.2 2.2.3 3.0

Management Philosophy ................................................................................ 2-10 Implementation of Best Management Practices ............................................. 2-10

BAUXITE CASE STUDIES............................................................................................ 3-1

3.1 BAUXITE CASE STUDY: ALCOA MINE ............................................................................. 3-1 3.1.1 Operational Features And key Issues............................................................... 3-1 3.1.2 Management Philosophy .................................................................................. 3-2
3.1.2.1 Alcoas Bauxite Mine Rehabilitation Standards and Guidelines ................................3-3 3.1.2.1.1 General Responsibilities ..................................................................................3-4 3.1.2.1.2 Budgeting.........................................................................................................3-4 3.1.2.1.3 Investigations ...................................................................................................3-4 3.1.2.1.4 Planning...........................................................................................................3-4 3.1.2.1.5 Techniques and Procedures ............................................................................3-5 3.1.2.1.6 Decommissioning and Divestiture....................................................................3-7 3.1.2.1.7 General ............................................................................................................3-7

3.1.3

Implementation of Best Management Practices ............................................... 3-8

3.1.3.1 General Principles .....................................................................................................3-8 3.1.3.2 Rehabilitation at Alcoa...............................................................................................3-9 3.1.3.2.1 Past Reclamation Practice...............................................................................3-9 3.1.3.2.2 Present Reclamation Practice..........................................................................3-9 3.1.3.2.3 Reclamation Techniques ...............................................................................3-10 3.1.3.2.4 Reclamation Monitoring .................................................................................3-11

3.2 BAUXITE CASE STUDY: INDAL ..................................................................................... 3-12 3.2.1 Operational Features and key Issues ............................................................. 3-12 3.2.2 Management Philosophy ................................................................................ 3-12 3.2.3 Implementation of Best Management Practices ............................................. 3-13 4.0 IRON ORE CASE STUDIES ......................................................................................... 4-1 4.1 IRON ORE CASE STUDY: HIBBING TACONITE COMPANY................................................. 4-1 4.1.1 Operational Features and Key Issues .............................................................. 4-1 4.1.2 Management Philosophy .................................................................................. 4-1 4.1.3 Implementation of Best Management Practices ............................................... 4-2
4.1.3.1 Environment ..............................................................................................................4-2 4.1.3.2 Safety ........................................................................................................................4-2

4.2

IRON ORE CASE STUDY: KUDREMUKH .......................................................................... 4-3 i


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4.2.1 4.2.2 4.2.3

Operational Features and Key Issues .............................................................. 4-3 Management Philosophy .................................................................................. 4-3 Implementation Of Best Management Practices .............................................. 4-4

4.2.3.1 Stormwater and Sediment Control ............................................................................4-4 4.2.3.2 Afforestation ..............................................................................................................4-4 4.2.3.3 Social Contribution ....................................................................................................4-5

5.0

LIMESTONE CASE STUDIES ...................................................................................... 5-1

5.1 LIMESTONE CASE STUDY: LAFARGE GROUP ................................................................ 5-1 5.1.1 Operational Features and Key Issues .............................................................. 5-1 5.1.2 Management Philosophy .................................................................................. 5-1 5.1.3 Implementation Of Best Management Practices .............................................. 5-1
5.1.3.1 Quarry Site Selection ................................................................................................5-2 5.1.3.2 Minimising the Impacts of Quarrying .........................................................................5-2 5.1.3.3 Quarry Rehabilitation and Land Planning ..................................................................5-2

5.1.4 Rehabilitation of the Weissenegg Quarry, Austria............................................ 5-2 5.2 LIMESTONE CASE STUDY: MEGLAHAYLA MINE, INDIA ..................................................... 5-3 5.2.1 Project Description............................................................................................ 5-3 5.2.2 Legislative, Best Practice Standards and Corporate Consideration................. 5-4
5.2.2.1 5.2.2.2 5.2.2.3 5.2.2.4 Legislative Requirement ............................................................................................5-4 World Bank Policies and Guidelines..........................................................................5-4 Corporate Policy Statements.....................................................................................5-5 Other Best Practice Standards ..................................................................................5-5

5.2.3 5.2.4 6.0

Environmental and Social Management Considerations.................................. 5-5 Mine Reclamation and Closure Plan Considerations ....................................... 5-9

5.2.3.1 Air Quality Management ............................................................................................5-6

REFERENCES .............................................................................................................. 6-1

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LIST OF ACRONYMS
ASP BMP BOD BU BVQI CMA CO CO2 COD CPCB dB(A) DCDA DNV EHS EA EIA EIS EMP EMS ETP FIMI ha H.G. HNP HTC HWG HZL Indal INRENA ISO ISP ISTEC IUCN KIOCL LMMPL LSC LUM MCI MoEF MPCA MSDS NGO NOx NPK P.W. SCSA S.H.G. SO2 SOVL SPCB Activated Sludge Process Best Management Practice Biochemical Oxygen Demand Business Unit Bureau Veritas Quality International Compaia Minera CMA Carbon monoxide Carbon dioxide Chemical Oxygen Demand Central Pollution Control Board Decibel (A weighted) Double Conversion Double Absorption Det Norske Veritas Environmental Health and Safety Environmental Assessment Environmental Impact Assessment Environmental Impact Statement Environmental Management Plan Environmental Management System Effluent Treatment Plant Federation of Indian Mineral Industries Hectares High grade Huascarn National Park Hibbing Taconite Company Huascarn Working Group Hindustan Zinc Limited Indian Aluminium Company, Limited Peruvian Park Authority International Organisation for Standardisation Imperial Smelting Process International Safety Training and Technology Program World Conservation Union Kudremukh Iron Ore Company Limited Lum Mawshun Minerals Private Limited Lafarge Surma Cement Ltd. Lafarge Umiano Mining Private Limited Metal Corporation of India Limited Ministry of Environment and Forests Minnesota Pollution Control Agency Material Safety Data Sheet Non-governmental organisation Nitrous oxide Ammonium Nitrate Based (fertiliser) Prime western Single Conversion Single Absorption Special high grade Sulphur dioxide Sterlite Opportunities and Ventures Limited State Pollution Control Board

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STOP STP SQRP TDS TMI tpd TSS UNESCO WWF

(DuPont) Safety Training and Observation Program Sewage Treatment Plant Strategic Quarry Rehabilitation Project Total Dissolved Solids The Mountain Institute Tonnes per day Total Soluble Solids United Nations Education, Scientific and Cultural Organisation World Wildlife Fund

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1.0 INTRODUCTION
1.1 OVERVIEW

Mineral resources are an important component of Indias economy and have the potential to make a substantial contribution to sustainable economic growth and development. In order to fully realise this potential, the Indian minerals industry must continue to grow. Increasing globalisation of the mining industry has led to changing public attitudes regarding the costs and benefits of mineral extraction and an increase in public pressure to minimise the environmental and social costs associated with mineral development. This is especially true in India where high population densities increase the importance of land use decisions. Mining development in India frequently displaces indigenous populations, often without adequate compensation and assistance with resettlement. When the environmental impacts of mining operations are not properly managed and mitigated, it is often too costly to restore mined lands to beneficial use once mineral deposits have been exhausted, leading to a net reduction in available land. It is therefore essential that the Indian minerals industry follows 1 the principles of sustainable development by using methods and practices that minimise the release of contaminants to water, air and soil, preserve and restore lands for future use, and manage displaced populations. In order to achieve this objective, the Ministry of Environment and Forests (MoEF) must work with appropriately qualified resource institutions to provide a clear, practical framework of environmental and social policies, supporting legislation, regulations and guidelines and assist industry in developing effective procedures for implementation, monitoring, and compliance. Development and implementation of the framework will require consideration of the practical operational, environmental, social, and economic constraints inherent in a wide range of mining operations. A phased approach is required to bring both new and existing mining operations into compliance with regulatory requirements over a reasonable period of time. In addition, a life-cycle approach must be adopted with consideration of the impacts of mining exploration, active mining, and mine closure and reclamation.

1.2

PURPOSE

Volume II of the Best Management Practices Manual consists of a series of case studies that compare and contrast examples of zinc, bauxite, iron ore, and limestone mining operations in various Indian and international settings. These mineral groups were selected because of the relative magnitude of their significance in the Indian non-coal mining sector. The mining operations described in this volume were selected because they represent circumstances in which many of the Best Management Practices (BMPs) presented in Volume I have been implemented with considerable success. In a number of cases, these examples also demonstrate how progressive mining operations are beginning to address issues of sustainability in the planning and management of their mining operations

The World Commission on Environment and Development (the Brundtland Commission) defined sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." This is the most broadly accepted definition of sustainable development.
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2.0 ZINC CASE STUDIES


2.1
2.1.1

COPPER/ZINC CASE STUDY: ANTAMINA MINE


Operational Features and Key Issues

The CMA project is operated by the Compaia Minera Antamina (CMA), which is a privately held company owned by BHP Billiton (33.75 percent), Noranda (33.75 percent), Teck (22.5 percent) and Mitsubishi (10 percent). It is a $2.3 billion copper and zinc project located on the eastern flank of the Cordillera Blanca in the Peruvian Andes in the Ancash Department in Peru, which is about 270 kilometres Northeast of Lima. Project facilities include an open pit mine, a 70,000 ton per day concentrator, a 302- kilometre concentrate pipeline, port facilities, a new access road, power line and town site. Conventional open pit mining, milling and flotation processes will be utilised to produce up to 1.5 million tonnes of copper and zinc concentrates per year over an expected 23-year mine life. The final mine pit will be 4 kilometres long, 2 kilometres wide and 750 metres deep. By present standards, it is the third largest producer of zinc and the seventh largest producer of copper in the world. The project facilities span an elevation range from sea level to 4,700 metres above sea level. The variation in climate and geography ranges from flat, coastal desert to mountainous alpine. The area surrounding the mine is unique in that it is the highest elevation tropical mountain setting in the world. In addition, the Huascarn National Park (HNP) in the Peruvian Andes is located nearby. This Park is designated as a United Nations Education, Scientific and Cultural Organisation (UNESCO) World Biosphere Reserve and World Heritage site. Financing for the project came from a number of international commercial lenders and banking institutions. It is currently the largest mining investment in Peru and was the largest financing in history for a mining project in a previously undeveloped area. Such extensive financing requires the project to comply with World Bank guidelines for environment and social performance in addition to the environmental and social guidelines and regulations specified by Peruvian Law. Further to that, the lenders have their own rigorous and comprehensive requirements for environmental and social performance that must be met under the financing agreements. 2.1.2 Management Philosophy

To satisfy the individual requirements of all the stakeholders, CMA has adopted a philosophy of operating to international best practice standards. One environmental impact statement and two subsequent addenda have been prepared for the project, several environmental, health and safety (EHS) management programs and plans have been developed to operate the mine, and over 300 permits were secured to build and operate the project. In addition to project EHS issues, CMA has dealt with environmental and social issues that are outside the direct scope of the operations but had the potential to impact the region, if ignored. The area that the mine is located in suffers from severe poverty, high illiteracy rates, limited social services and subsistence agriculture. Plus, the Huascarn National Park is located 30 kilometres east and is an important asset to Peru through its nature heritage and economic contribution through tourism and other small industry. As a result of its commitment to EHS management for its stakeholders, the CMACMA has set new standards for large, international mining projects. This is most notable in the areas of compliance standards, permitting requirements, lending institution involvement, public consultation, community involvement, medical support services and safety culture. Using principals of sustainable development, CMA has implemented an approach to community development and environmental protection that has full involvement of the local populations. The project has faced a number of unique challenges due to its size, difficult logistics, cultural considerations and financial aspects and as a result of its innovative approaches and
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dedication to these issues, CMA has set new standards in Peru for environmental and community management, and sustainable development. 2.1.2.1 Environmental Responsibility

CMA has committed itself to high standards in all aspects of its operations, including environmental protection, by undertaking to act responsibly as steward of the resources in its charge and to operate for the wellbeing of its employees and the communities in which it operates. CMAs environmental program is based on the two key areas of environmental impact studies and environmental management programs. The first consists of three baseline studies that addressed air, soils, water, biological resources and cultural resource within the project area. Possible environmental impacts were identified and mitigation measures were formulated. Other studies addressed areas like closure and reclamation. The management programs consisted of monitoring programs for air, ground and surface water quality, and aquatic life. In addition, programs to manage erosion/sedimentation, revegetation and solid waste were established. CMA has also established an Environmental Management program based on the ISO 14000 - series standards published by the International Organisation for Standardisation. The consultation process associated with the baseline studies was very comprehensive and involved public hearings in Lima as well as in the area of influence of the project. The Environmental Impact Statement (EIS) was widely distributed and provided to any stakeholder wishing to have a copy (this was a first in Peru at the time). This wide-ranging process ensured that the communities surrounding the CMA site were well informed about the project and its potential impacts. A rigorous permitting effort was undertaken to ensure full and open compliance with all applicable Peruvian requirements. Approximately 300 permits were obtained (the majority during the construction phase) for construction activities, communications, fuel storage, operations, and water discharge. It was considered to be one of the most comprehensive permitting efforts undertaken to date and is expected to serve as a model for future mining project permitting efforts in Peru. 2.1.2.2 Health and Safety Responsibility

The focus of CMAs safety program is to build a culture of safety awareness. Given the low levels of worker safety awareness in Peru, this was the logical decision that gave the best reward for effort for the company. Training to increase this awareness starts with induction training for all new employees and contractors and extends throughout all levels of the organisation to encourage employee involvement and participation at all levels in the company. Creating general safety and environmental awareness are long-term programs that can lead to cultural changes in attitudes that extend beyond the life of the project and benefit the wider community. These ideals follow the principles of sustainable development. The International Safety Training and Technology Program (ISTEC) served as the framework for the CMA safety program, providing the necessary standards and structure for a modern safety program at a large operation such as CMACMA. In addition, to encourage positive safety behaviour, the company implemented the DuPont Safety Training and Observation Program, known as the STOP program. To date, the program has been implemented with great success at all levels of the organisation. 2.1.2.3 Social Responsibility

A long-term project of such a large magnitude as CMA is a major contributor to the local economy, and in this case to the countrys economy, and has a high profile in that country and around the world. The operation must conduct itself at the highest level of ethical standards and best practices if it wants to operate with the support of special interest groups

