Integra Mine Complex

EMGA MitchellMcLennan

Planning + Environment + Acoustics

INTEGRA MINE COMPLEX MODIFICATION 1 Environmental Assessment Prepared for Integra Coal Operations Pty Limited 02 December 2011 INTEGRA MINE COMPLEX MODIFICATION 1 Environmental Assessment

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Integra Mine Complex Modification 1 Environmental Assessment

Prepared for Integra Coal Operations Pty Limited | 2 December 2011

Ground Floor, Suite 01, 20 Chandos St St Leonards NSW 2065

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Integra Mine Complex Modification 1 Environmental Assessment

Final

Report RP2 | Prepared for Integra Coal Operations Pty Limited | 2 December 2011

Prepared by Rachael Russell Approved by Luke Stewart

Position Environmental Planner Position Director

Signature Signature

Date 2/12/2011 Date 2/12/2011

This Report has been prepared in accordance with the brief provided by the Client and has relied upon the information collected at or under the times and conditions specified in the Report. All findings, conclusions or recommendations contained within the Report are based only on the aforementioned circumstances. Furthermore, the Report is for the use of the Client only and no responsibility will be taken for its use by other parties.

Document Control

Version Date Prepared by Reviewed by

V1 11/11/2011 Rachael Russell Luke Stewart V2 16/11/2011 Rachael Russell Luke Stewart V3 17/11/2011 Rachael Russell Luke Stewart V4 27/11/2011 Rachael Russell Luke Stewart V5 30/11/2011 Rachael Russell Luke Stewart V6 2/12/2011 Rachael Russell Luke Stewart

Planning + Environment + Acoustics

Table of Contents

Chapter 1 Introduction 1 1.1 Overview of proposed modifications 1 1.2 Site and surrounds 1 1.3 The proponent 1 1.4 Purpose of report 2 1.5 Report structure 2

Chapter 2 Existing operations 5 2.1 Integra Mine Complex 5 2.1.1 Underground 5 2.1.2 Open Cut 5 2.1.3 Underground and Open Cut interactions 5 2.2 Project approvals 6

Chapter 3 Proposed modifications 7 3.1 North Open Cut emplacement extension 7 3.2 Extension to approval timeframes 8 3.2.1 Biodiversity offset areas 8 3.2.2 Overland conveyor 10 3.3 Project justification 10 3.3.1 Need for modifications 10 3.3.2 Alternatives considered 11 3.3.3 Objects of the Environmental Planning and Assessment Act 1979 12

Chapter 4 Planning and statutory framework 15 4.1 Environmental Planning and Assessment Act 1979 15 4.2 Other NSW legislation and policies 16 4.2.1 Legislation 16 4.2.2 State Environmental Planning Policies 16 4.2.3 Singleton Local Environmental Plan 1996 17 4.3 Commonwealth legislation 17

Chapter 5 Stakeholder engagement 19 5.1 Stakeholder engagement strategy 19 5.2 Project specific stakeholder engagement 19 5.2.1 Government 19 5.2.2 Community 19

Chapter 6 Environmental impact assessment 21 6.1 NOC emplacement extension 21

Table of Contents (Cont'd) 6.1.1 Air quality 21 6.1.2 Noise 25 6.1.3 Other environmental considerations 28 6.2 Extension to approval timeframes 31 6.2.1 Biodiversity offset areas 31 6.2.2 Overland conveyor 31

Chapter 7 Statement of commitments 35

Chapter 8 Conclusion 37

References

Acronyms

Figures

1.1 Regional context 3 3.1 Complex overview 14 6.1 Receiver locations 33 6.2 Annual and seasonal windroses for Camberwell Meteorological Station (2003) 34

Tables

6.1 Predicted PM10 and TSP concentrations and dust deposition levels at representative receivers 23 6.2 Summary of estimated TSP dust emissions – Year 3 NOC operations approved compared with proposed (kg/y) 24 6.3 Estimated noise contribution associated with proposed modifications 27 7.1 Statement of commitments 35

Appendices

A Project Approvals B Short Term Dumping Strategy

1 Introduction

1.1 Overview of proposed modifications

The Integra Mine Complex is owned and operated by Integra Coal Operations Pty Limited (Integra). The Complex comprises underground and open cut operations which have been active since 1991 under the former Glennies Creek and Camberwell joint ventures. The Complex currently operates under a single project approval instrument which combines the project approvals for Integra Underground and Integra Open Cut (PA 08_0101 and PA 08_0102, respectively). The project approvals were granted on 26 November 2010 under Part 3A of the NSW Environmental Planning and Assessment Act 1979 (EP&A Act) and are attached as Appendix A.

Integra seeks approval from the Minister for Planning and Infrastructure to modify the project approvals under Section 75W of the EP&A Act. The proposed modifications are as follows:

 extension of the North Open Cut (NOC) out‐of‐pit dump to the east and south;

 increasing the maximum height of the NOC emplacements from 135m AHD to 141m AHD;

 relocation of the existing NOC crib hut site;

 extension of the timeframe stipulated in Condition 48, which requires the installation and operation of an overland conveyor from the Underground surface facilities to the Camberwell Coal Handling and Preparation Plan (CHPP); and

 extension of the timeframes stipulated in Conditions 42 and 43 which relate to the revision of Integra’s biodiversity offset strategy and to the provision of long term security for the biodiversity offset areas identified in the strategy.

The modifications proposed above, taken collectively, constitute Modification 1 to the Integra Mine Complex project approval.

1.2 Site and surrounds

The Complex is located in the Hunter Coalfields of the Sydney Basin and is entirely within the Singleton Local Government Area (LGA). It is located approximately 10 km north‐west of Singleton town centre, in the locality of Camberwell (Figure 1.1).

It is bound by the New England Highway to the south‐west, Bridgman Road to the east and the Middle Falbrook locality to the north. The Main Northern Railway line traverses the site.

The Complex is surrounded by a number of existing mines, predominantly along the western boundary, including Mount Owen Mine and Ravensworth East Mine to the north‐west, Glendell Mine and Ashton Mines to the west and Rixs Creek Mine to the south‐west.

Land uses within the locality are predominately mining and mining related operations, as well as grazing and cropping.

1.3 The proponent

The proponent is Integra on behalf of the Integra Coal Joint Venture. The joint venture partners are:

 Vale Australia Pty Limited through subsidiary companies Vale Australia (GC) Pty Limited (Vale);

 NS Glennies Creek Pty Limited, a subsidiary of Nippon Steel;

 POS ‐ GC Pty Limited, a subsidiary of POSCO;

 JS Glennies Creek Pty Limited and JFE Steel Pty Limited, both subsidiaries of Japan Steel;

 Navidale Pty Limited;

 Chubu Electric Power Integra Pty Limited;

 Toyota Tsusho Mining (Australia) Pty Limited; and

 Toyota Tsusho Corporation (Australia) Pty Limited.

Integra is the management company responsible for the operation of the Integra Underground and Open Cut. Glennies Creek Coal Management Pty Limited and Camberwell Coal Pty Limited, the employers at the individual sites, are wholly owned by Integra.

1.4 Purpose of report

The purpose of this Environmental Assessment (EA) is to accompany an application by Integra for the proposed modifications, in accordance with Section 75W of the EP&A Act. This document is intended to provide an assessment of the potential impacts resulting from the proposed modifications in order for the Minister to make a determination.

This EA was prepared by EMGA Mitchell McLennan Pty Limited (EMM) on behalf of Integra.

1.5 Report structure

The EA has the following structure:

 Chapter 1 – Introduction to the proposed modifications, including description of the site, locality and proponent, and the purpose of this report.

 Chapter 2 – Description of the existing operations and project approvals.

 Chapter 3 – Description of the proposed modifications including alternatives considered and justification against the objects of the EP&A Act.

 Chapter 4 – Overview of the planning and statutory framework.

 Chapter 5 – Details of stakeholder engagement undertaken for the existing operations, as well as specific to the proposed modifications.

 Chapter 6 – Environmental impact assessment for the proposed modifications.

 Chapter 7 – Summary of the Statement of Commitments for the proposed modifications.

 Chapter 8 – Summary and conclusion to the report.

 Appendix A – Project approvals.

 Appendix B – Details of Integra’s short‐term dumping strategy.

2 Integra Mine Complex Modification 1 Environmental Assessment

! SCONE N New

South GLENNIES CREEK ! Lake Wales Glenbawn

M ! A Sydney I N

R T H R Barrington Tops A IL W A Y National Park

! ABERDEEN

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! CARROWBROOK

M AIN Lake N O R St Clair T H Lake R A Liddell I L W

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JERR YS PLA IN S ! R ! BRIDGMAN O GLENNIES CREEK ! AD REEDY CREEK

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ROAD GOLDEN H Y IGHW TT AY N PU EW ! MOUNT THORLEY E Wollemi NGLAND HIGHWAY National Park ! BULGA ! BRANXTON

! GRETA WINDELLA ! LOCHINVAR ! 030609 Integra Mine Complex modification - Rev C 17 October 2011 C 17 October Rev - modification Complex Mine Integra 030609 ! BROKE KEY Integra Mine Complex Project Approval boundary

KURRI KURRI !

Integrated Design Solutions | Solutions Design Integrated 0816km ! CESSNOCK

Regional context Integra Mine Complex Modification 1 Environmental Assessment

FIGURE 1.1

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2 Existing operations

2.1 Integra Mine Complex

2.1.1 Underground

The Underground operation produces high quality, semi‐hard coking coal for export, with the current approved production level set at a maximum of 4.5 million tonnes per annum (Mtpa) of run of mine (ROM) coal.

Coal is approved to be extracted from the Hebden, Barrett and Middle Liddell seams and transported to the surface via conveyor where it is hauled by internal road to the CHPP at the Integra Open Cut. All product coal is transported by rail to the Port of Newcastle.

2.1.2 Open Cut

The Open Cut coal mining operations are located south of Integra Underground and comprise the NOC and South Open Cut (SOC), including the recently approved western extension. The open cut operations produce both semi‐soft coking coal (70%) and thermal coal (30%) for export. Current approved maximum production levels are 1.5 Mtpa of ROM coal from the NOC and 4.5 Mtpa of ROM coal from the SOC.

Waste rock from the NOC operations is emplaced both in‐pit within the NOC pit shell and out‐of‐pit in an emplacement area directly south of the NOC pit. The approved NOC out‐of‐pit emplacement footprint is approximately 43 ha with a maximum height of 135m AHD. Waste rock from the NOC pit is loaded onto haul trucks by excavators for transportation to the emplacement area. Depending on the location of the active emplacement face, waste rock is transported using a combination of temporary or permanent ramps and haul roads.

Infrastructure at the NOC includes a crib site located between the approved NOC emplacement area and Tailings Dam 2 (TD2) which is used by Integra staff. The site contains two portable buildings used as crib huts, an ablution block, office and a 5,000 L water tank. The site is used by mining crews as a rest/lunch area during their shifts.

Consistent with the underground mine, ROM coal is hauled by internal road to the CHPP and product coal transported by rail to the Port of Newcastle.

2.1.3 Underground and Open Cut interactions

The Underground and Open Cut are two separate operations; however, a number of activities are integrated or jointly undertaken including:

 management of water;

 coal handling and preparation;

 management of coarse and fine rejects; and

 transport of product coal.

2.2 Project approvals

Integra was granted two project approvals (PA 08_0101 and PA 08_0102) in a single approval instrument under Part 3A of the EP&A Act on 26 November 2010. This proposal seeks to amend the project approvals to enable the minor modifications to the NOC dumping strategy and extension of the timeframes set out in Conditions 42, 43 and 48.

Environmental management at the Complex is undertaken in accordance with the above project approvals, the associated environmental assessments, mining lease conditions, subsidence management plans, Integra’s Environmental Management System and various other approvals and licences.

Three Mining Operations Plans (MOPs) have been prepared for the Complex: Integra Open Cut (excluding NOC); NOC; and Integra Underground. An amendment to the NOC MOP will be required to accommodate changes associated with the proposed modifications. It is noted that under the amended Mining Act 1992, Rehabilitation Environmental Management Plans (REMPs) will replace MOPs.

The recently approved project approvals require a number of management plans to be prepared for the operations. Management plans required under the project approvals comprise:

 Noise Management Plan;

 Blast Management Plan;

 Air Quality and Greenhouse Gas Management Plan;

 Extraction Plan (for all second workings on site, but not for second workings covered by an existing Subsidence Management Plan);

 Water Management Plan;

 Biodiversity Management Plan;

 Heritage Management Plan;

 Waste Management Plan; and

 Rehabilitation Management Plan.

The majority of these draft plans have recently been submitted to DP&I and comments are currently being incorporated into the final documents.

Schedule 5, Condition 4 of the project approvals requires that management plans be reviewed within three months of any modification to the project approvals and revised as necessary. Subject to approval of the proposed modifications, management plans will be reviewed and revised if necessary. It is likely that minor amendments may be required to the water, noise, air quality, waste, and rehabilitation management plans as a result of the proposed modifications.

3 Proposed modifications

3.1 North Open Cut emplacement extension

A recent preliminary study was undertaken by Integra to reassess the waste rock emplacement requirements for the NOC. The study identified insufficient dump space by December 2011 and then again in 2015. Without resolution, this will significantly impact the development of the pit, and ultimately, cause mine operations to cease.

Integra has developed a short‐term dumping strategy, presented in Appendix B, which occurs over three stages. Stage 1 and some components of Stage 2 are generally in accordance with the current NOC emplacement strategy, comply with the project approvals and therefore, do not require further approval. This proposed modification seeks approval for the components of Stage 2 that vary from the current approved NOC emplacement strategy.

Stage 2 activities which are in accordance with the approved emplacement strategy comprise:

 the rehabilitation of Area 3, which is within the approved NOC emplacement and approximately 16.5 ha in size; and

 emplacement within approved areas as they become available, including in‐pit emplacement within an area of approximately 5 ha in the north‐eastern corner of the NOC pit shell.

Stage 2 activities which require modification to the approved emplacement strategy comprise:

 the extension of the approved NOC out‐of‐pit emplacement to the east and south, into an area referred to as ex‐pit dump Area 9. This area is approximately 39 ha and comprises tailings dam 3 (TD3). The waste rock will be used to cap the tailings dam; and

 increasing the height of approved NOC emplacements from 135m AHD to 141m AHD.

Areas described above are shown on Figure 3.1.

In summary, the changes to the approved NOC emplacement strategy (as described in Section 2.1.2) are an extension to the out‐of‐pit emplacement footprint from 43 ha to 82 ha and an increase in height from 135m AHD to 141m AHD. There will be no change to the methods or approach to emplacement.

It is noted that the approved emplacement height documented in the NOC MOP is 145m AHD. The MOP will be amended in accordance with the proposed modification. Consultation with DP&I and the Department of Resources and Energy in this regard is ongoing.

Stage 2, in combination with Stage 1, will afford emplacement capacity until 2015. Stage 3 is the subject of a separate application and will afford emplacement capacity beyond 2015.

Rehabilitation and development of the final landform within ex‐pit dump Area 9 and other approved emplacements will continue to be undertaken progressively across the mined area, consistent with the existing approved approach, methodologies and final land use options described in the existing NOC MOP. However, as identified in Section 2.2, the NOC MOP will be updated to accommodate relatively minor changes associated with the proposed modifications including a final landform resulting from the proposed modifications will be provided in the updated MOP.

The proposed modifications will not result in changes to the approved tailings management strategy. A tailings dam capping strategy and lifecycle plan will be developed by Integra, prior to capping of TD3, for all tailings dams at the Complex.

The extension of the emplacement area will require the relocation of the crib site located between the approved NOC emplacement area and TD2. In addition to the existing elements of the crib site described in Section 2.1.2, the new site will also include a second 5,000 L water tank and a 45 kVA diesel electric generator with local distribution and compressor. One of the crib huts and the ablution block will also be replaced. An approximate 8.5 m by 8.5 m covered area and parking facility for trucks will also be provided within the site.

The new site will be established approximately 600 m west of the existing crib site on the western edge of the approved NOC emplacement area (see Figure 3.1). The site will be approximately 2.25 ha in size and located within an area previously disturbed by mining activities. The proposed site is highly disturbed with patchy covering comprising introduced grass species. The construction will require minimal earthworks with excavation to a maximum depth of 2 m for cables, and minor cut and fill for site levelling, preparation and drainage. Construction is expected to be completed by the end of February 2012. An existing stand of trees adjacent to the new crib site will not be impacted with any excavation to occur outside of the trees’ root zone.

Applications under Part 4A of the EP&A Act will be lodged with Singleton Council to obtain construction and occupation certificates in accordance with Schedule 2 Condition 14 of the project approvals.

3.2 Extension to approval timeframes

3.2.1 Biodiversity offset areas

Schedule 3, conditions 41 to 44 of the project approval state that:

41. “The proponent shall implement the offset strategy summarised in Table 18, described in the open cut and underground project EAs, and shown conceptually in the figure in Appendix 8 to the satisfaction of the Director‐General.”

Table 18 ‐ Biodiversity offsets strategy for the Integra Mining Complex Offset areas Minimum size (ha) Northern offset area 121 Southern offset area 39 Western offset area 94 Supplementary offset area 33 Bridgman offset area 86

42. "By the end of June 2011, unless the Director‐General agrees otherwise, the Proponent (Integra) shall revise the (biodiversity) offset strategy referred to above, in consultation with DECCW (now OEH), and to the satisfaction of the Director General. The revised offset strategy must:

(a) ensure provision of at least 140 hectares of Narrow‐leaved Ironbark‐Spotted Gum‐ Forest Red Gum Forest (or a suitable equivalent) to further offset the impact of the open cut project; and

(b) include an additional 6 hectares of Central Hunter Swamp Oak Forest (or a suitable equivalent) to offset the impact of the underground project on the Glendell Biodiversity Offset Area.

Long Term Security of Offsets

43. “By the end of December 2011, the proponent shall make suitable arrangements to provide appropriate long term security for all the areas in the revised offset strategy to the satisfaction of the Director‐General.

Biodiversity Management Plan

44. “The proponent shall prepare and implement a Biodiversity management plan for the projects to the satisfaction of the Director‐General. This plan must:

a) be prepared in consultation with DECCW, and submitted to the Director‐General for approval by end of December 2011.”

A biodiversity management plan for the biodiversity offsets is currently being prepared in accordance with Condition 44.

Extensions are sought to the timeframes stipulated in Conditions 42 and 43 for two reasons. Firstly, investigations into the feasibility of proposed mechanisms for providing long term security over the land that is the subject of the biodiversity offsets areas, as required under Condition 43, are ongoing. Whilst Integra can make a commitment in relation to its own land, further time is required to complete arrangements with third party landowners and to obtain any required mortgagee consents.

Secondly, recent geological information indicates that the biodiversity offset areas described in Condition 41 overlie substantial coal resources. Whilst there are currently no plans to disturb or mine these areas, Integra does not wish to take any immediate action that will potentially sterilise this identified resource.

Therefore, this modification seeks an extension to the timeframes stipulated in Conditions 42 and 43 to 30 June 2012. Subject to the progress of investigations, it may be necessary for Integra to seek an additional extension, which would be sought via a written request by Integra to DP&I at the appropriate time.

The proposed extension will allow sufficient time to:

 complete further investigations into the feasibility and suitability of a range of possible mechanisms to provide long term security over the biodiversity areas as required under condition 43. This may include restrictions on the use of relevant biodiversity offset areas (whether in the form of covenants or other mechanisms) and, in particular, the appropriate mechanism with respect to land not currently owned by Integra;

 identify opportunities for re‐establishment of vegetation communities, such as the Threatened Species Conservation Act 1995 listed Central Hunter Ironbark – Spotted Gum – Grey Box Forest, to be further considered; and

 further consider the current biodiversity strategy and formulate a revised strategy, if required.

Should the above investigations demonstrate that an alternative offset package which provides similar long term biodiversity outcomes is feasible, further approval will be sought for any proposed alternative

offsets and this proposal would be fully assessed in consultation with DP&I and relevant agencies, including the Office of Environment and Heritage (OEH). If this is not feasible, the proposed extension affords Integra sufficient time to resolve matters associated with the mechanism for providing long term security over the current biodiversity offset areas and, in particular, over land not currently owned by Integra.

3.2.2 Overland conveyor

Schedule 3, Condition 48 of the project approval states that:

“By the end of December 2011, the Proponent shall cease truck haulage of ROM coal from the underground surface facilities to the CHPP, and transport such coal only via overland conveyor, except in an emergency situation with the prior written approval of the Director General.”

ROM coal extracted from the underground operations is currently transported from the RL100 stockpile to the CHPP by off‐road truck haulage. The haul road is shown in Figure 3.1.

Integra is seeking, in a separate modification application, to amend Condition 48 to remove the requirement for the installation and operation of an overland conveyor from the Underground surface facilities to the CHPP condition from its project approvals. To support this application, a detailed assessment of potential impacts associated with the amendment will be undertaken. Potential investment in additional dust amelioration measures will also be investigated as part of the separate modification application.

In order to allow time for a robust assessment, this modification seeks approval for a short term extension to the timeframe stipulated in Condition 48 of the project approvals from 31 December 2011 to 30 June 2012. During this period, ROM coal will continue to be hauled by internal road to the CHPP. Subject to the progress of those investigations, it may be necessary for Integra to seek an additional extension, which would be sought via a written request by Integra to DP&I at the appropriate time.

3.3 Project justification

3.3.1 Need for modifications

A recent study of the volume of waste rock to be produced and the approved emplacement strategy for the NOC has identified a significant deficiency in emplacement capacity. The short‐term dumping strategy, proposed as part of Modification 1 and described in Section 3.1, will address this deficiency. Without resolution, the capacity constraints will significantly impact the efficient development of the pit, and ultimately, cause mine operations to cease.

Extension to the timeframes stipulated in Conditions 42 and 43 will allow Integra sufficient time to complete further investigations into the feasibility of mechanisms to provide long term security for the biodiversity offset areas, and revise the biodiversity offset strategy in order to provide an appropriate and potentially improved biodiversity conservation value to be fully investigated.

Studies have indicated that the overland conveyor required under Condition 48 is not economically viable and its construction would result in significant disruption to existing operations, with only minimal environmental benefits. Extension to the timeframe stipulated in Condition 48 for the installation and construction of the conveyor will allow a robust assessment of, and consultation on, the potential impacts associated with its removal from the project approvals. It will also enable a detailed study of potential additional dust amelioration measures to be implemented in this area for underground coal haulage. Further investigations into the potential construction and operation of the conveyor will also be

continued during this period. The potential removal of this condition will be the subject of a separate application. If an extension to the timeframe is not granted and trucking is required to cease then production of coal from the Underground operations would be suspended resulting in the loss of employment for Underground workers.

3.3.2 Alternatives considered i North Open Cut emplacement extension

Discussions on the emplacement constraints were held with DP&I and the Department of Trade and Investment Regional Infrastructure and Services (DTIRIS) during which alternatives for an emplacement strategy were considered. The alternatives included:

1. do nothing option;

2. maximisation of in‐pit emplacement;

3. haulage of waste rock material to SOC;

4. increase in maximum emplacement height; or

5. a lesser height increase in combination with the extension of the approved emplacement area into already disturbed areas.

Option 1 was not preferred as it would significantly impact the development of the pit, and ultimately, cause mine operations to cease. This would result in significant socio‐economic impacts from the closure of the NOC and the loss of the already approved NOC resource.

Option 2 was not considered feasible as the mine plan has changed, since the approved emplacements strategy was developed, in response to requirements for additional space to provide access to the mine floor. The anticipated in‐pit emplacement capacity that was identified in the approved emplacement strategy was therefore not available to allow the required emplacement volumes.

Option 3 was not preferred as it is not economically viable and it was considered that there would be a potential increase in dust and noise emissions associated with the increased haulage distance.

Option 4 was not preferred due to the potential visual and noise impacts associated with a significant increase in emplacement height.

Option 5 was considered the most suitable and practical option and was the option preferred by all parties. An extension to the existing emplacement area would allow an increase in emplacement capacity with minimal potential environmental impacts as it would extend into areas previously disturbed and would also allow the capping of TD3.

The location for the new crib site is considered suitable given its previously disturbed nature and proximity to the NOC operations. Accordingly, no alternatives for siting the crib site were considered. ii Extension to approval timeframes

The alternatives to requesting an extension to the timeframes for Conditions 42, 43 and 48 were either:

 to not request an extension; or

 request a shorter or longer extension time period.

As discussed above, not requesting an extension would not enable Integra sufficient time to complete its investigations into the feasibility of mechanisms to provide long term security for the biodiversity offset areas over land not amended by Integra. It would also result in the potential sterilisation of the coal resource located under the biodiversity offset areas.

A shorter extension period was also not considered sufficient to allow the necessary investigations to be undertaken and approvals obtained. An application for a longer time period was not considered necessary; however, if subject to the progress of the investigations outlined above, an additional extension is required this would be sought via a written request by Integra to DP&I at the appropriate time.

3.3.3 Objects of the Environmental Planning and Assessment Act 1979

The consistency of the proposed modifications with key relevant objects of the EP&A Act is considered below.

“To encourage the proper management, development and conservation of natural and artificial resources, including agricultural land, natural areas, forests, minerals, water, cities, towns and villages for the purpose of promoting the social and economic welfare of the community and a better environment”.

The NOC contains a substantial coal resource, with approval for a maximum extraction rate of 1.5 Mtpa ROM coal and continuation of operations until 31 December 2022. The proposed modifications would enable the continued approved extraction of this valuable natural resource and does not sterilise future potential resource extraction in this area.

“The promotion and co‐ordination of the orderly and economic use and development of land.”

The proposed modifications allow for the orderly and economic development of land and resource already approved for the purposes of mining.

“The protection of the environment, including the protection and conservation of native animals and plants, including threatened species, populations and ecological communities, and their habitats.”

The impacts of the Underground and Open Cut operations, as originally proposed, have been fully assessed and were determined to be acceptable by the then Minister for Planning. The environmental assessment presented in this document has examined the potential impacts of the proposed modifications and has found that they would be minor to negligible compared with those assessed in the original proposal.

”Ecologically sustainable development”

Ecologically sustainable development (ESD) is defined by the Commonwealth government as: “using, conserving and enhancing the community’s resources so that ecological processes, on which life depends, are maintained, and the total quality of life, now and in the future, can be increased.” The proposed modifications satisfy the intent of ESD in that they would continue to use resources to contribute towards national and global energy needs thereby maintaining quality of life.

Each of the individual principles of ESD is considered below.

Precautionary Principle: in practice this means that development should not cause serious or irreversible environmental impact. Such impact can be avoided by, firstly, understanding the potential for environmental impact to occur by undertaking a full environmental assessment and, secondly, ensuring effective mitigation or compensation measures are incorporated into development proposals. The approved Underground and Open Cut operations have fulfilled both of these requirements and incorporate the full range of necessary safeguards. The Minister will impose any necessary additional conditions to address the proposed modifications. Thus, the proposed modified project meets the precautionary principle.

Social equity including intergenerational equity: the proposed modifications will ensure that existing employment, both direct and indirect, is ongoing and secure which contributes towards social and intergenerational equity. Royalties received by government from mining activities also result in state wide social benefits.

Conservation of biological diversity and maintenance of ecological integrity: the approved Underground and Open Cut operations include measures to conserve biological diversity and maintain ecological integrity through the provision of biodiversity offset areas. The proposed modifications seek an extension to the timeframe for securing these offsets; however, this extension is necessary to ensure that the offset areas and the strategy for these areas are developed appropriately to provide the most beneficial and enduring ecological outcome.

Improved valuation and pricing of environmental resources: the Complex was granted project approvals in 2010 and, to this extent, the government has valued and priced the environmental resources relevant to the Complex. The proposed modifications would have a minimal or neutral effect in the application of this principle.

While the modifications alone would be of little consequence in terms of ESD, they would ensure the ongoing use of a significant natural resource and ensure employment security.

The overall conclusion is that the proposed modifications are minor and consistent with key relevant objects of the EP&A Act.

13 Integra Mine Complex Modification 1 Environmental Assessment

THOM AS LAN N D E

A ! O

R D BRIDGMAN T A

S O GLENNIES CREEK R E ! K R O D O O A R S F O TO R LB NY THERN A C NOR RAILWA K F R AIN Y E E M LIN E LE Area 10 E R D E NOBLES K C LANE ID S M R IE O N A N D E L G NOC pit shell RL100 coal stockpile

NOC dump E K ! RE CAMBERWELL C S New crib site E I

N N Ex‐pit dump Area 9 E

L G TD3 HAUL ROAD

T E W NORTH PIT E

2011 E E R N T G CHPP S L A E I N

N D December

N H 1 E IG

C L D H G W A A Y O

R ‐ Rev M

I N EA N KEY E A

M SOUTH PIT A Open cut project area C G C D I

030609 RAIL LOOP

| E R

Integra Mine Complex Project S B S

Approval boundary R O Approved NOC emplacement A Solutions

D NOC pit shell Design

Emplacement area Rehabilitation Area 3

0 0.45 0.9 km Integrated

Complex overview Integra Mine Complex Modification 1 Environmental Assessment FIGURE 3.1

4 Planning and statutory framework

4.1 Environmental Planning and Assessment Act 1979

Integra requests that the Minister modifies project approvals PA 08_0101 and PA 08_0102, both part of a single approval instrument, which were originally granted in 2010 for the purpose of carrying out mining activities at the Complex under Part 3A of the EP&A Act.

Part 3A was recently repealed by the Environmental Planning and Assessment Amendment (Part 3A Repeal) Act 2011 (Part 3A Repeal Act) which was passed by the NSW parliament on 22 June 2011, and commenced on 1 October 2011. Under the Part 3A Repeal Act, projects deemed to be ‘transitional Part 3A projects’ will continue to be subject to Part 3A of the EP&A Act (as in force immediately before the repeal and as modified by the Part 3A Repeal Act). Transitional Part 3A projects include certain projects that were the subject of an existing approval under Part 3A.

As the Complex has project approvals that were granted under Part 3A of the EP&A Act, it is understood to be a transitional Part 3A project.

Section 75W of the EP&A Act enables the Minister to modify a project approval granted under Part 3A of the EP&A Act. In determining whether changes to a Part 3A project can be modified under Section 75W of the EP&A Act, consideration is given to the proposed modifications and any possible change in potential associated environmental impacts.

Section 75W states:

“(1) In this section:

Minister’s approval means an approval to carry out a project under this Part, and includes an approval of a concept plan.

modification of approval means changing the terms of a Minister’s approval, including:

(a) revoking or varying a condition of the approval or imposing an additional condition of the approval, and

(b) changing the terms of any determination made by the Minister under Division 3 in connection with the approval.

(2) The proponent may request the Minister to modify the Minister’s approval for a project. The Minister’s approval for a modification is not required if the project as modified will be consistent with the existing approval under this Part.

(3) The request for the Minister’s approval is to be lodged with the Director‐General. The Director‐General may notify the proponent of environmental assessment requirements with respect to the proposed modification that the proponent must comply with before the matter will be considered by the Minister.

