Environmental & Social Review Summary
Project Number
7975
Company Name
SOCIETE DES MINES DE SYAMA S.A
Date ESRS Disclosed
Feb 5, 2010
Country
Mali
Region
Africa
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 6, 1997
Signed : Oct 31, 1997
Invested : Oct 31, 1997
Sector
Gold
Industry
Metals and Mining
Department
Infra-WBG Dir. Minerals & Metals
Project Description
- 4 - 4/3/97
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Mali-Société des Mines de Syama S.A. (SOMISY)
Region Sub-Saharan Africa
Sector Mining
Project No. 007975
1. The project will be the second investment in the Société des Mines de Syama S.A. (SOMISY) operation. At the time of IFC’s 1991 investment, the SOMISY Mine in southern Mali was owned by BHP Utah International (BHP) and the Government of Mali and was operating an open-pit mine and using conventional carbon-in-leach (CIL) extraction technology to process the oxide ore reserves. IFC’s investment helped finance the construction of a roaster to treat sulfide ore prior to processing in the CIL circuit. The sulfide plant construction was completed in 1994, but has not been fully commissioned due to a number of technical problems. In October 1996, BHP sold its Malian mining interests, including Somisy, to Randgold Resources Ltd. (Randgold). The present shareholders of Somisy are Randgold (65%), the Government of Mali (20%) and IFC (15%). Randgold is a subsidiary of Randgold & Exploration Ltd. of South Africa. Randgold is a investment holding company which focuses exclusively on Sub-Saharan Africa and it has a diversified portfolio of mining properties yet to be developed in over seven countries in Africa.
2. Since October 1996, Randgold have undertaken a detailed review, and developed a strategy for overcoming the project’s technical problems. The capital expenditure program to be financed by IFC’s second investment will address the projects technical difficulties and includes the purchase of new mining and crushing equipment, modifications to the processing plant including a new elution column, construction of a flotation plant, a new conveyor system, modifications to the tailings system, additional electricity generators and additional housing. The modifications to the processing plant will allow medium grade ore to be processed when mined, rather than being stockpiled as at present. This, together with the other components of a mine improvement program, will allow gold production capacity to increase from 190,000 ounces to 200,000 ounces per annum (actual production in 1996 was 141,000 ounces), while at the same time substantially reducing the cost per ounce of gold produced, in Phase 1 of the program. Phase 2, which is planned to immediately follow Phase 1, should allow production to increase further to 270,000 ounces per annum with a further reduction in cost per ounce of gold produced, without additional mining capacity. As part of its Sub-Saharan African strategy, Randgold also wishes to develop a long term relationship with IFC, and has proposed that IFC become a shareholder in Randgold Resources through a swap of a portion of IFC’s existing equity interest in Somisy.
3. As there is no increase in mining capacity, this is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environmental, social, health and safety impacts of the project were analyzed:
(i) Environmental issues include:
· surface water quality and wastewater/effluents management;
· air emissions, including dust control;
tailings disposal and sediment control;
· water supply and hydrological impacts;
· storage and handling of chemicals;
· solid waste management;
· rehabilitation planning and land reclamation.
(ii) Occupational health and safety (HS) issues include:
· general worker safety;
· health, training and awareness.
(iii) Socio-economic concern includes:
· public consultation and company disclosure policy;
· management of the interaction between the mine personnel, government and local population.
The following is a summary of findings of IFC’s environmental review of this proposed investment.
4. An Environmental Assessment document was submitted in 1992. An Environmental Audit of the Syama gold mine and ore processing plant, prepared by an independent consultant, was submitted to IFC in March 1997 as a requirement of IFC’s second investment in SOMISY. The audit includes a comprehensive project description, a summary of the natural environment baseline information, an assessment of the policy, legal and administrative framework, a review of the environmental impacts of the proposed improvements/changes linked with the capital expenditure program and a discussion of the audit results including detailed recommendations. As a prospective new shareholder in Randgold which is an investment company, IFC also carried out a review of its Environmental Policies and Management System.
