Preliminary Environmental Assessment

Transcription

1 Centennial Coal Newstan Lochiel Project March 2011 Page 1

2 Page 2

3 TABLE OF CONTENTS 1.0 INTRODUCTION BACKGROUND PROJECT OVERVIEW PRELIMINARY ENVIRONMENTAL ASSESSMENT THE APPLICANT SITE DESCRIPTION SITE LOCALITY AND EXISTING LAND USES LANDFORMS AND TOPOGRAPHY CLIMATE GEOLOGY LAND OWNERSHIP CURRENT APPROVED OPERATIONS BACKGROUND INFRASTRUCTURE MINING METHOD AND EQUIPMENT COAL HANDLING AND TRANSPORT Domestic Coal Transportation Export Coal Transportation Coal Rejects and Tailings Management WATER MANAGEMENT ANCILLARY INFRASTRUCTURE CONSENTS, LEASES AND LICENCES ENVIRONMENTAL MANAGEMENT SYSTEM PROPOSED PROJECT BACKGROUND PROJECT AREA MINING METHOD AND EQUIPMENT...23 Page 3

4 4.4 INFRASTRUCTURE COAL HANDLING REJECT EMPLACEMENT HOURS OF OPERATION AND PERSONNEL ADDITIONAL LICENCES AND APPROVALS ANCILLARY INFRASTRUCTURE EXPLORATION DRILLING ENVIRONMENTAL MANAGEMENT SYSTEM PLANNING CONSIDERATIONS INTRODUCTION COMMONWEALTH LEGISLATION Environment Protection and Biodiversity Conservation Act National Greenhouse and Energy Reporting Act Native Title Act NEW SOUTH WALES LEGISLATION Environmental Planning and Assessment Act Other NSW State Legislation State Environmental Planning Policies SEPP (Major Development) SEPP (Mining, Petroleum Production and Extractive Industries) SEPP 33 Hazardous and Offensive Development SEPP 44 Koala Habitat Protection LOCAL ENVIRONMENT PLANS Lake Macquarie Local Environment Plan KEY ENVIRONMENTAL ISSUES IDENTIFICATION OF ENVIRONMENTAL ISSUES Pre-Project Risk Assessment IDENTIFIED ENVIRONMENTAL ISSUES...34 Page 4

5 6.2.1 Subsidence Flora and Fauna Surface Water Groundwater Greenhouse Gas Air Quality Noise Heritage (Aboriginal and European) Social Soils Waste Management Visual STAKEHOLDER AND COMMUNITY CONSULTATION PROJECT JUSTIFICATION CONCLUSION...41 Page 5

6 FIGURES FIGURE 1 NEWSTAN COLLIERY LOCATION PLAN...12 FIGURE 2 CENTENNIAL NEWSTAN DEVELOPMENT CONSENT BOUNDARY AND EXISTING WORKINGS...22 FIGURE 3 NEWSTAN LOCHIEL PROJECT AREA (PROJECT APPLICATION AREA)...26 TABLES TABLE 1 - CURRENT CONSENTS, LEASES AND LICENSES...19 TABLE 2 - SUMMARY OF NSW LEGISLATION RELEVANT TO THE PROJECT...28 TABLE 3 - REQUIREMENTS FOR MANAGEMENT OF RISKS (CENTENNIAL RISK STANDARD)...33 APPENDICES APPENDIX 1 ENVIRONMENT AND COMMUNITY BROAD BRUSH RISK ASSESSMENT...43 Page 6

7 ABBREVIATIONS AHD AHIMS Banpu BOM CCC CPP Centennial Centennial Newstan Australian Height Datum Aboriginal Heritage Information Management System Banpu Singapore Pte Limited Bureau of Meteorology Community Consultative Committee Coal Preparation Plant Centennial Coal Company Centennial Newstan Pty Ltd DA Development Application DECCW EAR s DoP EMS Department of Environment, Climate Change and Water Environmental Assessment Requirements Department of Planning Environmental Management System EP&A Act Environmental Planning and Assessment Act 1979 EPBC Act Environment Protection and Biodiversity Conservation Act 1999 EPL Environment Protection Licence Heritage Act Heritage Act 1977 ILUA KLALC LEP LGA LMCC MNES Mtpa Newstan EIS NREA Indigenous Land Use Agreement Koompahtoo Local Aboriginal Land Council Local Environmental Plan Local Government Area Lake Macquarie City Council Matters of National Environmental Significance Million tonnes per annum Newstan Colliery Life Extension Project Environmental impact Statement Northern Reject Emplacement Area NGER Act National Greenhouse and Energy Reporting Act 2007 NOW NSW Office of Water NPW Act National Parks and Wildlife Act 1974 PEA POEO Act Protection of the Environment Operations Act 1997 ROM RWMP SEPP Run of Mine Revised Water Management Plan State Environmental planning Policies Page 7

8 SREA Southern Reject Emplacement Area TSC Act Threatened Species Conservation Act 1995 WMA Water Management Act 2000 Page 8

9 1.0 INTRODUCTION 1.1 Background Newstan Colliery is an existing underground coal mine owned and operated by Centennial Newstan Pty Limited (Centennial Newstan). Newstan Colliery is regionally located approximately 25 kilometres south-west of Newcastle and 140 kilometres north of Sydney within the Lake Macquarie Local Government Area (LGA). The Newstan Colliery pit top and Surface Facilities Area is located approximately four kilometres north of the township of Toronto as shown in Figure 1. Newstan Colliery began mining operations in 1887 and has since undertaken extensive mining within the Young Wallsend, Great Northern, Fassifern, Borehole and West Borehole coal seams. The Newstan Colliery produces both a semi soft coking coal and thermal coal for the domestic and export markets. In 2009 the Newstan Colliery ceased underground mining production however has continued to operate the Newstan Colliery Surface Facilities Area for the handling and processing of coal from other Centennial operations. 1.2 Project Overview Centennial Newstan is seeking Project Approval for the Newstan Lochiel Project (the Project) under Part 3A of the Environmental Planning and Assessment Act 1979 (EP&A Act). Specifically the Project proposes to: Expand its underground mining operations both within and beyond the existing approved Newstan Colliery Life Extension Area. Two principal mining methods are envisioned, these being: Bord and pillar continuous miner extraction and longwall extraction with initial longwall block development; Extract up to 5 million tones per annum (Mtpa) of run of mine (ROM) coal; Continue to receive and handle ROM coal from the Awaba Colliery and Mandalong Mines at the Newstan Colliery Surface Facilities Area; Process ROM coal from the Newstan Colliery, the Awaba Colliery and the Mandalong Mine through the Newstan Colliery Coal Preparation Plant (CPP) at a rate of up to 8 Mtpa; Transport up to 8 Mtpa of product coal processed at the Newstan Colliery by truck to the Eraring Power station using the existing Newstan-Eraring private haul road; Transport up to 8 Mtpa of product coal processed at the Newstan Colliery by train to the export market via the existing Newstan rail loop; Page 9

10 Continue to transport coal reject from the Newstan Colliery CPP to the existing Northern Reject Emplacement Area (NREA) or Southern Reject Emplacement Area (SREA); Transport coarse coal reject material from the Newstan Colliery CPP to the Hawkmount Quarry; Utilise and upgrade where required the existing surface infrastructure of the Newstan and Awaba collieries; Install and/or operate ancillary surface infrastructure for gas drainage, ventilation, electrical reticulation, water reticulation and communications; Undertake ongoing exploration drilling activities; Progressively rehabilitate disturbed areas; Consolidate the existing development consents into a single development consent for Newstan Colliery; Continue to operate 24 hours per day seven days per week; and Continue to operate for a period of 21 years from the date of approval. The proposed Newstan Lochiel Project Application Area as shown in Figure 3 includes: The existing Newstan Colliery Surface Facilities Area; The Awaba Colliery Surface Facilities Area; and The Newstan Lochiel mining area. 1.3 This (PEA) has been prepared by Centennial Newstan to accompany an application for Project Approval under Section 75E in Part 3A of the EP&A Act. This PEA is intended to provide the Department of Planning (DoP) and other relevant regulators with a description of the Project and identify likely key social and environmental issues associated with the Project to enable the Director-General to issue Environmental Assessment Requirements (EARs) to assist Centennial Newstan in the preparation of the Environmental Assessment. The PEA is generally structured as follows: Section 1: provides an introduction to the Project; Section 2: provides a description of the site and an overview of the existing environment; Page 10