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and non-governmental organisations (NGOs) that could potentially hinder the progress of a project. CMA has adopted internationally accepted practices of social responsibility, incorporating them into the design, execution, and management of the project. The three key principles of social responsibility being followed are: 1. The need to obtain and uphold a social license to be able to operate in harmony with the local communities within CMAs area of influence; 2. The triple bottom line concept, which includes the economic, environmental and social responsibility; and 3. Stakeholder engagement. CMA defines a social license as the consent or acceptance (implicit or explicit) of an industrial activity by the principal stakeholders, communities, institutions and individuals within the area of influence. A social license is an ethical approach to project development and CMA views the process as an investment in the success of the project as opposed to a cost of doing business. Having a social license in place can facilitate the resolution of many social issues related to mining operations and can help ensure continuity of operations by avoiding major public or government incidents or conflicts. The triple bottom line concept draws on all three components of economic, environmental and social responsibility as being equally vital to the successful operation of a business activity and requires that environmental and social responsibilities be incorporated into key business decisions. This concept represents a major change for the mining industry, which has tended to concentrate on the technical issues of mining rather than the outside interaction with stakeholders that are not necessarily direct financial stakeholders in the project. It is a concept that that will only become more important in the future as the concept of sustainability gets increased attention in all industries around the world. Coupled with the concept of the triple bottom line is the need to get stakeholders engaged in the project to ensure success in the social and environmental criteria. Experience at CMA has shown that the best strategy for achieving acceptance and support of the project is to interact with stakeholders and actively seek to engage rather than passively respond and engage. The stakeholders should be involved as soon as possible in the life of the project, whenever possible and it should be an open and transparent process of consultation and communication. Involving the stakeholders, especially the communities, in decisions that may affect their future, is a key step in building trust and acceptance between the company and the surrounding communities. 2.1.2.4 Sustainable Mining Communities

The concept of sustainable development for a mining operation includes the effects on the surrounding communities. To be sustainable, there has to be a net positive impact to the community during the course of mining and after the operation has closed and departed the area. Without the potential for a net positive impact from the mining operation, a community is less likely to be receptive to introducing mining to the district. To foster the development of positive interactions with the community, a company should have a community relations strategy in place to provide a framework to build programs around. CMA strategy is based on conducting socially responsible behaviour involving consultation with community members and key stakeholders that obtains a buy-in to the project from all parties and increases the overall level of trust. This strategy of permanent consultation with the stakeholders also requires engagement, active participation, on-going commitment, transparency and mutual respect from all parties. To achieve this, CMA encouraged the community to take a lead role in decision-making regarding the design and implementation of community development programs. This resulted in the communities

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having approved development plans and budgets and the requirement for them to manage their own budgets and monitor their own progress of the programs. In addition, CMA conducted public consultation sessions to understand the issues and concerns of the local communities and commissioned various studies of the region to assess the potential impacts of mining. Using this knowledge and keeping to the philosophy of creating an environment for achieving sustainable mining communities, CMA developed a basic framework for the Community Development Programs based on the following principles: 1. Avoidance of paternalism. 2. Supply the tools that the community needs to achieve, through its own efforts, sustainable development. 3. Attract contributions and participation from government, multinational financial and aid agencies, the private sector and local communities, to jointly develop a sound sustainable development program for the region. 4. Complement, not substitute, the obligations of the Peruvian government in its programs for reducing the levels of extreme poverty presently existing in the region. 5. Respect the culture, customs and values of individuals and communities. 6. Work with the community to build social capital (the ability of people to organise themselves and work towards common objectives). 7. Develop the social license by increasing the level of trust within the community, and between the community and the company. Using these principles, CMA was able to develop the following high-level objectives for the region: 1. Upgrade living standards, by improving the quality of education and health services. 2. Improve production and productivity levels in agriculture and livestock production, these being the main economic activities carried out by the majority of the local population. These activities will continue to be practised beyond the closure of the mine and are an example of investing for sustainable development. 3. Promote small-scale business activities, including the development of markets for local products, and help provide the infrastructure needed to access them efficiently. 4. Support cultural activities and promote conservation of heritage. 5. Promote the development of business opportunities in the area of influence by prioritising local purchasing. 6. Prioritise the hiring of local workers, by providing training and opportunities to nonskilled workers. 7. Promote environmental protection, not only within the companys area of operation, but throughout the area of influence. Economic Program The economic program is based on the need to improve agricultural management techniques as well as to increase productivity and develop marketing strategies. Current agriculture in the area is dominated by subsistence agriculture using varieties of plants and animals that are not conducive to efficient production and limited marketing outside the local production region. In an effort to improve these practices, CMA established two experimental agricultural
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centres; Fundo Cochao, an agricultural training centre located near the regional town of San Marcos, and Shahuanga, a livestock and pasture enhancement pilot centre, located near the mine. At these centres, local residents are shown the use of new techniques to increase agricultural production, and the benefits of using new varieties of animals and plants to increase productivity and marketability. Part of this program has been to start marketing crops and products outside the local area. Environmental Program The environmental program is based on education and community participation in environmental monitoring programs. For example, local residents are invited to observe and participate in environmental sampling programs. In addition, the company has encouraged the establishment of environmental committees near both the mine and the port sites. With the support of local NGOs, these committees have received training in environmental legislation, sampling techniques, and interpretation of results. These committees tour CMA operations on a regular basis and actively participate in the monitoring programs. CMA also presents the monitoring results to the committees and the government on a quarterly basis. Social Program The social programs are based on the need to improve the education and health in CMAs area of influence. The education program includes the training of youths from local communities in computer skills and hotel management, and the training of teachers working in public schools. The health programs include mother-child care, substance abuse prevention and family violence prevention programs. CMA also has an agreement with NGOs to provide medical equipment and drugs to all health centres in the area. These three programs are required for all of CMAs operations, which includes the port facilities in Huarmey. Huarmey is located approximately 300 kilometres north of Lima. The community development programs being implemented in this area include education support programs, the healthy community program, provision of equipment to medical centres, technical and credit support for farmers, and developing electricity, water and sewer systems for the locations surrounding the port. 2.1.3 Implementation of Best Management Practices

This section provides some specific examples of the implementation of BMPs at CMA. Environment Managing water and its related effects is a major focus of the environmental program due to the high amount of precipitation received at the site (1.5 metres per year). A surface and groundwater program was implemented to establish a baseline and to monitor the effects of construction and operational activities on the aquatic environment. To supplement this program, the aquatic biology is monitored biannually in the local streams and lakes. Along with high rainfalls, erosion and sediment control has a high priority. CMA established a program that involves local residents to build and carry out erosion and sediment control measure, and to participate in the revegetation program. Other plans include a hazardous waste management plan, waste rock management plan and spill response plan. At the port, the program focuses on monitoring air and marine resources. In addition, the company supported the formation of the Huascarn National Park working group that was established to monitor the park and ensure that the impacts of mining projects, such as CMA, are minimised. Health The main focus on the health program was to establish basic, routine and emergency care facilities with emphasis on high altitude medicine. Due to remote location, lack of existing
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facilities in the area and high number of workers, medical facilities were established at the mine and port sites staffed by national health care professionals. The facilities were designed to hold a stabilised patient for 48 hours before transporting them by land or air to a larger medical facility. Safety The safety program focus was to create and build the culture of safety awareness that is newly emerging in Peru by emphasising education and training at all levels in the organisation. At a minimum, training includes induction training before commencing employment followed by regular on-the-job and task training. The DuPont Safety Training Observation Program has been implemented with great success. In addition, the International Safety Training and Technology program is being implemented to provide the basic safety program structure and standards required for a modern safety program at a large operation like CMA. 2.1.3.1 Example: Huascarn National Park

As previously mentioned, the CMA project is located near HNP, in the Peruvian Andes. The Park is designated as a UNESCO World Biosphere Reserve and World Heritage site. A Working Group was formed by the Peruvian Park Authority (INRENA) and is composed of the World Conservation Union (IUCN), and NGOs, with the goal of monitoring the CMA project activities, to direct mitigation associated with the construction phase of the project, and support protection of the Park resources. All major mining companies in the area are participating in the working group whose goal has been expanded from simply monitoring the activities of CMA on the parks central route, to working towards sustainable development within the area of influence of the park. Using the philosophies of sustainable development as described in this case study, whereby the local communities are encouraged to become active participants in issues that affect them, the Huascarn Working Group (HWG) was established between the HNP, the Mountain Institute (TMI), and the CMA project. The HWG was set up by the initial parties to achieve short-term tasks such as monitoring and communicating on temporary use of the Park central road during construction activities. As the scope of involvement increased, more companies joined the HWG and eventually it evolved to include all the major mines operating in the vicinity of the Park. Incrementing its functionality one step at a time and using a shared-cost approach to communications, this group established simple but specific information functions to prevent conflict or to generate bilateral or multilateral initiatives that may one day contribute to improving the fit between mining and regional sustainable development. The scope of the HWG expanded to include, nationally, other conservation NGOs (e.g. Consorcio Minera y Conservacin) that both provide support and expect to gain experience for their own areas of work. For example, the original mine plan involved trucking over 1.5 million tonnes of concentrate per year to the port site on an existing road (central route) through the HNP. This translated into over 100 trucks per day using the transportation route. This proposition was the subject of controversy and negotiation that involved HNP, INRENA, TMI, UNESCO and international technical conservation individuals, as well as CMA, its shareholders and lending institutions. In mid-1998, a feasibility study was commissioned to evaluate the potential use of concentrate pipeline. This study considered issues including the likely environmental impacts, the rate of return of trucking versus pipeline, technical considerations, safety concerns due to volume of traffic along transportation routes and the general short- and longterm economic benefits. In addition, the Park and TMI stakeholders main concern was that the use of the central road as a permanent industrial trucking route would jeopardise the future existence of the Park, either the Park itself or at least its status as a World Heritage Site.

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These issues affected parties other than the CMA project and as such the HWG grew into a powerful tool to provide a means for all impacted parties to come to the table to be involved in the decision making, to develop solutions from conflicting objectives and then to take ownership and ensure the successful implementation of the solutions. The result of this negotiation, associated with other factors related to changes in project design and ownership led to the decision to not use the central route but to build a by pass access road around and outside of the southern border of the Park, and in addition, to change the concentrate transportation method from trucking to concentrate pipeline. By providing a vehicle to involve all the affected parties and then ensuring that the interests of all parties were adequately addressed, the final solution ended up being satisfactory to all. The CMA project has stated goals of sustainable development and community involvement, which are important for a mining project with a long operating life that will maintain a presence in an area. Through the HWG, the company achieved engagement as well as an understanding and appreciation of viewpoints and perspectives of all involved stakeholders. This resulted in the protection of the Park and still provided stakeholder support for the timely development of the project. The HNP problem resolution process provides a good model for a process to follow for addressing regional environmental concerns of local stakeholders of a mining project. 2.1.3.2 Example: Antamina Tailings Impoundment Facility

CMA employed a team of Canadian, Colombian and Chilean consultants to provide design and engineering services for a concrete-faced, compacted rockfill tailings dam for the US$100 million CMA tailings impoundment facility. The facility's main element is a 130-metre high, concrete-faced, rockfill starter dam -- the first tailings dam to be built using this method of construction (more conventional approaches for tailings dams use earthcore or a plastic liner). The structures were designed for an earthquake event generating a peak acceleration of 0.48 g (gravity). A rockfill dam was selected because it is structurally durable during large earthquakes. The dam will be raised in stages over the 26-year life of the facility. It will eventually be 240-metres high, one of the highest tailings dams in the world. The tailings dam was constructed using the mine trucks and rockfill from the open pit. Other elements of the tailings facility are a 650-metre long tunnel to divert the Ayash River around the tailings dam, and a 1,300-metre long decant tunnel and 100-metre shaft to carry decant water and riparian diversion water. A hydraulic model was constructed to confirm the performance of the vortex developed in the drop shaft of the decant tunnel. A plug in the diversion tunnel has to withstand a 220-metre depth of tailings and water. There are 14 kilometres of channels to divert water around the tailings facility and seven kilometres of tailings pipelines will be installed eventually. In addition, a 29-metre high, 270metre long earth and rockfill embankment water supply dam was designed. Grouting the dam foundation involved 38,400 metres of drilling and the injection of 2.9 million litres of cement grout. A 0.6-metre thick concrete plinth founded entirely on bedrock provides continuity between the grouted foundation and the concrete face. Innovative aspects in the design of the dam include a concrete curb system to support and protect the steep upstream slope of the filter, and a composite stop-log to close the sidehill decant structure. 2.1.4 Lessons Learned

Experience gained on the CMA project with regard to sustainability issues are highlighted in the following recommendations and observations: Do not underestimate the level of planning required for a project. The degree of effort required in the management of environment and community issues is directly related to the complexity and the setting of the project.
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Local environmental, health and safety culture may be substantially different, often lower in rural areas, from what is expected by the company and international standards. An emphasis needs to be placed on the actual creation of a new culture of environmental, safety and social responsibility that will be sustainable in the local community. Financial lending institutions may have more rigorous requirements with respect to environmental and social aspects than the local government in developing countries. This places an additional burden on the companys EHS and Community Development staff to be in the role of both consultant and enforcer and required full support of management to be successful. Failure to consider the expectations of lending institutions can cause the mining company to be in non-compliance with the terms and conditions of its financing agreements. Establish clear environmental and social standards with management buy-in and secure adequate internal resources from the beginning of the project. Identify the stakeholders early in the process, communicate often, establish and maintain relationships and constantly strive to build social capital and increase the level of trust between the company and all involved parties. Carefully manage expectations of the local population through timely and accurate information provided from the earliest stages of conception through to the end of the project. Surveys of the expectations and perceptions of the people affected by the project should also be conducted for a reference point. Dont oversell the project. Cultural understanding and sensitivity to the local population and understanding their position and circumstances will enable a more effective and successful sustainable development program to be implemented. Involve impacted communities in decisions that will affect their future where possible. Maintain communications and build trust through personal contact, dialogue, and community participation in decision making processes, and ensuring the company follows through on its commitments. Having a large number of workers in remote locations requires stand-alone medical facilities that can treat and stabilise patients. Special problems that may be area specific, such as altitude or disease, should be considered when establishing the health program. Establishing a safety culture requires significant resources in terms of supervision, education and enforcement. Construction schedules should factor in the time required for safety training.

