3 current operations - major projects

Mangoola Coal Mod 6 EA Final for Public Exhibition 15

3 Current operations

3.1 Approval history

PA 06_0014 was originally granted under Part 3A of the EP&A Act in 2007 and includes approval to extract up to 10.5 Mtpa ROM coal for up to 21 years.

Five modifications to PA 06_0014 have been approved to date, namely:

• Modification 1 – Early works modification;

• Modification 2 – Hunter River pipeline modification;

• Modification 3 – Relocation of mining infrastructure area;

• Modification 4 – Relocation of 500 kilovolt (kV) electricity transmission line (ETL) and mine modifications; and

• Modification 5 – Night‐time rail works.

Modifications 1, 2, and 3 were identified prior to the commencement of construction following review of the plans and designs and were largely related to construction activities and the location and construction of infrastructure on the site. Modification 5 was identified after commencement of construction and related to requirements to undertake limited night‐time works during the construction phase. The works associated with each of these modifications were largely complete, or underway, as of February 2013.

The modifications approved under Modification 4 were identified in order to address a key constraint of the mine plan approved under the original project, being the existing 500 kV ETL which bisects the resource to be extracted. The presence of the ETL meant that the mine plan had to be designed around this infrastructure, which resulted in two pits operating for life of the mine, either side of the ETL corridor in the initial stages of the mine life. This resulted in environmental constraints to mining operations such as disjointed rehabilitated final landform either side of the ETL corridor. Safety setback limits to the ETL were also required, which further constrained operations around the ETL resulting in the sterilisation of coal, and presented potential safety risks to personnel on‐site.

To overcome these constraints and improve the efficiency and optimise the resource recovery, Xstrata Mangoola proposed to relocate the ETL to the western perimeter of the approved project disturbance boundary. In conjunction with relocation of the ETL, a revised mine plan was proposed which largely comprises two operational pits, the Northern Pit and Southern Pit, together with improvements in mining methods to increase efficiencies of operation. Minor additional disturbance areas identified outside the approved project disturbance boundary were also proposed for resource recovery, operation of water management infrastructure, and alterations to drainage design surrounding the rail loop. Modification 4 of PA 06_0014 was approved on 22 June 2012 by the PAC under delegation from the Minister for Planning and Infrastructure. The associated Project Approval 10_0002 for the ETL relocation was granted to the proponent, TransGrid (NSW), on 16 July 2012.


3.2 Approvals and tenements

Table 3.1 outlines the relevant approvals, mining authorities, leases and licences which apply to Mangoola Coal.

Table 3.1 Relevant approvals, mining authorities, leases and licences which apply to Mangoola Coal

Regulatory authority Approval number Title Anniversary/expiration date

Mining Authorities

Department of Primary Industries (DPI) (now part of the Department of Trade and Investment, Regional Infrastructure and Services (DTIRIS))

ML 1626 Mining lease (ML) 1626 20 November 2029

EL 5552 Exploration lease 5552 7 November 2014

AL 9 Assessment lease 9 7 November 2014

Mangoola Coal MOP Mining Operations Plan (MOP)

December 2013

Environment protection licence

Environment Protection Authority (EPA)

EPL No. 12894 Environment protection licence (EPL) No. 12894

Anniversary date 7 July

Project approvals

DP&I Project approval 06_0014 Project approval 20 November 2029

06_0014 MOD 1 Minor modification to project approval – early works

20 November 2029

06_0014 MOD 2 Modification to project approval – pipeline modification

20 November 2029

06_0014 MOD 3 Modification to project approval – mining infrastructure and CHPP

20 November 2029

06_0014 MOD 4 Modification to project approval – relocation of 500 kV and mine plan modifications

20 November 2029

06_0014 MOD 5 Modification to project approval – night time works

20 November 2029

Other licences

EPA RL 42108 Radiation licence 42108 28 April 2013

NSW Office of Water (NOW) Various groundwater licences

A summary of groundwater licences is provided in the SWMP available on Xstrata Mangoola’s website.

Various groundwater licences

Various surface water access licences

A summary of surface water access licences is provided in the Site Water Management Plan (SWMP) available on Xstrata Mangoola’s website.

Various surface water access licences


3.3 Key features of the current operations

Key features of Mangoola Coal’s current operations are summarised in Table 3.2. The location of the approved project disturbance boundary and mine infrastructure is shown on Figure 3.1.

Table 3.2 Current operations

Aspect Current operations (as modified most recently under Modification 4)

Extraction limit Maximum extraction of 10.5 Mtpa of ROM coal.

Project approval term 21 years to November 2029.

Operating hours Operation of the mine 24 hours per day, seven days per week.

Number of employees Operational workforce of up to 300 employees.

Mining methods Open‐cut truck and shovel operations to handle overburden and remove coal.

Mining areas Within approved project disturbance boundary as determined under Modification 4 (refer to Figure 3.1).

