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RE09038:TEIDAMU SPRINGS REPORT _FINAL .DOC PAGE i

Contents

1. Introduction.................................................................................... 1

2. The Water Resource and Catchment Geology ............................ 2

3. Water Chemistry ............................................................................ 43.1 Water Sampling............................................................................... 43.2 Teidamu Spring Water Quality ........................................................ 73.3 Stable Isotope Chemistry .............................................................. 113.4 Tritium Analysis............................................................................. 13

4. Environmental Review................................................................. 14

5. Civil Works and Cost Estimates ................................................. 175.1 Survey........................................................................................... 175.2 Pipeline and Water Tank ............................................................... 175.3 Factory Site................................................................................... 175.4 Access Road................................................................................. 175.5 Sewerage...................................................................................... 175.6 Natural Spring Development ......................................................... 185.7 Pipeline and Storage Tank ............................................................ 185.8 Plant Site....................................................................................... 185.9 Access Road................................................................................. 185.10 Sewage Disposal .......................................................................... 19

6. Conclusions & Recommendations............................................. 20

7. References ................................................................................... 21

Appendix A Stable Isotope and Tritium Analyses...................... 22

Appendix B Preliminary Site Plans.............................................. 25

Main spring at Teidamu Springs

RE06145RE09038:TEIDAMU SPRINGS REPORT _FINAL .DOC PAGE ii

Executive SummarySinclair Knight Merz was commissioned by Akhil Projects Limited to conduct a pre-feasibility assessment for a spring water bottling plant near Lautoka, Fiji. The studyexamined the water resource, water quality, potential environmental problems andpreliminary site engineering costs to develop the springwater resource.

There are six springs on the property, which is owned by Akhil Projects Limited, butonly the main spring was investigated extensively as this single spring can reliablysupply about 150 ML per year for bottling and is considered representative of theother springs with regard to water quality. Evidence suggests that this flow of waterhas been consistent for living memory. It is likely that only a small proportion of thisvolume of water would be required for bottling, providing a high level of reliabilityfor the water resource. Isotopic analysis of water samples indicates that the source issomewhere inland, possibly between Mount Evans range and Nausori Highlands in theNadi Region. This is supported by tritium analysis which indicates that the water isgreater than 50 years old and hence is also considered not susceptible tocontamination. Importantly, the water leaves the ground unassisted and is notextracted via a bore. Consequently, it can truly be marketed as ‘spring water’ ratherthan ‘artesian water’.

The spring water quality has been analysed on several occasions over the past decade.Comprehensive testing was conducted as part of the present study to verify pastanalyses and supplement them by testing for the presence of a suite of contaminants(heavy metals, herbicides and pesticides). Analyses demonstrated that the waters areof high quality, containing no contaminants above USFDA guideline levels andhaving a range of characteristics considered desirable for spring waters. Thesecharacteristics include moderate levels of total dissolved solids which provide for highpalatability and high silica levels promoting a soft feeling on the palate. Previoussampling events as well as select sampling carried out specifically for this study arereviewed and evaluated.

A preliminary environmental analysis was conducted to determine whether therewould be any significant impact that might prevent this project from proceeding. Noissues were found that represented a significant impediment to the project proceeding.

Initial costings are presented with regard to the development of the spring waterresource and site development.

RE09038:TEIDAMU SPRINGS REPORT _FINAL .DOC PAGE 1

1. IntroductionAkhil Projects Limited is currently investigating the potential of developing a springwater bottling plant on its property “Drasa” at Teidamu, located 10km NE of Lautokaon the north-western coast of Viti Levu (Figure 1-1). The total land title area onwhich the project is sited is 360.8246 hectares. The property is described as DepositedPlan Number 8366 and comprises the following three Titles :

Title No. Area32843 85.2535 hectares32854 134.3057 hectares32855 141.2654 hectares

This land is owned by freehold title by Akhil Projects Limited.

In February 2002, Sinclair Knight Merz was commissioned to undertake a review ofthe project with the primary objective of assessing the reliability of the spring watersource, its water quality characteristics, potential environmental impediments to theproject and preliminary assessment and cost estimates for the civil works.

Figure 1-1 Location of Teidamu, Viti Levu (Source: Hema Maps)

Teidamu

RE06145RE09038:TEIDAMU SPRINGS REPORT _FINAL .DOC PAGE 2

2. The Water Resource and CatchmentGeology

The Teidamu Springs issues from volcanic sediments approximately 3 km inland fromVitongo Bay. The catchment area for surface drainage is defined by the Mount EvansRange to the east. The surface geology of the catchment area comprisesundifferentiated basaltic and andesitic flows, and related epiclastics.

