Full Disclosure 2016

Wescoal Holdings Limited's disclosure of environmental non-compliances in annual reports

2011 company reports

The 2011 report does not contain any disclosures of non-compliance with environmental laws.

2012 company reports

The 2012 Annual Report includes, for the first time, a section dedicated to sustainability issues:

Contained in this integrated report is Wescoal’s first sustainability report which focuses on our stance and measurement towards the environment, the economy, labour practices, human rights and our products. In October 2011, in an effort to strengthen overall corporate governance, Wescoal appointed PricewaterhouseCoopers, a leading audit and accounting practice, to replace our previous auditors Middel & Partners. We remained focused on ensuring that we stay true to being a socially responsible Company adding value to our employees and the communities in which our mines are located. In this regard, we have multiple social responsibility projects and comply with all environmental and water use regulations.¹

The report’s sustainability section provides details on the water use licence issued at the Khanyisa Colliery issued by DWAF (as it was then)² and the properties over which the licence is exercised. The report states:

Over the period under review, Wescoal has had no water or liquid spills or contamination of water sources.³

With respect to mine rehabilitation, the report states:

Wescoal is committed to the rehabilitation of mining activity on a continual and on-going basis in the roll-over method and to date Wescoal has met all rehabilitation requirements, including an additional 71,245 m2 at the Khanyisa Colliery.⁴

The report states as follows with regard to waste management:

In the past, Khanyisa Colliery has experienced problems with previous mining contractors who ignored solid waste management requirements. Wescoal now has receptacles in place which are utilised by all staff and contractors, into which waste is dumped and then professionally removed. Wescoal does have certain hazardous chemicals at the Khanyisa operation such as hydrocarbons. Hydrocarbons are oils, like crude, petrol, diesel, heavy oils and lubricants. There can be indirect effects as a result of burning them such as the release of carbon dioxide, nitrogen oxides, sulphur oxide and partial oxidation, which might then be further altered into photochemical smog in the right conditions. This might cause coughs, and other respiratory ailments for people exposed to the fumes.⁵

The report states as follows with respect to monitoring compliance of safety, health and environmental practices:

Monthly internal audits and reports are undertaken under the SHE system, covering safety, occupational hygiene, occupational health and the environment. Regular external visits and/or audits are conducted by the DMR. Occasionally, the DWS will visit, and sometimes the Department of Environmental Affairs. No reports are written if compliance and administration are adhered to, however, directives are given if non-compliance is discovered.⁶

No further information is provided regarding these inspections by the DMR, the DWS and DEA. The report does not state whether or not any non-compliances were discovered during these inspections.

 2013 company reports

The 2013 Integrated Annual Report’s sustainability section again provides details on the water use licence issued at the Khanyisa Colliery and Intibane Colliery by DWAF (as it was then)⁷ and the properties over which the licence is exercised. The report states:

During the period under review, Wescoal has had no water or liquid spills or contamination of water sources.⁸

With respect to mine rehabilitation, the report states:

The process of mining coal disturbs the land, however it is the responsibility of Wescoal to rehabilitate the land back to the state in which it was prior to mining… To date, Wescoal has met all rehabilitation requirements, including an additional 71 245m2 at the Khanyisa Colliery. At the Intibane mine, the results of which are not included in this report as mining commenced in April 2013, Wescoal is mining alongside farming activity in partnership with the farmer. This means that once Wescoal has rehabilitated the land after mining for coal, the farmer will have the right of first refusal to buy back the land for farming purposes. This is just one of the ways in which Wescoal is striving to ensure the sustainability of land in South Africa, as well as acting as a responsible corporate citizen.⁹

The report states as follows with regard to waste management:

Wescoal has receptacles in place into which waste is dumped and then professionally removed and which are utilised by all staff and contractors. Wescoal makes use of certain hazardous chemicals, such as hydrocarbons, at the Khanyisa operation. Hydrocarbons are oils, like crude, petrol, diesel, heavy oils and lubricants, which can indirectly affect the environment. For example, if hydrocarbons are burnt, they can release carbon dioxide, nitrogen oxides, sulphur oxide or cause partial oxidation, which might then be further altered into photochemical smog in the right conditions. This might cause coughs, and other respiratory ailments for people exposed to the fumes.¹⁰

The report states as follows with respect to monitoring compliance of safety, health and environmental practices:

Monthly internal audits and reports are undertaken under the SHE system, covering safety, occupational hygiene, occupational health and the environment. Regular external visits and/or audits are conducted by the DMR. Occasionally, the DWS will visit, and sometimes the Department of Environmental Affairs. No reports are written if compliance and administration are adhered to, however, directives are given if non-compliance is discovered.¹¹

No further information is provided regarding these inspections by the DMR, the DWS and DEA. The report does not state whether or not any non-compliances were discovered during these inspections.