11 Section 3: provides an overview of the existing and approved mining operations of the Newstan Colliery; Section 4: provides a description of the Project; Section 5: summarises the legislation relevant to the Project; Section 6: provides an overview of the preliminary environmental risks associated with the Project and the proposed assessment methodology for all key environmental issues identified in the preliminary environmental risk assessment for the Project; Section 7: describes the stakeholder consultation program to be undertaken to ensure all interested parties are consulted with regards to the Project; and Section 8: provides a justification for the Project. 1.4 The Applicant Centennial Newstan Pty Limited (Centennial Newstan) is the proponent for this proposed Project. Centennial Newstan is a wholly owned subsidiary of Centennial Coal Company Limited (Centennial), which is a wholly owned subsidiary of Banpu Singapore Pte Limited (Banpu). Awaba Colliery is a small underground coal mine operated by Centennial Newstan. Centennial supplies thermal and semi soft coking coal to domestic and export markets, providing NSW with coal for approximately 47% of the State s coal fired electricity. Page 11

12 Newstan Lochiel Project Figure 1 Newstan Colliery Location Plan Page 12

13 2.0 SITE DESCRIPTION 2.1 Site Locality and Existing Land Uses Newstan Colliery is regionally located approximately 25 kilometres south-west of Newcastle and 140 kilometres north of Sydney within the Lake Macquarie Local Government Area (LGA). The Newstan Colliery pit top and Surface Facilities Area is located in Fassifern approximately four kilometres north of the township of Toronto. The residential areas of Fassifern and Wakefield are adjacent to the Newstan Colliery Surface Facilities Area. The Awaba Colliery Surface Facilities Area is located approximately one kilometre south of the Awaba village and 5.5 kilometres south west of Toronto adjacent to the Newstan-Eraring private haul road owned by Eraring Energy. The majority of the proposed Newstan Lochiel mining area is located under undulating, unpopulated bushland. The Main Northern Railway traverses the mining area in a north south direction. The existing Newstan underground workings border the project area to the north and north-west while the Awaba Colliery workings are located in the seam above and immediately adjacent to the Project mining areas. To the east, the Project mining areas are constrained by the Lake Macquarie foreshore, and the expanding urban areas of Toronto, Rathmines and Buttaba. The Eraring Power Station and its associated infrastructure are located in the southern part of the Project mining areas. 2.2 Landforms and Topography The topography of the Newstan Lochiel Project area generally consists of rolling low hills with short side slopes and numerous closely spaced drainage lines, on predominately coarse-grained sediments of the Narrabeen Group and Newcastle Coal Measures. Slope gradients are generally 10-25% and local relief is between 20 metres and 110 metres Australian Height Datum (AHD). 2.3 Climate The closest Bureau of Meteorology (BOM) monitoring station operating in the area is situated approximately 23 km to the north east of the Project at Newcastle Nobbys Signal Station. The records show that rainfall in the region is generally greater in late summer to early winter (Feb-June). On average March is the wettest month and November is the driest, with the area experiencing an average of 132 days of rain per year. The warmest month of the year on average is January. The area experiences a warm, wet climate typical of the NSW coastal fringe with cool to mild nights and warm to hot days in summer. Page 13

14 2.4 Geology The Newstan Lochiel Project mining areas are located in the central part of the Newcastle Coalfield which in turn occupies the north-eastern portion of the Sydney Basin. The target coal resources occur within the lower part of the Late Permian Newcastle Coal Measures. The coal seams occurring at the base of the Newcastle Coal Measures provide the target resource for the Newstan Lochiel project. The resource section is a combination of some or all of the following seams: Young Wallsend, Yard and Borehole seams. In the western part of the Project mining area, all of the seams are coalesced forming a single seam known as the West Borehole seam. This is the seam that has been extensively mined in recent years at Newstan Colliery. 2.5 Land Ownership Land ownership within and surrounding the Project Areas include: Crown Land; Land owned by the Koompahtoo Local Aboriginal Land Council (KLALC)*; Privately owned land; Land owned by the State Rail Authority; and Crown Reserve. The majority of land within the Newstan Lochiel Project Area is Crown land. * In March 2010 the KLALC was dissolved and the NSW Aboriginal Land Council became the controlling authority for the KLALC assets. Page 14

15 3.0 CURRENT APPROVED OPERATIONS 3.1 Background In summary Centennial Newstan is approved to undertake the following activities: Extract up to 4 Mtpa of ROM coal from within the Newstan Colliery Life Extension Area; Process up to 4 Mtpa of ROM coal through CPP; Export up to 3 Mtpa through rail loading facility by train; Transport 2 Mtpa of coal to Eraring Power Station using the Eraring-Newstan private haul road by truck; Receive ROM coal from Cooranbong Colliery by truck; Receive up to 880,000 tpa of coal from Awaba Colliery by truck; Transport coal reject material from the CPP to the Northern Reject Emplacement Area; Transport coal reject material from the CPP to the Southern Reject Emplacement Area; Construction of the SREA to RL60; and Operate activities 24 hours per day 7 days a week. 3.2 Infrastructure The existing Newstan Colliery surface facilities are located adjacent to Miller Road, near the township of Fassifern. The Newstan Colliery surface facilities include: The administration building; A bathhouse with adequate facilities and services for up to 350 people; The Coal Preparation Plant and coal storage bins with a design capacity of in excess of 4 million tonnes per annum; Various workshops, service buildings and material storage sheds; Visitor and employee parking areas; A men and materials drift winder for access to underground workings; Page 15

16 A coal conveyor drift and coal conveyor drive to transport coal from the underground workings to the surface at Newstan Colliery; Ventilation fans; Services facility at Awaba (including compressors, nitrogen tanks, gas monitoring equipment, electrical supply, water supply and communication for mining activities); Ballast borehole at Ryhope (Sherwood Road); Coal stockpile areas; Rail loop with an export stockpile area within the centre of the loop; Reject emplacement facilities; and A comprehensive water management control system and associated infrastructure. Surface infrastructure at Awaba Colliery comprises: Mine Access & Associated Infrastructure; Coal Handling, Preparation & Transport Infrastructure; Workshop, Services and Administration Infrastructure; Water Management Infrastructure; Pollution Control Infrastructure; and Other Miscellaneous Infrastructure (site security etc). Centennial Newstan has approval for the construction and operation of a ventilation fan at the Awaba Colliery Surface Facilities Area. This ventilation fan has yet to be constructed. 3.3 Mining Method and Equipment Newstan Colliery has previously undertaken underground mining using a combination of continuous miner and longwall mining methods. These methods range from first workings development to secondary extraction. A range of ancillary equipment was also utilised in the underground workings including equipment for the transport of men and materials underground. In addition to the underground mining equipment, Newstan Colliery utilises a variety of other equipment, for its operation of the existing Surface Facilities Area and CPP. The current equipment used in the Page 16

17 operation of Newstan Colliery includes equipment for: coal handling; coal processing; coal loading and product coal haulage. 3.4 Coal Handling and Transport ROM coal produced from the Newstan Colliery is transported underground from the working face to the surface and delivered to the Newstan CPP by a high capacity conveyor system. ROM coal may be temporarily stored in the existing 80,000 tonne ROM coal storage area, near the CPP, prior to being conveyed to the CPP via a 4,000 tonne feed bin. Coal products from the CPP are either delivered to: The truck loading bin for trucking of domestic thermal coal via the Newstan-Eraring private haul road to Eraring Power Station; or The stockpile areas within the Newstan Colliery rail loop for train loading and transport to Port Newcastle, Port Kembla or the Vales Point Power Station Domestic Coal Transportation Domestic coal is delivered by conveyor from the CPP to the 2000 tonne truck loading bin prior to being loaded onto trucks and transported to Eraring Power Station via the Newstan-Eraring private haul road. Occasionally, there is a requirement to transport coal from Newstan Colliery to Vales Point Power Station. The preference is for such coal to be transported by rail to the Vales Point rail loop however Centennial Newstan has an existing approval to transport this coal by truck using public roads when required. Transportation of domestic coal to Vales Point Power Station occurs at an approved rate of up to 300,000 tonnes per annum. The maximum anticipated daily haulage is in the order of 2,000 tonnes, which is hauled during daylight hours, Monday to Friday. Domestic coal may also be stockpiled within the Newstan rail loop before it is loaded onto trains by front end loaders. The coal is then transported by rail to the Vales Point Power Station Export Coal Transportation Export coal product produced from the Newstan Colliery CPP is stockpiled within the central portion of the existing rail loop. Coal is then loaded by front end loaders onto the trains for transportation north along the Main Northern Railway to Port Newcastle or south to Port Kembla. The existing export coal stockpile capacity within the rail loop is approximately 180,000 tonnes, with trains ranging in size from 2,100 tonnes to a maximum of 3,000 tonnes. The existing Development Consent approved the stockpile to be progressively increased in size up to 400,000 tonnes and the rail loading capacity to a maximum of 4,000,000 tonnes per annum. The Page 17

