Australian Hualong Limited TENTH LEGION IRON ORE MINE Environmental Impact Statement DRAFT 1 FOR EPA REVIEW Existing Comstock site – view from north J O H N M I E D E C K E & P A R T N E R S P L • June 2 0 2 1 AHL Tenth Legion Iron Ore Mine Draft EIS For EPA Review 12 June 2021 Vs 1 John Miedecke and Partners Pty Ltd 41 Tasma St North Hobart Tasmania 7000 0418130672 [email protected] AHL TENTH LEGION IRON ORE MINE EIS – DRAFT EXECUTIVE SUMMARY Introduction The Tenth Legion Iron Ore Mine (the mine or the Project) is located west of Zeehan in north-western Tasmania and is owned by Australian Hualong Limited (AHL) (Figure 1). AHL are completing a development application (DA) to the West Coast Council for a permit to operate the mine. FIGURE 1 LOCATION Project Description The proposed mining and processing operation is a simple one and similar in operation to a large quarry or other small/medium size iron ore mines in Tasmania. The Tenth Legion magnetite deposit is located approximately 2.5 km NW of the existing Comstock mine and processing plant site. It is a skarn iron ore deposit that is amenable to a small open pit mining, with other nearby deposits also possible for mining in the future. The project will involve two open pits to recover a direct shipping ore (DSO), oxide and fresh iron ore at a mining rate which will recover approximately 3.5 Mt of ore over a five year period producing about 3 Mt of product. The smaller of the two pits (North West Pit) will be mined early in the mine life and used as a repository for the Potential Acid Forming (PAF) waste rock generated from mining operations in the Main Pit, which is estimated at <3% of the total waste rock volume. Ore will be carted from the Open Pits via a new Haul Road to the Comstock site where a processing plant will be constructed on the disturbed existing site. The existing tailings dam at Comstock will be enlarged to accommodate disposal of tailings generated by the processing of the Tenth Legion ore. The project will also have associated haul roads, topsoil stockpiles, low grade ore stockpiles and a permanent waste rock dump. Figure 2 shows the general arrangement. Substantial quantities of non-acid forming overburden (NAF waste rock) will also be transported to the Comstock site for use in remediation of historic acid drainage sources, including Allisons Pit and the Swansea WRD. The material will also be used NW Pit Main Pit TENTH LEGION MINE AREA Waste Rock Dump Haul Road Opt 1 Road Truck Route Low Grade Stockpile Haul Road Opt 2 Water Pipeline Haul Road Crossing Plant Site COMSTOCK PLANT SITE AREA Tailings Dam AHL Tenth Legion Iron Ore Mine General Arrangement Preliminary subject to detail survey and design JOHN MIEDECKE AND PARTNERS PTY LTD F IG. 2 Road Crossing AHL TENTH LEGION IRON ORE MINE EIS – DRAFT to expand the existing tailings dam. The remainder of the NAF waste will be stored in a purpose built WRD that will minimise the ingress of air and water. The mining activities will be similar to other mining operations in Tasmania and will involve the following: • Timber harvesting and recovery of merchantable timber over areas required to be cleared for mining operations; • Clearing of remaining vegetation and salvage and stockpiling of topsoils; • Construction of two open pits; • Construction of haul road from pits to the Comstock site; • Mining of waste rock and ore from open pits by drilling and blasting; • Waste rock and ore removal using large excavator(s); • Open pit dewatering and discharge of waters to local catchments (Dent Creek); • Construction of a waste rock dump (WRD) containing only non acid forming waste rock; and • Transport of ore over the haul road to a new Comstock Plant. At the existing Comstock site a processing plant will be built to recover magnetite ore. This will be both a dry and wet process. The oxidised and fresh ores will be crushed, screened, and put through two dry magnetic separation streams, separating an ore product from the reject material. After additional crushing the enriched gravels from the re- processed ore rejects and the Low Grade Ore will report to a wet magnetic separation process that produces a dried iron-rich product and a wet tailings. An important environmental advantage of the process is that no chemicals are used in the processing of the ore and all waste products are thus chemical free and consist of geochemically benign rock or slurry. All PAF waste generated in the mill will be stored in the NW Pit along with the other PAF waste. The product will be carted to the Port of Burnie by road and/or rail using the existing road network which is in good condition and suitable for heavy freight transport. Environmental Effects The proposed iron ore mine at Tenth Legion will result in direct physical impacts on the existing environment within the project footprint. This area will total approximately 33 ha of natural vegetation that will be disturbed progressively over the approximately 5 years of the mine life with soils stockpiled. On closure, the NW pit will be infilled, revegetated and contoured to blend with the surrounding landscape. The natural water table in the pit will inundate the potentially acid forming (PAF) waste rock, providing a long-term secure disposal site. The Main pit will be developed into a pit lake with inflows /outflows to/from Piney Creek. The upper benches and all other disturbed areas in the pit that remain above the water level of the lake will be topsoiled and revegetated with natural species. The waste rock dump and all disturbed areas will be revegetated, and contoured such that the mine site will be left as a recreational area for the community (Figure 3). During operations water quality impacts at Tenth Legion will be minimized by diverting clean water away from workings, constructing a WRD that limits the ingress of air and water, and collecting and settling site runoff before discharging to Dent Creek. Dent Creek AHL TENTH LEGION IRON ORE MINE EIS – DRAFT is a tributary of Comstock Creek which is already impacted by historic mining operations. If the quality of water is insufficient for direct discharge, it will be piped to the Comstock Area ha WRD 14 LG stock 5.5 Main Pit 4.2 NW Pit 1.8 Road 1 FIGURE 2 TENTH LEGION MINE CLOSURE PLAN site for treatment in the existing TSF. Development of Tenth Legion will provide the opportunity to cap the existing sources of acid drainage input to the Dent catchment. Conclusions This EIS has been developed in accordance with the EPA generic guidelines and the site- specific guidelines from the Board of the Tasmanian Environment Protection Authority The EIS has identified and assessed the potential impacts associated with the proposed project, environmental management measures and identfied residual environmental impacts. The specific commitments contained in the EIS demonstrate that appropriate operational and management systems and measures will be implemented to minimise any potential impacts and to minimise any risks to the environment and human health. With these measures in place, the risk of significant residual environmental impacts is low. The EIS demonstrates that the proposal will be compliant with Tasmanian policies, legislation and regulations. The Project will provide significant economic and social benefits at the local and regional scale. With the avoidance and mitigation measures proposed, the potential environmental risks posed by the project are low. TABLE OF CONTENTS 1.0 INTRODUCTION...............................................................................................1 1.1 Background.......................................................................................................1 1.2 Proposal ............................................................................................................2 1.2 Proponent – Australian Hualong Limited (AHL).............................................3 1.3 Purpose of EIS..................................................................................................3 1.4 Environmental Legislation and Approvals.......................................................4 1.5 Comstock mine site ..........................................................................................5 2.0 PROJECT DESCRIPTION ..................................................................................6 2.1 Background.......................................................................................................6 2.1.1 Mining Lease Application and History .....................................................6 2.1.2 Comstock Mining History .......................................................................7 2.1.3 General Project Area .................................................................................8 2.2 Project Overview ..............................................................................................9 2.3 Geology and Resource......................................................................................9 2.4 Mining – Tenth Legion...................................................................................12 2.4.1 Description...............................................................................................12 2.4.2 Site preparation (Construction) ...............................................................13 2.4.3 Open Pits..................................................................................................13 2.4.4 Waste Rock and Ore Mining Process......................................................16