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JOINT COMMITTEE ON COMMUNICATIONS, MARINE AND NATURAL RESOURCES debate -
Tuesday, 16 Dec 2003

Vol. 1 No. 27

Directive on Extractive Industry Waste Management: Presentation.

We will hear a presentation from officials of the Department of Communications, Marine and Natural Resources, followed by a question and answer session. I welcome Mr. Michael Daly from the Department and I invite him to introduce the officials from the Department. I draw members' and witnesses' attention to the fact that members have absolute privilege but this same privilege does not apply to witnesses appearing before the committee. It is generally accepted that witnesses have qualified privilege but the committee cannot guarantee any level of privilege to witnesses appearing before it.

Furthermore, members are reminded of the long-standing parliamentary practice to the effect that members should not comment on, criticise or make charges against a person outside the House or an official by name or in such a way as to make him or her identifiable. Will Mr. Daly begin by introducing his officials? I understand that his presentation is reasonably short and that he will take some questions.

Good afternoon Chairman and members. Our small delegation comprises, on my left, Dr. Ben Dhonau, a senior geologist who is experienced in this area and knowledgeable on the subject; Mr. Michael Enright, assistant principal in the Department and Mr. Nick Hoffman, executive officer. I am a principal officer at the Department. Our presentation will take approximately ten minutes.

Dr. Ben Dhonau

I will outline the reasons this directive has been introduced, give a short outline of its content and some indication of the implications for this country.

For many years the EU was not faintly concerned about extractive industry waste since it was regarded as outside the scope of its legislation. The reason this changed was a number of serious incidents which involved mine waste. The first was at the Los Frailes copper, lead and zinc mine in Spain which resulted in two million tonnes of tailings, which is mine processed waste, and four million cubic metres of contaminated water getting into the local river. The second was the Baia Mare gold mine in Romania, where approximately 120 tonnes of cyanide and heavy metals escaped into a tributary of the Danube. Both were the result of a failure of tailings dams. The potential implications of these incidents were serious because the Los Frailes escape threatened Doñana National Park, which is a site of great natural wildlife importance and the Baia Mare incident caused a major fish kill in the Danube. Neither incident turned out to have long-term significance, especially since Boliden Limited, which owns Los Frailes, carried out a large and expensive clean-up job which cost the company and the local provincial authority in excess of $50 million. It is good to try to avoid such expenditure.

These incidents prompted the Commission and the Parliament to look hard at the EU's position. When the issue was examined, it was found there was no appropriate legislation. Interpretation was carried out on existing legislation, particularly the waste framework directive, but it was found that it only includes very general provisions as to how to deal with waste. It was and is doubtful how far it applies because of some specific exemptions relating to mining.

The land-fill directive was under consideration at the time and some mining and quarrying waste was brought into it. However, it is not intended for this sort of waste and there has been a general acceptance that it was unsuitable. The other relevant legislation is the Seveso directive which deals with major accident planning and response, which specifically excluded mining from its ambit. All in all, there was a recognition of a very large waste stream with limited EU control on it. While some countries have good systems for regulating this, including Ireland, not all of them do. The Commission's response to this was to produce this new directive as one of a package of measures. The others were to amend the SEVESO directive to bring some mining operations into it and arrange for the IPPC bureau to produce a best available technology note, which will set out the state-of-the-art system for the management of mine tailings and waste rocks. The SEVESO directive is now agreed on these two points. The BAT note is very nearly finished and will complement the proposed new directive by guiding authorities and operators as to the best way to manage the most sensitive mining wastes.

The directive is concerned with setting minimum requirements to prevent extractive industry waste from causing problems for people or the environment. It is especially concerned with preventing soil and water pollution and ensuring the stability of any structures for waste disposal facilities to prevent major accidents as far as possible, and, when there are any, to have procedures to clean up afterwards. The general structure is not prescriptive in the methods of waste management to be used. This is because there is a wide range of extractive industry wastes and circumstances in which one can find mines and quarries so it was accepted that one could not set detailed physical rules.

