Managing land contamination during the mine closure and rehabilitation process NSW Department of Industry Division of Resources & Energy Dr David Blackmore Director Environmental Sustainability Unit Nov 2015
Division of Resources & Energy The Division of Resources & Energy (DRE) has five key business units that work together to deliver policy, programs and compliance for the NSW Government across the minerals and energy sector DRE is responsible for facilitating profitable and sustainable mineral resources development, effective environmental management and safe and responsible mining and petroleum production.
DRE Regulatory oversight- Rehabilitation and contamination As part of developing a better future through regulatory reform, we must first understand the drivers for change (e.g. learning from our past successes and failures) Prevention (and remediation) of contamination is a key aspect of the rehabilitation objectives and completion criteria that must be met for the intended post-mining land uses before DRE relinquishes security and the mining lease
Legacy of Poor Performance Significant number of derelict mines has tarnished the industry s credibility in being able to demonstrate it can leave a positive legacy Causal factors of previous failures Industry s failing to adequately identify and manage risks associated with achieving sustainable rehabilitation outcomes Limited regulatory oversight of rehabilitation activities
Previous failure to Integrate Rehab into Mine Life Cycle Mine Life Cycle Failure to Integrate Rehabilitation Don t put all your eggs in one basket by planning and implementing rehabilitation until this stage The horse has usually bolted by this stage!
Past Regulatory Issues Significant ambiguity within approvals in regards to specificity of rehabilitation obligations For example The applicant shall establish and maintain at least 30 percent of the site as native woodland to the satisfaction of the Director-General Limited obligations to require titleholders to undertake rehabilitation, including ability to call upon former titleholders to address failure Limited security for Government to fulfil rehabilitation obligations where a titleholder has defaulted
Evolution of Best Practice Rehabilitation Over the last 20 years the notion of best practice rehabilitation has evolved within industry the community and regulators have significantly higher expectations for rehabilitation outcomes Provisions now allow ability to direct former titleholders to undertake further rehabilitation More recent consents/licences are more specific in terms of post mining land use outcomes, including vegetation types
Evolution of Best Practice Rehabilitation cont.. Under proposed Upper Hunter Strategic Assessment in NSW (Part 10 of EPBC Act), rehabilitation can contribute to a biodiversity offset package where a specific Plant Community Type is to be established
The hurdle of poor perception Given lag time associated with establishing rehabilitation, standards applied under a regulatory system 20 years ago may not meet today s expectations Strong perception that rehabilitation of mine disturbed land cannot be achieved General lack of confidence from the community in the adequacy of regulatory processes relating to rehabilitation
DRE s Regulatory Objectives As part of its regulatory approach, DRE aims to: restore trust from the community in the mining and petroleum industry and government streamline regulatory frameworks promote open dialogue with the community create greater transparency provide greater regulatory stability improve rehabilitation outcomes minimise the potential for the transfer of rehabilitation and contamination liabilities to the State
Rehabilitated Minerals Sand Mine NSW Mid North Coast Best Practice Rehabilitation is Achievable!
