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DRAFT RECOMMENDATION REPORT Wodgina Direct Shipping Ore Project Stage 2, Atlas Iron Ltd, Pilbara, WA EPBC 2011/5975 Northern Quoll (Dasyurus hallucatus) Photograph: Northern quoll, Dasyurus hallucatus, photo taken by Craig Ward provided in the National Recovery Plan for the northern quoll.

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Page 1: DRAFT RECOMMENDATION REPORT Wodgina Direct Shipping …

DRAFT RECOMMENDATION REPORT

Wodgina Direct Shipping Ore Project Stage 2, Atlas Iron Ltd, Pilbara, WA

EPBC 2011/5975

Northern Quoll (Dasyurus hallucatus)

Photograph: Northern quoll, Dasyurus hallucatus, photo taken by Craig Ward provided in the National Recovery Plan for the northern quoll.

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Recommendation report 1 Recommendation 1.1 The department recommends that the proposed construction and operation of Stage 2 of the

Wodgina Direct Shipping Ore (DSO) Project (the proposed action) be approved under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) subject to the following conditions:

Conditions of Approval

1. The person taking the action must not clear more than 162 hectares. A report and maps verifying compliance with this condition must be submitted to the Minister within three months of completion of the clearing works.

Fauna Management Plan 2. The person taking the action must prepare a Fauna Management Plan, for the approval of the

Minister, that maximises the ongoing protection and long term conservation of EPBC Act listed threatened fauna species. The Plan must be developed by an appropriately qualified expert, in consultation with the WA DEC. The Plan must address, but is not limited to, the following information:

a. Measures to minimise mortality of EPBC Act listed threatened fauna species during construction;

b. Measures to protect EPBC Act listed threatened fauna habitat located adjacent to cleared areas;

c. Implementation of measures to rehabilitate areas disturbed during construction; d. A fauna monitoring program to be undertaken to;

i. collate baseline population data prior to the commencement of construction, and followed with ongoing annual monitoring of EPBC Act listed threatened fauna species for the life of the project to measure the impacts of the action over time;

ii. measure the success of management measures to inform an adaptive management approach;

e. Reporting on milestones and compliance with this plan annually to the department; and f. The results of the monitoring program and compliance with the plan must be published

on the company’s website.

The person taking the action cannot commence construction until the plan is approved. The approved Fauna Management Plan must be implemented.

Research Offset Plan 3. The person taking the action must submit a Research Offset Plan, for approval by the Minister, to

ensure the better protection and long term conservation of EPBC Act listed threatened fauna species in the Pilbara region of Western Australia. The Research Offset Plan must be submitted within three months of the date of this approval decision. The research plan must contain, but is not limited to; identifying the key threat management actions required to restore and maintain functioning populations of EPBC Act listed threatened species in the Pilbara, and understanding actions that are required to protect listed threatened species, migratory species and the habitat they utilise, taking into account the costs and feasibility. The approved Research Offset Plan must be implemented. The person taking the action cannot continue construction or operation beyond 30 December 2011 unless the plan has been approved.

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Contribution to Landscape Scale Land Management 4. The person taking the action must submit a Strategic Land Management Plan, for approval by

the Minister, to ensure the better protection and long term conservation of EPBC Act listed threatened fauna species in the Pilbara region of Western Australia. The Strategic Land Management Plan must be submitted within twelve months of the date of this approval decision, and must be developed in consultation with the WA DEC. The plan must contain, but is not limited to, the following criteria:

a. Specify the location where the land management actions will be undertaken;

b. Provide a review of further studies and surveys that need to be undertaken to inform land management actions in (d), such as a wildfire threat analysis, vegetation mapping and a feral and weed assessment;

c. Details including the timing, methodology and funding commitments for (b);

d. Details of the land management actions to be undertaken, including locations, timing, frequency, duration and funding commitments;

e. Details of the long term benefits of the management actions for the conservation EPBC Act listed threatened fauna species in the Pilbara region of Western Australia through the use of empirical studies; and

f. Details of how the plan will contribute to other strategic land management programs being undertaken, or proposed, in the Pilbara region.

The person taking the action must not commence operation until the Strategic Land Management Plan is approved by the Minister. The approved Strategic Land Management Plan must be implemented.

General

5. Within 10 business days of commencement of the action, the person taking the action must advise the Minister in writing the actual date of commencement.

6. If the person taking the action becomes aware of new information regarding the scale of impacts to any EPBC Act listed species or community, the person taking the action must report that information to the Minister within 10 business days of becoming aware of the new information.

7. If the Minister believes that it is necessary or desirable for the better protection of listed threatened species and communities to do so, the Minister may request that the person taking the action make specified revisions to the plans approved pursuant to conditions 2, 3 and 4 and submit the revised plan for the Minister’s approval. The person taking the action must comply with any such request. The revised approved plan must be implemented. Unless the Minister has approved the revised plan, then the person taking the action must continue to implement the plan originally approved.

8. If the person taking the action wishes to carry out any activity otherwise than in accordance with the plans referred to in conditions 2, 3 and 4 the person taking the action must submit for the Minister’s approval a revised version of the plan. The varied activity shall not commence until the Minister has approved the varied plan in writing. If the Minister approves such a revised plan, that plan must be implemented in place of the plan originally approved.

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9. Upon the direction of the Minister, the person taking the action must ensure that an independent audit of compliance with the conditions of approval is conducted and a report submitted to the Minister. The independent auditor must be approved by the Minister prior to the commencement of the audit. Audit criteria must be agreed to by the Minister and the audit report must address the criteria to the satisfaction of the Minister.