The springs rise adjacent to a creek channel system on the middle slopes of theTeidamu Range. There is a distinctive flattening of the topography over an area ofabout one hectare with the main spring fairly central to this area (Figure 2-1).

Measurements of flow at the temporary measurement point at the main spring was aconstant 6.2 litres per second (L/sec) (SD=0.1, n=13) in July 2002. This is consistentwith previous estimates of flow that concluded that the total spring flow is greater than5 litres per second (SKM 2000). These previous measurements demonstrated a flowrate of 3 to 5 litres per second, depending on distance downstream, but this rate wasinfluenced by the constant drawing-off of water by local villagers.

Figure 2-1 Proposed Factory Site and Main Spring Area

Given that villagers no longer draw water from this spring, along with the recentmeasurement of flow rate, it is likely that the reliable water flow after developmentwould be conservatively 5 litres per second from this main spring. Based on thisconservative figure, the spring would produce approximately 150 ML per year. It islikely that only a few ML per year will be drawn off for bottling, but this depends onmarket demand.

Proposed factory site

Mt Evans Range

Main spring up creek


Accounts by local residents and the landowners are consistent in their assessment thatthe flow rate of the spring has been constant over a period equal to living memory andthat it seems to be independent of weather conditions and regional drought effects.While these accounts can be subject to some uncertainty it seems likely that the flowof the spring continues through all conditions and that any variation in flow rate is notgreat enough to be recognised over periods of several months.

Such constant flow rates are characteristic of waters that have long undergroundresidence times. Evidence of long residence times is further provided by the results ofwater chemistry analysis, especially isotope analysis (refer Section 3).

The water resource fits within the definition of “spring water” since it is derived froman underground formation, which flows naturally to the surface. This differs from“artesian water” which is water from a well, which may be collected with theassistance of external force to enhance the natural underground pressure.

The springs rise from massive volcanic conglomerate; no fractures or faults have beenobserved in the area however some must exist to allow the unimpeded flow ofunderground water. It is likely that the spring is associated with either a fault, joint orzone of rock which has discrete openings as the permeability of the conglomerate isvery low.

There appears to be weathered rock exposed in the creek channel at the measuringpoint indicating that the depth to in-situ rock is not great.

The area of the main spring is currently open grassland and is unfenced.

The development of the spring for water collection will require the following:

❑ Isolate the water from contaminants;

❑ Collect as much of the flow as possible, without resulting in significantenvironmental impact to the creek system;

❑ Provide a system to get the water into the supply pipe; and

❑ Produce an appropriate and pleasant environmental effect.

As the bedrock at the site appears to be fairly shallow below the surface it is possiblypractical to excavate the area and identify the feature the springs are emanating from.It may then be possible to construct a cut off wall around the spring or one part of thespring and collect the water into a chamber.

If the source of the spring is more diffuse then French Drains can be used to collectthe flow in the overburden above the bedrock.


3. Water Chemistry

3.1 Water SamplingSamples of filtered water have been collected from the site on several occasions.Results of these surveys are included in this report to provide a historical account ofwater chemistry. Water samples for the present study were collected from the mainspring in April 2002 (metals and inorganics) and July 2002 (herbicides and pesticidesand faecal coliforms) (Figure 3-1). Supplementary testing was also undertaken inAugust 2002 for selected parameters from the main spring and four upstream bores(Figure 3-1). Some metals and inorganics were analysed by the Mineral ResourcesDepartment in Fiji. Other metals, faecal coliform bacteria, herbicides and pesticideswere analysed by Australian Laboratory Services (ALS) in Brisbane.

Previously, samples of water have been subject to stable isotopic analysis ( 2H, 18O)(SKM, 2000). These samples were collected from the main spring and surroundingsurface waters and from surface run-off at several locations in the inland ranges. Thesesamples consisted of untreated water collected into 30ml glass screw-cap bottles. Onefurther sample was collected as part of the present study to determine any temporalchanges in isotopic composition and verify the consistency between past and presentanalyses.

In the present study, a sample of water was also collected for tritium analysis ( 3H)from the main spring. This analysis gives an indication of the approximate age (lengthof time underground) of the water, up to 90 years. Older water is likely to be animportant parameter for marketing the bottled water.

Past and present stable isotope and tritium analyses were carried out by the Institute ofGeological Sciences in New Zealand to establish the water source. Sample locationsare shown in Figure 3-2.

Some further chemistry data was provided by the client. Reference is also made topublished stable isotope data from Cox and Hulston (1980).


