Bengalla Mining Company

Transcription

1 Bengalla Mining Company Bengalla Mining Company Annual Environmental Management Report and Annual Review 2011

2 BENGALLA MINING COMPANY PTY LIMITED Annual Environmental Management Report and Annual Review 2011

3 Name of Mine: Bengalla Titles/Mining Lease: ML1397, ML1469, ML1450, ML1592, AL13, A438 Open Cut MOP Commencement Date: December 2011 Open Cut MOP Completion Date: January 2013 AEMR Commencement Date: 01/01/2011 AEMR Completion Date: 31/12/2011 Name of Leaseholder: Bengalla Mining Company Pty Limited Reporting Officer: Title: Andrea Sutton General Manager Operations Signature: Date: March 2012 Distribution Department of Trade and Investment, Regional Infrustructure and Services - Division of Mining & Energy (DTIRIS) Department of Planning & Infrustructure Department of Premier & Cabinet (DPC) Muswellbrook Shire Council Bengalla Community Consultive Committee Members Printed on environmentally responsible paper

4 Table of Contents 1.0 INTRODUCTION DOCUMENT PURPOSE BACKGROUND APPROVALS, LEASES AND LICENCES MINE CONTACTS ENVIRONMENTAL MANAGEMENT SYSTEM OPERATIONS RESOURCE UTILISATION AND EXPLORATION LAND PREPARATION CONSTRUCTION MINING COAL PROCESSING COAL SALES WATER MANAGEMENT ENVIRONMENTAL MANAGEMENT AND PERFORMANCE METEOROLOGICAL AIR QUALITY GREENHOUSE EROSION AND SOIL DEVELOPMENT SURFACE WATER GROUNDWATER MANAGEMENT CONTAMINATED LAND FLORA AND FAUNA WEEDS FERAL ANIMAL CONTROL BLASTING OPERATIONAL NOISE VISUAL AMENITY AND LIGHTING ABORIGNAL HERITAGE NON-ABORIGINAL HERITAGE SPONTANEOUS COMBUSTION AND ACID ROCK DRAINAGE BUSHFIRE MANAGEMENT COMPLAINTS, INCIDENTS AND RISKS WASTE MANAGEMENT STAKEHOLDER RELATIONS COMMUNITY RELATIONS COMMUNITY CONSULTATIVE COMMITTEE COMMUNITY CONSULTATION MINE LIFE PLANNING ABORIGINAL COMMUNITY LIAISON SOCIAL ECONOMIC CONTRIBUTIONS AND ACHIEVEMENTS RECOGNITION AND SUCCESS REHABILITATION ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL PERFORMANCE PROPOSED ACTIVITIES MINE DEVELOPMENT PLANNING APPROVALS 80 Bengalla 2011 Annual Review 1

5 List of Tables Table 1: Status of Approvals, Leases and Licenses Table 2: Key performance indicators Table 3: Mobile plant and equipment utilised in Table 4: Production and waste rock summary Table 5: Washery input versus tonnes railed Table 6: Market destination and sales Table 7: Saleable production of coal types Table 8: Air quality impact assessment criteria Table 9: HVAS air quality monitoring summary Table 10: OEH short term guideline exceedance Table 11: Summary of noise monitoring results Table 12: Environmental incidents Table 13: Environmental complaints Table 14: Waste Stream Table 15: Bengalla's community consultation measures Table 16: Bengalla's local community investment Table 17: Bengalla rehabilitation summary List of Figures Figure 1: Bengalla aerial map... 7 Figure 2: Land ownership... 8 Figure 3: Bengalla coal seam section... 9 Figure 4: Bengalla mining schematic Figure 5: Bengalla senior management and environmental staff Figure 6: Bengalla monitoring network Figure 7: Coal production Figure 8: Annual water intake and usage Figure 9: Bengalla water management dams and infrastructure Figure 10: Rainfall comparisons 2009, 2010 and Figure 11: Maximum and minimum monthly temperatures Figure 12: Annual, summer and winter windroses Figure 13: Bengalla meteorological and air quality monitoring locations Figure 14: TSP HVI results Figure 15: TSP HV2 results Figure 16: TSP HV3 results Figure 17: TSP HV4 results Figure 18: TSP HV6 results Figure 19: PM 10 monitoring results Figure 20: Mean insoluble solid levels compared to mean baseline data Figure 21: Dust isopleths Figure 22: Dust isopleths December Figure 23: Dust isopleths rolling annual average December Figure 24: CO2-e produced per tonne of saleable coal Figure 25: Water monitoring locations Figure 26: Hunter River ph monitoring results Figure 27: Hunter River electrical conductivity Figure 28: Hunter River total suspended solids Figure 29: Weed spraying areas Figure 30: Blast pattern simulation for blast planning Figure 31: Bengalla blast and noise monitoring network Figure 32: Comparison of predict (SEE Modification 3) and actual 2011 visual impact from Muswellbrook Racecourse Figure 33: Coal & Allied Community Development Fund new investment Figure 34: Coal & Allied ADCC investment Figure 35: Bengalla Rehabilitation as at December Figure 36: Rehabilitation monitoring and plot design Bengalla 2011 Annual Review 2

6 Appendix 1 HSE Policy Appendix 2 Annual Return Appendix 3 Meteorological Monitoring Data Summary Appendix 4 Air Quality Monitoring Data Summary Appendix 5 NPI Report 2011 Appendix 6 Water Monitoring Data Summary Appendix 7 Blast Monitoring Data Summary Appendix 8 Noise Monitoring Data Summary Appendix 9 Summary of Environmental Incidents 2011 Appendix 10 Summary of Complaints 2011 Appendix 11 Development Consent Compliance Table 2011 List of Appendices List of Abbreviations AHIMS Aboriginal Heritage Information Management System ACARP Australian Coal Association Research Program CHPP Coal Handling and Preparation Plant CCC Community Consultative Committee CO 2-e Carbon dioxide equivalent dbl Noise decibels (linear) dba Noise decibels (A-weighted) DP&I Department of Planning and Infrastructure DTIRIS Department of Trade and Investment, Regional Infrastructure and Services EA Environmental Assessment EC Electrical Conductivity EEO Energy Efficiency Opportunities EIS Environmental Impact Statement EL Exploration Lease EMP Environmental Management Plan EMS Environmental Management System EPA Environmental Protection Authority EPL Environmental Protection License GHG Greenhouse Gas GIS Geographic Information System GJ/t Gigajoules per tonne GPS Global Positioning System g/m 2 /mth Grams per square metre per month ha Hectare HRSTS Hunter River Salinity Trading Scheme HVAS High Volume Air Sampler INP Industrial Noise Policy ISO International Standard km Kilometre KPI Key Performance Indicator LGA Local Government Area LHPA Mid Coast Livestock Health and Pest Authority ML Mining Lease Mtpa Million tonnes per annum mm millimetres mm/s millimetres per second MOP Mining Operations Plan MSC Muswellbrook Shire Council NATA National Association of Testing Authorities NGER National Greenhouse and Energy Reporting NOW NSW Office of Water OEH Office of Environment and Heritage PM 10 Particulate matter (dust) with a diameter of less than 10 microns RFS Rural Fire Service ROM Run of Mine RTA Roads and Traffic Authority SCADA Supervisory Control and Data Acquisition System SMS Short Message Service TEOMs Tapered Element Oscillating Microbalance samplers TPH Total Petroleum Hydrocarbon TSS Total Suspended Solids TWM Total Waste Management µg/cm Microsiemens per centimetre µg/m 3 Micrograms per cubic metre UHRRI Upper Hunter River Rehabilitation Initiative UHWA Upper Hunter Weeds Authority WAL Water Access License Bengalla 2011 Annual Review 3

7 1.0 INTRODUCTION 1.1 DOCUMENT PURPOSE This Annual Environmental Management Report and Annual Review details the environmental performance and operations of Bengalla during the period of 1 January to 31 December 2011 (reporting period). This report provides detail relating to the progress, results and performance of Bengalla s environmental management system and processes across a range of areas. The report has been prepared in accordance with the New South Wales Department of Industry and Investment Mineral Resources Guidelines and Format for Preparation of an Annual Environmental Management Report dated January The report has also been prepared in line with Bengalla s Development Consent DA211/93 (Modification 3) schedule five, condition four. The report also aligns to Bengalla s Development Consent DA211/93 (Modification 4) schedule five, condition three. Following the approval of Modification 4 on 7 October 2011, the new Development Consent condition applied stipulates: and actual impacts of the development, and analysis the potential cause of any significant discrepancies; and f) Describe what measures will be implemented over the next year to improve the environmental performance of the development. Given the range of audience for the report, it is intentionally written in a non-technical style with sufficient detail. Copies of this report are distributed to various external stakeholders including, but not limited to: Department of Trade and Investment, Regional Infrastructure and Services (DTIRIS) Department of Planning and Infrastructure (DP&I) (formerly the Department of Planning (DoP)) Office of Environment and Heritage (OEH) (formerly the Department of Environment, Climate Change and Water (DECCW)) Muswellbrook Shire Council (MSC) Bengalla Community Consultative Committee members. By the end of March each year (or other such timing as agreed by the Director-General), the Applicant shall review the environmental performance of the development to the satisfaction of the Director-General. This review must: a) Describe the development (including any rehabilitation) that was carried out in the past year, and b) Include a comprehensive review of the monitoring results and complaints records of the development over the past year, which includes a comparison of these against the The relevant statutory requirements, limits or performance measures/criteria; The monitoring results of previous years; and The relevant predictions in the EIS and EA; c) Identify any non-conformance over the last year, and describe what actions were (or are being) taken to ensure compliance; d) Identify any trends in the monitoring data over the life of the development; e) Identify any discrepancies between the predicted The report will also be made available on the Coal & Allied website Bengalla recognises the importance of the Upper Hunter community to its mining operation and values the relationship it has developed. In particular, the provision of open and honest feedback assists in improving Bengalla s ongoing environmental performance. This publication endeavours to inform stakeholders of Bengalla s policies, objectives, goals and environmental and social performance during the 2011 calendar year. Haul trucks and excavator at work Bengalla 2011 Annual Review 4

8 1.2 BACKGROUND Introduction the mine, allowing Bengalla to maximise its overburden storage capacity within the existing development consent boundary and mining tenements, without increasing the height of the overburden area. In 1990 the New South Wales Government called for expressions of interest from mining companies to develop the in-situ coal resource at Bengalla. Following a rigorous approvals process, Bengalla was granted development consent DA211/93 in 1995 and in 1996 was granted a mining lease over the resource. The Bengalla Joint Venture announced it had taken the decision to mine the lease area on 2 September 1996 and invested $450 million as part of the construction and development programme. To support the development and growth of the mine and assist future expansion, approval was obtained to purchase infrastructure and immediately adjoining residential properties in proximity to the Bengalla mining lease. This was an important step in establishing a buffer zone that would effectively ensure any potential offsite impacts could be appropriately managed. Mining operations at Bengalla commenced in 1998 with the first coal exported in The mine was officially opened in 1999 by the then Premier of New South Wales, the Honourable Bob Carr. A modification to the development consent was granted by the Minister for Planning in November 2006, which permitted a Run of Mine (ROM) coal production rate of up to 10.7 million tonnes per annum, the Overburden Emplacement Area to be constructed to a maximum height of Reduced Level 270 metres and other associated mining activities. A second modification to the development consent was granted in December 2007 to facilitate the extension of mining operations into the Wantana Extension area and to allow minor infrastructure modifications. A third modification to the development consent was granted in July 2008, which facilitated the construction of the remaining section of the Bengalla Link Road and to defer the relocation of the ROM coal hopper and associated facilities. On 7 October 2011 Bengalla was granted approval by the NSW Department of Planning and Infrastructure for modifications to the existing development and consent for The approved modification to the development consent permits: Accelerated mining operations within the Wantana extension area at a rate of up to 2.5 million tonnes per annum (from the 1.5 million tonnes per annum as previously approved) to align these with the existing operations within the main mining area of Bengalla The implementation of an Overburden Emplacement Strategy to resolve an overburden emplacement capacity issue at Bengalla, which is critical to ongoing operations and the resulting significant economic benefits to the town of Muswellbrook, the Hunter Region and the State of NSW from Bengalla Management and ownership Bengalla is currently managed by Coal and Allied Bengalla Pty Limited. The Bengalla Joint Venture owns exploration and mining rights within the Bengalla mining leases. The current participants and their interests in the Bengalla Joint Venture are: Coal and Allied Bengalla Investments Pty Limited (a wholly owned subsidiary of Coal & Allied Industries Limited, a Rio Tinto Group Company) 40 per cent Wesfarmers Bengalla Limited (a wholly owned subsidiary of Wesfarmers Limited) 40 per cent Taipower Bengalla Pty Limited (a wholly owned subsidiary of Taiwan Power Company) 10 per cent Mitsui Bengalla Investment Pty Limited (a wholly owned subsidiary of Mitsui Coal Holdings Pty Limited) 10 per cent Location and resource Bengalla is located in the Upper Hunter Valley of New South Wales, approximately 130 kilometres north-west of Newcastle and four kilometres west of Muswellbrook. Bengalla is bound by Wybong Road to the north, Overton Ridge to the east, the Muswellbrook-Ulan Rail Line and the Bengalla 2011 Annual Review 5

9 Hunter River Flood plain to the south and Roxburgh Road to the west. Positioned in the north-west of the Hunter Coalfield, the coal seams within the Bengalla mining leases encompass the late Permian Wittingham coal resource. The coal seams outcrop to the east of the lease area, dipping towards the west at generally less than five degrees. The mining strips for resource recovery are aligned approximately north-south, perpendicular to the dipping coal seams. The Bengalla coal resource is well suited for the production of export and domestic steaming coal with an estimated in-situ resource in the 21 year mine limit of approximately 112 million tonnes ROM coal. Dragline at Bengalla The overburden to coal stripping ratio has remained at approximately 3.4:1 bank cubic metres (bcm) of waste to each tonne of ROM coal extracted. This, however, will progressively increase as the operation proceeds to the west. Particular care was used in positioning infrastructure and access road design so as to incorporate the needs and concerns expressed by the local community. This entailed the initial mining strip being located sufficiently west of Muswellbrook, and above the one in 100 year flood limit of the Hunter River and the adjacent escarpment to allow adequate room for screening, spoil placement and service and coal transport corridors. In addition, the mine infrastructure was located to the south-west of the open cut, in a shielded position away from the Muswellbrook community. The land surrounding the mining operation is predominantly used for grazing and cultivation. Workshop Rio Tinto Coal Australia s Health, Safety and Environment Policy which Bengalla utilises (refer to Appendix 1), ensures Bengalla will continue to operate in an environmentally responsible manner with the sensitivities outlined above in mind. An aerial photograph illustrating the location of Bengalla relative to Muswellbrook is shown in Figure 1 and Figure 2 illustrates land ownership surrounding Bengalla. Bengalla 2011 Annual Review 6

10 Figure 1: Bengalla aerial map Bengalla 2011 Annual Review 7

11 Figure 2: Land ownership Bengalla 2011 Annual Review 8

12 1.2.4 Description of operations Bengalla is an open cut strip mining operation where mining advances to the west based on dragline strips approximately 60 metres in width. The multi-seam coal deposit at Bengalla (Figure 3) will include 28 strips mined during the approved mine life. Mining operations are conducted by up to 367 full time permanent employees 24 hours a day, seven days a week utilising a diverse equipment fleet. placing the waste in the spoil adjacent to the strip mine. Spoil (the waste overburden material) is typically dumped at an angle of repose of 37 degrees. The dragline then moves onto the spoil created by the first and second passes (the low wall) where it removes the waste to the Wynn seam and, in a second low wall pass, the waste to the lower most Edderton coal seam. The overburden and coal are accessed via haul road ramps which are formed as the mine proceeds westward. Washery reject is placed into cells and then capped with a minimum of five metres of inert overburden material. This external rehabilitated surface is then shaped back to a slope of 10 degrees or less. Haul trucks transport the coal from the mining face to the ROM hopper which was relocated during 2009 and is now located to the southwest of the operations next to the mine infrastructure area. The ROM hopper is connected to a conveyor which transports ROM coal back to the CHPP. Figure 3: Bengalla coal seam section The operation consists of a number of facilities and equipment necessary for the extraction, washing and distribution of coal which includes: Infrastructure area, which is composed of three coal stockpiles, a coal handling and preparation plant (CHPP), workshop and nearby office complex Rail load out facilities Mobile plant and equipment Dragline Run of Mine (ROM) hopper A mobile fleet of equipment at Bengalla, enabling the progressive pre-stripping and removal of overburden by loader, excavator and trucks in advance of the dragline. Figure 4 provides a schematic of the mining method utilised at Bengalla. Pre-strip mining (overburden removal prior to dragline excavation) is carried out by utilising up to four hydraulic excavators, a loader and a fleet of trucks which mine down to the Piercefield coal seam. The P&H 9020 electric powered dragline is the primary piece of machinery used for removal of interburden waste from above the multi-seam coal deposits at Bengalla. The waste material is removed to the Vaux seam in the first pass and to the Broonie/Bayswater seams in the second pass, each time The CHPP is located in the mine infrastructure area and houses two 850 tonne per hour washery modules. The second module was constructed in 2001 and commissioned during During 2011 a second stage washery was installed. Each module contains a dense medium cyclone and spirals used to separate mineral contaminants. After processing, the product coal is centrifuged for the purpose of moisture reduction and then stacked onto one of two 250,000 tonne clean coal stockpiles ready to be transported to domestic and export markets. The product coal is conveyed to Bengalla's rail loading facility which is located immediately to the south of the lease and is fully automated from the CHPP control room in the main administration complex. Here it is loaded onto trains and taken either direct to domestic customers or to the Port Waratah Coal Loader at Newcastle for export. The main office and adjacent workshop area is the primary planning and administration sector for Bengalla. In-house training and inductions are provided in two training rooms at the office area. The administration building is also the entrance for visitors to the mine. The workshop area is the maintenance base for mobile plant and equipment on site where major repairs on machinery are conducted. This area also houses materials and parts in the supply area of the workshop. Bengalla 2011 Annual Review 9

