China - Nanjing Steel Converter Gas Recovery Project (Vol. 2 of 4) : Supplemental environmental impact assessment

Supplemental EIA SUPPLEMENTAL EIA August 2004 PAGE 1 OF 31  Supplemental EIA Table of Contents 1.1 SEPA: Letter to approve of the EIA ....................................................................3 1.2 JiangSu Environmental Protection Bureau .........................................................5 1.3 Nanjing Environment Protection Authority.......................................................11 2.1 Location of the project site ................................................................................15 2.2 Selection of recovery technology for converter .................................................15 2.3 Non-project alternative ......................................................................................17 3.1 The existing situation of Pollution......................................................................18 3.2 Regulatory Framework......................................................................................21 3.3 Exiting Pollution loads .......................................................................................22 3.4 Future pollution loads........................................................................................22 3.5 Conclusion ........................................................................................................23 PAGE 2 OF 31  Supplemental EIA Chapter 1 National Procedures 1.1 SEPA: Letter to approve of the EIA State Environmental Protection Administration Document Environment supervision [2001] No.98 The Reply for Review Opinion on EIA for Wide Plate (Coil) Project of Nanjing Iron & Steel Group Co. Ltd, Nanjing Iron & Steel Group Co., Ltd "Application of reviewing and examining for Environmental Impact Report of Wide Plate (Coil) Project" (NISCO company environment [2001] No.23) from your company and "Pre-examination opinions for Environmental Impact Report of Wide Plate (Coil) Project of Nanjing Iron & Steel Group Co., Ltd" (Jiangsu environment management [2001] No.41) made by Environmental Protection Department of Jiangsu Province have been received. After investigation, the reply for reviewing opinion on "Environmental Impact Report of Wide Plate (Coil) Project of Nanjing Iron & Steel Group Co., Ltd" (hereinafter referred to as Report) is shown as follow: 1. Agree to the opinion of pre-examination made by Environmental Protection Department of Jiangsu Province. Under the condition of eliminating 15t converter, a new 120t oxygen bottom & top combined blowing converter, a set of facility for hot metal pretreatment, a LF refining furnace, a set of RH vacuum degassing facility, a wide slab caster with medium thickness and a set of modern wide plate (coil) rolling mill will be built. After project completion, major pollutants in waste water and waste gas throughout the plant will be reduced greatly. As the result, the discharging for kinds of pollutants will be in conformity with the gross control figure issued by local authority. After fulfilling the treatment measures for various pollutants mentioned in the Report, the permission for project construction can be given in regard to the viewpoint of environmental protection. 2. The fulfillment of following works should be highlighted during the project construction 2.1 The environmental management in the construction period should be strengthened to reduce the influence caused by raised dust and noise on ambient environment. 2.2 The systematic improvement for piping net of water supply and drainage in plant area should be made to reinforce the water-saving works with the target of above 90% of water circulation availability rate in whole plant. 2.3 Comprehensive treatment for general outfall of waste water should be carried out to ensure the standard discharging for kinds of pollutants. The belt type floating oil recovery machine will be set in Strip Plant to reduce the discharging amount of petrolic substance. 2.4 The uncontrolled powder and dust emission in workshop sections of coke oven body, converter steelmaking, arc furnace etc should be strictly controlled and the corresponding treatment measures for dust collection should be fulfilled as well. The renovation project for coke oven gas desulphurization should be performed and the availability rate for recovered converter gas should be increased as well as the overflow of cleaning water for blast furnace gas should be avoided. 2.5 Performing the prevention measures for noise to ensure the noise in plant area meets the requirement of corresponding functional zone. 2.6 Appropriate disposal for solid waste should be conducted to increase the general PAGE 3 OF 31  Supplemental EIA availability rate of solid waste. 