Figure 3-1 Water Quality Analysis Sampling Sites


Figure 3-2 Isotope Analysis Water Sampling Sites


3.2 Teidamu Spring Water QualityTable 3-1 presents the chemistry of the Teidamu spring water, including present andhistorical data. This includes analyses by Australian Laboratory Services (ALS), theUniversity of the South Pacific (USP) and some older partial analyses by Aquanalysisof the same spring and of a bore located about 1km away. For comparison, chemicalanalyses are also included for commercial bottled water products distributed in theUnited States (Bottled Water Industry: http://www.bottledwaterweb.com), along with USFDA limits for Bottled Water (Code of Federal Regulations: 21CFR165.110).

Compared to commercially available bottled waters, the Teidamu spring water hasmedium mineralisation of about 120-170 mg/L total dissolved solids (TDS). Thislevel of TDS provides for a highly palatable water. The water pH is near-neutral, withcalcium and bicarbonate being the main ionic constituents. Most of the well knownbottled waters also have a calcium-bicarbonate composition (Table 3-1).

The Teidamu water has a silica content of 82.3 mg/L, higher than most commercialbottled waters and similar to that seen in the Fiji Natural Artesian Water (FNAW).For the latter, the high silica is promoted as a feature of the water, imparting a“smooth mouth feel” (source: product web site). The high silica content of the Fijiwaters is probably derived from the volcanic aquifer rocks through which the watersflow. This is probably because the silica is present as more soluble amorphous oropaline silica rather than quartz. It is interesting to note that the bottled water fromVolvic in France (Table 3-1) has an above-average silica content (30 mg/kg) and thiswater is also produced from a volcanic rocks.

Other chemical constituents analysed in the Teidamu spring (e.g: Na, Cl, Mg, K, SO4)are within the range seen in other commercial bottled waters.

Faecal coliform bacteria were not detected in the water (detection limit of 2 organismsper 100 ml).


Table 3-1 Chemistry of Teidamu Spring Water and Commercial Bottled Waters

Description Year Source pH Na K Ca Mg Fe NH3 Cl NO3 PO4 SO4 HCO3 SiO2 TDS TSS Hardness Cond. ColiformFaecal

mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L (uS/cm) c/100ml

Teidamu watersTeidamu SKM 2002 Spring 6.7 10 2 18 5.8 <0.02 0.01 6.68 <0.01 0.23 <0.04 102 82.3 120 0.002 70 130 <2Teidamu SKM 2000 Spring 6.9 8.7 1.6 17 4.3 4 0.23 <1 40 168 61 158Teidamu (MVJ) 1999 Spring 6.6 3.6 0.03 1.2 43Teidamu (MVJ) 1999 Spring 6.9 4 0.11 0.7 100Teidamu (MVJ) 1999 Spring 7.3 4 0.07 0.6 110Teidamu (Akhil) 1994 Spring 5.5 7 1.1 17 5.8 1.6 < 0.1 < 5 0.06 < 5 196 66 185 <1Teidamu (1km from

main spring) (Akhil) 1994 Bore 5.8 7.5 1.4 20 5.3 0.4 < 0.1 < 5 0.12 < 5 174 72 230 <1

US FDA limits for bottled water (not mineral water) 0.05 0.3 250 10 500 0

Bottled waters distributed in the USA

Fiji Natural ArtesianWater

Fiji Well 7.5 17 13 140 83 160

Crystal Geyser CaliforniaWarmSpring 130 8.7 12 3.1 260 3 590

Evian France Spring 7.2 6 0.8 78 23 2 3.8 10 357 14Mountain Valley Arkansa Spring 3 1.1 69 11 10 238Ozarka Texas Spring 2 2 1.2 4 2 5 6 32Perrier France Spring 14 0.6 140 3.5 31 0 51 348Spa Reine Belgium Spring 3 0.5 4 1.3 5 1.9 7 7 33Sparkletts California Well 7.2 4 1 0.8 4 3SwissAlp Switzerland Spring 7.3 19 2.2 120 35 10 0.4 214 300 13 605Volvic France Spring 7 9 10 6 8 1 7 65 30 109


Screening for heavy metals, pesticides and herbicides was conducted and results areshown in Table 3-2 and Table 3-3. All compounds were below the detection limits forthe laboratory.