13 Figure 4: Bengalla mining method schematic Bengalla 2011 Annual Review 10

14 1.3 APPROVALS, LEASES AND LICENCES Status Mining operations and site activities at Bengalla are undertaken under a number of licences, approvals and leases, the current status of which are summarised in Table 1. Bengalla s Annual Return for Environment Protection Licence (6538) was submitted within the 60 day period required and is shown in Appendix 2. During 2011 Bengalla received determination of its fourth modification as described in section Modifications during the reporting period Modification 4 was described in the Environmental Assessment dated 2010 (2010 EA) by Hansen Bailey Environmental Consultants and was placed on public exhibition from 8 December 2010 to 21 January The 2010 EA proposed the following modifications for Bengalla: An extension to the current Overburden Emplacement Area (OEA) Acceleration in mining operations within the previously approved Wantana extension. Modification 4 did not seek to change Bengalla s approved duration of mining, annual production limit, maximum height of overburden areas, total overburden material handling, mining methods, mine services, operating hours, manning levels or Environmental Management System. Modification 4 was required to permit the strategic timing of mining and placement of overburden materials within the approved DA boundary. During late 2010 and early 2011 the DP&I received submissions relating to Modification 4 of Bengalla. These submissions were from both government and private stakeholders. A response to each submission was made in February 2011 by Bengalla. A decision was made by the delegate of the Minister for Planning and Infrastructure on 7 October 2011 to approve Modification 4 subject to updated conditions of the Bengalla development consent (DA 211/93). Bengalla is currently implementing Modification 4 projects, as described in the 2010 EA and is ensuring the mine site complies with new or altered conditions of the development consent. During 2011 Bengalla commenced construction of infrastructure as outlined in the Modification 1 Statement of Environmental Effects dated 2006, Modification 2 Statement of Environmental Effects dated 2007 and Modification 4 Environmental Assessment dated Infrastructure constructions or modifications commencing in 2011 included: A CHPP upgrade including modification to a two product operation with process feed average rate of 10.7 million tonnes per annum, installation commencement of a ventilation ridge cap and upgrade of the CHPP processing rate to 1700 tonnes per hour Workshop, administration and bath house building extensions Car park extensions Construction of tyre changeover bay and tyre storage area Relocation of heavy and light vehicle wash down bay and associated facilities Completion of the Wantana West transfer dam Explosives magazine relocation but not yet used, as depicted in the 2008 Mine Operations Plans Construction of the dragline shutdown pad during the first half of 2011 Construction and use of the approved temporary OEA, as described in the Modification 2 Statement of Environmental Effects Construction of the drainage line diversion south of the Southern OEA Extension. The approved Western OEA, as described in the Modification 4 EA has not yet been constructed. Planning for the construction of the Southern OEA Extension, as described in the Modification 4 EA, commenced in late 2011, however no construction commenced in Mining continued in the main pit and the Wantana Extension Area during 2011 at the approved rate of 10.7 million tonnes per annum ROM coal from the site as a whole. During December 2011 Assessment Lease (AL) 13 was submitted for Renewal. The following licences were also gained during 2011: Development Consent Modification DA211/93(M4) DP&I 7/10/ /06/2017 Groundwater monitoring bore licences were also approved for monitoring purposes at Bengalla. Bengalla 2011 Annual Review 11

15 The following licences were renewed during 2011: EPL varied on 8 August 2011 Exploration Title A438 DII 18/09/ /05/2014 Mining Operation Plan Amendment A (Modification 4) Dec 2011 Jan 2013 Acknowledgement of Notification of Dangerous Goods on Premises 35/ Work Cover New South Wales Expiry Date: 11/01/2009 (Awaiting Relevant Government Department for update) Radiation Licence 1320 DECC Expiry Date: 09/04/2013 Radiation Licence 1321 DECC Expiry Date: 09/04/2013 Radiation Licence 1322 DECC Expiry Date: 09/04/2013 Radiation Licence 7285 DECC Expiry Date: 21/01/2012 Radiation Licence 7286 DECC Expiry Date: 21/01/2012 Radiation Licence DECC Expiry Date: 21/07/2011 Licence to Sell / Possess DECC Expiry Date: 18/12/ Mining Operations Plan Table 1: Status of Approvals, Leases and Licences Approval Tenement/Licence Authority Dates Development Consent (as modified) Development Consent Explosives Facility Assessment Lease DA211/93 DA273/2006 AL13 DP&I MSC DRE Mining Lease 1397 DRE Mining Lease 1469 DRE Mining Lease 1450 DRE Mining Lease 1592 DRE Bengalla Mining Operations Plan (MOP) Exploration Lease C98/2152 DTIRIS-MR A438 DRE Bengalla EPL 6538 OEH 07/08/ /08/ /09/2006 Perpetuity 20/12/ /12/ /06/ /06/ /06/ /06/ /06/ /06/ /04/ /04/ /01/ /12/ /08/ /05/ /11/ /08/2014 (Review Date) Mining operations at Bengalla during the reporting period were carried out generally in accordance with the Mining Hunter River Water Access Licence (1,449 units) WAL (Previously 20SL NOW 01/08/ /03/2018 Operations Plan (MOP) that was approved in January A further amendment to the MOP was made in late 2011, which encompassed Modification 4 changes. This amendment was approved 12 December Groundwater Extraction Licence Hunter River Pump 20BL PE NOW NOW Expiry date: 31/10/ /05/1997 Annual The 2011 amended MOP will address the following areas: Licence to Store Workcover NSW 10/01/2013 Acceleration of mining rate in Wantana extension Overburden Emplacement Strategy Licence to Sell/Possess OEH Expiry date: 18/12/2013 Stakeholder consultation Rehabilitation Environmental commitments Soil impact mitigation European heritage mitigation MOP plan changes. Radiation Licence Radiation Licence Radiation Licence Radiation Licence 1320 OEH 1321 OEH 1322 OEH 7285 OEH Expiry date: 09/04/2013 Expiry date: 09/04/2013 Expiry date: 09/04/2013 Expiry date: 21/01/2012* Radiation Licence 7286 OEH Expiry date: 21/01/2012* *Renewal pending Bengalla 2011 Annual Review 12

16 1.4 MINE CONTACTS The Bengalla senior management and environmental team consists of 10 individuals. The manager of each department is responsible for ensuring that standards and procedures in their department are applied to the operation. Site personnel responsible for mining, rehabilitation and environment are shown in Figure 5. Contact details for the General Manager Operations and Environmental Specialist are: Andrea Sutton General Manager Operations Phone: Facsimile: Amy Harburg Environmental Specialist Phone: Facsimile: Figure 5: Bengalla senior management and environmental staff Figure : Bengalla senior management and environmental staff Bengalla 2011 Annual Review 13

17 1.5 ENVIRONMENTAL MANAGEMENT SYSTEM Bengalla operates in accordance with the Coal & Allied Environmental Management System (EMS), accredited to the International Standards Organisation (ISO) The Coal & Allied EMS is designed so Bengalla can effectively manage its environmental issues, ensure compliance with regulatory requirements, continually improve its environmental performance and satisfy expectations of all stakeholders, including the local community. The Coal & Allied EMS relies upon an Environmental Policy (Appendix 1), a series of regulatory required management plans, a monitoring programme and environmental standards and procedures. It directs planning, which in turn affects implementation and operation, management measures and a continuous review and improvement process. First certified in 1997, the EMS is regularly reviewed and audited. The EMS was last formally reviewed in December 2011 by the Bengalla senior management team for its continuing appropriateness and applicability. The EMS is supported by an extensive environmental monitoring programme. The network of environmental monitoring stations that make up the Bengalla environmental monitoring programme is displayed in Figure 6. As part of the EMS, Bengalla also has in place a robust Aspects and Impacts Register, which systematically identifies all activities related to the mine that could cause environmental harm and applies a risk ranking of these aspects. Those aspects which are subsequently identified with a critical or high level of risk are prioritised within Departmental Health, Safety and Environmental (HSE) Action Plans so they are appropriately managed. To drive the operation s performance, each department has in place a documented HSE Action Plan, which outlines projects that will aid in achieving the mine s HSE objectives and targets. These plans are reviewed and updated as part of the environmental audit process, which includes: Regular internal environmental audits Periodic external certification audits of the EMS to confirm compliance with ISO14001 (undertaken annually) Legal compliance audits undertaken by the DP&I Approved external audit or every three years (most recent audit occurred June 2010) Biannual audits completed by Rio Tinto against Rio Tinto performance and system standards and procedures DP&I audits at three yearly intervals as per DA211/93, typically undertaken at the same time as the compliance audit Other audits by statutory authorities (e.g. DTIRIS annual rehabilitation audit and feedback on the AEMR), announced or unannounced audits by the OEH and DP&I. Any identified non-conformances from internal environmental audits, compliance audits, periodical audits of the EMS against ISO14001, departmental inspections, observations and other sources are raised as corrective actions in Bengalla s Lotus Notes database. The corrective actions which are reported on this database are managed by each department appropriately. In order to maintain a strong environmental awareness, employees are encouraged to embody a culture of individual responsibility towards proactively managing environmental impacts. Environmental inductions, training and regular communication on performance is an essential part in maintaining this strong culture at Bengalla. Bengalla has established a Health, Safety and Environment (HSE) Management System. This Bengalla HSE Management System is based upon the Rio Tinto Health, Safety, Environment and Quality (HSEQ) Management System. This system has embedded environmental management into day to day operations. For example, pretask hazard analysis now includes Health, Safety and Environmental (HSE) consideration. Additionally, safety interactions are now HSE interactions Environmental improvements Health, Safety and Environment (HSE) action plans document the practical means to achieve the mine s HSE objectives and targets by the accomplishment of identified HSE improvements. At Bengalla each department has an HSE action plan that is set prior to budget planning and Bengalla 2011 Annual Review 14

18 outlines environmental improvement projects for the year. EMS auditing monitors the progress of the action plans and ensures that they are completed or are progressing in a timely manner. Projects completed in 2011 included: hectares of rehabilitation Assisting the development of the Hunter Valley Air Quality Management Plan and integrate comparisons into site reporting Noise monitoring system upgrade to monitoring equipment housing Rio Tinto Business Resilience and Recovery programme In cab fatigue monitoring system investigation Groundwater monitoring review and reporting established for biannual frequency Incorporation of new archaeological sites from recent Aboriginal archaeological surveys into the Ground Disturbance Process. Environmental improvement projects planned for 2012 include: An update of the site Water Model to include structures around Southern Overburden Emplacement Area Implementation of actions from the Pollution Reduction Programme (Air Quality) Development of Non-Mineral Waste Management Plan Review of Bengalla Environmental Management Plans Objectives and targets At the commencement of each calendar year a set of environmental objectives and targets are established to ensure continual improvement in environmental performance. Performance against these targets is communicated monthly to employees and contractors as part of the internal reporting system. The performance of Bengalla against those targets set for 2011 and the targets set for 2012 are included in Table 2. Table 2: Key performance indicators Key Performance Indicator 2009 Actual 2010 Target 2010 Actual 2011 Target 2011 Actual 2012 Target Land Rehabilitated (hectares) Land Disturbed (hectares) Fresh Water Use (litres per tonne product) Load and Haul Energy Use (Prime and Waste ROM Coal) (GJ/kt ) Dragline Electricity Use per 1000 per Bank Cubic Meters (kwh/kbcm) CHPP Energy Use per kilo tonne of ROM Coal (GJ/kt ROM Coal) Blasts at a non mine-owned residential areas > 115dBL Blasts at non mine-owned residential areas > 1.8mm/sec Percentage recycling or reuse of waste 91.2% 90% 84% 90.0% 79% 85% Average annual site audit score 89% 86% 94% 86% 93% 86% Number of significant environmental incidents (Cat 3 & 4) Number of incidents with regulatory penalties/fines Complaints <43 31 <40 Number of environmental newsletters distributed to immediate neighbours Hydrocarbon spills over 100 litres 19 <10 5 <10 15 <10 Hydrocarbon spills over 500 litres 5 <3 3 <3 2 <3 1 Water targets were set form in 2008 (Tier 1 and Tier 2 RT Targets) 2 Greenhouse targets were set from in 2008 (Tier 1 and Tier 2 RT Targets). Target review for occurred in 2011 with adjustment shown in 2012 targets above. Bengalla 2011 Annual Review 15

19 Figure 6: Bengalla monitoring network Bengalla 2011 Annual Review 16

20 2.0 OPERATIONS 2.1 RESOURCE UTILISATION AND EXPLORATION Bengalla is a multi-seam coal deposit, of which eight economically significant coal seams are mined. Within the 21 year development consent limit, approximately 28 strips are scheduled for extraction, of which 20 have been mined to date. During 2011 mining was undertaken in strips 20, 21, 22, 23 and Wantana strips 1, 2, 3 and 4. Strip 20 was completed in August, Wantana Strip 1 was completed in January and Wantana Strip 2 was completed in September Bengalla undertook a comprehensive drilling programme in 2011 that included both high resolution drilling for short term mine development and life of mine resource drilling across ML1397. Exploration drilling continued in the AL13 (adjacent to the western boundary of ML1397). The purpose of this drilling is to provide new data for prefeasibility studies of AL13 and improve the level of confidence in resource and reserve estimates within the remainder of ML1397. Drilling activities in ML1397 and AL13 included both core and non-core drill holes with the addition of geophysical logging of each bore hole. These exploration locations were designed to identify lithology types and thickness, structure and coal quality data used for computer modelling of the deposit. 2.2 LAND PREPARATION For the purposes of mining, the land is cleared in accordance with Coal & Allied s vegetation removal and topsoil stripping procedure and the requirements of Rio Tinto s land use stewardship standard. The Bengalla environmental department is consulted prior to all clearing activities. Prior to any land disturbance (clearing) being undertaken, an internal ground disturbance permit must be obtained. The permit ensures consideration is made for any potential impacts on ecology, cultural heritage, water management, erosion and sediment control and ensures all external approvals are in place. Felled trees are relocated to rehabilitation areas to provide potential habitat for native fauna. 2.3 CONSTRUCTION The majority of the Bengalla Expansion Project (BEP) Phase 1 was delivered during The broad scope of work delivered in 2011 consisted of expanding existing mining infrastructure and existing coal handling preparation plant (CHPP) and the procurement of heavy mobile equipment (HME). During the 376,784 hours worked in BEP Phase 1, three environmental incidents were reported. Details of Bengalla environmental incidents are shown in Appendix Environmental management surveillance As part of the BEP Health, Safety and Environmental Management Plan, the BEP performed monthly audits on each contractor s environmental management, with the aim of identifying improvements to environmental and waste management practices. Following communication of audit report the BEP performed regular reviews monitoring completion of corrective actions. On 30 November 2011 an environmental management inspection was performed by Bengalla on the BEP Phase 1. The objective of the inspection was to verify the level of compliance to Bengalla environmental requirements and identify corrective actions where necessary. Bengalla 2011 Annual Review 17

21 2.3.3 Environmental improvements At the completion of BEP Phase 1 new assets will be installed with the objective of improving Bengalla s environmental management performance. A summary of these assets are as follows: Installation of solar panels to power hot water system Installation of solar panels to provide electrical power source Installation of rain water tanks to capture and use rain water New hydrocarbon unit to improve removal of hydrocarbons Noise reduction of new haul mining equipment Reduced percentage of rejects from the plant. Bengalla 2011 Annual Review 18

22 2.4 MINING General mining description The Bengalla mobile equipment fleet consists of wellmaintained modern mining equipment, which incorporates some of the latest mining technology. The mining equipment used at Bengalla in 2011 is listed in Table 3. Bengalla s equipment fleet consists of one dragline, one loader and four hydraulic excavators. There were 17 haul trucks (used on an intermittent basis) during the year. In 2009 Bengalla replaced part of the existing R280 truck fleet and D11R dozer fleet. Three Euclid R280 rear haul trucks were replaced with two Hitachi haul trucks. Three Caterpillar D11R dozers were replaced with four Caterpillar D11T Dozers. In 2011 two new Komatsu 830Es replaced two existing Hitachi haul trucks. One Hitachi excavator was also added to the fleet. Table 3: Mobile plant and equipment utilised in 2011 Equipment Type Number P & H 9020 Dragline 1 Hitachi EX3500 BE Hydraulic Excavator 1 Hitachi EX3600 BE Hydraulic Excavator 1 Hitachi EX5500 Hydraulic Excavator 1 Le Tourneau L1800 Loader 1 Reedrill SK-F 50I Drill 3 Caterpillar 854G Wheel Dozer 1 Caterpillar D11R Dozer *2 Caterpillar D11T Dozer 6 Caterpillar D10R Dozer 1 Caterpillar 988F-II Cable Reeler 1 Caterpillar 16H Grader 2 Euclid R190 Rear Haul Truck 4 Euclid R280 Rear Haul Truck 2 Hitachi Haul Truck 9 continues to meet consented noise limit criteria at private residences. To minimise noise generation, the fitting and maintenance of specifically designed noise attenuation equipment has ensured quieter operating equipment, most notably the P&H model 9020 dragline and haul truck fleet Mining performance Placement of interburden and overburden continued to lift the Waste Rock Landform (WRL) to the current approved height of RL270. Other WRL areas continued to be utilised, including the DITIRIS approved temporary Wybong dump and the progression of the existing WRL to the west. Infilling of the old ROM hopper area on the eastern side of WRL was completed in A total area of 37.1 hectares was rehabilitated following the infill earth works being completed. Mining commenced in the Wantana area late in Bengalla continued to progress development of the Wantana area in 2010 including the construction of water management infrastructure and visual bunds (as approved in a development consent modification received in 2007 (Modification 2)). Bengalla produced 5.37 million tonnes of saleable coal and moved 23.7 million bank cubic metres (bcm) of prime waste during No significant changes were made to the method of mining used by Bengalla during 2011 and there were no significant deviations from the mining operations plan. The ratio of bank cubic metres of earth moved to the number of tonnes of coal uncovered at the mine in 2010 (stripping ratio) was 4.4:1; slightly less than the previous year. Table 4 shows that prime waste rock (pre-strip, overburden and interburden material) handled during 2011 amounted to just under 23.7 million bcm. During the reporting period, the total amount of rehandled overburden material was 6.8 million bcm. Euclid R90 Water Cart 3 Komatsu 830E Haul Truck 8 Volvo A25 Service Truck 1 Hitachi A45 Service Truck 1 *with hire equipment All Bengalla owned mining equipment has been modified to meet stringent noise requirements to ensure Bengalla Excavator Bengalla 2011 Annual Review 19

23 Table 4: Production and waste rock summary 2011 Description As at end As at end As at end At at end Topsoil stripped (ha) Topsoil used / spread (ha) Waste Material 21,284,291 24,491,440 23,419,314 23,691,906 (Prime bcm) Coal (ROM Tonnes) 6,824,398 6,954,018 6,686,126 7,004,453 Processing Waste/Reject 20% moisture 1,459,855 1,382,655 1,281,767 1,284,409 (Tonnes) Processing plant residues/reject management Following the removal of overburden and interburden layers, the exposed coal seams are mined and transported to the ROM hopper where it is crushed to less than 250 millimetres. The crushed coal is then transported along the new 300 metre conveyor to the crushing station. Where practical all conveyors are enclosed to reduce both noise and dust emissions. The coal is crushed to a top size of 50 millimetres and can be bypassed to product, direct fed into the CHPP or transported and stockpiled on the raw coal stockpile. All stockpiles utilise dust suppression and process strategies to minimise dust emissions. 2.5 COAL PROCESSING Method Approximately 7.0 million tonnes of ROM coal was mined and processed at Bengalla in This is slightly higher than 2010 with an increase of 0.3 million tonnes of ROM coal in Production throughout the year was consistent, with only minor interruptions due to a blast misfire and impacts due to blasting product being unavailable. The monthly breakdown of saleable coal produced and total prime tonnages of material moved during 2011 are shown below in Figure 7. Haul truck at ROM The CHPP utilises dense medium cyclones (-50 millimetres Saleable Coal (t) 600, , , , , ,000 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Waste Moved (bcm) +1.4 millimetres) and single stage spirals (-1.4 millimetres millimetres) to process coal to meet customers product specifications. This allows maximum resource recovery of the ROM coal. Unlike conventional CHPP processing plants, Bengalla has no tailings dam and ultrafine material less than millimetres is thickened, dewatered on belt press filters and Saleable coal (t) Total waste materials moved (bcm) then combined with other reject streams for final disposal back into the spoil. The handling of reject material is Figure 7: Coal production 2011 undertaken in accordance with mining operations plan commitments and Coal & Allied s coarse rejects and tailings disposal procedure. The CHPP processes were not modified during the reporting period. The facilities were expanded during Bengalla 2011 Annual Review 20

