Moolarben Coal Complex Open Cut Optimisation Modification IPC Briefing 27 March 2019
Overview ▪ Moolarben Coal Complex ▪ Modification Description ▪ Environmental Assessment 2
Moolarben Coal Complex – Currently Approved Stage 1 Stage 2 Stage 1 (PA 05_0117): ▪ Approved September 2007 UG4 ▪ Construction 2009, operations 2010 ▪ Open Cuts (OC1, OC2 & OC3) ▪ Underground (UG4) CHPP ▪ CHPP and rail loop UG1 Stage 2 (PA 08_0135): OC1 ▪ Approved January 2015 OC4 ▪ Open Cut (OC4) ▪ Underground (UG1 and UG2) OC2 ▪ ROM coal to Stage 1 CHPP Current Operations ▪ OC1, OC2, OC4, UG1, CHPP OC3 UG2 3 Approved Moolarben Coal Complex
Modification Description – Overview Modification General Arrangement Proposed Modifications: ▪ Increased open cut production limits from 13 to 16 Mtpa (Stages 1 and 2 combined) ▪ Realignment of OC3 infrastructure ▪ Revised OC3/OC2 pit limits Relocated EPL Water Treatment ▪ OC2 to OC4 internal road Facility Release Point ▪ Bypass conveyor Bypass Conveyor ▪ Water treatment facility, revised EPL release point and release conditions ▪ Final landuse in OC2 and OC3 (proposed change to OC2 to OC4 native vegetation from agricultural land) Internal Road ▪ Other minor infrastructure changes within extent of approved disturbance Extension to ▪ No change to the approved underground OC2 Pit Limit mining operations Realigned OC3 ▪ No change to final voids Infrastructure and Pit Limits 4
Modification Description – Overview The Modification would not change the currently approved: ▪ Underground operations (layouts and production limits) ▪ OC1 or OC4 pit limits ▪ Hours of operation ▪ Blasting frequency limits ▪ Site access ▪ Method of reject disposal ▪ Peak workforce ▪ Final voids 5
Modification Description Increased Open Cut Production Limits ▪ Stage 1 Project Approval open cut coal production limit: • Currently 8 Mtpa combined total from OC1, OC2 and OC3 • The Modification seeks to increase this from 8 to 10 Mtpa ▪ Stage 2 Project Approval open cut coal production limit: • Currently 12 Mtpa from OC4 • The Modification seeks to increase this from 12 to 16 Mtpa ▪ Combined Stage 1 and Stage 2 open cut production is currently limited to 13 Mtpa in total: • The Modification seeks to increase annual open cut production limits from 13 to 16 Mtpa (Stages 1 and 2 combined) ▪ Associated production limit changes: • Increased combined annual open cut and underground ROM coal production limits from 21 to 24 Mtpa • Increased annual coal processing (washing limit) from 13 to 16 Mtpa • Increased annual product coal limit from 18 to 22 Mtpa 6
Modification Description OC3 Infrastructure and OC2/OC3 Pit Limits Extension to OC2 Pit Limit ▪ Realigned OC2 to OC3 haul road ▪ Relinquishment of approved disturbance Approved Haul Modified Haul and OC3 out of pit emplacement Road and MIA Road ▪ Relocated OC3 MIA Modified MIA ▪ OC3 revised pit limits ▪ OC2 revised pit limit Approved OC3 Emplacement OC3 Pit Limit OC3 Pit Limit Extensions Reductions Modification Disturbance Area 7 “ Relinquishment” Area
Modification Description Internal Road Bypass Conveyor, ▪ Unsealed internal road would be constructed Realigned Haul Road and Bypass Coal between OC2 and OC4 Stockpile Area ▪ Not used to haul coal or overburden ▪ Used for the occasional transfer of mining equipment only ▪ Internal road would generally follow an existing track Bypass Conveyor ▪ Bypass conveyor would be constructed to enable open cut ROM coal to bypass the CHPP ▪ Bypass would create additional marketing opportunities and reduce the production of rejects ▪ Associated minor infrastructure upgrades within approved disturbance limits Internal Road 8
Modification Description Final Land Use ▪ OC2 is approved to be rehabilitated to a combination of agricultural land and native vegetation ▪ OC3 is approved to be rehabilitated to agricultural land ▪ This Modification proposes an increased proportion of OC2 and OC3 to be rehabilitated to native vegetation ▪ Revised rehabilitation outcomes would improve biodiversity and connectivity in the final landform 9
Modification Description Water Treatment Facility ▪ Requirement identified through ongoing review of site water balance ▪ Avoids build up of mine water on-site in the long-term ▪ Ensures controlled releases in accordance with EPL water quality release limits ▪ Brine generated by the water treatment process managed in the first instance by diluting with stored water and used in dust suppression ▪ Residual brine permanently stored within the UG4 void (following UG4 mining) Raw Water Water Treatment Brine Dam Plant Dams 10