Table 3-2 Analysis of heavy metals (2002 sampling)

Metals & Metaloids Concentration (mg/L) US FDA Limits

CU <0.02 1

Pb <0.02 0.005

Zn 0.03 5

Hg <0.0001 (filtered) 0.002

Hg <0.0001 (unfiltered) 0.002

As Not detected 0.05


Table 3-3 Analysis of pesticides and herbicides (2002 sampling)

Analysis Description Units LOR Spring water8/7/02

ORGANOCHLORINE PESTICIDESalpha-BHC ug/L 0.2 <0.2HCB ug/L 0.2 <0.2beta-BHC & gamma-BHC ug/L 0.4 <0.4delta-BHC ug/L 0.2 <0.2Heptachlor ug/L 0.2 <0.2Aldrin ug/L 0.2 <0.2Heptachlor epoxide ug/L 0.2 <0.2Chlordane - trans ug/L 0.2 <0.2Endosulfan 1 ug/L 0.2 <0.2Chlordane - cis ug/L 0.2 <0.2Dieldrin ug/L 0.2 <0.2DDE ug/L 0.2 <0.2Endrin ug/L 0.2 <0.2Endosulfan 2 ug/L 0.2 <0.2DDT ug/L 0.8 <0.8Endrin ketone ug/L 0.2 <0.2Methoxychlor ug/L 0.8 <0.8ORGANOPHOSPHORUS PESTICIDESDichlorvos ug/L 0.2 <0.2Demeton-S-methyl ug/L 0.2 <0.2Monocroptophos ug/L 0.8 <0.8Dimethoate ug/L 0.2 <0.2Diazinon ug/L 0.2 <0.2Chlorpyrifos-methyl ug/L 0.2 <0.2Parathion-methyl ug/L 0.8 <0.8Malathion ug/L 0.2 <0.2Fenthion ug/L 0.2 <0.2Chlorphyrifos ug/L 0.2 <0.2Parathion-methyl ug/L 0.8 <0.8Pirimiphos-ethyl ug/L 0.2 <0.2Chlorfenvinphos E ug/L 0.2 <0.2Chlorfenvinphos Z ug/L 0.2 <0.2Bromophos-ethyl ug/L 0.2 <0.2Fenamiphos ug/L 0.2 <0.2Prothiofos ug/L 0.2 <0.2Ethion ug/L 0.2 <0.2Carbophenothion ug/L 0.2 <0.2Azinphos-methyl ug/L 0.2 <0.2TRIAZINE PESTICIDESAtrazine ug/L 0.2 <0.2Simazine ug/L 0.2 <0.2MISC PESTICIDESToxaphene ug/L 0.2 <10ORGANOCHLORINE PESTICIDE SURROGATESDibromo-DDE (QA test) % 1 83ORGANOPHOSPHORUS PESCICIDE SURROGATESDEF (QA test) % 1 79PHENOXY ACID HERBICIDES2.4-D ug/L 0.5 <0.52.4.5-T ug/L 0.5 <0.5Dalapan ug/L 0.5 <0.5Dinoseb ug/L 0.5 <0.5PHENOXY ACID HERBICIDES SURROGATES2.4 - Dichlorophenylacetic acid (QA test) % 1 74LOR: Limit of Reading

Although the stable isotope composition is generally more definitive in providingclues to the origin of the spring waters (see below) there are some aspects of the waterchemistry that also help. The fact that the spring water has developed moderatemineralisation, similar to the Fiji Natural Artesian Water (FNAW), suggests it has


undergone water-rock interaction over a reasonable period of time. The FNAW wateris said to have a source beneath the volcanic highlands, although no scientific data tosubstantiate this was obtained for this study. The relatively high silica content atTeidamu would not be expected if the waters had a nearby source.

The Teidamu spring chemistry is very similar to that of the Teidamu bore locatedabout 1km away (in particular Na, K, Ca proportions) (SKM 2000). This suggests thewaters at these two locations have a common source and movement over this distancewould imply significant residence times.

Overall, the water chemistry for the Teidamu spring suggests is high quality fordrinking and has flowed over some distance and with a significant residence time.

3.3 Stable Isotope ChemistryA total of thirteen surface water samples, including two from the main Teidamuspring, have been collected (2000 and 2002) for stable isotope analysis to investigatethe possible origin of the Teidamu spring water. The samples include fresh surfacewaters (creeks) in the vicinity of the springs and samples from inland ranges. Thelatter are essentially rainfall samples collected as run-off during or after rain showers.Sample locations are shown in Figure 3-2.

The samples were analysed for the stable isotopes of oxygen and hydrogen in water(H2O), namely the 2H / 1H ratio of hydrogen and the 18O / 16O ratio of oxygen. Theisotopic ratios are expressed in parts per million (‰) units where:

δ = 1000 x (Rx - R SMOW) / RSMOW

and Rx is the isotopic ratio in the sample and RSMOW is the ratio in Standard MeanOcean Water (the international standard). The laboratory report from Geological andNuclear Sciences in New Zealand is attached (Appendix A).

