Gloucester Resources Limited Rocky Hill Coal Projectipcn.nsw.gov.au/resources/pac/media/files/pac/projects/2017/10/... · design and operational ... throughout life of mine • Sealed

Gloucester Resources Limited

Rocky Hill Coal Project

Presentation to:

NSW Planning Assessment Commission

November 2017

27th July 2017

Introduction

Project Overview

2006-11

• GRL granted ELs 6523, 6524, 6563

• Initial drilling by GRL

• >200 drill holes

• Identification of high quality coking coal resource in the south-eastern corner of EL 6523

2012

• January 2012 –Application for Director-General’s Requirements (DGRs) for the Rocky Hill Coal Project

• March 2012 –Planning Focus Meeting

• April 2012 – DGRs issued

2013-14

• August 2013 –Development Application (DA)/ Environmental Impact Statement (EIS) lodged

• September /October 2013 – EIS exhibited

• 1,700 submissions

• Government agencies (13)

• Special interest groups (18)

• Individual

• About 570 from Gloucester area

• April 2014 –Response to Submissions

2015

• June 2015 – DPE assessment of 2013 application “on hold” pending GRL’s investigation of design and operational refinements

• December 2015 –agreement reached for processing and despatch of RHCP coal using existing approved Stratford Mining Complex facilities.

2016

• Preparation of amended Environmental Impact Statement. All prior studies updated

• Extensive environmental assessment over more than 5 years resulting in the Amended Project

• The Amended Project responded to perceived noise, dust and visual impacts as well as other community concerns

• Result = a small yet important minimal impact mine

Rocky Hill Has Undergone Significant Design

Change

Original Design New Design

Construction Phase

• 10 months in duration

• up to 60 personnel

Production Phase

• 16 year duration

• up to 110 personnel (75% local by the end of year 3)

• 21Mt ROM, up to max 2Mtpa

• 95% Metallurgical coal

Final Rehabilitation

• 2-3 year duration

Rocky Hill Amended Project Overview

2,286 Objections to the amended Rocky Hill Project were received

• 1,700 Objections (74%) were outside of Gloucester

• 586 were from Gloucester,

– with only 226 being individual objections.

• 86.4% of Gloucester residents neither supported or objected to the project.

Public Submissions

Numbers based on ABS Census from 2015(Total population of Gloucester = 5160)

Project represents best practice• Compliance with all non-discretionary development standards

• Rehabilitated landscape that mimics the original landscape

• No final void

• Unique cooperation agreement with dairy farm resulting in increased agricultural production

• Generous Community Grants Program

• Excellent and ongoing community engagement

• Voluntary Price Protection Initiative

• Maximisation of existing infrastructure

• Strong economic benefits – employment of up to 110 workers and royalty payments of $63.4 million (NPV – undiscounted value is $144 million)

• Agreement with adjoining/nearby landowners

Local and Regional Benefits

Direct Benefits of Rocky Hill Coal Project

Target of 75% local employment (110 full-time at peak or an average of 73 full-time local) at the end of Year 3 of operations

1.

2.

4.

3.

Generation of wages of approx. $9M per annum

Non-labour spending of $65M per annum during production with an estimated $48M of this spent locally

Payment of additional local rates of more than $5.6M over project or an increase of 520% over current land rates

State Benefits

Direct Benefits of Rocky Hill Coal Project

Payments estimated to be $144M in royalties (undiscounted value – NPV$63.4M)

Payments estimated to be $47M in corporate tax (undiscounted value –portion attributable to NSW)

Payments estimated to be $146M in taxes (undiscounted value)

Commonwealth Benefit

DPE Report - Noise Impacts

• Short term noise impacts from construction (deemed to be acceptable)

• Compliance with the most stringent category of Rural amenity during the Day and Evening periods

• No cumulative noise impacts predicted

• VLAMP satisfied - negotiated agreement reached with the owners of Property 6

• Majority of mitigation measures considered ‘best practice’

• Multi-layered noise management measures are achievable

Noise Mitigation Activities

• Use of existing coal processing, stockpiling and train loading infrastructure at the Stratford Mine

• Tailored operation hours – to suit residents– adaptable to weather conditions– no night time operations

• Noise-attenuated plant and equipment

• Establishment of noise amenity barriers

• Continuous real-time noise and meteorological monitoring

• Placement of processing equipment as far as possible from town. Bunded for acoustic and visual protection

• Sufficient down-time factored to hours/days sought to reflect production losses due to adverse conditions

Reduction of Noise Impacts

Activity Days* Hours

Mining (Year 1 to 3) Monday – Saturday 7:00am – 6:00pm

Mining (Year 4 onwards) Monday – Saturday 7:00am – 10:00pm

Breaker Station Operations Monday – Saturday 7:00am – 6:00pm

Coal Haulage (via Private Haul Road)

Monday – Saturday 7:00am – 6:00pm

Maintenance Monday – SaturdaySunday Monday – Sunday

7:00am – 10:00pm 8:00am – 10:00pm All other hours**

* Public Holidays excluded *** If activities are not audible at privately-owned residences / receivers.

