Cobar Management Pty Ltd the CSA Mine Annual Environmental Management Report 2018

COBAR MANAGEMENT PTY LTD

The CSA Mine

Annual Environmental Management Report

AEMR 2018

Cobar Management Pty Ltd The CSA Mine Annual Environmental Management Report 2018

Name of Mine CSA Mine Mining Leases CML 5, MPL1093, MP1094

MOP Commencement Date: 01/01/2018 MOP Completion Date: September 2019

AEMR Commencement Date: 01/01/2018 AEMR End Date: 31/12/2018

Name of Leaseholder: Isokind Pty Ltd Name of Mine Operator: Cobar Management Pty Ltd

Reporting Officer: Huw Rabone Title: Environmental Superintendent

Signature: Date: 29/03/2019

Cobar Management Pty Ltd ABN: 38 083 171 546 PO Box 31, Cobar, NSW 2835 Tel: (02) 6836 5100 Fax: (02) 6836 2146

1. I NTRODUCTION ...... 1 1.1. History of Operations ...... 1 1.2. Consents, Leases and Licenses ...... 1 1.3. Mine Contacts ...... 4 1.4. Actions Required from the 2017 AEMR Review ...... 5 2. SUMMARY OF OPERATIONS DURING THE REPORTING PERIOD...... 6 2.1. Exploration ...... 6 2.2. Land Preparation ...... 7 2.3. Construction ...... 7 2.4. Mining ...... 8 2.4.1. Underground Resource Status ...... 9 2.4.2. Estimated Mine Life ...... 9 2.4.3. Mining Equipment ...... 10 2.4.4. Mining Method ...... 11 2.4.5. Mine Development ...... 11 2.4.6. Mine Production ...... 11 2.4.7. Backfilling and Tailings ...... 13 2.5. Mineral Processing ...... 14 2.5.1. Metallurgy ...... 15 2.6. Waste Management ...... 17 2.6.1. General Waste ...... 18 2.6.2. Recycling ...... 18 2.6.3. Industrial Waste ...... 19 2.6.4. Underground Waste Rock ...... 20 2.7. Ore and Product Stockpiles ...... 20 2.7.1. Ore Stockpiles ...... 20 2.7.2. Product Stockpiles ...... 20 2.8. Water Management ...... 21 2.8.1. Raw Water Supply ...... 21 2.8.2. Groundwater Sources ...... 23 2.8.3. Water Balance ...... 24 2.9. Hazardous Materials Management ...... 24 2.10. Other Infrastructure Management ...... 25 3. ENVIRONMENTAL MANAGEMENT AND PERFORMANCE ...... 25 3.1. Meteorological Monitoring ...... 25 3.2. Air Pollution ...... 27 3.3. Erosion and Sediment ...... 32 3.4. Surface Water Monitoring ...... 34 3.5. Ground Water Monitoring ...... 41 3.6. Contaminated Land ...... 47 3.7. Threatened Flora ...... 48 3.8. Threatened Fauna ...... 49 3.9. Weeds ...... 50 3.10. Blasting ...... 51 3.11. Operational Noise ...... 51 3.12. Visual, Stray Light ...... 51 3.13. Aboriginal Heritage ...... 52 3.14. Natural Heritage ...... 52 3.14.1. Mining Quarters ...... 52 3.14.2. “Eloura” ...... 53 3.14.3. The CSA Mine Power House ...... 53

3.15. Spontaneous Combustion ...... 53 3.16. Bushfire ...... 53 3.17. Mine Subsidence ...... 54 3.18. Hydrocarbon Contamination ...... 55 3.19. Methane Drainage/Ventilation ...... 55 3.20. Public Safety ...... 56 3.21. Other Issues and Risks...... 56 4. COMMUNITY RELATIONS ...... 56 4.1. Environmental Complaints ...... 57 4.2. Community Liaison ...... 57 4.2.1. Clean Up Australia Day ...... 57 4.2.2. Community Contributions ...... 57 5. REHABILITATION...... 58 5.1. Buildings ...... 59 5.2. Rehabilitation of Disturbed Land ...... 59 5.2.1. Little Mount Brown and Over Subsidence ...... 60 5.2.2. Mill Rehabilitation ...... 60 5.2.3. South Tailing Storage Facility (STSF) ...... 61 5.2.4. Big Mount Brown ...... 62 5.3. Other Infrastructure ...... 64 5.4. Rehabilitation Trials and Research ...... 64 5.5. Further Development of the Final Rehabilitation Plan ...... 72 6. ACTIVITIES PROPOSED IN THE NEXT AEMR PERIOD ...... 72 7. REFERENCES ...... 73

Figure 1 - Organisational Chart...... 4 Figure 2- Pink Panther Exhibiting Gravity Survey Points (black dots) Across the Prospect...... 7 Figure 3 - Cobar MO & CSA Mine Rainfall Monitoring 2018...... 25 Figure 4 - Cobar MO Wind Run Monitoring 2018...... 26 Figure 5 - Cobar Wind Speed and Direction Rose (Long Term Average)...... 27 Figure 6 - Dust Deposition Monitoring Network ...... 29 Figure 7 - Dust Deposition Data for the 2018 Monitoring Period...... 31 Figure 8 - Site Catchments as per 2017 Golder Drainage Report...... 33 Figure 9 - CSA Mine Surface Water Sampling Locations...... 36 Figure 10 - 2018 Surface Water pH Sampling Results...... 38 Figure 11 - 2018 Surface Water EC Sampling Results...... 38 Figure 12 - 2018 Surface Water Copper Sampling Results...... 39 Figure 13 - 2018 Surface Water Iron Sampling Results ...... 39 Figure 14 - 2018 Surface Water Lead Sampling Results...... 40 Figure 15 - 2018 Surface Water Sulphate Sampling Results...... 40 Figure 16 - 2018 Surface Water Zinc Sampling Results...... 41 Figure 17 - Cross Section of STSF Piezometer Setup...... 42 Figure 18 - Groundwater Monitoring Network...... 45 Figure 19 - Established Ground Water Bores and Exploration Prospects...... 46 Figure 20 - Current Rehabilitation Areas...... 63 Figure 21 - Rehabilitation Reference Sites...... 65

Table 1 - Mining Leases (as of 31/12/18)...... 2 Table 2 - Land Tenure (as of 31/12/18)...... 2 Table 3 - Licenses and Permits (as of 31/12/2018)...... 3

Table 4 - Management and Environmental Contacts...... 5 Table 5 - Update on the Proposed Activities for the 2018 AEMR Period...... 5 Table 6 - 2018 Construction Summary...... 7 Table 7 - Actual and Forecast Production (dmt) (as of 31/12/2018) ...... 9 Table 8 - Mining Equipment List as of 2018...... 10 Table 9 - Budget vs Actual Mine Production 2018...... 12 Table 10 - Backfill Production and Final Tailings 2018...... 14 Table 11 - 2018 Ore Processing Production Summary...... 14 Table 12 - Metal Recovery 2018...... 16 Table 13 - Reagent Consumption 2018...... 17 Table 14 - Annual Waste Summary...... 18 Table 15 - General Waste Collection Volumes...... 18 Table 16 - Recycling Collection Volumes...... 19 Table 17 - Copper Concentrate Stored on Site 2018...... 20 Table 18 - Cumulative Waste and Material Production...... 21 Table 19 - 2018 Raw Water Supply...... 22 Table 20 – Stored Water...... 22 Table 21 - CMPL Mine Water Access Licenses...... 23 Table 22 - Water Balance Output...... 24 Table 23 - Tabulated Dust Deposition Data for the 2018 Period...... 30 Table 24 - Adopted Surface Water Quality Guidelines...... 34 Table 25 - Surface Water Sampling Locations...... 34 Table 26 - Surface Water Monitoring Results 2018...... 37 Table 27 - STSF Piezometer locations on embankment walls or ground level...... 42 Table 28 - 2018 Piezometer Monitoring Results...... 43 Table 29 - 2018 Community Donations...... 58 Table 30 - Rehabilitation Summary...... 59 Table 31 - LFA Results 2018...... 66 Table 32 - Proposed Activities for 2019...... 72

APPENDICES

Appendix A – Environmental Protection Licence Appendix B – Environment and Community Policy Appendix C – Surface Water Management Plan Appendix D – Pollution Incident Response Management Plan 3 Appendix E – 2018 CSA Rehabilitation Monitoring Report

ABBREVIATIONS

Australia and New Zealand Conservation ANZECC LFA Landform Function Analysis Council CHF Cemented Hydraulic Fill Mt Mega Tonne CSA MINE Cobar Mining Pty Ltd m Metre CML Consolidated Mining Lease mm Millimetre Cu Copper MOP Mining Operations Plan National Association of Testing CSA Cornish, Scottish, Australian Mine NATA Authorities DSC Dam Safety Committee NTSF North Tailings Storage Facility Department of Planning and DPE OEH Office of Environment and Heritage Environment DMP Derelict Mines Program PET Polyethylene Terephthalate dmt Dry Metric Tonnes PAF Potentially Acid Forming Rehabilitation and Environment ESAP Energy Savings Action Plan REMP Management Plan EPA Environment Protection Authority RC Reverse Circulation EPL Environment Protection Licence SWMP Site Water Management Plan EL Exploration Lease STSF South Tailings Storage Facility HDPE High Density Polyethylene TSF Tailings Storage Facility KPI Key Performance Indicator t Tonnes SG Specific Gravity WRF Waste Rock Fill LCM Loose Cubic Meter wmt Wet Metric Tonne

1. I NTRODUCTION 1.1. History of Operations Cobar Management Pty Ltd (CMPL) operates the Cornish, Scottish and Australian (CSA) Mine located 11 km north of Cobar in western NSW. Mining has occurred intermittently on the CSA leases since the discovery of copper, lead and zinc in 1871. However, it was not until 1961 that a significant resource was proven by Broken Hill South Pty Ltd. Medium-scale mechanised underground mining subsequently commenced in 1965. The mine was acquired by CRA in 1980 and sold to Golden Shamrock Mines Pty Ltd (GSM) in 1993. GSM was in turn acquired by Ashanti Gold Fields in the same year. The mine continued to operate until 1997, when the operation ran into financial difficulties and was placed in receivership. The mine was placed on care and maintenance on the 20th January 1998.

Conditions for reopening the mine were negotiated, and concessions were obtained from the government, including the excision of three areas of concern from the lease: the North Tailings Storage Facility (NTSF); the subsidence hole and adjacent old spoil material; and, a major coarse rejects stockpile (Big Mt Brown). CMPL committed to reopening the CSA Mine in February 1999 with current underground and processing operations commencing in July 1999 following the purchase of the leases and site facilities.

CMPL, a wholly owned Australian subsidiary of Glencore, continues to operate the CSA Mine, which is currently the highest-grade copper mine, and one of the deepest operating mines in Australia.

1.2. Consents, Leases and Licenses CMPL has a large number of statutory approvals and associated legal obligations that regulate mining activities on site. The statuses of the CSA Mine’s main statutory approvals are listed in Table 1 to Table 3.

CMPL holds Consolidated Mining Lease 5 (CML5) for the CSA Mine operations and two small mining purposes leases 1093 and 1094 (MPL1093 and MPL1094). CML5 occupies portions of five Western Land Leases and Crown Land including parts of the Cobar Regeneration Belt. MPL1093 and MPL1094 occupy Crown Land. These details are shown in Plan 1. Throughout this document, these leases are collectively referred to as the CSA Mine.

The CSA Mine operates under Environmental Protection Licence (EPL) 1864; this document is attached in Appendix A. During the period of 1 January 2018 to the 31 December 2018, the CSA Mine

operated in accordance with the CSA Mine 2018 – 2020 Mining Operations Plan (MOP) and CMPL‘s internal Environment and Community Policy attached in Appendix B.

Table 1 - Mining Leases (as of 31/12/18). Lease Details Issue Date Expiry Date Number The CSA Mine site. Licensed for Group 1 minerals (Sb, CML5 2/12/1993 24/6/2028 Cu, Zn, Pb, Fe, In, Au, Ge, Co, Cd, Bi & Fe minerals). Exploration lease for Group 1 minerals – 111 units EL5693 08/02/2000 07/02/2021 around CML5 and surface exclusions of CML5 Mining Purposes Lease for Water Harvesting. Not MPL1093 5/2/1947 5/2/2029 licensed for minerals. Mining Purposes Lease for Water Harvesting. Not MPL1094 5/2/1947 5/2/2029 licensed for minerals.

Table 2 - Land Tenure (as of 31/12/18). Property Plan Lot Locality WLL County Parish Name Number Number Red Tank The CSA Mine 9565 Robinson Kaloogleguy 766965 4277 Red Tank East of Mine 731 Robinson Kaloogleguy 766922 6336 Immediately south Red Tank 13844 Robinson Kaloogleguy 1105750 1 of Mine South and east of Red Tank 3667 Robinson Mopone 1186316 1 tailings facility Ascot Southwest of Mine 13844 Robinson Kaloogleguy 1105750 2 Council Southwest of Mine Robinson Kaloogleguy 870022 22 around tip Northeast of Mopone 1009 Robinson Mullimutt 768325 5414 tailings facility Crown Land NNW of Mine 9565 Robinson Kaloogleguy 766965 7302 MPL1093 Crown Land NW of Mine 9565 Robinson Kaloogleguy 766965 7301 MPL1094 Red Tank 3km south of Mine Robinson Kaloogleguy 870022 23 Kaloogley Regeneration 3km south of Mine Robinson Kaloogleguy 1170625 7317 Reserve Kaloogley Regeneration 3km SSE of mine Robinson Kaloogleguy 1117798 7003 Reserve Kaloogley 4.3km South of Regeneration Robinson Kaloogleguy 1170625 7316 Mine Reserve

Table 3 - Licenses and Permits (as of 31/12/2018).

