MINING LEASE No ANNUAL ENVIRONMENTAL MANAGEMENT REPORT APRIL 2012
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1 MINING LEASE No ANNUAL ENVIRONMENTAL MANAGEMENT REPORT APRIL 2012 MOP Commencement : 1 January 2008 MOP Completion : 1 January 2015 AEMR Commencement : 1 April 2011 AEMR Completion: 31 March 2012 Name of Leaseholder : Abterra Australia Pty Ltd ABN Reporting Officer: Peter Slattery
2 TABLE OF CONTENTS 1.0 INTRODUCTION AND GENERAL OBJECTIVES Scope History of Operations Consents, Leases and Licences Location and Land Ownership Mine Contacts Statutory Positions Product Use and Markets Iron Ore Products and Sales Figures OPERATIONS DURING THE REPORTING PERIOD Activity Statement for Broula Mine (April 11- March 12) Exploration Land Preparation Construction Mining Mineral Processing Waste Management Production and Waste Schedule for the Broula Mine Water Management Hazardous Material Management Other infrastructure Management ENVIRONMENTAL MANAGEMENT AND PERFORMANCE Air Quality Erosion and Sediment Control Surface Water Pollution Ground Water Pollution Contaminated Land Threatened Flora Threatened Fauna Weeds Blasting Operational Noise Visual Stray Light Aboriginal Heritage Natural Heritage Spontaneous Combustion Bushfire Mine Subsidence Hydrocarbon Contamination Methane Drainage/Ventilation Public Safety Other Issues and Risks COMMUNITY RELATIONS Environmental Complaints Broula Magnetite & Limestone Mine Annual Environmental Management Report 1
3 4.2 Community Liaison REHABILITATION Buildings Rehabilitation of Disturbed Land Other infrastructure ACTIVITIES PROPOSED IN THE NEXT AEMR PERIOD PHOTOGRAPHS (Mining) PLAN 8.1 Broula Mine Site Plan..16 Broula Magnetite & Limestone Mine Annual Environmental Management Report 2
4 1. INTRODUCTION AND GENERAL OBJECTIVES 1.1 Scope This Annual Environmental Management Report (AEMR) for Broula Magnetite & Limestone Mine (the Broula Mine) was prepared to comply with the conditions of Mining Lease No (ML1616) during the reporting period 1 April March The AEMR forms part of the Department of Industry and Investment (DII) (formerly the Department of Primary Industries (DPI)) Mining Rehabilitation and Environmental Management Process (MREMP), which requires the leaseholder to prepare and submit an AEMR on or about the anniversary of grant of any Mining Lease. 1.2 History of Operations ML1616 was granted to Somerset Mining Pty Ltd (SMPL) on 31 March 2008 by the NSW DPI. Mining operations commenced in late-august 2008 with re-alignment of fences, removal of limited areas of vegetation, installation of sediment catch drains and dams, and preparatory work for access road works and overburden removal. Mining activity commenced in late-september Routine mining activities commenced in mid-february, 2009 and continued throughout the remainder of the reporting period. The mine was placed on care and maintenance in mid-february, 2010 pending a review of operations. The mine remained on care and maintenance throughout the reporting period. 1.3 Consents, Leases and Licences Development Consent for mining at Broula was granted by Cowra Shire on 25 June 2007 pursuant to Development Application No. 14/2007. ML1616 was granted by the NSW Minister for Primary Industries for a period of twenty years from 31 March Abterra undertakes its activities in accordance with the conditions of consent from Cowra Shire, the conditions attaching to ML1616 and Environment Protection Authority (EPA) Licence No Location and Land Ownership The lease area of hectares is located approximately 20 kms west of Cowra with access off the Mid-Western Highway. The lease occupies private land the southern portion owned by Mr & Mrs B Walker of Broula via Cowra, NSW and the northern portion is now owned by Abterra 1.5 Mine Contacts Statutory Positions Mine Name Mine Owner Mine Operator Production Manager Broula Magnetite & Limestone Mine Abterra Australia Pty Ltd Consolidated Mining &Civil Mr Ian Jones Mine Contact Number Production Manager s Contacts ian@conmc.net.au Consolidated mining & civil Office Number Broula Magnetite & Limestone Mine Annual Environmental Management Report 3
5 Consolidated Mining & Civil Facsimile Consolidated Mining & Civil Address Mine Site Address Postal Address Mid-Western Highway Suite 201, 10 Century Circuit, Via Cowra NSW 2794 Baulkham Hills NSW Product Use and Markets The Broula Mine, prior to temporary cessation of activities, was producing magnetite ore for use by Unimin Australia Ltd in the production of magnetite concentrate at its Tallawang Mine near Mudgee for use as a dense medium additive in coal preparation. The Global Financial Crisis and the attendant fall in iron ore prices resulted in the cessation of sales to BlueScope Steel and Blue Circle Southern Cement in June, Mining Lease ML1616 was transferred to Abterra Australia Pty Ltd. on 19 September 2011 and will be commissioned to be producing ore approximately in June 2012 Other markets are being investigated for both iron ore types and limestone that form the bulk of the deposit. 