Mindarie Mineral Sands Project Mindarie C and A(2)

Program for Environment Protection and Rehabilitation (PEPR)

16 April 2011

Parsons Brinckerhoff Australia Pty Limited ABN 80 078 004 798 Level 16 1 King William Street Adelaide SA 5000 GPO Box 398 Adelaide SA 5001 Australia Telephone +61 8 8405 4300 Facsimile +61 8 8405 4301 Email [email protected]

Certified to ISO 9001, ISO 14001, AS/NZS 4801 11-0773-10-2162559A A+ GRI Rating: Sustainability Report 2010

Mindarie Mineral Sands Project – Mindarie C and A(2) – Program for Environment Protection and Rehabilitation (PEPR)

Contents

Page number

Acronyms xi Declaration xiii

1. Introduction 1 1.1 Project history 1 1.2 Program for Environment Protection and Rehabilitation 2 1.2.1 Objectives and context 2 1.2.2 Structure and content of PEPR 3

2. Proponent details 5 2.1 Project proponent 5 2.2 Project location and mining tenements 5 2.3 Local government 6

3. Legislative requirements 7 3.1 South Australian legislation 7 3.1.1 Mining Act 1971 7 3.1.2 Natural Resources Management Act 2004 8 3.1.3 Environment Protection Act 1993 9 3.1.4 Development Act 1993 11 3.1.5 Native Vegetation Act 1991 11 3.1.6 National Parks and Wildlife Act 1972 11 3.1.7 Other relevant State legislation 12 3.2 Australian government legislation 14 3.2.1 Environment Protection and Biodiversity Conservation Act 1999 14 3.2.2 Other relevant Commonwealth legislation 15 3.3 National policies and strategies 15

4. Existing environment 17 4.1 Land use and proximity to housing and infrastructure 17 4.2 Noise, dust and air quality 18 4.2.1 Air quality 18 4.2.2 Noise 18 4.3 Topography and landscape 20 4.4 Climate 20 4.4.1 Rainfall, humidity, evaporation and wind 20 4.4.2 Temperature 21 4.5 Geohazards 22

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Contents (Continued)

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4.6 Geology and soils 23 4.6.1 Regional geology 23 4.6.2 Local geology 24 4.6.3 Soil 24 4.7 Surface water 29 4.8 Groundwater 29 4.8.1 Regional 29 4.9 Fauna and flora 30 4.9.1 Flora 30 4.9.2 Mindarie A(2) 35 4.9.3 Fauna 35 4.9.4 Pest plants and animals 37 4.10 Heritage 39 4.10.1 Aboriginal heritage 39 4.10.2 European heritage 39 4.11 Proximity to conservation areas 40 4.12 Pre-existing site contamination and disturbance 40 4.13 Socio-economic 41 4.14 Transport and traffic 41

5. Project description 43 5.1 General description and summary 43 5.1.1 General 43 5.1.2 Project schedule 45 5.1.3 Project alternatives 45 5.2 Resources, products and markets 48 5.2.1 Geological environment 48 5.2.2 Total operations ore reserves 48 5.2.3 Production rate, products and market 51 5.2.4 Material movement 51 5.3 Mining operations 52 5.3.1 General mine sequence 52 5.3.2 Site clearance 56 5.3.3 Native vegetation, topsoil and subsoil removal and stockpiling 56 5.3.4 Overburden removal and stockpiling 56 5.3.5 Mine pit details 57 5.3.6 Ore recovery 59 5.3.7 Slurry unit 60

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Contents (Continued)

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5.4 Processing 61 5.4.1 Primary concentrator plant 61 5.4.2 Process description 62 5.4.3 PCP components 62 5.4.4 Hours of operation 67 5.5 Tailings 67 5.5.1 Tailings characterisation 67 5.5.2 Tailings discharge 67 5.5.3 Tailings monitoring and management 70 5.5.4 Tailings associated components 70 5.6 Sequence of mining and rehabilitation operations 71 5.6.1 Mining direction 71 5.6.2 Mining sequence and scheduling 71 5.6.3 Production schedules and annual production 71 5.6.4 Mining adjacent to residential property 71 5.7 Supporting mine infrastructure 75 5.7.1 Electricity 75 5.7.2 Pipelines 75 5.7.3 Ancillary infrastructure 76 5.7.4 Fuel storage 77 5.8 Road access and transport 77 5.9 Water management 78 5.9.1 Water supply 78 5.9.2 Mine water and tailings decant 81 5.9.3 Process water and tailings decant 81 5.9.4 Site run off/silt control and drainage 81 5.10 Waste and hazardous material management 84 5.10.1 Tailings/processing waste 84 5.10.2 Commercial and industrial waste 84 5.11 Stockpiles management 85 5.11.1 Topsoil and subsoil 85 5.11.2 Overburden 86 5.11.3 Heavy mineral concentrate 86 5.12 Construction 87 5.12.1 PCP relocation works 87 5.12.2 Access 87 5.12.3 Accommodation 87 5.13 Modes and hours of operation 87 5.14 Visual screening and site security 88 5.15 Plant and machinery requirements 88