2.7 According to national relevant regulations, the standardized treatment for pollutants discharging ports should be carried out. 3. "Three simultaneity" rule of environmental protection which means design, construction and startup of cooperative constructed environmental protection facilities and of major project should be conducted simultaneously, shall be strictly fulfilled in the project construction period. After project completion, the construction unit should apply for the acceptance of environmental protection facilities according to stipulated procedure. The project can be put into operation only after passing the acceptance inspection. 4. Environmental Protection Department of Jiangsu Province and Nanjing Environmental Protection Bureau will take the responsibility for performing environmental protection supervision and inspection during project construction. May 12th, 2001 Seal: State Environmental Protection Administration Keywords: Environmental protection Supervision Metallurgy Report Reply Copy to: National Development & Planning Commission, Environmental Protection Department of Jiangsu Province, Nanjing Environmental Protection Bureau, Beijing Environmental Assessment United Company State Environmental Protection Administration Issued on May.15th 2000 PAGE 4 OF 31  Supplemental EIA 1.2 JiangSu Environmental Protection Bureau Inspection & Acceptance Opinion for Standard Emission of Industrial Waste Gas in Nanjing Iron & Steel Co., Ltd According to the requirements of " Final Acceptance Method for Environmental Protection Project (Facility) in Jiangsu Province", an inspection team which including Environmental Protection Department of Jiangsu Province, Economic Trade Commission of Jiangsu Province, Jiangsu Environment Monitoring Center, Nanjing Environmental Protection Bureau, Nanjing Environmental Supervise Detachment and Nanjing Environmental Monitoring Station etc. made an acceptance inspection for standard emission of industrial waste gas in Nanjing Iron & Steel Co., Ltd on Jul.11th, 2000. The inspection & acceptance team listened to the report from NISCO about the situation of treating industrial waste gas pollution within a stipulated duration to meet the standard emission, the report from Jiangsu Environment Monitoring Center about the monitoring situation for acceptance of industrial waste gas standard emission in NISCO and the introduction from Nanjing Supervise Detachment about routine monitoring and supervision. Furthermore, the team carried out the inspections on fume and dust treatment system in pelletization production workshop, running situation of environmental protection treatment facilities in No.1 and No.2 Sinter plant etc (fume and dust treatment system for charging and discharging end in analyzing workshop, fume and dust treatment system for 1#, 2# and 3# converter) and the situation about waste gas vents disposal. By inspection, the conclusion is that NISCO invested totally 5.675 million RMB in the works of industrial waste gas treatment within a stipulated duration to achieve the standard emission. The treatments for 6 industrial waste gas pollution sources which fail to meet the standards have been carried out, which includes the fume and dust treatment system for 3 converters, waste gas pollution source in 1 sinter machine discharging end, 1 boiler with the capacity of 35t, dust and fume in coke oven gas and so on. The original treatment facilities having been used for 14 industrial waste gas pollution sources are remained. By monitoring of Jiangsu and Nanjing environment monitoring centers for 14 vents, the result is shown that the emission concentration of fume (powder) and dust is lower than 190mg/Nm3 and the total emission amount of fume (powder) and dust is 1167.5t per year in the pollutants of industrial waste gas emission in NISCO. The concentration of pollutants emission is in accordance with the requirement stipulated in national air pollutants emission standard and the total emission amount meets the gross control requirement of Nanjing Environmental Protection Bureau. The treatment for industrial waste gas vents has been carried out according to the requirements of standardized treatment, which basically meets the request of "Pollutants vent setting and standardized treatment management methods in Jiangsu province". The opinion of inspection team is that NISCO pays a lot of attention to environmental protection works, and established a relationship between the performance of environment management and enterprise internal examination. Under the adverse circumstance of profit decreasing and fund shortage, NISCO still invests a big amount of money in industrial pollution sources treatment and improvement as well as adopts cleaning fuel instead of part of normal fuel to reduce the emission amount of air pollutants. According to the site inspection and actual monitoring of Jiangsu Environment Monitoring Center, the quality of facilities for industrial waste gas pollution treatment are good and the operation are stable, thus