Renewal/Grant Licence Details Date

30 June (review EPL No. 1864 Environmental Protection License date) Mining Operations Cobar Management Pty Ltd, the CSA Mine, Mining 30 September Plan Operations Plan 2019 WorkCover Licence WorkCover NSW Licence to store Class 1.1D, 1.1B and 8 April 2019 XSTR100157 5.1 explosives Licence to sell/possess radiation apparatus and/or radioactive substances or items containing radioactive Radiation Licence substances 20 October 2019 No. 29023 - RR761, RR1384, RR911, RR907, RR21459, RR12793, RR12484, RR8858, RR8859 Refrigerant Trading Refrigerant trading authorisation under the Ozone 28 November Authorisation Protection and Synethic Greenhouse Gas Management 2019 Certificate Regulations 1995 WAL36335 and WAL36336 of the Macquarie and Water Access Cudgegong Regulated Rivers Water Source Sharing Plan Perpetuity Licenses & WAL28539 and WAL28887 of the Lachlan Fold Belt MDB Groundwater Source Sharing Plan Water Supply Works Water Supply Works for Production Bores WB1 and 26 June 2026 85WA753710 WB2 of the Lachlan Fold Belt Groundwater Source

Local Development Cobar Shire Council (CSC) Permit for use of the CSA Granted 26 June Consent No. 31/95 Mine site by CMPL 1998

Local Development Development of Underground Mine Ore Treatment Granted 26 June Consent No. 31/95 Plant and Tailings Dam and Associated Service Facilities 1998 Local Development Granted 18 Consent No. Refrigeration plant. November 2004 2004/LDA-00038 Local Development CSC Permit for Construction and Operation of South Granted 22 June Consent No. Tailing Dam Extension 2006 2006/LDA-00009 Local Development Granted 6 July Consent No. Erection of Potable Buildings. 2006 2006/LDA-00012 Local Development Granted 10 Consent No. Upgrade of Workshop/Storage Facility August 2007 2007/LDA-00036 Local Development Granted 7 April Consent No. CSC Permit for South Tailings Storage facility Wall Raise 2010 2009/LDA-00035

Local Development Granted 26 Consent No. CSC Permit for South Tailings Storage facility Upgrade September 2013 2013/LDA-00037

Local Development Granted 24 Consent No. CSC Permit for South Tailings Storage facility Wall Raise September 2014 2014/LD-00015 Local Development Consent Granted 15 May CSC Approval for Installation of Steel Surface Fan No. 2015/LD-00007 2015

1.3. Mine Contacts The management structure at the CSA Mine is displayed in the organisational chart in Figure 1. The CSA Mine management team and environmental contacts are listed in Table 4.

Figure 1 - Organisational Chart.

General Manager

Pedro Quinteros

Manager Manager Manager Ore Manager Manager Health, Human

Mine Projects Processing Finance Safety Resources Production Environment & Sptd.

Training Christopher Rohan Jade Buckman Nathan

Hamilton Reisener Quinlin Steven Marmara Scott Purdie

Mining Projects Ore Supply & Environment Human

Processing Contracts Resources

UG Surface Accounts Training Housing & Buildings Maintenance Maintenance

Technical Tailings Records Community Services Storage Management

Facility Geology & Health & Motel Exploration Safety

Table 4 - Management and Environmental Contacts. Title Name Phone Email

General Manager Pedro Quinteros 6836 5122 [email protected]

Ore Processing Manager Jade Buckman 6836 5104 [email protected]

Christopher Mine Production Manager 6836 5329 [email protected] Hamilton Health Safety Environment Steven Marmara 6836 5302 [email protected] & Training Manager

Finance Manager Nathan Quinlin 6836 5121 [email protected]

Environmental Huw Rabone 6836 5384 [email protected] Superintendent The CSA Mine Pollution The CSA Mine [email protected] 6836 5127 Complaints Line Switchboard (via CSA Website Contact Form)

1.4. Actions Required from the 2017 AEMR Review The 2017 AEMR review meeting was held at CSA Mine on the 15th of August 2018. The inspection was attended by representatives from the NSW Department of Planning, the NSW Environmental Protection Agency (EPA) and Cobar Shire Council (CSC). The inspection included a site wide tour of plant, the tailings storage facility (TSF) and current rehabilitation monitoring sites. The discussions were centred upon dust management at the Paste Fill Plant and concentrate storage sheds. An update on the proposed activities for the 2018 AEMR period is provided below in Table 5.

Table 5 - Update on the Proposed Activities for the 2018 AEMR Period. Priority Completion Activity Ranking Progress Review of the existing MOP to bring in line with updated legislation prior Completed H to expiry in Q4 2017. Continuation of environmental monitoring of surface water, groundwater Completed H and air. Update of site water management plan, water balance and investigation Completed H into ongoing water saving strategies. Review exploration and ancillary disturbance for CML 5 in line with new Completed H Rehabilitation Cost Estimate (RCE).

Borrow Pit review. H Completed

Continue maintenance activities on rehabilitated land. Ongoing H

Review data from all rehabilitation trials 2011 – 2016. H Ongoing Develop and implement further rehabilitation trials based on the Ongoing H rehabilitation review. Update Site Environmental Management Plan Ongoing M

Update mine closure plan to include new information gained from Ongoing M rehabilitation trials. Annual asbestos monitoring and update of site management plan. Completed M

Dangerous Goods Audit and management plan update. Completed M

LFA Monitoring (September). Completed M Design and trial rehabilitation biodiversity monitoring program. Ongoing M

2017 Family Day at CSA. Completed L

2. SUMMARY OF OPERATIONS DURING THE REPORTING PERIOD 2.1. Exploration During the 2018 reporting period both surface Diamond and Reverse Circulation drilling programmes were undertaken across CML5. RC drilling results included the identification of indicator mineral enrichment and depletion boundaries in addition to some weakly anomalous signatures for copper endowment. Surface exploration diamond drilling continued at the QTS South prospect with further encouraging results including significant chalcopyrite intersections within QSDD002, QSDD013, & QSDD015.

A Gravity Survey was undertaken on the Pink Panther Prospect (Figure 2) and Down Hole Electromagnetic surveys were conducted across CML5 with results producing encouraging prospectivity for the continued exploration of the near-mine province of CSA Mine, Cobar.

Underground drilling at the CSA Mine continued within the current workings at QTS North. Extensions to the QTS Central lode were identified and infill drilling improved mineral resource classification.

Surface exploration drilling will continue at the QTS North, and QTS South prospects, in addition to Pink Panther, Kendi, Spotted Leopard, and Western Gossan Prospects in 2019.

During the reporting period expenditure on combined exploration was $16,520,051.

Figure 2- Pink Panther Exhibiting Gravity Survey Points (black dots) Across the Prospect.

2.2. Land Preparation Land preparation was undertaken in accordance with the CSA MOP. During 2018, a significant amount of land preparation took place in those exploration areas specified in Section 2.1., which occur predominantly outside of the existing mining disturbance zone. In total, approximately 11.5ha (KD, PP, SL) were prepared to facilitate surface drilling. Where clearing was required, the CSA Site Disturbance Permit-Pre-Disturbance Baseline Study and Permit system was followed.

2.3. Construction

Table 6 - 2018 Construction Summary.

Infrastructure Instrument of Approval

Development Consent No:31:95 and Amendment 97/98:33 – Groundwater Bores Development of Underground Mine Ore Treatment Plant and Tailings Dam and Associated Service Facilities

Infrastructure Instrument of Approval

Development Consent No:31:95 and Amendment 97/98:33 – Additional Cooling at Development of Underground Mine Ore Treatment Plant and Tailings FAR1 Dam and Associated Service Facilities Development Consent No:31:95 and Amendment 97/98:33 – Power Reticulation to Development of Underground Mine Ore Treatment Plant and Tailings FAR 1 and Paste Fill Dam and Associated Service Facilities Development Consent No:31:95 and Amendment 97/98:33 – Site Water Harvesting Development of Underground Mine Ore Treatment Plant and Tailings Dams Dam and Associated Service Facilities Development Consent No:31:95 and Amendment 97/98:33 – 3 ML Raw Water Storage Development of Underground Mine Ore Treatment Plant and Tailings Tank Dam and Associated Service Facilities Development Consent No:31:95 and Amendment 97/98:33 – No #1 Shaft Development of Underground Mine Ore Treatment Plant and Tailings Refurbishment Dam and Associated Service Facilities Development Consent No:31:95 and Amendment 97/98:33 – No #1 Shaft Crusher Development of Underground Mine Ore Treatment Plant and Tailings Commissioning Dam and Associated Service Facilities Development Consent No:31:95 and Amendment 97/98:33 – No #2 Shaft Development of Underground Mine Ore Treatment Plant and Tailings Refurbishment Dam and Associated Service Facilities Development Consent No:31:95 and Amendment 97/98:33 – Paste Fill Water Development of Underground Mine Ore Treatment Plant and Tailings Treatment Plant Dam and Associated Service Facilities

2.4. Mining Table 6 summarises the CSA Mine’s production history from 2018 and the forecast for the next three years. Annual production was below the target for 2018 only achieving 44,501 tonnes (t). Copper metal production for 2019 is expected to be in excess of 52,877 dry metric tonnes (dmt). Forecast mine production for the next four years is planned 1.2 tonne per annum of ore.

Table 7 - Actual and Forecast Production (dmt) (as of 31/12/2018)

Year 2018 2019 2020 2021 Ore (t) 1,004,176 1,255,351 1,220,088 1,226,528 Grade % 4.43% 4.05% 4.19% 4.02% Cu Metal (t) 44,501 49,653 49,490 48,375

2.4.1. Underground Resource Status The current mineral resource is estimated at 11.35 Mt, with 5.46 % Cu between 9280 m relative level (RL) to 88200 m RL. The 8200 m RL is approximately 2,100 m below the surface. There is potential for further resources to exist at depth and within this RL range. The current proven and probable ore reserve is estimated at 6.4 Mt, with 3.8% Cu between the 9150m RL to 8460 m RL. The updated ore reserve is 0.1 Mt (+0.8%) greater than December 2017.

2.4.2. Estimated Mine Life The long term (LoM) plan is to mine at the rate of 1.2 million tonnes per annum (Mtpa) the 8420 RL (1,850m below surface) in the QTS North lenses. The mining rate equates to approximately 45 m vertical advance per year. Proved and probable ore reserves stand at >6.4 Mt at 3.8% Cu between 9,275 RL to 8,460 RL, which can sustain these extraction rates for over five years. Additionally, there appears to be adequate resource below this depth in the QTS North and within the QTS Central and Western system to sustain the mining rate up to 2030. At expected mining rates, the minimum mine life would therefore be approximately 10 years of operation.

2.4.3. Mining Equipment

Table 8 - Mining Equipment List as of 2018.

Item #

Atlas Copco Simba L6C Production Drill Rig 1 Atlas Copco Simba E7C Production Drill Rig 1 Atlas Copco MT5020 Ejector Truck 3 Caterpillar Elphinstone R2900 Loader (LHD) 8 Atlas Copco MT6020 Dump Truck 7 Caterpillar 980H Loader 2 Caterpillar IT28G Tool Carrier 1 Caterpillar 930H 1 Caterpillar 12H Grader 2 Volvo L90F Wheel Loader 2 Volvo L120F Wheel Loader 1 Forklifts 4 Sandvik 7-5 Cabolter 1 Sandvik DD420 Jumbo 2 Kubota R420 Forklift 4 Kubota ATV 1 Kubota RTV 1 Dieci Telehandler 1 Jacon Agitator 2 Terex UC15 Franna Crane 1 Isuzu FTS 800 Exp. Truck 1 Isuzu FTS 800 Fuel Truck 1 Isuzu NPS300 Service Truck 1 Isuzu NPS 75/45-155 Stores Truck 1 Isuzu FVS 260-300 Stores Truck 1 Hino (Mines Rescue) 1 Isuzu FSR 700 Stores Truck - Town 1 Isuzu 1400 Water Truck 1 Light Vehicles 50

2.4.4. Mining Method The mining method used at the CSA Mine for the majority of stoping remains as top down, continuous advance, long-hole open stoping. Most stopes to date are filled with Cemented Hydraulic Fill (CHF) and the balance is filled with development waste, either as clean waste co-disposal with CHF or as Cemented Rock Fill (CRF). CHF has generally been phased out to be replaced with Cemented Paste Backfill (CPB) commissioned July 2018 with full filter plant commissioning completed by November 2018. Limited bottom up long-hole open stoping was carried out in 2018 to facilitate underground disposal of waste, but will continue in the 2019 reporting period. Trials for the uses of the Modified AVOCA mining method have been undertaken to further increase opportunities to maximise waste disposal and allow mining of marginal mining areas.

2.4.5. Mine Development During 2018, underground horizontal development advancement totalled 4,534m. The primary focus was advancing the decline towards the 8500 level; the main decline position was 19m ahead of original budget position. This was completed along with completing the 8540 and 8580 levels, establishing the 8540 level, production-related development in QTS North, and access development to establish mining in QTS Central for production to commence here in Q4-2019.

Mining is almost complete above the 8700 level in the QTS North, except for some already developed remnant material between 8850 and 8950. QTS South mining is complete above the 9015 level. The economic bottom of the QTS South ore body is currently 9015.

During the 2019 reporting period, development will continue for access to the Central System and access to the Western System. Development below the 8500 level in QTS North will continue.

2.4.6. Mine Production Production mining activities have focused on the I, J, JS, K, O, S and SN lenses of the QTS North system and from the QR1 and Q5 lens in the QTS South system during the past five years. Stoping will continue to focus in these same lenses in QTS North during the 2019 AEMR period. Ore has been extracted as required from other smaller QTS North lenses (M and MS) to supplement the ore supply and to provide an optimal feed grade to the mill, as allowed by mining sequences and ground stress management. A similar approach will be taken during 2019.

The QTS North ore system provided 100% of the ore produced for 2018. Actual stope performance and metal output for 2018 was below budget. Variations in monthly grades, against budgeted

figures, reflect timing fluctuations of individual stopes. Table 9 shows the comparison of monthly budget and actual production performance during 2018 for the underground mine.

Table 9 - Budget vs Actual Mine Production 2018.

Budget Actual Variance Tonnes Grade Tonnes Grade Tonnes Grade 2018 (dmt) (% Cu) (dmt) (% Cu) (dmt) (% Cu) Jan-18 115,167 3.97% 101,119 4.73% -14,048 0.76% Feb-18 55,157 4.12% 94,796 4.76% 39,639 0.64% Mar-18 61,067 4.85% 94,496 4.06% 33,429 -0.79% Apr-18 120,201 4.02% 26,129 5.00% -94,072 0.98% May-18 119,589 3.88% 61,785 4.49% -57,804 0.61% Jun-18 119,935 4.52% 76,161 3.23% -43,774 -1.29% Jul-18 115,847 4.48% 105,772 5.23% -10,075 0.75% Aug-18 115,032 3.81% 56,117 5.35% -58,915 1.54% Sep-18 103,536 4.10% 98,197 4.24% -5,339 0.14% Oct-18 111,793 4.64% 117,955 3.44% 6,162 -1.20% Nov-18 109,006 4.19% 90,211 4.75% -18,795 0.56% Dec-18 98,617 4.65% 81,438 4.64% -17,179 -0.01% TOTAL 1,244,947 4.25% 1,004,176 4.43% -240,771 0.18%

2.4.7. Backfilling and Tailings The long-hole open stoping mining method used requires cemented backfill as the main control for stope ground conditions. The behaviour of the filled mass has a significant impact on ore body dilution and recoveries from processing. Cemented hydraulic fill (CHF) has been used extensively in the past at CSA since 2005. The past year has seen the introduction of Cemented Paste Backfill (CPB) as the primary method for filling voids at CSA. CPB is produced by vacuum filtering the mill tailings production of the floatation circuit. The placed backfill is exposed both horizontally and vertically. Strength requirements and cement additions for CPB are 1.4mPa for horizontal exposures achieved with 11.0% cement addition by mass and 0.45mPa for vertical exposures achieved with 4.0% cement addition. As confidence in the strength-binder relationship grows to dosage rates will be reviewed and further optimised, alongside work to reduce cement addition via the use of a cement slag blend and/or water reducers.