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Contents (Continued)

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5.16 Resource inputs 89 5.16.1 Workforce details 89 5.16.2 Energy sources 90 5.17 Water sources 90 5.18 Mine completion and rehabilitation 90 5.18.1 Management of overburden 90 5.18.3 Rehabilitation 91 5.19 Mindarie A(2) and former Mindarie C rehabilitation 91 5.19.1 Process pond rehabilitation 92 5.19.2 Rehabilitation activity schedule 93

6. Stakeholder consultation 95 6.1 Identified stakeholders 95 6.2 Australian Zircon stakeholder consultation 96 6.2.1 Community Consultative Committee (Mineral Sands) 97 6.2.2 Aboriginal liaison 97 6.2.3 Consultation on the Mindarie C project by AZ 98 6.3 Stakeholder consultation during administration 98 6.4 Murray Zircon stakeholder consultation 99 6.4.1 Approach 99 6.4.2 Consultation to date 99 6.4.3 Ongoing consultation 104 6.4.4 PEPR community consultation feedback 106

7. Environmental outcomes 111 7.1 Background 111 7.1.1 Control and management strategies 111 7.1.2 Outcomes measurement criteria 112 7.1.3 Monitoring 112 7.1.4 Environmental outcomes and measurement criteria 112 7.2 Mindarie C (ML 6226) and Mindarie A(2) (6220) 121 7.2.1 Native vegetation 121 7.2.2 Weeds and pests 126 7.2.3 Noise and vibration 129 7.2.4 Traffic 133 7.2.5 Aboriginal and European heritage 138 7.2.6 Community consultation and landuse management 141 7.2.7 Visual amenity and landscaping 145 7.2.8 Air quality 148 7.2.9 Radiation and asbestiform materials 153

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Contents (Continued)

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7.2.10 Surface water and stormwater 156 7.2.11 Groundwater 160 7.2.12 Topsoil and subsoil 166 7.3 Consolidated summary of environmental outcomes and measurement criteria 170 7.4 Other conditions without outcomes 191 7.5 Additional environmental risks 195

8. Mine Closure and Rehabilitation Plan 196 8.1 General 196 8.1.1 Stakeholder involvement and issues 196 8.1.2 Scope and review 196 8.1.3 Potential environmental, economic and social impacts of mine closure 197 8.1.4 Rehabilitation Mine Closure and Criteria Plan 198 8.1.5 Closure outcomes 199 8.1.6 Other conditions 199 8.2 Mindarie C (ML 6226) 200 8.2.1 Environmental baseline 200 8.2.2 Description of closure Domains 200 8.2.3 Summary of environmental outcomes and completion criteria 200 8.2.4 Compliance with other environmental conditions 207 8.2.5 Closure strategies for each domain 208 8.2.6 Closure management 210 8.2.7 Post closure monitoring and management 216 8.2.8 Closure cost estimate/bond 217 8.3 Mindarie A(2) (ML 6220) 219 8.3.1 Environmental baseline 219 8.3.2 Status of current rehabilitation 219 8.3.3 Process pond rehabilitation 219 8.3.4 Summary of environmental outcomes and completion criteria 220 8.3.5 Compliance with other environmental conditions 225 8.3.6 Closure management 226 8.3.7 Post closure monitoring and management 227 8.3.8 Closure cost estimate/bond 228 8.3.9 Mine closure schedule 230

9. Management systems and capability 232 9.1 Commitment and leadership 232 9.2 Policies and objectives 232 9.2.1 Environmental policy 232 9.2.2 Procedures and practices 233

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Contents (Continued)