18 approval further allows for train sizes to be increased to a maximum of 4,000 tonnes a train and the facility to be used to load up to 8 trains per day, 24 hours per day and 365 days per year Coal Rejects and Tailings Management Fine reject material, produced from the washing of coal through the Newstan CPP is currently pumped to the approved Newstan Colliery SREA. The SREA has an approved development area of 75 hectares, which equates to an emplacement volume of approximately 12.3 million cubic metres. The SREA has been designed to be developed in a series of stages to minimise the land area that needs to be cleared at any time. This sequential development also allows a free-draining and stable final landform to be readily achieved if emplacement in this area ceases at any stage of the development. A filter wall and bore are strategically located within the confines of the tailings dam which allows excess water to be decanted from the tailings dam into underground workings. The decanted water is recycled for reuse in the mine and the CPP. Coarse reject material is transported by truck from the CPP to the SREA for emplacement or use in the construction of the dam wall. Some material is transported to the NREA where it is used as capping material. 3.5 Water Management The water management system at Newstan Colliery is comprised of both surface and underground water and is a complex system that has been progressively developed over the life of the mine. Water management at Newstan Colliery is outlined within the Revised Water Management Plan (RWMP) (GHD, 2009). The water management system has been designed to: Maximise the separation of clean and dirty water systems; Manage water discharge from site, in terms of volume and quality, to a level that is acceptable for environmental management and community expectations; Minimise water discharges from the premises by maximising, where practicable, opportunities for the reuse and recycling of water on site; Minimise discharges of dirty water from the premises; and Manage discharge to natural waterways in accordance with the Environmental Protection Licence (EPL) 395 conditions or as agreed with the Department of Environment, Climate Change and Water (DECCW). Page 18

19 3.6 Ancillary Infrastructure The Newstan Colliery currently operates a range of ancillary surface infrastructure for the provision of water, electricity, ventilation and communications to the site and removal of gas from the underground workings. 3.7 Consents, Leases and Licences Newstan Colliery was granted Development Consent by the (then) Minister for Urban Affairs and Planning on the 14 May 1999 for the range of activities detailed and assessed within the Newstan Colliery Life Extension Project Environmental Impact Statement (Newstan EIS). Modifications to DA include: Approval to allow for the continuation of underground mining within longwall panel 24 and the relocation of an approved, however not yet constructed, ventilation shaft and associated service corridors granted on 23 September 2007; Approval to wash coal from the Centennial Mandalong Mine at Newstan Colliery granted on 27 November 2009; and Approval to wash coal from the Centennial Awaba Colliery at Newstan Colliery, the acceptance of stone reject material from the Centennial Mandalong Mine at Newstan Colliery and the establishment of a 30,000 tonne emergency coal stockpile granted on 26 November Figure 3 details the currently approved development consent boundary for the Newstan Colliery. Table 1 contains a list of the current consents, leases and licenses relevant to the Newstan Colliery operation. Table 1 - Current Consents, Leases and Licenses Consents Reference Description Expiry Date Issued By DA Approves the extension of Newstan underground coal mine and upgrade of associated surface facilities on May (modified in 2007 and 2009). 6/07/2020 DoP DA 83/877 Authorised the transport of coal via the Newstan-Eraring Private Haul Road to Eraring and to the Newstan CPP from Awaba Colliery Surface Facilities. N/A LMCC DA 93/00080 Allows the development of coal storage and a rail loading area. N/A LMCC DA 88/0645 Permits the establishment of a coal storage area and water management facilities adjacent to rail loop. N/A LMCC Page 19

20 DA 99/02806/1N Permits the establishment of an emergency egress and bulk materials delivery facility. N/A LMCC DA 95/00152 For addition to lease area for land under ML N/A LMCC Leases Authority Type of Authority Expiry Date Holder CCL746 Mining Lease 21/12/2028 Centennial Newstan Pty Limited ML1586 Mining Lease 13/10/2022 Centennial Newstan Pty Limited CCL727 Mining Lease 11/08/2027 Centennial Newstan Pty Limited CCL763 Mining Lease 9/06/2022 Centennial Newstan Pty Limited CCL764 Mining Lease 18/05/2021 Centennial Newstan Pty Limited ML1452 Mining Lease 6/07/2020 Centennial Newstan Pty Limited ML1380 Mining Lease 18/09/2016 Centennial Newstan Pty Limited ML1542 Mining Lease 18/10/2008 Centennial Newstan Pty Limited ML1480 Mining Lease 20/07/2023 Centennial Newstan Pty Limited MPL304 Mining Purposes Lease 25/03/2014 Centennial Newstan Pty Limited MPL305 Mining Purposes Lease 25/03/2014 Centennial Newstan Pty Limited MPL327 Mining Purposes Lease 5/08/2015 Centennial Newstan Pty Limited MPL328 Mining Purposes Lease 5/08/2015 Centennial Newstan Pty Limited PLL497 Mining Lease 24/08/2017 Centennial Newstan Pty Limited ML1587 Mining Lease 23/10/2027 Centennial Newstan Pty Limited Part CCL762 Sublease - Mining Lease 13/10/2022 Part CCL718 Sublease - Mining Lease 13/11/2010 Part CCL774 Sublease - Mining Lease 20/07/2023 Centennial Mandalong Pty Limited Oceanic Coal Australia Pty Limited Mount Thorley Operations Pty Limited A399 Exploration Licence 17/11/2012 Centennial Newstan Pty Limited EL5138 Exploration Licence 9/10/2011 Centennial Newstan Pty Limited EL6641 Exploration Licence 23/10/2012 Centennial Newstan Pty Limited Licences Page 20

21 Reference Description Expiry Date Issued By EPL 395 Issued under Protection of the Environment Operations Act 1997 for coal mining, coal works and coal washery and reject or slag land filling. Anniversary 1 January DECCW 20SL Water license for the Bywash Dam (for water and irrigation). 8/01/2011 DNR Bore Licences (various) Newstan holds a number of groundwater bores licensed under Part 5 of the Water Act 1912 for monitoring purposes. Various DNR 3.8 Environmental Management System Newstan Colliery has an established Environmental Management System (EMS) that has been developed in accordance with the Centennial Coal Environmental Management System Framework (July 2007). The EMS has been developed and implemented to ensure the effective management of environmental issues and compliance with all regulatory requirements while providing a means for continued improvement in the environmental performance of the Newstan Colliery. The EMS incorporates a number of environmental management plans that are designed to assist in meeting community and regulatory expectations. The Newstan Colliery has the following management plans: Newstan Stakeholder Engagement Plan Land Management Plan Archaeology and Cultural Heritage Management Plan Landscape Management Plan Erosion and Sediment Control Management Plan Noise Management Plan Revised Water Management Plan Dust Management Plan Flora and Fauna Management Plan Bushfire Management Plan Soil Stripping Management Plan Wetlands Management Plan Fine Rejects Management Plan Lord s Creek Management Plan Rehabilitation Strategy These documents provide a framework for the planning of mining operations while considering potential environmental issues and their management on-site. Page 21

22 Newstan Lochiel Project Figure 2 Centennial Newstan Development Consent Boundary and Existing Workings Page 22

23 4.0 PROPOSED PROJECT 4.1 Background The Newstan Lochiel Project is a potential underground operation producing a high value low sulphur semi-soft coking coal product as well as an export and/or domestic thermal coal product/s. It is located in the Newcastle Coalfield of New South Wales, near the townships of Fassifern and Awaba. 4.2 Project Area The Newstan Lochiel Project Area, as shown in Figure 3, includes the Newstan and Awaba Colliery Surface Facility Areas. Mining will extend within a range of existing mining and exploration leases held by Centennial Newstan. New mining leases may be required to support the proposed Newstan Lochiel Project depending on the final mine layout and design. The existing workings of the Newstan Colliery will be used for ventilation, water management, coal transportation and the transportation of men and materials. 4.3 Mining Method and Equipment Mining is proposed to be undertaken using a combination of longwall and continuous miner extraction methods. Mining will be designed to extract up to 5 Mtpa of ROM coal from within the proposed Newstan Lochiel Mining Area. Mine design criteria will be established during the preparation of the Environmental Assessment to take into consideration potential social and environmental impacts as well as potential impacts on surface infrastructure. A detailed subsidence assessment will be undertaken as part of this process. 4.4 Infrastructure The proposed Project will utilise the existing infrastructure of both the Newstan and Awaba Collieries including existing private haul roads and rail loading facilities. The existing Awaba Colliery Surface Facilities Area will be utilised for remote services such as power, compressed air and the site for a new upcast shaft and surface fans. Consideration will also be given to the utilisation of office and bathhouse facilities at the Awaba Colliery and the use of Awaba Colliery as an alternative to the underground workings for men and materials. Detailed investigations will be undertaken as part of the Environmental Assessment to determine what additional infrastructure and/or upgrades to existing infrastructure will be required to support the proposed Newstan Lochiel Project. Page 23

