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.

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Future Direct Local Benefits

• Gunnedah to participate in Royalties for

Regions with up to $565M direct revenue for NSW infrastructure and services.

• 600 direct (peak) with an average
• f 425 employees.
• Total Capital expenditure >$1B
• Payroll tax benefits

Current Direct Local Benefits

• Average $250,000 pa non operational

Incidentals.

• 27 staff (21 reside in Gunnedah

contributing on average $15M pa non‐

• perating expenditure ).
• Community Fund ‐ $5M over last 5

years. Local Government VPAs

• Gunnedah Council $18M over 30 years
• Liverpool Plain Council $1.5M upfront
• Tamworth Council $0.35M upfront

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Inter‐generational Local Employment Opportunities

Prioritising Local Employment

• n Merit

Employee Incentive Scheme to encourage re‐location to live locally

Merit based local Apprenticeships, Traineeships and Graduate Programs

Annual $10,000 Scholarship for 20 years to locals studying Mining Related University Courses School‐Based Traineeship to support 8 students per year

Additional Community Commitments

Up to $20,000 per year for 20 years to encourage medical staff Gunnedah Rural Health Centre $5,000 Annual Scholarship for 10 Years for Locally Based Child Care Students Seed Funding of $250,000 towards Construction of Gunnedah Mining Skills Centre

Additional to VPAs to Gunnedah, Liverpool Plains & Tamworth LGAs

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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.

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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.

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Offset Area 6 has been amended to avoid 696 ha of BSAL and will remain for agriculture 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 directly impacted by mining Fragmented, isolated not used as large scale, high 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

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

• utside active

mining areas through licencees

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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
• f mining
• Peer Reviews – All modelling and analysis was peer reviewed by eminent experts inside and
• utside of government, including the Gateway Panel.
• Monitoring – ongoing life of mine monitoring program

Water Resources coexistence

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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

Water Resources coexistence

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Data source – Appendix T ‐ Figure 7.3

X-section

mining areas are >5km from extraction bores at >0.5Ml/day

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150 m 1.35 km 3.8 km 2 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

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Predicted temporary drawdown Southern Mining Area < 2m ‐ below Aquifer Interference Policy trigger levels.

Southern mining area

EMA ‐ recovering

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Bore screen

Gunnedah Fm Narrabri Fm

Available water draw 19.2M Predicted drawdown 1.4M

Drawdown impact 7.4 % No Pump Impact

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• 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

Figure 7.31 ‐ salinity distribution from the NOW groundwater monitoring bore network.

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• 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

beneficial use

Increased infiltration rates Transpiration Leachate testing shows backfill salinity is less than existing background levels

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Sediment dams Sediment dams Evapo‐concentration

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.

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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

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Contingency

• Noise/Air Quality /blast Management Plans: Shenhua is preparing

Management Plans to proactively manage the monitoring and management system to industry best practice including stopping or varying daily operations.

• Acquisition/Management zones : The draft conditions of consent give

acquisition rights to the landowner to all significantly affected properties and mitigation to moderately and marginally affected properties.

• 25% Vacant Land Policy: Recent precedents of Maules Creek and Boggabri have

not imposed this condition, Shenhua is requesting due consideration. The added complication is ownership of fragmented, high value, large scale broad acre agricultural land by a foreign entity.

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Dust/Noise: 3 properties Noise only: 2 additional properties No existing residences Properties are subject to regular high level background noise from machinery used for cropping (industrial agricultural land). This land can continue to be used for that purpose Govt and community is sensitive to increase in foreign ownership of high value, large scale broad acre agricultural pursuits. Potential fragmentation and isolation of land

Recent precedents of Maules Creek and Boggabri Consent Conditions have not imposed this condition and Shenhua is requesting due consideration

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Issue

• How will the long term land use impacts of the project be managed? Suitability and feasibility
• f the proposed rehabilitation strategy, including the final landform, final void and the

proposed rehabilitation of agricultural land.

