PROJECT

Projects

Environmental & Social Review Summary

Project Number

8942

Company Name

MINETTI JUAN GUSTAVO

Date ESRS Disclosed

Feb 5, 2010

Country

Argentina

Region

Latin America and the Caribbean

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Sep 8, 1998
Signed : Apr 7, 1999
Invested : Apr 13, 1999

Sector

Cement

Industry

Manufacturing

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

4

Environmental Review Summary (ERS)

Project Name ARGENTINA: Minetti

Region Latin America and the Caribbean

Sector CEMENT

Project No. 008942
February 26, 1999

1. Minetti is a major cement producer in the Argentinean market. This project involves (i) the construction of a clinker grinding plant in Campana, Province of Buenos Aires, Argentina, (ii) technical and environmental upgrade of its plants throughout Argentina (iii) working capital for the Company and (iv) restructuring of short-term debt.

2. 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 review of this project consisted of appraising technical and environmental information submitted by the project sponsor and technical and environmental appraisal. The following potential environmental, health and safety impacts of the project were analyzed:
· site location and land use;
· environmental performance of the existing operations;
· air emissions;
· liquid effluents;
· hazardous waste management;
· quarry reclamation;
· employee health and safety including exposure to noise and dust; and
· contingency and emergency response plans.

The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable local regulations and World Bank policies and guidelines. The information provided indicating how these potential impacts will be addressed in the development of the project includes a Corrective Action Plan (CAP) (See Table-1) and is summarized in the paragraphs that follow.

3. Minetti has dry process cement operations at four different sites in Argentina: two of the plants, Panqueua and Capdeville are located in the Province of Mendoza; two additional plants, the Malagueno and Yocsina plants are located in the Province of Cordoba; the Puesto Viejo plant is located in Puesto Viejo in the Province of Jujuy; and the Campana grinding plant, currently under construction, is located in Campana in the Province of Buenos Aires.

4. The Panqueua facility currently operates a 600 tpd kiln that will be shut down in 1999. The Capdeville plant, which operates one 2,200 tpd capacity kiln, will be emitting less than 150 mg/Nm3 particulate emissions (old World Bank guideline which will apply to this kiln) by the year 2000. The Malagueno plant has two kilns with capacities of 1,500 tpd and 3,000 tpd, respectively. The 3,000 tpd kiln currently complies with the 50 mg dust/Nm3 World Bank guideline. The smaller 1,500 tpd kiln is no longer in operation. However, it will be used as a back-up and will operate a maximum of one-month every year. If this kiln becomes fully operational in the future, it will have to comply with World Bank guidelines.

5. The Yocsina plant has two kilns. Kiln No. 1 with a capacity of 600 tpd will be dismantled by December 2000. While, kiln No. 2 with a capacity of 1,800 tpd will be upgraded to emit less than 50 mg dust/Nm3 by 2001. The Puesto Viejo kiln has a capacity of 2,000 tpd and will be renovated to ensure dust emissions below 150 mg/Nm3 (old World Bank guideline which will apply to this kiln) by the year 2000. The Campana plant, which is expected to be in operation by early 2000, will be emitting less than the World Bank guideline of 50 mg dust/Nm3.

6. With the exception of the Capdeville plant which uses coke, the rest of the plants use natural gas, Juan Minetti will install dust collectors in the uncontrolled transfer points of all plants, and with the upgrading of the packing and dispatch facilities the workplace air quality is going to be improved to comply with the applicable World Bank guidelines. The SOx and NOx emissions will be also controlled to comply with the World Bank guidelines. The applicable World Bank stack SOx emission guideline is 400 mg/Nm3 and the applicable World Bank NOx ambient air concentration at property boundary is 150 ug/m3 (maximum 24 hr average.)

7. The dust collected in all air pollution control devices will continue to be recirculated into the process. The domestic residues will continue to be collected and properly disposed off following local requirements.

8. The existing plants obtain their water supply from their own pumping stations from borehole wells. The Campana facility will also obtain its water from wells. Sanitary sewage from the Malagueno and Puesto Viejo plants is treated at their own wastewater treatment plants prior to being discharged. The Campana plant will have its own wastewater treatment plant on-site as well. The remaining plants, Yocsina, Capdeville, and Panqueua treat their effluents in anaerobic lagoons. The liquid effluents will comply with World Bank guidelines. If needed, additional controls will be installed to achieve compliance.