24 4.5 Coal Handling ROM coal will continue to be transported underground from the working face to the Newstan Colliery surface facilities area by a conveyor system. The proposed Project is seeking approval to increase ROM coal production from the currently approved 4 Mtpa to up to 5 Mtpa. The Project is seeking to increase coal handled by the CPP from 4 Mtpa to up to 8 Mtpa. Product coal will continue to be transported to the Eraring power Station via the Newstan-Eraring private haul road. Product may be routed to the domestic or export markets through the Newstan rail loading facilities. The proposed Project is seeking approval to increase the volume of coal exported through the Newstan rail loading facility form the currently approved three million tonnes per annum to up to 8 Mtpa and increase the volume of coal, able to be transported, from the CPP to the Eraring Power station from 2 Mtpa to up to 8 Mtpa. 4.6 Reject Emplacement Coarse reject from the CPP will continue to be transported to the NREA for use in capping and rehabilitation of the site or the SREA for use in the construction of the dam wall or emplacement. Coarse reject material will also be transported by truck using the existing Newstan-Eraring and Cooranbong Colliery private haul roads for emplacement at the Hawkmount Quarry. Fine reject (tailings) will continue to be pumped to the SREA for emplacement. A detailed assessment of the reject emplacement requirements for the Project will be undertaken during the preparation of the Environmental Assessment. 4.7 Hours of Operation and Personnel The required number of personnel required to be employed by Centennial Newstan as part of the Newstan Lochiel Project will be determined during the Environmental Assessment process. Centennial Newstan will continue to operate 24 hours seven days a week. 4.8 Additional Licences and Approvals The majority of the Newstan Lochiel mining areas are within existing mining leases held by Centennial Newstan. Depending on final mine design, potential new mining leases may need to be obtained. A review of any new licences or approvals will be undertaken during the preparation of an Environmental Assessment for the Project. Page 24

25 4.9 Ancillary Infrastructure An assessment of the requirements for ancillary equipment (including gas drainage and the supply of electricity, water and communications) will be undertaken during the preparation of an Environmental Assessment for the Project Exploration Drilling Exploration drilling will continue to be undertaken throughout the life of the Newstan Lochiel Project to obtain specific geological information and to assist in the detailed mine design process Environmental Management System The Newstan EMS will be updated if and where required depending on the results of specialist studies undertaken as part of the Environmental Assessment. Page 25

26 Newstan Lochiel Project Figure 3 Newstan Lochiel Project Area (Project Application Area) Page 26

27 5.0 PLANNING CONSIDERATIONS 5.1 Introduction The Project will be assessed in full consideration of the applicable statutory planning instruments of the Commonwealth and State, as well as associated planning and environmental frameworks. This section describes the statutory planning instruments relevant to the proposed modification, and assesses their implications in relation to the required approval process. 5.2 Commonwealth Legislation Environment Protection and Biodiversity Conservation Act 1999 The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) came into effect on 16 July 2000 and is administered by the Commonwealth Department of the Sustainability, Environment, Water, Population and Communities (SEWPaC). Part 3 of the EPBC Act states that an action that has, will have or is likely to have a significant impact on a Matter of National Environmental Significance (MNES), may not be undertaken without prior approval of the Minister for SEWPaC. An assessment of whether the Newstan Lochiel Project will have a significant impact on these MNES will be undertaken as part of the Environmental Assessment process. If required, a referral will be submitted to SEWPaC to determine if the Project is a controlled action under the EPBC Act National Greenhouse and Energy Reporting Act 2007 The National Greenhouse and Energy Reporting Act 2007 (NGER Act) provides a single National framework for the reporting and dissemination of information regarding greenhouse gas emissions, greenhouse gas projects and energy use, and production by corporations. The NGER Act mandates registration and reporting by corporations whose energy production or use, or greenhouse gas emissions meet specified thresholds. Centennial reports emissions from the corporation which includes emissions from Newstan Colliery Native Title Act 1994 The Native Title Act 1994 recognises that Aboriginal people have rights and interests to land which derives from their traditional laws and customs. Native title rights can include rights to: live on the land, access the land for traditional purposes, protect important places and sites, collect food and medicinal resources from native plants, hunt and fish, teach traditional law and customs, and to have input into land use practices and development planning. Native title can be negotiated in two ways; through a Native Title Claim (applications and determinations), or through an Indigenous Land Use Agreement (ILUA). Page 27

28 An ILUA is an agreement between a native title group and other parties who use or manage the land and waters. The ILUA process allows for negotiation between indigenous groups and other parties over the use and management of land and water resources, and the ability to establish a formal agreement. An ILUA is binding once it has been registered on the Native Title Tribunal s Register of Indigenous Land Use Agreements. The land within the Newstan Lochiel Project Areas is subject to an ILUA (NIA2000/001) which was entered into on 28 May 1999 by Wonnarua Nation Aboriginal Corporation and Powercoal Pty Ltd (since acquired by Centennial). As such, Centennial Newstan is bound by the terms of the ILUA. 5.3 New South Wales Legislation Environmental Planning and Assessment Act 1979 The development assessment and approval system in NSW is set out in Parts 3A, 4 and 5 of the EP&A Act. The Minister for Planning determines applications for major infrastructure or other major projects of State or regional environmental planning significance under Part 3A of the EP&A Act. This section of the EP&A Act provides a single assessment process specifically designed for major projects and improved transparency and community consultation. Schedule 1 of SEPP (Major Development) identifies classes of development which are classified as projects to which Part 3A of the EP&A Act applies and includes development for the purpose of mining. As the Newstan Lochiel Project is a development listed under Schedule 1 of SEPP (Major Development) Part 3A of the EP&A Act applies Other NSW State Legislation The provisions and requirements of additional NSW legislation will be considered and addressed within the Environmental Assessment. A summary of potentially relevant Acts is included in Table 2. Act Table 2 - Summary of NSW Legislation Relevant to the Project Relevance to the Project Protection of the Environment Operations Act 1997 (POEO Act) The POEO Act is administered by the DECCW and requires licensing for environmental protection, including waste generation and disposal, water, air and noise pollution. Under the POEO Act, an EPL is required for premises at which a scheduled activity is conducted. Schedule 1 of the POEO Act lists activities that are scheduled activities for the purposes of the Act. Newstan Colliery operates under EPL 395. Mining Act 1992 Centennial Newstan currently holds Consolidated Coal Lease 727 (CCL 727), CCL764, CCL763, CCL746 and Mining Lease 1452 (ML 1452) over the Newstan Lochiel Project Area, as illustrated in Figure 3:1. New mining leases may be required in certain areas of the Newstan Lochiel Project Area. Water Management Act 2000 and Water Act 1912 The Water Management Act 2000 (WMA) and the Water Act 1912 are administered by the NSW Office of Water (NoW) and contains approval requirements for some developments to protect Page 28