10. The person taking the action must maintain accurate records substantiating all activities associated with or relevant to the above conditions of approval, including measures taken to implement the plan required by this approval, and make them available upon request to the department. Such records may be subject to audit by the department or an independent auditor in accordance with section 458 of the EPBC Act, or used to verify compliance with the conditions of approval. Summaries of audits will be posted on the department’s website. The results of audits may also be publicised through the general media.

11. If, at any time after five years from the date of this approval, the Minister notifies the person taking the action in writing that the Minister is not satisfied that there has been substantial commencement of the action, the action must not thereafter be commenced without the written agreement of the Minister.

Definitions:

1. The EPBC Act is the Environment Protection and Biodiversity Conservation Act 1999.

2. The Minister means the Minister responsible for the administration of the EPBC Act.

3. The department means the Commonwealth department responsible for administering the EPBC Act.

4. Commence construction means such time as when any preparatory works required to be undertaken including clearing vegetation, the erection of any on-site temporary structures and the use of heavy duty equipment for the purpose of breaking the ground for buildings or infrastructure commences.

5. Commence operation commencement of mining activities in the Wodgina Stage 2 project area.

6. WA DEC means the Western Australian Department of Environment and Conservation or its successor organisation.

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2 Material on which the decision maker’s findings will be based

2.1 This draft recommendation report is based on the following information:

EPBC referral documentation and attachments received 24 May 2011; and

Referral decision brief signed 22 June 2011.

3 Background

3.1 The proponent proposes to develop Stage 2 of the Wodgina DSO Project, which is estimated at 7.8 million tonnes. The proposed action includes the expansion of the existing Anson mine pit, construction of three new mine pits Avro, Constellation and Dragon (Figure 1 & 2).

3.2 Stage 1 of the project (at 11.6 million tonnes) was approved under the EPBC Act on 8 April 2010 (EPBC 2009/5167). Stage 1 involved the open cut mining of three pits using conventional open pit mining techniques involving drill, blast, load and haul methods. The EPBC Act approval conditions for Stage 1 are found at appendix 1 of this report.

3.3 At the current rate of production, 4.5 million tonnes per annum, mining is expected to continue for approximately 6.5 to 7.5 years for the Project as a whole ( life of mine for the approved Stage 1 is 7 years, while life of mine for Stage 2 is proposed to be 2 to 3 years).

3.4 No mining pits are occurring below the water table and no additional water source, power generation, fuel, transport or workforce requirements are required above that approved for Stage 1.

3.5 Most of the necessary associated infrastructure already exists at the site, such as a haul road, run of mine pad, crushing and screening plants, accommodation and administration facilities etc. However the proposed new supporting infrastructure includes; the expansion of the existing waste rock dump, construction of two low-grade ore stockpiles, new topsoil stockpiles, haul road spurs and access tracks.

3.6 The proposed action is expected to have a disturbance of 162 hectares of land, increasing the total Wodgina DSO project area from 80 hectares to 242 hectares.

3.7 The proposed action is located within the Pilbara region approximately 100 km south of Port Hedland, 7 km west of the Great Northern Highway and 100 km east of Marble Bar, partially within the Kangan pastoral lease. The Project wholly encompasses the existing Atlas Wodgina DSO Stage 1 Project and is located adjacent to the existing Wodgina Tantalum mine, owned by Global Advanced Metals Wodgina Pty Ltd (Figure 1 & 2).

3.8 The proponent has scheduled construction to commence in quarter two 2011 pending relevant State and Australian Government approvals.

3.9 The referral states that no formal Environmental Impact Assessment is likely to be required under the WA Environmental Protection Act 1986 due to the size and impact of the proposed action.

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Figure 1 – Project location

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Figure 2 – Project layout

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4 Assessment Process

4.1 A referral for the proposed action was published on the department’s website on 24 May 2011 for a 10 day public comment period. No public comments were received.

4.2 The proposed action was determined a controlled action on 22 June 2011 due to likely impacts on listed threatened species (Section 18 and 18A). On the same day it was determined that the proposed action would be assessed by referral information.

4.3 This draft recommendation report has been prepared to satisfy the requirements of Section 93 of the EPBC Act and will be on public exhibition for a period of 10 business days, after which the recommendation report will be finalised and provided to the Minister for consideration on whether or not to approve the proposed action.

5 Context - Pilbara Bioregion of Western Australia

5.1 The proposed action is located within the Pilbara region of Western Australia which covers a total area of 507 896 km2, or over 50 million hectares, (including offshore islands) (WA Government Pilbara Profile).

5.2 The Pilbara consists of a mixture of Aboriginal freehold and leasehold reserve, national parks, nature conservation reserves and crown land consisting of a variety of pastoral and mining leases.

5.3 The region is currently undergoing a boom in the development of mineral resources, in particular iron ore. Almost 90% of Australia’s identified iron ore resources (totalling 38.5 billion tonnes) occur in Western Australia, including more than 80% in the Hamersley Province. The iron ore industry in the Pilbara is a major world exporter and this commodity provides the foundation for one of Australia's major export industries.

5.4 The proposed action is situated within the Pilbara IBRA bioregion which is a subset of the broader Pilbara region described in paragraph 4.1, and covers an area of 178 060 km2. It includes four identified subregions; PIL - 1 Chichester, PIL2 - Fortescue, PIL3 - Hamersley and PIL4 – Roebourne. The Pilbara IBRA bioregion provides habitat for a number of threatened, endemic and fire-sensitive species and communities. The Australian Government's Threatened Species Scientific Committee has identified the Pilbara IBRA bioregion as one of 15 biodiversity hotspots in Australia that contain particularly high levels of biodiversity under threat (Australian Government 2003).