Moreover it sets out the procedures that must be applied to examine the wastes and to ensure that operations producing them will meet the objectives of the directive. For example, there is a requirement in the directive that regulatory authorities ensure that operators employ competent people to manage all their waste and it defines who is competent. We strongly support this approach because it will lead to proper cost effective solutions for a very diverse industry. It covers a wide range of materials apart from what are normally thought of as minerals to include sands and gravels but only on shore. Offshore waste is far too different to try to encompass in the same instrument. Some processing away from mines is included and the main example of this is the Aughinish alumina refinery on the Shannon. It covers everything during a mine or quarry operation and the closed sites but exploration for minerals has been excluded.

Waste, as defined in the waste directive, is quite extraordinarily complex and at present unsatisfactory because of a recent European Court judgment on which we have given the committee a separate note. If I start talking about that we will be here for another two days. Broadly speaking it depends on the general level of hazard and at the lowest level all operators will have to produce waste management plans under which they must characterise their waste so that the permitting authorities will be able to see that what they produce is as they state and not something different. All member states will have to ensure that all operations comply with standards for the construction of new facilities and to prevent soil and water pollution. The next level up covers just about everything else and those operators must be specifically permitted and produce guarantees that when they close the money will be available to ensure sites are properly rehabilitated and do not cause long-term environmental problems.

For those where an accident occurs there will be serious consequences for the environment or potential loss of life there must be a major accident plan to deal with this eventuality. This process requires considerable public participation. The directive does not say very much about closed sites. It is mainly a study of how to try to deal with them and there is no requirement for member states to take any specific action on it.

There are four major sites here producing large quantities of waste, the zinc mines at Navan, Galmoy and Lisheen, and the Aughinish alumina refinery on the Shannon producing between them about four million tonnes of waste a year. In the mines half of this is used as backfill, to go back underground to support the roof of the workings and prevent collapses and surface subsidence. All of these fall into the highest category of control all the way up to needing major accident plans. The EPA already regulates them to that level so the effects for them should be quite small because they should not have to do anything extra. This would be true of many parts of Europe but not everywhere, particularly the accession countries in eastern Europe some of which have large mining industries and the legacy of the communist system which in those days was not very interested in environmental control. About 500 quarries will be affected. Most of these use small amounts of inert waste so they will need to produce only waste management plans and demonstrate compliance with general standards.

The Commission estimates the general cost at about 1% of turnover which is not significant although the costs will be higher for some operations, particularly those which wash their produce to clean it and separate out fine grain materials. There will have to be additional administration nonetheless probably at local authority level since the management plans are going to have be examined to ensure they are acceptable and there will have to be more monitoring. The existing operations will have four years to comply.

This comes under the co-decision making process whereby the Parliament, the Commission and the Council of Ministers must all come to an agreement. The first meeting of the environmental council meeting working party took place in November and the first reading in Parliament will be in January. It has been agreed with the Department of the Environment, Heritage and Local Government that this directive will form one of the priorities for the environment council and the aim is to reach a political agreement at the June council meeting.

In general terms we are very supportive of this proposal which is an appropriate response to the problems shown by the incidents at Los Frailes and Baia Mare and it has resulted from extensive stakeholder discussion with the Commission which has gone a long way to try to balance the needs of the industry, of member states and the NGOs. Changes to the text will be required because of the problems with definition of waste. We hope to meet our objective on this which is to keep a balance between environmental protection and the need to maintain competitiveness of an industry that is essential to continued development here.

Does this EU directive apply to abandoned mine sites? For example, SenatorFinucane referred to Silvermines which we will visit next January as a result of a request to the committee. Is it retrospective or does it apply?

Dr. Dhonau

Yes, to a small degree. The original proposals from the Commission said that there would be a requirement on member states to produce an inventory of all abandoned sites, or closed sites because not all are abandoned in that one knows who owns many of them. That was to be followed by classification, to look at those that were causing, or might cause, serious problems with a requirement on member states to remedy them. In our pre-negotiation positions we could see the reason for this because I have been to Silvermines and the other problem sites. It is necessary to do this. It is a great, world-wide problem as I know from working with UNEP on the subject. We had reservations on the timescale because through our experience with Silvermines we know how long it takes. However, the Commission dropped those proposals from the directive and have only introduced some limited proposals for them to carry out studies on how to prepare inventories and remediate sites.