Paste fill is obtained by removal of water from full stream tailings through vacuum filters to produce filter cake. This filter cake will be stockpiled during periods where paste is not required. The installed plant also has the flexibility to utilise reclaimed tailings to further decouple paste production from milling production.

Stopes that do not require future horizontal or vertical exposure are filled with un-cemented bulk fill only, using development waste / backfill dig out (backfill contaminated) waste. Where cemented fill is required for vertical exposures and paste fill is not practically available, Cemented Rock Fill (CRF) is used. CRF is a blend of development waste rock, cement and water which is mixed in a dedicated mixing bay mined on each level where required. The CRF is placed into the stope before filling with uncemented rock fill.

With the introduction of paste fill, the cemented hydraulic fill (CHF) plant will remain idle and maintained in a ready to operate state, to provide redundancy throughout the commissioning stage of paste fill and beyond, until such time as the paste backfill system operates optimally.

A total of 263,122m3 of cemented back fill (CPB and CHF) was placed into underground voids during the 2018 period, representing 28.4% of flotation tailings produced by milling operations. A further 83,557m3 of void was filled using underground waste via waste rock filling and CRF methods over the reporting period. Total backfill was lower than budget during 2018 due to delays to the commissioning of the CPB plant and issues relating to blockages and line wear in the latter part of the year. Stope turnover also restricted volumes produced to make CPB product at times. Total backfilling is planned to increase in 2019 due the increase in total production. 13

Table 10 shows monthly backfill production and final tailings deposition for the year 2018. Tailings deposition was lower than expected with 831,210dmt entering the tailings storage facility. This is in line with the reduced production for the year due to volume constraints. An additional 105,977dmt was reclaimed from the STSF for CPB production. The Stage-8 lift is designed to provide tailings deposition until December 2018 at a rate of 55,000t per month, to ensure that unforeseen changes in processes, such as less backfill and increased deposition to the STSF, do not create any operational shortfalls of the facility. The construction design of the STSF is provided by consultant engineers from Golders Associates.

Table 10 - Backfill Production and Final Tailings 2018.

Backfill Production Final Tailings Cemented Un-Cemented Tailings Backfill Split 2018 (dmt) (dmt) (dmt) (%) Jan-18 37,007 0 84,052 44.03% Feb-18 46,008 0 78,620 58.52% Mar-18 42,479 0 77,751 54.63% Apr-18 12,262 0 21,625 56.70% May-18 24,205 0 52,960 45.70% Jun-18 29,872 0 63,973 46.70% Jul-18 81,571 0 84,355 96.70% Aug-18 13,330 0 44,218 30.15% Sep-18 40,605 0 83,756 48.48% Oct-18 54,468 0 101,120 53.86% Nov-18 13,405 0 71,060 18.86% Dec-18 22,370 0 67,721 33.03% 2018 TOTAL 417,583 0 831,210 50.24% 2018 BUDGET 724,070 0 1,029,793 70.31%

2.5. Mineral Processing In 2018, the budgeted production rate was 1,230,204dmt of ore, to produce 200,411dmt of concentrate and 51,036t of copper. Actual production achieved in 2018 was below target for ore tonnes milled, with 1,002,132dmt milled, despite an above plan copper grade, concentrate and copper produced was below budget with 170,922dmt of concentrate produced and 48,479dmt of Cu.

Table 11 - 2018 Ore Processing Production Summary.

2018 PRODUCTION SUMMARY Actual Budget Var. Mill Throughput (dmt) 1,002,132 1,230,204 -18.5% Concentrate Production (dmt) 183,546 200,411 -8.4% Contained Copper (t) 48,049 51,036 -5.9% Feed Grade (%Cu) 4.57 4.24 7.8%

The primary focus of the Ore Processing Department for 2018 was to optimise recovery through various initiatives whilst maintaining concentrate grades within target range. The primary focus for the Mining Department during 2018 was achieving the planned ore production at the budgeted grade and cost and completing critical reserve development to facilitate the planned production ramp-up. Further critical work involved the commissioning of paste fill plant to address back-log mining voids to support the required production. Whilst this work was undertaken a number of projects were completed or commenced in 2018 to add additional mining capacity or debottleneck operations, these included:

 Primary ventilation upgrade – complete a ventilation and cooling study to establish ventilation and cooling requirements to support the LoM production plan;  Establishing the optimal paste mix design for binder reduction and optimal strength;  A LoM trucking simulation study was concluded;  An SLC study concluded that SLC mining will not be viable (technically and financially) at CSA;  Trials for the implementation of Modified Avoca mining method was successfully concluded which will add a lower cost mining method with UG waste disposal advantages – this is envisaged to be implemented in Western and QTSC mining areas with stoping due to commence here at the end of 2019; and  Binder reduction test work involving slag blends or stabilizer additives were commenced. The key projects planned for the CSA Mine in 2019 include:  FAR #2 Design and Execution, including UG lateral development and raise boring as part of the primary ventilation upgrade;  Expansion of coreyard and installation of roller racking to reduce manual handling;  Relocation of the DYNO yard and emulsion storage tank ;  Underground electrical upgrade to the bottom of the mine;  Groundwater bores to be commissioned;  Pink Panther exploration drilling;  Extension of the underground seismic network;  Establishing remote loading capability from surface;  Conducting a full Front End Engineering Design study for the primary ventilation and cooling upgrade to enable engineering tender and execution in 2020 – 2021;

2.5.1. Metallurgy The milling circuit consists of two primary Semi-Autogenous (SAG) mills in either open or closed circuit as required, with hydrocyclones. A third mill of the same size is used as a ball mill when further grinding is required. After grinding, ore slurry is pumped to the flotation circuit comprising of rougher, scavenger, cleaner and re-cleaner stages that use mechanically agitated flotation cells. One bank of Wemco rougher cells, one bank of FLSmidth rougher cells and one bank of Outotec scavenger tank cells float the sulphides until generating a final tail that is sent to the tailings 15

thickener. Two Jameson Cells perform the final cleaning of concentrate. Recovery of Cu minerals, mainly chalcopyrite, is excellent with typically 96% to 98.5% of the Cu and around 80% of the silver reporting to the concentrate. The concentrate grade generally ranges between 25 - 29% Cu and 72 - 88g/t silver (Ag) depending on the mineralogy of the ore. Metal Recovery for 2018 is shown in Table 12.

Table 12 - Metal Recovery 2018.

Tonnes Feed Grade Metal Recovery Concentrate Production Treated 2018 Ag Ag dmt Cu (%) Cu (%) dmt Cu (%) Ag (g/t) (g/t) (g/t)

Jan 102,834 4.90 19.35 97.35 71.19 13,104 28.08 79.76 Feb 95,636 4.91 18.20 97.28 83.00 17,352 25.81 80.85 Mar 91,785 4.15 15.85 98.04 87.37 13,793 26.78 79.18 Apr 26,443 4.91 14.10 98.10 81.67 16,477 27.59 81.04 May 64,412 4.65 18.98 97.76 84.48 19,579 26.11 77.72 Jun 72,627 3.17 12.17 97.56 89.01 19,506 24.74 85.27 Jul 105,358 5.41 19.76 97.48 79.60 12,966 25.80 91.29 Aug 55,660 5.33 21.34 97.91 80.98 16,466 25.87 86.20 Sep 100,748 4.45 18.51 97.51 82.64 18,263 25.14 78.21 Oct 117,275 3.68 14.96 97.99 84.67 16,047 24.95 81.84 Nov 86,894 4.90 18.63 97.63 74.02 20,041 27.15 87.87 Dec 82,460 4.82 16.45 97.92 84.83 22,892 25.91 74.20 Total 1,002,132 4.57 17.49 97.66 81.30 206,485 26.11 81.72 2019 1,254,646 4.06 16.47 97.59 78.00 187,308 26.89 81.71 Estimate

Flotation concentrate is pumped to a conventional thickener where it is dewatered. Thickener underflow is pumped to a Filter Feed Tank. This slurry is pumped to two pressure Filters where water is removed. The filtered concentrate is discharged and trammed to stockpiles located within either of two concentrate storage sheds. The concentrate has a moisture content of approximately 9.5%. Reagent consumption figures for ore processing in 2018 are provided in Table 13.

Table 13 - Reagent Consumption 2018.

Reagent Consumption (t) 2018 Grinding Cement Flocculent Collector Frother Nitric Acid Delvocrete Media Jan 3,499 108 0.38 1.76 0.54 0.65 2.19 Feb 3,415 78 0.4 1.39 0.33 0 2.86 Mar 3,308 69 0.38 1.26 0.41 0 2.33 Apr 1,853 36 0.28 0.59 0.23 0 0.75 May 2,947 49 0.48 1.11 0.23 0 1.65 Jun 2,464 62 0.48 0.86 0.28 0 1.65 Jul 5,236 95 0.98 1.50 0.48 0.71 1.87 Aug 659 79 0.3 0.91 0.2 2.4 0.33 Sep 1,578 91 0.38 2.23 0.27 1.14 0 Oct 3,114 107 0.73 0.76 0.62 0 0 Nov 982 70 0.28 1.47 0.31 0 0 Dec 2,360 74 0.63 1.14 0.39 0 0.33 Total 31,414 916 5.65 14.97 4.30 4.89 13.96

2.6. Waste Management The waste streams generated by the CSA Mine can be broken down into the following categories:

 General waste  Recycling (paper, cardboard, PET/HDPE plastics, aluminium, glass, tin, fluorescent lights and printer cartridges);  Industrial waste (steel and batteries);  Hydrocarbon waste (oil, grease, filters);  Sewage;  Waste rock; and  Process tailings.

All waste removed from site is removed in line with current legislation and disposed of at appropriate facilities, while mining related waste, such as tailings and waste rock, is disposed of onsite within an approved facility. Sections 2.6.1 to 2.6.4 breakdown each waste stream and discuss how much waste was generated during 2018, who the licenced removal contractor is, and the final disposal location. During 2018, all waste generated by operations at the CSA Mine, apart from waste rock and tailings, was removed offsite for final disposal or recycling. The volumes of each waste stream generated during 2017 and 2018 are highlighted in Table 14 below.

Table 14 - Annual Waste Summary.

Hydrocarbon General Waste Recyclables Scrap Batteries Waste Products Hydrocarbon Sewage Waste Grease (kg) Steel (kg) (kg) Oil (L) Recycled Waste (kg) (L) (kg) (kg) (kg)

2017 343,456 16,140 239,058 3,996 94,000 20,852 18,666 11,684 241,500

2018 302,217 16,116 190,330 3,800 110,740 8,752 8,668 17,922 169,000

2.6.1. General Waste General waste at the CSA Mine is collected by JR Richards (JRR) and taken directly to the Cobar landfill facility for disposal. The general waste collection volumes for 2018 and the previous four years are shown in Table 15 below.

Table 15 - General Waste Collection Volumes.

Year General Waste (kg) 2014 256,030 2015 293,445 2016 311,095 2017 343,456 2018 302,217

In 2018, the volume of general waste generated onsite decreased by 41,239kg. A steady rate of increase in waste volumes was observed from 2013-2017 following the commissioning of underground waste bins. Prior to this, underground waste was disposed of at the Cobar Tip directly by CMPL, and volumes of waste were not captured. Since the addition of these underground waste bins, general waste volumes slowly increased as more redundant material was removed offsite rather than stored in old underground workings. 2018 appears to be a turning point in this trend, and likely reflects the actual annual volume of general waste generation at the CSA Mine.

2.6.2. Recycling General recyclable materials are made up of co-mingled recyclable waste which includes paper, cardboard, PET/HDPE plastics, aluminium, glass and tin and is picked up fortnightly by JRR and transported to the JRR Material Recovery Facility in Dubbo for processing. The general recycling collection volumes for 2018 and the previous four years are shown in Table 16 below.

Table 16 - Recycling Collection Volumes.

Year Recyclables (kg) 2014 35,360 2015 40,435 2016 32,470 2017 16,140 2018 16,116

Printer cartridges are collected at each printing area onsite and sent to Ricoh and Close the Loop for recycling. During 2018, 6 bags of printer cartridges were sent offsite for recycling.

Electronic waste is collected onsite in cleaned and empty 1,000L pods. This waste is stored in the Mill and Administrative laydown area for offsite recycling. 8 pods of electronic waste were disposed of in 2018.

2.6.3. Industrial Waste Industrial waste at the CSA Mine is split into four main waste streams: metals, rubber, hydrocarbons, and sewage waste. Each of these waste streams are managed and tracked separately.

Metal waste includes steel and copper cables, both of which are removed off site by M&F Scrap Metal and taken to the OneSteel mill in Newcastle for recycling. In 2018 a number of decommissioned pieces of electrical infrastructure suspected of containing PCB’s were also removed by Blue Chip Specialised Services, a subsidiary of JRR.

Hydrocarbons are recycled wherever possible. An EPA licensed contractor, Renewable Oil Services Pty Ltd (EPA Transport Licence No. 12991; EPA Depot Licence No. 13092) collects the waste oil, waste grease and other oily waste for recycling at their Rutherford facility on an as-needs basis. During 2018, 110,740L of waste oil, 8,668kg of hydrocarbon contaminated products (oil drums, oil filters and oily water) and 8,752kg of waste grease were removed from site for recycling. In addition, 17,922kg of hydrocarbon waste (oily rags, plastic liners, hydraulic hoses and contaminated waste) was removed off site for disposal.

Underground sewage waste is removed from site and disposed of by licensed Cobar Mining Contractors at the Cobar Shire Council sewage treatment plant. During 2018, approximately 169,000L of sewage waste was removed.

2.6.4. Underground Waste Rock The underground mining operations produce approximately 200,000-300,000t of waste rock annually. Wherever possible, waste is directly disposed of into underground voids left by stoping operations. On occasion, the volume of waste rock generated by development exceeds the volume of void produced by stoping operations and the void volume that becomes available as existing workings become redundant. The waste rock brought to surface is stored in stockpiles at the TSF for use in future wall lifts. In 2018 49,942dmt underground waste rock was hoisted to the surface for use in the dam lift project, and a further 80,632dmt was placed into underground voids as CRF or co- disposal of waste into backfill stopes.