The isotopic data are plotted on a standard δ 2H versus δ

18O plot often used forhydrological studies (Figure 3-3). Data from Cox and Hulston (1980) are alsoincluded.

Stable isotopes in water are fractionated during evaporation and condensation (cloudformation) to a degree depending on temperature and humidity. As a result, rainfalland fresh surface water lie along a meteoric water line with a position related toelevation or position along the prevailing wind direction. When rainwater seepsunderground the isotopic composition is usually fixed. Therefore, groundwaters willusually have an isotopic composition close to the mean composition of rainwater fromwhich the water is derived.

Cox and Hulston (1980) recognised windward-to-leeward isotopic depletion (loss ofheavier 2H, 18O) across Viti Levu and Vanua Levu and attributed this to the prevailingsouth-easterly wind direction. However, data from a single survey may be misleadingif climatic conditions at the time of sampling are atypical. In the period March to Mayclimatic conditions over Fiji can be erratic with wind direction changing to thenortheast (Cox and Hulston, 1980).


With the SKM study of 2000 (SKM, 2000), the approach to assessing the origin of theTeidamu spring water relied on comparing the spring’s isotopic composition withwaters collected along the coast and over the inland ranges. If a spring has an aquifersource beneath inland highlands then its composition should be similar to averagerainfall falling in the source region. Again, this approach assumes that the isotopicdata collected for the surface waters is typical for the time of year.

In Figure 3-3, the overall trend is of increasing isotopic depletion (more negativevalues) inland and towards higher elevations. Normally with prevailing SE winds, theeffect of increasing elevation to the east would be cancelled out (to some extent) bythe effect of SE to NW depletion along the rainfall path. That this is not seen suggeststhe prevailing wind direction at the time of the survey may have been from the NW.

Results for the coastal surface waters in the immediate vicinity of Teidamu lie in areasonably tight grouping with a composition of about δ

2H= -6.5‰ and δ 18O = -42‰.

The Nausori highland rainfall samples lie in a much lighter position ( δ 2H= -7.4‰ and

δ 18O = -49‰) reflecting their higher elevation and possibly downwind position.

Spring water from the Akhil Projects Limited property spring (Teidamu Spring T1 –SKM 2000; Akhil Spring 2002) has an intermediate composition, which is within thegeographical grouping of Varaciva, Vatura and Tuvatu. That the Akhil/Teidamuspring composition is well separated from that of local surface waters (i.e. surroundingcreeks and streams) and is isotopically lighter, suggests it has a source somewhereinland, possibly between Mount Evans range and Nausori Highlands, in the NadiRegion.

Figure 3-3 δ 2H versus δ

18O Stable Isotope Plot

δ 18O (‰)

T6T5

T4

T3T2

Teidamu Spring (T1)

Varaciva

Abaca

Tuvatu

Vatura

B

NH

Cox and Hulston (1980)

Samples from SKM 2000

-60

-50

-40

-30

-20

-8 -7 -6 -5

δ 2 H (‰)

Meteoric Water Line

Nausori Highlands

Teidamu Surface WatersAkhil Spring 2002


3.4 Tritium AnalysisTritium is a naturally occurring radioactive isotope of hydrogen which decays as abeta emitter. It is produced in small quantities in the upper atmosphere where it isincorporated into water molecules and, therefore, present in rainwater and surfacerecharge to aquifer systems. With a half-life of 12.3 years, tritium can be used to traceand date groundwater, calculate rates of water circulation in the hydrologic cycle, andassess how long a specific groundwater source has been stored out of contact withtritium laden recharge.

In comparison to many other atmospheric radioactive isotopes, tritium is extremelyrare and not affected by chemical processes. The naturally occurring tritium level inrainwater (pre-bomb) is estimated at 5 to 10 tritium units (TU; also referred to as TR).However, the amount of tritium in the atmosphere was greatly increased as a result ofnuclear weapons testing causing recharge waters to be "tagged" with excess tritiumbeginning in about 1954. Nuclear weapons testing resulted in atmospheric tritiumlevels in excess of 1000 TU. Modern day values have declined to levels between 50and 100 TU with the decline attributed to the elimination of atmospheric nuclearweapons testing and radioactive decay (MDEQ, 2002).