[Map Source: Australian Natural Resources Database

5.5 The Australian Government is working towards a target of securing ten per cent of bioregions in the National Reserve System and has set a target for increasing the area that is protected by at least five million hectares a year with a priority in under-represented bioregions (Australian Government NRS Fact sheet). The Western Australian Government states that 15 per cent of bioregions are increasingly being seen as a benchmark figure for conservation (CALM 2003).

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5.6 The proposed action is within the Chichester subregion of the Pilbara IBRA bioregion. This subregion has been identified by the Australian Government as being under-represented in the National Reserve System.

5.7 No detailed quantitative (quadrat-based) regional surveys of flora and fauna have been published for the Pilbara bioregion, so regional flora and fauna is currently poorly known. Only small, local areas have been examined in detail by biologists, usually for industrial development (ANRA Western Australia Rangelands Overview). This knowledge gap was recognised by the WA Department of Environment and Conservation which undertook a Pilbara Region Biological Survey between 2002-2009, however the full results of that survey are not expected for another five years.

5.8 Significant land degradation has occurred throughout the Pilbara due to over grazing, introduction of weeds and feral animals. Feral donkeys, camels and goats are also contributing to land degradation and foxes and cats are widespread. Mining developments, including supporting infrastructure such as haul roads and rail lines, are now also emerging as an increasing contributor to habitat loss and land degradation (ANRA Western Australia Rangelands Overview).

5.9 Those threatening processes have placed increased pressure on listed threatened and migratory species in the Pilbara. The department considers that given the increasing number of larger mine and rail developments proposed, the cumulative impacts of habitat loss and degradation will place further pressure on the conservation and recovery of threatened and migratory species in the Pilbara.

6 Impacts Impacts on fauna

6.1 The referral documentation identifies the direct impact on EPBC listed threatened fauna species as habitat removal, and the potential indirect impacts as:

Habitat modification, such as from dust deposition and altered hydrological regimes;

Altered fauna behaviour and/or habitat degradation caused by noise, vibration and light emissions;

Introduction and/or increased prevalence of weeds; and

Increased feral animal presence caused by inappropriate waste collection and disposal practices, and inadequate rehabilitation of disturbed land.

Habitat loss, fragmentation and degradation

6.2 The department considers that there is the potential for adverse impacts on the natural environment from mining operations and the development of linear infrastructure such as roads, rail lines, and utility easements.

6.3 A recent journal paper by Woinarski et al (2011) examined the potential reasons behind observed declines (rapid and severe in the case of Kakadu, NT) in native mammal fauna in Northern Australia. The article notes that the decline appears to be unrelated to any short-term climatic variation, and considered four proximate factors for the decline: habitat change, predation by feral cats, poisoning by invading cane toads and new diseases.

6.4 Woinarski et al (2011) note that the persistence of mammals across Northern Australia is now uncertain and highlight that trends in populations are difficult to define because of deficiencies in historical data and only recent efforts to monitor populations. Woinarski et al (2011) consider that recent intensive monitoring studies and subsequent population models suggest severe decline or extinction for some species within the next 20 years.

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6.5 Development of mining proposed actions and linear infrastructure in the Pilbara region has the potential to confound the impacts of existing threatening process (and future threats such as the Cane Toad (Bufo marinus) for threatened fauna species such as the Northern Quoll (Dasyurus hallucatus), Greater Bilby (Macrotis lagotis), Mulgara (Dasycercus cristicauda), Pilbara Leaf-nosed Bat (Rhinonicteris aurantia (Pilbara form)), Olive Python (Pilbara subspecies) (Liasis olivaceus barroni), Night Parrot (Pezoporus occidentalis) and Northern Marsupial Mole (Notoryctes caurinus).

6.6 The department notes that while recent mining proposed actions have contributed species information to existing data bases, there still is very little information known about the threatened fauna of the Pilbara, including species ecology, habitat preferences, population changes over time and population viability in the long term.

6.7 The referral documentation states that the proposed action would directly result in the clearing of an additional 162 hectares of land which is known to contain habitat for listed threatened EPBC Act species.

6.8 Broadscale clearing of native vegetation, both historic and current, is a listed threatening process under the EPBC Act that impacts on biodiversity. While significant areas of native vegetation remain uncleared in the Pilbara region, large areas have been disturbed by grazing of cattle, sheep and feral animals.

6.9 Knowledge about life history, taxonomy, ecology, and basic biology of fauna is critical to the management of their habitat. The consequences of continuing habitat loss and degradation on the biodiversity of the Pilbara are difficult to quantify due to the limited empirical data on many affected species.

6.10 As well as direct habitat loss, the proposed action has the potential to cause fragmentation impacts. The restriction of fauna movement and an increase in the functional isolation of populations from the construction of infrastructure has the potential to cause genetic effects on fauna populations (Holderegger & Di Giulio, 2010). Genetic effects include a decrease in genetic diversity, an increase in genetic differentiation of populations or individuals and may lead to increased inbreeding. The division of habitat into smaller fragments also reduces population sizes.

6.11 The negative genetic effects of small population size and genetic isolation need time to become detectable, i.e. it needs several generations for spatial genetic structure to build up. This means there is a time lag between the causal process and biological response.

