Amendment Notice 1

Works Approval Number W5630/2014/1

Works Approval Holder Iron Company (Services) Pty Ltd

ACN 107 201 248

Registered business Level 22, Central Park address 152 – 158 St Georges Terrace WA 6000

Date of amendment 6 October 2016

Prescribed Premises Category 5: Processing or beneficiation of metallic or non-metallic ore; Category 64: Class II or III putrescible landfill site.

Premises Yandicoogina Mine AM70/00274 NEWMAN WA 6753

Amendment The Chief Executive Officer (CEO) of the Department of Environment Regulation (DER) has amended the above works approval in accordance with section 59 of the Environmental Protection Act 1986 as set out in this Amendment Notice.

Date signed: 6 October 2016 Agnes Tay DIRECTOR, STRATEGY AND REFORM an officer delegated under section 20 of the Environmental Protection Act 1986 (WA)

Works Approval: W5630/2014/1 File No: DER2014/00653 Template: 1.3 1

Amendment Notice This notice is issued under section 59 of the Environmental Protection Act 1986 (EP Act) to amend the works approval issued under the EP Act for a prescribed premises as set out below. This notice of amendment is given under section 59B(9) of the EP Act. This notice is limited only to an amendment for Category 5: Processing or beneficiation of metallic or non-metallic ore. No changes to the aspects of the original works approval relating to Category 64: Class II or III putrescible landfill site have been requested by the Works Approval Holder.

Amendment Description On 18 July 2016 Company (Services) Pty Ltd (Works Approval Holder) submitted an application (RTIO, July 2016) to DER for an amendment to the Yandicoogina Iron Ore Mine Works Approval (W5630/2014/1). The amendment application relates to an expansion of existing Waste Fines Cell 3 (WFC 3) to incorporate an additional cell referred to as WFC3A. Table 1 provides a summary of the applicable prescribed premises category changes and the extent of the proposed amendment. Table 1 – Proposed design capacity requested in amendment application

Category Current Design Proposed Design Description of proposed extent Capacity Capacity

5 3 million tonnes 4.1 mtpa period Change and increase to in-pit per annum disposal of waste fines within (mtpa) period Waste Fines Cell 3

64 1,500 tonnes 1,500 tonnes per No change per annum annum

Background W5630/2014/1 was issued on 12 June 2014 for the in-pit construction of WFC3 at the Junction South East (JSE) pit, as well as the construction of a putrescible landfill at the Junction South West (JSW) mining area. Under the Works Approval, WFC3 was to be constructed in two stages with Stage 2 comprising of a lift to Relative Level (RL) 500 on top of the initial (Stage 1) embankments. The Works Approval Holder notified DER in March 2015 that construction of Stage 1 had been completed. DER issued a compliance certificate for Stage 1 dated 4 March 2015. The Works Approval Holder has not yet commenced construction of Stage 2 as it is now intended to first deposit waste fines within WFC3A prior to commencing the lift on WFC3. The Yandicoogina mine site operates under Ministerial Statement (MS) 914, issued under Part IV of the EP Act. The amendment application states that the construction of WFCs within the Junction Central and JSE areas has been assessed and approved as part of MS 914. The Delegated Officer notes that neither MS 914 nor the associated Environmental Protection Authority report specifically mention WFCs or any method of disposing of waste fines.

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Proposed design of WFC3A WFC3A will be located within the JSE pit immediately to the north of WFC3. The final footprint of WFC3A (within the pit) will be approximately 70 hectares (ha). The maximum volume of tailings deposited into WFC3A will be 4.4 million tonnes per annum (mtpa). WFC3A will consist of an interim embankment to the north of WFC 3 and a final embankment located to the north of the interim embankment. Tailings will be deposited into the space between WFC3 and the WFC3A interim embankment until this area reaches capacity. Deposition will then be directed into the void between the WFC3A interim and final embankments. The WFC3A interim embankment will be constructed with an elevation of between RL 460 and RL 465m. The final embankment will be constructed as three lifts with RLs of 470, 478 and 490m respectively.

Other Approvals The Works Approval Holder holds the approvals listed in Table 2 which are relevant to the amendment application. Table 2: Relevant approvals

Legislation Number Approval

Environmental Ministerial Assessed by the Environment Protection Act 1986 - Statement 914 Protection Authority (EPA) under a Part IV Public Environmental Review level of assessment. Conditions 9-1 to 9-5 – regulate long term hydrogeological impacts

Location, environmental siting and potential receptors Table 3 below lists the relevant human receptors in the vicinity of the WFC3A. Table 3: Receptors and distance from prescribed activity

Residential and Sensitive Premises Distance from Prescribed Activity

Phil’s creek accommodation village Approx. 10.5km north-west of WFC 3A.