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9.3 Organisation, resources and documentation 233 9.3.1 Organisation structure and resources 233 9.3.2 Documentation 233 9.4 Risk evaluation and management 234 9.4.1 Job safety analysis 235 9.4.2 Contractor management 235 9.4.3 Management review 235 9.5 Planning 235 9.6 Implementation, recording and monitoring 235 9.7 Audit and review 236 9.7.1 PEPR review and amendments 236 9.7.2 Annual Compliance Report 236 9.8 Previous experience of operator 237 9.9 Lease conditions 237

10. References 238

List of tables Page number

Table 2.1 Summary of operator and contact details 5 Table 2.2 Mining tenement and land ownership summary – Mindarie C strandline (ML6226) 6 Table 2.3 Mining tenement and land ownership summary – Mindarie A(2) strandline (ML6220) 6 Table 3.1 Other relevant Acts and policies 12 Table 4.1 Background noise measurements 19 Table 4.2 Noise Modelling Results 19 Table 4.3 Rainfall data 20 Table 4.4 Annual minimum and maximum temperatures 21 Table 4.5 Landscape zones and land unit characteristics of the proposed mine area 25 Table 4.6 Observed soil profile for Mindarie C and Mindarie A(2) 26 Table 4.7 Soil analysis results for Mindarie C and MindarieA(2) 26 Table 4.8 Metals in soil samples for Mindarie C and A(2) 26

Table 4.9 Calculated maximum salinity (ECSE) 27 Table 4.10 Plant salt-tolerance data 27 Table 4.11 European heritage items, District Council of Karoonda East Murray Area 39 Table 5.1 Key characteristics of the Mindarie C project 44 Table 5.2 Mindarie C – maximum project clearance footprints 44 Table 5.3 Mindarie C project schedule 45 Table 5.4 Mindarie Mineral Sands Project ore reserve estimate (2008 figures updated based on a 60m x 25m drilling grid for Mindarie C East) 50 Table 5.5 Mining sequence and schedule 53

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List of tables (Continued)

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Table 5.6 Expected management of the waste streams generated by Mindarie C project 84 Table 5.7 Site mobile equipment 88 Table 5.8 Mobile equipment output information 88 Table 5.9 Operations workforce 89 Table 5.10 Estimated annual power consumption 90 Table 5.11 Rehabilitation strategy and schedule 2011/12 93 Table 6.1 Preliminary stakeholder list 95 Table 6.2 Australian Zircon (AZ) stakeholder consultation tools 96 Table 6.3 Written submissions stakeholder list 98 Table 6.4 Mindarie C project Stakeholder Submissions 98 Table 6.5 Stakeholder activities and tools 100 Table 6.6 Landholder meetings – issues raised 102 Table 6.7 Community meeting tools 103 Table 6.8 Community issues and feedback integration 103 Table 6.9 Ongoing consultation communications and engagement tools and activities 105 Table 7.1 Schedule 2 Mining Lease Conditions and outcomes 114 Table 7.2 Environmental outcomes, risk levels, control and management strategies and measurement criteria – native vegetation 125 Table 7.3 Environmental outcomes, risk levels, control and management strategies and measurement criteria – weeds and pests 128 Table 7.4 Noise modelling results 129 Table 7.5 Environmental outcomes, risk levels, control and management strategies and measurement criteria – noise and vibration 132 Table 7.6 Environmental outcomes, risk levels, control and management strategies and measurement criteria – traffic 135 Table 7.7 Other environmental conditions and compliance assessment – traffic 136 Table 7.8 Environmental outcomes, risk levels, control and management strategies and measurement criteria – Aboriginal and European heritage 140 Table 7.9 Environmental outcomes, risk levels, control and management strategies and measurement criteria – community consultation and landuse management 143 Table 7.10 Other environmental conditions and compliance assessment – community consultation and landuse management 144 Table 7.11 Other environmental conditions and compliance assessment – visual amenity and landscaping 147 Table 7.12 Environmental outcomes, risk levels, control and management strategies and measurement criteria – air quality 151 Table 7.13 Environmental outcomes, risk levels, control and management strategies and measurement criteria – radiation and asbestiform materials 155 Table 7.14 Environmental outcomes, risk levels, control and management strategies and measurement criteria – surface water 158 Table 7.15 Environmental outcomes, risk levels, control and management strategies and measurement criteria – groundwater 164 Table 7.16 Environmental outcomes, risk levels, control and management strategies and measurement criteria – topsoil and subsoil 168 Table 7.17 Outcomes and criteria 170 Table 7.18 Outcomes and criteria – Mindarie C 183 Table 7.19 Outcomes and criteria – Mindarie A(2) 188 Table 7.20 Other conditions without outcomes 191