(4) The Minister may modify the approval (with or without conditions) or disapprove of the modification.”

Based on the scope and scale of the proposed modifications, the proposed modifications are not predicted to result in significant environmental consequence beyond the current project approvals and are proposed to be assessed under Section 75W. Detailed assessments provided in Chapter 6 quantify these impacts.

4.2 Other NSW legislation and policies

4.2.1 Legislation

The following NSW Acts of legislation are relevant to the proposed modifications:

 Protection of the Environment Operations Act 1997 (POEO Act);

 Mining Act 1992; and

 Coal Mine Health and Safety Act 2002.

The POEO Act requires that scheduled premises, which are defined in Schedule 1 of the Act, are required to obtain and operate under an Environment Protection Licence (EPL). The Complex is a scheduled premise and has an existing EPL (EPL 3390). If required, the Complex’s EPL will be updated in accordance with the modifications.

As outlined in Section 2.2, the Complex currently has three MOPs which were approved under the Mining Act 1992. Minor modifications to the NOC MOP will be needed as a result of the proposed modifications.

The Complex currently holds a Life of Mine Tailings Emplacement S100 approval under the NSW Coal Mine Health and Safety Act 2002. The proposed modifications, specifically the capping of TD3, will not require any changes to this approval.

4.2.2 State Environmental Planning Policies

State environmental planning policies (SEPPs) are environmental planning instruments prepared by the Minister to address issues significant to NSW. The following SEPPs are relevant to the proposed modifications:

 SEPP (Mining, Petroleum Production and Extractive Industries) 2007;

 SEPP (Major Development) 2005; and

 SEPP (State and Regional Development) 2011.

The SEPP (Mining, Petroleum Production and Extractive Industries) 2007 (Mining SEPP) aims to provide for the proper management and development of mineral, petroleum and extractive material resources for the social and economic welfare of the State. The policy establishes appropriate planning controls to encourage ESD. The proposed modifications are consistent with the aims and controls of this policy.

SEPP (Major Development) 2005 previously defined classes of development to which Part 3A of the EP&A Act applied. This SEPP was amended by SEPP (State and Regional Development) 2011 in accordance with the repeal of Part 3A, though it is still relevant to the proposed modifications as it continues to apply to transitional Part 3A projects. Clause 6 of SEPP (Major Development) 2005 states:

(1) Development that, in the opinion of the Minister, is development of a kind:

(a) that is described in Schedule 1 or 2, or

…

is declared to be a project to which Part 3A of the Act applies.

Coal mining is a form of development described in Schedule 1 of SEPP (Major Development) 2005.

4.2.3 Singleton Local Environmental Plan 1996

The project is located within the Singleton LGA. Under the provisions of the Singleton Local Environmental Plan (Singleton LEP), the project site is zoned No.1 (a) Rural. Mining is a permissible land use within this zone with development consent or project approval under the EP&A Act. This modification is consistent with the provisions of the Singleton LEP.

4.3 Commonwealth legislation

The Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act) aims to protect matters deemed to be of national environmental significance (NES) including:

 world heritage properties;

 places listed on the National Heritage Register;

 Ramsar wetlands of international significance;

 threatened flora and fauna species and ecological communities;

 migratory species;

 Commonwealth marine areas; and

 nuclear actions (including uranium mining).

If an action (or project) will, or is likely to, have a significant impact on any of the matters of NES, it is deemed to be a Controlled Action and requires approval from the Commonwealth Environment Minister or the Minister’s delegate. To determine whether a proposed action will or is likely to be a Controlled Action, an action may be referred to the Department of Sustainability, Environment, Water, Population and Communities.

The proposed modifications will not have a significant impact on any matters of NES and, accordingly, approval under Commonwealth legislation is not required.

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5 Stakeholder engagement

5.1 Stakeholder engagement strategy

A comprehensive stakeholder engagement strategy is in place for the Complex. As outlined below, this strategy will be supplemented by activities that apply specifically to the proposed modifications. The planned stakeholder activities are based on the nature and scale of the proposed modifications.

Integra’s stakeholder engagement strategy allows for consideration of stakeholders’ views and timely feedback of any matters raised. The existing consultation program includes the following key components.

 A 24‐hour community information line – this service aims to promptly and effectively address community concerns.

 Integra Coal Open Cut Community Consultative Committee (CCC) – meets quarterly (previously biannually) to discuss environmental management and discuss any issues raised by members of the community.

 Integra website – includes updates on current and future operations.

 Newsletters – these are prepared and circulated to disseminate information on Integra’s operations.

 Management of a complaints register – to record complaints received and steps to follow up complaints.

5.2 Project specific stakeholder engagement

5.2.1 Government

Consultation related to the proposed modifications has been ongoing, with meetings held between Integra and DP&I on 20 September 2011, 6 October 2011 and 4 November 2011. At these meetings the proposed modifications and other modification elements subject to a separate application were discussed. At the 4 November 2011 meeting, it was confirmed that the proposed modification elements would be separated from other elements due to constrained timeframes associated with these.

A meeting with Council is proposed for early December 2011 to discuss, amongst other matters, the proposed modifications.

5.2.2 Community

i Engagement activities

In addition to the consultation initiatives listed in Section 5.1, Integra has prepared a communications and community engagement sub‐plan associated with NOC’s emplacement activities (see Appendix B). The purpose of this sub‐plan is to ensure the community is informed, updated and engaged on the matters pertaining to NOC’s dumping. Key features of this plan are:

 various communication tools and materials, including:

- posting details of the dumping strategy on Integra’s website;

- distribution of fact sheets to the community via letterbox drops and Integra’s website;

- press advertising in local and regional newspapers;

- incorporation of details in the Integra Community Newsletter;

- use of the 24hr community information line to address questions and concerns relating to the dumping strategy; and

- a consultation management system to capture all stakeholder enquiries and feedback;

 stakeholder mapping to identify relevant groups and organisations and other key stakeholders;

 commissioning a Social and Economic Diagnosis Study;

 presentation of the strategy at the November 2011 CCC meeting;

 one‐on‐one meetings with neighbours; and

 briefings of and meetings with key stakeholders. ii Outcomes of engagement

Engagement activities regarding the NOC emplacement strategy are ongoing. Feedback received during stakeholder engagement was considered in the options analysis (Section 3.3.2) and within this EA. This included feedback at the most recent CCC meeting.

A CCC meeting was held on 15 November 2011 at which the proposed modifications were introduced and discussed. The following outcomes of the CCC meeting were relevant to the proposed modifications:

 exhibition period for the EA;

 results of recent environmental monitoring; and

 matters raised by local residents between March and October 2011 relating mostly to the NOC operations.

Other community consultation outcomes of this meeting included:

 the Complex hotline now goes to Australian call centre to support Integra’s timely response;

 a new Integra website is now online;

 that community newsletters should be produced more regularly; and

 CCC meetings to be held quarterly instead of biannually to increase communication between Integra and the community.

The outcomes of this meeting have been included in this report, in particular, issues relating to matters raised. Additional monitoring undertaken to address these matters is discussed in Section 6.1.2.

6 Environmental impact assessment

This chapter examines the change in the potential impacts of the proposed modifications as compared to the approved development. It provides, where required, mitigation and monitoring measures to manage potential impacts. The chapter has been divided into potential impacts associated with the NOC emplacement extension and the extension of timeframes stipulated in Conditions 42, 43 and 48 of the project approvals.

Impacts associated with the relocation of the crib site are considered negligible. The entire footprint of the crib site has been previously disturbed. It comprises only patchy covering of introduced grass species. AS described in Section 3.1, works associated with the relocation of primarily existing infrastructure are only minor. Accordingly, the crib site relocation has not been considered further in this assessment.

6.1 NOC emplacement extension

6.1.1 Air quality

i Existing environment

Air quality at the Complex and surrounding areas is mainly influenced by dust emissions from the mine itself and other nearby mines, with minor emissions attributable to traffic on unsealed roads and local building and construction activities.

The Complex maintains a network of air quality monitoring equipment including dust deposition gauges, high volume air samplers and TEOMs (tapered elemental oscillating microbalances) with the locations shown on Figure 6.1. The data collected from this monitoring network, in conjunction with air dispersion modelling and assessments for the existing operations, provide accurate information on existing air quality around the mine.

The nearest residential concentrations are Camberwell and Obanvale, generally to the west and east respectively. There are also a number of residences situated in the immediate vicinity of the Complex. A variety of dust controls and safeguards are currently in place to achieve compliance with approved limits. These include regular monitoring in accordance with the project approvals and environmental licensing conditions.

Recent air quality monitoring results, presented in the NOC’s 2010/2011 Annual Environmental Management Report (AEMR), were reviewed by PAEHolmes (previously Holmes Air Sciences) for this report. The data shows that the annual average dust deposition levels at all monitoring locations were compliant with approved levels, except for one monitoring location (DG06 – located at the Dulwich property shown on Figure 6.1) situated within the Complex boundary.

PM10 monitoring during this period also showed that there were no exceedences of the annual average 3 PM10 maximum of 30 μg/m criteria and only one exceedence of the short term 24hr average PM10 criteria of 50 μg/m3 at monitoring location HV3 (located in the Glennies Creek locality shown on Figure 6.1) in February 2011, which was attributed to external influences. There was no exceedence of the annual average Total Suspended Particulates (TSP) criteria for the reporting period and an improvement from the 2009/10 reporting period in the annual average TSP and PM10 concentrations was seen at all sites.

An Air Quality Management Plan, prepared in accordance with Condition 26 of the project approvals, is currently with DP&I for assessment.

The potential for particulate matter (PM) to disperse and result in impacts at a residence is dependent on the quantity of PM generated, the particle size, and the prevailing wind direction and speed. Annual and seasonal windroses of meteorological data used in the previous assessments (Figure 6.2), show that in summer the wind is predominantly from the south‐east, while in winter, the wind is predominantly from the north‐west. Autumn and spring months experience a combination of these wind conditions. ii Impact assessment

The emplacement area situated within ex‐pit dump Area 9 is approximately 500 m closer to neighbouring receivers than the approved NOC emplacement area. Receivers include those to the north‐east towards Stony Creek Road and Thomas Lane, along with receivers directly to the east along Bridgman Road (Figure 6.1).

The use of ex‐pit dump Area 9 for emplacement of waste rock will result in emissions associated with haulage of the waste rock to the site, fugitive emissions associated with emplacement of material, and wind erosion from exposed land. Emissions from these activities have the potential to result in higher concentrations of particulates at nearby residences. As shown in Figure 6.2, the prevailing winds are to the north‐west and south‐east, and therefore, residences situated to the south‐east of the emplacement area (Figure 6.1) are at the most risk of additional impact.

However, as shown in Table 6.1, the predicted impacts at receivers in this area are below the relevant air quality impact assessment criteria, even when considering the cumulative impact of the Complex and other sources of dust (including other mines). Due to the minor change in total emissions from the proposed modification (Table 6.2), it is not considered necessary to complete dispersion modelling to assess the potential impacts and a semi‐quantitative assessment is provided below.

The air quality assessment completed for the Glennies Creek Coal Mine Open Cut Environmental Assessment (Corkery 2007) (NOC EA) by Holmes Air Sciences (2007) modelled emissions from operations in Year 1, Year 3, Year 6 and Year 8. PAEHolmes has reviewed the potential change in particulate emissions associated with the emplacement of waste rock in ex‐pit dump Area 9 and compared them with the emissions contained in the NOC air quality impact assessment (Holmes Air Sciences 2007) and also in the air quality assessment prepared for the Open Cut EA (Holmes Air Sciences 2010).

Current operations are considered most similar to those previously modelled in the NOC and Open Cut EAs for Year 3 operations (Holmes Air Sciences 2007; Holmes Air Sciences 2010). Table 6.2 compares the estimated TSP emissions for Year 3 operations with the estimated TSP emissions from actual Year 3 operations, which includes the use of ex‐pit dump Area 9 for overburden emplacement.

Emissions would be slightly higher under the proposed modification (with 0.77 kg TSP per tonne ROM removed compared with 0.74 kg per tonne ROM removed under the approved operations), with negligible impacts at receivers expected to occur due to the use of ex‐pit dump Area 9 for overburden emplacement and associated wind erosion from the emplacement area. Further, as significantly less overburden has been moved compared with the assumptions in the dispersion modelling completed for both the NOC and Open Cut EAs (approximately 4 Million bank cubic metres (Mcbm) moved, compared with approximately 8 Mbcm assessed in the EAs), there is a reduction in overall emissions from waste activities. The increase in height of the emplacement from 135m AHD to 141m AHD will not result in a change in overall emissions from waste activities. In addition, temporary rehabilitation of part of the approved NOC emplacement area in Area 3 will result in no increase in total exposed area compared with the assumptions in the NOC and Open Cut EAs.

Table 6.1 Predicted PM10 and TSP concentrations and dust deposition levels at representative receivers

Year 3 ‐ proposal alone(a) Year 3 ‐ proposal and other sources(a)

PM10 TSP Dust PM10 TSP Dust (µg/m3) (µg /m3) deposition (µg/m3) (µg /m3) deposition (g/m2/month) (g/m2/month) Averaging 24‐hour Annual Annual Annual Annual Annual Annual period Impact Assessment Criteria Complex

50 ‐ ‐ 2 30 90 4 NOC NOC Complex NOC Complex NOC Complex NOC Complex NOC Complex NOC Complex NOC Complex

(b)

2 6 8 14 1 3 1 3 0.3 0.3 15 16 21 49 1.4 1.0 3 7 8 13 1 2 1 2 0.3 0.3 13 15 19 48 1.1 1.0 4 8 8 16 1 3 2 3 0.3 0.3 15 16 22 49 1.4 1.1 5 9 9 16 1 3 2 3 0.4 0.4 16 16 22 49 1.4 1.1 6 10 10 17 1 3 2 3 0.4 0.4 15 16 22 49 1.4 1.1 7 11 12 19 2 3 2 3 0.4 0.4 15 16 21 49 1.3 1.1 ‐ 12 ‐ 15 ‐ 2 ‐ 2 ‐ 0.3 ‐ 15 ‐ 48 ‐ 1.0 8 13 12 19 2 3 2 3 0.5 0.4 15 16 21 49 1.3 1.1 9 14 10 16 2 2 2 3 0.4 0.4 14 16 20 49 1.3 1.1 10 15 10 14 1 2 2 2 0.3 0.3 13 15 19 48 1.1 1.0 11 16 14 17 2 3 2 3 0.5 0.4 15 16 21 49 1.4 1.2 12 17 13 15 1 2 2 3 0.4 0.3 13 15 19 48 1.1 1.0 13 18 14 16 1 2 2 3 0.4 0.3 14 16 19 48 1.1 1.0 14 20 13 16 1 2 1 2 0.1 0.1 13 15 19 48 0.9 0.9 15 19 11 12 1 2 1 2 0.1 0.1 13 15 18 47 0.9 0.9 16 21 13 15 1 1 1 2 0.1 0.1 13 15 18 47 0.9 0.8 17 22 14 15 1 1 1 1 0.0 0.1 12 14 18 47 0.8 0.8 ‐ 23 ‐ 16 ‐ 1 ‐ 2 ‐ 0.1 ‐ 15 ‐ 47 ‐ 0.8 18 24 7 11 0 1 0 1 0.0 0.0 11 14 17 46 0.8 0.8 24 25 6 10 0 1 0 1 0.0 0.0 11 14 16 46 0.8 0.7 25 31 7 10 0 1 0 1 0.0 0.0 12 14 18 47 0.8 0.8 27 34 10 13 1 1 1 1 0.0 0.1 13 15 19 48 1.0 0.9 28 35 15 20 1 2 1 2 0.1 0.1 14 16 20 49 1.1 1.0 35 64 21 26 3 5 4 6 0.7 0.7 20 21 28 55 2.0 1.8 37 47 31 42 2 4 3 4 0.3 0.3 18 19 24 52 1.4 1.3 Note (a) = Source of predicted impacts: NOC ‐ Holmes Air Sciences (2007); Complex ‐ PAEHolmes (2010). Note (b) = Receivers shown on Figure 6.1 represent Complex IDs.

Table 6.2 Summary of estimated TSP dust emissions – Year 3 NOC operations approved compared with proposed (kg/y)

Activity Year 3 approved Year 3 proposed WR ‐ Scraper stripping topsoil 11,200 ‐ WR/CL ‐ Drilling 9,887 9,887 WR/CL ‐ Blasting 13,420 13,420 WR ‐ Sh/Ex/FELs loading 53,582 27,063 WR ‐ Hauling to emplacement area 235,116 265,734 WR ‐ Emplacing at emplacement area 53,582 27,063 WR ‐ Dozers on O/B 58,574 58,574 CL ‐ Dozers ripping/pushing ROM coal 57,010 57,010 CL ‐ Loading ROM to trucks using excavators/FELs 101,330 101,330 CL ‐ Hauling ROM coal to CHPP 43,125 78,000 CL ‐ Unloading ROM coal at CHPP 15,000 15,000 CL ‐ Reloading ROM coal at CHPP 101,330 101,330 CL ‐ Handling coal at CHPP 4,589 4,589 CL ‐ Unloading Product coal to stockpile 15,000 15,000 CL ‐ Reloading Product coal from stockpile to trains 101,330 101,330 WE ‐ WR spoil area 105,120 105,120 WE ‐ Open pit 77,088 126,144 Scraper ‐ rehabilitation 16,990 16,990 Dozers ‐ rehabilitation 33,471 33,471 Grading roads 2,246 2,246 TOTAL O/C Northern TSP 1,108,991 1,159,301 ROM 1,500,000 1,500,000 TSP:ROM ratio 0.74 0.77 Notes: WR – waste rock activity; CL – coal activity; WE – wind erosion.

As shown in Table 6.2, the predicted impacts at receivers are below the relevant air quality impact assessment criteria, even when considering the cumulative impact of the Complex and other sources of dust (including other mines). The modelling in Table 6.1 for potentially affected residences is for any year of operations. Whilst higher impacts were predicted at some residences for other years of operations in past assessments (Holmes Air Sciences 2007; Holmes Air Sciences 2010), none of these residences included the residences listed in Table 6.1.

The Dulwich property (ID 153 on Figure 6.1) is approximately 2km west of the proposed overburden emplacement area. As the prevailing winds are to the north‐west and south‐east, no additional impacts are anticipated at this residence, and other residences further west, as a result of the modification.

Therefore, potential air quality impacts associated with dumping to ex‐pit dump Area 9 are expected to be negligible when considering the relative change to the approved development. There would be no additional properties located within the acquisition zone as a result of the proposed modification. iii Mitigation and monitoring

Although it is expected that fugitive emissions from the proposal would remain negligible, dust control measures may be implemented to further minimise airborne emissions. Control strategies will include:

 regular watering of unsealed access roads and exposed surfaces;

 minimisation of exposed surfaces;

 managing dust‐generating construction activities during adverse wind conditions; and

 minimising the drop heights between front‐end loader buckets and trucks carrying overburden materials.

Air quality management associated with emplacement of waste rock in ex‐pit Area 9 will be undertaken in accordance with the Air Quality Management Plan which will be revised to incorporate this area. The revised Plan will be submitted to DP&I for assessment.

6.1.2 Noise i Existing environment

The existing noise climate for local receiver areas surrounding the Complex varies. Residences to the east, along Bridgman Road, are exposed to low level mining noise from current NOC operations and from surface facilities. However, these areas can be described as typical of rural residential settings adjacent to a collector road. Properties further east and set back from Bridgman Road are in a typical rural setting comprised of mostly natural sounds with little exposure to noise emissions from the Complex. The areas to the north of the site have occasional exposure to noise emissions from current NOC activities, but are also afforded a noise climate typical of rural settings at other times. To the west, Camberwell Village and nearby properties are surrounded by mining operations, a major railway line, or a major road, depending on their specific location. These properties have noise climates typical of rural settings, though with intermittent exposure to mining and road traffic noise.

Noise monitoring at the Complex consists of attended and unattended measurement and real‐time monitoring. Attended monitoring is conducted quarterly. In accordance with the project approvals, monitoring is undertaken at a representative receiver within the noise assessment groups identified in Schedule 3, Condition 2. There are no prescribed noise monitoring locations within the project approvals; however, a real‐time management system and a monitoring program are contained within the Noise Management Plan which, in accordance with Condition 10 Schedule 3 of the project approvals, is required to be prepared in consultation with OEH and to the satisfaction of the Director‐General of DP&I. Additional monitoring can also be undertaken in special circumstances, for example, additional monitoring was undertaken to ensure compliance with the project approvals at eight nearby receivers during the 2010/2011 AEMR reporting period in response to noise and blast related matters raised by several residents. Monitoring at these receivers showed that measured levels were all below the site specific criteria, with the exception of one marginal exceedance (2 dB) at a residence located 2 km to the north of the NOC. There were no exceedances of the amenity criteria specified in the NOC Noise Monitoring Program. Noise management measures are discussed further in Section 6.1.2.iii.

All monitoring is conducted in accordance with Australian Standard (AS) 1055:1997 Acoustics – Description and Measurement of Environmental Noise and the NSW Industrial Noise Policy (INP) (OEH 2000). The results of monitoring, in conjunction with existing modelling and previous assessments for the Complex, provide an accurate evaluation of noise impacts resulting from current operations.

In addition, recent unattended and short term attended noise monitoring was completed for the months of winter 2011. This monitoring identified management zones for a small number of residences to the north and the east of the NOC.

ii Impact assessment

Acoustic impacts associated with the extension of the NOC emplacement into ex‐pit dump Area 9 and the proposed increase in maximum emplacement height from 135m AHD to 141m AHD have been reviewed and compared against current emissions from the NOC emplacement area and combined site noise from the Complex. The review has considered several aspects that influence noise propagation including source height (to a maximum of 141m AHD) and the reduced distance (approximately 500 m) of ex‐pit dump Area 9 to receivers in the north through to the south‐east.

Calculations have identified that receivers nearest to ex‐pit dump Area 9, including those situated to the north‐east towards Stony Creek Road and Thomas Lane (Figure 6.1), along with receivers directly to the east and south‐east along Bridgman Road, may experience a maximum increase of between 1 to 1.5 dB in respect of the mine’s Leq,15minute noise contribution from haulage associated with the emplacement due to the proposed modification. It should be noted that changes in noise levels of up to 3 dB are only just perceptible by the general public.

A semi‐quantitative assessment was considered commensurate to the level of disturbance associated with the proposal, since a 1 dB to 1.5 dB change is not expected to result in a perceptible increase in noise levels to affected receivers. A desktop noise assessment approach was adopted to calculate potential changes to noise emissions from the Complex to the nearest potentially affected receivers adjacent to ex‐ pit dump Area 9. The calculations included fundamental acoustic principles (Reference: Noise and Vibration Control, L.L. Beranek (ed) McGraw‐Hill 1971, pp. 174‐177) that influence the propagation of noise including insertion loss and distance loss.

The proposed modifications have not differentiated the height and area of the emplacement area on a year to year basis. Therefore, the calculations have adopted the highest proposed elevations and minimal possible buffer distances from the ex‐pit dump Area 9 to eastern receivers. Calculations are considered to represent the potential worst case impact scenario.

In summary, the acoustic impact from the proposed modification combined with existing mine noise from the Complex is not expected to be significant. An estimation of the noise contribution associated with emplacement activities in ex‐pit dump Area 9 is provided below in Table 6.3.

Recent attended monitoring results conducted for Integra throughout the winter months of 2011 have been used to provide semi‐quantitative review of potential noise emissions to receivers nearest to ex‐pit dump Area 9. The summary reproduced in Table 6.3 provides measurement results of mining noise emissions throughout winter 2011 for the worst case meteorological conditions during the day and evening periods at representative receiver locations. Generally, the 1 to 1.5 dB increase associated with the NOC emplacement into ex‐pit dump Area 9 would see impacts at the majority of receivers unchanged and where noise levels have been identified to be currently above the operational criteria, additional increases associated with ex‐pit dump Area 9 operations will not result in changes to the noise management or acquisition zones for the Complex at these receivers. The exception is receiver 32, where there is a potential for the increase of noise emissions to result in the operational criteria being exceeded by worst case 0.5 dB, which is an imperceptible difference. However, actual emissions at this receiver are still expected to be at the operational criteria. The predicted increase in noise emissions will not result in an exceedance of the mitigation or acquisition limits for this receiver. Therefore, the proposed modification will not result in changes to the noise management or acquisition zones for the Complex.

Table 6.3 Estimated noise contribution associated with proposed modifications

Receiver Measured Estimated Estimated new Day and Evening Consent Change against Number Integra Contribution contribution Limits existing consent dB(A) Leq,15min (from +1.5 dB Leq,15min Operational/Mitigation limits 2011 monitoring) /Acquisition 7 38 391 39/44/47 No 11 37 381 41/42/45 No 12 <40 <411 40/44/47 No 14 <42 <431 42/44/47 No 15 36 371 40/44/47 No 16 35 351 42/44/47 No 20 39 40.5 37/44/47 No 31 37 38.5 36/42/45 No 32 36 37.5 37/42/45 Yes 48 39 40.5 36/43/46 No Note1: indicative noise contribution increase from ex‐pit dump Area 9 dump for these receivers taking into consideration existing contributions from processing and other mining sources. Note: operations to the NOC emplacement into ex‐pit dump Area 9 is only expected to be undertaken during day and evening periods.

It is expected that noise levels at residences located to the west of the Complex would decrease due to the increase in distance of dumping to ex‐pit dump Area 9 compared to currently dumping to the NOC. For example, noise levels at the Dulwich residence (receiver location 153 on Figure 6.1) are expected to decrease by between 1 dB(A) to 1.5 dB(A). Further, the overall cumulative increase/decrease when dumping to ex‐pit dump Area 9 is expected to be negligible at the Dulwich receiver (and in fact all receivers to the west), as the acoustical environment at this receiver is dominated by sources situated in the SOC, NOC and processing plant and other sources (North England Highway and Ashton Coal Mine). iii Mitigation and monitoring

The Complex is in the process of developing additional noise management measures to reduce noise emissions. A Noise Management Plan and Blast Management Plan for the Complex have been prepared in accordance with Conditions 10 and 19 respectively of the project approvals and are currently with DP&I for assessment. These plans identify management measures and a monitoring program for the Complex to achieve compliance with criteria as well as to be more proactive in the management of noise emissions.

Mitigation and monitoring measures proposed to manage potential impacts resulting from the proposed modifications are listed below.

 Attended monitoring will be undertaken in accordance with the INP during the hauling associated with the emplacement of waste rock in ex‐pit dump Area 9 to confirm the mine noise contribution is not significant, in particular at residences situated to the north‐east of the mine. This will form part of the Complex’s current monitoring program.

 It is expected that noise emissions associated with this temporary change in operations would not be significant. Notwithstanding, provision of all reasonable and feasible mitigation measures would be adopted.

 The Noise Management Plan will be revised, subject to approval, to reflect any management or monitoring measures associated with quantifying impacts from the hauling associated with the emplacement of waste rock in ex‐pit dump Area 9.

It is noted that a detailed noise assessment of the revised dumping strategy as described in Section 3.1 and provided in Appendix B is currently being undertaken as part of a separate application for approval of Stage 3. This will incorporate the increase in NOC emplacement height and extension of emplacement into ex‐pit dump Area 9.

6.1.3 Other environmental considerations

The proposed NOC emplacement extension into ex‐pit dump Area 9 and increase in the approved maximum height from 135m AHD to 141m AHD will have a minimal or negligible impact on the environmental attributes addressed below. Assessment outcomes, and where applicable, management measures for these attributes are provided. i Ecology

Flora and fauna assessments were undertaken for the NOC EA prepared by Geoff Cunningham Natural Resource Consultants (2007a) and Countrywide Ecological Service (2007) respectively.

The majority of ex‐pit dump Area 9, the area proposed for the extension of the approved NOC out‐of‐pit dump, was classified as ‘Rehabilitated and Disturbed Land’ in the NOC EA (Geoff Cunningham Natural Resource Consultants 2007a). This vegetation community was determined as having low ecological value and was not required to be offset as part of the offset strategy proposed in the NOC EA that was subsequently subsumed into the Complex’s project approvals. The majority of the ex‐pit dump Area 9 remains disturbed with only small areas of rehabilitated vegetation still in its early phases of development.

A portion of ex‐pit dump Area 9, which incorporates TD3 and an area between the southern boundary of the NOC project site and TD2, was not assessed in the NOC EA. This area has been entirely previously disturbed by mining operations and is mostly devoid of vegetation apart from some partially grassed areas and a few small shrubs.

The proposed NOC emplacement extension area and new crib site are entirely within an area that has been previously disturbed and utilised as an emplacement area for waste rock from the Camberwell Coal Mine North Pit which ceased mining in 1999. A small portion of this area has since been rehabilitated, though no substantial vegetation clearing will be undertaken to accommodate the proposed modification with only immature planted trees and shrubs to be removed. Therefore, there will be no significant impacts on ecology as a result of the proposed extension of the NOC emplacement. Biodiversity will be managed in accordance with the Biodiversity Management Plan currently being prepared in line with project approval Condition 44. No mitigation or monitoring measures specific to the extension of the NOC emplacement are required. ii Aboriginal heritage

An Aboriginal heritage assessment of the NOC area was undertaken by HLA Envirosciences Pty Limited in 2007 for the NOC EA (Corkery 2007). This assessment identified 19 areas as either containing or having the potential to contain Aboriginal archaeological deposits, none of which were located in ex‐pit dump Area 9. The NOC area is highly modified by past disturbance and the majority of the area, including ex‐pit dump Area 9, was assessed as having low archaeological sensitivity. As mentioned previously, the proposed NOC emplacement extension area is entirely within an area that has been previously disturbed

and utilised as a waste rock emplacement for the Camberwell Coal Mine. HLA’s assessment determined that areas identified as low sensitivity required no further archaeological work.

It is concluded there will be no impacts on Aboriginal heritage as a result of the proposed modifications and no mitigation or monitoring measures are required. iii Non‐Aboriginal heritage

A search of the National, State and local heritage registers conducted by EMM on 9 November 2011 identified one non‐Aboriginal heritage item of significance, namely the Middle Falbrook Road Bridge over Glennies Creek which is listed under the Heritage Act 1977. This item is located approximately 2 km to the north‐west of ex‐pit dump Area 9, and will not be impacted by the extension of the NOC into this area.

The Open Cut Project EA prepared by URS in 2009 assessed the impacts of this proposal on the Dulwich Homestead Site which is listed as a heritage item of local significance under Singleton LEP. This item is located approximately 2 km to the west of ex‐pit dump Area 9, and will not be impacted by the extension of the NOC into this area.

