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New Acland Coal Mine Stage 3 Expansion Project – Environmental Impact Statement PAGE 3-1

3 Project Description 3.1 Key Elements of the Project

NAC currently operates the Mine, a 4.2 million tonnes (product coal) per annum (Mtpa) open cut coal mine on ML 50170 and ML 50216 within MDL 244, under the approval of EA No. MIM800317705. The Mine has recently received approval from the DERM to mine up to 4.8 Mtpa of product coal through the amendment process outlined under the EP Act.

The Project involves the staged expansion of the Mine’s up to a capacity of 10 Mtpa of product coal through the inclusion and progressive development of three new resource areas within MLA 50232. The Project is expected to extend coal production at the Mine until approximately 2042.

The key elements of the Project are:

expansion of the existing mining activities by the addition of the Manning Vale, Willeroo and Sabine resource areas within MLA 50232, located to the south and west of the current MLs 50170 and 50216;

total production up to 10 Mtpa of product coal which equates to approximately 20 Mtpa Run-of-Mine (ROM) Coal;

production of 279.7 Mt of product coal over the life of the Project;

construction period commencing in 2010 to 2013, initially involving the construction of site access and roads (including re-alignments), water management structures and additional supporting infrastructure;

maintenance of the existing thin seam coal, open cut mining techniques and expansion of the Mine’s truck and loader mining fleet;

addition of a new Coal Handling and Preparation Plant (CHPP(3)), ROM and product coal stockpile areas and supporting infrastructure on MLA 50232;

tailings disposal within a series of Tailings Storage Facilities (TSFs) on MLA 50232 comprising an initial engineered out-of-pit TSF followed by in-pit disposal to engineered TSF’s in the back filled mine pits of the current and future mine pit areas;

construction of a new Raw Water Dam (RWD (3)) to supply CHPP 3;

progressive disposal of coarse rejects to cells within the overburden dumps;

emplacement of four out-of-pit spoil dumps containing a total material volume of 128.1 Mm3 associated with the Manning Vale, Sabine and Willeroo pits;

generation of five potential final voids, comprising 560.1 hectares (ha) within the total area of the Project equalling 7 347 ha;

raw water supply from the Wetalla Wastewater Reclamation Facility (WWRF) from Toowoomba via a 45 km pipeline. This project was the subject of a separate EIS process under the SDPWO Act;

a mine surface water management system involving various water management structures staged to accommodate the progressive development of the Mine. These water management structures will be constructed to divert clean water and capture and manage mine area runoff and mine pit water for reuse;


addition of a new administration and heavy vehicle maintenance area on MLA 50232;

relocation and potential upgrade of the power supply to the Project;

diversion of the Jondaryan-Muldu Road around the Manning Vale resource area;

diversion of Lagoon Creek around the Manning Vale resource area and the progressive re-establishment of Lagoon Creek along its original alignment including rehabilitation of the riparian and in-stream zones;

development of a suitable ‘off set’ strategy to satisfy State and Federal requirements for clearance of significant vegetation within new operational areas on MLA 50232;

closure of the Acland Township and the relocation of significant historical items to the ‘Acland Heritage Precinct’ off site for tourism and other commemorative purposes;

construction of a new 8 km private haul road as a dedicated transport corridor from the Mine to the Jondaryan Rail Loading Facility (JRLF) which will include supporting road infrastructure changes;

continued use of the current JRLF on the main western rail line to the east of Jondaryan township;

decommissioning and relocation of existing local telecommunication network within the Project site;

comprehensive progressive rehabilitation program involving continuous monitoring and reporting in line with the agreed post mining land use; and

amendment of NAC’s existing EA authorising a sustainable level of environmental harm commensurate to the Project’s size and scope.

Figure 3-1 presents the Conceptual Project Plan Layout.

The Project will allow the parent company, NHCL, to expand its production capacity at the Mine to meet current and future market demands for its thermal coal products. This Project is particularly important considering NHCL’s West Moreton Operations near Ipswich will exhaust current coal reserves in approximately 5 years.

The Project offers an opportunity for NHCL to expand its business base, improve profitability and increase its return to shareholders. The Project’s thermal coal products are a highly valued energy resource that possesses lower sulphur content, produces less greenhouse emissions and provides a higher energy output than many alternative thermal coal sources.

The Project will boost economic activity within the Darling Downs region through direct and indirect employment, investment and business opportunities for the life of the Project and beyond.

NAC will invest approximately $15 billion over the full life of the Project on development, operational, transport and other associated activities. The Project is expected to contribute approximately $105 million per annum to the Gross State Product and support employment for up to approximately 530 people.

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Proposed Road Diversion

Proposed Stage 3Infrastructure Area

Active Mine PitExisting Mine

Infrastructure Area

Proposed PrivateHaul Road

Jondaryan - MulduRoad MLA 50232 Manning Vale

ML 50216 Glen Roslyn

ML 50170 Acland North

Manning Vale

Sabine

Willeroo

North Pit

South Pit

Centre Pit

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NEW ACLAND STAGE 3COAL MINE EXPANSION

Conceptual Plan

FIGURE 3-1

0 1 2 3

Kilometres

Projection: AMG - Zone 56 (AGD84)

LEGEND# Locality

RoadProposed Stage 3 InfrastructureProposed Stage 3 Infrastructure AreaExisting Infrastructure AreaProposed Private Haul Road

Glen Roslyn Stage 1 & 2 Pit BoundaryStage 3 Pit BoundaryCadastreExisting Mining LeaseStage 3 Mining Lease ApplicationStage 3 MDL

1:75,000Scale on A4


3.2 Mining Tenures

An Authority to Prospect (ATP) 129C, covering 89 sub-blocks (280 km2) was granted on 27 May 1973 to Shell Development (Australia) Pty Ltd (SDA) for a period of three years. This tenure was subsequently extended for periods of between one and three years from May 1976. Shell Coal of Australia (SCA) replaced SDA as holder of ATP 129C on 4 May 1979. The ATP area was reduced to 47 sub-blocks (150 km2) on 27 May 1982. In 1986, tenure was converted to a Retention Authority to Prospect (ATP 4CR) over 39 sub-blocks. In 1991, in accordance with the new MR Act, title was changed to an Exploration Permit for Coal (EPC 462). In the same year, the area of tenure was enlarged to include the western extension of the Acland Resource at Manning Vale West (EPC 469), previously jointly held in equal share by SCA and Moonie Oil. A new title of 47 sub-blocks covering the enlarged area, EPC 513, was issued in September 1991.

An Application for a MDL covering 30 sub-blocks was made on 11 September 1994 upon expiry of EPC 513. Application for a MDL of 9,981 ha covering the Glen Roslyn coal resource and adjacent land required for mine infrastructure was granted to SCA as MDL 244. NAC acquired MDL 244 and the associated coal resources from SCA in December 1999. NAC submitted an application of renewal for MDL 244 on 4 May 2006.

Application for a ML was made by NAC on 2 November 2000, covering an area of 1 103 ha. The Governor in Council subsequently granted ML 50170 on 6 September 2001, for a term of 21 years commencing 1 October 2001. ML 50170 encompasses the North Pit in the Glen Roslyn Reserve area, along with an additional infrastructure area.

Application for an additional ML was then submitted by NAC on 1 February 2005 and was subsequently granted on 7 December 2006. This lease encompasses the remaining Glen Roslyn Reserve area not already accounted for in ML 50170.

NAC applied for an additional ML, MLA 50232, on 24 April 2007 and will be assessed under this EIS process. The Project was declared a ‘Project of State Significance’ on 9 May 2007 under Section 26 of the SDPWO Act. This MLA covers the majority of the remaining reserves within MDL 244, including the Manning Vale, Sabine and part of the Willeroo resource areas which form the study area for this EIS assessment.

NAC possesses MLs 50170 and 50216, which are the combined New Acland Coal Mine Stage 1 and 2 areas, respectively. Table 3-1 defines the ML and MLA mining tenure arrangements. NAC intends to retain the remaining portion of MDL 244 which possesses an additional resource area that may be the subject of a future MLA by NAC.

Table 3-1 Project Mining Tenures Mining Tenure Stage Area

Mining Lease (ML) 50170 One (current) 1 103 ha Mining Lease (ML) 50216 Two (current) 1 175 ha Mining Lease Application (MLA) 50232 Three (proposed) 5 069 ha Total Project Area 7 347 ha


New Hope Exploration Pty Ltd (NHEPL), (a subsidiary of NHCL and a sister company to NAC) also holds an ATP 812P Permit, which encompasses MDL 244 for petroleum exploration purposes.

Figure 3-2 defines the tenement areas including the original MDL 244 boundary. Under the provisions of the MR Act, NAC and NHEPL have completed and lodged a Development Plan for the overlapping coal and petroleum tenures. This Plan was lodged with the DME for assessment and subsequent approval prior to grant of MLA 50232.

3.2.1 Land Tenures

The background land tenure covering MLA 50232 excluding roads, comprises 374 real property descriptions and three non-road reserves. Section 3.3.12 lists the 27 roads located within MLA 50232 that will be required to be diverted or permanently closed due to mining operations.

The three non-road reserves are owned by the TRC (two reserves) and APC (one reserve). The two TRC reserves comprise a park reserve and a reserve for sanitary purposes. The reserve owned by APC (a subsidiary of NHCL and a sister company to NAC) is the former Acland Primary School site.

The real property descriptions of the background land tenure for MLA 50232 are illustrated by Figure 3-3 and provided in Table F.6-1 in Appendix F.6.

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Acland Stage 3 Mining LeaseApplication Area

ML 50216

ML 50170

MDL 244

ATP 812P

Warrego Highway

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Project Tenures

FIGURE 3-2

0 1 2 3 4 5

Kilometres


LEGEND# Locality

RoadML 50170ML 50216MLA 50232

MDL AreaATP Area

1:125,000Scale on A4

#

1RP36486

30RP25514

2RP52300

1RP142398

2AG1806

2RP25524

2RP197103

141AG3781

1RP197103

6AG1127

2RP93626

8RP25520

7RP36452

4RP213291

15RP36491

97RP218446

56RP25514

62AG262

63AG262

40AG262 41

RP25514

65RP25514

9SP149010

8SP149010

7SP149010

6SP149010

8RP218462

141RP25514

140RP25514165

RP25514

1RP36502

3679A341857

3RP36503

3684A341858

4086A342138

3873AG2388

2AG2605

3RP36466

3473AG2388

1AG2605

3069A341593

3472A341748

3435AG2605

3293A341624

3RP36464

100AG2498

3875SP150555

3170A341594

3445A341747

3448A341747

1RP52624

2RP36465

3655A341856

3768AG2122

96A342317

3852A3419823463

A341746

97A342317 98

A342317

3469A341746

3851AG2122

3421A3416993519

A341792

3462A341746

3461RP9021133171

RP902113

4852A341982

11RP218447

4768AG2122

9SP188367

4SP188364

10SP188367

6SP188365

68AG3581

66AG3194

69RP25514

2AG262 39

AG718

38AG2512

33AG1311

34RP25514

35RP25514

37RP25514

1RP36454

2RP36454

2RP36455

1RP36455

5RP36452

2RP84726

3RP36494

2RP200083

1RP36497

3RP364522

RP40478

36RP25514

3AG1310

67RP25514

8RP218459

6RP218459

169RP25514

138RP25514

069RP25514

10RP36452



MDL 244

MLA 50232 Manning Vale

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NEW ACLAND STAGE 3COAL MINE EXPANSIONReal Property Descriptions

within MLA 50232

FIGURE 3-3

0 0.5 1 1.5 2

Kilometres


LEGEND# Locality

RoadCadastreExisting Mining LeaseStage 3 Mining Lease ApplicationStage 3 MDL 1:50,000Scale on A4


3.3 Mine Planning and Design

3.3.1 Resource Characterisation Regional Stratigraphy

The MDL 244 is located in the northwest of the Moreton Basin over the northerly trending Kumbarilla Ridge which separates the Moreton and Surat Basins. Although the Kumbarilla Ridge is considered to structurally separate the Moreton Basin from the Surat Basin, the Walloon Coal Measures of the Moreton Basin are laterally continuous with those of the Surat Basin. The Surat Basin contains early Jurassic to early Cretaceous age non-marine and marine sediments. The Moreton Basin contains non marine sediments dating from the late Triassic. The Moreton Basin represents an eastern lobe of the Mesozoic Great Artesian Basin (GAB).

The economic coal-bearing sediments of the Surat-Moreton Basin occur in the Walloon Coal Measures of the Middle to Upper Jurassic Injune Creek Group. This Group conformably overlies the Lower Jurassic Marburg Formation. Two characteristics of the group are recognised as being:

the Walloon Coal Measures, which is a productive coal bearing lower unit; and

the Kumbarilla Beds, a distinctive barren upper unit.

The major coal bearing unit in MDL 244 is referred to by NAC as the Acland-Sabine Sequence. The coal seams of the Acland-Sabine Sequence occur at a similar stratigraphic position within the Walloon Coal Measures as the Ebenezer Sequence which is currently being mined by NAC at the New Oakleigh Coal Mine. The Acland-Sabine Sequence and the Ebenezer Sequence both occur in the lower coal bearing unit of the Walloon Coal Measures.

