Managing Anticipated Managing Anticipated Mining Related Impacts in Mining Related Impacts in

the the Liverpool Plains Shire Liverpool Plains Shire

Council AreaCouncil AreaWatermark Community Consultative Committee Meeting – 21 April 2010

Ron Van KatwykDirector Environmental ServicesLiverpool Plains Shire Council

IntroductionIntroduction

• Current Planning Approvals Process is Current Planning Approvals Process is designed to ensure impacts / issues are designed to ensure impacts / issues are addressed in advance addressed in advance andand stakeholders stakeholders (Council included) are given the opportunity (Council included) are given the opportunity to provide constructive input.to provide constructive input.

• The impacts will be cyclical (Exploration The impacts will be cyclical (Exploration Construction Construction Operation Operation Rehabilitation Rehabilitation Post Operation) and all phases will impact the Post Operation) and all phases will impact the Liverpool Plains community differently and in Liverpool Plains community differently and in turn require different planning and turn require different planning and preparation. This is further complicated by preparation. This is further complicated by operators progressing through the phases at operators progressing through the phases at different rates and times.different rates and times.

• This presentation attempts to categorise the This presentation attempts to categorise the anticipated impacts (environmental, economic and anticipated impacts (environmental, economic and social) and address them by way of a Pressure-social) and address them by way of a Pressure-State-Response (P-S-R) framework commonly State-Response (P-S-R) framework commonly found in Council State of Environment Reports.found in Council State of Environment Reports.

P-S-R FrameworkP-S-R Framework

Fig.28 from page 29 of Namoi Region State of Environmental Effects Report 2008/09.

Current activities impacting Current activities impacting on the LPSC areaon the LPSC area

1.1. Whitehaven Coal Ltd – Operational Phase of Whitehaven Coal Ltd – Operational Phase of an open-cut mine at Werris Creek currently an open-cut mine at Werris Creek currently expanding and projecting at least 20 more expanding and projecting at least 20 more years of extraction.years of extraction.

2.2. Caroona Coal Project – Exploration Phase of a Caroona Coal Project – Exploration Phase of a long-wall underground proposal at Caroona – long-wall underground proposal at Caroona – say 2 to 3 more years of research.say 2 to 3 more years of research.

3.3. Shenhua Australia Holdings Pty Ltd – Shenhua Australia Holdings Pty Ltd – Exploration Phase of an open-cut proposal Exploration Phase of an open-cut proposal immediately to the north of the LPSC / immediately to the north of the LPSC / Gunnedah boundary. Say 2 to 3 more years of Gunnedah boundary. Say 2 to 3 more years of research.research.

4.4. Santos Ltd – Exploration Phase for gas Santos Ltd – Exploration Phase for gas extraction – duration and locality of activity extraction – duration and locality of activity to be determined.to be determined.

5.5. Existing mining activity to the north.Existing mining activity to the north.6.6. Existing mining activity to the west.Existing mining activity to the west.

EconomicEconomicImpactImpact StateState PressurePressure ResponseResponseRating Rating calculationscalculations

•Property rates Property rates calculated on a calculated on a valuation basis.valuation basis.•Opportunity for Council Opportunity for Council to expand the rate to expand the rate income from the mining income from the mining category.category.

•Sale price of land Sale price of land purchased for mining or purchased for mining or related purposes will related purposes will affect property affect property valuations.valuations.•Mining companies will Mining companies will be reluctant to be reluctant to contribute to Council in contribute to Council in the form of rates as the form of rates as there is little opportunity there is little opportunity for public relations for public relations benefit.benefit.

•Does not necessarily Does not necessarily mean additional rate mean additional rate income for Council (rate income for Council (rate pegging).pegging).•Council will need to Council will need to proactively address the proactively address the impact of valuation impact of valuation changes (eg. liaise with changes (eg. liaise with Valuer General’s office) Valuer General’s office) and ensure equity is and ensure equity is maintained in rating maintained in rating structure.structure.

Demands on Demands on Council staff Council staff resourcesresources

•Current Council Current Council workforce is structured workforce is structured in both number and in both number and skills areas to respond skills areas to respond to current known to current known demands.demands.•Council is already Council is already experiencing difficulty in experiencing difficulty in retaining skilled retaining skilled workers.workers.

