Wollar Initial Suitability Assessment
Advice to the Allocation Steering Committee for Coal
November 2020
NSW Department of Planning, Industry and Environment | dpie.nsw.gov.au
Published by NSW Department of Planning, Industry and Environment dpie.nsw.gov.au Title: Wollar Initial Suitability Assessment Advice to the Allocation Steering Committee for Coal Cover Image: Landscape within the Wollar study area, courtesy of EMM Consulting
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Wollar Initial Suitability Assessment
Executive Summary The NSW Government is considering whether to release an area for coal exploration approximately 40 kilometres northeast of Mudgee in the Mid-Western region of NSW. This area is estimated to have a coal resource of approximately 250 million tonnes.
Prior to a decision on whether or not to release the area (either wholly or in part) for exploration under the Mining Act 1992, the Minister with responsibility for the Mining Act 1992 (the Deputy Premier) must first obtain advice from the Allocation Steering Committee for Coal (ASCC).
In giving this advice, the ASCC must consider the strategic and economic importance of the coal resource and relevant environmental, social and economic matters associated with the extraction of the resource, should it be approved.
This Initial Suitability Assessment (ISA) has been prepared by the NSW Department of Planning, Industry and Environment (the Department) to assist the ASCC in regard to the consideration of environmental, social and economic matters relating to the potential release of this area for coal exploration and/or production.
If the Deputy Premier (and subsequently the NSW Cabinet) elects to proceed with inviting applications for exploration in the release area, any exploration licence would be granted under the Mining Act 1992. Any future proposed coal mining project would be subject to a detailed merit assessment under the Environmental Planning and Assessment Act 1979, including formal community consultation.
This ISA has considered general development scenarios that could flow from the release of the area for coal exploration, and identified the key issues associated with exploration and development of the resource by open cut mining methods.
In preparing this ISA, the Department has visited the area, reviewed existing Government data sources and consulted with local and State Government agencies.
Based on this assessment, the Department has not identified any fundamental environmental, social or economic constraints or barriers that would preclude the release of this area for coal exploration and/or production. To this end, the Department notes that:
• almost all the land in the area is owned by mining companies and there are only a small number of privately owned residences that are not tenanted by mine workers;
• mining is a significant socio-economic contributor to the region and the release of the area is likely to extend the benefits of mining in the region and the State as a whole;
• the resource is strategically significant and would support ongoing export and local electricity generation as identified in the NSW Government’s Strategic Statement on Coal Exploration and Mining;
• any greenhouse gas emissions associated with extraction and development of the coal resource are likely to occur irrespective of the weather the area is released as there will continue to be a demand for coal export and domestic electricity generation for the next few decades;
• groundwater and surface water resources are not widely used in the area and are not highly productive;
• agricultural land within the area is not highly productive and is used mainly for grazing purposes;
• there is good access to the area by the existing road and rail network; and
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• impacts on significant Aboriginal Heritage sites, including a ceremonial and dreaming site, sites with art and grinding groove sites, are likely to be avoidable.
While coal exploration and/or production activities would undoubtedly result in a range of residual impacts in the potential release area, the Department has concluded that the existing regulatory and planning framework is sufficiently robust to protect areas of high significant, and to ensure that any impacts associated with coal exploration and/or production comply with Government policies, guidelines and standards and are appropriately minimised and managed.
If the area is released for exploration, the Department has identified several issues that require further consideration and should be considered in any exploration or development assessment process.
These issues include:
• the need to avoid, minimise and offset any impacts on EEC’s and threatened species, including Regent Honeyeater habitat, in accordance with the NSW Biodiversity Offsets Scheme; • the need to avoid and manage impacts to the heritage and biodiversity conservation values of the adjoining Goulburn River National Park; • the need to manage potential impacts to surface water quality and flow regimes, particularly within the Goulburn River; • the need for open and transparent communication with the Wollar community so they can plan for the implications of any future development; • the need to avoid impacts on significant Aboriginal Heritage sites as part of any exploration (i.e. the ceremonial and dreaming site, sites with art and grinding groove sites); and • the need to consider any cumulative harm to Aboriginal cultural heritage as a result of any mining development in consultation with the Aboriginal community, including measures that could be implemented to mitigate any cumulative impacts (e.g. measures that would preserve or enhance the knowledge of aboriginal heritage values in the region). With these measures in place, the Department considers the proposed area is suitable for release for coal exploration.
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Contents Executive Summary ...... 2 1 Introduction ...... 5 1.1 Competitive Allocation Pathway for Coal ...... 5 1.2 Initial Suitability Assessment ...... 5 1.3 Potential Release Area ...... 6 2. Overview of the Coal Resource ...... 7 2.1 Coal Resource Potential ...... 7 2.2 Previous Exploration ...... 7 2.3 Development Scenarios ...... 8 3. Strategic Planning Context ...... 9 3.1 Regional and Sub-Regional Context ...... 9 3.2 Wollar Village ...... 10 3.3 Western Coalfield ...... 10 3.4 Study Area ...... 12 3.5 Central West and Orana Regional Plan ...... 12 3.6 Strategic Statement on Coal Exploration and Mining ...... 12 3.7 Climate Change Policy Framework ...... 12 3.8 Regulatory and Planning Framework ...... 14 4. Stakeholder Engagement...... 15 4.1 Agency Workshop ...... 15 5. Preliminary Assessment of Environmental, Social and Economic Matters ...... 15 5.1 Introduction ...... 15 5.2 Biodiversity ...... 16 5.3 Areas of Conservation Value ...... 21 5.4 Land Capability ...... 21 5.5 Aboriginal Cultural Heritage ...... 22 5.6 European Heritage ...... 24 5.7 Groundwater ...... 25 5.8 Groundwater Dependent Ecosystems and Aquatic Fauna ...... 27 5.9 Surface Water ...... 27 5.10 Social and Economic Considerations ...... 29 5.11 Potential Impacts to Health and Amenity of Local Communities ...... 30 5.12 Greenhouse Gas Emissions ...... 31 5.13 Strategic Resource Significance ...... 31 5.14 Availability and Access to Infrastructure and Utilities ...... 31 5.15 Other Industries and Land Uses ...... 32 6. Findings and Considerations ...... 32
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1 Introduction
1.1 Competitive Allocation Pathway for Coal The New South Wales (NSW) Government’s Strategic Framework for Coal and Petroleum Exploration allows for controlled strategic release and competitive allocation of resource exploration titles in NSW for coal and petroleum. This framework sets out the process for conducting a Preliminary Regional Issues Assessment (PRIA).
In May 2020, Cabinet approved the establishment of a new pathway for competitively allocating certain coal areas for exploration, which would be used in addition to the Strategic Release Framework. This pathway (known as the ‘Competitive Allocation’ pathway) would be used for areas where an operational allocation exploration licence application is unsuccessful because there are other parties interested in exploring the area, as has been the case with the potential release area near Wollar.
A new committee has been established to oversee the competitive allocation framework consisting of representatives from the Department of Regional NSW (DRSNW), NSW Treasury and the NSW Department of Planning, Industry and Environment (the Department).
This committee, known as the Allocation Steering Committee for Coal (ASCC), will make a recommendation to the Minister with responsibility of the Mining Act 1992 (the Deputy Premier) on whether the areas should be released (either wholly or in part). In making this recommendation, the ASCC will consider an initial resource assessment prepared by DRNSW and this Initial Suitability Assessment.