No items or places of non‐Aboriginal heritage significance are located within the ex‐pit dump Area 9. Accordingly, there will be no impacts and no mitigation or monitoring measures are required. iv Soils and land capability

The NOC EA (Corkery 2007) included a soils survey and land capability assessment undertaken by Geoff Cunningham Natural Resources Consultants (2007b). This assessment has been reviewed for the proposed modifications. Soil surveys and SOILOSS analyses undertaken by Cunningham indicated that all soils in the NOC area have moderate erodibility.

Ex‐pit dump Area 9 was classified in the NOC assessment as land not capable of being regularly cultivated and land previously disturbed by mining activities which has poor to no suitability for agriculture.

Soil management techniques specific to the NOC area were presented in the NOC EA (Corkery 2007). An Erosion and Sediment Control Plan (a sub‐component of the Water Management Plan), prepared in accordance with Condition 40 of the project approvals, is currently with DP&I for assessment. Subject to approval, this plan will be amended to incorporate the elements of the proposed emplacement strategy. v Rehabilitation

The NOC area is currently a mix of active mining activity, ongoing waste rock placement, and rehabilitated land. The NOC EA (Corkery 2007) outlines the rehabilitation objectives at the site and the proposed final landform. These are reflected in the NOC MOP.

Rehabilitation is conducted on an ongoing basis. Where feasible, areas where mining and/or waste rock emplacement have been completed are rehabilitated quickly to ensure the stability of the proposed post‐ mining landform.

As described in Section 3.1, rehabilitation and development of the final landform within the NOC out‐of‐ pit extension area and other approved emplacements will continue to be undertaken progressively across the mined area. This rehabilitation will be consistent with the existing approved approach, methodologies and final land use options described in the existing NOC MOP. However, as identified in Section 2.2, the NOC MOP will be updated to accommodate relatively minor changes associated with the proposed modifications.

In addition, a Rehabilitation Management Plan, prepared in accordance with Condition 58 of the project approvals, has been submitted to DP&I for assessment. Subject to approval, this plan will be amended as required to include ex‐pit dump Area 9 and final landform plans for the NOC emplacement area. vi Waste

There are a number of waste streams that result from activities at the Complex. Waste rock from overburden and interburden and waste reject materials from the beneficiation of coal are emplaced on site and are used in the final landform.

The proposed modifications will not result in any increase in the production of waste rock, rather the strategy simply proposes to extend the existing NOC out‐of‐pit emplacement into ex‐pit dump Area 9.

A Waste Management Plan, prepared in accordance with Condition 54 project approvals, has been submitted to DP&I for assessment, and will be amended to reflect the changes proposed in the dumping strategy.

The proposed modifications will not contribute to any potential impacts resulting from other waste streams at the Complex. vii Visual

The Complex’s existing visual environment is typical of rural areas within the upper Hunter Valley, with the outlook from most residences including agricultural lands, open cut pits, overburden dumps, rehabilitated former mining areas, infrastructure and biodiversity conservation areas. The Complex is fully or partially screened from the majority of surrounding residences by topography, vegetation and screening bunds.

A visual assessment for the NOC was undertaken by Corkery in 2007. Surrounding residences were determined as either having full, partial or no visibility of the NOC area. The majority of residences had no visibility of the NOC with some residences to the west and south‐east having partial visibility and some residences to the north having full visibility. Elements of the NOC can also be viewed from some points on local roads including Middle Falbrook Road, Bridgman Road and Stony Point Road. The NOC was determined by Corkery (2007) to have a low visual impact from sensitive view points. This assessment was confirmed by URS (2009) for the Open Cut EA.

The ex‐pit dump Area 9 is located to the south of the approved NOC emplacement and will be at the same elevation. The most sensitive viewpoints, residences to the north that have full visibility, will have no increase in visual impact as the extension will be located behind the existing emplacement area and therefore will not be visible from this direction.

Sensitive view points to the south‐east will have only partial views of ex‐pit dump Area 9 due to the intervening topography and vegetation. Again the direction of the view points and the location of ex‐pit dump Area 9 in relation to the existing emplacement area will mean that it will be indiscernible visually. It is unlikely that there will be a significant increase in visual impact for these residences.

The proposed ex‐pit dump Area 9 may be partially visible to some views points to the west that already have a partial view of the NOC emplacement, as well as other facilities at the Complex. However, as this area will be consistent with the existing NOC emplacement in terms of height and features, it will be relatively indiscernible from these views. As these views are only partial, and are more than 2 km from the ex‐pit dump with an existing mining outlook, the modification is expected to have minimal to no visual impact.

It is considered that the proposed NOC emplacement extension is consistent with the surrounding landform and will not have a significant additional impact. Management of potential visual impacts will continue to be undertaken in accordance with Conditions 51 and 52 of the project approvals (Appendix A). viii Water

The existing water management system involves the full containment of “dirty” process water and surface runoff from disturbed areas on the site and the diversion of “clean” surface runoff from undisturbed or rehabilitated catchments into the downstream drainage system to Glennies Creek. Dirty water currently flows to three main water storage dams – the Portal Sump (west of the NOC pit), Possum Skin Dam (located north of the NOC pit) and Dam 1 (south of TD3). There are also a number of smaller dirty water storage dams east of the approved NOC emplacement area.

Ex‐pit dump Area 9 will be located in the catchment area which contains the approved NOC emplacement. There is currently sufficient capacity in the approved dirty water storage dam network to accommodate any changes resulting from the extension of the NOC emplacement in ex‐pit dump Area 9. It is considered that the extension to the NOC emplacement can be incorporated within the existing surface water management system. Therefore, there will be no significant impacts on surface water as a result of the proposed modifications.

A Water Management Plan, prepared in accordance with Condition 40 of the project approvals, is currently with DP&I for assessment. Subject to approval, this plan will be updated to include the extension to the emplacement area into ex‐pit dump Area 9.

The extension to the NOC emplacement will not impact groundwater.

6.2 Extension to approval timeframes

6.2.1 Biodiversity offset areas

In accordance with Conditions 41 to 44 of the project approvals, a biodiversity offset strategy was developed for the Complex. This strategy includes the five offset areas detailed in Condition 41 of the project approvals (see Section 3.2.1). The proposed modification seeks to extend the deadline for long term security of these offset areas, as required under Condition 43 of the project approvals. The biodiversity offset areas will continue to be managed in accordance with the strategy during the extension period.

The biodiversity offset strategy will form the basis for the Biodiversity Management Plan currently being prepared as required under Condition 44 of the project approvals.

Extension to the deadlines in Conditions 42 and 43 will have no material effect on the Complex as currently approved.

6.2.2 Overland conveyor

ROM coal extracted from the Underground operations is currently transported from the RL100 stockpile to the CHPP by off‐road truck haulage as permissible under the project approvals until the end of December 2011. Emissions associated with continued trucking during the extension period will remain consistent with existing operations.

Should the cessation of trucking coal between the Underground and CHPP be required at the end of December 2011, production of coal from the Underground operations would be suspended. This would result in substantial socio‐economic impacts with the loss of employment for the Underground workforce of 270 full‐time Integra personnel and contractors. There would also be other significant, indirect socio‐ economic impacts on businesses in the surrounding areas.

32 Integra Mine Complex Modification 1 Environmental Assessment

TE01 ×Ö ×Ö 35 31 N WE02 S"") ×Ö ×ÖGF 48 ×Ö THOMA D 64 34 S L DG12 S" ANE A S" S" ×Ö ×Ö 32 ! O ×Ö DG08 47 DG11 DG09 25 R (! HV01, HV02 D A BRIDGMAN T O S GLENNIES CREEK R E K ! O R O O R AD S" B S F O TO R L NY THERN DG10 FA " C NOR RAILWA K S R AIN Y E E E ×Ö M LIN E L 24 E R N D DG02 E OBLES ID K C LANE S M R IE O N A N D ×Ö E 23 L G ×Ö RL100 Coal 22 Stockpile ×Ö ×Ö NOC dump 20 21 E K ! RE CAMBERWELL C ×Ö S 19 E S" I N N D E N W DG07 Ex‐pit dump Area 9 A E E O N L HV05, HV06 G R G LA ND S"(! N H DG06 A IG ×Ö H 153 HAUL ROAD M ×Ö W G 18 A D Y I R 2011 B ×Ö NORTH PIT 17 ×ÖS"(! HV03, HV04 CHPP 16 KEY DG03 November TE02 25

C WE01 Open cut project area ") ×Ö ×Ö Integra Mine Complex Project ×Ö 14 15 ‐ Rev Approval boundary 13 EA M ×Ö I 11 ×Ö T Approved NOC emplacement N DG13 S" 12 E E ×Ö

E 10 A

030609 SOUTH PIT R Emplacement area

| C

×Ö T RAIL LOOP C 9 S ×Ö Receiver locations E E S DG04 I S" S

N ×Ö

Deposition dust R 8 N S"

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O E 7

L A ") Meteorological station D G ×Ö Design (! High Volume Air Sampling 6 GF TEOM 00.51km Integrated

Source: Aerial imagery from Integra Coal Mine Receiver locations Integra Mine Complex Modification 1 Environmental Assessment FIGURE 6.1 Integra Mine Complex Modification 1 Environmental Assessment

KEY KEY

030609 EA Rev A - 23 November 2011 A - 23 November Rev 030609 EA

Integrated Design Solutions | Integrated

Annual and seasonal windroses for Camberwell Meteorological Station (2003) EMGA MitchellMcLennan Integra Mine Complex Modification 1 Environmental Assessment FIGURE 6.2

7 Statement of commitments

Table 7.1 consolidates the mitigation and monitoring measures proposed to manage the potential impacts resulting from the proposed modifications. These measures have been considered in the context of the approved operations and the management plans required by the project approvals. The statement of commitments details those controls that are specific to the proposed modifications.

Table 7.1 Statement of commitments

Environmental attribute Commitment Air Quality Revision of the Air Quality Management Plan to incorporate elements of the emplacement strategy. Implementation of the control strategies listed in Section 6.1.1.iii, including:  regular watering of unsealed access roads and exposed surfaces;  minimisation of exposed surfaces;  management of dust‐generating construction activities during adverse wind conditions; and  minimisation of the drop heights between excavator buckets and trucks carrying overburden materials. Noise Implementation of the management measures listed in Section 6.1.2.iii, including:  attended monitoring in accordance with the INP during the hauling associated with the emplacement of waste rock in ex‐pit dump Area 9 to confirm the mine noise contribution remains negligible, in particular at residences situated to the north‐east of the mine;  in the event that unforseen events arise during haulage associated with the emplacement of waste rock in ex‐pit dump Area 9 and emissions are significant then provision of reasonable and feasible mitigation measures would be required; and  revision of the Noise Management Plan to incorporate elements of the emplacement strategy. Soils and land capability Revision of the Erosion and Sediment Control Plan to incorporate elements of the emplacement strategy. Rehabilitation Revision of the Rehabilitation Management Plan to incorporate elements of the emplacement strategy. Waste Revision of the Waste Management Plan to incorporate elements of the emplacement strategy. Water Revision of the Water Management Plan to incorporate elements of the emplacement strategy.

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8 Conclusion

Integra seeks approval from the Minister for Planning and Infrastructure to modify project approvals PA 08_0101 and PA 08_0102 under Section 75W of the EP&A Act. The proposed modifications are in response to recent investigations conducted by Integra which:

 identified critical constraints in relation to NOC waste rock emplacement capacity. Without resolution, this will significantly impact the development of the pit, and ultimately, cause NOC operations to cease;

 determined that extension to the timeframes stipulated in Conditions 42 and 43 is required to allow Integra sufficient time to complete further investigations into the feasibility of mechanisms to provide long term security over the biodiversity offset areas and revise the biodiversity offset strategy to allow an appropriate biodiversity conservation option to be fully investigated and presented in a separate modification application, if applicable; and

 indicated that the overland conveyor required under Condition 48 is not economically viable and its construction would result in significant disruption to existing operations, with only very minor environmental benefits. Extension to the timeframe stipulated in Condition 48 for the installation and construction of the conveyor will allow a robust assessment of, and consultation on, the potential impacts associated with its removal from the project approvals. It will also enable a detailed study of potential additional dust amelioration measures to be implemented in this area for underground coal haulage. Further investigations into the potential construction and operation of the conveyor will also be continued during this period.

The environmental impact assessment determined that the potential impacts associated with the proposed modifications are minor to negligible.

Accordingly, the proposed modifications can be managed under the Complex’s existing management systems which will be revised as necessary subject to approval of the proposed modifications. Additional management measures have been proposed for the management of potential noise and air quality impacts within the extension of the NOC emplacement into ex‐pit dump Area 9, though impacts are expected to be minor.

It is considered that, on balance, the overall potential impacts of the proposed modifications are consistent with the approved development and the objects of the EP&A Act.

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References

Beranek, L.L. (1971) Noise and Vibration Control, pp. 174‐177.

Countrywide Ecological Service (2007) Fauna Assessment of the Glennies Creek Coal Mine in R.W. Corkery & Co. Pty Limited (2007) Specialist Consultant Studies Compendium ‐ Environmental Assessment Glennies Creek Open Cut Coal Mine.

Geoff Cunningham Natural Resource Consultants (2007a) Flora Assessment of the Glennies Creek Open Cut Coal Mine in R.W. Corkery & Co. Pty Limited (2007) Specialist Consultant Studies Compendium ‐ Environmental Assessment Glennies Creek Open Cut Coal Mine.

Geoff Cunningham Natural Resource Consultants (2007b) Soils Survey and Land Capability Assessment in R.W. Corkery & Co. Pty Limited (2007) Specialist Consultant Studies Compendium ‐ Environmental Assessment Glennies Creek Open Cut Coal Mine.

HLA Envirosciences Pty Limited (2007) Glennies Creek Open Cut Coal Mine – Aboriginal Heritage Assessment in R.W. Corkery & Co. Pty Limited (2007) Specialist Consultant Studies Compendium ‐ Environmental Assessment Glennies Creek Open Cut Coal Mine.

Holmes Air Sciences Pty Limited (2007) Air Quality Assessment: Glennies Creek Open Cut Coal Mine in R.W. Corkery & Co. Pty Limited (2007) Specialist Consultant Studies Compendium ‐ Environmental Assessment Glennies Creek Open Cut Coal Mine.

Office of Environment and Heritage (2000) NSW Industrial Noise Policy NSW Government.

PAEHolmes Pty Limited (2010) Results of modified dispersions modelling completed post‐EA exhibition period for Integra Open Cut Project in URS Australia Pty Limited (2009) Environmental Assessment Integra Open Cut Project.

R.W. Corkery & Co. Pty Limited (2007) Environmental Assessment Glennies Creek Open Cut Coal Mine prepared on behalf of Integra Coal Operations Pty Limited.

R.W. Corkery & Co. Pty Limited (2011) Annual Environmental Management Report for the Integra North Open Cut reporting period April 2010 – March 2011 prepared on behalf of Integra Coal operations Pty Limited.

Standards Australia (1997) AS 1055‐1997: Acoustics – Description and Measurement of Environmental Noise.

URS Australia Pty Limited (2009) Environmental Assessment Integra Open Cut Project prepared on behalf of Integra Coal Operations Pty Limited.

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Acronyms

AEMR Annual Environmental Management Report AHD Australian Height Datum AS Australian Standard CHPP Coal Handling and Preparation Plant CCC Community Consultative Committee DP&I Department of Planning and Infrastructure DTIRIS Department of Trade and Investment Regional Infrastructure and Services EA Environmental Assessment EMM EMGA Mitchell McLennan Pty Limited EP&A Act Environmental Planning and Assessment Act 1979 EPBC Act Environment Protection and Biodiversity Conservation Act 1999 EPL Environment Protection Licence ESD Ecologically sustainable development INP Industrial Noise Policy LEP Local Environmental Plan LGA Local Government Area Mbcm Million bank cubic metres Mtpa Million tonnes per annum MOP Mining Operations Plan NES National environmental significance NOC North Open Cut OEH Office of Environment and Heritage POEO Act Protection of the Environment Operations Act 1997 REMP Rehabilitation Environmental Management Plan ROM Run of mine SEPP State environmental planning policy SOC South Open Cut TD2 Tailings Dam 2 TD3 Tailings Dam 3 TEOM Tapered elemental oscillation microbalance TSP Total Suspended Particulates

iii

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iv APPENDIXA A PROJECT APPROVALS

Project Approval

Section 75J of the Environmental Planning and Assessment Act 1979

I approve the project applications referred to in Schedule 1, subject to the preamble in Schedule 1 and the conditions in Schedules 2 to 5.

These conditions are required to: • prevent, minimise, andlor offset adverse environmental impacts; • set standards and performance measures for acceptable environmental performance; • require regular monitoring and reporting; and • provide for the ongoing environmental management of the projects. i~ The H O~ n y Kell y MLC Minister for Planning MP

2 6 NOV 2010 Sydney 2010

SCHEDULE 1

Application Numbers:

Proponent: Integra Coal Operations Pty Ltd

Approval Authority: Minister for Planning

Land: See Appendix 1

Project 08_0101: Integra Underground Project

Project 08_0102: Integra Open Cut Project ( While a single document, this instrument contains two project approvals: one for the Integra underground project and the other for the Integra open cut project. For the purposes of project 08_0101 , thi s instrument appli es only to Preamble: the underg rou nd project area. For the purposes of project 08_0 102, this instrument applies onl y to the Integra open cut project area. Together these project areas are considered to comprise the Integra mine complex.

NSW Government Department of PlannIng TABLE OF CONTENTS

DEFINITIONS 3

ADMINISTRATIVE CONDITIONS 5

Obligation to Minimise Harm to the Environment 5 Terms of Approval 5 Limits on Approval 5 Surrender of Consents & Approvals 6 Structural Adequacy 6 Demolition 6 Operation of Plant & Equipment 6 Staged Submission of Any Strategy, Plan and Program 6

ENVIRONMENTAL PERFORMANCE CONDITIONS 7

Acquisition Upon Request 7 Noise 7 Blasting 12 Air Quality & Greenhouse Gas 14 Meteorological Monitoring 16 Subsidence 16 Soil & Water 17 Biodiversity 20 Heritage 21 Transport 22 Visual 22 Waste 22 Bushfire Management 22 Rehabilitation 22

ADDITIONAL PROCEDURES 25

Notification of Landowners 25 Independent Review 25 Land Acquisition 26

ENVIRONMENTAL MANAGEMENT, REPORTING AND AUDITING 28

Environmental Management 28 Reporting 29 Independent Environmental Audit 29 Access to Information 30

APPENDIX 1: SCHEDULE OF LAND 31

APPENDIX 2: PREVIOUS EAS 35

APPENDIX 3: PROJECT AREAS 36

APPENDIX 4: PROJECT LAYOUT PLANS 38

APPENDIX 5: LAND OWNERSHIP PLANS & RESIDENTIAL RECEIVERS 41

APPENDIX 6: ALTERNATE NOISE CONDITIONS 45

APPENDIX 7: GLENNIES CREEK AND STATION CREEK ALLUVIAL AQUIFERS 47

APPENDIX 8: AREA FOR FURTHER ARCHAEOLOGICAL INVESTIGATION 48

APPENDIX 9: CONCEPTUAL FINAL LANDFORM AND OFFSETS 49

APPENDIX 10: STATEMENT OF COMMITMENTS 52

NSW Government Department of Planning DEFINITIONS

Annual review The review required by Condition 3 of Schedule 5 Approved mine plans The plans for underground mining depicted in the figures in Appendix 4 Adaptive management Adaptive management includes monitoring subsidence effects and impacts and, based on the results, modifying the mine plan as mining proceeds to ensure that the effects, impacts and/or associated environmental consequences remain within predicted and/or designated ranges ARTC Australian Rail Track Corporation BCA Building Code of Australia Blast misfire The failure of one or more holes in a blast pattern to initiate Built features Includes any building or work erected or constructed on land, and includes dwellings and infrastructure such as any formed road, street, path, walk or driveway, any pipeline, water, sewer, telephone, gas or other service main CCC Community Consultative Committee CHPP Coal Handling and Preparation Plant Conditions of this approval Conditions contained in Schedules 2 to 5 inclusive Council Singleton Shire Council Day The period from 7am to 6pm on Monday to Saturday, and 8am to 6pm on Sundays and Public Holidays DECCW Department of Environment, Climate Change and Water Department Department of Planning Director-General Director-General of the Department, or delegate EEC Endangered Ecological Community as defined under the NSW Threatened Species Conservation Act 1995 Environmental consequences The environmental consequences of subsidence impacts, including: damage to built features; loss of surface water flows to the subsurface; loss of standing pools; adverse water quality impacts; development of iron bacterial mats; rock falls; damage to Aboriginal heritage sites; impacts on aquatic ecology; and ponding EP&A Act Environmental Planning and Assessment Act 1979 EP&A Regulation Environmental Planning and Assessment Regulation 2000 EPL Environment Protection Licence issued under the POEO Act Evening The period from 6pm to 10pm Feasible Feasible relates to engineering considerations and what is practical to build or carry out First workings Development of main headings and gateroads underground Heritage Branch Heritage Branch of the Department 1&1 NSW Department of Industry and Investment, trading as Industry and Investment NSW Incident A set of circumstances that causes or threatens to cause material harm to the environment, and/or breaches or exceeds the limits or performance measures/criteria in this approva! Integra mine complex The open cut and underground project areas, considered collectively Land In general, the definition of land is consistent with the definition in the EP&A Act. However, in relation to the noise and air quality conditions in Schedules 3 and 4 it means the whole of a lot, or contiguous lots owned by the same landowner, in a current plan registered at the Land Titles Office at the date of this approval Material harm to the environment Actual or potential hann to the health or safety of human beings or to ecosystems that is not trivial Minister Minister for Planning, or delegate Mitigation Activities associated with reducing the impacts of the projects MSB NSW Mine Subsidence Board NAG Noise assessment group, see the figures in Appendix 5 for more detail Negligible Small and unimportant, such as to be not worth considering Night The period from 10pm to 7am on Monday to Saturday, and 10pm to 8am on Sundays and Public Holidays Northern mining area The area outlined with a solid white line on the figure in Appendix 3 titled "open cut project area" NOW NSW Office of Water OC statement of commitments The Proponent's commitments for the open cut project in Appendix 10 Offset strategy The biodiversity and enhancement program described in the EA, and depicted generally in the figure in Appendix 8 Open cut mining operations Includes overburden removal and the extraction, processing, handling, storage and transportation of coal within the open cut project area Open cut project The development described in the open cut project EA

NSW Government 3 Department of Planning Open cut project area All land to which project application 08_0102 applies, as listed in Appendix 1 and outlined with a solid black line on the figure in Appendix 3 Open cut project EA Environmental assessment titled Integra Open Cut Project, dated June 2009, and the associated response to submissions titled Submissions Report, dated March 2010 POEO Act Protection of the Environment Operations Act 1997 Previous open cut EAs The documents listed in Appendix 2 Previous underground EAs The documents listed in Appendix 2 Privately-owned land Land that is not owned by a public agency, or a mining company (or its subsidiary) Projects The open cut project and underground project considered collectively, including the implementation of any development associated with the previous open cut and underground EAs Proponent Integra Coal Operations Pty ltd, or its successors Public infrastructure Linear and related infrastructure that provides services to the general public, such as roads, railways, water supply, gas supply, drainage, sewerage, telephony, telecommunications etc Reasonable Reasonable relates to the application of judgement in arriving at a decision, taking into account: mitigation benefits, cost of mitigation versus benefits provided, community views and the nature and extent of potential improvements Rehabilitation The treatment or management of land disturbed by the projects for the purpose of establishing a safe, stable and non-polluting environment, and includes remediation Remediation Activities associated with partially or fully repairing the impacts andlor environmental consequences of the project ROM coal Run-af-mine coal RTA Roads and Traffic Authority Safe, serviceable and repairable Safe means no danger to users, serviceable means available for its intended purpose, and repairable means damaged components can be repaired economically Second workings Extraction of coal from longwall panels, mini-wall panels or pillar extraction Site The land listed in Appendix 1, known collectively as the Integra mine complex Subsidence The totality of subsidence effects and impacts and their associated environmental consequences Subsidence effects Deformation of the ground mass due to mining, including all mining-induced ground movements, including both vertical and horizontal displacement, tilt, strain and curvature Subsidence impacts Physical changes to the ground and its surface caused by sUbsidence effects, including tensile and shear cracking of the rock mass, localised buckling of strata caused by valley closure and upsidence and surface depressions or troughs UG statement of commitments The Proponent's commitments for the underground project in Appendix 10 Underground mining operations Includes first workings and the extraction, processing, handling, storage, and transportation of coal within the underground project area Underground project The development described in the underground project EA Underground project area All land to which project application 08_0101 applies, as listed in Appendix 1 and outlined with a dashed black line on the figure in Appendix 3 Underground project EA Environmental assessment titled Proposed Integra Underground Coal Project, dated July 2009, and the associated response to submissions, titled Integra Underground Project Collated Response to Submissions, dated March 2010 Western mining area The area outlined with a solid light blue line on the figure in Appendix 3 titled "open cut project area"

NSW Government 4 Department of Planning SCHEDULE 2 ADMINISTRATIVE CONDITONS

OBLIGATION TO MINIMISE HARM TO THE ENVIRONMENT

1. The Proponent shall implement all reasonable and feasible measures to prevent andlor minimise any material harm to the environment that may result from the construction operation or rehabilitation of the projects.

TERMS OF APPROVAL

2. The Proponent shall carry out the open cut project generally in accordance with the: (a) previous open cut EAs; (b) open cut project EA; (c) OC statement of commitments; and (d) conditions of this approval.

3. The Proponent shall carry out the underground project generally in accordance with the: (a) previous underground EAs; (b) underground project EA; (c) UG statement of commitments; and (d) conditions of this approval.

Notes to Conditions 2 & 3: • The genera/layout of the projects is shown in Appendix 4; • This project approval is intended to regulate all existing and approved development on site; and • The Proponent is to operate and manage both projects, to the greatest extent practicable, as an integrated mining complex.

4. If there is any inconsistency between the documents listed in condition 2 above, or any inconsistency between the documents listed in condition 3 above, the most recent document in the relevant condition shall prevail to the extent of the inconsistency. However, the conditions of this approval shall prevail to the extent of any inconsistency.

5. The Proponent shall comply with any reasonable requirementis of the Director-General arising from the Department's assessment of: (a) any reports, strategies, plans, programs, reviews, audits, or correspondence that are submitted in accordance with the conditions of this approval; and (b) the implementation of any actions or measures contained in these documents.

LIMITS ON APPROVAL

Mining Operations

6. The Proponent may carry out open cut mining operations on site until 31 December 2022.

7. The Proponent may carry out underground mining operations on site until 31 Decem ber 2035.

Note to Conditions 6 & 7: Under this approval, the Proponent is required to rehabilitate the site and carry out additional undertakings to the satisfaction of both the Director-General and the Director-General of 1&1 NSW. Consequentfy, this approval will continue to apply in all respects - other than the right to conduct mining operations - until the rehabilitation of the site and these additional undertakings have been carried out satisfactorily.

Coal Production

8. The Proponent shall not extract more than: (a) 1.5 million tonnes of ROM coal from the open cut mining operations in the northern mining area in a calendar year; (b) 4.5 million tonnes of ROM coal from the open cut mining operations in the western mining area in a calendar year; and (c) 4.5 million tonnes of ROM coal from the underground mining operations on site in a calendar year.

Coal Transport

9. The Proponent shall not: (a) export more than 7.3 million tonnes of coal from the site in a calendar year; (b) dispatch more than 7 trains a day from the site; and (c) dispatch more than 3 trains a day from the site, when averaged over each calendar year.

NSW Government 5 Department of Planning 10. The Proponent shall not transport coal from the site by road, except in an emergency situation and with the prior written approval of the Director-General.

Hours of Operation

11. The Proponent shall only carry out: (a) open cut mining operations in the northern mining area during the day and evening; and (b) vegetation clearing and topsoil stripping on site between 7am and 6pm.

SURRENDER OF CONSENTS AND APPROVALS

12. By the end of June 2011, or as otherwise agreed by the Director-General, the Proponent shall surrender all existing development consents and project approvals for the site (other than this approval and the development consent for the Glennies Creek to Ashton Water Pipeline granted by Council on 13 February 2004) in accordance with Sections 75YA and 104A of the EP&A Act.

Note: This requirement does not extend to the surrender of construction and occupation certificates for existing and proposed building works under Part 4A of the EP&A Act. Surrender of a consent or approval should not be understood as implying that works legally constructed under a valid consent or approval can no longer be legally maintained or used.

13. Prior to the surrender of these consents and/or approvals, the conditions of this approval (including any notes) shall prevail to the extent of any inconsistency with the conditions of these consents and/or approvals.

STRUCTURAL ADEQUACY

14. The Proponent shall ensure that all new buildings and structures, and any alterations or additions to existing buildings and structures, are constructed in accordance with the relevant requirements of the BCA and MSB.

Noles: • Under Part 4A of the EP&A Act, the Proponent is required to obtain construction and occupation certificates for the proposed building works; • Part 8 of the EP&A Regulation sets out the requirements for the certification of the projects; and • The Integra mine complex is located in the Patrick Plains Mine Subsidence District. Under Section 15 of the Mine Subsidence Compensation Act 1961, the Proponent is required to obtain the MSB's approval before constructing or relocating any improvements on site.

DEMOLITION

15. The Proponent shall ensure that all demolition work is carried out in accordance with Australian Standard AS 2601-2001: The Demolition of Structures, or its latest version.

OPERATION OF PLANT AND EQUIPMENT

16. The Proponent shall ensure that all the plant and equipment used on site, or to transport coal from the site, is: (a) maintained in a proper and efficient condition; and (b) operated in a proper and efficient manner.

STAGED SUBMISSION OF ANY STRATEGY, PLAN AND PROGRAM

17. With the approval of the Director-General, the Proponent may submit any strategy, plan or program required by this approval on a progressive basis.

Note: While any strategy, plan or program may be submitted on a progressive basis, the Proponent will need to ensure that the existing operations of the site are covered by suitable strategies, plans or programs at all times.

18. Until they are replaced by an equivalent strategy, plan or program approved under this approval, the Proponent shall continue to implement the existing strategies, plans or programs for development on site that have been approved under previous consents or approvals.

NSW Government 6 Department of Planning SCHEDULE 3 ENVIRONMENTAL PERFORMANCE CONDITIONS

ACQUISITION UPON REQUEST

1. Upon receiving a written request for acquisition from the owner of the land listed in Table 1, the Proponent shall acquire the land in accordance with the procedures in Conditions 6-7 of Schedule 4.

Table 1: Land subject to acquisition upon request

... . Noise . '. Air .' ,::" . 9.,.W&N ...... - - • . ' . .10-E &B '" - - . . 13 - P & k Russell '. - - 64 - W & A Gardner - , .' - - - '. 47 B & R Cherry BO. G '. " . ' - . - • . • 87 - B & R Richards 87-B&R - 106 - B & R Richards .. - - 110-GJ Hall - - '. 153-R&DHall . 153~R & DHall '. f - . 351 - - -

.. 352 '. - ...... -

Note: To identify the locations referred to in Tabfe 1, see the figures in Appendix 5.

