Department of Trade and Investment, Regional Infrastructure and Services - Division of Mining & Energy (DTIRIS - DRE)

Transcription

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2 Bengalla Annual Review Name of Mine Bengalla Titles / Mining Leases ML 1397, ML 1469, ML1592, AL13, A438 Open Cut MOP commencement Date*for Reporting Period December 2011 Open Cut MOP Completion Date* January 2013 AEMR Commencement Date 1 January 2012 AEMR Completion date 31 December 2012 Name of leaseholder Bengalla Mining Company Pty Limited Reporting Officer Dan Janney Title General Manager Operations Signature Date March 2013 * A new MOP has been approved for the period January 2013 to December 2015 DISTRIBUTION Department of Trade and Investment, Regional Infrastructure and Services - Division of Mining & Energy (DTIRIS - DRE) Department of Planning &Infrastructure (DPI) Department of Premier & Cabinet (DPC) Muswellbrook Shire Council Bengalla Community Consultative Committee Members Page 2 of 60

3 1 EXECUTIVE SUMMARY This Annual Environmental Management Review (AEMR) satisfies the requirements of the Bengalla Mine Development Consent and conditions of mining leases held by Bengalla. It covers the 2012 calendar year. The AEMR has been written in accordance with the NSW Department of Trade and Investment EDG03 Guidelines to the Mining, Rehabilitation and Environmental Management Process and the NSW Department of Planning and Infrastructure Draft Guideline for Preparation of Annual Environmental Management Review (AEMR) December Bengalla Mine produced 8.4 million tonnes of run-of-mine (ROM) coal during 2012, and 7.0 million tonnes of saleable coal, against an approved ROM coal production rate of 10.7 million tonnes per annum (mtpa). This is an increase on previous year s coal production and in 2013, forecast ROM coal production will be 9.3 mtpa. Environmental performance is reported in Section 4 of this AEMR. Overall, environmental management during 2012 was effective with general compliance with conditions and Environmental Assessments (EA) predictions. Noise During the 2012 attended noise monitoring program there was one exceedance of noise criteria at one monitoring point, and one monitoring locationcould not be accessed for one sample,due to a locked gate. All other noise monitoring results were under consent criteria, and either consistent with or lower than predictions outlined in the EA. There were six complaints relatedto noise in the reporting period, which is comparable to previous years. Blasting There were no blasting exceedances during There was one monitor which did not record a blast. Results from other monitors indicate the blast was under consent requirements. This monitor was repaired prior to further blasting. There were thirteen complaints related to blasting in 2012, which is comparable to previous years. Air Quality During 2012, all annual averages air quality monitoring results were within Development Consent limits. When compared to previous years, results are generally higher in This could be attributed to less rainfall and drier conditions through the last three quarters of the year. When compared to predictions in the EA, air quality impacts were within the predictions made for 2011 and There were 40 complaints related to air quality impacts in This is an increase of approximately 400 percent from 2011 and document contained a number of commitments that Bengalla have completed throughout Surface Water Bengalla used approximately 2000 Megalitres (Ml) during Most of this is recycled or harvested on site, 788 Ml was drawn from the Hunter River. Bengalla did not discharge under the HRSTS during the reporting period. There were no complaints or reportable incidents relating to water in Bengalla reported one water incident to the Environmental Protection Authority in 2012, when a valve failure led to an uncontrolled discharge of water. Groundwater Groundwater levels are generally as predicted in the environmental assessment. Most of Bengalla s alluvial monitoring sites are heavily influenced by regional rainfall and the level of water in the Hunter River. There were no complaints or reportable incidents relating to groundwater in Erosion and Sediment Control Erosion and sediment control was well managed throughout the year, with a robust sediment dam desilting program, and the commencement of future sediment control structures. There were no complaints or reportable incidents, and erosion and sedimentation performance and management was consistent with the EA. Heritage During 2012, inspections of Aboriginal and European heritage items were undertaken and maintenance carried out where required. There were no complaints or reportable incidents relating to heritage during the reporting period. Visual amenity During 2012, construction of the southern overburden emplacement area (SOEA) continued. This is visible from a number of areas around the region. The visual amenity in this area will improve as the SEOA reaches final height and is rehabilitated. There were three lighting complaints during 2012, and no reportable incidents. Rehabilitation and Land Management There was hectares of rehabilitation completed in Due to the construction of the SEOA, there was hectares of previous rehabilitation cleared to allow for construction. As predicted in the EA, there is a rehabilitation deficit during Rehabilitation audits and monitoring were undertaken during 2012, with no reportable incidents occurring in the reporting period. During 2012, Bengalla submitted the Bengalla Coal Mine Particulate Control Best Practice Management Determination. This Page 3 of 60

4 Table of Contents 1 EXECUTIVE SUMMARY INTRODUCTION DOCUMENT PURPOSE STATEMENT OF COMPLIANCE APPROVALS, LEASES AND LICENCES ENVIRONMENTAL MANAGEMENT SYSTEM MINE CONTACTS RESPONSE TO ACTIONS REQUIRED AT PREVIOUS AEMR REVIEW OPERATIONS SUMMARY REPORTING PERIOD REPORTING PERIOD ENVIRONMENTAL MANAGEMENT AND PERFORMANCE METEOROLOGICAL OPERATIONAL NOISE BLASTING AIR QUALITY SPONTANEOUS COMBUSTION GREENHOUSE SURFACE WATER GROUNDWATER EROSION AND SEDIMENT CONTROL ABORIGINAL HERITAGE NON-ABORIGINAL HERITAGE VISUAL AMENITY AND LIGHTING WASTE MANAGEMENT CONTAMINATED LAND FLORA AND FAUNA STAKEHOLDER RELATIONS COMPLAINTS MANAGEMENT COMPLAINTS PERFORMANCE REHABILITATION AND LAND MANAGEMENT LAND MANAGEMENT SUMMARY OF REHABILITATION PROPOSED ACTIVITIES MINE DEVELOPMENT AND PLANNING APPROVALS ACTION PLAN Figures Figure 1: Overburden operations... 8 Figure 2: Bengalla Mine site layout and tenements... 9 Figure 3: Internal incidents recorded in Figure 4: Dragline and dozer at Bengalla Figure 5: Haul Truck being built onsite in Project area Figure 6: Summer, winter and annual wind roses, respectively Figure 7: Monthly Rainfall, 2010 to Figure 8: Environmental monitoring network Figure 9: Blasting complaints Figure 10: Air Quality monitoring units Figure 11: Comparison of HVAS results Figure 12: Comparison of PM 10 results Figure 13: Comparison of 2012 annual average PM 10 to Environmental Assessment Figure 14: Comparison of 2012 annual average PM 10 to Environmental Assessment Figure 15: 2012 dust deposition annual averages Figure 16: ROM Hopper at Bengalla - enclosed and equipped with water sprays to minimise dust generated during tipping Figure 17: 2012 Depositional dust isopleth annual averages. The annual average isopleth above shows the depositional dust levels in g/m 2 /month. The vertical scale on the bottom right corner shows the range of depositional dust levels in g/m 2 /month. 25 Figure 18: Greenhouse gas per tonne of product coal Figure 19: Raw Water Dam - Hunter River intake Figure 20: Hunter River surface water monitoring results for ph, Electrical Conductivity (EC) and Total Suspended Solids (TSS) during Figure21: Water monitoring locations Figure 22: Hydrographs of alluvial bores of- Wantana extension area Figure 23: Alluvial Groundwater Level, June/July Figure 24: Mine Water Management - Looking towards Bengalla from Endwall Dam Page 4 of 60

5 Figure 25: Overdene homestead Figure 26: Comparison of 2011 and 2012 SOEA works on visual impact from Muswellbrook Racecourse Figure 27: Bioremediation facility - four cells showing tilled contaminated soil Appendices Appendix 1. Guideline matrix Appendix 2. internal incident summary, Appendix 3. Bengalla complaints SUMMARY Figure 28: Comparison of complaints, Figure 29: Coal & Allied Community Development Fund CDF 2012 project investment profile Figure 30: Rehabilitation Monitoring Figure 31: Rehabilitation as at 31 December Figure 32: Rehabilitation and overburden dumping in background 44 Tables Table 1: Compliance Quick Reference Guide... 7 Table 2: Previous Environmental Studies of Bengalla... 8 Table 3: Bengalla Approvals, Licences and Leases for reporting period... 8 Table 4: Management Plan Status Table 5: Actions required from 2011 AEMR Table 6: Development consent production statistics Table 7: Production and Waste Summary Table 8: Summary of noise monitoring results, Table 9: Blast Monitoring Locations and Criteria Table 10: Blasting Performance Summary Table 11: Air Quality Impact Assessment Criteria and compliance 20 Table 12: HVAS Air quality monitoring summary, 2011 and Table 13: HVAS short term impact assessment criteria exceedances Table 14: Greenhouse Gas Initiatives supported by RTCA Table 15: 2012 KPI's - Water Table16: Bengalla water balance Table 17: Community Complaints Table 18:Bengalla's local community investment Table 19::Bengalla Rehabilitation Summary Table 20: Rehabilitation Objectives Page 5 of 60

6 Abbreviations AEMR Annual Environmental Management Review and Annual review INP Industrial Noise Policy AQMP ARD BEP CHPP CCC CO 2-e dbl dba DP&I DRE EA EC EEO EIS EL EMP EMS EPA EPL GHG GIS GJ/t GPS g/m 2 /m ha HRSTS HVAS Bengalla Mining Company Air Quality and Greenhouse Gas Management Plan 2012 Acid Rock Drainage Bengalla Expansion Project Coal Handling and Preparation Plant Community Consultative Committee Carbon dioxide equivalent Noise decibels (linear) Noise decibels (A-weighted) Department of Planning and Infrastructure Division of Resources and Energy, Minerals and Petroleum Bengalla Mine Development Consent Modification Environmental Assessment 2010 Electrical Conductivity Energy Efficiency Opportunities Environmental Impact Statement Exploration Lease Environmental Management Plan Environmental Management System Environmental Protection Authority Environmental Protection License Greenhouse Gas Geographic Information System Gigajoules per tonne Global Positioning System Grams per square metre per month Hectare Hunter River Salinity Trading Scheme High Volume Air Sampler km Ml ML Mtpa mm mm/s MOP MSC NATA NGERS NOW NPI OCE OEH ph PM 10 PRP ROM RTA RTCA RTEMS SOEA TSS µs/cm µg/m 3 UHAQMN WAL Kilometre Megalitres Mining Lease Million tonnes per annum millimetres millimetres per second Mining Operations Plan Muswellbrook Shire Council National Association of Testing Authorities National Greenhouse and Energy Reporting Scheme NSW Office of Water National Pollutant Inventory Open Cut Examiner Office of Environment and Heritage Potential Hydrogen Particulate matter (dust) with a diameter of less than 10 microns Pollution Reduction Programme Run of Mine Roads and Traffic Authority Rio Tinto Coal Australia Real Time Environmental Management System Southern Overburden Emplacement Area Total Suspended Solids Microsiemens per centimetre Micrograms per cubic metre Upper Hunter Air Quality monitoring Network Water Access License Page 6 of 60

7 2 INTRODUCTION 2.1 DOCUMENT PURPOSE This Annual Environmental Management Reportand Annual Review details the environmental and rehabilitation performance of Bengalla against mining lease and development consent conditions, as well as any associated plans and programs relevant to the environmental performance of the mine.it has been written in accordance with the NSW Department of Trade and Investment EDG03 Guidelines to the Mining, Rehabilitation and Environmental Management Process and the NSW Department of Planning and Infrastructure Draft Guideline for Preparation of Annual Environmental Management Review (AEMR) December 2012.Appendix 1provides a reference against these guidelines and this report. Copies of this report are distributed to various external stakeholders and also available on the Coal & Allied website: 2.2 STATEMENT OF COMPLIANCE Table 1 is a brief summary of the conditions of the consent relevant to this annual review, and a reference to where each aspect is addressed within the AEMR. Table 1: Compliance Quick Reference Guide Environmental performance condition Section reference Compliance with Project Approval conditions and MOP * Compliance with EA/EIS prediction * Noise Blasting and vibration Air quality Greenhouse & energy efficiency Meteorological monitoring Surface water Ground water Erosion and sediment control (soil) Aboriginal heritage European heritage Transport and utilities Visual amenity Bushfire Waste Agricultural productivity research program n/a Rehabilitation *Legend Compliant Condition/impact criteria non-compliance Administrative Non-Compliance Page 7 of 60