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List of tables (Continued)

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Table 8.1 Potential impacts after mine closure 197 Table 8.2 Proposed land use for each Domain on closure 200 Table 8.3 Mine closure and rehabilitation – outcomes and completion criteria Mindarie C 202 Table 8.4 Other environmental conditions and compliance criteria – mine closure and rehabilitation Mindarie C 207 Table 8.5 Closure strategies for closure of Domain 1 (conceptual) 208 Table 8.6 Closure strategies for closure of Domain 2 (conceptual) 209 Table 8.7 Closure strategies for closure of Domain 3 (conceptual) 209 Table 8.8 Schedule for closure and rehabilitation 211 Table 8.9 Management actions – rehabilitation and mine closure 214 Table 8.10 Monitoring activities and requirements – rehabilitation and mine closure 216 Table 8.11 Closure cost estimate 218 Table 8.12 Mine closure and rehabilitation – outcomes and completion criteria Mindarie A(2) 222 Table 8.13 Other environmental conditions and compliance assessment – mine closure and rehabilitation Mindarie A(2) 225 Table 8.14 Management strategies – rehabilitation and mine closure 226 Table 8.15 Monitoring activities and requirements – rehabilitation and mine closure 227 Table 8.16 Closure cost estimate 229 Table 8.17 Rehabilitation strategy and schedule 2011/12 230

List of figures Page number

Figure 4.4 Mean monthly rainfall for Mindarie SA (BOM 2011a) 21 Figure 4.6 Mindarie C strandline cross section 24 Figure 5.3 Typical cross section of mining operations 58 Figure 5.5 Tailings deposition 69 Figure 5.6 Mining adjacent to residential property – plan view 73 Figure 5.7 Mining adjacent to residential property – cross section 73 Figure 5.11 Water balance estimate 80 Figure 5.12 HMC stockpile drainage 83

List of photographs Page number

Photo 4.1 Mining of Mindarie A(2) strandline during 2008 17

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Appendices

Appendix A Certificates of Title Appendix B Dust Monitoring Reports (July 2008–2009) Appendix C Noise Assessments Appendix D EBS Biodiversity Survey Appendix E Management Plans Appendix F Mining Lease Number 6226 Appendix G Mindarie C Environmental Risk Assessment Appendix H Environmental Policy Appendix I Community Consultation Plan Appendix J Guide to information location in the PEPR Appendix K Lease Conditions Appendix L Figures Appendix M Rehabilitation and mine closure criteria plan Appendix N Mindarie Baseline 2010

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Acronyms

AARD Aboriginal Affairs and Reconciliation Division ABS Australian Bureau of Statistics AHD Australian Height Datum AZ Australian Zircon BDBSA Biological Database of BOM Bureau of Meteorology CFS Country Fire Service DCPT Dynamic Cone Penetration Tests DENR Department of Environment and Natural Resources DFW Department for Water DPTI Department of Planning Transport and Infrastructure DMITRE Department of Manufacturing, Innovation, Trade, Energy and Resources DTEI Department of Transport, Energy and Infrastructure EBS Environmental and Biodiversity Services EP Act Environment Protection Act 1993 EPA South Australian Environment Protection Authority EPBC Act Environment Protection and Biodiversity Conservation Act 1999 EML Extractive Minerals Licence FOS Factors of Safety HMC Heavy Mineral Concentrate MARP Mining and Rehabilitation Program MCRP Mine Closure Rehabilitation Plan ML Mega litres MMCCC Murray Mallee Community Consultative Committee MPL Miscellaneous Purposes Licence MPWA Mallee Prescribed Wells Act MSP Mineral Separating Plant MZ Murray Zircon NES National Environmental Significance NGER National Greenhouse and Energy Register NRM Act Natural Resources Management Act 2004 NV Act Native Vegetation Act 1991 NVC Native Vegetation Council NVMMP Native Vegetation Management and Monitoring Plan

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PIRSA Primary Industries and Resources South Australia PCP Primary Concentrator Plant PLC Programmable Logic Control PEPR Program for Environment Protection and Rehabilitation RMP Radiation Management Plan RMCCP Rehabilitation Mine Closure and Criteria Plan SCADA Supervisory Control and Data Acquisition SEB Significant Environmental Benefit SEWPAC Sustainability, Environment, Water, Population and Communities SWL Standing Water Levels TDS Total Dissolved Solids THM Total Heavy Mineral UPS Uninterruptible Power Supplies VMC Valuable Heavy Mineral

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Signature and declaration

I, Eddy Wu (Chief Executive Officer) of Murray Zircon Pty Ltd, declare that all information contained in this document is, to the best of my knowledge, true and not misleading.