2.7. Ore and Product Stockpiles 2.7.1. Ore Stockpiles Ore hoisted to surface is stored in any of four concrete, open topped storage bins. Total capacity is approximately 7,000wmt.

2.7.2. Product Stockpiles Flotation concentrate is stored in either of the two concentrate storage sheds, with a combined storage capacity of approximately 35,000wmt. The sheds are covered and partially enclosed, which assists in the minimisation of dust generation. Each shed has a concrete floor and wall bunds, which minimises concentrate losses to the environment. Approximately 1,039dmt of Cu concentrate was stored in the concentrate storage sheds as of 31st December 2018 (Table 17).

Table 17 - Copper Concentrate Stored on Site 2018.

Concentration Stocks on Site EOM Dry Tonnes Wet Tonnes Jan 52,489 59,226 Feb 17,351 19,044 Mar 13,165 14,511 Apr 8,263 9,156 May 11,772 13,069 Jun 582 834 Jul 12,912 14,512 Aug 2,973 3,397 Sep 9,296 10,256

EOM Dry Tonnes Wet Tonnes Oct 5,235 5,720 Nov 5,534 6,180 Dec 1,039 1,250

Table 18 summarises stockpile estimates and waste production at the CSA Mine for 2018 and the estimate for 2019.

Table 18 - Cumulative Waste and Material Production.

Cumulative Waste & Stockpile Production

End of 2018 End of 2019 Start of 2018 reporting reporting period reporting period period (estimate) Topsoil generated (m3) 81,954 106,954 125,000 Topsoil used / spread (m3) 1,360 1,410 2,810 Waste Rock (t) (surface hoisted/trucked) 543,554 593,496 640,000 Ore (milled) (dmt) 14,641,226 15,643,358 16,898,709 Processing Waste (tailings) (dmt) 8,036,870 8,868,080 TBD Backfill (dmt) 4,577,564 4,995,147 TBD Cu Concentrate (dmt) 2,521,804 2,728,289 TBD

2.8. Water Management CMPL manage CSA Mine’s water in accordance with the conditions stipulated in Environmental Protection license 1864.

2.8.1. Raw Water Supply A total of 883,065kL of raw water was supplied to the CSA Mine in 2018. This represents an 8.19% decrease in water supply from 2017 (961,805kL). The decrease in raw water supply in 2018 was achieved by the commissioning of the two existing groundwater bores. A summary of annual raw water supply and water storages is shown in Tables 19 and 20 respectively. CMPL possess a current entitlement of 1,356ML/year of high security water under the Water Sharing Plan for the Macquarie and Cudgegong Regulated Rivers Water Source. CMPL’s water access licenses are summarised in Table 21.

Table 19 - 2018 Raw Water Supply.

Month Usage (KL)

January 86,248 February 83,567 March 80,266 April 70,091 May 43,515 June 53,480 July 70,592 August 63,855 September 71,505 October 92,612 November 78,672 December 88,662 Total 883,065

Table 20 – Stored Water.

Volumes Held (ML) Stored Water Storage Start of 2018 End of 2018 Capacity Reporting Period Reporting Period Clean Storages Old Mine Water Dam MPL1093 (S15) 25 7.00 3.00 Old Mine Water Dam MPL 1094 (S16) 9 3.00 4.00 Raw Water Storage Tank (S2) 1.00 1.00 1.00 3ML Raw Water Storage Tank 3.00 0.00 3.00 Total 38.00 11.00 11.00 Contaminated Storages TSF Stormwater Collection Dam (S11) 5.00 0.50 0.50 Borrow Pit Dam (S4) 10.2 0.88 0.50 Wash Bay Evaporation Pond 0.05 0.26 0.02 Railway Dam (S8) 4.79 0 0.25 Retention Dam (S9) 2.99 0 0

Old Smelter Runoff Dam (S13) 2.04 0 0 North Runoff Dam (S10) 1.34 0 0 Old CSA Spoils Dam (S1) 4.66 0.23 0 Pork Pie Dam (S14) 23.4 8.27 23.00 TSF Decant Dams (combined) (S5) 93.00 41.85 28.00 Operational Water Dam (settling ponds) 7 6.3 5.5 Total 154.47 58.29 57.77

Table 21 - CMPL Mine Water Access Licenses.

License Number Source Category Allocation Macquarie and Cudgegong Regulated River - WAL36335 542.4 units Regulated Rivers High Security Water Source Macquarie and Cudgegong Regulated River - WAL36336 813.6 units Regulated Rivers High Security Water Source Lachlan Fold Belt WAL28539 MDB Groundwater Aquifer 300 units Source Lachlan Fold Belt WAL28887 MDB Groundwater Aquifer 210 units Source

2.8.2. Groundwater Sources CMPL currently operate 2 groundwater bores, powered by diesel generators and equipped with variable speed drives, flow and water level sensors and a solar/battery powered control unit. CMPL possess a 510ML groundwater allocation for the Lachlan Fold Belt MDB Groundwater Source In house draw down and sustainable yield studies determined that WB1 and WB2 can sustainably produce approximately 4L/s and 8L/s respectively. An analysis of aquifer refill and drawdown, and site geology characteristics, suggests that the groundwater is contained in fractured rock aquifers, which infers that a multitude of separate, viable groundwater resources may exist along fault

formations within the CSA site. CMPL is currently in the process of investigating the viability of additional known groundwater intersects (see figure 9).

2.8.3. Water Balance CMPL maintain a water balance model to be used in reporting and as a forecasting tool. The water balance model is informed by the collection of regular water transfer meter readings. By correlating data obtained from these readings with outputs from specific plant, a relationship between water usage and mining and ore processing parameters can be established and future water requirements more accurately estimated. Currently, reticulation volumes are measured with mechanical flow meters located at inflows and outflows of interest. The water balance model is continuously reviewed to ensure that it captures any modifications to water distribution. Water consumption and basic reticulation data are summarised in Table 21.

Table 22 - Water Balance Output.

Item 2014 2015 2016 2017 2018 Inflows (ML) Raw Water Supply 976 882 883 961 883

Bore Water Supply - - - - 108

Water Recycled 478 418 384 337 232 Outflows (ML) Mine Raw 422 399 413 375 294 Consumption Mill Raw Consumption 319 456 324 401 475 Surface General Raw 204 362 49 31 111 Consumption

2.9. Hazardous Materials Management CMPL hold a Dangerous Goods Notification for the CSA Mine. Current WorkCover licensing requirements for hazardous materials and dangerous goods management in NSW requires the CSA Mine to submit an annual Notification of Dangerous Goods on Premises form to notify WorkCover of Hazardous and dangerous goods stored on the premises.

Monthly inspections are undertaken to ensure that Dangerous Goods storage areas meet the requirements discussed above. The findings of the inspections are actioned to area supervisors, and 24

a time frame given to remedy any compliance issues. Throughout 2018, inspections identified issues relating to general housekeeping, restocking of spill kits, the availability of SDS’ for chemicals, and minor hydrocarbon spills within workshops, particularly underground.

In addition to the monthly inspections, the CSA Mine conducts a yearly audit on all dangerous goods storage locations. The audit is designed to ensure that the requirements for the storage of dangerous goods and hazardous substances are met onsite. The main issues identified in the 2018 audit were the location of SDS’, general housekeeping, spill kits needing restocking or not available, incorrect storage and inadequate signage.

2.10. Other Infrastructure Management During 2018 various pieces of redundant infrastructure were removed from site and transferred to a scrap metal facility.

3. ENVIRONMENTAL MANAGEMENT AND PERFORMANCE 3.1. Meteorological Monitoring Meteorological data for the CSA Mine is primarily derived from the Cobar Meteorological Observation (MO) Station #048027, and supplemented by an onsite rainfall gauge. Respective total recorded rainfall was 136.8mm and 185.1mm, a decrease of 121.8mm (from 258.6mm) and 139.9mm (from 325mm) compared to 2017. Annual rainfall data is summarised below in Figure 3. Figure 3 - Cobar MO & CSA Mine Rainfall Monitoring 2018.

2018 Rainfall Monitoring 120

100

80 Cobar MO

60 TSF

Cobar MO Average Rainfall Rainfall (mm) 40 TSF Average

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mean daily wind run in 2018 was consistently above the long term average (Figure 4). The prevailing wind direction is from the east and north-east (Figure 5). Figure 4 - Cobar MO Wind Run Monitoring 2018.

2018 Wind Speed Monitoring 400

350

300

250

200 Cobar MO Cobar MO Average 150

100 Average Daily Average Daily Windrun(km)

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Figure 5 - Cobar Wind Speed and Direction Rose (Long Term Average).

3.2. Air Pollution The objective of air quality management at the CSA Mine is to minimise the generation of airborne nuisance dust and other contaminants. To this end the CSA-HSET-MP-1002 Surface Dust Management Plan and the CSA-MIN-MP-2005 Air Quality; Dust and Other Contaminants Plan have been developed to establish a monitoring guideline and control procedures for activities with the potential to generate emissions. Identified emission point sources include material handling and storage, operation of mobile equipment, drilling, blasting and ventilation exhaust. Typical controls included in the aforementioned management plans include:  Watering of trafficked areas, haul roads and material stockpiles, and the application of dust suppression additives and road sealant where practicable;  Management of stockpiles such that the ratio of volume to surface area is maximised as best as is practicable i.e. preference is shown to increasing circumference of stockpiles as opposed to height;  Reverse Circulation surface drill rigs are equipped with a twin cyclone system and a filter box, and are maintained to specification;

 Water droppers are utilised to ensure underground surfaces are kept moist and thus particulate volume brought to the surface via ventilation exhaust is minimized; and  Minimising surface disturbance by restricting vegetation clearing and top soil removal.

CMPL maintain a network of 12 depositional dust gauges to monitor compliance with the 4g/m2/month dust threshold specified by the EPA. Supplementary portable continuous flow air samplers are also used when required. Air quality sampling is undertaken in accordance with AS 3580.10.1 (2003).

The location of the deposition gauges are listed below and shown in Figure 6:  D1 – North-eastern corner of the STSF;  D2 – North-eastern boundary wall of the NTSF;  D3 – North-east of the concentrate loading shed;  D4 – West of the administration building;  D5 – Adjacent the TSF booster hopper;  D6 – South-central of the STSF;  D7 – Adjacent the TSF haul road;  D8 – North-central of the NTSF;  D9 – Adjacent the underground decline;  D10 – Adjacent the backfill plant;  D11 – North of the Paste Fill Plant; and  D12 – East of the Paste Fill Plant.

Dust deposition for the 2018 recording period is displayed in Table 23 and Figure 7. Samples are routinely collected on a 2-monthly basis and are analysed by an external NATA accredited laboratory for determination of dust composition and mineral content.

Figure 6 - Dust Deposition Monitoring Network

Table 23 - Tabulated Dust Deposition Data for the 2018 Period.

Ash Content (g/m2/month)

Monitor Dec-Feb Feb-Apr Apr-Jun Jun-Aug Aug-Oct Oct-Nov Nov-Dec

1 7.5 1.9 1.9 3.5 4.3 19.8 10.2

2 1.3 0.7 0.3 1.2 1.5 25 4.8

3 2 1.7 1.2 1.9 2.1 11.3 4.7

4 1.9 1.5 0.7 1.1 1.5 8.1 4.6

5 5.8 4.3 26.8 8.3 9.7 12.4 10.2

6 1.6 1.1 0.5 1.8 2.3 9.7 4.2

7 4 4.8 4.4 5.8 5.3 25.1 7

8 1.5 1 0.5 1.1 1.6 11.7 4.4

9 5.2 4.2 4.6 1.9 3 12.4 7.1

10 9 7.8 9.5 6.1 4.5 12.3 4.2

11 - - - 7.3 - 67.1 4.9

12 - - - 6 - 56 13

A significant number of samples were above target (shaded in red) in 2018. These can be attributed to ongoing record drought conditions, above average wind run, and increased haulage and material storage associated with the commissioning of the Paste Fill Plant. In response a number of reactive controls have been employed; a new dust suppressant additive was trialled, highly trafficked roads were gravel sealed, and the wetting frequency of tailings reclaim stockpiles at the Paste Fill Plant was increased. The frequency of dust deposition sampling has been increased to determine the efficacy of these additional controls moving into the 2019 reporting period.

Figure 7 - Dust Deposition Data for the 2018 Monitoring Period.

Dust Deposition Rates 80

30 g/m2/month

Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul Jul

Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan

Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct Oct

Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr Apr D1 D2 D3 D4 D5 D6 D7 D8 D9 D10 D11 D12 Total Ash Content (g/m2/month) Impact assessment criteria (g/m2/month) 31

3.3. Erosion and Sediment The drainage system at CSA Mine has been designed such that all potentially contaminated and/or sediment laden water reports to a fit for purpose receptacle and no off-site discharge occurs. The drainage system is comprised of open channel drains, pipes, pits and dams constructed according to the drain and channel sizing and lining, rock armouring and other erosion mitigation guidelines outlined by Golder in a 2017 site drainage review. Said review, received by CMPL in September of 2017, identified that the CSA Mine is comprised of five distinguishable catchments as per Figure 8. Of particular note, the north-eastern catchment which now encompasses the mine decline portal, paste fill plant and excised area Big Mt Brown was found to drain to depressions adjacent to the road that formed the eastern boundary of the catchment. Following the commissioning of the Paste Fill Plant it was determined that this catchment should be retrofitted into the primary site catchment, which drains to the Borrow Pit Dam, given the potential of contamination associated with tailings stockpiling at the Paste Fill Plant. This work was scheduled to be completed in early 2019.

Erosion and sediment control inspections are conducted by the CMPL Environment Department within 24 hours after a large rainfall event (greater than 25mm over 24 hours). A visual inspection of key water storages, drainage channels and bunds across site is performed to identify any erosion damage, drainage issues, blockages, storage capacities, and risks of overflow or discharge. Corrective actions are assigned with priority given to those that maintain the capacity of storages and minimise the risk of damage to the structural integrity of facilities. An Erosion Inspection Record Sheet (FRM- 285) is used to document the results of erosion inspections and record corrective actions identified during the inspection.

Two significant rainfall events each of approximately 35mm occurred in November. Erosion inspections were conducted and no significant erosion or drainage impediments were identified.

The TSF is not included as part of the site Stormwater Management Plan because all drainage, erosion and water catchment issues are dealt with through the TSF Operations Plan, dam engineers, surveyors and DSC surveillance reports. The TSF is monitored for structural erosion in the 3 - monthly compliance surveys, in addition to weekly monitoring and inspections after rainfall events exceeding 25 mm in a 24-hour period by the Ore Processing Superintendent. Furthermore, a general TSF inspection occurs twice per 12 - hour shift by Mill Operators.

