Newstan Colliery S75W Modification Project Briefing Paper

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2 Table of Contents 1 INTRODUCTION EXISTING DEVELOPMENT APPROVALS CONSENTS, LEASES AND LICENSES THE PROJECT MINING METHOD MINING AND PLANT EQUIPMENT MINE INFRASTRUCTURE AND SURFACE FACILITIES PRODUCT HANDLING AND TRANSPORT COAL REJECTS AND TAILINGS MANAGEMENT WATER MANAGEMENT WORKING HOURS AND WORKFORCE JUSTIFICATION APPROVAL PROCESS ENVIRONMENTAL ASSESSMENT STAKEHOLDER CONSULTATION CONTACTS CONCLUSION

3 Abbreviations ARI Centennial Coal Company Ltd CCC CCL CHPP Average Recurrence Interval Centennial Centennial Newstan Community Consultation Committee Consolidated Coal Lease Coal Handling and Preparation Plant DA Development Application DECCW DEWHA DoP Department of Environment Climate Change and Water Department of Environment Water Heritage and the Arts Department of Planning EP&A Act Environmental Planning and Assessment Act 1979 EPL 395 Environmental Protection Licence 395 I&I NSW Industry and Investment NSW LDP001 Licenced Discharge Point 001 LGA NREA REF ROM RWMP SREA Local Government Area Northern Reject Emplacement Area Review of Environmental Factors Run of Mine Revised Water Management Plan Southern Reject Emplacement Area 4

4 1 INTRODUCTION Newstan Colliery is an underground coal mine owned and operated since 2002 by Centennial Newstan Pty (Centennial Newstan). Newstan Colliery is regionally located approximately 25 kilometres south-west of Newcastle and 140 kilometres north of Sydney within the Lake Macquarie Local Government Area (LGA). The Newstan Colliery pit top and Surface Facilities Area is located approximately four kilometres north of the township of Toronto. Newstan Colliery began mining operations in 1887 prior to the implementation of the Environmental Planning and Assessment Act 1979 (EP&A Act) and operated under continuing use rights pursuant to section 109 of the EP&A Act. On 14 May 1999, the (then) Minister for Urban Affairs and Planning granted Development Consent to the Newstan Colliery under Part 4 of the EP&A Act for the Newstan Colliery Life Extension Area pursuant to Development Application (DA ). Underground mining at the Newstan Colliery has been undertaken in the Young Wallsend, Great Northern, Fassifern, Borehole and West Borehole coal seams and produces semi soft coking coal and/or thermal coal for both the domestic and export markets. The Newstan Colliery ceased underground mining production in 2009 however continues to operate the Newstan Colliery Surface Facilities Area for the handling and processing of coal from other Centennial operations. Newstan Colliery is seeking a modification to DA subject to Section 75W of the EP&A Act for the proposed Project to allow for: The recommencement of first workings bord and pillar mining in an area referred to as Main West located beyond the existing Development Consent boundary; An extension to the existing Final Pollution Control Dam from 16 ML to 50 ML; Relocation of Licenced Discharge Point 002 (LDP002); and An increase in the volume of water discharged from the site through the Licenced Discharge Point 001 (LDP001) from the currently approved 7 ML/day to 11 ML/day and up to 14 ML/day during prolonged and intense rainfall events. 5