8 During 2012, there were two events that were reportable to the DP&I and the EPA. These events related to noise and surface water performance, and are discussed in sections and respectively. Internally reported incidents are discussed in section APPROVALS, LEASES AND LICENCES Bengalla has a range of statutory approvals that regulates activities onsite. Most approvals contain comprehensive conditions regulating the scope and environmental management of operations, and the level of impact on the surrounding community. Bengalla operates under a Project Approval that has been modified four times. The modifications are described intable 2. Bengalla s approvals are summarised intable 3, and Mining Leases and project approval boundaries are shown spatially in Figure 2. Table 2: Previous Environmental Studies of Bengalla Report Title Author Date Bengalla Mining Company Development Hansen Bailey December 2010 Consent Environmental assessment (modification 4) Bengalla Mining Company Development Hansen Bailey March 2008 Consent Environmental assessment (modification 3) Wantana Extension Statement of Hansen Bailey July 2007 Environmental Effects (Modification 2) Statement of Environmental Effects Hansen February 2006 Modifications to mining operations (Modification 1) Consulting Statement of Environmental Effects Hansen July 2006 Explosives storage facility (DA 273/2006) Consulting Environmental Impact Statement for Bengalla Open-cut Mine Envirosciences Pty Limited November 1993 All appropriate information for the renewal of AL13 has been lodged with the DRE, and renewal of this licence is pending. Bengalla submitted a new Mining Operations Plan (MOP) to the Department of Trade and Investment Division of Resources and Energy (DRE) for the period January 2013 to June 2015, which was approved in December The new MOP outlines rehabilitation plans for the next two and a half years, and will allow the continuation of mining at Bengalla during this time. During 2012, a total of Mega litres (Ml) was extracted from the Hunter River under Water Access Licence (WAL) The WAL allows pumping of 1449ML per year at 100 per cent allocation. exhibition in Extensive community and government agency engagement will be an important part of the process. Table 3: Bengalla Approvals, Licences and Leases for reporting period Approval Tenement/Licence Authority Dates Development Consent (as modified) Development Consent Explosives Facility DA211/93 DA273/2006 DP&I MSC Assessment Lease AL13 DRE Mining Lease 1397 DRE Mining Lease 1469 DRE Mining Lease 1450 DRE Mining Lease 1592 DRE Bengalla Mining Operations Plan (MOP) C98/2152 DRE Exploration Lease A438 DRE Environment Protection Licence(EPL) Hunter River Water Access Licence (1,449 units) Groundwater Extraction Licence Hunter River Pump Permit Licence to StoreExplosives Licence to Sell/Possess 6538 OEH WAL (Previously 20SL BL PE NOW NOW NOW EPA Radiation Licence 1320 EPA Radiation Licence 1321 EPA Radiation Licence 1322 EPA Radiation Licence 7285 EPA Radiation Licence 7286 EPA Radiation Licence EPA WorkCover NSW 07/08/ /08/ /09/2006 Perpetuity 20/12/ /12/2011* 27/06/ /06/ /06/ /06/ /06/ /06/ /04/ /04/ /01/ /12/ /08/ /05/ /11/ /08/2014 (Review Date) 01/08/ /03/2018 Expiry date: 31/10/ /05/1997 Annual 10/01/2018 Expiry date: 18/12/2013 Expiry date: 09/04/2013 Expiry date: 09/04/2013 Expiry date: 09/04/2013 Expiry date: 21/01/2014 Expiry date: 21/4/2014 Expiry Date26/04/2014 *Lease renewel application submitted and pending determination Bengalla is proposing to extend the life of the mine by 21 years from its current development consent, which allows mining until The Bengalla Continuation Project would see mining continue west, away from Muswellbrook on land that is owned by Bengalla. As part of the Bengalla Continuation Project the site is preparing an application for a Development Consent under Part 4 of the Environmental Planning and Assessment Act An Environmental Impact Statement (EIS) that will accompany this application is being finalised and is expected to be placed on public Figure 1: Overburden operations Page 8 of 60

9 Figure 2: Bengalla Mine site layout and tenements Page 9 of 60

10 2.4 ENVIRONMENTAL MANAGEMENT SYSTEM Bengalla operates an Environmental Management System (EMS) certified to ISO14001, which drives continual improvement and manages compliance to regulatory requirements. During 2012 a number of management plans required under the development consent were revised and submitted for the approval of the relevant regulator. A summary of the status of required management plans is presented in Table 4. These management plans were developed in consultation with stakeholders, and some require ongoing consultation to ensure that all stakeholders are satisfied that they will mitigate impacts and drive best practice while still enabling effective production at Bengalla. Development consent Schedule 5 Condition 11 requires that information is publically available on its website. The Bengalla Library website ( contains publically available information regarding Bengalla s compliance requirements. The website audit found that Bengalla s website generally complies with the requirements of the Development Consent. Table 4: Management Plan Status Management Plan Date to be submitted by (DA 211/93) Date submitted Approved (Y/N) # Noise 31 December January 2013* Ongoing Blast 31 December January 2013* Ongoing Air Quality and Greenhouse Gas 29 February February 2012 Yes Water 29 February February 2012 Yes Aboriginal Cultural Heritage Management Plan European Heritage Management Plan Landscape Management Plan Agricultural Productivity Research Program 29 February February 2012 Yes 29 February April 2012^ Yes 31 December January 2013* Ongoing 31 December 2012 July 2011 Ongoing Rehabilitation Management Plan 31 December January 2013* Ongoing # Approval status as at March 2013 ^DP&I granted an extension until 30 April 2012 *DP&I granted an extension until 31 January 2013 Environmental incidents are tracked internally as part of the EMS, and used to identify potential non-conformances or issues before they escalate. During 2012, 38 environmental incidents were reported. Hydrocarbons comprised 69 per cent of all incidents recorded, with minimal blasting, air quality and other incidents also recorded. Incident categories are shown in Figure 3 and summaries of events shown in Appendix 2. Environmental Incidents 2012 Hydrocarbon air quality Noise Blasting Other Figure 3: Internal incidents recorded in MINE CONTACTS Bengalla has a committed environmental team that supports the managers of each department to ensure the environmental standards and procedures are met in all areas of the mining operation. Relevant contacts for environmental management issues are listed below: Dan Janney General Manager Operations Phone: Mobile: dan.janney@riotinto.com Amy Harburg Environmental Specialist Phone: Mobile: amy.harburg@ riotinto.com For more information about Coal & Allied s operations or activities visit the shopfrontsor call: 127 John Street, Singleton 19 Bridge Street, Muswellbrook, Coal & Allied Information Line (freecall) Community Complaints Hotline (freecall) Incidents During 2012, there were two events that were reportable to the DP&I and the EPA. These events related to noise and surface water performance, and are discussed in sections and respectively. 2.6 RESPONSE TO ACTIONS REQUIRED AT PREVIOUS AEMR REVIEW The 2011 AEMR contained various commitments made by Bengalla that would be undertaken in 2012 that assist in continually improving the environmental performance of the mine and these are summarised in Table 5. Page 10 of 60

11 Table 5: Actions required from 2011 AEMR Number Issue / Observation Source Action Due Status Actions committed to in 2011AEMR An update of the site water model to include structures around the Southern Overburden Emplacement area Implementation of actions from the Pollution Reduction Programme (PRP) (Air Quality) Review of bin locations and types to ensure adequacy and efficiency Review of Bengalla Environmental Management Plans Coal mine particulate matter control best practice management determination Review of water management options for the North ROM sediment dam to maintain adequate capacity DRE AEMR Review 1 AEMR does not explain relationship with current approved MOP regarding disturbance area, rehabilitation and mine layout and does not allow for comparison of any out of sequence issues and mine layout discrepancies. 2 The AEMR, whilst acceptable, should be reviewed to reflect the format and content requirements of DRE's AEMR guidelines Internal The Water Management Plan (approved 29 February 2012) includes structures around the SOEA. Internal Actions outlined in the Bengalla particulate matter control best practice management determination have been completed during the reporting period. Further detail in section Internal Review undertaken to rationalise loading bins and create efficiencies within the operation. Development Bengalla s statutory management plans were Consent reviewed and submitted to DP&I during Further detail in Table 4. EPL Submit to EPA by 6 Feb, on website by 13 Feb Internal Review of sediment dam options undertaken by external consultant. Actions completed as a result of the review include improved access to the dam, increase in the desilting program, and modification of ROM drainage works. DRE Include MOPvs. AEMR rehabilitation comparison and explanation for any inconsistencies. DRE Review DRE AEMR guidelines and ensure that all content requirements are addressed in future AEMR's. End of Complete February 2012 December Complete 2012 December Complete 2012 December Complete 2012 February Complete Submitted and available on website. December Complete 2012 Next AEMR This is addressed in section 5 of this AEMR. Next AEMR Appendix 1 3 Relationship between Disturbed Area figure of ha in Table 2 (and referred to in Section 5) and Table 17 requires explanation DP&I AEMR Review 1 The document did not contain a section outlining the issues raised in last years AEMR visit. 2 Table 2 on p1 5 states that hectares were cleared which is well in excess ofthe 37 hectare 2011 target. While section advises the purpose of the clearing, itdoes not qualify why this figure is nearly 3 times the predicted 2011 target. 3 Page 64 outlines the hydrocarbon incidents recorded on site with two incidentsgreater than 500 litres. While an explanation of the spills is provided in Appendix G,the document would benefit from advising the size of the two events in the main bodyof text. 4 During the site inspection it was observed (for a short period of time) that the draglinewas side casting material and depositing that material from a height of approx metres producing excessive dust. DRE DP&I DP&I 1. Describe the relationship between Disturbed Area figure in Table 2 and Table Account for the threefold increase in 2011 target and 2011 actual land disturbed figure in Table 2. ln the AEMR for the next reporting period, you are requested to includeactions arising from the previous year s AEMR review and inspection and where inthe document they are located. You arerequested to ensure that where any of the key performance targets are significantlyexceeded an explanation is provided. End of August 2012 Next AEMR Next AEMR A response was provided to the DRE by 31 August This table AEMR restructured, with noncompliances outlined for each issue. DP&I Provide further details of significant incidents Next AEMR AEMR restructured, with significant incidents outlined for each issue. DP&I Requested to ensure that best practice airquality management is observed at alltimes across the operation Operations Dragline shut down for hours in 2012 to mitigate dust. Page 11 of 60