Once, in the opinion of the Director-General, the open cut mining operations have been substantially completed on site this condition shall be replaced with Condition 1 of Appendix 6.

NOISE

Noise Criteria

2. Except for the noise-affected land referred to in Table 1, the Proponent shall ensure that the noise generated by the projects does not exceed the criteria in Table 2 at any residence on privately-owned land or on more than 25 percent of any privately-owned land.

Table 2: Noise criteria dB(A)

. '. Day Night I I I I L ",,~,'

NAG 1 All land .. ' 38 38 . 36 46 NAG 2 All iland '...... 39 39 37 47 NAG 3 All land '. 40 . '. 40 39 49 . . . 99, 100 39 39 39 47 88,91,95 . 40 .... 40 40 47 NAG4 •• 105,161 41 . 41 . 41 47 All other land' 42 42 37 47

104 . .' 35 35 35 52 139 . .. .36 36 36 52 103 . 37 37 37 52 40 ...... ,...... •..... 121 40 40 52 NAG 5 118, 154 . 43 43 43 52 112 45 ' . 45 45 52 111 . 47 47 47 52 All other; ,,' land 50 46 42 52

NSW Government 7 Department of Planning , , , >137 , ' ' ' '35 35 35 ' 48 133 " ' '. 37 ,37 ' 37 48 NAG 6 , •,132 38 38 38, ., 48 . ,41 , " , ,'" All, •land 41 38 48 NAG? ' All land . ,45 " .• , 42 39 49 .142 ,',' , 35 35 35 ,.45 .. NAGS land 42 42 35 " , ' 45 , i146,148,149 , " 35 ,35 ,.,.36 ,"~'c' 48 ", ',".,. 143;144,145,147,150,151,152 36, ' " 36 ' ,36 ',.48 ' NAG 9 12,' " ", " 37 ' 37 ' 37 48 ,,3,4. , 39 39 39 ' 48 AILother· land 40 .', ' 40 3S ' 48 ,5, , 40 40 40 47

6,11 " ,41 41 41 ' , 47 NAG 10 ',' 8"'. " • ' " " , 42, 42 .42 47 Aif other I land ' 39 39 37 47

, " 18 " ' , 35 35 ' • 35 49 , 20,21 37' """ 37 ' 36 49 , , 37 ' 19 • 37 37 49 17 38 , 38 38 49 NAG11 " 49 ,"""" 7 •• ,39 39 39

, 12,15 ',' , , 40 40 40 49 '" 14,16 , 42 42 42 .. ",' 49 All other '""' .. ,',, I land 41 41 39, " 49 ' 35 m."" " ' " ' 35 35 46 51,56 .37 37 37 45 '53,57 , 38 38 ' 38 ' 45 NAG 12 50,54 39 39 39 , 45 62 , . ,,40 40 45 , 49 " '. All other I !.land 38 38 ' 35 ' 45. , " i .. ~~; ;~:~~: ~~' 28,29, 30,36,37, 35. 35 35 46

" , t31 • 36 36 35 46

, ' 42,.43 36 36. 36 ' 46 • . 32 , " , " 37 37 35 46 NAGA 46 """"", .. " 122,23 , 37 37 37 ,

" " , 34 " . 39 39 36 46

" 36 " , ' 39 " 39 35 46

All other ,", Iland 39 . • 39 36 .' 46

NAG 13' All land 37. 37 35 .' 45 , 47 39 . 39 39 . 45 . NAGC 63 40 40 40 45 .·cc· All 45 land 37 37 35 .' 44,48 36 36 36 48 NAG 0 '40. 39 39 39 48 All other 'iland 40 40 38 48 65,66 . 39 39 39 . 50 67 40 40 40 50 NAGF 68 42 42 42 50 ...... AII.other I land 40 40 40. 50 NAGG All I land , 41 41 39 50

NSW Government 8 Department of Planning All other privately-owned land 35 35 35 45

Notes: • To identify the locations referred to in Table 2, see the figures in Appendix 5; and • Noise generated by the projects is to be measured in accordance with the relevant procedures and exemptions (including certain meleora/ogiea' conditions), of the NSW Industrial Noise Policy.

However, these criteria do not apply if the Proponent has a written agreement with the relevant landowner to exceed the criteria, and the Proponent has advised the Department in writing of the terms of this agreement.

Once, in the opinion of the Director-General, the open cut mining operations have been substantially completed on site this condition shall be replaced with Condition 2 of Appendix 6.

Noise Acquisition Criteria

3. If noise generated by the projects exceeds the criteria in Table 3 at any residence on privately-owned land or on more than 25 percent of any privately-owned land, then upon receiving a written request for acquisition from the landowner, the Proponent shall acquire the land in accordance with the procedures in Conditions 6-7 of Schedule 4.

Tabfe 3: Noise Acquisition Criteria dB(A)

. Day Evening Location ... I'li.!lht. ."~~,~~g{!~_~!'!L,, ... , "j-:'-:-,'--'_-~.-_:~~-;;(!_;;!.;/,',-_:"- ,,~,~,~H(!,~"-!!~L 44 44 42 Alrj)riv~teIY:~':Inedl.andint:J~(3! . ._.~._ .. ___ ,~ __ ".c-""_"._~,,_._. ____ ._,,_,, ~II. erh/atEl'X:0':l~.Eldlan~inNA(3~ 45 45 43 .. ~IIJ)ri~alE>IY:".':InEldl[lndint:J"(3.3 .... 46 45 ~lIprivatell':()':I~"d.!.a.ndin,.N~(3~. 48 48 AIIJ>riv~tell':()':Ined.lan d.. int:JA(35 .. 56 52 48 .~II .. pri.vat~'X:.9':1')e.~.landi~•. NA(3.§ .. .

Notes: • To identify the locations referred to in Table 3, see the figures in Appendix 5; • Noise generated by the projects is to be measured in accordance with the relevant procedures and exemptions (including certain meteorological conditions), of the NSW Industria! Noise Policy; and • For this condition to apply, the exceedances of the criteria must be systemic.

Cumulative Noise Criteria

4. Except for the noise-affected land referred to in Table 1, the Proponent shall implement all reasonable and feasible measures to ensure that the noise generated by the projects combined with the noise generated by other mines in the area does not exceed the criteria in Table 4 at any residence on privately·owned land or on more than 25 percent of any privately-owned land.

NSW Government 9 Department of Planning Table 4: Cumulative Noise Criteria dB(A) LAeq (period)

Location . Ni!l~t NAGs 4, 5, 8 and 9 : 40 .,.,.-;~~,~-~ All other privately-owned land 50 145 . 40

Notes: • To identify the locations referred to in Table 4, see the figures in Appendix 5; and • Cumulative noise is to be measured in accordance with the relevant procedures and exemptions (including certain meteorological conditions) of the NSW Industrial Noise Policy.

Cumulative Noise Acquisition Criteria

5. [f the noise generated by the projects combined with the noise generated by other mines in the area exceeds the criteria in Table 5 at any residence on privately-owned [and or on more than 25 percent of privately-owned [and, then upon receiving a written request for acquisition from the [and owner, the Proponent shall acquire the [and on as equitable basis as possible with the relevant mines in accordance with the procedures in Conditions 6-7 of Schedule 4.

Table 5: Cumulative Noise Acquisition Criteria dB(A) LAN/ (period)

, Evening location Day ·,._·1· .. "_..'·.. __ .",,.',, ___ .,,___ __ NAGs 4, 5, 8 and 9 60 . 50 All other privately-oW~"dlandr55 50

Notes: • To identify the locations referred to in Table 5, see the applicable figures in Appendix 5; • Cumulative noise is to be measured In accordance with the relevant procedures and exemptions (including certain meteorological conditions), of the NSW Industrial Noise Policy; and • For these conditions to apply, the exceedances of the criteria must be systemic.

Additional Noise Mitigation Measures

6. Upon receiving a written request from the owner of any residence: (a) on the [and listed in T able 1; or (b) on [and listed in Tab[e 6; or (c) on privately-owned [and where subsequent noise monitoring shows the noise generated by the projects is greater than or equal to the criteria in Table 7, the Proponent shall implement additional noise mitigation measures (such as double-glazing, insulation, andlor air conditioning) at the residence in consultation with the landowner. These measures must be reasonable and feasible.

[f within 3 months of receiving this request from the owner, the Proponent and the owner cannot agree on the measures to be implemented, or there is a dispute about the implementation of these measures, then either party may refer the matter to the Director-General for resolution.

Once, in the opinion of the Director-Genera[, the open cut mining operations have been substantially completed on site Table 6 in this condition shall be replaced with the Tab[e in Condition 3 of Appendix 6.

Table 6: Land where additional noise mitigation measures are available on request

5-DPCax 6-'-W G Cox 8-0K Geelan 11 - F Ferraro 14.- M Hoggan 16 - A Lambkin 47 - B & R Cherry 50 - 0 & M Bridge 53 - K & J Badiar 54 - G Holmes 62 - 0 Moran 63~J & M Moore 91 - T & 0 Olofsson 95-J & T Clarke 105 - J & G Mcinerney 161 - V Lopes 111 - T Burgess 112 - S & C Ernst

Note: To identffy the locations referred to in Table 6, see the figures in Appendix 5.

NSW Government 10 Department of Planning Table 7: Additional noise mitigation criteria dB(A)

Day Evening Location 1,,,,,,,, .....Ni!!~t "".~,~,~H,~~r.I}),," , "'··J·,:·:.::~',':.::',',',~~~;_~·(,;:;;i;)~' '"",,,. ,,~~~fIJ!,?:,'!!!''!L. All privat",I~:ownedlan(j in NA.~ .. 1 41 41 , .. ",,,,,:L,,. :39 42 i 42 \ 40 "!1.priv~~,,,IY:?"'"ced.l~nd.i~.I~.II~.? ... . " "'"i''' 43 43 42 AllprivS'tely:o",9!'~ .1,,'2cl.· in .. ~A9 .. :>...... "}-'-"'''~''''-' "".,----. ".--.~ ,,;.,,-- ' , ,-, AU priyat"li~()"'D,,~.I.and. i.r1.~II~.i...... + 45 45 :,':-"::':~:--,,1-::,':""" 40 53 49 i 45 .1I~.p:iy~.t~JX:(J",n".dl.a."d.i.n.~1I9 .. 2...... S -"""""--'"--''''---~''''''' ,'".,,'" '''''''''-''''''i--''"'' .1I.I1.priv"t"!x:,?,,,n,,(j ..lilnd.il1..~.II.(3El ... . 44 41 42 1I.llpri.v."t"I.y:.o,:,,:ne.dIil~din~II.~.7.. . ,> " .. ",-, -... , .. ",-,"-". I\llerivat~ly:o"'.'l~dla~di.n.~II.Q.8, .. 45 ...... t 45 38 Allllri::ately:()",n~dland in NA(39 .... : 43 43 41 Allpriy"teIY:()"'!1e?lancl.in~II(310 42 42 40 I\HEri"."tEllx:,?","edlancli"~1I~11. .• .•.. 44 44 42 41 41 38 .. lIlleriva~~Iy:(),:,,:~ed.lil.nd.. i~.~I\G.. 1.2 ...... , """ , , -- '''''-'' 42 42 39 IIIIeriv"t"ly-()",n~dla"din~1\911. .... i.... ""0<""" , .. ",~",,,,' 40 40 38 fIIlpri~,!!elY:()"''2"dland.i'2~II~~ .. , ,,'.. ,,---"""~,"-- " 1111 privately:o",ned .. I.al1cl. i.n.NI\9C: ... . 40 40 38 AH.r>riv.ately:owne~la~d.in~1\9[) ... . 43 43 41 ..AIIprivatElly:()",n"d.l~nd .. i.".. ~.A~ .. F .. "-r--""" 43 43 43 IIlleriv",telX:()\'InEld.landin.~1\9(; .. 44 44 42 All other privately-owned land 38 38 38

Notes: • To identify the locations referred to in Table 7, see the figures in Appendix 5; e Noise generated by the project is to be measured in accordance with the relevant procedures and exemptions (including certain meteorological conditions), of the NSW Industrial Noise Policy; and • For these conditions to apply, the exceedances of the criteria must be systemic.

7. If the cumulative noise generated by the projects combined with the noise generated by other mines in the area exceeds the criteria at any residence on the land referred to in Table 8, then upon receiving a written request from the owner, the Proponent shall implement additional noise mitigation measures (such as double·glazing, insulation, andlor air conditioning) at the residence in consultation with the landowner. These measures must be reasonable and feasible. The Proponent shall share the costs associated with implementing these measures on as equitable basis as possible with the relevant mines.

If within 3 months of receiving this request from the owner, the Proponent and the owner cannot agree on the measures to be implemented, or there is a dispute about the implementation of these measures, then either party may refer the matter to the Director-General for resolution.

Table 8: Cumulative NOise Mitigation Criteria dB(A) LAeq (perioO)

Locationi.~~)' .. LEvenin!! . Night.. . .. _ ·42 NAGs ~,5,8and~ . 57 .,.i 47 All other privately owned landT·52·· 47 42

Notes: • To identify the locations referred to in Table 8, see the figures in Appendix 5; • Cumulative noise is to be measured in accordance with the relevant procedures and exemptions (including certain meteorological conditions), of the NSW Industrial Noise Policy; and e For these conditions to apply, the exceedances of the criteria must be systemic.

Rail Noise

8. The Proponent shall seek to ensure that its rail spur is only accessed by locomotives that are approved to operate on the NSW rail network in accordance with noise limits L6.1 to L6A in RailCorp's EPL (No. 12208) and ARTC's EPL (No. 3142) or a Pollution Control Approval issued under the former Pollution Control Act 1970.

NSW Government 11 Department of Planning Operating Conditions

9. The Proponent shall: (a) implement best practice noise management, including all reasonable and feasible noise mitigation measures to minimise the operational, low frequency, and rail noise generated by the projects; (b) regularly assess the real-time noise monitoring and meteorological forecasting data and relocate, modify, and/or stop operations on site to ensure compliance with the relevant conditions of this approval; and (c) co-ordinate the noise management on site with the noise management at nearby mines to minimise the cumulative noise impacts of the mines, to the satisfaction of the Director-General.

Noise Management Plan

10. The Proponent shall prepare and implement a Noise Management Plan for the projects to the satisfaction of the Director-General. This plan must: (a) be prepared in consultation with DECCW, and submitted to the Director-General for approval by the end of March 2011 ; (b) describe the noise mitigation measures that would be implemented to ensure compliance with the relevant conditions of this approval, including a real-time noise management system that employs both reactive and proactive mitigation measures; (c) include a noise monitoring program that: • uses a combination of real-time and supplementary attended monitoring to evaluate the performance of the projects; and • includes a protocol for determining exceedances of the relevant conditions of this approval; (d) include a protocol that has been prepared in consultation with the owners of the nearby mines to minimise the cumulative noise impacts of the mines.

BLASTING

Blasting Criteria

11. The Proponent shall ensure that the blasting on site does not cause exceedances of the criteria in Table 9.

Table 9: Blasting Criteria

• Airblast Receiver ! Overpressure Ground Vibration Allowable Exceedance i ... (~l3tlj~~:(>'!~)l ... ,._._ (PPV{:rnl~)) 15%ofihei~iainumberoiblasts Residence on privately' overa periqd of12 months owned land 120 10 . ·······:-0'/0 ..

." ---~" ' Main Northern Railway 25 0% .'2UIVert~§1n<:l~ridggsl_· All public infrastructure ; 50 0%

However, these criteria do not apply if the Proponent has a written agreement with the relevant landowner or infrastructure owner to exceed the criteria, and the Proponent has advised the Department in writing of the terms of this agreement.

Blasting Hours

12. The Proponent shall only carry out blasting on site between 9am and 5pm Monday to Saturday inclusive. No blasting is allowed on Sundays, public holidays, or at any other time without the written approval of the Director-General.

Blasting Frequency

13. The Proponent shall not carry out more than: (a) 1 blast a day in the northern mining area unless an additional blast is required following a blast misfire; (b) 2 blasts a day in the existing Camberwell south pit, and then 1 blast a day when the mining moves from this pit into the western mining area unless an additional blast is required following a blast misfire; and (c) 10 blasts a week on site, averaged over any 12 month period.

NSW Government 12 Department of Planning Property Inspections

14. If the Proponent receives a written request from the owner of any privately-owned land within 2 kilometres of the approved open cut mining pits on site for a property inspection to establish the baseline condition of any buildings and/or structures on his/her land. or to have a previous property inspection report updated, then within 2 months of receiving this request the Proponent shall: (a) commission a suitably qualified, experienced and independent person, whose appointment has been approved by the Director-General to: • establish the baseline condition of the buildings and/or structures on the land or update the previous property inspection report; and • identify any measures that should be implemented to minimise the potential blasting impacts of the projects on these buildings and/or structures; and (b) give the landowner a copy of the new or updated property inspection report.

Property Investigations

15. If any landowner of privately-owned land within 2 kilometres of any approved open cut mining pit on site claims that the buildings and/or structures on his/her land have been damaged as a result of blasting on site, then within 2 months of receiving this request the Proponent shall: (a) commission a suitably qualified, experienced and independent person, whose appointment has been approved by the Director-General, to investigate the claim; and (b) give the landowner a copy of the property investigation report.

If this independent property investigation confirms the landowner's claim, and both parties agree with these findings, then the Proponent shall repair the damages to the satisfaction of the Director-General.

If the Proponent or landowner disagrees with the findings of the independent property investigation, then either party may refer the matter to the Director-General for resolution.

Operating Conditions

16. The Proponent shall: (a) implement best blasting management practice on site to: • protect the safety of people and livestock in the surrounding area; • protect private or public property in the surrounding area; • minimise the dust and fume emissions of the blasting; and (b) co-ordinate the blasting on site with the blasting at nearby mines to minimise the cumulative blasting impacts of the mines; (c) operate a suitable system to enable the public to get up-to-date information on the proposed blasting schedule on site, to the satisfaction of the Director-General.

17. The Proponent shall not undertake blasting within 500 metres of: (a) Middle Falbrook Road or Stony Creek Road without the approval of Council; (b) the New England Highway without the approval of the RTA; and (c) the Main Northern Railway without the approval of the ARTC.

18. The Proponent shall not carry out blasting in the northern or western mining areas that is within 500 metres of any privately-owned land or land not owned by the Proponent unless: (a) the Proponent has a written agreement with the relevant landowner to allow blasting to be carried out closer to the land, and the Proponent has advised the Department in writing of the terms of this agreement; or (b) the Proponent has: • demonstrated to the satisfaction of the Director-General that the blasting can be carried out without compromising the safety of the people or livestock on the land, or damaging the buildings and/or structures on the land; and • updated the Blast Management Plan to include the specific measures that would be implemented while blasting is being carried out within 500 metres of the land.

Blast Management Plan

19. The Proponent shall prepare and implement a Blast Management Plan for the open cut mining operations on site to the satisfaction of the Director-General. This plan must: (a) be prepared in consultation with DECCW, and submitted to the Director-General for approval by the end of March 2011; (b) describe the blast mitigation measures that would be implemented to ensure compliance with the relevant condition of this approval;

NSW Government 13 Department of Planning (c) describe the measures that would be implemented to ensure that the public can get up-to-date information on the proposed blasting schedule on site; (d) include a blast monitoring program to evaluate the performance of the project; and (e) include a protocol that has been prepared in consultation with the owners of the nearby mines for minimising and managing the cumulative blasting impacts of the mines.

AIR QUALITY & GREENHOUSE GAS

Odour

20. The Proponent shall not ensure that no offensive odours are emitted from the site, as defined under the POEO Act.

Greenhouse Gas Emissions

21. The Proponent shall implement all reasonable and feasible measures to minimise the release of greenhouse gas emissions from the site to the satisfaction of the Director-General.

Air Quality Criteria

22. Except for the air quality-affected land referred to in Table 1, the Proponent shall ensure that all reasonable and feasible avoidance and mitigation measures are employed so that particulate matter emissions generated by the projects do not exceed the criteria listed in Tables 10, 11 or 12 at any residence on privately-owned land or on more than 25 percent of any privately-owned land.

Table 10: Long term criteria for particulate matter

Pollutant Averaging Period d Criterion

Total suspended particulate (TSP) matter Annual a 90 ~g/m3

Particulate. matter < 10 ~m (PM1O) Annual a 30 ~g/m3

Table 11.' Short term criterion for particulate matter

Pollutant Averaging Period d Criterion

Particulate matter < 10 ~m (PMlO) 24 hOllr a 50 ~g/m3

Table 12: Long term criteria for deposited dust

Maximum increase in Maximum total Pollutant Averaging Period '..dep!,~itedtlu~tIElyel ..L..dep()sitedgustleyel

C Deposited dust Annual b2 g/m'/month a 4 g/m'/month

Notes to Tables 10-12: • a Total impact (i.e. incremental increase in concentrations due to the projects plus background concentrations due to all other sources); • b Incremental impact (i.e. incremental increase in concentrations due to the projects on their own); • C Deposited dust is to be assessed as insoluble solids as defined by Standards Australia, AS/NZS

3580.10.1:2003: Methods for Sampling and Analysis of Ambient Air H Determination of Particulate Matter - Deposited Matter - Gravimetric Method. e d Excludes extraordinary events such as bushfires, prescribed burning, dust storms, sea fog, fire incidents, illegal activities or any other activity agreed by the Director-General in consultation with DECCW.

Air Quality Acquisition Criteria

23. If particulate matter emissions generated by the projects exceed the criteria in Tables 13, 14 or 15 at any residence on privately-owned land or on more than 25 percent of any privately-owned land, then upon receiving a written request for acquisition from the landowner the Proponent shall acquire the land in accordance with the procedures in Conditions 6-7 of Schedule 4.

NSW Government 14 Department of Planning Table 13: Long term acquisition criteria for particulate matter

Pollutant i Averaging Period j d Criterion

Total suspended particulate (TSP) matter : Annual i ago ~g/m3

··r~;~~~/~3 Particulate matter < 10 ~m (PM,,) i Annual ......

Table 14: Short term acquisition criteria for particulate matter

Pollutant I Averaging period d Criterion Particulate matter < 10 ~m (PM,o) i 24 hour : a 150 ~g/m3 "~ .. -- " ... " ...... ,,,.i·~, Particulatematter< 10 ~m (PM,,) 24 hour I b 50 ~g/m3

Table 15: Long term acquisition criteria for deposited dust

; Maximum increase in ' Maximum total Pollutant I Averaging Period ... Lcfep()sited.~~stl~yel : .depositeddustleyel. 2 2 C Deposited dust ...... ·IA~~~a; b 2 g/m /month : a 4 g/m /month

Notes to Tables 13-15: • a Total impact (i.e. incremental increase in concentrations due to the projects plus background concentrations due to all other sources); • b Incremental impact (i.e. incremental increase in concentrations due to the projects on their own); C Deposited dust is to be assessed as insoluble solids as defined by Standards Australia, ASINZS 3580.10.1:2003: Methods for Sampling and Ana(ysis of Ambient Air - Determination of Particulate Matter - Deposited Matter - Gravimetric Method. • d Excludes extraordinary events such as bushfires, prescribed burning, dust storms, sea fog, fire incidents, illegal activities or ony oth~r activity agreed by the Director-General in consultation with DECCW.

Additional Dust Mitigation Measures

24. Upon receiving a written request from the owner of any residence: (a) on the air quality-affected land listed in Table 1; or (b) on the land listed in Table 16; or (c) on privately-owned land where subsequent air quality monitoring shows the dust generated by the projects is greater than or equal to the applicable criteria in Tables 10, 11 or 12 on a systemic basis, the Proponent shall implement additional dust mitigation measures (such as a first fiush roof system, internal or external air filters, andlor air conditioning) at the residence in consultation with the owner. These measures must be reasonable and feasible.

Table 16: Land subject to dust mitigation on request

88-M&TDe 106 - B & R Richards 110-.GJ Hall ...... 111:: TBurQess. 112 - S & C Ernst

Note: To identify the locations referred to in Table 16, see the applicable figures in Appendix 5.

Operating Conditions

25. The Proponent shall: (a) implement best practice air quality management on site, including all reasonable and feasible measures to minimise the off-site odour, furne and dust emissions generated by the projects; (b) minimise any visible air pollution generated by the projects;

NSW Government 15 Department of Planning (c) regularly assess the real-time air quality monitoring and meteorological forecasting data and relocate, modify andlor stop operations on site to ensure compliance with the relevant conditions of this approval; and (d) co-ordinate air quality management on site with the air quality management at the nearby mines to minimise the cumulative air quality impacts of the mines, to the satisfaction of the Director-General.

Air Quality & Greenhouse Gas Management Plan

26. The Proponent shall prepare and implement a detailed Air Quality & Greenhouse Gas Management Plan for the Integra mine complex to the satisfaction of the Director-General. This plan must: (a) be prepared in consultation with DECCW, and submitted to the Director-General for approval by the end of March 2011; (b) describe the measures that would be implemented to ensure compliance with the relevant conditions of this approval, including a real-time air quality management system that employs proactive and reactive mitigation measures; (c) describe the in detail the specific measures that would be implemented to minimise the dust impacts on the Dulwich property while it remains in private ownership; (d) include an air quality monitoring program that: • uses a combination of real-time monitors, high volume samplers and dust deposition gauges to minimise the air quality impacts of the projects on site, and evaluate the performance of these projects; and • includes a protocol for determining exceedances with the relevant conditions of this approval. (e) include a protocol that has been prepared in consultation with the owners of the adjoining mines for minimising and managing the potential cumulative air quality impacts of the projects on site when combined with the air quality generated by other mines in the area.

METEOROLOGICAL MONITORING

27. During the life of the project, the Proponent shall ensure that there is a suitable meteorological station operating in the vicinity of the site that: (a) complies with the requirements in the Approved Methods for Sampling of Air Pollutants in New South Wales guideline; and (b) is capable of continuous real~time measurement of temperature lapse rate in accordance with the NSW Industrial Noise Policy.

SUBSIDENCE

Performance Measures

28. The Proponent shall ensure that the underground project does not cause any exceedance of the performance measures in Table 17.

Table 17: Subsidence Performance Measures

Water Glennies Creek alluvial aquifer Negligible impact Natural watercourses on site No greater environmental consequences than predicted in the Underground Project EA Xstrata Mt Owen Bettys Creek Diversions No greater than the environmental consequences predicted in the Underground Project EA, unless the owner agrees otherwise in writing Underqround Proiect Creek Diversions Remain hydraulically and qeomorphologically stable Other water storages and drainage lines No greater than the environmental consequences predicted in the Underground Project EA Biodiversitv . Threatened species, populations, habitat or Negligible impact ecoloaical communities Built Features All built features, including the Main Safe, serviceable and repairable, unless the owner Northern Railway Line, Glennies Creek agrees otherwise in writing Power Station and Mt Owen Rail S ur Public Safety Public Safety I No additional risk due to mining

Note: These subsidence impact performance measures should be read in conjunction with the conditions relating to rehabifitation at the end of this Schedule.

NSW Government 16 Department of Planning First Workings

29. The Proponent shall not carry out first workings on site that are inconsistent with the approved mine plans without the written approval of the Director-General.

Extracti on PI an

30. The Proponent shall prepare and implement an Extraction Plan for all second workings on site to the satisfaction of the Director-General. This plan must: (a) be prepared a team of suitably qualified and experienced persons whose apPointment has been endorsed by the Director-General; (b) be approved by the Director-General before the Proponent undertakes any second workings covered by the plan; (c) include detailed plans of the proposed second workings and any associated surface development; (d) include detailed performance indicators for each of the performance measures in Table 17; (e) describe the measures that would be implemented to ensure compliance with the performance measures in Table 17, and remediate any predicted subsidence impacts andlor environmental consequences; (f) provide revised predictions of the conventional and non-conventional subsidence effects, subsidence impacts and environmental consequences of the proposed second workings, incorporating any relevant information obtained since this approval, that specifically addresses the incremental and cumulative subsidence effects and impacts of multi-seam mining; (g) include the following to the satisfaction of 1&1 NSW: • a subsidence monitoring program to: - provide data to assist in the management of the risks associated with subsidence; - validate the subsidence predictions; and - analyse the relationship between the subsidence effects and impacts under the Extraction Plan and any ensuing environmental consequences; • a Built Features Management Plan, which has been prepared in consultation with the owners of such features, to manage the potential impacts and consequences of subsidence on any built features; • a Public Safety Management Plan to ensure public safety in the underground project area; • a revised Rehabilitation Management Plan; (11) include: • a revised Water Management Plan, which has been prepared in consultation with DECCW and NOW, to manage the potential impacts and consequences of subsidence on surface water and groundwater resources, flooding and existing and proposed creek diversions; • a revised Biodiversity Management Plan, which has been prepared in consultation with DECCW, to manage the potential impacts and consequences of subsidence on biodiversity; • a Land Management Plan, which has been prepared in consultation with relevant landowners, to manage the potential impacts and consequences of subsidence on land in general; • a revised Heritage Management Plan to manage the potential impacts and consequences of subsidence on heritage sites or values; and • a program to collect sufficient baseline data for future Extraction Plans.

This condition does not apply to any second workings that are covered by an existing Subsidence Management Plan approval at the date of this approval.

Payment of Reasonable Costs

31. The Proponent shall pay all reasonable costs incurred by the Department to engage suitably qualified, experienced and independent persons (if required) to review the adequacy of any aspect of the Extraction Plan.

SOIL & WATER

Water Supply

32. The Proponent shall ensure that it has sufficient water for all stages of the projects, and if necessary, adjust the scale of mining operations to match its water supply.

Note: The Proponent is required to obtain the necessary water licences for the projects under the Water Act 1912 and/or Water Management Act 2000.

NSW Government 17 Department of Planning Baseflow Offsets

33. The Proponent shall offset the loss of any baseflow to the surrounding watercourses andlor associated creeks caused by the projects to the satisfaction of the Director-General.

Notes; • This condition does not apply in the case of losses of baset/ow which are negligible. • Offsets should be provided via the retirement of adequate water entitlements to aCGount for the foss attributable to the projects. • The Proponent is not required to provide additional baseffow offsets where such offsets have already been provided under previous consents or approvals for the projects. These existing offsets are to be described and evaluated in the Surface and Ground Water Response Plan (see below).

Compensatory Water Supply

34. The Proponent shall provide compensatory water supply to any landowner of privately-owned land whose water entitlements are impacted (other than an impact that is negligible) as a result of the projects, in consultation with NOW, and to the satisfaction of the Director-General.

The compensatory water supply measures must provide an alternative long-term supply of water that is equivalent to the loss attributed to the project. Equivalent water supply must be provided (at least on an interim basis) within 24 hours of the loss being identified.

If the Proponent and the landowner cannot agree on the measures to be implemented, or there is a dispute about the implementation of these measures, then either party may refer the matter to the Director-General for resolution.

If the Proponent is unable to provide an alternative long-term supply of water, then the Proponent shall provide alternative compensation to the satisfaction of the Director-General.