1.7 Iron Ore Products and Sales Figures Iron Ore Sales Figures (Tonnes) Haematite Sales 1/4/2008 to 31/3/2009 1/4/2009 to 31/3/2010 1/4/2010 to 31/3/ , , Magnetite Sales 1/4/2009 to 31/3/2010 1/4/2010 to 31/3/ , Total 10, , There has been no production since 31 March, OPERATIONS DURING THE REPORTING PERIOD 2.1 Activity Statement for the Broula Mine (April 11 March 12) Prior to February 2010 mining operations included removal and stockpiling of vegetation and topsoil, blasting, relocation and stockpiling of overburden and blasting, mining and crushing of haematitic and magnetite iron ore. Haematitic ore has been stockpiles in the hope of obtaining markets. Crushed ore is transported from ML1616 by articulated on-road tipper trucks. The mine was placed on temporary care and maintenance on 15 February pending a review of operations. There has been no activity during the period. Typical mine design parameters include: Bench heights of between 10 and 16 metres as determined by overburden thickness. Bench widths typically 5 meters minimum. 10 meter wide ramps at grades of up to 1 in 8. Working face batters of 75 degrees from the vertical. Material density 2.6 tonnes per bcm in overburden and 4.2 tonnes per bcm in iron ore. Mining rates were typically 1,000 bank cubic metres (bcm) per day in overburden and 1,000 tonnes per day (tpd) in iron ore. Broula Magnetite & Limestone Mine Annual Environmental Management Report 4
6 Mine equipment included the following not all working concurrently: 1 x 35 tonne Excavator 1 x 50 tonne Excavator 1 x 100 tonne Excavator 2 x 50 tonne rigid dump trucks 1 x Volvo L120 Front end loader 1 x Cat 980 Front end loader 1 x Cat 988 Front end loader 1 x 40,000 litre rigid water cart 1 x PremierTrak 900 x 600 jaw crusher 1 x MaxTrak 1000 cone crusher 1 x Mobile screening plant 4 x Light vehicles 1 x Electronic weighbridge 3 x Transportable buildings 1 x Mobile workshop 1 x Fuel 16,000 tanker Mine operating hours were generally Monday to Friday, well within the Cowra Shire Consent Conditions. During operations the mine employed up to 10 full time staff including the Production Manager. 2.2 Exploration There has been no exploration in this period 2.3 Land Preparation Ni land preparation activities were undertaken during the period. 2.4 Construction No construction activities were undertaken during the period. 2.5 Mining No mining activities were undertaken during the period. 2.6 Mineral Processing No mineral processing was undertaken on the site. 2.7 Waste Management Over-burden removed from above and beside the iron ore was stockpiled to the east and north of the open pit. As operations are in the developmental stage no rehabilitation is possible until waste Broula Magnetite & Limestone Mine Annual Environmental Management Report 5
7 repositories have achieved their final configuration, at least in part. Some remedial run-off management activities took place during the period, mainly to ensure that topsoil stockpiles were protected from erosion. All general rubbish created at the site and some contaminated gravel from within bunded areas was collected and disposed of at the Grenfell Waste Depot in according to the Lease and Licence conditions. 2.8 Production and Waste Schedule for the Broula Mine BROULA MINE Year - April to March Topsoil Removal (bcm) Overburden Removal (bcm) Ore Production (tonnes) Iron Ore Sales (tonnes) Limestone Sales (tonnes) 2008/09 1,000 30,000 10,300 10, /10 10, ,000 74,000 74, /11 5, ,000 10,000 10, /12 200, , ,000 70, /13 200, , ,000 70, Operating Days 2.9 Water Management The surface water management plan is described in detail in the current MOP. There were no changes to this water management plan during the reporting period. No. 2 Sediment Catch Dam remained at less than 80% capacity for most of the period but reached full capacity several times since November, In accordance with the MOP water was pumped from the dam to the open pit when overflow appeared likely. Water management at Broula Mine is focused on the control of runoff from disturbed areas to minimize the potential for off-site discharge of runoff carrying sediments from the site. Surface runoff from existing operations is directed into either No. 1 or No.2 Sediment Catch Dams (Plan in section 8.1) with Dam 1 overflowing into Dam 2. Two perimeter Sediment Catch Drains (Northern and South-eastern) intercept water flowing from disturbed areas and direct that water into one sedimentation dam or the other. Catch drains are fitted with silt stop fencing with spacing between fences of approximately 20 metres. Fences are cleared of sediment after each rain event as necessary. During the period additional coarse overburden rock was placed in all catch drains as a means of better controlling scouring and retention of sediment. Diversion drains were installed to direct water away from topsoil stockpiles where necessary. Broula Magnetite & Limestone Mine Annual Environmental Management Report 6