Signature

Date

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Mindarie Mineral Sands Project – Mindarie C and A(2) – Program for Environment Protection and Rehabilitation (PEPR)

1. Introduction

Murray Zircon Pty Ltd (MZ) is proposing to initiate operations of the Mindarie Mineral Sands Project by re-commencing mining of the Mindarie C strandline. The Mindarie Mineral Sands Project is located approximately 150 km east of Adelaide in the Murray Mallee Region of South Australia and involves the mining of eight mineral sands strandlines located in nine separate Mineral Leases and two Exploration Licences (refer Figure 1.1, Appendix L).

MZ proposes to commence mining operations on a portion of the remainder of the Mindarie C strandline from Section 27 in the west to Section 22 in the east in the first half of 2012 (refer Figure 1.1, Appendix L).

The project will use open pit mining techniques to produce approximately 120,000 tonnes of Heavy Mineral Concentrate (HMC) per annum (tpa) over an initial mine life of two years. The HMC will be sold at mine gate and transported initially via road transport to Port Adelaide for shipment overseas where it will be further processed and sold. There is potential for the HMC to be transported via the railway to Port Adelaide in the future.

In addition, MZ will continue to rehabilitate the Mindarie A(2) strandline and return the rehabilitated land to the relevant landholders.

The development and operation of the project is expected to result in:

 economic benefits such as expenditure during operation, royalty payments and salaries  social benefits such as employment opportunities, training and education  environmental benefits such as improved rehabilitation of areas of disturbance from previous mining activities.

In accordance with the Mining Lease for the Mindarie C strandline (ML6226) and the Mindarie A(2) strandline (ML6220), MZ have developed this Program for Environment Protection and Rehabilitation (PEPR) for approval by the Department of Manufacturing, Innovation, Trade, Energy and Resources (DMITRE).

Details about the proponent, MZ, are provided in Section 2 – Proponent details.

1.1 Project history

In 2004 Australian Zircon NL (AZ) received approval pursuant to the requirements of the Mining Act, 1971 to develop the Mindarie Zircon Project.

The nine mineral strandlines in the first mining plan were to be developed sequentially. Site establishment and construction activities for the first of the strandlines – Mindarie A(2) commenced in 2006. Following construction and commissioning of plant and equipment, mining of mineral sands in the A(2) strandline commenced in April 2007 at an initial design rate of 3.5 to 4 million tonnes per annum (Mtpa) of ore which would result in the production of some 140,000–180,000 tpa of HMC.

As required by Primary Industries and Resources South Australia (PIRSA) and Condition 2.1(a) of the Mindarie A(2) lease conditions (ML6220), AZ developed and submitted a Mining and Rehabilitation Program (MARP) for the Mindarie A(2) strandline prior to commencement of activities on the strandline. The MARP was approved by PIRSA in 24 August 2006. As required by PIRSA and Condition 2 of the Mindarie C lease conditions

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(ML6226), AZ previously developed and submitted a MARP for the Mindarie C strandline prior to commencement of activities on the strandline. The MARP was approved by PIRSA on 27 July 2009.

AZ began mining operations on the Mindarie C strandline (refer Figure 1.2, Appendix L)) in July 2009 with mining activities commencing in a section of the strandline immediately west of Loxton – Murray Bridge Road (approximately 0.05 ha in size). In October 2009 mining activities ceased when AZ voluntarily appointed an Administrator.

In June 2011, a Joint Venture between Guangdong Orient Zirconic Sci and Tech Ind and Australian Zircon, known as Murray Zircon Pty Ltd (MZ), was formally established.