Tritium analysis may be used to estimate the time since recharge to the groundwatersystem occurred and the susceptibility of the groundwater system to contamination.Groundwater systems with recharge occurring prior to the 1950s will have a tritiumlevel decreased by radioactive decay to levels at or below one TU. Conversely,groundwater systems which have been recharged after the early 1950s will containtritium levels at, or significantly above, the natural "prebomb" backgroundconcentrations.

Analysis of the Akhil spring water sample by the Institute of Geological and NuclearSciences, New Zealand, provided the following result:

0.352 ± 0.025 TR at 8.7. 2002(TR = TU = 1 corresponds to a ratio T/H = 10-18, sigma TR = ± 1 standard measurement error).

This shows that the water from the spring is greater than 50 years old and that thegroundwater is not susceptible to contamination. This characteristic of the water ishighly desirable and marketable.

The tritium analysis results support the water chemistry and stable isotope analysisresults which indicated that the water is very old and originates many kilometres fromthe source.


4. Environmental Review

A preliminary environmental review was conducted to determine if there were anyfatal flaws that would prevent this project from being developed. No environmentalfeatures were found that would be likely to prevent the successful development of thewater bottling facility. Any potential environmental impacts can be adequatelymanaged through the implementation of appropriate mitigation strategies.

An outline of the relevant environmental factors is provided below.

Approvals

The approval of the Fijian government is required to carry out the groundwaterbottling activity. This Report should be submitted to the Department of MineralResources in Suva, together with a request for ‘Terms of Reference’ (ToR) for thestudies required to obtain the necessary approval. The ToR will include the aspectsrequired to be covered in an Environmental Impact Assessment (EIA) and othermatters such as a yield analysis.

Land use

The area for the bottling plant is on the lower slopes of a hill, with good access formachinery to enable the necessary earthworks. Site beautification and rehabilitationcan use endemic native species.

Soils

Any soil that becomes contaminated with any fuel or oil can be excavated andremoved to a licensed disposal / treatment facility off-site.

Flood risk

The plant will be located on elevated ground above any flooding risk area. The plant isto be constructed on a pad created by cut-and-fill.

Erosion and sediment control

Erosion and sediment control measures such as silt fences and diversions will beneeded during construction. Diversion drains can be easily maintained during theoperation of the plant to divert clean runoff from above the site, and to minimise waterpollution.

Groundwater

The construction activities will not impact upon the groundwater resource. Noabstraction from groundwater is expected as the main spring is estimated to naturallyliberate approximately 150 ML per year to the ground surface without abstraction. Theproposed plant will merely collect a proportion of this water released to the surface forbottling. Any future proposal to abstract groundwater would require further studies todetermine the groundwater profile and potential impacts of long-term use. It wouldalso negate the opportunity to market the water as “spring water” and so is not beingconsidered at this time.


Aquatic flora and fauna

The capture of spring water at the source will have negligible impact on aquatic floraand fauna. It is likely that only a few ML per year from the estimated total annual flowof 157 ML will be drawn from the spring for bottling. The vast majority of springwater will continue to flow downstream and maintain the aquatic ecosystem.

Terrestrial flora and fauna

Vegetation loss will be minimal, and minimised by avoiding vegetated areas andpreventing unnecessary clearing. Surveys will be required of the existing flora andfauna. However, there is not expected to any flora or fauna of any conservationsignificance as the area has been disturbed by past clearing and grazing activity. Theplant site is proposed for an area that is already largely free of native vegetation.There may be a need control weeds or other declared plants on and around the site.

Noise

The plant site is to be established about 300m away from the nearest residence.Construction noise may cause a nuisance, but operational noise should be acceptablewith adequate noise controls applied to the design and operation of the equipment.Noise emissions of equipment to be utilised in construction and operation will need tobe characterised, and noise modelling carried out to determine impact of noiseemissions on surrounding residences.

Air emissions

Air emission controls may not be required given the benign nature of the activity onair quality. There is adequate water for dust suppression from nearby creeks.

Roads and traffic

Johnson’s Road is an all weather road beside the property. There will need to be anew road (about 500m in length) to the plant site from Johnson’s Road. Johnson’sRoad will need to be upgraded for the increased truck traffic. The government mayseek a contribution for the improvement of the 5km length of Johnson’s Road thatrequires improvement.

Hazardous substances

There is sufficient area for the maintenance of vehicles and machinery on site.Materials such as diesel and fuel can be stored in accordance with standards withoutany significant hazard to the local community.

Access to the site is quick and easy from the nearby Kings Road (a major road in Fiji).Police and emergency services will need to be notified of the timing and location ofworks.