2.2
2.2.1

ZINC CASE STUDY: HINDUSTAN ZINC LIMITED


Operational Features and Key Issues

Hindustan Zinc Limited (HZL) is one of Indias leading zinc-lead producers. HZL was incorporated in January 1966 as a public sector company after the take over of the Metal Corporation of India Limited (MCI) to develop mining and smelting capacities to meet the increasing domestic demand for zinc and lead metal. Pursuant to its policy of privatisation of public entities, the Government of India divested its 26 percent stake in the equity capital of the company to a strategic partner, Sterlite Opportunities and Ventures Limited (SOVL). Management control of the company was transferred to SOVL on April 11, 2002. Subsequently, SOVL has completed its open offer for acquiring a 20
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percent equity share of the company from the public. SOVL now holds a 46 percent stake in the company. HZLs operations are broad-based and its activities include exploration, mining, ore processing, smelting and refining (of lead, zinc, silver, cadmium, and copper) and production of sulphuric acid for process use. Over last three decades, HZL has endeavoured to steadily improve its operations through forward planning, teamwork, research and development, and development of technological versatility. HZL has developed into a multi-unit and multi-product company. From its headquarters at Udaipur, Rajasthan, HZL now operates four lead-zinc mines with a total lead-zinc ore production capacity of 3.34 million tpa and four smelters with combined installed capacity of 169,000 tpa zinc and 43,000 tpa lead. The company offers different zinc metal grades, these being H.G. (high grade), S.H.G. (special high grade), and P.W. (prime western) to its customers, in addition to lead and other by-products. 2.2.1.1 Operating Mines

Zawar Mine The Zawar group of mines, located about 42 kilometres south of Udaipur, Rajasthan, comprises three operating underground mines: Mochia, Balaria and Zawarmala. The lead and zinc ore mineralisation extends over a strike length of 20 kilometres, hosted by sheared metamorphosed dolomite in country rocks of greywackes, shales and quartzites of Proterozoic age. These mines have a combined ore production installed capacity of 4,000 tonnes per day (tpd) employing a sub-level open stoping mining method with state-of-the-art benefication and infrastructure facilities. Rajpura Dariba Mine The Rajpura Dariba lead-zinc mine is located about 75 kilometres Northeast of Udaipur, Rajasthan. The ore mineralisation is hosted by clacsilicate and graphite mica-schist of Proterozoic age and occurs in two distinct lodes. This underground mine has an ore production capacity of 2,400 tpd employing vertical retreat and blast hole stoping with post fill mining methods. The concentrator plant also employs state-of-the-art technologies. Rampura Agucha Mine The Rampura Agucha mine, located about 225 kilometres north-Northeast of Udaipur, Rajasthan, is the richest (about 15 percent lead and zinc) and the largest (about 61.3 Mt) lead-zinc deposit in India. The ore deposit is hosted by a graphite-mica-sillmanite schist of Proterozoic age, is lens-shaped and has a strike length of approximately 1.6 kilometres. The open cast mine has a capacity of 4,500 tpd ore, supported by a state-of-the-art benefication plant and infrastructure facilities. Agnigundala Mine The Agnigundala underground lead mine is located about 22 kilometres from Vinukonda and about 265 kilometres south-east of Hyderabad in Andhra Pradesh. The ore mineralisation is hosted by calcarious quartzite and dolomite of pre-Cambrian age. The production capacity of the mine is 240 tpd ore and is supported by a beneficiation facility. 2.2.1.2 Operating Smelters

Debari Zinc Smelter The Debari Zinc Smelter is about 14 kilometres from Udaipur, Rajasthan. An electrolytic extraction process is used to produce zinc, cadmium, and sulphuric acid.

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Zinc Smelter, Visakhapatnam In the Zinc Smelter at Visakhapatnam in Andhra State, an electrolytic extraction process is used to produce zinc, cadmium, and sulphuric acid. Tundoo Lead Smelter The Tundoo Lead Smelter is located 36 kilometres from Dhanbad in Jharkhand State. A conventional blast furnace technique is used for production of lead and silver. Chanderiya Lead Zinc Smelter The Chanderiya Lead Zinc Smelter is located 12 kilometres from Chittorgarh in Rajasthan. Here, Imperial Smelting Process (ISP) technology is utilised for extraction of lead, zinc, silver, cadmium, and copper. by-product sulphuric acid is also recovered. 2.2.2 Management Philosophy

HZL has established a Corporate Environmental Policy, which is based on the minimum requirements of the ISO 14001 environmental management system (EMS) standard (International Organisation for Standardisation, 1996) and reads as follows. HZL reaffirms its commitment to environmental protection and sustainable development. We therefore shall endeavour to: 2.2.3 Use appropriate environmentally sound technologies in all our operations, wherever feasible. Conserve key input resources like water, energy, and chemicals particularly the hazardous ones. Institutionalise the sense of environmental care among all the members of Hindustan Zinc family. Effect continuous improvements in those areas that are environmentally significant. Not only comply with applicable environmental laws but go beyond wherever possible.

Implementation of Best Management Practices

In line with the stated Corporate Environmental Policy, HZL has been active in adopting appropriate pollution control and environmental protection measures at all of its operations. Environment Impact Assessments (EIAs) are undertaken for new projects to formulate Environment Management Plans (EMPs) for mitigating any possible environmental impacts. The environmental measures at mining units of HZL include provisions for dust suppression and collection systems, disposal of benefication plant tailings into tailings ponds, recycling of tailings dam water to benefication plants as process water so as to maintain a zero discharge standard, green belt development to improve landscape, and to minimise generation of dust, and noise.. At its open pit Rampura Agucha Mine, a number of measures have been taken to ensure minimum ground vibrations due to blasting, and the vibration levels are monitored for every blast. At the smelting units, the environmental protection measures include Sulphuric Acid Plants using Double Conversion Double Absorption (DCDA) technology to minimise sulphur dioxide emissions to the atmosphere. Single Conversion Single Absorption (SCSA) sulphuric acid plants also have been provided with Flue Gas Desulphurisation Facilities to minimise
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sulphur dioxide emissions. In addition, other dust collection methods and gas cleaning facilities have been provided to minimise gaseous emissions. Integrated effluent treatment plants have been provided to ensure that treated effluents meet all the criteria stipulated by the Central Pollution Control Board (CPCB) and the State Pollution Control Board (SPCB). Solid waste management systems [e.g., secured containment landfill facilities for safe disposal of jarosite (a potassium-ferro sulfate mineral)] have been commissioned at the Vizag Zinc Smelter. Another similar facility at the Debari Zinc Smelter was expected to be commissioned during last quarter of 2002. The facility has a leachate collection and detection system as well as a system for the removal of leachate. A number of initiatives have been taken to reduce water consumption by undertaking comprehensive water audits, reducing water consumption at the source wherever possible, and by increasing recycling. These have not only resulted in reducing the fresh water consumption but also helped to effectively achieve zero discharge conditions without any adverse effect on the process or equipment. Sewage treatment facilities at the Debari Zinc Smelter as well as the Chanderiya Zinc smelter have also been constructed. The treated water is collected and used for plantations thereby improving the local environment as well as reducing fresh water consumption. An EHS Audit was conducted for all production facilities of the company through an independent contractor, who reported a high degree of compliance and a good awareness of both environmental and health and safety issues at all units. Some of the additional initiatives taken by HZL in the field of EHS management are described below: HZL has commissioned an independent Environmental Audit by an international agency. Rescue stations along with highly trained teams are maintained at Zawar and Rajpura Dariba Mines for potential emergency situations. These facilities are also designed to serve emergency needs throughout Rajasthan and Gujarat. Appropriate fire-fighting facilities for underground mines are maintained, as well as for the surface installations of the mines and smelters. Health surveillance of all employees, including contract workers is carried out through pre-placement as well as periodical medical check-ups. All the operational units have well equipped hospitals and/or dispensaries that are manned by qualified medical officers and medical staff.

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3.0 BAUXITE CASE STUDIES


3.1
3.1.1

BAUXITE CASE STUDY: ALCOA MINE


Operational Features And key Issues

Alcoa mines bauxite from the Darling Range in South-Western Australia in an area known as the Jarrah Forest. The Darling Range is a mountainous region characterised by a dissected, uplifted peneplain with elevations of 300-400 meters above mean sea level. Bauxitic laterites occur as a shallow mantle over deeply weathered kaolinitic clay which is derived from the genesis of granites. The topsoil in the mined region is sandy gravel with an average thickness of 40 cm over the ore (Hinds, 1999). The Darling range area is the worlds leading producer of aluminium, accounting for approximately 38 percent of the world production in 1994. In 1995/96 production of alumina reached 8.2 million tonnes and was valued at approximately $1,918 million (Hinds, 1999). Alumina is refined from bauxite with the principal mining sites located at Jarrahdale, Del Park, Huntly, Willowdale, and Mount Saddleback. At the time of European settlement in western Australia the Jarrah Forest occupied approximately 3,300,00 ha (hectares) of the region (Hinds, 1999). As of 1999 there were only 304,500 ha of unlogged or unaltered forest left, of which 135,000 ha is protected in national parks, nature reserves, and conservation parks. Currently, Alcoa World Alumina Australia (Alcoa) mines and rehabilitates approximately 450 ha of this forest each year at open-cut mines which are located between 55 kilometres and 130 kilometres south of Perth, the capital city. The population of Perth is approximately 1,200,000 and because of this close proximity to the capital, bauxite mining is being done on lands that are subjected to multiple usage. These uses include urban water catchment, timber production, recreation, and flora and fauna conservation. It is Alcoas intention that the mine rehabilitation programs should establish land use values equal to or better than those that existed before mining. The science and technology of land rehabilitation and restoration ecology has advanced to a high level, allowing rehabilitation to meet complex and multiple objectives. Selection of post-mining land use objectives should be based on factors including compatibility with surrounding uses, community expectations, biodiversity protection and regulatory requirements. The South-Western region of Australia is strongly influenced by a seasonal Mediterranean climate with most of the annual rainfall occurring during the winter months of May to September. Mean annual rainfall ranges from 1255 mm in the interior to 635 mm near the coast. Average monthly temperature ranges from 16oC in the winter to 27oC in summer. Dry Sclerophyll forest occurs throughout the region with the dominant vegetation being Eucalyptus calophylla and Eucalyptus marginata Sm. (jarrah); hence the name Jarrah Forest. Species of Casuarina and Banksia along with native legumes, and various shrub, sub-shrub, and herbaceous species occur as understory trees. Over 200,000 ha of the forest is affected by the jarrah dieback disease caused by the pathogenic root fungus Phytophthora cinnamomi and, as a result, one of the main objectives of reclamation is the replanting of trees for timber production. Eucalyptus spp. and understory trees in the above-mentioned forested region also provide a source of native species for the bauxite restoration program (Hinds, 1999). The control of the dieback disease is therefore important if this propagule source to remain viable. Mining Operation A major portion of the bauxite mining activity is done at three main sites. 1. Jarrahdale mines began operation in 1962 and serve the Kwinana alumina refinery on the coast. This operation involves clearing, mining and rehabilitation of approximately 100 ha per year while producing 1.4 million tons of alumina.
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2. Del Park mines supply the Pinjarra refinery. Del Park began production in 1972. 3. Huntly mines, which began operation in 1976, also supply the Pinjarra refinery and together with the Del Park mines produce 2.4 million tons of alumina. Clearing and rehabilitation by these two mines account for approximately 170 ha per year (Hinds, 1999). Production in these three areas has since increased. During the wet winter months drilling activities are suspended to prevent the spread of the jarrah dieback disease. The disease is caused by a fungus which attacks the root systems of the jarrah and various understory species and can be easily transported in soil adhering to vehicle tires, especially in the rainy season. Once this rainy season is over, ore definition is carried out by a rubber tired drill rig that is designed to cause minimal forest disturbance. Following the approval of the Western Australian Forestry Department, usable timber is extracted by contractors prior to mining. The residual vegetation is then heaped into windrows and burnt. The gravely sand surface covering the bauxite is then stripped and removed in two layers. The top 10-15 cm, referred to as top soil, is first removed followed by the removal of an additional 40 cm known as the overburden. The overburden and topsoil which contains most of the soil organic matter, nutrients, micro-organisms, and seeds are stockpiled for future use or directly respread onto areas that are ready for rehabilitation. The bauxite is mined using front-end loaders, power shovels, or hydraulic excavators and loaded in large trucks that can carry 50 to 100 tonnes. Australian bauxite is considered low grade and it takes 3 to 4 kilograms of bauxite to produce 1 kilogram of alumina (Hinds, 1999). Blasting is sometimes done to break-up cemented-cap rocks. After removal of the overburden, mine pits are typically 4.5-metres deep with compact clay floors. 3.1.2 Management Philosophy

It is Alcoas written policy to operate world-wide in a safe, responsible manner that respects the environment and the health of their employees, customers, and the communities where they operate. They also state that they will not compromise environmental, health, or safety values for profit or production. All Alcoan employees (referred to commonly as Alcoans) are expected to understand, promote, and assist in the implementation of this policy and the accompanying principles. Alcoa values human life above all else and manages risks accordingly. Alcoa will relentlessly pursue an EHS incident-free workplace. Alcoa does not compromise its EHS value for profit or production. Alcoa will comply with all laws and set higher standards for themselves and their suppliers where unacceptable risks are identified. Alcoa supports sustainable development by incorporating social responsibility, economic success, and environmental excellence into the decision-making process. Alcoa measures and assesses its performance and is open and transparent in its communications. Alcoa will supply and use safe and reliable products and services. Alcoa will use its knowledge to enhance the safety and well-being of its communities. All Alcoans are accountable for conforming with and deploying the EHS values and principles.

Alcoa has established clear goals for measuring progress towards achieving the 2020 strategic plan for cleaner air, better use of land and water, and the protection of human health. These performance improvement goals are stated as follows: Environment From base year 2000: 60 percent reduction S02 by 2010 50 percent reduction volatile organic compounds by 2008 30 percent reduction nitrogen oxides by 2007 3-2
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80 percent reduction mercury emissions by 2008 50 percent reduction landfilled waste by 2007 60 percent reduction in process water use, and discharge, by 2008. From base year 1990: 25 percent reduction in greenhouse gas emissions by 2010. Assuming success with the inert anode technology, a 50 percent reduction by 2010. Implement effective environmental management systems, such as ISO 14001, at all locations by 2005. Zero environmental non-compliance incidents. $100 million annual environmental and energy cost savings by 2006 through elimination of wastes and design for sustainability. Environmental targets and community relationship objectives incorporated into all Alcoa businesses' annual plans.

100 percent of workplace health hazards identified and described by 2004 95 percent, or more, of workplace health hazards adequately measured by 2004 40 percent, or more, reduction in the number or magnitude of the top 10 noise sources at each location by 2004 40 percent, or more, reduction in the number or magnitude of chemical hazards exceeding Alcoa standards by 2004 Occupational medicine expertise and facilities serving each location by 2004 100 percent of required medical evaluations per location completed annually 50 percent, or more, reduction in the number of top 10 ergonomic risks at each location by 2004 All existing locations with "Good" rating for ergonomics from audit or self-assessment scores by 2004

Zero fatalities, zero lost work day injuries Zero incidents Deployment of risk management and reduction programs to eliminate causes of injuries Alcoas Bauxite Mine Rehabilitation Standards and Guidelines

Alcoas bauxite mine rehabilitation standards and guidelines have been developed based on the best available scientific and engineering data and the practical experience of Alcoa. These standards apply to locations world-wide in which Alcoa has a controlling interest or managing responsibility and performance against standards will be included in Alcoa Environmental Audits. In partnerships where Alcoa does not have a controlling or managing interest, Alcoa will encourage the other shareholders to apply these standards. Alcoas standards are applicable world-wide and aim to improve the quality of rehabilitation, encourage technology sharing, improve corporate image, and reduce liability. The guidelines are intended to set out principles and procedures that will assist each location in developing site specific requirements. As an overriding principle, Alcoa believes that all mining must be seen as a transient land use. Areas used for mining must be restored to a land use that is socially and ecologically sustainable and locations must comply with all local legislation. These standards are intended to promote rehabilitation activities that meet or exceed federal, state, and local legislative and/or regulatory requirements. These standards and guidelines encourage open communication with government, the local community, and the public at large. For the purposes of these standards, rehabilitation means that the disturbed site will be returned to a form and productivity that conforms to a pre-determined land use plan. It
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implies that a stable condition will be established that will not deteriorate substantially but will be consistent with the aesthetic, environmental, economic, and social values of the surrounding land. 3.1.2.1.1 General Responsibilities

Business Unit (BU) management is responsible for ensuring that rehabilitation strategies are implemented and rehabilitation activities are accomplished with appropriate resources allocated for these activities. Rehabilitation planning must be an integral part of the mine planning process. 3.1.2.1.2 Budgeting