24 In 2011 the CHPP yielded on average 74.6 per cent product coal from that processed. This was a slight decrease on the previous two reporting periods and 2010 (76.1 per cent) and the 2009 reporting period (75.9 per cent). As a result the total amount of reject generated from the processing of Bengalla coal increased slightly in 2011 to 1,284,409 compared to 2010 figures of 1,281,767 tonnes. The reject material is combined onto a single reject belt and stored in a reject bin prior to being hauled back to the pit area where it is dried in cells before being buried within the spoil area and capped with a minimum of five metres of inert material Coal stockpiles Bengalla s CHPP has three coal stockpiles in the handling and preparation process. The stockpiles are located to the west of the plant and form part of the main administration area. The ROM coal stockpile has a capacity of 200,000 tonnes and the two production stockpiles hold a combined volume of 500,000 tonnes. The plant and stockpiles are surrounded by bunds to reduce the CHPP visual impact on surrounding areas. Dust from stockpile areas is managed by an automatic sequential spray system that is activated when the wind speed exceeds 5.6 metres per second. The spiral and dense medium products are combined on a single product belt to the product coal stockpile via stacking machines. Product coal is then conveyed to the train load out facility, which is a fully automated system averaging approximately 4,000 tonnes per hour annually into trains. Once loaded, the coal is then transported by rail to the Port of Newcastle or to local power stations. A number of initiatives and controls have been installed at the CHPP during Bengalla s history to ensure effective and safe handling of saleable product and reject material. There is continued investigation into the potential for the use of drying cells in combination with the use of belt press filters to reduce the moisture content of rejects to improve reject handling and spoil stability Train movements During 2011 Bengalla loaded 647 export trains (7,200 tonne and 8,500 tonne capacity). On average this equates to approximately two trains per day. Washery input and total tonnage of railed coal from Bengalla for the reporting period is outlined in Table 5. Table 5: Washery input versus tonnes railed 2011 Input Tonnes Washery Input 5,368,115 Coal Railed 5,409,687 Train load out facility Bengalla 2011 Annual Review 21

25 2.6 COAL SALES Bengalla produces a thermal coal for the export market with an ash content of between per cent air dried basis. The commercial sale and destination of this product is dependent on the fluctuating price of coal and its associated global demand. During the reporting period Bengalla produced 5.37 million tonnes of saleable coal, which is a two per cent decrease compared to 2010 (5.48 million tonnes). All coal produced (100 per cent) was exported overseas into the Asian Pacific market. Since production first commenced Bengalla has sold approximately 78 million tonnes of coal. Table 6 provides a summary of the market destination of saleable coal and the breakdown of percentage of sales. Saleable Coal production during the 2011 reporting period is outlined below in Table 7. Table 6: Market destination and sales 2011 Market Destination Sale (%) Japan 36 Korea 22 Export (5.5Mt) Taiwan 19 China 9 Other 14 Table 7: Saleable production of coal types Coal Type Saleable Saleable Saleable Saleable Saleable Production Production Production Production Production 2007 (Tonnes) 2008 (Tonnes) 2009 (Tonnes) 2010 (Tonnes) 2011 (Tonnes) Export Washed Coal 3,521,999 4,056,284 4,062,012 4,080,642 3,779,565 Export Bypass Coal 728, , ,539 1,231,914 1,588,550 Domestic Bypass 904, , , ,749 0 Coal Total 5,155,163 5,423,346 5,381,954 5,477,305 5,368,115 Bengalla 2011 Annual Review 22

26 2.7 WATER MANAGEMENT Introduction Development of the site in 1998 included the construction of surface water diversion drains, outlets and other waterways. The design of these features was carried out to convey peak run-off discharge rates for a one in 20 year average recurrence interval (ARI) storm event. The design of dams, pipelines and associated drainage structures allows for catchment of water from undisturbed areas to be diverted, where possible, away from disturbed and sediment laden mine water. Controls are implemented to ensure stormwater and groundwater from mining areas is diverted to either mine water dams or the pit void to prevent discharge of this water off site. Bengalla s water management infrastructure layout is shown in Figure 8. Bengalla s water management plan outlines strategies for the management of surface and groundwater. This plan was updated and approved by the OEH and DP&I in Further details for water management are documented in Bengalla s Environmental Management System (specifically Rio Tinto Coal Australia s standards; E10 water use and quality control, and Coal & Allied s procedures 7.1 water management and 7.2 water discharge). During 2011, following the determination of Bengalla s Modification 4, consent conditions have identified an update of Bengalla s Water Management Plan is required. During 2011 work was undertaken to update the plan for its completion in An improved understanding of the site hydrology and water balance has been gained through the development of the operation s Real Time Environmental Management Systems (RTEMS). The RTEMS is a framework used to monitor Bengalla s fully automated water management system. It provides employees with up to date information on water movement and usage across the site. The RTEMS also has a range of alarms and safeguards in place to detect any potential discharge, leaks or water related incidents. Routine inspections of water and sedimentation dams are also conducted as an added safeguard to this system. Modification. Bengalla s Water Management Plan was updated in The plan was also approved by the DECCW in t h e 2010 reporting period. As part of the Management Plan update, a comprehensive groundwater investigation was undertaken. This resulted in all groundwater monitoring data and modelled groundwater flows being reviewed. The aims of the investigation included the verification of previous groundwater models to ensure the groundwater monitoring network is adequate for assessing the impact of mining on the alluvial aquifer. During 2011 no groundwater studies or investigations were completed. A review of groundwater monitoring data was completed in the 2011 reporting period by independent groundwater specialist Water supply and use Hunter River intake during 2011 was 488 megalitres in contrast to 497 megalitres in Bengalla s water allocation permits a maximum of 1,000 megalitres to be withdrawn from the Hunter River each year (based on financial year). Figure 8 provides a comparison between water usage and Hunter River intake for the period 2007 to The volume of water extracted from the Hunter River during the reporting period was 1.8 per cent lower than in The decreased water usage is a result of increased rainfall in 2011 compared to Rainfall totals in 2011 were greater than 2010 and above the long term average rainfall. The majority of water sources are metered and recorded through the RTEMS; however some assumptions are required in determining the rainfall runoff, CHPP recycling and mine dewatering data. Water Usage ML Hunter River Intake Haul Road Dust Suppression CHPP & ROM Hopper Rainfall Bengalla completed a number of surface water and groundwater studies from 2006 to 2010 to assess potential impacts from the 2006 modification and Wantana Figure 8: Annual water intake and usage Bengalla 2011 Annual Review 23

27 2.7.3 Treated water A pivotal feature of recycling water for use on site is the incorporation of Bengalla s waste water treatment plant into the water management system. Waste water is treated onsite using a custom-built treatment system. All treated effluent is directed into the processing water system and then utilised in the CHPP. Potable water is transported to site by a local water carrier from the Muswellbrook Shire water treatment plant. This water is used for drinking purposes within the main office and adjacent workshop areas as well as bathhouse and fire hydrants Mine water management Mine water is potentially saline water that has had interaction with coal, spoils, mining area or mixing with intercepted groundwater. Regional groundwater pressure surrounding the mine stimulates groundwater seepage into the mine pit. The occurrence of groundwater during mining operations is dewatered from the pit to the Endwall dam via an in-pit pump where it is then utilised on site, primarily for dust management purposes. Groundwater inflows did not significantly impact or hinder mining activities during During 2011 approximately 51 megalitres were dewatered from the pit area (this water is a combination of reject water seepage, groundwater seepage and rainwater). Looking towards staged discharge dam Bengalla 2011 Annual Review 24

28 Figure 9: Bengalla water management dams and infrastructure Bengalla 2011 Annual Review 25

29 3.0 ENVIRONMENTAL MANAGEMENT AND PERFORMANCE 3.1 METEOROLOGICAL Rainfall Introduction A real time meteorological station is a central component to Bengalla s EMS. The meteorological station, located east of the mine along Logues Lane, utilises radio telemetry to relay data through to the Real Time Environmental Management System (RTEMS). The range of monitored parameters includes wind speed, wind direction and standard deviation of wind direction, air temperature and relative humidity, solar radiation, rainfall and saturation vapour pressure. The logger is programmed to interrogate the sensors every two seconds and store data averaged over intervals of 10 and 60 minutes. Daily maximum wind speed, air temperature, relative humidity and solar radiation are logged for each day with their time of occurrence. Daily minima are also logged. In combination with the meteorological station, Bengalla has a permanent 90 metre temperature inversion tower located on the floodplain to the south of the operation. Equipped with temperature and wind sensors at five different heights, the tower assists in determining the presence of temperature inversion strengths within the lower atmosphere. The connection of the meteorological station and the inversion tower to the RTEMS provides staff with the ability to regularly review prevailing weather conditions and modify the operation where necessary in order to best suit the prevailing conditions. The meteorological data also plays an important role in providing guidance as to the most appropriate times for undertaking blasting events, with the RTEMS displaying suitability to blast based on a flow sheet incorporating inversion strength, wind speed and direction. The calibration, compilation and analysis of the data, along with routine maintenance of the weather station, are carried out for Bengalla by an independent meteorological consultant, P. Zib & Associates Pty Limited. A summary of the meteorological data collected during 2011 is provided in Appendix 3. Bengalla received 777 millimetres of rain over 138 rain days during the 2011 reporting period. The amount of rainfall recorded was the highest since 2007, when 805 millimetres was recorded (dominated by a fall of 244 millimetres in June 2007). Total rainfall for 2011 was 49 millimetres greater than 2010 and above the long term annual average of 619 millimetres. The total number of rain days was the highest since data was collected in Significant rain events, with rainfall greater than 30 millimetres, were recorded on April 30 (31 millimetres), June 14/15 (37 millimetres/54 millimetres respectively) and November 23/25 (43 millimetres/31 millimetres respectively). The breakdown of monthly rainfall data for 2009, 2010, 2011 and the long term average is shown in Figure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rainfall (mm) Long-term Rainfall Average Figure 10: Rainfall comparisons 2009, 2010 and Temperature A maximum temperature recorded during 2011, of 44.0 degrees Celsius, occurred on 27 January. January was also the hottest month overall with a mean maximum of 32.9 degrees Celsius. February had the second highest temperature with a mean maximum of 32.7 degrees Celsius. The maximum temperatures observed for 2011 were higher than observed during the 2010 months for March, April and May and August. The maximum temperatures in 2011 were lower than 2010 for the months of June, July and August. Bengalla 2011 Annual Review 26

30 The lowest temperature recorded occurred on 16 May with a recording of -3.5 degrees Celsius. Temperatures below zero were also recorded in June, July and August. July was the coldest month with mean monthly minimum of 2.8 degrees Celsius. May and August both recorded a mean minimum of 4.2 degrees Celsius. Minimum temperatures were generally comparable to Temperature comparisons for 2010 and 2011 reporting periods are shown in Figure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Temp Max 2010 Temp Min 2010 Temp Min 2011 Temp Max 2011 Figure 11: Maximum and minimum monthly temperatures Wind speed and direction Analysis of the wind direction data for 2011 revealed that seasonal direction trends were consistent with previous years. Winds continued to prevail from the south east during the summer season and from the north-west in winter. Windroses illustrating annual and seasonal wind directions are shown in Figure 12. Wind speed analysis of mean wind strengths showed February and September as the windiest months recorded throughout summer. The highest wind speed recorded in September was a wind speed of 27.2 metres per second (m/s). This was followed by August, in which a wind speed of 25.2 m/s was recorded. The lowest wind speed recorded was during May, which had a mean maximum wind speed of 7.9 m/s. Atmospheric stability is also recorded based on measurements of incoming solar radiation, wind speed and the horizontal fluctuations in wind direction. The results indicated a shift towards unstable atmospheric conditions during the daytime and stable conditions at night. Figure 12: Annual, summer and winter windroses 2011 Bengalla 2011 Annual Review 27

31 3.2 AIR QUALITY Environmental management Dust monitoring at Bengalla consists of a range of technology to ensure accurate and reliable monitoring of air quality impacts on the surrounding environment. A combination of data collected and the use of real time dust monitors ensure Bengalla proactively manages dust and effectively applies operational controls to reduce or minimise dust. The locations of the 42 monitors are shown in Figure 13 and are comprised of: Five High Volume Air Samplers (HVAS) measuring Total Suspended Particulates (TSP) Four HVAS PM 10 air samplers Twenty nine depositional dust gauges Four real time air monitors linked to the RTEMS. The criteria for air quality assessment at non-mine owned residences are detailed in Table 8. Real Time Dust Monitoring (E-Bam) Bengalla s network of four real time dust monitors is linked to the RTEMS. The site utilises E-Bam model monitors for the real time monitoring. The E-Bam monitors are considered to be one of the best real time dust monitors currently available. Real time data from the monitors located strategically upwind and downwind of the mine are combined with wind speed and direction data from the meteorological station to ascertain environmental impacts that may be caused by the operation. This allows air quality to be regularly assessed and operations to be modified or ceased if impacts are deemed significant. These monitors perform a key role in enabling the activities of the mine to be continually monitored and to minimise offsite impacts on the surrounding environment. The monitors have been integrated into the site s dispatch system to enable constant monitoring of dust impacts. Dust alarms along with wind speed alarms alert the pit Open Cut Examiner (OCE) and environmental staff about operational dust impacts. Site dust management programmes require the OCE to review the operation and equipment locations in respect to the dust generated by the operation. Real time environmental monitoring system Total Suspended Particulate Monitoring of Total Suspended Particulate (TSP) was undertaken every six days for a continuous 24 hour period in accordance with: The New South Wales EPA approved Methods & Guidance for the Modelling & Assessment of Air Pollutants in New South Wales (2005) The NSW OEH s Approved Method for Sampling and Analysis of Air Pollutants in New South Wales (DECC 2007), referencing AS/NZS :2003 Methods for Sampling and Analysis of Ambient Air Method 9.3: Determination of suspended particulate matter Total suspended particulate matter (TSP) High volume sampler gravimetric method (2003) AS/NZS :2003 Methods for Sampling and Analysis of Ambient Air Method 9.6: Determination of suspended particulate matter PM 10 high volume sampler with size selective inlet Gravimetric method (2003). The operation, monitoring, analysis and reporting of TSP and PM 10 were undertaken by an independent contractor, AECOM Australia Pty Limited (AECOM). In 2011 Bengalla operated five HVAS TSP monitors. In total, 305 TSP measurements were collected across the five monitoring locations in 2011 with a data collection rate of 100 per cent. Appendix 5 presents full results for HVAS dust monitoring data. PM 10 The monitoring of PM 10 was undertaken during 2011 with four PM 10 air samplers, which recorded 243 measurements. The recorded results and annual rolling averages for PM 10 are presented graphically in Figure 18 and further discussed below. Bengalla 2011 Annual Review 28

32 Depositional Dust Depositional dust is monitored monthly in accordance with AS/NZS (2003). Samples are collected for analysis every 30 ± two days from 29 locations surrounding the mine site. The location of these gauges is shown in Figure 12. Bengalla also utilises results from surrounding mines sampling to contribute to local dust isopleths. The sampling, analysis and reporting of depositional dust levels is contracted to AECOM. The monitoring network comprised 29 dust deposition gauges (DDG) positioned both within and external to the Bengalla facility. The DDG samples were analysed each month for insoluble solids and ash residue. Dust deposition is assessed against the guidelines defined by the OEH similarly to 2010, with higher rainfall patterns and milder summer temperatures. The maximum wind speeds recorded through the summer period of 2011 were higher than those recorded during the summer of Conditions proved to be favourable for maintaining good air quality conditions throughout the 2011 reporting period. In 2011 an above average rainfall occurred (777 millimetres), which was higher than recorded for 2010 (722 millimetres). The increased rainfall has contributed to maintaining air quality below criteria. The OEH impact assessment criterion of 90µg/m 3, as an annual rolling average, was not exceeded at any of the five TSP monitors operated by Bengalla. All the TSP results displayed a similar trend in monitoring results for PM 10, showing a minor increase from 2010 levels across all monitoring locations. During 2011 the PM 10 annual rolling average was below consent criteria. The PM 10 air quality criteria were exceeded once in A general increase of PM 10 was observed compared with 2010 levels for the 2011 period due to an increase in dust levels recorded during January, April and November. Depositional dust gauge Environmental performance High Volume Air Sampling In 2011 the levels of recorded dust and performance against the EPA short term (24 hour) guideline of 50µg/m 3 have continued to improve. One exceedance greater than 50µg/m 3 was recorded during one sampling period in 2011 (shown in Table 10). In comparison to the number of exceedances recorded in 2009 and 2010, the number of exceedances during 2011 has reduced. In 2009, 21 exceedances were reported. In 2010, three exceedances occurred. During 2011 two exceedances were reported. Air quality monitoring Table 8: Air quality impact assessment criteria Pollutant Criterion Average Period Source Total Suspended Particulate matter (TSP) 90µg/m 3 Annual average DA211/93 (Mod 3)/DA211/93 (Mod 4) Particulate matter <10µm (PM 10) 30µg/m 3 Annual average DA211/93 (Mod 3) /DA211/93 (Mod 4) 50µg/m 3 (24 hour average) DA211/93 (Mod 3) /DA211/93 (Mod 4) 4g/m 2 /month Maximum total deposited dust level DA211/93 (Mod 3) /DA211/93 (Mod 4) Dust Deposition Annual Average Impact Assessment 2g/m The meteorological conditions have continued throughout 2 Maximum increase in deposited dust /month DA211/93 (Mod 3) /DA211/93 (Mod 4) level Bengalla 2011 Annual Review 29

33 Figure 13: Bengalla meteorological and air quality monitoring locations Bengalla 2011 Annual Review 30

34 Table 9: HVAS air quality monitoring summary Ref Location Readings Required HV1 (TSP) HV2 (TSP) HV3 (TSP) HV4 (TSP) HV6 (TSP) PM 10-1 Readings Captured Annual Maximum Reading (µg/m 3 ) Annual Minimum Reading (µg/m 3 ) Average Annual Reading (µg/m 3 ) Long Term Impact Assessment Criteria (µg/m 3 ) Wybong Road Racecourse Road Logues Lane St James School Wybong Road Ex Smiths Racecourse 61 60* Road PM 10-2 St James School PM 10-3 Constable PM 10-4 Ex Smiths *One sample declared not valid and removed from dataset This is discussed on page 35 (PM 10 summary section). Table 10: OEH short term guideline exceedance Ref Location Date Reading (µg/m 3 ) Wind Speed (m/sec) PM 10-4 Ex Smiths 25/02/ Examples of air quality controls Bengalla 2011 Annual Review 31

