mandalong coal delivery system, development...

SLR Consulting Australia Pty Ltd 2 Lincoln Street Lane Cove NSW 2066 Australia

(PO Box 176 Lane Cove NSW 1595 Australia) T: +61 2 9427 8100 F: +61 2 9427 8200

E: [email protected] www.slrconsulting.com ABN 29 001 584 612

22 September 2017

610.17498 DP&E Letter 20170922.docx

Mr Howard Reed Director, Resource Assessments Department of Planning & Environment GPO Box 39 Sydney NSW 2001

Dear Mr Reed,

Mandalong Coal Delivery System, Development Consent DA 35-2-2004

Proposed Section 75W Modification

Environmental Assessment

1 Background

Centennial Mandalong (Centennial) is seeking to modify condition 5 of Development Consent DA 35-2-2004 in order to increase the life of the Mandalong Coal Delivery System from 2021 to 2040.

In relation to this matter, reference is made to the following:

1. Centennial’s letter to the Department of Planning and Environment (DP&E) dated 8 August 2017 providing an overview of the proposed modification and seeking initial advices; and

2. The DP&E’s email on the 8 August 2017 responding to the above letter and advising the following:

The correct approval pathway is section 75W of the Environmental Planning and Assessment Act 1979 (EP&A Act);

No technical assessment are anticipated as necessary;

The supporting Environmental Assessment may be provided in an extended letter format; and

Public exhibition of the proposed modification would unlikely be required, however the relevant government agencies would likely be notified.

This letter report forms the Environmental Assessment required to accompany the application for the proposed modification (as advised acceptable by the DP&E) and has been prepared by SLR Consulting Australia on behalf of Centennial. It provides an overview of the approved development, describes the proposed modification and need for the modification, addresses the approval pathway and addresses the potential for environmental impact.

Development Consent DA 35-2-2004 - Mandalong Coal Delivery System Modification 22 September 2017

SLR Consulting Australia Pty Ltd 2

2 Approved Operations

Coal is currently conveyed from Centennial’s Mandalong Mine near Morisset NSW to Delta Electricity’s Vales Point Power Station near Mannering Park NSW utilising infrastructure approved as part of the Wyee Rail Unloader and Delta Link Project.

2.1 Wyee Rail Unloader

Development consent for the Wyee Rail Unloader was granted to Elcom (now Delta Electricity) by the (then) Lake Macquarie Municipal Council on 25 November 1979. In summary, this consent allowed:

A 3 kilometre rail balloon loop;

A rail facility capable of handling trains up to 3,200 tonnes, with associated infrastructure and water management system; and

An overland conveyor for 6 kilometres from the Wyee Rail Unloader to Vales Point Power Station.

A copy of this consent accompanies this letter as Appendix A. limited conditions were imposed on the consent, with no restriction on tonnage or the life of the consent.

2.2 Delta Link Project

In 2004 Centennial Mandalong and Delta Electricity sought consent for the Delta Link Project, which included two separate, yet interrelating, components known as the Mandalong Coal Delivery System and Wyee Coal Handling Plant (CHP). These components are described in the Delta Link Project – Statement of Environmental Effects (Umwelt 2004) and summarised in the below sub-sections.

The two components of the Delta Link Project are covered Mining Lease ML 1553, which is held by Centennial Mandalong and expires in September 2025. The Delta Entry Site is covered by Mandalong Mine’s Environment Protection Licence EPL 365.

The two components of the Delta Link Project are approved to operate 24 hours a day, seven days a week.

2.2.1 Mandalong Coal Delivery System

Development Consent DA 35-2-2004 was granted to Centennial Mandalong in 2004 by the (then) Minister for Infrastructure and Planning for the Mandalong Coal Delivery System. This system facilitates the delivery of up to 4 million tonnes per annum (Mtpa) of coal from the Mandalong Mine to the Wyee CHP at the Delta Entry Site. In summary, it comprises:

A tunnel created by coal drivage in the Wallarah coal seam within the underground workings of Mandalong Mine;

A tunnel from the coal drivage to the surface at the Delta Entry Site in order to link the underground workings established by the coal drivage to the box cut and portal;

A box cut and portal at the Delta Entry Site to enable access to the tunnel; and

An underground coal conveyor measuring approximately 1.8 kilometres long constructed in the tunnel to transport coal from the Mandalong Mine to the Wyee CHP.

Figure 1 shows the area covered by Development Consent DA 35-2-2004 and Figure 2 shows the location and layout of key infrastructure. A copy of the consent accompanies this letter as Appendix B.

