MINERALS COUNCIL OF AUSTRALIA

SUBMISSION TO THE SENATE ENVIRONMENT AND COMMUNICATIONS COMMITTEE INQUIRY INTO

AUSTRALIA’S FAUNAL EXTINCTION CRISIS

5 OCTOBER 2018

Minerals Council of Australia

TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................................................................................................ 1

INTRODUCTION ..................................................................................................................................... 2

PRESSURES ON AUSTRALIAN BIODIVERSITY.................................................................................. 2

MINING AND BIODIVERSITY ................................................................................................................ 3

REGULATORY AND POLICY FRAMEWORK FOR MINING ................................................................. 7

ENHANCING BIODIVERSITY OUTCOMES .......................................................................................... 9

FURTHER INFORMATION ................................................................................................................... 11

Minerals Council of Australia | 1

EXECUTIVE SUMMARY

The Minerals Council of Australia (MCA) is the peak industry organisation representing Australia’s

exploration, mining and minerals processing industry, nationally and internationally, in its contribution

to sustainable development and society. The MCA’s strategic objective is to advocate public policy

and operational practice for a world-class industry that is safe, profitable, innovative, environmentally

and socially responsible and attuned to its communities’ needs and expectations.

The minerals industry is committed to upholding high standards of environmental protection based on

the use of sound science and robust risk-based approaches in the assessment and management of

potential environmental impacts.

The minerals industry has a relatively small footprint – representing <0.1 per cent of Australia’s land

mass and less than 3.7 per cent of national water consumption. While not a significant driver of

biodiversity loss, the industry recognises the need to address biodiversity conservation as a key

component of environmental management in the regions in which mining occurs.

The industry has a mature and proactive approach to biodiversity management. Mining companies

invest heavily in the collection of data as part of project approvals. Furthermore, many companies

undertake additional voluntary actions including partnering in research and specific conservation and

recovery initiatives. The MCA and other industry bodies support improved industry performance

through the development of guidance on the assessment and management of environmental impacts

including biodiversity.

The minerals industry has long understood the value of harnessing the knowledge of Indigenous

Australians in managing land. The industry implements plans that promote and harness traditional

ecological knowledge, and implement culturally-appropriate strategies for flora and fauna

management.

Modern mining environmental practice is highly regulated, generally well implemented and widely held

to account. Biodiversity management is already well embedded within the Australian regulation at the

state/territory and national levels. Should it be determined the policy outcomes are not being realised,

it the nature and adequacy of implementation of biodiversity related policies that should be examined.

Opportunities exist to harness the industry’s experience and investment in biodiversity management

through data sharing, knowledge transfer, and leveraging research outcomes. Finally implementation

of strategic approaches to biodiversity offsets may also enhance broader biodiversity outcomes.

Minerals Council of Australia | 2

INTRODUCTION

The Minerals Council of Australia (MCA) welcomes the opportunity to provide a submission to the

Senate Environment and Communications References Committee inquiry into Australia’s faunal

extinction crisis.

The MCA is the peak industry organisation representing Australia’s exploration, mining and minerals

processing industry, nationally and internationally, in its contribution to sustainable development and

society. The MCA’s strategic objective is to advocate public policy and operational practice for a

world-class industry that is safe, profitable, innovative, environmentally and socially responsible and

attuned to its communities’ needs and expectations.

The minerals industry is committed to upholding high standards of environmental protection based on

the use of sound science and robust risk-based approaches in the assessment and management of

potential environmental impacts.

This submission outlines the industry’s approach to biodiversity assessment and management and

identifying opportunities to enhance biodiversity conservation outcomes, including the industry’s

contribution to research initiatives and species recovery. The submission also provides information

on the comprehensive regulatory framework under which the industry operates.

