GAUTENG PROVINCJEAfIRICULTURE MID RURAL DIVELOPOSPITRWUBLIC OF SOUTH AFRICA

UMNOTHO HOUSE, 56 ELOFF STREET, MARSHALLTOWNPO BOX 8769, JOHANNESBURG, 2000

TEL: 011 240 2500FAX: 011 240 2700

Reference: Gfe-MIR Alloys and Minerals SA (Pty) LtdEnquiries: Thabang Mokoenai Marcie BelloTelephone: 011 999 3316/ 011 240 3137Email: Thabang.Mokoenanekurhuleni.gov.za/

Marcie.bello©gauteng.gov.za

BY HAND

Mr. Russel SynmonsThe Managing DirectorGfe-MIR Alloys and Minerals SA (Pty) Ltd2 Atomic StreetVulcaniaBrakpan1554

Dear Sir

NOTICE O P INTENTION T O ISSUE A -COMPLIANCE NOTICE ( " P R E -COMPLIANCENOTICE") I N TERMS O F SECTION 3 1 L O F T H E NATIONAL ENVIRONMENTALMANAGEMENT ACT, 1998 (ACT 107 OF 1998) ("NEMA") READ WITH SECTION 5 OF THENATIONAL ENVIRONMENTAL MANAGEMENT: WASTE ACT (ACT 59 OF 2008) ("NEMWA")AND SECTION 5 OF THE NATIONAL ENVIRONMENTAL MANAGEMENT AIR QUALITYACT 2 0 0 4 TACT 3 9 O F 20041 ("NEMAQA") I N RESPECT O F T H E UNLAWFULCOMMENCEMENT AND OPERATION OF ALUMINIUM AND MAGANESE PLANTS AT 2ATOMIC STREET, VULCANIA, BRAKPAN WITHIN T H E C I T Y O F EKURHULENIMETROPOLITAN MUNICIPALITY, GAUTENG PROVINCE ("THE SITE")

1. D E C I S I O N

I, Abimbola Olowa, in my capacity as a Grade 1 Environmental Management Inspector ("EMI"),hereby give you written notice of my intention to issue you, Gfe-MIR Alloys and Minerals SA(Pty) Ltd duly represented by Mr. Russel Synmons as the Managing Director, with a ComplianceNotice in terms of Section 31L of the NEMA read with Sections 5 of the NEMWA and NEMAQAand Regulation 8(2) o f the Regulations relating to the Qualification Criteria, Training andIdentification of , and forms t o b e used by, Environmental Management Inspectors and

Environmental Mineral Resource Inspectors (Government Notice R480 of 31 May 2017) issuedin terms of the NEMA.

2. INTRODUCTION

2.1 T h e Compliance Notice that I intend to issue relates to your non-compliance with theprovisions of the Government Notice (GN) 332 of 02 May 2014 in terms of theNEMWA for waste management activities ("Listed Activities") and Government Notice(GN) 893 of 22 November 2013 in-terms of NEMAQA for activities that have, or arelikely to have a detrimental effect on the environment.

2.2 I have reasonable grounds for believing that you have commenced with a wastemanagement activity listed in terms of section 19(1) of the NEMWA without a WasteManagement Licence ("WML") as required in terms of section 20 read with section 67(1) (a) of the NEMWA and an air quality activity listed in terms of Section 21 of theNEMAQA without an Atmospheric Emission Licence ("AEU) in terms of Section (22)read with section 51 (1)(a) of the NEMAQA.

2.3 I n reaching this decision I have considered the findings of the site inspection that wasconducted by the Environmental Management Inspectors (EMIs) from the City ofEkurhuleni ("COE") on 07 December 2017 and the joint-inspection undertaken byEMIs from both the Gauteng Department Agriculture and Rural Development("GDARD") and the COE on 13 February 2018.

3. DETAILS OF CONDUCT CONSTITUTING NON-COMPLIANCE

3.1 Af ter Mr Mike Cunningham (Project Manager) concluded giving a brief background ofthe processes undertaken at the facility, Mr Johannes Scharneck (SHEQ) explainedthat all waste and effluent processes are recycled back into the process except for thegeneral/office waste.

