EXECUTIVE SUMMARY

PROJECT TITLE

Proposed Aluminium Dross Recovery Plant at Lot 3, Jalan Waja, Kawasan Perindustrian Bukit Raja, 41050 Klang, Selangor Darul Ehsan.

PROJECT PROPONENT

Daiki Aluminium Industry (M) Sdn. Bhd. (176190-P) Lot 3, Jalan Waja, Kawasan Perindustrian Bukit Raja, 41050 Klang. Tel.: 03-3341 9500 Fax: 03-3341 8280

Attn.: Mr. Susumu Nakao Mr. Teo Chen Hone

EIA CONSULTANT Hexamatics Envirorich Sdn. Bhd. (732810-M) Unit 27A-5, Block E-1, Jalan PJU 1/42, Dataran Prima, 47301 Petaling Jaya Tel.: 03-7804 7770 Fax: 03-7804 7702

Attn.: Mr. Kumar Annavoo

I.

INTRODUCTION

The Proposed Project involves establishment and operation of aluminium dross recovery plant. The Proposed Project is initiated by Daiki Aluminium Industry (M) Sdn. Bhd., and located at

Lot No. 3, Jalan Waja, Kawasan Perindustrian Bukit Raja, District of Klang, Selangor Darul Ehsan. The proposed Project Plant is geographically located at a latitude of 03o0456.9N
and a longitude of 101o2820.6E. The Proposed Plant is situated at the existing industrial lot of Bukit Raja Industrial Area which is categorized as heavy industry area (refer Figure ES1). The proposed aluminium dross recycling site is within the existing scrap aluminium recycling plant belongs to the Project Proponent [i.e., Daiki Aluminium Industry (M) Sdn. Bhd.]. The proposed site comes under the jurisdiction of Majlis Perbandaran Klang (MPK).

The Proposed Plant is intends to operate the recovery process for aluminium dross (SW104) based on technology from Japan by Daiki Aluminium Industry. The proposed aluminium dross recovery will be using the same facility and equipments which is currently recovering in-house dross produced by the aluminium scrap recycling process. A total of 200 MT/month of

aluminium dross (SW104) will be collected from aluminium based manufacturing industries
(i.e., mainly the same customer who generates the aluminium scrap) to produce aluminium sow blocks.

Table ES1: Waste Code and General Description Code Description [as in Environmental Quality (Scheduled Waste) Regulations 2005] Dust, slag, dross or ash containing aluminium, arsenic, mercury, vanadium, lead, cadmium, chromium, nickel, copper, or Proposed Waste for the Recovery Process Aluminium Dross

SW104

beryllium,

antimony,

tellurium,

thalium

selenium excluding slag from iron and steel factory

In line with the commitment of the Government of Malaysia to reduce waste volume and improve waste management practices, Daiki Aluminium Industry (M) Sdn. Bhd. seeks to propose a scheduled waste recovery at the existing aluminium scrap plant at Bukit Raja Industrial Estate (heavy industrial area). It is anticipated that the proposed plant shall enable the organization to receive and treat the scheduled waste (i.e., aluminium dross) in the immediate future and thus reducing the overall volume of final disposal for these wastes. 2

II.

CURRENT ENVIRONMENTAL SETTING

A.

Physical Environment

i)

Morphological Features of the Project Site

The entire industrial area is located on a flat land which was formerly an oil palm estate. A nearly level terrain with average elevations characterizes the entire Kawasan Perindustrian Bukit Raja where the existing Daiki Aluminium Industry (M) Sdn. Bhd. which will incorporate the off-site recovery facility.

ii)

Streamflow Pattern

In general, no natural stream observed due to the Project Site is located at designated industrial lots of Kawasan Perindustrian Bukit Raja. Only concrete drains were observed at the Project Site and the surrounding area. Sg. Klang was observed at southern portion approximately 4 km from the Proposed Plant.

iii)

Geology and Soil

The geological unit of the proposed site and their surrounding area in particular is of the Carboniferous Age. This formation is made up of argillaceous rocks which are commonly carbonaceous. The major rock types included in this formation are phylite, slate, shale and sandstone. The major soil type found in this area is Serdang-Bungor-Munchong series which developed on ferruginous shale and schist, and occurs over a variety of slopes. The thin humid top soil is underlain by a friable strong brown to brownish yellow soils with texture of sandy clay loam or silty clay loam. Soil on hill tops is more juvenile and shallower than those on the lower slopes. When topsoil exposed with no vegetation cover, these soils are subject to slumping, gullying and sheet erosion.

iv)

Landuse

Major portion of the landuse within 4 km radius encompass by urban development (residential, commercial and industrial developments). Oil palm plantation represents second major landuse within the 4-km radius. Sg. Klang is observed within the 3 - 4 km southern of the Proposed Site.