9. Juan Minetti has began an alternative fuel use program by which industrial wastes are fed to the kiln because of their calorific power and the high destruction efficiency of these materials in the kiln. The program is being implemented at the Yocsina plant in Cordoba; will be implemented in Capdeville by the year 1999, in Malagueno by the year 2000 or earlier, and in Puesto Viejo by the year 2001.

10. As part of the alternative fuel program, Juan Minetti has installed a very sophisticated physical-chemical laboratory at the Yocsina plant to perform all required analyses. It will monitor not only the quality of the final product but also the emissions to the atmosphere, the liquid effluent concentrations, and the leachate concentrations of the various compounds in the clinker. In addition, Minetti is in the process of implementing the ISO 14000 procedures which will allow for better handling of the alternative fuel program.

11. To complement the current alternative fuel program procedures, IFC has required Juan Minetti: (i) to perform an external hazardous materials handling audit for the Yocsina plant which ought to include recommendations, structure of the hazardous materials handling program, implementation schedule, and associated costs; and (ii) to develop a corporate hazardous material handling program including organizational structure to handle this program, qualifications of the team in-charge of handling this program, employee training programs and contingency and emergency response plans.

12. The external hazardous materials handling audit for the Yocsina plant ought to be submitted to IFC for clearance prior to the B loan disbursement. The corporate hazardous material handling program satisfactory to IFC will be submitted by June 1999. Juan Minetti commits to initiate the alternative fuel programs at the Capdeville, Malagueno, and Puesto Viejo plants only after the corporate hazardous material handling program has been approved by IFC.

13. As part of the operations, Juan Minetti has several lime quarries associated to the various kiln production operations. In general, the limestone is transported to the plants either by truck or by belt conveyors. The area of the Cerro de la Cal quarry, which was associated to the Panqueua plant will commence its reclamation program in 1999. The reclamation program for the Capdeville quarry will be established and submitted to IFC in the year 2000. Juan Minetti will perform geological and exploitation assessments for the Yocsina and Malagueno associated quarries, prior to developing the quarries’ reclamation program which will be submitted to IFC as soon it is completed. The quarry associated to the Puesto Viejo plant has already a very successful reclamation program in place which is being implemented along with the exploitation. Juan Minetti is committed to rehabilitate all its quarries to comply with the World Bank guidelines.

14. To reduce noise emissions, the equipment at all plants is regularly maintained and if necessary, additional measures will be taken to comply with the World Bank guidelines.

15. Juan Minetti has created Occupational Health and Environmental Departments at each plant. Personal protective equipment are provided to and required to be used by the employees. Hard hats are provided for all personnel, and dust masks and hearing protection are provided for personnel working in areas with high dust and noise levels, respectively. There are very well equipped medical facilities at each one of the plants. The employees receive pre-employment and periodic medical check-ups. Each plant has a 24 hours qualified nurse and an 8-hr medical doctor available to attend work related cases and employee family general medical needs.

16. Qualified personnel is implementing health and safety programs, and Juan Minetti will continue training the 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 as specified in the applicable World Bank guidelines.

17. If as a result of the project, there is a reduction in the labor force, Juan Minetti will implement a workers compensation program which will fully comply with the local Argentinean regulations. In developing this program, Juan Minetti will consult regularly with the labor unions. The methods and processes to be used in these consultations will include voluntary retirement programs; training and guidance for future employment options; and medical assistance to the ex-employees and their families for a specified period.

18. By project completion, Juan Minetti operations will be in compliance with the relevant World Bank guidelines and policies; as well as the Belgian environmental standards for the following categories: (i) maximum allowable concentrations in the alternative fuel fed to the kiln; (ii) maximum kiln air emissions to the atmosphere; (iii) maximum concentrations in the clinker leachate; and (iv) removal and destruction efficiency of organic material.

19. Juan Minetti will annually submit to IFC a monitoring report to ensure ongoing environmental compliance during the life of the project. In addition, for the alternative fuels program, Juan Minetti will submit a biannual monitoring report indicating (i) the implementation status of the audit recommendations, (ii) the results of the stack sampling (iii) the clinker leachate concentrations and (iv) environmental and safety employee training activities.

20. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Argentina requirements, and World Bank policies, and environmental, health and safety guidelines.

21. IFC will monitor Minetti’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.
TABLE 1. JUAN MINETTI
ENVIRONMENTAL ACTION PLAN

PROJECT




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February 26, 1999 6:13 PM

Environmental and Social Mitigation Measures

Broad Community Support