AmCham Macedonia Spring 2018 (Issue 57) | Page 20

Cover Story Spring 2018 / Issue 57 Cover Story Spring 2018 / Issue 57 How Sasa Does Sustainability S ustainability is the new catch phrase for Industry, but what does it mean in practice? Evaluating the impact of an organization or operation using costs and benefits by classical economic measurements such as net present value (NPV) and internal rate of return (IRR) tends to ignore or undervalue indirect or non-intrinsic elements. The concept of sustainability is to broaden this focus to determine all factors and impacts that an organization or operation has on the receiving environment so that the true impact of a project can be determined. Sustainability issues include such factors as: environmental impact, climate change, waste management, human rights, gov- ernance, and social well-being. The goal of undertaking activi- ties to improve sustainability is to create social, environmental and economic benefits for all the stakeholders in an organization. The most detailed definition of the activities and factors associ- ated with Sustainability has been set out under the Global Report- ing Initiatives (GRI) Sustainabil- ity Reporting Guidelines (www. globalreporting.org). Reporting on sustainability is becoming a legal requirement in many jurisdictions. In December 2014, the European Commission adopted a new directive obliging large multinational corporations to provide non-financial disclosure to the markets. The law applies to public companies with more than 500 employees. Companies are required to report on environmen- tal, social and employee-related, human rights, anti-corruption and bribery matters. Addition- ally, these large corporations are required to describe their busi- ness model, outcomes and risks of the policies on the above topics, 20 AmCham Macedonia Magazine Author: Neil Stevenson, General Manager, Sasa Mine and the diversity policy applied for management and supervisory bodies. In a somewhat dated publication, KPMG reported that in 2011, 95 percent of the world’s largest 250 corporations produced annual sustainability reports, (up from 80 percent in 2008) and in addition 86 percent of the largest U.S. companies. In the financial year 2016, 2,500 companies voluntarily pro- duced sustainability reports; the GRI predicted that this would rise to nearly 7,000 by 2017. At the Sasa mine we view our activities toward sustainability in terms of the following areas of effect: Environment, Health and Safety, and Community Engagement and Support. I will detail some of the initiatives we have put in place or commenced activ- ities in these areas. Environmental Monitoring Environmental monitoring seeks to determine if there is any impact on the natural environment as a result of the activities associated with the work undertaken. This encompasses water sampling of all the surface water flows entering and leaving the project area. Water samples are analyzed chemically to not only determine compliance with Macedonian water discharge crite- ria but also to determine compliance with the IFC guidelines of water quality. This is done as these two standards differ on what elements are required to be analyzed. Sample and analysis for bacterial criteria is also undertaken. Air monitoring is undertaken for particulate matter with the installation of two continuous mon- itors, one located at the mine site and one located in Sasa vil- lage which is the closest settlement to the mine area. These air sampler monitors are designed to determine dust reading at the PM10 sizing. They also allow a physical sample of the dust to be taken to allow chemical analysis of the dust to determine the actual constituent particles that make up the dust to determine if this poses any health threat to the community. The mine also undertakes measurements of noise levels to ensure this does not exceed the legal limits. Biodiversity The mine, located in the Osogovo Mountains, had never had a detailed survey or study of the biodiversity of the area conducted. The most detailed work done was in a country-wide study under- taken in 2003, Country Study for Biodiversity of the Republic of Macedonia. Sasa has commissioned the Skopje-based company, Far- mahem, to undertake a detailed biodiversity study of the fauna and flora in the catchment area of the mine from the crest of the surrounding mountains to the Kamenica Lake. Farmahem have assembled a project team including academics and professors from Macedonian educational institutions to be involved in the study. The study has a 12 month field work component to ensure that all migratory species are included in the analysis. The study will result in the production of a Biodiversity Management Plan to assist the mine in undertaking future planning and possible impacts. Hazardous Waste and Waste Management As part of mining activities hazard- ous waste is generated. Sasa under- took a detailed study of the wastes generated from different parts of the process, developed mechanisms for initial storage at the site of waste generation, and transport to per- manent storage and disposal. The Ministry of Environment and Physical Planning has a list of authorized & licensed companies for the handling of hazardous waste on their web site. Sasa contacted three of these companies to determine their capac- ity for handling our waste materials. The selected company, EkoClub from Bitola, was then subjected to a supplier audit. They send the hazardous waste to Polyeco in Ath- ens. This waste consists of oil filters, hydraulic hoses, NaCN metal barrel and reagent packaging of: NaCN, CuSO4, Potassium Ethyl Xanthate and Potassium Amyl Xanthate. Sasa sent members from our environ- mental team to inspect their facilities and check the licenses to determine that the disposal complied with the required legal requirements. In addi- tion, we have sourced local suppliers to handle other waste: waste oils are handled by FPIM Minol- DOOEl Shtip; old vehicle batteries are handled by DT Ival-Trade, Shtip; small size used Green House Gas Emission Monitoring The requirement to determine emissions of Green House Gases is likely to become an issue for future regulation as Macedonia seeks to implement European standards and conventions. To establish a base line of current emissions with which to measure the effectiveness of future emis- sion reduction strategies, Sasa has commissioned EcoMosaic, Skopje to undertake training in line with the Greenhouse Gas Protocol (www. ghgprotocol.org) to enable Sasa to determine emissions according to accepted guidelines. closure plan that defines what activ- ities will be undertaken at the end of the mine life to decommission the facilities and re-establish a natural landscape. This will require a large exercise in reconfiguration of mine excavations and re-vegetation. This, in combination with the concept of “environmental offsets” that seek for a mining operation to implement, over its life, a programme of regional reforestation to encompass a land area of larger footprint than the min- ing area of impact, has led Sasa to commence the establishment of a plant nursery facility. In collaboration with the Faculty of Forestry at St. Cyril and Methodius University in Skopje, a Memorandum of Understanding has been signed for the establish- ment of nursery facility at Sasa. The main mission of the Faculty is edu- cation and it is anticipated that the University will utilize the nursery as a training facility for their institute. For Sasa it will provide plant material to undertake mine site rehabilitation as well as in coordination with the Uni- versity and local government and communities to undertake regional reforestation. Nursery As part of the IFC Performance Standards and Guidelines it is a requirement for mines to produce a Energy Management Industry accounts for about one third of global final energy consump- tion and greenhouse gas emissions. batteries are handled by Nula Otpad DOO, Skopje; empty packages from chemical are handled by the supplier EuroChemical, Skopje; packaging (cardboard, plastic, metal recycling) are handled by EkoPacking DOO Export-import Tetovo; and PET plas- tic is handled by the supplier Tea-Mil DOOEL, Delcevo. A contract for the collection of waste paper for recy- cling with Eko-Pak-Hit, Kocani has just been finalized. AmCham Macedonia Magazine 21