COORANBONG

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DEVELOPMENT CONSENTBOUNDARIES

1

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LEGEND:Mandalong Coal DeliverySystem DA 35-2-2004

Wyee CHP DA 2501/2004

Mandalong Mine SSD-5144

LGA boundary

Cooranbong Entry Site

Mandalong Mine Access Site

Mandalong South Surface SiteData Source: Aerial photo supplied by Centennial March 2012

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Wyee Rail UnloaderRail Balloon Loop

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LEGEND:Mandalong Coal DeliverySystem DA 35-2-2004

Wyee Coal Handling PlantDA 2501/2004

Mandalong Mine SSD-5144Aerial Photography: NearMap July 2017



2.2.2 Wyee Coal Handling Plant

Development Consent DA 2501/2004 was granted by Lake Macquarie City Council (LMCC) on the 15 June 2004 to Delta Electricity for the Wyee CHP at the Delta Entry Site. In summary, it comprises:

Receipt of coal from Mandalong Mine via the Mandalong Coal Delivery System (see Section 2.2.1);

A conveyor from the box cut/portal to the CHP;

Stockpiling and sizing of the coal; and

A coal loading facility to load coal on to Delta Electricity’s overland conveyor to Vales Point Power Station.

Figure 1 shows the area covered by Development Consent DA 2501/2004 and Figure 2 shows the location and layout of key infrastructure.

A copy of this consent is included as Appendix C. Apart from construction-related conditions, limited conditions were imposed on the consent, with no restriction on tonnage or the life of the consent.

2.3 Proposed Modification and Rationale

Condition 5 of Development Consent DA 35-2-2004 for the Mandalong Coal Delivery System (see Section 2.2.1 and Appendix A) states:

This consent lapses 17 years after the date it commences.

The consent was issued in 2004 and therefore lapses in 2021. Centennial Mandalong is seeking to modify condition 5 in order to increase the life of the Mandalong Coal Delivery System to the 31 December 2040. There is no change proposed to the volume of coal permitted to be transported via the Mandalong Coal Delivery System (4 Mtpa), nor any other proposed changes.

The modification would make the life of the Mandalong Coal Delivery System consistent with the life of Mandalong Mine as currently approved under Development Consent SSD-5144 and, as a result, enable continuation of the transportation of coal from Mandalong Mine to the Wyee CHP (see Section 2.2.2) and subsequently Vales Point Power Station.

Extending the life of the Mandalong Coal Delivery System does not necessitate any modification to the development consents pertaining to the Wyee Rail Unloader (see Section 2.1) or Wyee CHP (see Section 2.2.2) given that no restrictions to the life of these consents were conditioned.

2.4 Approval Pathway

2.4.1 Development Consent

Development Consent DA 35-2-2004 for the Mandalong Coal Delivery System was granted in 2004 by the (then) Minister for Infrastructure and Planning under Part 4 of the EP&A Act. Centennial now seeks to modify DA 35-2-2004 pursuant to section 75W of Part 3A of the EP&A Act. It is noted that Part 3A of the Act was repealed and a new assessment system for projects of State significance commenced in NSW on the 1 October 2011. However, pursuant to clause 12 of Schedule 6A of the EP&A Act, section 75W of Part 3A continues to apply to modifications of the development consents referred to in clause 8J(8) of the Environmental Planning and Assessment Regulation 2000 (EP&A Regulation).

Clause 8J(8)(c) of the EP&A Regulation provides a mechanism for development consents granted by the Minister under Part 4 (relating to State significant development) before the 1 August 2005 or under clause 89 of Schedule 6 of the Act to be modified under section 75W.



Development Consent DA 35-2-2004, if modified, will not become an approval under Part 3A, but will remain a consent under Part 4.

2.4.2 Secondary Approvals

The only secondary approval requirement will be renewal of Mining Lease 1553 (in due course) to extend it past its 2025 expiry date.

2.5 Stakeholder Consultation

2.5.1 Community Consultation

Centennial will present the proposal to increase the life of the Mandalong Coal Delivery System at the next Mandalong Mine Community Consultative Committee (CCC) meeting, which is scheduled for October 2017. The Mandalong Mine CCC is independently chaired and comprises representatives from LMCC and the local community.

Given the minor and benign nature of the proposed modification, along with the need for the modification (see Section 2.3), Centennial does not anticipate any issues to be raised by the CCC.

2.5.2 Government Consultation

Centennial wrote to the DP&E in August 2017 to introduce the proposed modification and seek initial advices. The DP&E’s response is summarised in Section 1. Notably, the DP&E advised that it would notify other relevant government agencies of the proposed modification.

Again, given the minor and benign nature of the proposed modification, we do not believe that the consulted agencies will raise any issues and we do not believe that any additional government consultation is warranted. Centennial will continue to consult with the DP&E and other relevant agencies, as necessary, as part of their normal on-going operations and management.

2.5.3 Other

Centennial will consult with Delta Electricity in relation to the proposed modification, particularly in relation to the lack of impact on the Wyee CHP and the continuity of coal to Vales Point Power Station.