1.2 Initial Suitability Assessment This Initial Suitability Assessment (ISA) has been prepared in accordance with the Guideline for the Competitive Allocation of Coal but is also generally consistent with the approach for conducting a Preliminary Regional Issues Assessment in regard to the identification of potential social, environmental and economic constraints or barriers associated with releasing new areas for coal exploration and/or production.
The ISA is principally a desktop study that relies on available data obtained from relevant local, State and Commonwealth authorities and does not include community consultation (noting that any future development of the resource would require extensive consultation in the planning process).
The ISA is focussed on:
• collecting relevant data to identify key issues, opportunities and constraints associated with releasing the areas for coal exploration and/or production;
• validating these findings with relevant local and State government agencies; and
• examining the potential issues identified to inform the decision-makers on whether or not to release the areas for exploration, and the terms of any release.
If the Deputy Premier (and subsequently the NSW Cabinet) elect to proceed with inviting applications for exploration licences in the release area, any exploration licence would be granted under the Mining Act 1992 (see Section 3.8).
Any future proposed coal production would also be subject to a comprehensive triple-bottom-line merit assessment under the Environmental Planning and Assessment Act 1979 (EP&A Act), including extensive consultation with the community and government agencies and detailed technical environmental assessment (see Section 3.8).
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1.3 Potential Release Area The potential release area is located around 40 km northeast of Mudgee in the Mid-Western region of NSW and surrounds but does not include the Village of Wollar. The area covers approximately 80 square kilometres and is located in close proximity to other major open cut and underground coal mining projects including the Wilpinjong, Moolarben and Ulan Coal Mines.
The extent of the potential release area is shown in Figure 1.
Figure 1 | Potential Release Area
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2. Overview of the Coal Resource
2.1 Coal Resource Potential There are a number of factors which constrain resource potential, including the depth of the resource, its thickness and continuity, its ash content, and any faults that may lie beneath the ground which may affect the ability to mine the coal.
A conservative resource assessment was completed by DRNSW which considers some of these factors at a high level. This study shows potential for mineable coal resource in the potential release area of approximately 250 million tonnes.
These estimates are preliminary and extensive exploration and mine design, which considers a detailed assessment of social, environmental and economic matters, would be required to determine the mineable coal reserve.
The resource assessment identifies the coal stratigraphy of the area to include the Charbon and Cullen Bullen Subgroups. Any future exploration or mining would target the Ulan Seam.
The coal within these seams is all relatively shallow and could be mined with a strip ratio of approximately 10:1. This means the resource would be mined by open cut methods if released for exploration and development.
The ash content of the coal is estimated to between 23% and 27% which is similar to coal mined in other parts of the Western coalfields. This would make it suitable for thermal coal export and domestic power supply purposes.
2.2 Previous Exploration A significant amount of exploration has occurred in the region over the last 20 years which has been focussed on operating or proposed mines in the area including the Wilpinjong Coal Mine and the Bylong Coal Project, which was refused by the Independent Planning Commission in 2019 (see Figure 2).
The NSW Government conducted coal resource assessment drilling programs across the Western Coalfield during the 1970’s and 1980’s, which identified the unallocated coal resources in the area.
Subsequently, in early 2005, a broad based study was undertaken to assess the coal resources of a large area extending from the western edge of the Hunter Valley in the east, Dunedoo in the west, the Liverpool Ranges in the north, and Rylstone in the south. The study also assessed the existing regional, mine related infrastructure and the potential for the development of unallocated exploration areas.
Further assessments, including the drilling of 100 partially cored holes, were undertaken in the region between 2007-2011. Five holes were drilled in the Wollar resource area during this period to supplement drilling from the 1980’s.
While the amount of geological data is sufficient for regional resource estimation and planning purposes, a significant amount of additional exploration work would be required to allow for mine planning, feasibility studies and eventual mine development, should the area be released for exploration.
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Potential Release Area
Coal Bores
Figure 2 | Previous exploration drilling in and around the potential release area
2.3 Development Scenarios Exploration
The purpose of exploration within the potential resource area would be to locate areas where coal resources may be present, to establish the quality and quantity of those resources and to investigate the viability of extracting the resource.
The nature and location of any exploration activities would be determined by the tenement holder and would likely be conducted in stages. Initial exploration generally involves activities with limited disturbance, such as airborne and ground-based surveys. Exploration drilling would also be conducted if the initial exploration activities indicate that further exploration is warranted.
The tenement holder would need to obtain relevant approvals for exploration activities under Part 5 of the EP&A Act (see Section 3.8).
Production
As this ISA occurs at an early stage in the evaluation of a potential coal resource, knowledge of the likelihood and nature of any future coal extraction and production is limited.
Due to the estimated strip ratio, the development of the potential coal resource is likely to be via open cut mining methods.
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Development of an open cut mine within the potential release areas could be anticipated to involve:
• development of several open cut pits; • elevated emplacements to store waste rock; • coal handling and preparation infrastructure; • water management systems and structures; • connection to the Gulgong to Sandy Hollow Railway; and • other supporting infrastructure and utilities.
However, given the location of the resource adjacent to operational open cut coal mines, the development of the resource may utilise existing coal processing, handling and transportation infrastructure at nearby mines.
3. Strategic Planning Context
3.1 Regional and Sub-Regional Context The potential release area is located in the Mid-Western Regional local government area. The local government area covers approximately 9,000 km2 and has a population of more than 24,000. The major population centres in the region are Gulgong (population of approximately 2,500) and Mudgee (population of approximately 10,000) which are located 40 km southwest and 40 km west of the potential release area, respectively.
The regional economy is driven by coal mining, manufacturing, agriculture, forestry and fishing. Mining accounts for 15% of employment, followed by retail services at 11.9% and agriculture at 10%.
Land use in and around the potential release area is characterised by a combination of mining, agriculture, rural residential, and conservation uses.
The Goulburn River National Park, which adjoins the northern extent of the potential release area, and the nearby Munghorn Nature Gap Reserve are regionally significant conservation areas with important biodiversity and Aboriginal cultural heritage values.
The Gulgong to Sandy Hollow railway line traverses the study area in an east-west orientation. The mines in the area (see Section 3.3) all connect to the rail line to transport coal to the Port of Newcastle.
The potential release area is accessible by the regional road network which comprises four important roads – Ulan Road, Ulan-Wollar Road, Wollar Road and Barigan Road.
Ulan Road provides a link between Mudgee and Ulan and serves as the primary access route for all the regional mine traffic heading to and from Mudgee. The three operating mines currently contribute to upgrades and maintenance of Ulan Road.
The Ulan-Wollar Road is a key access road and traverses the northern part of the study area. This road has recently been realigned and sealed to accommodate the expansion of the Wilpinjong Coal Mine.
Wollar Road provides a regional connection between Bylong, Wollar and Mudgee and passes through the potential release area. The eastern section of Wollar Road has been recently sealed and upgraded to support the development of the Bylong Coal Project, noting that this project has now been refused.
Finally, Barigan Road is an unsealed road which provides access to the rural properties in the potential release area. Sections of Barigan Road are being upgraded to facilitate the construction of the Wollar Solar Farm. The solar farm, which will have a generating capacity of up to 290 megawatts, was approved in February 2020 and is yet to be constructed.
TransGrid’s Wollar 500/330kV substation and an existing 330 kV electricity transmission line are also located in the potential release area.
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3.2 Wollar Village The potential release area surrounds the village of Wollar. Wollar is a small village comprising 23 residential dwellings, a community hall, and a local store.
