ESCARPMENT ENVIRONMENT PROTECTION GROUP (EEPOG)

An ASSOCIATION

Farm Zoekop, JS426 Belfast District, P O Box 201, Belfast, 1100

Mpumalanga, South Africa

.

REF 20071106 portfolio presentation

 

Date:  6 November 2007

 

The Chair:  Mr Langa Zita MP

Portfolio Committee for Environmental Affairs and Tourism

PO Box 15

Parliament

Cape Town

8000

 

RE:  NATIONAL ENVIRONMENTAL MANAGEMENT AMENDMENT BILL B36-2007:

PUBLIC HEARING SUBMISSION ON 6 NOVEMBER 2007

 

Mr Chair and ladies and gentleman of the committee,

 

We wish to thank you for the opportunity to address you with regards to these proposed amendments to the National Environment Management Act. (NEMA)

 

First a little background from our perspective:

The decision to generate electricity primarily from coal was made 30 – 40 years ago in very different circumstances – a very different political structure and method of government. We are very sure that we would not have been afforded the opportunity to address the portfolio committee as members of the public then.

 

Coal fired power stations is however now a fact and the implications and complications of that decision has come home to roost on us – the children and grandchildren of those decision makers.

 

I grew up as the son of a civil servant who worked in the Treasury. I remember very clearly that my father told me in the late 70’s that he was very disturbed about the fact that it seemed as though the whole of the Highveld in the then Transvaal was going to be mined for coal for electricity generation. He was of the opinion that it would be disastrous for the country in the long term.

 

The change in the commodity price cycle in the early 1980’s and the sanctions imposed by the world on South Africa, with resulting contraction in the economic growth, meant lower demand for electricity and coal. The threat was thus averted without any direct intervention. Let us point out right now that it is not our aim to stop the generation of electricity from coal. This is a fact that will remain for us for the next few decades. What we do wish to influence is where the coal is sourced for this current power generation and the payment of the external costs resulting from this extraction.

 

Show photos:

 

The question we believe should be:

Where is the least cost coal, based on the social, economic, and environmental cost basis to use for the generation of electricity?

 

The present situation:

We are now in a situation where the demand for electricity is outstripping supply at certain times of the year and the commodity cycle is at a peak again. Demand, both locally and internationally is very high and the price of coal is very high. Prices are in the region of R450/ ton at Richard bay Coal Terminal. This is economically very attractive especially if the constraints on the external costs can be reduced.

 

There is also a new government structure in place and new laws have been promulgated to mirror the fundamental change in the way the country is governed – basically from a one party dictatorship to a multiparty democracy. Decision making has moved from dark smoke filled backrooms to the porch in full view of the public and where smoking is only allowed outdoors. NEMA, the MPRDA, the NWA and many other laws reflect this change.

 

What we are here for is  amendments to NEMA that will fundamentally change the whole process once again to a situation somewhere in between the two above scenarios and that would lead in the end, we believe, to a de facto back to the old decision making process that is completely out of step with the current principles of government.

 

We wish to make the following analogy with a computer: In a PC we have a hard drive with an operating procedure (normally DOS), we have software that works with the hard drive (eg Windows) and we have a operator that instructs the software. This is a basic government. The hard drive is the philosophy of government – liberal democracy based on a constitution. The software is the laws eg. NEMA , MPRDA and NWA. The operators are the members of parliament, the civil servants, and the courts. If all is well the system is well.

 

 We are however concerned about the situation where the software are incompatible with the hardware. This is the same as when you wish to open a programme and the computer tells you that it does not recognise the programme. I believe that the push by DME to amend both the MPRDA and NEMA is exactly this. The software (amended acts) will be incompatible with the hardware (constitution and philosophy) and we will run into all sorts of problems.

 

What is even more disconcerting is that the operators in this case, the DME, does not seem to realise that their proposed software is incompatible with the hardware.

 

 

 

 

The main issues:

1)       Sustainability

      Sustainability forms the basis of decision making when we have an economic impact with associated social en environmental impacts. We refer you to the written submissions for the case of the Fuel Retailers vs MDALA in the Constitutional Court. We only wish to make a few quotes from this judgement: ( own emphasis)

 

·                     At paragraph 44: Development cannot subsist upon a deteriorating environmental base. Unlimited development is detrimental to the environment and the destruction is detrimental to development. Promotion of development requires the protection of the environment.