Responsibility for budgeting and execution of rehabilitation plans must be placed on the Mine Manager or other appropriate Manager. Rehabilitation costs must be built into mining costs and accrued accordingly. Qualified personnel and other resources must be allocated to enable progressive rehabilitation without impeding production. Budgetary allocations must be provided for all aspects of the rehabilitation plan. 3.1.2.1.3 Investigations

Project Feasibility Studies Potential limitations to rehabilitation must be identified at an early stage to ensure that they are considered in the development of rehabilitation objectives and to allow for their sound management and mitigation, or elimination. Items for consideration should include: physical limitations (e.g., land instability, hydrology), chemical limitations (e.g., toxic substances or leachates), biological limitations (e.g., inability to return to a desired biodiversity), and cost limitations. Evaluation of these potential limitations is critical to fully assess the feasibility for rehabilitation and must be included in the economic evaluation of the project. Baseline and Impact Studies Prior to the commencement of a project, comprehensive surveys must be carried out by qualified personnel to record information such as landform, geology, soil types, climatic conditions, hydrology, flora and fauna (biodiversity), heritage and cultural values, and land use. Baseline sociological surveys and sociological impact studies should be carried out to determine potential effects from clearing, mining, and infrastructure development. In areas of native vegetation, studies should be carried out to understand the ecological processes and natural variation to assist in the development of revegetation strategies and to monitor progress of the rehabilitation (e.g., successional processes). Potential ecological impacts caused by clearing, mining, and infrastructure development must be evaluated. Rare, threatened, or endangered species and habitats must be identified and protection programs put into place. In particular, attention should be given to aquatic environments. The impacts of non-indigenous plants, animals, pests and diseases that have been or may be introduced need to be determined. Impacts on the environment resulting from changes to the human population in the areas concerned should also be assessed. 3.1.2.1.4 Planning

Impacts on Neighbours Potential impacts on nearby residents and landowners must be fully considered in the planning and operation of the mine, including mine rehabilitation. A buffer zone must be established to minimise any impacts of, or risks posed by the operations. The size of the buffer will be determined by local conditions and the type of mining operation involved, and must be specified in all mine plans. Mining must not occur within this buffer without the prior agreement of the B.U. President and notification to the particular nearby residents and/or land owners involved. In any event, sufficient buffer area must be retained to allow the

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establishment of safe, stable slopes and effective drainage systems during the rehabilitation process. Mine Planning At the completion of mining, site conditions must be left so that pre-determined rehabilitation criteria can be met. The sequence of mining should be planned to maximise the success of rehabilitation, as well as fauna and flora recolonisation, where native ecosystems are reestablished. Mining of opened-up ore deposits must be completed as soon as practical to minimise the length of time topsoil is stored and the effects of mining on surface and ground water. Rehabilitation Planning A rehabilitation strategy must be defined by B.U. management. The strategy will be based on results of the pre-mining assessments and will take into consideration post-mining land use(s) and tenure (e.g., ownership, lease, mineral rights). The rehabilitation strategy should be established in conjunction with government, local community, landowners, and leasees and must be consistent with Alcoas values. Where applicable, the special needs of indigenous people and their communities must also be incorporated into the strategy. Where a final land use has not been determined, Alcoas objective should be to restore as closely as possible, the pre-existing use. Rehabilitation plans must be an integral part of the mining plan and must be developed before mining activities commence. These plans must be approved by B.U. management. Every mining site must develop specific rehabilitation standards with which all disturbed areas of a particular category must comply. A range of standards may need to be developed to cover different biophysical environments or different types of disturbance (e.g., mine pits, spoil heaps, tailings dams). The rehabilitation strategy will depend on the designated land use. Under some circumstances, the subsequent land use may not involve revegetation (i.e., housing, roads, wetlands, landfill, industrial sites, and other mining). Revegetation may involve horticultural crops, pastures, commercial forestry, native vegetation and amenity planting. The productivity of areas revegetated in crops, pastures and commercial forests should meet or exceed the regional productivity levels. The rehabilitation plan must include a monitoring program. Where future land use requires restoration of native vegetation, a reference site must be established, maintained, and monitored throughout the rehabilitation process to provide comparison data by which rehabilitation success may be measured. Performance monitoring must take place at regularly established intervals during and after rehabilitation as a measure of the success of the rehabilitation activities. Establishing Completion Criteria Completion criteria must be established for each location and for each rehabilitation strategy. These criteria will be agreed upon and documented by Alcoa and the land owner (where known) or government agency to whom Alcoa divests management responsibility for the rehabilitated land. 3.1.2.1.5 Clearing During land clearing, utilisation of existing resources on the site must be maximised. These may include timber, buildings and produce. If the existing vegetation can assist in the rehabilitation process it should be harvested and redistributed in a timely manner on the areas being rehabilitated. Burning as a means to remove vegetation residue should be used as a last resort and should be considered only after harvesting, habitat and burying options have been considered. Land area cleared should be the minimum for efficient mining (pits and infrastructure) and rehabilitation.
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Topsoil and Overburden Removal Topsoil and remaining vegetation debris must be harvested from the entire area to be mined and either stored in areas where it can be recovered or utilised immediately on other areas being rehabilitated. Whenever topsoil is stored it should be done so for the least possible time to minimise the loss of biological activity and nutrients. If there are potentially toxic substances in the overburden and mine waste, they should be handled in such a way as to minimise the impact on rehabilitation and the surrounding areas. In some circumstances, in addition to topsoil, subsoil horizons and/or a portion of the overburden may need to be harvested and respread on the rehabilitated areas in order to successfully establish the desired vegetation. Topsoil and subsoil/overburden should be respread as separate strata and not mixed together. Clearing of additional vegetation for the storage of topsoil and/or overburden should be minimised. Hydrology, Erosion and Sediment Control Drainage control must be established to minimise the effect of runoff and sediments on the surrounding undisturbed area. This pertains to rainwater runoff, existing surface drainage systems and groundwater. Sediment control works must be planned and installed so as to minimise sedimentation of surrounding areas during mining. Water discharged from rehabilitated areas must conform with the more stringent of corporate or regulatory standards. Natural hydrologic patterns must be re-established during rehabilitation unless a predetermined change in hydrology has been identified in the rehabilitation objective. Run-off from surrounding areas must be managed so that the rehabilitated area is not adversely affected. Site Preparation Reshaping may take place before or after overburden return and will depend on the depth of overburden to be replaced and specific site conditions. Finished slope angles in reshaping will depend on aesthetics, final land use, soil characteristics, and safety. Slopes should be blended into the natural land form. All slopes must be stable. If erosion is likely to occur during the establishment phase of rehabilitation, erosion control treatments must be applied. Compaction resulting from the mining, reshaping and soil placement process must be relieved (e.g., by ripping, plowing, or sub-soiling) where rehabilitation plans require water infiltration and plant root penetration. During this operation care must be taken to ensure that unfavourable sub-soil materials are not brought to the surface and excessive topsoil burial does not occur. Soil nutrient and pH levels must be adjusted where this is necessary to achieve rehabilitation objectives. Where regeneration of a native vegetation is the objective, nutrient and pH levels should closely match pre-existing conditions. Soil conditioners should be considered to ameliorate adverse conditions. Topsoil must be replaced as the final soil profile. The thickness and area to which topsoil is returned must provide the maximum value to the end use of the rehabilitated area. The topsoil should be spread evenly on the area. Revegetation Where native vegetation is to be re-established, only propagules of indigenous plant species should be used. Preferably these should be collected from the areas being cleared or other local provenances. Revegetation strategies should be based on a high level of understanding of local climatic conditions and ecological processes. Re-established plant communities should eventually duplicate the natural ecological processes and functions of the original vegetation. Fauna return should be encouraged by natural means through the creation of suitable habitat rather than by physical re-introduction. Keystone species may need to be transferred where they are absent or inadequately represented in surrounding areas. Artificial barriers such as
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perimeter roads and fences, which inhibit flora or fauna recolonisation, should be removed as soon as practical. Provision of artificial habitats should be considered where, under normal circumstances, their restoration will take a very long time and where inadequate habitat sites are available in surrounding areas. The artificial provision of habitat for ecologically important species or biological communities should be given special consideration. 3.1.2.1.6 Completion When mining is completed, facilities and equipment must be removed from the site unless some of the infrastructure is of use to landowners or the public. These may be left upon approval from the landowner and/or regulatory authority. Where natural ecosystems have been restored, stability and acceptable regenerative capacity should be demonstrated before responsibility ceases. Where post-mining land uses other than native vegetation are the objective, sustained productivity and competitive returns should be achieved (or confidently forecast in the case of long-term crops) before relinquishment of company responsibility. All rehabilitated lands must be monitored for achievement of the established completion criteria. Maintenance Until such time as completion criteria can be met, adequate resources must be allocated for effective maintenance of rehabilitated land. Where Alcoa remains in control of the land, planning and provision must be made for the effective management of the land. Resettlement Where resettlement of people is involved, the rehabilitated areas should match previously agreed conditions. Resettlement should ensure that the landowners are adequately compensated in kind and financially, as appropriate. The socio-economic impacts on the community in the mined region and the resettled community should also be taken into consideration. Divestment If the land is under a mineral lease or concession and not freehold, divestiture should coincide with attainment of completion criteria and, where applicable, recovery of bonds. If the company plans to transfer land to private ownership or to a state authority, agreement should be reached on the future use and management of the land. Where restoration of natural habitat is the intended land use, an agreed management plan may need to be developed to ensure continued sympathetic management towards the rehabilitation objective. This will be essential where the future uses of the land are actually restricted by previous activities. 3.1.2.1.7 Safety All activities must be conducted in a safe manner in accordance with Alcoa Safety Policy and specific departmental requirements. All mined land is to be left in a safe and stable condition. Communication Company management is responsible for maintaining open communications with government, local communities, landowners, and leasees. A communication plan shall be an integral part of all phases of the rehabilitation plan. The communication plan shall identify internal and external audiences, issues appropriate to each target audience, and time frame/frequency of communication. Community relations are critical and must be appropriately covered in the communication plan. General Decommissioning and Divestiture

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Standard Operating Procedures Standard operating procedures must be developed and documented for all major rehabilitation tasks for each mine site. Education and Training All minesite staff and relevant contractors shall have a basic understanding of the mine rehabilitation policy, strategy, and environmental protection program. Therefore, a training plan must be developed to identify training needs and schedule for personnel involved in the development and implementation of the rehabilitation plan. Documentation and Record Keeping Rehabilitation practices and techniques must be documented. Records must be maintained describing rehabilitation treatments applied to each area rehabilitated. The location of overburden and topsoil storage areas and replacement areas must be recorded if soil is to be stored for more than two years. Auditing A self-audit must be conducted annually to ensure compliance with Alcoas bauxite mine rehabilitation standards. Results of the audit must be communicated to B.U. management. Cross-location auditing of rehabilitation performance is encouraged. 3.1.3 3.1.3.1 Implementation of Best Management Practices General Principles

At Alcoa, the first task in developing an effective mine rehabilitation program is to set a clearly define post-mining land use objective. It should be compatible with surrounding land use; it should support species diversity; it should be consistent with the expectations of the local community; and the landowners and regulatory agencies must agree to it. An understanding of future land ownership is critical. Despite the best of intentions, it might not be worthwhile trying to establish a productive land use on undeveloped common land because of potential problems that will occur when the company leaves like who will reap the benefits, who will take care of the maintenance, and who will be responsible for the land if it degrades through lack of maintenance? When the appropriate land use objectives are set, then rehabilitation can commence. First and foremost, the disturbed mined areas need to be returned to a safe and stable physical state that is integrated with the surrounding landscape. Safety should be considered in terms of risks to humans, domestic animals and wildlife, but the rehabilitated site should also reflect the surrounding landscape; if natural cliff faces or steep and rocky slopes occur locally, these features may be acceptable for aesthetic or habitat values. On the other hand, while nature includes some unstable landforms, it is hard to imagine a justification for leaving or creating them. Stable soils are more likely to revegetate effectively and sustain productivity, and will maintain a protective cover over any hostile materials buried beneath them, such as acidgenerating rocks or subsoils with toxic salt or metal concentrations. Stable soils will also avoid off-site impacts such as turbidity (muddiness) and siltation of watercourses. Most rehabilitation programs also involve some form of vegetation establishment (revegetation). Regardless of the land use objective, the chosen vegetation must be productive and sustainable. If the vegetation is for commercial use, then productivity levels need to be competitive with similar enterprises on natural soils. Where native vegetation is restored, productivity levels must be sufficient to establish and maintain a self-sustaining ecosystem. Restoration of species diversity can be a critical objective for rehabilitation programs aimed at re-establishing native ecosystems. Success in this endeavour is often

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dependent on first establishing the appropriate habitat and ecosystem recovery processes that will subsequently encourage the full suite of flora and fauna to recolonise. 3.1.3.2 Rehabilitation at Alcoa

Reclamation of bauxite-mined lands in Western Australia began in 1966 three years after Alcoa commenced mining operations in 1963. In the early years of Alcoas reclamation program, the goal was to establish a stable, self-regenerating forest ecosystem. To achieve this goal the plan was to enhance or maintain water, timber, recreation, and other forest values. Since the commencement of reclamation programs, methods have evolved over the years in response to information obtained from monitoring the result of previous techniques, and in response to environmental pressures by land users outside the mining area. In recent years the emphasis has changed to restoration of the jarrah forest after mining and reestablishing the high botanical diversity of the jarrah forest. 3.1.3.2.1 Past Reclamation Practice

Initially, mining was at a relatively small scale, with about 30 ha of forest cleared and mined each year. Rehabilitation efforts were very rudimentary. The mine pits received no recontouring, overburden and topsoil were respread without any cultivation of the subsoil, and trees were planted with an arbitrary amount of organic fertiliser. In the 1960s forestry production was the main objective of the Western Australian Forestry Department and as a result no understory treatment was required. The respread topsoil was directly planted with potential timber producing trees such as eucalypt and pine species imported from eastern Australia in monoculture plantations. The eucalypt was selected because it was fast growing. These early plantations suffered from wind-throw as a result of nutrient deficiency and insufficient root penetration of the compacted mine floor clay soils as the trees increase in size. The company recognised quickly that performance was substandard and that improvement was required. Work commenced immediately on a program of research and field trials. Within five years improvements were incorporated into the mine rehabilitation program. This work has continued for three decades, to a point where the quality of mine rehabilitation has reached a very high standard (Gardner, 2001). In 1971 Alcoa and the Forestry Department initiated a co-operative tree nutrient trial using inorganic fertiliser to improve nutrient level above those achieved in the 1960s. To overcome the compaction problem, a new technique of subsoil ripping was introduced. Ripping is an operation frequently carried out when preparing forest sites prior to planting and is a measure designed to loosen compact layers. In the case of bauxite mining activities, during the process of regrading and filling the mined sites, soil compaction by tractors became a problem. The ripping process however often left shallow depressions along these rip lines which would result in rapid runoff and soil erosion. To avoid the above-mentioned problems and to promote water penetration and storage, rip lines were made to follow contour lines and done to a depth of 1.2 metres which proved successful against the problem of wind-throw. Protection of water catchment areas was also another major priority of the Western Australian government. The initial use of settlement ponds and level concrete overflows proved ineffective in preventing turbid runoff (Hinds, 1999). In response Alcoa decided to confine inpit runoff within the individual pits where infiltration was the dominant process. This was done by battering the faces of the pits to a slope of less then one in two, which was an attempt to reduce the slope angle. This technique reduced the rate on run-off, soil erosion, and increased infiltration within the pits. The in-pit runoff efforts relied on infiltration to dissipate surface flow. 3.1.3.2.2 Present Reclamation Practice