3.2 M r Cunningham further informed the EMIs that the company has contracted anEnvironmental Consulting f i r m t o undertake t h e relevant environmentalauthorization/license application processes with the relevant competent authorities toobtain the necessary licenses and authorizations for operations in the facility.

3.3 The main activities undertaken on site include Aluminum recycling, briquetting andManganese recovery processes.

3.4 Huge volumes of Aluminum waste cans are stored in an open area.

3.5 There is also screening, washing, shredding, and heating of Aluminum waste cans.

3.6 A 10 ton gas burner is used to burn the Aluminum cans to remove the paint on thecans.

Notice to issue a compliance notice to Gfe-MIR Alloys and Minerals SA (Pty) LtdPage 2 of 5

3.7 T h e product is sent into a mechanical mill via a conveyor belt where it is chopped intoAluminum granules (final Product) which are bagged and stored in an enclosed area.

Listing Notice in terms of GN 332 of 2014of t h e N a t i o n a l E n v i r o n m e n t a lManagement Waste Act, (No.59 o f 2008)"(NEMWA)"

Finding of Non-Compliance

Categ.ary A: Recycling_or recovery of waste Conducting a n aluminium c a n recycling(2) the sorting, shredding, grinding, crushing,screening o r bailing o f general waste a t afacility that has an operation area in excess of

activity without a WML.

1000m2.Recycling of manganese from slag, using a

Category B: Reuse, Recycling or Recovery of furnace t o me l t t he manganese i n t h ewaste Alumino-Thermic Plant t o produce pure(5) the recovery of waste including refining,utilisation, o r c o -processing o f waste i nexcess of 10 tons but less than 100 tons of

manganese.

3.8 T h e sludge from the recycled waste water is re-used in briquette making process inaddition to other input material in another plant within the facility.

3.9 T h e other plant on site i s the Aluminothermic plant where pure Manganese i sproduced from Manganese-oxide Industrial slag.

3.10 There is no emission monitoring undertaken in the Aluminum recycling, briquetting andAlumino-thermic plants.

3.11 Two bag-houses were installed at both Aluminum recycling and Alumino-Thermicplants.

3.12 There is no dust extraction system available in the crushing plant.

4. PROHIBITED CONDUCT:

4.1. Section 20 of the NEMWA provides that no person may commence, undertake orconduct a waste management activity, except in accordance with -(a) The requirements or standards determined in terms o f section 19(3) for thatactivity; or(b) A waste management licence issued in respect of the activity, i f a licence isrequired.

4.2. Section 22 of the NEMAQA provides that no person may without a provisionalatmospheric emission licence or an atmospheric emission licence conduct an activity-(a) Listed on the national list anywhere in the Republic; or(b) Listed on the list applicable in a province anywhere in that province

The activities conducted on the site and for which a WML and an AEL and required areidentified in Government Notices 332 of 2014 and 893 of 2013 as follows:

Notice to issue a compliance notice to Gfe-M1R Alloys and Minerals SA (Pty) LtdPage 3 of 5

5. I n accordance with Regulation 8(2) of the Regulations relating to the Qualification Criteria,Training and Identification of, and forms to be used by, Environmental ManagementInspectors and Environmental Mineral Resource Inspectors (Government Notice R480 of31 May 2017) issued in terms of the NEMA, I hereby afford you, Gfe-MIR Alloys andMinerals SA (Pty) Ltd duly represented by Mr. Russel Synmons as the Managing Directoran opportunity to make representations to -me in writing within 14 __(fourteen) days ofreceipt of this pre-compliance notice, if you Gfe-MIR Alloys and Minerals SA (Pty) Ltd dulyrepresented by Mr. Synmons as the Managing Director, believe there are any compellingand substantial reasons for me not to exercise my powers in terms of Section 31L of theNEMA and issue a Compliance Notice which will require you, Gfe-MIR Alloys and MineralsSA (Pty) Ltd duly represented by Mr. Synmons, to, inter alia take the following steps:

general waste per day on in excess of 500kgless than 1 ton of hazardous waste per day,excluding recovery that takes place as anintegral part o f the internal manufacturingprocess within the same premises.