2014 company reports

The report’s sustainability section again provides details on the water use licence issued at the Khanyisa Colliery and Intibane Colliery issued by DWAF (as it was then)¹² and the properties over which the licence is exercised. The report states:

During the period under review, Wescoal has had no water or liquid spills or contamination of water sources.¹³

With respect to mine rehabilitation, the report states, as in the previous year’s report, that Wescoal has met all rehabilitation requirements in the reporting year and again emphasised that Wescoal mines alongside farming activity at the Intibane Colliery.¹⁴

The report repeats the previous years’ statement about waste management:

Wescoal has receptacles in place into which waste is dumped and then professionally removed and which are utilised by all staff and contractors. Wescoal makes use of certain hazardous chemicals, such as hydrocarbons, at the Khanyisa operation. Hydrocarbons are oils, like crude, petrol, diesel, heavy oils and lubricants, which can indirectly affect the environment. For example, if hydrocarbons are burnt, they can release carbon dioxide, nitrogen oxides, sulphur oxide or cause partial oxidation, which might then be further altered into photochemical smog in the right conditions. This might cause coughs, and other respiratory ailments for people exposed to the fumes.¹⁵

The report states as follows with respect to monitoring compliance of safety, health and environmental practices:

Monthly internal audits and reports are undertaken under the SHE system, covering safety, occupational hygiene, occupational health and the environment. Regular external visits and/or audits are conducted by the DMR. Occasionally, the DWS will visit, and sometimes the Department of Environmental Affairs. No reports are written if compliance and administration are adhered to, however, directives are given if non-compliance is discovered.¹⁶

No further information is provided regarding these inspections by the DMR, the DWS and DEA. The report does not state whether or not any non-compliances were discovered during these inspections.

2015 company reports

The 2015 Integrated Annual Report’s sustainability section again provides details on the water use licence issued at the Khanyisa Colliery and Intibane Colliery, and states that Wescoal has had no water or liquid spills or contamination of water sources in the reporting year.¹⁷

With respect to mine rehabilitation, as in previous reports, Wescoal states that it has met all rehabilitation requirements in the reporting year.¹⁸

The report repeats the previous years’ statement about waste management, i.e. that Wescoal has receptacles in place into which waste is dumped and then professionally removed and which are utilised by all staff and contractors.¹⁹

The report states as follows with respect to monitoring compliance of safety, health and environmental practices:

Monthly internal audits and reports are undertaken under the SHE system, covering safety, occupational hygiene, occupational health and the environment. Regular external visits and/or audits are conducted by the DMR. Occasionally, the DWS will visit, and sometimes the Department of Environmental Affairs. No reports are written if compliance and administration are adhered to, however, directives are given if non-compliance is discovered.²⁰

No further information is provided regarding these inspections by the DMR, the DWS and DEA. The report does not state whether or not any non-compliances were discovered during these inspections.

2016 company reports

[This section was not included in the version of the assessment sent to Wescoal for comment on 27 September 2016, as Wescoal’s 2016 Integrated Annual Report was published on 27 September 2016.]

The 2016 Integrated Annual Report states that the “DWS issued water use licences to Wescoal for operational activities” and that these “licences are governed by strict adherence and compliance measures set out by DWS”.²¹ It is once again noted in the report that “Wescoal has had no water or liquid spills or contamination of water sources”.²²

With regard to mine rehabilitation, it is once again stated in the 2016 Integrated Annual Report that “Wescoal has met all rehabilitation requirements, in conjunction (sic) to the approved mining rehabilitation plan”.²³

In relation to waste management, the 2016 Integrated Annual Report repeats the statement in previous reports that “Wescoal has receptacles in place for hazardous waste which is then professionally removed”.²⁴

In relation to dust control measures, it is stated that:

Dust levels are monitored and measured regularly by environmental consultants. In accordance with management processes, all abnormal variations are managed within regulatory guidelines. In compliance with DMR regulatory requirements, Wescoal established a system of monthly occupational hygiene measurements. The results show a steady decline in the personal noise and dust exposure levels for high risk activities and job categories according to the independent assessments.²⁵

In relation to environmental compliance monitoring, it is stated in the 2016 Integrated Annual Report that:

Wescoal Mining adheres to an intensive and fully compliant environmental management programme as prescribed by the approved environmental management programmes for each operational area. All the required authorisations as stipulated by the awarded WULs are integrated in our management systems. No findings or limitations have been imposed on any of our operations in the reported financial year.²⁶

No further details on environmental compliance are provided. No information is provided in relation to any compliance monitoring inspections conducted by regulatory authorities.