The site is located in Maanshan City, Anhui Province, on the south bank of the Changjiang River, approximately 300km west from Shanghai. Carbon black feedstock, obtained from petroleum cracking bottoms and coal tar from the steel mill, is transported by truck or railcar and stored in aboveground storage tanks. After blending and preheating, the feedstock is transferred to the reactor where the cracking takes place. The gas stream from the reactor is cooled and collected in a baghouse. Approximately 80 percent of the baghouse gas is sent to a gas combustor for steam generation, and the remaining 20 percent is used to dry the pelletized product before the combusted gases are released to the atmosphere. The carbon black captured in the filter bags is pelletized and packed.
As part of the project, the sponsor will begin commissioning stack testing at the carbon black process and power generation sources releasing air emissions to the atmosphere to demonstrate compliance of the project with the applicable World Bank guidelines.
The company will use feedstock with sulfur content between 2% and 3.5%. The compliance of this operation with SOx emissions will be assessed on the basis of the available feedstock sulfur concentrations. The sponsor is committed to use feedstock with lower sulfur content, as it becomes available. As part of the project, the Company will begin using a wet pelletizing system, which will substantially reduce fugitive dust emissions. The packing which already has air pollution control systems will comply with the applicable World Bank guidelines.
In addition to the current two 10ton/hr each steam boilers and two 1,500 kW each generators, the Company will add a 40 ton/hr steam boiler and a 1,500 kW generator. These units will be operated and controlled to ensure compliance with the applicable World Bank guidelines.
The Company obtains its fresh water from the municipality. The calorific power of the quenching water is reused to heat the feedstock before the water vapor is released to the atmosphere. The Company will build a wastewater treatment plant (WWTP) to treat all liquid effluents generated prior being released to the Changjiang River. The treated liquid effluents will comply with the applicable World Bank guidelines.
The sludge from the WWTP, the collected dust in the control devices, and the domestic wastes will be either incinerated or landfilled. If incinerated, the sponsor will specify the party in charge of burning the materials. If the Company handles this action, the Company will send details of the burning units including air pollution control devices to IFC before the first disbursement. Plastic material will be reused, care will be exercised to ensure that plastics are not incinerated. Discarded filter bags and refractory will be landfilled. Scrap generated as part of minor demolition activity will be sold to be reused in the steel industry.
The fuel oil, as well as the feedstock, is stored in above ground storage tanks. As part of the project, the fuel oil and feedstock storage areas will be upgraded and double containment walls will be installed to minimize the risk of soil contamination from leaks and accidental spills. The contaminated soil around the current unloading system will be removed from the premises and properly disposed. The final disposal measures will be provided to IFC prior to the first disbursement. The feedstock tank farm area will be inspected and controlled based on a Spill Prevention Control plan to be prepared by the Company to prevent accidental spills. The outline of this plan will be submitted prior the first disbursement. The Company does not have PCB transformers on premises.
If the Company decides the engage in Jetty operation by using an existing jetty or building a new one, the Company will submit to IFC an assessment of the environmental impacts and mitigation actions prior the construction of such facility.
The Company will conduct a noise study and submit to IFC the proposed control measures to reduce noise to acceptable levels in the work areas before the first disbursement. The Company will continue to provide, and will require the use of, personal protective equipment (hard hats, dust mask, hearing protection, etc.) as well as specialized equipment (i.e., welding masks, isolation jackets. etc.) for jobs so requiring. The facility is equipped with a medical station and is routinely visited by a local physician.
The Company will ensure that the fire fighting system and portable extinguishers are operational at all times and will perform periodic fire drills. As part of the housekeeping, The Company will ensure that the handrails, roofs, mechanical equipment guards, etc. are in good working condition, and will ensure that the roads and hard surfaces are free from dust emissions.
The Company will have an environmental health and safety manager in charge of overseeing the implementation and compliance of the environmental and health and safety requirements, establish corrective and proactive action programs, train personnel, and monitor performances. The Company will continue training their employees in occupational health and industrial safety issues to ensure that the environmental, health and safety measures are up to date and that the employees are properly trained.
The Company is considering acquiring about 40,000 m2 of land adjacent to the existing plant site. Acquisition of this land would require the economic displacement of about 40 households currently using the land for supplementary income from cultivation and fishing. Negotiations between the Maanshan City Government and project affected people (PAP) have begun. In the event the Company acquires the land and the displacement occurs, the Company will submit to IFC a plan detailing the consultation process with PAP and the entitlements (compensation and other assistance) offered to PAP to restore their income base. This plan will be released locally. In addition, total amount of about RMB 850,000 will be used to improve social and physical infrastructure of the surrounding community. The Company will also monitor implementation of compensation payment and provision of other assistance, and will submit the Annual Monitoring Report to IFC.
Since acquisition of the plant in February 2000, the Company has retrenched the original workforce by 504 employees. Of the 504 employees, 65 workers have retired and are receiving 90 % of the pre-retirement salary in pension, 172 employees have been hired by CSRC and are receiving salaries above their previous salaries, 47 employees will be formed into a company to provide services (such as catering, security, packing and maintenance) to the Company and 220 employees will be paid their base wage by the Maanshan City Government until they are able to begin work at a new bio tech plant being constructed in Maanshan. The Company will provide IFC with information on retrenchment implementation, including payment of pension, compensation, new employment and other assistance in the Annual Monitoring Report. In the event the Company needs to retrench additional employees, the Company will follow local regulation and industry practice, and will inform IFC accordingly.
The Company will submit a copy of their environmental management plan (EMP), which will include a monitoring plan, by project completion.
The Company is committed to inform IFC of any additional initiative that they implement, during the life of the project, and that generates material environmental impacts. Thus the Company will submit the potential impacts and proposed mitigation actions before such initiative is implemented.
By project completion, the Company operations will be in compliance with the Chinese environmental standards as well as the applicable World Bank guidelines. To demonstrate that the project has been implemented in accordance with the applicable guidelines, the Company will conduct an environmental audit by project completion and will submit a copy of the audit to IFC. The Company will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project.