PRESSURES ON AUSTRALIAN BIODIVERSITY

The Australian minerals industry acknowledges the pressures that exert themselves on the Australian

environment. These pressures are detailed in the 2016 State of the Environment (SoE) Report:

The poor state and declining trend of Australia’s biodiversity are an issue of particular concern. For

instance, the number of species listed as threatened under the EPBC Act continues to rise. Since 2011, the

number of species listed in the critically endangered category has increased by 31, and 2 species have been

reported as likely extinct. Overall pressures on biodiversity have mostly increased since 2011, and the

status of biodiversity has mostly decreased, but our information base remains inadequate to robustly assess

state and trends.1

The main pressures facing the Australian environment today are the same as in 2011: climate change, land-

use change, habitat fragmentation and degradation, and invasive species. In addition, the interactions

between these and other pressures are resulting in cumulative impacts, amplifying the threats faced by the

Australian environment.2

With respect to the mining industry, the 2016 SoE report finds:

Direct effects of mining are a weak pressure at the national scale, since the areas affected are relatively

small. However, cumulative impacts can be significant for states or territories with large mining industries.3

As acknowledged in the SoE report, the mining industry has a relatively small footprint – representing

<0.1 per cent of Australia’s land mass and less than 3.7 per cent of national water consumption.4

While not a significant driver of biodiversity loss, the industry recognises the need to address

biodiversity conservation as a key component of environmental management in the regions in which

mining occurs.

1 Department of Environment and Energy, State of the Environment 2016, Overview of state and trends of biodiversity.

2 Department of Environment and Energy, State of the Environment 2016, Executive summary - Overview.

3 Department of Environment and Energy, State of the Environment 2016, Energy and Resource Extraction and Processing.

4 Department of Environment and Energy, State of the Environment 2016, Land Use and Management, Canberra, 2016 and

Australian Bureau of Statistics, Water Account, Australia, 2015-16, water use tables, ABS catalogue no. 4610.0, released 23 November 2017

Minerals Council of Australia | 3

MINING AND BIODIVERSITY

Industry commitment to managing biodiversity

The minerals industry is committed to responsible environmental management, including biodiversity.

MCA member companies are signatories to Enduring Value – the Australian Minerals Industry

Framework for Sustainable Development.5 Key framework principles relevant to biodiversity include:

Principle 6 – Seek continual improvement of our environmental performance

Principle 7 – Contribute to the conversation of biodiversity and integrated approaches to land

use planning

The minerals industry approach is reflected in the MCA Land Stewardship Policy. Minerals

operations apply the ‘avoid-minimise-mitigate’ management hierarchy to address potential impacts on

biodiversity and broader environmental values.6

Noting the location of a geological resource constrains mining operation locations, there may be

instances when it is necessary to mitigate impact on significant residual loss of

conservation/biodiversity values through offsets, the use of which is regulated by state/territory and

where relevant, federal regulation. The MCA has developed principles to guide the development and

application of biodiversity offset measures.7 Biodiversity offsets enable a company to deliver an

overall conservation outcome that improves or maintains the viability of the aspect of the environment

protected by the Commonwealth and/or States/Northern Territory.

Research, development and application of leading practice

In addition to compliance with legislation and regulations, the industry is continually looking to develop

and adopt new and improved approaches to monitoring, assessing and managing biodiversity.

Nature-based initiatives commonly supported by the industry include flora and fauna research,

community education programs and initiatives to capture and apply traditional ecological knowledge.

While individual companies undertake their own research, cross-sectoral research programs, like the

industry funded Australian coal research program (ACARP), has completed a range of

environmental/biodiversity research projects.

Industry associations, including the MCA, also contribute to improved practice through a program of

knowledge sharing and promote improved industry practice. This has included the development of

guidance to assist companies to manage potential environmental impacts, including on biodiversity

values:

Cumulative environmental impact assessment, Industry Guide - Developed by the MCA to

assist members in conducting well-designed, leading practice cumulative environmental

impact assessments8

Good Practice Guidance for mining and biodiversity, developed by the International Council

on Mining and Metals with input from the International Union for Conservation of Nature9

