water for waterberg coal development
TRANSCRIPT
Fossil Fuel Foundation
3RD WATERBERG COAL CONFERENCE15 October 2014
WATER FOR WATERBERG COAL DEVELOPMENT
Presented by:Ockie van den BergActing Director: Options AnalysisDepartment of Water and Sanitation 1
water and sanitationWater and Sanitation
Presentation Outline
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1. Bulk Water Augmentation1.1 National Development Context1.2 Overview of Mokolo and Crocodile Water
Augmentation Project (MCWAP)Phases 1 and 2A
2. Groundwater for urban and interim industrial supply
3. Rural water supply
Bulk water augmentation
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National Development Context• National Development Plan
– Final Plan released August 2012– Emphasis on job creation and economic growth
• Infrastructure Development key component of Plan and coordinated byPresidential Infrastructure Coordinating Commission (PICC)
– Clustered in 18 Strategic Infrastructure Projects (SIP)– Unlocking the Northern Mineral Belt with Waterberg as catalyst identified as SIP1– Water infrastructure development feature prominently in SIPs
• Assurance of water supply to current power stations not acceptable– country’s power supply at risk– 15% of country’s total power generation situated in Waterberg upon Medupi completion
• Significant economic development for country if water is taken to this area
– Job creation– Economic development– Energy security– Security of coal resources for power stations in Waterberg and Highveld
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Project location
▪ Rail and road:▪ Waterberg - 600km rail (increase capacity to 112Mtpa)▪ Mpumalanga - 140km rail (increase capacity to 32Mtpa)▪ Swazi link – 163km (increase capacity from 16Mtpa to 33Mtpa)▪ Export link – upgrade Ermelo to Richards Bay▪ Rolling stock :14000 wagons, 1000 locomotives▪ Road: national, provincial and municipal roads▪ Moloto corridor centered around deeper economic linkages with Gauteng
▪ Water:▪ Mokolo Phase 2 - 170km water pipeline providing potentially 150Mm3 per annum▪ De Hoop Dam (80Mm3 per annum) and distribution system (260km pipeline),
▪ Electricity:▪ New Coal fired power station (Coal 3) 4800MW, and transmission lines
▪ Urban development, including human settlement, energy, roads, etc.: • Housing, community centers, public transport, green urban development and roads
▪ Port:▪ Richards Bay capacity from 14,2Mtpa to 23.7Mtpa
▪ Industrial Development:▪ 80 000 barrels/day Coal-to-liquid plant (Mafutha)▪ Coal Mines : 3 mines 5-10 Mtpa per mine
SIP 1: Unlocking the Northern Mineral Belt with Waterberg as the CatalystUnlocking SA’s northern mineral belt in one of the poorest provinces (Limpopo) through key infrastructure provision in the Waterberg and Steelpoort districts, initiating new energy and industrial development, shifting coal from road to
rail in Mpumalanga and increasing rail capacity to Richards Bay whilst supporting regional integration
Investment in rail, water pipelines, energy generation and transmission infrastructure will catalyse unlocking of rich mineral resources in Limpopo resulting in up to 98 000 direct jobs across the areas covered. Urban development in the Waterberg will be the first major post apartheid new urban centre and will be a “green” development project.
Mining includes coal , platinum and other minerals for local use and export, hence the rail capacity is being extended to Mpumalanga power stations and for export principally via Richards Bay and in future Maputo (via Swaziland link).
The additional rail capacity will shift coal from road to rail in Mpumalanga with positive environmental and social benefits. Supportive logistics corridors will help to strengthen Mpumalanga’s economic development.