29 Act Relevance to the Project watercourses from any adverse effects resulting from works within or in proximity of these watercourses. The WMA is relevant to the Newstan Lochiel Project as the Project Application Area is within the north and south Lake Macquarie sections of the Water Sharing Plan (WSP) for The Hunter Unregulated and Alluvial Water Sources. Newstan currently holds a number of water licences issued under the Water Act 1912 National Parks and Wildlife Act 1974 (NPW Act) Heritage Act 1977 The National Parks and Wildlife Act 1974 (NPW Act) is administered by the National Parks and Wildlife Service (NPWS) and provides for the establishment, care, control, and management of National Parks, historic sites, nature reserves, State conservation areas, Aboriginal areas, and State game reserves. An archaeological survey will be conducted as part of the Environmental Assessment, which will identify the presence of any known Aboriginal sites, as well as strategies for the management and mitigation of any identified impacts on such sites. The purpose of the Heritage Act 1977 (Heritage Act) is to protect and conserve non-indigenous cultural heritage, including scheduled heritage items, sites, and relics. The Heritage Act is administered by the NSW Heritage Office within DoP. The archaeological survey to be undertaken as part of the Environmental Assessment will identify any items of heritage significance in the Project Site and recommend appropriate management strategies if and where required. Threatened Species Conservation Act 1995 Dams Safety Act 1978 The Threatened Species Conservation Act 1995 (TSC Act) provides for the conservation of threatened species, populations, and ecological communities of animals and plants. The Environmental Assessment will identify any threatened species in the Project Site, as well as strategies for the management and mitigation of impacts. The Dam Safety Committee plays a role in determining the type and extent of coal mining allowed in the vicinity of prescribed dams and their storages. The extent of mining permitted near a dams depends on the mining geometry (i.e. coal pillar dimensions, size of openings, etc.), the proximity to the dams or the stored water, and the local geology. A portion of the Newstan Lochiel Project falls within the Notification Area for the Eraring Ash Dam. Mining within the Notification Area will require approval form the Dam Safety Committee State Environmental Planning Policies The following State Environmental Planning Policies (SEPP s) will be considered as part of the Environmental Assessment for the Newstan Lochiel Project. Page 29

30 SEPP (Major Development) 2005 SEPP (Major Development) defines certain developments that are major projects requiring assessment under Part 3A of the EP&A Act and determination by the Minister for Planning. Schedule 1 of the SEPP identifies development for the purpose of mining as a project to which Part 3A applies. The Newstan Lochiel Project will be defined as development for the purpose of mining under Schedule 1 of SEPP (Major Development) and as such Part 3A of the EP&A Act applies to the Project. The primary aim of the SEPP (Major Development) is to identify development of economic, social or environmental significance to the State or regions of the State so as to provide a consistent and comprehensive assessment and decision making process for that development SEPP (Mining, Petroleum Production and Extractive Industries) 2007 SEPP (Mining) recognises the importance of mining, petroleum production, and extractive industries within the State. Clause 7 of SEPP (Mining) identifies development which can be carried out only with development consent, and includes underground mining carried out on any land and facilities for the processing or transportation of minerals mined from that land or adjoining land. Clause 5 of SEPP (Mining) addresses its relationship with other environmental planning instruments, and states that if SEPP (Mining) is inconsistent with any other environmental planning instrument, SEPP (Mining) prevails to the extent of the inconsistency, with the exception of SEPP (Major Development), SEPP 14 Coastal Wetlands and SEPP 26 Littoral Rainforests. Irrespective of the provisions of Lake Macquarie LEP 2004 the Newstan Lochiel infrastructure and operations are permissible with consent SEPP 33 Hazardous and Offensive Development SEPP 33 Hazardous and Offensive Developments requires the consent authority to consider whether an industrial proposal is a potentially hazardous industry or a potentially offensive industry. The aim of this policy is to link the permissibility of a proposal to its safety and pollution control performance. The assessment process establishes whether the proposal is potentially hazardous and if this is not the case, SEPP 33 is not applicable. If the storage of Dangerous Goods is required, then a licence will be applied for from the WorkCover Authority NSW SEPP 44 Koala Habitat Protection The aim of State Environmental Planning Policy 44 Koala Habitat Protection (SEPP 44) is to encourage the proper conservation and management of areas of natural vegetation that provide habitat for Koalas to ensure a permanent free-living population over their present range and reverse the current trend of koala population decline. Schedule 1 lists the LGAs to which SEPP 44 applies, and requires an investigation be carried out to determine if core or potential Koala habitat is present and is likely to be disturbed. Lake Macquarie and Wyong LGAs are listed in Schedule 1 of SEPP 44. Page 30

31 SEPP 44 applies to the extent that a consent authority is restricted from granting development consent from proposals on land identified as core koala habitat without the preparation of a Plan of Management. The potential for the Newstan Lochiel Project to impact on land identified as core koala habitat will be assessed as part of the Environmental Assessment for the Newstan Lochiel Project. 5.4 LOCAL ENVIRONMENT PLANS Lake Macquarie Local Environment Plan The Newstan Lochiel Project is located within the Lake Macquarie LGA. The zonings for land use under the Lake Macquarie Local Environment Plan (LEP) 2004 that apply to the Newstan Lochiel Project Area are: Zone 1(1) Rural (Production); Zone 2(1) Residential; Zone 4(1) Industrial (Core); Zone 5 Infrastructure; Zone 6(1) Open Space; Zone 6(2) Tourism and Recreation; Zone 7(1) Conservation (Primary); Zone 7(2) Conservation (Secondary); Zone 7(3) Environmental (General); Zone 9 Natural Resources; and Zone 10 Investigation Zone. The vast majority of land within the Newstan Lochiel Project Area is zoned 9 Natural Resources or 7(2) Conservation (Secondary). Page 31

32 6.0 KEY ENVIRONMENTAL ISSUES 6.1 Identification of Environmental Issues The key project-related issues warranting detailed assessment in the Environmental Assessment will be identified through: The existing environmental context of the Project Areas and surrounding locality; The legislative framework applicable to the Project (discussed in Section 5.0); A preliminary environmental risk assessment, which has already been completed (see Section 6.1.1); The outcomes of consultation to be undertaken with government agencies and other relevant stakeholders; and Specialist studies completed as part of the preparation of the Environmental Assessment. The outcomes of the preliminary environmental risk assessment, including the issues identified for further detailed assessment in the Environmental Assessment, are discussed in section and 6.2 below. These issues will form the basis of the Environmental Assessment, subject to the outcomes of consultation with government agencies, including the EARs, as well as outcomes of the specialist assessments as they progress Pre-Project Risk Assessment A preliminary environmental risk assessment was conducted on 18 March 2011 by Centennial Newstan with the aim of: Identifying those issues relating to the Project that represent the greatest risk to the business, environment and community; and Assisting in setting the level of assessment required to address each identified risk within the Environmental Assessment. The issues that were specifically assessed in the risk assessment include: Subsidence Flora and Fauna Surface Water Groundwater Water Management Greenhouse Gas Air Quality Noise Heritage (Aboriginal and European) Social Waste Management Visual Page 32

33 Once they were identified, the various project risks were assessed in light of the mitigation measures and management strategies already in place at the Newstan Colliery (i.e. documented in management plans and operational procedures). Where the risks were considered unacceptable, or a knowledge gap was identified in the information available, specialist consultants will be engaged to undertake further assessments and to present additional mitigation measures that may be required. A Risk Assessment report, including a risk register, was prepared to document the outcomes of the risk assessment, and is attached as Appendix 1. A summary of the Centennial risk matrix used, and the management requirements in accordance with the Centennial Risk Standard and Risk Matrix is provided in Table 3. Risk Ranking Table 3 - Requirements for Management of Risks (Centennial Risk Standard) Risk Category Generic Management Actions 1 to 4 E Extreme 5 to 9 H High 10 to 15 S Significant 16 to 19 M Moderate Immediate intervention required from senior management to eliminate or reduce this risk. Imperative to eliminate or reduce risk to lower level by the introduction of control measures. Management planning required at senior level. Corrective action required, senior management attention needed to eliminate or reduce risk. Corrective action to be determined, management responsibility must be specified. 20 to 25 L Low Monitor and manage by corrective action were practicable. The risk assessment did not identify any extreme environmental issues relating to the Project. The impact of greenhouse gas (GHG) emissions on the business due to the potential costs of GHG abatement or a carbon tax and the potential for coal reject to exceed current approved reject capacities were identified as a high risk to the project. A number of significant issues were identified, relating to the Project including: Ecological impacts from subsidence; Ecological impacts from land clearing for new infrastructure; Impacts to air quality criteria as a result of coal handling operations at the Newstan Colliery Surface Facilities Area; Impacts to surface water/creeks as a result of subsidence; Noise impacts as a result of coal handling operations at the Newstan Colliery Surface Facilities Area; Page 33