Stratigraphy of the MDL 244 Project Area

The upper part of the Injune Creek Group, including the whole of the Kumbarilla Beds, has been eroded from the Project area. Only 150 to 200 metres (m) of coal bearing Walloon Coal Measures are preserved above the Marburg Formation.

The Walloon Coal Measures consist of grey and light grey shales, siltstones, fine clayey sandstones, carbonaceous shales, mudstones and coal seams. The coal seams are laterally continuous but are characterised by rapid lateral variation of the interseam sediment thickness. The Waipanna, Acland/Sabine and Balgowan seam intervals of the Lower Walloon Coal Measures are present in MDL 244.

The principle coal seam which is economically important to the Project is the Acland-Sabine Sequence, which typically comprises 20 m to 30 m of alternating coal and non-coal rocks of which approximately half consists of coal.

The two other coal seams within the Project area are the Waipanna Sequence, located some 20 m to 40 m stratigraphically above the Acland-Sabine Sequence, and the Balgowan Sequence which is located some 30 m stratigraphically below the Acland-Sabine Sequence. Both the Waipanna and Balgowan Sequences were intersected in numerous exploration holes. However, the coal thickness is not significant.

Isolated basalt ridges occur throughout the Project area and are remnants of extensive mid-Tertiary lava flows which have in filled pre-Tertiary age palaeo-channels. Post Walloon Coal Measure sediments,


believed to be Tertiary in age cover some of the Project area. The Tertiary age sediments in the Project area are up to 17 m thick and are mainly soft mudstones with occasional sandstone and ironstone bands. Recent alluvial deposition is in excess of 60 m in thickness and occurs to the southeast of the Sabine area and is associated with the Oakey Creek Flood Plain. Chapter 6 Groundwater Resources describes additional information regarding the local geology of the Project area.

Table 3-2 details the lithological description of the Walloon Coal Measures, as they occur in the Project area.

Table 3-2 Stratigraphy of the Walloon Coal Measures in the Acland Area Coal Sequences Thickness (m) Lithology and Comments

Waipanna >40 Mainly thickly bedded sandstone with argillaceous matrix fining upwards to interbedded fine sandstone and mudstone.

<75 Predominantly thinly bedded fine sandstone. At least four extremely banded coaly intervals are present. The lowest interval is named the A seam and reaches 6 m in thickness but is of poor quality and banded. All coal seams in this unit exhibit rapid lateral facies changes.

28 - 35 Medium to coarse sandstone units up to 10 m thick fining upward to interbedded fine sandstone, siltstone and mudstone.

Acland/Sabine 30 - 60 Predominantly thinly bedded fine sandstone to mudstone. Contains eight laterally persistent coal seam groups. Acland Interval up to 18 m of banded coal, divisible into A, B, C, D, E, F, G, H and J coal seam groups. Three high gamma claystones (BB, LAG, LGM) have been recognised throughout the Acland area, and are considered to be time stratigraphic markers.

35 Mainly thick sandstone, thin interbeds of fine sandstone, siltstone and mudstone.

Balgowan 30 Medium to fine grained sandstone fining up to mudstone and massive mudstone with minor thin fine sandstone interbeds. This unit contains numerous thin coal seams. Persistent gamma markers can be used for correlation purposes.

>40 Thickly bedded sandstone fining upward sequences to interbedded fine sandstone and mudstone.

Physical Characteristics of the Acland-Sabine Coal Interval

The Acland-Sabine Interval is characterised by coal seam and interburden continuity. Continuity of coal seams, intra seam partings, and seam interburden is a feature of the Walloon Coal Measures and can be demonstrated in the highwalls of the open cut coal mines, such as the Mine, Ebenezer and Jeebropilly, which all operate in the Walloon Coal Measures.

Product Coal Ratings

NAC currently describes the different coal products it produces as Gold, Silver or Bronze depending on the product quality. Typically, the gold product is the better quality coal which has predominantly been sold to the export market.

The Acland deposit does not lend itself easily to the creation of a silver product using the current mining methods, as a result, there is only a limited quantity currently produced at the Mine.

The bronze coal is a higher ash product that has previously been sold on the domestic market. Export markets for the bronze coal have been established by NAC.


Table 3-3 identifies the typical product qualities that define the three types of coal product and the coal seams from which they originate. The percentage of ash within the coal represents the ash content after the coal has been washed.

Table 3-3 Coal Product Definitions Product Type Typical Ash% (air dried)

Gold 13% Silver 17% Bronze 22%

3.3.2 Resource Utilisation

It is understood that the Project will not impact on other coal, gas or mineral resources in the region surrounding the Mine. The closest known coal resource exists within the remaining area of MDL 244 and may be developed by NHCL in the future depending on economic and commercial parameters. The progression of the Project will not impinge on the future development of this coal resource because it is outside the Project’s boundaries and if determined feasible, could be developed as a stand-alone operation in the future.

No coal seam methane is known to occur in the Project area at the depths at which NAC operate and no significant geological features associated with potential coal seam methane production exist. Economic and production factors will ensure that the Project will be developed to minimise coal resource wastage and sterilisation and to maximise the net Project value for NAC.

3.3.3 Mine Plan Schedule

The Project involves the continued development of the Mine on MLs 50170 and 50216 and the progressive commissioning of three additional resource areas within MLA 50232. These resource areas are known as Manning Vale, Sabine and Willeroo and are depicted in Figure 3-4. The three resource areas will be developed sequentially and combined with the current operations will supply up to 10 Mtpa of saleable product coal until approximately 2042 for export and domestic markets.

Overview of Mining Related Activities

Following the successful grant of MLA 50232 in 2010, NAC possesses a period of approximately three years until 2013 to undertake design, construction and other related activities to facilitate mining on MLA 50232. The proposed length of the construction period is governed by external rail and port developments which influence the rate of product coal transport off site. Table 3-4 outlines an indicative schedule for mining related activities on MLA 50232. The construction phase for the Project involves the expansion of an existing mining operation, which involves increasing the mining fleet and workforce, constructing the supporting infrastructure and developing the new resource areas.


Table 3-4 Indicative Schedule for Mining related activities on MLA 50232 Year Activity

2009-2010 Environmental and mining approvals (Federal & State) Relocation of selected heritage items to the Acland Heritage Precinct

2010-2013 Cultural Heritage clearance Road closure applications Relocation of selected heritage items to the Acland Heritage Precinct (cont.) Construction of site access and roads (including re-alignments) Construction of water management structures Construction of the additional supporting infrastructure Acquisition of additional mining fleet Gradual employment of additional workers Preparation of the Manning Vale box-cut and out-of-pit dump construction, for example survey and topsoil recovery

2013-2014 Mining commences within the Manning Vale reserve area (box-cut and out-of-pit dump construction)

2016 Initial diversion of Lagoon Creek commences 2020 Re-construction of Lagoon Creek commences 2022 Mining commences within the Sabine reserve area

(box-cut and out-of-pit dump construction) 2025 Mining commences within the Willeroo reserve area

(box-cut and out-of-pit dump construction) 2027 Secondary diversion of Lagoon Creek commences 2031 Final and permanent diversion of Lagoon Creek commences

NAC will be responsible for all mining activities with the Project site. In line with current practices, NAC may employ contractors for specialist mining activities, such as topsoil recovery and blasting.

All mining and construction activities on the Project site will be conducted in compliance with the Coal Mining Safety and Health Act 1999 (CMSH Act). First aid and other required facilities will be supported from the existing operations until the equivalent facilitates are established on MLA 50232. NAC will ensure that local emergency services are advised of the Project.

The acquisition, transport to the Project site and assembly of the additional mining fleet will be a major action required to facilitate mining at the 10 Mtpa rate and is expected to take the full construction period based on the total number of acquisitions, budgetary factors and the expected delays in the availability of certain equipment.

No significant quantities of additional construction materials are required for the Project. Sufficient clay and basaltic materials are available from existing and new areas on the Project site for the construction of haul roads and other related infrastructure requirements such as water management structures. Some minor quantities of specialist materials may be required for construction and operational purposes and would be sourced off site on an as required basis.

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Active Mine PitExisiting Mine

Infrastructure Area




Manning Vale

Sabine

Willeroo

North Pit

South Pit

Centre Pit

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Planned Coal Production Areas

FIGURE 3-4

0 1 2 3

Kilometres


LEGEND# Locality

RoadProposed Stage 3 InfrastructureProposed Stage 3 Infrastructure AreaExisting Infrastructure AreaProposed Private Haul Road

Glen Roslyn Stage 1 & 2 Pit BoundaryStage 3 Pit BoundaryCadastreExisting Mining LeaseStage 3 Mining Lease ApplicationStage 3 MDL

1:75,000Scale on A4


Coal Production Increase from the Base case

Current mining production at the Mine is 4.2 Mtpa product coal. This production rate utilises all NAC’s current available CHPP capacity and transport capacity of product coal off site to the various market locations. This production rate is set to be maintained for the 2009 and 2010 financial years. From mid 2009, NAC are authorised to increase production to 4.8 Mtpa under its existing EA while the EIS approval for 10 Mtpa is considered. The then EPA made this decision during May 2008 following a submission by NAC demonstrating that no additional environmental harm would be caused by the interim production increase.

From August 2009, additional coal washing capacity will be provided by the upgrading of the CHPP 2. This upgrade in capacity will provide enough processing throughput to enable a 4.8 Mtpa production rate.

In conjunction with the CHPP 2 upgrade, the transport capability will also be increased by a number of methods. Queensland Rail (QR) has provided extra capacity on the railway line from Jondaryan to Brisbane through the introduction of a number of innovative efficiencies. In addition, a new design in train wagons, ‘close-coupled’ wagons, is currently being trialled by QR which will provide an estimated 30% more capacity per train. There are also ongoing optimisations to the efficiency of the rail transport system by QR, which should provide further capacity in the future.

The 4.8 Mtpa production rate will be maintained by NAC for at least three years until:

all approvals are acquired, including:

– the successful completion of this EIS process, including a comprehensive community and stakeholder engagement program;

– the issuance of an approval for EPBC 2007/3423 from the Federal government;

– the issuance of an amended EA to address the additional requirements of the Project by the DERM;

– the conversion of MLA 50232 to a ML; and

– receipt of ancillary approvals, for example road closures and the diversion of Lagoon Creek.

construction of the on and off site infrastructure required to produce and transport coal off site at a production rate up to 10 Mtpa; and

purchase and implementation of sufficient ‘close-coupled’ wagons by NAC and additional improvements are made in train pathways to Brisbane by QR to allow rail of:

– 7.5 Mtpa of product coal to Queensland Bulk Handling (QBH)’s port facilities at Brisbane; and

– 0.3 Mtpa of product coal to Swanbank Power Station, Ipswich.

Table 3-5 describes NAC’s planned increase in production rates for the life of the Project.

Table 3-5 Planned Production Rates Date From Date To Planned Production Rate

April 2008 July 2009 4.2 MtpaAugust 2009 December 2012 4.8 MtpaJanuary 2013 December 2013 7.5 MtpaJanuary 2014 December 2042 10 Mtpa


The Project’s production rate will be closely governed by available road, rail and port capacities. NAC believes the use of the ‘close-coupled’ wagons and QR’s on-going optimisations to the rail transport system will avoid unnecessary constraints to the Project’s planned production growth.

NAC is conducting on-going investigations into the Project’s coal transport options, which may involve the export of product coal from Gladstone’s proposed Wiggins Island Coal Terminal using the future Surat Basin Railway.

Although the ability to increase production up to a 10 Mtpa rate occurs from early 2013, NAC’s current plan is to gradually increase production up to the proposed maximum level over a two year period. The multiple thin seam mining technique employed at the Mine relies on highly experienced operators and as a consequence, will take time to employ and skill enough operators with the relevant experience required to mine the coal in an efficient and effective manner. In addition, there are physical mining constraints and economic consequences to rapidly increasing production.

From the 2010 financial year when production increases to 4.8 Mtpa, two pits will remain operational - North and South Pits from the Glen Roslyn resource area. As production increases from early 2013 onwards, an additional pit will be developed to bring the production rate initially up to 7.5 Mtpa and a year later, a fourth pit will be developed to increase production up to 10 Mtpa. From 2014 to 2024, four pits will be in operation until the resource areas are opened up enough to provide sufficient strike length to enable a reduction to three pits.

The production rate achieved out of each operational pit is partly dependent upon the strike length available for each mining strip. This operational influence is due to the nature of the thin seam mining technique currently employed at the Mine, where more blocks are required for coal production as the mining rate increases. If the number of blocks available for coal production increases disproportionately to the strip width, then the ability to develop bridges for overburden dumping may suffer and the haulage costs for overburden dumping will increase. As a result, this operational constraint formed the basis for developing the production rates for each of the Project’s operational pits.