•Contributing to the Contributing to the Development Development Assessment process, Assessment process, servicing resident servicing resident enquiries and enquiries and understanding new land-understanding new land-use activity needs will use activity needs will divert available divert available resources.resources.•Mining companies are Mining companies are better placed to attract better placed to attract skilled workers.skilled workers.

•Council to monitor Council to monitor changing demands of changing demands of this resource and this resource and respond appropriately.respond appropriately.•Council to determine Council to determine other strategies to stay other strategies to stay competitive with mining competitive with mining companies.companies.

Economic - continuedEconomic - continued

ImpactImpact StateState PressurePressure ResponseResponseWorker Worker accommodation accommodation

•Some existing Some existing facilities and facilities and significant significant opportunity to opportunity to satisfy demand in all satisfy demand in all urban areas and at urban areas and at all levels.all levels.

•Demand for high Demand for high level motel type level motel type accommodation.accommodation.

•Council’s economic Council’s economic development staff development staff are actively are actively promoting the promoting the opportunity for a opportunity for a four star motel and four star motel and restaurant in restaurant in Quirindi to private Quirindi to private sector investors.sector investors.•Redevelopment Redevelopment has occurred of an has occurred of an existing 32 room existing 32 room retirement home retirement home complex to a complex to a serviced apartment serviced apartment type facility type facility targeting medium targeting medium term mine worker term mine worker accommodation.accommodation.

Henry’s GuesthouseHenry’s Guesthouse

Economic - continuedEconomic - continued

ImpactImpact StateState PressurePressure ResponseResponseIndustrial type Industrial type land-usesland-uses

•Current zones Current zones service some service some activity in this activity in this area. Scope for area. Scope for expansion.expansion.

•Mining Mining activity will activity will generate generate demand for demand for support support industries.industries.

•Council to Council to promote the promote the availability of availability of established and established and foreshadowed foreshadowed areas.areas.•Council to Council to regulate to regulate to minimise minimise adverse adverse impacts.impacts.

Drilling servicesDrilling services

Economic - continuedEconomic - continued

ImpactImpact StateState PressurePressure ResponseResponseThreat to Threat to agricultural landagricultural land

•Liverpool Plains Liverpool Plains recognised for recognised for significant significant contribution to contribution to food and fibre food and fibre production. Large production. Large areas in LPSC areas in LPSC area.area.

•Indiscriminate Indiscriminate mining activity mining activity could damage could damage underground underground water sources water sources (eg. (eg. interconnectivity interconnectivity issues).issues).•Some Some competition for competition for available available resources.resources.•Impacts of long Impacts of long wall mining wall mining subsidence.subsidence.

•Namoi Namoi Catchment Water Catchment Water Study is proposed Study is proposed to address this to address this concern.concern.•Stakeholders will Stakeholders will analyse data analyse data provided by mine provided by mine proponents when proponents when Development Development Applications are Applications are made public.made public.

Economic - continuedEconomic - continued

ImpactImpact StateState PressurePressure ResponseResponseRoad Road infrastructureinfrastructure

•Current funding Current funding for local and for local and regional roads regional roads insufficient to insufficient to maintain and maintain and upgrade current upgrade current assets especially assets especially in black soil areas.in black soil areas.

•Potential increase in Potential increase in large vehicle usage.large vehicle usage.•Potential increase in Potential increase in wide load movements.wide load movements.•Increased usage will Increased usage will raise maintenance raise maintenance demands and the need demands and the need to raise standards.to raise standards.•Potential subsidence Potential subsidence under Coonabarabran under Coonabarabran Road.Road.

•Council to lobby for Council to lobby for additional funds for additional funds for local roads eg. a local roads eg. a percentage of state percentage of state royalties similar to the royalties similar to the Western Australia Western Australia model. model. •Council to seek Council to seek royalties for transport royalties for transport activities on “mining activities on “mining roads” as part of the roads” as part of the Development Development Application process.Application process.•Council to investigate Council to investigate the need to re-classify the need to re-classify some roads with severe some roads with severe impacts. impacts. •Council to investigate Council to investigate use of traffic counters to use of traffic counters to provide benchmark provide benchmark data.data.•Council to encourage Council to encourage by-pass of main streets by-pass of main streets by heavy vehicles.by heavy vehicles.