The southern, western and eastern portions of the landuse are covered by urban associated landuse (i.e., residential commercial and industry) whereas the northern portion dominated by agriculture based landuse (i.e., oil palm plantation). The nearest residential area observed are houses and apartments of part of Bandar Baru Klang. These residential units are located at about

1000 m from the Plant. Apart from this, no food industries are found within 250 m radius
from the Proposed Project Site.

v)

Water Quality

Two (2) water samples were collected to represents baseline water quality of the Plant and the surrounding area. Sampling point W1 is at the upstream of the monsoon drain which is before discharge from the existing Daiki Plant and W2 at downstream of the monsoon drain which is after the discharge from the existing Daiki Plant.

The water sample was collected and analyzed by DSM accredited laboratory. The analyzed data will be used as baseline data of the Plant prior to the implementation of the proposed recovery process. The discussion of the water quality data was made in accordance to its three major characteristics i.e., physical, biological and chemical components. The results were compared with the Class III standards (Proposed Interim National Water Quality Standards) due to no water intake point downstream. The laboratory result showed that only BOD and COD exceeded the Class III standards.

vii)

Air Quality

Baseline ambient air quality was measured (i.e., 24 hours) at the plant boundary, A1 and at the residential area of Bandar Baru Klang, A2 (represents nearest receptor refer Figure ES2). The air quality is considered satisfactory as most of the parameters were within the Malaysian Air Quality Guidelines recommended limits. However, it was recorded that TSP at A2 exceeded the standard limit mainly due to traffic movements at the roads and adjacent highway.

viii)

Noise Quality

Baseline noise levels were measured (i.e., 24 hours) at the boundary of the Proposed Project Site. The sampling sites N1 is at the boundary of the Proposed Plant and N2 is at the residential area of Bandar Baru Klang (i.e., nearest receptor). As such, noise quality at N1 and N2 shall represent the baseline noise level. The noise levels (Leq) measured at N1 and N2 for the day time were observed to be within 70 dB(A) whereas, the noise level at night time slightly exceeded the 60 dB(A) as stated in Schedule 1 of the Planning Guidelines for Environmental Noise Limits and Control by DOE.

B.

Biological Environment

The proposed Project Site is located in Industrial Area of Kawasan Perindustrian Bukit Raja, which is a developed area with factories, industrial lots and infrastructure facilities. No significant biological ecosystem exists within the project area. The surrounding empty lots of the Proposed Plant were observed with secondary vegetation dominated by Acacia trees along with some woody plants. The western boundary to the Kawasan Perindustrian Bukit Raja covers with oil palm plantation.

C.

Socio-economic Environment

The Project Site is located within Industrial Area of Kawasan Perindustrian Bukit Raja, with adequate infrastructure facilities and connecting roads such as New Klang Valley Expressway (NKVE), Selat Klang Expressway and Federal Highway. The proposed plant is expected to create more job opportunities for locals especially within the Klang District.

III.

PROJECT DESCRIPTION

The Proposed Plant is located at Lot No. 3, Jalan Waja, Kawasan Perindustrian Bukit

Raja, District of Klang, Selangor Darul Ehsan. The proposed plant shall consist of various
components that will support the aluminium dross recovery process, pollution control facilities, raw material storage, product storage and the administrative office. A total of 200 MT/month

of aluminium dross (SW104) will be collected from various manufacturing industries, to

produce aluminium sow blocks.

The scheduled waste send to the plant will be handled and accepted in relations to the established waste acceptance criteria by the proposed plant.

Table ES2: Waste Acceptance Criteria

Item Aluminium Dross

Characteristic Physical Appearance

Description Slag nuggets or fine particle form

Content

30%

to

70%

aluminium

present in waste

The process is outlined as follows:

i)

Waste Collection

Prior to the collection of the wastes various procedures such as identifying waste that meets the waste acceptance criteria will be conducted. Random sampling of the wastes shall be conducted to ascertain that the wastes conform to the waste acceptance criteria outlined for the waste to be used in the Proposed Recovery Facility.

ii)

Waste Receiving and Storage

On reaching the site of the Proposed Recovery Facility, the trucks will move to the unloading bay at the site. Here the trucks will be inspected and accepted prior transferring the wastes to the temporary storage area.

iii)

Recovery Process

The recovery process involves the following steps;

a)

Separation Process

The accepted aluminium dross will be going through separation process which involves dross cooler which will separate the aluminium dross into two categories which is above 30 mesh and below 30 mesh. The separated aluminium dross will be filled on trays where the coarse and fine dross will be melted in separate batches at the rotary furnace. The separation process is important to increase the efficiency of the recovering process.

b) Melting Process

The separated aluminium dross which was collected in trays will be fed into the rotary furnace which has a capacity of 4000 kg per batch. The furnace temperature will be set to a range of 600- 900o C. The smelting process will be carried out in the rotary furnace for 2 hours/batch.