I wish to put Dr. Dhonau on notice that we will be requesting him to appear before this committee again to answer specific questions on abandoned mines. The committee will also be taking the opportunity to inspect them on site and we will have questions to ask him afterwards.

I thank Dr. Dhonau for his presentation. I agree with Dr. Dhonau's point that the proposed directive does not deal with exploration activities such as oil and gas wells. The establishment of a gas-processing terminal on the northwest Mayo coast is controversial, as materials need to be separated from the actual gas flow and dealt with. Would the treatment of that type of waste be included in the directive?

Dr. Dhonau referred to four examples, one of which was Aughinish alumina, which is a sensitive one. Can Dr. Dhonau outline what the storage facilities are there? What type materials need to be stored; how long will they have to be stored and what is the ultimate end treatment of products? Are there reservations that the Government should have about the directive? What are Dr. Dhonau's principal reservations about the directive?

Dr. Dhonau in referring to the Seveso directive claimed that some mining activities would be covered by it. Which mining activities will and will not be covered by it? This prompts the question as to why only some activities will be included and not all of them. As the directive dates back to 1975, I would have thought that the directive would be updated to cover all types of mining activity. The EPA is involved in the issuing of permits but can Dr. Dhonau elaborate as to what it will do? He referred to the role local authorities will have, particularly with the 500 quarries around the country. My concern is that the local authorities would not have the expertise to deal with these matters. How can this be achieved?

Dr. Dhonau said that the timeframe for agreement would be in June 2004 at a Council meeting. When is the directive then enforced? The directive refers to three years after agreement as to the timeframe. Why is this the period of time before the directive goes into operation? Is Dr. Dhonau concerned about the accession states and this directive, as many of them have not conformed to the waste directive of 1991? I presume Dr. Dhonau referred to the extractive industry at Aughinish alumina because it leaves a by-product known as "red mud".

Dr. Dhonau

On offshore processing at the gas terminal, I do not know and I doubt anyone else does either. I was asked about my reservations. That area of the directive is singularly unclear as to what it does include. It is one of the issues that will be clarified because in a number of areas there is more than one interpretation. We can possibly live with any of them. What we cannot live with is if it turns out to be something different to what we thought it was after it is agreed. One major objective we will have in the negotiations is to get clarity on issues of that sort. My expectation is that it probably would not apply. However, this is a case where we will have to get clarity on what exactly "further processing" does mean. It certainly does not apply to any of the offshore facilities. However, when the directive refers to waste transported off site we must ask what that exactly means. I am sorry that I cannot give a straight yes or no answer to Deputy Eamon Ryan because we simply do not know.

At Aughinish alumina bauxite, imported from Guinea, is treated to a process using highly caustic chemicals and high temperatures to extract aluminium dioxide - alumna - which is the final raw material for producing aluminium which is done elsewhere. It produces a large quantity of "red mud" which is an inert material and is stored on the surface. Much of the water is taken out of it and is then deposited on an impermeable liner that is a high tech version of a bin liner. Members should not start thinking it is full of holes as it is not. This liner stops any of the highly reactive chemicals getting out as they all flow to the edge and are collected. The material will be there forever. Up to 600,000 tonnes of red mud are produced every year at Aughinish alumna where it will stay. When parts of the storage area are full, it will be then vegetated to give a proper cover and control. It will be there forever and will have to be managed as such. In the business one hears of walkaway solutions for mine and similar wastes. However, there is no such thing, as there will always have to be some level of permanent maintenace. This must be looked at in terms of the bonds we seek to ensure that there will be finance available to look after these sites forever.

One of my main concerns is to ensure that there is clarity in the directive. The biggest reservation I have is on the definition of waste. The European Court of Justice has redefined waste to encompass what many thought was waste out of the definition, which means that parts of this directive are meaningless. People, therefore, have been able to claim that this is not management of extractive industry waste. We would support a return to what everybody thought was meant, rather than what the European Court of Justice has now said was meant by what was written. That is critical. We do not have reservations on its scope. However, other member states probably will. This is not an issue on which there is any official position yet, but this whole question of what is to be done with closed sites will have to be examined a good deal further. I cannot say why the Commission took the proposals out. We did not suggest that it should take them out.