5. The existing Somisy operation meets World Bank guidelines, and many of the proposed improvements will address matters that have been identified by the new owners in their audit of the environmental performance of the existing facilities. Previous monitoring reports of the existing operation from BHP identified environmental issues requiring ongoing attention. IFC expects the improvements by Randgold will address these matters as noted below.
· Air Emission issues are those associated with the current particulate and dust generation, and SO2 emissions from the roasting plant. There has been some design problems with the existing ESP’s and BHP and Randgold have both been working with the designer to fix the problem. The project proposes improvements to the crushing system and conveyors and upgrades of the ESPs, which will successfully mitigate SO2 emissions and the particulate/dust problem. A dust monitoring program will be initiated and Randgold will continue to monitor ambient levels of SO2, and will prepare a remedial plan should the monitoring show additional measures are required.
Liquid effluent and tailings disposal issues involve some seepage detected at the base of the existing embankment, and the detection of low levels of metallic cyanides complexes in groundwaters and surface waters below the pond, the levels of which are still within World Bank guidelines. Cyanidation wastes treatment will be closely monitored prior to disposal in the tailings pond. Randgold proposes to make improvements to the tailings system including the refurbishing of the existing geofabric drain, as well as the installation of a concrete sump and pump and monitor safety and stability of the dam, and will ensure proper management of the cyanide wastes.
· Solid Waste and Water Management involve improvements to fuel and chemical storage containment areas and surface drainage systems. This will mitigate against the effects from spillage and contaminated run-off. Domestic waste are disposed in a pit, industrial waste is placed in a pit on top of one of the waste rocks dumps, all covered up regularly. Two separated septic tanks service the plant area and the compound.
· Reclamation: Existing oxide mined pits have not yet been rehabilitated. Each of the satellite pits, as well as waste stockpiles, will be the subject of a detailed reclamation plan followed by the actual rehabilitation program involving earthwork and related activities.
6. Occupational health and safety procedures are well implemented. The mine safety program and procedures appear to be very effective as evidenced by the low level of recorded incidents. Workers health issues are properly done through medical examination, proper drinking water supply and adequate medical services. Workers safety includes protective equipment, emergency first aid kits, warning and information signs, and continuous training and awareness. The company maintains fire fighting equipment at all operations. Randgold will continue and expand training; employees will be drilled in emergency response and evacuation procedures. As before, safety audits will be conducted on a regular basis.
7. On the social aspects, the mine continues to provide a large amount of the foreign exchange revenue and income for the national and regional economy. The area surrounding the mine has benefited from improved roads, clinics, schools, houses and employment opportunities. Randgold is currently investigating the establishment of a trust fund to ensure that the surrounding community receives additional tangible benefits from the mine development. In addition, Randgold proposes to conduct regular public consultation with local communities and regional authorities as well as NGO’s and individuals as part of its relationship development on an ongoing basis.
8. Randgold Resources itself operates its properties in an environmentally responsible manner. The company has a clear Environmental Management Mission Statement, committing to the integration of environmental management into all aspects and stages of their business activities. A comprehensive Environmental Management Guidelines for prospecting was developed, addressing all relevant environmental issues. In the near future for environmental and social matters, the existing staff will be augmented and line responsibilities clarified, both at the Syama mine and at corporate level.
9. Randgold will implement the following recommendations:
· target and address the main problem areas for dust generation, including a monitoring program;
· assess particulate and SO² emissions from the stack of the roaster once upgrading work is over;
· propose remediation work to improve current safety and stability of the tailings dam facility;
· prepare a detailed reclamation/ rehabilitation plan, and implement it for the satellite pits;
· improve communication with stakeholders, using public consultation and public disclosure;
· define line function responsibility for on-site environmental and social issues, and appoint an corporate environmental coordinator/ supervisor at Randgold Resources level.
10. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by SOMISY and Randgold Resources and by conducting periodic supervision.
11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that SOMISY and Randgold Resources proposed project and operations are in compliance with World Bank environmental, health and safety policies and guidelines and host country requirements.