MZ proposes to commence mining operations on the remainder of the Mindarie C strandline (refer Figure 1.2, Appendix L) in the first quarter of 2012 with mining activities starting northwest of the Loxton – Murray Bridge Road moving towards the east. Once the western side of the strandline has been mined, the operations will move to the eastern side of the Loxton – Murray Bridge Road. The proposed mining method consists of a dry ‘mobile hole’ concept thereby allowing for the removal of approximately 3 million tonnes of ore per annum (tpa) over an initial mine life of two years and eight months. The extracted mineral sands will be mixed with water to form slurry with the slurry unit located in the mine pit or adjacent to the mine pit. The slurry will then be pumped to the Primary Concentrator Plant (PCP) where it is processed to form HMC and transported initially via road transport (or rail in the future) to Port Adelaide for export.

In addition MZ will continue to rehabilitate the Mindarie A(2) strandline and return the rehabilitated land to the relevant landholders. At the time of submission of this PEPR, the topsoil replacement programme had commenced.

1.2 Program for Environment Protection and Rehabilitation

1.2.1 Objectives and context

This Program for Environment Protection and Rehabilitation (PEPR) has been prepared by MZ in accordance with the requirements of the Mining Act 1971 and Mining Regulations 2011 (as amended on 1 July 2011) and demonstrates that the outcomes specified in lease conditions for ML6226 and ML 6220 can be achieved.

The PEPR also reflects changes in project design, footprint and feedback from key stakeholders (including DMITRE, landowners, community) during the preparation of this document.

The PEPR content is consistent with the requirements of the Draft Determination by the Minister for Mineral Resources Development, dated November 2011 and PIRSA MG1: Guidelines for Miners” Mining Approvals Processes in South Australia (Version 1 February 2009) and MG2: Preparation of Mining Rehabilitation Program (MARP) in South Australia (Version 4.11 January 2011).

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1.2.2 Structure and content of PEPR

The structure and content of this PEPR is as follows:

Section Content Section 1 Introduction – provides details on background, project history and report structure Section 2 Project proponent – provides details on MZ Section 3 Legislative requirements – summary of legislation requirements associated with the project Section 4 Existing environment – description of existing environment including physical, socio-economic and heritage aspects Section 5 Project description – detailed description of project operations and associated infrastructure Section 6 Stakeholder consultation – details of stakeholder consultation to date and future strategy Section 7 Environmental outcomes – details of each environmental aspect, identification of potential risks, description of proposed mitigation and management strategies, details on environmental outcomes and measurement criteria and proposed monitoring to be undertaken to demonstrate the achievement of environmental outcomes. Section 8 Mine closure and rehabilitation plan – details conceptual mine closure and rehabilitation plans for Mindarie C and Mindarie A(2) Section 9 Management systems and capability – details of MZ’s corporate management systems and reporting requirements Section 10 References Appendices

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2. Proponent details

2.1 Project proponent

The proponent of the Mindarie Mineral Sands Project is Murray Zircon Pty Ltd (MZ), a joint venture between Guangdong Orient Zirconic Sci and Tech Ind (Orient Zirconic) and Australian Zircon NL (AZ).

AZ’s major business activities are mining and processing titanium minerals, mining and processing zircon and mineral exploration. Orient Zirconic is one of China’s largest zircon processing companies with its headquarters at Shantou in Guangdong Province. It is a large enterprise which specialises in the manufacture and research of zirconium products for ceramics, electronics, fibre connectors, aviation field, spaceflight and solid fuel batteries.

The contact details for this project are summarised in Table 2.1.

Table 2.1 Summary of operator and contact details

Name of operator Murray Zircon Pty Ltd ABN 75 147 048 744 Address of registered Level 6, West office 50 Grenfell Street Adelaide SA 5000 Address of office at PO Box 1657 project site Loxton SA 5333 Name of contact person Mr Eddy Wu CEO Telephone 08 8410 8884 Email [email protected]

2.2 Project location and mining tenements

The project is located approximately 150 km east of Adelaide in the Murray Mallee Region of South Australia and involves the mining of multiple mineral leases (refer Figure 1.1, Appendix L). The closest towns to the project are Mindarie located approximately 2.5 km south and Wanbi approximately 10 km north-east.

The Mindarie C strandline footprint and associated infrastructure are located on 1,938.35 ha which are covered by ML6226 and is defined in this report as the mineral lease area for Mindarie C. The Mindarie A(2) mining footprint is located on 639 ha which is covered by ML6220 and is defined in this report as the mineral lease area for Mindarie A(2). The operations on ML6226 entail the mining of the Mindarie C strandline (East, West and Far East) and are addressed by this PEPR. (refer Figure 1.2, Appendix L).