Surface Water Discharges

35. The Proponent shall ensure that all surface water discharges frorn the site corn ply with the: (a) discharge lirnits (both volume and quality) set for the projects in any EPL; or (b) relevant provisions of the POEO Act or Protection of the Environment Operations (Hunter River Salinity Trading Scheme) Regulation 2002.

Glennies Creek and Station Creek Alluvial Aquifers

36. The Proponent shall not undertake any open cut mining operations within 150 metres of the Glennies Creek alluvial aquifer or Station Creek alluvial aquifer without the prior written approval of the Director General. In seeking this approval, the Proponent must consult with NOW and demonstrate to the satisfaction of the Director-General that adequate safeguards have been incorporated into the Surface and Groundwater Response Plan (see below) to minirnise, prevent andlor adequately offset groundwater leakage from the alluvial aquifers.

Notes: The alluvial aquifers and 150 metre buffer zones are shown conceptually on the figure in Appendix 7. This condition does not restrict the Proponent's right to construct and use water management works, access tracks, environmental bunds, remediation works and other similar works.

Creek Diversions for the Underground Project

37. The Proponent shall carry out the proposed diversions of Bettys Creek and Main Creek in the underground project area to the satisfaction of the Director-General.

38. Within 6 months of completing the construction of the diversions, the Proponent shall submit an as executed report, certified by a practising engineer, to the Director-General and NOW.

Note: The objective of the report is to confirm that the diversions are sufficiently hydraulically and geomorphologicaffy stable.

NSW Government 18 Department of Planning Xstrata Mt Owen Bettys Creek Diversions

39. The Proponent shall: (a) commission a suitably qualified and independent expert, whose appointment has been approved by the Director-General, to carry out a detailed survey of geotechnical, geomorphic and ecological baseline condition of the Xstrata Mt Owen Bettys Creek Diversions: • prior to carrying out any second workings under the creek diversions; and • within 6 months of completing the second workings under these creek diversions; and (b) provide a copy of these surveys to the Department within a month of the completion of each survey.

Water Management Plan

40. The Proponent shall prepare and implement a Water Management Plan for the projects to the satisfaction of the Director-General. This plan must be prepared in consultation with DECCW, NOW and 1&1 NSW, and submitted to the Director-General for approval by the end of June 2011.

In addition to the standard requirements for management plans (see Condition 2 of Schedule 5), this plan must include: (a) a Site Water Balance, which must: • include details of: sources and security of water supply; water use on site; water management on site; and any off-site water transfers, and • describe what measures would be implemented to minimise clean water use on site; (b) a Creek Diversion Management Plan for the proposed creek diversions in the underground project area, which must: • be consistent with any related requirements in future Extraction Plan(s); and • include: a vision statement for the creek relocations; an assessment of the water quality, ecological, hydrological and geomorphic baseline conditions within each creek; the detailed design specifications for the creek relocations; a construction program for the creek relocations, describing how the work would be staged, and integrated with mining operations; a revegetation program for the relocated creeks using a range of suitable native species; water quality, ecological, hydrological and geomorphic performance and completion criteria for the creek relocations based on the assessment of baseline conditions; and a program to monitor and maintain the water quality, ecological, hydrological and geomorphic integrity of the creek diversions; (c) an Erosion and Sediment Control Plan, which must: • identify activities that could cause soil erosion and generate sediment; • describe measures to minimise soil erosion and the potential transport of sediment to downstream waters; • describe the location, function and capacity of erosion and sediment control structures; and • describe what measures would be implemented to maintain these structures for the life of the projects; (d) a Surface Water Management Plan, which must include: • detailed baseline data on surface water fiows and quality in creeks and other waterbodies that could potentially be affected by the projects; • surface water impact assessment criteria including trigger levels for investigating any potentially adverse surface water impacts from the projects; o a program to monitor and assess surface water flows and quality, impacts on water users and stream health; (e) a Groundwater Management Plan, which must include: • detailed baseline data of groundwater levels, yield and quality in the region, and privately owned groundwater bores, which could be affected by the projects; • groundwater impact assessment criteria including trigger levels for investigating any potentially adverse groundwater water impacts from the projects; and • a program to monitor and assess: groundwater infiows to the open cut mining operations; and impacts of the projects on the region's aquifers, any groundwater bores and surrounding watercourses, in particular Glennies Creek and Station Creek and adjacent alluvium; and

NSW Government 19 Department of Planning (f) a Surface and Groundwater Response Plan, which must include:

8 a response protocol for any exceedances of the surface water and groundwater assessment criteria; • measures to offset the loss of any baseflow to watercourses caused by the projects; • measures to compensate landowners of privately-owned land whose water supply is adversely affected by the projects; and • measures to mitigate andlor offset any adverse impacts on groundwater dependent ecosystems or riparian vegetation.

BIODIVERSITY

Biodiversity Offset

41. The Proponent shall implement the offset strategy summarised in Table 18, described in the open cut and underground project EAs, and shown conceptually in the figure in Appendix 8 to the satisfaction of the Director-General.

Table 18: Biodiversity Offset Strategy for the Integra Mine Complex

Offset Areas Minimum Size Northern Offset Area 121 hectares .. ,_" '.,.~ "0,.,,," ... _,,_ Southern Offset Area 39 hectares Western Offset Area 94 hectares '" "" ,--.. -",., §upplernental"/()~~"ti\:e~. 33 hectares Bridgman Offset Area 86 hectares

42. By the end of June 2011, unless the Director-General agrees otherwise, the Proponent shall revise the offset strategy referred to above, in consultation with DECCW, and to the satisfaction of the Director General. The revised offset strategy must: (a) ensure provision of at least 140 hectares of Narrow-leafed Ironbark-Spotted Gum-Forest Red Gum Forest (or a suitable equivalent) to further offset the impact of the open cut project; and (b) include an additional 6 hectares of Central Hunter Swamp Oak Forest (or a suitable equivalent) to offset the impact of the underground project on the Glendell Biodiversity Offset Area.

Long Term Security of Offsets

43. By the end of December 2011, the Proponent shall make suitable arrangements to provide appropriate long term security for all the areas in the revised offset strategy to the satisfaction of the Director-General.

Biodiversity Management Plan

44. The Proponent shall prepare and implement a Biodiversity Management Plan for the projects to the satisfaction of the Director-General. This plan must: (a) be prepared in consultation with DECCW, and submitted to the Director-General for approval by the end of Decem ber 2011; (b) describe how the implementation of the offset strategy would be integrated with the overall rehabilitation of the site (see below); (c) include: • a description of the short, medium, and long term measures that would be implemented to: implement the offset strategy; and manage the remnant vegetation and habitat, both on site and in the offset areas; • detailed performance and completion criteria for the implementation of the offset strategy; • a detailed description of the measures that would be implemented over the next 3 years, including the procedures to be implemented for: implementing revegetation and regeneration within the offset areas, including establishment of canopy, sub-canopy (if relevant), understorey and ground strata; maximising salvage and beneficial use of resources in areas that are to be impacted, including vegetative, soil and cultural heritage resources; protecting vegetation and soil outside the areas to be impacted; rehabilitating Bettys Creek and Main Creek; managing salinity; conserving and reusing topsoil; undertaking pre-clearance surveys; managing impacts on fauna; landscaping the site to minimise visual impacts;

NSW Government 20 Department of Planning collecting and propagating seed; salvaging and reusing material from the site for habitat enhancement; controlling weeds and feral pests, including terrestrial and aquatic species; managing grazing and agriculture on site and in the biodiversity offset areas; controlling access; bushfire management; and managing potential conflicts between the offset areas and Aboriginal cultural heritage values; • a description of the potential risks to the successful implementation of the biodiversity offset strategy, and a description of the contingency measures that would be implemented to mitigate these risks; • a program to monitor the effectiveness of these measures, and progress against the performance and completion criteria; and • details of who would be responsible for monitoring, reviewing, and implementing the plan.

Conservation Bond

45. Within 6 months of the approval of the Biodiversity Management Plan (see above), the Proponent shall lodge a conservation bond with the Department to ensure that the offset strategy is implemented in accordance with the performance and completion criteria of the Biodiversity Management Plan.

The sum of the bond shall be determined by: (a) calculating the full cost of implementing the offset strategy; and (b) employing a suitably qualified quantity surveyor to verify the calculated costs.

If the offset strategy is implemented to the satisfaction of the Director-General, the Director-General will release the bond. If the offset strategy is not implemented to the satisfaction of the Director-General, the Director-General will call in all or part of the conservation bond, and arrange for the satisfactory implementation of the strategy.

With the agreement of the Director-General, this bond may be combined with the rehabilitation securities administered by the Minister for Mineral Resources.

HERITAGE

Further Archaeological Investigation

46. Prior to carrying out any development in the parts of the site outlined in purple on the figure in Appendix 8, unless the Director-General agrees otherwise, the Proponent shall carry out further archaeological testing and investigation within the broader area outlined in purple on the figure in Appendix 8 to the satisfaction of the Director-General.

Heritage Management Plan

47. The Proponent shall prepare and implement a Heritage Management Plan for the projects to the satisfaction of the Director-General. This plan must: (a) be prepared by suitably qualified and experienced persons whose appointment has been endorsed by the Director-General; (b) be prepared in consultation with DECCW, the Aboriginal community, the Heritage Branch, Council, local historica! organisations and any relevant landowners; (c) be submitted to the Director-General for approval by the end of March 2011; (d) include programs/procedures for the following in relation to Aboriginal heritage management on site: • recording, salvaging and/or managing all Aboriginal sites, objects and deposits that are to be destroyed within the open cut project area; • conserving, managing and monitoring all Aboriginal sites, objects and deposits that are to be protected within the open cut project area, including the 3 scarred trees identified within the western mining area; • maintaining and managing access to Aboriginal sites, objects and deposits by the Aboriginal community, including provision of an appropriate Keeping Place; • managing the discovery of any new Aboriginal objects or skeletal remains identified during the projects; and • ongoing consultation and involvement of the Aboriginal community in the conservation and management of Aboriginal cultural heritage values on the site. (e) include programs/ procedures for the following, in accordance with the applicable guidelines of the Heritage Branch:

NSW Government 21 Department of Planning • further historical investigation of the area outlined in purple on the figure in Appendix 8 to identify the potential archaeological resources within the area,; • archaeological testing of the potential archaeological resources within the area outlined in purple on the figure in Appendix 8; • further archaeological investigation of any areas where the archaeological testing (referred to above) identifies significant archaeological deposits; • archaeological excavation of the known grave on site, identified as the James Halliday Glennie grave site; • detailed archival recording of the Dulwich property if it is to be mined, or the preparation of a detailed conservation management plan for the Dulwich property if it is not to be mined (subject to the agreement of the landowner); • archival recording of any other heritage items to be destroyed by the project; • conserving, managing, monitoring, and where appropriate, relocating any non-Aboriginal sites, objects and deposits on the site; • interpreting the findings of the additional heritage or archaeological investigations carried out on the site; and • managing the discovery of any new non-Aboriginal objects or skeletal remains identified during the projects.

TRANSPORT

Coal Transport

48. By the end of December 2011, the Proponent shall cease truck haulage of ROM coal from the underground surface facilities to the CHPP, and transport such coal only via overland conveyor, except in an emergency situation and with the prior written approval of the Director-General.

Monitoring of Coal Transport

49. The Proponent shall: (a) keep accurate records of: • amount of coal transported from the site (on a monthly basis); • the date and time of each train movement from the site; and (b) make these records publicly available on its website at the end of each calendar year.

Road and Intersection Upgrade Works

50. The Proponent shall design and construct the Middle Falbrook Road intersection to the reasonable satisfaction of Council prior to commencing construction activities that require access from Middle Falbrook Road to the site.

VISUAL

Visual Amenity and Lighting

51. The Proponent shall: (a) minimise the visual impacts, and particulariy the off-site lighting impacts, of the projects; (b) take all practicable measures to further mitigate off-site lighting impacts from the projects; and (c) ensure that all external lighting associated with the Integra mine complex complies with Australian Standard AS4282 (INT) 1995 - Control of Obtrusive Effects of Outdoor Lighting, or its latest version, to the satisfaction of the Director-General.

Additional Visual Mitigation Measures

52. Upon receiving a written request from the owner of any residence on privately-owned land which has significant direct views of the mining operations on site, the Proponent shall implement additional visual mitigation measures (such as landscaping treatments or vegetation screens) on the land in consultation with the landowner. These measures must be reasonable and feasible, and directed towards minimising the visibility of the mining operations from the reSidence.

NSW Government 22 Department of Planning WASTE

53. The Proponent shall: (a) minimise the waste generated by the projects; and (b) ensure that the waste generated by the projects is appropriately stored, handled, and disposed of, to the satisfaction of the Director-General.

54. The Proponent shall prepare and implement a Waste Management Plan for the projects to the satisfaction of the Director-General. This plan must: (a) be prepared in consultation with 1&1 NSW, and submitted the Director-General for approval by the end of March 2011; (b) identify the various waste streams of the projects; (c) estimate the volumes of tailings and reject material that would be generated by the projects; (d) describe and justify the proposed strategy for disposing of this waste material; (e) describe what measures would be implemented to meet the requirements set out above; and (f) include a program to monitor the effectiveness of these measures.

BUSH FIRE MANAGEMENT

55. The Proponent shall: (a) ensure that the Integra mine complex is suitably equipped to respond to fires on site; and (b) assist the Rural Fire Service and emergency services as much as possible if there is a fire in the vicinity of the site.

REHABILITATION

Rehabilitation Objectives

56. The Proponent shall rehabilitate the site to the satisfaction of the Director-General of 1&1 NSW. This rehabilitation must be generally consistent with both the rehabilitation strategy described in the open cut and underground project EAs - and depicted conceptually in the figure in Appendix 9 - and the objectives in Table 19.

Table 19: Rehabilitation Objectives

Area/Domain Rehabilitation Objectives Site (as a whole) Safe, stable & non-polluting Surface infrastructure To be decommissioned and removed, unless the Director- General aqrees otherwise Other land affected by the Restore ecosystem function, including maintaining or projects establishing self-sustaining eco-systems comprised of: • local native plant species (unless the Director-General agrees otherwise); and • a landform consistent with the surrC2.unding environment Xstrata Mt Owen Bettys Creek Rehabilitate to the same or better geotechnical, geomorphic and Diversions ecological condition as prior to mining, unless the owner agrees otherwise Sections of Bettys Creek and Hydraulically and geomorphologically stable, with diverse Main Creek to be undermined habitats and ecolooy Underground Project Creek Hydraulically and geomorphologically stable, with diverse Diversions habitats and ecoloqy Built features Repair to pre-mining condition or equivalent unless: • the owner agrees othelWise; or • the damage is fully restored, repaired or compensated for under the Mine Subsidence Compensation Act 1961 Community Minimise the adverse socia-economic effects associated with mine closure

Progressive Rehabilitation

57. The Proponent shall carry out rehabilitation of the site progressively, that is, as soon as reasonably practicable following the disturbance.

NSW Government 23 Department of Planning Rehabilitation Management Plan

58. The Proponent shall prepare and implement a Rehabilitation Management Plan for the Integra mine complex to the satisfaction of the Director-General of 1&1 NSW. This plan must: (a) be prepared in consultation with the Department, DEECW, NOW, Council and the CCC; (b) be prepared in accordance with any relevant 1&1 NSW guideline; (c) build, to the maximum extent practicable, on the other management plans required under this approval; and (d) be submitted to the Director-General of 1&1 NSW for approval by the end of June 2011.

NSW Government 24 Department of Planning SCHEDULE 4 ADDITIONAL PROCEDURES

NOTIFICATION OF LANDOWNERS

1. By the end of December 2010, the Proponent shall: (a) notify in writing the owners of: • the land listed in Table 1 of Schedule 3 that they have the right to require the Proponent to acquire their land at certain stages during the projects; • any residence on the land listed in Table 1 (noise-affected) or Table 6 of Schedule 3 that they are entitled to ask for additional noise mitigation to be installed at their residence at certain stages during the projects; • any residence on the land listed in Table 1 (air quality-affected) or Table 16 of Schedule 3 that they are entitled to ask for additional air quality mitigation measures to be installed at their residence at certain stages of the projects; and • any privately-owned land within 2 kilometres of any approved open cut mining pit on site that they are entitled to ask for an inspection to establish the baseline condition of any buildings or structures on their land, or to have a previous property inspection report updated; and (b) send a copy of the NSW Health fact sheet entitled "Mine Dust and You" (as may be updated from time to time) to the owners andior existing tenants of any land (including mine-owned land) where the predictions in the open cut or underground project EAs identify that the dust emissions from the projects are likely to be greater than the relevant air quality criteria in Schedule 3 at some stage during the projects.

2. Within 2 weeks of obtaining monitOring results showing: (a) an exceedance of the relevant criteria in Schedule 3, the Proponent shall notify the affected landowner andior tenants in writing of the exceedance, and provide regular monitoring results to each of these parties until the projects are complying with the relevant criteria again; (b) an exceedance of the relevant criteria in Conditions 6(c) or 7 of Schedule 3, the Proponent shall notify the applicable owner in writing that they are entitled to ask for additional noise mitigation to be installed at their residence; (c) an exceedance of the relevant criteria in Conditions 22, 23 of Schedule 3, the Proponent shall send a copy of the NSW Health fact sheet entitled "Mine Dust and You" (as may be updated from time to time) to the affected landowners and/or existing tenants of the land (including the tenants of any mine-owned land); and: . (d) an exceedance of the relevant criteria in Condition 24(c) of Schedule 3, the Proponent shall notify the applicable owner of any residences on the land that they are entitled to ask for additional air quality mitigation measures to be installed at their residence.

INDEPENDENT REVIEW

3. If an owner of privately-owned land considers the projects to be exceeding the relevant criteria in Schedule 3, then heishe may ask the Director-General in writing for an independent review of the impact of the projects on hisiher land.

If the Director-General is satisfied that an independent review is warranted, then within 2 months of the Director-General's decision the Proponent shall: (a) commission a suitably qualified, experienced and independent person, whose appOintment has been approved by the Director-General, to: • consult with the landowner to determine hisiher concerns; • conduct monitoring to determine whether the projects are complying with the relevant criteria in Schedule 3; and • if the projects are not complying with these criteria then: - determine if more than one mine is responsible for the exceedance, and if so the relative share of each mine towards the impact on the land; - identify the measures that could be implemented to ensure compliance with the relevant criteria; and (b) give the Director-General and landowner a copy of the independent review.

4. If the independent review determines that the projects are complying with the relevant criteria in Schedule 3, then the Proponent may discontinue the independent review with the approval of the Director-General.

NSW Government 25 Department of Planning If the independent review determines that the projects are not complying with the relevant criteria in Schedule 3, and that the projects are primarily responsible for this non-compliance, then the Proponent shall: (a) implement all reasonable and feasible mitigation measures, in consultation with the landowner and appointed independent person, and conduct further monitoring until there is compliance with the relevant criteria; or (b) secure a written agreement with the landowner to allow the exceedances of the relevant criteria, to the satisfaction of the Director-General.

If the independent review determines that the projects are not complying with the relevant acquisition criteria in Schedule 3, and that the projects are primarily responsible for this non-compliance, then upon receiving a written request from the landowner, the Proponent shall acquire all or part of the landowner's land in accordance with the procedures in Conditions 6-7 below.

5. If the independent review determines that the relevant criteria in Schedule 3 are being exceeded, but that more than one mine is responsible for this exceedance, then together with the relevant mine/s the Proponent shall: (a) implement all reasonable and feasible mitigation measures, in consultation with the landowner and appointed independent person, and conduct further monitoring until there is compliance with the relevant criteria; or (b) secure a written agreement with the landowner to allow exceedances of the relevant criteria, to the satisfaction of the Director-General.

If the independent review determines that relevant acquisition criteria in Schedule 3 are being exceeded, but that more than one mine is responsible for the exceedance, then upon receiving a written request from the landowner, the Proponent shall acquire all or part of the landowner's land on as equitable a basis as possible with the relevant mine/s in accordance with the procedures in Conditions 6-7 below.

LAND ACQUISITION

6. Within 3 months of receiving a written request from a landowner with acquisition rights, the Proponent shall make a binding written offer to the landowner based on: (a) the current market value of the landowner's interest in the land at the date of this written request, as if the land was unaffected by the projects, having regard to the: • existing and permissible use of the land, in accordance with the applicable planning instruments at the date of the written request; and • presence of improvements on the land and/or any approved building or structure which has been physically commenced on the land at the date of the landowner's written request, and is due to be completed subsequent to that date, but excluding any improvements that have resulted from the implementation of any additional mitigation measures required under Conditions 6,7 or 24 of Schedule 3; (b) the reasonable costs associated with: • relocating within the Singleton or Muswellbrook local government areas, or to any other local governrnent area determined by the Director-General; and • obtaining legal advice and expert advice for determining the acquisition price of the land, and the terms upon which it is to be acquired; and (c) reasonable compensation for any disturbance caused by the land acquisition process.

However, if at the end of this period, the Proponent and landowner cannot agree on the acquisition price of the land and/or the terms upon which the land is to be acquired, then either party may refer the matter to the Director-General for resolution.

Upon receiving such a request, the Director-General will request the President of the NSW Division of the Australian Property Institute (the API) to appoint a qualified independent valuer to: • consider submissions from both parties; • determine a fair and reasonable acquisition price for the land and/or the terms upon which the land is to be acquired, having regard to the matters referred to in paragraphs (a)-(c) above; • prepare a detailed report setting out the reasons for any determination; and • provide a copy of the report to both parties.

Within 14 days of receiving the independent valuer'S report, the Proponent shall make a binding written offer to the landowner to purchase the land at a price not less than the independent valuer's determination.

However, if either party disputes the independent valuer'S determination, then within 14 days of receiving the independent valuer's report, they may refer the matter to the Director-General for review. Any request

NSW Government 26 Department of Planning for a review must be accompanied by a detailed report setting out the reasons why the party disputes the independent valuer's determination. Following consultation with the independent valuer and both parties, the Director-General will determine a fair and reasonable acquisition price for the land, having regard to the matters referred to in paragraphs (a)-(c) above, the independent valuer's report, the detailed report disputing the independent valuer's determination, and any other relevant submissions.

Within 14 days of this determination, the Proponent shall make a binding written offer to the landowner to purchase the land at a price not less than the Director-General's determination.

If the landowner refuses to accept the Proponent's binding written offer under this condition within 6 months of the offer being made, then the Proponent's obligations to acquire the land shall cease, unless the Director-General determines otherwise.

7. The Proponent shall pay all reasonable costs associated with the land acquisition process described in Condition 6 above, including the costs associated with obtaining Council approval for any plan of subdivision (where permissible), and registration of this plan althe Office of the Registrar-General.

NSW Government 27 Department of Planning SCHEDULE 5 ENVIRONMENTAL MANAGEMENT, REPORTING AND AUDITING

ENVIRONMENTAL MANAGEMENT

Environmental Management Strategy

1. The Proponent shall prepare and implement an Environmental Management Strategy for the projects to the satisfaction of the Director-General. This strategy must: (a) be submitted to the Director-General for approval by the end of March 2011; (b) provide the strategic framework for the environmental management of the projects; (c) identify the statutory approvals that apply to the projects; (d) describe the role, responsibility, authority and accountability of all key personnel involved in the environmental management of the projects; (e) describe the procedures that would be implemented to: • keep the local community and relevant agencies informed about the operation and environmental performance of the projects; • receive, handle, respond to, and record complaints; • resolve any disputes that may arise during the course of the projects; • respond to any non-compliance; and • respond to emergencies; and (f) include: • copies of any strategies, plans and programs approved under the conditions of this approval; and • a clear plan depicting all the monitoring required to be carried out under the conditions of this approval.

Management Plan Requirements

2. The Proponent shall ensure that the management plans required under this approval are prepared in accordance with any relevant guidelines, and include: (a) detailed baseline data; (b) a description of: • the relevant statutory requirements (including any relevant approval, licence or lease conditions); • any relevant limits or performance measures/criteria; and • the specific performance indicators that are proposed to be used to judge the performance of, or guide the implementation of, the projects or any management measures; (c) a description of the measures that would be implemented to comply with the relevant statutory requirements, limits, or performance measures/criteria; (d) a program to monitor and report on the: • impacts and environmental performance of the projects; and • effectiveness of any management measures (see (c) above); (e) a contingency plan to manage any unpredicted impacts and their consequences; (f) a program to investigate and implement ways to improve the environmental performance of the projects over time; (g) a protocol for managing and reporting any: • incidents; • complaints; • non-compliances with the conditions of this approval and statutory requirements; and • exceedances of the impact assessment criteria and/or performance criteria; and (h) a protocol for periodic review of the plan.

Note: The Director-General may waive some of these requirements if they are unnecessary or unwarranted for particular management plans.

Annual Review

3. By the end of March 2012, and annually thereafter, the Proponent shall review the environmental performance of the projects to the satisfaction of the Director-General. This review must: (a) describe the development (including any rehabilitation) that was carried out in the past year, and the development that is proposed to be carried out over the next year; (b) include a comprehensive review of the monitoring results and complaints records of the projects over the past year, which includes a comparison of these results against the: • relevant statutory requirements, limits or performance measures/criteria; • monitoring results of previous years; and

NSW Government 28 Department of Planning • relevant predictions in the documents referred to in Conditions 2 or 3 of Schedule 2; (c) identify any non-compliance over the past year, and describe what actions were (or are being) taken to ensure compliance; (d) identify any trends in the monitoring data over the life of the projects; (e) identify any discrepancies between the predicted and actual impacts of the projects, and analyse the potential cause of any significant discrepancies; and (f) describe what measure will be implemented over the next year to improve the environmental performance of the projects.

Revision of Strategies, Plans & Programs

4. Within 3 months of: (a) the submission of an annual review under Condition 3 above; (b) the submission of an incident report under Condition 6 below; (c) the submission of an audit report under Condition 8 below, or (d) any modification of the conditions of this approval (unless the conditions require otherwise), the Proponent shall review, and if necessary revise, the strategies, plans, and programs required under this approval to the satisfaction of the Director-General.

Note: This is to ensure the strategies, plans and programs are updated on a regular basis, and incorporate any recommended measures to improve the environmental performance of the projects.

Community Consultative Committee

5. The Proponent shall establish and operate a new Community Consultative Committee (CCC) for the projects in general accordance with the Guidelines for Establishing and Operating Community Consultative Committees for Mining Projects (Department of Planning, 2007, or its latest version), and to the satisfaction of the Director-General. This CCC must be operating by the end of March 2011.

Notes: • The eee is an advisory committee. The Department and other relevant agencies are responsibfe for ensuring that the Proponent complies with this approval; • In accordance with the guideline, the Committee should be comprised of an independent chair and appropriate representation from the Proponent, Council, recognised environmental groups and the local community; • The new GGG may be comprised of members of tfle existing GGGs for the Integra mine complex at the date of this approval; and • Prior to March 2011, the responsibilities of the GGe under this approval may be exercised by the existing eGGs for the Integra mine complex.

REPORTING

Incident Reporting

6. The Proponent shall notify the Director-General and any other relevant agencies of any incident associated with the projects as soon as practicable after the Proponent becomes aware of the incident. Within 7 days of the date of the incident, the Proponent shall provide the Director-General and any relevant agencies with a detailed report on the incident.

Regular Reporting

7. The Proponent shall provide regular reporting on the environmental performance of the projects on its website, in accordance with the reporting arrangements in any approved plans or programs of the conditions of this approval.

INDEPENDENT ENVIRONMENTAL AUDIT

8. By the end of December 2011, and every 3 years thereafter, unless the Director-General directs otherwise, the Proponent shall commission and pay the full cost of an Independent Environmental Audit of the projects. This audit must: (a) be conducted by suitably qualified, experienced and independent team of experts whose appointment has been endorsed by the Director-General; (b) include consultation with the relevant agencies; (c) assess the environmental performance of the projects and whether they are complying with the relevant requirements in this approval and any relevant EPL or Mining Lease (including any assessment, plan or program required under these approvals); (d) review the adequacy of any approved strategies, plans or programs required under these approvals; and, if appropriate

NSW Government 29 Department of Planning (e) recommend measures or actions to improve the environmental performance of the projects, andlor any strategy, plan or program required under these approvals.

Note: This audit team must be led by a suitably quallfied auditor and include experts in any fields specified by the Director~General.

9. Within 6 weeks of the completing of this audit, or as otherwise agreed by the Director-General, the Proponent shall submit a copy of the audit report to the Director-General, together with its response to any recommendations contained in the audit report.

ACCESS TO INFORMATION

10. From the end of December 2010, the Proponent shall: (8) make copies of the following publicly available on its website: • the documents referred to in Conditions 2 and 3 of Schedule 2; • all current statutory approvals for the projects; • all approved strategies, plans and programs required under the conditions of this approval; • the monitoring results of the projects, reported in accordance with the specifications in any conditions of this approval, or any approved plans or programs; • a complaints register, updated on a monthly basis; • minutes of CCC meetings; • the annual reviews of the projects; • any independent environmental audit of the projects, and the Proponent's response to the recommendations in any audit; and • any other matter required by the Director-General; (b) keep this information up-to-date, to the satisfaction of the Director-General.