Mortality during construction & operation

6.12 Threatened fauna may be killed during vegetation clearing activities and/or earthworks and ongoing mining operations. This impact has the potential to cause a reduction in population size and viability.

6.13 The consequences of this impact depend on the vulnerability of species to these activities including their ability to disperse ahead of the construction front, and the scale of clearing undertaken.

Impacts of the proposed action on listed threatened fauna species

6.14 The proposed action was determined a controlled action due to likely significant impacts on EPBC listed threatened species. The department’s EPBC Act Environmental Report identified five listed fauna species that have the potential to occur in the proposed action footprint:

- Greater Bilby (Macrotis lagotis) – Vulnerable;

- Mulgara (Dasycercus cristicaudata) – Vulnerable;

- Northern Quoll (Dasyurus hallucatus) – Endangered;

- Pilbara Leaf-nosed Bat (Rhinonicteris aurantius (Pilbara form)) – Vulnerable; and

- Olive Python (Liasis olivaceus barroni (Pilbara subspecies)) – Vulnerable.

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Northern Quoll (Dasyurus hallucatus)

6.15 The Northern Quoll is listed as endangered under the EPBC Act. In Western Australia, the species is listed as rare or likely to become extinct under the Wildlife Conservation (Specially Protected Fauna) Notice 2008(2).

6.16 The Northern Quoll was historically common across northern Australia occurring almost continuously from the Pilbara region of Western Australia to near Brisbane, Queensland. However this species is now in rapid decline.

6.17 Its range is now limited to six major geographical centres: Drummond Range, central Queensland; wet tropics Northern Queensland; northern Cape York Peninsula; northern and western Top End, Northern Territory; north Kimberley and the Pilbara, Western Australia.

6.18 The species' preferred habitat consists of rocky escarpment, open forest and open woodland. Northern Quoll are most abundant in habitats within 150 km of the coast, however the species range also extends into semi-arid regions, such as the Pilbara region of Western Australia where they are likely to occur at lower densities.

6.19 Rocky habitats support higher densities and/or longer lived individuals within the species range, due to more protection from predators, better nutrition (which translates to higher incidence of breeding and rates of breeding success), and less exposure to agricultural practices. Rocky habitats also support a higher density of Northern Quoll dens.

6.20 The threatening processes over this species’ range include the degradation and destruction of habitat through, for example, fire and pastoral land uses which remove vegetation cover leading to increased predation. Another significant threatening process is the ingestion of Cane Toad (Bufo marinus) toxins which have caused the rapid population crashes of Northern Quoll across northern Australia. There are a number of large National Parks in the Pilbara that contain suitable habitat and known populations of Northern Quoll, however this represents only a very small proportion of the landscape. Consequently most of the potential Northern Quoll habitat present in the Pilbara region is subject to threats such as altered fire regimes and fragmentation.

6.21 There is currently no information available on the population viability of the Northern Quoll in the Pilbara and how an increase in cumulative threats from the cane toad, pastoral activities, fire regimes, linear infrastructure and mining activities impact on the species in the future.

6.22 The referral documentation state the Northern Quoll occurs in relatively high densities within the proposed action disturbance area. 18 individuals were recorded during Northern Quoll monitoring conducted at Wodgina in February 2010 (Outback Ecology Services 2010c). The majority of these captures were recorded to the north of the disturbance area; however one individual was captured within the disturbance area.

6.23 The referral documentation states that based on trapping results from the 2010 monitoring program and other surveys undertaken within the study area, the Northern Quoll population has been estimated at twenty individuals occurring across the study area (which includes the proposed action footprint).

6.24 The referral documentation identifies that the proposed action will result in the loss of an additional 67.94 hectares of Northern Quoll habitat.

Potential Impacts

6.25 The referral documentation states that the total impact of the proposed action on the Northern Quoll, will have a moderate impact at the local scale and low impact at the regional scale.

6.26 The referral documentation states that mortality at the local scale from ongoing mining activities is likely to occur as a result of the proposed action. The department notes that the proposed action will not result in the expansion of the mining fleet and vehicle numbers.

6.27 The department considers that the proposed action has the potential to cause:

loss of habitat, which is likely to include both foraging habitat and denning / shelter habitat;

mortality of individuals from ongoing mining activities;

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habitat alteration due to changes in the physical and chemical environment which may degrade habitat in the vicinity of the proposed action over the long term, particularly if rehabilitation of the mining area is not adequately managed; and

fragmentation impacts including decline in population numbers and decline in genetic diversity due to the creation of a barrier to movement, migration, dispersal and genetic exchange.

6.28 The department notes that the proponent has committed to ongoing monitoring of the Northern Quoll populations during the life of the mine to assess impacts on the species and the effectiveness of the proponent’s management commitments.

Pilbara Leaf-nosed Bat (Rhinonicteris aurantius (Pilbara form))

6.29 The Pilbara Leaf-nosed Bat is listed as vulnerable under the EPBC Act. In Western Australia, the species is listed as rare or likely to become extinct under the Wildlife Conservation (Specially Protected Fauna) Notice 2008(2).

6.30 The Pilbara Leaf-nosed Bat has very specific habitat requirements, only occupying warm, very humid roost sites in caves and mines. The humid conditions are associated with permanent water sources present within the cave systems. To avoid moisture loss during the dry season, individuals rarely travel more than 10 kms from roost sites.

