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The Project is screened as A/1. The environmental audit (EA) and environmental and social impact assessment (ESIA) reports have been disclosed on 19 December 2003 and 7 April 2004 respectively:
(a) Mine Audit: the audit of the existing mine and railway revealed a relatively small mining operation with one active pit and no significant environmental and social impacts. Identified issues include solid waste management, need for in-situ rehabilitation, domestic sewage treatment and limited aspects of H&S. These issues are addressed in the agreed Environmental and Social Action Plan (ESAP);
(b) Mine Expansion: the ESIA on the ultimate expansion plan for the Middle-Timan bauxite mine to 6Mtpa identified impacts of high-significance associated with groundwater abstraction and subsequent discharge to surface water. Such discharge would have significant impact on fish population in the receiving river. The proposed design calls for dewatering to begin in year 5 of the mine expansion (circa. 2011) and will result in high volumes from year 9 (circa. 2015). The exact impacts of the proposed dewatering are not known; however, it is clear that they would be significant and further studies are required to:
(i) identify accurate volumes of water to be extracted;
(ii) identify and review potential options for discharge of the water; and
(iii) accurately assess the impacts of the various options and identify an alternative with acceptable impacts, if available.
The proposed solution must be acceptable to the Russian authorities and the Bank. An appropriate and meaningful consultation will be held with the local population on this issue, once an acceptable solution is identified. Presenting the project to the Board without resolving this issue constitutes derogation from EBRD’s Environmental Policy; however, the proposed conditions provide adequate leverage to mitigate this problem. The loan tranche to finance the Mine Expansion would not be disbursed until such water management plan has been designed and disclosed to the public to the satisfaction of the Bank, which is anticipated to occur towards year end 2004;
(c) Early Works: since the Early Works may be evolutive in scope depending on the proposed design for the Sosnogorsk refinery or even sacrificial if the refinery eventually does not go ahead, SUAL will provide a feasibility study for any material physical construction components of the Early Works with accompanying environmental impact assessment satisfactory to the lenders. If studies indicate that the refinery project is not feasible, any early works will be fully reclaimed/restored.
There is an Environmental Impact Assesment available for this project.
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