NSW Government 30 Department of Planning APPENDIX 1 SCHEDULE OF LAND

Underground Project Area

LotNumber [)eposited Plan Number 8 6830 10 6830 11 6830 12 6830 13 6830 17 6830 21 6830 791 580967 792 586255 1 600327 2 600327 3 600327 4 600327 1 606344 2 606344 3 606344 4 606344 608457 622070 710 624852 71 625171 1 626854 100 633743 1 655758 1 701939 2 701939 3 701939 1 745211 1 741653 PT79 752442 93 752442 2 752450 10 752450 64 752499 65 752499 66 752499 622 1097524 1 770733 2 770733 780607 780607 1 781057 1 783398 532 788015 1 799154 332 832646 12 835203 921 844642 922 844642 923 844642 111 850054 112 850054 1 851867 2 851867 3 851867 4 851867 5 851867 6 851867 7 851867 8 851867 2 859544 3 859544 5 859544 6 859544 7 859544 NSW Government 31 Department of Planning Lot Number DeposIted Plan Number 8 859544 924 862883 925 862883 1 865784 Pt1 940619 1 998045 1 1009231 123 1067863 1 1083482 560 1104561 G 37613 1 113540 2 113540 1 246434 2 246434 4 246434 5 246434 6 246434 5 264089 1 597205 2 597205 1 628652 2 628652 725247 ,(4 729917 22 752442 91 752442 92 752442 2 752450 6 752450 10 752450 120 752450 43 752455 75 752455 77 752455 78 752455 98 752455 70 777661 1 802596 2 802596 1 810309 233 829334 235 829334 237 829334 7.39 829334 o 829334 ,2 855251 1 873260 2 873260 7 1075078 1 1083482 2 1083482 1 1111102 2 1111102 3 1111102 4 1111102 6 1111104 Access Road 5 113540 32 752455 44 752455 45 752455 73 752455 74 752455 75 752455 76 752455 78 752455 86 752455 95 752455

NSW Government 32 Department of Planning Open Cut Project Area

Lot Number . DepositedPlan Number 1 264434 2 752450 44 752455 1/95 752455 G 37613 76 752455 98 752455 710 624852 2 1083482 6 246434 70 777661 3· 752455 4 246434 1/100 633743 1 810309 1 212284 1 725247 233 829334 1/6 752450 2 246434 1/77 752455 873260 1/45 752455 1 628652 2 113540 235 829334 1 802596 240 829334 2 597205 2 810309 2 810309 1/792 586255 1/32 752455 91 752442 92 752442 5 264089 1/73 752455 12 855251 237 829334 2 212284 1 752450 2 628652 -1'239 829334 136 752455 1/791 580967 174 729917 51 551899 22 752442 5 246434 8 246434 1/4 113540 1/4 606344 231 829334 1 597205 1/213 106786 1/74 752455 2 802596 8 251618 1/93 752422 1/10 752450 75 752455 1/43 752455 7 113538 1/86 752455 1/1 783398 78 752455 1/120 752450 71 777661 NSW Government 33 Department of Planning Lot Number Deposited Plan. Number 1 113540 1 873260 1 1075078 1 1083482

NSW Government 34 Department of Planning APPENDIX 2 PREVIOUS EAS

Glennies Creek Colliery (105/90) • Environmental Impact Statement (EIS) dated 20 August 1990 prepared by Dames & Moore in accordance with Section 77(3) of the Environmental Planning and Assessment Act, and certified by Warren Atkinson and supplementary information supplied by the Applicant to the Singleton Shire Council ("the Council") by letters dated 20 November 1990, 19 February 19991, submissions to Commission of Inquiry; • The Statement of Environmental Effects in support of a Section 96(2) Application for the Glennies Creek Coal Mine, dated July 1998, prepared by R.W. Corkery and Co Pty Ltd; • Statement of Environmental Effects in support of a Section 96(2) application for the Glennies Creek Coal Mine, dated June 2001, prepared by R.W. Corkery and Co pty Ltd; • The Statement of Environmental Effects in support of an application to Modify the Development Consent for the Glennies Creek Coal Mine, dated December 2001, prepared by Mr Bob Corbett, Manager - Environmental Services with AMCI Australia Pty Ltd; Letter from Bob Corbett to NPWS/PlanningNSW dated the 23 April 2002 regarding flora and fauna issues; Air Quality Impact Assessment: Glennies Creek Ventilation Shaft dated the 19 April 2002, prepared by Holmes Air Science; Letter from Bob Corbett to EPNPlanningNSW dated the 15 May 2002 regarding additional information requested on air quality; and Archaeological Assessment prepared by John Appleton dated April 2002; • The information provided in support of a Section 96(1A) application, dated January 2005, prepared by Glennies Creek Coal Management pty Ltd; and the Statement of Environmental Effects in support on an application to modify the Development Consent for the Glennies Creek Colliery, dated November 2005, prepared by Glennies Creek Coal Management Pty Ltd; and • The Statement of Environmental Effects prepared by Environmental Resources Management pty Ltd dated May 2008 to support the Section96(1 A) application by Integra Coal Operations dated May 2008.

,nberwell Coal Project (86/2889) • Camberwell Coal Project, Glennies Creek - Environmental Impact Statement, dated October, 1989, as modified by the works set out in figures 1 and 2 attached to the April 1992 Notice of Amendment; • Camberwell Coal Pty Limited to the Singleton Shire Council letter dated 21 December, 1989 advising on rail facilities; • Letter from Camberwell Coal Pty Limited to the Singleton Shire Council, dated 29 January, 5 February, 6 February, 1990; • Responses to letters of objection submitted to Council by Camberwell Coal Pty Limited dated 25 January, 1990; • Responses by Camberwell Coal Pty Limited to comments submitted by government bodies, dated 5 February, 1990; • Statement of Environmental Effects in support of a Section 96(2) application for the Camberwell Coal Mine, dated 2 July 2001, prepared by HLA-Envirosciences Pty Ltd; • Additional information provided by PJ Murray in response to submissions received on the proposal in a letter dated 29 August 2001; • Information provided by Camberwell coal Pty Limited accompanying the application to modify development consent received 20 November 2003; • Statement of Environmental Effects in support of a Section 96(2) application for the Camberwell Coal Mine, dated July 2004, prepared by David Lane Associates; • Statement of Environmental Effects Coal Handling and Preparation Plant Upgrade Camberwell Coal Mine, dated 31 March 2005, prepared by HLA Envirosciences Pty Limited; • Statement of Environmental Effects Coal Handling and Preparation Plant Workshop, dated 31 July 2006, prepared by Camberwell Coal Pty Limited; • Environmental Assessment for the Proposed Modification of Development Consent DA 86/2889 Integra Open Cut Increase in Annual ROM (ROM) Coal Production from 3.8Mt to 4.5Mt, dated 29 February 2008, prepared by Integra Coal Operations Pty Ltd; and • Statement of Environmental Effects titled Relocation of Explosives Magazine Compound and Reload Facilities, dated 22 March 2010, prepared by Integra Coal Operations Ply Limited.

Glennies Creek Colliery Surface Facilities (06_0057) • Environmental Assessment titled Glennies Creek Colliery Environmental Assessment of Surface Facilities and Activities dated July 2006, and the associated response to submissions, titled Responses to Issues Raised in Submissions (Project Application 06_0057) dated 23 October 2006 prepared by Glennies Creek Coal Management Pty Ltd; • Letter from the Proponent to the Department amending the project application, dated 3 October 2006; • Modification application and supporting information titled Proposed Modifications to Forest Road Ventilation Shaft Area, dated October 2008; and • Modification application and supporting information titled Supporting Information for a s75W Application to Modify Condition 16 of Schedule 3, Project Approval (PA) 06_0057 - Integra Coal Operations Pty Ltd, dated June 2009.

Glennies Creek Underground Coal Project (06_0213) • Environmental Assessment titled Glennies Creek Colliery Longwalls 10 to 17 Part 3A Environmental Assessment for Integra Coal Operations Pty Limited dated 19 September 2007, and the associated response to submissions, titled Glennies Creek Part 3A Application - Longwall Panels 10-17 Middle Liddell Seam Response to Submissions, dated February 2008 prepared by Environmental Resources Management Australia pty Ltd.

Glennies Creek Open Cut Coal Project (06_0073) • Environmental Assessment titled Environmental Assessment Glennies Creek Open Cut Coal Mine, Volumes 1-3, dated October 2007, and the associated responses to submissions, titled Response to Government Agency Submissions Glennies Creek Open Cut Coal Mine, dated February 2008 and Supplementary Response to Government Agency Submissions Glennies Creek Open Cut Coal Mine, dated June 2008 prepared by RW Corkery & Co Pty Ltd. NSW Government 35 Department of Planning

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OPEN CUT PROJECT AND OPEN CUT EXTENSION AREA COM PONENTS

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NSW Government 40 Department of Planning . APPENDIX 5 LAND OWNERSHIP PLANS & RESIDENTIAL RECEIVERS .... c= COIIIIMM(Q.)382 ~= PqKIA.w c:..~ ~~z-

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Se ..... I0I442O- Residential Receivers NSW Government 43 Department of Planning g- _c c '.m EO~~ ~c o· ;:m"'~ Ulfrzo APPENDIX 6 ALTERNATE NOISE CONDITIONS

Acquisition on Request following Cessation of Open Cut Mining Operations

Table 1: Land subject to acquisition upon request

Noise Subsidence 80 - G Donnellan 47 - B & R Cherry 153-R&DHall

Note: To identify the locations referred to in Table 1, see the figures in Appendix 5.

NOISE

Noise Criteria

Table 2: Noise criteria dB(A)

• Day Evening Night Night

LAeq(15mln) LAeq(15min) LAeq(15min) LA1(1rnln) '. NAG 1 All land 38 38 36 46

NAG 2 All· land ..... ,. 39 39 37 47 NAG3 t 87...... 42 42 42 49 106 .. : 39 39 39 49 All ,th I land 40 40 39 49 NAG 4 88,91,95,99,100,105,161 . 35 35 35 47 .' All otMr land .' 42 42 37 . 47 NAGS, 111 . . 37 37 37 52 ...... ' ... 112 . 36 36 36 52 . '. 118 .' 39 39 39 52 154 . 36 36 36 52 103,194 ,121,139 35 35 35 52 All other land 50 46 42 . 52 NAG.6 132,133,137 . 35 35 35 48 . AliothEJr ~" land 41 41 38 . '. 48 NAG 7 110 38 38 38 49 All other land 45 42 39 49. . NAG 8 142 35 35 35 45

All other land 42 42 35 45 .... 2,3,4,143,144,145,146,147,148, NAG 9 35 35 35 48 149: 150, 151 152 All other ""uland 40 40 38 48 NAG 10 10 42 42 42 .. ,. 47 9 41 41 . 41 47 11 13 40 40 40 47 8 38 38 38 47 . 6 36 36 ...... , ...... 35 36 ...... : 47. 5 35 35 47

NSW Government 45 Department of Planning '. 'AII other I land 39 . . 39 37 . 47 NAG 11 7,.12,14,15,16,17,18 . 35 35 '35 49 . AU other A land. !' 41 . 41 . 39 49 . NAG 12 62 . . . . . 37 37. '. 37 45 .. . 50 36 . 36 36 .45 . 51,52,53,54,55,56,57 . '35 35 35 45. All. other land 38 38 35 45 22,23:~~, 25, 26, 27, ~~, 29,30, 31, ..... NAGA 32,34,35,36,37,.38,39,40,41,42, 35 35 35 46 . . . 43 .'. . All nth", I land .39 39 . 36 46 NAGB All land 37 .. 37 35 '45 NAGC 47 36 . 36 ·36 . 45 . 63 37 . 37 37 45 64 . . 38 38 38 . 45 All other land 37 37 35 45 . NAGD 49 . 36. '. 36 36 48 44,48 . 35 35 35 48 AU other land 40 40 38 48 NAGF 67,68 39 39 39 50 . 65,66 . . 37 37 37 50 . All other land 40 40 40 50

NAGG All ".CU land 41 . 41 39 50 AII.other I land 35 35 35 45

Notes: • To identify the locations referred to in Table 2, see the applicable figures in Appendix 5; and • Noise generated by the projects is to be measured in accordance with (he relevant procedures and exemptions (including certain meteorological conditions), of the NSW Industrial Noise Poticy.

Additional Noise Mitigation Measures

3. Table 6: Land subject to noise mitigation measures on request

9.- W & N Pendered 10 - E & B Kleinman 11 - F Ferraro 13 - P & K Russell 64 - W & A Gardner 87 - B & R Richards

Note: To identify the locations referred to in Table 6, see the applicable figures in Appendix 5.

NSW Government 46 Department of Planning APPENDIX 7 GLENNIES CREEK AND STATION CRE EK ALLUVIAL AQUIFERS

REFERENCE - Project Area Boundary lIIIIIII1 Glennies Creek I Station Creek Alluvials c::=J 150m Buffer Zone (within Project Area)

Note: Aluvials as defined In Report GC13·R1E 12 June 2009

SCALE 1: 40 000 .. o 0.' 1.0 1.' 2.0 km Figure B

NSW Government 47 Department of Planning APPENDIX 8 AREA FOR FURTHER ARCHAEOLOGICAL INVESTIGATION

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NSW Government 48 Department of Planning

, APPENDIX 9 CONCEPTUAL FINAL LANDFORM AND OFFSETS

REFERENCE - Project Area Boundary c:=:J Tree Lots and I or Pasture c:=:J Tree Planting c:=:J Highwall Treatment ~ Biodiversity Offset Area L'SSS.'S1 Riparian Rehabilitation Zone _ Water Body

SCALE 1:40 000 o 0.5 1.0 2.0km I.' Figure A

NSW Government 49 Department of Planning INTEGRA INTEGRA COAL OPERATIONS PlY LTD VEGETATION COM .. UNmES URS ,.,

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"" CONCEPTUAL EXTENDED SOUTH PIT AND OPEN CUT PROJECT AREA IREHAB ILITATED FINAL lANDFORM 1- 3.9 f!"= Q-- URS ~ ;;;;:;:,..... _- NSW Government 51 Department of Planning APPENDIX 10 STATEMENT OF COMMITMENTS

Underground Project Statement of Commitments

D.es.iEed OutcClrn.E! ...... Exi"tingClrf>rClI'Cl"ed.~"tiClns .. .. Iirni~g STATUTORY REQUIREMENTS Compliance with all conditional requirements in all approvals, • The development will be carried out as outlined in the following: • Continuous and as required. licences and leases. • this Environmental Assessment Report (EA); • Project Approval; • Environment Protection Licence; • Subsidence Management Plans (SMPs); • Mining Lease(s); and • ,any other approvals, _Ii~enc,es or leases. AI! operations conducted in accordance with all relevant e Undertake all activities in accordance with the accepted Mining • Continuous and as required. documentation. Operations Plan; environmental procedures; safety management plan and/or _si~~__ ~spec_ific d_ocumentation.Jn _force at that time. STAKEHOLDER CONSULTATION That effective communication/consultation is undertaken • Preparation of a community newsletter following Project Approval. • Within three months from the date of Project throughout the life of the Project. ApprovaL • Biannual meetings of the Community Consultative Committee. • Continuous and as required.

• Ongoing communication with the management of Xstrata and provision of • Continuous and as required. subsidence mCl_ni1

NSW Government 52 Department of Planning Timing ~.. ".i.re.

• In consultation with the relevant landowner, ICO will remediate any dam • As required. that is damaged by subsidence (or has its storage capacity reduced by more than 10 percent) to a condition similar to that prior to subsidence. ECOLOGY Operations are managed such that adverse impacts to native • ICO will implement the following flora and fauna management • Continuous, as required. flora and fauna are prevented, minimised and/or offset. procedures. • Revegetate the planned Bettys Creek diversion channel and adjacent areas; • Undertake surveys along the creek diversion and revegetated areas to record any significant loss of planted seedlings and monitor the use of revegetated areas by native fauna. • Revegetation design, weed management, exclusion of cattle and ongoing monitoring in the area of the Bettys Creek diversion will be coordinated in consultation with Glendell. • The abandoned Bettys Creek channel will be managed (ie weed control and exclusion of cattle) in conjunction with the ongoing management and monitoring of the proposed diversion. • Based on the ephemeral nature ofthe existing channel, consideration will be given to blocking off the abandoned channel at the downstream end to act as a billabong to retain any surface fiows. o Undertake pre-clearance inspections of borehole sites. Where possible, the inspections will be undertaken during the summer flowering period to optimise detection of Bothriochloa N/oba and to avoid impacting directly on any individual plants, HERITAGE Operations are managed such that adverse impacts to • Artefact scatters (sites 37-3-0597,37-3-0595 and 37-3-0027) that will be • Prior to the diversion of Bettys Creek. significant Aborigina! and Historical heritage items are destroyed by the proposed Bettys Creek diversion will be salvagedand NSW Government 54 Department of Planning D~sired O_utco.rn~ E"isti.ng()rJ'r()p.()s.eci.J\.cti()t}!;..... Tirning~ ...... ~... .~~ avoided, minimised and/or offset. involve the following. • During clearing works in the areas where surface earthworks will occur, a qualified archaeologist will undertake field work with assistance from the Aboriginal community . • Artefacts will be recorded individually and, once any site is salvaged, all materials and list of details collected for each artefact will be provided to the Local Aboriginal Land.C.ounciL • Monitoring of excavation works along the banks of Bettys Creek will be • During excavations works undertaken for the . undertaken by arepresentative of the Aboriginal community, d.iversion of Bettys Cree.k. • The area to be impacted by the realignment of Main Creek will be re· • Prior to the diversion of Main Creek. surveyed with the assistance of the local Aboriginal community and any sites fully recorded and logged prior to the confirmation of the channels' locations and designs. • Should the additional survey works in the area to be impacted by the • Prior to the diversion of Main Creek. realignment of Main Creek highlight any areas of high cultural or scientific significance, the alignment of the proposed works will be altered and / or subsurface investigations will be undertaken in consultation with DECC and DoP. • Sites 37-3-0682, 37-3-0683 and any additional sites recorded during the • Prior to the diversion of Main Creek survey will be salvaged prior to construction commencing and all activities requiring soil removal associated with the realignment of Main Creek will be monitored by representatives of the Aboriginal community. The salvage will: • be undertaken by a qualified archaeologist during clearing works in the areas where surface earthworks will occur with assistance from the Aboriginal community; and • include recording of individual artefacts. Once any site is salvaged, all materials and list of details collected for each artefact will be provided to the Local Aboriginal Land Council, • Monitoring of excavation works along the banks of Main Creek will be • During excavations works undertaken for the undertaken by a representativeof th.e. Aboriginal community, diver!?ig r1 .. of Main Greek. • Infrastructure will be sited to avoid impacts to known heritage sites. • Continuous, as required. Should impacts be unavoidable, DECC and the local Aboriginal <:;omrnLi..t!ity r~pr~~~ntat_ives w,ill_ be_ c;p.()§~clActi()n"...... 1i",i(19. surface testing may be undertaken in affected areas with the involvement of the Aboriginal stakeholders and DECC. • The Hebden SMPs to be developed will incorporate and build upon the • Prior to the commencement of proposed existing Archaeology S.ubsidence Management Plan.. longwall mining in the affected area. SURFACE WATER Operations are managed such that adverse impacts to surface • ICO witl maintain the existing surface water monitoring program, and • Continuous, as required. water are prevented, minimised and/or offset. undertake additional monitoring including collection of grab samples during or immediately after surface runoff events along ephemeral watercourses; monthly water quality sampling of major water major storages on the site; collection of data on water quantity and at least weekly collection of underground mine dewatering and raw water supply volume data. • ICO will maintain a photographic record of the creeks and dam walls to • Continuous, as required. determine historical (baseline) rates of erosion. • As part of the erosion and flood studies, ICO will assess whether rapid • Continuous, as required. changes in channel or floodplain form occur in the aftermath of runoff events. • Monitoring results will be reported in the AEMR and distributed to the • Annually. relevant Government agencies, eee members and other relevant stakeholders. ICO will prepare: Prior to Hebden Seam longwall mining • a response strategy to address any destabilisation of Main Creek; undermining Man Creek. • a works programming for any necessary remedial works in Main Creek should subSidence expression initiate incision and headward erosion; • an outline of expansion of piezometric monitoring; and • a TARP as part of a surface water and groundwater monitoring and management program. • No impacts will occur to licensed water users, basic landholder rights or • Continuous. minimum baseflows in Glennies Creek regulated river or environmental water requirements. • A Site Water Management Plan will be prepared outlining management • Prior to the commencement of proposed measures associated with potential erosivity of the Bettys Creek longwall mining in the affected area. diversion or degradation of Glennies Creek and any subsidence effects that may occur on the diversion or Glennies Creek and its associated alluvium. • The mine plan will be developed and operated such that no detectable or • Prior to the commencement of proposed measureable ingress of surface water into the mine workings will be longwall mining in the affected area. generated that can'tbereversed. • Integra Coal will not restrict Xstrata Coal's ability to stabilise and • Prior to the commencement of proposed reconfigure the diversion to Bettys Creek, and will develop an updated longwall mining in the affected area. Site Water Management Plan t6 manage any adverse impacts from extraction of the Hebden Seam panels, including the collection of monitoring data by an independent consultant agreed to by ICO and Xst,rata pri()r to the di'lersi(}n,b~_ing, underrni,ned. • .1,rlt~9.ra Coa_l_ wi_ll_provide _eyid_~,n,<:~ ,that their w?ter C:"lcc():ulltingpr{)ce.dure_ • "Co_rl~in~9,u~"" §~ ,required. NSW Government 56 Department of Planning .. [)e~ir~d Outcome. .E:J(i~tingo[f'r()p()sectj\<:ti,)ns...... TilYling~...... complies with dealings rules as prescribed under the Hunter Regulated River Water Sharing Plan (HRRWSP) andlor Hunter Unregulated River and Alluvium Water Sharing Plan (HURAWSP). • Integra Coal w1!l ensure it has sufficient water to meet mine operational • Continuous, as required. demands in accordance with the statutory rules of the Hunter Regulated River Water Sharing Plan (HRRWSP) andlor Hunter Unregulated River and Alluvium Water Sharing Plan (HURAWSP), and any other statutory instruments in force under the Water Act 1912, and Water Management Act 2000. Should insufficient water be available to continue mining operations, mining operations will be scaled back to meet water supply requirements. • any proposed workings under Glennies Creek and its associated alluvium will be designed to be stable in the long term, taking site conditions into consideration GROUNDWATER Operations are managed such that adverse impacts to local • The current groundwater monitoring program wil! continue with ongoing • Continuous, as required. and regional groundwater resources are prevented, minimised review and possible modification of the program as further data is andlor offset obtained and interpreted. Annual reports documenting and interpreting the collected data will be prepared. • Groundwater samples will be collected annually from selected • Annually, as required. piezometers and analysed at a NATA registered laboratory for major ions and selected metals. The groundwater program will be maintained in its current form, with a review of the program after interpretation of the first 12 months' data. • A private well monitoring program will be initiated to determine its pre • 12 months prior to extraction of the Barrett mining yield if requested by a private bore owner. Seam (subject to the timing of any request). • Should a reduction in groundwater availability be detected, remedial • Subsequent to detecting a loss of action will be undertaken by Integra to offset the measured losses, Such groundwater availability due to mining. actions may include digging the well deeper, installing a new well or installing a replacement bore. • Performance indicators will be identified and a statistical assessment will • Prior to longwall mining in the Hebden Seam. be undertaken to detect when, or if, a Significant change has occurred in the groundwater system and to benchmark the natura! variation in groundwater quality and standing waterlevels. • Contingency procedures will be developed. Activation of contingency • As required. procedures will be linked to the assessment of monitoring results. • Following the completion of extraction of each longwall panel, a report • Following the completion of extraction of each will be prepared that summarises relevant monitoring data. Relevant longwall panel and in the AEMR. monitoring and management activities for each year will also be reported in the AEMR.

NSW Government 57 Department of Planning [)e,~ire<:l()lJtcome ... E:~i~tin9()rPr()p.o.se<:l.. II.<;!i()n" ...TIming AIR QUALITY Operations are managed to minimise potentia! adverse • Implement the following air quality control procedures. • Continuous, as required. impacts to the environment, residences and the community. • Coal handling areas, stockpiles, roads and trafficked areas will be maintained in a moist condition using water carts and I or water sprays to minimise wind-blown and traffic-generated dust. • Water sprays will be used at the longwall and development face to control particulates. • All haul roads will have edges clearly defined with marker posts or equivalent to control their locations, especially when crossing large overburden emplacement areas. • Obsolete roads will be ripped and re·vegetated; • Development of minor roads will be limited and the locations of these will be clearly defined. • Minor roads used regularly for access etc will be watered/treated to control dust. • Due to OHS regulations regarding underground air quality, dust generated underground will be minimised. Currently this includes the application of water and/or use of dust suppressants. • ICO will continue air monitoring in accordance with the Integra • Continuous. Underground EMS Procedure 002·2, Air Quality Monitoring Program, including monitoring weather conditions, TSP, PM10 (using HVAS), real timePM10 (using TEOM)anddust fallout. • The results of the ongoing air quality monitoring program will be • Continuous, as required_ corr~_municated to residents _in the Local Community._ GREENHOUSE GASES Manage operations such that greenhouse gas emissions on • Fugitive methane emissions wiH be captured for energy generation where • Continuous. the environment are minimised and beneficial use of methane possible. If not feaSible, flaring will be adopted, where practicable. is maximised. • Greenhouse gas emissions will be estimated and reported annually. • Following commencement of proposed mini,ng~ • Energy and greenhouse gas emission reduction initiatives will be • Continuous, as required. implemented throughout the life of the development, including the following. • The efficiency of all new and upgraded mobile and fixed equipment will be considered during procurement for fuel powered equipment. • Ensuring equipment will be maintained to retain high levels of energy efficiency. • The inventory of emissions developed for this environmental; assessment will be maintained. • Emissions and abatement strategies will be reported annually as part of the internal environmental reporting and National Greenhouse and Energy Reporting obligations and in theAEMR. NOISE AND VIBRATION Operations are managed to minimise potential adverse • ICO will implement the following noise management procedures and • Continuous, as required. impacts on the environment, residences and the community. mo.flitoring programs. NSW Government 58 Department of Planning Desired Outcome Jl(I~tin9()re!()I'(),;"pj\<:tion,; .. • Use of conveyors instead of haul roads where approved. • Construction of acoustic bunds adjacent to haul roads where recommended by an acoustic consultant. • Use of routine monitoring results to refine on-site noise mitigation measures and operating procedures. • Undertake noise audits at boundary positions to static sources to verify potential change in overall sound emissions. • Undertake regular discussions with potentially affected residents to proactively identify noise related issues of concern . .. Undertake quarterly monitoring at identified representative receivers. • Implement acoustic mitigation at residences where exceedances of the project specific criteria are demonstrated via the monitoring program and requested by the landowner. • Consideration of negotiated agreements with landowners where exceedances of the project specific criteria are substantiated by monitoring. • Informing residents that the existing community information line for Integra Underground would apply to this proposal. • Existing and I or additional real time noise monitoring will be utilised to manage, assess and control potential emissions from the Integra Open Cut and Underground operations. • A blast management protocol will be developed in conjunction with XMO • Prior to the commencement of proposed to manage potential impacts from other mine's blasting on the mining in the vicinity of open cut mining undergr(}und _m_i_rJir~g .?gti\jities. () p_~ rati()_n.~. • Integra will investigate the feasibility of installing an overland conveyor to • Prior to 30 June 2010 transport coal from the Integra Underground to the Integra CHPP and provide the outcomes of that investigation to theDirector-General. TRANSPORT Management of rail infrastructure. • A new Mt Owen Rail Spur Management Plan will be prepared in • Prior to the commencement of proposed consultation with XMO, and will include monitoring, stakeholder longwall mining in the affected area. consultation and ~itigation measun3S. Management of roads. • Current traffic and transport management measures will continue. In • Continuous. addition, linemarking of Stony Creek Road and Middle Falbrook Road will beunde.rtaken ifrequested by Council. WASTE Avoidance of unnecessary resource consumption; reuse, • Wastes will continue to be managed in accordance with the Integra • Continuous, as required. reprocessing, recycling and energy recovery wherever Underground Procedure PRO_0381 - Waste Management, including the possible and, where this is not possible, disposal of wastes in following. an environmentally responsible manner. • Reuse of mine water for dust suppression at the Integra Underground and Open Cut, in the CHPP and at neighbouring mines. • All waste oils will be pumped into on site storage tanks for subsequent transfer to a registered waste disposal company. • Old batteries will be stored in a designated bin prior to collection by a licensed contractor. • All scrap steel will be stored in dedicated skips and sold to scrap steel NSW Government 59 Department of Planning Desired Outcome , .. ~ .. "--,.-.--... -,,,~,-- .... E.xIsJi.~.R.<>rJ'~'<>l',<>.S~.cll\"ti()~s: .. merchants for recycling. • Bulk chemical containers will be returned to suppliers for reuse as part of the supply agreement • Pallets will be collected by a recycling contractor. • Colour-coded recycling containers will be placed in identified areas for collection of cardboard and paper products and collected regularly by licensed contractors I recyclers. • Sewerage waste from site offices, administration building, maintenance areas and bath houses will be treated using an aerated wastewater treatment system before being discharged to an anaerobic and aerobic dam system. The water will then be irrigated onto adjacent land. o Sludge from the aerated wastewater systems will be pumped out as required by contractors and disposed of to a licensed facility. • Hazardous materials will be stored in accordance with Australian Standards. • Old paints Ipreservatives, disused chemicals, solvents and coolants will be stored in allocated areas prior to being removed by a licensed hazardous water contractor. o Liquid waste from parts washers will be stored in 200L containers for remova! by licensed waste contractors. • Waste oil filters will be taken to a recycling facility by a registered waste disposal contractor. • Materials containing liquids will be removed by a licensed contractor for recycling or disposal at a licensed waste management facility. • Domestic wastes and maintenance consumables will be separated and <::()ll~cted qy wast~ (~().rttr9c.~ors. REHABILITATION That effective rehabilitation is undertaken at the completion of • Rehabilitation associated with proposed mining will be undertaken in • Following the completion of mining in the mining. accordance with the relevant MOP, REMP, Extraction Plans and SMPs. affected area. SOCIO-ECONOMIC • A social impact monitoring strategy will be developed that quantifies the • Following commencement of proposed Net benefits of the proposal sufficiently outweigh potential impacts on the local community and the effectiveness of strategies longwall mining in the affected area. adverse impacts. implemented in .minimising these impacts.