Hours of Operation

DPE Report - Air Quality Impacts

• Potential air quality impacts are well within the relevant assessment criteria for particulate matter (also meets the more stringent criteria published in 2017)

• Predicted PM10 cumulative impacts less than half the acceptable criteria

• Implementation of mitigation and management strategies would allow mining operations to be undertaken in accordance with both best practice dust management measures and all air quality emission limits

• Blast fumes and spontaneous combustion are avoidable

Dust Mitigation• Amenity barrier

• Continual use of dust suppression techniques

• Real time dust monitoring equipment and responsiveness throughout life of mine

• Sealed private haul road and the use of road-registered coal haulage vehicles

• Predictive meteorological forecasting in response

• Operational adjustment of operations to forecasting and monitoring

• Placement of processing equipment as far as possible from town . Bunded for acoustic and visual protection

Mitigation of Dust Impacts

DPE Report - Incompatible Land Use

• Project is permissible under Mining SEPP

• Inconsistent with strategic land use zonings

• Land use conflicts with

– rural residential

– tourism land uses

– agricultural and agribusiness

• Concern about maintenance of road infrastructure

Residential Impact Mitigation

Partnership with adjoining Speldon dairy operation

Relinquishment of sections of Exploration licences close to Gloucester

Reduction of impacts on residents and industry has been achieved by:

Voluntary price protection initiative

EL Relinquishment

Original EL6523

Original EL6523 area as granted in 2006 was 5,525ha

2012 relinquishment was of 1,966ha to create a non-mining buffer around the Gloucester township

and protect the scenic attributes

2012 Relinquishment

2018 Relinquishment

Planned/committed 2018 relinquishment is approx. 600ha to confirm that there would be no planned

mining east of Gloucester

Speldon Co-existence Model

Long Term Lease

Preserves significant area of the existing residential views of agricultural activities

Ensuring ongoing agricultural production of GRL-owned land

Helps support local industry (is currently one of the largest agricultural employers in

Gloucester)

Key Attributes • Increased dairy yield

- Under the developed model the Speldon dairy has increased its milking herd from approx. 500 to more than 700 head

• Speldon will maintain current employment levels throughout life of mine

• Farming operation will work alongside changing mining footprint

• Life of mine agreement allows operator to invest capital into the leased property

• Environmental Management System in place• Water sharing arrangement

Co-existence model has full support and sign-off by Dairy Connect

Speldon Co-existence Model

DPE Report - Visual Impacts

• Visual impacts on local residents, travellers and tourists throughout the life of the mine

• Scenic quality of Gloucester = drawcard for tourism industry

• Amenity barriers are considered to be an intrusion into the existing landscape

• DPE acknowledges that:

– earthen barriers are in use at many other mines to shield the visual impacts of mining operations

– very substantial visual mitigation strategy which has been carefully considered and designed

Amenity Barrier

Visual Impact Mitigation

• Incorporation of natural looking amenity barriers

• Gradients of outer slopes will be consistent with existing surrounding topography

• Minimal mining activities seen by residents throughout life of mine

Views from Grantham Road – Forbesdale Estate

• Mining operations shielded from neighbouring tourist routes and attractions (herb farm and Barrington Tops)

• Amenity barrier removed last (from inside) to fill final void

• Most residences in Forbesdale Estate face northeast, i.e. towards the Speldon diary which will remain operational throughout the life of the Project

Reduction of Visual Impacts

Western and Northern Barrier • 20m-34m in height (western side) and 10-

40m in height (northern side)• Hide mining operations• Reduce noise and dust

Two Eastern Side Interim Barriers• Visually obscure the views of overburden

emplacement • Noise minimisation

Amenity barrier designed to ensure maximum viability of long-term success

Amenity Barrier

Residential Impact Mitigation

Voluntary Price Protection Initiative

Properties are outside any required mitigation boundaries

Recognises that views from some residential properties will change to varying degrees

Offering floor price protection

Naked Eye View

Forbesdale Rural -Residential Estate (looking from the Mine Area)

Forbesdale

Rail line

• Employment generating industries:– Agriculture – 15.5%

– Health care and social assistance – 11.2%

– Retail – 10.1%

– Construction 8.8%

– Accommodation and food services – 7.9%

– Education and training 7.2%

– Mining – 6.6%

– Manufacturing 6.1%

• TOTAL = 66.2% of the employment in Gloucester (only 7.9% relates to tourism industry)

• Total employee income for Gloucester is estimated to be $84M (wages from tourism industry represents $6.6M per annum)

The Amended Project will generate wages of $9M (i.e. almost 1.4 times that of the tourism industry)

NB: Statistics taken from ABS Census

Tourism/Employment

• Formal agreement with Yancoal for the sharing of water licences between the Amended Project and the Stratford Mining Complex

• Agreement provides GRL with a first right of refusal of the Stratford water and infrastructure

• Carry over provisions in the Water Sharing Plan means that there is an ability for sufficient water licence entitlements to be obtained throughout the life of mine for both projects

Water licensing

FinalExistingRehabilitation Benefits Include:

• Return of the disturbed area to a natural looking state similar to the existing landform

• Final landform targeted for agricultural use

• Land use will continue to support strong local agricultural industry (including dairy)

Complete Rehabilitation

Community Grants Program

Contribution of approximately $6.5 million to the local community, at an average of

approximately $400,000 per annum (annual donation derived from $0.50/ product tonne)

Modelled on existing legacy fund

Annual sponsorship of 3 x tertiary education scholarships

Provisions of trade apprenticeships for local youth at the Rocky Hill Coal Project

Provision of competency training and certification on mining-related equipment

Provision of local training and employment for local people through related farming

enterprises

Working with the community

Information centre has remained open and active

Continued weekly community engagement

Sponsorships

Outdoor family cinema

Gloucester show, Chillout Festival, Stroud show

Men’s shed

Support for the community and Council’s The Buckett’s Way upgrade ($8.5M

in state funding)

Working with the community

Questions