34 Impacts to LT creek as a result of increasing discharge requirements; Impacts to water quality as a result of mine water discharge requirements; Impacts to the Newstan Colliery water management system as a result of increased water management requirements; and Social impacts in the community as a result of an extension to the Newstan Colliery mining operations. Potential impacts to European heritage sites were ranked as a moderate risk to the project. Impacts to groundwater users, surface infrastructure, traffic and visual impacts were ranked as a low risk. 6.2 Identified Environmental Issues The environmental issues identified during the environmental risk assessment, and how they will be assessed in the Environmental Assessment, are discussed in the sections below Subsidence A detailed subsidence assessment will be undertaken for the final mine design for the Newstan Lochiel Project for inclusion in the Environmental Assessment. The subsidence assessment will include: Identification of mine characteristics (depth of cover, geology, mining method, mining height, mine layout and percentage extraction) and how these characteristics influence transient and final subsidence levels; Identification of known geotechnical constraints (including known and inferred geological structures and known and inferred aquifers and aquacludes) to existing and/or proposed mine design; A review of previous subsidence predictions from the operation against actual subsidence results; Identification of conventional and non-conventional subsidence effects and impacts likely to be experienced at the site; Identification of an appropriately scaled subsidence prediction methodology for the site that is clearly described and, where available, supported by actual subsidence data; Assessment of the conservativeness applied to the prediction methodology used; and Identification of the maximum likely predicted vertical subsidence, tilt and strain. Page 34

35 The outcome of the specialist subsidence assessment informs the environmental assessment. Other specialists use the predictions to determine the consequences of subsidence on sensitive features Flora and Fauna A terrestrial ecological impact assessment will be undertaken as part of the Environmental Assessment. The assessment will involve: A review of previous ecological investigations undertaken in proximity to the Project Application Area in addition to database searches within the locality; Vegetation community survey and mapping; Targeted seasonal threatened flora surveys; Fauna Surveys; Identification of mitigation or management measures as required; and Identification of any residual environmental risk Surface Water A surface water impact assessment will be undertaken as part of the Environmental Assessment and will include: Collection and review of background data; Assessment of impacts to creeks which could be impacted by the proposed Project; Development of a site water balance which includes analysis of any water quality data to determine the median, 80th and 20th percentile values for each parameter. The background water quality will be compared to the ANZECC water quality guidelines; Analysis of the water quality data collected from Newstan Colliery to determine any mine water quality and the potential contaminants associated with any discharge requirements; Review and update existing monitoring program as required (including any licensing requirements); Determine mitigation or management measures as required; and Identify any residual environmental risk. Page 35

36 6.2.4 Groundwater A groundwater impact assessment will be undertaken as part of the Environmental Assessment and will include: A review of any available background hydrogeological and mining data; Searches of the NSW Groundwater Bore Database to identify beneficial use of groundwater in the anticipated radius of drawdown; Consideration of the ecological assessment report (to be prepared concurrently to the groundwater assessment) to identify possible GDEs; Development of a high level, conceptual hydrogeological model, including the identification of model layers and boundaries, material properties and sources / sinks; Construction of a MODFLOW hydrogeological model based on the conceptual model with calibration of the model against available underground water level data; Predictive simulations of water level change in the workings; Identification of potential groundwater impacts of the proposed Project, including impacts on beneficial users and GDEs; Development of groundwater management strategies and mitigation measures as required; and Identification of any residual environmental risk Greenhouse Gas The greenhouse gas assessment will: Calculate Scope 1, 2 and 3 greenhouse gas estimations for the on-site activities associated with the Project in accordance with the requirements of the NGER Act, and by applying all relevant emission factors and methods including those documented in the NGER System Measurement, Technical Guidelines (June 2010); Assess the significance of greenhouse gas emissions for the Project in relation to national greenhouse gas objectives, and report on the Project s greenhouse gas implications in terms of Federal and NSW Government policies and protocols; Determine mitigation or management measures as required; and Identify any residual environmental risk. Page 36

37 6.2.6 Air Quality An air quality assessment will be undertaken as part of the Environmental Assessment to assess potential impacts on nearby sensitive receptors. This assessment will include: Identification of an appropriate meteorological data set to utilise for the Project/identification of sensitive receptors; Identification of all likely dust generating sources (depositional dust, PM10, and Total Suspended Particulates (TSP)); Establishment of background air quality levels and air quality goals for all relevant air quality emissions in accordance with the NSW DECCW Approved Methods for the Modelling and Assessment of Air Pollutants in New South Wales (2005) and other relevant guidelines; Estimation of emission rates, primarily using emission inventory data, including the National Pollutant Inventory (NPI) Emission Estimation Technique Manuals and USEPA AP-42 Emissions Inventory documentation, as required; Dispersion modelling to predict PM10, TSP and deposition rates at the closest private receptors; Recommendations on mitigation and management strategies; and Identification of any residual environmental risk Noise A noise impact assessment will be undertaken as part of the Environmental Assessment and will include: Installation of noise loggers at locations representing the nearest affected residential premises to determine existing background noise levels and contributors for a period of at least seven days; Noise measurements at the Surface Facilities Area for the purpose of determining sound power levels of all acoustically significant plant and equipment operated at the Newstan Colliery and other sources; Analysis of noise data with reference to local weather conditions and cumulative impacts; Impact assessment of the proposed Project s contribution to the noise environment at the nearest sensitive receptors for day, evening and night time periods under calm and prevailing meteorological conditions; Identification of noise management strategies and mitigation measures, as required; and Page 37

38 Identification of any residual environmental risk Heritage (Aboriginal and European) An Aboriginal and European heritage impact assessment will be undertaken as part of the Environmental Assessment and will include: Background research, including: o Identify statutory requirements relevant to the proposed Project; o Consultation with the Aboriginal community and other interested stakeholders in accordance with the Aboriginal Cultural Heritage Consultation Requirements for Proponents 2010 (DECCW, 2010); o Literature review of previous archaeological studies relevant to the Project Application Area; o Search of the Aboriginal Heritage Information Management System (AHIMS) database; o Assessment of Aboriginal and European archaeological and cultural heritage items identified within the Project areas; and o Baseline inventory of all Aboriginal heritage sites inside the Project areas. Field surveys over the Project areas; Identification of mitigation and management strategies to avoid and/or minimise against identified Aboriginal and/or European impacts; and Identification of any residual environmental risk Social A social impact assessment will be undertaken as part of the Environmental Assessment to identify impacts of the proposed Project on the community and identify mitigation and management measures as required Soils The Environmental Assessment will include an assessment and reporting of soils and soil-related issues including addressing the potential for interaction with acid sulphate soils and recommending further appropriate management and mitigation measures as required. Page 38

39 Waste Management The Environmental Assessment will include an assessment of waste management across the site including management of coal reject material Visual A visual impact assessment will be undertaken as part of the Environmental Assessment. Page 39

40 7.0 STAKEHOLDER AND COMMUNITY CONSULTATION Centennial will lead the stakeholder and community consultation for the Project. A detailed stakeholder consultation plan will be developed for the Project, and will provide a framework to identify and appropriately consult with stakeholders that may be influenced by or have an interest in the Project. Key stakeholders include: Government (Federal, State and Local); Community; and Mine staff and employees. A stakeholder consultation log will be maintained as a record of the consultation activities undertaken, and the contents of this log will be summarised in the Environmental Assessment. Consultation to be undertaken as part of the Newstan Lochiel Project will include: Updates to the Newstan Community Consultative Committee; Updates to the LT Creek Sustainable Neighbourhood Group; Regular distribution of the Newstan newsletter to residents of Awaba, Fassifern and Wakefield; Letters informing people of the project to all residents surrounding the Project Areas; Project updates provided on the Centennial coal website; Project updates provided in the Lakes Mail; Media releases; Information sessions; and Face to face meetings with landowners and other regulatory and industry stakeholders where required. Centennial Newstan maintains a community complaints and enquiries line which will also be made available to the community for people to obtain up to date and factual information or make complaints regarding the Project. Page 40

41 8.0 PROJECT JUSTIFICATION The Newstan Lochiel Project, if approved, will allow for the optimisation of resource recovery from within the Newstan Lochiel Project Area while provide ongoing employment for up to approximately 350 full time employees. In addition the Newstan Lochiel Project will provide a number of positive flow-on effects to the local, regional and state economies through additional wages and royalties. The coal recovered from the Newstan Lochiel Project can produce both a semi-soft coking coal product for the export market and a thermal coal product for both the domestic and export markets. Coal produced from the Newstan Lochiel Project can enable supply of export coal products while meeting contractual coal supplies to the domestic markets. Over time, the Newstan Lochiel Project can replace the coal product currently supplied to the domestic market by other Centennial Coal operations as these resources become depleted. The Newstan Colliery Surface Facilities Area is strategically located in close proximity to the existing Eraring and Vales Point Power stations. Newstan Colliery is directly linked to Eraring by private haul road, allowing for ongoing stable supply conditions while reducing the energy demands that would be required for coal to be supplied from other NSW mining operations. In addition, the ability for Centennial Newstan to handle and process coal from other Centennial Coal operations (Mandalong Mine and Awaba Colliery) at the Newstan Colliery provides a unique opportunity for Centennial to blend different coal products in order to meet supply demands for different coal products. 9.0 CONCLUSION Centennial Newstan is seeking approval under Part 3A of the EP&A Act to undertake and continue a range of mining related activities at the Newstan Colliery as outlined within the PEA. Detailed mine design, and a detailed assessment of infrastructure requirements for the Project will be undertaken during the preparation of the Environmental Assessment. This PEA has been prepared by Centennial Newstan to accompany an application for Project Approval. This PEA is intended to provide the Department of Planning (DoP) and other relevant regulators with a description of the Project and identify likely key social and environmental issues associated with the Project to enable the Director-General to issue EARs to assist Centennial Newstan in the preparation of the Environmental Assessment. Page 41