Open Cut Project Statement of Commitments

Item Mitigation Measure and Commitment Imelementation General Ai I Integra will comply with all conditional requirements in all approvals, licences and leases. Throughout the life of the Project. A2 I Integra will conduct all operations in accordance with all relevant documentation including: Continuous as required I. Mining Operations Plan; I' environmental procedures; and .• safety management (2lans and/or site s(2ecific documentation. - Soils and Land Capabilitv . B1 I Strip material to the depths stated in Table 6-3. I Continuous dunnq operations B2 I Material will not be stripped in either extremely wet or dry conditions. I Continuous during operations NSW Government 60 Department of Planning --c-. .. Item Mitigation Measure and Commitment .' Implementation B3 Stripped material will be used immediatelv (where practicable) to avoid the requirement for stockpiling. Continuous during operations B4 Tracking over previously laid soil will be avoided to minimise compression effects. Continuous durinq operations B5 The surface of soil stockpiles will be left in as a coarsely textured a condition as possible to promote rainfall infiltration and Continuous during operations minimise erosion. B6 A maximum stockpile heiqht of 3m will be maintained where practicable. Continuous durinq operations B7 Stockpiles will be positioned away from drainage lines and/or upslope water diversion banks or similar controls will be installed. Continuous during operations B8 Downslope sedimentation controls will be installed until the soil stockpiles are appropriately stabilised. Continuous durinq operations B9 If long-term stockpilinq is planned (I.e. greater than 3 months), stockpiles will be seeded and fertilised as soon as possible. Continuous during operations B10 Prior to re-spreading stockpiled topsoil onto reshaped overburden, it will be decided if individual stockpiles require herbicide As required application and / or 'scalping' of weed species prior to topsoil spreading. ! B11 An inventory of available soil will be maintained to ensure adequate topsoil materials are available for planned rehabilitation Continuous during operations activities. B12 Topsoil will be spread to a nominal depth of O.10m. Continuous during operations Groundwater C1 Standing water levels and groundwater quality will be assessed in accordance with Table 7.3, Table 7.4 and Table 7.5. Continuous durin~ and after operations C2 All results will be reviewed and updated monitoring and remediation plans will be developed as required in consultation with Continuous during and after operations I DWE, DPI-MR and DECC. C3 If required, contingency measures will be developed to manage any adverse impacts identified by monitoring that may indicate Continuous during and after operations unanticipated effects in the qroundwater system's response to mining in the proposed Pit. C4 If the impacts of mining on the alluvium and Foybrook Formation groundwater systems are demonstrated to be greater than Continuous during and after operations anticipated, Integra will: I • assess the significance of these impacts; • investigate measures tu minimise these impacts; and • describe what measures will be implemented to reduce, minimise, mitigate or remediate these impacts in the future to the satisfaction of the Director-General. C5 Rehabilitation of groundwater dependent ecosystems will be incorporated as part of the Offset Strategy (refer Commitment Continuous during and after operations E 10). Trigger thresholds for the groundwater management response will be identified and included in the Rehabilitation I Strategy. C6 The amount of water pumped into or out of the proposed Pit will be monitored to assess the actual volume of water stored Continuous during operations within the pit as well as to assess the qroundwater inflows and evaporation effects. C7 All new bores will be installed by suitably licensed drillers after obtaining the relevant license from DWE. Continuous during and after operations C8 If monitoring results indicate the agreed standard or performance indicators are not being achieved, remedial actions will be Continuous during and after operations implemented as appropriate. C9 ' An annual report will be prepared by a qualified hydrogeologist and include a statistical analysis of the results of the Annually during and after operations parameters measured, an interpretation of water quality and standing water level changes. C10 All relevant monitoring and management activities for each year will be reported in the AEMR. Annually C11 ICO will adhere to the operating rules of the Hunter Regulated River Water Sharing Plan (HRRWSP) and the Hunter Continuous during and after operations Unregulated River Water Sharing Plan (HURRWSP), thereby ensuring that the operation olthe proposed extended Pit will protect Glennies Creek and its associated well connected alluvia! water sources. C12 Ongoing verification of the EA predictions and contingency measures will be attained by development and adherence to a Continuous during and after operations surface water and groundwater monitoring and management plan (SW&GWMP) that will be prepared, in consultation with NOW. Cut off thresholds that relate to potential mining induced depressurisation impacts in the connected Glennies Creek Alluvium will be established and documented in the SW&GWMP.

NSW Government 61 Department of Planning '--Item Mitigation Measure and Commitment Implementation C13 During excavation of the western periphery of the pit, geological mapping will be used to assess the potential southerly Continuous during operations extension of a fault identified in the drift to the Integra Underground and, if identified, its significance. If the fault is present in the pit, it will be investigated to assess whether it can provide a connective hydrological pathway between the pit and the Glennies Creek alluvium through re-activation of the fault. If appropriate, the hydrological significance of the fault will be assessed through incorporating its hydrological properties into the existing FEFLOW groundwater model. Surface Water ! D1 Construct diversions to direct clean water away from areas of disturbance, to a standard suitable to contain an ARI 50 year Prior to and progressively during operations. I rainfal! event. D2 I Construct dirty water diversions to collect stormwater runoff from disturbed areas and deliver this water to sedimentation Prior to and progressively during operations. I basins. D3 Construct sedimentation basins to treat disturbed area runoff prior to discharqe. Prior to and progressively during operations. D4 Continue and extend existing Water Management System. Continuous during operations D5 Continue the existing Surface Water Monitoring Program and extend to include: Continuous during operations • collection of grab samples along ephemeral watercourses such as Station Creek, during or immediately after surface runoff events; • monthly water quality sampling of water storages on the site; and • regular collection of data on water quality, storage water levels (including the Portal Sump) and pumping volumes between I storages. D6 All pumped inflows to dirty water storages will cease when the storage water level reaches a defined Maximum Operating Continuous during operations Level. D7 If the weather outlook indicates future significant rainfall, water will be pumped out of any dirty water storage (with the potential Continuous during operations to discharge offsite) that is within 100 mm of spilling, provided that a suitable alternative storage location is available elsewhere on the site. D8 In the event of a dirty water discharge offsite, water samples will be collected at the overflow from the spilling storage and at Continuous during operations the surface water sampling locations along Station Creek (for spills within the Station Creek catchment). For a spill from Possum Skin Dam, a sample will be collected at the discharge point and at the point of inflow to Glennies Creek. D9 If a spill occurs, an incident report will be prepared which documents the circumstances leading to the spill, the measures taken Continuous during operations to prevent the spill, the estimated spill volume and duration, and the measured water quality results. Any spillage will be reported to DECC in accordance with the reauirements of the site's Environment Protection Licence. D10 After construction of drainage works is complete, disturbed areas will be topsoiled and revegetated using a combination of During and following operations as appropriate. pasture grasses and cover crops to stabilise the ground surface. D11 As part of the rehabilitation activities, above ground landforms will feature drainage provisions designed to effectively capture During and following operations as appropriate. and divert surface water run-off to stable disQosal areas Qrior to being discharged into surroundinQ watercourses. Biodiversit E1 A Flora and Fauna Management Plan will be developed and include measurements for the minimisation or avoidance of Prior to commencement of operations. impacts on native flora and fauna. This will include: • pre-clearance surveys; • groundcover clearance protocol; • site management measures such a temporary exclusion fencing, maximum vehicle speeds and reducing the use of lighting to decrease impacts on nocturnal fauna; and • limiting vehicular and personnel entry into retained vegetation through temporary exclusion fencing, locating access roads and tracks to avoid habitat and use of signage where necessary. ! E2 Fauna management procedures will include: Prior to and during operations. • monitoring of trees for fauna before and during clearing operations;

I-- __ ~voiciiD_9 trees withnresident fauna asm~L~h as practig9nQJ~_;__ ----- ... _- ._------NSW Government 62 Department of Planning , l- Item Mitigation Measure and Commitment " Implementation • demarcation and avoidance of identified hollow bearing trees wherever possible; • carefully sawing and placing intact hollow-bearing trunks and branches into adjacent areas of native vegetation; • replacing habitat, such as nest boxes, where habitat trees are to be removed; • maintaining existing maximum vehicle speed limits within the Open Cut Project Area to reduce fauna road fatalities; • limiting vehicular and personnel entry into retained vegetation through temporary exclusion fencing; and • directinq liqhting at operatinq equipment to reduce liqht spill onto nocturnal fauna species in adiacent vegetation, I E3 Pre-clearance surveys wi!! involve: Prior to clearing activities. • diurnal searches for birds, nests and roosts including targeted searches for communal nests of the Grey-crowned Babbler; • active searches for microbats, including checking under exfoliating bark; and • nocturnal surveys, including stag watching of identified habitat trees, specifically focusing on observing use of trees by microbats. E4 If threatened species nests or nestlings are observed within or close to the Open Cut Area then clearing will be postponed until Prior to and during clearing operations. the nestlings have hatched and fully-fiedged, If operational constraints mean that this delay is not practicable then DECC will be consulted to determine if relocating the species is acceptable, E5 A groundcover clearance protocol will be implemented and involve: During clearing and soil stripping activities. • removal of large woody debris using excavator grabs or raking if practicable; I e placing of intact large woody debris within adjacent areas of intact vegetation; • stripping and stockpiling leaf litter and topsoil separately from deeper fiII'material; and I • reusinq leaf litter and topsoil in rehabilitation works, E6 Fencing will be implemented to exclude grazing by cattle within retained patches of remnant vegetation to improve habitat Prior to, continuous, during and following value and fioral diversitv, operations. E7 I A weed and pest management plan will be prepared and implemented as part of management procedures in order to control Prior to commencement of and during operations. feral animals and to limit the spread of weeds, E8 Revegetation of suitable components of the Open Cut Area will be undertaken using species representative of the lronbark During rehabilitation and revegetation programs. I Woodland, E9 Subject to the receipt of all necessary approvals/permits, a creek rehabilitation program will be undertaken along Station and Prior to, continuous during and following mining I Glennies Creeks and will include: operations. 10 erosion control, rubbish removal, complementary planting, weed control, habitat enhancement and exclusion of grazing stock from riparian zones; and I. a monitorinq and manaqement program to identify and manaqe noxious weed infestations, I E10 Integra will implement a biodiversity offset package in consultation with DECC to compensate for the potential clearing of 19ha In accordance with Project Approval of remnant native vegetation and will include: requirements. 1, Revegetation of suitable components of the Open Cut Area; 2, Conservation and rehabilitation of the degraded riparian and forest habitat along Glennies and Station Creeks; and 13 Identification and permanent conservation of a suitable woodland offset in the locality, a minimum of 30ha in size, in I consultation with DECC, , Pending the satisfaction of the 3 components above, Integra will provide a bond or security to DECC which could be used I I I . in the event that Integra does not identify a suitable offset in the specified timeframe, , Traffic and Transportation F1 Adhere to RTA and Council restrictions on transport hours and safety/warning requirements for transportation of oversize loads Continuous during operations.

I on local roads. I F2 Minimise the duration of road closures on the southern end of Middle Falbrook Road during blasting, When blasting within 500m of the open sections I of Middle Falbrook Road, F3 Blasting within 500m of the Main Northern Railway line will be controlled under the existing procedure (PRO_2029 Blasting When blasting within 500m of the Main Northern Adjacent to the Main Northern Railway Line) that has been developed in consultation with ARTC, Railway Line, NSW Government 63 Department of Planning I Item·· Mitigation Measure and Commitment . Implementation I F4 Provide notification on the morning prior to a blast of blast times to residents and others who request to be included on the Prior to all blasts. blast notification list. ------"------1 I Noise and Blastin~ ------.-- G1 Use noise mitigated mobile equipment to achieve the predicted noise emission levels at the identified receptors. Continuous during operations G2 I Restrict evening and night-time mining operations, where practicable, to areas that minimise emission levels outside of the Continuous during operations I Project boundary. G3 Undertake development activities such as tree clearinq and soil strippinq during day time operations only, where practicable. Continuous during operations I G4 Refine on-site noise mitigation measures and operating procedures, I.e. based upon monitoring results. Continuous during operations G5 Initiate reqular discussions with potentially affected residents to proactively identify noise-related issues of concern. Continuous durinq operations G6 ConSider acoustic mitigation at residences where exceedances of the project speCific criteria are substantiated by monitoring. Continuous during operations G7 Consider negotiated agreements with landowners where exceedances of the project speCific criteria are substantiated by Continuous during operations monitoring. G8 Continued implementation of the existing Explosive Hazard Management Plan to ensure the safety of employees and the Continuous during operations public durinq explosives handlinq and blastinq operations. G9 Restrict blasting to between the hours of 9.00am and 5.00pm Monday to Saturday, unless blasts outside this time are required Continuous during operations for misfire re-blast, emergency or safety reasons. G10 Blast design and implementation to be undertaken by a suitably qualified blasting engineer and/or experienced shot-firer to Continuous during operations ensure ANZEC Guidelines are met at all non-proiect related residences surroundinG the Open Cut Proiect Area. G11 Refine blast mitigation measures and operating procedures as required, based on monitoring results. Continuous during operations G12 Provide notification on the morning prior to a blast of blast times to local residents and others who request to be included on the Continuous during operations notification list. G13 Use aqqreqate as the stemminq material (not drill dust) in order to fully contain the explosives within the blasthole. Continuous durinq operations G14 In the case of the Part Pit Extent (Le. Integra is unable to acquire Residence 153 or negotiate an agreement with the owner), Continuous during operations

. '1' blasting will not be undertaken within a 500m Exclusion Zone surrounding the 'Dulwich' residence and 200m from the property boundary until such time that it can demonstrate to the Director-General that blasting can be undertaken without an I unacceptable risk to the resident, residents, their stock or residence. Air Quality Hi Only the minimum area required for the operation of the Open Cut Project will be disturbed. Reshaping, topsoil emplacement Continuous during operations. and rehabilitation of overburden emplacement areas wil! occur as soon as practicable after the completion of overburden emplacement. i H2 Coal handling areas/stockpiles will be kept in a moist condition using water carts to minimise wind-blown and traffic-generated Continuous during operations. I dust. H3 Water sprays will be available for use on ROM coal stockpiles as required to reduce airborne dust. Continuous during operations. H4 All roads and trafficked areas will be watered when reauired usinq water trucks. Continuous durinq operations. H5 All haul roads would be clearly defined, especially where they cross overburden emplacement areas. Continuous during operations. H6 Development of minor roads will be limited and the locations of these will be clearly defined. Continuous during operations. H7 Minor roads used reqularly for access etc will be watered. Continuous durinq operations. H8 Obsolete roads will be ripped and re-vegetated. Continuous during operations. H9 Access tracks used bv topsoil strippinq eauipment durinq their loadina and unloadinq cvcle will be watered. Continuous durinq operations. H10 Long term soil stockpiles (not used for over 3 months) will be reveaetated. Continuous during operations. H11 Dust aprons, dust extraction systems or water injection will be used durinq drillinq o,oerations. Continuous durinq operations. H 12 AdeQuate stemminq will be used during blasting~ Continuous durina operations. H13 A real-time PM ,o monitor (TEOM) will be implemented at the location agreed with the DECC in accordance Conditions of Continuous during operations. Consent for North Open Cut (PA 06 0073). This will be located in the vicinity of Residence 48. Should the 24-hour average concentrations of PM,o approach the cumulative assessment criteria 150 ~g/m3, the Operations Manager (Open Cut) of the NSW Government 64 Department of Planning Item Mitigation Measure and Commitment Implementation I mine would review the current Open Cut operations and take remedial action to ensure the impact on the property is kept below the criteria. Should the criteria be reached, then all Open Cut operations will cease. I H14 ! A real-time PMlO (TEOM) will be located in the vicinity of Residences 108 to 112. Should the 24-hour average concentrations Continuous during operations. I of PM,o approach the cumulative assessment criteria 150 ~g/m3, the Operations Manager (Open Cut) will review the current i Open Cut operations and take remedial action to ensure the impact on the property is kept below the criteria. Should the criteria be reached, then all Open Cut operations will cease. H15 Rather than establish an additional monitor at Residence 87, Integra will negotiate with Ashton mine the joint use of data from Continuous during operations. the existing real-time PMlO (TEOM) monitor at this location (see TEOM No.3 on Figure 12-3 for location'). H16 Integra will negotiate with Ashton Coal for the joint use of data from the other sites in the Ashton mine monitoring network (see Continuous during operations. Figure 12-3 for locations). This will enable real-time monitoring of the impacts of the operations to the west of the Open Cut Project Area. H17 The results from the dust monitoring program will be regularly reviewed to ensure the data being collected is meaningful. Continuous during operations. Where warranted, the program will be adjusted in consultation with DECC, with operating/management measures modified i accordingly. H18 During Years 1 -3 of the Part Pit Extent (i.e. in the case that Integra is unable to acquire Residence 153 or negotiate an Prior to the commencement of operations and agreement with the owner), additional controls wi!! be implemented and will include: continuous during operations. • re-positioning of the main waste and coal haul routes to reduce impacts on Dulwich; • treatment of the main haul routes to achieve a level of dust control greater than 75%; • development of an Environmental Management Plan that will address environmental controls to be implemented as part of pre-operational phase soil removal activities; I • control of emissions from drilling operations through the application of water; and I • increasing the moisture content of the ROM coal in-pit. Aboriginal Archaeology 11 All actions and strategies for the management of cultural heritage values will be defined in an Aboriginal Cultural Heritage Prior to the commencement of operations. Management Plan developed in consultation with participating Aboriginal groups. 12 Prior to any soil disturbing activities, archaeological sunveys will be conducted in those areas within the Open Cut Area to be Prior to commencement of operations within impacted but which have not been sunveyed to date. These areas include the Dulwich Property. potentially affected area not previously sunveyed. 13 I Sites which will not be impacted by open cut mining will be identified on mine plans with the requirement not to disturb the I Prior to commencement of operations. , ground in these areas. If there is risk of impact, temporany fencing will be erected and restrictions placed on access. 14 Sites which may be directly or indirectly impacted by activities associated with mining wi!! be identified on mine plans with Prior to commencement of operations. development avoiding impact to these sites. Where development associated activities occur in close proximity to sites, I temporany fencing will be constructed. Where direct impact is unavoidable the strategies outlined in 15 will be followed. 15 Sites which will be directly impacted by open cut mining will be subject to: Prior to disturbance. • collection and recording of surface artefacts and storage in accordance with the requirements of Aboriginal Groups; and • targetted subsurface salvage excavation programs as detemnined in consultation with the Aboriginal stakeholders. 16 A 'Keeping Place' will be provided for the secure storage of cultural material collected. The Keeping Place will be determined Prior to commencement of operations. and agreed in conSUltation with the Aboriginal Groups during the formulation of the Aboriginal Cultural Heritage Management Plan. The Keeping Place will be retained in perpetuity subject to the recommendations of the Aboriginal Groups with regard.to the long-term positioning of the sites. European Herita!'le Jl I Work Method Statements for archaeological investigation will be prepared for Zone 1 and, dependant on the acquisition of Prior to commencement of operations within Zone I I Dulwich, for Zone 2 as identified in Figure 14-2. 1 and/or 2. ; J2 Proiect planninq and timinq will take into consideration any heritaqe manaqement requirements. Continuous durinq operations. I J3 If Dulwich is acquired, a WMS for heritage management and archaeological investigation will be prepared specifically for Zone Prior to commencement of mine operations in 3 (Figure 14-2); I Zone 3.

NSW Government 65 Department of Planning Item Mitigation Measure.and Commitment Implementation -l or I If Dulwich is not acquired, a Conservation Management Plan will be prepared to minimise and monitor project impacts on Prior to commencement of activities which may Dulwich. impact on Zone 3. J4 A forensic anthropologist will be engaged to prepare a detailed management plan for the excavation of the grave of James Prior to commencement of mine operations within Glennie. 200m of European Heritage Zone 2. J5 Should any other burial sites be exposed during surface scraping operations within the Mine Area, work will cease and Continuous during operations. appropriate personne! and authorities informed. If the remains are identified as historical in nature, management for skeletal remains will be undertaken by appropriate personnel and a report issued to the Coroner. I In the case of an intersection between European and Indigenous management strategies, or any other environmental Continuous during operations I J6 management strategy, Integra will co-ordinate appropriate consultation between the parties in order to develop and agreement on how to proceed. I J7 Copies of final excavation reports will be issued to local libraries, historical societies, the NSW Heritage Branch Library and On completion of excavation reports. State Library of NSW. .- Visual K1 To the extent practicable, reduce the potential visual impact through the construction of visual amenity bunds/screens or soil Continuous during operations stockpiles to temporarily screen views towards the proposed Open Cut Area. I K2 To reduce lighting impacts to sensitive receptors, work programs wi!! be arranged, where possible, so that some activities that Continuous during operations may be visible from surroundinq view locations, occur within daylight hours of operation. K3 Floodlights within the Open Cut Extension Area will be positioned to minimise the potential for lighting to impact sensitive Continuous during operations receptors. K4 Where pOSSible, haulage roads and overburden tipping areas will be configured to minimise the potential impact associated Continuous during operations I with headlights and flashing lights associated with vehicles travelling across the Open Cut Project Area. K5 Integra will consider any reasonable request by a residential receptor for assistance to establish a visual screen within their Continuous during operations property through planting and/or landscape works, where such works would effectively reduce the visual impact of activities II ~__ associated with the proposed Open Cut Extension. - Rehabilitation ...... L1 I Suitable species of vegetation will be planted and established to achieve the nominated post-mine land uses. The rehabilitation Continuous during operations plan will clarify the projects rehabilitation goals and outcomes and will confirm the monitoring and management proposals. L2 The majority of the post-mine landform will be revegetated with a combination of native and improved pasture species with I Progressively during operations scattered tree lots and tree corridors linking the surrounding rehabilitated areas, proposed tree planting corridors and surroundina existinq native veqetation. L3 The final landform will be stable and not subject to slumping or excessive erosion which would result in the agreed post mining Prior to completion of Project.activities and lease landform not being achieved. relinquishment L4 The outside facing slopes of the post-mine landform will generally be a maximum of 100 where they are above the natural land Progressively during operations surface. The internal facing slopes and those below natural surface reporting to the final void (including the low wall areas) will 0 j , generally be a maximum of 18 •

NSW Government 66 Department of Planning APPENDIXB B SHORT TERM DUMPING STRATEGY

INTEGRA

______

Vale Short Term Dumping Strategy

Presented to

NSW Department of Planning and Infrastructure

Contents

1. Executive Summary...... 1 1.1 Key Elements of the Vale Submission. 1 2. Structure of Response ...... 2 3. The Vale Story ...... 3 3.1 Background to Vale 3 3.2 Vale’s Australian Operation 4 4. Short Term Dumping Strategy ...... 7 4.1 Overview 7 4.2 Preferred Dumping Strategy and Stages 8 4.3 Supporting Information 8 4.4 Approvals Required for Short Term Dumping Strategy 9 5. Request for Modifications to Extend Time to Meet Existing Conditions ...... 10 5.1 Conveyor Deferral 10 5.2 Biodiversity Offsets 10 6. Communications and Community Engagement Plan ...... 13 6.1 Introduction 13 6.2 Objectives 13 6.3 Communications Tools and Materials 14 6.4 Community Engagement Activities 16 7. Vale Integra Website Upgrade Action Plan ...... 19 8. Appendices ...... 20

Page i

1. Executive Summary. Vale is pleased to present to the NSW Department of Planning and Infrastructure (DP&I) its Short Term Dumping Strategy and other planning approval matters relevant to its existing underground and open cut operations (collectively known as the Integra Complex), in response to the DP&I information request dated 21 September 2011. Vale takes its legal obligations seriously and is committed to conducting operations in accordance with its environmental and planning requirements including approvals under the Environmental Planning and Assessment Act 1979 (EP&A Act). As discussed with the DP&I and to ensure continued compliance with its existing Integra Open Cut Project Approval (PA08_0102) and the Integra Underground Project Approval (PA08_0101)) granted by the (then) Minister for Planning on 26 November 2010 (Project Approvals) under Part 3A of the EP&A Act, Integra requests that the Minister modifies its Project Approvals in accordance with section 75W of the EP&A Act, as set out within this submission. 1.1 Key Elements of the Vale Submission. Vale confirms that its submission addresses the following items requested by the Department:

 Short term dump strategy

 Request for Modifications to Extend Time to Meet Existing Conditions

 Communication & Community Engagement Strategy for communicating the short‐term dumping strategy

 Website upgrade action plan

Page 1

2. Structure of Response Vale’s response is set out in the following sections:

 Section 3: The Vale Story – setting out the background to Vale and its Australian operations

 Section 4: Short Term Dumping Strategy – outlining Vale’s proposed short term dumping strategy addressing how we intend to deal with non‐compliance, and identifying statutory approvals required to implement the strategy

 Section 5: Request for Modifications to Extend Time to Meet Existing Conditions – outlining extensions sought by Vale to existing conditions

 Section 6: Communications and Community Engagement Plan – outlining Vale’s draft communications and community engagement activities

 Section 7: Website Upgrade Strategy – outlining Vale’s action plan to upgrade Vale’s Integra website Supporting information is provided in appendices as follows:

 Appendix 1: Short Term Dump Strategy – this appendix includes the maps and supporting information detailing Vale’s suggested strategy

 Appendix 2: Resolution of Non‐compliance Issues – this appendix explains in detail the response to the non‐compliance issues and requested changes.

 Appendix 3: Options Studied for area and volume potential for ex‐pit and in‐pit dumping – this appendix provides an overview of the options considered by Vale in determining its preferred short‐term dumping strategy

 Appendix 4: Vale Integra Website Content Sitemap – this appendix provides a site map of Integra’s new website This structure allows Vale to provide a complete and comprehensive response to DP&I’s information request.

Page 2

3. The Vale Story Vale’s vision is to be the best and largest mining company in the world and to surpass the established standards of excellence in research, development, project implementation and business operations. Since its privatisation in 1997, Vale has grown to become the second largest mining company in the world, with a market capitalisation of US$177B as at June 2011. Vale is the world’s largest producer of iron ore. Vale’s aim in Australia is to become one of the largest producers of coal and amongst the largest exporters of seaborne metallurgical coal by 2021. Crucial elements of Vale’s growth story have been its:

 Continual investment in its activities to surpass international standards in environmental management  Commitment to the communities where it operates  Ability to facilitate mine operations by investing in supporting infrastructure Key Messages:

 Vale’s Australian presence is headquartered in Brisbane. This office is the global centre of Vale’s coal operations and reflects the importance Vale places on the Queensland coal market.  Vale currently employs more than 1,500 people in Australia. Vale plans to double its Australian workforce by 2016 and triple its Australian workforce to over 4,000 employees by 2021.  Vale is committed to innovation and investing in technology – it has established the Vale‐University of Queensland Coal Geosciences Lab and works with other academic institutions to continuously develop new technology.  Vale is committed to sustainable development and in 2010 invested US$1.4B in corporate and social responsibility programs worldwide. 3.1 Background to Vale Vale is the second largest metals and mining company in the world, operating in 38 countries on five continents. Vale employs over 128,000 people including direct employees and contractors. The company is currently ranked the 16th largest publicly traded company in the world with a market value of approximately US$177B (at June 2011). It is listed on the Sao Paulo, Paris, New York, Hong Kong and Madrid stock exchanges.

Originally founded by the Brazilian Federal Government in 1942, the company has experienced rapid growth since it was privatised in 1997. Vale has successfully grown from the sixth largest metals and mining company globally with a market capitalisation of US$9.2B, into the second largest mining company in the world today with a market capitalisation of US$170B at December 2010. This has been achieved both through organic growth and strategic acquisitions, underpinned by strong management and diversity of capital sources, e.g. multiple stock exchange listings.

3.1.1 Vale’s Vision and Mission Looking ahead, Vale’s vision is to become the largest mining company in the world by market capitalisation, and to surpass established standards of excellence in research, development, project implementation and business operations.

Vale’s mission is to transform mineral resources into prosperity and sustainable development.

Vale’s coal business is an important contributor to Vale achieving this vision. Vale’s global coal vision is to be the second largest global metallurgical coal exporter of seaborne coal by 2021, while Vale’s Australian coal vision is to be one of the top four producers of coal in Australia by 2021.

3.1.2 Vale’s Global Operations Vale is the world’s largest producer of iron ore and iron pellets and the world’s second‐largest producer of nickel. Vale is one of the world’s largest producers of manganese ore and ferroalloys. Vale also produces copper, thermal and coking coal, phosphate, potash, cobalt, kaolin and platinum groups metals. To support its growth strategy, Vale is actively engaged in mineral exploration efforts in 24 countries around the globe. Vale operates large logistics systems in Brazil, including railroads, maritime and intermodal terminals, which are integrated with its mining operations. In addition, Vale has a maritime freight

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portfolio to transport iron ore. Directly and through affiliates and joint ventures, Vale has investments in energy and steel businesses. Figure 1 illustrates the diversification of its operations by products/business and geography (customers).

2% 2%1% 3% Rest of world North America 3% 4% 5% 4% Europe South America 6% 19% 19%

8% 57%

14%

Iron ore Iron ore pellets Nickel Aluminium

Fertilizer nutrients Copper Logistics services Other Asia Coal Ferroalloys 53%

Figure 1 ‐ Distribution of Vale’s operations by product and geography (customers).

3.2 Vale’s Australian Operation Vale entered the Australian market in 2007 when it acquired AMCI Holdings. Vale undertakes exploration and mining activities in Australia and has 10,000 square kilometres of tenements in coal (its main focus), copper and iron ore, and an interest in fertilisers. Vale’s Australian Coal Vision is to be one of the top four producers of coal in Australia by 2021. Its Global Coal Division is headquartered in Brisbane, with additional offices in Perth, Carborough Downs and the Hunter Valley, NSW. Vale has joint venture coal mine operations in Queensland’s Bowen Basin and in the Hunter Valley. It also holds exploration licences for coal in the Galilee Basin, Bowen Basin and Millungera in Queensland, together with a range of other exploration licenses for other minerals in New South Wales, Western Australia and the Northern Territory.

Figure 2 – Vale’s Australian mining interests

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3.2.1 Australian Coal Operations Vale’s Australian coal operations are key to the success of Vale’s global coal business going forward. To achieve Vale’s global vision of being the second largest exporter of seaborne coal by 2021, and one of the top four producers of Metallurgical coal in Australia by 2021, Vale predicts it will need to more than double its workforce to over 2,500 employees in Australia by 2016 and triple its workforce in Australia to over 4,000 employees by 2021. Of the 40Mtpa production capacity targeted for 2016, it is expected output from Australian mines will account for more than 20Mtpa of this.

In 2012 Vale expects to produce 6.1Mtpa from its Carborough Downs, Issac Plains and Integra Coal mines. This volume is expected to increase significantly by 2016 when Vale anticipates to produce over 20Mtpa and in 2021 when Vale plans to have 10 mines in operation, with corresponding production volumes of 60Mpta.

3.2.2 Supporting Sustainable Development For Vale sustainable development is reached when an economic activity adds value to its shareholders, contributes to the wellbeing of society and to environmental conservation territorially and globally. This happens through the transformation of mineral resources into social development, economic prosperity, and environmental sustainability and the establishment of partnerships with governments, private sector groups, community groups and greater society.

Vale relates sustainable development to four dimensions that are applicable throughout the life cycle of mineral developments: economic, social, environmental and stakeholder engagement. Vale believes that it is only through continuous engagement of stakeholders concerning constructive agendas, that it will be possible to achieve long‐term strategies and maximise concrete results in the other three dimensions.

With that in mind, Vale seeks to maintain continuous dialogue with its stakeholders aimed at maximising its contribution to the socio‐economic development of the regions in which it operates, to conserve the environment, and to leave behind a positive legacy of social, economic, and environmental development.

In order to achieve these goals, Vale’s sustainability strategy is based on three pillars, as detailed in Figure 3:

Figure 3 – Vale’s approach to sustainable developments

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Vale is internationally recognised as a sustainable business and knows that long‐term business success is closely linked to the implementation of sustainable practices. In 2010, Vale invested US$1.14B in corporate and social responsibility, and environmental programs. This included social investment through:

 Job creation and economic growth through commitment to hire and train local workforces

 Educational and cultural program

 Community programs The Vale Foundation is Vale’s social arm and works in communities where the company contributes to integrated economic, environmental and social development, strengthening social capital and respecting local cultural identity.

3.2.3 Vale’s commitment to the Environment Vale invests continually in its activities to surpass international standards in environmental management. Aware that the environment is fundamental to the quality of its products and services, Vale is committed to sustainability. Throughout its operations, Vale pursues a balance between local socioeconomic development and maintaining the quality of natural resources, biodiversity and life. Developing and conserving are essential aspects of this strategy. Vale’s initiatives contribute to the performance of its Environmental Quality Management System (SGQA). This model is based on ISO 14001 standards, providing tools to manage the environmental impacts of its activities, products and services.