The population of the village, and the Wollar community as a whole, has declined significantly since 2006 with Wilpinjong Coal Pty Ltd (WCPL) purchasing a large number of residences in connection with the Wilpinjong Coal Mine. As a result of these purchases, WCPL now owns all privately owned properties in the village apart from one residential property, and one parcel of land that does not include a dwelling.
The population of the broader Wollar area is now largely comprised of employees of the Wilpinjong Coal Mine. There are 61 properties in the broader Wollar area, of which 43 are owned and occupied by Peabody and its employees.
The declining population has also affected the viability of services in the area. For example, the Wollar Public School closed in 2018, two churches have been purchased by WCPL and are no longer operating, the local Rural Fire Service (RFS) has closed and amalgamated with the neighbouring RFS and local health services no longer operate. WCPL currently subsidise the Wollar General Store to keep it operating, however, it has indicated that this is unlikely to continue.
3.3 Western Coalfield The potential release area is located in close proximity to the Wilpinjong Coal Mine, the Moolarben Coal Mine and the Ulan Coal Mine which form a large coal mining complex (see Figure 3) that first commenced in the 1920’s.
Collectively, the three mines have approval to extract up to 60 million tonnes of coal a year, process it at their coal washeries and transport it to domestic and export markets via the Sandy Hollow Railway. This represents approximately 20% of the coal produced in NSW.
The Wilpinjong Coal Mine is owned and operated by WCPL. The mine is located immediately west of the northern extent of the potential release area. Mining operations were first approved in 2009 and the mine currently has approval to extract up to 16 million tonnes of run-of-mine (ROM) coal a year until 2033.
The Moolarben Coal Mine is owned and operated by Yancoal (Australia) Pty Limited and adjoins Wilpinjong’s northern boundary. Moolarben comprises an open-cut and underground mine and has approval to extract up to 24 million tonnes of coal a year until 2033.
The Ulan Coal Mine is owned and operated by Glencore. It is located west of the Moolarben Coal Mine. It is an underground longwall mine which originally commenced operations as an open-cut mine in the 1960s. The mine is approved to extract up to 20 million tonnes of coal per annum until 2039.
The potential release area is also located approximately 15 km west of the Bylong Coal Project. KEPCO Bylong Australia Pty Ltd (KEPCO) proposed to develop the Bylong Coal Project including an open cut and underground mine to recover approximately 124 million tonnes of ROM coal over a period of 25 years.
On 18 September 2019, the Independent Planning Commission of NSW refused the project as it found that: • the groundwater impacts would be unacceptable; • impacted Biophysical Strategic Agricultural Land (BSAL) would not be able to be rehabilitated post- mining; • the rehabilitated landscape would not retain the aesthetic, scenic, heritage and natural values of the site; and • greenhouse gas aspects of the project would contribute to climate change. KEPCO is currently appealing the decision in the Land and Environment Court.
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Figure 3 | Approved coal mines in the region
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3.4 Study Area The relevant study area has been defined as shown in Figure 4. This area largely aligns with the potential release area but has been extended to include the Village of Wollar (which is excluded from the potential release area). Where relevant, the Department has also considered regionally significant features located outside the area and has extended the distance for some assessments, including a 5 km buffer for the assessment of water resources.
The majority of the land within the study area is owned by WCPL, which owns and operates the adjacent Wilpinjong Coal Mine. However, there are a small number of land parcels in the centre of the study area that relate to the Wollar Solar Farm and TransGrid’s Wollar substation, as well as some areas of Crown Land.
A small number of rural residences are present within the study area, which are connected by unsealed access roads.
3.5 Central West and Orana Regional Plan The Central West and Orana Regional Plan 2036 sets out the strategic vision for the Central West Orana Region which includes the Mid-Western Regional local government area.
The Regional Plan is based on four key goals: a diverse regional economy; stronger healthier environment and diverse heritage; quality freight transport and infrastructure networks; and dynamic and vibrant communities. These goals are to be achieved by delivering on a range of directions and actions set out in the Regional Plan.
Importantly, Direction 8 of the Regional Plan encourages the sustainable management of mineral resources and the protection of infrastructure that facilitates mining.
3.6 Strategic Statement on Coal Exploration and Mining The NSW Government’s Strategic Statement on Coal Exploration and Mining in NSW states the importance of mining to the State, regional and local economies.
It reports that many regional communities in NSW depend on the coal industry, which provides over 22,000 direct jobs and around 89,000 indirect jobs. Coal is also important to the State as its largest export commodity and a major source of revenue which is used to help fund public services and infrastructure.
The statement outlines the global outlook for coal and how NSW can sustainably develop coal resources to realise the regional economic benefits while recognising the longer-term future transition to alternative energy sources such as wind and solar energy.
Furthermore, the statement considers that coal mining for export purposes will continue to have an important role for NSW for the next two decades or more.
To this end, the NSW Government has identified that 12 areas near the existing developed coalfields that should be considered for future development. The potential release area is included as an area as having potential to be released for coal exploration.
3.7 Climate Change Policy Framework The NSW Climate Change Policy Framework, released in November 2016, defines the NSW Government’s role in reducing carbon emissions and adapting to the impacts of climate change, and sets policy directions to guide implementation of the framework.
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Figure 4 | Study Area
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As part of the NSW Climate Change Policy Framework, the NSW Government endorses the United Nations Paris Agreement on climate change. The NSW Government is taking action that is consistent with the level of effort to achieve Australia’s commitments to the Paris Agreement and complements national action.
The NSW Climate Change Policy Framework recognises there are a number of different pathways to reducing greenhouse gas emissions, involving different combinations of action on:
• renewable energy; • energy efficiency; • carbon sequestration; and • emissions savings from other sectors such as agriculture and land use.
Importantly, the Framework does not seek to prevent private development, including mining, as a means for Australia to meet its commitments under the Paris Agreement or the long-term aspirational objective of the Framework.
3.8 Regulatory and Planning Framework Exploration
Before exploring for coal, an explorer must first obtain an exploration licence under the Mining Act 1992 (Mining Act). An application for an exploration activity approval is generally accompanied by a Review of Environmental Factors (REF), which provides information about the specific nature and location of exploration activities and how the environmental impacts of the activity will be controlled. An Environmental Impact Statement (EIS) is required if the activity will significantly affect the environment.
In assessing an application for an exploration activity approval, section 5.5 of the EP&A Act requires the DRNSW to ‘examine and take into account to the fullest extent possible all matters affecting or likely to affect the environment by reason of that activity’, including on any wilderness area in the locality.
Following the completion of the Part 5 assessment process, DRNSW may grant or refuse an application for approval to carry out a particular exploration activity. Any approval will typically be issued subject to terms or conditions. These terms will usually require compliance with any commitments made in an REF. Other terms may require the tenement holder to prepare additional plans, undertake specific mitigating measures or limit the proposed activity in some way to minimise impacts on the environment.
The granting of an exploration licence does not give any right to mine, nor does it guarantee that a planning approval or a mining lease will be granted within the exploration licence area.
Development Consent
All new coal mines are considered to be State significant development, as they are by their nature, major economic developments which are significant from a state-wide social and economic perspective. Coal mining activities are State significant pursuant to clause 5 of the State Environmental Planning Policy (State and Regional Development) 2011.
All State significant development must go through a rigorous assessment process in accordance with the mandatory matters for consideration in Section 4.15 of the EP&A Act. An EIS is required for SSD applications which must be prepared in accordance with requirements issued by the Department and include a detailed assessment of the environmental, social and economic impacts of the proposal. The EIS must also be prepared in consultation with the community and government agencies.