Figure 8 - Site Catchments as per 2017 Golder Drainage Report.

3.4. Surface Water Monitoring CMPL undertake routine surface water monitoring to demonstrate compliance with the conditions of EPL1864 and to provide data to assess the efficacy of site water management practices. Surface water bodies in CML5 do not extend into adjacent land parcels and do not supply a purpose outside of the mining and milling activities at CSA. As CSA does not discharge contaminated water offsite, a number of surface water bodies serve as contaminated water receptacles. The nearest neighbouring water bodies are Yanda Creek 15km east of the TSF, and Buckwaroon Creek 40km south-west of CML5. Both of these water bodies are ephemeral in nature.

Surface water sampling is conducted as per the principles enunciated in the Standards Association of Australia AS/NZS 55567:1:1998. In lieu of baseline data or a reference water body, monitoring analytes are compared against the short-term trigger values for general water use stipulated in the Australian and New Zealand Environment and Conservation Council (ANZECC) Guidelines for Fresh and Marine Water Quality.

Table 24 - Adopted Surface Water Quality Guidelines.

ANZECC (2000) Guidelines for Irrigation and General Water Use pH 6-9 Electrical Conductivity (µS/cm) 7,700 Copper (mg/L) 5 Iron (mg/L) 10 Lead (mg/L) 5 Sulphates (mg/L) 1,000 Zinc (mg/L) 5

Water quality is monitored at 12 sites, briefly described in Table 25 and shown in Figure 9, on a bi- monthly basis when possible. Given the ephemeral nature of several of the water bodies, routine samples are often not practicable. As such, the monitoring program is supplemented by spontaneous sampling post rainfall whenever the opportunity presents. Sampling is conducted by a member of the Environment Department. A field analysis is performed to determine pH, and a sample sent to a NATA accredited laboratory Electrical Conductivity (EC), turbidity, Copper, Iron, Lead, Zinc and Sulphate content testing.

Table 25 - Surface Water Sampling Locations.

Sampling Location Nature S1 - Catch Dam North of Ephemeral drainage basin for the excised area Old CSA Spoils Little Mt Brown Contained & externally supplied via the Cobar S2 - 1ML Tank Water Storages

S4 - Borrow Pit Dam Primary site drainage basin

Sampling Location Nature

S5 - TSF Decant Dam STSF drainage basin

Ephemeral drainage basin adjacent the TSF access S8 - Railway Dam road Ephemeral drainage basin for the excised area Little S9 - Retention Basin Mt Brown Ephemeral drainage basin for the excised area Little S10 - North Runoff Dam Mt Brown S11 - STSF Stormwater Ephemeral drainage basin for the south-western Catchment outside embankment of the STSF. Ephemeral drainage basin for the excised area Little S13 - Western Runoff Dam Mt Brown

S14 - Pork Pie Dam Primary site process water storage facility

S15 - Old Mine North Dam Ephemeral rainwater basin

S16 - Old Mine South Dam Ephemeral rainwater basin

Samples collected from site S2 are taken directly from the 1ML Raw Water Tank, which is the store for the CSA Mine’s incoming external water. The CSA Mine has no control over the chemical properties of the incoming water, and therefore exceedances detected in these S2 samples are assumed to be the naturally occurring levels in the uncontaminated water supply. Additionally, S15 and S16 are classified as undisturbed catchments; therefore samples taken from these storages provide suitable baseline data for comparative analysis for other surface water catchments on site.

The 2018 surface water results are in line with the dams’ designated use (i.e. contaminated storages) and as such have elevated levels of copper, zinc and sulphates. Ongoing drought conditions throughout 2018 have allowed contaminants to become concentrated within storages with few dilution events. Consequently, many of the surface water results show values significantly greater than the ANZECC Guidelines. 2018 surface water monitoring is tabulated below and individual analyte exceedances are visualised in Figures 10 through 16.

Figure 9 - CSA Mine Surface Water Sampling Locations.

Table 26 - Surface Water Monitoring Results 2018.

Electrical Total Copper Total Iron Total Lead Sulphates Total Zinc Sampling Location Parameter pH Conductivity Turbidity (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (µS/cm) ANZEEC Guideline 6-9 7,700 5 10 5 1,000 5 100 Year 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 Average 3.4 3.8 1453 1390 12.8 10.5 3.7 N/R 0.0 0.1 859 676 54.3 53.6 5 2 S1 - Catch dam North of old CSA spoils (n = (± Std Dev) 0.2 N/A 251 N/A 2.2 N/A 1.5 N/A 0.0 N/A 200 N/A 9.2 N/A 6 N/A 1) Minimum 3.2 3.8 1140 1390 11.0 10.5 2.2 0.0 0.0 0.1 669 676 45.0 53.6 1 2 Maximum 3.6 3.8 1750 1390 15.9 10.5 5.2 0.0 0.1 0.1 1140 676 66.6 53.6 12 2 Average 8.1 8.4 997 480 0.0 0.9 2.0 0.3 0.0 0.0 13 25 0.3 0.6 7 2 (± Std Dev) 0.6 0.4 1401 51 0.0 1.7 2.5 0.5 0.1 0.0 6 3 0.5 1.1 1 1 S2 - Raw Water Tank (n = 4) Minimum 7.5 7.9 269 446 0.0 0.0 0.6 0.1 0.0 0.0 4 22 0.0 0.0 5 2 Maximum 8.9 8.8 3500 556 0.1 3.5 6.4 1.0 0.2 0.0 18 28 1.1 2.2 8 4 Average 7.2 7.6 3791 2318 0.8 2.4 0.8 0.8 0.0 0.0 707 916 1.7 3.2 9 21 (± Std Dev) 0.6 0.9 4028 1090 0.7 2.9 0.7 0.9 0.0 0.0 300 566 1.6 4.1 6 29 S4 - Borrow Pit Dam (n = 5) Minimum 6.5 6.2 847 730 0.1 0.6 0.1 0.1 0.0 0.0 278 268 0.5 0.3 3 4 Maximum 8.0 8.5 11800 3560 1.8 7.4 1.8 2.1 0.1 0.1 1090 1700 3.9 10.3 19 72 Average 7.4 7.9 4924 11767 0.5 0.2 0.5 0.7 0.0 0.0 2595 5010 0.1 0.1 5 3 (± Std Dev) 1.4 0.6 3735 3202 0.6 0.4 0.6 1.1 0.0 0.0 1547 1155 0.1 0.1 6 4 S5 - TSF Decant Dam (n = 3) Minimum 4.6 7.4 401 8500 0.1 0.0 0.1 0.1 0.0 0.0 887 3850 0.0 0.0 1 0 Maximum 8.2 8.5 10000 14900 1.4 0.6 1.4 2.0 0.0 0.0 4840 6160 0.4 0.2 15 8 Average 4.0 6.7 604 981 19.1 5.5 0.6 0.5 0.0 0.0 241 389 5.6 3.1 8 3 (± Std Dev) 0.3 1.9 66 201 7.6 5.6 0.8 0.4 0.0 0.0 69 145 1.7 3.6 13 1 S8 - Railway Dam (n = 3) Minimum 3.8 4.5 560 831 9.5 0.0 0.1 0.2 0.0 0.0 150 271 3.3 0.0 1 2 Maximum 4.4 8.0 680 1210 27.7 11.2 1.7 0.8 0.0 0.0 317 551 7.3 7.1 23 4 Average 3.9 4.1 572 699 0.7 1.9 0.7 N/R 0.7 0.5 280 350 13.3 16.8 3 1 (± Std Dev) 0.2 N/A 85 N/A 0.3 N/A 0.3 N/A 0.0 N/A 10 N/A 0.7 N/A N/A N/A S9 - Retention Basin (n = 1) Minimum 3.7 4.1 512 699 0.4 1.9 0.4 0.0 0.7 0.5 273 350 12.8 16.8 3 1 Maximum 4.0 4.1 632 699 0.9 1.9 0.9 0.0 0.7 0.5 287 350 13.8 16.8 3 1 Average 5.4 5.3 156 228 1.3 5.5 1.3 N/R 0.1 0.7 50 62 1.5 2.5 54 235 (± Std Dev) 0.0 N/A 36 N/A 0.6 5.6 0.6 N/A 0.1 N/A 16 N/A 0.6 N/A 17 N/A S10 - North Run off Dam (n = 1) Minimum 5.4 5.3 115 228 0.9 0.6 0.9 0.0 0.1 0.7 32 62 0.9 2.5 42 235 Maximum 5.4 5.3 180 228 2.0 0.6 2.0 0.0 0.2 0.7 60 62 2.1 2.5 66 235 Average 7.3 6.7 755 315 0.4 0.3 0.4 N/R 0.0 0.2 262 174 0.2 2.0 15 213 S11 - STSF Stormwater Catchment (± Std Dev) 0.4 N/A 275 N/A 0.5 N/A 0.5 N/A 0.0 N/A 96 N/A 0.2 N/A 28 N/A (n = 1) Minimum 6.7 6.7 316 315 0.1 0.3 0.1 0.0 0.0 0.2 117 174 0.0 2.0 0 213 Maximum 7.8 6.7 1030 315 1.2 0.3 1.2 0.0 0.0 0.2 376 174 0.5 2.0 57 213 Average 6.2 N/R 226 N/R 2.9 N/R 2.9 N/R 0.1 N/R 81 N/R 1.8 N/R 96 N/R (± Std Dev) 0.6 N/A 59 N/A 2.1 N/A 2.1 N/A 0.1 N/A 29 N/A 0.2 N/A 88 N/A S13 - Western Run-off Dam (n = 0) Minimum 5.6 0.0 178 0 0.5 0.0 0.5 0.0 0.0 0.0 52 0 1.7 0.0 34 0 Maximum 6.8 0.0 291 0 4.6 0.0 4.6 0.0 0.2 0.0 109 0 2.1 0.0 158 0 Average 7.5 7.8 2785 6635 0.3 0.3 0.3 0.2 0.0 0.0 815 2543 2.1 1.3 6 4 (± Std Dev) 0.5 0.3 811 2267 0.2 0.2 0.2 0.1 0.0 0.0 297 961 2.4 2.3 3 2 S14 - Pork Pie Dam (n = 4) Minimum 6.8 7.6 2150 4740 0.1 0.1 0.1 0.1 0.0 0.0 490 1600 0.2 0.1 4 2 Maximum 8.0 8.2 4360 9850 0.7 0.6 0.7 0.4 0.0 0.0 1370 3800 5.7 4.7 10 5 Average 6.8 7.1 35 52 1.9 0.0 1.9 5.9 0.0 0.0 1 2 0.1 0.1 82 232 S15 - Old Mine Water Dam (MPL 1093) (n = (± Std Dev) 0.3 0.8 4 25 0.7 0.0 0.7 N/A 0.0 0.0 0 1 0.0 0.0 N/A 93 2) Minimum 6.6 6.6 32 34 1.3 0.0 1.3 5.9 0.0 0.0 1 1 0.1 0.1 82 166 Maximum 7.0 7.7 37 70 2.4 0.0 2.4 5.9 0.0 0.0 1 2 0.1 0.1 82 297 Average 7.1 7.6 78 189 2.8 0.3 2.8 10.5 0.2 0.8 2 5 0.1 0.1 130 496 0.2 1.3 31 155 1.7 0.5 1.7 14.0 0.2 1.2 1 6 0.0 0.1 129 725 S16 - Old Mine water Dam (MPL 1094) (n = (± Std Dev) 3) Minimum 6.8 6.1 36 26 0.8 0.0 0.8 0.5 0.0 0.1 1 1 0.0 0.0 9 22 Maximum 7.4 8.8 110 334 4.8 0.9 4.8 20.4 0.6 2.2 4 12 0.1 0.3 250 1330 Notes: n represents the number of months sampled 2-monthly (samples unable to be taken when dam is dry, therefore n<6). Samples that were above guidelines are highlighted in red.

Figure 10 - 2018 Surface Water pH Sampling Results.

pH S1 S2 10 S4 9 S5 8 S8

7 S9

6 S10

5 S11

pH value pH S13 4 S14 3 S15 2 S16

1 ANZECC Upper Guideline 0 ANZECC Lower May July August October November Guideline

Figure 11 - 2018 Surface Water EC Sampling Results.

Electrical Conductivity S1

16000 S2

S4 14000

S5 12000 S8

10000 S9 S10 8000 S11

6000 S13

Electrical Electrical Conductivity(µS/cm) S14 4000 S15

2000 S16

ANZECC 0 Guidelines May July August October November

Figure 12 - 2018 Surface Water Copper Sampling Results.

Copper S1 S2 12 S4

10 S5

8 S9

S10 6 S11

TotalCopper (mg/L) S13 4 S14

2 S15 S16

0 ANZECC May July August October November Guidelines

Figure 13 - 2018 Surface Water Iron Sampling Results

Iron S1 25 S2 S4

S5 20 S8

S9 15 S10

S11 10

TotalIron (mg/L) S13

S14

5 S15

S16

0 ANZECC May July August October November Guidelines

Figure 14 - 2018 Surface Water Lead Sampling Results.

Lead S1 6 S2

S4 5 S5

4 S9

3 S10 S11

TotalLead (mg/L) 2 S13 S14

1 S15 S16

0 ANZECC Guidelines May July August October November

Figure 15 - 2018 Surface Water Sulphate Sampling Results.

Sulphates S1 S2 7000 S4

6000 S5

5000 S9

4000 S10

S11 3000

S13 TotalSulphates (mg/L) 2000 S14

1000 S15 S16 0 May July August October November ANZECC Guidelines

Figure 16 - 2018 Surface Water Zinc Sampling Results.

Zinc S1 60 S2 S4

50 S5 S8

40 S9

S10

30 S11

S13 TotalZinc (mg/L) 20 S14

S15 10 S16

ANZECC 0 Guidelines May July August October November

3.5. Ground Water Monitoring CMPL maintain and monitor 26 active standpipe piezometers, 9 vibrating wire piezometers, 20 monitoring bores and 2 production bores (Figures 17 and 18). Routine data collection from these sites is used to assess the integrity of the STSF wall, and to determine whether any underground seepage of contaminated water into natural areas and/or aquifers has occurred. Water levels are recorded monthly and water quality samples are taken by the Environment Department when required and/or available.

Groundwater sampling is conducted as per the principles enunciated in the Standards Association of Australia AS/NZS 55567:1:1998. Baseline groundwater quality data has not been recorded and is difficult to determine given the long history of tailings deposition and uncertainty regarding groundwater flow direction. Underlying fault sequences occurring in the proximity of the STSF pose a potential pathway for fluid migration over time. Contemporary seepage has been minimal and confined to the south-east corner of the STSF. Geochemical work indicates that historic tailings deposited in the STSF were potentially acid-forming (PAF) with elevated concentrations of leachable

metals (Cu, Pb, Zn, Cd) and sulphate which may be a source of contamination. Contemporary tailings deposition is generally found to be non-acid forming (NAF) with lower potential to leach metals.

