Minerals and Extractive Newsletter

Issue 11, October 2009 DPI Earth Resource Industry Information Days

DPI visited five parts of the State over recent weeks to create feedback opportunities for mining and extractive industries to obtain information and ask questions. Information days held at Benalla, , , and were attended by • In the afternoon, presentations on around 200 people. changes to extractives legislation, community engagement and the new The days comprised three sessions: Code of Practice for Small Quarries were followed by questions and • A range of issues were raised, answers. sometimes vigorously, during the morning workshop to obtain feedback DPI was very pleased with the level of on the Mineral Resources (Sustainable interest shown by industry as demonstrated Development) Act 1990 . Issues by the number attending and the level raised will be summarised and placed of participation in the information on www.dpi.vic.gov.au for your sessions. Feedback from attendees about information. the information days is overwhelmingly supportive and will encourage us to hold • Over lunch, attendees browsed future similar events. through brochures on native vegetation, groundwater, work plans, community engagement; talked to Government representatives from DPI and DSE; and engaged with the demonstration of the rehabilitation bond calculator.

Strzelecki Awards Success

Earth resources operators Austral Bricks, for Energy and Resources, The Hon Iluka Resources and Imerys Minerals Peter Batchelor on 17 August at the 2009 have been recognised for their Resources Victoria Conference. commitment to sustainable development • Winner - Large Earth Resource through the 2009 Strzelecki Awards. Operation Category - Austral Bricks/ The awards are designed to recognise and Golder Associates for its Scoresby encourage the sustainable development Quarry rehabilitation project; of Victoria’s Earth Resource Industries • Commendation - Large Earth Resource are named in honour of the famous Operation Category - Iluka Resources Polish explorer and mineralogist Sir Pawel for the sustainable operation of its Edmund de Strzelecki. Sir Pawel Edmund Douglas Mine; travelled extensively through south- east in the 1830s and strongly • Winner - Medium Sized Earth Resource advocated the rational use of resources, Operation Category - Imerys Minerals while protecting the environment. Australia for its water recycling The awards were announced by Minister scheme at its Pittong Mine, and its

2 Strzelecki Awards Success continued

provision of accommodation to users of the Ballarat to Skipton rail trail;

• Winner - Exploration Projects Category - Iluka Resources for its environmentally-sustainable exploration works in Little Youngs Timber Reserve. Cameron McCormick-Austral Bricks, Chris Brynant-Austral No award was made in the Small Earth Bricks, Michael Gerner-Golder Associates, David Kidd- Resource Category. Minister Batchelor, Iluka, David Sleigh-Iluka, Colin Bullen-Imerys Minerals thanked the small operators who Australia, The Hon. Peter Batchelor, MP submitted entries and encouraged them made recommendations to DPI. These to continue on their sustainability journey. recommendations are further reviewed by The Department of Primary Industries (DPI) DPI to determine the winners. and Banksia Environmental Foundation jointly administer Strzelecki Awards. Banksia appointed the judging panel that

Organisational Changes with DPI

Following a detailed review of the structure previously been in the position of Executive and organisation of the Energy, Earth Director Earth Resources Division. Resources and Major Projects Group within Former Deputy Secretary EERMP, Dale DPI, the Group will be renamed Energy and Seymour has taken up an appointment with Earth Resources Group (EER) effective from the Department of Innovation, Industry and 14th September 2009. Regional Development (DIIRD). The changes to the Energy and Earth EER will comprise four divisions: Resources Group will enable DPI to build on its considerable achievements • Energy Sector Development, with by providing a stronger focus and new Marianne Lourey continuing as capabilities to meet the challenges ahead, Executive Director; which are growing rapidly under climate change policy. • Earth Resources, with Doug Sceney as Acting Executive Director; The new Group is also designed to help meet the unprecedented innovation and • Energy Technology Innovation, with Dr investment task facing Victoria. The task Peter Redlich continuing as Director. of transforming Victoria’s energy sector is The new Energy Resources Development driven by the Commonwealth’s expanded Division has been created: Renewable Energy Target and planned Carbon Pollution Reduction Scheme. • to coordinate and drive new energy resources developments; Richard Aldous is now appointed the Deputy Secretary, Energy and Earth • to provide a stronger focus on the Resources. Richard was acting Deputy challenges and opportunities for Secretary since January 2009, having investment in Victoria’s world-class

