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A stinging sensation
The ferro-alloy industry has recently been in the spotlight, with power producer Eskom in talks with large electricity users in a bid to curb power use. Nelendhre Moodley spoke to deputy minister, Rejoice Mabudafhasi, and enforcement director, Melissa Fourie, from the Department of Environmental Affairs and Tourism (Deat) about an operation with a 'sting' - aimed at bringing environmental polluters to heel.
The Department of Minerals and Energy (DME) is planning to gazette new legislation preventing SA chrome miners from exporting un-beneficiated chrome ore. The initiative is expected to see Deat tighten the reins on ferro-alloy polluters with its 'Operation Ferro'.
Under Operation Ferro, launched in May last year, Deat has been reviewing the compliance of the iron, steel and ferro-alloy industries with environmental legislation, to ensure that they have the required environmental permits, and that those industries are, in fact, complying with their permits.
The iron and steel and ferro-alloy industries have been prioritised, as their industrial processes can contribute significantly to pollution if not mitigated and managed properly, explains Fourie.
The key activity in this project is a series of prioritised compliance inspections of facilities in the industry, conducted by Environmental Management Inspectors (EMIs).
To date, inspections have been conducted at Assmang's Cato Ridge ferromanganese plant, ArcelorMittal's Vereeniging and Newcastle steelworks, Hernic Ferrochrome's plant outside Brits, as well as Highveld Steel's steelworks, and its ferrovanadium plant known as Vanchem outside Witbank.
No facility inspected to date has been fully in compliance, the minister notes.
In the first few months of this year, facilities owned by Xstrata, SCAW Metals, Columbus Stainless and Samancor Chrome will also be inspected.
"We are well on the way with compliance inspections, and, if companies fail to comply, the next step will be the 'naming and shaming process'," Mabudafhasi warns.
She is adamant that, while there are numerous companies such as ArcelorMittal that have shown a keen desire for compliance, others have been dragging their feet, or not taking it seriously.
Established in 2006, Deat's environmental management inspectorate - the Green Scorpions - has already made numerous site visits to the ferro-alloy industry, including ArcelorMittal's Vereeniging and Newcastle plants.
"Senior management on Assmang's Cato Ridge plant and ArcelorMittal's Vereeniging plant have demonstrated their strong commitment to rectifying problems on site. Nonetheless, EMIs will be monitoring all these facilities very closely to ensure that words translate into action," Mabubdafhasi states.
"Since the report of the findings, ArcelorMittal has proposed spending more than R100m to reduce dust emissions at its Vereeniging plant. Timeframes for project completion are included in a notice issued to ArcelorMittal by EMIs," Fourie notes.
The company's Vanderbijlpark operation, one of the world's largest inland steel mills, and the largest supplier of flat steel products in sub-Saharan Africa, has yet to be inspected, the minister says.
Discussing the current state of the local ferro-alloy industry, Mabudafhasi explains that the industry faces a number of major challenges, including inadequate hazardous waste management, air pollution and lack of reporting.
"Most facilities in this industry sector have enormous hazardous waste disposal sites that are firstly un-permitted, and, secondly, the disposal sites are often unlined, and in many instances have contaminated groundwater, causing problems like surface run-off and dust pollution.
"In many instances, companies blame this problem on legacy issues. Yet dumping of hazardous waste on these sites continues, and companies have made no more than half-hearted attempts to obtain permits or to find alternatives," she states.
In addition, most facilities are in non-compliance with their air pollution permits - some exceed their permit limits many times over. "Fugitive emissions of particulate matter (dust) are also a major problem."
"However, these challenges can also become opportunities for major environmental change in this sector and beyond. International experience has shown that companies who adopt an integrated approach to environmental management on site tend to be more innovative and more profitable than companies who do not.
"In certain instances, in addition to directives, criminal prosecution will be undertaken, particularly where we find intentional or negligent harm to the environment," the minister notes.
Penalties that can be imposed after a successful criminal conviction vary depending on the type of offence, but can be as high as R5m.
Despite the above, there have also been encouraging developments within the sector. For example, various ferro-alloy industries, especially in the North-West Province, have formed an organisation to look at air quality impacts jointly, and there have been a number of notable emission reduction initiatives undertaken by these companies over the last three years.
Furthermore, a process is currently underway to facilitate the conversion of registration certificates issued in terms of the APPA to atmospheric emission licences - the APPA registration certificate review project.
The project has completed its prioritisation work, and the following industrial sectors have been prioritised for review:
- Petrochemical (7 operations);
- Primary steel manufacture (9 operations);
- Primary aluminium production (2 operations);
- Ferro-alloy industries specifically chromium, vanadium and manganese (ferro-silicon) production (27 - 30 operations);
- Pulp and paper industries (9 operations);
- Coal-fired power stations (national grid) (~20 operations).
"All of these facilities have been visited and the review process initiated," the minister says.
The department is already leading a national environmental compliance and enforcement project in relation to the six big oil refineries in the country, and will soon expand its compliance inspections to other industry sectors.
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