42 Page 42

43 Appendix 1 Environment and Community Broad Brush Risk Assessment Page 43

44 Dyadem Stature for Risk Management: Risk Assessment Title: Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment Version: 1 Region: North Site: Newstan Stature Risk Assessment No.: of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

45 Background Centennial Newstan Pty Limited (Centennial Newstan) owns and operates the Newstan Colliery. Newstan Colliery is an underground coal mine located approximately 25 kilometres south-west of Newcastle and 140 kilometres north of Sydney in the Lake Macquarie region of New South Wales. Newstan was granted development consent, by the (then) Minister for Urban Affairs and Planning, on 14 May 1998 following the submission of the Newstan Life Extension Project EIS (Umwelt, 1998) and DA The Newstan development as approved includes: Underground mining at an extraction rate of up to four million tonnes per annum; Continued underground transportation of extracted coal to the existing Newstan Colliery surface facilities; Upgrading of the rail loading facilities at the existing Newstan Colliery surface facilities; and Future construction and operation of a ventilation shaft and men and materials access shaft at Awaba Colliery surface facilities. Modifications to the Newstan development consent were approved by the Department in 2007 and Newstan produces both a thermal and semi-soft coking coal suitable for both the domestic and export markets. Transportation of domestic product coal occurs primarily via trucking operations along the Eraring Private Haul Road which operates between Newstan and Eraring Power Station. Domestic product coal is also occasionally transported via road and rail to Vales Point in order to meet intermittent short-term requirements. Coal for the export market is transported via rail to the domestic markets or the Port of Newcastle via the Newstan Rail Loop and the Main Northern Railway Line. On 23 May 2009 Newstan Colliery ceased underground mine production however continues to operate the surface facilities area for processing and handling coal from other Centennial Coal operations. Centennial Newstan is seeking Project Approval for the proposed Newstan Lochiel Project under Part 3A of the Environmental Planning and Assessment Act 1979 (EP&A Act) for the Newstan Lochiel Project. The proposed Newstan Lochiel Project area includes: The existing Newstan Colliery surface facilities area, The Awaba Colliery surface facilities area; and The proposed Newstan Lochiel mining areas 2 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

46 Objectives The following Hierarchy of Controls offers a framework for considering the effectiveness of controls. Note that the effectiveness of a control that is intended to reduce a risk decreases from top to bottom of the list. In other words, the closer the control type is to the top of the hierarchy, the more potentially effective the control. Eliminate the hazard or energy source (do not use the energy) Minimise or replace the hazard or energy source (reduce the amount of energy to a less damaging level or replace the energy with another that has less potential negative consequences) Control the hazard or energy using engineered devices (ex. Lock outs, chemical containers, mechanical roof support, gas monitors, etc.) Control the hazard or energy by using physical barriers (ex. machine guarding, warning signs, etc.) Control the hazard or energy with procedures (ex. Isolation procedures, standard operating procedures, etc.) Control the hazard or energy with personal protective equipment (ex. hard hats, boots with toe caps, gloves, safety glasses, welding gear, etc.) Control the hazard or energy with warnings and awareness (ex. posters, labels, stickers, verbal warnings, etc.) The objectives of this Risk Assessment is to identify the environment and community risks associated with the proposed Newstan Lochiel Project and to identify knowledge gaps where further information and/or assessment will be required to support an Environmental Assessment for the proposed Project. 3 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

47 Potential Hazards The potential hazards for the proposed Newstan Lochiel Project include: - Subsidence; - Loss of groundwater or depressurisation of groundwater aquifers; - Discharge requirements exceeding current EPL limits for volume; - Discharge of water than does not meet EPL or ANZECC quality criteria; - Impacts on the existing Newstan water management system; - Traffic Impacts; - Noise Impacts; - Impacts to air quality; - Impacts from GHG emissions; and - Community impacts. 4 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

48 Boundary Definition This Risk Assessment is a preliminary Risk Assessment aimed to identify knowledge gaps and areas where further assessments will be required. The full extent of environmental risks associated with this project will not be understood until further and more detailed investigations have been undertaken. This risk assessment should be reviewed following the completion of the detailed investigations to ensure all environmental risks associated with the Project have been identified, understood and are at an acceptable level for the company. 5 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

49 Risk Assessment Method Yes/No Yes No No No No No Workplace Risk Assessment and Control (WRAC) Fault Tree Analysis (FTA) Safety Integrity Level Analysis to Australian Standard (SIL) Bow Tie Analysis (BTA) Failure Modes and Effects Analysis (FMEA) Hazard and Operability Analysis (HAZOP) Method 6 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

50 Venue and Time Date Description Location Start Time End Time Comment Mar-2011 Scoping Newstan Colliery 11:30 AM 11:30 AM Mar-2011 Assessment Newstan Colliery 11:30 AM 1:30 AM Mar-2011 Review Newstan Colliery 9:00 AM 10:00 AM Team Selection Attendance Name Title Company Industry Start Date Yrs. of Exp. Mobile Phone # Address Pulse User No. Role M ar M ar M ar James Wearne Environment & Community Coordinator Centennial Coal 01-Nov james.wearne@centennia lcoal.com.au Facilitator P P P Jeffrey Dunwoodie Environmental & Community Coordinator Newstan Colliery 02-Dec jeffrey.dunwoodie@cente nnialcoal.com.au (none) A A P Mick Cairney Mine Manager Newstan Colliery 19-Dec mick.cairney@centennialc oal.com.au (none) A A P 7 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

51 WRAC Analysis Step Potential Incident Current Controls L MR C RR Recommended Control 1. Mining There is a risk to Newstan from ::: Subsidence ::: Caused by: Mining using continuous miner methods or Mining using Longwall methods Resulting in: Impacts to Aboriginal heritage sites. 1.1.a. Aboriginal heritage surveys have been conducted over the proposed Newstan Lochiel mining area. 1.1.b. Consultation with the Aboriginal community has been undertaken in accordance with the DECCW 2010 Aboriginal Cultural Heritage Consultation Requirements for Proponents. C (D) 3 (E) 13 (S) 1. Detailed subsidence assessment to be completed on final mine layout/design. 24. Mine design to consider potential environmental and community impacts. 2. Peer review of subsidence assessment. 3. Aboriginal and Cultural Heritage impact assessment to be completed as part of the Environmental Assessment 4. Consultation with the Aboriginal Community to continue in accordance with the 2010 DECCW Aboriginal Cultural Heritage Consultation Requirements for Proponents. There is a risk to Newstan from ::: Subsidence ::: Caused by: Mining using continuous miner methods or Mining using Longwall methods Resulting in: Impacts to European heritage sites. C (D) 4 (E) 18 (M) 1. Detailed subsidence assessment to be completed on final mine layout/design. 2. Peer review of subsidence assessment. 5. European heritage impact assessment to be completed as part of the Environmental Assessment. 24. Mine design to consider potential environmental and community impacts. There is a risk to Newstan from ::: Subsidence ::: Caused by: Mining using continuous miner methods or Mining using Longwall methods Resulting in: Impacts to Endangered Ecological Communities or Impacts to fauna habitat or Impacts to threatened flora. 1.3.a. Flora and Fauna surveys have been conducted over the entire proposed Newstan Lochiel mining area. B (D) 4 (E) 14 (S) 1. Detailed subsidence assessment to be completed on final mine layout/design. 2. Peer review of subsidence assessment. 6. Ecological impact Assessment to be completed as part of the Environmental Assessment. 24. Mine design to consider potential environmental and community impacts. There is a risk to Newstan from 1.4.a. Baseline surface water assessments have been C (D) 3 (E) 13 (S) 1. Detailed subsidence assessment to be completed on final mine layout/design. 8 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