35 TSP HV1 Wybong Road 220 HV1 - Wybong Road Total Suspended Particulates January 2011 to December 2011 TSP HV1 at Wybong Road recorded a monthly average of 41.9µg/m 3 and an annual rolling average of 42.8µg/m 3. During the reporting period elevated results were recorded on 2 April (90.3µg/m 3 ) and 8 May (102.0µg/m 3 ). TSP (µg/m 3 ) The recorded elevated readings increased the monthly average to 53.9µg/m 3 at the end of April and 46.9µg/m 3 at the end of May. Monthly results declined and stabilised at low levels until a reading of 83.6µg/m 3 on 4 November. No readings above 90µg/m 3 were recorded following the May result (Figure 14) HV1 HV1 Monthly Running Average HV1 Annual Rolling Average TSP Annual Assessment Criteria Figure 14: TSP HVI results 2011 Elevated levels of TSP were recorded on 2 April and 8 May were also recorded at HV2 located on Racecourse Road. During the April, east south-easterly winds with wind speeds up to 12.8 metres per second (m/s) per second were recorded at the meteorological station. During May, southeasterlies with wind speeds up to 8.8m/s were recorded at the meteorological station. Based on the meteorological data and the location of the HV1 monitor (north-east of the mine), it is likely dust generated by Bengalla contributed to the elevated dust levels. TSP HV2 Racecourse Road TSP HV2 at Racecourse Road is located to the south-east of the mine and is surrounded by hobby farms and horse training stables and complexes. In general, TSP trends at HV2 were consistent with the other units and displayed a minimal increase in results in comparison to The annual rolling average remained below the EPA impact assessment criteria. During the reporting period the annual rolling average of TSP at HV2 increased to 54.2µg/m 3. In comparison to 2010, this is an increase of 4µg/m 3. The annual rolling average results for HV1 remained below regulatory requirements throughout The annual rolling average showed a minimal increase in comparison to The increase was observed across all TSP units. TSP levels at this monitor have increased compared to the EIS baseline data. The EIS reported TSP annual average prior to the commencement of Bengalla s operations to be 35µg/m 3. Based on the current 2011 rolling average of 42.8µg/m 3, this is an increase of 7.8µg/m 3. Dust levels to the north of Bengalla were predicted by the EIS to increase, although remain below regulatory requirements, which has occurred. In comparison to the 2010 annual rolling average (41.9µg/m 3 ) at the TSP HV1 monitor, an increase of 0.9µg/m 3 was observed in Elevated results (more than 90µg/m 3 ) were recorded at HV2 on 2 January (101.0µg/m 3 ), 25 February (99.2µg/m 3 ) and 2 April (95.2µg/m 3 ). The meteorological conditions for 2 January, 25 February and 2 April, were southerly winds (13.2m/s), south-easterly (8.4m/s) and south-easterly (12.8m/s) respectively. The HV2 monitor is located to the south-east of Bengalla. Based on the meteorological conditions recorded it is unlikely Bengalla was the source of the elevated results. Elevated results recorded at HV2 on 2 January and 25 February was reflected by elevated results recorded at other monitoring locations. The elevated levels occurred at HV4 on 2 January (90.6µg/m 3 ) and at HV6 on 25 February and 2 April (137.0µg/m 3 and 96.0µg/m 3 respectively). On 2 January HV1, HV3 and HV6 also recorded elevated results (84.5µg/m 3, 72.7µg/m 3 and 81.1µg/m 3 respectively). Based on these results, localised air quality was poor and the elevated levels may have been influenced by factors other than Bengalla. Bengalla 2011 Annual Review 32

36 On 25 February the result at HV1 was 73.6µg/m 3, HV3 49.1µg/m 3 and HV4 67.2µg/m 3. Based on these results, localised sources generated from a number of locations may explain the high levels recorded at HV2. TSP HV4 St James School The annual rolling average results at HV4 have increased from 38.8µg/m 3 in 2010 to 46.7µg/m 3 in 2011 (Figure 17). These levels were consistent with other TSP units. TSP levels at this monitor have increased compared to the EIS baseline data. The EIS reported the TSP Annual Average to be 40µg/m 3 in 1996, which has since increased to 54.2µg/m 3 in 2011 (Figure 15). 220 HV2 - Racecourse (Barnett Residence) Total Suspended Particulates January 2011 to December 2011 Two elevated levels of TSP (more than 90µg/m 3 ) were recorded at HV4 located at St James Primary School on 2 January (90.6µg/m 3 ) and 26 January (96.1µg/m 3 ). During this time elevated levels were also recoded at HV2 on 2 January (101.0µg/m 3 ) and HV6 had elevated levels on 26 January (95.7µg/m 3 ). TSP (µg/m 3 ) During 2 January wind conditions were southerly winds with speeds up to 13.2m/s. During 26 January wind conditions were south-easterly with speeds up to 6.0m/s. The meteorological conditions at the time of the elevated result at HV4 indicate it was unlikely a result of Bengalla generated dust. HV2 HV2 Monthly Running Average HV2 Annual Rolling Average TSP Annual Assessment Criteria Figure 15: TSP HV2 results 2011 TSP HV3 Logues Lane TSP results obtained for HV3 at Logues Lane showed no elevated levels during The trends shown by the monitoring unit were consistent with the other units and displayed an overall increase in levels. HV3 results have increased from 34.5µg/m 3 in 2010 to 38.6µg/m 3 in The EIS predicted residents to the east of Bengalla s mine lease would be affected by increases in dust levels, significantly to the immediate east along Overton Road and less significantly further east in the town of Muswellbrook. It was predicted whilst dust would increase in Muswellbrook the levels would remain below 90µg/m HV4 - St James School Total Suspended Particulates January 2011 to December 2011 No elevated results were recorded at HV3 during TSP (µg/m 3 ) During 2011, the TSP annual average increased to 38.6µg/m 3 from the original EIS reported values of 35µg/m 3. The 2011 annual mean was below the regulatory requirement (Figure 16) HV4 HV4 Monthly Running Average HV4 Annual Rolling Average TSP Annual Assessment Criteria HV3 - Logues Lane (Thornbro Dairy) Total Suspended Particulates January 2011 to December 2011 Figure 17: TSP HV4 results TSP (µg/m 3 ) TSP HV6 Wybong Rd ex-smiths TSP HV6 was installed in September 2007 to improve the air quality monitoring network at Bengalla as committed to in Bengalla s Environmental Monitoring Programme. This site is located to the north west of Bengalla and has recorded elevated results at times of prevailing south-easterly winds. HV3 HV3 Monthly Running Average HV3 Annual Rolling Average TSP Annual Assessment Criteria Figure 16: TSP HV3 results 2011 As HV6 was commissioned in September 2007, an annual rolling average was not available until September 2008 Bengalla 2011 Annual Review 33

37 which was 53.6µg/m 3. It has been consistently below the EPA impact assessment criteria since sufficient data has been available to determine the annual average. wind speeds up to 11.2m/s in a south south-westerly direction. Due to the prevailing wind conditions it is unlikely Bengalla contributed to the elevated result. During the 2011 reporting period the annual rolling average increased to 55.6µg/m 3. In comparison to the 2010 level (47.0µg/m 3 ), an increase of 7.0µg/m 3 was observed in The TSP levels at the HV6 monitor have increased compared to the EIS baseline data. The EIS reported the TSP annual average to be 40µg/m 3. In comparison to the EIS reported annual average, an increase of 15.6µg/m 3 has been observed. This increase in dust levels was predicted by the EIS and is still below regulatory requirements. The results obtained at HV6 showed nine samples above 90µg/m 3. The elevated results (more than 90µg/m 3 ) were observed at HV6; on 20 January (91.6µg/m 3 ), 26 January (95.7µg/m 3 ), 25 February (137µg/m 3 ), 15 March (137µg/m 3 ), 27 March (93.1µg/m 3 ), 2 April (96.0µg/m 3 ), 17 October (92.1µg/m 3 ), 16 December (123µg/m 3 ) and 28 December (122µg/m 3 ). On three occasions elevated results were also recorded at the other monitors on 26 January, 25 February and 2 April. An elevated result on the 17 October of 92.1µg/m 3 occurred with wind speeds up to 10.4m/s in a south-easterly direction. With prevailing south-easterly winds directed towards the monitoring unit, it is likely dust from Bengalla contributed to the elevated result. On the 16 December an elevated result of 123µg/m 3 occurred with wind speeds up to 9.2m/s in a south-easterly direction. Due to the prevailing wind conditions, it is likely dust generated by Bengalla contributed to this elevated result. On 28 December an elevated result 122.0µg/m 3 occurred with wind speeds up to 10.4m/s. Due to the south-easterly wind direction which prevailed on the day, it is likely dust from Bengalla contributed to the elevated result (Figure 18) HV6 - Wybong Rd (Ex Smiths) Total Suspended Particulates January 2011 to December 2011 On 26 January the wind conditions were south-easterly with wind speeds up to 6.0m/s. Due to the prevailing wind conditions it is considered likely dust generated by Bengalla contributed to the elevated result of 95.7µg/m 3. TSP (µg/m 3 ) During 25 February wind conditions were east south-easterly with speeds up to 8.4m/s. During 2 April wind conditions were east south-easterly with speeds up to12.8m/s. HV6 HV6 Monthly Running Average HV6 Annual Rolling Average TSP Annual Assessment Criteria Figure 18: TSP HV6 results 2011 An elevated result on 20 January (91.6 µg/m 3 ) occurred with wind speeds up to 12.0m/s in a south-easterly wind direction. Due to the prevailing wind conditions it is considered likely dust generated by Bengalla contributed to this elevated result. An elevated result on 15 March of 137.0µg/m 3 occurred with wind speeds up to 7.2m/s in an east south-easterly direction. Due to the prevailing wind conditions it is considered likely that dust generated by Bengalla contributed to this elevated result. An elevated result on 27 March of 93.1µg/m 3 occurred with PM 10 Monitoring data for PM 10 is obtained from four locations (Figure 19). Three of the sites are operated by Bengalla and one location is operated by a neighbouring mine. To enhance the Bengalla air quality monitoring network, acquisition of neighbouring mine PM 10 data was arranged during the latter part of Identified as PM 10 3, the site is located on Roxburgh Road to the south- west of Bengalla. The annual rolling average at all PM 10 monitoring locations has displayed a minor increase during 2011 in comparison with The increase has occurred predominately during summer (January and November). All four monitoring Bengalla 2011 Annual Review 34

38 locations are below the long term EPA impact assessment criteria of 30µg/m 3. PM µg/m 3 PM µg/m 3 PM µg/m 3 PM µg/m 3 The short term monitoring criteria was exceeded at one monitoring location during one monitoring event in A result of 50.6µg/m 3 was received at the PM 10 4 monitoring location on 25 February. During the sampling period on 25 February at PM 10 4, east south-easterly winds with speeds up to 8.4m/s were recorded at the meteorological station. Due to the prevailing wind conditions it is considered Bengalla was the source of the elevated result. Figure 19: PM 10 monitoring results PM10 (µg/m 3 ) PM10-1 Racecourse Road (Barnett Residence) January 2011 to December 2011 PM10-1 PM10-1 Annual Rolling Average 24 hour Assessment Criteria Annual Assessment Criteria PM10-2 St James School January 2011 to December 2011 On July 7 an elevated result of 55.0µg/m 3 was recorded at PM Following the elevated result, an independent investigation was completed. The investigation identified that PM10 (µg/m 3 ) the result was not valid. The assessment made was due to data (TSP/PM 10) from other monitors in the area recording lower levels for the same period. Additionally, it was identified the TSP load was less than the PM 10 load. The PM 10 load cannot be less than the TSP load, as PM 10 is only PM10-2 PM10-2 Annual Rolling Average 24 hour Assessment Criteria Annual Assessment Criteria a fraction of TSP. Following advice from DP&I, it was decided not to do a make up run. Based on findings and agreement with DP&I, the value of this sample value was removed. During the investigation, it was identified the monitoring sample head on the PM10-1 unit had not been clipped down correctly, resulting in the incorrect value. PM10 (µg/m 3 ) PM10-3 Constable Residence January 2011 to December Overall the annual rolling average at all PM 10 monitoring locations displayed a slight increase throughout The annual rolling average for the monitors fluctuated with the levels increasing during the November and December period. PM10-3 PM10-3 Annual Rolling Average 24 hour Assessment Criteria Annual Assessment Criteria PM10-4 Wybong Rd (Ex Smiths) January 2011 to December PM10 (µg/m 3 ) PM10-4 PM10-4 Annual Rolling Average 24 hour Assessment Criteria Annual Assessment Criteria Bengalla 2011 Annual Review 35

39 Depositional Dust Monthly depositional dust results for insoluble solids and ash residue are presented in Appendix 4. Twelve month mean insoluble solid levels for 2011 compared with the background mean levels, calculated between December 1991 and September 1996 (prior to the commencement of Bengalla) are presented in Figure 20. Regional depositional dust contours (isopleths) for total insoluble solids are presented in Figure For the purpose of corporate reporting and cumulative impact assessment, the dust isopleths include data from other mining operations surrounding Bengalla, as indicated by Mount Pleasant data (MD). levels in 2011 of 3.5g/m 2 /month. In comparison to 2010 (3.4g/m 2 /month), a minor increase of 0.1g/m 2 /month was observed. As predicted in the EIS this gauge has increased from the recorded baseline level of 1.0g/m 2 /month. The dust gauge D18, located to the north of the mine, increased in comparison to the EIS. The annual rolling average for gauge D18 during 2011 was 3.6g/m 2 /month, which was the same value recorded during The dust gauge D19 gauge located in the north decreased during the reporting period by 3.4g/m 2 /month between 2010 (12.9 g/m 2 /month) and 2011 (9.5g/m 2 /month). The D18 and D19 gauges are both located in close proximity to the north of the active mining area. Figure 21 shows the annual 2011 insoluble solid dust levels compared with 2010 average levels and baseline levels recorded prior to mining for the Bengalla depositional dust network. Of the 29 depositional dust gauges that form the current monitoring network, 20 were baseline gauges used to assess dust impacts in the EIS. Depositional dust levels are generally greater in the proximity of the mining operation, extending out to the north-west and south-east consistent with the prevailing winds; southeasterly in spring/summer and northerly in autumn/winter. As predicted in the EIS, dust levels to the south-west of Muswellbrook and south-west of the mine have increased. In comparison to 2010 levels, the annual rolling average of the baseline EIS dust gauges located to the east of the mine (D01, D02, D09, D10 and D15) declined in An increase in depositional dust levels was observed in 2011 at D01, D04A, D06, D08, D13 and D14. The rural dust gauge D20 is located south-west of the mine and has shown a predicted increase from the reported baseline of 1.4g/m 2 /month. During 2011, an average of 2.9g/m 2 /month was recorded at this gauge. In comparison to 2010 (2.6g/m 2 /month) a minor increase of 0.3g/m 2 /month was shown at this gauge. Other dust gauges located to the south and south west of the mine have also shown an increase in the rolling average during These gauges are D16, D17, D12A, D12B and D12C. Dust gauge D21, located on rural land to the west of the mine, also reported an increase in long term rolling average Nineteen of the 29 depositional gauges recorded results within the OEH dust deposition annual average impact assessment criteria of less than 4g/m 2 /month. Of the 10 depositional gauges that had a monthly rolling average of greater than 4g/m 2 /month, field notes by the contractor identified that D12A and D12C had contaminated results throughout the reporting period. The contaminated results provide a false representative of the actual readings. If contaminated results are removed from annual average, the values for the depositional dust gauges are below regulatory reporting criteria (4g/m 2 /month). Results for D12A showed an annual rolling average of 33.2g/m 2 /month. On removal of the depositional dust gauge results which were deemed contaminated, the annual mean is 4.6g/m 2 /month. During 2011, the annual average results of gauge DC (southeast of Bengalla) was shown to be elevated due to contaminated sample results being kept in the depositional dust gauge dataset. The annual rolling average was identified as 8.6g/m 2 /month with contaminated results included. The removal of the elevated results that were deemed contaminated identified an annual rolling average of 2.7g/m 2 /month. In comparison to the 2010 depositional dust gauge results, a decrease of 4.5g/m 2 /month was shown during In 2011 depositional dust gauge D18 showed an increase in comparison to the original EIS levels. During 2010 the dust gauge recorded an annual rolling average of 3.6g/m 2 /month. In 2011 the same annual rolling average (3.6g/m 2 /month) was shown by this dust gauge. Another dust gauge, D19, is located close to D18 north of the mine. In comparison to the Bengalla 2011 Annual Review 36

40 2010 annual rolling average, this dust gauge (D19) showed a decrease of 3.4 g/m 2 /month in Elevated results above the annual rolling average impact assessment criteria were noted at seven depositional dust gauges at the end of 2011, as follows: The annual average of gauge D12A (south of Bengalla) increased from 6.3g/m 2 /month during 2010 to 33.2g/m 2 /month. Nine instances of contamination of the gauge occurred with a highest reading of 199.0g/m 2 /month. The contaminated results if removed show the actual value of 4.6g/m 2 /month which is a decrease on 2010 results by 1.7g/m 2 /month. The annual average of gauge D12B (south of Bengalla) increased from 6.5g/m 2 /month during 2010 to 7.3g/m 2 /month during The annual average of gauge D12C (south of Bengalla) increased from 5.5g/m 2 /month in 2010 to 5.5g/m 2 /month during The annual average of gauge D14 was 7.8g/m 2 /month with a contaminated result value of 48.8g/m 2 /month from April remaining. On removal of the result deemed contaminated a value of 4.1g/m 2 /month remains. This is an increase of 3.1g/m 2 /month compared with the 2010 annual average. The annual average for gauge D15 (south southeast of Bengalla) decreased from 9.3g/m 2 /month in 2010 to 8.8g/m 2 /month in 2011 and is still not within the OEH impact assessment criteria. The annual average of gauge D16 (located in close proximity to gauge D15 to the south of Bengalla) increased from 10.4g/m 2 /month in 2010 to 12.3g/m 2 /month over the 2011 reporting period. Gauge D17 showed an increase from 2.4g/m 2 /month to 4.1g/m 2 /month in Gauge D19 (north of Bengalla) displayed a decrease in the annual average from 12.9g/m 2 /month in 2010 to 12.3g/m 2 /month during and October to December for the monitoring sites. At these times, wind conditions were identified as being predominantly south easterly. The meteorological conditions during the reporting period suggest cumulative dust from a range of sources. That is, local mining, agricultural and industry may have all contributed to the elevated annual rolling average. The depositional dust gauges D14 and D15 are located within the Bengalla affectation zone. It was identified that localised excavation/building works around the D14 monitor would have resulted in an increased annual rolling average. D15 is located adjacent to the Wantana Extension and elevated results occurred throughout the year, under a range of meteorological conditions including south easterly, northerly and north westerly winds. The meteorological conditions suggest cumulative dust from a range of local sources, including local mining, agricultural and industry, may have contributed to the elevated annual rolling average. During 2011 an increased at the seven gauges observed may be as a result of the following factors: D12A, D12B D12C and D17 are located west of Bengalla. Elevated results occurred during January to March Bengalla 2011 Annual Review 37

41 Figure 20: Mean insoluble solid levels compared to mean baseline data 2011 Bengalla Mining Company Dust Deposition Gauge - Total Insoluble Matter December g/m2.month Insoluble Matter D26 DC DB DA D25 D24 D23A D22 D21 D20 D19 D18 D17 D16 D15 D14 D13 D12C D12B D12A D10 D09 D08 D07A D06 D05 D04A D02 D01 Current Month Dust Deposition 12 Month Mean-BMC Mine Dust Gauge 12 Month Mean-Neighbouring Mine Dust Gauge 12 Month Mean Baseline Mean Annual Assessment Criteria Bengalla 2011 Annual Review 38