Coal processing Operation of the CHPP which includes a Coal Preparation Plant (CPP). A bypass system has been implemented which allows crushed coal to bypass the CPP and be transported directly by enclosed conveyor from the surge bin straight to the product coal stockpile area for transportation off‐site by the existing rail load‐out facilities. Placement of coarse rejects predominantly within mined areas. Tailings are managed through a series of in‐pit tailings dams, with ongoing management of overburden emplacement within mined areas.

Infrastructure Infrastructure comprises:

• CHPP and associated infrastructure;

• Northern Access Road and Wybong Road intersection;

• rail infrastructure;

• administration and employee facilities;

• electrical power reticulation;

• telecommunication cables;

• water supply and sewage systems;

• tailings and water management infrastructure including the Hunter River Pump Station and Hunter River Pipeline;

• workshop and refuelling facilities;

• lighting; and

• explosives storage.

External coal transport Loading of product coal onto trains and transport to market via the Mangoola Coal rail loop and spur connected to the Muswellbrook‐Ulan railway. Up to 10 trains per day.

3.4 Status of mine development

Open‐cut mining commenced at Mangoola Coal in September 2010. Extraction then commenced in the Tailings Pit (refer to Figure 3.1), progressing in a north‐easterly direction. Water management infrastructure constructed includes the Raw Water Dam (RWD), Pit Water Dam (PWD), other required sediment and erosion control features and dams, and the Hunter River Pump Station and Hunter River Pipeline (refer to Figure 3.1).


Mangoola Coal operates within a SWMP and the requirements of relevant water sharing plans (refer to Section 5.4.6). Mangoola Coal has unit shares of the Hunter Regulated River Water Source and water access licences (WAL) to take water from the Hunter River, via Mangoola Coal’s Hunter River Pipeline (refer Figure 3.1), to supplement on‐site water requirements. Mangoola Coal also holds salinity credits for the discharge of saline water to the Hunter River under the HRSTS; however, approval for discharge has not previously been sought, therefore, saline discharges to the Hunter River are not part of current operations.

Under the current approved mine plan, mining has commenced in the Northern Pit to the east of the existing 500 kV ETL, progressing in a south‐easterly direction. A separate project approval has been granted to TransGrid for the removal of the existing 9 km section of ETL which bisects the coal resource, and construction of an 11.1 km section of 500 kV ETL along the western side of the approved project disturbance boundary (refer Figure 3.1). Of the 11.1 km, approximately 5.8 km is within Mangoola Coal’s approved project disturbance boundary. The ETL was a key constraint of the original mine plan. Once the relocation of the ETL has occurred and the existing ETL decommissioned and removed, the Northern Pit will progress largely as a single pit in a south‐westerly direction towards Anvil Hill.

The Southern Pit is expected to commence operation in Year 5 of the mine under current operations, progressing in a westerly to north‐westerly direction. The Southern Pit joins up with the Northern Pit to form the Main Pit in approximately Year 8, which will then generally progress in a westerly direction. The Main Pit progresses around either side of Anvil Hill until completion of mining in Year 15, leaving a final void along the western perimeter of the approved project disturbance boundary.

3.5 Environmental framework

3.5.1 Environmental management strategy

Mangoola Coal operates in accordance with a comprehensive Environmental Management Strategy (EMS) which provides the strategic context and is the overarching document for environmental management of current operations. The EMS has been prepared in accordance with the XCN Sustainable Development Management Framework and the requirements of PA 06_0014.

Xstrata Mangoola implements an Environmental Monitoring Program for current operations. The program includes the monitoring of noise and vibration, air quality, surface water, groundwater, ecological and meteorological monitoring. The data is used in measuring ongoing environmental performance of operations against regulatory requirements. This includes requirements under PA 06_0014 and EPL No. 12894. The existing monitoring network, as of April 2013, is shown in Figure 3.2 and includes:

• two weather stations on Wybong Road (WS1) (used for compliance purposes) and Coolabah Road (WS2);

• 21 dust deposition gauges;

• seven high volume air samplers (HVAS);

• four tapered element oscillating microbalance (TEOMs) instruments;

• five continuous unattended noise monitoring locations, and five attended monitoring locations which are monitored on a quarterly basis;

• four vibration monitoring locations;


• 50 groundwater monitoring locations; and

• 17 surface water monitoring locations.

Xstrata Mangoola also employs two Beta Attenuation Monitors (BAM) and an E‐sampler to measure PM2.5 and PM10, respectively, which do not have permanent monitoring locations and are used as supplementary monitoring.

Monitoring data is reported annually in accordance with Mangoola Coal’s relevant approvals.

A suite of management plans and monitoring programs have been implemented for operations in accordance with PA 06_0014. A summary of the current status of Mangoola Coal’s management plans and monitoring programs required under PA 06_0014 is presented in Table 3.3. Relevant management plans will be updated, where required, to include the proposed modification.

Table 3.3 Summary of current status of Mangoola Coal’s management plans and monitoring programs

PA 06_0014 condition Requirement Status Comment

Schedule 3, Condition 11 Noise Management Plan (NMP)

Submitted 31/10/2012 Awaiting approval (Mod 4 Amended)

Schedule 3, Condition 19 Road Closure Plan Approved 17/05/2011 Revision will be submitted in April 2013 to MSC and DRE.