8 The Dams were built in accordance with standard construction practice employed by DWE and industry from materials won on site. To date Dam 2 has held sufficient water for use in site dust control. In light of the recent significant increase in rainfall Abtera is considering increasing the capacity of Dam Hazardous Material Management No hazardous substances, oils or grease are currently stored within ML Other Infrastructure Management Iron ore product was, and will again be transported off site via articulated on-road tipper trucks. These vehicles travel south along the mine access road to the Mid-Western Highway then turn east onto the Highway towards Cowra. Trucks travel to Cowra then to Port Kembla via Boorowa, Yass, and the state highway network. Product transport from the site is largely dictated by demand, with approximately twenty to twenty-five loads or 950 tonnes per day on average leaving the site, under the current market requirement of up to 19,000 tonnes per month. 3. ENVIRONMENTAL MANAGEMENT AND PERFORMANCE Environmental management at the Broula Mine is conducted in accordance with Aberra s Development Consent conditions, the MOP for ML1616 and EPA Licence No Air Quality Air quality issues associated with the Broula Mine relate primarily to the potential for dust generation. Dust control practices currently employed at the Broula Mine ensure that dust generation from potential sources is minimised. Air quality monitoring is required under the existing EPA License No Monitoring during the period showed low levels of deposited dust at all specified locations (Sampling Method AM-19). All of the results fell within the guidelines of 4 gm/m 2 /month and results are routinely copied to the EPA. Dust control measures during operations consisted of the following: Maintenance of all trafficable and stockpile areas including, when necessary, spraying with water. Minimising potential dust generation from disturbed areas by application of water from the water-cart. Use of dust-suppressing sprays on crushers and screens or watering of crusher feed stockpiles to prevent dust generation during crushing and screening operations. Ensuring that all trucks transporting iron ore from the Broula Mine site are effectively covered and loads secured to prevent dust generation and loss of product during transit. Broula Magnetite & Limestone Mine Annual Environmental Management Report 7
9 Dust monitoring has been undertaken since August 2008 and results are shown on the Abterra Australia Pty Ltd. ( High Volume Air Sampling (HVAS PM10) commenced in September, 2009 (Sampling Method PM-10) at the Tallarook site results are shown on the company s web site. No complaints were received from neighbours during the period. 3.2 Erosion and Sediment Control Erosion and sediment transport are controlled by the minimisation of runoff through disturbed or exposed unvegetated areas. Minor erosion occurs on site due to relatively low rainfall. All runoff water is firstly diverted to sediment catch drains, and then the sediment catch dams. Cleared vegetation is placed in windrows uphill of the catch drains and acts as sediment traps. Silt fences are located along the catch drains to inhibit sediment flow along the drains and to prevent breaching of the outer perimeter of the drains. 3.3 Surface Water Pollution The only means of polluting surface water on the Broula Mine site is from sediments collected from mining activities and erosion. All hydrocarbons are contained within bunded areas, storage sheds or in on-road vehicles thereby preventing contaminated water escaping into the drainage system. All sediments that are carried within water flows are collected within the sedimentation dams. Even though the site has experienced several significant rainfall events since late-2011 and during early-2012 there is no evidence of discharge from the sediment catch dams to the natural drainage system. 3.4 Ground Water Pollution The existing open pit is above the water table. There are no water bores used by the operation, as all water requirements are recycled from surface water runoff collected in the approved dams. There is no ground water pollution emanating from the site. In March, 2010 two water monitoring bores were drilled under Licences issued by the Department of Water & Energy (DWE) and on the advice of ground water consultants Aquaterra. 3.5 Contaminated Land As all potential land contaminants were effectively controlled, contained and/or removed from the site. 3.6 Threatened Flora There were no issues relating to threatened flora identified during the reporting period. 3.7 Threatened Fauna There were no issues relating to threatened fauna identified during the reporting period. The eagles noted as being of concern during the EIS process are seen daily soaring above the mine site. Broula Magnetite & Limestone Mine Annual Environmental Management Report 8