In assessing an application for State significant development, the Department will publicly exhibit the application which allows the community to have a say on the project before a final decision is made.
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For most major mining projects, the Independent Planning Commission is the consent authority and will make the final decision on the merits of a project. Any approval will typically be granted subject to a range of conditions that require the applicant to undertake specific monitoring, management and offsetting measures to minimise and compensate for the residual impacts of the project.
4. Stakeholder Engagement
4.1 Agency Workshop On 5 November 2020, the Department presented preliminary findings of the ISA to an interagency group. This engagement was conducted to validate the findings of relevant environmental, social and economic data on the area of interest for this assessment and to examine whether any additional issues needed to be considered.
The interagency group consisted of representatives from the following local and State government agencies:
• Biodiversity and Conservation Division (BCD); • Crown Lands; • Department of Primary Industries (DPI); • Environment Protection Authority (EPA); • Heritage NSW; • Mid-Western Regional Council; • National Parks and Wildlife Service (NPWS); • Transport for NSW; and • Water Group (DPIE – Water).
The agencies raised matters for inclusion in the study, which related to Aboriginal cultural heritage, biodiversity, groundwater, surface water, agriculture and socio-economic issues. These issues are identified and discussed in Section 5 below.
5. Preliminary Assessment of Environmental, Social and Economic Matters
5.1 Introduction This section considers key environmental, social and economic matters based on available data. Key sources of data that have informed this ISA include:
• feedback government agencies; • the Central West and Orana Regional Plan; • Strategic statement on coal exploration and mining in NSW; • Mid-western Regional Local Environmental Plan and strategic planning documents; • geological data and information from DRNSW; • spatial data on land systems, regional biophysical strategic agricultural land, vegetation mapping, land and soil capability, declared wilderness and State heritage from BCD; • information on catchments, highly productive groundwater, groundwater use and groundwater dependent ecosystems available from DPIE- Water and/or in Water Sharing Plans; • monitoring data on water quantity and quality provided by DPIE – Water and WaterNSW; • information on matters of national environmental significance made publicly available by the Commonwealth Department of Agriculture, Water and the Environment; • information on other major projects, primarily available from the Department of Planning, Industry and Environment’s Major Projects Website; • information on tenements under the Mining Act 1992 from DRNSW; and • information on road upgrades from Transport for NSW.
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5.2 Biodiversity The study area is part of a hilly landscape featuring well-vegetated sandstone ranges and plateau with low cliffs and rock outcrops. The ranges sit above a valley flat, through which Wollar Creek and Barigan Creek drain to the north into the Goulburn River within the Goulburn River National Park.
The valley flat is largely cleared of woody vegetation and supports scattered trees and small patches of remnant vegetation (see Figure 5). The foothills, slopes and ranges within the study area retain woodland and forest vegetation.
Figure 5 | Typical landscape in the study area
State Vegetation Type Mapping for the Upper Hunter region predicts that there are 24 native vegetation communities present within the study area, comprising eight different vegetation classes. Approximately 80% of the total study area includes native vegetation (see Table 2). The remaining area is comprised of exotic pastures, which are confined to the valley flats in areas of agricultural activity.
Shrubby dry sclerophyll forests make up a large portion of the study area (41%) and are largely confined to the upper slopes and ranges, with grassy dry sclerophyll forests also represented on the lower slopes and foothills.
Three threatened ecological communities are mapped within the study (see Table 3 and Figure 6).
Box Gum Woodland is likely to be represented in the study area by several grassy box woodland types. Box Gum Grassy Woodland is also represented by native grasslands derived from the historical clearance of the ecological community. Box Gum Grassy Woodland is listed as a critically endangered ecological community under both the Biodiversity Conservation Act 2016 (BC Act) and the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).
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Table 1 | Vegetation Communities
Vegetation class Number of vegetation communities Percentage of study area mapped
Dry Sclerophyll Forests (Shrub/grass 4 20 sub-formation) Dry Sclerophyll Forests (Shrubby 10 21 sub-formation) Forested Wetlands 1 7 Freshwater Wetlands 1 <1 Grasslands 1 27 Grassy Woodlands 5 4 Semi-arid Woodlands (Shrubby sub- 1 2 formation) Wet Sclerophyll Forests (Grassy 1 <1 sub-formation) Totals (native vegetation) 24 81
Non-native 1 19
Fuzzy Box, which is listed as endangered under the BC Act, is estimated to occur as small and fragmented remnant patches in the northern portion of the study area.
Finally, Slaty Gum Woodland occurs on the slopes and foothills of the ranges within the study area and is listed as vulnerable under the BC Act and critically endangered under the EPBC Act.
There are 19 threatened flora species predicted or known to occur within 10 km of the study area, most were recorded during studies for the Bylong Coal Project and are broadly associated with Goulburn River National Park and Munghorn Gap Nature Reserve, as well as the Wilpinjong and Bylong areas. There are few records of threatened flora and fauna within the study area, however, this is likely to be a reflection of the lack of detailed surveys rather than a true reflection of species presence.
Table 2 | Conservation Status
Threatened ecological Listing under the BC Act Listing under the EPBC Act community Box Gum Grassy White Box - Yellow Box - Blakely’s Red Gum White Box – Yellow Box – Blakely’s Woodland Grassy Woodland and Derived Native Red Gum Grassy Woodland and Grassland in the NSW North Coast, New Derived Native Grassland England Tableland, Nandewar, Brigalow Belt (Critically Endangered Ecological South, Sydney Basin, South Eastern Community) Highlands, NSW South Western Slopes, South East Corner and Riverina Bioregions (Critically Endangered Ecological Community) Fuzzy Box Woodland Fuzzy Box Woodland on alluvial Soils of the Not Listed South Western Slopes, Darling Riverine Plains and Brigalow Belt South Bioregions (Endangered Ecological Community) Slaty Gum Woodland Hunter Valley Footslopes Slaty Gum Central Hunter Valley eucalypt forest Woodland in the Sydney Basin Bioregion and woodland (Vulnerable Ecological Community) (Critically Endangered Ecological Community)
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Figure 6 | Vegetation communities in the study area
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Many of these species are associated with grassland or grassy woodland habitats on the valley floor including River Red Gum and more cryptic species like Austral Toadflax, Small Purple-pea, Pine Donkey Orchid, and Tarango Leek Orchid; while others if present, are more likely to occur in forests on the foothills, slopes and rangelands, including Capertee Stringybark and Scant Pomaderris. These would have potential to occur within the study area based on similarity of broad habitat types.
Predicted fauna species consist primarily of bird species with the highest number of sightings within 10 km of the study area represented by semi-sedentary woodland birds, including Speckled Warbler, Brown Treecreeper, Little Lorikeet and Diamond Firetail. However, other notable threatened fauna species that have been recorded including Brush-tailed Rock Wallaby, Large-eared Pied Bat, Koala, Regent Honeyeater and Glossy Black- cockatoo, the latter three of which have been recorded within the study area within the last eight years.
The regional area includes ‘important areas’ for Regent Honeyeater, including approximately 700 km2 within the Goulburn River National Park and 60 km2 within the Munghorn Nature Gap Reserve. These areas identify land that is considered important to support critical life stages of the Regent Honeyeater, which is listed as a critically endangered under the BC Act and EPBC Act.
The study area is partially covered by ‘important areas’ (see Figure 7) which are associated with woodland vegetation on the upper slopes and ranges and remnant vegetation on the valley floor, including Box-Gum Woodland. The Department notes that these areas are relatively small in context of the large mapped areas in the region, including those in the adjacent Goulburn River National Park.