Schedule 3, Condition 23 Blast Monitoring Program Re‐submitted 21/12/2010 DP&I feedback incorporated Will be reviewed in 2013

Schedule 3, Condition 27 Air Quality Management Plan (AQMP)

Submitted 31/10/2012 Awaiting approval (Mod 4 Amended)

Schedule 3, Condition 31 SWMP (and its components) Re‐submitted 10/12/2012 DP&I feedback incorporated Will be reviewed in 2013

Schedule 3, Condition 32 Site Water Balance Re‐submitted 10/12/2012 As above

Schedule 3, Condition 33 Erosion and Sediment Control Plan

Re‐submitted 10/12/2012 As above

Schedule 3, Condition 34 Surface Water Monitoring Plan


Schedule 3 Condition 35 Groundwater Monitoring Program


Schedule 3, Condition 36 Surface and Groundwater Response Plan

Approved 19/12/2012 As above

Schedule 3, Condition 40A Translocation Plan Approved 19/02/2013 Modification 4 addition

Schedule 3, Condition 41 Landscape Management Plan (and its components)

Re‐submitted 21/12/2010 DP&I feedback incorporated Will be reviewed in 2013

Schedule 3, Condition 42 Rehabilitation and Offset Management Plan

Re‐submitted 21/12/2010 DP&I feedback incorporated Will be reviewed in 2013

Schedule 3, Condition 43 Final Void Management Plan Re‐submitted 21/12/2010 DP&I feedback incorporated

Schedule 3, Condition 44 Mine Closure Plan Re‐submitted 21/12/2010 DP&I feedback incorporated

Schedule 3, Condition 46 Aboriginal Cultural Heritage Management Plan

Submitted 25/08/08 Approved 5/1/2009

Schedule 3, Condition 48 Conservation Management Strategy

Submitted 4/08/2010 Under review ‐ submission planned for April 2013


Table 3.3 Summary of current status of Mangoola Coal’s management plans and monitoring programs

PA 06_0014 condition Requirement Status Comment

Schedule 3, Condition 51 and 51A

Construction Traffic Management Plan

Submitted 19/02/2010 Approved

Schedule 3, Condition 53 Visual Assessment Report Submitted 6/5/2008 Approved 27/05/2008

Schedule 3, Condition 58 Energy Savings Action Plan Re‐submitted 13/01/2011 DP&I feedback incorporated

Schedule 5, Condition 1 Environmental Management Strategy

Re‐Submitted 2/12/2010 DP&I feedback incorporated

Schedule 5, Condition 2 Environmental Monitoring Program

Submitted 10/01/2011 Updated to reflect changes to referenced plans.

Statement of Commitments Spontaneous Combustion Management Plan

Complete Latest Version (4): 02/01/2012

3.5.2 Best endeavours to acquire

Schedule 3, Condition 2 of PA 06_0014 requires Xstrata Mangoola to demonstrate its best endeavours to either acquire all of the land where landowners are entitled to acquisition rights, as identified in the table in Appendix 5 of PA 06_0014 (being properties adversely affected by noise, blasting and/or air quality), or enter into a negotiated agreement with these landowners. In accordance with Schedule, 3 Condition 2 of PA 06_0014, a report was submitted to DP&I prior to the commencement of mining operations to demonstrate its best endeavours to acquire the land specified in Appendix 5. The properties remaining from the table in Appendix 5 of PA 06_0014, in May 2013, are presented in Table 3.4.

Table 3.4 Landowners with acquisition rights

Residential receptor ID

Owner Lot DP Significant noise impact

Significant Air Impact

Significant Blast Impact ‐ Vibration

Significant Blast Impact ‐ Overpressure

Residences

56 Buddin KW & Bezzina S 23 240086 Yes Yes Yes Yes

34 Cole G R 186 750924 Yes ‐ ‐ ‐

121 Fairweather JA 2 593485 Yes ‐ ‐ ‐

132 Horden RJ & AM 180 750924 Yes ‐ ‐ ‐

81 Phelps JR & CM 12 240086 Yes ‐ ‐ ‐

83 Ray MD & JT 9 750968 ‐ Yes Yes Yes

25 Withers KL, LA, RIC & PJ RAY 168 750968 Yes ‐ Yes Yes

Additional Properties >25% Affected

‐ Googe FN & WL 1/1 75029/ 414239 Yes ‐ ‐ ‐

‐ Fairweather CR, ALJ, JMA & WS1

68‐71, 76, 77 750924 Yes ‐ ‐ ‐

66 LeBreton 122 585122 Yes ‐ ‐ ‐

164 Valantine, MG 88 818690 Yes ‐ ‐ ‐ Notes: 1. The Lot and DP for this property are incorrectly stated in Appendix 5 of PA 06_0014 as Lot 71 DP 9011088.

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3 current operations - major projects

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