5 2 EXISTING DEVELOPMENT APPROVALS Newstan Colliery was granted Development Consent by the (then) Minister for Urban Affairs and Planning on the 14 May 1999 for the range of activities detailed and assessed within the Newstan Colliery Life Extension Project Environmental Impact Statement (Newstan EIS). In 2004, following the submission of a Review of Environmental Factors (REF), approval was granted by the then NSW Department of Primary Industries - Mineral Resources to extract longwall panels 22 and 23 from areas that extended beyond the Newstan EIS Development Consent boundary. On 23 September 2007 a modification to DA was granted by the Department of Planning (DoP) following the submission of the Newstan Colliery Modification Statement of Environmental Effects for the continuation of underground mining within longwall panel 24 and the relocation of an approved, however not yet constructed, ventilation shaft and associated service corridors to support the shafts operation. Mining of Longwall 25 at Newstan Colliery was approved in October 2008 by the then Department of Primary Industries - Mineral Resources following the submission of a REF. In 2009 a modification to the Newstan Development Consent was granted by the DoP to allow coal from the Centennial Mandalong Mine to be processed at the Newstan Colliery Surface Facilities Area. The approved Newstan Colliery operations primarily include underground mining using longwall mining techniques (following first workings development with continuous miners), processing three to four million tonnes per annum on-site, with coal transported to domestic and export markets by road and rail. In 2009 Newstan Colliery ceased underground mining production however continues to operate the Newstan Colliery Surface Facilities Area to process and handle coal from other Centennial operations. 6

6 2.1 CONSENTS, LEASES AND LICENSES Table 1 contains a list of the current consents, leases and licenses relevant to the Newstan Colliery operation. Table 1 Current Consents, Leases and Licenses Consents Reference Description Expiry Date Issued By DA Approves the extension of Newstan underground coal mine, and upgrade of associated surface facilities on May (modified in 2007 and 2009). 6/07/2020 DoP DA 83/877 Authorised the transport of coal via the Newstan-Eraring Private Haul Road to Eraring and to the Newstan Coal Handling and Preparation Plant (CHPP) from Awaba Colliery Surface Facilities. N/A LMCC DA 93/00080 Allows the development of coal storage and a rail loading area. N/A LMCC DA 88/0645 Permits the establishment of a coal storage area and water management facilities adjacent to rail loop. N/A LMCC DA 99/02806/1N Permits the establishment of an emergency egress and bulk materials delivery facility. N/A LMCC DA 95/00152 For addition to lease area for land under ML N/A LMCC Leases Authority Type of Authority Expiry Date Holder CCL746 Mining Lease 21/12/2028 ML1586 Mining Lease 13/10/2022 CCL727 Mining Lease 11/08/2027 CCL763 Mining Lease 9/06/2022 CCL764 Mining Lease 18/05/2021 ML1452 Mining Lease 6/07/2020 ML1380 Mining Lease 18/09/2016 ML1542 Mining Lease 18/10/2008 7

7 ML1480 Mining Lease 20/07/2023 MPL304 Mining Purposes Lease 25/03/2014 MPL305 Mining Purposes Lease 25/03/2014 MPL327 Mining Purposes Lease 5/08/2015 MPL328 Mining Purposes Lease 5/08/2015 PLL497 Mining Lease 24/08/2017 ML1587 Mining Lease 23/10/2027 Part CCL762 Sublease - Mining Lease 13/10/2022 Part CCL718 Sublease - Mining Lease 13/11/2010 Part CCL774 Sublease - Mining Lease 20/07/2023 A399 Exploration Licence 17/11/2012 EL5138 Exploration Licence 9/10/2011 EL6641 Exploration Licence 23/10/2012 Centennial Mandalong Pty Oceanic Coal Australia Pty Mount Thorley Operations Pty Licences Reference Description Expiry Date Issued By EPL 395 Issued under Protection of the Environment Operations Act 1997 for coal mining, coal works and coal washery and reject or slag land filling. Anniversary 1 January DECCW 20SL Water license for the Bywash Dam (for water and irrigation). 8/01/2011 DNR Bore Licences (various) Newstan holds a number of groundwater bores licensed under Part 5 of the Water Act 1912 for monitoring purposes. Various DNR 3 THE PROJECT Centennial Newstan is seeking a modification to the existing Development Consent (DA ) to allow for: 8

