Monthly Environmental Monitoring Report

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1 MACH Energy Australia Pty. Limited 21-Nov-2016 Monthly Environmental Monitoring Report Project - October 2016

2 Project - October 2016 Client: MACH Energy Australia Pty. Limited ABN: Prepared by AECOM Australia Pty Ltd St Patrick's Commercial Centre, Queens Street, Singleton NSW 2330, Australia T F ABN Nov-2016 Job No.: AECOM in Australia and New Zealand is certified to the latest version of ISO9001, ISO14001, AS/NZS4801 and OHSAS AECOM Australia Pty Ltd (AECOM). All rights reserved. AECOM has prepared this document for the sole use of the Client and for a specific purpose, each as expressly stated in the document. No other party should rely on this document without the prior written consent of AECOM. AECOM undertakes no duty, nor accepts any responsibility, to any third party who may rely upon or use this document. This document has been prepared based on the Client s description of its requirements and AECOM s experience, having regard to assumptions that AECOM can reasonably be expected to make in accordance with sound professional principles. AECOM may also have relied upon information provided by the Client and other third parties to prepare this document, some of which may not have been verified. Subject to the above conditions, this document may be transmitted, reproduced or disseminated only in its entirety.

3 Quality Information Document Ref Date Prepared by Reviewed by 21-Nov-2016 Sue Bowsher Paul Wenta Revision History Name/Position Signature 21 Nov. 16 Paul Wenta Principal Scientist - Air Quality

4 Table of Contents Executive Summary i 1.0 Introduction Dust Deposition Methodology Assessment Criteria Results Discussion Surface Water Quality Methodology Assessment Criteria Results Discussion Groundwater Quality Methodology Assessment Criteria 14 Appendix A Dust Deposition - Analytical Report, Field Sheets and Chain of Custody Documentation Appendix B Surface Water - Analytical Report, Field Sheets and Chain of Custody Documentation Appendix C Groundwater - Analytical Report, Field Sheets and Chain of Custody Documentation A B C List of Tables Table 1 MTP Monitoring Summary i Table 2 MTP Monthly Depositional Dust Summary 2 Table 3 Monthly Dust Deposition Gauge Sampling Results 3 Table 4 Field Notes for Contaminated Dust Gauges 7 Table 5 MTP Monthly Surface Water Monitoring Summary 8 Table 6 Monthly Surface Water Monitoring Results- October Table 7 MTP Quarterly Groundwater Summary 13 List of Figures Figure 1 MTP DDG Total Insoluble Solids Monitoring Results October Figure 2 Depositional Dust Contours October Figure 3 Depositional Dust Contours Rolling Annual Average, October Figure 4 Mt Pleasant Surface Water ph 10 Figure 5 Mt Pleasant Surface Water EC 11 Figure 6 Mt Pleasant Surface Water TSS 11

5 i Executive Summary Environmental monitoring is conducted in the vicinity of the Project through routine and event based sampling of local air, soil and water. The monitoring aims to collect data on local environmental parameters, and assess this background data in relation to future mining activities. The monitoring regime was specified by the Rio Tinto Umbrella Supply Contract (CW ) Environmental Monitoring Services. In July 2016 the sale of the site to MACH Energy Australia was completed with the contract, as stated above, still applying and being novated across to MACH Energy Australia. All environmental monitoring was performed by AECOM. A summary of the monitoring results for October 2016, assessed against adopted criteria, is provided in Table 1. Table 1 MTP Monitoring Summary Sampling Activity Sites Ambient Air Quality Monitoring Dust D1, D3 D14 deposition Surface Water Quality Monitoring W2, W4, W5, W7, Monthly W8, W9 & W10 Groundwater Quality Monitoring Date(s) performed 20 October October 2016 Acceptable Exceedance X X Comments Exceedance of insoluble solids annual rolling average at D7. Exceedance of total suspended solids at site W8. Quarterly WRA1L; WRA1U; WRA2L; WRA2U; WRA3L; WRA3U; WRA5L; WRA5U; WRA6L; WRA6U; MPBH1; MPBH2; MPBH3; 3500B500 (L); 3500B500 (S); 3500C500 (L); 3500C500 (S); 4500F000; 5000D000 (S); 5500D000; 6000C000 (L); 6000C000 (S); 6500F500L; 6500F500U; 6500F500M; 7000D000U; 7000D000L; and 7500F000. Non sampling month