6.31 The species has three discreet subpopulations: in eastern Pilbara mines, smaller colonies are scattered throughout the Hamersley Range, and in sandstone formations south of the Hamersley Range. There is a possibility that additional roost colonies may be discovered.

6.32 A major component of the Pilbara Leaf-nosed Bat population occurs in Barlee Range Nature Reserve. No roosts has been confirmed in any other reserve in the region. The remainder of known roosts and observations of bats in flight or specimens collected occur on mining and pastoral leases.

6.33 The threatening processes over this species’ range include heat and water loss, mine collapse and flooding, natural predators, mine development, blasting in adjacent mine workings, human entry of roost, road kill, and mine site rehabilitation (i.e. infill of mine shafts).

6.34 The referral documentation states the Pilbara leaf-nose Bat has been recorded from the ironstone ridge and minor gorge habitat types within the study area. Pilbara leaf-nosed Bat monitoring was undertaken in September and December 2010 as per the requirements of the Significant Species Management Plan. The Pilbara leaf-nosed Bat was detected at two of 11 sites surveyed by AnaBat ultrasonic detectors. The referral documentation states that the number of sequences was relatively low in both cases, and most activity was detected well after dusk, suggesting that they may have detected foraging bats rather than roost bats.

6.35 The referral documentation states that the proposed action will result in the loss of an additional 22.8 hectares of potential roost habitat for the Pilbara Leaf-nosed Bat.

Potential Impacts

6.36 The referral documentation states that the impacts to the Pilbara Leaf-nosed Bat are considered moderate at the local scale, and low at the regional scale. The referral documentation states that the proposed action could potentially result in a permanent decline of the local population of these species

6.37 The department considers that the proposed action also has the potential to cause:

loss of foraging habitat;

mortality of individuals from ongoing mining activities;

habitat alteration due to changes in the physical and chemical environment which may degrade habitat in the vicinity of the proposed action over the long term, particularly if rehabilitation of the mining area is not adequately managed;

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fragmentation impacts including decline in population numbers and decline in genetic diversity due to the creation of a barrier to movement, migration, dispersal and genetic exchange; and

disturbance from noise, light and vibration resulting in the loss of habitable roost caves in the vicinity of the proposed action.

6.38 The department notes that the referral documentation outlines commitment to the implementation of a management plan, which includes management measures, monitoring programs, reporting, performance criteria and corrective actions.

Greater Bilby (Macrotis lagotis)

6.39 The Greater Bilby is listed as vulnerable under the EPBC Act. In Western Australia, this species is listed as rare or likely to become extinct under the Wildlife Conservation (Specially Protected Fauna) Notice 2008(2).

6.40 The species distribution includes areas of Western Australia and the Northern Territory, with an outlying population in south-west Queensland. Its distribution has contracted to less than 20 per cent of its former range. Reintroduction is being trialled in areas of NSW, South Australia and Western Australia where the species was historically found (SPRAT).

6.41 In Western Australia, the Greater Bilby is restricted to the Great Sandy Desert and Gibson Desert and the Pilbara region. The Pilbara region now lies on the southern edge of the species range in Western Australia.

6.42 The referral documentation states that no suitable habitat was identified during fauna surveys for both Stage 1 and Stage 2 Projects.

Potential Impacts

6.43 The department considers that adverse impacts on the Greater Bilby are unlikely, based on the absence of suitable habitat.

Mulgara (Dasycercus cristicaudata)

6.44 The Mulgara is listed as vulnerable under the EPBC Act. In Western Australia, the species is listed as rare or likely to become extinct under the Wildlife Conservation (Specially Protected Fauna) Notice 2008(2).

6.45 Dasycercus cristicaudata was placed on the EPBC threatened species list on 17 July 2000. Woolley (2005) has subsequently redefined that species into two species of ‘Mulgara’; D. blythi and D. cristicauda, and has described the species listed under the EPBC (D. cristicauda) as D. blythi. However, the species in the Pilbara will be considered to be D. cristicauda until the issue has been resolved through the Australian Government Threatened Species Scientific Committee.

6.46 Mulgara is a small, carnivorous marsupial that is widely distributed in patches throughout the sandy deserts with the species present in Western Australia, South Australia, Northern Territory and potentially Queensland. Mulgara is known to occur in the Pilbara region in areas where dunes are dominated by spinifex (Triodia spp.) hummock grasslands and where there may be an association with ephemeral drainage lines.

6.47 The referral documentation states that no suitable habitat was identified during fauna surveys for both Stage 1 and Stage 2 Projects.

6.48 The department considers that important habitat for this species is unlikely to occur on or near the site of the proposed action which is consistent with the habitat description in the department’s profile.

Potential Impacts

6.49 The department considers that adverse impacts on the Mulgara are unlikely, based on the absence of suitable habitat.

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Pilbara Olive Python (Liasis olivaceus barroni (Pilbara subspecies))

6.50 The Pilbara Olive Python is listed as vulnerable under the EPBC Act. In Western Australia, the species is listed as rare or likely to become extinct under the Wildlife Conservation (Specially Protected Fauna) Notice 2008(2).

6.51 The Pilbara Olive Python is a very slow moving python that is usually found in close proximity to water and rocky outcrops that attract suitable prey. The Pilbara subspecies is restricted to ranges within the Pilbara region such as the Hamersley Range and islands of the Dampier Archipelago.

6.52 The development of mining infrastructure is considered one of the threats to this species in the Pilbara through alteration of prey availability and increase mortality through road kill.

