Project Update General Manager Joe Ranford has accepted a role in - PowerPoint PPT Presentation

Project Update  General Manager – Joe Ranford has accepted a role in Finland  Terramin continue to have same development team on BIHGP  Martin Janes to become Project Director  No formal feedback received on draft Mining Lease Proposal  Helpful comment on impact assessment layout  Correspondence received from the DPC requesting additional information in an Exploration Program for Environmental Protection and Rehabilitation (EPEPR)  This EPEPR will only cover the drilling aspect (stage 1)  No feedback on the test work component (stage 2) TERRAMIN AUSTRALIA LIMITED SLIDE No. 1

MAR Drilling EPEPR – stage 1  Proposal submitted for three reinjection bores with paired monitoring bore – to gain DEWNR ‘drainage permit’  Results from these bores will inform the test work proposal/EPEPR  Objectives for MAR trial  Confirms groundwater model  Mitigates salt intrusion from Dawesley Creek  Keeps water levels stable under Native Vegetation Heritage Agreement area TERRAMIN AUSTRALIA LIMITED SLIDE No. 2

Bird in Hand Gold Project TERRAMIN AUSTRALIA LIMITED SLIDE No. 3

Structure of Presentation  The nature of impact – How do economic impacts occur?  Existing economic environment – understanding the local economy  Experts used and why  What we have heard – and how we are addressing these concerns  Land value  Perceptions TERRAMIN AUSTRALIA LIMITED SLIDE No. 4

What is economic impact?  Negative economic impacts could occur if there is a confirmed  Source – A description of the source of the potential impact event which alone or in combination has the potential to cause harm to an environmental receptor.  Pathway – A description of the potential pathway, means or route (with consideration of any natural barriers) by which an identified environmental receptor can be exposed to, or may reasonably be expected to be impacted by an identified source.  Receptor – A description of the environmental receptors that may reasonably be expected to be adversely impacted by the source, taking into account the considerations for the element of the environment.  which presents a negative change to the existing environment that affects an existing business. TERRAMIN AUSTRALIA LIMITED SLIDE No. 5

Experts - Economic  Barry Burgan – Economic Research Consultants  Professor of Management and MBA Program Director at Bond University  Expertise: financial, economic and social assessments  Member: Initial Accreditation Committee of Assoc. to Advance Collegiate Schools of Business  Jim Hancock – SACES, University of Adelaide  Deputy Director at SA Centre of Economic Studies (SACES)  Expertise: cost benefit analysis, econometric analysis of labour market programs, environmental evaluations  Past: Manager SA Treasury TERRAMIN AUSTRALIA LIMITED SLIDE No. 6

FABAL – Agricultural Experts  Ashley Keegan – B.App Sci (viticulture); MBA (finance)  CEO - Operations, Food and Beverage Australia Limited (FABAL), Adelaide  One of Australia’s largest privately owned vineyard/agricultural management groups  Agribusiness – vineyards, orchards, groves – 1700Ha vineyards over 18 sites  FABAL owns Managed Aquifer Recharge Scheme – Langhorne Creek – Installed during millennium drought  FABAL owns B&Bs and retail outlets in SA  CSIRO Digital Agricultural Working Group  Executive Committee of SA Wine Industry Association  Past: Board member of Phylloxera and Grape Industry Board of SA  Past: Wine Federation of Australia’s Future Leaders TERRAMIN AUSTRALIA LIMITED SLIDE No. 7

FABAL – Agricultural Experts  Chris Day - MBA (international business), Bachelor of Laws and Economics, Grad. Dip in Financial Services  CEO - Group, Food and Beverage Australia Limited (FABAL), Adelaide  25 years experiences in wine industry  Chairman: SA Business Development Committee  Director: Eight publically listed companies  Past: CEO of Australia’s largest publically listed wine investment fund  Past: Executive at Hardy’s and Foster’s Wine Estates TERRAMIN AUSTRALIA LIMITED SLIDE No. 8

Currently happening – Terramin’s understanding  We understand this from  Economic Research Consultants – “Economic Impact Assessment”  South Australian Centre for Economic Studies, University of Adelaide, – “Peer Review of Economic Impact Assessment”  Econsearch – “Economic Contribution of Agriculture and Related Activity in the Inverbrackie District, Adelaide Hills  Economic Development Focus Group – Regional Development Australia, local Councils,  Local Business Focus Group – Invite to all Woodside Commerce Assoc. Members and Adelaide Hills Business Centre members  Private meetings with Bird in Hand Winery and Accolade (Petaluma)  Australian Bureau of Statistics – Employment and Industry data TERRAMIN AUSTRALIA LIMITED SLIDE No. 9

