Newstan Colliery CCC Presentation 28 th February 2012 - - PowerPoint PPT Presentation

www.centennialcoal.com.au

Newstan Colliery – CCC Presentation

28th February 2012

www.centennialcoal.com.au

Operation Update

Project Execution

• 2nd Continuous Miner (CM) commenced in the

Main West panel in December (joins 1st CM in South West panel).

• 3rd panel in Main East to commence approx May

2012.

• 7 day operation for underground approx May

2012.

• Manning has and will increase to match

aforementioned changes.

• Further Projected Execution elements ongoing.

3

Mine Plan

4

Working Area Plan

5

www.centennialcoal.com.au

Project Update

Main West Modification

7

• Environmental Assessment submitted in June

2011

• Final Response to Submissions provided in

December 2011

• Draft consent conditions received February 2012
• Approval from the Planning and Assessment

Commission to be received.

Subsidence Management Plan (SMP) Application

8

• Newstan has recommenced mining within the boundary of the existing

development consent (DA 73-11-98).

• A Subsidence Management Plan (SMP) is required for initial longwalls

to be submitted to the NSW Trade and Investment for approval.

• Environmental, infrastructure and subsidence assessments are

progressing.

• Anticipate submission of SMP application in May 2012. SMP

application required to be advertised.

• Consultation with land and infrastructure owners has been

progressing.

Newstan Project - Background

9

• Newstan Colliery – Care and Maintenance in 2009
• Exploration drilling programme commenced in 2008 within the southern areas of Newstan’s

mining and exploration leases – completed drilling in 2011

• Internal pre-feasibility and feasibility investigations have occurred
• Lodged a Preliminary Environmental Assessment in April 2008. The Part 3A has been

scrapped and this document is no longer valid.

• Newstan Project now split into two separate projects:

– Newstan Colliery (Newstan) – Extension of Mining Project – Northern Coal Services (NCS) – Coal Logistics Project

• Request for Environmental Assessment Requirements (EARs also known as DGRs) made

Jan 2012. Briefing Papers submitted Feb 2012

Newstan Extension of Mining Project

10

• Expand the underground mining operations utilising a combination

continuous miner and longwall mining methods.

• Extract up to 4.5 Mtpa (Currently approved to extract 4 Mtpa, an

increase of 0.5 Mt to cater for spikes in some years of production plan).

• Utilise and upgrade the existing surface infrastructure of the Newstan

and Awaba Collieries.

• Construct a new Men and Materials drift at the Awaba Colliery

Surface Site.

• Increase manning to 350 employees (Currently approved for 320

employees)

Newstan Extension of Mining Project

11

• Install and operate additional surface infrastructure for gas drainage, greenhouse gas

capture and abatement, ventilation, support buildings, electrical reticulation, water reticulation, water management, communications and other services;

• Continue to operate the underground water management systems of both the

Newstan and Awaba Collieries;

• Operate the Awaba Colliery surface water management system including all existing

discharge points;

• Ability to transfer water between the Newstan Colliery, Awaba Colliery and Mandalong

Mine water management system (currently options being investigated for a regional solution to manage water);

• Continue to utilise the existing ‘ballast borehole’ site and services compound at

Awaba; and

• Undertake ongoing exploration drilling activities.
• NOTE: Surface water management, noise and air quality issues at the Newstan

Colliery Surface Site will be addressed in the Coal Logistics Project EIS.

NCS Coal Logistics Project

12

• Upgrade the surface infrastructure at Newstan to enable the ability to

handle and process of up to 8 Mtpa through the CPP (Washery) and Product Handling Facility (Currently approved to process 4 Mtpa);

• Ability to transport up to 8 Mtpa of coal from the Newstan Product

Handling Facility through the Newstan Colliery rail loading facilities by train to the Port of Newcastle or Port Kembla (Currently approved to export 3 Mtpa);

• Based on current and expected future contracts, the current plans are;

– The Washery will be upgraded from its current capacity of 4Mtpa ROM to 6Mtpa ROM – The Product Handling Facility will be upgraded from 3Mtpa to 8Mtpa capacity (this currently consist of both train handling for around 5Mtpa export and truck handling for around 3Mtpa domestic). – This may alter if contracts change.

NCS Coal Logistics Project

13

• Increase the coal stockpile capacity at the Newstan Colliery Surface Site;
• Operate coal handling facilities at Cooranbong;
• Transport reject material to the Newstan reject areas or the LMCC owned Hawkmount

Quarry via private haul roads;

• Construct and operate a coal crushing facility at the Mandalong Mine - Cooranbong

Entry Site that has previously been approved but not yet constructed;

• Manage surface water at the Newstan Colliery Surface Site, the Mandalong Mine –

Cooranbong Entry Site, the Mandalong Mine private haul and the LMCC owned Hawkmount Quarry;

• Transfer water between the Newstan Colliery, the Awaba Colliery, the Hawkmount

Quarry and the Mandalong Mine water management system;

• Undertake locomotive refuelling and servicing on site;
• Continue the construction of the Newstan Southern Reject Area to RL60;
• Provide employment for up to 100 personnel

Consultation to date

14

• Briefing Papers distributed to CCC members and

relevant government agencies.