Marillana Pastoral Station Approx. 25km north-east of WFC 3A. Homestead (Pastoral Lease L3114984, held by BHP Billiton)

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Table 4 below lists the relevant environmental receptors in the vicinity of WFC 3A. Table 4: Environmental receptors and distance from prescribed activity

Environmental receptors Distance from Prescribed Activity

Weeli Wolli Creek Approx. 2.5km south-east of WFC 3A.

Weeli Wolli Spring Approx. 13km south-west of WFC 3A.

Risk assessment

Tables 5 and 6 below apply a basic risk assessment to the potential emissions which may arise from the amendment application. Both tables identify whether these emissions present a material risk requiring regulatory controls.

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Table 5: Risk assessment for proposed amendment during construction

Potential Potential Material Reasoning Potential Emissions Potential Pathway Receptors Impacts risk

Dust: associated with Riparian vegetation Air: Particulate Smothering of No The Delegated Officer considers that the distance to human receptors is too far for health construction activities within Weeli Wolli matter (dust) vegetation impacts to arise. Creek Pilbara vegetation tends to be well adapted to cope with the impact of dust deposition. The Delegated Officer considers that dust may impact upon plant health but is unlikely to cause the death. Therefore, the Delegated Officer considers that the consequence is insignificant. Cat 5 The Delegated Officer considers that, based on the short term nature of the construction Processing or Construction of Waste activities, adverse impacts on vegetation survival will be rare. beneficiation of Fines Cell 3A

Source metallic or non- The Delegated Officer therefore considers the overall risk of dust emissions to be low. metallic ore Noise: associated with N/A Air: Noise N/A No The Delegated Officer notes the lack of sensitive receptors and determines that there is no risk construction activities generated by the of noise impacts operation of vehicles and equipment

Table 6: Risk assessment for proposed amendment during operation

Potential Potential Material Reasoning Potential Emissions Potential Pathway Receptors Impacts risk

Dust: associated with Riparian vegetation Air: Particulate Smothering of No The Delegated Officer considers that the distance to human receptors is too far for health activities from dried within Weeli Wolli matter (dust) vegetation impacts to arise. tailings during Creek operation Pilbara vegetation tends to be well adapted to cope with the impact of dust deposition. The Delegated Officer considers that dust may impact upon plant health but is unlikely to cause the death. Therefore, the Delegated Officer considers that the consequence is insignificant. The Delegated Officer considers that, given the small quantities of dust which may be emitted from the operation the WFC, adverse impacts on vegetation survival will be rare.

Cat 5 The Delegated Officer therefore considers the overall risk of dust emissions to be low.

Processing or Operation of Waste Fines beneficiation of Waste: associated with Terrestrial N/A Physical No The amendment application states that the design of WFC3A will accommodate inflows Cell 3A overtopping or ecosystems, smothering of resulting from the 12 hour Probable Maximum Precipitation (PMP) rainfall event in addition to Source metallic or non- metallic ore embankment failure riparian vegetation, the normal operating pond plus a 0.5m total freeboard. leading to the ecosystems, reduction in water discharge of waste surface water quality The Delegated Officer does not consider the potential overtopping or failure of the WFC to fines outside of the quality present a risk to the environment. WFC3A is an in-pit facility meaning that any tailings released WFC containment from it would still be contained by the rest of the JSE pit. From a safety and structural integrity structure. perspective, the Yandicoogina mine site is regulated by the Department of Mines and Petroleum (DMP) under the Mines Safety and Inspection Act 1994 (MSIA). Tailings pipelines transporting waste fines to WFC3 will be extended to deliver waste fines to WFC3A. These pipelines will be located within the JSE pit and therefore spills or discharges from breaches in the pipeline will not escape into the environment.

