SURAT BASIN RAIL PROJECT EIS Summary February 2009 H328128-0000-06-124-0003_2 Explanatory Statement A person using Connell Hatch documents or data accepts the risk of: a) Using the documents or data in electronic form without requesting and checking them for accuracy against the original hard copy version. b) Using the documents or data for any purpose not agreed to in writing by Connell Hatch. PAGE i This document has been prepared to compliment the Surat Basin Rail Project EIS. Contents Function and Scope of Summary 1 Surat Basin Rail Project 1 About the EIS 2 Legal Framework for the Project 2 The Proponent 3 Background and Need 4 Location Map and Regional Coal Deposits 5 Assessment of Project Alternatives 6 Project Description 7 Project Assumptions 8 Study Area and Preferred Alignment 9 Construction 10 Principal Environmental Impacts and Management Strategies 11 Surat Basin Rail Pty Ltd Commitments 18 Community Engagement 21 Making a Submission 22 The EIS CD 24 This document is not the EIS. PAGE ii Function and Scope of Summary This Summary document provides a This Summary is a stand-alone To this end, it is intended that this description, the principal environmental document, focusing on the key issues Summary address the requirements of impacts, the proposed environmental and the Project’s potential adverse and the Terms of Reference (contained in full management strategies and beneficial environmental, social and in Appendix B of Appendices) required commitments of the proposed Surat economic impacts and the management for the Executive Summary. Basin Rail Project as set out in the measures to be implemented to mitigate Environmental Impact Statement (EIS). all residual impacts. This Summary includes an overview of the Project, provides details of The function of this Summary is to The scope of the Summary is determined the Proponent and summaries of the convey the most important aspects by the provisions of the Terms of technical sections as contained in the and options relating to the Project in a Reference as they relate to the Executive other documents that make up the EIS. concise and readable form. Summary. Surat Basin Rail Project Proposed as a major new 210 km The Surat Basin Rail Project is being railway, the Project, when constructed, funded by the Surat Basin Rail Joint will connect the Western Railway Venture at a construction cost in the System, near Wandoan, with the Moura vicinity of $1 billion. Railway System, near Banana. Construction of the Project is scheduled The Project aims to provide a multi-user, to start in 2009 and is likely to take up open access rail link and facilitate the to three years to complete. export of coal and freight through the Port of Gladstone. While coal customers will form the bulk of the rail users, it is anticipated that freight traffic will increase over time. PAGE 1 This document has been prepared to compliment the Surat Basin Rail Project EIS. About the EIS The objectives of the EIS are to: Disc containing the full text, maps and • On 22 February 2008, the • Provide public information on the figures that comprise the EIS. These are Commonwealth Minister determined need for and likely effects of the contained in separate documents: that the Project is not a ‘controlled Project on the natural, social and • Main Text action’ and therefore does not require assessment under the EPBC economic environment; • Appendices Act; and • Set out acceptable standards and • Map Folio levels of impacts (both beneficial • On 12 April 2008, the CG advertised and adverse) on environmental Legal Framework for the the draft Terms of Reference (ToR) values; and Project for public comment with written submissions invited up until close of • Demonstrate how potential The EIS has been prepared in accordance business on 16 May 2008. The ToR environmental impacts are to be with the State Development and Public were finalised on 23 June 2008. managed. Works Organisation Act 1971 (SDPWO The EIS has now been prepared and The Proponent for the Project, Surat Act). submitted to the Queensland Department Basin Rail Pty Ltd, engaged a technical The Project has proceeded through of Infrastructure and Planning (on consortium, consisting of Connell Hatch, a number of steps in the legislative behalf of the CG) and for the public and Parsons Brinckerhoff and Maunsell approvals process, resulting in the need advisory agency review. Depending on AECOM, to conduct the technical for this EIS, specifically: the outcomes of the public and advisory environmental studies and to provide agency review, the Proponent may be independent expertise in the areas of • On 19 November 2007, the required to prepare a Supplementary engineering and community engagement. Proponent lodged an Initial Advice Statement (IAS) for the Project Report to the EIS that addresses specific The EIS comprises 14 technical with the Coordinator-General (CG). matters raised in submissions on the EIS. studies that describe the existing The IAS provided an outline