Life of Mine Schedule

The life of mine schedule is outlined in Figure 3-5. Figure 3-7 to Figure 3-11 identify the location of the pits and working areas over the life of the Project in 2008, 2014, 2019, 2025, 2030, 2036 and 2042, respectively. Figure 3-12 provides the proposed conceptual final landform including the out-of-pit spoil dumps and the final void locations. NAC’s mine plan for the Project have been developed to minimise equipment capital expenditure and operational mining costs, particularly at start-up and to maximise the net Project value over the life of the Project.

A new Coals-to-Liquid Plant is a project currently under consideration by NHCL. NHCL may develop this project in the future depending on the outcomes of current studies. If developed, the project would be located on a separate land parcel adjacent to the current Project site, and as result, would require a DA under the IPA for a ‘material change of use’ amongst other legislation requirements.

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MDL 244




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Life of Mine Schedule

FIGURE 3-5

0 1 2 3

Kilometres

Projection: AMG - Zone 56 (AGD84)1:75,000Scale on A4

LEGEND# Locality

RoadCadastreExisting Mining LeaseStage 3 Mining Lease ApplicationStage 3 MDL

MINING SEQUENCE2008 - 20122013 - 20152016 - 20182019 - 20212022 - 20242025 - 20272028 - 20302031 - 20332034 - 20362037 - 20392040 - 2042None

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Mining Layout 2008

FIGURE 3-6

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CadastreExisting Mining LeaseStage 3 Mining Lease ApplicationStage 3 MDL

Mining StatusActive Dumping AreaActive Mining AreaActive Pre-Stripping AreaIn-Active Void/DumpRe-contoured, Rehabilitated Land

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Mining Layout 2014

FIGURE 3-7

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Mining Layout 2019

FIGURE 3-8

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Mining Layout 2025

FIGURE 3-9

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Mining Layout 2030

FIGURE 3-10

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Mining Layout 2036

FIGURE 3-11

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NEW ACLAND STAGE 3COAL MINE EXPANSIONConceptual Final Landform

FIGURE 3-12LEGENDStage3 MDL Surface mRI

540 440 340


Coal Production Plan for Life of Mine

A detailed life of mine plan has been produced by NAC for the Project which delineates the available coal for future production. Table 3-6 outlines NAC’s planned coal production for each resource area including the current mining operations from March 2008 onwards. Table 3-6 also presents ROM coal qualities for each resource area prior to processing through CHPP 1 & 2.

Table 3-6 Planned Coal Production & Quality Mining Areas Glen Roslyn Manning

Vale Sabine Willeroo Total

North Pit South Pit

Centre Pit

Overburden Volume Mbcm 24.2 65.2 37.4 443.7 269.1 76.6 916.2 Interburden Parting Volume (>2m3)

Mbcm 16.2 11.5 9.5 198.7 190.4 66.2 492.5

Interburden Parting Volume (<2m3)

Mbcm 16.7 21.7 15.2 130.3 83.6 22.6 290.1

ROM Coal Volume Mbcm 13.8 26.4 16.8 186.1 92.5 26.1 361.7 Total Volume Mbcm 71.0 126.6 82.2 960.6 637.5 190.9 2068.8 ROM Tonnes Mt 21.1 41.1 26.3 291.2 143.0 40.7 563.4 Product Coal Tonnes

Mt 11.0 21.0 12.5 142.8 72.6 19.7 279.7

Yield % 52.0 51.2 47.5 49.1 50.8 48.5 49.6 Ash Content % 17.5 19.0 20.0 18.9 17.8 17.9 18.5 Specific Energy kcal/kg 6410 6293 6211 6297 6389 6382 6327

3.3.4 Mining Method

The mining method utilised by the Project is modelled on the mining method currently employed at the Mine. Initially, top soil is removed primarily for the purposes of rehabilitation followed by overburden drilling and blasting. From this point, a new box-cut is developed, with the overburden being dumped within an out-of-pit spoil dump or used to backfill an existing void. Coal mining commences once sufficient overburden is removed to expose the coal seams and involves working a number of blocks in conjunction with one another to develop a staggered pattern in relation to the vertical coal seam horizons. The number of blocks required for coal production depends on the productivity requirement of that particular mine pit. Once enough floor area is available in the mine pit, spoil dumping then commences in-pit allowing progressive backfilling of the void as mining progresses across the resource area. A generalised pictorial representation of the mining process is provided in Figure 3-13.

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All topsoil is stripped generally using scrappers and directly returned to current progressive rehabilitation areas behind the active mine pit area or stockpiled for future rehabilitation purposes. Direct return is the preferred method to minimise topsoil handling, which reduces loss of viability from damage to soil structure and propagules. All overburden is normally mined utilising excavators and on rare occasions, spare loader capacity is also used to assist with overburden removal. Thick interburden partings greater than 2 m in thickness are also removed by excavators. When the partings reduce in thickness to below 2 m, loaders are specifically utilised. Loaders are engaged exclusively to mine the coal seams.

Dozers are used to both rip and push the coal and parting bands into windrows to allow for increased productivity by the loaders. Therefore, the number of dozers being utilised is dependent upon the productivity requirement.

A typical cross section of an operating mine pit is shown in Figure 3-14.

High-wall Original Box-Cut

Out-of-Pit Dump

Original Topography

Re-contoured dump profile

Previous Pit Floor

Final Void/ Operating Pit

Low-wall (in-pit dump)

Pit Floor

Mining Direction

Backfill

Current Landscape Profile

Original Box-Cut

Previous Pit Excavation

Original Topographic Profile

Legend

Un-mined Coal Resource

Figure 3-14 Mining Operations Cross Section

3.3.5 Out-of-pit Spoil Dumps

The Project’s out-of-pit spoil dumps will be designed based on the following criteria:

the final spoil dump slopes are battered to a maximum of 15% (8.5o) slope angle;

a 10 m berm will be included at least every 20 m in dump height; and

water management structures such as contour banks and rock-lined water ways will be constructed as required with respect to the slope length and catchment area of each spoil dump face to be treated.


Figure 3-15 represents a schematic diagram demonstrating the conceptual engineering design parameters for the spoil dumps.

10m berm

20m dump bench

Out-of-Pit Dump

Pit (Box-Cut)

Final Dump Design

8.5o 35o Original Topography

Figure 3-15 Spoil Dump Conceptual Design Plan

The Project’s out-of-pit spoil dump volumes have been estimated based on operational demands that occur with thin seam mining and the physical parameters such as location and size of the box cuts required to open new mining areas.

The volumes for each of the Project’s box-cuts and corresponding out-of-pit spoil dumps have been estimated and are detailed in Table 3-7. Figure 3-16 presents the locations of the Project’s out-of-pit spoil dumps.

Importantly, the Sabine out-of-pit spoil dump is considerably larger than the Project’s other spoil dumps. This dump design requirement is due to the Sabine resource area having a slightly higher stripping ratio and as a consequence, the depth of overburden for removal is considerably greater. In addition, the Sabine resource area has a significant amount of ‘extended box cut volume’ due to its shape along the edge of the deposit.

The Project involves several box-cuts that do not produce an out-of-pit spoil dump due to the ability to backfill.

The Project’s box-cuts that will undertake backfilling operations are:

the initial box cut of the eastern edge of the Manning Vale resource area commencing in 2017, which will back fill the South Pit void (Note: This box cut is essentially a continuation of the South Pit.); and

the Centre Pit in the Glen Roslyn resource area will partially backfill the North Pit void commencing in 2013. (Note: A proportion of the North Pit void is planned to be used as an in-pit tailings facility. Therefore, part of the North Pit area may be required to be surcharged to contain the entirety of the Centre Pit box cut.)


Table 3-7 Predicted Out-of-pit Dump Volumes

Reference Out-of-Pit Dump Activities Units Sabine Manning Vale (North)

Manning Vale (West)

Willeroo

A Blocks pre-stripped before coaling can commence No. 5 5 5 5

B Coal blocks mined (partially/completely) before in-pit dumping can commence No. 14 14 9 8

C Overburden mined prior to coaling commencing (A) Mbcm 3.6 6.4 6.1 3.9

D Coal/parting mined before in-pit dumping commences (B) Mbcm 7.5 5.7 4.2 2.8

E Parting mined before in-pit dumping commences (B) Mbcm 2.9 2.5 2.1 1.4

F Loader Mining Rate Mbcm/y 5.7 6.2 5.9 4.8

G Excavator Mining Rate Mbcm/y 16.8 10.9 11.9 9.1

H Length of time of coal mining prior to in-pit dumping (D/F) years 1.3 0.9 0.7 0.6

I Additional excavator volume mined during coaling (HxG) Mbcm 21.8 9.8 8.3 5.5

J Extended Box-Cut Out of Pit Volume Mbcm 14.7 1.8 12.5 2.8

K Total Ex-Pit Dump Volume Required (C+E+I+J) Mbcm 43.5 20.7 20.7 13.4

L Total Ex-Pit Dump Volume Required (@ 20% swell) Mm3 52.1 24.9 35.0 16.1

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NEW ACLAND STAGE 3COAL MINE EXPANSIONOut-of-pit Dump Locations

FIGURE 3-16

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3.3.6 Final Voids

The Project’s void locations are determined by the mining sequence and the final two to three strip widths remaining as a void at the cessation of mining. The Project’s estimated void locations and sizes are provided within Table 3-8.

Figure 3-17 displays the planned final locations for the Project’s residual voids.

Table 3-8 Residual Void Areas Resource Area Position Size (ha)

Manningvale South West 2 40.1- void Manningvale South 105.5 – void Willeroo South 1 71.5 – void Willeroo South 2 108.8 – void Sabine North 203.7 – void Centre Pit Centre 30.5 – void TOTAL RESIDUAL VOID AREA 560

The current life of mine plan indicates that the existing Glen Roslyn North Pit, Glen Roslyn South Pit and Manning Vale South-Western Pit are to be backfilled with spoil. The Glen Roslyn Centre Pit area is likely to be backfilled via in-pit tailing disposal. The remaining Resource Areas listed in Table 3-8 are planned to exist as final voids with a total void area of 560 ha.

NAC plans to explore additional opportunities to reduce the area and volume of the out-of-pit spoil dumps and residual voids through further backfilling operations over the life of the Project. Importantly, this option is not always economically feasible due to increased haulage requirements and the requirement to ‘double handle’ spoil, which significantly impacts operational costs and the overall economics of the Project.

Through the on-going mine planning process, beneficial outcomes will be continuously explored, assessed and measured to ensure the most efficient methods are adopted. Mine planning is an iterative process that is sensitive to many operational factors and as a consequence is constantly evolving in an effort to generate the best possible economic and environmental outcomes for the Project.

As an extensive background landowner in the Acland region, NHCL will be commercially driven to ensure this land can support a beneficial and sustainable post-mine land use. Currently, NHCL possesses the same business imperatives for its mining operations within the West Moreton district, near Ipswich, where mine closures are imminent and as a result, innovative and valuable post-mine land use options and ideas are being contemplated. This knowledge and experience will be a useful planning tool in the future when the Project approaches closure.


As a minimum, NAC’s rehabilitation efforts for the out-of-pit spoil dumps and final voids will ensure that these landforms:

are safe from the perspective of human and animal access;

are stable from an erosion perspective;

possess a suitable, self-sustaining vegetative cover that is compatible with the agreed final land use; and

are not adversely impacting on the downstream receiving environment.

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Final Void Locations

FIGURE 3-17LEGENDOut of Pit DumpFinal VoidBackfilled Void


3.3.7 Mining Equipment

The Project’s equipment requirements were determined by a complicated process of iterative scheduling of the quantity, roster and size of the proposed equipment. This process has ensured that the coal production profile and the overburden volumes are acceptable to achieve the 10 Mtpa mining case. Table 3-9 summarises the mining equipment required for the Project.

Table 3-9 Planned Mining Equipment (10 Mtpa Production) Plant & Equipment Machinery Type Quantity

Production Equipment O&KRH340 Excavator 2 Ex5500 Excavator 1 992 G Loader 6 992 G Loader (ROM Re-handle) 1 793 Rear Dump Trucks 8 789 Rear Dump Trucks 4 785 rear Dump Trucks 23 D11 Dozer 11 D10 Dozer 3 854 Rubber Tyre Dozer 3 D90K Drilling Rig 1 D45K Drilling Rig 2 785 Water Truck 1 777 Water Truck 1 773 Water Truck 1 24H Grader 4 16H Grader 1

Ancillary Equipment 773 Fuel & Lube Truck 3 Troop carriers 14 Fitters Trucks 5 Utility Vehicles 13 Staff Vehicles 15 Pumps 8 Tyre Handlers 2 Forklifts 2 Cherry Pickers 2 Lighting Plants 35 Crane 30t 2 Low Loader 100t 1

TOTAL 175


3.3.8 Hours of Operation

Mining activities will be conducted either on a 6 day, 24 hr basis or a 7 day, 24 hr basis depending on the mining schedule and the type of mining equipment under utilisation. Certain mining related activities such as blasting will only be undertaken during daylight hours. The CHPP activities will be conducted on a 7 day, 24 hr basis.