Category C: The Norms and standard for thestorage of waste

(1) S t o r a g e of general waste at afacility that has the capacity to store inexcess of 100m3 o f general waste atany one time, excluding the storage ofwaste in a lagoon or temporary storageof such waste.

The Storage of Aluminium cans and otherwaste on site

Listing Notice in tsrms of GN 893 of 201-3of t h e N e t i o n e t E n v i r o n m e n t a l

Finding of Non-Compliance

Management A i r Quality Act, (No.39 o f2004) "(NEMAQA)"Sub-category 4.11: Agglomeration operation Operation of a briquetting plantThe production o f pellets, briquettes, usingpresses, inclined discs or rotating drums.

Sub-category 4.20: Slag processes Operating a metal separation plant whereslag is removed from metal

Sub-category 4.21: Metal Recovery Conducting a n aluminium c a n recyclingThe Recovery o f metal f rom a n y scrap process by burning off the paint form thematerial by the application of heat. can.

Recycling of manganese from slag, using afurnace to melt the manganese.

a) W i t h i n twenty-four (24) hours, cease with al l activities on site relating to theNEMWA section 19 and NEMAQA Section 21 listed activities until such time that allapplicable environmental authorisations are granted by the competent authorities;and

Notice to issue a compliance notice to Gfe-MIR Alloys and Minerals SA (Pty) LtdPage 4 of 5

b) Within thirty (30) days, register and comply with the National Waste Management:Norms and Standards for the storage of waste at the facility.

6. FAILURE TO COMPLY

Should you fall to comply with this pre-Compliance Notice, a Compliance Notice in terms ofsection 31L of the NEMA will be issued to you, Gfe-MIR Alloys and Minerals SA (Pty) Ltd dulyrepresented by Mr. Synmons as the Managing Director. Kindly note that failure to comply witha Compliance Notice issued in terms of section 31L of the NEMA is an offence in terms section49A(1)(a), (d), (e) (f) and (k) of the NEMA.

Upon conviction for such an offence in terms of section 49B (1), a person is liable to a fine notexceeding R10 million or to imprisonment for a period not exceeding 10 years, or to both suchfine or such imprisonment. In addition, a person convicted in terms of section 49B (2) is liableto a fine not exceeding R5 million or to imprisonment for a period not exceeding 5 years, and inthe case of a second or subsequent conviction to a fine not exceeding_ R10 million or toimprisonmit for a period not exceeding not exceeding 10 years, and in both instances tosuch fine and such imprisonment.

Although commencement of a listed activity without the required authorisation is illegalin terms of section 24F(1) of the NEMA, you are entitled to submit an application interms of Section 24G for the consequences of unlawful commencement of activity.

Also, note that environmental management inspectors from this Department are given powersin terms of the NEMA to investigate whether or not you have complied with a ComplianceNotice issued to you, and to exercise certain powers in order to enforce any contraventionthereof, including but not limited to the power to seize items used in the commission of anoffence as well as the power of arrest and the Department will be entitled to take the requiredsteps on your behalf and to claim from you any costs incurred in doing so.

7. CONCLUSION

If you are unclear about any aspect of this pre-Compliance Notice, kindly contact the officialsindicated for enquiries in writing as soon as possible.

Signed on this —14.1‘ day of i l l 61-r 2018, at I c k 6 - ̀71r1-e 1°1-4-1-

Ms_Abimbola °IowaGRADE 1: ENVIRONMENTAL MANAGEMENT INSPECTOR

ACKNOWLEDGEMENT OF RECEIPT

Received by Mr/Ms

On behalf of the company

On this

Signature:

day of 2 0 1 8 , at

Notice to issue a compliance notice to Gfe-MIR Alloys and Minerals SA (Pty) LtdPage 5 of 5

Department of Agriculture and Rural Development, 56 Eloff Street, Umnotho House, Johannesburg, 2001. PO Box X 8769, Johannesburg, 2000 Tel: (011) 240-2500. Webste: www.gdard.gpg.gov.za