Two decisions were made in regard to managing mined lands in the mid-1970s. First, rehabilitation plans were prepared before submitting clearing applications to the State authority. This first set of plans included mining sequence, access, erosion control,
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earthworks, and contouring used to prevent turbid runoff during and after mining. Second, the Forestry Department, recognising that mining was a transient land use, stated that reclamation of bauxite mined sites should target re-establishing stable biological systems. Thus the following long term land-use goals were outlined; i) water supply, ii) wood production, iii) recreation and tourism, iv) flora and fauna conservation, and v) science and education. The continued provision of community corridors was also required. Legal requirements for mining, however, differed between areas. At Jarrahdale, Alcoa was only required to spread previously stockpiled topsoil then hand the mine back to the State Forest Department for replanting. At Del Park and Huntly, Alcoa was required to do restoration and reforestation at their own expense. There was also the requirement that efforts to prevent soil erosion and deep water pooling be undertaken at these two sites. The reason for this difference in legal requirement was not stated but the inference could be made that because Jarrahdale was the first site mined in Australia, the legal requirements was less stringent. Over the years, legislation became progressively tougher as rehabilitation techniques improved, land-use objectives became better defined, and outside pressure from the public increased (Hinds, 1999). Today's rehabilitation objective reflects the multiple land use management of the jarrah forest, the expectations of the community and the rehabilitation techniques and capability, which have mostly been developed locally. The jarrah forest covers some 1.8 million hectares, most of which is publicly owned and managed as State forest. The vegetation community is tall open forest dominated by jarrah (Eucalyptus marginata) and marri (Corymbia calophylla). This community is botanically diverse with an estimated 780 plant species occurring in the forest region. Less than 10 percent of the forest remains in an old-growth condition. About 15 percent of the forest is secure in conservation reserves that sample the range of forest plant communities and protect remaining old-growth areas. Mining is not permitted in conservation reserves and, to date, all areas mined have been selectively logged at least once. Alcoa currently operates two bauxite mines at Huntly and Willowdale, approximately 90 kilometres and 135 kilometres Southeast of Perth, respectively. The third mine at Jarrahdale ceased production in 1998 and has now been decommissioned and fully rehabilitated. Currently, about 550 ha are mined and rehabilitated annually. Since the commencement of mining, 12,560 ha have been cleared and 10,600 ha have been rehabilitated. Alcoa's rehabilitation objective is to "return a self-sustaining jarrah forest ecosystem that fulfils all of the pre-mining land uses". The specific conservation goal is "to encourage floral, faunal and soil characteristics similar to those of the indigenous jarrah forest ecosystem". Ecologically sustainable forest management principles are applied in the management of the forest for nature conservation, catchment protection, timber production, tourism, recreation, mining and wildflower industries (Gardner, 2001). 3.1.3.2.3 Reclamation Techniques

Rehabilitation commences with re-shaping of the 2 to 5-metre high pit walls to a maximum slope angle of 18. Recontouring of the mined-out pits aims to mimic the original, natural landscape. The overburden, which is stripped separately from the topsoil and usually stockpiled nearby, is then respread. Topsoil is then returned from newly cleared areas (a practice called direct return) or from stockpiles of topsoil when there is no opportunity for direct return. Direct return of fresh topsoil enhances the return of viable seeds, nutrients, organic matter and beneficial soil micro-organisms. To maintain these important soil properties at the surface, the topsoil is stripped and returned in as thin a layer as possible, generally 10 to 15 cm. Following topsoil return, a few tree stumps, logs and rocks are returned to the mined areas to provide habitat for fauna. The ground is then ripped to 1.5 metre deep using a tine with wings. Ripping is carried out in summer and autumn to maximise shatter of the compacted subsoil. Contour lines at 3 to 5 metre vertical intervals are surveyed and marked in the field and ripping accurately follows the contours. The ripping creates furrows approximately 0.4

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metres in height and 1.5 metres wide. The contour furrows are critical for preventing rainfall runoff and soil erosion. Immediately after ripping and before the onset of autumn rains, a seed mix of a wide range of local plant species (70 to 100 species) is broadcast on to the freshly cultivated ground. Seeding immediately after ripping maximises plant establishment from the applied seeds (Hinds, 1999). Seed is either broadcast by hand or applied directly on to the freshly ripped ground by a seeding machine attached to the ripping bulldozer. The seed mix is applied at about 2 kilograms per hectare. Seeds of the dominant tree species, jarrah and marri, are included in the mix at rates that establish these trees in a proportion similar to that in the natural forest. Only indigenous species are included in the seed mix, and all the seed is sourced from within about 15 kilometres of each mine to retain local genetic material in the rehabilitated areas. The species are selected on the basis of: 1) their natural occurrence in the jarrah forest; 2) their adaptation to early successional stages i.e. species that are capable of rapid growth and having nitrogen fixing ability; and 3) the ease of collection. Common species include Banksia grandis (bull banksia), Allocasuarina fraseriana (sheoak), Trifolium subterraneum (subterranean clover), and Xylomelum occidentale (woody pear) to name a few (Hinds, 1999). Other plant species that are not easily re-established from seeds, because of low seed viability, germinability or availability, are propagated in containers at Alcoa's nursery and laboratory using tissue culture, cuttings or seed. Alcoa planted 215,000 of these "recalcitrant" plants at the mines in 2001. Fertiliser is applied to the rehabilitated areas in late winter or early spring by helicopter. A mixed fertiliser [Ammonium Nitrate Based (NPK) and micronutrients] is applied at 500 kilograms per hectare. Winter rainfall is generally reliable, and plants establish well in the first year. Provided contour ripping is carried out effectively and erosion is avoided in the first year, the sites stabilise and are not prone to erosion in subsequent years. Tree height growth from broadcast seed is usually less than 0.5 metres in the first year but of the order of 1 metre per year in subsequent years. The understory also establishes rapidly. Seeding rates are designed to establish a minimum of one leguminous plant per square metre and between one-half and one non-legume plant per square meter. With the good availability of nutrients from broadcast fertiliser, tree and understory cover approaches that of the adjacent forest within the first five years. At this age, many short-lived plant species, especially acacias, start to grow old, contributing to the rapid development of a litter layer. It was estimated that the rehabilitated areas attracted back approximately 85 percent of the animal species and a rapid reintroduction of invertebrates. Live cover, litter cover, and the number of species present on topsoil sites that have been directly transferred have double those on stockpiled sites and the diversity values is also closer to those of the neighbouring forest community after 3 years. There was however a lack of birds which require hollow branches as nesting site (Hinds, 1999). 3.1.3.2.4 Reclamation Monitoring

Various monitoring programs are carried out in the rehabilitated areas. Initial monitoring at nine months checks that tree and understory establishment requirements have been met. Rehabilitated areas are also inspected for erosion problems. At 15 months, plant species richness is measured. Studies of plant succession, vegetation pattern, tree growth, biomass accumulation, nutrient cycling, water use and timber quality have been undertaken (Alcoa World Alumina Australia, 2001). Several fauna recolonisation and succession studies have also been completed. These confirmed that the food and habitat requirements of animals are being met. They also identified shortcomings in the rehabilitation practices that required attention, such as the need to place more logs, tree stumps and rocks to restore ground habitat (Gardner, 2001).

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Alcoa's recent push for improvement in rehabilitation practices has aimed to increase species richness in rehabilitated areas to the same level as the adjacent forest. In 1992 the species richness in rehabilitated areas was just over 60 percent of the forest average. At the last measurement in areas rehabilitated in 1999, average species richness was 96.8 percent of the forest average. Improvements have come from improved topsoil handling methods, seed collection, treatment and application methods and the planting of nursery-grown recalcitrant species. By and large all monitoring indicates that the rehabilitated areas are developing towards the stated objective. However, given the level of disturbance from the mining activities and the age that the forest will need to reach to fulfil all of its functions, it will take some time to confirm this (Gardner, 2001). The Australian mining sector is fortunate to operate in a sound and stable legal, regulatory, policy, strategic planning and investment environment and to have clear environmental impact assessment, planning, implementation and monitoring guidelines to follow. Yet although this is undeniably a helpful foundation for the successful operation of the mines and the subsequent rehabilitation process, the performance of Alcoa has been largely driven from within, locally and beyond regulatory compliance. Alcoa is working to transfer best practice and adopt the same rehabilitation principles and standards world-wide - and in so doing, to demonstrate that best practices are not only achievable in stable, developed countries (Gardner, 2001).

3.2
3.2.1

BAUXITE CASE STUDY: INDAL


Operational Features and key Issues

Indian Aluminium Company, Limited (Indal), an Aditya Birla Group Company, has been a part of India's aluminium industry for over six decades. Established in 1938, Indal is vertically integrated through all stages of the aluminium business - from bauxite mining, alumina refining, power generation, aluminium smelting to semi-fabricated products of sheet, foil and extrusions as well as aluminium scrap recycling. A nation-wide spread of plants, mines and offices gives Indal the advantage of being in proximity to various regional markets within and outside the country. Certified with ISO 9001 and ISO 14001 (the first in Asia to receive ISO 14001) certifications for quality and environment management, the Company enjoys a leading market position in India for speciality alumina chemicals and value-added products of aluminium sheet, foil and extrusions. As a member of the Aditya Birla Group, Indal is a part of one of India's largest business houses with revenues in excess of US $6 billion and net earning of around US $400 million. A premium conglomerate, the Aditya Birla Group is a dominant player in all sectors in which it operates, aluminium, viscose staple fibre, copper, cement, viscose filament yarn, branded apparel, chemicals, carbon black, fertilisers, sponge iron, insulators, power, telecom, financial services and insurance. Its flagship companies include Hindalco, Grasim, Indian Rayon and Indo Gulf. Recent restructuring plans include merging the Indo Gulf copper business with Hindalco and the latter increasing its 74.47 percent stake in Indal to make it a wholly owned subsidiary. The fertiliser business of Indo Gulf will be demerged into a separate company. This would give the Group the advantage of having one multi-resource, non-ferrous company of global size and scale. This would also enhance opportunities for Hindalco-Indal to work in close coordination to maximise the synergy benefits for higher shareholder value through business focus. 3.2.2 Management Philosophy

As a business house, Indal is fully committed to sustainable development. In their view it is extremely vital to meet the needs of today without compromising the welfare of the future generations. They see a tremendous intrinsic linkage between economic growth and environmental protection. As such, they strive to run the plants at Taloja and Kalwa in Maharashtra, Muri in Jharkhand, Belur in West Bengal, Alupuram in Kerala, Hirakud in Orissa
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and other mines in Maharashtra and Jharkhand, in an eco-efficient manner. All of the plants and installations at the mines are ISO 14001 Environment Management Systems certified, with the singular exception of the foil plant at Kalwa where the process of attaining the certification is underway. They also seek validation of their Environment Management Systems on an ongoing basis. The Bureau Veritas Quality International (BVQI) and DNV Netherlands Indian Chapter, supported by a team of internal and external auditors are engaged in the auditing of the manufacturing processes at Indals various plants. Likewise the State Pollution Control Board certified auditors carry out intensive Environmental Audits at the plants every six months, in order to confirm Indals commitment to environment conservation. Indals Environmental Policy Statement is presented as follows: We at Indal believe that protection of the environment is our prime corporate responsibility. While carrying out all our businesses we are committed to the principles of Sustainable Development. We will make continual improvements in our operations to ensure ecological balance while achieving economic growth. To meet the above goals, we will strive to: Constantly improve upon the standards, wherever environmentally beneficial and techno-economically feasible, consistent with sustainable industrial growth. Achieve improvement in eco-efficiency in all operations, setting standards in environment management and incorporating cleaner technologies in new/expansion projects. Actively participate in social welfare and environment developmental activities for the communities around our units. Provide leadership in the use of environmental management systems and develop employee awareness of environmental responsibilities. Set up an Environmental Performance Assurance Process and comply with all applicable laws governing environmental protection.

3.2.3

Implementation of Best Management Practices

A clean and sustainable environment through resource conservation and protection of the ecosystem forms the basis of Indals environment management system. At all of Indals units, state-of-the-art industrial effluent treatment plants are in operation. A major quantity of the treated effluent is recycled for use at the plants. To be a zero effluent discharge company, Indal is working to upgrade the effluent and sewage treatment plants. Once completed, these facilities will ensure that all treated effluent will either be used in process or in horticulture (for example, power plant fly ash as a soil substitute for growing paddy and vegetables). Over the last five years the consumption of water at all of the units has been reduced by 20 per cent. Seven out of eleven units have registered zero effluent discharge. At full-service laboratories in the units, effluents, water emissions and air quality are continually tested. To ensure minimum possible dust emission from the operations, electrostatic precipitators have been installed in boilers and kilns while smelters have inbuilt wet scrubbers. Utilising available technology has resulted in fluoride emissions from the aluminium smelters being far lower than the standards stipulated by the India Ministry of Environment. There is an ongoing program for innovative disposal of generated waste. At Belgaum a novel method of storing dry red mud from the alumina refinery has led to a significant reduction in
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land use, and helped rehabilitate the land faster. More than 150 hectares of virgin land earmarked for the third red mud pond has been handed back to the Government. They have also been able to productively use the fly ash generated at the Hirakud Power Plant by supplying it to cement manufacturers and brick makers. Indal also has ongoing efforts targeted at energy conservation. The plants at Belgaum and Muri have significantly reduced energy consumption by reducing energy for hydrate extraction. Coal consumption is also being continuously lowered. By altering the bath chemistry at the Alupuram Smelter, the DC energy consumption was brought below 14.8 kilo watt hour per kilogram, which was a record for the plant. Indal conducted an energy audit process at the Hirakud Smelter and were able to bring down the auxiliary energy consumption when the recommendations were implemented. Also, initiatives such as recovery of waste heat from furnaces for ingot pre-heating, reducing the auxiliary electrical energy consumption and increasing volumes at the Belur Sheet plant, have facilitated energy conservation plus made the plant more competitive. Indal is equally aggressive in maintaining high safety and health standards for all of its employees by ensuring a safe working environment utilising a process of continuous implementation of best practices and world class manufacturing systems. Collectively the plants and mines have achieved over 26 million accident free man-hours. In addition to building a technical program of eco-efficiency into all of the operations, Indal educates its employees on the importance of sustainable development in continuum. All of employees are instructed regarding the companys environment policy and its commitments to the concept of sustainable development. The township for plant is housed within the plant campus and more than 5,000 families live within the precincts of the Indal plants. The employees families are highly involved in ensuring that the plants natural forested environment is maintained and more than a quarter of the land in all of the plant areas is planted with trees.