3.3.9 Blasting Activities

Blasting will be used to loosen in-situ overburden to allow more efficient operation of the excavators. Blasting will occur on a campaign basis. On average, blasting will occur once a week during daylight hours in each of the operational pits, which equates to an average of four blasts per week when four pits are operating. Over the life of the Project, adverse geological conditions (areas of harder in-situ overburden) may be periodically experienced in each operational pit, and as a consequence, there may be a corresponding requirement to increase in the weekly blast rate of the impacted pit or pits until conditions improve. Overburden will be blasted below a depth of 7 m from the surface along with inter-burden greater than 2 m in thickness.

Each blast will use up to 300 t of ANFO (ammonium nitrate fuel oil) and possess an average powder factor of about 0.3 kg/bcm. A water resistant emulsion product will also be used in wet boreholes. Crushed basalt is commonly used as stemming material and is planned to be utilised for the Project’s blasting requirements.

Blast holes of 229 mm will be drilled using a conventional rotary drill. The typical blast pattern area per blast will be 4 ha to 5 ha. All coal and thin parting intervals of less than 2 m will be ripped using dozers and transported by front-end loaders. No coal seams will be blasted in the process.

NAC have employed an external contractor to manage blasting activities at the Mine in the past and this arrangement is likely to continue. NAC also employs a specialist contractor who works closely with the external contractor to assist with blast management. Two magazines have been established on site for the separate storage of explosive material such as detonators and boosters. These facilities will be upgraded appropriately to accommodate the Project’s increased explosive requirements and be relocated to a more centralised location to improve operational efficiency. A bulk explosives storage facility will also be commissioned for the Project to provide for appropriate storage and handling of explosives.

NAC will ensure the necessary approvals under the Explosives Act 1999 are obtained from the DME for the proposed changes in explosive management for the Project. The safety aspects of blasting activities will continue to be conducted in compliance with the CMSH Act. NAC will also ensure that its current blast notification protocol for near neighbours and blast monitoring regime are updated at a rate commensurate with the Project’s proposed expansion of mining activities.

3.3.10 Site Access and Haul Roads

Existing access tracks will be used for all mining operations to minimise disturbance areas. Current haul and internal service roads on MLs 50170 and 50216 will be maintained and upgraded as required to accommodate the expansion in mining operations. New haul and internal service roads will be constructed on an as required basis.


The re-aligned Jondaryan-Muldu Road runs north-east from the Warrego Highway at Jondaryan and will provide access to the main and secondary entrances to the Project site.

The former RSC upgraded the road in 2002 before the Mine commenced and is currently undergoing a program of progressive upgrading by the TRC. The northern section of the Jondaryan-Muldu Road will eventually be re-aligned to the west of the Manning Vale resource area to accommodate for mining operations in that area. This road will link the Project site to the Warrego Highway to enable product coal transportation to local customers in Southeast Queensland.

Mine haul roads will follow existing design criteria subject to the requirements of the CMSH Act, including a design speed of 60 km/hr, at least 30 m wide and two-way lanes. The maximum grade of the haul roads will be 10% with a maximum cross fall of 3%. Safety berms will be constructed in areas where required.

3.3.11 Stream Diversion

Lagoon Creek is an ephemeral creek that bisects the south eastern portion of the Manning Vale resource area, and therefore, is to be temporarily diverted to allow extraction of the coal beneath the creek’s channel. Failure to extract the coal from beneath Lagoon Creek would severely affect the Project’s viability by reducing overall production, compromising mining efficiency and elevating operational costs. The quantity of coal sterilised if Lagoon Creek is not mined is 8.95 Mt which equates to approximately $750 M in lost revenue. Importantly, this lost revenue does not take into account the significant additional costs associated with changing the current mine plan. Lagoon Creek and the proposed diversion route are shown in Figure 3-18.

The Mine is positioned high in the Lagoon Creek catchment. Therefore, the Creek possesses a relatively small upstream catchment area of approximately 300 ha and only flows after significant rainfall events. The majority of Lagoon Creek’s channel is poorly defined and difficult to ascertain in areas without detailed topographical survey information.

The ecological and physical status of Lagoon Creek, as part of the Oakey Creek sub-catchment, was classed as ‘poor’ to ‘very poor’ in all the key parameters surveyed by the then DNRW for the 2008 ‘State of the Rivers’ Report on the Upper Condamine River catchment. The Lagoon Creek system has suffered a long history of disturbance from agricultural activities, such as grazing, and as a result, riparian and aquatic vegetation, channel diversity and bank stability are highly impacted and exotic weed species invasions are common.

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NEW ACLAND STAGE 3COAL MINE EXPANSIONLagoon Creek Diversion

FIGURE 3-18

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Creek DiversionCurrent Creek LocationInitial Creek DiversionTemporary Creek DiversionFinal Creek Location

1

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NAC established gauging stations upstream and downstream of the Project area within Lagoon Creek in early 2007 to obtain specific hydrological data for diversion investigations. NAC will undertake a detailed monitoring program to ensure Lagoon Creek’s physical and biological environments are fully understood for future diversion planning purposes.

NAC’s proposed diversion concept for Lagoon Creek is to divert the creek around the mine workings within a series of temporary and permanent diversion channels and then progressively reconstruct the creek’s channel and riparian zone back along its original location as sections become available behind the active mine path. The initial diversion will be approximately 9 km long and will be constructed by a cut and fill process to create a trapezoidal drain sufficiently sized to manage a 1:1 000 year flow event. The initial diversion will need to be completed by 2017 (refer to label ‘1’ on Figure 3-18), when mining is planned to commence over the existing creek’s location. Due to the planned mining sequence, an intermediate diversion will be required in 2028 (refer to label ‘2’ on Figure 3-18) which will utilise part of the reconstructed creek and require the construction of another short diversion of approximately 1.5 km possessing the same hydraulic parameters as the trapezoidal drain. The complete reconstruction of Lagoon Creek through the rehabilitated spoil surface is expected to be finished by around 2032 (refer to label ‘3’ on Figure 3-18) and will be located in close proximity to its original location with a small permanent diversion to the south around a proposed mining void. Figure 3-18 describes the proposed Lagoon Creek diversion paths and sequences.

A small number of road crossings will need to be established over the reconstructed section of Lagoon Creek to facilitate the transport of the ROM coal to CHPP 3 from the Willeroo and Sabine mining areas later in the Project’s life. These creek crossings will be kept to an operational minimum and will be appropriately engineered to ensure environmental protection and continuity of stream flow.

NAC’s rehabilitation of Lagoon Creek will involve the re-establishment of suitable riparian and in-stream zones using local native species and will be designed to link with the Mine’s current ‘conservation area’ located along Lagoon Creek within the existing operational area of ML 50216. NAC’s long term goal is to ensure the 9 km section of Lagoon Creek diversion is superior to its current catchment status, particularly from an ecological perspective by the Project’s completion.

NAC will consult and seek advice from the North East Downs Landcare Group, Condamine Alliance and other relevant government agencies on a regular basis to ensure the rehabilitation plan for Lagoon Creek meets the expectations of these peak catchment and natural resource management bodies. NAC has commenced consultation with the DERM in relation to the Lagoon Creek diversion and is committed to continuing this process to ensure all regulatory requirements are satisfied.

Chapter 5 Surface Water Resources provides the outcomes of the environmental impact assessment process for NAC’s proposed diversion of Lagoon Creek.

3.3.12 Road Diversions and Closures Road Diversions

The current alignment of the Jondaryan-Muldu Road transverses the western portion of the Manning Vale resource area as defined in Figure 3-1.

Therefore, the construction of the Jondaryan-Muldu Road diversion is critical to allow NAC access to the western portion of the Manning Vale resource area and under the current mine plan. An engineering study


on the re-alignment has been completed and NAC has commenced discussions with the TRC in relation to construction requirements. The re-aligned section of Jondaryan-Muldu Road will follow existing road reserves and traverse property owned by APC. The Jondaryan-Muldu Road will remain a public road under TRC control.

It is understood that the TRC possess sufficient base materials for the construction of the proposed road diversion to support a high mass road for heavy vehicle transport. Preliminary works associated with the construction of the road re-alignment are expected to commence in early 2010.

The TRC has a long term contract with NAC for the maintenance and upgrade of the existing Jondaryan-Muldu Road alignment. NAC’s relationship with TRC for this type of ancillary works has been economically beneficial for the local area. NAC will continue to advance discussions with the regulatory agencies in relation to the Jondaryan-Muldu Road diversion. NAC will also consult with local landowners potentially impacted by the Jondaryan-Muldu Road diversion.

Road Closures

Table 3-10 defines the road closures required within MLA 50232. The majority of the road closures will be permanent. However, temporary road closures will be assigned to those roads that are to be re-established at the cessation of the Project. Nearly half of the proposed road closures are streets associated with the Acland Township, which is also planned for closure and removal.

NAC’s consultation program for the Project has captured the public’s main concerns surrounding the proposed road closures. Chapter 19 Community Consultation provides a comprehensive analysis of the key concerns raised throughout the EIS process. NAC will consult with the appropriate agencies to ensure the regulatory requirements for the road closures are completed to coincide with the grant of MLA 50232.

Table 3-10 Proposed Road Closures – MLA 50232 Road Closures within MLA 50232

Acland Brymaroo Road Hueys Road Acland Muldu Road Hauslers Road Acland Sabine Road Jondaryan Muldu Road Acland Silverleigh Road (commonly known as Acland Road) King Street Allen Street Mary Street Belle Vue Street Mclaughlins Road Bothams Road Osheas Road Campbells Road South Street Church Street Unnamed Roads Clark Street Willeroo Mine Road Conroys Road William Street Francis Street Woods Road George Street Cookes Road Greenwood School Road


3.4 Mine Infrastructure and Facilities

3.4.1 Overview

The associated mine infrastructure requirements for the Project includes the existing infrastructure located mainly on ML 50170, a new infrastructure area on MLA 50232 and the offsite infrastructure for coal transportation.

The existing infrastructure on ML 50170 comprises an administration area, workshop and washdown bay, fuel storage area, two raw water dams, two CHPPs, ROM stockpile pad, product stockpile pad, stacking and reclaiming facilities, access roads, a series of licensed water bores, a number of water management structures, a former TSF, (TSF 1) under rehabilitation, and a new in-pit TSF (TSF 2). The existing infrastructure on ML 50216 comprises a number of water management structures and access roads. The details of these facilities are provided in the EIS for the New Acland Coal Mine Stage 2 expansion (NHCA 2006).

The essential infrastructure required to facilitate mining on MLA 50232 will comprise:

a new CHPP 3;

a ROM stockpile and product stockpile pads including tacking and reclaiming facilities;

an Administration building, workshop and washdown bay area;

a Bulk Fuel Storage Facility;

water management structures including flood protection bunding and dirty water management, including:

– RWD 3; and

– TSF 3;

a Bulk Explosive Storage Facility;

a 8 km private haul road from the Mine to the JRLF, including supporting road infrastructure changes (i.e. upgrades, closures and realignments);

the diversion of the Jondaryan-Muldu Road;

an equipment lay down and assembly area; and

a series of internal access and haul roads.

The majority of the new infrastructure requirements will be located on MLA 50232 and are expected to be designed and constructed between 2010 and 2013.

Figure 3-1 shows a conceptual layout of the new infrastructure area in relation to the Project site.

An area of approximately 300 ha is required for construction and operation of the Project’s new infrastructure on MLA 50232. The proposed construction site is located on the Lagoon Creek flood plain and as a result, possesses a relatively flat topography. The proposed construction site is located on a grazing and dryland cropping area and as a consequence, is relatively devoid of trees. Therefore, vegetation clearance and earthworks requirements for construction will be relatively basic. The Project’s planning process has not identified any significant issues that require specialised attention in relation to the earthworks requirements.


Clay material and hard rock will need to be imported from other areas within the Project site for dam construction and possibly for foundation preparation. A 1:1 000 year flood bund will be constructed to protect the infrastructure area over the life of the Project for flood mitigation purposes.

The essential infrastructure required to transport product coal off site is the new private haul road which will connect the Mine to the JRLF. This infrastructure possesses a construction timeframe of approximately 18 months and must be functional by 2013 to facilitate the Project’s proposed timetable for increasing production. Regular consultation with the TRC and QR will be critical for successful completion of this aspect of the Project.

Construction of the associated infrastructure is proposed to be conducted between 6 am to 6 pm, Monday to Saturday with Sunday available for overtime on specialist tasks. Certain critical path activities such as large concrete pours or commissioning of plant and equipment may require 24 hr operation.

A maximum of 225 construction workers are expected on site at any one time during the construction phase of the Project and is likely to comprise 150 people working on fixed plant and another 75 people working on mobile plant. Certain construction tasks, such as heavy machinery assembly occur periodically and will cause fluctuations in the number of workers on site. Where possible, NAC will employ local contractors for general tasks. NAC will also need to employ specialist contractors on an as required basis.