10 3.8 Weeds Spraying for weed control will be used only as required. No spraying has occurred on site during the reporting period with most of the areas within the active mining zone being subject to vegetation removal with little or no chance for weed growth. 3.9 Blasting No blasting operations at the Broula Mine were undertaken within the reporting period Operational Noise Noise limits are included in EPA Licence No for the Broula Mine and to date no formal complaints regarding noise impacts have been received by site management Visual Stray Light Mining operations are restricted to daylight hours there is no artificial lighting at the mine after dark Aboriginal Heritage The scarred tree on the eastern boundary of ML1616 is being avoided and protected. It is the belief of Abterra, on the advice of Mr Bill Chapman, surveyor, that the tree is not an Aboriginal Heritage scarred tree but in fact a tree blazed by the original surveyor in the mid-1800 s and is so marked on the survey plans of that time Natural Heritage No activities affected the areas of natural heritage identified in the EIS during the reporting period Spontaneous Combustion No material susceptible to spontaneous combustion is stored on site Bushfire There were no bush fires in the area during the reporting period. Consolidated mining & Civil has a Bushfire Management Plan Mine Subsidence Not applicable Hydrocarbon Contamination All hydrocarbons are stored within controlled areas i.e. bunds or on-road vehicles. No significant spills or contamination occurred during the AEMR period that required remediation. Broula Magnetite & Limestone Mine Annual Environmental Management Report 9
11 3.18 Methane Drainage/Ventilation Not Applicable 3.19 Public Safety Access to the Broula Mine is via the 650 m long mine access and haul road that exits from the Mid- Western Highway on the southern boundary of ML1616. This single entrance has a gate and is sign posted with both safety warning and visitor instruction signs. The mine site is fenced with rural style fencing. The layout and construction of fencing has been conducted in consultation with the landowner. In addition, safety bunds and safety signs have been installed in areas identified in accordance with site safety procedures detailed in the Mine Safety Management Plan. Safe operation of the Broula Mine is a requirement under the Mines Inspection Act & Regulations, and under the OH&S Act & Regulations Other Issues and Risks Abterra, in consultation with the company s road freight contractors, the Broula community, Cowra Shire and Cowra Bus Services compiled a Road Transport Protocol (RTP). This RTP encompasses certain requirements of Abterra contained in consent and licence conditions as well as a raft of voluntary restrictions imposed by Abterra on trucks carrying product from the mine site. During the AEMR period no complaints were received in relation to truck movements. 4 COMMUNITY RELATIONS 4.1 Environmental Complaints There were no environmental complaints during the period. 4.2 Community Liaison A phone number for complaints is operating. Consolidated Mining & Civil has established a web site to promulgate community and environmental monitoring information and the Community Consultative Committee has met quarterly during this AEMR period. A site inspection by CCC members has taken place regularly. 5. REHABILITATION (THIS AEMR PERIOD) 5.1 Buildings Site offices, a first aid room, a crib room and a workshop facility were installed at the Broula Mine in mid-february. Broula Magnetite & Limestone Mine Annual Environmental Management Report 10
12 5.2 Rehabilitation of Disturbed Land No rehabilitation was undertaken in the AEMR period as operations temporarily ceased in mid-february. As the mine is in the developmental phase it is too early to commence rehabilitation. 5.3 Other infrastructure No additional infrastructure was installed during the period. 6. ACTIVITIES PROPOSED IN THE NEXT AEMR PERIOD Upon resumption of mining operations, May, 2012, the mine will continue to be open cut and during the next five year period (1 April March 2013) will extend downward, eastward and northward from the existing open pit. Over the life of the project, the open pit will extend eastward and northward, and the overburden repositories will extend from the eastern and northern margins of the open pit to the sediment catch drains that delimit the areas within ML1616 that will be disturbed. Resumption of mining is proposed within the next AEMR period. Broula Magnetite & Limestone Mine Annual Environmental Management Report 11
13 7. PHOTOGRAPHS Broula Mine Low Level Oblique Aerial Photograph View from the South - April 2010 Broula Magnetite & Limestone Mine Annual Environmental Management Report 12
14 Low Level Oblique Aerial Photograph View from the N-W - April 2010 Workshop Facility, Weighbridge and Waste Emplacement Broula Magnetite & Limestone Mine Annual Environmental Management Report 13
15 Open Pit view from N-W Rim Broula Magnetite & Limestone Mine Annual Environmental Management Report 14
16 Views Across Northern End of Open Pit to East to Overburden Emplacement Broula Magnetite & Limestone Mine Annual Environmental Management Report 15
17 8. Plan 8.1 Broula Mine Site Plan Broula Magnetite & Limestone Mine Annual Environmental Management Report 16
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