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Socio-Economic Baseline and Impact Assessment Wonarah Phosphate Project November 2009

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Socio-Economic Baseline and Impact Assessment Wonarah Phosphate Project November 2009 SOCIO-ECONOMIC BASELINE AND IMPACT ASSESSMENT WONARAH PHOSPHATE PROJECT NOVEMBER 2009 SOCIO-ECONOMIC BASELINE AND IMPACT ASSESSMENT Wonarah Phosphate Project November 2009 CR 9014_11_v3 Coffey Natural Systems Pty Ltd ABN 61 005 041 878 Unit 8, 21 Parap Road Parap NT 0820 Australia T (+61) (8) 8901 1200 F (+61) (8) 8901 1299 coffey.com © Coffey Natural Systems Pty Ltd November 2009 Project director Daniel Moriarty, Tara Halliday Project manager Rebecca Powlett Version: Details: Approved: Date: CR 9014_11_v3 Final for exhibition DM 13/11/2009 Socio-economic Baseline and Impact Assessment Wonarah Phosphate Project CONTENTS 1. INTRODUCTION 1 1.1 Project Proponent 1 1.2 Project Location and Tenure 3 1.2.1 Land Tenure 3 1.2.2 Mining Tenements 3 1.2.3 Aboriginal Land Councils 3 1.3 Study Scope 7 1.3.1 Study Area 7 1.3.2 Key Objectives of the Socio-economic Impact Assessment 7 2. METHOD 9 2.1 Approach to the Socio-economic Impact Assessment 9 2.2 Baseline Characterisation 9 2.3 Stakeholder Interviews 9 2.4 Socio-economic Impact Assessment 10 3. BASELINE CHARACTERISATION 13 3.1 Northern Territory and Darwin Profile 13 3.1.1 Demographic and Economic Profile 13 3.1.2 Services 15 3.2 Tennant Creek and the Barkly Tableland Profile 15 3.2.1 Demographic and Economic Profile 15 3.2.2 Local European History 16 3.2.3 Indigenous Connection to the Land 17 3.2.4 Wunara Community 17 3.2.5 Community Services and Infrastructure 17 3.2.6 Accommodation and Housing 21 3.2.7 Roads and Traffic 26 3.2.8 Similar Projects in the Region 26 3.2.9 Drug and Alcohol Issues 28 3.3 Comparative Profiles 28 4. STAKEHOLDER INTERVIEWS 31 4.1 Stakeholder Identification 31 4.2 Summary of Stakeholder Interviews 32 4.2.1 Project Knowledge and Information 33 4.2.2 Key Stakeholder Issues 33 5. SOCIO-ECONOMIC IMPACT ASSESSMENT 39 5.1 Demographic and Economic Profile 40 5.1.1 Potential Impacts 40 5.1.2 Management and Mitigation Measures 42 5.1.3 Residual Risk Assessment 43 5.2 Community Services and Infrastructure 45 Coffey Natural Systems 9014_11_v3.doc i Socio-economic Baseline and Impact Assessment Wonarah Phosphate Project 5.2.1 Potential Impacts of the Project 45 5.2.2 Management and Mitigation Measures 46 5.2.3 Residual Risk Assessment 46 5.3 Housing and Accommodation 46 5.3.1 Potential Impacts of the Project 46 5.3.2 Management and Mitigation Measures 47 5.3.3 Residual Risk Assessment 47 5.4 Culturally Significant Sites 48 5.4.1 Potential Impacts of the Project 48 5.4.2 Management and Mitigation Measures 48 5.4.3 Residual Risk Assessment 48 5.5 Roads and Traffic 48 5.5.1 Potential Impacts 48 5.5.2 Management and Mitigation Measures 48 5.5.3 Residual Risk Assessment 49 5.6 Drug and Alcohol Issues 49 5.6.1 Potential Impacts 49 5.6.2 Management and Mitigation Measures 50 5.6.3 Residual Risk Assessment 50 6. RECOMMENDATIONS 51 7. CONCLUSION 53 8. REFERENCES 55 Figures 1.1 Location of the Wonarah Phosphate Project 2 1.2 Land tenure 4 3.1 Ore transport route to the multi-user hub 27 4.1 Stakeholder perceptions of project impacts 34 Tables 2.1 Descriptors used to classify likelihood and consequence measures of impact 11 2.2 Qualitative risk analysis matrix 11 3.1 Community profile and demographic indicators 28 5.1 Project aspects relevant to socio-economic impacts 39 5.2 Summary of residual impact assessments 40 Coffey Natural Systems 9014_11_v3.doc ii Socio-economic Baseline and Impact Assessment Wonarah Phosphate Project Plates 3.1 Julalikari Remote Employment Services 18 3.2 Wunara community 18 3.3 Houses within the Wunara community 18 3.4 Communal area within the Wunara community 19 3.5 Basketball court within the Wunara community 19 3.6 Public telephone within the Wunara community 19 3.7 Water storage at the Wunara community 20 3.8 Community bore at the Wunara community 20 3.9 Tennant Creek police station 20 3.10 Tennant Creek fire station 22 3.11 St John Ambulance Barkly Region 22 3.12 RFDS Tennant Creek General Practice 22 3.13 Child care centre in Tennant Creek 23 3.14 Tennant Creek primary school 23 3.15 BEAT office in Tennant Creek 23 3.16 Tennant Food Barn 24 3.17 Main street of Tennant Creek 24 3.18 Typical brick house in Tennant Creek 24 3.19 Typical weatherboard house in Tennant Creek 25 3.20 Typical rendered brick house in Tennant Creek 25 3.21 BRADAAG Sobering Up Shelter 25 Attachments A Stakeholder interview survey questions Coffey Natural Systems 9014_11_v3.doc iii Socio-economic Baseline and Impact Assessment Wonarah Phosphate Project Coffey Natural Systems 9014_11_v3.doc iv Socio-economic Baseline and Impact Assessment Wonarah Phosphate Project 1. INTRODUCTION Minemakers Australia Pty Ltd (Minemakers) proposes to develop the Wonarah Phosphate Project (the project) in the Barkly Tableland of the Northern Territory (Figure 1.1). The project involves the mining of two phosphate deposits, known as ‘Arruwurra’ and ‘Main Zone’. The project has a Joint Ore Reserves Committee (JORC) compliant resource estimate of 399 Mt at 21% phosphorite (P2O5) (15% cut-off grade). The project will be developed over two discrete stages. Stage 1 will involve the mining of the deposits for direct shipping ore (DSO). DSO is of a quality that requires only crushing and screening to meet market requirements. Mining during Stage 1 is expected to occur for approximately ten years, although exploration currently underway may extend this period even further. Production will commence at a rate of 0.5 Mt/a and increase to 3 Mt/a over the first three full years of mining. If and when a decision is made by Minemakers to proceed with Stage 2, Stage 2 will involve an expansion of the mining and processing operations to develop the lower grade ore, i.e., the non- DSO material. If Stage 2 proceeds, it is expected to commence within about five years from commencement of Stage 1 and to continue producing at a rate of 3 Mt/a for a further 40 years. As part of the assessment and approvals process for the project, a characterisation of the socio- economic aspects of the project area and surrounds is required, as well as an assessment of the project’s potential socio-economic impacts and benefits. This report presents this information and also recommends a range of strategies to mitigate potential negative impacts and maximise the benefit of potential positive impacts of the project. 1.1 Project Proponent Minemakers is an Australian company and has been listed on the Australian Stock Exchange (ASX) since October 2006 (ASX code: MAK). The company owns, or has options over, the following mineral projects and prospects, mostly located within Australia: • Wonarah Phosphate Project in the Northern Territory (100% ownership). • Tasmanian tin and tungsten deposits in northeast Tasmania including Storey’s Creek and Aberfoyle (100% ownership). • Moina polymetallic project (fluorspar, magnetite, tungsten, tin, zinc and other base metals) in northwest Tasmania (option to acquire 80% equity). • Port Keats salt target in the Northern Territory (100% ownership). • Fraser iron, iron ore targets in southwest Western Australia (option to purchase 80% ownership). • Sandpiper/Meob offshore Phosphate Project in Namibia The company is also exploring for uranium mineralisation in Tasmania. Coffey Natural Systems 9014_11_v3.doc 1 Socio-economic Baseline and Impact Assessment Wonarah Phosphate Project 1.2 Project Location and Tenure The project is located in the Barkly Tableland of the Northern Territory directly south of the Barkly Highway, approximately 240 km east of Tennant Creek and approximately 960 km southeast of Darwin. The Wunara community is the closest populated area to the project. It is located adjacent to the Barkly Highway and is approximately 10 km to the east of the Mineral Lease boundary (see Figure 1.1). The project area includes the Mineral Lease on the southern side of the Barkly Highway and the northern borefield and water supply pipeline located on Dalmore Downs pastoral lease, to the north of the Barkly Highway. 1.2.1 Land Tenure The land tenure of the project is Northern Territory freehold and the project is located within enhanced freehold portions 3748, 3749 and 3751 to 3754 and the perpetual pastoral lease portion 773 (Figure 1.2). The freehold portions are part of the Arruwurra Aboriginal land, owned by the Arruwurra Aboriginal Corporation. 1.2.2 Mining Tenements Minemakers has applied for the Mineral Lease ML27244 (see Figure 1.2). The project area also encompasses Exploration Licences EL26055, EL26583, EL26583 and EL26586, which are also held by Minemakers. 1.2.3 Aboriginal Land Councils There are four Aboriginal Land Councils in the Northern Territory established as representative bodies under the Commonwealth Aboriginal Land Rights (Northern Territory) Act 1976; these are the: • Northern Land Council. • Central Land Council. • Tiwi Land Council. • Anindilayakwa Land Council. The Aboriginal Land Councils have statutory obligations to the parties they represents under both the Aboriginal Land Rights Act and the Native Title Act 1993, they also have responsibilities under the Pastoral Land Act 1992. The statutory functions of the Aboriginal Land Councils include ensuring that the rights of traditional owners to control access to Aboriginal land are maintained and that native title rights and interests are enhanced and protected. The Aboriginal Land Council’s obligations under the Commonwealth Aboriginal Land Rights (Northern Territory) Act and Native Title Act and include: • Assist Aboriginal people to recover land.
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