8 The recommencement of first workings bord and pillar mining in an area referred to as Main West located beyond the existing Development Consent boundary; An extension to the existing Final Pollution Control Dam from 16 ML to 50 ML; Relocation of Licenced Discharge Point 002 (LDP002); and An increase in the volume of water discharged from the site through the Licenced Discharge Point 001 (LDP001) from the currently approved 7 ML/day to 11 ML/day and up to 14 ML/day during prolonged and intense rainfall events. The mining method for the proposed Main West mining area will involve first workings bord and pillar mining only and be designed to result in less than 20 millimetres of subsidence on the surface. Due to mining being designed to achieve less than 20 millimetres of surface subsidence, subsidence-related surface impacts are anticipated to be negligible. The increased discharge volumes through LDP001 will allow for improved water management across the site while the proposed expansion of the Final Pollution Control Dam from 16 ML to a storage volume of 50 ML and relocation of LDP002 will provide the Newstan Colliery with sufficient storage capacity to contain the potential run-off from a 10 year, 24 hour Average Recurrence Interval (ARI) storm event. The proposed Project will require the employment of approximately 50 personnel for the life of the proposed Project with a maximum production rate of 1 million tonnes per annum of Run of Mine (ROM) coal. The proposed levels of employment and production are within the current consented limits assessed within the Newstan EIS and approved DA A summary of the approved and proposed operations at the Newstan Colliery is provided in Table 2 below. Table 2 Summary of Existing and Proposed Newstan Colliery Operations Key Feature Existing Approved Operations Proposed Modification Mining Areas Mining within the area of the consolidated Development Consent boundary of DA Mining within the approved longwall 22, 23 and 25 mining areas. First Workings bord and pillar mining within an area beyond the existing Development Consent boundary referred to as Main West. Production Up to four million tonnes per annum. Up to one million tonnes per anum of ROM coal will be produced by the proposed Project per annum. 9

9 Key Feature Existing Approved Operations Proposed Modification Mining Method Extraction of coal using longwall mining methods. Development headings are formed by continuous miners. First workings bord and pillar mining using up to two continuous miners. No longwall mining. Predicted Subsidence in Mining Areas Predicted vertical subsidence of up to 2.4 metres and up to 4 metres when longwall mining beneath Awaba workings. Maximum tilts predicted were 77 millimetres per metre. Maximum strains predicted were 17.2 millimetres per metre (tensile) and 25.7 millimetres per metre (compression). The vertical subsidence for the proposed Main West mining area will be less than 20 millimetres. Mining and Plant Equipment Mining at the Newstan Colliery has been undertaken using a combination of longwall and continuous miner methods. Other mining and plant equipment generally includes equipment for transporting men and materials underground, coal handling and processing (ROM and product coal), coal loading and coal haulage. Does not include longwall. Mine Infrastructure and Surface Facilities Infrastructure at the Newstan Colliery typically includes infrastructure for mine access, ventilation, administration/bathhouse, workshops, coal handling, preparation and transport (including private haul road and rail loop) and reject emplacement. No major change (no additional infrastructure requirements for the proposed Project). Minor upgrades to approved infrastructure will be required. 10

10 Key Feature Existing Approved Operations Proposed Modification Coal is delivered from underground to the Newstan CHPP via high capacity conveyor system. No Change (in accordance with existing approved operations). Product Handling and Transport Delivered via private haul road to Eraring Power Station, or the Port of Newcastle or the Vales Point Power Station through the Newstan rail loop and the Main Northern Rail Line. Processing of up to 4 million tonnes per annum of coal from the Mandalong Mine and receiving up to 800,000 tonnes of coal per annum at the Newstan Rail Loading Facility form the Awaba Colliery. Coal Rejects and Tailings Management Coarse reject material is transported by truck to the Southern Reject Emplacement Area or Northern Reject Emplacement Area. Fine reject material (tailings) is pumped to the Southern Reject Emplacement Area. No Change (in accordance with existing approved operations). Water Management In accordance with the existing Revised Water Management Plan (RWMP). Increase in volume of water discharge volumes through LDP001. Increase in the capacity of the Final Pollution Control Dam from 16 ML to 50 ML. Relocation of LDP002. Working Hours and Workforce Approved workforce of up to 320 personnel. Mine is operated on a 24 hours, seven days a week basis. A workforce of up to 50 personnel will be required for the proposed Project. The mine will continue to operate on a 24 hour, seven day a week basis. 3.1 MINING METHOD The proposed Project will result in a maximum production rate of one million tonnes per annum of ROM coal. This production level does not exceed the current consent limit of four million tonnes (production and handling) per annum of Run of Mine (ROM) coal. 11

