Latest news with #TCTA
Mail & Guardian
3 days ago
- Health
- Mail & Guardian
Why Boksburg Lake turned red: Acid mine drainage confirmed as cause
The reason the Boksburg Lake on Gauteng's East Rand has turned a startling rusty red is toxic acid mine drainage (AMD) is seeping into the waterway from the Central mining Basin. (City of Ekurhuleni) The reason the This was confirmed by the state-owned An AMD decant happens when the acidic mine water 'daylights' on the surface from underground mining voids. This mining waste is The TCTA operates three AMD plants in three basins on the Witwatersrand goldfields for the The Central Basin plant has a maximum treatment capacity of 72 megalitres (million litres) a day, including planned outages and shutdowns calculated over a year, the TCTA said. It is operating at 64.7 megalitres a day, with an average of 56.8 megalitres a day over the past year. Acid mine drainage is the polluting legacy of more than a century of gold mining on the Witwatersrand. During underground operations, water was pumped to the surface to enable mining to take place. As mining stopped, the pumping of underground water ceased and the mine voids started filling with water. The sulphide minerals in the rocks were exposed to water and oxygen, which resulted in the formation of acidic mine water. 'The Central Basin plant has been largely operating without any major interruptions, even though there were some hiccups that did not significantly alter the plant's operations,' said Goitseone Kgwele, the operations manager for AMD plants. It continued to maintain an average treatment operating capacity of 57 megalitres a day over the past year, and the shaft level was maintained well below the decant point prior to the start of the current rainy season, he noted. Although the TCTA was aware that the mine water was close to the surface, because the level in the mine void rose substantially during the last rainy season, 'it was not possible to predict where and when it would surface'. The TCTA monitored the possible points of decant in the vicinity of Boksburg Lake and saw evidence of the decant of AMD on 21 May. 'However, at that stage, the decanting water volumes were still quite low, even though it was already evident that the AMD was affecting the colour of the water in the lake,' Kgwele said. The TCTA had conducted a routine check on 2 May and no AMD decant was observed. Witnesses in the area said they had started to notice a change in the colour of the lake's water from about 15 May. On 23 May, the Council for Geoscience identified a point on the canal, upstream of the lake, where clear water was flowing into the canal and immediately turning a reddish colour. This area is linked to the New Blue Sky incline shaft, which surfaces 100m north of the observation point. 'Although the shaft is capped, it appears that the mine water found a pathway from the shaft to the surface,' Kgwele said. The red colour of the water occurs when acid mine drainage comes into contact with oxygen. This was also confirmed through a chemical analysis of the water. Kgwele emphasised the water is not fit for human consumption and all people near the lake and downstream to Cinderella Dam should not drink the water. A team of officials from the department and the TCTA has put together a water quality monitoring programme along the stream, down to Natalspruit. Acid mine drainage is characterised by low pH levels. The TCTA said that at the point of decant, the pH level was recorded to be 5.7 to 7.2. In Boksburg Lake, the pH level ranged from 5.0 to 6.5. The water has also been affected by other sources of pollution that have lowered the pH level, the TCTA noted. By the time the water reached 'Indications thus far are that the decant will possibly subside on its own within days. However, evidence of the presence of AMD in the lake will possibly linger for a little longer,' Kgwele said. This includes more erratic weather patterns and increased frequency and intensity of rainfall. 'There are also uncertainties pertaining to the Western and Eastern Basins. A conservative and precautionary approach is advised in the management of AMD and surface and underground flow paths have to be investigated.' When the short-term treatment of AMD was implemented within the Witwatersrand goldfields, the then-department of water affairs and forestry argued that due to the emergency of the situation, that there should be an exemption of environmental impact assessment regulations for the proposed short-term intervention. 'The consequence of this exemption was that there are uncertainties regarding the inflows and outflows from the Basins and the sources of the inflows,' Liefferink noted. She said that the 'It reported that the 2011 ECLs [environmental critical levels] were based on conservative assumptions regarding mine flooding and groundwater levels, that ECLs can be set at much shallower depths and that this can be implemented with immediate effect.' Environmental critical levels are defined as the highest water levels within mine voids that should not be exceeded to prevent acid mine drainage from flowing out of the mine workings into surrounding surface or groundwater resources. 'The recent decant from the Central Basin adduces evidence that there are uncertainties, which ought to be investigated prior to the adjustments of the ECLs,' Liefferink added. The City of Ekurhuleni had not commented by the time of publication.