12 After each AEMR is submitted to the DP&I and DRE, it is common for both agencies to review the AEMR and conduct site visits. The annual review was conducted at Bengalla on the 30 May 2012, with representatives from Bengalla, DRE and DP&I participating. Actions arising from internal commitments made by Bengalla, as well as actions arising from the DP&I and DRE s review are outlined in Table 5. The Departments considered that the 2011 AEMR report generally satisfied the requirements of Condition 4, Schedule 5 of Development Consent The DP&I acknowledged that the operation generally appeared to be well managed and maintained at the time of the inspection. Environmental Assessment. Key activities and changes that have occurred in 2012 are summarised in the sections below Exploration Bengalla undertook a comprehensive drilling programme in 2012 that included both high resolution drilling for short term mine development and life of mine resource drilling across ML1397 and ML1450. Exploration drilling continued in AL13 (adjacent to the western boundary of ML1397). The purpose of this drilling is to provide additional data for prefeasibility studies of AL13 and improve the level of confidence in resource and reserve estimates within the remainder of ML1397 and ML1450. Drilling activities in ML1397, ML1450 and AL13 included both core and non-core drill holes, all of which were geophysical logged. Lithology, structural and coal quality data was collected from each drill hole, and will be used in computer modelling of the deposit. Following geological exploration, all drill holes are progressively rehabilitated or capped and made safe by the implementation of a rehabilitation programme. The rehabilitation of drill holes includes: All holes are grout filled. The water sumps at each site are backfilled with earth. Topsoil is replaced over the drill pad. A suitable vegetation mix is hand broadcast across the site Land Preparation Figure 4: Dragline and dozer at Bengalla 3 OPERATIONS SUMMARY REPORTING PERIOD Production statistics (related to approval limits) Bengalla s Development Consent outlines production statistics that must be complied with and reported on in the Annual Review. A summary of this production data and Bengalla s compliance to conditions is found in Table 6. Table 6: Development consent production statistics Development Consent Condition summary Compliance Schedule Condition 2 6 Bengalla shall not extract more than 10.7mt ROM coal in a calendar year 2 7a Transport all coal by rail 2 7b Restrict train movements from Bengalla load point to a maximum of 16 trains per day Compliant. Bengallaextracted8.4million tonnes, 79% of their consent limits in Compliant. All coal was transported by train in 2012 Compliant. There were 826 trains in 2012, with a maximum daily train movement of eight Summary of changes (developments, equipment upgrades) During the reporting period there were no material variations from the mining operations plan, the Development Consent or the For the purposes of mining, 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. Prior to any land disturbance (clearing) being undertaken, an internal ground disturbance permit must be obtained which requires consultation with the Bengalla environment team. 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 Infrastructure development / upgrade During 2012, the Bengalla Expansion Project (BEP) was completed. BEP delivered extensions to the existing bathhouse and office facilities, as well as a workshop expansion. Other improvements, undertaken by Bengalla during 2012, included workshop and fuel farm slab repairs, and upgrades to hydrocarbon management facilities in the workshop area. Bengalla is currently repairing and improving the existing Bengalla Link Road from the Denman Road intersection to the Wantana Lane intersection. Works include repairing and strengthening the existing pavement, as well as upgrading drainage and the overall road design. The road works are due for completion by mid Mining During 2012, mining has progressed generally in accordance with the Bengalla Mine Development Consent Modification Environmental Assessment. As documented in the EA, the Southern Overburden Emplacement Area (SOEA) has been the major focus of Page 12 of 60

13 overburden emplacement throughout 2011 and 2012, in order to expedite the rehabilitation of the eastern and southern faces of this emplacement area in Overburden placement in the s20 void dumps and the Wantana 3 void dump was also conducted throughout Product coal is stockpiled onsite, prior to rail transport to the Port of Newcastle for export or to local power stations. Bengalla s CHPP utilises three coal stockpiles. 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 Bengalla Mine Development Consent stipulates that Bengalla Mine shall transport all coal by rail, and restrict train movements to a maximum of 16 laden trains per day unless otherwise approved. During 2012 Bengalla loaded 826 export trains (of 7,200 tonne and 8,500 tonne capacity), which is an average of 2 trains per day. There was a maximum of eight trains on any one day in 2012, which is compliant with development consent conditions allowing up to 16 laden trains per day. Bengalla srail spur is only accessed by locomotives that are approved to operate on the NSW rail network. Figure 5: Haul Truck being built onsite in Project area During 2012, the ratio of prime bank cubic meters (bcm) of earth moved to number of tonnes of coal uncovered was 3.7. The total amount of rehandled overburden was million bcm. At the end of 2012, Bengalla s mining fleet consisted of 27 haul trucks, 4 water carts, 1 loader and five excavators, all of which have sound suppression installed to minimise noise impacts. Sound Powel Level (SPL) tests were completed on all heavy earth moving equipment during Equipment is scheduled as per a maintenance plan. SPL test findings and maintenance plans were tracked during Where sound attenuation is not adequate for the environmental conditions, the equipment is brought into the pit and operated in restricted areas to minimise noise Coal processing, stockpiling and rail transport Coal is transported to the CHPP from the mine, where it is crushed to size and processed to remove impurities. During 2012 Bengalla improved its processing yield with an average of 78.6 per cent product coal from coal that was processed REPORTING PERIOD 2013 marks the first year of a recently approved Mining Operations Plan, which outlines the mine plans over the next three years. Forecast production figures for 2013 can be found in Table 7. During 2013, the forecast ROM coal production is 9.3Mt ROM coal per annum, which is 1.4 Mt below consented limits. Both the Main pit and Wantana pit will be mined during this time, with a focus on accelerating the Wantana pit up to the approved rate of 2.5Mt ROM Coal per year. This will create more space within approved emplacement areas. The higher dumping intensity on the SOEA will also assist to accelerate the rehabilitation of the outer faces of emplacement areas, which will aid in mitigating visual and noise impacts upon the surrounding community. The Bengalla Link Road stage one upgrade will continue through until approximately mid Other changes as outlined in the MOP may commence internal project planning cycles in Table 7: Production and Waste Summary Unit Development consent limits Production 2011 Actual 2012 MOP 2012 Actual 2013 forecast Topsoil stripped ha Topsoil stripped kbcm Topsoil used / spread ha Topsoil used / spread kbcm Waste rock (Prime BCM) mbcm Coal (Rom tonnes) Mt Processing waste Mt Saleable Coal Mt Maximum daily trains max trains/day 16 8 <16 Page 13 of 60

14 4 ENVIRONMENTAL MANAGEMENT AND PERFORMANCE Bengalla Mine is committed to effectively managing its environmental impacts, to build on a foundation of compliance and to utilise best practice where possible to prevent, minimise and mitigate environmental impacts of the operation. Throughout this section, monitoring data from the 2012 calendar year will be presented and discussed. Data will be compared to last year s results, and also, where relevant, to the predictions in Bengalla s environmental assessments (EA), particularly the EA prepared for modification four in METEOROLOGICAL Bengalla operates a real time meteorological station which records meteorological conditions and utilises radio telemetry to relay data to the Real Time Environmental Management System (RTEMS). Wind speed, wind direction and standard deviation of wind direction, air temperature, relative humidity, solar radiation, rainfall and saturation vapour pressure are all monitored and recorded at the meteorological station. A 90 metre temperature inversion tower complements the meteorological station, and measures temperature and wind speed and direction at five heights. This data is also relayed through the RTEMS. Information from the RTEMS is used to give Bengalla the ability to modify operations to suit the weather conditions, and plan blasting events for appropriate weather conditions. The meteorological station, combined with the temperature inversion tower complies with the requirements of the Approved methods for sampling air pollutants in NSW guideline, and Condition 24 in Schedule three of the development consent. Annual rainfall for 2012 was 628.2mm over 128 rain days, which is approximately 80 per cent of total 2011 rainfall. The reduction in rainfall when compared to 2011 and 2010 is evident in Figure 7, and is particularly noticeable in the last three quarters of the year. The maximum temperature for 2012 reached 41.3 degrees Celsius, and occurred in December, while the minimum temperature, minus 3.9 degrees Celsius, occurred in July. Summer winds were predominantly from the east, while winter winds were dominated by north westerlies. Further details on wind direction and speed are found in the wind roses presented in Figure 6. Figure 6: Summer, winter and annual wind roses, respectively. Page 14 of 60

15 Results from SPL monitoring of the fleet are used to generate maintenance plans where necessary, and also to identify any equipment that is to be restricted in the areas in which it can operate. Sound Power Level testing and maintenance of the mining fleet is a powerful tool to ensure that Bengalla meets its environmental noise impact assessment criteria at nearby sensitive receivers Criteria Figure 7: Monthly Rainfall, 2010 to OPERATIONAL NOISE Operational Noise 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 and maintained on 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 modelling 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. Schedule 3, Condition 1 of DA211/93 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 approved Environmental Monitoring Program details the methods used to assess compliance to development consent conditions. During 2012 Bengalla lodged a noise management plan for the approval of the DP&I and the Monitoring Program shall be updated in 2013 to reflect this plan Monitoring for the reporting period Attended environmental noise level assessments were undertaken by an independent consultant at five noise sensitive receptor sites shown in Figure 8 and Table 8. Measurements were taken in March, May, June, August, September, October and November 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 Bengalla s meteorological station. Atmospheric parameters included wind speed, wind direction, rainfall and temperature. Bengalla s inversion tower to the 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 Road areas Operational Noise Performance A summary of the noise emissions generated by Bengalla in 2012, applicable to DA211/93, is shown intable 8. These results are determined from attended noise monitoring and are as measured under prevailing atmospheric conditions. Wind speed and/or estimated temperature inversion conditions did result in development consent conditions not always being applicable. The whole mining fleet at Bengalla is noise attenuated in order to reduce noise impacts on the surrounding environment. Sound Power Level (SPL) tests are done annually. In 2012, SPL tests were completed in Jan, July, August, September, October and November. Page 15 of 60

16 Figure 8: Environmental monitoring network Page 16 of 60

17 During the reporting period, one noncompliance to noise conditions was recorded at Racecourse Road on 20 June. Operations at the time were predominantly located in the southern areas of the mine and included rehabilitation works with a D11 dozer undertaking bulk shaping on the south-eastern side of the overburden emplacement area (OEA). Field notes indicate the likely source of the increased noise level was the operation of this dozer completing rehabilitation on the OEA. All other sites complied with the development consent conditions, and the predictions outlined for 2012 in the Wantana Statement of Environmental Effects. In over 50 per cent of noise emission levels reported for 2012, Bengalla was either inaudible or not measurable. Racecourse Road monitoring results were generally a little higher than previous years. This may be attributable to the focus of overburden emplacement on the SOEA. Denman Road results are very similar to 2011 results, and when comparing 2011 and 2012 results. At the Hamilton monitoring location, seasonal variation was evident, with 2012 data lower in the winter months and higher in the summer months, which may indicate more intensive operational controls in place during winter months are proving effective in managing noise impacts Operational Noise Non-compliances during reporting period Monitoring results during the day of 20 June 2012 recorded a noise level of 41dBA (LA eq, 15min ) which is a 4dBA exceedance of development consent criteria (37dBA) at the Racecourse Road monitoring location. Upon notification of the event, operational restrictions were put in place and monitoring increased. No complaint was received as a result of the exceedance. DP&I were notified as per DA requirements and requested information on measures taken to mitigate with no further action to be taken by the Department Noise related Further Improvements During 2013 the Noise Management Plan submitted in 2012 will continue to be implemented. Following the submission of the Bengalla Continuation Project, which is expected in 2013, the environmental monitoring program will also be updated. As the SOEA reaches final height, noise management may improve as operations become shielded by the overburden emplacement area Noise Complaints There were six noise complaints on six different days in These complaints came from the Racecourse, Roxburgh Road and Wybong Road areas. This is comparable to 2011, when five noise complaints were received throughout the year. Table 8: Summary of noise monitoring results, 2012 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Period Descriptor 2 Wantana SEE Criterion db Predictions March May and 20 June August and 12 September October and 27 November N01 Racecourse Day LA eq,15min NM 41 NM 39 NA Night LA eq,15min NM 38 <30 IA Night LA 1,1min 46 - NM 53 NA 45 IA N03 Edinglassie N04 Denman N07 Hamilton N08 Moore Day LA eq,15min NA - Not monitored as Night LA eq,15min NA - could not gain IA access to site. Night LA 1,1min NA IA Day LA eq,15min IA 39 NA NM IA Night LA eq,15min IA IA IA IA Night LA 1,1min 45 - IA IA IA IA Day LA eq,15min NM IA NM NM Night LA eq,15min IA 35 Night LA 1,1min IA 39 Day LA eq,15min IA IA IA IA Night LA eq,15min IA <30 Night LA 1,1min IA 37 NA:Not applicable due to unsuitable meteorological conditions (Schedule 3, condition 1) IA: Inaudible NM: Not measurable Page 17 of 60