The study area is also included within a management and conservation site (covering approximately 2,170 km2) for the Regent Honeyeater established under the NSW Government Saving Our Species program. This management and conservation site one of four identified in the program. Collectively, the sites seek to address key threats to the Regent Honeyeater including the loss of habitat, particularly Box Gum Woodlands and fragmentation of habitat due to agricultural land uses.
Given these considerations, any future assessment would need to be accompanied by a detailed assessment of potential impacts on the Regent Honeyeater and its habitat in accordance with applicable guidelines. This assessment would need to consider whether any impacts would cause a further decline of the Regent Honeyeater and/or impact on the habitat of the species.
Notwithstanding the above, it is expected that any open cut mining is likely to avoid the upper slopes and ranges, including much of the mapped ‘important areas’. Consequently, the majority of the Regent Honeyeater habitat native woodland should be able to be avoided. However, impacts to remnant vegetation on the valley floors would be likely to occur if the resource is developed.
From a biodiversity perspective, the Department considers that there are no significant or fundamental constraints to the release of the study area for coal exploration and development, and that potential impacts on biodiversity values could be effectively minimised and/or avoided through appropriate mine design, and residual impacts compensated for through the NSW Biodiversity Offsets Scheme.
However, the Department notes that the study area does include Endangered Ecological Communities and habitat for threatened species listed under both the BC Act and EPBC Act, including habitat for the Regent Honeyeater. To the extent that residual impacts cannot be avoided, this has the potential to result in significant biodiversity offset liabilities for any coal resource development under the Biodiversity Assessment calculator
NSW Department of Planning, Industry and Environment | 19 Wollar Initial Suitability Assessment
Figure 7 | Regent Honeyeater important areas
NSW Department of Planning, Industry and Environment | 20 Wollar Initial Suitability Assessment
5.3 Areas of Conservation Value Although the Goulburn River National Park is excluded from the potential release area, it does adjoin the northern boundary. The Guidelines for developments adjoining land managed by Office of Environment and Heritage note that consent authorities need to consider the following issues when assessing proposals adjoining National Parks:
• erosion and sediment control; • stormwater runoff; • wastewater; • management implications relating to pests, weeds and edge effects; • fire and the location of asset protection zones; • boundary encroachments and access; • visual, odour, noise, vibration, air quality and amenity impacts; • threats to ecological connectivity and groundwater dependent ecosystems; and • cultural heritage.
Any tenement holder would be required to consider these issues as part of the assessment process for any coal exploration or development.
Detailed consideration will need to be given to minimising surface water impacts, including those associated with the discharge of water or diversion of creeks and drainage lines, which is discussed in Section 5.8. Consideration may also need to be given to allocating suitable buffers to exploration and mining activities to avoid any indirect impacts on the National Park Estate, including biodiversity and heritage values.
On the basis that adequate consideration is given to these issues, the Department considers that any significant conflicts with the conservation values of the National Park should be avoidable.
Importantly, the study area does not include land that is constrained by BioBanking or Biodiversity Stewardship agreements established under the now repealed NSW Threatened Species Conservation Act 1995 (TSC Act) or the NSW Biodiversity Conservation Act 2016 (BC Act).
5.4 Land Capability The rural character of the study area is characterised by open pastures in valleys which have been cleared over time as a result of agricultural activities.
Agricultural activities in the study area are run by a single pastoral company which operates a beef cattle farming operation. Cortina is a property within the study area which is home to the Minnamurra Angus herd. The property, which covers an area of 10,000 hectares of improved pastures, is leased to the Minnamurra Pastoral Company by WCPL.
Studies undertaken for other mining projects in the region suggest that the soil profile holds moderate agricultural potential and is Class 4 or Class 5 land capability. Neighbouring areas have been known for sheep production for wool and lambs, with studies showing that limited planting of improved pastures has occurred which has restricted livestock carrying capacity to between 2-5 dry sheep equivalents per hectare.
There is no mapped Biophysical Strategic Agricultural Land (BSAL) within the study area or Viticulture or Equine Critical Industry Clusters (CICs) identified under the Upper Hunter Strategic Regional Land Use Plan.
Notwithstanding, if any portion of the potential release area forms part of a future production project, the proponent would be required to undertake a site verification process under the State Environmental Planning
NSW Department of Planning, Industry and Environment | 21 Wollar Initial Suitability Assessment
Policy (Mining, Petroleum Production and Extractive Industries) 2007 (Mining SEPP) to identify if any of the land is classified as biophysical strategic agricultural land.
If biophysical strategic agricultural land is found to be present, any future development would be required to obtain a ‘gateway certificate’ from the Mining and Petroleum Gateway Panel (which is now a sub-committee of the Independent Planning Commission).
Based on current available information, the Department considers that there are no existing land uses or significant agricultural land in the potential release area that would preclude coal exploration or mining, noting that the vast majority of the land is already owned by a mining company (ie WCPL).
5.5 Aboriginal Cultural Heritage The study area has only been subject to a small number of detailed Aboriginal cultural heritage investigations and consequently a limited amount of information is available.
A search of Heritage NSW’s site database (AHIMS) identifies 166 previously documented Aboriginal sites within the study area, with 95 likely to relate to the Wilpinjong Coal Mine (see Figure 8).
Of the documented sites, 149 are characterised as stone artefacts. However, there are a number of less common site types within the study area, including 3 sites with art, 2 grinding grooves, 7 modified trees and a ceremonial/dreaming site that was recorded at request from the Aboriginal community.
As shown in Figure 8, a large portion of these sites are located near the boundary of the study area, including the ceremonial and dreaming site, 2 of the 3 sites with art and both grinding groove sites. Consequently, direct impacts to these sites are likely to be avoidable if the coal resource were to be developed.
The remaining site with art and all the modified tree sites are located in close proximity to Wollar Village. Since the Village is not included in the potential release area, it is likely that impacts to these items could also be avoided.
The Department notes that extensive archaeological assessments have also occurred both to the east and west of the study area for the Mt Penny Coal Project, the Wilpinjong Coal Mine Extension Project and the Bylong Coal Project.
The investigations identified large numbers of Aboriginal sites including 215 at Mt Penny (1,960 ha); 293 at Wilpinjong (1,275 ha); and 239 at Bylong (2,914 ha). Of the sites documented from the studies, the vast majority are stone artefact scatters of lower significance. However, more significant sites are present in the region, including rock shelters (and associated features such as art), grinding grooves, culturally modified trees and ochre quarries.
Given the close proximity to the study area, and relatively similar landscape features with some of these areas, particularly the Wilpinjong Coal Mine, similar sites may be identified in the study area.
The Department also notes there is some flexibility to avoid or minimise impacts to cultural heritage, particularly at the exploration phase, through consultation with Registered Aboriginal Parties. Furthermore, any exploration and mining in the potential release area would most likely avoid the elevated valley sides, and therefore would not be expected to directly impact rock shelter sites, and other measures could also be implemented including setbacks and blasting limits to further mitigate impacts.
Where impacts to Aboriginal heritage may occur as a result of exploration activities, the tenement holder must obtain an Aboriginal Heritage Impact Permit (AHIP) under the National Parks and Wildlife Act 1974 (NPW Act). The AHIP application process requires a process of consultation with the Aboriginal community.