3.4.2 Coal Handling and Preparation

The CHPP 3 will be located in a centralised area of the Project site on barren ground, adjacent to the southwest corner of the Manning Vale resource area. The CHPP 3 will be designed and constructed for processing ROM coal at a rate of up to 3 000 tonnes per hour via four 750 tonnes per hr processing modules. The CHPP 3 will require a water supply of 3 600 ML per annum to achieve its maximum production rate. This water supply will be sourced from the WWRF Pipeline. Appropriately sized ROM feed and product delivery systems will be designed and constructed commensurate with production requirements such as bins, crushers and conveyors.

The CHPP 3 will be capable of producing up to 10 Mtpa of product coal, but will only be utilised at a rate of 5 Mtpa until CHPPs 1 and 2 are decommissioned. This design approach provides NAC with the ability to centralise coal washing operations closer to the active mine pit areas later in the Project’s life when the northern Glen Roslyn resource is exhausted. This will reduce future ROM coal haulage distances and costs.

Figure 3-19 provides a conceptual process flow diagram of the CHPP 3. Figure 3-19 also provides a generalised pictorial representation of the coal washing process and how it relates to other aspects of the coal mining process. The approximate processing rates for the CHPP 3 are shown in Table 3-11.


ROM Hopper(700 t)

Surge Bin(1,000 t)

Reject Bin

(1,400 t)

CPP Module 1(750 tph)

Thickener(35 m diam.)

Product Stockpile(500 t Bin & 6 Stockpiles)

Figure 3-19 CHPP 3 – Conceptual Process Flow Diagram

Table 3-11 CHPP 3 – Processing Rates

CHPP Process Proposed Processing Rates

5 Mtpa 10 Mtpa ROM Feed Coal 1,800 tph 3,600 tph Washed Product Coal 850 tph 1,700 tph Coal Processing 1,500 tph 3,000 tph (4 x 750 tph) Washed Coal Production 850 tph 1,700 tph Reject Feed 660 tph 1,320 tph Raw Water Supply 1,800 ML per annum 3,600 ML per annum

As with CHPPs 1 and 2, NAC will employ a specialist contractor for the construction of the CHPP 3. The contractor will be responsible for the overall management of the CHPP 3 construction site.

Where possible, components of the CHPP will be semi-fabricated off site to a transportable size and reassembled on-site. Other CHPP components will be constructed on site such as the thickener tank. The bulk of the CHPP’s main structure is steelwork supported by a concrete foundation. The construction phase for the CHPP 3 is a major task and is expected duration is approximately 18 months from commencement.

Conveyor (2 x 850 tph)

Conveyor (3,600 tph)

Conveyor (2 x 660 tph)

Tailings StorageFacility

OverburdenDump

CHPP 3(10 Mtpa)

Improved DewateringTechniques




Thickener(35 m diam.)

Conveyors (4 x 750 tph)


Coal Washing Requirements

Table 3-12 identifies the existing and the planned production capacities through the CHPPs 1, 2 and 3 over the life of the Project at a combined production rate of 10 Mtpa.

The hours per year that the CHPPs 1, 2 and 3 operate are based on 349 days per year, 7 day roster at a 92% availability, reducing to 90% from 2013 calendar year onwards. The reduction in availability from 2013 is partly due to the age of the CHPPs 1 and 2 and a level of redundancy required for the higher production rates. The CHPP 3 will assume the full production capacity of 10 Mtpa later in the Project’s life.

Table 3-12 CHPPs 1, 2 and 3 Processing Rates at 10 Mtpa Date From Date To Production Rate

(Product) Production Rate (ROM)

Washplant Washplant Capacity

Hours/Yr

Apr 2008 July 2009 4.2 Mtpa 8.2 Mtpa CHPP 1 730 tph 7705 CHPP 2 330 tph

Aug 2009 Dec 2012 4.8 Mtpa 9.3 Mtpa CHPP 1 890 tph CHPP 2 530 tph

Jan 2013 Dec 2013 7.5 Mtpa 15.5 Mtpa CHPP 1 890 tph 7530 CHPP 2 530 tph CHPP 3 820 tph

Jan 2014 Dec 2042 10.0 Mtpa 20.2 Mtpa CHPP 1 890 ph CHPP 2 530 tph CHPP 3 1500 tph

(3000 tph*) Note: * = CHPP 3 will be capable of operating at full capacity and may do so later in the Project’s life.

3.4.3 Tailings Management Storage Requirements

The volume of tailings required to be stored over the life of the Project is detailed within Table 3-13. Currently, the tailings are produced at a rate of 15% of the feed. By 2013, NAC is proposing to utilise a tailings dewatering system which dries a portion of the normal tailings material to a thickened paste for combined dumping with the coarse rejects to cells within the overburden dumps. This disposal method would be via trucks rather than pumping as wet slurry. This process would reduce the CHPP 3’s water requirements and decrease the size of proposed the TSF. The CHPP 3 will be designed to accommodate for this process, while the CHPPs 1 and 2 will require retro fitting. NAC is conducting further investigations into thickened paste technologies to improve the efficiency of tailings disposal for the Project.

Table 3-13 Tailings Storage Requirements Period CHPP No. ROM Coal(Mt) Tailing Rate (%

of Feed) Tailings (Mt) Tailings (Mm3)

Before 2013 1&2 43.9 15.0 6.6 6.0 After 2013 1&2 259.3 7.0 18.2 16.5

3 308.4 7.0 21.6 19.6 Total 611.6 46.4 42.1


Tailings Management – CHPPs 1 & 2

The current tailings management system for CHPPs 1 and 2 involves the utilisation of an in-pit TSF, namely TSF 2. Until early 2008, an out-of-pit TSF, TSF 1, was used for tailings storage and comprised a traditional two stage tailings dam process. TSF 1 is located adjacent to the western boundary of the North Pit on ML 50170. Figure 3-20 outlines the location of the existing TSF 1. NAC chose to adopt in-pit tailings disposal in 2007 to reduce the surface area disturbance on site, minimise capital cost associated with out-of-pit TSF construction, decrease operational risk from possible containment failure and lower the amount of rehabilitation liability and cost.

NAC is planning to eventually adopt in-pit tailings disposal as the preferred method for tailings management for the Project in the future. The potential locations of future in-pit TSFs are shown in Figure 3-20. TSF 2 has been recently commissioned and is operating successfully.

Once the North Pit’s mining is completed, part of the void that remains will be utilised as an in-pit TSF. The remainder of this void space will also be utilised as a waste rock dump for the Centre Pit box-cut’s spoil. The final Centre Pit void, because of its proximity to the CHPPs 1 and 2, may also be utilised for in-pit tailings disposal towards the end of the Project’s life. This outcome will be dependent on the degree of backfilling required. Between the nominated in-pit TSFs and the potential availability of Centre Pit void space, ample storage volume is available to safely contain the estimated 22.5 Mm3 of tailings produced by the CHPPs 1 and 2 over the Project’s life.

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LEGEND# Locality

RoadProposed Tailings SiteProposed Stage 3 InfrastructureProposed Stage 3 Infrastructure AreaExisting Infrastructure Area

Glen Roslyn Stage 1 & 2 Pit BoundaryStage 3 Pit BoundaryCadastreExisting Mining LeaseStage 3 Mining Lease ApplicationStage 3 MDL 1:25,000Scale on A4

Future TSFs(In-pit)


Tailings Management – CHPP 3

The location of the CHPP 3 will initially be located approximately 6 km away from existing voids and in-pit TSFs. Therefore, the tailings management options are either to pump the tailings a significant distance to an existing in-pit TSF or to construct an out-of-pit TSF adjacent to the location of CHPP 3. Economic analysis of the two options identified the option to create an out-of-pit TSF adjacent to CHPP 3 as the most cost effective solution due to the high pumping costs of the alternative.

As a consequence, tailings will be placed within an out-of-pit TSF, namely TSF 3, adjacent to the CHPP 3. TSF 3 will function until 2020 when in-pit tailings storage will commence. TSF 3’s design criteria are still under investigation, but as a minimum, the facility will be a certified engineered structure and regulated as a ‘hazardous dam’ under the EP Act. It is envisaged that TSF 3 will require an area of 96 ha and based on a two stages of construction, will possess an out-of-pit storage volume of approximately 5 000 ML.

An initial small in-pit TSF will be constructed within the adjacent Manning Vale mine pit to create sufficient tailings storage volume prior to the void becoming available with the cessation of mining in this area in 2024. The Manning Vale void will then be utilised for the sole purpose of tailings storage and will possess adequate capacity to accommodate tailings from the CHPP 3 until the end of the Project.

3.4.4 Coarse Reject Management

Coarse rejects are currently conveyed from the CHPPs 1 and 2 to a reject bin. The coarse rejects are then hauled by trucks to the closest operational overburden dump for disposal via encapsulation. The current coarse reject disposal practice will be identical for the CHPP 3 operation. As discussed, NAC’s goal is the co-disposal of the coarse rejects and thickened tailings paste transported by trucks to the overburden dumps. Coarse rejects are normally produced at a rate of 40 to 44% of the ROM coal feed.

3.4.5 ROM and Product Stockpile Pads

The CHPP 3’s ROM and product coal stockpile pads are both expected to possess a capacity of 600 000 t. This storage capacity equates to several weeks supply for continuity purposes.

The CHPP 3’s product coal stockpile pad will be the main off site distribution point for the transport of the Project’s product coal by road and rail, and as a result, will also receive product coal from the CHPPs 1 and 2 via trucks using an internal haul road. The majority of the blending and sizing of coal products for customer specifications will occur on the CHPP 3’s product coal stockpile pad. This proposal will require the support infrastructure to be located in this area.

3.4.6 Coal Transportation

The operational phase of the Project will mainly involve the periodic on site transport of general supplies such as workshop oil and fuel. The occasional transport of new and replacement mining equipment may also be required from time to time.

Transport off site during the operational phase of the Project will mainly involve the continued haulage of product coal by rail and road and the removal of waste materials by licensed waste contractors. This procedure will be in accordance with an updated Waste Management Plan (WMP) for the Project.


Coal Transportation Requirements

NAC’s planned coal production rates compared to its existing operations of 4.2 Mtpa are presented in Table 3-14. The main efficiencies for the Project’s planned scenarios for coal transport off site are:

the significant increase in the use of rail transport;

use of a new private haul road to connect the Project to the Western Railway line; and

the continued use of the current JRLF.

Table 3-14 Planned Production Destinations Transport Method

Destination 4.2 Mtpa 4.8 Mtpa 7.5 Mtpa 10.0 Mtpa

Rail Export QBH, Brisbane 3.00 3.80 5.50 7.50 Rail Domestic Swanbank, Ipswich 0.20 0.20 0.30 0.30

Road Domestic Swanbank, Ipswich 0.75 0.75 0.75 0.75 Domestic, Southeast Queensland 0.25 0.25 0.25 0.25 Tarong Power Station, Nanango 0.00 0.00 0.10 0.10

Road or Conveyor Local Proposed Coal to Liquids Project,

adjacent the current Project Site 0.00 0.00 0.60 1.10

Rail

At full production 7.8 Mtpa will be transported to Brisbane via the Western Railway line Queensland Bulk Handling (QBH) at the Port of Brisbane will receive up to 7.5 Mtpa for export overseas and Swanbank Power Station located at Ipswich, will receive up to 0.3 Mtpa for power generation. On average at the proposed rail tonnage, up to nine trains may travel to Brisbane each day. This calculation is based on a ‘close-coupled’ train capacity of 2 500 t.

Port

QBH is a subsidiary of NHCL and operates a bulk handling facility at the Port of Brisbane. QBH’s bulk handling facility is currently undergoing an extensive upgrade and will possess a maximum capacity of 10 Mtpa by late 2010. This upgrade will be more than adequate to manage NAC’s future annual export requirements and proposed timeframe for the Project.

Road

A total of up to 1 Mtpa of coal will be transported by road from the Project site to domestic customers in Southeast Queensland, which includes 0.75 Mtpa to the Swanbank Power Station. A nominal amount of 100 000 t may also be transported by road to the Tarong Power Station in Nanango. On average at the proposed road tonnage, up to three coal trucks per hour may depart the Project site, comprising two coal trucks travelling to Swanbank Power Station and one coal truck travelling to other domestic customers in Southeast Queensland. This calculation is based on a high mass ‘B-double’ truck capacity of 42 t.

Currently, NAC pays a levy based on tonnage to the DTMR (previously DMR) for coal haulage on the Warrego Highway and other Queensland main roads used for coal haulage. It is envisaged that this arrangement will continue in the future.


3.4.7 Coal Transportation Corridor

NAC is planning to construct a 8 km private haul road from NAC’s JRLF near Jondaryan to the Project site to improve the efficiency and safety of coal transport off site as the Project’s coal delivery rates rise beyond those existing for a production rate of 4.8 Mtpa. Figure 3-21 depicts the proposed private haul road corridor.