42 Figure 21: Dust isopleths Bengalla 2011 Annual Review 39

43 Figure 22: Dust isopleths December 2011 Bengalla 2011 Annual Review 40

44 Figure 23: Dust isopleths rolling annual average December 2011 Bengalla 2011 Annual Review 41

45 3.3 GREENHOUSE Environmental management Bengalla s three energy metrics are: 1. Dragline energy usage per material moved 2. Haul energy usage per material moved 3. CHPP energy usage per material handled. Rio Tinto Coal Australia is committed to addressing climate change throughout its business. The climate change vision of Rio Tinto Coal Australia is, Our people and operations contribute to the solution for the challenge of climate change. These metrics were tracked throughout 2011 at a site level and results were reported to Rio Tinto Coal Australia. During the reporting period the current metrics were reviewed and updated. New metrics and targets have been developed for Bengalla for the period of Rio Tinto Coal Australia s strategy for addressing climate change is focused around four main areas, which are: Researching and promoting clean coal technologies Improving energy use Designing projects to recognise climate change risks and opportunities Raising awareness amongst key stakeholders groups. Since Rio Tinto Coal Australia launched its Climate Change Action Plan a number of the actions from the above strategies have been completed at a site level. In 2011 Bengalla progressed with several greenhouse projects such as: Reviewing truck idle time using MineCare (maintenance and fuel benefit). The Energy Efficiency Opportunity project was implemented to minimise idling time of trucks during delays (annual saving of 127 gigajoules) Review of energy metering systems on site to identify potential metering improvements to improve energy data Renewable energy use; with involvement in the program to better understand availability, operability and maintenance of renewable energy across operations. In 2011 Bengalla finished greenhouse and business improvement projects as part of Rio Tinto Coal Australia s strategy for addressing climate change. In 2008 Rio Tinto Coal Australia undertook a process to set energy usage targets at each site for the next three years. Each site chose up to three energy metrics then, using baseline data, they set targets for the following three years. Throughout 2011, Bengalla has continued to look at ways to improve energy efficiency with a number of actions including: Use of B2 biodiesel in which 1,326 carbon dioxide equivalent (CO 2-e) was saved Completion of the first five year cycle of the Energy Efficiency Opportunity project, with an approximate saving of 41,000 gigajoules per annum Continued greenhouse and energy reporting data in accordance with Rio Tinto Coal Australia and National Greenhouse and Energy Reporting Participation in a study into electrical motor efficiency within the Coal Handling and Preparation Plant Environmental performance Bengalla completes biannual and annual reporting on carbon dioxide emission production and abatement including: National Pollution Inventory (NPI) report as required by the OEH. The NPI report provides details on emissions generated by Bengalla s operations over the financial year. Bengalla s 2010/2011 report is included in Appendix 5 National Greenhouse and Energy Reporting Scheme (NGERS) In 2011 a total of 430,411 tonnes carbon dioxide equivalent per tonne of product (CO 2-e/t) were produced from Bengalla s operations. An increase of 4.15 per cent was observed between the 2010 and 2011 period. The majority (72.4 per cent) of Bengalla s CO 2-e/t are produced from coal seam gas (fugitive emissions), with 16.3 per cent and 10.7 per cent of emissions related directly to diesel use and electricity respectively. Bengalla 2011 Annual Review 42

46 The remaining percentage is made up of explosives usage (0.5 per cent) and clearing of vegetation. Bengalla s tonnes of CO 2-e/t produced per tonne of saleable coal increased in 2011, from 81.3 in 2009 to 75.3 in 2010 to 82.6 in 2011 (Figure 24). kg CO2-e/t Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec kg CO2-e/t 2011 BMC Target Figure 24: CO2-e produced per tonne of saleable coal Environmental performance Dams, contour banks and drainage lines across Bengalla are regularly inspected to assess their integrity and efficiency to control and capture water. During 2011, routine maintenance and desilting of the Endwall Dam, Ramp Dam, ROM North and South Dams and the Windmill Dams was completed. Endwall Dam had major desilting works completed in September/October 2011 increasing the capacity for mine water storage. Ramp Dam had desilting and water drainage installed to increase capacity of the dam and control erosion. The Wantana west sediment dam was completed during the 2011 reporting period. The dam was constructed to capture runoff from disturbed areas associated with the Wantana Extension and water pumped from the pit. The dam was constructed following the Wantana Extension project development which identified increased water management requirements included storage of mine water. 3.4 EROSION AND SOIL DEVELOPMENT Environmental management Active mining and rehabilitation areas have a number of approved facilities in place including drains, dams, contour banks and pipelines to control erosion and sediment-laden water flow, which are regularly inspected. Erosion control within rehabilitated areas is managed using the following techniques: Construction of contour banks on steep areas to direct runoff water and minimise rilling Lined drop structures to collect runoff from contour banks and direct runoff to approved sedimentation structures Deep ripping prior to seeding to increase water infiltration and soil moisture, and provide a seed bed for rapid germination Planting of a cover crop on both pasture and tree seeded areas to stabilise the surface Engagement of specialist rehabilitation consultants to assist in rehabilitation techniques. Wantana west sediment dam Bengalla 2011 Annual Review 43

47 3.5 SURFACE WATER water Environmental management Bengalla s water management system was designed to minimise the use of fresh water from the Hunter River. This is achieved through maximising the recycling of CHPP process water by dewatering rejects and utilising secondary quality water where possible across site. Wherever possible saline mine water and treated sewage water are used for coal processing and dust suppression. Any required discharge events at Bengalla are managed under the guidelines of the Hunter River Salinity Trading Scheme (HRSTS). During 2011 Bengalla undertook four discharge events. A total 109 megalitres was discharged from the Stage Discharge Dam in accordance with HRSTS requirements. Managing surface and sub-surface water is a challenge for the operation due to a number of different factors. They include, but are not limited to: The changing hydrology and availability of pit water Unreliable rainfall compared with a predicted longterm average Variances in water usage and demand. All dams within the mine lease area are monitored for ph, electrical conductivity (EC) and total suspended solids (TSS) on an annual basis. This monitoring programme provides necessary baseline data as well as information relating to the impacts, if any, from the mining operation, for all site water resources. The 2011 monitoring data for the dams at Bengalla is detailed in Appendix Environmental performance Hunter River Water Use As discussed in Section Bengalla pumped 488 megalitres of water from the Hunter River in 2011 for use on site. This amount represents a decrease of approximately 1.8 per cent from 2010 levels (497) and 17 per cent from 2009 levels (601 megalitres). Although the operation has a license to use up to 1,000 megalitres of water from the Hunter River annually, the water management system, associated targets and general awareness by employees ensures recycled water is used in preference to Hunter River Monitoring The ph, EC and TSS levels in the Hunter River are monitored on a monthly basis at three sites upstream (W01, W02 and W03) and one site downstream (WO4) of Bengalla. Additional samples are also collected following rainfall events of greater than 15 millimetres over a 24 hour period. Figure 25 shows water monitoring site locations at Bengalla. Surface water monitoring is also required to be undertaken at three locations (EPA1, EPA2 and EPA3) during any discharge under the HRSTS. Hunter River surface water monitoring results are presented in Figures 26, 27 and 28 and full results detailed in Appendix 6. The monitoring data indicates Bengalla s mining activities have not significantly impacted Hunter River water quality throughout The ph results recorded during 2011 were within the recommended limits (ANZECC Guidelines (2000) for Aquatic Ecosystems) at all sites. There was no substantial variation between ph recorded upstream and downstream of Bengalla, with an average ph of 8.0 occurring at all sites for the year. Fluctuations were noted across the year with a low ph value of 7.6 and an upper value of 8.3. EC results remained consistently within the ANZECC guidelines for Aquatic Ecosystems New South Wales Lowland Rivers (<2,200µS/cm) during the reporting period. The annual mean results for 2011 ranged between 504µS/cm at W01 and 554µS/cm at W04. There was a slight general increase in EC results as expected during the nonscheduled monitoring events following rainfall events, with an the annual mean ranging from 548µS/cm at W01 to 646µS/cm at W04. The ANZECC Guidelines (2000) for Aquatic Ecosystems specify TSS remain below 50 parts per million for New South Wales Lowland Rivers. The results for 2011 show TSS were recorded above the limit on eight occasions; 14 June, 8 October and 24 November. All of which occurred following at least 20 millimetres of rainfall within the previous 24 hours. The most significant TSS reading was 328 parts per million at W04, which corresponded to readings downstream of 86 parts per million, 236 parts per million and 165 parts per million (W03, W02 and W01 respectively), following rainfall events of 36.8 millimetres and during 54.0 millimetres on 14 and 15 June respectively. Average TSS readings for Bengalla 2011 Annual Review 44

48 scheduled monitoring events were 46.4 parts per million, 55.2 parts per million, 31.4 parts per million and 51.1 parts per million (W01, W02, W03 and W04 respectively). Average TSS readings for non-scheduled events, that is less than 15 millimetres 24 hour rainfall, were 44.5 parts per million, 56.5 parts per million, 34.5 parts per million and 56.5 parts per million (W01, W02, W03 and W04 respectively). Monitoring results after rainfall indicate differences in water quality, particularly relating to TSS as expected, however based on the locations of the sampling events and long term water quality monitoring of the river after rainfall events shows that the mine is not impacting on water quality after rainfall. Typically TSS levels are elevated after rainfall event due to the increased sediment load entering the river from runoff. This sediment load is derived from many sources including farming land, urban areas and unsealed roads. Bengalla 2011 Annual Review 45

49 Figure 25: Water monitoring locations Bengalla 2011 Annual Review 46

50 Figure 26: Hunter River ph monitoring results 2011 Bengalla 2011 Annual Review 47

51 Figure 27: Hunter River electrical conductivity 2011 Bengalla 2011 Annual Review 48

52 Figure 28: Hunter River total suspended solids 2011 Bengalla 2011 Annual Review 49

53 3.6 GROUNDWATER MANAGEMENT Environmental management To ascertain potential impacts upon groundwater from mining activities at Bengalla a groundwater monitoring network has been established around the mine and on adjoining land. The monitoring network targets three aquifers an unconsolidated aquifer, a shallow hard rock aquifer and a deep hard rock aquifer. A total of 41 groundwater monitoring locations surrounding the mine site are shown in Figure 8. In 2010 two bores (SMB1 and SMB2) were installed adjacent to the alluvial land to the south east of the mine. These bores were installed as part of a groundwater investigation and to enhance the coverage of the monitoring network. There are now 21 bores located adjacent to the Wantana mining area, which provide a better understanding of groundwater quality background data. Three groundwater monitoring bores were installed during These have been installed to provide baseline conditions prior to the mine moving further west. No groundwater monitoring bores are proposed to be installed as part of the Environmental Monitoring Network during the 2012 reporting period Environmental performance The groundwater sampling programme incorporates a biannual and annual monitoring regime for all bores and monthly standing water level for the Wantana bores. The groundwater monitoring program consisted of monitoring the following analytes: Electrical conductivity (EC) Total Dissolved Solids (TDS) ph Sulfate Metals (Al, As, Be, B, Cd, Cr, Co, Cu, F, Fe, Pb, Li, Mn, Hg, Mo, Ni, Se, V, Zn) In addition, three bores (BG1, BG3 and BG5) are fitted with data loggers, continually measuring water depth and temperature. Two groundwater monitoring reviews were completed in September 2011 and January 2012 by independent groundwater specialists. The groundwater monitoring results review completed in January 2012 is presented in Appendix 6. A summary of the groundwater monitoring report (AGE, 2012) has indicated the following: Groundwater levels in the Hunter River alluvium correlate well to rainfall and the Hunter River water level. The correlation indicates that recharge of the alluvium is maintained by river seepage The mine water table of the alluvium has a gradient of 0.001, from Relative Level metres upstream of the mine to Relative Level metres downstream The coal seams and interburden in the Wantana extension to the south of the mine have been depressurised as a result of the mining and there is potential in this area for leakage from the alluvium to the coal seams. A review of EC data indicates the following: The baseline EC of alluvial groundwater is in the range of 800-2,200µS/cm (approximately mg/L TDS) The baseline EC for coal measures is in the range µS/cm (approximately mg/l TDS) Coal seam water quality in the Wantana extension area is in the range of µS/cm. Results for the groundwater monitoring sites where full speciation (metals/ions) analysis was undertaken in 2011 showed that water quality was within the ANZECC Guidelines (2000) for livestock drinking water quality (see Table 1: Appendix 6). Alluvial Aquifers Based on groundwater monitoring over the 2011 reporting period within the Wantana Extension area, results indicate that for this group of bores the groundwater level varies between Relative Level metres and Relative Level metres (see Groundwater Hydrographs in Appendix 6). The hydrographs of the alluvial bores in the Wantana Extension area show a declining level of generally about 0.4 metres between February 2009 and February/March 2010, however the trend was also evident in the more regional alluvial bores and not related to seepage to underlying coal seams that have been depressurised by mining. The decline of about 1.5 Bengalla 2011 Annual Review 50

54 metres in WAN8A over the same period of general water level decline during 2010 is an anomaly, as surrounding alluvial bores showed less of a decline. During 2011 WAN8A showed highly variable water levels. The WAN8A bore fluctuated from being dry to having water level Relative Level metres. WAN9A also showed similar fluctuations overall, however trended in the opposite direction, increasing to Relative Level metres. The variation in the two bores may be related to irrigation pumping of bores and the nature of the sediments in the lithology (AGE, 2012). As of December 2011, water levels for WAN4A, 5A, 7A, 10A and bore were similar to the group of bores nearest to the mine with levels ranging from Relative Level metres to Relative Level metres whilst WAN6A, SMB1 and SMB2 were recorded a height about 1.5 metres higher (AGE, 2012). The EC values of the alluvial monitoring bores are generally in the range of µS/cm, as shown in the Electrical Conductivity trends graphs in Appendix 6. Large fluctuations have been reported ( ) in some bores since the commencement of monitoring within the Wantana area. Three monitoring bores in the Wantana Extension area showed an EC value range between µS/cm. A large increase in EC was identified for three bores during 2009 and During 2010 and 2011 the steep increases have shown stabilization and have developed a trend of general decline. The high EC readings is considered to be unlikely related to mining activity as the hydraulic gradient is towards the depressurized coal seam (AGE, 2012). Trends in ph levels in the alluvial aquifers are relatively stable in all bores with ph levels ranging from within the regional bores and in the Wantana area. A ph reading of 12.4 was recorded for WANT8A and in 2010 there was a high reading of In 2010 a lack of groundwater recharge was shown and it was considered this reading was not an accurate representation of the water quality in this bore. Throughout 2011 only two results were obtained for WAN8A, with all other sampling times identifying the bore as dry. Therefore the measurements cannot show an accurate representation for the 2011 period. Ongoing monitoring during 2012 will be used to determine what level of accuracy is provided by these readings. A summary of all groundwater data is included in Appendix 6. Wantana area show generally stable levels throughout the 2010 reporting period. Groundwater Relative Levels range from approximately Relative Level 100 metres to Relative Level 129 metres. The hydrographs of interburden and overburden monitoring bores to the north east of the mine are shown in Appendix 6. Water levels within these bores range between Relative Level metres and Relative Level metres, which compares to an alluvial water level in the same area of Relative Level metres. This confirms that in general under pre-mining conditions there is a potential for the discharge from the bedrock aquifers to the base of the alluvium where they sub crop beneath the alluvium (AGE, 2012). To the west of the mine a Relative Level of 151.5m was recorded, indicating that a flow was towards the alluvium and away from the river. The EC of the coal seams monitored is graphically shown in Appendix 6. The graph indicates a large range from less than 1000µS/cm to 4000µS/cm for the Wantana area, and a range of µS/cm for the regional monitoring bores, which is considered a normal background level for coal measures in the area (AGE, 2012). EC readings for the 2011 reporting period have shown fluctuations in both the Wantana area and the regional bores in comparison to A general decline in EC is observed for the 2011 period for A10, 46737, WAN4B, and WAN5-B as shown in Appendix 6. A slight upward trend was only observed for the E12 bore with values from 5140 to 5590 µs/cm (AGE, 2012). Trends in ph levels in the deeper aquifer are relatively stable in all bores with ph levels ranging from within the Wantana area and in the regional bores. A summary of all groundwater data is included in Appendix 6. Coal seam aquifers A review of the coal seam/interburden bores within the Bengalla 2011 Annual Review 51

55 3.7 CONTAMINATED LAND Land contamination may occur as a result of hydrocarbon or other chemical spills. Bengalla minimises any potential risk to the environment from contaminated land with the implementation of a set of comprehensive control strategies and procedures. Control measures include: A strong focus on waste management and recycling Prompt spill response and remediation Bunding and containment to isolate and prevent site contamination Updated contaminated land site register; and Formal process utilising external contaminated land consultants to decommission contaminated sites Quarterly soil monitoring of the Total Petroleum Hydrocarbon levels. When the soil meets specific land use criteria (that is remediated) it is placed in the spoil dumps. Bioremediation area Bengalla operates a bioremediation facility where any soil contaminated with hydrocarbons is placed for remediation. The bioremediation facility consists of four active cells where the bioremediation process occurs. The four cells are fitted with an automated irrigation system and soil moisture probes to ensure soil conditions are optimal for beneficial bacteria and microbes to aid the remediation process. To reduce the duration of the bioremediation process, Bengalla adds a microbial powder to the soil to increase the hydrocarbon breakdown process and reduce the time required to treat the soil. 3.8 FLORA AND FAUNA Environmental management Biodiversity values are incorporated into both Coal & Allied s Rehabilitation and Flora and Fauna Procedures. Flora and fauna management is legislated under the Federal Government s Environmental Protection & Biodiversity Conservation Act 1997 (EPBC Act), the Federal Government s Threatened Species Conservation Act 1999 (TSC Act) and the New South Wales Threatened Species Management Act. Microbial powder increases hydrocarbon breakdown process A composite sample is taken from each cell on a quarterly basis to check hydrocarbons levels, with the following analysis completed: TPH C6-C9 TPH C10-C14 TPH C15-C28 TPH C29-C35 TOTAL TPH Rio Tinto Coal Australia understands biodiversity is important, and as a result has developed a proactive and coordinated approach to direct, monitor and review the effective management of key biodiversity features of land holdings. Bengalla has implemented the Rio Tinto Coal Australia Hunter Valley Biodiversity Action Plan. This plan incorporates all Coal & Allied s operations and risks the significance of flora and fauna at each operation and outlines an ongoing action plan for implementation. Flora and fauna surveys on rehabilitation and areas ahead of mining are conducted as required by a suitably qualified ecologist. Bengalla 2011 Annual Review 52

56 3.8.2 Environmental performance Flora Operational areas at Bengalla are located across predominantly Class IV and Class V grazing and agricultural land, which has experienced extensive disturbance in the past. The majority of the leases have been cleared, grazed and were historically invaded by exotic grasses and shrubs. Vegetation communities of areas to be developed during 2012 include low diversity derived grasslands and exotic pasture, which do not conform to community listings under the applicable legislative acts. As a result there are currently no areas of declared conservation value within Bengalla lease. Fauna There are currently no threatened or endangered species, populations or habitat for fauna identified at Bengalla. During the reporting period minimal areas of trees were required to be cleared for the purposes of mining. Trees were inspected prior to any development for indication of habitat value. As per the Coal & Allied procedure; vegetation is slowly knocked to ground and left overnight to allow wildlife to move on. The vegetation is placed in the rehabilitation area following removal. In 2011 two injured birds were found at the mine. One bird was rescued from an oil drain tray, and the other was found in the CHPP Washery area. Injured wildlife is given to the local Wildlife Aid to provide the necessary care for recovery. 3.9 WEEDS developed in 2003 and continues to be used as the basis for weed control activities at Bengalla throughout the reporting period Environmental performance In 2011 weed control continued across Bengalla s active mining leases. A weed spraying programme was completed on a section of the north rehabilitated waste rock dump. The key weed targeted was Galenia, with a focus to continue on the maintenance of the rehabilitation works. Whilst Galenia and Boxthorn were the species targeted in 2011 across areas sprayed, the majority of weeds present at the time of the programme were sprayed. Work completed on the rehabilitation areas aimed to complement the previous maintenance/weed reduction works. The spraying of Bengalla s leases continued in 2011 focusing upon sites disturbed by mining and infrastructural developments. Areas targeted included those adjacent to and surrounding to these sites (Figure 29). An ongoing annual spraying programme, in place since 2003, has successfully reduced the occurrence of a number of weeds including Boxthorn across Bengalla s leases. This spraying programme focuses on areas not under an agreement (not leased to farmers or tenants). All lessees are required to control weeds on their BMC leased land. Spraying programmes on the rehabilitated land and mining lease areas will continue throughout FERAL ANIMAL CONTROL Environmental management Bengalla currently manages weed control under the Bengalla weed management plan. The management plan was During the reporting period wild dog baiting programmes were supported in their implementation. The programmes occurred on leased areas around the mine. Bengalla 2011 Annual Review 53