of the At the completion of the EIS phase, environmental conditions and values proposed Project, including its the CG will prepare a report (“CG within the Project study area, assesses rationale and potential impacts; Report”) evaluating the EIS and will the potential impacts of the Project on • On 30 November 2007, the CG decide whether the Project should be these conditions and values and where declared the Project to be a approved (containing conditions and necessary recommends appropriate ‘significant project for which an EIS recommendations if required) or refused. mitigation measures to minimise adverse is required’, under s.26(1)(a) of the impacts. SDPWO Act; If approved, the Project must be assessed against Schedule 8 of the A summary of the findings of • On 3 January 2008, the Integrated Planning Act 1997 which sets these technical studies follows. Proponent referred the Project out approvals or licences required under These summaries provide broad to the Commonwealth Minister the various State legislations for project descriptions only of the findings and for Environment, Heritage and activities, including the Environmental recommendations for each technical the Arts for a determination as Protection Act 1994, the Vegetation area. Further information can be found to whether the Project would Management Act 1999 and the Water Act in each of the chapters that comprise the constitute a ‘controlled action’ under 2000. EIS Main Text document. the Environment Protection and Biodiversity Conservation Act 1999 All copies of this Summary, sent out (EPBC Act), Referral No 2008/3944; by the Proponent, include a Compact This document is not the EIS. PAGE 2 The Proponent Surat Basin Rail is a key strategic The Joint Venture partners are: development to be delivered through A USTR A LI A N T R A NSPORT ATEC (Dawson Valley Railway) Pty Ltd an innovative joint venture of resource & E N E RGY C ORRIDOR Established in 1996 to promote the concept of an inland companies, investors and QR, L IMIT E D collaborating to deliver a new railway rail between Melbourne and Darwin, ATEC has emerged for Queensland. as a key player in the rail infrastructure industry. ATEC is developing regional rail freight networks and associated The Project Proponent is Surat Basin Rail terminal infrastructure. At present it has three core Pty Ltd (SBR) as agent for and on behalf business interests: A freight terminals trust, the Surat of the Surat Basin Rail Joint Venture. Basin Railway in Queensland and the Border Railway SBR was established in December 2006 linking Moree (NSW) to Toowoomba (QLD). with the intention that the joint venture parties would work together to develop Anglo Coal Australia Pty Ltd a multi-user coal and freight railway Anglo Coal is one of Australia’s leading coal producers between the Western and Moura Railway with extensive coal mining interests and prospects in Systems. Queensland, New South Wales and Victoria. In July 2007, the Queensland The group’s coal mining interests in Queensland include Government awarded an unconditional a 100% interest in the Callide Mine, a 51% interest in the Exclusive Mandate to the Joint Venture Dawson and Dawson South Mines (formerly the Moura Partners, comprising ATEC, Anglo Mine) and a 70% interest in the Capcoal Mining Project. Coal, Xstrata and QR Ltd to investigate Anglo Coal also controls major mine deposits close to the the development of this rail link. The proposed Surat Basin Rail route. Project is a joint private sector and State Government initiative and is investor- Xstrata Coal Surat Basin Rail Pty Ltd funded, rather than state-funded. The Project will provide open-access to Xstrata Coal is the world’s largest exporter of thermal customers while providing a level playing coal and the fifth largest producer of hard coking coal. field on prices and access terms. Headquartered in Sydney, Xstrata Coal has interests in over 30 operating coal mines throughout Australia, SBR is committed to the effective South Africa and Columbia. Xstrata Coal Queensland has environmental management for the four large coal mining complexes located at Collinsville, Project, before, during and after Newlands, Oakey Creek and Rolleston and is actively construction. pursuing development of the Wandoan Coal Project in the Surat Basin. QR Surat Basin Pty Ltd QR Ltd is the dominant rail transport operator in Queensland and one of the largest transport companies in Australia. Provision of rail access and freight haulage services to the Queensland coal industry is a major element of QR’s business. PAGE 3 This document has been prepared to compliment the Surat Basin Rail Project EIS. Background and Need Australia is the world’s largest coal transport of general freight. Regional Adding to this enhanced freight service exporter, and the coal-rich Surat Basin freight services currently rely on the is the potential for the Project to in regional Queensland contains up Western Rail Line and the Port of provide wider, national benefits.