6 1 1.0 Introduction Environmental monitoring is conducted in the vicinity of the Project (MTP) through routine sampling of surface water, ground water and depositional dust. The monitoring regime is described in full in the Novated Rio Tinto Umbrella Supply Contract (CW ) Environmental Monitoring Services. The purpose of the monitoring regime is to demonstrate compliance with Australia and New Zealand Environmental Conservation Council (ANZECC) guidelines and Office of Environment and Heritage (OEH) impact assessment criteria. This report presents the results from the environmental monitoring program conducted at MTP during October 2016, which consisted of monitoring of: Monthly depositional dust; and Monthly surface water quality.

7 2 2.0 Dust Deposition 2.1 Methodology Dust deposition was monitored according to the OEH s Approved Methods for the Sampling and Analysis of Air Pollutants in New South Wales (DEC 2007), which references AS/NZS :2003 (R2014) Determination of particulate matter Deposited matter Gravimetric Method. The monitoring network comprises of 13 dust deposition gauges (DDG). Details of the monitoring locations and sampling parameters are summarised in Table 2. The DDG samples were analysed for insoluble solids and ash residue; ash residue indicated the presence of inorganic or non-combustible material. Table 2 MTP Monthly Depositional Dust Summary Monitoring Location / ID Insoluble Solids (g/m 2 /month) Ash Content (g/m 2 /month) D1 X X X D3 X X X D4 X X X D5 X X X D6 X X X D7 X X X D8 X X X D9 X X X D10 X X X D11 X X X D12 X X X D13 X X X D14 X X X Combustible Matter (g/m 2 /month) DDG samples can be contaminated by a variety of means, notably by the presence of insects and bird droppings. Results for contaminated gauges were not included in the calculation of the annual averages as this would result in skewed or misleading results for the purpose of dust deposition assessment. The Australian Standard does not provide criteria for the determination of contamination of a DDG. A gauge sample is determined by AECOM to be contaminated only after reference to field observation sheets, historical monitoring location data, laboratory notes and results, prevailing atmospheric conditions and feedback from field technicians. For example, a gauge sample with a statistically abnormally high insoluble solids result, a low ash residue result (indicating a high level of organic matter) and field notation that bird droppings or insects were present is likely to be considered contaminated. 2.2 Assessment Criteria Dust deposition is assessed against the guidelines defined in the OEH Approved Methods for the Modelling and Assessment of Air Pollutants in New South Wales (DEC 2005). The OEH specifies an impact assessment criterion of 4 g/m 2.month as a maximum annual average value, which is compared to the annual average insoluble solid levels. 2.3 Results Sampling was undertaken on 20 October 2016; results are summarised in Table 3. Analytical reports, field sheets and chain of custody documentation are provided in Appendix A.

8 3 Table 3 Station Monthly Dust Deposition Gauge Sampling Results Depositional Dust (g/m 2.month) Insoluble Ash Solids Ratio of Insoluble Solids to Ash (%) YTD Insoluble Solids (g/m 2.month) Insoluble Solids Annual Rolling Average (g/m 2.month) D D D D5 4.3c D6 5.7c D7 13.9c D D D D D D13 1.7c D14 3.6c Criterion Results in bold indicate exceedances of adopted assessment criteria c. indicates contaminated gauge. Results not included in annual average calculation. Figure 1 compares the monthly insoluble solids results to the annual averages for each dust gauge and the assessment criterion. Figure 2 and Figure 3 display the October 2016 depositional dust contours and the annual rolling average dust contours respectively.