11 The Project will utilise the existing workings and infrastructure of the Newstan Colliery for access. The proposed mining area will utilise a first working bord and pillar method of mining to develop roadways within the West Borehole Seam. 3.2 MINING AND PLANT EQUIPMENT The Newstan Colliery has undertaken underground mining using a combination of continuous miner and longwall mining methods. A range of other ancillary equipment is also utilised in the underground workings including equipment for the transport of men and materials underground. In addition to the mining equipment, the Newstan Colliery utilises a variety of other equipment for its operation of the existing surface facilities. The types of equipment used for the operation of the Newstan Colliery includes equipment used for the coal handling and processing, coal loading and product coal haulage. The proposed Project will utilise up to two continuous miners along with other ancillary equipment consistent with the current approved mining methods as detailed above. The proposed Project will not adopt the longwall mining method. 3.3 MINE INFRASTRUCTURE AND SURFACE FACILITIES The existing Newstan Colliery surface infrastructure includes: 12 Administration building; Bathhouse with adequate facilities and services for up to 350 personnel; The CHPP and coal storage bins with a design capacity of in excess of 4 million tonnes per annum; Reject emplacement within the Southern Reject Emplacement Area (SREA), which is approved to cover approximately 75 hectares (in a staged development); Various workshops, service buildings and materials storage areas; Visitor and employee parking areas; Men and materials drift and winder for access to underground workings, including: Men and materials drift; Conveyor drift; Upcast fan shaft; and

12 Downcast shaft. Coal conveyor drift and main conveyor drive to transport coal from the underground workings to the surface at Newstan Colliery; High capacity ventilation fans; Domestic coal stockpile area and Newstan-Eraring private haul road from Newstan Colliery to Eraring Power Station for coal transportation; Rail loop with an export coal stockpile area located within the centre of the loop; and The proposed Project will require no major changes to the surface infrastructure at the Newstan Colliery. Minor upgrades to approved infrastructure will be required. 3.4 PRODUCT HANDLING AND TRANSPORT ROM coal produced from the Newstan Colliery is transported underground from the working face to the surface and delivered to the Newstan CHPP by a high capacity conveyor system. ROM coal may be temporarily stored in the existing 80,000 tonne ROM coal storage area, near the CHPP, prior to being conveyed to the CHPP via a 4000 tonne feed bin. Coal products from the CHPP are either delivered to: The truck loading bin for trucking to the Eraring Power via the Newstan-Eraring private haul road; or The stockpile area within the Newstan Colliery rail loop for train loading and transport to the Port of Newcastle or the Vales Point Power Station. Newstan Colliery is approved to produce up to 4 Mtpa of ROM coal, process up to four million tonnes per annum of ROM coal through the CHPP, transport up to two million tonnes per annum of coal to Eraring Energy using the existing Newstan Eraring haul road and export up to four million tonnes per annum through the Newstan rail loading facility. The existing approval requires additional infrastructure to be installed at the Newstan rail loading facility prior to export coal exceeding three million tonnes per annum. Export volumes have not yet reached three million tonnes per annum and therefore Newstan Colliery has not been required to install the additional infrastructure as detailed in the Newstan EIS. Newstan Colliery is also approved to receive and process up to two million tonnes per annum of ROM coal from the Mandalong Mine through the Newstan CHPP and receive up to 800,000 tonnes per annum of ROM coal from the Awaba Colliery. 13

