Land remediation

The guiding principles underlying AECI's remediation activities are to protect human health and the environment; to use good science, proven concepts, and best available techniques not entailing excessive cost; and to work with regulatory authorities and share information with interested and affected parties.

A risk-based approach guides the remediation process and human health and environmental risk assessments are undertaken at appropriate stages in individual projects. These assessments influence subsequent activities.

As explained in the operational review, the property business of AECI has been restructured. As a result, the execution of remediation activities is now managed by Heartland.

Spending on remediation and related environmental management activities in 2009 amounted to R13 million, significantly down on that of previous years. The reasons for this were two-fold. The bulk of AECI's environmental legacy remediation spend is now complete. Further, market conditions were such that little land was required to be released for sale, and thus remediation requirements were restricted since the timing of such activities is closely aligned to that of the sale of parcels of land. This low level of remediation spending is likely to continue in 2010.

At end-2009, the environmental liability for the Group was estimated at R144 million for remediation and was fully provided for.