Current Land uses  Adelaide Hills is a mixed-economic activity area  Long history of resources development  Agriculture, horticulture, defence, food and wine processing, retail, hospitality, water treatment, conservation and recreation  Currently 36 quarry licences in operation in Adelaide Hills Council  These are all co-located and co-exist in the community  Managed well, these industries have grown up together TERRAMIN AUSTRALIA LIMITED SLIDE No. 10

Current Employment Trends – ABS  Adelaide Hills has an increasing unemployment trend 8.0 7.0 6.0 Unemployment Rate - % 5.0 4.0 3.0 2.0 1.0 0.0 2010 2011 2012 2013 2014 2015 2016 2017 Adelaide Hills Council Regional SA South Australia TERRAMIN AUSTRALIA LIMITED SLIDE No. 11

What’s happening in other areas in SA?  Strathalbyn – Mine co-existed with grain farming, hospitality, horses and polo fields and Langhorne Creek wine region.  Barossa Valley – Largest extractive quarry (vineyards, cellardoors, B&Bs)  McLaren Vale – numerous quarries located adjacent (inc. 600m from iconic tourism destination)  All these areas have existing co-located industries and have experienced growth TERRAMIN AUSTRALIA LIMITED SLIDE No. 12

Proposed Project – over 8 years  Impact on SA Economy  $280M  TOTAL: 140 direct jobs and 423 indirect (year 4)  599 direct FTE and 1837 indirect FTEs over 5 years  Impact on Adelaide Hills Economy  93 direct jobs and 240 indirect (year 4)  $152.6M  Impact on Fleurieu Peninsula Region  44 direct jobs and 76 indirect (year 4)  $47.7M TERRAMIN AUSTRALIA LIMITED SLIDE No. 13

Local Spend Policy  Terramin have a local spend policy  Always use local services and suppliers where possible  Estimated to be – $7M per year directly into local Woodside and surrounds economy – $152.6M into Adelaide Hills region (over project)  $30M per year operating expenditure (operating phase) TERRAMIN AUSTRALIA LIMITED SLIDE No. 14

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We have heard  Concern: Visual amenity could impact businesses  Used Oxigen - 2017 South Australian Landscape Architecture Awards – Tonsley, Adelaide Riverbank, Flinders uni, Waterfall gully, Halifax St  Visual amenity plan removes the pathway of seeing mining infrastructure from hospitality/cellar door locations  Visible elements include vegetation, dam and a silo which mimics the existing environment  No infrastructure on Pfeiffer Road paddocks  Visible paddock from Bird in Hand Road has vegetation and a dam TERRAMIN AUSTRALIA LIMITED SLIDE No. 16

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Proposed Entrance TERRAMIN AUSTRALIA LIMITED SLIDE No. 18

View Once Built from Cellardoors VIEW BIH CELLARDOOR VIEW ARTWINE CELLARDOOR TERRAMIN AUSTRALIA LIMITED SLIDE No. 19

Current Vegetation Growth TERRAMIN AUSTRALIA LIMITED SLIDE No. 20

We have heard  Concern: Nuisance noise could impact businesses  We have designed our site to be 10 dB(A) lower than the legislative limits and inline with baseline noise measurements taken  Lower limits than adjoining agricultural businesses  Includes acoustic mitigation strategies – enclosing, insulation, placing infrastructure underground  Refer back to Presentation from November 17 and January 18 WCCC  Proposed generated noise TERRAMIN AUSTRALIA LIMITED SLIDE No. 21

We have heard  Concern: Dust could impact businesses  We have designed our site to remove most “normal” mining dust sources  Bitumised roads, ore silo system, vegetation buffers, hydromulching  Agricultural Impact Assessment identifies dust monitoring programme associated with Project likely to pick up vineyard chemicals (metalliferous based such as copper sulfate is applied at approx. 50-100kg per hectare over 5 years).  Recommendation: A good neighbour policy where each party notifies each other of proximal boundary activities and timing could avoid this TERRAMIN AUSTRALIA LIMITED SLIDE No. 22