SocialSocial

ImpactImpact StateState PressurePressure ResponseResponseLifestyleLifestyle •Current state of the Current state of the

environment is environment is generally very generally very attractive to those attractive to those seeking a rural seeking a rural lifestyle.lifestyle.•Current population Current population levels and competition levels and competition from neighbouring from neighbouring larger population larger population centres hinder the centres hinder the expansion of basic / expansion of basic / essential services such essential services such as preschools, schools, as preschools, schools, hospital services, hospital services, doctors and allied doctors and allied medical services, medical services, government agencies government agencies and police.and police.

•Mining activities can Mining activities can impact on air quality impact on air quality (dust), aesthetics (dust), aesthetics (night and day), (night and day), consumption of consumption of available water available water resources, noise levels resources, noise levels and road transport and road transport infrastructure (damage infrastructure (damage and congestion).and congestion).

•Council to review the Council to review the data provided by data provided by applicants as part of applicants as part of the Development the Development Application process, in Application process, in particular bench particular bench marking in these key marking in these key areas is essential.areas is essential.•Council to lobby for Council to lobby for additional services to additional services to match growth rates in match growth rates in related areas (eg. 24hr related areas (eg. 24hr policing if necessary).policing if necessary).

Social - continuedSocial - continued

ImpactImpact StateState PressurePressure ResponseResponseLifestyle Lifestyle (continued)(continued)

•Social Social infrastructure needs infrastructure needs such as education such as education initiatives, initiatives, entertainments entertainments venues, sporting venues, sporting facilities, services facilities, services for the very young for the very young and elderly exist.and elderly exist.

•In order to attract In order to attract families and foster families and foster community growth community growth these services need these services need to be in place and to be in place and responsive to responsive to community needs.community needs.

•Council acknowledges the Council acknowledges the capital contributions made capital contributions made to date assisting numerous to date assisting numerous local initiatives (see local initiatives (see photographic examples) by photographic examples) by way of contributions from way of contributions from mining company mining company community development community development funds.funds.

Community Development Fund Community Development Fund ProjectsProjects

Social - continuedSocial - continued

ImpactImpact StateState PressurePressure ResponseResponseSingle worker Single worker demographicdemographic

•Community Community structures do not structures do not currently have an currently have an imbalance in this imbalance in this area.area.

•Demand will increase for Demand will increase for sporting and entertainment sporting and entertainment facilities.facilities.•Potentially no increase in Potentially no increase in volunteering of assistance to volunteering of assistance to junior sports or aged support junior sports or aged support services (such as meals on services (such as meals on wheels).wheels).•Mining related workers will Mining related workers will potentially have more potentially have more disposable income than disposable income than other workers.other workers.•Potential for alcohol related Potential for alcohol related anti-social behaviour.anti-social behaviour.•Increase in shift work Increase in shift work practices will impact on practices will impact on neighbourhood noise, neighbourhood noise, domestic harmony, shopping domestic harmony, shopping hours and related lifestyle hours and related lifestyle impacts.impacts.

•Council to Council to encourage encourage development and development and utilisation of existing utilisation of existing urban infrastructure urban infrastructure rather than worker rather than worker camps (either “wet” camps (either “wet” or “dry”).or “dry”).

Social - continuedSocial - continued

ImpactImpact StateState PressurePressure ResponseResponseSpecialised Specialised work work opportunities opportunities

•Liverpool Plains Shire Liverpool Plains Shire has currently one has currently one operational mine.operational mine.

•Specialised nature of Specialised nature of both open-cut and both open-cut and long wall mining will, long wall mining will, in the first instance, in the first instance, draw from existing draw from existing mining areas to satisfy mining areas to satisfy this need.this need.

•Council to encourage Council to encourage employment service employment service organisations to organisations to recruit locally where recruit locally where possible and assist in possible and assist in providing job providing job opportunities for local opportunities for local youth.youth.

Education Education facilitiesfacilities

•Quirindi’s TAFE Quirindi’s TAFE campus is currently campus is currently established to service established to service a wide variety of a wide variety of needs.needs.