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4.0 IRON ORE CASE STUDIES


4.1
4.1.1

IRON ORE CASE STUDY: HIBBING TACONITE COMPANY


Operational Features and Key Issues

Hibbing Taconite Company (HTC) is located in the centre of Minnesotas Mesabi Iron Range near the cities of Hibbing and Chisholm. HTC is considered a world class iron ore pellet producer. It employs approximately 800 people and is certified to ISO 9001 (International Organisation for Standardisation, 2000). HTC is owned by Bethlehem Steel Corporation (62.3 percent), Stelco Inc. (14.7 percent) and Cliffs Mining Company (23 percent). Cliffs Mining Company is also the managing agent. Plant capacity is rated at 8.0 million tons of iron ore pellets annually. The HTC processing complex features nine 11-metre diameter autogenous grinding mills, two stages of magnetic separation, four balling drums per indurating line and three travelling grate pelletising machines. HTC began pellet production during the third quarter of 1976 and made its initial shipment to the port of Superior, Wisconsin in January of 1977. 4.1.2 Management Philosophy

A statement of the environmental policy of Cleveland-Cliffs Inc. and its associated companies is described as follows. Mining and mineral processing make a vital contribution to world development by providing the essential raw materials for products necessary for modern society. Cleveland-Cliffs Inc (the "Company") recognises that extraction and processing of the earths mineral resources must be accomplished in a manner that minimises impacts on the environment and the community. The Company believes that stewardship with proper concern for the environment is an essential element of a successful business strategy. STATEMENT OF POLICY It is the policy of the Company to conduct its affairs in accordance with appropriate best available practices. To accomplish this, the Company will: A. Adopt standards that build from a foundation of compliance with applicable government laws and regulations, permits, and related agreements. B. Establish management systems, standards, programs, and procedures within its corporate and operating units for implementation of this policy, and integrate environmental considerations into business planning. C. Inform managers and employees of their responsibility to comply with this policy, and to be sensitive to the effects of the Companys operations on the environment. D. Conduct periodic environmental audits of operating practices to verify compliance with this policy, and identify revisions or improvements required to minimise environmental effects. E. Conduct environmental assessments for all new properties, activities, acquisitions, closures, divestitures, and proposed changes in operating procedures. F. Ensure that contractors working on the Companys premises or on properties managed by the Company comply with relevant environmental standards.
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G. Contribute to the development and administration of technically and economically sound environmental standards and compliance procedures through interaction with professional and trade groups, legislative bodies, regulatory agencies, and citizen organisations. H. Establish procedures for the reporting of conditions or incidents with the potential for adverse environmental effects, and responding with appropriate corrective actions. Provision shall be made for the communication of environmental information with the Companys various publics. 4.1.3 4.1.3.1 Implementation of Best Management Practices Environment

HTC has compliance programs and procedures dedicated to control and minimise environmental impacts. Examples of these programs are: Air haul road dust monitoring and dust control, crusher and stockpile dust control, tailing basin dust control, dust collector operation and monitoring. Water Pit and basin water elevation monitoring, water discharge sampling, Minnesota Pollution Control Agency (MPCA) approved chemicals. Land Mine land reclamation stockpile activities, wetland mitigation and monitoring, tailing basin operation. Tanks Underground and aboveground storage tank monitoring and registration. Waste Solid, universal, special, and hazardous waste management, Material Safety Data Sheets (MSDS) approvals. Multi-media Voluntary Mercury Reduction Agreement.

HTC maintains current knowledge of environmental regulations through its participation in industry groups like the Minnesota Iron Mining Association. HTC also participates with the MPCA in environmental regulatory workgroups and the multi-stakeholder MN Mercury Advisory Council. HTC works with regulatory agencies, such as the US Environmental Protection Agency, the US Army Corps of Engineers, the MN Department of Natural Resources, St. Louis County and the City of Hibbing to minimise the impact from operations, and to ensure the mine is in compliance with all applicable regulations. 4.1.3.2 Safety

Hibbing Taconites Safety and Health Program is based on the following loss control philosophies and practices. As a commitment to its employees and owners, Hibbing Taconite Company will provide and maintain a safe and healthful work environment as indicated by acceptable industry practices and compliance with legislative requirements. They will strive to eliminate any foreseeable hazards, which may result in personal injuries/illnesses, fires, security losses, process losses and damage to property. All management functions are expected to comply with Hibbing Taconite Companys Loss Prevention requirements as they apply to employees and the design, operation and maintenance of facilities and equipment. All employees are expected to perform their jobs properly in keeping with sound loss control philosophy and operating practices.

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Accidental loss can be controlled through good management in combination with active employee involvement. Loss prevention is the direct responsibility of all department managers and employees alike. The safety values are: Nothing we do is worth getting hurt over. Safety and health can be managed. Every illness and/or injury could and should have been prevented. Safety and health performance is everyones responsibility.

4.2
4.2.1

IRON ORE CASE STUDY: KUDREMUKH


Operational Features and Key Issues

The Kudremukh Iron Ore Company Limited (KIOCL) operates an iron ore mine in the hill ranges of the Aroli Gangamoola range of the Western Ghat in the Karnataka province of India, an area known for its wild natural beauty. In the region there are dense forests and a rich fauna ecology present along the Bhadra River and its tributaries. Iron ore was originally discovered in 1913 and the deposit was estimated at 700 million tonnes. KIOCL, a Government of India enterprise under the Ministry of Steel and Mines, was established in 1976 and currently mines the Kudremukh deposits. The area contains one of the largest deposits of iron ore in the world. The one deposit where mining is being carried out at present has reserves of 630 million tonnes of weathered ore and 450 million tonnes of primary ore. The region, including the Nellibeedu, Gangkrigal and Bababudan areas, is estimated to have a probable reserve of 3,000 million tonnes. The iron ore mining process poses multi-dimensional environmental problems such as waste management, water pollution control, and conservation. KIOGL has maintained the philosophy of including planning for ecological and environmental preservation from the very beginning of a project, even before the prospecting stage. The Kudremukh project site is located in a high rainfall region within a tropical climate zone. The average annual rainfall is 7000 mm between June and September which makes stormwater and erosion control two of the major issues to address with the environmental planning. The mine area is situated on the southern side of the Bhadra River and KIOCL has had to devise suitable and effective pollution control measures to keep the ecology and environment intact around the river. 4.2.2 Management Philosophy

KIOCL has obtained ISO 14001 certification for its EMS. The Environmental Policy of KIOCL is described as follows: We are a Mining Company producing iron ore Concentrate and Pellets. Our Policy is: Care for the environment. Integrate with regular operations, the steps for prevention of pollution, resource, conservation and waste reduction. Improve performance continually Comply with applicable regulations. Involve employees and all concerned. Introduce a system for environment management, for emergency preparedness and a long term plan for eco-restoration. 4-3
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4.2.3

Contribute for betterment of neighbourhood.

Implementation Of Best Management Practices

KIOCL has maintained an active approach to implementing BMPs in the region for environmental mitigation of the impacts of mining. The company has received many awards for its efforts including the prestigious Abheraj Baldota Environment Award, instituted by the Federation of Indian Mineral Industries (FIMI) for the year 1993-94. 4.2.3.1 Stormwater and Sediment Control

Due to the high annual rainfall, stormwater runoff and sediment erosion control BMPs are a focus of the BMP program. Mining activities are planned and designed to minimise runoff from the exposed ore body and stormwater runoff from mining faces and mine roads are directed through an extensive drainage system into two major valleys across which two rockfill dams have been constructed. The two dams act as detention basins to allow the sediment to settle out and allow the clear(er) water to overflow and join the Bhadra River. The silt collected in these dams is desilted during the non-monsoon winter and summer months to maintain storage capacity for the next monsoon. In addition, the silt is rich with washed iron ore, yielding annually about one and half million tonnes of quality ore. The capacity of the rock dams has been increased in recent years to match the increased capacity of the mining operations. In addition, a series of check berms have been constructed in other smaller valleys to minimise sediment movement during the monsoon. The Kudremukh Holey (tributary) is one of the tributaries of the Bhadra River which was susceptible to receiving sediment runoff. To reduce the impacts to the tributary, a 900-metre long channel was constructed to divert it away from the mining operation and rejoin the Bhadra on the downstream side of the mining operation. The Kudremukh deposit is primarily a low-grade ore and as a result nearly 12 million tonnes of tailings are generated annually from the benefication process. To contain these tailings, a 100-metre high earth - fill dam was built across the Lakhya Holey to prevent pollution of the Bhadra River. The dam was originally built to 65 metres high during 1977 to 1979 and was recently raised to 100 metres. In addition to its main purpose of pollution control, the dam serves as a water source to meet the plants process water requirements. Slurry tailings are discharged into the impoundment, the solids are allowed to settle out and the clear(er) water discharges over the spillway during the monsoon. Dump ponds have been built to capture sediment lost during plant stoppages. Solids collected in the ponds are periodically reclaimed and pumped back into the system for processing. 4.2.3.2 Afforestation

A comprehensive plan to protect the natural flora of the region has being developed and is being implemented in the region. As part of its afforestation program, the company has already planted nearly 7.5 million trees to prevent mine run-off and soil wash-off. In addition, turfing has been done on a large scale in all critical earth - filled areas to prevent earth slides. KIOCLs extensive afforestation program within the Mine Lease areas has been conducted in close association with the Karnataka Forest Department and the Karnataka Cashew Development Corporation. Since the start of mining, over 3,025 acres of waste land in the Lease area has been successfully converted into plantations. To protect and nurture rare medicinal plants in the region a project was launched with the Ayurvedic College, Udupi, to grow valuable medicinal plants and endangered species. KIOCL has also worked with the Karnataka Forest Department for the development of the Kudremukh National Park.

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4.2.3.3

Social Contribution

KIOCL maintains a corporate commitment to actively contributing to the social wellbeing and betterment of the regional population. The company maintains a town park spread over 20 acres with rose gardens, flowering trees, tree groups, lawns, fountains, fish ponds and aquariums and a small zoo. It also maintains a 16-acre fruit orchard from which it sells fruit to the local population at subsidised prices. KIOCL contributed to the construction of a modern sewage treatment plant and underground sewerage system. In addition, the company has invested in community development projects including expenditure on town infrastructure, water supply, education, general donations and distribution of books to libraries. When 71 families were displaced as a result of mining operations, KIOCL rehabilitated the families by providing housing and amenities, and employment for one member of each family. As a result of the various ecological protection measures and other precautions, the project area has largely been protected from the severe flooding that can occur during heavy monsoons. The application of appropriate technology and planning has minimised air and water pollution in the project area. At Mangalore, for instance, the effluent water is being treated before disposal. The company has has taken on the responsibility of ensuring the supply of clean and potable water to the residents of adjacent communities.

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5.0 LIMESTONE CASE STUDIES


5.1
5.1.1

LIMESTONE CASE STUDY: LAFARGE GROUP


Operational Features and Key Issues

The Lafarge Group is the world's leading producer of quarry-source building materials (e.g., cement, Aggregates and Concrete, and Gypsum. In 2001, Group sales amounted to 13.7 billion. With a workforce of 83,000 people, Lafarge is now present in 75 countries. It has established a sustainable development policy that encompasses industrial efficiency, value creation, protection of the environment, respect for people and cultures, and preservation of natural resources and energy. Most of the construction materials produced by Lafarge are derived from quarried natural mineral resources, e.g., limestone, gypsum rock, and aggregates. While most of these nonrenewable raw materials are globally available for years to come, their local availability is subject to competition and regulatory controls. Moreover, quarries are often seen as a local nuisance. In addition, quarries can pose land-related socio-economic problems, which makes continuing dialogue and interaction with local stakeholders a key aspect of Lafarges quarrying projects. Quarries are the most visible impact of cement works, mainly posing a problem at the end of their working life. Many issues arise during development and operation as well. Quarry rehabilitation is subject to certain rules and regulations in many countries. Groups like Lafarge that are active worldwide are therefore expected to apply the same standards in countries even where the environmental legislation is weak or poorly enforced. 5.1.2 Management Philosophy

Lafarge operates more than 800 quarries located around the world, in a wide range of biogeographical regions. Upgrading their ecological value is an ongoing program for Lafarge. LaFarge views a quarry as but one stage in the life of a site and the definition of a biodiversity strategy for quarry restoration, a field where Lafarge has already gained considerable experience and expertise, is an important part of partnerships with organisations such as the Word Wildlife Fund (WWF). One element in the enhancement of biodiversity at its operations is creating wildlife habitats consistent with the indigenous species around the sites. This focus is applicable to existing quarries, operations areas, buffer areas, and entrances and to quarries/sites undergoing rehabilitation. Another element of this biodiversity strategy is incorporated in the Strategic Quarry Rehabilitation Project (SQRP). Lafarges SQRP task-force was created in 1999 in order to develop the exchange and sharing of quarry restoration experience and know-how within the Group, and to ensure that information was available to all Business Units. To meet these objectives, the SQRP task force developed a quarry rehabilitation policy, approved by Lafarges Executive Committee; a Best Practices guide and a catalogue of exemplary achievements; and a database containing a list of Lafarges experts in the various specialities of quarry rehabilitation. Almost 50 percent of Lafarges quarries currently have a rehabilitation plan. Lafarge proposes to have 80 percent of its quarry operations implementing a Lafarge-approved rehabilitation plan by 2004. 5.1.3 Implementation Of Best Management Practices

Lafarge has a defined program of best management practices that are implemented over the life cycle of a project.

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5.1.3.1

Quarry Site Selection

Before opening a new quarry, Lafarge systematically carries out an EIA. This has become a legal obligation in most developed countries, but for the purposes of consistency, Lafarge conduct such assessments on all significant projects. A recent example of this can be found in India for a new quarry in Meghalaya, which is discussed in greater detail in Section 5.5. Biodiversity is taken into account in the site selection. When the establishment or extension of a quarry threatens a valuable nature area, or a protected or rare species, special measures are taken that can go as far as closing part of the site and reclassifying it as a voluntary nature reserve, or transferring the threatened species to a safe location. When environmental impact studies demonstrate the extreme sensitivity and biological richness of a site, and if it is expected that it will be impossible to properly restore the site after exploitation, then Lafarge will not develop the site. 5.1.3.2 Minimising the Impacts of Quarrying

Quarries pose a variety of different types of problems that are tackled by Lafarge from the beginning of a project. Lafarge endeavours to minimise a quarry's impact on the landscape. Thus, the investments required for this purpose are included in operating costs so that they are properly treated financially. Lafarge has extensive experience in mitigating the impacts of dust, noise and vibrations. Also, quarrying needs to take care of the archaeological or geological interest of the site. It is not easy to establish global indicators in this context because the problems that arise can be highly site-specific and as a result solutions are usually developed locally in conjunction with the relevant parties. 5.1.3.3 Quarry Rehabilitation and Land Planning

Lafarge views quarry rehabilitation/restoration as a priority at all sites, and its standard practices generally go well beyond applicable regulatory requirements. In 2001, Lafarge adopted a formal Quarry Rehabilitation Policy with the participation of the WWF, in order to spread best practices in terms of quarrying work and relations with local stakeholders. The most important elements of this policy are to plan restoration from the outset and top coordinate restoration with quarrying activities. In addition to biodiversity issues, land planning considerations are also taken into account when defining a rehabilitation project in order to preserve the environment and to generate income for the local communities. In this framework, quarry rehabilitation often leads to the creation of wetlands and natural reserves or leisure areas. A recent example of quarry rehabilitation actions is discussed in Section 5.4; examples of quarry rehabilitation in the context of comprehensive life-cycle planning for a new quarry in India is discussed in Section 5.5. 5.1.4 Rehabilitation of the Weissenegg Quarry, Austria

Mining of the Weissenegg limestone quarry had been interrupted since the 1960s, but in 1990 Lafarge Perlmooser (Austria) decided to use the limestone of the Weissenegg quarry and the sandy layers of the overburden as raw material components in the Retznei cement plant. This allowed the Retznei and Rosenberg quarries lifetime to be extended. In order to get the approval to restart the mining operations in the Weissenegg quarry, Lafarge designed a new mining development plan including a special quarry rehabilitation plan called a Landscape Plan. The Landscape Plan specified Lafarges thinking on the shaping of the mining slopes after mining, the location and shaping of the overburdened dump, the structuring of the mined areas by sectors with different subsequent use (e.g., forest, meadow, reserve for special endangered species of animals and plants, and wetlands) and the re-vegetation methods. This rehabilitation plan, which focused on the preservation of biodiversity, was worked out in intensive co-operation with local nature protection experts, as well as the University of Bodenkultur in Vienna, and with the experts of the WWFs Austrian organisation.