18 4.3 BLASTING Blasting Management Blasting at Bengalla is managed according to the Coal & Allied blasting procedure and the draft Blast Management Plan submitted to DP&I for approval in December 2012, and conditions of the development consent. Prior to each blast, meteorological data is gathered and 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 may be postponed if wind speed, wind direction or temperature inversion changes do not meet the specified Bengalla meteorological restrictions. Bengalla liaises with surrounding mines to ensure that mines do not blast at the same time as each other, avoiding cumulative impacts of multiple blasts close together. Blasting personnel from each mine communicate effectively in the morning prior to any blasts. Blast monitoring units are installed at 11 fixed locations, as shown in Figure 8, on mine owned land (Bengalla, Mount Pleasant or BHP Billiton Mt Arthur Coal) and private properties to fulfil the site s regulatory requirements in relation to blast monitoring, listed intable 9. Computer programmes that simulate blast patterns are also used to further reduce the impacts of blasting. Stringent conditions on blasting to maintain public amenity are set through the Development Consent and the Environment Protection Licence (EPL). The ARTC monitor has limits set under an agreement between ARTC and Bengalla, and limits are set to protect rail infrastructure. Results are compared to limits in the following section Blasting Performance 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 non-mine owned residential locations. No blast event may exceed120dblandlessthanfiveper cent of blasts may exceed 115dBL overpressure at non-mine owned residential locations. Ground vibration cannot exceed 10mm/s at mine owned heritage sites. Monitors are located at Edinglassie homestead and Bengalla Homestead to measure vibration at heritage sites. During 2012 no blast monitors on privately owned property exceeded 5mm/s or 115dBL overpressure. No blast events exceeded 10mm/s at Edinglassie or Bengalla Homestead. This is comparable to previous years, where there were minor exceedances of overpressure (no exceedances of vibration in the past two years, one exceedance of overpressure in 2011 and five overpressure exceedances in 2010 found to be caused by winds not blast impacts).there were no blasts recorded at the ARTC Blast monitor that exceeded the limit of 100mm/s. Table 9: Blast Monitoring Locations and Criteria Non-mine Owned Monitoring Locations St James School (SCH) Moore (MRE) Blake (BLK) Mine Owned Monitoring Locations Bengalla Homestead (BHS) Edinglassie (EGL) ARTC Wantana Boyle (BOY)* Collins (COL)* Scriven (SCR)* Carter (CTR) * Webber(WEB)* Compliance Criteria mm/s 10 and 5% * * * * * db (lin Peak) 120 and 5% and 5% 115 *Non-mine owned compliance criteria is used as a guide for monitoring at mine owned monitoring locations. These locations were previously compliance monitors as per Bengalla s development consent conditions and are now used for internal management purposes. The development consent also stipulates that there can be no more than two blasts events per day, and a maximum of four blasts per week averaged over the calendar year. These conditions do not apply to those blasts that generate a ground vibration of 0.5mm/s or less at any residence on privately owned land, or to blasts required to ensure the safety of mine workers. During 2012 there were a total of 161 blasts, of which 81 blasts generated a ground vibration of over 0.5mm/s at a privately owned residence. This equates to an average of less than two applicable blasts per week exceeding 0.5mm/s at a private residence, and an average of 3 blasts per week also counting those blasts with no or very minimal impact at privately owned residences. All blasting was carried out between the hours of 7am and 5pm, Monday to Saturday. Table 10: Blasting Performance Summary Blast summary number percentage of blasts Total blasts 161 Blasts >0.5mm/s at private residence 81 50% Average total blasts per week 3 2% Number of road closures - Wybong Rd 25 16% Number of road closures - Bengalla Link Rd 2 1% Number of rail corridor closures 0 0% Exceedances of applicable vibration and 0 0% overpressure criteria Blast result capture rate, all non-mine % owned monitors Reportable fume events 0 0% One blast overpressure and vibration reading was not recorded at one blast monitor (St James School) in 2012 (a 99.4% capture rate for this monitoring location). All other blast monitors recorded low results for this blast. The St. James school blast monitor had the Page 18 of 60

19 electronics replaced and firmware upgraded. The failure to capture the blast event was reported to regulators. This was investigated and the blast monitor captured all future blast events. There were no reportable fume events at Bengallain2012, which demonstrates a consistent decrease of fume generating blasts over the last three years, with three fume events in 2011 and five blast fume events in New explosive products and blast designs continued to be implemented, and have shown an improvement compared with previous methods. 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. Pursuant to Bengalla s Development Consent, blasting operationswithin500 metres of any road requires implementation of road closure procedures. In 2012 there were 25 road closures of Wybong Road as a result of blasting operations and a further two blasts requiring the closure of the Bengalla Link Road. There were no blasts that required the closure of the Ulan railway line during the reporting period. Bengalla mine operates road closure signs to notify road users of any closures in advance Blasting related complaints Thirteen blast related complaints from ten blast events were received in 2012, which is comparable to previous years, with 14 complaints received in 2011, and 19 complaints in 2010 (Figure 9). All complaints were received for blasts that met regulatory limits. Blasting complaints were received from the Racecourse, Wybong Road and Roxburgh Road locations. DP&I in January The management strategy outlines the likely causes of fume, and the associated control measures Bengalla will undertake in order to reduce the likelihood of fume generation in blasting, as well as emergency procedures that would be triggered upon the occurrence of a significant fume event. 4.4 AIR QUALITY Air Quality Management Air Quality at Bengalla is managed in accordance with Bengalla Mining Company s: Air Quality and Greenhouse Gas Management Plan 2012 (AQMP), and Environmental Monitoring Program 2010 In February 2012 Bengalla Mine submitted the Coal Mine Particulate Matter Control Best Practice Management Determination, which outlines the best practice measures that are currently undertaken at Bengalla, and measures that Bengalla have committed to investigate or implement in the future. An update on performance against these commitments is given in the following section. Bengalla s air quality monitoring network is shown in Figure 8andincludes: Four real time air quality monitors (E-Bam) linked to the RTEMS; Nine High Volume Air Samplers (HVAS) with five measuring TSP and four measuringpm10; and A total of 29 Depositional Dust Gauges both on and offsite. Number of complaints Year Figure 9: Blasting complaints Blasting Non-compliances during reporting period During 2012 there were no non-compliances from the conditions of the development consent, EPL or EA. One blast overpressure and vibration reading was not recorded at one blast monitor in 2012 (a 99.9% capture rate) and was discussed further in the preceding section Blasting related Further Improvements During 2012 Bengalla submitted a revised Blast Management Plan to the DP&I for approval. This management plan describes controls in place at Bengalla to manage blasting effectively and minimise impacts on the surrounding environment. A Blast Fume Management Strategy was also developed and approved by the Figure 10: Air Quality monitoring units Air Quality Monitoring Bengalla utilises four E-Bam model monitors located strategically upwind and downwind of the mine. These monitors are integrated into the site s dispatch system to enable constant monitoring of dust impacts, and when examined along with wind speed and direction data from the meteorological station, provide operational personnel with effective management tools that can be used to modify site activities to minimise environmental impacts. RTEMS generates dust alarms and wind speed alarms, which alert the pit Open Cut Examiner (OCE) and environmental staff about Page 19 of 60

20 potential operational dust impacts. Bengalla s systems require the OCE to review the operation and equipment locations in respect to the dust generated by the operation, and make changes if required to reduce the risk of excessive dust generation. Monitoring of Total Suspended Particulate (TSP), PM 10 is 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), and 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). Depositional dust samples are collected for analysis every 30 ± two days from 29 locations surrounding the mine site. Bengalla also utilises results from surrounding mines sampling to contribute to local dust isopleths. Bengalla does not measure PM2.5, however does track PM 2.5 through the Upper Hunter Air Quality Monitoring Network. During 2012, there were two days in which the PM 2.5 advisory limits were reached in Muswellbrook (6 July and 16 October) Air Quality Performance Statutory compliance criteria are detailed in Bengalla Mine s development consent. A summary of air quality compliance criteria is shown in Table 11, along with a summary of Bengalla s performance against the criteria. During 2012, the dragline was shut down to minimise air quality impacts for a total of hours, which equates to 12.8 days or 3.5 per cent of the year High Volume Air Sampling PM 10 and TSP monitoring summaries are presented in Table 12. All results in 2012 were below the annual average statutory limits. There were seven exceedances of the HVAS short term impact assessment criteria. Investigations concluded that for all exceedance events, Bengalla was not a significant contributor, as explained in Table 13. When compared to 2011 data, the 2012 annual averages at all TSP and PM 10 monitors were consistently higher (with the exception of the Constable monitor) than results from 2011, as shown in Figure 11 and Figure 12. This could be attributed to the lower rainfall recorded in 2012, along with the higher production levels consistent with the Environmental Assessment. Figure 13 and Figure 14 show the approximate locations of PM 10 monitors and the annual average values as at December 2012, compared to the air quality contours that were predicted in the EA. These figures demonstrate that, when compared to EA predictions, PM 10 values are currently lower than values predicted in 2011 and The operation, monitoring, analysis and reporting of TSP and PM 10 samplers and depositional dust gauges were undertaken by an independent contractor, AECOM Australia Pty Limited (AECOM). Table 11: Air Quality Impact Assessment Criteria and compliance Pollutant Criterion Average Period Source Compliance Total Suspended Particulate matter (TSP) 90µg/m 3 Annual average DA211/93 (Mod 4) 100% Particulate matter <10µm (PM 10 ) 30µg/m 3 Annual average DA211/93 (Mod 4) 100% 50µg/m 3 (24 hour average) DA211/93 (Mod 4) 93.5% Non-compliances are discussed in Table 13 Dust Deposition Annual Average Impact Assessment 4g/m 2 /month 2g/m 2 /month Maximum total deposited dust level Maximum increase in deposited dust level DA211/93 (Mod 4) DA211/93 (Mod 4) 93.75% (one site exceeded annual average) Not calculated, as dust gauges are recording cumulative impacts, not project alone. Page 20 of 60

21 Comparison of 2011 and 2012 HVAS data Comparison of 2011 and 2012 PM 10 data micrograms per cubic metre Wybong Road Racecourse Road Logues Lane 2011 annual average 2012 annual average Long term impact assessment criteria. St James school Wybong Road ex smiths micrograms per cubic metre Racecourse road St James school Constable Wybong Road ex smiths 2011 annual average 2012 annual average Long term impact assessment criteria. Figure 11: Comparison of HVAS results Depositional Dust Bengalla has 29 depositional dust gauges surrounding the mine. These gauges are broadly split into three categories: 1. Bengalla dust gauges: these gauges are very close to operational areas and are for internal management purposes. These gauges were mostly used to calculate background dust levels prior to the commencement of mining at Bengalla and other neighbouring operations. These monitors are also useful in ensuring accuracy in the dust isopleths, as shown in Figure 17. It would be expected that, due to the proximity to mining, that the results of these monitors will be elevated. Gauges in this category are shown in Figure 15in red. During 2012, and consistent with previous years, half of these monitors have annual averages in excess of 4g/m Other mines dust gauges: In some instances, these gauges are impacted by more than one operation; they are on mine owned land, and results are not representative of impacts on privately owned land. Gauges in this category are shown on Figure 15 in orange. These gauges are used to ensure accuracy of dust isopleths, and understand cumulative impacts. As expected, most of these gauges have elevated depositional dust levels, but are not representative of privately owned land. 3. Dust gauges representative of impacts on privately owned land: These gauges are on privately owned land, or on mine owned land further from mining activities. These gauges are shown in Figure 15in purple. All gauges in this category were below the statutory limit of an annual average dust deposition of 4g/m2/month, with the exception of gauge DC. One quarter of results in 2012 at dust gauge DC had very low ash ratios, and high visible organic content such as bird droppings, indicating this exceedance is likely due to contamination. Steps were taken throughout the year to minimise contamination, with the installation of bird perches that prevent droppings into the gauge.. Figure 12: Comparison of PM 10 results When compared to annual averages in 2011, 2012 annual averages are very similar, with the exception of DA. The annual average has dropped from 10.6g/m 2 to 2.2 g/m 2 in monitor DA. This is attributable to gauge contamination in July Figure 17 uses dust isopleths from Bengalla s monitoring sites to illustrate the depositional dust profile surrounding the mine based on the averages of the reporting period. The EPA criteria for dust deposition (4g/m 2 /mth) relates to an annual average Air Quality Complaints There were 40 complaints registered relating to air quality by Bengalla in Complaints were received from all surrounding areas of the mine, with 25 per cent of complaints passed on through the EPA, and 17 per cent of air quality complaints originating from the Golden Highway. There has been a 400 per cent increase in air quality complaints in 2012 when compared to 2011 and This may be attributable to the growth in operations both at Bengalla and surrounding operations, and the reduced rainfall in the latter part of Air Quality compliance During 2012 Bengalla remained below the long-term annual impact assessment criteria of 90µg/m 3 for TSP, and 30 μg/m 3 for PM 10. High volume air sampler data capture rates for the reporting period were 100 per cent at all sites. There were four days when the short term 24-hour impact assessment criteria of 50 micrograms per cubic metre (μg/m 3 ) was exceeded at Bengalla. These potential non-compliances and Bengalla s contribution to them are discussed intable 13. Page 21 of 60