Cision Canada
06-05-2025
- Business
- Cision Canada
US$100 Million Transformative, Project Financing Announced by SolarBank and CIM Group to Fund 97 MW of Renewable Energy Assets in the United States
TORONTO, May 6, 2025 /CNW/ - SolarBank Corporation (NASDAQ: SUUN) (Cboe CA: SUNN) (FSE: GY2) ("SolarBank" or the "Company") announced today that CIM Group (" CIM"), a real estate and infrastructure owner, operator, lender and developer, and the Company have entered into a Mandate Letter providing for up to US$100 million in project based financing for a portfolio of 97 MW of solar power projects located in the United States (the " Transaction"). The Transaction will be structured as a preferred equity investment into a newly formed entity (" New HoldCo") that will be a joint venture between CIM and Abundant Solar Power Inc. (" ASP"), a wholly-owned subsidiary of SolarBank. No shares or other securities of SolarBank will be issued in connection with the Transaction. "The financing is another major milestone in SolarBank's plans to grow its status as an independent power producer. Assuming full funding, SolarBank will retain a majority ownership interest in what is expected to be 21 solar energy projects with a total capacity of 97 MW," said Dr. Richard Lu, President and CEO of SolarBank. "The Transaction has been structured such that SolarBank does not have to issue any new shares, as the financing is being completed at the project company level." "CIM Group has a long history of developing and investing in essential infrastructure projects that seek to benefit communities and the environment," said Kyle Hatzes, Managing Director, Infrastructure & Impact Investments, CIM Group. "This transaction with SolarBank to grow its portfolio of solar projects underscores our ongoing commitment to the renewable energy sector and our focus on supporting innovative companies leading the energy transition across North America." CIM shall acquire non-convertible preferred equity interests in New HoldCo (the " CIM Equity"). Pursuant to a membership interest purchase agreement to be entered into by New HoldCo and ASP, New HoldCo will purchase the membership interests of identified project companies that wholly own 97 MW of power generating capacity (the " Portfolio" or the " Projects") directly or indirectly from ASP, subject to the satisfaction of customary conditions precedent. New HoldCo would advance 20% of the purchase price for each Project at mechanical completion of such Project, and 80% at substantial completion of such Project. Each Project is anticipated to sell investment tax credits ("ITCs") to one or more creditworthy third-party buyers pursuant to one or more tax credit transfer agreements in accordance with the requirements of Section 6418 of the Internal Revenue Code of 1986, as amended (the " Code" and each a " TCTA"). CIM shall receive a coupon, payable semi-annually, equal to 3% (annually) of the aggregate investment and, subject to certain distributions detailed below, the remainder of the cashflow generated from the Portfolio shall be distributed to ASP. CIM shall retain 100% of the TCTA sales. In the event of liquidation, casualty or similar condemnation event the proceeds shall be distributed based on prior contributions of the parties. New HoldCo has the right to redeem the CIM Equity based on the greater of fair market value or a multiple of invested capital beginning 180 days after the fifth anniversary of the date the last Project is placed in service (the " Call Option"). If the Call Option is not exercised, CIM has the right to require a redemption of the CIM Equity at the lower of fair market value or a multiple of invested capital. There are several risks associated with the Transaction and development of the Projects. The development of any project is subject to receipt of interconnection approval, receipt of a community solar contract, required permits, the continued availability of third-party financing arrangements for the Company and the risks associated with the construction of a solar power project. In addition, governments may revise, reduce or eliminate incentives and policy support schemes for solar power, which could result in future projects no longer being economic. The Transaction is subject to the execution of definitive documentation setting out all of the representations, warranties, covenants and conditions precedent associated with the Transaction. There is a risk that definitive documentation may not be executed or that the conditions precedent to the Transaction are not satisfied. In such case, no funding will be advanced under the terms of the Transaction. SolarBank will also need to secure the financing required to develop the Projects to mechanical completion and substantial completion, as prior to such milestone none of the funding from the Transaction will be available. Please refer to "Forward-Looking Statements" for additional discussion of the assumptions and risk factors associated with the Project and statements made in this press release. About CIM Group CIM is a community-focused real estate and infrastructure owner, operator, lender and developer. Since 1994, CIM has sought to create value in projects and positively impact the lives of people in communities across the Americas by delivering more than $60 billion of essential real estate and infrastructure projects. CIM's diverse team of experts applies its broad knowledge and disciplined approach through hands-on management of real assets from due diligence to operations through disposition. CIM strives to make a meaningful difference in the world by executing key environmental, social and governance (ESG) initiatives and enhancing each community in which it