Figure 17 depicts a cross-sectional drawing of the typical set up of standpipe piezometers at the CSA Mine. The locations of the piezometers are determined by dam engineers (Golder Associates) to provide complete coverage of the facility. Table 27 indicates the location of wet piezometers on the embankment wall or on ground level of the TSF.

Figure 17 - Cross Section of STSF Piezometer Setup.

Table 27 - STSF Piezometer locations on embankment walls or ground level.

Stage Piezometers Ground Level P8, P17, P33, P35 Original Wall P41, P43, P44, P45 Wall Raise 1 P7, P15, P26, P27, P38 Wall Raise 2 P14, P37 Wall Raise 3 P56, P57 Wall Raise 4 VWPs

There are no requirements from a dam safety perspective to sample water from standpipe piezometers; only the water level of piezometers needs to be measured for dam integrity purposes. 42

Measurement of water depth in standpipe piezometers was undertaken every 2 months in 2018. The frequency was modified from monthly to every second month following the installation of the VWP’s by Golder in February 2014.

Key piezometers have trigger points set by the CSA Mine consultant TSF Dam Engineers (Golder Associates) to comply with DSC requirements; if water levels within the standpipe piezometers reach this trigger point, it could indicate that the TSF embankments are not operating as designed and will need to be investigated to ensure the structure and integrity of the TSF is still intact. The trigger levels are based on a stability analysis undertaken for each successive STSF wall raise design and are displayed in Table 28. Since 2008, the majority of the 26 STSF standpipe piezometers have maintained relatively consistent water levels with only a select few sampling sites fluctuating over time.

Table 28 - 2018 Piezometer Monitoring Results.

Piezometer Bore Depth Trigger Depth Minimum Depth Recorded

P1 6.22 4.60 6.14 P5 12.60 4.40 12.56 P6 11.70 4.30 11.69 P7 8.60 4.40 6.38 P8 4.32 N/A 4.32 P9 11.20 4.20 11.08 P26 10.65 4.60 9.90 P27 7.85 4.30 7.85 P28 8.79 4.40 8.60 P33 25.00 N/A 23.00 P34 19.15 N/A 19.14 P35 22.00 2.00 10.84 P38 13.56 4.40 10.50 P41 8.70 6.00 9.21 P42 4.75 4.00 4.75 P43 10.50 6.00 4.30 P44 5.10 4.00 5.04 P45 10.20 6.00 9.58 P46 5.10 4.00 4.70 P51 4.15 2.00 4.15 P52 5.15 2.00 5.11 P53 10.15 6.00 10.14 P54 9.00 6.00 8.79

P55 10.23 6.00 10.22 P56 13.81 6.00 7.23 P57 11.07 6.00 3.33

CSA Mine’s Dam Engineers are immediately notified of any exceedance and are sent all data from the TSF phreatic surface monitoring for assessment of embankment stability. The engineers conduct a yearly surveillance report, providing comment on performance and maintenance issues. During 2018, dam engineers reported that there were no performance issues or breaches to do with the STSF and only minor erosion remediation works that needed to be carried out. In addition to the general TSF inspections that occur twice per 12-hour shift by mill operators, a permanent surveillance camera was installed on Stage 8 wall raise overlooking the STSF from the south in 2015. A snapshot of the STSF beach and causeway is taken at 1pm and downloaded every day for the purpose of remote surveillance and for the long term monitoring of potential water ponding adjacent to the decant dam ladder way.

There are three Groundwater Monitoring Bores (MB) located to the east of the STSF. These are MB1, MB2 and MB3, which have been installed to 92 m, 14.8 m and 54 m respectively. The locations for these sampling sites can be seen in Figure 18. These bores are installed on the down gradient of the TSF (the most likely seepage pathway) and are designed to provide data on the potential for TSF and groundwater interaction. During 2018, all three bores recorded progressive small increases in water level throughout the year.

Figure 18 - Groundwater Monitoring Network.

Figure 19 - Established Ground Water Bores and Exploration Prospects.

3.6. Contaminated Land Sites of contamination at the CSA Mine are primarily the result of elevated heavy metal concentrations above background levels, particularly lead, copper, zinc and aluminium. Contaminated sites exhibited a lower pH likely to prohibit the establishment of vegetation, as well as higher salinity levels, based on the background soil results. These exceedances were identified across the operational area, principally in historic areas of mine waste stockpiles.

Past contaminated land assessments have concluded that the elevated concentrations of metal contaminants in soil, as well as soil acidity and salinity, have the potential to significantly inhibit future rehabilitation efforts, especially in regards to meeting closure criteria. The measures implemented to improve the rehabilitation success of contaminated areas are discussed in Section 5.

The areas at the CSA Mine identified as exceeding the National Environmental Protection Measures (NEPM) and EPA assessment criteria are classified as contaminated, and surface disturbance works are restricted to ensure present contamination is not mobilised and does not pose a risk to human and environmental health. In addition to this, the CSA Mine Surface Water Management Plan prevents offsite discharge of surface water to local surface water bodies, further reducing the risk of offsite impact.

Reference sites not impacted by mining activities will continue to be sampled throughout operations in order to capture local baseline conditions and the level of contamination within operational areas of the site. Data on the nature and level of contamination will assist in defining the requirements for progressive rehabilitation to meet performance and closure criteria set out in the CSA Mines Rehabilitation Monitoring Methodology and Determination of Completion Criteria for Rehabilitation Ecosystems report.

The excised areas, although classified as contaminated areas, are not part of CML5 and the CSA Mine has no operational control over these areas. Therefore, these areas are not assessed or managed by the CSA Mine.

The last contamination assessment was conducted in 2013, and as no new disturbance or contamination activities were conducted in 2018, a full site assessment was not deemed necessary for 2018.

3.7. Threatened Flora The 2012 Biodiversity Assessment found 197 flora species presently or previously recorded within CML5 and concluded the area has high floral diversity. Six Biometric vegetation communities were identified as occurring at the site, including:

- Gum Coolabah woodland on sedimentary substrates mainly in the Cobar Peneplain Bioregion; - Gum Coolabah - Mulga open woodland on gravel ridges of the Cobar Peneplain Bioregion; - Poplar Box - Gum Coolabah and White Cypress Pine Shrubby Woodland mainly in the Cobar Peneplain Bioregion; - Mallee - Gum Coolabah woodland on red earth flats of the eastern Cobar Peneplain Bioregion; - Green Mallee - White Cypress Pine very tall mallee woodland on gravel rises mainly in the Cobar Peneplain Bioregion; - Derived mixed shrubland on loamy-clay soils in the Cobar Peneplain Bioregion; and - Cleared/developed land (Non-native vegetation).

None of these vegetation communities are representative of an Endangered Ecological Community (EEC) listed under the Threatened Species Conservation Act 1995 (TSC Act) or the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). However, two vegetation communities present within the study area are likely to be of conservation significance. According to Benson et al. (2006), ‘Popular Box-Gum Coolabah and White Cypress Shrubby Woodland’ is considered ‘near threatened’ while ‘Mallee-Gum Coolabah Woodland’ is considered ‘vulnerable’. Both communities are threatened by inappropriate fire regimes, clearing, grazing by stock and goats, woody weed invasion (likely a result of changes to grazing and fire regimes) and sheet erosion.

No threatened flora species as listed by the TSC Act or the EPBC Act were detected on CML5 during the 1999, 2006 or 2012 biodiversity assessments.

Several factors relating to vegetation condition and disturbance were identified during the 2012 study, these being overgrazing, and alterations to fire regimes, weeds, previous timber harvesting and seasonal variations.

Workers of the CSA Mine undertaking surface exploration activities are provided with information to allow them to recognise relevant flora and fauna species. All proposed drill sites, roads and tracks are inspected by a member of the Environment Department prior to any exploration activity taking 48

place. The inspections include an assessment of potential risks to flora, fauna and cultural heritage. The CSA Mine employees and contractors are instructed to notify the Environment Team of the presence of any species or sites of potential importance so that they may be further examined and appropriate controls or actions put in place. Details of the inspection are documented including the location and any identified species. The appropriate department is then notified of any follow up and management conditions required. If exploration personnel have any doubt they are instructed not to proceed with the exploration activities until clearance is received.

3.8. Threatened Fauna A total of 160 fauna species have been identified within CML5 during the 2006 and 2012 biodiversity surveys, comprising of: 110 bird species; 20 reptile species; 3 frog species, 15 mammal species and 12 bat species.

Nine threatened fauna species and one migratory fauna species listed under TSC Act and EPBC Act were detected within CML5 during the 2012 Biodiversity Assessment, including: - Chestnut Quail Thrush (Cinclosoma castanotum) listed as Vulnerable under TSC Act; - Grey-crowned Babbler (Pomatostomus temporalis temporalis) listed as Vulnerable under TSC Act; - Hooded Robin (Melanodryas cucullata cucullata) listed as Vulnerable under TSC Act; - Little Eagle (Hieraaetus morphnoides) listed as Vulnerable under TSC Act; - Pink Cockatoo (Lophochroa leadbeateri) listed as Vulnerable under TSC Act; - Varied Sittella (Daphoenositta chrysoptera) listed as Vulnerable under TSC Act; - Little Pied Bat (Chalinolobus picatus) listed as Vulnerable under TSC Act; - Yellow-bellied Sheathtail Bat (Saccolaimus flaviventris) listed as Vulnerable under TSC Act; - Inland Forest Bat (Vespadelus baverstocki) listed as Vulnerable under TSC Act; and - Rainbow Bee-eater (Merops ornatus) listed as Migratory under EPBC Act.

Six key threatening processes listed under the TSC or EPBC Acts which could threaten (or potentially threaten) the survival or evolutionary development of a species, population or ecological community, have been identified as relevant to CML5. These include: - Competition and habitat degradation by Feral Goats; - Removal of dead wood and dead trees; - Clearing of Native Vegetation; - Predation by European Red Fox; - Predation by Feral Cats; - Predation and hybridisation by feral dogs. 49

The CSA Mine’s environmental objectives aim to ensure the clearing of native vegetation is minimised where possible. The mine understands the value of connectivity and is fortunate to be within the Cobar Peneplain Bioregion, which is the most extensive woodland community to remain in western NSW.

3.9. Weeds During the 2012 Biodiversity Assessment, nine noxious or environmental weeds were identified within the study area: • Onion Weed (Asphodelus fistulosus), intermittent along bitumen road and railway line. • Patterson's Curse (Echium plantagineum), intermittent along bitumen road and railway line. • Bathurst Burr (Xanthium spinosum), found downslope of straw mulch in rehabilitation area and at old house estate. • Fierce Thornapple (Datura ferox), found downslope of straw mulch in rehabilitation area and at old housing estate. • Century Plant (Agave americana), found at old housing estate. • Aloe (Aloe sp.), found at old housing estate. • Prickly Pear (Opuntia stricta), found at old housing estate. • Saffron Thistle (Carthamus lanatus) and Spear Thistle (Cirsium vulgare), occasional around perimeter of mine facility and highly disturbed areas such as tanks.

Exotic flora species are generally only present in developed areas (e.g. bitumen roadsides, railway easement, some parts of the electricity transmission easements, farm dams, and in/around the mine facility.

In previous years, the Cobar Shire Council (CSC) Weeds Officer has conducted annual Noxious Weeds Inspections of the CSA Mine site. The Noxious Weeds Inspection focuses on the most likely locations for weed establishment including topsoil stockpiles and newly disturbed areas. In previous years, there have been issues with Prickly Pear infestations; however, due to its successful control in 2013, it has no longer been an issue. In 2014, the CSC Weeds Officer reported that the CSA Mine-owned property, Red Tank, has been compliant with Local, State and Federal statutory requirements in regards to the control of listed noxious weeds and deemed the area as low risk.

The Environmental and Exploration Personnel are trained in the identification and reporting of noxious weeds. In late 2017, the poisonous plant green cestrum (Cestrum parqui) was identified on site and reported to Cobar Shire Council. 50

Competition, grazing and predation by feral animals on the CML5 lease are addressed in the CSA Mine Pest Animal Management Plan. This management plan was first implemented in 2007 and was last updated in 2012. This management plan will continue to be implemented in the future in order to keep identified feral animals under control.

A new contractor was commissioned in 2017 to remove feral goats from site. Throughout 2018, a total of 98 goats were removed from the CSA Mine. The reduction in feral goat numbers is considered to be a product of ongoing drought conditions and the concurrent reduction in suitable forage. When goats are removed from site, they are recorded through a Livestock Production Assurance National Vendor Declaration (NVD). A goat cannot be sold without an NVD, which is used to document numbers and locations of goats harvested, provide assurance landholder access was granted and more importantly, to declare information about the food safety status of the livestock. This compulsory process is managed by Meat and Livestock Australia (MLA).

3.10. Blasting All blasting is confined to the underground mine workings at a depth greater than 1.6km. The mining method adopted at the CSA Mine uses bulk emulsion for production firings and ANFO, initiated by the use of electronic detonation, for development firings. Less than 500kg of explosives are consumed per charge. While this method remains in use, no surface monitoring for vibration is required.

3.11. Operational Noise Blasting and crushing are the two noisiest operations at the CSA Mine site. Both occur more than 700m underground and are not audible at the surface. The grinding circuit, adjacent to the concentrator, is the loudest operation on the mines surface. Various pieces of mobile plant equipment are occasionally used for surface projects, such as for STSF construction works. Such surface activities are typical operations of a mine site, and thus do not require noise monitoring. The distance of the CSA Mine site from the township of Cobar (11 km) and from residential properties on surrounding land (minimum 3km) contributes to a lack of operational noise complaints.

3.12. Visual, Stray Light Stray light pollution does not impact on surrounding neighbours due to lighted areas on surface being restricted to a small operational area, and the location of the mine being over 3km from the nearest residence and 11km from the township of Cobar. The CSA Mine has never received a complaint in regard to light, and as such has no need to amend current practices.

3.13. Aboriginal Heritage The CSA Mine is located on the traditional homelands of the Ngiyampaa people. This land is of cultural, economic and spiritual importance to the Ngiyampaa people, and many Elders still hold a deep interest in cultural matters. Any potential disturbance is therefore carefully considered and agreed upon by all relevant parties prior to works commencing.

The CSA Mine is committed to maintaining good relations with all external stakeholders. Any Aboriginal archaeological finds, artefacts or information concerning aboriginal sites that are passed on to the company are appropriately handled and reported to the Office of Environment and Heritage (OEH) as soon as practicable. No Aboriginal place, object or relic is to be disturbed or damaged without the consent or authorisation of the OEH.