Biodiversity Management handbook – Developed with industry and MCA input for the

Department of Industry, Innovation and Science’ Sustainable Mining program. The booklet

has been translated into eight different languages for overseas use.10

5 Minerals Council of Australia, Enduring Value Framework, 2015 Edition, MCA, Canberra, 2015

6 Minerals Council of Australia, MCA Land stewardship policy, October 2012

7 Minerals Council of Australia, MCA Biodiversity offsets policy, October 2014

8 Minerals Council of Australia, Cumulative Environmental Impact Assessment Industry Guide, viewed August 2 2018

9 International Council on Mining and Metals, Good practice guidance for mining and biodiversity, ICMM, London, 2006

10 Department of Industry, Innovation and Science, Leading Practice Sustainable Development Program (LPSDP) for the

Mining Industry, viewed 2 August 2018

Minerals Council of Australia | 4

New knowledge

The acquisition of new scientific knowledge is one of the biggest contributions the minerals industry

makes to biodiversity in Australia. For example, in remote parts of Western Australia, much of the

information available about the region’s unique biodiversity is understood only because mining

companies have surveyed these areas. The industry has played a central role in the discovery of new

species either as part of an operational survey or through voluntary initiatives.

For example, BHP is the major corporate partner of Bush Blitz, a ‘nature discovery’ initiative that

brings together the Australian Government, the Australian Biological Resources Study and

Earthwatch Institute Australia. Since 2010, the initiative has discovered more than 1,553 new faunal

species.11

Management of non-operational land

The minerals industry can be a significant manager of land. Most land managed by industry is non-

operational and/or ‘buffer’ land where mining activities are not undertaken. While this land may be

used for economic benefit in line with its pre-mining purpose (e.g. grazing), it is frequently managed to

secure and/or improve its conservation values. For example, land controlled by mineral companies

may be managed for fire risk and invasive species (weeds and feral animals) to a standard above that

of the surrounding area.

Voluntary conservation initiatives

Companies may undertake voluntary conservation initiatives to augment their social licence to

operate though partnership with government, conservation organisations or local communities. These

include species conservation and recovery projects, habitat restoration and the establishment of

conservation reserves. These initiatives can have a significant positive effect on environmental and

community values.

To illustrate industry achievements, examples of successful/leading practice in biodiversity and

conservation management are provided below:

Case study: Conserving threatened species in the Western Australia desert12

The Great Victoria Desert Biodiversity Trust (Western Australia) was established as a condition of

approval for the Tropicana Joint Venture gold mine under the Commonwealth Environment Protection

and Biodiversity Conservation Act 1999. While focusing on benefits to threatened species and

communities within the desert region, including marsupial moles, the Trust will also:

Support development of a bioregional management plan;

Facilitate priority research at the landscape level;

Fund on-ground conservation management; and

Enhance Traditional Owner involvement in land management activities.

Tropicana will contribute approximately $4.4 million to the Trust over the life of the mine. A unique

aspect of the Trust is its establishment under a Trust Deed with the Public Trustee of Western

Australia. A Technical Advisory Panel compromised of representatives from environmental

organisations, community representatives and specialists guide decisions of the Trust.

11

Bush Blitz, Overview, viewed 17 August 2018 12

Tropicana JV, GVD Biodiversity Trust Fact Sheet, 2014, Australia, p.1.

Minerals Council of Australia | 5

Case study: Biodiversity management at MMG13

At its zinc mine in Dugald River, Queensland, MMG currently monitors two threatened species known

to inhabit the surrounding Knapdale Ranges; the purple-necked rock-wallaby and the Carpentarian

pseudantechinus (a small carnivorous mouse-like marsupial). Sightings of the two species have been

increasing and populations are strong. In 2018 new research will commence in conjunction with

Ecosmart Ecology, the Sunshine Coast University and Queensland University of Technology. The

study is the first broad-area dedicated study on the Carpentarian pseudantechinus.

Biomonitoring results of the Stitt River in Tasmania have shown a marked improvement in ecological

condition since the upgrade project carried out at Rosebery Mine’s 2/5 Dam tailings storage facility in

Tasmania was completed. Fish and other macroinvertebrates have been found and their diversity

and distribution continues to grow. This initiative to improve historical seepage issues and correctly

manage the local waterways is helping to promote the biodiversity of the western Tasmanian

environment.

Case study: BHP management of ghost bats in the Pilbara14

Roosts for the ghost bat, Australia’s largest carnivorous bat, were recorded in an area proposed for

future mining disturbance in the Pilbara. Little was known about the bat’s distribution and ecology,

making it hard to assess potential impacts or management strategies.