3 Organisational Changes with DPI continued

brown coal, petroleum and carbon Victoria’s earth resource industries through capture and storage (CCS) resources, world class geoscience information remains and the prospects for geothermal a key goal for the Earth Resources Division. energy. To further support this objective, the Earth The responsibilities of the new division will Resources Policy and Legislation unit will include the management and oversight of transfer to the Earth Resources Division Clean Coal Victoria, the coordination of CCS from the Energy Sector Development activities across EER, facilitation of approvals Division. This shift is aimed at improving for energy resources developments, and the the integration and development of earth marketing and promotion of new investment resources policy advice and the generation opportunities across the state. of legislation and regulations.

Effective regulation and development of Review of Aspects of Geotechnical Management at Mines and Quarries

In the period September 2008 to May 2009 However, the reviews did identify a the DPI undertook a program of reviews number of significant issues that required of geotechnical management at significant management actions. mines around the State. The primary Several issues were identified where mine objectives of the reviews were to assess or quarry excavations and infrastructure the management of site stability and were adjacent to public roadways or were geotechnical issues for all key elements of developed close to residential areas. Issues the operations, in order to: also arose where mining developments 1. Identify any significant or major underlay public infrastructure or housing issues likely to impact on or affect the developments. environment surrounding the mine or The main recommendations arising from quarry. the reviews included: 2. Assess potential for any impacts on Review of surface water management. public infrastructure. Ongoing monitoring to identify and deal 3. Assess any potential for impacts on with open cracks or joints in benches and public safety. evaluation of the monitoring data. The review team comprised a Geotechnical Positive outcomes of the reviews identified Engineer, Mr Tim Sullivan; a mining were: engineer and an audit specialist. • The majority of sites assessed The review’s overall conclusion was that had adequate resources and good mine and quarry developments in Victoria management plans in place to have limited potential to impact on public maintain the geotechnical stability of infrastructure. Public safety is generally the sites. well managed. The potential for impact on the environment surrounding the sites was • Potential risk areas had generally identified as an ongoing concern. been identified and appropriate actions were either completed or The review did not identify any imminent in progress. It is considered this geotechnical stability issues or concerns important aspect was being well with impacts likely to extend significantly managed. outside the mines or quarries themselves. 4 Site Security and Buffer Zone Audits 2009

Introduction

During the second quarter of 2009, DPI inspected a total of 89 mine and quarry sites across Victoria to ensure compliance with site security and buffer zone requirements.

The locations of the audited sites are shown in the following map:

The audit comprised four main components: Each area of assessment was assigned one of three scores: • identification of tenement boundaries; • meets or exceeds requirements; • signage; • opportunity to improve; or • fencing; and • significant opportunity to improve • buffer zones. The Earth Resources Regulation Branch’s role is to ensure compliance with legislation and regulations and to encourage performance beyond compliance through self-regulation.

5 Site Security and Buffer Zone Audits 2009 continued

Graph 1: Overall compliance outcomes

reassessment required

7% significant opportunity to improve

20%

meets or exceeds requirements reassessment required 40% opportunity to improve meets or exceeds requirements 33%

opportunity to improve

significant opportunity to improve

The inspection of sites revealed some notable issues

It was identified that only 40% of the 24 • Required extraction limit posts were elements audited were found to meet or not in place (59%); and exceed requirements. The audits identified • Sites were generally poorly signed and tenement boundary post and extraction required improvement (60%). limit posts for Work Authorities as the category most in need of improvement; Approximately half the sites audited fully with only 40% meeting their requirements. complied with fencing requirements. Unauthorised access gates in perimeter In relation to Work Authorities, the primary fencing were an issue for some tenements. issues identified were:

• Tenement number not clearly displayed on post (58%);

• Inadequate number of post or posts not clearly visible or identifiable (62%);

6 Site Security and Buffer Zone Audits 2009 continued

Graph 2: Site security and Buffer Zone analysis

60

no rating given Site Security and Buffer Zones Analysis meets or exceeds requirements opportunity to improve 50 significant opportunity to improve

40

30 Percentage Compliance 20

10

0 Posts Signage Fencing Buffer Zone Component Assessed

Overall, 14 tenement holders were required to submit work plan variations to rectify identified deficiencies or to apply for a modification of conditions. A number of notices and directions were also issued by the inspectors and will be followed up to ensure compliance.