6.53 Estimating population size for this subspecies is difficult due to the cryptic nature of the python, the lack of any reliable trapping or census techniques and the narrow range of reliable surveys. One report states that this subspecies population is sizable in pockets, with some remote populations restricted by threatening process. While some of this species habitat is conserved in Karijini National Park, it is only a very small proportion of the landscape.

6.54 The home ranges of Pilbara Olive Python have not been extensively studied, however a radio-tracking study has indicated that they have large home ranges, from 87.76 to 449.26 hectares and those males have larger home ranges than females (Tutt et al. 2004).

6.55 The species is slow moving, resulting in many deaths on roads. Other threats to the species include major fire events, foxes and mining developments.

6.56 The Olive Python (Pilbara subspecies) prefers escarpments, gorges and water holes in the ranges of the Pilbara region (Pearson 1993; Wilson & Swan 2003, SPRAT 2011). The referral documentation states that no Pilbara Olive pythons were recorded during the detailed fauna surveys that covered the proposed action however anecdotal evidence from mine site staff suggests that the Pilbara olive python might inhabit the area.

6.57 The department considers that habitat for this species is likely to occur on or near the site of the proposed action in the rocky hilltops. As the Olive Python has a large home range, and the males travel long distances (up to 4 km) to locate and mate with females (Pearson 2003; Tutt et al. 2002, SPRAT 2011) it is considered possible that the species may move near to or across the site of the proposed action.

Potential Impacts

The department therefore considers that the proposed action has the potential to cause the mortality of individuals during operation of the proposed action as the species is cryptic and slow moving.

Impacts of the proposed action on listed threatened flora species

6.58 The referral documentation did not identify any listed threatened flora species likely to occur within the proposed action. This is consistent with departmental information. On the basis of the location for the proposed action, it is considered that an impact is not likely for listed threatened flora.

Impacts of the proposed action on listed threatened ecological communities

6.59 The referral documentation did not identify listed threatened ecological communities likely to occur within the proposed action. This is consistent with departmental information. On the basis of the location for the proposed action, it is considered that an impact is not likely for listed ecological communities.

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7 Mitigation measures Avoidance of habitat

7.1 The department considers that the permanent disturbance footprint up to 162 hectares for the proposed action should be managed to avoid the loss of suitable habitat for listed threatened fauna species. While large areas of the Pilbara are yet to be developed, there is a lack of scientific information available to governments and industry to assist in the conservation of biodiversity in the region.

Recommendation

7.2 The department therefore recommends that the person taking the action should not clear more than 162 hectares. A report and maps verifying compliance with this condition must be submitted to the Minister within three months of completion of the clearing works.

Mitigation of mortality during construction and operation

7.3 The proponent has developed a Significant Species Management Plan to minimise impacts on listed threatened fauna species as part of the Wodgina Stage 1 Project (EPBC 2009/5167). The proponent has committed to revising this Plan to encompass the proposed action and incorporate all of the recommendations from threatened fauna monitoring programs undertaken to date. The department supports the revision of the Plan to ensure continual improvement of the management of threatened fauna species at the site.

7.4 The proponent has also committed to:

Reducing speed limits, particularly of night time traffic;

Reporting injuries or mortalities of conservation significant fauna through Atlas’ incident system, and in the Annual Environment Report;

Conducting education and awareness training that will include conservation significant fauna and habitat. The training will also discuss standard operating procedures in the event of fauna interaction;

Off-road driving will be prohibited unless authorised by senior management;

Establish rigorous management program for domestic waste;

Schedule clearing activities to avoid breeding season where practicable;

Implement feral animal control; and

Implementation of a fire management system.

7.5 The department notes the commitments made by the proponent in the Significant Species Management Plan for the monitoring of threatened species populations to better understand the impacts of the mining activities. This includes:

A Northern Quoll monitoring program which the proponent has implemented. The monitoring program has provided some insight into the breeding cycle of Northern Quolls within the Pilbara. Further monitoring will also increase the sample size and improve the accuracy of population estimates and comparison of measurements. In accordance with the Significant Species Management Plan, the proponent commissioned the Northern Quoll baseline monitoring program prior to the commencement of operations and to coincide with the summer pre-mating population high.

A quarterly conservation significant bat species monitoring program, which includes Pilbara leaf-nosed Bats. It is proposed that a monitoring program will be undertaken between September 2010 and September 2011. No further bat management measures have been identified. However, improvements in survey methodology for the three remaining quarters will be implemented and improved as required during future monitoring.

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Recommendation

7.6 The department recommends that the person taking the action should submit a Fauna Management Plan for approval by the Minister. The department considers that this Plan can include the revised Significant Species Management Plan and is to also take account of the results of threatened fauna monitoring programs undertaken to date to drive continual improvement of the management of threatened fauna species at the site.

7.7 Therefore the department recommends that the person taking the action prepare a Fauna Management Plan, for the approval of the Minister, that maximises the ongoing protection and long term conservation of EPBC Act listed threatened fauna species. The Plan must be developed by an appropriately qualified expert and in consultation with the WA DEC. The Plan should address, but is not limited to, the following information:

a. Measures to minimise mortality of EPBC Act listed threatened fauna species during construction;

b. Measures to protect EPBC Act listed threatened fauna habitat located adjacent to cleared areas;

c. Implementation of measures to rehabilitate areas disturbed during construction; d. A fauna monitoring program to be undertaken to;

i. collate baseline population data prior to the commencement of construction, and followed with ongoing annual monitoring of EPBC Act listed threatened fauna species for the life of the project to measure the impacts of the action over time;

ii. measure the success of management measures to inform an adaptive management approach; and

e. Reporting on milestones and compliance with this plan annually to the department. f. The results of the monitoring program and compliance with the plan must be published on

the company website.