Using new and modified technologies, the first population level study of the ghost bat in Australia

using faecal DNA material was conducted. Roosts were mapped in three dimensions to develop and

trial long-term artificial habitats to see if these could replace natural habitats. Study results will inform

future environmental approvals for activities where impacts to ghost bats may occur. The results will

also be made publicly available, as the techniques can be used for other species and locations.

Extensive collaboration helped the team address significant information gaps needed for biodiversity

conservation and future environmental approvals, both of which could potentially constrain the mine

plan. This collaboration has continued to build on Western Australia Iron Ore’s positive relationship

with environmental regulators, research institutions and peers.

Case study: Northern Hairy Nose Wombat Recovery Project15

The northern hairy-nosed wombat is one of the rarest animals in the world and a critically endangered

species.

Glencore volunteered to partner with the Queensland Department of Environment and Heritage

Protection to airlift northern hairy-nosed wombats from Epping Forest National Park to a new colony

near St George in south-west Queensland.

The St George site was established with predator-proof fencing, starter wombat burrows, water and

food stations, electrical and communication infrastructure, veterinary equipment, and predator, pest

and weed removal. An environmentally sustainable ranger station was also constructed on site.

This dynamic reintroduction program is one of the most unique and important sustainable

development projects in Australia’s natural history.

The first northern hairy-nosed wombat joey was born in October 2011 and the current population is

now around 200, up from 35 at its lowest point. With numbers slowly increasing, the establishment of

further northern hairy-nosed wombat colonies will help to secure the survival of the species.

13

MMG, 2017 Sustainability Report, page 59, viewed August 6 2018 14

BHP, Chasing Ghosts, viewed August 7 2018 15

Department of Environment and Heritage Protection, Northern Hairy nosed Wombat Recovery Project Fact Sheet, Queensland Government, viewed 14 September 2018.

Minerals Council of Australia | 6

Harnessing Indigenous knowledge

The Australian minerals industry has long understood the value of harnessing the knowledge of

Indigenous Australians in managing land. The following case studies provide examples where

traditional knowledge has been used to facilitate improved mine rehabilitation outcomes and

enhancing ecological values.

Case study: Engaging traditional owners in mine rehabilitation16

Red Dirt Seeds

Red Dirt Seeds specialises in revegetation and rehabilitation of mine sites in Western Australia. It

employs several casual staff on a seasonal basis and engages regular contractors to locate and

harvest seed stocks predominantly from the Goldfields and Pilbara. Red Dirt Seeds has strong

connections with local indigenous communities who share their invaluable environmental knowledge

and commitment to the conservation of the environment. Red Dirt Seeds is committed to training and

providing on-going opportunities for seed harvesting by local indigenous communities.

Client list includes Barrick, BHP Billiton, FMG, St Barbara, AngloGold Ashanti, Rio Tinto, Goldfields

Rio Tinto – Weipa, FNQ, 2015

Local Aboriginal people are playing a leading role in providing a stable and quality supply of seedlings

to rehabilitate mined land at Rio Tinto Aluminium’s bauxite mine in Weipa, Far North Queensland.

Weipa also engages local Indigenous business Northern Haulage Diesel Services in this initiative.

They facilitate community engagement with Weipa and its surrounding communities, to collect under

storey seed for the rehabilitation process. Under storey vegetation grows beneath the level of the

forest canopy.

Last year (2014) more than 760 kilograms of seed from more than 40 species was collected by about

100 local Aboriginal pickers as a part of the community programme.

16

Rio Tinto, About Red Dirt Seeds, Weipa Indigenous Seed Collection, viewed 8 August 2018

Minerals Council of Australia | 7

REGULATORY AND POLICY FRAMEWORK FOR MINING

Within Australia, modern mining environmental practice is highly regulated, generally well

implemented and widely held to account. Existing policy and regulatory frameworks adequately

address conservation and biodiversity needs for regulated activities, as illustrated by the examples

below.

Theme Evidence/Example

National laws and policies:

incentives and penalties

Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)

Australia’s Biodiversity Conservation Strategy 2010 –203017

Numerous state and territory based Acts and subsidiary legislation. While not

“national”, much of the detail for biodiversity is legislated at the State/Territory

level due to the way the Australian Federation is constituted.