3.14. Natural Heritage Heritage items within CML5 are managed according to the relevant legislation and guidelines, namely the three pieces of legislation governing the conservation of environmental heritage in NSW: the National Parks and Wildlife Act 1974, the Heritage Act 1977, and the Environmental Planning and Assessment Act 1979. Any heritage assessments required will be conducted in line with the CSC Local Environmental Plan (LEP).

There are no identified species, habitats or ecosystems within CML5 that require particular attention, or management, concerning natural heritage. No significant geological and physiographical features have been identified on sites that are not common throughout the district.

European heritage sites on CML5 include:  Mining quarters  “Eloura”  The CSA Mine Power House

3.14.1. Mining Quarters The site of a miner’s quarters (old housing estate) which was erected in the 1960s is located on CML5 approximately 400m south-west of the administration building. The site once contained five houses and one swimming pool; these were removed after mine closure in 1998. The only remaining remnants are the bitumen road, some cleared areas with stockpiles of topsoil, and some garden beds that continue to grow exotic garden species.

3.14.2. “Eloura” The “Eloura” site is located 1.5km from the CSA Mine site. This area shows remnants of old rock gardens and buildings. It is understood that most of the older buildings were removed during mine upgrades in the 1950s and 1960s. There are some remains of human settlement, including scattered broken glass, ceramics, tin and some intact ornate brick and rock garden beds. The uppermost corner of the site is located within CML5; however, the majority of the site is on the property ‘Gattaca’ on land not owned or managed by the CSA Mine.

3.14.3. The CSA Mine Power House The CSA Mine powerhouse contains five HSF8 Mirrlees diesel engines, manufactured in 1951 by Mirrlees, Bickerton and Day in Stockport, England. These engines provided the main power supply for the CSA Mine from the early 1960s, when they were relocated to Cobar from Kempsey, until Cobar was connected to the State power grid in 1966. The five engines represent excellent examples of medium sized stationary engines of the mid-20th century and combined with the brush alternators they are an increasingly rare example of turbocharged technology fitted to diesel engines, a technology previously used to provide power in rural Australia. The powerhouse building and engines are not listed on any statutory heritage registers (NSW State Heritage Register, CSC LEP or the Commonwealth Heritage List).

3.15. Spontaneous Combustion History has shown that there are no items that pose a high direct risk of spontaneous combustion at the CSA Mine. Two minor incidents have been recorded since reopening the CSA Mine in 1999. Both incidents occurred on surface and involved smouldering Cu concentrate at the mill. Mineralogical assessment of the concentrate at the time failed to identify any contributing factors for these incidents. Whilst some of the CSA Mine Cu concentrate has shown signs of spontaneous combustion, it is considered a minor risk, and has not occurred on site in a number of years. Spontaneous combustion is easily prevented by regular hosing down, clean-up and stockpile management including stock rotation.

3.16. Bushfire No fires have been recorded on site in the past and as a result of the prolonged drought and minimal groundcover, the current threat is quite low. To reduce the risk of fire, firebreaks are maintained around the perimeter of the operational and infrastructure areas. No open fires are permitted on site for land clearing or fire breaks, except in accordance with a bush fire hazard reduction certificate

issued by local council. All total fire bans are observed. Hot work permits are mandatory on site for all work performed outside workshops (and other designated areas) that could generate a flame, fire, heat or sparks. This could include (but is not limited to) welding, soldering, thermal cutting/heating, grinding, use of electric power tools or lighting fires.

All on site staff are inducted and educated on the dangers of fire. They are trained in the location and correct use of fire extinguishers and hydrants in their work areas. The Cobar Rural Fire Brigade is situated on the north side of town and can be at the CSA Mine site within 15 minutes to respond to any surface vegetation fires. The CSA Mines Rescue Team is equipped and trained to assist in the event of bushfires on or near the mining lease.

3.17. Mine Subsidence The CSA Mine subsidence zone is located over 1km from the current stoping and development activities. The activity in the identified subsidence zone occurred prior to the CSA Mine’s current operation of the mine; hence the area is excised from the mining lease. It is very unlikely that there will be another failure through to the surface due to the current mining operation being significantly deeper in the mine and much more advanced in the mining technique and ground support used today. The only open void of concern is located underground at 4 Level (9860 RL) just off the main decline. This underground stope has been open for approximately 20 years and is monitored periodically. There have been no changes to the void recorded during the past 10 years.

The current backfilling method is a combination of CPB, CRF and waste rock fill (WRF). The method is to fill all voids created by stope extraction. Stope voids which are going to be exposed again by the stope extraction activities adjacent to them are filled by placing an engineered plug or beam of material, generally 10-15m high, of a strength suitable to support exposure again, currently 11% CPB and then filling the remaining void with 4% CPB. If only one side of the stope void is to be exposed by the next stope then WRF or CRF can be placed in the non-exposed side of the void creating what is termed co-disposal. Stope voids that are not going to be exposed are filled with a CPB ‘plug’ followed by WRF. The top down mining method used at the CSA Mine requires that a CPB ‘plug’ be placed at the bottom of stope voids to allow development back through the bottom of the stopes for the extraction of the stopes below. If there are no stopes planned below a stope void then the void is completely WRF.

Given these backfilling methods, it is considered that the likelihood of any underground voids undergoing an uncontrolled failure and propagating to the surface is extremely unlikely.

3.18. Hydrocarbon Contamination Hydrocarbon storage, handling and disposal are carried out in accordance with the CSA Mine Chemical and Hydrocarbon Storage and Disposal Procedure (PRO-159) developed in compliance with all relevant Dangerous Goods legislation, WorkCover Codes of Practice, and applicable Australian Standards.

Spill kits are available at various locations around the site, and staff and contractors are trained in the use of such kits during site inductions. Hydrocarbon contaminated soils are removed and disposed of in the STSF.

During 2018, five events involved a spillage of hydrocarbons. Each spill event was attended by the Environment Department and deemed insignificant before being ameliorated. Monthly inspections of all hydrocarbon areas are conducted to ensure that storage and handling of hydrocarbons is done in line with legislation and site approvals.

3.19. Methane Drainage/Ventilation Deep exploration and infill diamond drilling within the underground mine occasionally encounters a flammable gas mixture comprising hydrogen (approximately 75%) and methane (approximately 25%). Such occurrences are occasional, short term (hours to several days) and of a small magnitude. Gas levels are generally undetectable or at trace levels when measured in the exhaust airway. The very minimal amounts of gas that may occur in the mine are released, with all other underground air exhausted, via the Main Return Air Ways (RAW) on surface Return Air Rise (RAR) RAR #1 and RAR#2. These releases are highly unlikely to have any reportable detrimental effect on the environment, if any at all, due to the minuscule levels encountered and the dilution of any contaminants with the surface air mass.

All localised and short-term safety implications at the CSA Mine site are managed as per the CSA Mine Underground Flammable Gas Management Plan (MHP-003) under the guidance of the mine Ventilation Control Plan.

Ventilation in the underground mine is managed through the Mine Ventilation System. This system circulates fresh air through the underground workings in order to:  Supply breathable, oxygenated air to underground personnel and active work areas;  Remove dust, fumes, toxic and flammable gases from the underground environment (through return airways) and;

 Cool working areas by exhausting heat generated by the surrounding rock mass and diesel equipment. 3.20. Public Safety The CSA Mine site is clearly signposted on the main access road and is fenced to prevent accidental entry. The main entry area is subject to high security gates and an electronic tag entry system. The CSA Mine ensures no activities permitted on the lease interfere with or damage fences and that all gates within the lease areas are closed or left open in accordance with the requirements of the landholder. The boundary fences are signposted and monitored regularly for damage or any sign of intrusion.

All persons entering the site must undergo a site induction. Employees and contractors complete (at a minimum) a general surface induction, with additional inductions also completed for specific work areas (e.g. underground). All visitors, delivery drivers or short-term contractors are inducted through the CSA Mine visitor induction program. They are required to conform to site PPE requirements and are accompanied on site at all times by a fully inducted representative.

3.21. Other Issues and Risks CMPL maintain a detailed internal incident database for the recording of all incidents reported on site. All workers and contractors are trained in incident reporting as part of the site induction program. An online event report is submitted following any environmental incident, personal injury, property loss or damage, hazards and near misses. The degree of reporting undertaken by the CSA Mine is much greater than is statutorily required, and the general culture at the CSA Mine is a preference to reporting everything over under reporting. The majority of environmental incidents generally involve leaks and spills, which are reported regardless of whether they are contained in a bund or not, and regardless of the volume or type of material spilt (e.g. tailings, process water, and backfill).

4. COMMUNITY RELATIONS The CSA Mine is an owner-operated mine currently employing 367 permanent staff (including apprentices) and on average 236 contractors. The mine operates on a 24-hour basis, 365 days a year. The majority of underground and mill workers do shift work on a seven-on seven-off roster system, whilst day staff (management, administration and site services) work 5 days per week. The bulk of the CSA Mine workforce lives within the Cobar Township, contributing a considerable flow on economic benefit to the local community and local economy.

Four new apprentices are due to start in 2019. In addition to this program, the CSA Mine also hosts visitors from several universities for vocational work experience and major projects; during 2018, eight students were employed at the CSA Mine.

4.1. Environmental Complaints In compliance with the CSA Mine’s EPL conditions, the CSA Mine maintains a 24-hour telephone pollution complaints line through the CSA Mine reception switchboard. The phone number is advertised to the local community via the local newspapers and the White Pages. All environmental complaints are directed to the Health, Safety, Environment & Training Team, and are recorded as per the CSA Mine Environmental Complaints Procedure and Record Form. No complaints were received from the public during 2018.

4.2. Community Liaison Community support is essential in maintaining the CSA Mine’s future operations in Cobar. The CSA Mine regularly communicates its operational plans to the local community. This is undertaken through:

 Ongoing liaison with Cobar Shire Council (CSC);  Providing open and honest feedback to the workforce and contracting companies;  Local newspaper media releases; and  Involvement with key community groups and projects.

4.2.1. Clean Up Australia Day The CSA Mine participated in the Business Clean Up Australia Day for the 11th consecutive year on the 25th May 2018 by hosting a site wide clean up at the CSA Mine. A total of 19 employees volunteered to spend 4 hours cleaning the entire length of the CSA Mine Access Road and carrying out an extensive site clean-up. 17 large bags of recycling and 34 bags of general rubbish were filled.

4.2.2. Community Contributions CMPL contributed $129,600.00 to the local economy over the 2018 period through awarding employees with Cobar Quids to be spent as part of our Rewards and Recognition program. CMPL contributed an additional $50,228.19 in donations during 2018; the recipients are listed in Table 28.

Table 29 - 2018 Community Donations.

Local Community Sporting Organisations Charities Local Schools Groups  Cobar Shire  Cobar Athletics and  Do It For Cancer  Outback Science  Cobar Miners Race Triathlon Squad  National Breast and Engineering Club  Hot Shots Netball Cancer Challenge  Cobar Show Team Foundation  Cobar Public Society  Cobar Rodeo  Psych’s on Bikes School  Intermine Golf Committee  A Night For Our Challenge  Cobar Clay Targets Famers

Other  NSW Mines Rescue Challenge

5. REHABILITATION The CSA Mining Lease conditions require land disturbed by mining activities to be rehabilitated to a stable and permanent form which is compatible with the surrounding landscape and suitable for future land use requirements. In the following sections, rehabilitation refers to disturbed areas that are undergoing works to improve landform, biodiversity and ecosystem function. Rehabilitation work usually involves bulk earthworks, such as reshaping and contouring, removal of contamination, soil remediation, seeding, and provision of groundcover/erosion control. Maintenance refers to ongoing works to preserve previously rehabilitated areas, such as weeding, additional seeding, ongoing soil remediation and the provision of groundcover.

The total area of the CML5 Mining Lease is 2,474 ha, with approximately 314 ha of this subject to disturbance associated with the CSA Mine surface operations. Of the 314 ha of site disturbance area, 143 ha is excised from the lease, leaving approximate ly 171 ha of land requiring rehabilitation by the CSA Mine prior to mine closure.

The CSA Mine is currently in the operational stage of mining, with most surface disturbance already having taken place and the mine in steady production. All expansion and upgrade works that occurred in 2018 were within the existing operational footprint. Figure 23 shows all existing rehabilitation and reference areas across the CSA Mine site and Plan 3 displays planned rehabilitation areas.

A summary of rehabilitation works to date at the CSA Mine is depicted in table 30.

Table 30 - Rehabilitation Summary.

Area Affected/Rehabilitated (hectares)

Last Report To Date Next Reported

A: Mine Lease Area (Estimate)

A1 Mine Lease(s) Area 2474.1

B: Disturbed Areas

B1 Infrastructure Area 43 66.1 72.7

B2 Active Mining Area 0 0 0

B3 Waste Emplacements 0 0 0

B4 Tailings Emplacements 87 104.9 104.9

B5 Shaped Waste Emplacements 0 0 0

All Disturbed Areas 130 171 177.6

C: Rehabilitation Progress

C1 Total Rehabilitated Area (excluding 16.5 16.5 19.5 maintenance) D: Rehabilitation on Slopes

D1 10 to 18 Degrees 12.5 12.5 13.5

D2 Greater than 18 Degrees 4 4 6

E: Surface of Rehabilitated Land

E1 Pasture and Grasses 16.5 16.5 19.5

E2 Native Forest/Ecosystems 0 0 0

E3 Plantations and Crops 0 0 0

E4 Other 0 0 0

5.1. Buildings No buildings were rehabilitated during the reporting period. 5.2. Rehabilitation of Disturbed Land Disturbance at the CSA Mine is directly related to ongoing mining activities. As a result, no significant rehabilitation of disturbed land is possible until mine closure. Smaller sections of disturbed land including: Little Mount Brown (LMB), CSA Over subsidence (OS), the CSA Mill and the STSF areas shown in Figure 23, have been progressively rehabilitated as they became available. Rehabilitation

progress on these areas is summarised in sections 5.2.1 to 5.2.4. Due to ongoing drought conditions throughout the 2018 period there was a noticeable decline in vegetation and groundcover in the rehabilitation sites.

5.2.1. Little Mount Brown and Over Subsidence Past rehabilitation works in this area have created a stable water shedding area that minimises surface erosion. Previous attempts at seeding and planting have had limited success because of historic contamination and heavy grazing by feral goats, which has resulted in the area having limited ecosystem development. In order to mitigate the impacts of grazing on rehabilitation efforts, over 2 km of exclusion fencing was established in 2015. The combination of soil amelioration, green waste and fencing has had positive outcomes for this rehabilitation site, with vegetation establishment beginning to increase.