22 Figure 13: Comparison of 2012 annual average PM 10 to Environmental Assessment 2011 Figure 14: Comparison of 2012 annual average PM 10 to Environmental Assessment 2017 Page 22 of 60

23 Table 12: HVAS Air quality monitoring summary, 2011 and 2012 Site Location 2011 Annual maximum result 2012 Annual maximum result 2011 Annual minimum result 2012 Annual minimum result 2011 annual average 2012 annual average HV1 Wybong Road HV2 Racecourse Road HV3 Logues Lane HV4 St James school HV6 Wybong Road ex smiths PM 10-1 Racecourse road PM 10-2 St James school PM 10-3 Constable Long term impact assessment criteria. PM 10-4 Wybong Road ex smiths Table 13: HVAS short term impact assessment criteria exceedances Date Site Location Total Result µg/m 3 Discussion Bengalla s Contribution µg/m 3 11 Sept 2012 PM 10-2 St James School 52.1 Independent investigation found that on the day Bengalla s contribution was approximately 8.2 per cent of the total result. Wind direction was predominantly south-east and east southeast which was in a direction away from the HVAS monitoring unit Oct 2012 PM 10-2 St James School 59.0 Analyses indicate that the mine was a smaller contributor to the measured level, contributing approximately 12.5 per cent to the measured level, in this case also it is plausible that an elevated reading would have occurred whether the mine was present or not. PM 10-1 Racecourse Road 70.4 Independent investigation, using the Inversion Tower data and other surrounding data, indicates the contribution from the mine was approximately 37 per cent, and was similar to the levels of dust received at the monitor when dust was not blowing from the mine Oct 2012 Analysis indicates that the mine was a significant, but not a dominant contributor to the measured dust level at the PM 10-1 monitor. In other words, given the high background levels, it is plausible that elevated readings would have occurred whether the mine was there or not. PM 10-1 Racecourse Road 58.2 Analysis indicates that mine contributed approximately 38 per cent of the total result, but contributed dust at levels that were approximately 25 per cent lower than the levels of dust received at the monitor when dust was not blowing from the mine. This indicates that the air reaching the monitor from the mine was significantly cleaner than the air from other directions and that the mine did not contribute to elevated dust levels at this monitor Nov 2012 PM 10-4 Ex Smiths 50.8 Independent investigation found that the results are considered to have been 26.3 PM 10-3 Roxburgh Rd 51.0 affected by regionally high dust levels on 22 November Data reviewed from monitoring sites in the NSW EPA UHAQMN indicate that regionally, the PM 10-1 Racecourse Road 61.9 hour average PM 10 level on this day was high and show similar recorded levels to those measured by Bengalla. 0.3 Page 23 of 60

24 Figure 15: 2012 dust deposition annual averages Air Quality related Further Improvements During 2012, Bengalla was heavily focussed on improvements to the way air quality impacts are managed. A new Air Quality and Greenhouse Gas Management Plan was submitted to the DP&I for approval, outlining comprehensive air quality minimisation and mitigation controls that will be implemented by Bengalla. This was approved in November 2012 and will be made available on the Bengalla Library website. The commitments outlined in the Coal Mine Particulate Matter Control Best Practice Management Determination have also been largely implemented in The two main dust generating categories that Bengalla have targeted are wheel generated dust and wind erosion of unpaved areas (unpaved roads and overburden). o material and surface characteristics (moisture content; particle size distribution; evidence of crusting) o exposure to prevailing winds, and o proximity to environmental receivers, Established time periods within which interim stabilisation measures are to be applied for identified areas. The program applies the most relevant dust suppression technique based on the time of year the area is identified and the length of time it will remain exposed. Water cart efficiency and utilisation is monitored. The other focus area has been examining improvements in the management of exposed overburden to minimise dust control. Bengalla have trialled a program in which: A process has been established whereby mine planning identifies, on a quarterly basis, areas available for application of interim dust suppression measures. Exposed overburden emplacement areas were reviewed to assess: o the period over which such areas are to remain inactive Figure 16: ROM Hopper at Bengalla - enclosed and equipped with water sprays to minimise dust generated during tipping Page 24 of 60

25 Figure 17: 2012 Depositional dust isopleth annual averages. The annual average isopleth above shows the depositional dust levels in g/m 2 /month. The vertical scale on the bottom right corner shows the range of depositional dust levels in g/m 2 /month. Page 25 of 60

26 4.5 SPONTANEOUS COMBUSTION Spontaneous Combustion and Acid Rock Drainage Management Spontaneous combustion occurs when 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. Due to the potential risk and hazards associated with generation of combustion, production of smoke and odour, spontaneous combination is managed at Bengalla in accordance with the Coal & Allied Procedure and the Bengalla Acid Mine Drainage and Mineral Waste Management Plan. During 2012, Bengalla utilised the application of both the management plan and procedures to ensure that spontaneous combustion was minimised. The Archerfield sandstone, found in the Wynn interburden, has some potential for acid generation. The placement of reject, carbonaceous and acid rock drainage material is planned at least 5m below the final landform in order to minimise the possibility of spontaneous combustion associated with any carbonaceous material in the rejects. Reject and ARD material is limited in the southern part of the SOEA to maintain the alluvial aquifer quality. 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 o fspontaneous combustion at Bengalla. 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 OEA waste dump. In addition, weekly inspections are completed by the mine geologist for visual indicators of spontaneous combustion. Inspections in the CHPP stockpile area are conducted when hot coal is identified. Where hot coal occurs, the product is passed through the washery to decrease temperature and remove the risk of spontaneous combustion. Bengalla s response to any potential spontaneous combustion includes ongoing visual inspection and use of encapsulation controls Spontaneous Combustion Performance During the 2012 reporting period, three reports of spontaneous combustion were made. Two of the three reported locations had regular monitoring completed prior to material being removed and buried as required whilst the third site will be sealed up with clay and not mined. No environmental incidents due to spontaneous combustion were reported during the 2012 reporting period and where hot coal or spontaneous combustion was identified, this was managed appropriately Spontaneous Combustion Complaints and Compliance There were no non-compliances and no complaints relating to spontaneous combustion during the reporting period. 4.6 GREENHOUSE Greenhouse Management Bengalla is part of Rio Tinto Coal Australia (RTCA) and is committed to addressing climate change throughout its business and focus has been given to ensure this issue is considered in business decisions. Bengalla works in line with the RTCA strategy for addressing climate change. RTCA 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. During 2012, Bengalla worked with RTCA to continue to improve business systems to ensure ongoing compliance with Australian Government legislation. Work progressed on the second five-year cycle required under the Energy Efficiency Opportunities Act 2006 (EEO), and continued to report under the National Greenhouse and Energy Reporting Act 2007 (NGER). This reporting provides the data used for the carbon pricing mechanism introduced in July 2012 under the Clean Energy Act Under NGER, Rio Tinto is required to report its annual greenhouse gas emissions, energy use and energy production. The company submitted its report for the period 1 July 2011 to 30 June 2012 to the Government in October For this reporting period, Bengalla implemented a new industry methodology to more accurately estimate its fugitive emissions from coal extraction instead of using the default emission factor. In accordance with EEO, Bengalla is required by the Rio Tinto Group to assess its energy usage, identify and evaluate opportunities for improvement in energy use, and to report publicly on the assessments undertaken. This includes the action the business intends to take as a result. EEO requires Bengalla to identify and report progress on opportunities over a five year cycle. The second EEO reporting cycle commenced on 1 July 2011 and will run until 30 June Work undertaken in 2012 included preparatory planning work, compilation of energy use information and completion of a detailed energy mass balance for the site. In June 2011, Rio Tinto was subject to a series of onsite verification audits, including RTCA, to determine its risk of non-compliance with the EEO Act by the Department of Resources, Energy and Tourism. Outcomes from the audits, provided in 2012, found that overall Rio Tinto demonstrated a high level of compliance with the requirements of EEO and in some areas demonstrated leading practice. Page 26 of 60

27 Since 2008 RTCA has had a process for setting energy usage targets at each site for periods of three years. Bengalla s three energy metrics are: Dragline energy usage per material moved Haul energy usage per material moved CHPP energy usage per material handled. These metrics were tracked throughout 2012 at a site level and results were reported to RTCA. RTCA continues to invest in research and development initiatives to find ways to reduce greenhouse gas emissions throughout the coal chain, with focus on; Research to identify new technologies; Technology upgrades to improve the way coal is burned; and Supporting a policy environment to enable the deployment of low emissions coal technologies. Programme The Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) Outcomes The CO2CRC conducts research and development into carbon capture technologies and the geological aspects of carbon storage technologies. Its current focus is the Otway Project in Victoria, Australia's first demonstration of the deep geological storage, or geosequestration, of carbon dioxide. Rio Tinto Coal Australia personnel are on the board of the CO2CRC, playing a leading role in managing the operational aspects of the pilot project which has successfully demonstrated the injection and storage of 65,000 tonnes of carbon dioxide. This project has developed and proven monitoring techniques for geological storage of carbon dioxide and significantly advanced the understanding of the regulation of carbon dioxide storage. RTCA has provided the CO2CRC with $3 million in funding over 3 years. A further $3 million in RTCA funding over the subsequent 3 years will support the CO2CRC Otway Project. As a result, RTCA supports the initiatives outlined intable 14. Table 14: Greenhouse Gas Initiatives supported by RTCA Programme Outcomes COAL21 Australian black coal producers contribute a voluntary levy to the Coal21 Fund to support the development of low emission coal technology in Australia. The fund will raise $1 billion. Rio Tinto Coal Australia committed $6.2 million in 2012 and has committed $48.55 million to this fund since To date, the fund has committed more than $568 million to support specific low emission coal demonstration projects, $20 million for Queensland geosequestration studies, and $75 million for the Australian Low Emission Coal Council Research and Development Programme. Australian Rio Tinto Coal Australia s Managing director was National Carbon appointed to NCCSC, NSWCCC and QCCC. ANLECC Capture and developed the National Low Emission Coal Strategy for Storage Council the Australian Government. This strategy has (NCCSC); the contributed towards the establishment of the Australian New South Wales Government s $2 billion CCS Flagship Programme to Clean Coal support commercial scale demonstrations of CCS in Council Australia. The QCCC advises the Queensland (NSWCCC) and Government on low emission coal initiatives in the state the Queensland of Queensland. Clean Coal Council (QCCC) Greenhouse Performance Bengalla completes biannual and annual reporting on carbon dioxide emission production and abatement including: Australian Coal Association Research Programme (ACARP) Global Carbon Capture and Storage Institute (GCCSI) Australian black coal producers contribute five cents per tonne of product coal to fund research and the development of technologies that lead to the safe, sustainable production and utilisation of coal. During 2012 this contribution was around $2.3million. ACARP is currently funding a number of research projects designed to develop practical methods for estimating fugitive emissions from coal mining. There is also considerable research activity on the reduction of dust emissions from coal during transport to and storage at the major export terminals in Australia. More information about this and other research projects is available on the ACARP website. GCCSI has been established by the Australian Government to facilitate the deployment of commercial scale CCS demonstrations anywhere in the world. Rio Tinto is a foundation member of the GCCSI and has contributed, together with other members, to the development of its work programme. 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. National Greenhouse and Energy Reporting Scheme (NGERS). In 2012 a total of 1,606,403 Gigajoules (Gj) of energy was consumed at Bengalla, equating to Gj/tonne of product coal. A total of 77.43kg of carbon dioxide equivalent (CO2-e) per tonne of product coal was produced from operations at Bengalla in 2012, as shown in Figure 18. The predominant source of greenhouse gas emissions is fugitive emissions from coal seams, with 70 per cent of total emissions attributable to coal seam gas, 17 per cent diesel emissions, and 11 per cent electricity consumption in 2012.This is consistent with 2011 data. GHG production is consistent or lower than that predicted in the Environmental Assessment. Diesel consumption by haul trucks is approximately100 tonnesco2-e lower in 2012 than the value predicted for 2011 in the Environmental Assessment. Page 27 of 60