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5.2

LIMESTONE CASE STUDY: MEGLAHAYLA MINE, INDIA

As part of a proposal to start up an open cast limestone and shale/siltstone mine, Lum Mawshun Minerals Private Limited (LMMPL) and Lafarge Umiam Mining Private Limited (LUM) developed a comprehensive mine reclamation strategy and closure plan incorporated into the operating plan and for submission to the World Bank. The plan includes physical reclamation, rehabilitation of disturbed areas, future management of identified problems (e.g., drainage, water and wastewater management), a comprehensive monitoring program, and schedules of operation and cost. The LMMPL Limestone Mine Project is to be located at Phalangkaruh, Nongtrai - Shella, within the Shella Confederacy in the district of East Khasi Hills, Meghalaya, India. The proposed mine will have a 53 year life and extract about 2 million tonnes of limestone per annum and 0.35 million tonnes of shale/silt stone that will be transported to the proposed cement plant at Chhatak in Bangladesh through an elevated belt conveyor. The mining lease covers an area of 100 hectares of land leased from Village Darbar of Nongtrai. The proposed belt conveyor corridor will be approximately 17 kilometres in length, of which 7.2 kilometres will lie within the Indian territory, while the remaining part will be situated in the Bangladesh territory. LMMPL, a joint venture company incorporated in India with 74 percent equity participation of Lafarge Surma Cement Ltd. (LSC), is the lease holding company, and LUM, a 100 percent subsidiary of LSC incorporated in India, is the operating company for the mining project. The reclamation principles include: 5.2.1 Ensuring long tern stability of slopes and surface materials; Ensuring public safety in the vicinity of open pits, shafts and subsidence areas; Management of any potential toxicity of tailings and waste rock that may constrain revegetation; Management of potential acid drainage as result of oxidation of sulphides in ore and wastes; and On-going and post-closure rehabilitation including consideration of socio-economic aspects. Project Description

The mining of limestone in the Nongtrai area is based on extensive topographical and geological survey, surface sampling, and drilling data. The lease area of 100 ha lies on the western side of Umiam river valley, about 2 Kilometres Northwest of the Shella Bazar village. It is approachable from the city of Shillong by road (109 kilometres). The method of mining will be open cast and fully mechanised. Drilling will be done by 115 mm diameter hydraulic drills, blasting by ANFO and slurry explosive, excavation by hydraulic excavators and transportation by 35 tonne rear dump trucks. The material will be transported to the cement factory by a 17.5 kilometres long covered conveyor belt system. The bench height is estimated at 10m, ultimate pit bottom at 90m RL, and an overall pit slope 450; the gradient of haul road is calculated at 1 in 16 for working benches and 1 in 10 for the ultimate pit. There is a statutory barrier of 7.5 metres from the lease boundary (inside) and a protection distance from the sinkhole is 100 metres. The project has been cleared by the State Government of Meghalaya, the local Durbar, and the Ministry of Environment and Forest, Govt. of India on the basis of the Mine Plan, EIA, and Environment Management Plan.

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5.2.2 5.2.2.1

Legislative, Best Practice Standards and Corporate Consideration Legislative Requirement

The mining project is be governed by the following legal instruments: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The Water (Prevention and Control of Pollution) Act, 1974 and Rules, 1975. The Forest (Conservation) Act, 1980 and Rules, 1981. The Air (Prevention and Control of Pollution) Act, 1981 and Rules, 1982. The Environment (Protection) Act and Rules, 1986. The Environment Impact Assessment Notification, 1994 amended till date under EPA, 1986. The Factories Act and Amendments, 1948, 1987. The Public Liability Insurance Act, 1991. The National Environment Tribunal Act, 1995. The Environmental Standard Notification, 1993, 1996. The Hazardous Waste (Management and Handling) Rules, 1989 amended 2000.

Besides the environment related laws, mines and minerals legislation pertaining to environment related issues may also be considered. These include: 1. 2. 3. 4. 5. 5.2.2.2 Mines and Minerals (Regulation and Development) Act, 1957. Mine Act, 1952 and Rules, 1953. Mineral Concession Rules, 1960. Mineral Conservation and Development Rules, 1958. Prohibition of Mining Operations in Ecologically Fragile Areas. World Bank Policies and Guidelines

Because of project funding considerations, a number of World Bank policies and guidelines apply, and are listed for reference as follows (Environment Department, the World Bank, update no. 22, March 1998): OD 4.01 Environmental Assessment (EA): Policy and procedures for EA, whereby potential impacts are taken into account in selecting, site planning, and designing projects. OP/BP/GP 4.02 Environmental Action Plans: Policy to encourage and support borrowers to prepare, implement, and maintain environmental action plans, which should be reflected in Bank operations. OP/BP 4.04 Natural Habitats: Policy to support the protection, maintenance, and rehabilitation of natural habitats. OP 4.07 Water Resource Management: Policy to promote economically viable, environmentally sustainable, and socially equitable water management. GP 4.11 Cultural Property: The Banks general policy regarding cultural properties is to assist in their preservation and avoid significant damage or elimination of irreplaceable cultural property. OD 4.20 Indigenous Peoples: Policy to ensure that indigenous peoples benefit from development project, and the projects potentially adverse effects are avoided or mitigated. OD 4.30 Involuntary Resettlement: Policy and procedure on Bank staff and borrower responsibilities towards displaced persons in operations involving involuntary resettlement.

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5.2.2.3

Corporate Policy Statements

The Lafarge corporate environmental policy will apply to this project, and is based on the concept of sustainable development; it includes the following themes (Lafarge and the Environment, March 2000): 5.2.2.4 Regulation: Respect local laws, standard and regulation; set-up own internal standard to correspond with internationally recognised criteria. Environmental Technologies: Develop and use clean technologies, better pollution control for efficient reduction of pollutants. Sparing Use of Natural Resource: Re-use of by-products and residual wastes for raw material. Research and Renovation: Invest in advancement of clean technologies and promote research for better environmental management at every phase of products life cycle. Risk Reduction: Assess potential hazards and risks at every installation to ensure effective prevention from accidental pollution. Training and Evaluation: In service training and periodic evaluation of environmental performance to attain the objective of proper management. Setting Demanding Standards: Lafarge Standards are at least as stringent as international regulation. Communication: Establish effective communication with all stakeholders. Assessment and Result: Internal assessment, at least once in a year, to be carried out to reach the objectives. Other Best Practice Standards

According to GSR 801 (E), EPA, 1986, dated Dec. 31, 1993 the SPCBs are to follow the guidelines for enforcing the standards specified under Schedule IV as given below: In case of lime kilns of capacity more than 5 tpd and up to 40 tpd, the particulate matter emission shall be within 500 mg/Nm3. In case of stone crushing units, the suspended particulate matter contribution value at a distance of 40 m from a controlled, isolated as well as from a unit located in a cluster should be less than 600 g/Nm3.

These units must also adopt the following pollution control measures: 5.2.3 Dust contaminant cum suspension system for the equipment; Construction of wind breaking walls; Construction of the metalled roads within the premises; and Regular clearing and wetting of the ground within the premises. Environmental and Social Management Considerations

Mining and its related activities fall into the following categories: Exploration; Extraction and disposal of waste rock; Ore processing and plant site operations; Tailings containment, treatment and disposal; 5-5
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Infrastructure, access and energy; and Construction work camps and operational town site.

Measures that will be taken for environmental and social management in the project area are described in the following sections. 5.2.3.1 Air Quality Management

In India ambient air quality data should show that the concentrations of particulates, sulphur dioxide (SO2), carbon monoxide (CO) and nitrous oxides (NOx) are within the stipulated CPCB standards. The proposed mining operations and related activities are expected to add to the levels of air borne particulate matters. However, the addition of gaseous pollutants due to the proposed activities is expected to be relatively low under a controlled operation. Controlling Dust Levels Dust would be generated during mining, crushing operations, and also during handling and transportation of the material. The proper control measures would be taken up in the major areas of operation as follows: Mine Dust suppression systems (water spraying) will be adopted at faces/sites while loading, and at the use of sharp teeth for shovels. Dust extraction systems will be used on drill machines, sharp drill bits for drilling holes, and drills with water flushing systems (wet drilling) will be used to reduce dust generation. Stock-piles Mist sprays will be provided at appropriate places to minimise dust pollution during handling and stockpiling of mined material. Haulage Regular water spraying will be carried out on haulage roads during transportation of limestone up to conveyor belt system by water sprinklers. Transfer points shall be provided with appropriate hoods/chutes to prevent dust emissions. Dumping of limestone should be done from an optimum height (preferably not too high) so as to reduce the dust blow. Crusher The crusher will be provided with Bag Filters to arrest any dust emission. The dust emission level will be kept within the prescribed standard of 150 mg/Nm3. Water sprinkling systems will be provided to control any fugitive emissions from the crushing operation. Belt Conveyor A close conduit type conveyor belt will be used for transportation of crushed material to the cement plant at Chattak, Bangladesh. The belt and idlers will be maintained in proper condition so as to avoid spillage of material and prevent any fugitive emissions. Greenbelt Even with the various dust suppression measures in place, dust generated from mine faces is difficult to control. Therefore, in addition to the above mitigative measures, it is proposed to have a green belt in and around the mine site, crushing, loading and unloading facilities, along the corridor of the conveyor route and in abandoned mine areas during the reclamation process. It is expected that plants with 10-metre, 20-metre and 30-metre height can reduce dust pollution by 50 percent, 70 percent and 80 percent respectively. A combination of these,
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with appropriately selected species, would be planted depending on the requirements and the extent of the problem. Controlling Carbon Monoxide Levels The concentration of CO in the ambient air was below detectable limits during pre-mining period at all of the air quality monitoring locations. The expected increase in the CO concentration is very low as CO emissions from mining operations are minimal compared to other pollutants. Heavy and light vehicles are the major sources of CO in the mine. All vehicles and their exhausts would be well maintained and regularly tested for pollutant concentration. Controlling NOx Levels NOx emissions in the mine mainly occur during the controlled blasting operations. The only other source of NOx would be due to vehicular emissions, which will be controlled appropriately along the same guidelines as for the CO levels. Occupational Health & Safety Measures to Control Dust Inhalation Use of dust masks would prevent inhalation of respirable particulates thereby reducing the risk of lung diseases and other respiratory disorders. Regular health monitoring of workers and villagers from nearby areas in the impacted zone (1 kilometre from the core zone) will be carried out. Noise Pollution Control To keep noise generation in control, utilising the latest sophisticated technology and equipment has been considered. In addition. drills, loaders, trucks, and other equipment with larger capacities will be acquired to reduce the number of operational units at a time, thereby reducing the noise generating sources. The equipment systems will include cabins to ensure that the operators and other work persons, in and around the operating equipment, have comfortable workstations. To keep the ambient noise levels within the permissible limits of 75 decibels [dB(A)], appropriate measures would be adopted. Control of Ground Vibration & Fly Rocks/Boulders As only controlled blasting would be involved, there would be no major ground vibrations that would need to be specially regulated. Land Management Land degradation is one of the major adverse impacts of open cast mining in the form of excavated voids and also in the form of waste dumps. The Land Reclamation Plan must be implemented simultaneously with the mining activities. Land Reclamation The land reclamation will be carried out with an emphasis on plantation. At any point in time the area under disturbance shall be kept to a minimum. The disturbed land including the area disturbed due to excavation, dumping, construction of haul roads, ramps, or structures would be fully reclaimed before finally abandoning the mine. Every mined out area will be fully reclaimed within five years of completion of mining operations, in a phased manner. Hydrology, Hydrogeology and Water Quality Water will be pumped from the Phlangkaruh River to meet the water requirements for the mine and its infrastructure. A pump will be installed for meeting the water requirements, both for industrial and domestic usage. No ground water extraction will be needed for the mining

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operation. As such the possibility of lowering the ground water table is expected to be negligible. Surface Water Quality The potential impact on the surface water quality is likely to be due to a higher load of suspended solids. Source of suspended solids would be: Wash off from limestone Dumps; Oil Spillage from Maintenance Workshops; Effluent from Mine Infrastructure; and Impact of Polluted Water.

Ecology and Biodiversity Ecological surveys in the core zone and buffer zone reveal no exceptional features of wildlife interest. The surveys were based on the following seven evaluation criteria. Land use: Size: Diversity: Rarity: Proximity: Potential value: Intrinsic appeal: Extent of modification by man; the mine area is classed as semi-natural agricultural land. The land taken for the proposed mining is not large in the context of the surrounding. A number of different floral species are present, but the higher vertebrate species composition is poor. There are no endemic, rare, or threatened species in the proposed mining area. There are no Reserve forest, Wildlife sanctuary, National Park or Biosphere Reserves within the core or buffer area. An ability to improve the habitat value of the land is foreseen, possibly with active management; after restoration of mining area. More popular species are given a weighted value; however, no exceptional species present in the mine area.

LMMPLs proposals include a number of measures to restore the disturbed area and also improve the habitat. Under the afforestation plan, it is proposed to develop a green belt around the mining area. The green belt will not only act as an aesthetic feature, but will also acts as a pollution sink. The plantation will also ensure stabilisation of surface soils, help in noise reduction, and enhance the overall quality of wildlife habitat. Social Issues and Management The impacts of social related issues at the mine site that must be reflected in mine planning can be placed in the following categories: Resettlement issues; Effects on indigenous people; Loss of livelihood; Induced developmental issues; Effects on aesthetics and landforms; and Noise issues.

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5.2.4

Mine Reclamation and Closure Plan Considerations

Reclamation Objectives and Land Uses The first step in a successful reclamation program is to decide the post reclamation land use. In this case, it is considered appropriate to convert the land under a cover of dense vegetation, keeping in view of the following: The area is rich in vegetation and further plantation would bed consistent with the exiting environment. Trees promote precipitation and prevention of erosion and help to the stabilisation of slopes. They absorb carbon dioxide (CO2) and contribute oxygen, resulting in the purification of the air.