2.6 Environmental Assessment

The proposed modification to increase the life of the Mandalong Coal Delivery System will not change the nature or scale of the Mandalong Coal Delivery System as originally approved under Development Consent DA 35-2-2004. Furthermore, it does not appear to pose any environmental risks or impacts over or above what was previously assessed and approved under DA 35-2-2004.

The proposal does not involve any construction works, changes to the operation of the underground conveyor or box cut/portal or changes to the volume of coal transported from Mandalong Mine. The one and only change is that it will now operate for an additional 23 years until 2040, which is consistent with the life span of the currently approved Mandalong Mine under Development Consent SSD-5144. In summary, it will be exactly the same development with an extended life.

Once the coal reaches the surface it falls under the development consents for the Wyee CHP (DA 2501/2004) and Wyee Rail Unloader (see Sections 2.1 and 2.2.2, respectively). Neither of these consents contains any condition that restricts the life of the respective consent/development.



We have considered the matters listed in section 79C(1) of the EP&A Act and don’t believe that there are any other matters not already covered in this letter that warrant consideration in relation to increasing the life of the Mandalong Coal Delivery System. The proposed modification is permissible and does not appear to pose any conflicts with the objectives or provisions of applicable environmental planning instruments and, as advised above, it does not appear to pose any environmental risks/impacts over or above what was previously assessed and approved under DA 35-2-2004.

Environmental monitoring results will continue to be reported on an annual basis in Mandalong Mine’s Annual Review (see condition 15 of DA 35-2-2004).

2.7 Conclusion

Centennial seeks approval under section 75W of the EP&A Act to modify condition 5 of Development Consent DA 35-2-2004 to extend the life of the Mandalong Coal Delivery System. The modification is required to enable continuation of the transportation of coal from Mandalong Mine to the Wyee CHP and subsequently Vales Point Power Station.

We hope that the information provided in this letter adequately addresses the proposed modification and associated issues. It is concluded that the modification will not have any environmental or socio-economic consequences and will not change the nature of the development as originally approved under DA 35-2-2004.

If you require any additional information or have any queries please do not hesitate to contact the undersigned or Centennial’s James Wearne (Group Manager Approvals) on 0407 207 530 / [email protected].

We thank the DP&E in advance and look forward to hearing from you.

Yours sincerely

Eryn Bath Principal Consultant

Mob: 0427 024 739

Email: [email protected]

(enclosures)

APPEN

DIX A

APPEN

DIX B

1

Development Consent Section 80 of the Environmental Planning & Assessment Act 1979 I, the Minister Assisting the Minister for Infrastructure and Planning (Planning Administration), approve the Development Application referred to in Schedule 1, subject to the conditions in Schedule 2. These conditions are required to: • prevent, minimise, and/or offset adverse environmental impacts; • set standards and performance measures for acceptable environmental performance; • require regular monitoring and reporting; and • provide for the on-going environmental management of the development.

Diane Beamer MP Minister Assisting the Minister for Infrastructure and Planning (Planning Administration)

Sydney, 2004 File No: S03/02777

SCHEDULE 1

Development Application: DA 35-2-2004. Applicant: Centennial Mandalong Pty Limited. Consent Authority: Minister Assisting the

Minister for Infrastructure and Planning (Planning Administration).

Land: Lot 522 DP 771299 (formerly portion 327)

Lot 523 DP 771299 (formerly portion 327) Lot 524 DP 771299 (formerly portion 71) Lot 556 DP 729949 Crown Reserve R91166.

Proposed Development: The construction and use of the Mandalong Coal Delivery

System in general accordance with the Statement of Environmental Effects for the Delta Link Project.

State Significant The proposal is classified as State significant development, Development: under section 76A(7) of the Environmental Planning &

Assessment Act 1979, because it involves coal-mining related development associated with a development approval previously given by the Minister on or from 4 June 1987.

Integrated Development: The proposal is classified as integrated development, under

section 91 of the Environmental Planning & Assessment Act 1979, because it requires additional approvals under the: • Protection of the Environment Operations Act 1997; and • Water Act 1912.

2

BCA Classification: Class 10b: Coal conveyor Note: • To find out when this consent becomes effective, see section 83 of the Environmental Planning &

Assessment Act 1979 (EP&A Act); • To find out when this consent is liable to lapse, see section 95 of the EP&A Act; and • To find out about appeal rights, see section 97 of the EP&A Act.