I would like to come back on the Corrib, as it is something in which I am involved. The terminal will be the subject of planning. Many of the waste issues will be addressed in planning. An integrated pollution and prevention control (IPPC) licence from the EPA will also be required. The EPA licence is usually not applied for until planning permission has been obtained. The Department's consent process for granting permits includes a requirement for planning permission and an IPPC licence. In terms of the main issue, it would not qualify under the waste directive. There is not a waste issue here. The nature of the waste is the only issue. Some of our consents have already recommended that this be done to the best environmental standards. The decision also stipulated the discharge location, which is outside the special area of conservation.

Many waste issues will be addressed as part of the planning processes. When it returns to planning, which it will shortly do, it will be subject to the Planning and Development Act 2000, while on the previous occasion it was subject to the previous Planning and Development Act. I do not know whether that is of assistance.

Dr. Dhonau

To take the first example, Seveso, the operations that will be included will be any mining operation using dangerous substances in terms of chemical definitions, of which there will be many, and also any operations producing significant volumes of tailings. As to why that was picked, I was not involved in the decision, so I cannot tell the committee. That was the Commission's proposal. It came largely from the perception that those are the ones most likely to cause major accidents or, to rephrase, to have really serious consequences if there is an accident. That is what happened in the two incidents that triggered off this reappraisal of the law.

On the role of the EPA in relation to Ireland, all operations, which involve the extraction of minerals under the Minerals Development Acts, are subject to IPPC licensing by the EPA unless they are very small. There is a small threshold for the non-metal operations but any other operation must have an IPPC licence. For whatever reason, the Department of the Environment, Heritage and Local Government has chosen not to include large quarries within the IPPC licensing system so not everything is under the remit of the EPA. The question of exactly who will enforce it will have to be a matter for discussion with the Department of the Environment and Local Government. My understanding is that it will be local authorities for non-EPA issues. However, that may change.

On the timeframe, as far as I can understand, it seems to be the sort of fairly normal timeframe that is produced and suggested by the Commission for giving countries time to get their regulations in place and get themselves set up. I also understand that it is traditionally something on which there is a great deal of argument at the Council between countries who would like more time to do these things.

The other question was about new members. They will have a great deal of difficulty. Some of their operations, not to put too fine a point on it, are absolutely terrible. There will be a real dilemma there because there are operations which have little money, quite often are uneconomic in full market economy terms, and large employers in areas with absolutely no other employment, and are causing very serious environmental problems. On the other hand if the regulations are rigidly enforced they will have to shut and put many people out of work. The companies and, I suspect, the governments will say they have no money to clean up the mess. There is a big problem in some of the eastern European countries.

I have a quick question. I was very interested in the red mud. Am I to understand that this is non-toxic?

Dr. Dhonau

Yes.

Has any research been done on possible uses for it, or will it be left to lie there inert for the rest of time?

Dr. Dhonau

There has been some research. Being a non-mine issue, I am not a total expert on it. I happen to know that one of the uses being examined is that of neutralising the acid drainage that can come from old mines. That is a problem at, say, Avoca. One of the things that has been under test in Australia is whether it could be a very effective neutraliser of that. Nobody has any very good use for it and there are enormous volumes of it produced all around the world. It is inert. However, two things must be examined very carefully. One is that the chemicals used are extremely caustic, so if the drainage is not managed, they will do no end of damage. The second is that something may be chemically inert but if it is physically unstable it can do an enormous amount of harm because if there is a major escape of it, it will blanket everything and kill everything off.

I thank Mr. Daly and his staff for their presentation. It has been very informative. Is it agreed that the committee will report to the EU scrutiny subcommittee on its deliberations? Agreed. I propose that we suspend for five minutes to give the Minister and his other officials time to prepare for their appearance before the committee.

Sitting suspended at 4.18 p.m. and resumed at 4.23 p.m.
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