Social impact

The activity will have a beneficial social impact, as it will provide jobs for locals andstimulate other economic activity in the area. There will need to be an effectiveconsultation program maintained with surrounding landholders. All landholderslocated along Johnson’s Road will need to be notified prior to commencement ofconstruction activities. A consultation strategy will be required to ensure relevant


interested parties including landholders and surrounding residents are kept informed ofthe Project'’ progress and planned activities.

Cultural Heritage

Cultural heritage places or archaeological sites are unlikely on the site due to pastactivities and disturbance. Before significant disturbance of land is carried out,cultural heritage archaeological surveys will need to be completed for the EIA.

Environmental Monitoring

There will need to be effective environmental monitoring. Various monitoringmethods will be adopted depending upon the nature of the information required.


5. Civil Works and Cost Estimates

5.1 SurveyPreliminary survey work has been carried out previously on the site to assess therelative levels of the spring and a proposed factory site. Some additional topographywas recorded at the factory site to identify the available land area and the approximatevolumes of cut required to form a level bench for the development.

The survey was carried out to local datum and showed the spring to be at a level equalto the highest part of the natural surface at the proposed factory site. The levels of theproposed factory site vary by as much as 15m with a gentle and fairly even slope tothe west.

By utilising the lowest part of the plant site and allowing for a few meters of head lossat the spring and through the pipeline a head tank with an available pressure of 5 to10m over the factory floor should be achievable.

The results of the survey work are presented on the attached plans (Appendix B).

5.2 Pipeline and Water TankThe water at the main spring would be collected into a chamber or by use of FrenchDrains and diverted into a 75mm polyethylene pipeline in a shallow trench whichwould flow under gravity for about 500m to a 100m3 tank above the factory site.

5.3 Factory SiteThe factory site would be formed by bulk excavation to form a flat platform ofapproximately 200m by 100m to accommodate the factory, packaging areas andcontainer yards.

The earthwork platform would be covered by an engineered gravel pavement to carryfork lift and heavy truck traffic.

The access driveway and car park areas would have a sealed surface.

5.4 Access RoadThe site would be accessed by a 6m wide road from Johnston Road, a moderateamount of earthwork would be required. The road would have a gravel surface.

5.5 SewerageThe site development will require a septic tank sewage disposal system with soakagetrenches to dispose of the effluent. This would be accommodated on site adjacent butdown stream of the factory.


5.6 Natural Spring DevelopmentNatural spring development costs will depend on the number of springs to bedeveloped. Based on developing the main spring only, the following costs areestimated.

❑ Concrete chamber or French Drains to be constructed in order to preventcontamination of the natural spring.

❑ Drains to be 300-400mm wide and 1200 deep, filled with free draining materialand with 100mm perforated pipe on the bottom. Pipe to be discharged away fromspring.

❑ Length of drains 200m.

❑ Total estimated cost AU$10,000.

5.7 Pipeline and Storage TankPipeline and storage tank costs will depend on the number of springs to be developed.Based on developing the main spring only, the following costs are estimated.❑ Main spring has a steady flow of approximately 5 L/sec.

❑ Install 500m long pipeline - PE pipe – 75mm diameter

❑ 100m3 water tank

❑ Total estimated cost AU$35,000 - $40,000.

5.8 Plant Site❑ Extensive earthworks involved.

❑ Entire plant site in cut. Cut volumes 85,000m3. Soil disposal areas within site.

❑ Hardstanding areas for buildings, tanks, storage etc to be utilised.

❑ Paved areas within site to be designed.

❑ Surface water drainage essential.

❑ Total estimated costs in vicinity of AU$260,000.

5.9 Access Road❑ Moderate earthworks involved.

❑ 6.0m carriageway plus 0.5m shoulders each side

❑ Length of road approx. 450m.

❑ Pavement – 200mm sub-base & 100mm basecourse. Subgrade strength CBR>5

❑ Construction cost per linear meter AU$75.00

❑ Total estimated cost AU$35,000 - $60,000


5.10Sewage Disposal❑ Septic tank and absorption trenches are anticipated. Leakage field sizing is subject

to percolation rates and number of persons on site.

❑ Total estimated cost AU$15,000.


6. Conclusions & Recommendations

The spring water on the Akhil Projects Limited property at Teidamu is estimated toprovide a sustainable flow rate of at least 5 litres per second (150 ML per year). Waterextracted for bottling is likely to represent a small proportion of this total annual flow.

The water resource fits within the definition of “spring water” since it is derived froman underground formation, which flows naturally to the surface. This differs from“artesian water” which is water from a well and may be collected with the assistanceof external force to enhance the natural underground pressure.

