Insert flyover into Presentation 2 $300M paid for EL in 2008. - PowerPoint PPT Presentation

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 $300M paid for EL in 2008.  Shenhua Australia’s head office built in 2010 in Gunnedah.  $206M in local land purchases, whole mining area on land owned by Shenhua.  $100M in Exploration and EIS Expenditure.  Consistent effort to consult and integrate into the local community, Shenhua recognises this is vital for project to be successful. 3

Future Direct Local Benefits Current Direct Local Benefits • Gunnedah to participate in Royalties for • Average $250,000 pa non operational Regions with up to $565M direct revenue Incidentals. for NSW infrastructure and services. • 27 staff (21 reside in Gunnedah • 600 direct (peak) with an average contributing on average $15M pa non ‐ of 425 employees. operating expenditure ). • Total Capital expenditure >$1B • Community Fund ‐ $5M over last 5 years. • Payroll tax benefits Local Government VPAs • Gunnedah Council $18M over 30 years • Liverpool Plain Council $1.5M upfront • Tamworth Council $0.35M upfront 4

Inter ‐ generational Local Employment Opportunities Additional Community Merit based local Prioritising Commitments Apprenticeships, Local Traineeships and Graduate Up to $20,000 per year for Employment 20 years to encourage Programs on Merit medical staff Gunnedah Rural Health Centre Annual $10,000 Scholarship for 20 years to locals studying $5,000 Annual Scholarship Mining Related University for 10 Years for Locally Employee Courses Based Child Care Students Incentive Scheme to Seed Funding of $250,000 encourage School ‐ Based Traineeship to re ‐ location to towards Construction of support 8 students per year Gunnedah Mining Skills live locally Centre Additional to VPAs to Gunnedah, Liverpool Plains & Tamworth LGAs 5

Issue  How does the Project mitigate the impacts on strategic agricultural land as identified in the NENW SRLUP, including the impacts on the existing agricultural land use in the area surrounding the project? How it has been addressed  Mine design with consultation – Mining in the ridge country only with > 150M buffer zones, No mining on black soil Liverpool Plains infrastructure designed to avoid agriculture.  Maintain the Status Quo ‐ licensee farming on areas outside the disturbance boundary.  Minimal impact on groundwater – see later slide  Minimise impact on BSAL ‐ Only 96ha of fragmented and isolated BSAL.  Cotton and Agricultural Products – Independent reports show no adverse impact  Temporary land disturbance ‐ proposing to rehabilitate 900 ha of non ‐ BSAL ag land and 100 ha of BSAL. 6

Contingency  Gateway Panel Advice: Not in accordance with DGRs and Dept P&E has proceeded on basis that OAS&FS (Dep’t of Primary Industries) advice that BSAL figures in EIS correct.  Risk Evaluation: 96ha in the mining areas could represent a loss of 0.0064% of the mapped BSAL in the NENW region or 0.05% of Total BSAL on the Liverpool Plains.  Agricultural Rehabilitation Management Plan: Shenhua is preparing the ARMP and will undertake to carry out soil sampling as per Gateway Panel Advice prior to disturbance and will commit to rehabilitating additional BSAL.  Potential Offset: 514 ha of agricultural land was purchased with our biodiversity offset area in Tambar Springs and will be continued for agricultural use. 7

Soil sampling and BSAL verification undertaken in accordance with the draft New England North West SRLUP (as per DGRs) OAS&FS satisfied 96 ha of BSAL Offset Area 6 has directly impacted been amended to by mining avoid 696 ha of Fragmented, BSAL and will isolated not used remain for as large scale, high agriculture value agriculture BSAL is: 0.0064% of BSAL in the NENW SRLUP 0.05% of total BSAL in Liverpool Plains area. OAS&FS satisfied that adequate topsoil volumes available for rehabilitation 8

1,000 ha Class III land capability strategically reinstated to maximise agricultural utilisation including 100 ha of BSAL Committed to Progressive maintaining rehabilitation with a sustainable mixture of native farming practices vegetation and outside active pasture species mining areas through licencees No mining on black soil Liverpool Plains No loss of groundwater access to existing users 9

