• 40 permanent operating staff, and 60-80 temporary construction jobs  Jobs created

• 6 000m3  Volume of wastewater treated

• 2 000m3 Volume of water supplied

• 9 846 Number of people supplied wth water

The CI2 investment will be used for the construction and operation of the Arnot project, which aims to treat contaminated wastewater from a closed coal mining operation in order to mitigate pollution of nearby water resources and increase potable water supply. The Arnot project is projected to treat 6ML/day of which an estimated 2ML/Day will be made available to the local municipality with the remainder discharged into a local watercourse, thereby increasing access to potable water for local communities and improving water quality.

CI2’s investment will contribute to the South African government’s efforts to improve local water resources and increase water supply. South Africa is identified as a water scarce country, which will only be exacerbated by climate change. The National Water and Sanitation Master Plan identifies acid mine drainage as one of the five top priority water quality issues in the country and the National Water Resources Strategy (2023) identifies mine decant water (acid mine drainage) as both a significant source of pollution of water resources and an important source of water to increase water supply in the country. Treating decant water from the closed Arnot colliery to potable standards will not only improve the quality of water resources and aquatic ecology, but also provide potable water to communities. The investment represents an attractive opportunity for CI2 to contribute positively to climate change adaptation through increased access to water and protection of water resources in a water scarce and water-stressed country.

This opportunity to invest in the Nafasi-Seriti DevCo, and the construction and operation of the Arnot Project has been classified as Category B in accordance with CI2’s E&S risk categorisation; this is equivalent to the International Finance Corporation (IFC) E&S risk category B. Adverse E&S risks and/or impacts are limited, generally site-specific and largely reversible which can be effectively managed in line with available international standards. IFC Performance Standards (PS) 1-4 are applicable at a DevCo level, with PS 5-8 applicability being determined on a project by project basis. For the case of the Arnot Project, IFC PS 1-4, and 6 are applicable, and the key E&S impacts and risks relate to the management of E&S risks, and protecting and conserving biodiversity at the project site.

The project does not require any resettlement, and there are no indigenous peoples in the project area of influence. IFC PS5 and 7 are therefore not applicable, and IFC PS8 (cultural heritage) is not triggered beyond the standard requirement for a “chance finds” procedure.

Disclosures