The person taking the action cannot commence construction until the plan is approved. The approved Fauna Management Plan must be implemented.

7.8 The department considers that the Fauna Management Plan will ensure appropriate measures are implemented to manage the impacts on fauna present during construction and operation.

Environmental offsets

7.9 The use of environmental offsets is an emerging issue in relation to environmental impact assessment in Australia. Offsets are increasingly being required as part of development approvals to achieve long-term conservation outcomes while enabling development to proceed. Environmental offsets are defined as actions taken outside a development site that compensate for the impacts of that development, including direct, indirect or consequential impacts.

7.10 Environmental offsets are not intended to make proposed actions with unacceptable impacts acceptable but provide a tool to be used during project design, environmental assessment and implementation to achieve the principles of ecologically sustainable development.

7.11 The department’s draft offset policy states that:

- Environmental offsets should be targeted to the matter protected by the EPBC Act that is being impacted.

- A flexible approach should be taken to the design and use of environmental offsets to achieve long-term and certain conservation outcomes which are cost effective for proponents.

- Environmental offsets should deliver a real conservation outcome.

- Environmental offsets should be developed as a package of actions - which may include both direct and indirect offsets.

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- Environmental offsets should, as a minimum, be commensurate with the magnitude of the impacts of the development and ideally deliver outcomes that are ‘like for like’.

- Environmental offsets should be located within the same general area as the development activity.

- Environmental offsets should be delivered in a timely manner and be long lasting.

- Environmental offsets should be enforceable, monitored and audited.

7.12 The proposed action would result in the disturbance of up to up to 162 hectares, which contains 67.94 hectares of Northern Quoll habitat and 22.8 hectares of potential roost habitat for the Pilbara Leaf-nosed Bat.

Recommendation

7.13 The department recommends that the person taking the action should submit a Research Offset Plan, for approval by the Minister, to ensure the better protection and long term conservation of EPBC Act listed threatened fauna species in the Pilbara region of Western Australia. The Research Offset Plan should be submitted within three months of the date of this approval decision. The research plan must contain, but is not limited to; identifying the key threat management actions required to restore and maintain functioning populations of EPBC Act listed threatened species in the Pilbara, and understanding actions that are required to protect listed threatened species, migratory species and the habitat they utilise, taking into account the costs and feasibility. The approved Research Offset Plan must be implemented. The person taking the action cannot continue construction or operation beyond 30 December 2011 unless the plan has been approved.

7.14 The department also recommends that the person taking the action should submit a Strategic Land Management Plan, for approval by the Minister, to ensure the better protection and long term conservation of EPBC Act listed threatened fauna species in the Pilbara region of Western Australia. The Strategic Land Management Plan must be submitted within twelve months of the date of this approval decision, and must be developed in consultation with the WA DEC. The plan should contain, but is not limited to, the following criteria:

a. Specify the location where the land management actions will be undertaken;

b. Provide a review of further studies and surveys that need to be undertaken to inform land management actions in (d), such as a wildfire threat analysis, vegetation mapping and a feral and weed assessment;

c. Details including the timing, methodology and funding commitments for (b);

d. Details of the land management actions to be undertaken, including locations, timing, frequency, duration and funding commitments;

e. Details of the long term benefits of the management actions for the conservation EPBC Act listed threatened fauna species in the Pilbara region of Western Australia through the use of empirical studies; and

f. Details of how the plan will contribute to other strategic land management programs being undertaken, or proposed, in the Pilbara region.

The person taking the action must not commence operation until the Strategic Land Management Plan is approved by the Minister. The approved Strategic Land Management Plan must be implemented.

7.15 The department also notes the commitment by the proponent in the Wodgina Stage 1 Project (EPBC 2009/5167) to contribute to Northern Quoll research.

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Conclusion

7.16 The department considers that the proposed action should be approved, subject to conditions to ensure that the impacts on listed threatened species are acceptable.

7.17 The approval of the project would not be inconsistent with Australia’s international obligations under the Biodiversity Convention, the APIA Convention or the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

8 Environmental record

8.1 The department is not aware of any adverse environmental history associated with Atlas Iron Limited, and therefore has no reason to believe the company will not comply with the proposed conditions of approval.

9 Social and economic matters

9.1 The proponent has stated that there are no negative socio-economic impacts expected for residents of the Shire of East Pilbara as a result of the proposed action.

9.2 The proponent considers its key impacts to be positive: additional project royalties, taxes and rates will be paid to government and reinvested in community infrastructure, services and development programs. Extending the life of the mine will provide great job security and ongoing business for contractors and sub-contractors. This includes ongoing opportunities for Indigenous people and businesses, building on progress to date.

10 Ecologically sustainable development

10.1 The five principles of ecologically sustainable development have been addressed as follows:

i. The integration principle;

In developing the proposed action, the proponent has made adequate effort to integrate environmental considerations with economic and social considerations. The proponent has committed to avoid, minimise, monitor and manage impacts on the environment.

ii. The precautionary principle;

The precautionary principle states that where there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation. Potential impacts on populations of listed fauna species may occur through a reduction in the persistence and viability of populations along the line. In order to manage the risks of those impacts, the department recommends that the proponent offset the loss of habitat for EPBC Act listed threatened species.

iii. The intergenerational principle;

The commitment of the proponent to undertake detailed annual monitoring of threatened species will improve our understanding of populations of threatened fauna species in the Pilbara region. By requiring the provision of an offset, the conservation values lost as a result of the proposed action will be compensated for future generations. iv. The biodiversity principle (Ecologically sustainable development (ESD));

To achieve the principles of ESD the proponent has proposed to implement measures that will minimise impacts on the environment. In addition to this, the proponent is committed to avoiding impacts as far as possible through responsible environmental management of the project during construction, and operation.