invests. For more information, visit About SolarBank Corporation SolarBank Corporation is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the USA. The Company develops solar, Battery Energy Storage System (BESS) and EV Charging projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. The Company maximizes returns via a diverse portfolio of projects across multiple leading North America markets including projects with utilities, host off-takers, community solar, and virtual net metering projects. The Company has a potential development pipeline of over one gigawatt and has developed renewable and clean energy projects with a combined capacity of over 100 megawatts built. To learn more about SolarBank, please visit This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to the Company's current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. In particular and without limitation, this news release contains forward-looking statements pertaining to the Company's expectations regarding its industry trends and overall market growth; the Company's growth strategies the expected energy production from the solar power projects mentioned in this press release; the terms of the Transaction, including the size of the potential financing and its expected structure; the receipt of interconnection approval, permits and financing to be able to construct the Projects; the receipt of incentives for the Projects; and the size of the Company's development pipeline. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward looking statements included in this news release, the Company has made various material assumptions, including but not limited to: the execution of definitive documentation for the Transaction; the satisfaction of all conditions precedent for the Transaction; obtaining the necessary regulatory approvals; that regulatory requirements will be maintained; general business and economic conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and services offered by the Company's competitors; that the Company's current good relationships with its service providers and other third parties will be maintained; and government subsidies and funding for renewable energy will continue as currently contemplated. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and the Company cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, investors should not place undue reliance on these forward-looking statements. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those listed under "Forward-Looking Statements" and "Risk Factors" in the Company's most recently completed Annual Information Form, and other public filings of the Company, which include: the failure to execute definitive documentation for the Transaction; the failure to satisfy all conditions precedent for the Transaction; the Company may be adversely affected by volatile solar power market and industry conditions; the execution of the Company's growth strategy depends upon the continued availability of third-party financing arrangements; the Company's future success depends partly on its ability to expand the pipeline of its energy business in several key markets; governments may revise, reduce or eliminate incentives and policy support schemes for solar and battery storage power; general global economic conditions may have an adverse impact on our operating performance and results of operations; the Company's project development and construction activities may not be successful; developing and operating solar projects exposes the Company to various risks; the impact of tariffs; the Company faces a number of risks involving Power Purchase Agreements ("PPAs") and project-level financing arrangements; any changes to the laws, regulations and policies that the Company is subject to may present technical, regulatory and economic barriers to the purchase and use of solar power; the markets in which the Company competes are highly competitive and evolving quickly; an anti-circumvention investigation could adversely affect the Company by potentially raising the prices of key supplies for the construction of solar power projects; foreign exchange rate fluctuations; a change in the Company's effective tax rate can have a significant adverse impact on its business; seasonal variations in demand linked to construction cycles and weather conditions may influence the Company's results of operations; the Company may be unable to generate sufficient cash flows or have access to external financing; the Company may incur substantial additional indebtedness in the future; the Company is subject to risks from supply chain issues; risks related to inflation; unexpected warranty expenses that may not be adequately covered by the Company's insurance policies; if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the renewable energy market; there are a limited number of purchasers of utility-scale quantities of electricity; compliance with environmental laws and regulations can be expensive; corporate responsibility may adversely impose additional costs; the future impact of any future global pandemic on the Company is unknown at this time; the Company has limited insurance coverage; the Company will be reliant on information technology systems and may be subject to damaging cyberattacks; the Company may become subject to litigation; there is no guarantee on how the Company will use its available funds; the Company will continue to sell securities for cash to fund operations, capital expansion, mergers and acquisitions that will dilute the current shareholders; and future dilution as a result of financings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for the Company to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.