Water Resources coexistence Issue  How does the Project impact on the Upper Namoi Alluvial Aquifer and the downstream surface water resources How it has been addressed?  Mine design with consultation – Mining in the ridge country only with > 900M buffer zones to the Gunnedah Formation, No mining on black soil Liverpool Plains, designing surface water infrastructure to direct and control water flow and quality with minor catchment adjustment to pre ‐ development flood levels.  Sequential Mine Operation – Operating the mine areas individually and not concurrently, water licences secured for first 20 years of operation.  Maintain the status quo – no disturbance of the alluvial aquifers  Temporary land disturbance – Backfilling two of the three mining areas, leaving only one final void.  Scientific Analysis – Shenhua has undertaken detailed and comprehensive analysis of the catchment, its systems and understands how it naturally operates.  Salinity – existing catchment is naturally saline, Worse case, less than 1% increase in salt load at year 30 of mining  Peer Reviews – All modelling and analysis was peer reviewed by eminent experts inside and outside of government, including the Gateway Panel.  Monitoring – ongoing life of mine monitoring program 10

Water Resources coexistence Contingency  Water Management Plans to proactively manage the monitoring and management of the system, including triggers stopping or varying the daily operation to if anomalies arise within the monitoring regime.  Trigger Points – ANZECC guidelines  Bore water drawdown levels  Water Quality – salinity, ph, sediment control  Annual reporting  Regular updating of groundwater model  Make Good Provisions  Built into the Draft conditions of consent 11

mining areas are >5km from extraction bores at >0.5Ml/day X-section Data source – Appendix T ‐ Figure 7.3 12

150 m 1.35 km 2 km 3.8 km 150m – buffer mining area to black soils 1.35 km to edge of Gunnedah Formation 2 km to bores with water entitlement 3.8 km to deepest part of channel 13

EMA ‐ recovering Southern mining area Predicted temporary drawdown Southern Mining Area < 2m ‐ below Aquifer Interference Policy trigger levels. 14

Predicted drawdown 1.4M Narrabri Fm Available water draw Gunnedah Fm 19.2M Bore screen Drawdown impact 7.4 % No Pump Impact 15

Figure 7.31 ‐ salinity distribution from the NOW groundwater monitoring bore network.  Highest quality water occurs in palaeochannel to east (<1000) source of good quality water is recharge from Liverpool Ranges and river leakage from the South  Brackish water flows to Gunnedah Fm in low volumes via the Narrabri Fm (>1000)  Dilution effect is influenced via the higher flowrate Gunnedah Formation so high quality is maintained 16

Evapo ‐ concentration Transpiration Sediment dams Increased infiltration rates Sediment dams Leachate testing shows backfill salinity is less than existing background levels  Salinity already occurs naturally in ephemeral watercourses, runoff salinity estimated to increase by ~ 1% at mine closure but decreasing overtime ‐ undetectable change from background levels  Establish salt tolerant deep rooted vegetation that depresses water levels in the mining areas.  Establish adaptive water management flow and storage control systems that control to defined background water quality levels.  Water flowing to aquifers via increased infiltration won’t degrade the existing system or change the 17 beneficial use

Issue  How does the Project employ all reasonable and feasible noise and dust mitigation measures to avoid or minimise impacts? How it has been addressed  Mine Design: All natural landforms, reasonable and feasible management and mitigation measures are incorporated into mine plan.  Land Ownership: Shenhua owns most of the affected land with buffer areas >150M to the black soil plains.  Optimisation: Specific change from EIS to RTS is revision of mining fleet to larger, quieter trucks (69 to 45). Resulted in contraction of Noise and Dust impacts.  Technology: Real time noise monitoring and management system with predictive meteorological forecasting system to be installed. 18

How it has been addressed cont.  Using natural landforms as sound/dust buffers  Optimising and noise attenuating the mine fleet mixture to minimise trips  Cladding/enclosing the CHPP infrastructure and elevated conveyor transfer points  Large radius rail loops to reduce wheel squeal on wagons  Mobile plant in low lying areas of the mine at night  Shielded haul roads located away from receivers  Managing blast sizes to applicable overpressure and ground vibration criteria  Delay or cancel blasts in adverse weather conditions  Minimise disturbance, progressively rehabilitate and use water carts and/or dust suppressants on haul roads 19