13 The proposed Project will not require any changes to the current coal handling and transport systems detailed above. Volumes of coal handled at the Newstan Colliery Surface Facilities Area will not exceed the volumes assessed and approved within the Newstan EIS. 3.5 COAL REJECTS AND TAILINGS MANAGEMENT Fine reject material (tailings), produced from the washing of coal through the Newstan CHPP is currently pumped to the Newstan SREA. The SREA has an approved development area of 75 hectares and has been designed to be developed in a series of stages to minimise the area that needs to be cleared at any time. This sequential development also allows a free-draining and stable final landform to be readily achieved if emplacement in this area ceases at any stage of the development. A filter wall and bore are strategically located within the confines of the tailings dam that allows excess water to be decanted from the tailings dam into underground workings where the water is recycled for reuse in the mine and the CHPP. Coarse reject material is transported by truck from the CHPP to the SREA for emplacement or use in the construction of the dam wall or the Northern Reject Emplacement Area (NREA) where it is used as capping material. At a ROM production level of four million tonnes per annum, the maximum extent of the emplacement area within the SREA was determined to have sufficient capacity for both fine and coarse reject material to be emplaced at the site up to approximately the year The proposed Project will not require any changes to the currently approved rejects and tailings management system at Newstan Colliery. 3.6 WATER MANAGEMENT The water management system at Newstan Colliery is comprised of both surface and underground water and is a complex system that has been progressively developed over the life of the mine. The water management system has been designed to: 14 Maximise the separation of clean and dirty water systems; Manage water discharge from site, in terms of volume and quality, to a level that is acceptable for environmental management and community expectations; Minimise water discharges from the premises by maximising, where practicable, opportunities for the reuse and recycling of water on site; Minimise discharges of dirty water from the premises; and

14 Manage discharge to natural waterways in accordance with the sites Environmental Protection Licence (EPL 395) conditions or as agreed with the Department of Environment Climate Change and Water (DECCW). The proposed Project will require an increase in the volume of water discharged through LDP001 from the currently approved 7 ML/day to 11 ML/day and up to 14 ML/day during prolonged and intense rainfall events, an increase in the capacity of the Final Pollution Control Dam from 16 ML to 50 ML and the relocation of LDP002. A small area of vegetation will be required to be cleared as part of the Final Pollution Control Dam expansion. 3.7 WORKING HOURS AND WORKFORCE Newstan Colliery operates on a 24 hour, seven day a week basis and has approval for a workforce of up to 320 personnel. The proposed Project will continue to operate 24 hours, seven days a week and require the employment of approximately 50 personnel. The number of employees required will not result in an increase in employees at the site above the 320 personnel assessed and approved as part of the Newstan life Extension Project EIS. 4 JUSTIFICATION The recommencement of underground mining at the Newstan Colliery within the proposed Main West mining area will allow for the Newstan Colliery to generate revenue while ongoing assessments for future mining within the Newstan mine lease area are undertaken. The proposed Project will provide full time employment of approximately 50 personnel and assist Centennial in meeting current contract supplies of coal to both the domestic and export markets. In addition, the proposed Project will provide a positive economic impact to the local, regional and state economies through direct and indirect employment and royalties. The increased discharge volumes through LDP001 will allow for improved water management across the site while the proposed expansion of the Final Pollution Control Dam from 16 ML to a storage volume of 50 ML and relocation of LDP002 will provide the Newstan Colliery with sufficient storage capacity to contain the potential run-off from a 10 year, 24 hour ARI storm event. This will significantly reduce the discharge frequency of water with high sediment levels from the Newstan Colliery. The Final Pollution Control Dam will continue to function as the primary discharge point (LDP002) for water from the Newstan Surface Facilities Area. 5 APPROVAL PROCESS In order to commence the development of the proposed Project a modification to the 1999 Newstan Colliery Development Consent DA would be required. The proposed modification is for: 15