P:\CTEEU\SOMISY.ERS
April 7, 1997 11:48 AM
International Finance Corporation
A Member of the World Bank Group
International Finance Corporation
A Member of the World Bank Group
Environmental Review Summary (ERS)
Project Name Mali-Société des Mines de Syama S.A. (SOMISY)
Region Sub-Saharan Africa
Sector Mining
Project No. 007975
1. The project will be the second investment in the Société des Mines de Syama S.A. (SOMISY) operation. At the time of IFC’s 1991 investment, the SOMISY Mine in southern Mali was owned by BHP Utah International (BHP) and the Government of Mali and was operating an open-pit mine and using conventional carbon-in-leach (CIL) extraction technology to process the oxide ore reserves. IFC’s investment helped finance the construction of a roaster to treat sulfide ore prior to processing in the CIL circuit. The sulfide plant construction was completed in 1994, but has not been fully commissioned due to a number of technical problems. In October 1996, BHP sold its Malian mining interests, including Somisy, to Randgold Resources Ltd. (Randgold). The present shareholders of Somisy are Randgold (65%), the Government of Mali (20%) and IFC (15%). Randgold is a subsidiary of Randgold & Exploration Ltd. of South Africa. Randgold is a investment holding company which focuses exclusively on Sub-Saharan Africa and it has a diversified portfolio of mining properties yet to be developed in over seven countries in Africa.
2. Since October 1996, Randgold have undertaken a detailed review, and developed a strategy for overcoming the project’s technical problems. The capital expenditure program to be financed by IFC’s second investment will address the projects technical difficulties and includes the purchase of new mining and crushing equipment, modifications to the processing plant including a new elution column, construction of a flotation plant, a new conveyor system, modifications to the tailings system, additional electricity generators and additional housing. The modifications to the processing plant will allow medium grade ore to be processed when mined, rather than being stockpiled as at present. This, together with the other components of a mine improvement program, will allow gold production capacity to increase from 190,000 ounces to 200,000 ounces per annum (actual production in 1996 was 141,000 ounces), while at the same time substantially reducing the cost per ounce of gold produced, in Phase 1 of the program. Phase 2, which is planned to immediately follow Phase 1, should allow production to increase further to 270,000 ounces per annum with a further reduction in cost per ounce of gold produced, without additional mining capacity. As part of its Sub-Saharan African strategy, Randgold also wishes to develop a long term relationship with IFC, and has proposed that IFC become a shareholder in Randgold Resources through a swap of a portion of IFC’s existing equity interest in Somisy.
3. As there is no increase in mining capacity, this is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environmental, social, health and safety impacts of the project were analyzed:
(i) Environmental issues include:
· surface water quality and wastewater/effluents management;
· air emissions, including dust control;
tailings disposal and sediment control;
· water supply and hydrological impacts;
· storage and handling of chemicals;
· solid waste management;
· rehabilitation planning and land reclamation.
(ii) Occupational health and safety (HS) issues include:
· general worker safety;
· health, training and awareness.
(iii) Socio-economic concern includes:
· public consultation and company disclosure policy;
· management of the interaction between the mine personnel, government and local population.
The following is a summary of findings of IFC’s environmental review of this proposed investment.
4. An Environmental Assessment document was submitted in 1992. An Environmental Audit of the Syama gold mine and ore processing plant, prepared by an independent consultant, was submitted to IFC in March 1997 as a requirement of IFC’s second investment in SOMISY. The audit includes a comprehensive project description, a summary of the natural environment baseline information, an assessment of the policy, legal and administrative framework, a review of the environmental impacts of the proposed improvements/changes linked with the capital expenditure program and a discussion of the audit results including detailed recommendations. As a prospective new shareholder in Randgold which is an investment company, IFC also carried out a review of its Environmental Policies and Management System.
5. The existing Somisy operation meets World Bank guidelines, and many of the proposed improvements will address matters that have been identified by the new owners in their audit of the environmental performance of the existing facilities. Previous monitoring reports of the existing operation from BHP identified environmental issues requiring ongoing attention. IFC expects the improvements by Randgold will address these matters as noted below.