57 Figure 29: Weed spraying areas Bengalla 2011 Annual Review 54

58 3.11 BLASTING Environmental management Blasting at Bengalla is managed as per the Coal & Allied blasting procedure and conditions of DA211/93. Prior to each blast being undertaken, the Real Time Environmental Monitoring System (RTEMS) is accessed and data from Bengalla s meteorological station is used to determine the potential effects of blasting at the scheduled blast time. Wind speed, wind direction and temperature inversion are all taken into account when determining suitability of blast times. The location of the blast in the pit and size of the area being blasted are also considered to ensure minimal blasting impacts occur. The scheduled blast will be postponed if wind speed, wind direction or temperature inversion changes do not meet the specified Bengalla blasting criteria (Bengalla Meteorological Restrictions for Blasting). Blast monitoring units are installed at 11 fixed locations (Figure 37) on mine owned land (Bengalla, Mount Pleasant mine or BHP Billiton Mt Arthur Coal) and private properties to fulfil the site s regulatory requirements in relation to blast monitoring. The blast monitoring system operates in real time, relaying blast results to a website that is accessible 24 hours a day by Bengalla staff. During 2011, the blast monitor which was located on the Bates property was removed following the purchase of the Bates Property by Coal & Allied. As per the commitment in Bengalla s Environmental Monitoring Program, the monitor was moved to a non-mined owned residential property. The monitor was installed a property located on Wybong Road, north east of the mine. Non-mine Owned Monitoring Locations St James School (SCH) Webber (WEB) Moore (MRE) Blake (BLK) Mine Owned Monitoring Locations Bengalla Homestead (BHS) Carter (CTR) Edinglassie (EGL) Boyle (BOY) Collins (COL) Bates (BTS)* Scriven (SCR) minimise environmental impacts such as dust, air blast and also vibration which has proven successful over the blast events this year. New High Precision GPS systems have been installed on drill rigs to maintain the accuracy of drill positioning and hole depth within the blasting patterns to minimise blasting impact. Computer programmes that simulate blast patterns are also used to further reduce the impacts of blasting. Bengalla s EPL6538 and DA211/93 (Modification 4) permits Bengalla a maximum ground vibration limit of 10 millimetres per second and requires that less than five per cent of total blasts exceed five millimetres per second ground vibration at non-mine owned residential locations. The EPL also requires that no blast event may exceed 120dBL and that less than five per cent of blasts may exceed 115dBL overpressure at non-mine owned residential locations. Blasts with an overpressure exceedance of 115dBL or more at any privately owned residence are investigated. In addition, an external review of results is completed by an independent blasting consultant when wind affects may be the expected cause for the result. These investigations include both direct waveform and waveform decay analysis, and provide an estimate of the actual blast overpressure excluding wind affects. Overpressure readings can be exacerbated by wind, which generates noise in the monitor s microphone and therefore increases overpressure readings over and above that attributable to the blast. Investigation of the overpressure waveform will identify if the results are in fact altered by wind affects. The Drill and Blast Engineer liaises closely with the environmental team to schedule blast events at a time when weather conditions are most suitable, with constant communication maintained throughout the course of each blasting event. *Bates monitor relocated during Blasting in 2011 was completed using Bengalla s standard blast design guidelines, which include blast face profiling to ensure the front row of any free face blasts has sufficient burden to prevent a blowout of explosive force. The burden and spacing design incorporates pattern tie-ups to Figure 30: Blast pattern simulation for blast planning Bengalla 2011 Annual Review 55

59 Environmental performance During 2011 an average of three blast events per week occurred between the hours of 7.00am and 5.00pm, Monday to Saturday. This equates to total of 163 blast events being initiated for the year. However, since approval of Modification 4 of DA 211/93 there is a change of the reporting requirement for blast events. Previously, all initiated blasts, regardless of size, were reported and defined as an event. The changes in reporting now define an event as a blast generating ground vibration of greater than 0.5 millimetres per second. This change was implemented from 7 October (when approval was granted for Modification 4) and based on its definition the number of blast events undertaken in 2011 is reduced to 155. The definition was applied by identifying any levels of vibration below 0.5 millimetres per second for blast monitoring units shown in Appendix 7. This was only applied where all data was available for the units from 7 October. One blast overpressure and vibration reading was not recorded (a 99.4 per cent capture rate) at compliance monitors in A single monitoring event was not captured due to monthly reporting process not being followed. The blast monitors were operational at the time of the event and the blast procedure was followed. The average weight of explosives used per event across all blasts at Bengalla in 2011 was 85 tonnes (overpressure and ground vibration results of recorded blast events for 2011 are presented in Appendix 7). In 2011 there was one occurrence where the overpressure was recorded greater than 115dBL at privately owned residences as a result of a Bengalla blast. This overpressure exceedance was investigated and this resulted in a review of the blast pattern. Ground vibration results remained well below Bengalla s EPL and development consent criteria of less than 10 millimetres per second. Bengalla met its internal target of all blasts on privately owned land being less than 1.8 millimetres per second ground vibration throughout There were three fume events at Bengalla in 2011, which is two less than in New explosive products and blast designs were implemented, and have shown an improvement compared with previous methods. A new blast fume monitoring programme is to be developed in The new monitoring program will be implemented as part of the RTCA Fume Management Program. This programme will aim to implement fume management actions at each Rio Tinto Coal Australia site. In 2011 Bengalla undertook production and development blasting in the south of the mine. The use of customised vibration modelling software allowed for 100 per cent compliance with Bengalla s vibration limit of 1.8 millimetres per second for privately owned land. During 2011 Bengalla received 14 complaints relating to blasting, which was below the average (18) from previous years in which 14,19, 28, 23, 7, 11, 16 and 31 complaints were received (in 2011, 2010, 2009, 2008, 2007, 2006, 2005 and 2004 respectively). Bengalla s Environmental Impact Statement predicted blasting impacts would be experienced by residents surrounding the mine, although the impacts would remain within specified limits. To date Bengalla s blasting results match these predictions. During 2011 the Blast Monitoring Network (Figure 31) was upgraded with 10 new monitors. The monitors improve on the ability to record accurate ground-borne vibration and overpressure due to the equipment having a greater sensitivity. The new monitors also have improved software to retain stored information. The new monitors allow Bengalla to continue to monitor blast events and assist in continued management of blast practices. Road and rail closures Pursuant to Bengalla s Development Consent, blasting operations within 500 metres of Wybong Road require that road closure procedures are followed. In 2011 there were 35 road closures as a result of blasting operations, 33 of which were within this zone. Two blasts required closure of Bengalla Road. Furthermore, another condition of consent for blasting in the south of the mine is the observation or closure of the Muswellbrook Ulan Rail Line for blasting within 500 metres (observation) and 200 metres (closure). In 2011 there were 24 blasts within the 500 metre zone, of which one was within the 200 metre zone and required the complete closure of the rail line. Bengalla 2011 Annual Review 56

60 Figure 31: Bengalla blast and noise monitoring network Figure 37: Bengalla blast monitoring netw Figure 37: Bengalla blast monitoring netw Figure 37: Bengalla blast monitoring network Bengalla 2011 Annual Review 57

61 3.12 OPERATIONAL NOISE Environmental management Onsite management techniques To comply with development consent conditions, various management techniques are utilised for the control and minimisation of noise levels across the mine site, including: Construction of noise and visual bunds surrounding the active mining operation Development of tree screens Stringent sound power level requirements placed upon suppliers items of plant and equipment Noise attenuation fitted to mobile equipment and some fixed plant including pumps and lighting sets Regular preventative maintenance of all mobile equipment Noise attenuation fitted to the ROM dump hopper Rigorous mine planning for the scheduling and siting of active dump areas and haul roads away from Muswellbrook during night time operations Noise modeling Regular independent noise monitoring surveys undertaken on all pieces of plant and mobile equipment Daily night-time operator attended surveys undertaken around the site after 10:00pm to ensure compliance with noise conditions Independent fortnightly surveys occurring throughout winter, when the operation is prone to temperature inversions and the subsequent enhancement of noise levels Interrogation of the Real Time Environmental Noise Monitoring System which is available to all employees Ongoing noise awareness training provided to all relevant employees. Criteria Schedule 3, Condition 2 of DA211/93 (Modification 3) specifies noise impact assessment criteria for day, evening and night at individual residences. Bengalla s environmental monitoring programme (approved by the DP&I in 2010) outlines Bengalla s noise monitoring requirements to ascertain if Bengalla continues to meet the noise impact assessment criteria. The condition remains following DA211/93 (Modification 4), which was approved in October Monitoring for the reporting period Attended environmental noise level assessments were undertaken on a quarterly basis over the reporting period. These assessments were undertaken by an independent consultant, Global Acoustics Pty Limited, at five noise sensitive receptor sites shown in Table 11 with measurements taken in February, April, June, August, September, November and December Full results are included in Appendix 8. Noise monitoring was conducted at the nearest residential properties surrounding the Bengalla mining operation in accordance with the OEH Industrial Noise Policy (INP) guidelines and Australian Standard AS1055 Acoustics, Description and Measurement of Environmental Noise. Meteorological data was obtained from the Bengalla Mine meteorological station located on the river flats (east of the operation). Atmospheric parameters included wind speed, wind direction, rainfall and temperature. An inversion tower on the river flats south of the mine measures inversion strength. This data allowed correlation of atmospheric parameters and measured noise levels. Continuous noise monitoring is also incorporated into the RTEMS with two noise monitors logging noise statistics via telemetry to the muster area. This system provides team leaders with a system to monitor noise conditions at both the Racecourse and Roxburgh Roads (Figure 31) Environmental performance A summary of the noise emissions generated by Bengalla in 2011, applicable to DA211/93 (Modification 3/Modification 4), is shown in Table 11. These results are determined from attended noise monitoring and are as measured under prevailing atmospheric conditions. During the reporting period, Bengalla complied with all day and night LA eq, (15 minute) and LA eq, (one minute) limits from DA211/93 (Modification 3/Modification 4) at all locations. Wind speed and/or estimated temperature inversion conditions did result in development consent conditions not always being applicable. The results for 2011 show that all noise levels continue to be Bengalla Annual Environmental Management Report

62 below consent criteria limits as per DA211/93 (Modification 3/Modification 4). Overall noise emission levels reported for 2011 over 50 per cent of results indicated noise was either inaudible or not measurable. The results identified that there was minimal difference in noise generated from day to night for three locations. One location saw a shift in less than 20 decibels for one sampling period (Quarter 2 Edinglassie). Night noise at the Racecourse Road (LAeq,15 minute) was recorded between inaudible and 33 decibels. The results show a similar trend to those seen in These results are as predicted in the Wantana SEE that modelled noise at the Racecourse between 35-40dB at night in The SEE also predicted an increase in 2010 to the south of Bengalla s operations as a result of mining the Wantana area (as there is reduced acoustic shielding in this area compared to normal operations in Bengalla s pit). Monitoring results in 2011 showed a decrease in noise levels in comparison to Changes in Development Consent and as per the 2010 Environmental Assessment (EA) for the Bengalla Development Consent Modification were implemented for noise criteria with the application of approved development in October During Quarter 4 Bengalla generated noise levels when weather conditions were applicable below the updated criteria. The criteria for noise levels predicted from the 2010 EA have been made a commitment under Bengalla s 2011 Development Consent. Real time environmental monitoring system noise monitor Table 11: Summary of noise monitoring results 2011 Location N01 Racecourse N03 Edinglassie N04 Denman N07 Hamilton N08 Moore Period Descriptor Criterion db 2 Quarter 1 (10-17 Feb) Quarter 2 (27 April - 23 June) Quarter 3 (11 & 29 August and 7-8 Sept) Quarter 4 (10-11 Nov and 14 Dec) Day LA eq,15min 35 IA IA 35 IA Night LA eq,15min IA IA Night LA 1,1min IA IA Day LA eq,15min NA IA <20 37 <20 Night LA eq,15min NA <20 40 NM IA Night LA 1,1min NA NM 51 NM IA Day LA eq,15min 35 IA IA IA IA Night LA eq,15min 38 IA NM IA IA Night LA 1,1min 45 IA NM IA IA Day LA eq,15min IA <20 Night LA eq,15min IA 35 <30 Night LA 1,1min IA Day LA eq,15min 35 IA <20 IA <20 Night LA eq,15min IA Night LA 1,1min IA Notes: 1. These are levels from Bengalla only, as measured in prevailing atmospheric conditions 2. Only relevant during wind speeds up to three metres per second at 10 metres or in temperature inversions up to three degrees C/100 metre and wind speeds up to two metres per second at 10 metres 3. Bold type indicates result exceeded relevant criterion, however, criterion did not apply due to meteorological conditions falling outside the nominated range 4. NM denotes Bengalla audible but not measurable; IA denotes inaudible; N/A denotes not applicable at this location. Bengalla Annual Environmental Management Report

63 3.13 VISUAL AMENITY AND LIGHTING Environmental management To manage any off site lighting impacts and ensure the visual amenity of surrounding residences is impacted as little as possible, Bengalla follows a stringent set of guidelines which are documented in the Coal & Allied procedure, Visual Management (including infrastructure design and lighting). Various management techniques are utilised for the control and minimisation of visual impacts, which include: Ensuring light casing and direction are assessed and consideration of light source observable off site is closely monitored Establishing visual bunds to improve the visual amenity of the site Monitoring light direction and impact off site by Bengalla employees travelling to and from work Training and awareness initiatives, which are provided to educate employees about the sensitivity of Bengalla s proximity to local residents and the need to minimise stray light An annual visual impact survey Nightly attended monitoring by mining personnel Ensuring all new lighting installed meets specification in Bengalla s EIS. of visual and noise impacts, particularly from Wybong Road. The purpose planted tree screen has continued to provide an effective screen throughout 2011 and only small areas of the Northern Visual bund and Wybong Road dump were distinguishable. With an increase in the works at Wantana Extension, the area has become more visible from the Bengalla Link and Roxburgh Road. The visual amenity from the Bengalla Link Road Keys Bridge may improve as the tree plantings south of the Wantana extension and adjacent to the rail line continue to mature. Vegetation from the Hunter River also provides a partial screen and the tree screen on the Bengalla Link Road continues to improve in condition. Vegetation along Roxburgh road may improve the visual amenity from as they mature. During 2011 Bengalla completed the rehabilitation of the Eastern Overburden Emplacement (EOE) area. This area faces Muswellbrook. Previously this was where the ROM was located (between the north and south waste rock landforms), and visual amenity will continue to improve as the rehabilitation becomes established with trees and pasture in the coming years. The work has reduced the visual impact of the waste rock landforms on Muswellbrook residents, with improvements seen between the 2010 and 2011 period from locations at Racecourse road and Muswellbrook South. Bengalla conducts an annual visual impact survey to assess the visual impact of the operations on various locations adjacent to the mine. Fifteen locations are assessed for the level of screening in place and the exposure of the operations to the public and impacts at each location are compared to EIS predictions, for example see Figure 38. Figure 32: Comparison of predict (SEE Modification 3) and actual 2011 visual impact from Muswellbrook Racecourse Environmental performance Bunding along the northern boundaries of the mining lease remained in place during the reporting period. This bund progresses westward to the current mining disturbance limit to ensure mining operations plan compliance and mitigation The increase in the waste rock landform has impacted on the visual amenity to Muswellbrook residents; however as the 2006 SEE predicts, the visual impact of the changes to the dumps will be reduced once rehabilitation progresses and tree screens mature. Additionally as per the Wantana Extension 2007 SEE, the Wantana extension will have a low visual impact with initial moderate visual impacts to east and south residents of the mine. The visual impacts were identified to reduce once the eastern face of the Wantana extension is rehabilitated. Bengalla Annual Environmental Management Report

64 3.14 ABORIGINAL HERITAGE Environmental management Issues relating to Aboriginal cultural heritage are managed in accordance with the National Parks and Wildlife Amendment Act 2010 and the EP&A Act via Bengalla s Aboriginal Cultural Heritage Management Plan. Bengalla will continue to comply with the mitigation and management measures outlined in its current approved Aboriginal Cultural Heritage Management Plan. Monitoring for human remains and Aboriginal Cultural Heritage material will continue to be undertaken during the topsoil stripping and overall mining processes at Bengalla in accordance with Coal & Allied EP 2.1. Archaeological and heritage assessments are undertaken prior to any new mining activities, in consultation with the local Aboriginal community. The significance of each site is assessed to determine the need for further investigation and whether there are any options for conservation. Where mining will impact upon Aboriginal sites, an Aboriginal Heritage Impact Permit (AHIP) (previously S.90 Consent to Destroy) is sought from the Director-General of the OEH. Bengalla s Aboriginal Cultural Heritage Management Plan is currently being updated as per new Modification 4 conditions. Bengalla plans to consult with the OEH and the local Aboriginal community before submitting the plan to the DP&I Environmental performance Bengalla acknowledges the cultural importance that Aboriginal archaeological sites represent to the local Aboriginal people. Sites that have been identified that do not have an AHIP and are close to mining operations are protected by fencing and signage to prevent accidental destruction and to assist in safeguarding the condition of these sites for future years. During 2011 several due diligence aboriginal archaeological surveys were conducted as part of the ground disturbance permit process that is mandatory at Bengalla. Aboriginal archaeological sites were identified in the vicinity of some bore hole and test pit sites which were required for geotechnical and soil assessment within AL13 and on Bengalla owned land. These sites were not impacted and bore hole and test pit locations were relocated to avoid any impact as per recommendations of the survey reports. Sites were also protected with an appropriate level of signage. Contractors were made aware of artefact site locations so any disturbance was avoided. Archaeological site management 3.15 NON-ABORIGINAL HERITAGE Environmental management In 2008, Bengalla prepared a European Heritage Management Plan (EHMP) in consultation with the New South Wales Heritage Council and to the approval of DP&I, which consolidated the management of European Heritage items within Bengalla s land holdings into one management plan. Two areas of heritage significance, as listed in the Heritage Act register of Heritage Orders, Hunter Regional Plan Heritage schedule and the National Trust register, are the Bengalla homestead (c1877) and Overdene property (c1860), which have both been listed as items of local significance. In addition to these homesteads, Bengalla also performs grounds maintenance on a number of other heritage areas on its landholdings including the Keys Family Cemetery. Bengalla Annual Environmental Management Report

65 Environmental performance Bengalla continued to conduct regular maintenance works around the Bengalla homestead and Overdene property throughout the reporting period. Maintenance works included pest control, quarterly pest inspections, cleaning, repairs as required and grounds maintenance (for instance, removal of weeds and fallen trees to reduce the risk of fire). During 2011 Overdene had a two metre high security fence installed, veranda removed and placed inside doors/windows and chimney sealed, and floor openings sealed. The gardens were maintained to a parkland style amenity. Twelve monthly structural (internal/external) inspections were completed at Bengalla homestead. The outside grounds were maintained and the building was professionally cleaned monthly. In 2012 continued maintenance works at Bengalla homestead will see the installation of a security fence and fire response infrastructure (water tank, pump). An existing fire alarm system will be improved. Grounds Maintenance (gardening) of the Dalmer stud, Butter factory and Keys Cemetery were completed throughout SPONTANEOUS COMBUSTION AND ACID ROCK DRAINAGE Environmental management Spontaneous combustion and acid rock drainage (ARD) are managed in accordance with the Coal & Allied procedures and the Bengalla acid mine drainage management plan. During the reporting period Bengalla continued to utilise the approved Acid Mine Drainage and Mineral Waste Management Plan (March 2007). The plan was based on the results of analysis of materials in 2006 and was completed with a technical expert from the Rio Tinto Technology and Innovation Team. The plan outlines what are considered environmental hazards at Bengalla and how these should be managed. Coal and other carbonaceous materials react with oxygen in the atmosphere to produce heat. In some cases heat can be trapped and the temperature of the material rises. This may lead to conditions that result in the coal spontaneously combusting. Conditions favourable to producing ARD may occur when pyritic material is exposed to the atmosphere and water which react to produce acidic surface water or groundwater flows. Bengalla homestead Bengalla employs best practice procedures that minimise the likelihood of either of these processes occurring within the constraints of the overall mining method. As a broad principle, known reactive materials are covered with thick layers of inert waste material. The maintenance of inert material over potentially reactive waste (as per design criteria) significantly reduces the risk of spontaneous combustion and ARD at Bengalla Environmental performance Overdene homestead security fencing installed Bengalla manages the potential for spontaneous combustion by limiting, where possible, the time during which coal is exposed to the air, whether that be fresh coal in the high wall or managed reject in the mineral waste dump. In addition, weekly inspections are completed by the mine geologist for visual indicators of the spontaneous combustion. During 2011 there was one occurrence of hot coal in the north end of the pit. Bengalla Annual Environmental Management Report