DEFINITIONS

Applicant Centennial Mandalong Pty Limited BCA Building Code of Australia Council Lake Macquarie City Council DA Development Application DEC Department of Environment and Conservation Department Department of Infrastructure, Planning and Natural Resources Director-General Director-General of the Department of Infrastructure, Planning and

Natural Resources, or delegate EP&A Act Environmental Planning and Assessment Act 1979 EP&A Regulation Environmental Planning and Assessment Regulation 2000 GTA General Term of Approval LMCC Lake Macquarie City Council Minister Minister Assisting the Minister for Infrastructure and Planning

(Planning Administration), or delegate ROM Coal Run-of-mine coal RTA Roads and Traffic Authority SEE Statement of Environmental Effects Site Land to which the DA applies

SCHEDULE 2

ADMINISTRATIVE CONDITIONS Obligation to Minimise Harm to the Environment 1. The Applicant shall implement all practicable measures to prevent and/or minimise any harm to

the environment that may result from the construction, operation, or rehabilitation of the development.

Terms of Approval 2. The Applicant shall carry out the development generally in accordance with the:

(a) DA 35-2-2004; (b) Statement of Environmental Effects titled “Delta Link Project”, dated January 2004,

prepared by Umwelt Environmental Consultants; and (c) conditions of this consent.

3. If there is any inconsistency between the above, the conditions of this consent shall prevail to

the extent of the inconsistency. 4. The Applicant shall comply with any reasonable requirement/s of the Director-General arising

from the Department’s assessment of: (a) any reports, plans or correspondence that are submitted in accordance with this consent;

and (b) the implementation of any actions or measures contained in these reports, plans or

correspondence. Limits on Approval 5. This consent lapses 17 years after the date it commences.

3

6. The Applicant shall not transport more than 4 million tonnes of ROM coal a year via the underground conveyor.

Structural Adequacy 7. The Applicant shall ensure that all new buildings and structures, and any alterations or additions

to existing buildings and structures, are constructed in accordance with the relevant requirements of the BCA.

Notes: • Under Part 4A of the EP&A Act, the Applicant is required to obtain construction and occupation certificates for the proposed building works. • Part 8 of the EP&A Regulation sets out the requirements for the certification of development. SURFACE & GROUNDWATER Note: The Applicant is required to obtain a licence for the development under the Water Act 1912. Erosion and Sediment Control Plan

8. Prior to carrying out any development, the Applicant prepare, and then implement, an Erosion

and Sediment Control Plan for the construction of the box cut to the satisfaction of the Director-General. The Plan must: (a) be cons istent with the requirements of the Department of Housing’s Managing Urban

Stormwater: Soils and Construction manual; (b) identify activities that could cause soil erosion and generate sediment; (c) describe the location, function, and capacity of erosion and sediment control structures

and diversion channels ; and (d) describe the measures to minimise soil erosion and the potential for the migration of

sediments to downstream waters. Groundwater Management 9. Prior to carrying out any development, the Applicant shall prepare, and then implement, a

Groundwater Management Plan for the development to the satisfaction of the Director-General. This plan must: (a) monitoring frequency and parameters; (b) contingency and remediation measures; and (c) release criteria related to the conditions of the licence.

1NOISE Construction Noise Impact Assessment Criteria 10. The Applicant shall ensure that the construction noise generated by the development does not

exceed 43dBA LA10 at any residential receiver, between the hours of 7.00 am and 6.00 pm Monday to Friday and 8.00 am to 1.00 pm Saturdays. The Applicant shall ensure that at all other times, construction noise is not audible at any residential receivers.

Note: No construction work that may be audible is permitted on Sundays or Public Holidays. 2BLASTING & VIBRATION Airblast Overpressure Limits 11. The Applicant shall ensure that the airblast overpressure level from blasting at the development

does not exceed the criteria in Table 1 at any residence on privately-owned land or other sensitive location.

1 Incorporates DEC GTA 2 Incorporates DEC GTA

4

Airblast overpressure

level (dB(Lin Peak)) Allowable exceedance

115

5% of the total number of blasts over a period of 12 months

120 0%

Table 1: Airblast overpressure impact assessment criteria

Ground Vibration Impact Assessment Criteria 12. The Applicant shall ensure that the ground vibration level from blasting at the development does

not exceed the criteria in Table 2 at any residence on privately-owned land or other sensitive location.

Peak particle velocity

(mm/s) Allowable exceedance

5 5% of the total number of blasts over a period of 12 months

10 0%

Table 2: Ground vibration impact assessment criteria

SPOIL MANAGEMENT 13. The Applicant shall manage all spoil from the development to the satisfaction of LMCC. REPORTING 15. The Applicant shall submit an Annual Report to the Department. This report must provide:

(a) monthly records of the amount of coal transported on the Mandalong coal delivery system; and

(b) an annual Groundwater Monitoring Report detailing: • the interpretation of data and discussion of monitoring results, compared to

groundwater and salinity impacts predictions • the level of compliance with the groundwater monitoring and trigger levels

established in the Groundwater Management Plan; and • identification of trends in monitoring data from the Groundwater Management

Plan and comparison with the predictions over the life of the underground conveyor.

Note: The Annual Report should be included in the Mandalong coal mine Annual Environmental Management Report.

APPEN

DIX C

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