•Changing land-uses Changing land-uses will support the need will support the need for additional services.for additional services.

•Council to support Council to support and encourage and encourage expansion of expansion of education education opportunities in a local opportunities in a local setting.setting.

EnvironmentalEnvironmental

ImpactImpact StateState PressurePressure ResponseResponseRail transport Rail transport corridorscorridors

•North/South and North/South and West/South West/South corridors are corridors are experiencing experiencing significant use and significant use and undergoing undergoing modification and modification and improvement to improvement to cater for cater for expanded expanded services.services.•Lines bisect Lines bisect Quirindi, Werris Quirindi, Werris Creek and Willow Creek and Willow Tree communities.Tree communities.•Passenger and Passenger and grain cartage grain cartage services available.services available.•Coal carriages Coal carriages currently travel currently travel uncovered.uncovered.

•Increased rail Increased rail traffic generates traffic generates more coal / dust more coal / dust spillage, noise and spillage, noise and disruption to road disruption to road traffic especially traffic especially emergency emergency services as trains services as trains become longer and become longer and slower (up slower (up inclines).inclines).•Mining needs may Mining needs may reduce passenger reduce passenger and other freight and other freight services (eg. services (eg. grain).grain).•Accommodation Accommodation needs for design / needs for design / construction crews construction crews and train drivers.and train drivers.

•Council to continue to lobby Council to continue to lobby for covered coal carriages.for covered coal carriages.•Council to continue to lobby Council to continue to lobby for overpasses or like for overpasses or like solutions to trains blocking solutions to trains blocking cross town road traffic.cross town road traffic.•Council to lobby coal carriers Council to lobby coal carriers to minimise noise in proximity to minimise noise in proximity to urban areas eg. speed to urban areas eg. speed limits.limits.•Council to enquire as to Council to enquire as to alternative routes for coal alternative routes for coal from future mines to the west from future mines to the west and possible impacts on and possible impacts on passenger and grain freight passenger and grain freight services.services.•Council’s economic Council’s economic development staff are actively development staff are actively promoting short stay promoting short stay accommodation opportunities accommodation opportunities in Werris Creek to private in Werris Creek to private sector investors.sector investors.

Environmental - continuedEnvironmental - continued

ImpactImpact StateState PressurePressure ResponseResponseAmenity Amenity concernsconcerns

•Environmental Environmental threats are sustainably threats are sustainably managed.managed.

•See comments in See comments in Social and Economic Social and Economic sections concerning sections concerning water, aesthetic, night water, aesthetic, night glow, dust and noise glow, dust and noise impacts.impacts.

•Stakeholders have Stakeholders have the opportunity to the opportunity to ensure adequate ensure adequate mitigation measures mitigation measures are in place as part of are in place as part of the Development the Development Application process.Application process.

ConclusionConclusionPartnershipsPartnerships• For the Liverpool Plains Shire community to mature and benefit For the Liverpool Plains Shire community to mature and benefit

from mining activity, vigilance will be required by all stakeholders from mining activity, vigilance will be required by all stakeholders to ensure that the new activity and new money are part of a to ensure that the new activity and new money are part of a sustainable economic expansion that is not detrimental to existing sustainable economic expansion that is not detrimental to existing economic drivers such as agriculture, forestry and equine economic drivers such as agriculture, forestry and equine industries. Affirmative and supportive action by mining companies industries. Affirmative and supportive action by mining companies will play a significant role in this process.will play a significant role in this process.

Long term planningLong term planning• As extractive industries are cyclical in nature, desirable and As extractive industries are cyclical in nature, desirable and

sustainable longer term community gains will require well sustainable longer term community gains will require well informed and proactive planning.informed and proactive planning.

Regional CompetitionRegional Competition• Liverpool Plains Shire communities will need to work harder to Liverpool Plains Shire communities will need to work harder to

attract the “flow-on effect” of increased economic activity given attract the “flow-on effect” of increased economic activity given the size advantage of neighbouring service centres. The the size advantage of neighbouring service centres. The “affordable” lifestyle, proximity to the Hunter Valley and existing “affordable” lifestyle, proximity to the Hunter Valley and existing rail infrastructure advantages will need vigorous promotion.rail infrastructure advantages will need vigorous promotion.