Modification Description Relocation of EPL Release Point ▪ EPL 12932 discharge point (EPL ID1) relocated from current location (into Bora Creek) to environmentally superior location at the confluence of Bora Creek and the Goulburn River ▪ Discharge water would be piped from the water treatment facility to the relocated discharge point ▪ Proposed discharge point avoids potential erosion from controlled releases along Bora Creek Water Treatment Revised EPL Indicative Approved EPL Release Facility Release Point Pipeline Point (EPL ID1) Goulburn River Diversion at the confluence with Bora Creek Bora Creek (looking 11 downstream) - avoided
Environmental Assessment – Surface Water Controlled Releases ▪ MCO’s existing EPL (12932) authorises: • Up to 10 ML/day controlled release • Salinity limit of 900 µS/cm (maximum) ▪ Modification proposes: • Relocation of existing EPL authorised release point (EPL ID1) to an environmentally superior location • Increased controlled release volume during certain periods of the mine life ▪ Collaborative development of proposed release limits with the EPA and DPE: • Reduction in existing EPL 12932 salinity limit from 900 µS/cm to 685 µS/cm ▪ Revised limit of 685 µS/cm developed in consultation with EPA and DPE per ANZECC process • No change to existing EPL 12932 volume limit for the majority of the mine life: ▪ No change to existing 10 ML/day limit up to the commencement of mining operations in UG4 and following completion of mining operations in UG4 ▪ Up to 15 ML/day during mining operations in UG4 ▪ Greater than 15 ML/day during prolonged wet periods, with the approval of EPA 12
Environmental Assessment – Biodiversity Disturbance and Offsets ▪ Modification Proposes: • Disturbance of ~80 ha in the Modification Area (comprising 39 ha native vegetation and 41 ha non-native vegetation) • “Relinquishment” of 34.5 ha of vegetation previously approved for clearing (including 15 ha of native vegetation) • Additional land- based offset (known as “Gilgal”) ▪ OEH has reviewed and accepted the offset calculations as presented in the Biodiversity Assessment Review ▪ The DPE Assessment Report considers the proposed impacts to be acceptable, subject to the identified avoidance, mitigation and offsetting measures ▪ MCO would secure the Gilgal biodiversity offset area in accordance with the draft modified conditions of approval ▪ “Gilgal” is owned by MCO and abuts nature reserve 13 National Existing Biodiversity Gilgal Park Offset Area
Environmental Assessment – Air Quality Air Quality Assessment ▪ The Modification proposes increased annual production limits and minor increases in disturbance areas ▪ The Air Quality Assessment for the Modification predicted no exceedances of relevant PM 10 , PM 2.5 , total suspended particulates or dust deposition criteria at any privately-owned receptors due to emissions from the Moolarben Coal Complex incorporating the Modification ▪ The DPE Assessment Report considered that predicted air quality would be similar to the existing approved levels and can be effectively managed under the existing conditions of approval ▪ MCO would continue the operation of real-time and proactive air quality management system ▪ MCO would install a real-time PM 2.5 monitor as part of its Air Quality Monitoring Program 14
Environmental Assessment – Noise Noise Assessment ▪ The proposed optimisations to open cut operations (including production increase to 16Mtpa ROM) can be achieved with no material change to the existing mining fleet ▪ The Noise Assessment for the Modification predicts: • The Moolarben Coal Complex would continue to comply with the existing noise limits at all private residences • Rail noise along the Sandy Hollow-Gulgong Railway would continue to comply with the relevant criteria of the Rail Infrastructure Noise Guideline ▪ The DPE Assessment Report considers that predicted noise levels would be similar to the approved levels and can be effectively managed under the existing conditions of approval ▪ MCO would continue the operation of its real-time and proactive noise management system 15
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