28 Bengalla s tonnes of CO 2 -e/t produced per tonne of saleable coal decreased in 2012, as shown in Figure Greenhouse Non-compliances during reporting period During the reporting period there were no material variations from the mining operations plan, the development consent or the environmental assessment in relation to greenhouse gas emissions. CO2-e per tonne coal produced Greenhouse Gas per tonne Product Coal Figure 18: Greenhouse gas per tonne of product coal Greenhouse related Further Improvements During 2012 Bengalla Mine will consider new projects that may be suitable for inclusion in round two of the Energy Efficiency Opportunities Programthat will operate over the next five years. Sediment laden runoff from disturbed areas is treated prior to re-use in the water management system or release into the natural environment; Stormwater runoff and groundwater collected within pit areas is controlled and managed appropriately; Minimal discharge of surplus mine water off-site (i.e. promote recycling of captured water) Water imported from the Hunter River is minimised whenever possible. Bengalla measures water quality in the Hunter River upstream and downstream of their operations to monitor potential impacts the operation may have Surface Water Performance During 2012, Bengalla pumped ML water from the Hunter River, 161% of the total water pumped in 2011, and 79% of its licensed allowable amount (at 100% allocation) under the Water Management Act was significantly drier than 2011, which may have contributed to the increase in water usage. No water was discharged from the site during this reporting period. Bengalla has a focus on reducing fresh water usage, and has a number of KPI s which are tracked monthly to monitor performance. In 2012, all water KPIs were met, as shown intable16 which demonstrates Bengalla s effective water management. Table 15: 2012 KPI's - Water 4.7 SURFACE WATER Surface Water Management The key document used to manage surface water at Bengalla is the Water Management Plan, which includes management plans for the following aspects: water balance, drainage path diversion erosion and sediment control, surface water management, groundwater management and surface and groundwater response. The Water Management Plan was approved by the DP&I in 2012, and can be found on the Bengalla Library website. Bengalla is permitted under Water Supply Works Approval 20WA and associated Water Access Licence WAL to withdraw a maximum of 1,499 units (1,499ML for years of 100% allocation) of fresh water each year from the Hunter River. Bengalla participates in the Hunter River Salinity Trading Scheme (HRSTS), enabling discharge to the Hunter River under certain river flow conditions. Bengalla s water management system is designed to ensure: Water Targets Units 2012 YTD 2012 Target Fresh water use per licence year Fresh water use per tonne of product Recycled water as a proportion of total water used HRSTS water discharged Megalitres <1000 L/t % Megalitres 0.0 No Target Electrical Conductivity (EC), potential Hydrogen (ph), and Total Suspended Solids (TSS) are monitored on a monthly basis at four Hunter River sampling sites, three upstream (W01, W02 and W03) and one downstream (W04) of Bengalla s operations, as shown in Figure 20. The monitoring data indicates that Bengalla s mining activities have not significantly impacted Hunter River water quality throughout 2012.pH and TSS results were within ANZECC guidelines for aquatic ecosystems (2000), with the exception of two upstream TSS results in January. EC ranged from 296 to 875 throughout the year, with upstream and downstream results following similar patterns. Water runoff from undisturbed catchment areas is diverted away from the mining area, where possible; Page 28 of 60

29 Table16: Bengalla water balance 2012 Water Input Volume (ML) improved transparency and alignment of Bengalla s water balance with other coal mining operations throughout the Hunter Valley. Pumped from Hunter River 788 Recycled water Treated & Potable Water 10.6 Rainfall and Catchment Area -run off Groundwater reporting to open cut pits 51 Total Inputs Water Outputs CHPP 1318 combined into open water Water carts evaporation/seepage Discharge under HRSTS 0 Open water evaporation/seepage Total Outputs Water Balance for Surface Water Non-compliances during reporting period During the2012 reporting period a new water management plan was lodged and approved by DP&I. There was one reportable water incident in the reporting period. In January, a valve failure led to an uncontrolled discharge of water. As soon as the event was discovered the pipe was isolated. The event was reported to the EPA and was fully investigated. There was no evidence of environmental impact as a result of the event.no further actions have been required by the EPA to date. There were no further reportable events or statutory non-compliances during Minor incidents are reported, investigated and actioned through Bengalla s Environmental Management System incident reporting processes Surface Water related Further Improvements Bengalla Mine, through its participation in the NSW Minerals Council Upper Hunter Mining Dialogue, and Rio Tinto s membership of the Minerals Council of Australia, has committed to implementing the Minerals Council of Australia Water Accounting Framework for the Minerals Industry. The adoption of this framework over the next few years will see an improved accounting measure for groundwater management, including a better understanding of groundwater inflow to pits. Adoption of the water accounting framework will result in Figure 19: Raw Water Dam - Hunter River intake 4.8 GROUNDWATER Ground Water Management Bengalla manages groundwater through its Water Management Plan and the Environmental Monitoring Program. Bengalla has a comprehensive groundwater monitoring network in place, targeting three aquifers: an unconsolidated aquifer, a shallow hard rock aquifer, and a deep hard rock aquifer. Groundwater monitoring focuses around the Wantana Pit, which is closest to the alluvial land to the south of the mine. Under undisturbed conditions, the potentiometric surface (pressure head) of groundwater in the coal seams is higher than that of the alluvial water table, and there is potential for discharge from the coal seams to the base of the Hunter River alluvium in areas where the coal seams subcrop beneath the alluvium. Evidence for this is generally poorer quality water in the basal gravel. Depressurization of the coal seams by open cut mining therefore has the following potential impacts on the Hunter River alluvial aquifer: reduce the rate of discharge from the coal seams to the base of alluvium; reverse hydraulic gradients, resulting in leakage from the Hunter River alluvial aquifer to the coal seams where they subcrop beneath the alluvium to the south of the mine, and discharge of this alluvial water to the mine pit. The objective of the groundwater monitoring program at Bengalla Mine is to assess these potential impacts. Interrogation of groundwater monitoring results is undertaken periodically to understand if any factors such as irrigation, changes in the Hunter River, or aquifer depressurisation are occurring. This is essential in order to trigger response plans if and when required. Page 29 of 60

30 ph data collected from the Hunter River monitoring sites between January 2012 to December 2012 during routine sampling events ph (units) Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 W01 Hunter River - Downstream of Kayuga Road Bridge W03 Hunter River - Muswellbrook Racecourse W02 - Hunter River - Upstream of Merriwa Railway Bridge W04 Hunter River - Whites Creek Vineyard Upper and Lower ph Criteria EC data collected from the Hunter River monitoring sites between January 2012 to December 2012 during routine sampling events EC (µs/cm) Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 W01 Hunter River - Downstream of Kayuga Road Bridge W03 Hunter River - Muswellbrook Racecourse W02 - Hunter River - Upstream of Merriwa Railway Bridge W04 Hunter River - Whites Creek Vineyard TSS data collected from the Hunter River monitoring sites between January 2012 to December 2012 during routine sampling events TSS (mg/l) Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 W01 Hunter River - Downstream of Kayuga Road Bridge W03 Hunter River - Muswellbrook Racecourse ANZECC (2000) Upper and Lower TSS Criteria W02 - Hunter River - Upstream of Merriwa Railway Bridge W04 Hunter River - Whites Creek Vineyard Figure 20: Hunter River surface water monitoring results for ph, Electrical Conductivity (EC) and Total Suspended Solids (TSS) during 2012 Page 30 of 60

31 Figure21: Water monitoring locations Page 31 of 60

32 4.8.2 Ground Water Performance Monitoring results show that during the reporting period irrigation has not influenced groundwater levels around Bengalla. Monitoring bores within the unconsolidated Hunter River alluviums are influenced by both the water level in the Hunter River and local rainfall, indicating they are recharging from both sources. As shown in Figure 22, groundwater levels are strongly correlated with Cumulative Rainfall Departure (CRD), which is the cumulative difference between long term average monthly rainfall and actual observed monthly rainfall. CRD can be used to assess if groundwater level variations are due to natural factors, or other issues such as mining impacts. Water levels measured in the Wantana extension bores have recorded rising water levels in response to above average rainfall since early During 2012, a declining trend in water levels has emerged, which is again well correlated with the period of below average rainfall. Figure 22 also shows a correlation between the water level measured in the Hunter River and measured groundwater bores Ground Water Non-compliances during reporting period During the reporting period there were no material groundwater variations from the mining operations plan, the development consentorthe environmental assessment Ground Water related Further Improvements Future groundwater studies will continue to analyse the zone adjacent to the Wantana Extension to further understand if mining is the cause of the depressurisation of the underlying Permian. Figure 23 illustrates the water table surface within the Hunter River alluvium interpolated from water level measurements in June and July This figure also indicates a groundwater flow similar to the Hunter River, downstream and to the south-west with a hydraulic gradient of 0.001, or about 1.1m per kilometre. Groundwater levels closer to the southern border of Bengalla do not follow this regional trend, but show a gradient towards the mine, suggesting a narrow zone adjacent to the Wantana Extension may be impacted by depressurisation of the underlying Permian due to mining. The coal seams and interburden in the Wantana extension area to the south of the mine have been depressurised as a result of mining. There is potential in this area for leakage from the alluvium to the coal seams. Consistent with the 2011 reporting period, WAN8A has shown a decline in water level. This bore is an uncased hole, so water levels may be influenced from any intersecting aquifers. It is also the deepest bore in the monitoring program, which may explain the isolated anomalies at this site that are not visible at any other monitoring bore. It is possible that the rapid drawdown is due to the aquifer being connected to mining activities through either a permeable structure such as a fault or through deep strata where no other monitors are located. WAN 8 is not connected to the unconsolidated Hunter River alluvial. This is consistent with the assessment in the Wantana Extension Statement of Environmental Effects 2007 (SEE), where an average inflow of up to 0.13 Megalitres per day was predicted for the Wantana Extension during the year The Wantana SEE predicted groundwater depressurisation further to the east and south, but that the extension to the depression area will be constrained by the subcrop of the coal seams and the Hunter River. Page 32 of 60