More recently in 1st Quarter 2011, Vale invested US$70.1M in social projects and a further US$125.5M in environmental protection and conservation. Vale is also the first mining company in the world to have a 100% balanced ratio between impacted and recovering areas, and in 2010 became the first mining company in the Corporate Sustainability Index of the Sao Paulo Stock Exchange.

Specifically, Vale is involved in a number of environmental programs regarding:

 Climate change

 Vale has developed the Vale Carbon Program which aims to achieve excellence in the management of greenhouse gas emissions by 2012

 Vale is the only Latin American company in the CDLI, a leadership index of the Carbon Disclosure Project (CDP) that identifies the top scoring companies in the disclosure of carbon emissions and risk management

 Energy

 32% of Vale’s energy demand in 2010 was generated by the company’s own plants, thermal generators, or cogeneration

 Vale’s consumption of renewable energy increased 8% in 2010, and the company implemented 22 projects aimed at improving energy efficiency

 Water

 In 2010, 79% of the 1.2 billion litres of water required for Vale’s operations was supplied from recycled and/or reused water sources

 Iron ore and pelletizing operations, the companies largest business areas, reported no significant increase in the total volume of water withdrawal in 2009, despite large increases in production 3.2.4 Social and community involvement As a new entrant into the Australian market, locally, within Australia, Vale is establishing an Australian sustainability program, leveraging its strong international profile and expertise in the area. Later in 2011 Vale will establish the Vale Foundation in Australia, which will drive its social responsibility programs. Vale believes in actively engaging with local communities to identify long‐term sustainable programs that it can initiate and support that will build lasting capacity in communities beyond the life of mining operations.

In 2011, Vale has partnered with The University of Queensland to undertake a detailed ‘social diagnosis’ assessment of each community in which they currently operate and plan to operate in order to tailor its ongoing social responsibility program. This underscores Vale’s responsible approach to investment and development of the communities in which it operates.

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4. Short Term Dumping Strategy 4.1 Overview The proposed strategy below is to satisfy the following requirements given by the DP&I in September 2011. This strategy will cover the requirements listed by the DP&I which were:

1. What will be done with material already in non compliance i.e. rehab it , remove it, etc

2. Time frame until in pit dumping or modification approved

3. Impact on long term strategy

To put some context around short term, Integra proposes that the short term strategy be delivered in three stages:

 First stage is four months to December 2011 which covers what the operation can do before any modification is sought and assessed.

 The second stage will provide capacity to Q1 2015 and is dependent on a modification approval and extends to include in pit dumping in the NOC and the capping and subsequent overburden placement on TD3.

 The third stage will provide capacity beyond 2015 and is for further extension of the ex‐pit areas into Bio‐ diversity areas to the east of the current ex‐pit area. A three stage approach is proposed due to the preliminary dump study work which has identified an issue of insufficient ex‐pit dump space in two separate periods of time, the first in 2013 and the second in mid 2015 therefore further ex‐pit dump space is needed. The study was conducted at a high level on an annual basis and further detail is presented below. However, Vale recommends that a detailed dump study is undertaken between the short term strategy submission and the long term strategy submission to more accurately confirm required dump space beyond stage 2 in 2015.

The tables below explain the detail of each of the non‐compliance issues and requested changes with details including priority sequencing, ongoing issues, what documents require changes and the assumptions used to support the suggested action. The tables will follow the suggested staged approached described above and have supporting diagrams broken into over burden removal, rehabilitation and dumping areas. Note the areas nominated are also in sequential order of use.

The dump strategy for the north open cut does have impacts on the long term strategy for the extension of the NOC to the north therefore material will be dumped against the sidewall and will either be rehandled or a barrier pillar design required. Other long term impacts are the increased area of dust and noise which need to be addressed with temporary rehabilitation before final land forms are established.

As for the Western Extension pit there are potential issues that may be raised between now and the long term strategy submission, therefore, to be as complete as possible the following items need to be raised and discussed.

1. LOM Tailing Dam placement in the dump area for Western Extension

2. Dump capacity concerns in year2‐4 and then LOM

3. Water management strategy

4. Land form variation

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4.2 Preferred Dumping Strategy and Stages Below is a breakdown of the three stages into activities for the NOC.

4.2.1 Stage 1 – Short term Strategy no modification required (Sept – Dec) 1. Overburden Removal

a. Removal of the approx 95k(bcm) material from Area 1 NOC dump site that is above the 141AHD level.

2. Rehabilitation

a. Rehabilitation of Area 2. A total area of 6.1Ha.

3. Dumping

a. Areas 4‐5‐6‐7‐8 have been nominated for dumping that complies with current EA.

4.2.2 Stage 2 – Short term Strategy with modification approved – (AHD141) 1. Rehabilitation

a. Rehabilitation then can begin on Area 3. A total area of 16.5Ha.

b. When areas available from new dumping areas.

2. Dumping

a. Dumping can begin in new areas out of pit, Area 9.

b. Dumping can begin in‐pit in Area 10 in conjunction with out of pit dumping.

4.2.3 Stage 3 – Short term Strategy with modification approved – (Bio‐Diversity Area) 1. Dumping

a. Bio‐diversity area to the east of the current ex‐pit Area 11.

4.3 Supporting Information Please refer to appendix 1 for plans illustrating the overburden removal, rehabilitation and dumping areas supporting the three stage approach.

Please refer to appendix 2 for detailed overview of non‐compliance issues and associated changes to EA, MOP or other.

Note, Vale has undertaken detailed options analysis in determining its preferred short‐term dumping strategy outlined above in section 4.2. An overview of the options considered is enclosed in appendix 3.

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4.4 Approvals Required for Short Term Dumping Strategy The following is a summary of the approvals that are required for the implementation of the short‐term dumping strategy:

1. Overall maximum dump height approval of 141 AHD to enable shaping to existing dumps and future capping of tailings dams

2. Footprint adjustment to area 9 to enable adequate storage of material to cap tailings dams

Modifications to Project Approvals Integra requests that the Minister modifies its Project Approvals for points 1 and 2 above

4.4.1 Next Steps Also discussed with the Department, Integra is developing a comprehensive modification application which will deal with various other matters such as:

a. NOC operating hours on Sundays and public holidays b. Train refuelling facility near rail loop c. Removal of residences 351 and 401 from the acquisition zone Modifications to MOP Modification to Integra’s existing MOP is also required for 1 and 2 above.

LOM Tailings Emplacement S100 Our initial assessment indicates it is unlikely that the implementation of the short‐term spoil dump strategy will require any changes to the current approval.

Our CHPP Manager will confirm this in the coming weeks (before 27th October) in discussions with Tim Martin (Dept Planning) and a representative of the Dam Safety Committee.

Management Plans As per Schedule 5, condition 4, management plans will be reviewed within 3 months of any modifications to the project approval and revised as necessary.

It is anticipated that minor amendments may be required to the Management Plans for:

 Water

 Noise

 Air Quality

 Waste

 Rehabilitation

 Erosion & Sediment Control Some of these management plans have only been submitted in recent months and have not yet been approved. It would be prudent for Integra to only modify such plans once they are approved or comments received.

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5. Request for Modifications to Extend Time to Meet Existing Conditions Vale submits to DP&I the following modification requests to its Project Approvals under section 75W of the EP&A Act. In particular Vale requests that the Minister modifies the Project Approvals to enable the extension to existing deadlines to address various issues that have arisen and to ensure that Integra continues to operate in accordance with its Planning Approvals. 5.1 Conveyor Deferral 5.1.1 Existing Condition and Deadline Schedule 3, condition 48 of PA0801_01 and PA0801_02 states that:

‘By the end of December 2011, the Proponent shall cease truck haulage of ROM coal from the underground surface facilities to the CHPP, and transport such coal only via overland conveyor, except in an emergency situation with the prior written approval of the Director General.’

5.1.1.1 Vale Request for Extension Vale has undertaken a number of feasibility and options studies regarding conveyor installation and Integra have determined that installation of an overland conveyor between the Underground surface facilities and the Coal Handling Preparation Plant is not economically viable.

Integra seeks to modify the above condition from its Project Approvals (PA0801_01 and PA0801_02) via a Section 75W modification under Part 3A of the EP&A Act. The proposed modification will outline the specifics of the feasibility studies, the noise and dust modeling, and the visual amenity assessments carried out to date. However, Integra will need to continue to haul ROM coal from the underground surface facilities while this modification is being assessed.

In order to enable Integra to prepare this detailed modification application and for it to be assessed, Vale now seeks a separate modification of condition 48 to provide for a short term extension of the time for compliance with the condition. The modification would alter the current deadline of 31 December 2011, to 30 September 2012. This modification would allow sufficient time for the detailed modification application concerning the conveyor to be prepared, assessed and determined and to allow continued, compliant operation of the Underground during this period.

5.2 Biodiversity Offsets 5.2.1 Existing Conditions and Deadlines Schedule 3, conditions 41 to 44 of Project Approvals 08_0101 and 08_0102 state that:

41. ‘The Proponent shall implement the offset strategy summarised in Table 18, described in the open cut and underground project EAs, and shown conceptually in the figure in Appendix 8 to the satisfaction of the Director‐General.’

Table 18: Biodiversity Offset Strategy for the Integra Mine Complex

Offset Areas Minimum Size

Northern Offset Area 121 hectares

Southern Offset Area 39 hectares

Western Offset Area 94 hectares

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Supplementary Offset Area 33 hectares

Bridgman Offset Area 86 hectares

42. ‘By the end of June 2011, unless the Director‐General agrees otherwise, the Proponent shall revise the offset strategy referred to above, in consultation with DECCW, and to the satisfaction of the Director‐General. The revised offset strategy must:

(a) ensure provision of at least 140 hectares of Narrow‐leafed Ironbark‐Spotted Gum‐Forest Red Gum Forest (or a suitable equivalent) to further offset the impact of the open cut project; and

(b) include an additional 6 hectares of Central Hunter Swamp Oak Forest (or a suitable equivalent) to offset the impact of the underground project on the Glendell Biodiversity Offset Area.’

Long Term Security of Offsets 43. ‘By the end of December 2011, the Proponent shall make suitable arrangements to provide appropriate long term security for all the areas in the revised offset strategy to the satisfaction of the Director‐General.’

Biodiversity Management Plan 44. ‘The Proponent shall prepare and implement a Biodiversity Management Plan for the projects to the satisfaction of the Director‐General. This plan must:

(a) be prepared in consultation with DECCW, and submitted to the Director‐General for approval by the end of December 2011.’

5.2.1.1 Request for modifications to provide short term extensions of time As discussed at the meeting with DP&I on 6 October 2011, Vale confirms that it is currently investigating the feasibility of granting, or procuring the feasibility of other owners to grant, restrictive covenants over the land the subject of the biodiversity offsets area. Whist Vale can make a commitment in relation to its own land, subject to the terms to be agreed with the Department and obtaining any mortgagee consents, it obviously cannot commit third party landowners. Vale therefore requests to modify conditions 42 and 43 of its Project Approvals (PA0801_01 and PA0801_02) under section 75W of the EP&A Act to enable the biodiversity offset areas to be secured, as set out below. In addition and as discussed during the meeting on 20 September 2011, recent work carried out by Vale’s long term planning team has identified a significant coal resource located beneath the majority of the previously proposed Biodiversity Offset areas. While no plans currently exist to mine this area, based on the new information at hand, Vale does not wish to immediately take any action that will sterilize the recently identified resource, hence Vale requests approval from the Minister that:

1. the deadlines of 30 June 2011 for submission of a revised offset strategy, and

2. the deadline of 31 December 2011 for ensuring the long term security of the offset areas and submission of the Biodiversity Management Plan, both be extended to 30 September 2012. Thus allowing for:

1. investigations of the feasibility of obtaining restrictive covenants for its current Biodiversity offset areas over land not currently owned by Integra:

2. alternative areas to be identified,

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3. a revised strategy to be formed, and

4. for suitable properties to be purchased for use as offsets.

As outlined above, Vale is seeking this extension by means of a modification to the date for compliance with conditions 42 and 43, in each case to 30 September 2012. Integra has already begun to locate potential alternatives for the current offsets and is confident that proposed deadline of 30 September 2012 can be met.

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6. Communications and Community Engagement Plan 6.1 Introduction The Integra short‐term dump strategy Communications and Community Engagement Plan (CCEP) has been prepared as a project specific sub plan that will be delivered in parallel to the Vale Australia Corporate Affairs and Communications Plan.

The purpose of the plan is to outline a comprehensive communications and community engagement strategy which will inform, update and engage with the community regarding the changes to Vale’s short term dumping strategy at its Integra operations.

It will outline the flow of communication and management of information, providing guidance for strategic communication to preserve and build Vale’s reputation and image in the community.

The plan will be reviewed throughout delivery to ensure that the community is adequately aware and engaged in the current and future planning on the Integra mine.

6.2 Objectives 6.2.1 Integra Mine Objectives The Integra mine‐related objectives are:

 To develop and operate a well‐planned, and managed mine.

 To ensure the mine has a strong compliance and safety record.

 To ensure the mine contributes to the communities that support it.

 To imbue all aspects of the mine’s development and operations with Vale’s values, which include:

► Prioritising life and safety

► Ethics and transparency

► Respect for diversity

► Excellence in performance

► Economic, social and environmental responsibility

► Entrepreneurship

► Proud to ‘be Vale’.

 To help strengthen Vale’s position, working toward a robust future for the benefit of the company and the community it serves. 6.2.2 Communications Objectives The objectives for communications activities relating to the short‐term dump strategy are:

 To positively position Vale within Australia and globally through growing and strengthening Vale’s profile as a coal producer in the region.

 To position Vale as a company committed to community engagement and interaction.

 To demonstrate Vale’s commitment to open, respectful and collaborative engagement with stakeholders including the community.

 To provide regular ongoing communications to Vale’s stakeholders to ensure that stakeholders are kept up to date with Vale’s progress to achieving key milestones in the delivery of the revised short‐term dumping strategy.

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6.2.3 Community Engagement Objectives Community engagement, or public participation as it is often referred to, is defined by the International Association of Public Participation as any process that involves the public in problem solving or decision‐making and uses the public input to make decisions that are more informed. This includes decisions that directly affect the living, working, playing, studying, using services and doing business within the community.

Engaging with the community is more than just consulting. Community engagement includes informing, consulting with, involving, collaborating with and empowering the community. The diagram in Figure 4 shows various levels of community engagement and the amount of influence the community can have regarding final decisions. Different circumstances will require varying levels of engagement but all levels of engagement are equally important.

Please see below in figure 4 an overview of Vale’s community engagement methodology.

Report back to the community with the results of the •Community Consultative engagement Committee •Other community meetings Empower •Direct and regular contact with directly impacted stakeholders

•Community Consultative Collaborate Committee •Other community meetings •Direct and regular contact with directly impacted stakeholders •Website Involve •Community Consultative Committee •Other community meetings •Direct and regular contact with Consult direct ly impacted stakeholders •Communication Strategy •Website Inform •Community Consultative Committee •Other community meetings •Direct and regular contact with directly impacted stakeholders

6.3 Communications Tools and Materials A range of consultation activities and communication tools will be used throughout project delivery.

All public information will be easily accessible, and Integra personnel will be available to respond to queries in a timely way.

This section provides an overview of each activity and tool for use throughout implementation of the CCEP.

On approval to from DP&I to proceed with the proposed short‐term dumping strategy, Vale will undertake the following activities:

6.3.1 Integra Website Posting All details of the short term dumping strategy will be posted on the Integra Website.

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The website will allow stakeholders including the community to access information and contact details regarding the project at any time, and is a way to ensure accurate, up‐to‐date information is available immediately.

6.3.2 Fact Sheet/s Fact sheets will allow Vale to ensure accurate, relevant information is available to be viewed by a wide audience quickly. Fact sheets assist in building project and company awareness amongst the community and interested parties.

A preliminary fact sheet will be developed outlining the short term strategy.

As the project progresses, supplementary fact sheets will be produced to provide updates on the achievement of key milestones.

Fact sheets will be distributed to the community and published on the Vale Integra website.

6.3.3 Letterbox Distribution Fact sheets will be distributed via letterbox drops to households and businesses in neighbouring areas.

6.3.4 Press Advertising Press advertising will be executed in the following papers in the region aimed at raising Vale’s profile in the local community:

 Singleton Argus

 Hunter Valley Town and Country Leader

 Hunter Valley News

 Muswellbrook Chronicle 6.3.5 Integra Community Newsletter The Integra Community Newsletter will incorporate details of the proposed changes to Vale’s short‐term dumping strategy.

It will be a tool used to:

 Outline the short‐term strategy and changes to the existing dumping strategy

 Provide updates on progress and milestones

 Provide relevant contact details for the mine site, including freecall community information line, website and email The Integra Community Newsletter will also be uploaded on the Vale website.

6.3.6 Freecall Community Information Line Vale will utilise its existing freecall community information line to address specific questions and concerns of the community.

The number will be advertised on all project materials, including:

 Website

 Community Newsletters

 Fact Sheets

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6.3.7 Consultation Management System A Consultation Management System (CMS) allows all stakeholder enquiries and feedback to be captured and actioned in a comprehensive and timely manner. CMS acts as a ‘living’ database that records, tracks and manages stakeholder contact with the project team.

Stakeholder and community interactions will be recorded to assists in tracking issues, reporting and evaluation activities.

6.4 Community Engagement Activities Vale recognises effective engagement generates better decision making in delivering sustainable environmental, economic, social and cultural benefits. To achieve Vale’s mission, community engagement is a vital element for more inclusive and sustainable communities.

Community engagement promotes and supports:

 A more active, informed and involved community

 Greater accountability to all stakeholders

 Community direction and input into decision‐making process

 Building trust between Company and community Community engagement can lead to the identification of mechanisms for building the community’s capacity to join with Vale and other stakeholders in dealing with complex matters and issues.

Vale will be working in parallel on two strategies in terms of community engagement.

First, Vale is working to improve and review immediate actions based on the local knowledge and experience.

Second, Vale is putting in place an action plan to develop and implement a medium and long‐term community engagement strategy.

The short term action plan is presented below.

6.4.1 Stakeholder Mapping A key step to enable Vale to comprehensively engage with communities is to undertake a stakeholder map to identify the different groups and organisations in town and develop a system to better engage with them. As a primary guidance for community engagement, Vale will adopt as important stakeholders the groups listed as follows. A better stakeholder map will be completed as part of Vale’s Social and Economic Diagnosis as explained in section 6.4.2.

In a preliminary analysis the major groups identified are:

 Local Clubs

 Local associations

 Non‐government organisations

 Landowners or impacted neighbours

 Indigenous groups

 Local Government

 State Government

 Government agencies

 Employees

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6.4.2 Social and Economic Diagnosis Study The first step for a good engagement process is developing a good understanding of the community where you are operating. To enable this, Vale commissioned the Centre for Social Responsibility in Mining (CSRM) at the University of Queensland to undertake an Integrated Social and Economic Diagnosis for the company’s communities of interest. The methodology adopted for the study is based in a three‐stage approach:

Stage 1: Desktop analysis and review

Stage 2: Consultation with local opinion leaders and knowledge holders in the communities

Stage 3: Consolidation of Stages 1 and 2 and recommendations on Vale social investment opportunities

Stages 1 and 2 have been completed and the University will start Stage 3 in the coming weeks. The purpose of the Social Diagnosis is to identify baseline community information and gap analysis to guide the development of the company management plans for social investment. Even without the outcomes and recommendations from the research it is possible to identify some activities and tools to support engagement. Once the final report is presented, Vale will review and develop a social investment plan.

Therefore, the initial information from Stage 1 and 2 will guide the immediate actions and the final document is part of the long‐term engagement strategic plan.

6.4.3 Community Consultative Committee (“CCC”) Vale’s strategy is not to undertake a ‘town hall’ meeting, however the strategy is instead to participate and join the meetings already in place as explained below.

The CCC meets biannually and involves Local Government, State Government, Community representatives and Integra representatives. The aim of the meeting is to inform the community about Integra activities, discuss issues and community perceptions. Vale will utilise the meeting to not only inform the community but also consult with the community by seeking feedback and actively engaging in community consultation.

Vale’s next CCC meeting will be held in November 2011. Vale’s Integra General Manager will attend the meeting to present the short‐term dumping strategy. Vale will also request the Chairman to invite DP&I to attend this meeting.

6.4.4 Direct and regular contact with directly impacted stakeholders Vale has existing relationships with its neighbours. The company will utilize these relationships to directly inform its neighbours of the short‐term dumping strategy.

Vale’s Integra General Manager will undertake a one‐on‐one meeting programme with these stakeholders.

6.4.5 Key Stakeholder Briefings / Meetings Key stakeholder meetings and briefings will form the basis of one‐on‐one consultation with a wide range of stakeholders, including landholders, industry bodies and government agencies. They will be an essential means of gauging opinion, imparting information, identifying issues and working on and implementing mitigation strategies.

Vale will engage directly with the stakeholder groups outlined in section 6.4.1.

Briefings and meetings will be an important forum in which to:

 Inform about project progress and potential impacts

 Work collaboratively to identify potential issues and suitable mitigation strategies

 Work through regular or ongoing concerns

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 Assist in maintaining open, communicative relationships that are personable and lead to faster resolution of issues and concerns. Each briefing or meeting will be recorded in Vale’s Consultation Management System as outlined in section 6.3.7, with minutes or notes of meetings provided to all parties where possible. While it is envisaged the majority of these meetings will be held at the initiative of Vale, community groups or individuals may also request meetings or briefings, and as such Vale will be prepared to undertake meetings on a reactive basis.

The company aims to be more involved with the different groups to better understand their needs and issues. Vale understands that engagement means not only discussing our impacts and the issues related to the Mine Site, but also discussing anything important to our community. The company will develop a meeting calendar and allocate the best Vale representative to attend these meetings; be it an environmental advisor, a community advisor, a manager or the Integra General Manager.

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7. Vale Integra Website Upgrade Action Plan Vale acknowledges that its existing website is difficult to navigate and therefore makes is unnecessarily difficult for stakeholders to access important information regarding the mine and mine plans.

To address this issue, Vale has committed to developing a new Vale Integra website. In order to achieve this, Vale has:

 Undertaken a full website review

 Executed a third party review process to assess and recommend a more user site map for delivery of information

 Appointed a web design agency to develop a new Vale Integra website

 Undertaken a review of non‐compliance issues on the current website and mapped these to ensure they are addressed on the new website As at 5 October 2011, Vale’s new Integra website was 95% complete and scheduled to ‘go‐live’ on 14 October 2011.

Please refer to appendix 4 for a content site map of the new website.

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8. Appendices The information contained in the attached appendices is Commercial‐in‐Confidence.

 Appendix 1: Short‐term Dumping Strategy – this appendix includes maps and technical details to support Vale’s preferred short‐term dumping strategy outlined in section 4.

 Appendix 2: Resolution of Non‐compliance Issues – this appendix explains in detail the response to the non‐compliance issues and requested changes.

 Appendix 4: Vale Integra Website Content Sitemap – this appendix provides a site map of Integra’s new website

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Appendix 1 – Short‐term Dumping Strategy Plan 1 ‐ Overburden removal ‐ short term strategy.

Plan 2 – Rehabilitation ‐ short term strategy.

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Plan 3 – Stage 1 Dumping ‐ short term strategy.

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Plan 4 – Stage 2 Dumping ‐ short term strategy.

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Plan 5 – Stage 3 Dumping ‐ short term strategy.

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Appendix 2 – Resolution of Non‐compliance Issues The following tables explain in detail the response to the non‐compliance issues and requested changes.

Stage 1 – Short term Strategy no immediate modification required (Sept – Dec) NOC NON COMPLIANCE ANY CHANGES TO EA, ACTION TYPE or ACTION SUGGESTED ACTION ON GOING ISSUE TIMING PRIORITY ASSUMPTIONS/NOTES MOP or Other REQUESTED Overburden Current material Removal of the material The removal is only Can start immediately as Removal already out of from NOC dump site Area down to the 141AHD this material can be used compliance 1 that is above the level as first pass. If for tailings dam 141AHD level minor modification augmentation – ~ 95k to be removed approved further Completed by end 2011 removal will not be necessary Rehabilitation Current available Rehabilitation can start No ongoing issue Can start immediately ‐ final land form rehab Y – MOP areas immediately on Area 2. A Y – Management plans total area of 6.1Ha Dumping Remaining dump Areas 4‐5‐6‐7‐8 have been Space is very limited and Occurring Dump volumes include space available to nominated for dumping calculations have a 20% swell factor 135AHD that comply with current minimal error margins applied EA therefore space Y – Minor EA modification exhausted early Y – MOP December 2011, existing Y – Management plans dump will remain at 141RL requiring minor modification

Stage 2 – Short term Strategy with minor modification accepted by DP&I – (AHD141) NOC NON COMPLIANCE or TIMING ANY CHANGES TO EA, Action type SUGGESTED ACTION ON GOING ISSUE ASSUMPTIONS/NOTES ACTION REQUESTED PRIORITY MOP or Other Rehabilitation After removal of excess Rehabilitation then can No ongoing issue Dependent Y – MOP material from dump begin on Area 3. A on removal Y – Management plans ‐ final land form rehab site above 141AHD total area of 16.5Ha of material in stage 1 Dumping Proposed extension ex‐ Areas 9 is nominated Space is very limited and After Y – Minor EA modification ‐ Temporary dump height to 141AHD pit dump to 141AHD outside of current calculations have minimal modification Y – MOP until material is needed to cap dump footprint error margins therefore approved Y – Management plans tailings dam 1 & 2. Estimated space exhausted during capping 2018 2012 ‐ relocation of the current crib room 141RL & additional footprint area and other minor infrastructure requiring minor relocation modification Dumping Capping of Tailings Area 9, Capping TD3 to Capping the Tailing Dam 3. ‐TD 3 first cap is to the height of the Y – MOP Dam 120AHD Timing for when it is dam walls. Further lift is stage 3 to Y – Management plans needed. 135AHD Dumping 2nd Lift on TD3 to Area 9 lifting TD3 to Capping the Tailing Dam 3. Y – MOP ‐ TD 3 2nd lift is to the height 141AHD 141AHD Timing for when it is Y – Management plans 141AHD needed. This can be used for capping TD1&2

Dumping Inpit dumping Area 10 has no offset Assuming a working space This ‐ Geotechnical high level review Y – MOP between dump and between dump toe and coal progress as conducted and floor preparation side wall to maximise face of 200m For further the pit required before dumping. Further dump space expansion to the north this advances detailed study has been action with material will have to be expected report before end of year rehandled or a barrier pillar The location of access may impact designed the rehabilitation option for in pit dumping

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Stage 3 – Short term Strategy with complex modification accepted – (Bio‐Diversity Area) NON COMPLIANCE ANY CHANGES TO EA, Action type or ACTION SUGGESTED ACTION ON GOING ISSUE TIMING PRIORITY ASSUMPTIONS/NOTES MOP or Other REQUESTED Dumping Extension to ex‐pit Area 11 Extending into the Timing and replacement Y – Complex Dumps ‐ Area 11 current Bio‐Diversity area of Bio‐diversity offset Bio‐diversity area will be modification to EA east. areas replaced Y – MOP Y – Management plans

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Appendix 3 – Options Studied for area and volume potential for ex‐ pit and in‐pit dumping. The following table provides an overview of the options considered by Vale.

CONTROL HEIGHT Option Volume M bcm COMMENT & POSITION Stage 1 Dumping 135AHD 1.05 Stage 1

Stage 2 Dumping Out of Pit 135AHD 1.7 (includes stg 1) Stage 2 Dumping Out of Pit 141AHD 3.0 (Includes stg 1) Stage 2 Too much rehandle to return Stage 2 Dumping Out of Pit 145AHD 3.5 (Includes stg1) to 135AHD Tailings Dam Stage 2 Dumping Out of Pit 1.2 Stage 2 capping to 125AHD 2.8 Stage 2 Dumping In Pit 30m offset 102AHD

Stage 2 Dumping In Pit 30m offset 115AHD 3.16 0m offset 90AHD Stage 2 Dumping In Pit 3.39 (SCR) Stage 2 Dumping In Pit 0m offset 95AHD 5.79 Stage 2 2nd lift Tailings Dam Stage 2 Dumping Out of Pit 2.3 Stage 2 to 141AHD Stage 3 Stage 3 Dumping Out of Pit Bio‐Diversity Area 3.2 AHD135 and final land form

Summarised Options for Total Dump Space for Short Term Strategy – Stages 2&3 Volume Stages Option Utilising the Pit Floor Space Available end of 2012 M bcm Nominated In pit with offset and Area 9 to 141AHD 6.39 In pit with offset and Area 9 to 145AHD 6.89 In pit without offset Area 9 to 141AHD 9.99 Stage 2 In pit without offset Area 9 to 145AHD 10.49 In pit without offset Area 9 to 141AHD+ Area 11 (BioDiv) 15.49 Stage 3

Dump Study Staging Detail The following table provides a detailed overview of dumping volumes and timing for the duration of the short‐ term dumping strategy.

2012 Ex‐pit In‐pit Year Budget OB Main dumps utilised: Dump Dump movement 2011 0.9 0.9 Stage 1 2012 4.5 2.5 2.0 Stage 2 (141AHD;inpit ‐ 102AHD) 2013 5.2 0.8 4.4 Stage 2 (141AHD; inpit ‐ 115AHD; TD3 ‐ 125AHD) 2014 5.7 5.7 Stage 2 (inpit ‐ 135AHD) & 200m pit advance Q1 2015 1.0 1.0 Stage 2 (inpit ‐ 135AHD) & 200m pit advance 2015 rem est 4.8 2.3 avail dump space: 2.9 (inpit ‐ 135AHD & 300m advance)

Nb. Volumes provided in the above table are M bcm.

The assumptions used to develop the above information are as follows:

 The progression of the in‐pit dumping is based on 2012 Budget sequence for NOC ‐ if this sequences changes this will impact dumping sequence

 Post 2013 there is a high reliance on in‐pit dumping that is very schedule‐dependent ‐ this is a risk to pit development

 2015 volume is estimated from LOM graphs

 All volumes assume 20% swell

 200m advancing face offset assumed in which access is generated. If access is required in the dump areas ‐ volumes will be reduced. The location of access may impact the rehabilitation option for in pit dumping

 200m advancing face offset is slightly reduced in Q1 2015 due to additional in‐pit dump volume required throughout Q1

 All dumps are designed at angle of repose, however crests are designed at final rehabilitation location.

 In‐pit dumping is reliant of floor preparation, as outlined in geotechnical recommendations

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Appendix 4 – Vale Integra Website Content Site Map This appendix contains:

 Detailed site map outlining the content structure of the new Vale Integra website

EMGA MitchellMcLennan

Planning + Environment + Acoustics

SYDNEY NEWCASTLE Ground floor, Suite 01, 20 Chandos Street Level 1, 6 Bolton Street St Leonards, New South Wales, 2065 Newcastle, New South Wales, 2300 T 02 9493 9500 F 02 9493 9599 T 02 4927 0506 F 02 4926 1312 Pea