The private haul road for a large portion of its route is planned to run within the existing Jondaryan-Muldu Road reserve, and will require the following actions that may affect the public during the construction and operational phases:

• closure of a 1 km portion of the existing Jondaryan-Muldu Road from the JRLF to the first bend;

• construction of a new 1 km section of public road linking the existing Jondaryan-Muldu Road directly with Jondaryan straight south from the first bend;

• closure of the portion of Childs Road that joins with the existing Jondaryan-Muldu Road;

• upgrade of a 4.5 km section of the Jondaryan-Sabine Road to facilitate the closure of the portion of Childs Road;

• parallel construction of new private haul road and public road alignments within the existing Jondaryan-Muldu Road reserve (six km), which will include physical separation of the private haul road and public roads; and

• development of a suitable traffic management strategy for where the Jondaryan-Sabine Road will cross the private haul road adjacent the entrance of the JRLF.

The feasibility of the proposed route is currently under investigation and has been selected to minimise the impact on surrounding properties and to reduce the potential for interaction between the public and the Project’s coal haulage to the JRLF. The TRC has been engaged in relation to this matter as the controlling authority for the Jondaryan-Muldu Road.

The private haul road will enter MLA 50232 towards the southwest corner near the new infrastructure area and comprise a sealed bitumen structure with appropriate safety features. As required, noise attenuation structures will be constructed.

Coal haulage will typically involve B-quadruple trucks with a haulage capacity of more than 200 t per truck. At maximum production, NAC is planning to haul 7.8 Mtpa of product coal to the JRLF at an average rate of 8.8 trucks movements per hour per day, which includes return journeys. Actual truck journeys will be influenced by QR’s train loading requirements and the stockpile inventory at the JRLF.

The construction and operation of the private haul road will involve continued regular consultation with the TRC to ensure compliance with the appropriate standards and guidelines. NAC is also seeking legal advice on whether a mining lease is required under the MR Act over the private haul road. Construction of the private haul road will take approximately 18 months and is planned to be completed during 2012.

3.4.8 Jondaryan Rail Loading Facility

As part of the Project, NAC will continue to operate the JRLF to load QR’s trains for the supply of coal to domestic users in Southeast Queensland and to the Port of Brisbane for export to overseas customers. The


use of front end loaders will be maintained for actual train loading activities. NAC will continue to monitor logistical arrangements at the JRLF as the Project’s production increases above 4.8 Mtpa. If required, NAC will install a rail loading bin and feed conveyor in the future to improve loading efficiency. Dust suppression will be upgraded commensurately to suit the expanding operations and will be aided by a dedicated water supply from the Project.

NAC is not intending to increase the coal stockpile capacity at the JRLF. Using the dedicated transport corridor (private haul road), the JRFL will be used as a ‘fast loading’ facility for QR’s trains. NAC’s main coal stockpiles will be maintained at the Project site and proportionately at QBH’s port facilities at Brisbane.

NAC will continue to evaluate its coal supply chain, and as required, will seek improvements in the system to ensure efficiency and competitiveness.

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3.4.9 Transport of Plant and Equipment

The construction phase of the Project will mainly involve the on site transport of infrastructure components, building materials, oil, fuel and mining equipment. As discussed, the Project’s construction phase will take approximately 18 months during which there will be fluctuations in actual transport requirements. The current mining operations will continue during the Project’s construction phase.

Construction equipment will be transported by road to the Project site on standard or over dimensional loads. Large items of mining equipment that cannot be divided into smaller components and the larger CHPP equipment requiring construction off site will be transported on State roads under the appropriate permit and where necessary, accompanied by safety escorts.

The majority of the plant and equipment transported to the Project site are likely to originate from Brisbane. Other items of plant and equipment may be purchased in a ‘used’ state, and therefore, the point of origin may be variable. Deliveries during construction will be limited to items such as mining equipment, building supplies, fuel, concrete, steel, and items for the CHPP 3, workshops, administration buildings and sundry plant.

In general, access to the Project site will be via the Jondaryan-Muldu Road from the Warrego Highway. Suitably sized equipment lay down and assembly area will be located within the new infrastructure area.

3.4.10 Equipment and Material Volumes

Most equipment involved with general construction will be sourced from external contractors and is likely to involve various types of earthmoving equipment, cranes, a water truck, and an on site concrete batching plant.

The majority of the raw materials required for construction will be sourced off site preferably from local suppliers. Certain specialist items may need to be imported from elsewhere in Queensland, interstate or overseas. Where possible, NAC will source construction material (such as basalt) from the Project site.

In general, construction material will be supplied to the Project site on an as required basis, and as a consequence, there will be minimal long term storage requirements during the construction phase. All dispersible material stored on the Project site will possess suitable storm water management controls to minimise the potential of adverse downstream impacts.

The indicative types and quantities of construction materials required for the Project are shown in Table 3-15.

These materials will be mainly associated with the construction of new infrastructure, in particular the CHPP 3.

Table 3-15 Construction Phase Material Types and Quantities Construction Material Estimated Quantity (tonnes)

Steel 6 000 Concrete 7 500 Total 13 500


Fuel used during the construction phase will be stored in bunded facilities and will comply with Australian Standard AS 1940-2004: The storage and handling of flammable and combustible liquids. Contractors will be responsible for the servicing of their equipment and the appropriate management of their waste products. Minor maintenance will be conducted on site at the Mine’s workshop.

Licensed waste contractors will be utilised for general and regulated waste removal. NAC will ensure all construction sites are left in an appropriate manner.

3.4.11 Administration and Workshop Facilities

The majority of NAC’s future staff are planned to be centralised to the north within the current administration area on ML 50170. However, a small satellite office will be constructed on MLA 50232 primarily for workshop and CHPP related personnel.

The new Administration building will be designed to comply with local government building codes and will possess various office spaces for administrative and technical personnel, a crib room, washing and ablution amenities and a first aid room. The new Administration building will be plumbed to the Mine’s potable water supply and sewerage systems, connected to the site’s reticulated power supply, employ a fire management system and possess appropriate storm water management controls.

Due to the increased mobile fleet, an additional workshop will be constructed on MLA 50232. The new workshop will be sized accordingly to accommodate the large machinery planned for the 10 Mtpa production case. The new workshop will be designed to comply with local government building codes and the applicable Australian Standards and will be similar in design to the existing operation’s workshop.

The new workshop will contain a spare parts store, lubricant storage area, drip and spill management devices, appropriate storm water management including an oil-water separator and a fire management system. A vehicle wash down bay will be located within the workshop area and will possess an oil-water separator and a sediment capture device.

3.5 Water Management

3.5.1 Water Supply Agreement

During mid 2009, NAC is expecting to commission a new water pipeline from the TRC’s WWRF to the Mine. This project was subject to a separate approvals process under the SDPWO Act for which an EIS was approved by the Coordinator General during late 2008. A 43 year Agreement has been established between the TRC and NAC to supply the Project with Class A+ recycled water up to a maximum of 5 500 ML per annum.

NAC will initially receive a supply of 3 000 ML per annum and as the Project progresses and water demand increases, will exercise its options to increase supply based on the Project’s water recycling and other proposed water saving efficiency outcomes.

This Agreement is beneficial for both parties as it provides the TRC with an income stream for a traditional waste product and allows NAC to ‘drought proof’ and expand the Mine in a sustainable manner. This Agreement removes the current reliance on localised groundwater resources, which have been under extreme pressure from years of over allocation.


3.5.2 Mine Water Use

The Mine’s current raw water demand and the Project’s future raw water demand at a production rate of 10 Mtpa are outlined in Table 3-16. NAC will continue to recycle water from its TSF’s to supplement the CHPP’s water supplies and will implement improvements in tailings processing to reduce water use by the CHPPs such as the potential adoption of paste thickening technologies to the mine water circuit as mentioned in Section 3.4.3.

The Project’s water requirements for dust suppression will be periodically supplemented by rainfall runoff captured in water management structures, such as the sediment and environmental dams and from operational mine pit areas.

Table 3-16 Current Mine and Future Project Raw Water Demands Activity requiring a permanent water supply Current Usage

(approx) Future Usage (approx)

Operation of the CHPP (standard: 400 litres raw water make up per tonne of product including wash down and fire)

<1 700 ML/year <4 000 ML/year

Wash down of machinery Fire suppression Dust suppression (standard: 3 x 70kL tankers x15 trips/day x 320 days)

<500 ML/year <1 000 ML/year

Shower and ablution use 15 ML/year 50 ML/year TOTAL USAGE <2 215 ML/year <5 050 ML/year

3.5.3 Water Management Structures Existing Water Management Structures

NAC currently operates three environmental dams, two sediment control dams and two raw water dams. The environmental dams and sediment control dams are used to contain environmental flows and are used to capture sediment laden runoff from exposed areas and the effluent discharge from the existing Sewage Treatment Plant (STP). NAC also operates two TSFs. TSF 1 has been in operation since the inception of mining activities and was used to store tailings reject material produced from the CHPP. TSF 2 has recently been constructed to provide additional capacity for the Mine’s operations.

Table 3-17 provides an outline of the current operational dams on MLs 50170 and 50216.

Table 3-17 Operational Dams on MLs 50170 and 50216 Structure Size Location

Environmental Dam 1 126 ML Northwest mining lease boundary area (ML50170).

Environmental Dam 2 232 ML Downstream of the tailings dam, southwest mining lease boundary area (ML50170).

Environmental Dam 3 45 ML Southern mining lease boundary (ML50216)

Sediment Dam 1 97 ML (including 16 ML of sediment)

Near the product coal haul road exit, western mining lease boundary area (ML50170).

Sediment Dam 2 62 ML Near the South Pit’s out-of-pit dump (ML50216)


Structure Size Location

Raw Water Dam 1 117 ML North of the main administration area, adjacent the main access to the Mine (ML50170).

Raw Water Dam 2 175 ML Immediately east of Raw Water Dam 1 (ML50170)

Tailings Dam (Out-of-pit) TSF 1 – Stage 1 & 2

2 550 ML (of tailings) Western mining lease boundary area (south of the ROM stockpile area) (ML50170). – Stage 1 is under rehabilitation.

Tailings Dam (In-pit) TSF 2

2 800 ML (of tailings) Within the North Pit (ML50170)

Lagoon Creek Flood Bund Under design Between Lagoon Creek and the South Pit area (ML50216).

Future Water Management Structures

RWD 3 is expected to possess a capacity of 150 to 200 ML and will be gravity fed supplied water from RWD 1 via a polypropylene pipeline. Currently, RWD 1 supplies the CHPPs 1 and 2 and is artificially recharged with groundwater from licensed water bores tapping the Helidon and Marburg Sandstone aquifers of the GAB. As discussed, this water source will be replaced with recycled water from the TRC’s WWRF during mid 2009. RWD 3 will be the dedicated water supply dam for the CHPP 3. The RWD 3 will be a certified engineered dam structure.

As with the Mine, NAC will divert clean water away from disturbed areas using bunds and drains capture dirty runoff from disturbed areas within sediment traps / dams, and where possible, control discharges off site using environmental dams. NAC may utilise existing farm dams, and as required, design and construct diversion drains to ensure efficient operation of the Project’s overall water management system. Specialised water management systems will be implemented in all areas storing significant quantities of hydrocarbons and chemicals to minimise the potential for downstream impacts.

A water management system will be established for the new infrastructure area on MLA 50232 to prevent impacts to the downstream environment and is expected to involve clean water diversion structures, dirty water drains, oily water management systems, sediment traps and a sediment or environmental dam.

A water management schematic for the Project is provided in Figure 3-22. NAC will update its current Water Management Plan to include management of the new mining activities and infrastructure area on MLA 50232. This document will be implemented as part of the Project’s future Plan of Operations.

The stockpile pad areas will be constructed by a contractor and are expected to possess a compacted clay base to minimise infiltration and be armoured with a suitable material to maximise their longevity. Surface water runoff from these areas will be directed to a sediment dam / trap for treatment before release off site under discharge criteria outlined in the Project’s EA.

In the design phase, the sediment dam will be over sized to reduce the risk of discharge and increase the residence time for sediment treatment. In addition, water management practices, such as the preferential use of water captured in the sediment dam, will be put in place to further minimise the risk of off site


discharge. NAC will develop other strategies to ensure all discharges are compliant with the discharge criteria outlined in the Project’s EA.

New Acland Coal Mine – Water Management Schematic

Figure 3-22 Project Water Management Schematic

As a minimum, the surface water management philosophy for the Project will involve the:

diversion of clean water away from disturbed areas;

captured and treatment of dirty water prior to release;

protection of infrastructure and mining areas from flooding using flood bunding;

Wetalla Pipeline Raw Water DamsCoal Handling& Preparation

Plants

Tailings StorageFacilities

DeepGroundwater

Bores

(Emergency use only)

(Water recycling)

Product Coal

Pit Dewatering DustSuppression

Infrastructure Areas Sediment Dams Environmental

Dams

Disturbed Areas

Off SiteDischarges

(Out-of-pit storages only)

On SiteWater Use

Potable WaterTreatment

ShallowGroundwater

Bores

Undisturbed AreasRainfall

SewerageTreatment

Plants Clean Water Flow Path

Dirty Water Flow Path

Evaporation Loss

(Coal moisture and process water losses)

LEGEND:

Potential Specialised Water Treatment Flow Path (Hydrocarbons)

Infiltration


design and construction of all water management structures using practical hydraulic parameters based on an appropriate risk based rainfall event, catchment size, slopes, discharge design and soil types;

preferential use of water stored in environmental dams as a supplemental water source for coal washing and other activities to minimise the likelihood of offsite water discharges;

adequate treatment of dirty water that may be potentially discharged off site to ensure it complies with the Mine’s water discharge limits;

beneficial recycling of dirty water for activities, such as dust suppression;

recycling of water from the TSFs to reduce water consumption for coal washing purposes;

temporary or permanent bunding of all significant quantities of hydrocarbon and chemical products stored on site;

use of spill capture and retention devices for refuelling and similar areas;

treatment of oily water areas using an oil-water separator;

minimisation of disturbance to an operational minimum for safe operation;

revegetation of disturbed areas no longer required for operational use to promote progressive rehabilitation; and

sealing of high use areas to reduce degradation.