Once weighed, the prepared feed is then transported to the hot furnace for smelting process. A manual loader will feed the aluminium dross into the rotary furnace. In the rotary furnace, the aluminium dross is burnt at a temperature of 600 - 900 C. Natural gas (NG) will be used as fuel for the rotary furnace (i.e., estimated NG input about 146 m3/MT).

The smelting process requires approximately operating of 2 hours to be completed in rotary furnace with temperature of 600 - 900 C for aluminium dross. The molten aluminium will go through the casting process to produce ingots while the balance dross residue will be left to cool in the furnace and will be scaled off at the end of each batch. The dross residue will be collected in bins and labeled as scheduled waste (i.e., coded SW 501) is then stored at residual storage area prior to disposal at Kualiti Alam Sdn Bhd.

The recovery process will be carried in batches with each batch of 4,000 kg in quantity. It is estimated about 6 batches of aluminium dross will be melted daily.

A small amount of flue gas from the smelting process will be directed to an air pollution control system consisting of a dust collector equipped with bag filter prior to discharge through a stack of appropriate height. 9

c)

Casting Process

The molten metal will be tilted out from the rotary furnace and casted to form sow blocks of 400 600 kg in weight. As the metal is in molten form, no emissions are anticipated in this process. The aluminium ingots are then left to cool in the cooling area. It is estimated more than 98% purity of aluminium in the form of ingots will be recovered in the process.

d)

Packing and Storage

The aluminium sow blocks once cooled are then stacked and transferred to the finished product storage area which will then be delivered to the customers.

Figure ES3: Process Flow for Aluminium Dross Recovery 200 tpm Aluminium Dross Waste Receiving & Storage

Dross Cooler/Separator

Aluminium Dross (> 30 mesh)

Aluminium Dross (< 30 mesh)

Rotary Furnace Melting

Air Pollution Control System

Rotary Furnace Melting

Casting

Residue Storage for Offsite Disposal to KA

Casting

Aluminium Sow Blocks Product Storage

Aluminium Sow Blocks Product Storage

10

IV.

ENVIRONMENTAL CONSIDERATIONS

The potential impacts of the proposed development generally occur during the implementation of the project and its recommended mitigation measures are tabulated in Table ES2.

During the operation and maintenance phase, flue gas emission, noise intrusion, scheduled wastes spillage and the manufacturing processes itself may create negative impacts and risks to the nearby residents and the workers at the plant itself. Therefore, proper measures such as waste minimization concept and other designs/equipment have been incorporated into the plant to counter these impacts.

V.

HAZARD AND RISK ASSESSMENT

This hazard and risk assessment is a part of a Preliminary EIA study that was commissioned by Daiki Aluminium Industry (M) Sdn Bhd to fulfill the legal requirements of the Department of Environment (DOE), Malaysia. This study was undertaken for the operational of an off-site waste recovery plant. Hence, the necessesity to comply with Section 34A of the Environment Quality Act, 1974 (Amended) 2000, and the Environment Impact Assessment (EIA) Order, 1987, where, this industry is classified as a Prescribed Activity, under Order 18(a) (ii). This study has also taken into consideration the Department of Environments EIA Guidelines and the EIA Guidelines for Risk Assessment, 2004.

Based on the study, it is concluded that the risk posed by the proposed facility does not pose an impact to the surrounding as all consequences do not go beyond the proposed plants boundary.

Notwithstanding the above conclusion, the following preventive and mitigation measures shall be implemented in order to further minimize the risk associated with the proposed plants activities:

Implementation of Safety Management System during operational stages - The proposed plant management has to ensure the implementation of an effective health and safety management system (HSEMS) which governs a safe operating condition for the proposed plant. This will help minimise the risk posed by the plants operation will be within the acceptable limits;

11

Ensure that a HAZOP study is conducted before construction during detailed design engineering;

Establish an Emergency Response Plan which covers both operational/process and external hazards as a tool for effective disaster or emergency management in case of an incident or accident.

VI.