NSW Department of Planning, Industry and Environment | 22 Wollar Initial Suitability Assessment
Figure 8 | Registered Aboriginal cultural heritage sites
NSW Department of Planning, Industry and Environment | 23 Wollar Initial Suitability Assessment
The potential impacts to Aboriginal heritage as a result of any future coal production activities would also be subject to detailed merit assessment under the State significant development provisions of the EP&A Act, which requires extensive consultation with the Aboriginal community.
The NSW Heritage Council provided input that the cumulative impact on heritage values should be considered as part of any future development of the coal resource.
To this end, the Department notes that a significant number of artefacts have been found and relocated as part of mining at the Ulan, Moolarben and Wilpinjong mines.
To address this issue, the Department recommends that the significant sites identified in the study area be avoided during exploration, if the area is released. This would minimise any significant additional impact on Aboriginal Heritage until a full aboriginal cultural heritage assessment is prepared for the site as part of any future development.
Under the current regulatory and planning framework, this would require any future tenement holder to identify, avoid and manage residual cultural heritage impacts in consultation with the Aboriginal community.
In addition to these requirements, the Department recommends that any future tenement holder:
• consider any cumulative harm to aboriginal cultural heritage as a result of any mining development in consultation with the Aboriginal community; and
• consider measures that could be implemented to mitigate any cumulative impacts including any measures that could preserve or enhance the knowledge of Aboriginal cultural heritage in the region.
With these measures in place, the Department considers that any impacts to Aboriginal Heritage could be appropriately identified, avoided and managed.
5.6 European Heritage A search of the Heritage NSW databases, and the Register of National Estate reveals few listed heritage items in the study area.
Identified items are all primarily within, or in close proximity to the Wollar township, and include St. Laurence O’Toole Catholic Church, St Luke’s Church of England, St Luke’s Anglican Church cemetery – including the church dating to 1914 and cemetery with burials dating as early as 1865 – Wandoona homestead, an unnamed homestead, and Goulburn River National Park.
Given that the majority of heritage items are located in the Wollar village, and are outside the proposed release area, it would be unlikely that any of these would be directly impacted by either coal exploration or future development of the resource. Notwithstanding, any future mining in close proximity to the Wollar Village would have the potential to indirectly impact the curtilage, setting and/or view of these items. A detailed heritage assessment would be required to assess any impacts of this nature, and any future tenement holder would need to avoid and mitigate any significant impacts if they are identified. The Department is satisfied that the current regulatory and planning framework is sufficient to avoid and manage any significant European heritage impacts.
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5.7 Groundwater Review of the hydrological models for nearby mines identifies two distinct groundwater systems within the study area, including:
• a regional porous rock groundwater system associated with the Illawarra coal measures; and • a localised alluvial groundwater system that is primarily associated with the Wilpinjong, Wollar and Barigan Creeks; and
The groundwater systems within the study area have been mapped as “less productive groundwater”.
The hydrogeological models for the Wilpinjong Coal Mine also identify an alluvial aquifer associated with Wilpinjong Creek and lower Wollar Creek. This model concluded that it is unlikely to be ‘highly productive’, as previously mapped by DPIE – Water.
The potential release area does not contain any of the highly productive alluvial aquifers associated with the nearby Bylong Coal Project which are associated with the alluvium in Bylong River and Lee Creek.
Recharge to the groundwater systems is expected to occur from rainfall, runoff infiltration and groundwater flow. Although groundwater levels are sustained by rainfall infiltration, they are controlled by topography, geology and surface water levels in local drainages.
Use of groundwater from these systems is regulated under the Water Management Act 2000 via the Water Sharing Plan for the Hunter Unregulated and Alluvial Sources 2009 and the Water Sharing Plan for the North Coast Fractured and Porous Groundwater Sources 2016.
The North Coast groundwater source is currently 96% allocated, with approximately only 3,450 shares of unassigned water available. However, the yearly usage of this water source (up to 7.4 GL) is low in comparison to the total share component and the water made available (approximately 60 GL) suggesting that much of this allocation is not used.
A review of the Hunter Unregulated and Alluvial Source shows similar trends with a maximum annual water usage (6.6 ML) significantly lower than the share component and water made available (approximately 880 ML).
Any mining activity in the potential release area would need to be accompanied by the appropriate water access licences to account for any water take. DPIE – Water and the Natural Resource Access Regulator (NRAR) raised concerns that water licensing may be an issue as the majority of entitlements are allocated. However, based on historical usage in the relevant water sources, there appears to be sufficient depth in the water market to acquire necessary entitlements.
Registered bore data indicates that there is moderate groundwater use within and around the study area. There are 48 registered groundwater bores within the study, and a further 63 within a 5 km radius (see Figure 9).
Most of the bores within the study area are registered for stock, domestic, general use or irrigation (27 in total) and groundwater is expected to be for livestock and other general uses.
Of the registered bores outside of the study area most are owned by mining companies for monitoring, coal exploration or test purposes (33 in total). The remaining are registered for stock, domestic or irrigation uses.
The Department considers that there are no significant or fundamental groundwater constraints that would preclude the release of the area for exploration or development and that the current regulatory and planning framework is sufficient to manage potential impacts on groundwater resources. This would include the need to obtain water licences under the Water Management Act 2000 and carry out a detailed assessment in accordance with the NSW Aquifer Interference Policy.
NSW Department of Planning, Industry and Environment | 25 Wollar Initial Suitability Assessment
Figure 9 | Registered bores and GDEs in the study area
NSW Department of Planning, Industry and Environment | 26 Wollar Initial Suitability Assessment
5.8 Groundwater Dependent Ecosystems and Aquatic Fauna The relevant Water Sharing Plans do not identify any high priority Groundwater Dependent Ecosystems (GDEs) within 5 km of the study area.
However, a review of the High Ecological Value Ecosystems Vegetation Groundwater Dependent Ecosystems Value – Hunter-Central Rivers dataset indicates that there are areas of moderate to high potential GDEs in the region.
This includes an area of moderate potential for aquatic GDEs approximately 5 km north east of the potential release area and small areas of moderate to high potential for terrestrial GDEs within the centre and southern sections of the study area and to the north and south within a 5 km buffer (see Figure 9). Further studies would need to be undertaken to verify the existence and extent of these GDE’s.
No threatened aquatic ecological community or other threatened fish species listed under the NSW Fisheries Management Act 1994 (FM Act) and the EPBC Act, are relevant to the study area.
However, the following threatened fish species listed under the FM Act are mapped within 10 km of the study area:
• Darling River Hardyhead – endangered population in the Hunter River Catchment – distribution is modelled to occur within the Goulburn River downstream of the study area; and
• Southern Purple Spotted Gudgeon – endangered species – distribution is modelled to occur within the upper reaches of the Cooyal Creek catchment.
Two freshwater fish species (Flathead Galaxias – critically endangered) and Macquarie Perch - endangered) are listed under the EPBC Act are predicted to occur in catchments in the locality.
The Department considers that the GDEs and aquatic fauna species do not represent a constraint to the release of the study area for coal exploration and that the current regulatory and planning framework is sufficient to manage potential impacts of exploration or production activities on groundwater dependent ecosystems and aquatic fauna.
5.9 Surface Water The key surface water feature in the potential release area is Wollar Creek. Major tributaries to Wollar Creek include Wilpinjong Creek, which collects runoff to the west of the study area, and Barigan Creek, which collects runoff from the south of the study area (see Figure 10).
Wollar Creek is ephemeral and enters the southern end of the release area as a 6th order creek, becoming 7th order after meeting Barigan Creek (also 6th order). Wilpinjong Creek is a 6th order creek at its confluence with Wollar Creek.