9 4 Figure 1 MTP DDG Total Insoluble Solids Monitoring Results October 2016

10 AECOM Figure 2 Depositional Dust Contours October

11 AECOM Figure 3 Depositional Dust Contours Rolling Annual Average, October

12 7 2.4 Discussion Exceedance of the OEH annual average criterion for dust deposition (insoluble solids) was recorded at site D7 (6.8g/m 2. month). The gauge was contaminated in October and therefore did not contribute to the annual rolling average. Table 4 outlines the contaminated Dust gauges for October. Other field notes from the October sampling event noted that all the gauges contained insects, with some also contaminated by vegetation and bird droppings. Table 4 Field Notes for Contaminated Dust Gauges Site Insol matter (g/m 2, month) Ash (g/m 2, month) D Ash to insol ratio (%) Water Colour Light Brown D Brown D Dark Brown D Brown D Cloudy Turbidity Slightly Turbid Slightly Turbid Very Turbid Slightly Turbid Slightly Turbid Decomposing Matter Insects, bird droppings Insects, bird droppings Insects, bird droppings Insects, bird droppings Insects, bird droppings

13 8 3.0 Surface Water Quality 3.1 Methodology Surface water quality is monitored on a monthly basis at nine sites. The monitoring sites and monthly sampling parameters are summarised in Table 5. Table 5 Monitoring Location/ ID MTP Monthly Surface Water Monitoring Summary ph Electrical Conductivity (µs/cm) W1 X X X W2 X X X W4 X X X W5 X X X W6 X X X W7 X X X W8 X X X W9 X X X W10 X X X Total Suspended Solids (mg/l) All surface water samples were collected and analysed in accordance with or referenced to the following documents: NSW OEH s Approved Methods for Sampling and Analysis of Water Pollutants in New South Wales (2004); AS/NZS (1998) Water Quality Sampling Guidance on the Design of Sampling Programs, Sampling Techniques and the Preservation and Handling of Samples; AS/NZS (1998) Water Quality Sampling Guidance on the Sampling of Rivers and Streams; AS/NZS (1998) Guidance on sampling from lakes, natural and manmade; NATA Accredited In-house Method Q4-AN(EV)-336 PR41 Water Sampling Rivers, Streams and Dams; NATA Accredited In-house Method Q4AN(EV)-332-WI3 Horiba D54 Field ph Meter Standard Checks, Calibration and Measurement, and; NATA Accredited In-house Method Q4AN(EV)-332-WI2 Horiba Conductivity Meter D54 Standard Solution Checks, Calibration and Measurement. 3.2 Assessment Criteria Surface waters were assessed in accordance with default trigger values for physical and chemical stressors for southeast Australia in the Australian and New Zealand Guidelines for Fresh and Marine Water Quality (ANZECC, 2000). These values are: ph in the range of (Table 3.3.2, lowland river); Electrical conductivity (EC) in the range of µs/cm (Table 3.3.3, lowland river); and Total suspended solids (TSS) below 50 mg/l (Table , Lowland River).

14 9 3.3 Results Surface water quality monitoring was conducted on 20 October Monthly monitoring results for ph, EC and TSS are presented in Table 6 and Figure 4, Figure 5 and Figure 6; results in bold type indicate exceedances of the adopted criteria. Analytical reports, field sheets and chain of custody documentation are presented in Appendix B. Table 6 Monthly Surface Water Monitoring Results- October 2016 Station ph Electrical Conductivity (µs/cm) Total Suspended Solids (mg/l) W1 ^ ^ ^ W W W5 * * * W6 ^ ^ ^ W7 * * * W W W10 * * * Criteria <50 Results in bold indicate exceedances of adopted assessment criteria * dry ^ no suitable access point ph field measurement by In-house Method Q4AN(EV)-332-WI3. EC by In-house method Q4AN(EV)-332-WI2. Results have been rounded in accordance with the In-house methods as stated above, original results are presented in Appendix B Field Sheets.

15 10 Figure 4 Mt Pleasant Surface Water ph

16 11 Figure 5 Mt Pleasant Surface Water EC Figure 6 Mt Pleasant Surface Water TSS

17 Discussion Three of the nine monitoring locations were found to be dry or had insufficient water on the sampling day. W1 and W6 were not sampled as no suitable access point was identified. Site W8 exceeded the total suspended solids (1960 mg/l) assessment criteria. Field observations recorded the sampling site to be a pool of water with no flow. This pool and exceedance of criteria may be due to the amount of rainfall that the area experienced in the sampling month. All of the remaining sites sampled met the adopted criteria during October 2016.