S24G/03/18-19/0430 - 0433

Enquiries: Maryjane Ramahlodi

Chief Directorate: Compliance and Enforcement

0112402030

maryjane.ramahlodi@gauteng.gov.za

BY ELECTRONIC MAIL

Mr Danie Brummer Savannah Environmental 5 Woodlands Drive Office Park Woodlands Drive WOODMEAD 2191

Dear Mr Brummer

RE: REQUEST FOR THE EXTENSION OF TIME PROJECT REFERENCE S24G/03/18-19/0430; S24G/03/18-19/0431; S24G/03/18-19/0432 AND S24G/03/18-19/0433 The abovementioned application for rectification in terms of section 24G of the National

Environmental Management Act 107 of 1998 (“NEMA”) as amended, the Directive issued by the

Department in January 2019 and your letter dated 4 April 2019 requesting an extension of time

in which to submit the Environmental Impact Report refer.

The Department has reviewed your request for extension and hereby grants an extension of time

for the submission of the Environmental Impact Report to 31 July 2019. The report must be

submitted to the Section 24G offices of this Department on the 20th Floor, Umnotho House, 56

Eloff Street, Johannesburg.

Please be advised that failure to submit the requested information within the stipulated extended

timeframe may result in closure of your application. Should it be necessary to close your Section

24G application, the Department will make a decision if the matter should be referred for criminal

proceedings.

Also, note that the Department places on record that it exonerates itself from any liability that is related to any unforeseen activities or incidents that may occur as a result of the illegal development or activity.

Should there be any query regarding the content of this letter, please contact the relevant official

at the number provided above.

Yours faithfully

Ms Abimbola Olowa

GRADE 1 EMI / CHIEF DIRECTOR: COMPLIANCE AND ENFORCEMENT

DATE: 4 April 2019

Department of Agriculture and Rural Development, 56 Eloff Street, Umnotho House, Johannesburg, 2001. PO Box X 8769, Johannesburg, 2000 Tel: (011) 240-2500. Webste: www.gdard.gpg.gov.za

S24G/03/18-19/0430

S24G/03/18-19/0433

Enquiries: Maryjane Ramahlodi

Chief Directorate: Compliance and Enforcement

0112402030

maryjane.ramahlodi@gauteng.gov.za

BY ELECTRONIC MAIL: danie@savannahsa.com

Danie Brummer Principal Environmental Consultant Savannah Environmental (Pty) Ltd

Dear Mr Brummer

RE: REQUEST FOR THE EXTENSION OF TIME TO SUBMIT FINAL REPORT FOR THE PROJECT REFERENCE NUMBER S24G/03/18-19/0430 - S24G/03/18-19/0433

The abovementioned application for rectification in terms of section 24G of the National

Environmental Management Act 107 of 1998 (“NEMA”) as amended, the initial request for

extension of time for the submission of the final Environmental Impact Report, the response dated

4 April 2019 granting the extension to 31 July 2019 and your electronic mail received on 10 June

2019 refer.

Having considered the contents of your email, in particular, the challenge of not being able to

undertake the Public Participation during the school holiday, the Department hereby grants you a

further extension for the submission of the final Environmental Impact Report to 15 September

2019. The Public Participation should be undertaken from 10 July 2019 – 12 August 2019 after

which the report must be submitted to the Section 24G offices of this Department on the 20th

Floor, Umnotho House, 56 Eloff Street, Johannesburg.

Please be advised that failure to submit the requested information within the stipulated extended

timeframe may result in closure of your application. Should it be necessary to close your Section

24G application, the Department will make a decision if the matter should be referred for criminal

proceedings.

Also note that the Department places on record that it exonerates itself from any liability that is related to any unforeseen activities or incidents that may occur as a result of the illegal development or activity.

Should there be any query regarding the content of this letter, please contact the relevant official

at the number provided above.

Yours faithfully

Ms Abimbola Olowa

GRADE 1 EMI / CHIEF DIRECTOR: COMPLIANCE AND ENFORCEMENT

DATE: 11 June 2019