Ecological Rehabilitation at a NSW Colliery April 2014 Use of biological resources to enhance rehabilitation outcomes
Ecological Rehabilitation at a NSW Colliery April 2014
Ecological Rehabilitation at a NSW Colliery April 2014
What is Best Practice? Best practice is simply the best way of doing things at a given site It needs to be flexible and innovative in developing solutions for site specific issues It is as much about 'approach and attitude' as it is about a fixed set of principles or technology It involves adaptive management - 'learning by doing' through the application of best scientific principles Source: Ian Macfarlane former Minister for Industry, Tourism and Resources, Leading Practice Sustainable Development Program for The Mining Industry Mine Rehabilitation (2006)
DRE Regulatory Reforms DRE is involved a number of regulatory reforms: Improved Management of Exploration Regulation (IMER), which commenced 1 July 2015 NSW Gas Plan Integrated Mining Policy (inter-agency initiative facilitated by the NSW Department of Planning & Environment) Review of Mining Regulation underway, which will build off the model developed for the IMER
DEVELOPMENT OF NEW GOVERNMENT CODES AND REQUIREMENTS
Upfront Codes forexploration activities Principles of regulatory reform Intended benefits of revised regulatory framework Grow exploration and drive a competitive resources sector Provide for risk and outcomesbased regulation Ensure competent and effective exploration Provide transparency and certainty of performance expectations to industry, regulators and community Ensure environmental sustainability; social responsibility & increased accountability Reduce regulatory burden Upfront rules; reduced duplication and streamlined reporting Accountability of all system participants and active risk based Compliance & Enforcement Increased clarity, transparency and confidence in regulation across all commodities Industry determines best use of technology and practice to deliver outcomes
Objective The final condition of areas disturbed should be as good or better than as it existed prior to exploration activities, or one that allows the proposed final land use(s) (developed in consultation with landholders) to be sustained Facilitate a risk-based approach to implementing best practice rehabilitation Code is underpinned by DRE facilitated risk assessment
MINING & PRODUCTION PHASE REFORMS
DRE s Regulatory Approach Mine Life Cycle Development Approval under EP&A Act Department of Planning & Environment Management of Environmental Impacts DP&E Consent conditions (EP&A Act) DRE Mining Lease (Mining Act) EPA Environment Protection Licence (POEO Act) DRE Role Secretary Environmental Assessment Requirements Advice role to DP&E DRE Role Promote best practice rehabilitation Mining Lease conditions Mining Operations Plan (future Rehabilitation Management Plan) Annual Environmental Management Report Site inspections and audits Compliance and enforcement actions Rehabilitation securities
Secretary Environmental Assessment Requirements Present the case in EIS that effective rehabilitation can be achieved. Key rehabilitation issues to be factored into mine design include: Natural landform design Integration of drainage system on post-mining landform with receiving water catchments Final voids Management of hostile geochemical materials Life-of-mine tailings management strategies Final land use and land capability Risk assessments & options analysis
Securities All titleholders are required to lodge a security deposit that must cover the Government s full costs of rehabilitation in the event of default (NSW $1.8 Billion) Titleholder is required to provide DRE with an estimate of rehabilitation costs DRE will consider this estimate when determining the amount of security Release of security deposit is contingent upon a title holder being able to demonstrate that rehabilitation has met the required completion criteria
Auditing, Compliance & Enforcement A key part of DRE s role is performance management of rehabilitation to minimise the potential for failure to occur Use of Codes of Practice to educate industry on how to implement best practice Issuing of Directions to titleholders to either: improve rehabilitation performance and prevent failure; OR address non-conformances Taking appropriate action for non-conformances
Rehab-Prevention of Contaminated land nexus Remediation of contamination is a key aspect of the rehabilitation objectives and completion criteria that must be met for the intended post-mining land uses before DRE relinquishes security and the mining lease Key contamination sources from mining include the use and storage of hydrocarbons and other chemicals; adverse geochemical material that is exposed as part of the mining process or through ore processing (e.g. Tailings)
Preventative Measures DRE's regulatory processes are aimed at preventing contamination from occurring in the first instance. Where a mine has adverse geochemical material to manage, the mining company is required to detailed how they are going to manage these risks as part of the submission of a MOP. Eg. include selective handling of geochemical material to ensure material is placed at depth during the mining phase; regular sampling of overburden material as well as tailings and rejects materials to ensure that they are appropriately handled and managed/remediated etc.
Mine Closure-DRE DRE regulates compliance against the MOP through the requirement that a mining company details compliance against the MOP in an annual report as well as on the ground compliance and enforcement activities Remediation of contamination is regulated as part of a MOP both progressively through the life of mine as well as part of closure
Mine Closure-Linkages DRE-EPA Holistic government approach where needed DRE will seek concurrence from EPA that contamination has been appropriately managed and remediated in accordance with Environment Protection Licence * DRE's Rehabilitation Cost Estimate Tool has a number of items included to ensure that there are contingencies in the security to cover the cost of remediation of contamination This includes the costs associated with undertaking contamination studies to identify the nature and scope of remediation activities required
QUESTIONS?