the treatment requirement for industrial waste gas pollutants emission can be met. Various PAGE 5 OF 31  Supplemental EIA regulations for environmental management are sound and special mechanism for environmental supervision and monitoring have been established. The inspection materials for each item are completed and basically meet the stipulated requirements. Based on above mentioned evidences, the inspection team agrees that the environmental protection acceptance for standard emission of industrial waste gas pollutants in NISCO has been passed. Nevertheless, the inspection team offers the following opinions for existing shortage: 1. The routine management and maintenance should be strengthened to ensure the operation of various treatment facilities work in good condition and the pollutants emission meet the standard stably. 2. The necessary measures should be taken to assure that standard emission can be reached stably for converter fume and dust, meanwhile, the equipment revamping should be organized and performed as soon as possible to thoroughly eliminate the emissions which are in excess of standard so as to meet the standard stably. 3. Speeding up the progress of construction for pollution treatment facilities to be revamped and/or renovated and put these facilities into operation as soon as possible. 4. The standardized treatment should be carried out for the pollutants vents which are only meet the requirements partly and Jiangsu Environment Monitoring Center should be entrusted to make the supplementary measurements for renovated facilities and the pollution sources emission without monitoring data. The monitoring supplementary report should be submitted by the end of September and only after getting the approval from environmental protection administrative department, can the acceptance formality be handled. Head of Inspection team Jul.11th, 2000 PAGE 6 OF 31  Supplemental EIA Opinion for Examination and Approval Member List of final acceptance inspection team for environmental protection project (facilities): Unit Name Working Technical title Signature position Jiangsu Environmental Xue Renjie Xue Renjie Protection Bureau Xu Hailing Wu Hailing Economic & Trade Zhang Zhang Commission of Qinghua Qinghua Jiangsu Province Jiangsu Monitoring Chang Chang center Weimin Weimin Nanjing Environmental Liu Tie Liu Tie Protection Bureau Nanjing Environmental Zhang Ning Zhang Ning Supervise Detachment Nanjing Monitoring Wang Wang Cneter Dongyin Dongyin Opinion for examination and approval given by environmental protection governing department: According to the opinions from inspection & acceptance team, NISCO has taken measures for existing problems and made supplementary measurement for improved pollutants emission. Based on these facts, our department in principle agrees to the opinion given by inspection & acceptance team. Therefore, the environmental protection acceptance for standard emission of air pollutants in NISCO has been passed. NISCO should strengthen the routine environmental management to intensify the results of standard emission. Concerning the standard emission for converter fume and dust can not be realized stably, the measures for improvement should be taken to complete and achieve the stable standard emission by the end of Jun 2001 so as to thoroughly eliminate the uncontrolled fume and dust emission. Unit Seal: Environmental Protection Department of Jiangsu Province Oct.27th, 2000 PAGE 7 OF 31  Supplemental EIA Nanjing Iron & Steel Group Co., Ltd Inspection & Acceptance Opinion for Standard Discharging of Industrial Waste Water in Drainage Area of Yangtze River According to the requirement of "Inspection and acceptance methods for standard discharging of waste water discharged from industrial pollution sources in Drainage Area of Yangtze River in Jiangsu Province", on Jun.14th .1999, an inspection team which including Environmental Protection Department of Jiangsu Province, Environment Monitoring Center of Jiangsu Province and Nanjing Environmental Protection Bureau made an acceptance inspection regarding standard discharging of waste water in drainage area of Yangtze River in NISCO. The inspection and acceptance team listened to the report from NISCO about the situation of standard discharging of waste water in drainage area of Yangtze River and the report from Environmental Monitoring Center of Jiangsu Province about the monitoring situation for standard fulfillment. The team carried out the site inspections on working situation for environmental protection facilities such as coking effluent treatment device, treatment facility for turbid circulating water of No.1 Casting, converter dedusting water circulating treatment system, turbid circulating water treatment system in Plate Plant, treatment facilities for slag flushing water and cleaning water for blast furnace gas etc as well as the treatment situation for 3 outfalls