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ProposalPrimary Mineral Reserves
Platinum -6 323 tons
Platinum -6323 tons
Components
0.000
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050
mcm
/a
Lephalale Water Requirment Projection
SSC5 total water demand for Lephalale Yield of Mokolo SSC6 Total water deamd for Lephalale
April 2013, Scenario
Nov 2013, Scenario
Mokolo Dam Yield
Mokolo River catchment
Crocodile River catchment
Vaal River catchment
Context of the Crocodile West SystemGrowth areas
Urban
MiningProposed Transfer
Transfer from Vaal River via Rand Water system
Treated urban return flows
Crocodile catchment water balance
May 2013 (SSC5)
July 2012 (SSC4)
May 2013 (Ext. RTN & AMD)
800
900
1 000
1 100
1 200
1 300
1 400
1 500
1 600
1 700
mill
ion
m3 /
a
Crocodile West River catchment Water Balance
Croc West Water availability_Base Scenario Crocodile Water requirements SSC6_Base Scenario
0
50
100
150
200
250
300
350
2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 2047 2049
mill
ion
m3 /
a
Mokolo Crocodile Water Augmentation project (phase 2)Water Requirements and Water Availability
Water available_Alternative Scenario Water available_Base Scenario
Water transfer requirements (20% conveyance losses) Water Transfer requirements (15% conveyance losses)
Lephalale water transfer requirements
(November 2013)
Water available in the Crocodile for transfer
20 % conveyance losses
15 % conveyance losses
Lephalale water balance
Transfer to Lephalale
MCWAP-1 capacity
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MCWAP DESCRIPTION
• MCWAP 1 : Pipeline & Pumping station from Mokolo Dam to Lephalale area (43 km)
• MCWAP 2A : Abstraction works and pumping station on Crocodile River (West) near Thabazimbi & pipeline to Steenbokpan and Lephalale (128 km).
• MCWAP 3: 83 km pipeline – unlikely and only if river conveyance losses are excessive.
• MCWAP 4: Transfer scheme from Johannesburg Klip River wastewater treatment works to head waters of Crocodile River – unlikely but only if surplus in Crocodile River West is insufficient.
Objective: Water augmentation project to supply demands in the Waterberg Coal Fields (Eskom, IPP’s & coal mining), utilising available yield of the existing Mokolo Dam and surplus return flows from Gauteng being discharged in the Crocodile River (West ) Catchment.
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MCWAP-1 OVERVIEWProject Features
• New Mokolo Pump Station with a capacity of 1,2m3/s
• 900 mm diameter rising pipeline (4,7 km) from Mokolo Pump Station to existing Wolvenfontein Balancing Dams.
• 1 100 mm diameter gravity pipeline (15,9 km) from the Wolvenfontein Balancing Dams to Rietspruitnek.
• 800 mm diameter gravity pipeline (23,1 km) from Rietspruitnek to the Point of Supply at Matimba
• Incorporation, refurbishment and integration of the existing water infrastructure owned by Eskom and Exxaro.
• Incremental capacities– Original 14,7 mill m3/a– Debottlenecking Step 1 20.1 mill m3/a– Debottlenecking Step 2 23.1 mill m3/a -
Achieved Oct 13– MCWAP-1 30.5 mill m3/a
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MCWAP-1 SCHEDULEMILESTONE ACTIVITY PROGRAMMED FORECAST
September 2014
Commence Construction 14 Sept 2011
Water delivery : De-bottlenecking6.6 Km tie in - 37% capacity increase10.3 km tie in - 57% cumulative
capacity increase
11 Dec 201219 May 2013
29 Oct 2013
Water Delivery : Phase 1 13 Sept 2013 15 Feb 2015
Contract Completion Date 13 Mar 2015 31 Aug 2017
Refurbishment Existing infrastructure 13 Nov 2014 31 March 2017
Project Close-out 14 Sept 2015 31 Aug 2017
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MCWAP-1 STATUS (September 2014)MILESTONE ACTIVITY TOTAL LENGTH COMPLETE (m) /
% COMPLETIONFORECAST
COMPLETION
Pump Station 90 % 25 Oct 2014
Gravity MainDebottlenecking Section
Balance of Gravity Main
10 300 m
28 649 m
10 300 m100 %
27 586m97 %
29 Oct 2013
28 Oct 2014
Rising Main 4 651 m 4 446 m81 %
28 Oct 2014
BALANCING DAMS 98 % 30 Nov 2014
TOTAL PIPELINE 43 600 m 42 332 m97%
28 Oct 2015
MCWAP 1 FLOOD DAMAGE
• Flooding occurred middle March 2014 – measured rainfall more than 300mm in places
• Mokolo Dam Spillway was 1100 cubic meters, R 510 was flooded
• 75% of the site, including the pump station were not accessible
• About 3 km of pipe line lifted and 3 km of bedding washed away. Silt collected in the pipe
• The current (old) pipeline and the pump station were intact and water supply was not affected
• A portion of the new and old pipeline was exposed when a local farm dam failed
• Estimated delay due to flooding – 3 months
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MCWAP-1 CHALLENGES
MILESTONE ACTIVITY IMPACT MITIGATION
Contractor’s inability to achieve tendered rate of production and recent floods in March 2014 causing delay in construction
Delayed commissioning of project by 16 months
Additional resources mobilised and engagement of experienced and specialised sub-contractors to advance production.
