CASE STUDY: A blue-print to meeting your environmental obligations and achieving optimal eco-sustainability in your mine

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1 CASE STUDY: A blue-print to meeting your environmental obligations and achieving optimal eco-sustainability in your mine

2 ENVIRONMENTAL ADVISORS

3 ANSWERING THE CASE STUDY 1. Embracing climate change and the carbon tax through accelerated energy efficient strategies and practices 2. Optimal water management (and waste management strategies) 3. Effective planning for mine closure and rehabilitation 4. Developing effective links with regulators and communities to meet environmental standards and regulations

4 LOCATION Isaac Plains Coal Mine is located approximately 180km South West of Mackay, Queensland, 172km by rail from the Dalrymple Bay Coal Terminal 7km east of the township of Moranbah, in Central Queensland's Bowen Basin Coal province Currently the closest operational mine site to Moranbah

5 MINING LEASES Goonyella Broadlea Moranbah North Grosvenor Isaac Plains Burton Carborough Downs Isaac Plains North Located north side of the Peak Downs highway South west of Burton Mine. ML (granted in Dec 2005) covers 2940 ha Millenium Peak Downs Isaac Plains South Isaac Plains South Located south of Peak Downs highway and to the east of the Peak Downs Mine (under development)

6 IPCM OWNERSHIP & MANAGEMENT Vale Australia 50% Sumitomo 50% Isaac Plains Coal Management (IPCM)

7 IPCM MAJOR CONTRACTORS John Holland Mining Ausenco CHPP

8 MINING METHOD Isaac Plains is a strip mine, employing blast cast, dozer push, one Dragline and truck and shovel overburden removal methods Five pits three currently producing coal First coal was railed in October 2006 For FY10-11 ROM coal was 2.2 Mt and 1.6 Mt product coal. Expected output for FY11-12 is 3 Mt ROM coal and 2.4 Mt product 8

9 EMBRACING CLIMATE CHANGE In September 2011, an Energy Efficiency Opportunities (EEO) workshop was facilitated by specialist energy and carbon management consultancy, Energetics. The workshops involved two working groups comprised of IPCM management team together with employees and contractors from the mining and wash plant operations 45 energy saving initiatives were identified by the two groups. Of these initiatives, three major projects were planned for or implemented in FY11-12 More than 10 smaller projects are scheduled for FY12-13

10 PLANNING FOR THE CARBON TAX Internal purchasing systems require applicant to consider carbon tax implications (i.e. applications for capital and budget justifications for the new financial) Writing energy saving KPIs into our new contracts Refining/auditing the processes and systems we use to calculate our NGER number Preparing for the carbon tax early, with assistance, advice and training via a carbon and energy management specialist. The development of a carbon liability management plan with designated carbon management roles/team members is one part of this

11 OPTIMAL WATER MANAGEMENT STRATEGIES

12 OPTIMAL WATER MANAGEMENT STRATEGIES Site was inundated with approx. 4.8 GL of water in December 2010 when Smoky Creek burst its banks and flooded N1 pit A TEP was granted in Dec 2010 following the flood event An EA amendment was sought in September 2011 to incorporate new Fitzroy conditions for mine water release during flow conditions Levees rated to Q250 have been built at N1 and S1 pits Pumping strategies and water storage surveys have been refined/tightened and a site water balance (OPSIM) is currently being developed Site has a current water surplus of approx. 1 GL

13 OPTIMAL WATER MANAGEMENT STRATEGIES

14 OPTIMAL WATER MANAGEMENT STRATEGIES

15 OPTIMAL WATER MANAGEMENT STRATEGIES Ten evaporative fans brought onto site in August 2011 under a renttry-buy agreement from FanEquip in the Hunter Valley Originally set up on the highwall of N2 pit (one of the pits sacrificed for water storage) Fans have now been moved to a constructed pad near Release Dam 1 (RD1 contains a shandy of pit water and site run-off water) Roughly estimated at consuming 5 ML of water per day (50% evaporation rate on hot, dry days) Fans shut off when humidity climbs above 80%

16 OPTIMAL WATER MANAGEMENT STRATEGIES

17 OPTIMAL WATER MANAGEMENT STRATEGIES

18 OPTIMAL WATER MANAGEMENT STRATEGIES

19 PLANNING FOR MINE CLOSURE Rehab outcome is to return site to grazing Isaac Plains has a estimated mine life to 2018; longer if Isaac Plains South becomes operational A residual pit void and final landform study was completed by Peter Baker in Pits will be backfilled with spoil or retained as water holding structures, dependent on negotiations with landholder The chosen grass species are native to the area and suitable as cattle fodder. Some tree species (mostly acacias, eucalyptus, senna) have also been sown Investigating the potential of running a small-scale cattle grazing trial, before returning established rehab areas to the DEHP Use a prescription-blend fertilizer with trace elements, based on topsoil testing results and advice from an agronomist Current established rehab on site is 28.5 ha versus ha disturbance, with all five pits open at thispoint in time 28 ha of rehab proposed for FY By end of FY-13 the expected established rehabbed area is predicted at 132 ha, with a similar disturbance area to FY

20 PROPOSED FINAL MINE LAYOUT 20

21 REHABILITATION AT IPCM Rehabilitation is progressive with the operation 20 ha of rehab undertaken in FY11-12 Site rehab trials x 2: 1. Trial plot of topsoiled, unseeded areas site has germinated well with native grass species and vegetation is just as prolific as the seeded area 2. Strategic placement of logs for animal habitat. Future rehab trial for FY12-13 is to install stag trees to encourage raptors 21

22 REHABILITATION AT IPCM 22

23 FOSTERING RELATIONSHIPS COMMUNITY & REGULATOR A funding partner of the Fitzroy Partnership for River Health; see: A funding and working partner of the Moranbah Cumulative Impact Group. Web site coming soon! Transparency of environmental monitoring data to the public, via the IPCM website: Data share agreement between Griffith Uni and C & R Consultants (Townsville-based) for in-kind support of an ACARP project researching stygofauna Ongoing support of local schools, CQ Rescue, McGrath Foundation and MRAEL (apprenticeship support) Cultural Heritage Management Plan (CHMP) with Barada Barna

24 FOSTERING RELATIONSHIPS COMMUNITY & REGULATOR

25 THANK YOU Shane Reeves, Patty Barr (Campbell Mining) and Lou Page Evaporative Fans video Dr Eridani Mulder (AWC), Kathleen Hardie (Oaky Creek Coal) and Trish Kenny (Peabody at Coppabella) and Reece Fraser (C & R Consulting) for the unclassified use of their photos Reed Exhibitions for the invitation to present Thank you for attending