Chapter 5 Surface Water Resources provides detail on surface water management for the Project.

3.5.4 Groundwater Supply

As discussed in Section 3.5.1, the use of the treated water from the TRC WWRF for mining activities will discontinue NAC’s current reliance on the localised groundwater resources.

However, NAC will continue to maintain the existing licensed Helidon and Marburg Sandstone bores as an emergency backup water source in the event of a failure with the WWRF pipeline. These bores will be run periodically for maintenance purposes. NAC’s will maintain its two basalt water bores as a water source for the Potable Water Treatment Plant (PWTP).

3.5.5 Flood Design Criteria

Both the RWD 3 and TSF 3 will be designed, inspected during construction and certified at completion by a Registered Professional Engineer. As a minimum, NAC will be required to demonstrate that TSF 3 complies with the EPA’s Code of Environmental Compliance for Environmental Authorities for High Hazard Dams containing Hazardous Waste.

Construction of the RWD 3 and TSF 3 will be conducted by a qualified contractor and will require strict supervision to ensure the engineering design properties (structural and hydraulic) for the dam are achieved prior to commissioning. Sufficient clay material possessing suitable geotechnical properties for construction of the dam walls and basaltic material for armouring of spillways are available within the Project site. Some minor quantities of other construction materials may need to be sourced off site. NAC has previously managed the successful construction and operation of engineered structures for the current operations such as TSF 1 for Stages 1 & 2.


A flood bund will be constructed to protect the new infrastructure area on MLA 50232 from Lagoon Creek flood events and will be designed and constructed to manage a 1:1 000 year ARI rainfall event. The flood bund will be a fully engineered structure and will be constructed using compacted clay lifts and top soiled and grass covered to minimise the potential for erosion. All water management structures associated with the new infrastructure area will be designed and constructed to manage a 1:10 year ARI rainfall event and will possess appropriate engineering design criteria and/or comply with the appropriate Australian Standards to ensure environmental protection, regulatory compliance and efficient operation.

3.5.6 Potable Water Treatment

The current PWTP will continue to service the existing operations at a delivery rate of 16 / 26 kL (average/maximum daily volume). The PWTP is supplied water from two licensed water bore tapping into basalt aquifers under a 200 ML per annum licensed allocation.

NAC will undertake a feasibility study in the near future to determine the best potable water supply option for the Project. Preliminary assessments suggest that it is likely to involve the upgrade or duplication of the existing PWTP and reticulation to the new infrastructure area on MLA 50232. The existing water supply bores will be adequate for the proposed PWTP upgrade.

Potable water will continue to be regularly monitored to test the water quality. Potable water production will continue to comply with the Australian Drinking Water Guidelines as published by the National Health and Medical Research Council and the Agriculture and Resource Management Council of Australia and New Zealand (1996). The Project’s potable water will be used for human use, including drinking, hygiene and sanitation.

3.6 Associated Infrastructure Requirements

3.6.1 Sewerage Treatment

The existing package STP 1 possesses a capacity for 130 equivalent persons and is planned to remain in operation for the Mine. Effluent from STP 1 drains to the existing on site sediment dam, SD 1. NAC’s current EA allows for the use of water from SD 1 for dust suppression purposes. To date, this practice has not been a common occurrence due to the minimal discharge from STP 1 and the normally low water levels of SD 1.

NAC will require construction and operation of a new STP, namely STP 2 for the Project within the infrastructure area on MLA 50232. The capacity of STP 2 is expected to be 150 to 200 equivalent persons and will discharge to SD 3. Any reuse or disposal of treated sewage effluent will be governed by the Project’s EA to ensure protection of the health and wellbeing of people and the environment on and off the Project site.

3.6.2 Power Supply

The energy requirements for the Project comprise two main options:

relocating and rebuilding the existing 33 kV power line from Oakey; or

establishing a new 33 kV power line to the Project site from a location off the main line closer to Jondaryan.


Both these power supply options represent a dedicated line to the Project site. Preliminary assessments indicate that the relocation and rebuilding of the existing 33 kV power line may be the most economically attractive option. Oakey has recently received a power upgrade and now possesses a 110 kV supply line, which will facilitate the Project’s upgraded power requirements.

NAC is in discussions with Ergon Energy to assess the Project’s power requirements and NAC’s future role as a ‘high voltage’ customer. Importantly, NAC must relocate and rebuild the current domestic 11 kV power line which supplies Acland Township and the surrounding areas to ensure continuity of supply for the remaining domestic and agricultural users. The 11 kV power line is dual feed ring main.

The Mine’s current power requirement is 5 MW per annum. This power need is expected to increase up to 25 MW per annum at full production. Whilst in operation, the CHPPs 1 and 2 will be the Project’s main power consumers until the CHPP 3 is fully integrated into the coal production process.

3.6.3 Telecommunications

Initially, the Project will continue to use microwave links for external and internal telecommunications. The use of a private fibre optic communication link between the Project’s new administration areas will be investigated in the near future, and if considered viable, would be constructed along and at the same time as the Jondaryan-Muldu road diversion. Due to the progressive and mobile nature of the mining operations, microwave communication will continue to be used internally for mine pit communications.

The Project will require relocation of a Telstra exchange located along the Acland-Silverleigh Road. NAC will provide assistance to provide a site closer to the Oakey-Cooyar Road to help facilitate the relocation process. In addition, some degree of upgrade may be required to Telstra’s local off site telecommunications network to handle the Project’s additional communications traffic.

The coverage of this exchange and any projected outages as a result of the relocation strategy will be closely monitored by NAC to minimise the Project’s impacts to Telstra’s telecommunication service within the region. NAC will consult with Telstra in relation to these matters to determine a suitable strategy to prevent and minimise any disruptions.

3.6.4 Fuel and Lubricant Storage

NAC will use self-bunded fuel tanks to store fuel and lubricants on the Project site. This storage arrangement is used successfully by the Mine and allows a high degree of operational flexibility in terms of location, which is important for a large project site with multiple and dynamic operational areas. As a result, fuel storage tanks will be positioned in semi-permanent locations within the Project site to suit the various operational areas and will be moved periodically to suit the progressive mine pit locations. As is currently practised, lubricants and waste oil will be appropriately stored in close proximity to the workshop facilities.

Table 3-18 summarises the increases in fuel and lubricant storage requirements for the Project’s mining operations. A total capacity of approximately 27 000 L is envisaged for the Project’s waste oil storage at a 10 Mtpa production rate.

Currently, lubricants for the CHPPs 1 and 2 are stored in 200 L or smaller drums. A total storage of 10 000 L (10 x 1 000 L pods) is expected for the Project, which will be shared between the current and the new CHPP area.


NAC will continue to investigate other appropriate fuel and oil storage options for the Project. NAC will continue to use licensed waste contractors for waste oil recycling activities.

Table 3-18 Project Fuel and Lubricant Storage Diesel

(L) Grease (kg)

Coolant (L)

Lubricants

Delo 400 Engine Oil (L)

TF414 Torque Fluid Hydraulic Oil (L)

TF434 Torque Fluid Transmission Oil (L)

TF464 Torque Fluid Gear Oil (L)

Current 556 000 3 600 10 000 22 140 13 260 13 620 13 620 Project Requirements at 10 Mtpa

1 600 000 7 200 20 000 45 000 27 000 27 000 27 000

3.6.5 Fire Protection System

The fire protection system for the current operations comprises:

A fire water and dust suppression pipeline servicing the CHPP and materials handling facilities from the raw water dam;

A fire water and dust suppression pipeline servicing the industrial and administration areas from the raw water dam;

Internal and external fire hydrants appropriately spaced around the buildings and the CHPP constructed and operated according to relevant Standards, Statutory and Local Council requirements;

Portable fire extinguishers consisting of dry chemical powder, carbon dioxide and wet chemical types installed in designated areas of the site as per relevant Standards, Statutory and Local Council requirements;

Sub-fire indicator panels with automatic detection and alarm system for fault detection in the switch rooms;

A gas discharge in the CHPP motor control centre; and

Mobile mining equipment fitted with automatic fire suppression systems.

The current fire protection system will be duplicated for the Project’s new infrastructure area.

3.7 Workforce and Accommodation

3.7.1 Construction Phase

The Project at peak construction on site is expecting up to 225 construction workers at any one time. Apart from periodic peaks for major tasks, the construction workforces will fluctuate over the proposed 18 month construction phase. Construction tasks will require skilled and unskilled labour. NAC’s intention is to utilise local employment options where possible, but will also require employment from outside the region for certain specialised construction jobs.


No construction camps will be located on site during the construction phase of the Project. Generally, construction workers will be expected to source their own accommodation. NAC may provide limited accommodation for specialist contractors during the construction phase using properties it has acquired in the Acland district.

Mining and construction personnel will travel to and from the Project site based on their specific working arrangements. Importantly, the arrival and departure times for mine and construction workers will be staggered by at least half an hour to minimise traffic and other interactions.

Transport of personnel to and from the Project site will be undertaken by private vehicles, nominally from the nearby towns of Oakey and Jondaryan and Toowoomba City.

3.7.2 Operational Phase

The Project at a production rate of 10 Mtpa will require up to 444 people. The Mine currently employs approximately 275 people. Therefore, an additional 169 people will need to be employed before the 10 Mtpa production rate can be achieved in 2015. Towards the end of the Project’s life, workforce numbers will rise to approximately 530 people to allow the planned production rate to be maintained while overburden removal requirements increase.

The new employees will either be sourced locally or further abroad depending on the position’s skill requirements and whether job related knowledge and skills can be gained through internal training. The use of local people for employment is not expected to put an additional burden on the region’s accommodation resources. The Project’s staged ramp up in production may also help reduce the demand curve for additional accommodation.

New people moving to the region for employment by the Project possess the option of residing in several regional centres, such as Toowoomba, Oakey and Jondaryan. Currently, approximately 48% of the existing workforce permanently lives in Toowoomba. Therefore, it is expected that a majority of new employees will follow this trend. As a result, approximately 84 additional people are likely to take up accommodation in Toowoomba. The remaining new employees seeking permanent accommodation will probably take up accommodation in Jondaryan, Oakey or the surrounding district. Currently, 31% of the workforce permanently resides within Jondaryan, Oakey and the surrounding district. This trend would represent approximately 54 additional people seeking permanent accommodation within Jondaryan, Oakey or the surrounding district. The remaining 21% of the workforce reside temporarily with the TRC area during the working week and return to their permanent residence on weekends.

The greater TRC area’s growing real estate market and service bases are expected to comfortably cover this demand, particularly as it will be spread across several years.

The personnel requirements for the life of the Project have been identified on an annual basis at the 10 Mtpa production case and are outlined in Table 3-19. The expanded workforce will comprise approximately 47 management and administration staff and 397 mining personnel. NAC will source the additional workforce of 169 people from local and other external areas depending on the specific skills required, the status of the labour market at the time, the trainability of the advertised position and the proposed timetable of employment required to meet the scheduled ramp up in production to 10 Mtpa.


Table 3-19 Project Workforce Discipline Role Staff Number

Management General Manager 1 General Managers Assistant 1

Safety Safety Manager 1 Safety Training Coordinators 2 Safety Assistants 2 Trainer & Assessors 2

Wash plant Operations CHPP Manager 1 CHPP Superintendents 2

Mining Operations Mining Manager 1 Superintendents 2 Maintenance Supervisors 8 Pit Supervisors 12 Plant Tradesman 24 Pit Operators 274 Pit Tradesman 79

Maintenance Maintenance Manager 1 Maintenance Superintendents 2 Maintenance Planners 2 EEM 1

Technical Services Technical Services Manager 1 Senior Mining Engineer 1 Mining Engineers 4 Surveyors 3 Environmental Specialists 2 Geologist – Coal Quality 4

Business Management Business Manager 1 Business Support Officers 2 Receptionist 1 Human Resources 1 Purchasing Officers 3 IT Compliance 1 Fleet Dispatch Controllers 2

TOTAL LABOUR REQUIREMENT 444

3.8 Decommissioning

3.8.1 Mine and Associated Infrastructure

NAC in consultation with APC and other applicable parties will review all infrastructure assets towards the close of the Project and assess which structures will be retained for APC’s agribusiness activities, sold for


recycling or relocation or disposed of as general or regulated waste. Recycling and re-use of the Project’s redundant infrastructure using local contractors will be promoted by NAC.