Wollar Creek discharges to the Goulburn River with a median yearly flow of 2.2 GL/year. At the confluence with the Goulburn River, Wollar Creek tributaries contribute a catchment of 530 km2.
Approximately 18% of the Wollar Creek catchment (100 km2) lies within the potential release area and it is likely that Wollar Creek would need to be diverted to facilitate open cut mining if the area was to be released and subsequently developed.
The Hunter Unregulated and Alluvial Water Sources WSP describe the alluvial groundwater system as being highly connected to surface water and lists the following licenced water uses within the Wollar Creek water source (noting that the water source area is larger than the study area):
NSW Department of Planning, Industry and Environment | 27 Wollar Initial Suitability Assessment
• total surface water entitlement of 78 ML/year (79 per cent for irrigation, 10 per cent for industrial) across 8 surface water licences with peak daily demand of 0.9 ML/day; and
• total groundwater entitlement of 1,354 ML/year (35 per cent for irrigation, 65 per cent for industrial) across 3 groundwater licences.
A future tenement holder would need to obtain appropriate water licences, which may require trading of entitlements. Under the Hunter Unregulated and Alluvial Water Sources WSP, water trades may be made into the Wollar Creek water source only if the trade will not increase the total licenced entitlement for the water source (no net gain trade). If the tenement holder is also the landholder, harvestable rights under the Water Management Act 2000 may apply for surface water collection.
The licenced volumes of surface water within the Wollar Creek water source are small in comparison to the yearly creek flow, and consequently there appears to be sufficient depth in the market to obtain surface water licences.
Figure 10 | Surface water systems
NSW Department of Planning, Industry and Environment | 28 Wollar Initial Suitability Assessment
Water quality sampling and stream health surveys from Wilpinjong Creek, Cumbo Creek and Wollar Creek have shown elevated average salinity levels of 2,300 µS/cm. These levels are higher than the values recommended for the protection of freshwater ecosystems and double the recommend values for livestock use as outlined in the Australian and New Zealand Guidelines for Fresh and Marine Water Quality (ANZECC and ARMCANZ, 2000).
NPWS identified that any future development of the resource would need to consider the water quality impacts on the Goulburn River National Park.
To this end, the Department notes that all three mines operating in the region currently operate reverse osmosis plants to manage salinity of water discharged into the Goulburn River and its tributaries which flow through the National Park. This results in a large quantity of water being discharged into the river, which equates to approximately one third of the annual flow in some places.
If the potential release area is developed in the future, similar mechanisms may be required to manage excess water that accumulates in the mine. These mechanisms would need to be developed in consideration of the cumulative impacts of mining on the Goulburn River, including any impacts on flow and salinity levels.
The Department also notes that the receiving environment, particularly the Hunter River, is sensitive to changes in salinity. To this end, the Hunter River Salinity Trading Scheme operates to minimise the impact of saline water discharges in the Hunter River, of which the Goulburn River is a major tributary.
It is likely that Wollar Creek would need to be diverted to facilitate the development of the resource. Any creek diversion would have the potential to impact downstream users and the receiving environment, including the Goulburn River, as a result of sedimentation and erosion.
Based on the information available, the Department considers that there are no significant constraints to the release of the study area for coal exploration and development.
However, the Department notes that any future tenement holder would need to model any changes to surface water quantity and quality and design any project, including any diversion of Wollar Creek, to minimise impacts on the downstream environment including the Goulburn River and the National Park as part of any future assessment process.
The Department considers that the current regulatory and planning framework, which includes the regulation of water licensing under the Water Management Act 2000, would be sufficient to manage this process.
5.10 Social and Economic Considerations The Department recognises that there have been negative social impacts on the Wollar community over the last decade. These can be attributed to population decline in the village and surrounding areas which has been significantly accelerated by WCPL’s land acquisition strategy for the Wilpinjong Coal Mine.
The Department included an assessment of these impacts in its assessment on the Wilpinjong Extension Project. These include impacts on social infrastructure, social networks, community cohesion and residents’ sense of place.
Since its assessment of this project, further services have closed in the village and WCPL has acquired additional properties such that only one privately owned residence remains in Wollar Village.
It is possible that exploration or development of the potential resource area may further impact the small remaining Wollar community as a result of further land acquisitions and/or the vacancy of mine-owned properties. However, the Department considers that further population declines are likely irrespective of whether the potential release area is released for exploration and development.
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The Department recommends any tenement holder consult closely with the Wollar community on any exploration and development activities to ensure they can plan for the implication of any future development.
If the resource were to be developed, further work would be required to determine the capacity of the local and regional community to manage any social impacts associated with a production project. This would occur, at the appropriate time, as part of a Social Impact Assessment that would be prepared in accordance with the Social Impact Assessment Guideline: For State significant mining, petroleum production and extractive industry development.
On a broader scale, the mining industry is an important element of the Mid-Western Regional LGA’s employment base (around 15%), with approximately 600 personnel employed at the Wilpinjong Coal Mine, 220 employed at Moolarben Coal Mine and 900 employed at Ulan Coal Mine, and is a key part of the regional economy.
Mid-Western Regional Council identified the benefits that the potential release area would bring to the region, if developed, including sustained employment opportunities for the workforce of the Wilpinjong Coal Mine or other nearby mining projects.
The Department also notes that the development of the coal resource would also support regional economic activity and stability, and construction and supply contracts would benefit regional businesses and the regional economy. The State of NSW would also benefit from significant royalties (estimated to be in excess of $500 million in net present value terms) from the development of the resource.
5.11 Potential Impacts to Health and Amenity of Local Communities Given the large-scale acquisitions by WCPL, the study area is sparsely populated. There are around 61 properties in the Wollar area, of which all but 18 are owned by WCPL. Of those owned by WCPL almost half are occupied by mine workers with the remaining occupied by private tenants or the Minnamurra Pastoral Company.
Most of the privately owned properties are located on Mogo Road, approximately 5 km north of the potential release area.
This would allow a tenement holder to design any exploration or development to minimise potential health and amenity impacts on local residents and communities.
Coal exploration and development has the potential to create noise, dust, vibration from blasting and other emissions. This may affect the amenity of people in close proximity to the activities or, if unmitigated, may have health impacts.
The NSW Government has policies and processes to assess, monitor and manage noise, blasting and air quality impacts. This includes the following key policies:
• Approved Methods for the Modelling and Assessment of Air Pollutants in NSW – outlines methods to assess impacts on air quality and impact assessment criteria for common pollutants to protect the amenity, health and safety of people;
• Noise Policy for Industry – provides noise levels for assessing the potential impact of noise from industry and includes a framework for considering feasible and reasonable noise mitigation measures;
• Voluntary Land Acquisition and Mitigation Policy – describes the NSW Government’s policy for voluntary mitigation and land acquisition to address noise and dust (particulate matter) impacts from State significant mining developments; and
NSW Department of Planning, Industry and Environment | 30 Wollar Initial Suitability Assessment
• ANZECC blasting guidelines – provides criteria to address annoyance and discomfort caused by blasting impacts from mining, quarrying and construction.
Assuming the implementation of appropriate mine design and operational controls, the Department considers that the current regulatory and planning framework is sufficient to manage potential noise, blasting and air quality impacts on local communities from any coal exploration and/or development.
5.12 Greenhouse Gas Emissions The context of the potential coal resource in relation to NSW Government’s Climate Change Policy is discussed in Section 3.7.
The potential greenhouse gas emissions associated with exploring or developing the coal resource cannot be reliably quantified with the amount of information available at this stage.