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v. The valuation principle;

By requiring the provision of an offset, the conservation values lost as a result of the proposed action have been compensated for.

11 Duration of approval

11.1 The life of mine for the approved Stage 1 Project (EPBC 2009/5167) is 7 years. The life of mine for the proposed action would be 2 to 3 years, and the cumulative mine life would be 7.5 years (accounting for overlap). Therefore the department recommends that the approval remain valid for a period of 8 years.

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12 References

12.1 Australian Government, Draft EPBC Act policy statement 3.25 - Environment Protection and Biodiversity Conservation Act 1999 referral guidelines for the endangered northern quoll, Dasyurus hallucatus, 2011.

12.2 ANRA Western Australia Rangelands Overview, Australian Natural Resources Atlas, Department of Sustainability, Environment, Water, Population and Communities http://www.anra.gov.au/topics/rangelands/overview/wa/ibra-pil.html#degradation accessed 16 November 2010.

12.3 Australian Government NRS Fact sheet, ‘Increasing the National Reserve System target information sheet’, Australian Government Caring For Our Country Program http://www.nrm.gov.au/business-plan/10-11/priorities/nrs/increasing-nrs/pubs/increasing-the-nrs.pdf

12.4 Australia's 15 National Biodiversity Hotspots, Australian Government Threatened Species Scientific Committee 2003. http://www.environment.gov.au/biodiversity/hotspots/index.html

12.5 CALM, (2003), ‘Establishment of a Comprehensive, Adequate and Representative Terrestrial Conservation Reserve System in Western Australia’, http://www.dec.wa.gov.au/pdf/projects/car_report.pdf

12.6 Hill B.M. and Ward S.J. (2009). National Recovery Plan for the Northern Quoll Dasyurus hallucatus. Department of Natural Resources, Environment, The Arts and Sport, Darwin. http://www.environment.gov.au/biodiversity/threatened/publications/recovery/northern-quoll.html

12.7 Holderegger, R. & Di Giulio, M. 2010. ‘The genetic effects of roads: A review of empirical evidence’, Basic and Applied Ecology, 11 (2010) 522–531.

12.8 Moseby, K. E. and O'Donnell, E. (2003). Reintroduction of the greater bilby, Macrotis lagotis (Reid) (Marsupialia : Thylacomyidae), to northern South Australia: survival, ecology and notes on reintroduction protocols. Wildlife Research 30, 15–27.

12.9 Parks Australia (2010), Map produced by the Environmental Resources Information Network for National Reserve System Section, http://www.environment.gov.au/parks/nrs/science/pubs/ibra_subregions.pdf

12.10 Pavey, C. 2006. ‘National Recovery Plan for the Greater Bilby Macrotis lagotis’. Northern Territory Department of Natural Resources, Environment and the Arts. http://www.environment.gov.au/biodiversity/threatened/publications/pubs/m-lagotis.pdf

12.11 ‘Report and recommendations of the Environmental Protection Authority’, October 2010, Western Australia, Report 1370. http://edit.epa.wa.gov.au/EPADocLib/Rep%201370%20Roy%20Hill%20Rail%20ARI%20111010.pdf

12.12 Departments Species Profiles and Threats Database (SPRAT), Australian Government Department of Sustainability, Environment, Water, Population and Communities.

12.13 Tutt, M., S. Fekete, S. Mitchell, P. Brace & D. Pearson (2004). Unravelling the mysteries of Pilbara Olive Python ecology. Threatened Species Network Community Grants Final Report- Project WA11/101. Karratha: Nickol Bay Naturalists' Club/WA CaLM.

12.14 Van der Ree, R., Clarkson, D.T., Holland, K., Gulle, N., Budden M., 2008. ‘Review of Mitigation Measures used to deal with the Issue of Habitat Fragmentation by Major Linear Infrastructure’, Report for Department of Environment, Water, Heritage and the Arts (DEWHA), Contract No. 025/2006, Published by DEWHA.

12.15 WA Government Pilbara Profile, Western Australian Department of Regional Development and Lands, http://rdl.wa.gov.au/Content/Publications/StatInfo/RegionMaps.aspx#PilbaraRegion

12.16 Woinarski J. C. Z., Legge S, Fitzsimons J. A., Traill B. J., Burbidge A. A., Fisher A., Firth R. S. C., Gordon I. J., Griffiths A. D., Johnson C. N., McKenzie N. L., Palmer C, Radford I., Rankmore B., Ritchie E. G., Ward S., & Ziembicki M, 2011, The disappearing mammal fauna of northern Australia:

context, cause, and response, Conservation Letters, 4 (2011) 192–201, Wiley Periodicals, Inc.

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12.17 Woolley, P.A. (2005). "The species of Dasycercus Peters, 1875 (Marsupialia: Dasyuridae)" (PDF). Memoirs of Museum Victoria 62 (2): 213–221. http://museumvictoria.com.au/pages/3920/62_Woolley.pdf.

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Appendix 1 – Wodgina Stage 1 Project (EPBC 2009/5167) approval conditions

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