 

·                     At paragraph 47: The Brundtland report defined sustainable development as “ development that meets the need of the present without compromising the ability of future generations to meet their own needs” .

 

  • At paragraph 48:…..the concept of sustainable development , according to the ( Brundlandt)report, “provides a framework for the integration of environmental policies and development strategies”

 

·                     At paragraph 59:  Sustainable development is defined to mean “the integration of social, economic and environmental factors into planning, implementation and decision-making for the benefit of present and future generations”.

·                     At paragraph 61:  Whenever a development which may have a significant impact on the environment is planned, it envisages that there will be a need to weigh considerations of development, as underpinned by the right to socio-economic development, against environmental considerations, as underpinned by the right to environmental protection. In this sense it contemplates that environmental decisions will achieve a balance between environmental and socio-economic developmental considerations through the concept of sustainability.

·                     At paragraph 80:  The objective of this exercise, as NEMA makes it plain, is both to identify and predict that actual and potential impact on socio-economic conditions and consider ways of minimising the negative impact while maximising benefit.

 

·                     At paragraph 81: Finally NEMA requires “a risk averse and cautious approach” to be applied by decision-makers. This approach entails taking into account the limitation on present knowledge about the consequences of an environmental decision. This precautionary approach is especially important in the light of section 24(7)(b) of NEMA which requires the cumulative impact of a development on the environment and socio-economic conditions to be investigated and addressed. And the assessment of the significance of that potential impact.

 

·                     At paragraph 102:  “…The present generation holds the earth in trust for the next       generation. This trusteeship position carries with it the responsibility to look after the environment. It is the duty of the court to ensure that this responsibility is carried out.”

 

 

      Sustainability is the glasses we look through in order to assess and evaluate all the facts and make a decision that is informed. It is fundamental and manifest to decision making under these circumstances.

 

      In order to compile a sustainability study we need to know what all the true advantages and disadvantages are of a project. This includes the costs that are externalised. If we cannot calculate all of the advantages and disadvantages then we cannot calculate the sustainability of a project and then it would fail to meet the standards set out in Section 24 of the Constitution.

 

We believe that by watering down the requirements, making DME a Competent Authority, allowing for exemptions and parallel processes (sufficient compliance) without setting certain minimum requirement for such studies the effect will be that no true sustainability will be available and this will lead to endless problems both for the current generation but also for future generations. These impacts include the cumulative impacts of the investigated project and other projects that are similar and/or have similar impacts.

 

      One of the big issues has always been to what extent the impacts have to be investigated. Cumulative impacts are a classical example. Where does this stop? In the draft MPRDA regulations there was definition. It was however removed from the final regulations.

 

            Cumulative Impacts:

 

Whether a specific resource and ecological component are cumulatively affected by the proposed mining operation by considering:-

 

a)       whether the proposed operation is one of several projects or activities in the same geographic area;

b)       whether other projects or activities in the area have similar impacts on the specific resource and ecological components;

c)       whether these impacts have been historically significant for this resources and ecological components; and

d)       whether other investigations in the area have identified a cumulative impact concern,

 

To avoid extending data and analytical requirements beyond those relevant for decision-making, the selection of geographical boundaries and time period should, whenever possible, be based on the natural boundaries of the resource concern and the period of time that the proposed project’s impacts will persist.

 

I believe this explains exactly what is needed and this is the sort of amendments we need. We need to illuminate the issues and not switch off the lights.

 

2)       Alternatives

The same is for the investigating of alternatives. It is fundamental to the process. In the MPRDA it states that the beneficiation of minerals should be done optimally. How is it possible to be sure of this if alternatives of resources are not investigated?

 

If one draws a line from Durban to Bloemfontein and further north, there is coal to the east. Some of it is very thin, - 0.5 to 2.5 m – as is the case on the escarpment. Some of it is very thick – many tens of metres – in the case of certain Highveld areas and in Limpopo province. Knowing what we know about the impact on soils fertility and acid mine drainage ( see written submission) it should be very important to disturb as little topsoil as possible and to have a stripping ratio (tons of topsoil to remove per ton of coal) as low as possible. This can only be done by investigating alternatives.