Contractor paying delay damages.
Delay in commissioning of project and full water delivery
Full water delivery delayed, resulting in postponement of income stream.
Debottlenecking tie in at 10,3 km (Oct 13) increased supply capacity by 57% -sufficient for 4 Medupi units.
The delay in full water delivery will not impact on water supply to Medupi and all MCWAP 1 water users.
Industrial action due to volatile labour situation
Work interruptions that results in delayed completion
Bi monthly discussions with labour, and application of best labour relations practices consistent with others in the region.
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Mokolo and Crocodile Water Augmentation Project – Phase 1(MCWAP-1)
*Total project cost includes R237m contingency **% spend to date calculated from total project cost excluding contingency i.e. (R1.9bn)
Target or catalytic effect
Target: Pump station & 43km pipeline, Deliver 30M m3 water p.a
Total project cost: R2.,4bn*
Project commenced: Jun 2011 Expected Complete: Feb 2015 (water delivery)Aug 2017 (close out)
Catalytic effect: Water supply to Eskom, Exxaro and the Municipality in the Lephalale area
Current program: De-bottlenecking milestone (operational flexibility) at km 10.3 ensures that the project can deliver an additional 57% of water in the system. Enables Eskom to commission four of its Medupi units and meet the forecasted high water demand scenarios until Dec 2015. 39 of the 43 km pipeline laid to-datePump Station - Mechanical and Electrical installations in progress, planned to be completed in Oct 2014
Performance Qtr to Jun 2014 Quarter to Sep 2014
% Complete 51% 53%
Amount spend for the Quarter
R59m R54m
Total spend to date R1097m R1164m
% Spend to Date** 58% 62%
% Localisation 95% 95%
Jobs 769 683
Youth Jobs 496 417
62% spend to date, of estimated R1.9bn
Construction of a pumping station and 43km of pipeline, with a diameter of 1m to deliver bulk raw water from the Mokolo Dam to Medupi and Matimba power stations, Exxaro and for the expected domestic growth in the Lephalale Municipality. The existing pipeline will be refurbished following commissioning of the new works
Project Phase Construction
Variance ExplanationOverall, the project is 16 months behind schedule. Construction delays were due to labour unrest, slow pipe supply and pipe-laying. Heavy rains experienced in Mar 2014 impacted pipe laying progress
Key risks and mitigation actions:Project delay due to poor contractor performance -TCTA entered into a Delay Mitigation Strategy with the Contractor to limit risk of further delays and to ensure TCTA is compensated for the delays caused.
Ready for Trial Operation (water delivery) moved from Oct 2014 to Jan 205 due to extension of time. Project close-out expected in Jan
2017 following refurbishment of existing pipeline
Pipe laying efficiencies improved by bringing in new subcontractors and changing some of the Contractor site staff
Project description
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MCWAP-2 OVERVIEWProject Features
• Abstraction Works on the Crocodile River (West) at Vlieëpoort near Thabazimbi
• Low lift pump station and pipeline to convey water to the balancing dams and appropriate sediment disposal facilities.