The spring water generally has a composition well within the range seen for wellknown commercial bottled waters, and has a relatively higher silica content (82.3mg/kg), which is considered a favourable attribute. It has a neutral pH, calciumbicarbonate composition and a TDS of 120-170 mg/kg. The moderate TDS levelproduces a water of high palatability. Contaminants including faecal coliform bacteria,heavy metals, herbicides and pesticides were either below detection limits for thelaboratory or below the US FDA limits. Most of the time they were not detectable.

The chemistry and stable isotopic composition of the Teidamu water suggests it has aninland source, possibly between Mount Evans Range and the Nasauri Highlands, inthe Nadi region. This is encouraging from the point of view of developing a long-term, bottled water plant because it would imply the aquifer is reasonably wellseparated from the potentially contaminating effects of local surface waters.

Tritium analysis results show that the water is greater than 50 years old. Consequently,the aquifer is also considered not susceptible to contamination. These characteristicssignificantly increase the desirability of the water and hence its marketability.

There are no particular environmental issues regarding the development of the site forwater abstraction and bottling. The site development cost is sensitive to the volume ofearthwork which is dictated by the size and shape of the overall plant site.

An initial cost estimate for resource development and site civil works is approximatelyAU$385 000.

Given the apparent sustainability of the water resource and high quality of the water, itis recommended that the project be investigated further. An environmental impactassessment is required to be presented to the Fiji government to demonstrate that theproject poses no significant impact to the environment. Assessment of the commercialviability of the bottling plant should be investigated.


7. References

Cox M.E and Hulston J.R. (1980). Stable isotope study of thermal and other waters inFiji. New Zealand Journal of Science, 1980, 23, 237-249.

MDEQ (2002). Use of Tritium in Assessing Aquifer Vulnerability. MichiganDepartment off Environmental Quality. http://www.deq.state.mi.us/documents/deq-dwrpd-gws-wpu-Tritium.pdf.

SKM (2000). Macquarie Valley Juice Company: Teidamu Water Bottling Plant.


Appendix A Stable Isotope and TritiumAnalyses

The following analysis reports are from stable isotope and tritium analyses conductedon the Akhil Spring water, which was collected on 8 July 2002 and analysed by theInstitute of Geological and Nuclear Sciences, New Zealand.


Stable Isotope Laboratory, Rafter BuildingPO Box 31312, Lower Hutt, New Zealand, Telephone: +64-4-570 4637, Facsimile: +64-4-570 4657

Delivery Address: 30 Gracefield Road, Lower Hutt, New Zealand

A Crown Research Institute

Stable Isotope LaboratoryWater Isotope Report

Client: Sinclair Knight Merz Ltd

Attn: John KennedyClient Reference:SIL Order No: 1738 and 548

Sample Name δ 2 H‰) δ 18 Ο ‰)

AKHIL Spring -44.2 -7.0

Total: 1 Samples.

All measurements are with respect to VSMOW, and have uncertainties of ±1.0‰ for δ2H and ±0.1 ‰for δ 18O.

Samples will be kept for 3 months from the date of this report and then discarded unless otherwisenotified.Results approved for release by Kevin Faure. ([email protected])25/07/02

SIL Order No: 548Client Reference: P1104900 INT:op Fiji Surface Waters

NH=Nausori Highlands -48.9 -7.42B=Bukuya -49.6 -7.41V=Vaturu -45.3 -6.86TV=Tuvatu -45.4 -7.15ABC=Abaca -40.3 -6.49VC=Varaciva -45.6 -6.76T1=Teidamu-Subject Spring -48.0 -6.81T2=Small Creek -43.5 -6.52T3=Small Creek -44.5 -6.42T4=Bligh Waters Farm -40.9 -6.41T5=Small Creek -42.0 -6.49T6=Large Spring -43.5 -6.71

Results approved 23/3/00.


5 November 2002

Sinclair Knight Merz Pty LimitedACN001 024 095ABN 37 001 024 095PO Box 246Spring Hill QLD 4004369 Ann StreetBrisbane QLD 4000AUSTRALIA

Attn. John Kennedy

Dear John

The tritium analysis of your water sample Akhil Spring, Fiji (our reference numberTM705) has been completed. The result is:

0.352 ± 0.025 TR at 8.7. 2002

TR = TU = 1 corresponds to a ratio T/H = 10-18, sigma TR = ± 1 standard measurement error.

Best regards

Uwe Morgenstern(Team Leader Tritium & Water dating Lab)


Appendix B Preliminary Site Plans

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