The targeted audit identified that more work is required to ensure the ‘critical controls’ targeted by the audit are in place and working effectively.

7 Impacts of Blasting

The next targeted audit program DPI intends to undertake will focus on the impacts of blasting at mine and quarry sites. The audit is scheduled to be carried out during September to November 2009.

Blasting is necessary for the recovery of ore or stone in many quarries, open cut mines and at most underground mines. at assessing site control programs and However, blasting can cause noise and compliance with work plan conditions. vibration, which impacts neighbouring premises. Good management practices and plans are considered important. By developing Good management and proper control a plan operators find out important of blasting practices is about ensuring information that increases the chances the community is protected from adverse of success. A Noise and Vibration effects particularly in respect to the limits Management Plan acts as a guide that on blasting impacts at residential premises contractors and staff must be made aware and other “Sensitive Sites”. of and adhere to in accordance with a Ground vibration and airblast limit site’s conditions of approval. recommendations have been set to Noise mitigation relies on cooperation minimise annoyance to people as a result from staff and contractors in relation to of blasting at mine and quarry sites. timing of works, reporting of complaints An audit tool has been developed for the and implementing best practices to project that will focus on management minimise noise and vibration. plans and systems at sites and is aimed

Earth Resources Regulation Branch Conducts Environmental Training

In May 2009 the Earth Resources Return and Monitoring and Reporting, Regulation Branch participated in Standards, Guidelines and Laws. Environmental Management Training run The course built on the existing knowledge by the Australian Centre for Minerals of the inspectors, and allowed them to Extension and Research (ACMER). explore some issues particularly regarding The four day course included sessions by the current regulatory framework and government organisations such as DSE and interactions with other agencies. EPA, as well as other Divisions of DPI, on ACMER has expressed interest in running their areas of interest in the regulation of a similar course for industry in the the mining and extractive industries. future, if they received sufficient interest. The course also included sessions on; Attending the course will enable industry Water Management, Noise Emissions and to better understand the environmental Blast Management, Emissions Management regulation of mining and extractive sites, and Monitoring, Land Management, as well as providing an overview of the Landform Design, Native Vegetation environmental issues typical of such sites. Framework, Monitoring Flora and Fauna, Issues associated with Mine Closure, Bond 8 Relocation Notification

The Department of Primary Industries Traralgon-based Earth Resources Regulation Branch staff and the newly formed Clean Coal Victoria team have relocated to:

Clean Coal Victoria Office, 55 Grey Street, Traralgon Vic 3844 - Fax 03 5160 9055

The new contact details for staff are: Clean Coal Victoria

Earth Resources Regulation Branch - Traraglon Operations Charlie Speirs – Director, Clean Coal Victoria Anne Bignell – Manager, Minerals and Extractive Operations Tele: 03 5160 9001

Tele: 03 5160 9011 Tegan Doherty – Business Services Officer

Tele: 03 5160 9000 Neil Allen – Senior Inspector of Mines Alexander Szapiel – Mining Planning Engineer Tele: 03 5160 9012 Tele: 03 5160 9003

Melbourne Office – 55 Collins Street, Melbourne Bob Duncan – Inspector of Mines 3000 Tele: 03 5160 9014 Christopher Osborne - Geologist - Clean Coal Victoria Mark Pratt - Senior Hydrogeologist Tele: 03 9658 4518 Tele: 03 5160 9012 Rachael Roberts – Data Logger

Tele: 03 9658 4526 Earth Resources Regulation Branch – Tenements

Zuzanna Lelito – Native Title Co-ordinator Please direct all future regional correspondence to the Traralgon address. Tele: 03 5160 9013