No additional rehabilitation works were carried out within the LMB rehabilitation area in 2018. Over the 2018 period a number of shrubs on the upper bank have died and the remainder are demonstrating symptoms of heat and water stress. Detritus had largely been decomposed and there was little observable organic ground cover.

Figure 20 - Little Mount Brown Rehabilitation Monitoring.

2017 Photo Point 2018 Photo Point

5.2.2. Mill Rehabilitation Monitoring carried out within the Mill Rehabilitation area as part of the CSA Mine’s Rehabilitation Program Report in 2014 identified that the major impacts for the establishment of vegetation were soil contamination and water availability. Targeted, subsequent rehabilitation efforts have largely neutralised the soil and vegetation establishment has been observed. In 2018, the area was 60

continually irrigated and a small quantity of native seed was spread. A number of shrubs have died due to ongoing drought conditions and symptoms of heat and water stress was observed in others. Detritus had accumulated in depressions and a moderate cryptogam cover had established.

Figure 21 - Mill Rehabilitation Monitoring.

2017 Photo Point 2018 Photo Point

5.2.3. South Tailing Storage Facility (STSF) The closure criteria for the STSF batters require a 3:1 slope design and a dressing of top soil and green waste. Current closure land form drainage will not consist of any swale drains or down structures, as past experience has identified that these structures concentrate water flow into a single area, which in turn has downstream effects at the batter embankment toe. Instead CSA will adopt a store and release type structure, which will contain rainfall in situ, resulting in minimal overflow as a natural landform. Additionally, the green waste applied to the surface of the batters will provide erosion and sediment control buffers. Another control, if deemed necessary, will be the addition of lime or gypsum to any soils that are identified as dispersive. This treatment has previously been trialled in other rehabilitation areas including Little Mount Brown (LMB) and the Mill rehabilitation areas, with positive results.

No additional rehabilitation works were carried out within the STSF rehabilitation area in 2018. As in other rehabilitation areas many shrubs have died on the upper banks and others are exhibiting signs of heat and water stress. Detritus has largely been decomposed leaving little observable organic ground cover.

Figure 22 - STSF Rehabilitation Monitoring.

2017 Photo Point 2018 Photo Point

5.2.4. Big Mount Brown Since the stockpile removal at Mt Brown in 2013, no other action or activities have taken place. The material removed in 2013 was used as construction fill for the internal causeway of the STSF. The TSF is a completely bunded area, where all runoff is captured and contained.

Further detail on all rehabilitation sites can be found in Table 31.

Figure 23 - Current Rehabilitation Areas.

5.3. Other Infrastructure During 2018 ongoing works were undertaken to maintain and improve bunding and exclusion fencing. 5.4. Rehabilitation Trials and Research The annual CSA Mine Land Function Analysis (LFA) Trial was conducted during 2018 by DnA Environmental consultants to continue with the rehabilitation monitoring designed to provide quantified data from rehabilitation and reference sites. The data is used to assess rehabilitation outcomes, and to measure compliance with the CSA Mine Rehabilitation Monitoring Methodology and Determination of Completion Criteria for Rehabilitation Ecosystems report. The main objective of the annual rehabilitation monitoring program is to assess the progress of rehabilitated landforms towards fulfilling long-term land use objectives by comparing a selection of ecological targets or completion criteria against unmined areas of remnant vegetation (reference sites) that are representative of the final land use and vegetation assemblage.

In 2017 three new woodland reference sites were established within relatively undisturbed areas of CMPL owned lands, in an attempt to measure natural variations across the landscape. The sites were located in areas unlikely to be disturbed or impacted on by future mining activities and were situated near main access tracks or roads. All remnant vegetation and subsequent reference sites have been subjected to some form of historic disturbance, in particular clearing, over grazing, erosion and “woody weed invasion”.

A Property Vegetation Plan (PVP) has also been in place at CSA Mine since 2015. The PVP involves the selective clearing of ~40ha of invasive native species (INS) to encourage floristic diversity. The PVP areas are included in the annual rehabilitation monitoring plan to determine the efficacy of selective clearing as a rehabilitation strategy.

The location of all rehabilitation sites, reference sites and PVP sites is displayed in Figure 24.

Results of the 2018 LFA Rehabilitation Monitoring are displayed in Table 31. This table highlights 14 Key Performance Indicators (KPI’s) to determine the success of rehabilitation conducted on site and assess if a rehabilitation site has successfully met the desired KPI targets or not. The complete LFA Rehabilitation Monitoring Report for 2018 is provided in Appendix E and can be referred to for further detail on the rehabilitation monitoring methodology used and the determination of completion criteria for rehabilitated ecosystems.

Figure 24 - Rehabilitation Reference Sites.

Table 31 - LFA Results 2018.

Aspect or Unit of Box Woodland Rehabilitation Completion Performance Primary Performance Indicators ecosystem measurement ecosystem KPI Mill 2 TSF OS PVP1 PVP2 PVP3 Phase criteria Indicators Description component (desirable) range 2018

Performance indicators are quantified by the range of values obtained from replicated reference sites in 2018 Lower Upper 2018 2018 2018 2018 2018 2018 Phase 2: Landform Landform suitable for Landform slope, final landuse and Landform is generally compatible establishment gradient generally compatible Slope within the context of the local Degrees (<14°) 1 2 2 10 7 1 0 0 and stability with surrounding topography. topography Active Areas of active Provides an assessment of the extent Cross- erosion erosion are limited of soil loss due to gully and rill sectional area m2 0 0 0 0 0 0 0 0 erosion and that it is limited and/or is of rills stabilising Phase 3: Soil Soil properties are pH is typical of that of the Growth chemical, suitable for the surrounding landscape or falls within pH pH (5.6-7.3) 5.4 7.0 6.8 7.7 3.8 5.4 5.2 5.6 medium physical establishment and desirable ranges provided by the development properties maintenance of agricultural industry and selected vegetation Organic Carbon levels are typical of amelioration species that of the surrounding landscape, Organic increasing or fall within desirable % (>4.5) 1.6 2.3 4.8 2.0 2.0 3.7 1.6 2.1 Matter ranges provided by the agricultural industry Available Phosphorus is typical of that of the surrounding landscape or Phosphorous mg/kg (50) 7.9 12.1 249.3 6.6 7.5 11.8 12.5 13.1 fall within desirable ranges provided by the agricultural industry

Phase 4: Landscape Landform is stable LFA stability index provides an Ecosystem & Function and performing as it indication of the sites stability and Landuse Analysis was designed to do LFA Stability that it is comparable to or trending % 61.6 66.3 54.7 56.4 52.7 53 53.6 56.2 Establishment (LFA): towards that of the local remnant Landform vegetation stability and The Landscape Organisation Index organisation provides a measure of the ability of LFA Landscape the site to retain resources and that % 83 100 56 47 49 0 17 15 organisation it is comparable to that of the local remnant vegetation Vegetation Vegetation contains a The diversity of shrubs and juvenile diversity diversity of species trees with a stem diameter <5cm is species/area 5 12 14 11 7 6 1 4 comparable to that comparable to that of the local of the local remnant remnant vegetation. Diversity of vegetation The percentage of shrubs and shrubs and juvenile trees with a stem diameter juvenile trees <5cm dbh which are local endemic % population 100 100 100 100 100 100 100 100 species and these percentages are comparable to the local remnant vegetation The total number of live exotic plant species provides an indication of the Exotic species exotic plant diversity of the site and

Vegetation Vegetation contains a The density of shrubs or juvenile density density of species Density of trees with a stem diameter < 5cm is comparable to that shrubs and No./area 84 125 330 198 15 17 11 90 comparable to that of the local of the local remnant juvenile trees remnant vegetation vegetation Ecosystem The vegetation is The number of tree species composition comprised by a range regardless of age comprising the of growth forms Trees vegetation community is comparable No./area 2 4 2 2 1 1 1 1 comparable to that to that of the local remnant of the local remnant vegetation vegetation The number of shrub species regardless of age comprising the Shrubs vegetation community is comparable No./area 7 12 12 9 7 5 1 5 to that of the local remnant vegetation The number of herbs or forb species comprising the vegetation Herbs No./area 0 0 4 3 1 3 1 4 community is comparable to that of the local remnant vegetation The number of grass species comprising the vegetation Grass No./area 0 0 1 1 1 2 1 2 community is comparable to that of the local remnant vegetation

Phase 5: Landscape Landform is LFA infiltration index provides an Ecosystem & Function ecologically indication of the sites infiltration Landuse Analysis functional and LFA Infiltration capacity and is comparable to or % 23.3 29.9 30.5 29.2 23 20.1 17.5 21.2 Sustainability (LFA): performing as it was trending towards that of the local Landform designed to do remnant vegetation function and LFA nutrient recycling index provides ecological an indication of the sites ability to LFA Nutrient performance recycle nutrient and that it is % 25 31.9 24.1 26 20.2 18.6 18.4 20.9 recycling comparable to or trending towards that of the local remnant vegetation Protective Ground layer Percent ground cover provided by Perennial ground contains protective live perennial vegetation (<0.5m in plant cover (< % 0 0 4 1.5 0 0 0 0.5 cover ground cover and height) is comparable to that of the 0.5m) habitat structure local remnant vegetation comparable with the Total groundcover is the sum of local remnant protective ground cover components Total Ground vegetation (as described above) and that it is % 89 93.5 53 61 75 34.5 30 49 Cover comparable to that of the local remnant vegetation Native Native ground cover Percent The percent ground cover abundance ground abundance is ground cover of native species (<0.5m in height) cover comparable to that provided by compared to exotic species is % 0 100 100 100 100 0 100 100 abundance of the local remnant native comparable to that of the local vegetation vegetation remnant vegetation <0.5m tall

Ecosystem The vegetation is The number of shrubs or juvenile growth and maturing and/or trees less than 0.5m in height shrubs and natural natural recruitment provides an indication of juvenile trees recruitment is occurring at rates establishment success and/or natural No./area 9 52 192 65 8 6 1 24 0 - 0.5m in similar to those of ecosystem recruitment and that it is height the local remnant comparable to that of the local vegetation remnant vegetation The number of shrubs or juvenile trees >2m in height provides an shrubs and indication of establishment success, juvenile trees growth and/or natural ecosystem No./area 2 35 10 1 0 0 0 0 >2m in height recruitment and that it is comparable to that of the local remnant vegetation Ecosystem The vegetation is Projected foliage cover provided by structure developing vertical perennial plants in the 0.5 - 2m structure and Foliage cover vertical height stratum indicates the complexity % cover 7 12 4 10 3 0 0 0 0.5 - 2 m community structure is comparable comparable to that to that of the local remnant of the local remnant vegetation vegetation Tree Vegetation contains a The percentage of maturing trees diversity diversity of maturing and shrubs with a stem diameter tree and shrubs Tree diversity >5cm dbh which are local endemic % 100 100 0 0 0 0 0 0 species comparable species and these percentages are to that of the local comparable to the local remnant 70

remnant vegetation vegetation

Ecosystem The vegetation is in a The percentage of the tree health condition population which are live individuals comparable to that Live trees and that the percentage is % population 75 90.625 0 0 0 0 0 0 of the local remnant comparable to the local remnant vegetation. vegetation The percentage of the tree population which are in healthy Healthy trees condition and that the percentage is % population 0 50 0 0 0 0 0 0 comparable to the local remnant vegetation The presence of reproductive structures such as buds, flowers or fruit provides evidence that the Flowers/fruit: ecosystem is maturing, capable of % population 3.125 40 0 0 0 0 0 0 Trees recruitment and can provide habitat resources comparable to that of the local remnant vegetation

5.5. Further Development of the Final Rehabilitation Plan The CSA Mine Rehabilitation cost estimate was updated in 2018 and the scientific rationale behind some of the closure strategies was updated in regards to cover material and use of organic material. Future rehabilitation planned for CSA Mine is intended to test this rationale and confirm if the closure strategy is applicable. As discussed previously the disturbance area of CSA Mine is quite small relative to the operation and the vast majority of disturbed areas are currently occupied by critical operational equipment. The Stage 9 STSF wall raise, however, is scheduled to provide a significant area on which rehabilitation trails can be carried out. This work was originally planned for 2018 but was pushed back due to operational demands and will commence in 2019.

At present CSA Mine is still 10 years away from closure.. The final rehabilitation plan will be further addressed in subsequent MOP’s.

6. ACTIVITIES PROPOSED IN THE NEXT AEMR PERIOD

Table 32 - Proposed Activities for 2019.

Scheduled Proposed Activity Priority Ranking Completion Date Update Site Environmental Management Plan H Q3 2019

Update of site water balance including installation of new H Q2 2019 meters and investigation into ongoing water saving strategies. Upgrade of Borrow Pit dam and site contaminated water H Q4 2019 management system.

Continue maintenance activities on rehabilitated land. H 2019

Implement a new rehabilitation trial on the STSF. H 2019

Annual asbestos monitoring and update of site management M Q3 2019 plan.

Implement joint rehabilitation efforts on site excised areas. M 2019

Continuation of environmental monitoring of surface water, M 2019 groundwater and air.

Dangerous Goods Audit and management plan update. M Q3 2019

LFA Monitoring (September). M Q3 2019

Review data from all rehabilitation trials 2011 – 2017. L Q4 2019

Develop the 2018 Carbon and Energy Footprint budget L Q2 2019

7. REFERENCES Australian and New Zealand Environment and Conservation Council (ANZECC) and Agriculture and Resource Management Council of Australia and New Zealand (2002) Australian and New Zealand Guidelines for Fresh and Marine Water Quality, National Water Quality Management Strategy.

Benson J. S. (2006) New South Wales Vegetation Classification and Assessment: the classification, database assessment of protected areas and threat status of plant communities. Cunninghamia 9, 331-82.

Bureau of Meteorology (2018) Website www.BOM.gov.au.

Cobar Management Pty Ltd (2018) Mining Operations Plan 2018-2020, December 2018.

Trade and Investment Resources and Energy (2006) Guidelines to the Mining, Rehabilitation and Environmental Management Process. EDG03 version 3

DnA Environmental (2011) Rehabilitation Monitoring Methodology and Determination of Completion Criteria for Rehabilitation Ecosystems report.

DnA Environmental (2018) Rehabilitation Monitoring Report, December 2018.

EnviroKey (2012) Biodiversity Assessment CML5, The CSA Mine, Cobar NS, October 2012.

Golder Associates (2017) South Tailings Storage Facility-Surveillance Report Year 2017, August 2017.

APPENDICES Appendix A – Environmental Protection Licence Appendix B – Environment and Community Policy Appendix C – Surface Water Management Plan Appendix D – Pollution Incident Response Management Plan 3 Appendix E – 2018 CSA Rehabilitation Monitoring Report