• High lift pump station and rising main pipeline (approximately 29 km) to the break pressure reservoir – capacity 100 mill m3/a (TBC)
• Gravity main pipeline (approximately 128 km) from the break pressure reservoir to terminal points close to Medupi Power Station and Steenbokpan
• River management system to manage abstractions from, and the river flow in relevant parts of the Crocodile River (West) catchment upstream of Vlieëpoort Weir
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ó The capital cost relating to various capacities are as follows:
8.3 8.8 9.3 9.8 10.1 10.7 11.3
0.00
2.00
4.00
6.00
8.00
10.00
12.00
30 mill m3/a 45 mill m3/a 55 mill m3/a 65 mill m3/a 75 mill m3/a 87 mill m3/a 100 mill m3/a
Capi
tal C
ost R
' bill
ion
Transfer Capacity
MCWAP-2A CAPEX FOR VARIOUS TRANSFER CAPACITIESCapital Cost
Excl Mpumalanga, CF3 and CF4 and
Other Users
Incl Mpumalanga, Excl CF3 and CF4 and Other Users
Incl Mpumalanga and Other Users,
excl CF3, CF4
Incl Mpumalanga and CF3, excl CF4 and Other Users
Incl Mpumalanga, CF3 and Other Users, excl CF4
Incl Mpumalanga, CF3 and CF4, excl
Other Users
Incl Mpumalanga, CF3, CF4 and Other Users
PROJECT MILESTONES : MCWAP-2ACTIVITY START FINISH
Users obtain mandate for MCWAP-2 31-Dec-12
DWS formulates WSA with Users 1-Jan-13 31-Mar-14Fiscal Liability Committee confirmation offunding strategy 28-Nov-14
Capacity MCWAP-2 Agreed 31-Jan-15
Users commit WSA with DWS 1-Jun-14 31-Jun-15
EIA Phase 2 5-Jan-15 4-Mar-16
Resolve ROD appeals 20-Apr-16 5-Dec-16
Funding procurement 31-Jan-16 31-Oct-16
Tender design-abstraction works & pipeline 1-May-15 31-Jan-16
Tender & Evaluation period 1-Feb-16 20- Oct-15
Award Construction Contract 5-Dec-16
Construction (39 months) 1-Feb-17 30-Apr-20
Commissioning 1-May-20 31-Jul-20
Phase 2 Water Delivery - 1-Nov-20
Capital Unit Charge levied in Water Tariff 1-Nov-20 31-Oct-40 19
PROJECT MILESTONES : MCWAP-2
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MCWAP-2 CHALLENGES
MILESTONE ACTIVITY MITIGATION
Securing funding for the project •Inter-departmental discussion to be confirmed through approval of TCTA’s borrowing limit application and proposed funding strategy as agreed between the various arms of government to be considered at FLC meeting on 28 November 2014.
Deciding on the MCWAP-2 transfer capacity
•Outcome of approved funding strategy will confirm the transfer capacity
Environmental authorisation •Environmental Assessment Practitioner appointed
Project descriptionConstruction of the Vlieëpoort Weir and Abstraction Works on the Crocodile River, a low and high lift pumping station, sediment disposal facilities, 128 km of pipeline to the Medupi Power Station and the Steenbokpan area and a river management system over trajectories of the Crocodile River.
Status• To be approved as a Government Waterwork.• EIA to be performed• Awaiting feedback from the National Treasury on
the borrowing limit after consultation with DoE (energy mix), DPE (custodian for Eskom), NERSA (electricity tariffs) – need commitment by government institutions to cover explicit government guarantee – talks well advanced and NT to specify institutional arrangements
ProvinceLimpopo
Jobs impact• Direct project construction jobs: 1 600 at peak
Projected cost to completion• R11,3 billion (excluding VAT) for 100 million m3/a –
Social 9%• R10,1 billion (excluding VAT) for 75 million m3/a –
Social 11% (most likely size excluding CF4)
Project Scope• Construction of Vlieëpoort Weir, Abstraction Works, desilting facilities,
low and high lift pumping stations, 128 km of pipeline and a break pressure tank and balancing dams
• Implement River Management System• TCTA to obtain off budget funding, Fiscus to fund social component• Additional yield proposed 75 (excluding CF4) [FLC’s preference] or 100
million m3/a (including CF4).