However, based on the Department’s experience, Scope 1 and Scope 2 emissions form only a small proportion of the emissions. However, Scope 3 emissions associated with use of the coal (either domestically or overseas) would generate much higher levels of greenhouse gas emissions.
To this end, the Department notes that Scope 3 emissions from the combustion of coal is a significant contributor to anthropological climate change and any future project would need to include an assessment of the potential impacts to climate change in NSW in accordance with the requirements of the EP&A Act and the Mining SEPP.
The future of coal statement recognises that some ongoing coal fired power will be needed in NSW to support a transition to renewable energy, and that many countries will continue to rely on coal-fired generation of electricity (at least in part) for many years to come. Consequently, Scope 3 emissions associated with the burning of coal are likely to occur regardless of whether the coal resource in the potential resource area is developed or not.
5.13 Strategic Resource Significance As discussed in Section 3.6, the Strategic Statement on Coal Exploration and Mining recognises that there will be ongoing demand for coal resources to support the NSW economy, and a transition to renewable energy. As discussed in Section 2.1, the proposed release area contains a resource that would be suitable for both these purposes as it could be suitable for local electricity generation and export markets.
The potential release area is identified as one of only 8 areas in NSW that have the potential for release, with many other areas being excluded from future mining because they are not adjacent to existing coal mining titles or have other significant environmental or land use constraints.
To this end, the Department notes that the potential release area is in close proximity to existing mining operations and there is considerable potential to share these facilities should the resource be developed. This would significantly reduce the investment costs of developing a mine in the release area and reduce environmental impacts.
As discussed below, there is also good access to key infrastructure such as roads, transmission lines and the Sandy Hollow to Gulgong Railway line which would provide easy access to the Port of Newcastle for export markets and to the Bayswater Station located near Muswellbrook for local electricity generation.
5.14 Availability and Access to Infrastructure and Utilities Access to the potential release area is available via the regional road network. Many of the roads in the area have been recently upgraded including Bylong Valley Way, Ulan Road and Ulan-Wollar Road.
NSW Department of Planning, Industry and Environment | 31 Wollar Initial Suitability Assessment
Wollar Road is also planned to be upgraded in the future and is being funded under the Resources for Regions program.
Access within the study area is limited to Barigan Road and Tichular Lane. These are internal unsealed roads which are not at present suitable for heavy vehicle movements. However, the Department notes that sections of Barigan Road are being widened and graded to allow access for traffic associated with the development of the Wollar Solar Farm. Other works would more than likely be required to facilitate better access within the site, if approved for production.
The Sandy Hollow to Gulgong Railway traverses the study area and would serve as the primary means of transporting coal to market if the resource was developed. A rail spur line and rail loading facilities may be required as part of any future mining project to provide access to the railway. However, there may also be opportunities to share existing infrastructure at existing mines.
The potential release area is also located in close proximity to electricity infrastructure including TransGrid’s Wollar 500/330kV substation and an existing 330 kV electricity transmission line.
It is likely that some infrastructure within the potential release area would need to be realigned to accommodate the development of the resource including regional roads (Wollar Road and Ulan-Wollar Road) and electricity infrastructure. No such measures would be required to facilitate exploration.
The potential release area is located approximately 40 minutes from the regional centres of Mudgee and Gulgong by car. Therefore, it is unlikely at any temporary accommodation facilities would be required to support any future production or development of the coal resource.
There would also be potential to share resources across the existing mining domains, including in regard to environmental monitoring, transporting mine workers, coordinating community enhancement projects, and sharing water resources.
5.15 Other Industries and Land Uses The approved but yet to be constructed Wollar Solar Farm is located on the periphery of the potential release area. The location of the project means it is unlikely to be affected by any exploration or mining within the potential release area. Any future project would need to consider the impacts on the solar farm including any dust impacts which may limit the generation efficacy of the solar array.
The Central-West Orana Renewable Energy Zone (REZ) occupies a large area to the west of site and includes the regional centre of Gulgong. The REZ is expected to deliver significant development and investment to the region through the development of large-scale renewable energy projects. While many of these projects are likely to be located a significant distance from the potential release area (approximately 75 km or more), any future mining may need to consider cumulative impacts on services and infrastructure in the Mid-Western Regional LGA.
6. Findings and Considerations The ISA outlines the Department’s advice to the Allocation Steering Committee for Coal on environmental, social, and economic matters relating to the potential release of the Wollar area in the Mid-Western region of NSW.
In preparing the ISA, the Department visited the area, consulted with key government agencies (including Mid- Western Regional Council) and reviewed existing government data sources.
NSW Department of Planning, Industry and Environment | 32 Wollar Initial Suitability Assessment
While the study area has suitable resource potential to suggest prospectivity for mining, further exploration would be required to allow for mine planning, feasibility studies and eventual commercial coal production.
Should further exploration identify an economic coal resource that is suitable for safe and sustainable development, then there is no doubt that the extraction and use of this resource would result in significant benefits for the Mid-Western region and NSW.
This ISA has considered general development scenarios that could flow from the release of the area for coal exploration, and identified the key issues associated with exploration and development of the resource by open cut mining methods.
Based on this ISA, the Department has not identified any significant or fundamental environmental, social or economic constraints that would preclude the release of this area for coal exploration and/or development.
In this regard, the Department notes that:
• almost all the land in the potential release area is owned by mining companies and there are only a small number of privately owned residences the immediate vicinity that are not tenanted by mine workers;
• mining is a significant socio-economic contributor to the region and the release of the area is likely to extend the benefits of mining in the region and the State as a whole;
• the resource is strategically significant and would support ongoing export and local electricity generation as identified in the NSW Government’s Strategic Statement on Coal Exploration and Mining;
• any greenhouse gasses emissions associated with extraction and development of the coal resource are likely to occur irrespective of the whether the area is released as there will continue to be a demand for coal export and domestic electricity generation for the next few decades;
• there is good access to the area by the existing road and rail network;
• groundwater and surface water resources are not widely used and are not very productive;
• agricultural land is not highly productive and is used mainly for grazing purposes; and
• impacts on significant Aboriginal Heritage sites including a ceremonial and dreaming site, sites with art and grinding groove sites are likely to be avoidable.
While coal exploration and/or production activities would undoubtedly result in some impacts on the potential release area, the Department has concluded that the existing regulatory and planning framework is sufficiently robust to protect areas that are significant, and to ensure that any impacts associated with coal exploration and/or production comply with Government policies, guidelines and standards and are appropriately minimised, managed and/or offset.
If the area is released for exploration, the Department has identified several issues that require further consideration and should be considered in any exploration or development assessment process.
These issues include:
• the need to avoid, mitigate and offset any impacts to EEC’s and threatened species, including Regent Honeyeater habitat;
• the need to avoid and manage impacts to the heritage and biodiversity conservation values of the adjoining Goulburn River National Park;
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• the need to manage potential impacts to surface water quality and flow regimes, particularly within the Goulburn River;
• the need for open and transparent communication with the Wollar community so they can plan for the implications of any future development,
• the need to avoid impacts on significant Aboriginal Heritage sites as part of any exploration (i.e. the ceremonial and dreaming site, sites with art and grinding groove sites); and
• the need to consider any cumulative harm to Aboriginal cultural heritage as a result of any mining development in consultation with the Aboriginal community, including measures that could be implemented to mitigate any cumulative impacts (e.g. measures that would preserve or enhance the knowledge of aboriginal heritage values in the region).
With such measures in place, the Department considers the Wollar Study Area is suitable for release for coal exploration.
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