of WS-020401, WS-020405, WS-020406. By comprehensive discussion, the inspection team concluded that NISCO pays high attention to the treatment and standard fulfillment works for waste water in drainage area of Yangtze River. The works have been carried out strictly following the requirement of national and provincial concerning standard discharging of waste water discharged from enterprises which generate pollutants in drainage area of Yangtze River. The operation of environmental protection facilities is good and the treatment results are good. The major pollutants of COD, oil and volatile hydroxybenzene etc meet the discharging standards. All the member of inspection team therefore reached an agreement that the inspection for acceptance has been passed. The details are shown as below: 1. With the characteristic of big plant area and many separate pollution sources, NISCO took treatment measures for each individual pollution source separately. Therefore, the treatments for all industrial waste water have been conducted. 2. By monitoring, the concentration of major pollutants in industrial waste water discharged form NISCO is in conformity with the requirements stipulated in "Water Pollutants Discharging Standards in Iron & Steel Industry". 3. In conjunction with the works for standard discharging, the original 9 outfalls have been merged and treated by NISCO. The improvement for 6 outfalls remained has been performed according to the requirements of outfall standardized treatment; meanwhile, 2 flow meters and 1 COD online monitor have been installed. 4. NISCO established a sound environmental management network and made kinds of regulations and rules for environmental management. The materials provided for inspection & acceptance are complete and standardized, which are in accordance with the acceptance requirement. 5. Requirement and suggestion 5.1 NISCO should speed up the technical innovation step for key problems of treatment for ammonia and nitrogen pollutants in waste water generated from coking process and do their utmost to fulfill the standard discharging by the end of this year. 5.2 The standardized requirements should be respected in the outfalls, so the devices of flow meter for 4 outfalls left should be installed. 5.3 The responsibility training for operator working post should be strengthened so as to PAGE 8 OF 31  Supplemental EIA ensure the stable operation for all treatment facilities and standard discharging for all kinds of pollutants. 5.4 The treatment for converter cooling water should be further strengthened to increase the water circulation rate and reduce the amount of waste water discharged to outside. Head of Inspection team Jun.14th, 1999 PAGE 9 OF 31  Supplemental EIA Opinion for Examination and Approval Member List of final acceptance inspection team for environmental protection project (facilities): Unit Name Working Technical title Signature position Environmental Jiang Wei Manager Protection Bureau of assistant Jiangsu Province Xu Hailing Engineer Metallurgy department Bao Jinying Vice manager of Jiangsu Province Jiangsu Monitoring Gao Beilei Engineer center Nanjing Environmental Liu Tie Engineer Protection Bureau Wang Fucai Chief engineer Teng Zhishi Engineer Opinion for examination and approval give by environmental protection governing department: Agree to the opinions from inspection & acceptance team. Wang Yongning Unit Seal: Nanjing Environmental Protection Bureau Jun.18th, 1999 PAGE 10 OF 31  Supplemental EIA 1.3 Nanjing Environment Protection Authority Reviewing Opinion on the Fulfillment Situation of Environmental Protection Law in Nanjing Iron and Steel Co., Ltd Nanjing Iron and Steel Co., Ltd (NISCO) plans to increase A shares, it therefore applies for the reviewing opinion issued by our bureau regarding the fulfillment of environmental protection law, we hereby made an inspection based on the relevant regulations. As the checking result concluded by our bureau, NISCO can persist in the guideline of keeping the balance among economic, social and environmental development. On the aspect of project management, the national investment and industry policy are respected and the national and local relevant regulations are observed as well. During the production and management activities, the requirements of environmental standards can be met and no administrative penalties caused by breaking the relevant environmental protection laws and/or statutes. Nanjing Environmental Protection Bureau Jan.19th, 2004 Seal: Nanjing Environmental Protection Bureau PAGE 11 OF 31  Supplemental EIA Nanjing Environmental Protection Bureau Opinion List for Reviewing the Fulfillment of Environmental Protection Law Seal: Nanjing Iron & Steel Co., Ltd Company being checked Nanjing Iron & Steel Co., Ltd Governing department Address Xie Jia Dian, Dachang Dist. Nanjing Major products or operating items Rolled steel Authorized