Planning and assessment at

the policy level: spatial

planning and strategic

environmental assessments

Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)

Australian Government’s Bioregional assessments18

Australian Government’s ‘Managing the Reef’ strategic assessment and 25-

year management plan19

Strategic assessment of BHP Billiton iron ore expansion for the Pilbara20

Planning and assessment at

the project level:

environmental and social

impact assessment

The EPBC Act specifies stringent requirements for conducting Environmental

Impact Assessments as part of the environmental approvals process

Various state/territory legislation (planning, mining, environmental)

The MCA’s Cumulative Environmental Impact Assessment Guide provides

industry guidance on how to successfully undertake these complex

assessments21

Institutions: enforcement,

transparency, accountability,

inclusion, coordination and

consultation

Australian Government – Department of Environment and Energy

Australian Government – Department of Industry, Innovation and Science –

Resources Division

Various State based departments and agencies, including Environment, Mining,

Planning and Environmental Protection Authorities (EPAs)

Various state/territory legislation (planning, mining, environmental)

Funding and environmental

and social safeguards

State based financial assurance (security bonds) provides a monetary

safeguard to protect government from incurring unfunded liabilities should a

company be unable to meet its rehabilitation obligations.

State-based security bonds are regularly reviewed and updated to reflect

changing community and government expectations, industry practice and

modern rehabilitation methods, and variations in service costs. The overall pool

of funds held by government has increased substantially in recent years,

reflecting these changes and significant industry expansion.

17

Department of Environment and Energy, Australia's Biodiversity Conservation Strategy 2010 - 2030 , viewed June 19 2018 18

Australian Government, http://www.bioregionalassessments.gov.au/, viewed June 19 2018 19

Australian Government, Great Barrier Reef Marine Park Authority, http://www.gbrmpa.gov.au/managing-the-reef/strategic-assessment, viewed June 21 2018 20

Department of Environment and Energy, Pilbara Iron Ore Expansion Strategic Assessment, viewed August 21 2018 21

Minerals Council of Australia, Cumulative Environmental Impact Assessment Guide, July 2015

Minerals Council of Australia | 8

Project approvals processes

All mining proposals are subject to state and territory project assessment and approval processes.

These processes are both comprehensive and include consideration of environmental/biodiversity

values.

At a federal level, the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)

provides a legal framework to protect and manage nationally and internationally important flora,

fauna, ecological communities and heritage places. The EPBC Act is significantly guided by

Australia’s international environmental obligations, including the Convention on Biological Diversity

(CBD).22

If a mining proposal is deemed likely to impact any one of nine specified national matters of

environmental significance under the EPBC Act, the proposal must also secure federal approval

before it can proceed.

A common feature of environmental approvals for mining projects is the requirement for the proponent

to provide an environmental impact assessment (EIA) report for public consultation and regulator

assessment. The potential for the project to impact different environmental values, including

nationally threatened species and ecological communities and the proposed management of those

potential impacts, is documented in the EIA. The industry invests considerable resources into

completing EIAs which can take several years to complete.

Federal and/or state/territory approvals will include specific conditions which must be met by the

proponent. Their intent is to prevent, control, abate or mitigate potential environmental harm. Where

necessary, requirements for environmental offsets will also be set within these conditions.

22

Department of Environment and Energy, Final Report of the Independent Review of the Environmental Protection and Biodiversity Conservation Act 1999, Chapter 2, page 12, Dr Allan Hawke, October 2009, viewed June 12 2018

Minerals Council of Australia | 9

ENHANCING BIODIVERSITY OUTCOMES

Opportunities exist to capitalise on the Australian minerals industry’s experience and investment in

biodiversity and conservation efforts.

Data collection and accessibility

As noted in the MCA’s submission on the draft Strategy for Nature 2018-2030:

Due to the scale of project baseline environmental assessments and site-based and regional environmental

monitoring programs, the industry hosts extensive data relating to a range of environmental values, including

water and air quality and flora and fauna. There is significant potential for this and other untapped data to be

more broadly captured and shared to enhance knowledge about nature.