Transport requirements for the decommissioning phase of the Project will be minor compared to the other Project phases and will mainly involve rehabilitation and infrastructure removal based tasks. Transport off site during the decommissioning phase of the Project will involve the removal of infrastructure for re-sale or recycling and the removal of waste material by a licensed waste contractor. This procedure will be in accordance with an updated WMP.

Personnel working on the rehabilitation and decommissioning program will travel to and from the Project site based on their working arrangements, which are expected to be mainly day time hours only. The maximum amount of people travelling to or from the Project site will be minimal compared to the other Project phases. It is expected that the number of people travelling to or from the site will be less than 50.

NAC in consultation with APC will determine which former mine roads are to be retained for ongoing access purposes. All roads not retained will be rehabilitated to the required standard outlined in the final rehabilitation and decommissioning plans. NAC will re-establish the former public roads temporarily closed for the Project’s operation.

NAC in consultation with APC will determine which of the Project’s water management structures will be retained as water sources for future agricultural activities. NAC will ensure that all water management structures agreed for retention are operating in an acceptable manner and are maintained in a good condition. NAC envisages that a majority of the Project’s active water management structures will be retained for future use.

3.8.2 Rehabilitated Land

Rehabilitated land will be monitored on a bi-annual basis until monitoring data confirms successful achievement of the agreed rehabilitation performance criteria. NAC will continue this monitoring regime until the Project’s total disturbed area is fully rehabilitated and surrender of the Project’s MLs can be completed. Over the Project’s life, NAC may also seek progressive ‘sign off’ on successfully rehabilitated parcels of land from the DERM. NAC’s rehabilitation activities will be designed to ensure the final agreed post mining land use and surrender of the Project’s MLs are achieved.

NAC will transfer the overall management of the former Project site to APC.

During the decommissioning phase, NAC will ensure all ‘notifiable activities’ conducted within the Project site will be investigated for in-situ soil contamination and as required under the EP Act, will either:

be released from the DERM’s ‘Environmental Management Register (EMR)’;

be remediated, confirmed by follow-up investigation(s), and released from the DERM’s ‘EMR’; or

remain on the DERM’s ‘EMR’ with an agreed ‘site management plan’.

The decommissioning and final rehabilitation of the Project is discussed in Chapter 4 Land Resources.


3.8.3 Lagoon Creek Diversion

The rehabilitated section of Lagoon Creek will be monitored on a bi-annual basis until monitoring data confirms successful achievement of the agreed rehabilitation performance criteria. NAC will continue this monitoring regime until the Project’s total disturbed area is fully rehabilitated and surrender of the Project’s MLs can be completed.

NAC will consult regularly with the DERM, Condamine Alliance and the Northeastern Downs Landcare group during Lagoon Creek’s rehabilitation phase to ensure regulatory and public expectations are identified and achieved.

3.8.4 Environmental Offsets

NAC will ensure that the agreed offsets for the Project have suitable arrangements established for their permanent management in perpetuity.

3.9 Project Alternatives

3.9.1 No Project

Without the Project proceeding, NAC would be unable to maintain and improve its market share and profitability. The government would compromise its potential revenue from freight charges and related taxes. Increased employment opportunities would be lost along with potential income for the existing workforce and support contractors. Without the Project, an increase in demand for secondary support industries and service suppliers would not be realised.

Chapter 2 Project Justification and Sustainability provides additional information supporting the need for the Project.

3.9.2 Alternative Locations

The exploitation of other resources in the area is less attractive than the current proposal due to the need for additional infrastructure, generally lower resource quality and higher development and operational costs. The proposed sequential development of the Manning Vale, Willeroo and Sabine resources areas is the result of substantial geological investigations and mine planning by NAC. As a result, the Project provides the most economic mining option when compared to other delineated resource areas within MDL 244.

3.9.3 Mining Options

The mining of coal can be undertaken by open cut or underground extraction methods. Open cut mining is the preferred extraction method for the Project as:

the coal seams are relatively shallow (< 80 m) and too banded for efficient underground extraction;

the deposit consists of 6 coal seam groups in the Acland-Sabine Sequence which are each approximately 2 m thick;

the open cut method has significantly higher resource recovery for thin seam extraction; and

the open cut method is the most cost effective extraction option for the coal resource.


As part of the mine planning process, an assessment of open cut mining methods has been undertaken to determine the most suitable mining method.

The three main methods for the removal of overburden above a coal deposit are by:

electric rope shovel and trucks (mining a minimum of 150 m strips);

hydraulic excavators and trucks (mining approximately 150 m to 200 m strips); and

dragline applications (mining approximately 50 m to 60 m strips).

Based on the existing mining method presently utilised at the Mine, the hydraulic excavator and truck fleet was chosen due to the following components:

the complex geology including the physical nature of the coal reserves thin seam arrangement, the overburden's properties and depth and the nature of the fault bounded coal blocks;

mine pit layout and available operational space; and

lower establishment and operational costs.

The dragline and electric rope shovel and trucks options are less economic than the more flexible hydraulic excavator and truck fleet for predominately the following reasons:

the high initial up-front capital cost has an adverse affect on the Net Present Value (NPV);

introducing an electrical machine into the operation requires expensive electrical reticulation capital and maintenance costs;

the material re-handle required is considerable increasing the mining cost on a prime bcm basis;

the spoil rehabilitation costs are higher than in the current life of mine truck / shovel scenario; and

the Acland deposit consists of a considerable quantity of parting material between seams, which in the dragline case would need to be carried out of the mine pit, increasing the associated haulage costs of the parting compared to the base case.

3.9.4 Coal Handling and Preparation Plant

In order to maintain and expand NAC’s export and domestic coal markets, all ROM coal produced must be washed to meet market specifications for export and domestic customers. In the absence of the CHPP process, the product coal would be of a lower quality and therefore value. This option would also result in low recovery volumes of ROM coal. Failure to wash the coal would allow for the combustion of an inferior coal product, which would increase the potential for environmental impacts through the production of poorer emissions and increased combustion wastes.

These factors also support the case for constructing CHPP 3 to cater for the increased production of ROM coal. Construction of CHPP 3 will allow efficient washing of the increased ROM coal output and ensure the quality of coal meets the highest standards for efficient combustion. CHPPs are the only viable method of washing large volumes of coal efficiently and are in use across all major mining operations in Queensland.


3.9.5 Location of Water Management Structures

A preliminary assessment has been conducted to determine the location of the proposed water management structures. The locations for the various water management structures are defined in Chapter 5 Surface Water Resources. The location of the structures was dependent on the following factors:

ability to accommodate for the efficient capture and treatment of dirty runoff;

the minimisation of the potential for discharge off site; and

to be located to maximise water recovery for CHPP operations and dust suppression activities.

A comprehensive investigation is planned in the near future to confirm the final locations of the structures and will be presented in the Plan of Operations for each stage of the mine plan.

3.9.6 Final Voids

It is commonly acknowledged that the method of open cut mining often leads to a final void or voids at the cessation of mining activities. Therefore, the environmental imperative for open cut mining is to reduce the size of the void(s). Complete backfilling of the void(s) would require extensive earthworks involving the ‘double handling’ and transportation of off-site materials and therefore is considered uneconomical. NAC acknowledges that suitable measures must be taken to reduce the void size at the mine planning stage such as progressively placing overburden in the mine pit behind the mine path and battering highwalls to develop flatter slopes through controlled blasting activities.

The DME ‘Technical Guidelines for the Environmental Management of Exploration and Mining in Queensland January 1995’ (DME, 1995) provided five objectives for ‘Open Pit’ Rehabilitation that remain at the end of operations as described below:

To ensure that open pits and spoil faces are rehabilitated in a form consistent with the agreed post-mining land use;

To ensure that open pits and spoil faces remain stable after the completion of mining;

To provide for suitable and adequate sealing of mined face strata, where sealing is required;

To ensure that open pits are properly drained and where used as a water storage, hold water of acceptable quality; and

To rehabilitate open pits so that risks to public safety are minimised.

At the completion of mining activities, most voids will have been backfilled by placing overburden in the mine pit. The last mining blocks planned to be mined are in the Sabine and Manning Vale resource areas. At the completion of mining activities, there will be a final voids remaining totalling 529.6 ha. As discussed in Section 3.3.6, NAC plans to explore additional ways of reducing the size and extent of the final voids throughout the life of the Project.

To ensure slope integrity is maintained, rock armouring will be applied in sections where the lack of competent material poses a stability risk. It is intended that the rehabilitated voids within the Project site will provide a stable landform, offering habitat for a variety of terrestrial and aquatic fauna and be consistent with final land use objectives. The base of the rehabilitated final voids will lie on average; approximately 60 m to


80 m below the existing surface level and therefore most likely accumulate some water from groundwater ingress. Figure 3-12 shows the final conceptual rehabilitated landform.

Various options presented in the DME (1995) were considered for the final voids for the Project, including:

Backfilling. Overburden will be progressively backfilled into the mine pit during operations behind the active mine path. The refilling of the final voids at a volume of approximately 318 Mm3 would render the Project uneconomic at a cost of approximately $954 million. However, the sequence of mining operations has been appropriately planned to minimise the size of the voids and the rehabilitation of the sloping faces of the voids will aim to make them stable. As part of the life of mine plan, a comprehensive geotechnical report on characteristics of the in-pit waste rock and highwall stability will be prepared prior to mine closure. Any coal or other strata exposed in the face of the final void will be sealed prior to the void collecting water.

Use as a Water Storage Area. The void will collect water from rainfall and be subject to groundwater ingress. The water quality based on geochemical analysis is suggested to be suitable for stock or irrigation use. However, the water is likely to be at considerable depth in the void and therefore will constrain its use.

Development as a Wetland / Wildlife Habitat. NAC will investigate the possibility of establishing the final voids as a wetland / wildlife habitat, which would complement the final land use objectives of an integrated pasture and grazing land use.

Use for Refuse Disposal. Currently, the remaining voids are not located in close enough proximity to a constant waste source for this option to be economical. In the future, with projected growth in the Toowoomba area of the Darling Downs, the remaining voids may offer an economic option as a refuse disposal facility. However, this option would still be subject to local planning laws, environmental assessment and statutory approval.

NAC is acutely aware of it obligations with regard to the environmental, economic and social issues which underpin the business case to complete comprehensive mine closure planning. In 2004, the Minerals Council of Australia developed Enduring Value – The Australian Industry Framework for Sustainable Development (MCA, 2004).

The principals relating to mine closure are stated below:

Principle 2: Integrate sustainable development considerations within the corporate decision-making process;

Principle 4: Implement risk management strategies based on valid data and sound science;

Principle 6: Seek continual improvement of environmental performance;

Principle 9: Contribute to the social , economic and institutional development of the communities in which we operate; and

Principle 10: Implement effective and transparent engagement, communications and independently verified reporting arrangements with stakeholders.

As part of the mine closure planning investigations, strategies will be developed by NAC which focus on addressing each of the principles stated above. These investigations have commenced with the development of a life of mine plan which seeks to minimise the mine ‘footprint’ and size of the final voids.


Throughout the course of the Project it is envisaged that improvements to the mine planning process will be made and incorporated into the mine closure planning phase. Environmental studies addressing the rehabilitation, hydrology, geotechnical stability and the ability to sustain flora and fauna habitats within the final voids and investigations into alternative and sustainable post-mining land uses for the final voids are viewed as being an essential part of the mine closure planning process.

3.9.7 Water Supply

At full production, the Project will require approximately 5 500 ML per annum of raw water. Two main water supply options were considered, including:

continued use of the existing groundwater allocation; and

waste water use from the WWRF.

The Mine’s existing main operational water supply is from groundwater sources supplemented by surface water captured in dams and water recycled from the TSF. NAC currently holds water licenses to extract 1170 ML per annum from the Cecil Plains Sub-basin 4223 of the western section of the Clarence-Moreton Basin. This allocation is broken up by 710 ML per annum from the Helidon Sandstone aquifer, 300 ML per annum from the Hutton Sandstone aquiver and 160 ML per annum from the Basalt aquifer.

Prior to the Stage 2 expansion this water allocation was sufficient. To satisfy the water requirements for the Project, NAC has been provided with a 1 000 ML per annum entitlement from the Helidon Sandstone aquifer up to the end of the 2011 on a draw forward arrangement. Following this time, no water is permitted to be extracted from the Helidon Sandstone aquifer for a three year period to balance the additional extraction from the preceding draw forward period.

During 2010, the WWRF pipeline will be completed and will provide a water supply of 3,000 ML per annum to the Project site. In addition, NAC possesses options to increase this water supply to a maximum of 5,500 ML per annum. This water supply option will satisfy all water requirements for the Project and significantly decrease the reliance on groundwater resources to only a small supply for potable water requirements. The use of treated water from the WWRF is a considered to be the most sustainable option as the groundwater resources in the area are experiencing extreme pressure as a result of years of over allocation.

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