representative Xiao Tongyou Age 54 Gender Male Contact with Wang Weiqing, Working Department Tel 7792100-4210,4345 Zhang Shankang position manager The reason for inspection Increasing A shares of "NanGang" stock Major situation for pollutants discharging and treatment Declaration for pollutants Declaration has been given in due time and the sufficient discharging and the situation for discharging fee has been paid. payment of discharging fee Seal: Nanjing Environmental Supervise Detachment Environmental management The environmental management has been performed and the situation for constructed project situation is good. Running situation for Environmental protection devices are working in good conditions. environmental protection devices Seal: Nanjing Environmental Supervise Detachment Whether has the penalties for breaking environmental protection law in recent 3 years Opinion of environmental protection department in grass roots Reviewing opinion given by Handled by: Liu Tie Responsible person: Nanjing Environmental Seal: Nanjing Environmental Protection Bureau Protection Bureau PAGE 12 OF 31  Supplemental EIA Opinions for Inspection & Acceptance On Jun.15th, an inspection & acceptance team organized by Nanjing Environmental Protection Bureau made a standardized and strict inspection for the solid waste pollution treatment in NISCO according to the requirement of "Acceptance methods of solid waste pollution treatment within a stipulated duration for industrial pollution sources in Jiangsu Province". With the inspection procedures of hearing firstly, looking secondly and checking thirdly, the members of inspection team offered the following opinions after a careful inspection on 5 checking items: 1. NISCO paid high attention to solid waste treatment and the fulfillment of such job is early and good. The investment in solid waste treatment is big and the method of combining treatment with comprehensive utilization has been adopted. 2. The strict management for solid waste and the declaration & registration rules have been established. The record is standardized and complete. 3. With the adopted cleaning process and comprehensive utilization of equipment, the absolute generated amount of solid waste discarded from enterprises has been reduced distinctly. 4. The storage yard for waste solid has been set according to the treatment requirement and the standardized management has also been performed to make the identification marks available. 5. The acceptance requirements are fulfilled and therefore the final acceptance is gained. 6. Hoping that NISCO will continue to keep the high level on solid waste treatment and make progress actively. Head of the inspection team: Wang Yongning (signature) Jun.15th , 2000 PAGE 13 OF 31  Supplemental EIA Opinion for Examination and Approval Member List of final acceptance inspection team for environmental protection project (facilities): Unit Name Working Technical title Signature position Nanjing Environmental Wang Yongning Wang Yongning Protection Bureau Nanjing Environmental Liu Tie Liu Tie Protection Bureau Nanjing Environmental Wang Shanfang Wang Shanfang Protection Bureau Nanjing Environmental Zhang Linhong Zhang Linhong Protection Bureau Nanjing Environmental Ge Jian Ge Jian Supervise Detachment Opinion for examination and approval given by environmental protection governing department: Unit Seal: Nanjing Environmental Protection Bureau PAGE 14 OF 31  Supplemental EIA Chapter 2 Alternative Analysis 2.1 Location of the project site There are two option of the project site: existing place or area close to Yangtze river. The existing place is hilly country. The land to be requisitioned is 44.2835 hectares. About 160 dweller houses need to be resettled. The hills should be cut and the ground should be leveled off. The area close to Yangtze river is bottomland. The river bank should be built and a large amount of foundation treatment should be done. The Chemical Plant and Hot Stewed Slag Plant as well as some dweller houses should be resettled. The reason for choosing existing place: The workload and the compensation fund for resettling in existing place is relatively less. The workload of foundation treatment compared with the area close to river is relatively less. The transport is convenient. The existing place is close to Ningtong highway and truck transport is convenient and the cost for material flow is cheap. 2.2 Selection of recovery technology for converter 2.2.1 Analysis of converter gas cleaning and recovering technique There are two means for converter gas cleaning and recovery: wet-type and dry-type system. The OG technological process of Japan represents the typical wet-type system, which is similar to the wet-type system extensively used in China. The dry-type gas recovery system, named LT, was developed by Lurgi Ltd cooperate with Thyssen Ltd of German in 1980's. 2.2.1.1 Technological process 1) Wet