33 Figure 22: Hydrographs of alluvial bores of- Wantana extension area Page 33 of 60

34 Figure 23: Alluvial Groundwater Level, June/July 2012 Page 34 of 60

35 4.9 EROSION AND SEDIMENT CONTROL Erosion and sediment management Erosion and sediment control is managed at Bengalla through the comprehensive Water Management Plan, which was approved by DP&I during 2012 and is available on the Bengalla Library website. Erosion and sediment control devices have been designed and constructed in accordance with current recommended design standards in the following guidelines: Managing Urban Stormwater, Soils and Construction, (Landcom, 2004); and Managing Urban Stormwater, Soils and Construction, Volume 2E Mines and Quarries (DECC, 2008) Erosion and Sediment Performance Inspections of key structures and drainage lines were carried out every three months in 2012 and after significant rain events to monitor levels of erosion and sedimentation and ensure appropriate controls are implemented where necessary. Planned desilting works were carried out on the following dams during 2012: Endwall Sediment Dam Wantana West Sediment Dam South loop sediment Dam East Windmill Dam West Windmill Dam East facilities Sediment dams West facilities Sediment dams North ROM dam South ROM sediment dam During 2012 all erosion and sediment control structures performed well, and there were no incidents recorded in relation to erosion and sediment control in the reporting period Erosion and sediment non-compliances during reporting period During the reporting period there were no material variations from the mining operations plan, the Development Consent or the Environmental Assessment Erosion and sediment related further improvements During 2012, dam construction started on: Bengalla West SOEA Sediment Dam Bengalla East SOEA Sediment Dam Construction will continue on these projects in In combination with careful land management, these dams will manage the impacts of erosion and sediment runoff from overburden emplacement areas, minimising land degradation. Figure 24: Mine Water Management - Looking towards Bengalla from Endwall Dam 4.10 ABORIGINAL HERITAGE Aboriginal Heritage Management Aboriginal cultural heritage management is undertaken in accordance with Bengalla s Aboriginal Cultural Heritage Management Plan. Bengalla s Aboriginal Cultural Heritage Management Plan was updated in 2012 as per the Development Consent Modification conditions. During the development of the Management Plan, OEH and the local Aboriginal community were consulted before submitting the plan to the DP&I. The Management Plan was approved in November 2012 by DP&I. Archaeological land heritage assessments are conducted 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. The current 21 year disturbance limit for Bengalla had indigenous archaeological impact assessments conducted during the development of the Environmental Impact Statement in 1992 and subsequent modification assessment documents. Any artefacts that were within land to be disturbed were salvaged as under Section 90 of the National Parks and Wildlife Act The aboriginal archaeological sites which have been protected were fenced off to prevent any future disturbance. The protected sites are managed in accordance with Bengalla s Aboriginal Cultural Heritage Management Plan. The archaeological sites which are fenced are inspected to ensure that the condition and protection is maintained Aboriginal Heritage Performance During 2012an annual archaeological area inspection was completed and a number of archaeological sites checked as part of due diligence during the ground disturbance permit process. Archaeological surveys were also conducted to investigate and identify archaeological sites west of the current mining operation. Page 35 of 60

36 The information collected during the surveys will be used to assist in future development applications and in the protection of any identified artefacts Aboriginal Heritage Non-compliances during reporting period There were no non-compliances relating to Aboriginal cultural heritage in the reporting period. There were no complaints received during 2012 relating to Aboriginal cultural heritage. In accordance with the predictions and commitments made in the environmental assessments, no significant impacts occurred on any non-indigenous heritage as a result of Bengalla s operations Non-Aboriginal Heritage Non-compliances during reporting period During 2012, no variations were made in regard to control strategies in regard to maintaining heritage sites. All sites were managed as per the requirements of the Bengalla s procedures and no incidents or complaints were reported in regard to heritage site management during the 2012 reporting period Aboriginal Heritage related Further Improvements In 2013, Bengalla will continue to comply with the mitigation and management measures outlined in the approved Aboriginal Cultural Heritage Management Plan.Monitoring for Aboriginal Cultural Heritage material will continue to be undertaken during the topsoil stripping and overall mining processes at Bengalla. Site employees and contractors will continue to be made aware of the importance of archaeological sites via the provision of training and the onsite induction process NON-ABORIGINAL HERITAGE Non-Aboriginal Heritage Management In 2012, an updated European Heritage Management Plan was prepared in consultation with the DP&I, OEH, Muswellbrook Shire Council, Family History Society and the Heritage Council NSW following the approval of Bengalla s fourth Development Consent Modification. The Management Plan was approved by DP&I in November 2012 and is required to be applied during the SOEA works to ensure heritage sites are maintained and protected. 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. To maintain European Heritage sites, Bengalla undertakes ongoing ground maintenance at all identified heritage areas including, the Keys Family Cemetery and the Blunt s Butter Factory Non-Aboriginal Heritage Performance Regular maintenance works at Bengalla Homestead and Overdene properties were conducted in 2012 and this included pest control, quarterly pest inspections, cleaning, repairs and ground maintenance. During 2012, the Bengalla Homestead had a range of upgrades made including the establishment of trees complementary to the existing garden to act as a visual screen between the Homestead and the SOEA. Additionally, fire response infrastructure was installed (tanks and pumps), a perimeter security fence was established and the existing fire alarm system was improved. The works were completed as per commitments outlined in the Bengalla Homestead Complex Conservation Management Plan. Figure 25: Overdene homestead Non-Aboriginal Heritage related Further Improvements To ensure that the heritage sites are maintained into the future and any potential risks or hazards are identified, the heritage sites shall continue to be managed in 2013 as per the requirements of the current European Heritage Management Plan VISUAL AMENITY AND LIGHTING Visual Amenity and Lighting Management To manage any offsite lighting impacts and ensure that the visual amenity of surrounding residences are impacted as little as possible, Bengalla operates under a Landscape Management Plan. This plan was reviewed and resubmitted to DP&I for approval in December To comply with the modified Development Consent, Bengalla is required to implement all reasonable and feasible measures to mitigate the visual and off-site lighting impacts of the development and ensure no outdoor light shines above the horizontal. Management measures utilised at Bengalla to minimise visual and stray light impacts include: ensuring light casing and direction of lights are assessed, establishing visual bunds to improve the visual amenity of the site, annual visual impact surveys, and completion of nightly attended visual and lighting monitoring by mining personnel Page 36 of 60

37 Figure 26: Comparison of 2011 and 2012 SOEA works on visual impact from Muswellbrook Racecourse Visual Amenity and Lighting Performance 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 against impacts and controls in place. The level of screening in place and the exposure of the operations to the public are documented at each location. A visual and lighting assessment conducted as part of the Development Consent Modification four identified that some lighting impacts would occur if screening by topography and overburden was not present. During 2012, the fifteen locations were assessed in comparison to Bengalla s EIS and the 2010 Development Consent Modification Environmental Assessment predictions. Observations made during the 2012 visual impact survey showed that overall, visual impact of the Bengalla mine site is low and that the visual amenity is improving as the outer overburden emplacement areas have rehabilitation works completed. The visual amenity is aligning to the predictions set out in the 2010 EA Visual Impact Assessment. The visual impact of the SOEA continues to be low, the Wantana OEA has been progressively rehabilitated during 2012 and the rehabilitation completed in 2011 on the ROM Hopper OEA (centre of the eastern face) has resulted in general improvements in visual amenity. Bunding along the northern boundaries of the mining lease were maintained during the reporting period. This bund progresses westward to the current mining disturbance limit to ensure compliance with the mining operations plan and mitigation of visual and noise impacts, particularly along Wybong Road. The purposeplanted tree screen has continued to provide an effective screen throughout 2012 and only small areas of the Northern Visual bund and Wybong Road dump were distinguishable. Consistent with the MOP, during 2012 works commenced on the Southern Overburden Emplacement Area and continued at the Wantana Extension. The overburden emplacement areas are visible from Bengalla Link Road, Roxburgh Road, Denman Road and Muswellbrook. The visual amenity of these areas may improve as tree plantings establish on Bengalla Link Road and Roxburgh Road mature and as rehabilitation is completed and developed on the overburden areas. Rehabilitation works during 2012 Bengalla were completed on the RL270 and also on the remaining southern section of the Eastern Overburden Emplacement area. The visual amenity of the eastern face will improve as the rehabilitation areas become established with improved pasture and native tree species. An improvement of visual amenity from 2011 was observed from Racecourse Road and Muswellbrook South during the 2012 period. During 2012, toolbox talk presentations were given to all production teams in regard to lighting plant set up and the development consent modification requirements for lighting. Additionally, the nightly inspection field sheet completed during the nightly visual and noise inspections were updated to align inspections to the visual and lighting requirements. Five complaints were received in regard to lighting and these were dealt with appropriately at the time, including visual inspection near the residence of concern and movement of lighting plant if required Visual Amenity complaints during reporting period Three lighting complaints were received from the Roxburgh Road area in This is slightly more than in 2011 and Page 37 of 60

38 Visual Amenity and Lighting Non-compliances during reporting period No incidents or non-compliances were reported in the 2012 reporting period in regard to visual amenity and lighting Visual Amenity and Lighting related Further Improvements During 2013 Bengalla will continue to adhere to the site procedures and processes and the Development Consent requirements. Where community concerns are raised, visual inspections will be conducted and if any offending lighting is found, these will be corrected to minimise offsite light impacts WASTE MANAGEMENT Waste management bunding and containment to isolate and prevent site contamination; regularly updated contaminated land site register; quarterly soil monitoring of the Total Petroleum Hydrocarbon levels; and formal process utilising external contaminated land consultants to decommission contaminated sites. Bengalla operates a bioremediation facility where any soil contaminated with hydrocarbons is placed for remediation (Figure 27). The bioremediation facility consists of four active cells where the bioremediation process occurs. The four cells are fitted with an automated irrigation system to ensure soil conditions are optimal for beneficial bacteria and microbes to accelerate the remediation process. Bengalla operates a comprehensive waste management system that manages waste through 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 Waste performance In 2012, 1690 tonnes of waste were recycled, which was 85 per cent of total waste. The total weight of material disposed at landfill sites was 295 tonnes, which is a 3% increase since The major waste streams recycled at Bengalla in 2012 were effluent, scrap metal and waste oil. 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 (e.g. bins, locations) that could improve the waste management performance was sought. 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 construction activities associated with the Bengalla Expansion Project and an increase in the mobile equipment fleet and therefore greater servicing requirements CONTAMINATED LAND Contaminated Land Management 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. The control measures include: waste management and recycling; Figure 27: Bioremediation facility - four cells showing tilled contaminated soil Contaminated Land Performance During the 2012, no contaminated material was found apart from the material taken to the bioremediation facility. All soil material deemed above criteria was taken to the bioremediation facility. A total of 27 incidents occurred during the 2012 reporting period in regard to hydrocarbon spills. The appropriate control, containment and clean-up practices were applied at the time of each incident and a description of the incidents associated with land contamination is provided in Appendix 2. There were 3 significant ( 500L) hydrocarbon spills reported during 2012: (31/3/12) Loader 1 hydraulic oil spill due to a split hose (1200L). The contaminated soil was recovered and placed in the bioremediation farm. (8/7/12)1700L of hydrocarbon was spilt at the pit refuel bund during refuelling of a fuel delivery truck. The hydrocarbon was removed by sucker truck. (07/12/12) Excavator 2 was found with a failed hydraulic hose coupling. Approximately 1000L of hydraulic oil was lost over an unknown period of time. No single large hydrocarbon spill occurred. prompt spill response and remediation, Page 38 of 60

39 Contaminated Land Non-compliances during reporting period During the reporting period there were no non-compliances in relation to contaminated land management when assessed against the mining operations plan, the development consent or the environmental assessment Contaminated Land related Further Improvements No variations to the control strategies were implemented in 2012 and during 2013, contaminated land management will continue to be managed as required under Bengalla s procedures FLORA AND FAUNA Flora and Fauna Management RTCA has developed a proactive and coordinated approach to plan, monitor and review the effective management of key biodiversity features of land holdings. Bengalla has implemented the RTCA Hunter Valley Biodiversity Action Plan. This plan incorporates all Coal & Allied s operations and risk assesses 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. The mining operation areas at Bengalla are located predominantly across Class IV and Class V grazing and agricultural land. The land has previously experienced extensive agricultural disturbance prior to mining. The majority of the leases have been cleared, grazed and historically invaded by exotic grasses and shrubs. Fauna habitats on the Bengalla Mine Lease are generally areas with low conservation significance. Flora and fauna impact assessments were conducted by independent consultants as part of the EA prior to the commencement of work associated with Modification Four. The fauna impact assessment identified that disturbance would occur on grassland predominantly of exotic pasture and no native plant communities would be impacted. The fauna impact assessment did not identify any listed threatened fauna species. The flora impact assessment included desktop searches, reviews and targeted field surveys. The assessments did not identify any listed threatened flora species or Endangered Ecological Communities (ECC) within surveyed areas Flora and Fauna Performance Throughout the 2012 period, land clearance and ground disturbance was conducted in areas which included either low diversity derived grasslands or exotic pastures. Any ground disturbances that occurred in 2012 was conducted as per the Bengalla Ground Disturbance Permit requirements. During the 2012 reporting period tree clearing was only conducted on a minimal area of land. Areas which required ground disturbance had environmental inspections conducted prior to any works going ahead. The inspections focused upon identifying tree and shrub species at the areas and assessing the potential fauna habitat value of vegetation. As per Bengalla s procedure; when vegetation is cleared, it is slowly knocked to ground and left overnight to allow wildlife to move on. The felled vegetation is then placed in the rehabilitation area following removal for habitat development Flora and Fauna Non-compliances during reporting period During 2012, no environmental incidents in regard to threatened flora or fauna occurred and no variations to control strategies were required. In 2013, Bengalla will continue to manage flora as per the Bengalla Ground Disturbance Procedure and Coal & Allied Procedures. 5 STAKEHOLDER RELATIONS 5.1 COMPLAINTS MANAGEMENT Bengalla provides an environmental hotline ( ) which allows community members to raise concerns 24 hours, 7 days a week. Bengalla maintains a complaint register and all complaints registered are provided to the Production Manager and the General Manager as part of the communication process. 5.2 COMPLAINTS PERFORMANCE Bengalla received a total of 72 complaints in the 2012 reporting period. This was an increase in complaints since the 2011 reporting period in which 31 complaints were received. An increase in complaints was received during the month of September when wind speed resulted in visible dust around Bengalla. During this period, operations ceased and appropriate mitigation measures were undertaken operational personnel. A summary of the key concerns is provided intable 17.All complaints which were received during the 2012 reporting period and the actions taken are provided in the complaints summaries available on the Bengalla Library website. Table 17: Community Complaints 2012 Issue Complaints received in 2012 Blasting 13 Fume (Blasting) 0 Dust 40 Noise 6 Other 13 Total 72 Figure 28 illustrates the increase in complaints during the reporting period. Dust complaints are primarily responsible for the increased number of complaints, with an increase of 400 per cent from 2011 and individual dust complaints were received over 28 days, with up to Page 39 of 60