How it has been addressed

• Sequential Mine Pit Design – Allowing progressive rehabilitation. Proposed rehabilitation
• utcomes have been designed to enhance existing land uses of agriculture and woodland by

adding to existing features or providing fauna corridors.

• Balanced Strategy ‐ Rehabilitate a combination of agricultural land and woodland habitat
• Success Drivers – High depth of topsoil and subsoil available on site compared to Hunter

Valley mines, <10 degrees of slope on the rehabilitated areas will develop a stable landform and reduce erosion, Liverpool Plains climate conducive to the proposed rehabilitation

• utcomes, broken ground will increase subsoil infiltration and moisture content and enhance

growth.

• Success Criteria – KPI and monitoring program set by Government defined standards for BSAL

and land classification. Desired outcomes will be identical to existing land uses being

• pportunistic cropping and grazing land supported by locally based research.

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How it has been addressed

• Biodiversity ‐ Regeneration of non mined offset areas for koala habitat will begin earlier than rehabilitation
• f woodland, based on 30 years research from the NSW Gov’t research station in Gunnedah.
• Koala ‐ Opportunity to recreate new, young Koala habitat identified as required by the Gunnedah Plan of

Management for Koalas. Koalas will use these trees in approx. 10 years. Years 1 to 10 clearing 292 ha of preferred koala habitat. Trans‐locatable Offset land available 2,650 ha (Tambar Springs).

• Topsoil/subsoil surplus ‐ (574K/3.1M cubic metres) can increase soil depth and water holding capacity of

subsoil in rehabilitated areas.

Contingency

• Opportunity to improve outcomes: No credit has been provided within the Biodiversity offset package

calculations for rehabilitation or revegetation of onsite offset or mined land. This an additional outcome that has not been used to justify the impacts of the Project.

• Management Plans: To proactively management process from testing, strip, place, vegetate and

monitoring whilst detailing the systems to industry best practice.

• Adaptive management: Measures will include ceasing the rehabilitation operation and develop

remediation plans.

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Onsite

• Mt Watermark and

Offset Area 6

• Mooki River
• Mine Rehabilitation

Offsite

• Existing Offsite

Offset Area

• Tambar Springs

Indirect

• Targeted research

ARU and Universities

• Landcare funding
• Recovery planning

 Protection of 6,071ha

• f woodland and DNG

 Revegetate 2,715ha

• f woodland and DNG

 Rehabilitate 2,384ha

• f woodland

11,168 ha total:

• 7,840 ha Box Gum

Woodland CEEC

• 160 other listed EEC
• 3,168 ha other

woodland vegetation

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Issue

• What are the long term land use impacts of the final void and suitability/feasibility?

How this has been addressed

• Mine design with consultation: One final void with 2 of the 3 proposed mining areas
• backfilled. The final void is in the furthest location from the Alluvials.
• Assessment of final void: Filling in the final void would be cost prohibitive and economically

unviable ($461M) without revenue. The project has already given the commitment to fill the eastern and southern mining at a cost of over $340M at present cost.

• Suitability: The final void has been designed to eliminate the risk of overtopping and to

facilitate the opportunities for future usage by stock, agriculture and/or aquaculture pursuits.

• Mine Closure Plan: Post‐mining monitoring program

Contingency

• Water Management: Installed mine water management system, including the Final Void

which could be used for a stock and fauna watering and/or aquaculture industry across the rehabilitated site to enhance the land use integration post mining while managing water and salinity across the final landform.

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artists impression of void lake Actual final void at Vickery Artist Impression of Watermark final void.

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“The Department is satisfied that Shenhua has designed the project in a manner that achieves a reasonable balance between maximising the recovery of a recognised coal resource of State significance and minimising the potential impacts on surrounding land users and the environment as far as practicable, particularly through:

• Avoiding disturbance of the black soil plains
• Avoiding disturbance of the Upper Namoi alluvial aquifer
• Avoiding disturbance of Mt watermark and Breeza State Forest
• Minimising final voids with the residual void located distant from the

black soil and alluvial soils

• Reducing impacts on biodiversity, Aboriginal sites and agricultural

land and reducing noise and dust impacts”

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