• Landowners within potential subsidence areas

notified of Project.

• Ongoing consultation with Newstan CCC
• Ongoing consultation with relevant Aboriginal

groups

• Ongoing consultation with landowners,

infrastructure owners and relevant government departments.

EIS Process

15

• Detailed investigations for both Projects will be required and will

include:

– Subsidence assessments – Infrastructure impact assessments – Ecology assessments – Heritage assessments (European and Aboriginal) – GHG, air and noise assessments – Surface water and groundwater assessments – Social and economic assessments – Traffic assessments

• As part of the EIS we will assess all possible risks. Risks are

identified through consultation with government and stakeholders. Centennial will work with consultants to determine were identified risks can be avoided, minimised or mitigated.

www.centennialcoal.com.au

Water Management

Newstan By-Wash Dam

Water Management

Centennial Coal’s Newstan mine has more than 130years of history. With this history comes the challenge of ensuring practises of the past, which were once acceptable, are replaced with the highest environmental standards. Over many years Newstan has worked diligently with the EPA in order to achieve this. However, at times the solutions that best deliver positive environmental

• utcomes for Newstan are frustrated by the regulatory regime it works

under and lengthy approval timelines. Centennial’s Newstan mine has committed significant financial resources to minimising current and future risks of pollution incidents.

17

Water Management

Below are some examples of these activities.

– Undertaken a complete review of the way water is managed at Newstan – Increased the separation of clean and dirty water at Newstan – Increased the capacity of surface water storages at Newstan – Consulted with the EPA to seek an increase in the volume of water discharged from Newstan through regulated and monitored control points – Investigating and committing to the installation of a Clean Water Plant at Newstan to treat all water discharged from the mine.

Centennial Coal is committed to the highest environmental standards and will continue to work with the EPA to ensure Newstan continues to deliver a positive economic, social and environmental contribution to the local community.

18

Final Pollution Control Dam Expansion

• Newstan commenced the expansion of the FPCD (on left as you exit site)

from 16ML to 50ML in April 2011, with the expansion scheduled to be completed by April 2012 (depending on weather)

• Once completed the expanded dam will reduce the likelihood of dirty water

discharges to LT Creek from LDP002.

19

SREA Clean Water Diversion Drain

20

Completed diversion drain Diversion drain following a rain event

www.centennialcoal.com.au

Noise Management

22

New Locomotive Trial – January 2011

Centennial is purchasing new quieter trains. It should only require 3 trains to haul loads rather than the current 6.

Proposed Noise Bund Wall at Rail Loop

23

Proposed Noise Cladding of the Washery

24

www.centennialcoal.com.au

Sponsorships & Donations

Our sponsorship ethos

26

Local Sponsorships:

• Centennial views sponsorships as an investment in the communities

where we do business. We support:

• ‘grass-roots’ community based organisations in the areas in which we
• perate with a priority on those activities which promote community

engagement by our workforce

• local parochialism (western side of Lake Macquarie)
• We don’t support cheque book diplomacy.

27

Our community activities and support

Sporting activities and organisations Education Cultural festivals Community

• rganisations

The process

Step one

• Community group submits sponsorship proposal to

Centennial Coal

Step two

• Consultation between Centennial’s relevant
• peration and External Affairs

Step three

• Level of support is agreed, consultation with the

community organisation begins

Step four

• Centennial works with the community organisation

to deliver the agreed level of support

28

Voluntary Planning Agreements (VPA)

• A VPA forms part of the conditions of consent when the Department of Planning

grants an approval for a project. The project proponent may/must enter into a VPA with the Local Government Area in which its project is proposed. How the VPA is structured will be negotiated between the Proponent and the Council and will have a clear link between the project and its potential impacts on the local area.

• In the case of a project like the Newstan Lochiel Project, Lake Macquarie City Council

would negotiate with Centennial Coal and both parties will agree on the terms of the VPA.

• The NSW Government is currently reviewing the VPA process to ensure there is a

transparent and consistent approach to avoid any perceived conflicts of interest. An

• utcome to this review is expected in the second half of this year.
• As a member of the community or a community group now is the time to start

identifying local projects that could be a beneficiary of a VPA and work with the Council to gain community consensus. This will ensure, for example, projects linked to LT Creek are recognised as a high priority by Council and are supported by the community and could therefore benefit from any future VPA.

29

• Below is an example of the most recent VPA Centennial Coal

negotiated with Mid-western Regional Council for a continuation of mining project at the Charbon Colliery located near Rylstone and Kandos.

• Charbon’s 2010 Voluntary Planning Agreement:

– $210k contribution toward the Carwell Creek Bridge (paid August 2011) – $50k community facilities contribution (one off payment) – $0.01 per ROM tonne per annum – annual community payment (approx. $12k annually) – the above 2 payments can only be used in the Rylstone, Kandos, Clandulla and Charbon communities – $75k road maintenance bond

30

Voluntary Planning Agreements (VPA)

Newstan Community Hotline Newstan Community Hotline 1800 247 662

31