18 Groundwater Quality 4.1 Methodology Quarterly sampling of groundwater is undertaken for ph and electrical conductivity. The groundwater sampling program is summarised in Table 7. Table 7 MTP Quarterly Groundwater Summary Monitoring Location / ID ph Electrical Conductivity (µs/cm) WRA6U X X WRA6L X X WRA5U X X WRA5L X X WRA4U X X WRA4L X X WRA3U X X WRA3L X X WRA2U X X WRA2L X X WRA1U X X WRA1L X X MPBH3 (Bore 2) X X MPBH2 X X MPBH1 (Bore3) X X 3500B500 (L) X X 3500B500 (S) X X 3500C500 (L) X X 3500C500 (S) X X 4500F000 X X 5000D000 X X 5500D000 X X 6000C000 (L) X X 6000C000 (S) X X 6500F500L X X 6500F500M X X 6500F500U X X 6500F625 X X 7000D000U X X 7000D000L X X 7500F000 X X

19 14 Bore 6500F625 listed in the Key Terms for Service could not be located. This bore will not be included in any future sampling unless further details regarding its location can be provided. Bores WRA4L and WRA4U are no longer in place. Sampling was conducted in accordance with the Department of Planning s Groundwater Monitoring Guidelines for Mine Sites within the Hunter Region, as adapted from AS (1998) Guidance on sampling of ground waters and AS/NZS (1998) Water Quality Sampling Guidance on the Design of Sampling Programs, Sampling Techniques and the Preservation and Handling of Samples. Where monitoring bores could not be practically purged due to depth, large well volumes or slow recharge rates, water was extracted to achieve stability in field measurements before samples were extracted. 4.2 Assessment Criteria Groundwater quality will be assessed against historical baseline data. A change in standing water level of > 20 % from the previous measurement was adopted as an assessment criterion. 4.3 Results Sampling did not occur during October The next sampling event is scheduled for November 2016.

20 Appendix A Dust Deposition - Analytical Report, Field Sheets and Chain of Custody Documentation

21 A-1 Appendix A Dust Deposition - Analytical Report, Field Sheets and Chain of Custody Documentation

22 5/11 McIntosh Drive, Mayfield West, NSW 2304 Phone DUST DEPOSITION REPORT Origin: AECOM Project: Report : Page 1 of 1 Description : Dust Deposition Samples Date : Sampling : 20-Sep-16 To 20-Oct-16 ( 30 Days) 31-Oct-16 Report To : Ralph Brown Copy to: FILE St Patricks Commercial Centre, Queen Street Singleton NSW 2330 Sample Number Insoluble Matter g/m.month 2 2 Ash g/m.month Combustible Matter g/m 2.month D D D D D D D D D D D D D NATA Accredited Laboratory Accredited for compliance with ISO/IEC Reported By: Michael Campbell Determined in Accordance With: AS (Section 8 Only) Sample Times & Funnel Dimensions supplied by client Results expressed as a 30 day month

23

24

25 Appendix B Surface Water - Analytical Report, Field Sheets and Chain of Custody Documentation

26 B-1 Appendix B Surface Water - Analytical Report, Field Sheets and Chain of Custody Documentation

27 5/11 McIntosh Drive, Mayfield West, NSW 2304 Phone: WATER ANALYSIS REPORT Client: AECOM Report No.: Page 1 of 1 Project No: Description: Received: 20-Oct-16 Date: 26-Oct-16 Report to: Ralph Brown St Patricks Commercial Centre, Queen Street Singleton NSW 2330 Sample No Sample Description Sampled ph Conductivity µs/cm TSS mg/l TDS mg/l W2 - Hunter Central Site 10:50 20-Oct W4 - Muscle Creek 11:20 20-Oct W8 7:50 20-Oct-16 1, W9 10:10 20-Oct NATA Accredited Laboratory Accredited for compliance with ISO/IEC Note: 1. Sampled by Client 2. Recommended preservation time was exceeded for ph Reported By: Lothar Nowak Determined in accordance with:apha Methods for Conductivity (2510 B),pH (4500-H + B),TSS (2540 D) & TDS (2540 C)

28

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30 Appendix C Groundwater - Analytical Report, Field Sheets and Chain of Custody Documentation

31 C-1 Appendix C Groundwater - Analytical Report, Field Sheets and Chain of Custody Documentation

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