Steps to improve the availability and sharing of data should be developed in consultation with sectors, such

as the mining sector, that collect and analyse environmental data. 23

Strategic approaches

The minerals industry has contributed to the development of regional-level assessments. Recent

examples include the Australian coal industry’s provision of scientific data to support development of

the Commonwealth’s Bioregional Assessment program, and BHP and the Australian government’s

joint strategic assessment of the Pilbara region of Western Australia, assessing the cumulative

impacts of future iron ore mines on matters protected under the EPBC Act.24

In addition, the MCA sees benefit in further integration of the Standing Council on Energy and

Resources (SCER) Multiple Land Use Framework (MLUF) into local, state/territory and

Commonwealth processes to inform strategic resource planning. The MLUF, endorsed in 2013, is

designed to be used by government decision makers, to achieve optimal multiple and sequential land

use outcomes.25

Cross-sectoral knowledge sharing

Adapting leading practice guidance developed for the minerals industry (provided above) to other

sectors may contribute to cross-sectoral knowledge sharing. In addition, sharing outcomes from

industry research provides a platform for enhancing biodiversity outcomes more broadly.

Arid Recovery: Working together to achieve ecological outcomes26,27

Arid Recovery is a not-for-profit conservation initiative that has been restoring Australia’s arid lands

since 1997. The Arid Recovery project aims to ensure that mining activity has a net positive impact

on regional biodiversity assets. The project features a reserve of 123 km2 with predator-exclusion

fencing, supplemented by broader scale control of feral animals and ecosystem regeneration. It is

supported by volunteers, the local community and partners: BHP’s Olympic Dam, the South

Australian Department for Environment and Water, The University of Adelaide and Bush Heritage

Australia.

Established in response to the depletion or extinction of much of the original fauna and flora in the

Roxby Downs region, as well as the extinction since European settlement of 60 per cent of native

mammal species that used to inhabit the region, the initiative combines scientific research and

monitoring with on-ground management to produce significant conservation benefits for threatened

species.

23

Department of Environment and Energy, Draft Revision of Australia’s Biodiversity Conservation Strategy, MCA Submission, March 2018 24

Bioregional Assessments, About the Program, Commonwealth of Australia, viewed 22 March 2018 and Department of Environment and Energy, Pilbara Iron Ore Expansion Strategic Assessment, viewed August 21 2018 25

COAG Energy Council, Multiple Land Use Framework, December 2013 26

Morton, Sheppard and Lonsdale, Biodiversity: Science and Solutions for Australia, CSIRO, 2014, pp 177 27

BHP, Arid Recovery , viewed August 21, 2018

Minerals Council of Australia | 10

The project provides a model for broad-scale restoration and has made important contributions to the

understanding of the ecology of arid Australia. According to BHP:

Native plants have regenerated within the reserve, and local mammals and reptiles have responded to the

removal of introduced species and domestic stock. Numerous locally extinct mammal species have been

successfully reintroduced to the reserve to date, including the Greater Stick Nest Rat, the Burrowing

Bettong, the Greater Bilby and the Western Barred Bandicoot.

Arid Recovery demonstrates how mining, pastoralism, tourism and conservation organisations can

work together to achieve mutually beneficial ecological outcomes, and help increase understanding

and adoption of sustainable land management techniques.

Further supporting and harnessing traditional ecological knowledge

Over many decades the industry has partnered with Traditional Owners to develop and implement

plans that promote and harness traditional ecological knowledge, and implement culturally-

appropriate strategies for flora and fauna management. Substantial opportunities exist for other

sectors to learn from shared experience within the mining sector.

Strategic approaches to biodiversity offsets

Biodiversity offsets are a necessary tool employed by the minerals industry to manage potentially

significant residual impacts. This may include the establishment of protected areas for conservation,

developing new or improved habitat on degraded land and/or the control of key threatening processes

including feral animals, fire and weeds. Offsets could be better harnessed to enhance the

connectivity and resilience of conservation values within the landscape. A mechanism that enables

other biodiversity priorities to be considered in offset contributions (not necessarily ‘like for like’)

should also be considered. This would provide governments with the flexibility to direct resources to

more urgent conservation matters, priority species or biodiversity values.

Minerals Council of Australia | 11

FURTHER INFORMATION

For more information regarding this submission please contact Lorna O’Connell, on (03) 8614 1815

(email: lorna.o’connell@minerals.org.au) or Chris McCombe on (02) 6233 0600 (email:

chris.mccombe@minerals.org.au).