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Potential Potential Material Reasoning Potential Emissions Potential Pathway Receptors Impacts risk

Leachate: associated Stygofauna, Land: Infiltration of Health impacts on Yes The amendment application states that the design of WFC3A will incorporate a seepage with seepage from the groundwater leachate groundwater collection system to collect and return water for reuse at the JSE wet plant. Nonetheless, it is WFC into groundwater dependent dependent expected that seepage from the WFC may still occur. ecosystems vegetation and subterranean The Works Approval Holder has advised that two production bores located to the north of fauna exposed to WFC3A are suitable for sampling to monitor water quality. The Works Approval Holder has contaminated confirmed that these bores have been constructed in accordance with the “Minimum Construction Requirements for Water Bores in ” (NUDLC 2012). An existing groundwater. monitoring bore located to the north of WFC3A will also be used to monitor standing groundwater levels. As part of the assessment of the original Works Approval it was acknowledged that geochemical testing of the waste fines produced at Yandicoogina had found them to be non- acid forming. The EPA’s assessment of the Pocket and Billiard expansion proposal (EPA 2016) supports the conclusion that the waste fines generated at Yandicoogina pose a low risk in terms of acid or metalliferous drainage. The Delegated Officer has considered the geochemical and leachability tests undertaken on Yandicoogina waste fines and determined the consequence of impacts to groundwater quality to be minor. Whether a pathway exists for impacted groundwater to reach receptors is unclear. It is possible that leachate may travel towards Weeli Wolli creek and affect groundwater dependent ecosystems in that area. However, considering the influence of dewatering and the likely dilution of any leachate which travels this far, the Delegated Officer considers that it is unlikely that receptors will be impacted. The Delegated Officer therefore considers the overall risk of dust emissions to be moderate

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Groundwater movement Information submitted to support the initial Works Approval application (URS, 2012) described the importance of maintaining groundwater through-flow in the backfilled JSE pits following closure of the mine. The amendment application (RTIO, July 2016) states that an ‘Eastern Embankment’ was included in the design of WFC 3 to ensure a pathway for groundwater around the waste fines which have low hydraulic conductivity and which could be a barrier to groundwater movement. According to the amendment application, hydrological studies undertaken since the grant of the Works Approval have shown that a 10-25m thick layer of Channel Iron Deposit (CID) retained in the base of the JSE pit is sufficient to transmit groundwater under the tailings layer. The WFC3A design therefore does not include an eastern embankment or similar engineered pathway for groundwater. The Delegated Officer notes that conditions 9-1 to 9-5 of MS 914 require the Works Approval Holder to prepare a Mine Closure Plan (MCP) for the Yandicoogina mine site. Condition 9-3(1) states that the MCP shall set out procedures to manage long- term hydrogeological impacts of mining the CID. The Delegated Officer has therefore determined that impacts to groundwater movement, including the discharge of tailings into the JSE pit void, are regulated under Part IV of the EP Act. The Office of the EPA (OEPA) has been informed of these views.

Decision Having considered the proposed amendment to the Works Approval, the Delegated Officer has determined that the construction and operation of WFC3A will not result in emissions which are unacceptable to public health or the environment. The Delegated Officer notes the Works Approval Holder’s view that ‘recent assessment indicates that the deposition of additional waste fines within the proposed WFC3A will not alter the water quality significantly outside of the range previously recorded within the JSE pit’ and ‘the addition of WFC3A is not expected to alter the seepage and groundwater quality from the parameters assessed under the original Works Approval’ (RTIO, July 2016, p.23). In the amendment application the Works Approval Holder has committed to monitoring impacts to groundwater quality and standing water level through a series of existing production and monitoring bores situated around WFC3A. In addition, the monitoring suite is proposed to be expanded to include the major ions Fluoride, Bromide and the metal Vanadium to better trace potential impacts to water quality. A detailed risk review of the licence is being undertaken to align the licence with DER’s new approach towards risk based regulation. Once finalised, this amendment will be included into the revised licence. Changes to the conditions imposed under this Amendment Notice may occur as part of the review. In addition, the review will include the Works Approval Holder’s commitments in relation to groundwater monitoring.

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Amendment History

Instrument Issued Amendment

W5630/2014/1 6 October Amendment Notice 1 – inclusion of WFC3A 2016

Works Approval Holders Comments The Works Approval Holder was provided with the draft Amendment Notice on 29 September 2016. Comments received from the Works Approval Holder have been considered by the Delegated Officer as shown through Appendix 2.

Amendment

1. The works approval is amended by the insertion of condition 1.2.3:

1.2.3 The Works Approval Holder shall construct Waste Fines Cell (WFC) 3A at the locations shown in Figures 2 and 3 in Schedule 1.

