1

Date: 21/22 June 2011

Presentation to Parliamentary Portfolio Committeeon Water Affairs

TCTA Mandate

PSP Role

Consultations with mines

Western Basin

Central Basin

Eastern Basin

Programme

Key Challenges

Ministerial directive – 6 April 2011Emergency works in Witwatersrand Gold

Fields comprising:Installation of pumpsConstruction of water treatment plantsRelease treated water into river system

Obtain environmental and regulatory approvals

Funding via National Treasury (R225 million)Advise and assist DWA with O&M modelRight to expropriate landMinister may direct to do more

Issue tender on 8 April 2011PSP : BKS in association with GolderAward PSP contract (Part 1)on 9 May 2011Main tasks:

Due diligence review – report due 7 JulyTender design and documentationDetail design and construction supervisionProject closeout

Western and Central basins Eastern Basin?Explore institutional options (legal frameworks)Access to landAvailability and status of existing infrastructureCo-funding options

CapexOpex

Water off-takesO&M options

6

Agreed ECL level is 1550 amsl or 160 m below collar of 8 Shaft.

Current decant 17.7 ML/day into the Tweelopies Spruit.

Peak flows of 50 – 60 Ml/day have been measured in summer

Immediate solutions identified to reduce decant in Western BasinUpgrade of Rand Uranium plant to treat 30 Ml/day

(preferred)Upgrade Mogale Gold treatment plant 24 Ml/dayUpgrade Rand uranium and Mogale Gold

Cost of immediate solution (Capex R25 M) (Opex R52 M per year)

Short term solution - being identified

7

8

9

10

Agreed ECL level is 1467 amsl or 173 m below collar of SWV Shaft.

Gold Reef City requires level below 1480 amsl

CRG requires level to be 400m below SWV

Short term solution - being identified

Pumps have been ordered by CRG to pump to 400 m

Current Design ECL set at 1280 amsl or 290 m below Grootvlei collar

Role players to be identified

Final ECL to be determined based on mining requirements

Short term solution - being identified

11

ACTIVITY DATE

Receive directive 6 April 2011

Appoint PSP 9 May 2011

Complete due diligence 7 July 2011

Issue tenders 11 October 2011

Commission immediate solution (Western B) November 2011

Start construction January 2012

Project commissioning September 2012

Project closeout December 2012

12

Emergency status of project – accelerated processes

Unclear project scope definitionSeverely limited timeframesTimely regulatory and env approvalsPoor state of existing infrastructureHigh public profile and interestComplex institutional arrangementsLimited cost recoveryPossible budget limitationsTiming of long-term solution