Keeping the above in view, the land reclamation will be carried out with an emphasis on plantation/afforestation. At any point of time, the area under disturbance will be kept to a minimum. This will be achieved by reclaiming the excavated area concurrently with mining activities and reducing the gap between the first damage (mining) and the first repair (reclamation) to the bare minimum. Therefore, the ongoing reclamation work plan through a process of afforestation is likely to ensure stabilisation of the mine area. The plant species have been carefully selected for soil binding and prevention of erosion. Soil Conservation Measures To prevent soil erosion, wash-off of fines, and down-slope damages from failure of rock piles located on steep slopes, the following BMPs will be adopted: Installation of garden drains; Installation of toe drains with suitable baffles; Installation of stone-paved chutes for water control; Installation of check dams; Construction of contour trenches at 2 m intervals; and Construction of retention walls around stockpiles.

Socio-Economic Considerations The proposed mine area covers 100 ha; the space required for the office, workshop, crusher and colony is estimated at 12.55 ha. A corridor 25 40 metre-wide along the proposed conveyor belt (17.3 kilometres) will have 7.2 kilometres of land in a linear distance in Indian Territory. No homes or dwelling units lie in any of the any land required for the above purposes. As such, the project would not result in any displacement of population which would have prompted needs for rehabilitation or compensation. The mine area and the area for crusher and workshop belong to the community of village Nongtrai, for which LMMPL has undertaken a 35-year renewable land lease agreement with the village council. The nearest villages in the area (buffer zone) are: Phlangkaruh (about 1 kilometre to the south), Shella Bazaar (about 2 kilometres to the Southeast) and Pyrkan (1.5 kilometres to the south-Southeast). Compensatory Arrangement for Nongtrai village Community As a compensatory arrangement against the lease of land for mining operations LMMPL will pay to the village council (locally known as Durdar) Rs. 5 per tonne of limestone extracted from mine site for its export to the cement plant in Bangladesh. Based upon of 2.0 million

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tonnes per annum of limestone exported (i.e. 7000 tonnes per day), it is estimated that the village of Durbar will receive Rs. 10 million per annum. Durbar may allocate 30 percent (i.e. Rs 3.0 million per annum) of the income generated from the mine to community-based projects such as education, health, and infrastructure development projects. The remaining 70 percent (i.e. Rs 7.0 million per annum) will be distributed equally among the households of the village, so the villagers will get additional income of Rs. 51,000 per year during the project. Socio-Economics after Closure After the mining period the workforce will be managed in the following way: Management personnel will be transferred to other mining site of the company; The skilled workforce will be transferred in other mining site, or may take voluntary retirement with economic benefits from the company; and The semi-skilled and unskilled workforce will take voluntary retirement with economic benefits from the company.

The buildings and structures, which are constructed during the mining operation period will be retained and handed over to the local community for the community use purpose. These are: Mine offices, which will be converted for Social Infrastructure use and other community purposes; Warehouses, which will be retained for cottage industry use; The diesel generator and associated workshops will be retained for the generation of electricity; and The connecting roads will be retained for public use.

Tailing Dam, Open Pits, Dumps and Stockpiles Tailing Dams & Dumps No wet processing will be used, and therefore no tailings dam is envisaged at any point in the life of the mine. Stockpiles In order to ensure continuous shipment of mined material, a buffer stockpile is planned. In the initial 2-3 years during the developmental and stabilising phase, the stockpile will carry about 250,000 tonnes of limestone and subsequently a pile of about 100,000 tonnes will be maintained. At the end of the life of the mine, all the remaining stocks will be shipped, thus leaving no residual materials at the mine site. Accommodation, Roads, Processing Plant and Ancillary Facilities Open Pits, Accommodation (Colony), Roads, Crusher Plant & Service Areas A suitable vegetative belt, to reduce the migration of pollutants would separate all areas (e.g., pit area, service areas, crusher area). Afforestation would also be implemented along out-ofpit service roads, and all building activities will have an appropriate plantation component. A landscape planner would be contracted to plan and improve the aesthetics of the area.

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Acid Rock Drainage Management As the water coming out at Phlangkaruh is alkaline, no separate provision for management of acid rock drainage is made. As such, no acidic run-off is envisaged on account of mining. Rehabilitation of Disturbed Areas The Restoration plan has been prepared keeping in view the land use changes that will occur due to mining operation in the area. The objectives of the restoration plan include: To reclaim the mined out areas by planting trees which are indigenous in nature; To provide a green belt around the periphery of the mine areas, crushing, loading and unloading points, and conveyor belt corridor, in order to combat dispersal of dust in the adjoining areas; To protect the erosion of the soil; To conserve moisture for increasing groundwater recharge; To restore the ecology of the area; To restore the aesthetic beauty of the locality; and To meet the requirements of fodder, fuel, and timber for the local community;

Selection of Appropriate Species Species have been selected and the restoration program developed in order to ensure a diverse and robust poly-culture forest is developed after mining. Species that are native to the area have been given preference. At the same time the species which have dust tolerance have also been favoured. Growth rates of the species have also been considered as the area needs to be recovered quickly. The area is also full of limestone and will be uneven after completion of mining, plus the base is likely to have residual limestone and as such may be devoid of topsoil. Therefore, species which can survive in such adverse conditions have been selected. Availability of Area for Restoration A total of 5 hectares comprising twin sink holes immediately south west of the mining area having rich flora is proposed to be retained as such, and protected as per original mining plan. Out of the remaining 95 ha of the mining lease, an area of 0.3 ha will be utilised for roads and 1.7 ha will be utilised for stockpiles. Thus the balance area of 93 ha is available for restoration performed in conjunction with the mining operations in a phased manner. Nursery As there is no Forest Department nursery in the area, there is no possibility of obtaining the desired seedlings. Therefore, a nursery is proposed to be established by the Mining Company. Land for the nursery is being already negotiated at three different areas around the proposed project area. An area of 0.3 ha will be sufficient for the required nursery. The area should be as close as possible to the plantation site. Necessary steps will be taken to use good quality seeds and two year old tall seedlings will be planted for afforestation. Regular weeding, cleaning and hoeing of seedlings and application of oil cakes will be carried out to boost the growth.

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Planting Technique The mine area is almost devoid of any topsoil and topsoil will not be available after mining. Furthermore, after mining it is expected that the excavated area will have some limestone blocks and uneven contours. The excavated area left after mining is to be terraced and contour bunding is to be done with the rubbish (stone dust) and boulder particles at the site, preferably at 10m interval. Planting pits of size 45cm x 30cm at the top, 30cm x 30cm at the bottom and 45cm deep are to be dug in a staggered grid, 2 m by 2.5 m apart. No pits will be dug along the contour bund, which will be used for sowing seeds and planting broomstick shrubs and bamboo. As the area is expected to be full of limestone in the bottom strata, the help of a drill rig may be resorted to in some cases, where it is not possible to dig the planting pits manually. The planting pits are to be filled up with good imported earth mixed with cow-dung in a 3:1 proportion. If it is difficult to procure cow-dung, then it may be replaced by leaf compost, which may be prepared at the nursery site. All the plantation and nursery works are to be done under the direct supervision of a senior and experienced forest ranger who may be taken on deputation from the State Forest Department. General forest management criteria are as follows: The forest will be maintained as a protected forest. Collection of fodder and fuel wood by the local people may be allowed at a nominal cost to be decided by the Village Darbar. Only dead, dying and diseased trees may be removed to meet the need of the timber to the local people. Recreational or tourist uses may be permitted under certain terms and conditions and with a levy of certain fees.

Water and Waste Management Management of Natural Water Resources The mitigative measures which will be adopted to minimise the impact of mining on the water resources of this area, are: Blasting activities will be planned to carefully consider the effects on the sinkholes, cracks and fissures existing at the site. Precautions must be taken to avoid face collapse at these cracks and fissures during excavation and drilling activities. Leakproof containers shall be used for storage and transportation of oil or grease to prevent surface water contamination. The floor of oil/grease handling area and workshops will be impervious and any wash-off from those areas will be drained through impervious drains, collected in specially constructed pit and appropriately treated in the Effluent Treatment Plant (ETP), before releasing for final discharge.

To prevent degradation and maintenance of water quality during the rainy season, proposed control measures that will be adopted to check the mine runoff into natural streams are: Construction of garland drains around freshly excavated, dumped areas, haul roads, so that flow of water with loose material can be prevented. The mine water shall be passed through specially constructed catch pits to arrest any loose materials being carried away with the water. 5-12
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Peripheral bunds will be created on the outer edge of abandoned benches before reclamation, so as to minimise any surface runoff by storm water. To prevent formation of gullies in the bench slopes, a water gradient of about 1 in 200 shall be kept at every bench towards inside of the bench. Small check dams will be provided to the natural streams that will be used for convey of rainwater from the garland drains. The belt conveyor will be properly covered and maintained leak proof to prevent spillage during rain. To prevent any pollution of surface or groundwater, the sewage will be properly drained through underground impervious drains to an appropriately designed Sewage Treatment Plant (STP). The surface water bodies around the mine, crushing/loading plant and other infrastructures will be regularly tested and appropriate control measures will be applied in case of any pollutant detected above the prescribed limit.

Estimate and Management of Wastewater/Effluent Generated The mining operations will generate wastewater of approximately 50 m /day, which will be treated in the ETP provided at the mine location and will be reused for spraying on the haul 3 roads and development of green belt. Approximately 40 m /day of domestic wastewater will be generated from the township, which can also be used in plantation after treatment in the STP provided near the township. Management of Solid Waste It can be expected that because this mine is almost devoid of overburden and clay is generally being found only in the crevices the quantity of the clay is expected to be almost negligible. Approximately 0.10 to 0.15 tons/day of sludge from the treatment plant wastewater will be generated from the Activated Sludge Process (ASP). This sludge is anticipated to be rich in nitrogen and phosphorous and can be utilised as manure for the plantation. Solid waste generated from the STP after treating the waste from the residential area will also be dumped in the waste dump area. Monitoring Program Reclamation monitoring is an inherent requirement of mine decommissioning and closure plan and it includes constant inspection of the following: Restoration of land surface (drainage, slope and stability) Re-vegetation (cover, type, vigour) Groundwater (recovery, quality)
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The schedule and duration and parameters to be monitored are as follows:

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Description of Parameters

Schedule of Monitoring

Air Quality (particulates, CO, SO2, NOx) In the vicinity of the mine Within the mine In the surrounding areas covering three locations 1200 apart, close to the nearest habitation One sample over 24 hours continuous duration, once a week throughout the year One sample over 24 hours continuous duration, twice in a week throughout the year One sample over 24 hours continuous duration, twice in a week throughout the year

Water Quality Water stored in the mine area Twice a week for selected parameters (e.g., pH, Total Soluble Solids (TSS), Total Dissolved Solids (TDS), chemical oxygen demand (COD), biochemical oxygen demand (BOD) and oil and grease); detailed analysis should be carried out once in three months. Once in three months

Surface and ground water quality in the vicinity of the mine area for water potability conforming to drinking water standard IS: 10500:1991.

Ambient Noise Level Inventory of flora Soil quality Socio-economic condition of local population physical survey.

Quarterly Once in two years in the project monitoring area Once in year on all reclaimed area and adjoining villages Once in two years.

Monitoring results will form the basis for adoption of appropriate treatment process and up gradation of treatment facilities as required. Ongoing Reclamation Appropriate reclamation work will be taken up during the operational period in a phased manner to reduce the impact of mining. The following reclamation work will be performed: Soil conservation measures; Afforestation program; Reclamation of pile after flushing and/or neutralising (slope and vegetative cover); Solid waste management; Air and sound pollution measures; Management of water quality & wastewater treatment; and

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Social related issues (e.g. compensation, income generation opportunity, influx of migrants, cultural conflict).

Site Configuration at Cessation of Mining At the cessation of mining, a deep depression will be created on the slope of the hill. The overall pit slope (the line joining the crest of all the abandoned benches) will be about 45 degrees. The abandoned bench slopes will need to be battered to a gentler slope. At the end of mining, the entire floor and the crest areas of the bottom most pit will be available for afforestation. Decommissioning and Closure Facilities & Proposed Action A closure plan for the industrial area and the associated infrastructure including the ROM Stockpile area, crusher, workshop, colony and other miscellaneous facilities consists of the unwanted structures being removed and the corresponding area graded, topsoiled and seeded. The remaining buildings will be handed over to Nongtrai /Shella Durbar for community use. Fallback Strategy The entire infrastructure in the industrial area will be retained for further use if LMMPL decides to continue mining activities in adjacent areas and obtains necessary permissions from various government agencies as per the applicable Acts.

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6.0 REFERENCES
Article, unknown author, 2002. Award of Merit: Antamina Tailings Facility. Consulting Engineer, October/November 2002 edition. Canadian

Botts, S. and Cantuarias, F., 2002. Creating Sustainability at Antamina. CIM Presentation, dated March. Botts, S. and Wiber, M., 2001. Environmental, Health and Safety Management at Antamina. Mining Engineering, March 2001 Edition. Botts, S., Caballero, F. and Recharte, J., 2002. Antamina and Huascarn National Park: A Case Study in Mining, Conservation and Sustainable Development. ERM, India, July, 2002. Final Report. Elevated Conveyor Belt, Meghalaya: Social Impact Assessment & Social Impact Mitigation Plan Rehabilitation Action Plan. Gardner, J., 2001. Rehabilitating mines to meet land use objectives: bauxite mining in the jarrah forest of Western Australia. http://www.fao.org/docrep/004/y2795e/y2795e03.htm Guerra, M.Cecilia Gonzales, 2001. Community Relations in Mineral Development Projects. http://www.hzlindia.com/, viewed February 27, 2003. Hinds, P., 1999. Restoration Following Bauxite Mining In Western Australia. http://www.hort.agri.umn.edu/h5015/99papers/hinds.htm, viewed February 27, 2003. http://www.alcoa.com/global/en/environment/goals.asp, viewed February 27, 2003. http://www.alcoa.com/global/en/environment/pdf/bauxite_mine_rehab_standards.pdf, viewed February 27, 2003. (published 1998). http://www.cleveland-cliffs.com/, viewed February 27, 2003. http://www/kudremukhore.com, viewed February 27, 2003. http://www.lafarge.com, viewed February 27, 2003. http://wbln0018.worldbank.org/IFCExt/spiwebsite1.nsf/60577e939c7f61bb85256cd90079a25c /c992a98cb8f3597785256c4d00582035?OpenDocument, viewed February 27, 2003. http://www.indal.com/, viewed February 27, 2003. International Organisation for Standardisation, 1996. ISO 14001: Environmental management systems - Specification with guidance for use; International Organisation for Standardisation, Geneva, Switzerland. International Organisation for Standardisation, 2000. ISO 9001: Quality management systems - Requirements; International Organisation for Standardisation, Geneva, Switzerland. World Bank, 2002. Report. Meghalaya Quarry Mine Reclamation and Closure Plan Report.

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