Joanne Wood – Tenements Officer

Tele: 03 5160 9015

9 Changes to Minerals and Extractive Regulations

Amendments to Mining Industry Regulations what constitutes a ‘reportable event’ will be contained in the amended minerals The existing mining industry regulations, and new extractive industries regulations the Mineral Resources Development referred to above. Regulations 2002, will be amended to implement aspects of the Government’s Initial reports must be made to DPI as response to the Yallourn Batter Failure. soon as practicable after the event occurs, and a more detailed written report may New Regulations for Victoria’s Extractive be required at a later date. DPI must be Industries advised of the details of the event, the The current Extractive Industries cause of the event, the steps taken to Development Regulations 2007 will minimise the impact of the event and ‘sunset’ or expire in May 2010. New details of actions taken or proposed to be regulations, the Mineral Resources taken to prevent a recurrence of the event. (Extractive Industries) Regulations 2010, Reporting Requirements for declared mines are currently being developed to coincide and quarries with the regulation of extractive industries under an amended Mineral Resources Mine and quarries which are found to (Sustainable Development) Act 1990. be a significant risk to public safety, the environment or infrastructure will A Regulatory Impact Statement for each be able to be declared by the Minister. of the above sets of Regulations will be Declared mines will initially be the three prepared and is expected to be released, Latrobe Valley coal mines. No quarries along with a draft of relevant regulations are proposed to be declared at this time. in early October 2009. There will be a 28 Other mines or quarries could be declared day public consultation period, during in the future if there are geotechnical or which written submissions may be made hydrogeological factors within the mine or to DPI. quarry that pose a significant risk to public The Regulatory Impact Statement and safety, the environment or infrastructure. draft Regulations will be available at the Declared mines or quarries will be subject following websites: www.dpi.vic.gov.au to additional risk management obligations New Reporting Requirements for Minerals and and reporting requirements in order Extractive Industries to manage identified geotechnical and hydrogeological risks. Declared mines The new regulations will include some or quarries will be required to provide new reporting requirements for all mines six monthly reports to DPI about mine or and quarries with additional reporting quarry stability. requirements for ‘declared mines or quarries’. The reporting requirements are Declared mines or quarries will also be being introduced to manage significant required to include a stability plan as part risks to public safety, infrastructure and of their work plan, in order to manage the environment and are part of the and monitor identified geotechnical and Government Response to the Yallourn hydrogeological risks. Batter Failure.

Reporting requirements for all mines and quarries

All mines and quarries will be required to advise DPI about any reportable events that occur at their worksites. Details of

10 Royalty Audit Program

During the period April to June 2009, The desktop audits involved assessment of Noel Dunn (Senior Mines Inspector) and the accuracy of calculations in the annual Steve Butler (Mines Inspector) conducted returns received by the Department. a Royalty Audit Program in the South West Following the desktop audits, site visits of Victoria. were conducted. These involved an A total of 14 sites were assessed for inspection of the selected sites to assess if royalty compliance. the reported material extracted apeared to be accurate. The program reviewed returns and royalties paid by the selected tenements The 2008/9 Royalty Audit Program for the previous five years 2003/4 – identified significant compliance with the 2007/8. This involved desktop audits and royalty provisions of relevant legislation. site visits. Non compliance related to overdue Return and Royalty documents.

DPI Contacts

John Mitas Colin Thornton

Acting Director, Earth Resources Acting Manager, Minerals and Extractive Regulation Operations

Tele: 0418 506 172 Tele: 0409 541 160

[email protected] [email protected]

Vickey Dods

Acting Manager, Minerals and Petroleum If you have any comments regarding this Tenements publicaton, please email your comments to: [email protected] Tele: 03 5430 4695

[email protected]

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Published by: Authorised by: Disclaimer - This publication may Department of Primary Industries, Victorian Government, be of assistance to you but the State 1 Spring Street, Victoria 3000, 1 Spring Street, Melbourne, Victoria of Victoria and its employees do Australia, October 2009. 3000, Australia not guarantee that the publication is without flaw of any kind or is © The State of Victoria, 2009. ISSN 1836-7046 (Print) wholly appropriate for your particular This publication is copyright. purposes and therefore disclaims all ISSN 1836-7054 (Online) No part may be reproduced by any liability for any error, loss or other process except in accordance with the consequence which may arise from provisions of the Copyright Act 1968. you relying on any information in this publication.