52 Step Potential Incident Current Controls L ::: Subsidence ::: completed. MR C RR Recommended Control 2. Peer review of subsidence assessment. Caused by: Mining using continuous miner methods or Mining using Longwall methods Resulting in: Changes in flooding regime or Impacts to surface water quality or Impacts to creek geomorphology. 7. Surface water impact assessment to be completed as part of the Environmental Assessment. 24. Mine design to consider potential environmental and community impacts. There is a risk to Newstan from ::: Subsidence ::: Caused by: Mining using continuous miner methods or Mining using Longwall methods 1.5.a. Location of significant infrastructure known. 1.5.b. The area is a declared mine subsidence district. 1.5.c. Approval of mine design required for secondary extraction through an SMP or extraction plan. D (D) 5 (E) 24 (L) 17. Detailed subsidence assessment to be completed on final mine layout/design. 18. Peer review of subsidence assessment. 9. Approval of mine design required for secondary extraction through an SMP or extraction plan. Resulting in: Significant impacts to infrastructure (including houses, roads, Erring Ash Dam etc) d. Approval of mine design by the Dams Safety Committee required before mining in the Eraring Ash Dam notification area. 10. Approval of mine design by the Dams Safety Committee required before mining in the Eraring Ash Dam notification area. 24. Mine design to consider potential environmental and community impacts. There is a risk to Newstan from ::: Depressurisation of groundwater aquifers ::: Caused by: Mining using continuous miner methods or Mining using Longwall methods Resulting in: Impacts to other groundwater users. 1.6.a. Preliminary groundwater assessment for the area completed. 1.6.b. Monitoring bores have been installed in the alluvial around the project area. 1.6.c. Hydrogeological model has been developed for the Newstan Colliery. 1.6.d. Limited number of groundwater users around the project area. C (D) 5 (R) 22 (L) 11. Groundwater impact assessment to be completed as part of the Environmental Assessment. 24. Mine design to consider potential environmental and community impacts. 9 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

53 Step Potential Incident Current Controls L MR C RR Recommended Control There is a risk to Newstan from ::: Release of GHG emissions ::: Caused by: Diesel use or Electricity use or Extraction of coal 1.7.a. Annual NGERS reporting undertaken. 1.7.b. Monitoring and reporting of electricity and diesel usage. A (D) 3 (F) 6 (H) 27. GHG assessment to be undertaken as part of the Environmental Assessment. Resulting in: Costs for abatement or costs through a carbon tax or Increase in GHG emissions from the site. There is a risk to Newstan from ::: Extension of mining operations ::: Caused by: Extending mining using continuous miner methods or Extending mining using Longwall methods 1.8.a. Newstan Colliery Community Consultative Committee. 1.8.b. Newstan releases a regular newsletter to the residents of Awaba, Fassifern and Wakefield. 1.8.c. Newstan has an existing Stakeholder Engagement Plan. A (D) 4 (R) 10 (S) 24. Mine design to consider potential environmental and community impacts. 20. Review and update the stakeholder engagement plan. 21. Ensure all stakeholders are kept informed of the project. Resulting in: Community complaints or Community outrage or Community protests or Media coverage. 1.8.d. Social impact assessment completed for the current Newstan Colliery. 22. Prepare a social impact assessment for the project as part of the Environmental Assessment. 2. Coal Handling There is a risk to Newstan from ::: Impacts to air quality ::: Caused by: Coal handling operations at the Newstan Colliery surface facilities or Construction and operation of infrastructure at the Newstan Colliery surface facilities area Resulting in: Costs for implementation of mitigation measures or Exceedances of air quality criteria at nearby sensitive receptors or Local complaints. 2.1.a. Air quality modeling of existing Newstan Colliery operations has commenced. B (D) 4 (E) 14 (S) 12. Implementation of recommendations of air quality assessment being completed. 13. Air model to be reviewed and updated for the project as part of the Environmental Assessment. 10 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

54 Step Potential Incident Current Controls L MR C RR Recommended Control There is a risk to Newstan from ::: Noise impacts ::: 2.2.a. Noise modeling of existing Newstan Colliery operations has commenced. 14. Noise model to be reviewed and updated for the project as part of the Environmental Assessment. Caused by: Coal handling operations at the Newstan Colliery surface facilities or Construction and operation of infrastructure at the Newstan Colliery surface facilities area B (D) 4 (E) 14 (S) Resulting in: Costs for implementation of mitigation measures or Exceedances of Project specific noise criteria or Local complaints. 3. Water Management There is a risk to Newstan from ::: Exceedances of EPL volumetric limits ::: Caused by: Increases in mine water discharge requirements Resulting in: Community complaints or Impacts to Ecological receptors along LT Creek or Impacts to geomorphology of LT creek or Non compliance with EPL conditions. There is a risk to Newstan from ::: Extension of mining operations ::: Caused by: Extending mining using continuous miner methods or Extending mining using Longwall methods Resulting in: Impacts to the capacity of the Newstan water management system 3.1.a. Newstan Colliery has an existing and detailed Water Management Plan. 3.1.b. Hydrogeological model has been developed for the Newstan Colliery. 3.1.c. Mine water balance has been prepared for the Newstan Colliery. 3.1.d. Applications to vary the Newstan EPL has been submitted. 3.2.a Newstan has an existing detailed mine water balance for care and maintenance and operational scenarios. 3.2.b Newstan has an existing detailed hydrogeological model. 3.2.c Newstan has a detailed water management plan for the site (Newstan Colliery Revised Water Management Plan B (D) B (D) 4 (E) 4 (E) 14 (S) 14 (S) 15. Update the Hydrogeological model for the proposed Newstan Lochiel project area. 16. Update the Newstan Colliery water balance for the Newstan Lochiel Project Area. 11. Groundwater impact assessment to be completed as part of the Environmental Assessment. 27. Review and update the Newstan Colliery water balance. 28. Review, recalibrate and update the Newstan Colliery hydrogeological model. 29. Assess the capacity of the Newstan water Management system with the results of the hydrogeological model and the mine water balance. 11 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

55 Step Potential Incident Current Controls L MR C RR Recommended Control There is a risk to Newstan from ::: Exceedances of EPL and/or ANZECC water quality criteria ::: Caused by: Insufficient capacity to store water during intense and prolonged rainfall events or Poor quality of water extracted from the underground water storages. 3.3.a. Detailed surface water monitoring programme in place. 3.3.b. Pollution Reduction programme on EPL. B (D) 4 (E) 14 (S) 30. Surface water impact assessment to be undertaken as part of the Environmental Assessment Resulting in: Community complaints or Impacts to Ecological receptors along LT Creek or Non compliance with EPL conditions. 4. Reject Management There is a risk to Newstan from ::: Reject material produced in excess of existing capacity requirements ::: Caused by: Increase in CPP throughput or Processing of a higher ash product coal 4.1.a. Detailed coal specifications are known. 4.1.b. Improvements in CPP coal recovery implemented to reduce reject volumes. C (D) 2 (BI) 8 (H) 19. Detailed reject emplacement requirements and options to be considered as part of the Environmental Assessment. Resulting in: Alternative reject emplacement areas required. 5. Construction There is a risk to Newstan from ::: Construction of new infrastructure or upgrades to existing infrastructure ::: 5.1.a. Ecology surveys done over entire proposed Newstan Lochiel mining area. 6. Ecological impact Assessment to be completed as part of the Environmental Assessment. Caused by: Requirements of the Project C (D) 3 (E) 13 (S) Resulting in: Impacts to Endangered Ecological Communities or Impacts to fauna habitat or Impacts to threatened flora. 12 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

56 Step Potential Incident Current Controls L MR C RR Recommended Control 6. Traffic There is a risk to Newstan from ::: Traffic Impacts ::: 23. Traffic impact assessment to be undertaken for the proposed project as part of the Environmental Assessment. Caused by: Increasing employee numbers travelling to and from the Newstan and Awaba surface facilities area C (D) 5 (R) 22 (L) Resulting in: Impacts on road safety or Impacts on the local road network. 7. Visual There is a risk to Newstan from ::: Impacts to visual amenity ::: Caused by: Land clearing or Lighting on site or New infrastructure 7.1.a. Additional screening along Miller road has been undertaken. C (D) 5 (R) 22 (L) 25. Visual Impact Assessment to be undertaken as part of the Environmental Assessment. 26. New infrastructure to consider impacts to visual amenity. Resulting in: Changes in scenic quality or Newstan Colliery becoming more visual to the community. 13 of 16 Newstan Lochiel Project - Environment and Community Broad Brushed Risk Assessment

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