66 3.17 BUSHFIRE MANAGEMENT The Coal & Allied generic bushfire management plan applies to all Coal & Allied managed operations. The objectives of this management plan are to minimise the risk of bushfires and rapidly control outbreaks should they occur. Importantly, the plan recognises the need to protect people, property and assets, along with areas of heritage value and areas of threatened flora and fauna. Bengalla has in place a number of effective measures for the prevention and control of bushfires, which include periodically slashing roadsides verges, maintaining tree-lot undergrowth areas free of grass and fuel build-up and grazing of pastures. A fully equipped mobile fire-fighting unit, along with a fleet of three 80,000 litre water carts is also on hand should a fire outbreak occur within the lease holding. During the reporting period one small grass fire across 3.74 hectares of land occurred. The incident was managed well with the fire being extinguished promptly. One small fire also occurred in the CHPP work area. This was also managed well with the fire being extinguished. Apart from the two incidents, there were no bushfires or burning of unwanted timber or vegetation. Vegetation felled for mining, was removed and placed into the rehabilitation stockpiles for habitat material COMPLAINTS, INCIDENTS AND RISKS Moderate Risks that lie within the risk acceptance threshold and require active monitoring. The implementation of additional measures could be used to reduce the risk further High Risks that exceed the risk acceptance threshold and require proactive management. Includes risks for which proactive actions have been taken, but further risk reduction is impractical. However active monitoring is required and the latter requires the sign-off from business unit senior management Critical Risks that significantly exceed the risk acceptance threshold and need urgent and immediate attention Environmental performance There were 62 environmental incidents or near miss/hazards reported at Bengalla during A summary of environmental incidents for the 2011 reporting period is outlined in Table 12. All incidents during the reporting period and the actions taken for each are outlined in Appendix 9. Table 12: Environmental incidents 2011 Category 2011 Low 51 Moderate 11 High 0 Critical 0 TOTAL Environmental management An important component of Bengalla s environmental training programme is to provide employees with an awareness of environmental issues, including the identification of environmental incidents and risks. This training is provided to all personnel including contractors. Awareness and reporting of environmental incidents across the site has seen a notable improvement. The classification of environmental incidents is based on Rio Tinto environmental incident reporting classifications. Incidents are classified into four categories. These are: Low Risks that are below the risk acceptance threshold and do not require active management. Certain risks could require additional monitoring Bengalla considers the reporting of incidents and near misses a leading environmental management tool, especially if the majority of these are minor incidents, as it can assist in preventing larger more serious incidents. It also demonstrates personnel are aware of environmental management requirements and can help identify areas requiring improvement. During the reporting period there were four near misses/hazards reported. The total number of incidents reported in 2011 is higher than compared with 2010, 2009 and 2008, with 35, 50 and 47 incidents reported respectively. Bengalla had no high or critical ranked incidents in Of the 62 incidents/risks that occurred in 2011, 45 related to hydrocarbon spills, three were related to blasting, one was Bengalla Annual Environmental Management Report

67 related to dust, two were related to non-captured monitoring data, one was related to fume/dust (fire), three were related to wildlife, two were related to water, one was related to coolant and four were related to waste water/effluent. As with previous years, hydrocarbon spills are the most common environmental incident. Of the 45 hydrocarbon incidents two spills were greater than 500 litres, 12 spills were between 100 and 500 litres, five spills were between 50 and 100 litres, while the remainder of spills were less than 50 litres. Throughout 2011 there has been an increasing focus on the reporting of minor incidences and hazards, this is aimed at increasing the number of hazards identified and controlled. Bengalla received a total of 31 complaints during 2011 which is a reduction compared to 2010, in which 35 complaints were registered. A summary of key concerns recorded from complaints for the 2011 reporting period is outlined in Table 13. All complaints during the reporting period and the actions taken for each are outlined in Appendix 10. Table 13: Environmental complaints 2011 Complainants Issue 2011 Blasting 13 Fume (Blasting) 1 Dust 9 Noise 5 Other 3 Total 31 Bengalla Annual Environmental Management Report

68 3.19 WASTE MANAGEMENT tonnes, which is a 1.3 per cent reduction since Environmental management Bengalla operates a comprehensive waste management system that consolidates waste management into a single contract. The system includes the day-to-day management of all major regulated and industrial waste streams and recycling generated by the operation. A large focus of the waste management programme is placed upon correct handling, storage, segregation, recycling and reuse of materials. To achieve this and improve upon waste recycling performance, employees are provided with regular training and awareness courses on different aspects of waste management Environmental performance The major waste streams recycled at Bengalla in 2011 were effluent, scrap metal, waste oil and general waste as shown in Table 14. A breakdown of the monthly waste collection and recycling performance at Bengalla during 2011 is illustrated in Table 14. During the reporting period waste management presentations were presented to contractors and site personnel. The presentations aimed to reinforce correct waste management on site. Additionally, identification of any specific requirements (eg bins, locations) that could improve the waste management performance was sought. Glove recycling at Bengalla, which was initiated in 2008 with the New South Wales not for profit organisation Flagstaff, continued in 2011, with a number of other mines in the Hunter Valley now considering implementation based on the success of the programme at Bengalla. In 2011 material recycling from Bengalla was 966 tonnes, a total of 78.9 per cent recycled waste. This percentage is based on material that leaves site. The Bengalla recycling target of 90 per cent was not reached for 2011 due to an increase in comingled recycling and a reduction in scrap steel and timber. The total weight of material disposed at landfill sites was 229 Bengalla has seen a steady increase in most waste streams over the last five years. This can be attributed to a number of reasons including an increase in the mobile equipment fleet and an increase in servicing schedules. During 2011 an increase in a number of waste streams (eg general rubbish, comingled waste) can be accounted for due to expansion works including an additional mining production fleet. Table 14: Waste Stream Waste Stream 2007 Quantity (Tonnes) 2008 Quantity (Tonnes) 2009 Quantity (Tonnes) 2010 Quantity (Tonnes) 2011 Quantity (Tonnes) Comingled recycling (including paper, glass, cardboard and aluminium cans) Coolant Oily Rags Oil Filters Oily Water/Water Effluent Waste Oil Air Filters Scrap Batteries Degreaser Toner Cartridges Empty Oil Drums Scrap Metal General Rubbish Bengalla Annual Environmental Management Report

69 4.0 STAKEHOLDER RELATIONS 4.1 COMMUNITY RELATIONS Bengalla has a strong commitment to responsibly managing environmental and social impacts of its mining operation. This commitment is further outlined under Coal & Allied s communications procedure (RTCAHSEQ09). Bengalla s community relations programme is focused on building enduring relationships based on mutual respect, active partnerships and long term commitment. In practice this means: Having robust relationships with our communities of interest this requires understanding the issues and needs of different stakeholders as well as active engagement. Effectively contributing to communities this requires understanding the socio-economic environment and community s vision of the future and providing contributions that are sustainable and build long term community capacity. These objectives reflect the Rio Tinto Communities Standard, which provides a framework for community activities across all operations. They also form the primary goals for Bengalla and are reflected in both the Muswellbrook Community Relations Plan and various stakeholder engagement plans specific to Bengalla. During 2011 Bengalla provided information to the community and promoted active two-way communication through a range of consultative measures as detailed in Table 15. Bengalla is a strong proponent within the Muswellbrook community and regularly seeks feedback relating to its current performance, along with suggestions and recommendations for improvement to satisfy social expectations. Consultation with the community is acknowledged by Bengalla as an ongoing partnership which extends to more than financial sponsorship; it comprises regular phone conversations with residents, communication of monitoring results, informal meetings, educational presentations and speeches and site visits by residents and local schools. Information specific to Bengalla is also available via the Coal & Allied website Further information, including monitoring results and reports is available from the Muswellbrook and Denman library. Table 15: Bengalla's community consultation measures Stakeholder Adjacent Residents Muswellbrook Muswellbrook Shire Council Government Representatives Aboriginal Groups Employees BMC Corporate Environmental NGOs Neighbouring Industry Media Method Personal visits Newsletters Coal & Allied website Newsletters Reports and meeting information accessible in the Muswellbrook and Denman libraries Community Open Day and general community sponsored events Upper Hunter Show and Bursting with Energy Expo Site tours and presentations Local media; radio and newspapers Community Consultative Committee Presentations at local schools Coal Mine GM Forum Personal discussions, presentations and site tours Newsletters Coal & Allied website Offer of presentations and site tours Scheduled external reporting of monitoring results and performance Newsletters Coal & Allied website Meetings and site inspections Newsletters Toolbox talks Induction presentations Information boards, newsletters Open day and family day Coal & Allied website Internal reports Coal & Allied/Rio Tinto Coal Australia website Newsletters Presentations and site tours Newsletters Presentations and site tours Attendance at meetings Coal & Allied/Rio Tinto Coal Australia website Newspapers, radio, newsletters, CCC minutes, Coal & Allied website Bengalla Annual Environmental Management Report

70 4.2 COMMUNITY CONSULTATIVE COMMITTEE In line with Bengalla s programme of regular consultation with the local community is the operation of the Bengalla Mine Community Consultative Committee (CCC), which met on four occasions during This important component of Bengalla s environmental management allows the opportunity for community representatives to discuss issues of concern or areas that need to be focused upon by Bengalla management. The Bengalla CCC is operated in compliance with the conditions of DA211/93 (Modification 3) and consists of Muswellbrook residents, representatives of government bodies, local landholders, special interest groups and Bengalla representatives. The group meets to discuss mine development and monitoring results relating to environmental performance. Minutes of each of these meetings are available at the Muswellbrook and Denman Library and on the Coal & Allied website Representatives who attended one or more of the four Bengalla Mine CCC meetings in 2011 included the following persons: M Ogg, Deputy Chairperson (MSC) C Bates (Community Representative) K Leckie (Community Representative) N Downs (Community Representative) C Flemming (MSC) Tracey May (MSC) A Sutton (Bengalla - GM) D Day (Bengalla- Community Relations) A Harburg (Bengalla- Environment Specialist) J Lawler (Bengalla Services). Wednesday, 23 May 2012 Wednesday, 22 August 2012 Wednesday, 21 November COMMUNITY CONSULTATION Newsletters In order to maintain the lines of communication between employees at Bengalla, the production of the Upfront staff newsletter is compiled in-house to inform team members of a variety of issues of interest to employees and their families. In 2011, four editions of the Upfront newsletter were published. The newsletter provides employees with an update on mine planning, safety, environmental performance and community events that are relevant to employees and their families and is a forum to answer questions from the wider community. The Coal & Allied community newsletter Muswellbrook edition was distributed three times during The publications provided information to the community on Coal & Allied and Bengalla activities including rehabilitation and tree planting with students at Bengalla, Book Week, Try a Trade, working with the Cancer Council, the Bengalla Modification, Bursting with Energy Expo and the Bengalla engineering scholarship. The incorporation of other aspects of Bengalla are relayed to a wider community audience via the media, which includes newspaper articles, as well as site visits to ensure the public are regularly informed of developments at the operation Coal & Allied community engagement In early 2005, the Bengalla Mine CCC developed a newsletter, which provides immediate neighbours with an update on topics discussed at each meeting. These newsletters continued to be published quarterly throughout The newsletters have been well received with feedback being provided to Bengalla CCC members from the wider community. In 2012 it is proposed four Bengalla CCC meetings will continue to be held and are scheduled as follows: Wednesday, 22 February 2012 Members of the community are encouraged to engage in ways that suit them and a number of potential points of contact have been established. The Coal & Allied shopfronts in Muswellbrook (19 Bridge Street) and Singleton (127 John Street) continue to ensure Coal & Allied is an active and accessible member of the community. Coal & Allied operates a free call community information line This information line provides an avenue for members of the community to seek information regarding Bengalla Annual Environmental Management Report

71 Bengalla and each Coal & Allied site. This number is advertised regularly in local newspapers and community newsletters. Bengalla operates a blasting hotline ( ) as required by the development consent D211/93 (Modification 4) section 3, condition 15b. This information provides details of the next scheduled blast at Bengalla. This number is advertised regularly in the local newspaper Upper Hunter Show and Expo In March 2011 Bengalla and Coal & Allied were represented at the annual Upper Hunter Show. Bengalla has been the major sponsor of this community event since In addition, Bengalla operates a free call 24 hour environmental contact line ( ) for community issues relating to mining operations. This number is advertised in the local newspaper, phonebook and external newsletters and allows for any member of the community to lodge an official complaint 24 hours a day, seven days per week Bengalla Community Open Day Students at Bursting with Energy Expo 2011 The community open day, which is held every two years, provides community members with an opportunity to see and experience a working coal mining operation, ask questions and be informed about the progression of Bengalla mine and new projects arising. The Bengalla community open day was held on Saturday 30 October 2010 and was attended by approximately 2,000 community members. The open day was held at the Muswellbrook showground with a number of displays and activities provided by the mine, service providers and community groups. Entertainment was provided by a local Muswellbrook band as well as students from St Joseph s High School, Aberdeen. Bus tours departed the Muswellbrook showground every 15 minutes giving more than 900 people an informative mine tour including a bird s eye view of Bengalla s mining operation and the opportunity to get up close to a 280 tonne class haul truck. This event will be held again in October The Bursting with Energy Expo, initiated in 2002, is held at the Upper Hunter Show. This event is organised and sponsored by the local mines and power station. The Expo involves static and interactive displays, educational workshops for local school students and information relating to various aspects of the mining operations represented in the Muswellbrook Shire. The Expo is a positive way to showcase how Bengalla works closely with other Muswellbrook mining operations to build upon and foster enduring community relationships Muswellbrook Race Day Bengalla sponsored the Upper Hunter Racing Festival in August Held at the Muswellbrook Race Club, this sponsored event enabled donations to be raised and provided directly to the Muswellbrook Scouts and Muswellbrook Girl Guides Educational site tours and programmes Bengalla continued to host various site presentations and tours throughout the year catering for local and regional schools, local groups and specialist visitors. Some of these groups included students from the St Joseph s High School Aberdeen, representatives from the Community Consultative Committee and Muswellbrook Shire Council representatives. Bengalla Community Open Day 2010 This is an important component of Bengalla s community Bengalla Annual Environmental Management Report

72 consultation to improve community understanding and educate visitors of the challenges, mining processes, equipment, planning and immense co-ordination and teamwork required to ensure the smooth operation of an open-cut coal mine. In October 2011 Muswellbrook South Public School visited Bengalla to plant approximately 120 native trees on Bengalla s eastern rehabilitation land. Bengalla provided the plants to the school in August for the students to water and nurture in the school s greenhouse. This followed Bengalla s support to the school in turning a garden into an organic vegetable garden and providing a gardening programme for the students. Youngsters at the 2011 bird watch event National Tree Day planting National Tree Day is an important event where Bengalla takes the opportunity to demonstrate its commitment to the community and the environment by helping plant and care for native trees and shrubs. On 31 July 2011 Bengalla employees assisted Muswellbrook Shire Council with planting in excess of 1,000 trees at Karoola Wetlands. Bengalla Mine also worked with students from St James Primary School to plant 400 trees on Bengalla land along Overton Road. Bengalla employees with students from Muswellbrook South Public School Bird watch event Bengalla held its fourth bird watch event in September Although this was Bengalla s fourth event, the Rio Tinto bird watch program has been running for 11 years. Established in 2000, the event is an initiative developed through a partnership with Birdlife International. The event was held in open woodlands west of the Bengalla mine. Members of the Hunter Bird Observers Club joined with employees and families to assist with sighting and identification of bird species and 35 different species were sighted and recorded on the day. This event will be held again in September Bengalla employees and their families at Karoola Wetlands 4.4 MINE LIFE PLANNING In 2005 Rio Tinto released environmental standards and the requirement for all operations globally to have in place a working closure plan strategy. In order to develop the Bengalla mine life plan a steering committee and working group were established, consisting of multidisciplinary specialists both from Bengalla and Rio Tinto Coal Australia. These subject matter specialists provide strategic input into the mine life planning process, ensuring a wide range of aspects are identified and addressed. These aspects include: consultation, communication, socio-economics, final landform and management, rehabilitation and revegetation, water Bengalla Annual Environmental Management Report

73 management, infrastructure, employee and community relations and cost estimates. The closure vision for Bengalla is: To create sustainable post-mining opportunities through consultation with the community, ensuring a final land use compatible with the surrounding environment. The mine life planning process has been presented to the Bengalla CCC for feedback and comments, and will be addressed annually at meetings throughout the life of the mine. The mine life plan continues to be a living document and will be updated regularly to ensure it progresses with the mine and includes changes that occur throughout the mining process and within the community Co al & Allie d so ci al reporting The Coal & Allied Sustainability Report describes in detail the social and economic initiatives undertaken by the company. Sustainable development is a not a 'here today, gone tomorrow' phenomenon - it is part of the way we work. Information about Coal & Allied's approach to sustainable development in 2011, including targets and results, is available on the Coal & Allied website ABORIGINAL COMMUNITY LIAISON Coal & Allied recognises the cultural significance of the land and consults with the local Wonnarua people prior to the commencement of new projects and in relation to the management of archaeological and cultural heritage sites. This includes working together in surveys, excavations and the salvage of artefacts. Throughout the year, Coal & Allied utilised the cultural heritage database that was developed in 2003 so sites can be managed and protected in an effective and efficient manner. This database is periodically updated and includes site locations, descriptions, archaeological and cultural surveys and associated reports. Bengalla has installed archaeological signs and fencing surrounding known archaeological and cultural heritage sites. Fencing of these sites is intended to protect sites from any forms of unintentional disturbance. 4.6 SOCIAL ECONOMIC CONTRIBUTIONS AND ACHIEVEMENTS During 2011 Bengalla s employees numbered 367 full time staff. Bengalla encourages its employees to live locally and 51 per cent of employees reside in the Muswellbrook Shire. Operations at Bengalla have contributed over A$40.9 million to the Hunter Region s economy through rates and royalties. 4.7 RECOGNITION AND SHARING SUCCESS Coal & Alli e d Community Development Fund In 2011 the Coal & Allied Community Development Fund (CDF) continued its contribution to building capacity in our region. This year the Coal & Allied celebrated its 12th year of operation, and since 1999 has committed more than $11 million into community projects in the region, which included over $1.7 million in 2011 for 11 new partnerships with community groups and organisations which will help deliver long term sustainability in the Hunter. The Coal & Allied CDF funding round IV, being for , concluded this year. In November 2011, Coal & Allied committed to continuing the CDF for a further three years. Due to the quality of the programmes being funded Coal & Allied has increased this voluntary funding commitment to $4.5 million for the period Through working together with our community partners we are delivering projects that are important to our local communities, encompassing the local government areas of the Upper Hunter, Muswellbrook, Singleton, Cessnock and Maitland. Bengalla Annual Environmental Management Report