· Air Emission issues are those associated with the current particulate and dust generation, and SO2 emissions from the roasting plant. There has been some design problems with the existing ESP’s and BHP and Randgold have both been working with the designer to fix the problem. The project proposes improvements to the crushing system and conveyors and upgrades of the ESPs, which will successfully mitigate SO2 emissions and the particulate/dust problem. A dust monitoring program will be initiated and Randgold will continue to monitor ambient levels of SO2, and will prepare a remedial plan should the monitoring show additional measures are required.
Liquid effluent and tailings disposal issues involve some seepage detected at the base of the existing embankment, and the detection of low levels of metallic cyanides complexes in groundwaters and surface waters below the pond, the levels of which are still within World Bank guidelines. Cyanidation wastes treatment will be closely monitored prior to disposal in the tailings pond. Randgold proposes to make improvements to the tailings system including the refurbishing of the existing geofabric drain, as well as the installation of a concrete sump and pump and monitor safety and stability of the dam, and will ensure proper management of the cyanide wastes.
· Solid Waste and Water Management involve improvements to fuel and chemical storage containment areas and surface drainage systems. This will mitigate against the effects from spillage and contaminated run-off. Domestic waste are disposed in a pit, industrial waste is placed in a pit on top of one of the waste rocks dumps, all covered up regularly. Two separated septic tanks service the plant area and the compound.
· Reclamation: Existing oxide mined pits have not yet been rehabilitated. Each of the satellite pits, as well as waste stockpiles, will be the subject of a detailed reclamation plan followed by the actual rehabilitation program involving earthwork and related activities.
6. Occupational health and safety procedures are well implemented. The mine safety program and procedures appear to be very effective as evidenced by the low level of recorded incidents. Workers health issues are properly done through medical examination, proper drinking water supply and adequate medical services. Workers safety includes protective equipment, emergency first aid kits, warning and information signs, and continuous training and awareness. The company maintains fire fighting equipment at all operations. Randgold will continue and expand training; employees will be drilled in emergency response and evacuation procedures. As before, safety audits will be conducted on a regular basis.
7. On the social aspects, the mine continues to provide a large amount of the foreign exchange revenue and income for the national and regional economy. The area surrounding the mine has benefited from improved roads, clinics, schools, houses and employment opportunities. Randgold is currently investigating the establishment of a trust fund to ensure that the surrounding community receives additional tangible benefits from the mine development. In addition, Randgold proposes to conduct regular public consultation with local communities and regional authorities as well as NGO’s and individuals as part of its relationship development on an ongoing basis.
8. Randgold Resources itself operates its properties in an environmentally responsible manner. The company has a clear Environmental Management Mission Statement, committing to the integration of environmental management into all aspects and stages of their business activities. A comprehensive Environmental Management Guidelines for prospecting was developed, addressing all relevant environmental issues. In the near future for environmental and social matters, the existing staff will be augmented and line responsibilities clarified, both at the Syama mine and at corporate level.
9. Randgold will implement the following recommendations:
· target and address the main problem areas for dust generation, including a monitoring program;
· assess particulate and SO² emissions from the stack of the roaster once upgrading work is over;
· propose remediation work to improve current safety and stability of the tailings dam facility;
· prepare a detailed reclamation/ rehabilitation plan, and implement it for the satellite pits;
· improve communication with stakeholders, using public consultation and public disclosure;
· define line function responsibility for on-site environmental and social issues, and appoint an corporate environmental coordinator/ supervisor at Randgold Resources level.
10. IFC will monitor ongoing compliance with World Bank environmental, health and safety policies and guidelines during the lifetime of the project by evaluating reports submitted annually to IFC by SOMISY and Randgold Resources and by conducting periodic supervision.
11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that SOMISY and Randgold Resources proposed project and operations are in compliance with World Bank environmental, health and safety policies and guidelines and host country requirements.
P:\CTEEU\SOMISY.ERS
April 7, 1997 11:48 AM
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