2. The works approval is amended by the insertion of the text and figures below into Schedule 1:

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Figure 2: Location of WFC 3A and groundwater bores

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Figure 3: Waste Fines Cells embankment locations (Existing WFC3 embankments in yellow, the WFC3A interim embankment in brown and the WFC3A final embankment in blue)

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Appendix 1: Key Documents

Document Title In text ref Availability

DER, 2015, Guidance Statement: Regulatory Principles. DER 1 Department of Environment Regulation, Perth. 2015

DER, Sept 2015, Guidance Statement on Setting DER 2 conditions. Department of Environment Regulation, 2015a Perth. https://www.der.wa.gov.au/o ur-work/regulatory-reform DER, Nov 2014, Guidance Statement on Licence DER 3 duration. Department of Environment Regulation, Perth. 2014

DER, Sept 2015 Guidance Statement on Licensing and DER 4 works approvals processes. Department of Environment 2015b Regulation, Perth. http://edit.epa.wa.gov.au/EP EPA, Aug 2016, Yandicoogina Iron Ore Project – Pocket ADocLib/Rep%201573%20Y 5 and Billiards South deposits. Report 1573. EPA 2016 andicoogina%20PER%2001 Environmental Protection Authority, Perth 0816.pdf

EPA, Aug 2012, Yandicoogina Iron Ore Project - http://edit.epa.wa.gov.au/EP Expansion to include Junction South West and Oxbow ADocLib/Rep%201448%20Y 6 EPA 2012 Deposits. Report 1448. Environmental Protection andicoogina%20PER%2027 Authority, Perth 0812.pdf

Minister for Environment, Oct 2012, Statement No. 914: Statement that a Proposal may be implemented http://edit.epa.wa.gov.au/EP (pursuant to the provisions of the Environmental 7 MS 914 ADocLib/Statement%20No.% Protection Act 1986) – Yandicoogina Iron Ore Project – 20914.pdf Expansion to include Junction South West and Oxbow Deposits. Government of , Perth.

Minimum Construction Requirements for Water Bores in NUDLC National Uniform Drillers 8 Australia, National Uniform Drillers Licensing Committee 2012 Licensing Committee (NUDLC), February 2012 RTIO, Aug 2015, Hamersley Iron – Yandi Pty Limited: http://www.riotinto.com/docu RTIO, 9 Yandicoogina mine closure plan, RTIO-HSE-0208486. ments/Yandi%20LoM%20Clo Aug 2015 Iron Ore, Perth. sure%20Plan%202015.pdf RTIO, April 2014, Works Approval Application, RTIO, 10 Yandicoogina – Category 5c – Waste Fines Storage DER Records (A748502) April 2014 Facility (WFSF). Rio Tinto Iron Ore, Perth. RTIO, July 2016, Licence Amendment Supporting Documentation. Yandicoogina Operation – RTIO, 11 L7340/1997/9. Works Approval W5630/2014/1 DER Records (A1149709) July 2016. Amendment Request WFC3 expansion to include WFC3A. RTIO-HSE-0289258. Rio Tinto Iron Ore, Perth.

URS, October 2012, Mining Proposal: Waste Fines URS 12 Storage Cell 3 – IMA Pit JSE Yandicoogina Mine. URS DER Records (A733703) 2012 Australia Pty Ltd, East Perth.

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Appendix 2: Summary of Works Approval Holders comments

Comments received Environmental risk DER consideration of risk:

Table 3.1.1 - These Noted, the Delegated The Delegated Officer notes that bores listed in Column 1 Officer misinterpreted the production bores WB14JSE002 [WB14JSE002 and Amendment Application and WB10YRN002 and WB10YRN002] are as stating that bores monitoring bore MB10YRN008 existing production WB14JSE002 and are existing infrastructure and bores that have been WB10YRN002 were new therefore not relevant to this constructed and and not yet constructed. Works Approval amendment. screened appropriately in order to obtain water The Delegated Officer Monitoring requirements in quality samples (as per notes that the Amendment relation to the deposition of waste the "Minimum Application did not fines within WFC3A are being Construction mention monitoring bore assessed as part of DER’s review Requirements for Water MB10YRN008 and that of the Yandicoogina mine site Bores in Australia" this is a new commitment licence (L7340/1997/9). [NUDLC 2012]). from the Works Approval Holder. Any controls which are Given that these are (A) considered necessary to reduce production bores and risks associated with the are unable to provide a operation of WFC3A to standing water level acceptable levels will be imposed reading when pumping, as part of that review. an additional (existing) monitoring bore is proposed to monitor standing water level up gradient of WFC3A - MB10YRN008.

See attached updated Figure.

In summary, no new bores will be constructed. The existing bores proposed are appropriate to monitor any water quality and water level impacts of WFC3A

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