74 Figure 33: Coal & Allied Community Development Fund new investment 2011 Coal & Allied Community Development Fund Partners 2011 Programme Regional Community Grants Officers Upper Hunter Education Fund Leadership Awards Upper Hunter Science and Engineering Challenge The Phoenix Project Upper Hunter Beef Bonanza Hunter Youth Challenge River Paramedics The Healthy Dads, Healthy Kids Community and Harmony at School Hunter Men s Shed Expo Coal & Allied Community Development Fund Scholarships Community Outreach Programme Building Better Businesses in the Hunter Orchestra Camp Upper Hunter Business Investment Advisory Forum Upper Hunter Education Fund Singleton Business Development & Funding Coordinator Partner Singleton, Upper Hunter, Muswellbrook & Cessnock Councils Upper Hunter Education Fund Inc University of Newcastle University of Newcastle Singleton High School The Australian Outward Bound Development Fund Conservation Volunteers Australia Hunter Medical Research Institute The Song Room Mens Shed University of Newcastle Cessnock Gallery Hunter Region Business Enterprise Centre Inc Upper Hunter Conservatorium of Music Hunter Founders Forum UHEF inc Singleton Shire Council Partnerships approved in 2011 to commence in 2012 Programme Hunter Valley Creative Communities Business Growth Seminars Coal & Allied Upper Hunter Science & Engineering Challenge and SMART programme Microenterprise Development in the Hunter Cessnock Grants Officer Project Upper Hunter Shire Engagement Project Community Liaison and Grants Officer Project River Paramedics Project Partner Song room Hunter Region BEC University of Newcastle Many Rivers Cessnock City Council Upper Hunter Shire Council Muswellbrook Council Conservation Volunteers Australia Bengalla Annual Environmental Management Report

75 4.7.2 Aboriginal Development Consultative Committee In 2011 the Aboriginal Development Consultative Committee (ADCC) focused on reviewing some of Coal & Allied s multiyear projects and building strategic relationships and partnerships to enable the implementation some new bigpicture projects in Strong focus was also given to better understanding the aspirations and some of the key issues for Aboriginal communities in the Upper Hunter. The ADCC committed 100 per cent of Coal & Allied s available funds ($575,000) to new and existing projects and programmes in Approximately 80 per cent of these projects and programmes were aligned to Coal & Allied s highest funding priorities, ie Education, Training and Employment, Community Development, and Arts and Cultural Development. Projects and programmes were well distributed across the three Upper Hunter local government areas. Payments by Area 2011 local schools, including the Singleton Schools Aboriginal Dance Group, which Broke Public School continued to implement throughout 2011 and the Warrae Wanee School Readiness Programme, a new ADCC partnership with Muswellbrook South Public School. Coal & Allied ADCC Community Partners in 2011 Programme Exploring University Pathways My Future Social Determinants of Indigenous Health Conference The Next Steps Ungooroo Labour Hire Initiative Upper Hunter Aboriginal Community Development Worker Warrai Wanni School Readiness Programme Wanaruah Exhibition 2011 Wanaruah Local Aboriginal Land Council Resource Room ROAR Programme Upper Hunter NAIDOC Week programmes Hunter Region NAIDOC Week Women s Dinner Partner Hunter Valley Youth Express Upper Hunter Community Health Liaison Officer Ka-Wul Cultural and Education Resource Centre Ungooroo Aboriginal Corporation Alliance People Solutions Muswellbrook South School Ungooroo Aboriginal Corp in partnership Merriwa Central School Muswellbrook 38% Upper Hunter 17% Singleton 45% Art Catalogue 2011 Hunter Indigenous Jobs Market 2011 NSW Rugby League Knockout National Youth Touch Football Championships 50th Anniversary Collage Denise Hedges Regional Development Australia Googars Rugby League Nerida Saunders Barry and Helen French Partnerships approved in 2011 to commence in 2012 Social and Emotional Wellbeing Worker Upper Hunter Drug and Alcohol Service Figure 34: Coal & Allied ADCC investment 2011 In 2011, the ADCC and Mt Arthur Coal (BHP Billiton) entered a partnership to enable Upper Hunter Drug and Alcohol Service (UHDAS) to employ and train an Aboriginal person to work with Aboriginal clients and communities in the Upper Hunter. This is the second partnership between the ADCC and BHP Billiton, the first being the Partnerships for Success (Polly Farmer) programme in Muswellbrook. Such partnerships are expected to be an increasingly important feature of long term capacity building projects. NAIDOC Week programmes were celebrated again in Singleton and Muswellbrook communities and most schools across the Upper Hunter. A number of stand-alone programmes have grown from our NAIDOC partnerships with Community Housing Traineeship Microfinance Development in the Hunter Community Partnerships Compass Housing Inc Many Rivers Microfinance Coal & Allied has retained an active partnership programme in 2011 with key organisations that provide a service valued by the community and have an approach to their business that is aligned with Coal & Allied principles. The ongoing partnership with Hunter based organisations demonstrations demonstrates Coal & Allied s commitment to the Hunter Region. Bengalla Annual Environmental Management Report

76 Partnerships include: Hunter Medical Research Institute (HMRI) The HMRI is an umbrella organisation that supports medical research in the Hunter. By contributing to the Institute, Coal & Allied recognises the importance of the research to the overall health of the Hunter s population. Hunter Valley Research Foundation (HVRF) In 2001, Coal & Allied continued its sponsorship of the HVRF. The HVRF is a not for profit organisation whose research assists organisations in the region with stakeholder engagement and business development. Westpac Rescue Helicopter Service Coal & Allied is a major sponsor of the Westpac Rescue Helicopter Service and is pleased to support a service which helps protect the wellbeing of employees as well as the wider Hunter community. Coal & Allied Newcastle Knights Community Alliance 2011 heralded the final year of Coal & Allied s highly successful Newcastle Knights Community Alliance. This was a unique partnership that set a new benchmark in sporting sponsorships and enabled both organisations to share different skills and resources, as well as common interests and objectives to make a positive contribution to the Hunter Valley. In the first NRL trial match to be held in Muswellbrook in almost 20 years, the Community Alliance brought the Knights to Muswellbrook in February 2011 to play a preseason trial match against the Cronulla Sharks. A crowd of around 4,000 local footy fans packed into Muswellbrook s Olympic Park to enjoy the event. The Coal & Allied Westpac Rescue Helicopter in full flight Hunter Central Rivers Catchment Management Authority (HCRCMA) Coal & Allied and the HCRCMA entered a partnership agreement in 2001, with the joint objectives of achieving on-ground environmental outcomes in areas of mutual influence, sharing information and raising awareness within each organisation of the role and contribution of the other and demonstrating the community and industry can work successfully together to deliver environmental outcomes. The University of Newcastle (UoN) Coal & Allied and the UoN entered into a partnership agreement in The purpose of the agreement is to facilitate and promote cooperation between the University of Newcastle and Coal & Allied in career awareness raising, engaged learning (including Work Integrated Learning opportunities), professional development, research and scholarship programmes. Spectators enjoy the Coal & Allied Newcastle Knights NRL trial match in Muswellbrook Donations and Sponsorships As part of its approach to community engagement, Coal & Allied contributes to programmes identified by and preferably in partnership with local communities. Coal & Allied s belief is that effective partnerships stem from shared goals, mutual commitment and proven outcomes. Coal & Allied supports a range of organisations that share a mutual goal of delivering sustainable outcomes for the communities in which it operates. The Bengalla community support team, established in 2002, aims to assist the enhancement of the local community, Bengalla Annual Environmental Management Report

77 promote awareness of Bengalla s contribution to the Upper Hunter and to create sustainability and self-support of existing and new community organisations and groups. The Bengalla community support team consists of 13 employees, who meet regularly to discuss requests from the local community for donations, sponsorship and in kind contributions. A number of diverse and innovative projects and events have subsequently developed through sponsorship funding and assistance from Bengalla community support team members who provide their time and expertise to support these initiatives. Each team member is an active ambassador for Bengalla in the local community and contributes to Bengalla s objective of involving and supporting the local community. The support provided to the local community during 2011 is outlined in Table 16. Table 16: Bengalla's local community investment 2011 Grouping $ Contribution in 2011 Education 85,209 Social 94,440 Environment 6,000 Economic 1,500 Total $187,149 Bengalla Annual Environmental Management Report

78 5.0 REHABILITATION 5.1 ENVIRONMENTAL MANAGEMENT 5.2 ENVIRONMENTAL PERFORMANCE The area of disturbance at Bengalla has been classed as historically overgrazed Class IV and Class V land with open woodland vegetation. Prior to areas being cleared, an assessment is made on the quantity and volume of potential suitable hardwood timber, which may be utilised for the purposes of farm fencing. Areas to be cleared are pegged by the mine surveyor before being cleared by a bulldozer. Topsoil is transferred directly to shaped areas when possible or windrowed and then relocated to a topsoil stockpile within three months of stripping. Clearing is kept to a minimum to avoid areas being left open for extended periods of time. Any cleared vegetation deemed unsuitable for fencing material is then utilised in rehabilitated areas to encourage potential faunal habitat. Topsoil is stripped in accordance with the Bengalla mining operations plan and Environmental Management System. All employees and contractors closely follow the approved Coal & Allied topsoil stripping procedure and the practical operators guide on topsoil management at Bengalla. Topsoil stripping is not undertaken if wind speeds have the potential to cause excessive dust, which may leave the lease and encroach on private properties. Table 17: Bengalla rehabilitation summary Introduction Bengalla rehabilitated hectares of new land in This was slightly more than the 2011 target of 36 hectares. Rehabilitation methods and procedures were undertaken in accordance with Bengalla s mining operations plan and the Coal & Allied Rehabilitation Procedure and Bengalla s approved Rehabilitation and Landscape Management Plan. At the end of 2011 the total area of land rehabilitated at Bengalla was hectares. Further information is included in the completed annual rehabilitation report form Table 17 with the rehabilitation status at the end of 2011 shown in Figure 35. Weather conditions and rainfall were beneficial for rehabilitation in 2011, similar to conditions in During 2011 rainfall was above average and was consistent, soaking rain. As a result of the favourable weather conditions, establishment of new rehabilitation has been strong in some areas. Sections of rehabilitation from previous years have also progressed. Established native tree areas continued steady growth, with tree stands becoming increasingly evident across the rehabilitation area. Cumulative Area Affected (hectares) To Date at End 2010 Completed in (estimated) MINE LEASE AREA Mine Lease(s) Area 1, , , ML1469 (18.38ha), ML1397 (1018.5ha), ML1450 (177.44ha), ML1592 (1.04ha) DISTURBED AREAS Infrastructure Area (-27.73)* 5 Active Mining Area (-28.14)** 15.6 Waste Emplacements (-1.66) 35 Tailings Emplacements N/A N/A N/A ALL DISTURBED AREAS (-65.96) 55.6 REHABLITATION PROGRESS Total Rehabilitated Area *** 30 SURFACE OF REHABILITATED LAND Pasture and Grasses Native Forest/Eucalypt N/A No tailings dams at Bengalla. * Infrastructure area decreased due to audit on Survey polygons. **Active Mining areas decreased since it moved to Waste Emplacement area. *** Actual rehabilitated area in 2011 was 37.1 hectares but this area was also affected by Survey polygon audit. Bengalla Annual Environmental Management Report

79 Figure 35: Bengalla Rehabilitation as at December 2011 Bengalla Annual Environmental Management Report

80 The hectares that were rehabilitated in 2011 involved major earthworks, establishment of drainage structures and the final landform being contoured. Following the final shaping of the landform, topsoil was placed down at a thickness of 150mm. The whole area was sown with a summer seasonal pasture crop of Shirohie Millet. This Millet species was identified as being suited to the soil conditions and would provide a cover crop to minimise erosion, dust and stabilise the soil. Prior to planting, Bengalla completed soil tests of topsoil for its rehabilitation areas in 2011 and results were used to guide the gypsum and fertilizer application. The fertiliser rates and seeding rates were applied based on the soil tests and following agronomic advice. The seasonal crop was fertilised with 250 kilograms per hectare of Granulock 15 and a general fertilizer used throughout the Muswellbrook area. Following requests from the Muswellbrook Shire Council, and the Development Consent approval, it was agreed that the eastern face would be planted to a treed environment. The summer crop was planted to act as a cover until the autumn period, the time best suited for sowing tree species. rehabilitation on the northern and southern WRLF s was identified as being in good condition with excellent vegetation cover. Within both the northern and southern WRFL areas, minimal erosion was identified. The recent areas of rehabilitation (ROM infill) were identified to require some remedial work in relation to weed growth which included predominantly annual (broadleaf) species and Galenia. Remedial actions in the area will take place in 2012 in which campaign spraying programmes will take place. The area of identified in the audit will be sprayed and maintenance spraying will take place as part of Bengalla s annual weed spraying programme. The audit identified 33 areas throughout the north, ROM infill and south dumps that require remedial works. The remedial works identified predominantly weed growth/control issues. Out of 33 areas, only six areas were identified with the requirement to undertake remedial erosion works. Recommendations from the 2011 Rehabilitation Audit will be progressed in Rehabilitation audit Vegetation clearing Bengalla undertakes an annual audit of the rehabilitation to assess its ongoing success and identify areas that need remedial work. External consultants were engaged to complete the audit of the north, south and ROM infill waste rock landform (WRLF) in December The audit was aimed at assessing rehabilitation overall and (not at the transect level) providing recommendations for remedial work. This audit is a reconnaissance level/on site walk through assessment, which includes observations of rehabilitation and some design recommendations for remediation of failed areas. The audit also includes the review of Bengalla s initial rehabilitation completion criteria and other relevant statutory rehabilitation obligations. An assessment was then made of the current rehabilitation areas against these criteria and obligations. Review of the following documents containing these obligations and criteria was undertaken: Mining Operations Plan (MOP) Development Consent DA211/93 Environment Protection Licence (EPL 6538) Rehabilitation and Landscape Management Plan. Good conditions have continued since 2010 into 2011, with higher rainfall and lower summer temperatures. Overall, the During the reporting period Bengalla disturbed an area of hectares. This clearing was undertaken for the next pit pre-strip, infrastructural areas, a new explosives compound and the dragline shutdown area. Bengalla continued managing all site disturbances via the ground disturbance permit system. Topsoil stripped during 2011 was placed at designated stockpiles in accordance with the mining operations plan or used on rehabilitation, with all topsoil stripping and topsoil stockpile volumes continuing to be tracked (and mapped) monthly via the survey reports and topsoil stockpile register Rehabilitation monitoring During 2011 Bengalla engaged external contractors to undertake monitoring of the rehabilitation at Bengalla. Monitoring is undertaken to assess the long term viability of the rehabilitation and to collect data that demonstrates standards, milestones and overall objectives of the rehabilitation have been met. The method of monitoring used during 2010 was based on ACARP Hunter Valley Project C13048 Development of Rehabilitation Completion Bengalla Annual Environmental Management Report

81 Criteria for Native Ecosystem Establishment on Coal Mines in the Hunter Valley. This study delivered a set of guidelines that address the requirement of mining companies for developing clear rehabilitation objectives and native ecosystem completion criteria relevant to mine closure and relinquishment; and monitoring programs that verify that these have been achieved. Soil and vegetation results are compared to proposed completion criteria as outlined in Bengalla s Rehabilitation and Landscape Management Plan and results from the analogue site. In 2011 monitoring of rehabilitated continued, in order to identify how areas are progressing in relation to becoming functional self-sustaining systems. The method used to monitor rehabilitation at Bengalla is Landscape Functional Analysis (LFA). This monitoring is based on the natural processes involved in surface hydrology, rainfall, infiltration, runoff, erosion, plant growth and nutrient cycling. The LFA method used is best described in the procedure developed by D.J.Tongway & N.L Hindley, which is titled Landscape Function Analysis: Procedures for monitoring and assessing landscapes, with special reference to minesites and rangelands, and published by the CSIRO, Canberra. The LFA method of rehabilitation monitoring provides for quantitative measurement of how the rehabilitation is progressing towards a functioning system. The LFA method provides a scientifically robust platform for assessment, and allows for measurable comparison against Bengalla s completion criteria. The monitoring programme in 2011 continued monitoring on the same sites which were used for the previous years (2009, 2010) three long term monitoring plots (established in 2008) in the rehabilitation and one analogue plot site outside the mining lease in an area of premining land use. The monitoring plots are assessed for many parameters including soil surface condition (ability to trap/hold nutrients) percentage of leaf litter, woody species density, canopy cover and habitat complexity. The results from the monitoring plots are then compared to the analogue site. Pasture section on south WRLF progressing well Figure 36: Rehabilitation monitoring and plot design The monitoring and report identified recommendations for improving the rehabilitation. The primary recommendations following the rehabilitation monitoring were: To maintain management of weed incursion into the areas Increase habitat complexity and base cover (forested sites) Adjust fertiliser application rates Increase incorporation of organic matter into the soil (forested sites) Implement techniques to improve soil water holding capacity and water infiltration Tree screening Screening is essential to mitigate visual intrusion and provide a greater aesthetic appeal to the surrounding mine site. Tree screens planted prior to mining are continuing to show good progress with satisfying growth and successful survival rates. Since 1999 Bengalla has planted more than 58,000 trees near the operations and in the catchment of the Hunter River. During 2011 there were 520 trees planted at Bengalla to improve visual amenity and to reduce the visual impacts of the mine from exposed road side locations. Tree planting was completed along Overton Road (east of mining area) and was completed with the assistance of St James Primary and Muswellbrook Public School. Seedling species planted from tube stock included Eucalyptus grandis, Allocasuarina luehmannii and Acacia decurrens. The tree plantings will improve visual amenity of the area as they mature. Bengalla Annual Environmental Management Report

82 Eastern Face rehabilitation works completed December 2011 Bengalla Annual Environmental Management Report

83 6.0 PROPOSED ACTIVITIES MINE DEVELOPMENT Activities proposed for 2012 are consistent with DA211/93 (Modification 4) and the approved mining operations plan and include: Pit progression further to the west through normal mining activity Continuation of mining of the Wantana Pit Progressive backfilling and rehabilitation of the e a s t e r n lo o p a t s o ut h r o a d and new southern overburden emplacement area associated with Modification 4. Rehabilitation and disturbance areas are anticipated to conform to the current Mining Operations Plan (MOP) during Locations of rehabilitation works will be completed as areas and suitable materials become available. The dragline will commence the 2012 calendar year in the Broonie pass of strip 21 Block 17. After completion of two blocks the dragline will move north into the Vaux, the dragline will then move south and mine Bayswater 1 parting to Block 16, It will then continue north uncovering the remaining Broonie/Bayswater, it will then relocate south to continue on the Wynn and Edderton passes. Strip 21 will be completed in August The dragline will complete 2012 in strip 22 northern Vaux pass. The four excavators and a loader combined with a fleet of up to 28 trucks will be used primarily for the removal of pre-strip material and coal. Waste haulage distances in 2012 will remain relatively similar than those in The diagram below shows the anticipated mining method for the dragline in 2011, similar to that employed in previous years. 6.2 PLANNING APPROVALS Development consent - Modification 4 (Environmental Assessment) Bengalla submitted a Development Consent Modification as outlined in Section The Development Consent Modification was lodged with the DP&I on 30 November 2010, which was followed by a six week public exhibition period, which ended on the 21 December The EA was assessed by the DP&I and other relevant government departments, taking into account all public submissions and was approved on 7 October The modification does not change Bengalla s approved duration of mining, annual production limit, maximum, height of overburden areas, total overburden material handling, mining methods, mine services, operating hours, manning levels or environmental management system. The modification is required to permit the strategic timing of mining and placement of overburden materials within the approved DA boundary Development consent requirements Bengalla is currently implementing Modification 4 projects, as described in the 2010 EA and is ensuring the mine site complies with new or altered conditions of the development consent. Bengalla Annual Environmental Management Report