ENVIRONMENTAL MANAGEMENT PLAN (EMP) FRAMEWORK

The EMP is proposed as a means to ensure that the proposed mitigation measures are implemented effectively to render the anticipated impacts to acceptable levels. On-site management plan during the construction phase which includes various schedules and supervision for good on-site practices; planning of schedules and plans would include work schedules, site drainage and stormwater management plans, maintenance program of pollution control structures and heavy vehicles/machinery, on-site pollution measures and onsite traffic management schemes; On-site management plan during the operational phase would be mainly the service and maintenance scheme for the proposed plant; Water, air and noise quality monitoring programs to evaluate the effectiveness of the mitigation measures, which are implemented, to further improve where necessary. A framework of Emergency Response Plan (ERP) also attached in this Chapter 8.

VII.

CONCLUSION

Under the Environmental Quality (Scheduled Wastes) Regulations 2005, all scheduled wastes must be treated within a prescribed premise. In line with the current on-going efforts to conserve precious natural resources and preserve the environment, recovery facilities that provide environmentally positive solutions and which are also sound economic investments should be encouraged especially in the areas of scheduled chemicals wastes management, recovery and disposal.

The objective of this proposed project focuses solely on brass dross recovery activities. Its operations will not create a significant adverse effect to the neighborhood and environment if the Proponent adheres to all regulatory requirements and complies with the conditions stipulated by the relevant authorities. The proposed facility will be operated in accordance with established and recognized standards.

12

Table ES3: Identified Significant Environmental Impacts and Recommended Mitigation Measures
Potentially Significant Environmental Impacts Risk : Leakage and spill from transport vehicles or container and risk of accidents and point source pollution discharging into the nearby waterways. Traffic/Noise/Air Quality: Transit patterns disrupted, noise and congestion created and pedestrian hazards aggravated by heavy trucks transporting raw material and product to/from facility. Proposed Mitigation Measures

Project Activities A. Operation & Maintenance 1. Transport of Scheduled Waste to Plant

Proper mode of transport with safety features for scheduled waste; Well trained and experienced drivers; Restrict delivery times to low traffic hours; Avoid densely populated areas. Transportation and handling in accordance with the MSDS of the respective chemical. Maintaining the trucks in good condition. Emphasis on pre-trip checks to identify problems that may lead to accidents. Establishment of an ERP framework detailing action required in case of accidents leading to spillages. Erection of containment wall and concrete flooring of storage areas will contain any spillage from contaminating soil/groundwater. Proper SOP (Standard Operating Procedure) in place and understood by the relevant personnel. Regular inspection of storage areas to ensure no leakage. Training on identification, handling, labeling, storage and spill response.

2. Storage and handling of raw material.

Leak or spill might contaminate soil/groundwater;

Project Activities

Potentially Significant Environmental Impacts

Proposed Mitigation Measures All bunding for raw material /scheduled waste storage areas shall comply with the

Guidelines for Scheduled Waste Storage by DOE.

Routine and periodic preventive maintenance programmes to ensure undesired release from the entire system

3. Recovery Process

Certain measures/concepts will be incorporated in the process flow design to reduce the pollutants. Emission from the recovery process (i.e., the flue gas) Occupational health implications such as hearing impairment, speech impairment and annoyance.

Waste minimization will be practiced by the plant which includes reuse of substances.

Provision of dust collector and bag filters to control the emission of flue gas prior to release to atmosphere. Incorporate noise attenuation measures in the design of the equipment and factory (control at source); Provide adequate noise attenuation for the workers such as ear mufflers, ear plugs,etc. (control at receiver); Control in Transmission Path;

4. Noise generation

Project Activities 5. Scheduled Waste Management

Potentially Significant Environmental Impacts Generation of scheduled waste from recovery process; Improper storage and handling of these scheduled wastes could create danger to the surrounding, workers and groundwater contamination.

Proposed Mitigation Measures Aspect of storage in accordance to the MSDS; Transportation and disposal of scheduled waste by approved operator (i.e., Kualiti Alam Sdn. Bhd) for residual waste (residues from separation process, slag and dust from bag filters); Proper storage area in accordance with the Guidelines for Storage of Scheduled Wastes. Comply to OSH Act 1994 (Act 514) and its relevant regulations; Commitment of the Daiki Aluminium Industry (M) Sdn. Bhd. senior management towards EHS aspects Factories and Machineries Act would be adhered to; Updated safety handbook to enhance work procedures; Proper signboards serving as administrative control; ERP (Emergency Response Plan) to counter emergency occurrences during operations; Training and communication of the above laws and regulations to all relevant personnel.

6. Occupational Safety and Health Management

Workers susceptible to various risk during operation and maintenance; Emergency in case of any accidents.