 

3)       Time for decision making

        Another reason put forward for these amendments is that it takes too much time for an authorisation to take place. As I have shown in my written submission the current time frames in the MPRDA leaves very little time for expert studies. It does however leave 120 days for a decision to take place.

 

        Let us look at examples. In the case of Lusthof the decision took 10 months, Eerstelingsfontein took 21 months, Klippan took 3 months and Strathrae took  -14 days ( was authorised before the documents were handed in). It is interesting to note that Klippan was the mine where we were told by the company about how well connected they are within the DME and political structures and it took less time than what is allowed for in the MPRDA.

 

        What is clear is that a long time is sometimes taken on a decision. By decreasing the investigations there will not be an affect of the time it takes to make a decision except where the information will be so lacking in detail that a decision can be easily made. The question then is of course whether it is an informed decision.

 

4)       Cooperative governance, Consultation, public participation

      An informed decision can only be in a process where there are strict minimum standards and where there is cooperative governance with multiparty responsibility.

 

From  legal opinion it is clear that every department should keep itself busy with its own field of expertise and not infringe on another department’s area of expertise. The integration of the expertise should however be reflected in the decision.

 

From the above it is clear that the restrictive old administrative rules regarding participation had been replaced by rules requiring much active involvement and notably to the benefit of increased involvement by both government department and interested and affected parties.

 

The old system was characterized by decision-making by a government department with, at best, the comments of departments and other parties. The new system is based on the active involvement of interested parties such as other government organs.

 

        It has also come to our attention that the DME has only 59 officials in the Department tasked with environmental protection and monitoring across all the nine regional offices. That is a total of only 6.5 persons per province on average. This shortage of staff is very clearly evident in the inability of DME to investigate gross irregularities that are reported to them. (See written presentation). In Mpumalanga alone there are more than 2000 prospecting and mining right applications.

 

        One wonders if the inadequate amount of officials is representing the importance that the environment is given within the DME.

 

5)       The appeal process

        There is no internal appeal process within the MPRDA. In this we refer you to two cases in the Free State High Court recently reported. ( Mofschaap Diamonds vs DME and others, case 3117/2006 and Global Pact trading vs DME and others, case no 3118/06) The way the wording in the MPRDA is drafted and the way the delegated power is drafted has seen to that.

 

        In our written submission we had illustrated that the DME authorises mining rights without certain very important requirements being met in either the MPRDA or NEMA. This is especially the case for alternatives, cumulative impact, public participations and sustainability. If these amendments are put into law it would mean that the only internal appeal process ( under NEMA authorisations) would be taken away from the public and the only recourse would be legal review at a cost of hundreds of thousands of Rand.

 

Once the DME, as the competent authority, has granted exemptions and declared the MPRDA as sufficiently compliant then there would be no internal appeal to the Minster of Environmental Affairs and every mining right that was granted in error, and there have been numerous, would end up in court.

 

We do not believe that this is what is envisaged by you.

 

In conclusion the following:

 

        We believe that all of the coal fields should be rated according to the complete cost discussed above. The DME should then direct the companies to prospect those areas first that have the least cost in order to mine coal for ESKOM for electricity generation. This could only be done if cumulative impacts and alternatives have to be investigated.

 

      By not investigating the alternative coal fields we are however allowing coal mining to happen in areas where it is not optimal and the only reason it is economical is because the company does not have to pay for the acid mine drainage and the loss of soil fertility.

 

      By not investigating impacts, alternatives, cumulative impacts and doing sustainability studies we are guessing the importance of these impacts, the advantages, and disadvantages. We also externalising the cost to society and later generations. We are placing a burden on the next generations in much the same way that the impact of coal fired electricity was placed on us by the previous generations.

 

By not investigating an impact we are not going to make it go away – we are merely transporting responsibility from the mining company to society. The mining company gets the benefits and the society pays the cost.

 

Let us not burden our children with the cost for our growth but with a situation where the cost has been paid for and there is no additional cost for them to pay. I have a friend that always says good bye in the following fashion: -“May your children have rich parents” I wish to add – “and grow up in a happy and healthy family environment”

 

 

 

 

 

 

Dr JP Pretorius

Chairman EEPOG

Secretary MLDPG