Project schedule• Agree MCWAP-2A conveyance capacity: Fiscal Liability Committee
(FLC) meeting 28 November 2014• Obtain borrowing limit from NT: January 2015• Conclude WSA and IA between parties: June 2015• Obtain environmental authorisation from DEA: March 2016• Issue WUL: January 2016• Funding effective: October 2016• Award construction contract: December 2016• Trial operation: Aug 2020• First water delivery: November 2020
Progress & Challenges:• FLC to recommend borrowing limit after consultation with DoE, DPE,
NERSA• EIA study• Project schedule delayed due to policy uncertainty regarding extent of
future energy developments in the Lephalale area and coal supply needed from Waterberg coal field to support Mpumalanga power stations
Mokolo and Crocodile River (West) Water Augmentation Project (Phase 2A)
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Groundwater – deep water aquifer
Urban and interim industrial supply
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Project Objective
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Augmentation for the MCWAP(LM, mines, ESKOM)•characterise the aquifers, •determine the groundwater potential (10km radius around Lephalale)•artificial recharge options available
The groundwater exploration of the deeper aquifer systems and associated geological structures: Question - how water moves?
at what rate?how much is available? where it can be intercepted?
Groundwater Exploration
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Drilling- 30 exploration boreholes drilledWaterberg Group• Main water strikes 120 – 270 mbgl• Final blow 0.2 – >20 L/s, ave ~6 L/s.• 6 boreholes higher than 8 L/s.• All artesian boreholes linked to
confined Waterberg aquifer (underneath the confining Ecca Formation).
Alluvial aquifer• yields of 0.7 – 10 l/s.
Ecca Formation• yields 0.05 – 0.1 l/s
Development (10km radius around Lephalale)
Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5
Scenariopump 1
boreholes
(9 l/s)
pump all Current
Accessible Yield
boreholes (8)
Scenario 2 +
2 km distance
boreholes
Scenario 3 +
1 km distance
boreholes
Scenario 4 + Moves
away from Mokolo
River + pump-rest-
pump (2y - 0.5y - 2y)
Sustainability + (Impact)Long Term
(Non)
Long Term
(Very Little)
Long Term
(Little)
Very Short term
(Large)
Short term
(Large )
Boreholes developed 0.28 1.43 1.43 1.43 1.43
Undeveloped 2.96 6.22 5.91
TOTAL VOL (million m3/a) 0.28 1.43 4.39 7.65 7.31
Further a field•Similar geology west (Waterberg) + north (Ecca) = similar result•Ecca = low yields BUT •Waterberg underneath Ecca = High yields
Rural water supply(Summary of all towns reconciliation strategies for Lephalale LM clusters)
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LOCALITY PLAN
CONCLUSIONS
• The Ga – Seleka, Witpoort, Mokuranyane and Shongwane rural clusters rely completely on groundwater resources.
• Current supply to Ga – Seleka and Shongwane rural clusters are insufficient to meet demand needs and augmentation of the groundwater resource will be required
• Groundwater for Ga – Seleka is available for supply, the aquifer may be stressed/over exploited if there is additional abstraction for irrigation
• A full hydrogeological study needs to be carried out for Shongwane rural cluster in order to identify additional boreholes to be used for abstraction.
RECONCILIATION OPTIONS
• Due to the high level of physical water losses, implementation of the WC/WDM initiatives above could effectively save some 0,365 Million m3/a
• The current schemes of Ga – Seleka and Shongwane rural clusters can be augmented through an increased development of groundwater supply. The volumes the groundwater can produce should be determined through a detailed hydrogeological investigation.
• Augmentation measures for Witpoort and Mokuranyane rural clusters are currently not deemed necessary, as beyond 2030 the communities within these clusters will still experience a water surplus.
• No surface water is utilized for domestic supply within ALL these clusters. No surface water augmentation options are foreseen.
Thank you
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