40 three complaints on any one day. During 2012 Bengalla utilised considerable resources to increase understanding and implementation of best practice dust controls, such as dust suppression on haul roads and increased focus on the management of exposed areas to reduce dust generation. A revised Air Quality Management Plan was also submitted to the DP&I for review. There were no fume complaints during 2012, which may indicate effectiveness of the fume management protocol that was implemented during During 2012, the dragline was shut down to minimise air quality impacts for a total of hrs. This equates to days or 3.5 per cent of the year. Other complaints also increased four-fold during Lighting complaints and complaints about stock on public roads made up the majority of complaints in the other category. A number of complaints in this category did not originate from operations or land management at Bengalla, however, are logged at the request of the complainant. operates, with almost $2 million invested across the Hunter in partnerships with community groups and businesses. For more information about our Community Development Funds, including a full listing of partnerships, visit Coal & Allied has recommitment $4.5 million to a fifth round of funding for the Coal & Allied Community Development Fund (CDF), to be allocated over a 3 year period ( ). The CDF has contributed more than $12 million since 1999 into community projects in the LGA areas of Maitland, Cessnock, Singleton, Muswellbrook and Upper Hunter. More than 112 projects have been supported since the fund s inception and 25 programmes remain active in the community. In 2012, the CDF committed $1,362,452 for 12 new programmes, with the investment profile shown in Figure 29. Noise complaints remained relatively consistent with previous years. Figure 29: Coal & Allied Community Development Fund CDF 2012 project investment profile Figure 28: Comparison of complaints, REVIEW OF COMMUNITY ENGAGEMENT Bengalla has a strong commitment to responsibly managing environmental and social impacts of its mining operation. Bengalla s community relations programme is focused on building enduring relationships based on mutual respect, active partnerships and long term commitment. During 2012 Bengalla s employees numbered 411 full time staff. Bengalla encourages its employees to live locally and 47 per cent of employees reside in the Muswellbrook Shire. Operations at Bengalla have contributed over A$52.8 million to the Hunter Region s economy through rates and royalties. Bengalla contributes to programmes identified by, and preferably in partnership with, local communities. Bengalla and Coal & Allied s belief is that effective partnerships stem from shared goals, mutual commitment and proven outcomes. In 2012 Coal & Allied continued its focus on the long term sustainability of the communities where it The Bengalla Community Support Team consists of 17 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. The support provided to the local community during 2012 is outlined in Table 18. Table 18:Bengalla's local community investment 2012 Grouping $ Contribution in 2012 Education 79,707 Social 88,771 Environment 2,000 Economic 3,000 Total $173,478 During 2012, Bengalla contributed to the education and career development of students from Muswellbrook High School with the provision of scholarships for both undergraduate studies and engineering. Bengalla will continue to support local students with scholarship programs being made available in Page 40 of 60

41 In 2012, Bengalla has undertaken a range of consultation activities, including: Bengalla Community Consultative Committee (CCC) meetings; Minutes of each of these meetings are available at the Muswellbrook and Denman Library and on the Bengalla Library website. Updates for the business community, including the Muswellbrook Chamber of Commerce breakfast held at the Coal & Allied shopfront in September 2012; Provided information on employment opportunities with Coal & Allied via employment information sessions hosted in the Muswellbrook shopfront; Shopfront information sessions on the Bengalla Continuation Project; Participation in the Upper Hunter Mining Dialogue, a programme coordinated by the NSW Minerals Council to engage the community across the Hunter Valley; Participation in the NSW Minerals Council Hunter Valley Aboriginal Community Working Group. 6 REHABILITATION AND LAND MANAGEMENT 6.1 LAND MANAGEMENT Bengalla actively manages both its operational and buffer lands to ensure agricultural productivity is not compromised due to its mining operations. Buffer lands are leased out to experienced land managers to ensure the ongoing productivity of these areas. Land management activities conducted by Bengalla during the reporting period include weed spraying, participation in dog baiting programmes, and bushfire mitigation such as firebreaks and grass clearing. Weed spraying was conducted during autumn and the spring/summer period. The weed spraying programmes used target specific areas within the mining lease. During 2012 the areas targeted included the north, south and eastern waste rock landforms and; leased areas surrounding the pit including roadway verges, fence lines, monitoring sites, general grounds, within tree lots and remnant woodland. The weed species targeted in 2012 included Galenia (Galenia pubescens) and African Boxthorn (Lyciumferocissimum); however other perennial weed species which were in the vicinity were also sprayed during the spraying period. To assist in the protection of native fauna and livestock, Bengalla worked in conjunction with the Livestock Health and Protection Authority and participated in a district wide wild dog baiting program. During the 2012 program no wild dogs were identified or destroyed on the Bengalla lease area. Bengalla has in place a number of effective measures in place for the prevention and control of bushfires. Asset management including slashing of roadsides, leases and power line easements was undertaken throughout the 2012 reporting period. Maintenance slashing of undergrowth at tree lots to reduce grass build up was undertaken frequently and surrounding leases had grazing undertaken which assisted to reduce dry pasture volume. A fully equipped mobile fire-fighting unit, along with a fleet of four 80,000 litre water carts is also on hand should a fire outbreak occur within the lease holding. Bengalla Emergency Response Team is well equipped and trained in fire fighting. During the reporting period, no bushfires occurred or threatened the Bengalla Mine lease area. In 2013, bushfire management will continue to be implemented as per the Coal & Allied Bushfire Management Plan. 6.2 SUMMARY OF REHABILITATION Rehabilitation Management Clearing and 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. The Rehabilitation and Landscape Management Plan was updated during 2012, and submitted to DRE and DP&I for approval in early 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. Any cleared vegetation deemed unsuitable for fencing material is then utilised in rehabilitated areas to encourage potential faunal habitat. 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. 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. Figure 30: Rehabilitation Monitoring Trial and research The Bengalla soil carbon project commented in late The Agricultural Productivity Research Programme proposal was submitted in July of 2011 during the draft consent consultation period. The submission made by Bengalla was accepted and Page 41 of 60

42 subsequently the proposal was included into the final Development Consent that was approved in October Work on the objective of the project began in earnest at the beginning of 2012 with a seminar for participating landowners and project partners including OEH, the University of Newcastle, and Hunter Rivers Catchment Management Authority. This was followed with workshops and project activities throughout the year, including soil sampling and farm mapping. The first year of the project wrapped up with a presentation to the project partners and stakeholders of the works completed to date. In addition to this the project was presented at the NSW Minerals Council Environment and Community Conference in October. The second year of the project is focusing on Biochar research and further development of a soil carbon trading model. undertaken in two separate areas Domains 4E (5.7 ha) and 4D (4.85ha), both of which were sown with an improved pasture mix (Figure 31). As part of the most recent modification project, the construction of the SOEA was identified to resolve the overburden emplacement capacity issues experienced at Bengalla. The construction of the SOEA requires the stripping of previous rehabilitation on part of the southern dump. The modification EA predicted that 13 hectares would be impacted, predominantly in During 2012, approximately hectares of rehabilitation has been cleared for the construction of the SOEA. Table 19 details the disturbance and rehabilitation undertaken at Bengalla to date. Bengalla does not currently have any offset land that requires management Rehabilitation Performance During 2012, Bengalla completed hectares of rehabilitation on its overburden emplacement areas. The rehabilitation was Table 19::Bengalla Rehabilitation Summary 2012 Cumulative Area Affected (hectares) To Date at End 2011 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 Active Mining Area Waste Emplacements Tailings Emplacements N/A N/A N/A ALL DISTURBED AREAS REHABLITATION PROGRESS Total Rehabilitated Area (-3.53)* 40 SURFACE OF REHABILITATED LAND Pasture and Grasses (-3.53)* 40 Native Forest/Eucalypt N/A No tailings dams at Bengalla. * Rehab completed in 2012 = 10.55Ha. Dehab throughout 2012 for the SOEA makes the total rehabilitated area smaller. Page 42 of 60

43 Figure 31: Rehabilitation as at 31 December 2012 Page 43 of 60

44 6.2.4 Rehabilitation monitoring and auditing Table 20 shows the broad rehabilitation objectives that Bengalla are working to achieve. Rehabilitation objectives are detailed in the MOP and the Rehabilitation and Landscape Management Plan. Table 20: Rehabilitation Objectives Feature Mine Site (as a whole) Surface Infrastructure Overburden Dump Eastern Overburden Dump Other land affected by the development Final Void Community Objective Safe, stable & non-polluting To be decommissioned and removed, unless the Director-General agrees otherwise. Rehabilitate, as soon as practicable, the working face of the overburden dump exposed to the Muswellbrook township and Denman Road. Where reasonable, rehabilitation will include high density tree planting. Contoured to no more than a 10 degree slope Restore ecosystem function, including maintaining or establishing self-sustaining ecosystems comprised of: local native plant species; extensive areas of Class 3 Agricultural Capability Land; a landform consistent with the surrounding environment. Safe, stable and non-polluting Minimise the adverse socio-economic effects associated with mine closure 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 in September 2012, building on from rehabilitation audits undertaken in previous years. 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. Around the more recent rehabilitation, weed infestation was identified as an issue. Weed spraying works during 2012 focussed on this area and surrounding leased properties and the 2013 weed management programme will again focus on preventing further spreading of weeds in the rehabilitated areas. Results from both the audit and LFA demonstrate that Bengalla s rehabilitation is trending towards the initial completion criteria set out in the Landscape and Rehabilitation Management Plan. Recommendations from these reports will be incorporated into 2013 rehabilitation works Tree screening Screening is essential to mitigate visual intrusion and provide a greater aesthetic appeal to the surrounding area. 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 Non-compliances during reporting period During 2012 minor rehabilitation repairs were undertaken as a result of rehabilitation audit findings and site inspections. There were no non-compliances during 2012 relating to rehabilitation Rehabilitation related Further Improvements Bengalla will continue to implement its revised Landscape and Rehabilitation Management Plan during 2013.Focus will be placed on topsoil management, with minor findings in the rehabilitation audit and the relocation of the western topsoil stockpiles to the overburden emplacement areas over the next two years. Figure 32: Rehabilitation and overburden dumping in background Recommendations from the audit include weed spraying, establishment of native tree species in a number of rehabilitated areas, and some minor erosion stabilisation works, which will be undertaken in In addition to auditing the rehabilitation, Bengalla undertakes Landscape Function Analysis (LFA) monitoring of rehabilitation. This monitoring compares rehabilitated sites to analogue sites, and allows a measurable platform for Bengalla to gauge its completion criteria. LFA was undertaken by an independent consultant in May Page 44 of 60