15 The recommencement of first workings bord and pillar mining in an area referred to as Main West located beyond the existing Development Consent boundary; An extension to the existing Final Pollution Control Dam from 16 ML to 50 ML Relocation of Licenced Discharge Point 002 (LDP002); and An increase in the volume of water discharged from the site through the Licenced Discharge Point 001 (LDP001) from the currently approved 7 ML/day to 11 ML/day and up to 14 ML/day during prolonged and intense rainfall events. The modification, if approved, will not require any changes to approved surface infrastructure, coal and reject handling and transportation methods and be within the approved limits of ROM coal extraction and processing. A small area of vegetation will be required to be cleared as part of the Final Pollution Control Dam expansion. Centennial Newstan is seeking a modification to the existing Newstan Colliery Development Consent subject to Section 75W of the EP&A Act and pursuant to clause 8J(8) of the Environmental Planning and Assessment Regulations ENVIRONMENTAL ASSESSMENT Centennial Newstan has engaged the services of GSS Environmental to develop an Environmental Assessment (EA) to support an application for a modification to the existing Newstan Colliery Development Consent for the proposed Project. A Broad Brushed Risk Assessment was undertaken and identified the following key environmental constraints and knowledge gaps requiring further consideration or assessment in the EA. Impacts on the existing Newstan Colliery water management system; Increased discharges impacting on water quality and the geomorphology of LT Creek; Subsidence induced ecological impacts; Subsidence induced archaeological impacts; Impacts to groundwater and groundwater dependant ecosystems; and Archaeological and ecological Impacts from land clearing required as a result of the proposed expansion of the Final Pollution Control Dam. 7 STAKEHOLDER CONSULTATION A Stakeholder Engagement Plan has been prepared for the proposed Project. Consultation in regards to the proposed Project to date includes: 16

16 A presentation to the Newstan Community Consultative Committee (CCC) on 26 May 2010 to provide an update on the exploration drilling programme and introduce the proposed Project; Meeting with the DoP to discuss the Newstan Colliery and proposed Project on 25 June 2010; Meeting with the Commonwealth Department of Environment, Water, Heritage and the Arts (DEWHA) to introduce the proposed Project on 1 July 2010; Meeting with Industry and Investment NSW to introduce the proposed Project on 22 July 2010; Project overview provided in the Lakes Mail on 5 August 2010; and Distribution of a newsletter to residents of Awaba, Fassifern, Wakefield and the Newstan CCC members in the week commencing 9 August Consultation with Aboriginal Groups has and continues to be undertaken in accordance with the NSW Department of Environment, Climate Change and Water (DECCW) Aboriginal Cultural Heritage Consultation Requirements for Applicants (2010). The Aboriginal stakeholders who have registered an interest in the proposed Project include: Westlakes Aboriginal Community; Wonnarua Nation Aboriginal Corporation; Cacatua Culture Consultants; Awabakal Descendants Traditional Owners Aboriginal Corporation; and Awabakal Traditional Owners Aboriginal Corporation. 8 CONTACTS The primary contact for the EA on behalf of Centennial Coal Company is: Mr James Wearne - Environmental Coordinator - Projects James.wearne@centennialcoal.com.au Office: (02) Mobile: CONCLUSION Centennial Newstan is seeking a modification to its existing Development Consent DA subject to Section 75W of the EP&A Act for: The recommencement of first workings bord and pillar mining in an area referred to as Main West located beyond the existing Development Consent boundary; 17

17 An extension to the existing Final Pollution Control Dam from 16 ML to 50 ML; Relocation of Licenced Discharge Point 002 (LDP002); and An increase in the volume of water discharged from the site through the Licenced Discharge Point 001 (LDP001) from the currently approved 7 ML/day to 11 ML/day and up to 14 ML/day during prolonged and intense rainfall events. The proposed mining area referred to as Main West will be designed to ensure negligible subsidence (i.e. less than 20 millimetres) and will therefore not result in any significant impacts to surface features. There will be no additional changes to infrastructure or mining rates beyond what has been previously assessed and approved. The changes to the Newstan water management system will improve water management across the site and reduce the discharge frequency of water with high sediment levels from the Newstan Colliery. An Environmental Assessment will be developed for the proposed Project to address the key environmental risks and knowledge gaps identified through Broad Brushed Risk Assessment undertaken for the proposed Project. 18

18 Attachment 1 Newstan Modification Project Area 19

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