Details of the current tenure and land ownership of the Mindarie C strandline are included in Table 2.2. Copies of Certificate of Titles are contained in Appendix A.

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Table 2.2 Mining tenement and land ownership summary – Mindarie C strandline (ML6226)

Hundred Section Title number Land owner Chesson S23 CT5533/212 Zadow Farm Security Pty Ltd Chesson S45 CT5969/756 Zadow Farm Security Pty Ltd Chesson S44 CT5885/73 K. J. Heidrich and R. A. Heidrich Chesson S39 CT5369/401 A. T. Evans and A. G. Evans Chesson S41 CT5939/633 A. T. Evans , A. G. Evans and J. T. Evans Chesson S40 CT5878/80 G. U. Pfitzner Chesson S28/62/77 CT5995/537 A. T. Evans and A. G. Evans Chesson S29 CT5301/108 J. M. Curtis Chesson S30 CT5597/179 J. M. Curtis Chesson S27 CT5737/3 L. Curtis Chesson S26 CT5988/516 J. R. Tokin and R. J. Tonkin Chesson S37 CT5352/850 E. V. Francis Mindarie A1/S37 CT5945/521 E. V. Francis Mindarie S7 CT5945/523 I. R. Francis, E. V. Francis, and D. W. Francis Mindarie S32 CT5384/33 Wanbi Farm Holding Pty Ltd Mindarie S33/34 CT5893/315 P. J. Crouch and A. L. Crouch Mindarie S9/13/22/23 CT5937/218 S. T. Proud and B. C. Proud Mindarie S21/24 CT5964/977 P. J. Crouch and A. L. Crouch Mindarie A2 CT5945/522 Mallee Mineral Separations Pty Ltd NB: those landowners affected by operations on Mindarie C are highlighted.

Details of the current tenure and land ownership of the Mindarie A(2) strandline is included in Table 2.3. Copies of Certificate of Titles are contained in Appendix A.

Table 2.3 Mining tenement and land ownership summary – Mindarie A(2) strandline (ML6220)

Hundred Section Title Number Land owner Mindarie S7 CT5945/523 I. R. Francis, E. Victor, and D. Wayne Mindarie Pieces of 1 and 3 CT5945/521 E. V. Francis Deposited Plan 67236 Chesson S26 CT5988/516 J. R. Tokin and R. J. Tonkin Mindarie S34 CT5893/315 P. J. Crouch and A. L. Crouch

2.3 Local government

The project is located within the District Council of Karoonda East Murray in the central portion of the Murray Mallee Planning Region.

The area’s primary industries are broad-acre production of wheat and barley, breeding of sheep (predominantly Merino/Poll Merino) for their meat and wool. Secondary and tertiary industries include breeding of pigs, beef cattle, alpacas and the production of sorghum, oats, lupins, beans, olives, onions, potatoes, pumpkins, pomegranates and Paulownia trees (DCKEM 2011).

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3. Legislative requirements

3.1 South Australian legislation

In South Australia minerals are the property of the Crown and mining is governed by the following Acts and Regulations:

 Mining Act 1971, and Mining Regulations 2011  Offshore Minerals Act 2000  Opal Mining Act 1995.

In addition to the above Acts and Regulations, there are a number of South Australian and Commonwealth Acts and regulatory processes that apply to the operational activities associated with mining projects. A description of the relevant Acts and the process by which MZ will meet necessary statutory requirements under these Acts is discussed in the following sections.

3.1.1 Mining Act 1971

Approval for the original AZ project was sought under the Mining Act 1971 which was administered at that time by Primary Industries and Resources SA (PIRSA), currently DMITRE.

3.1.1.1 Mineral lease

Construction and operation of a mine can only be undertaken with an approved Mineral Lease (ML) and all mineral leases require that the mining operation is carried out in an orderly and skilful manner in accordance with an approved PEPR and with an appropriate rehabilitation bond in place.

On 25 July 2006, AZ was granted ML6220 for the Mindarie A(2) deposit and commenced site establishment and construction activities in 2006. On 6 May 2009, AZ was granted ML6226 for the Mindarie C deposit and commenced mining operations on the strandline in July 2009 with mining commencing on a section of the strandline immediately west of the Loxton – Murray Bridge Road. In October 2009 mining activities ceased when AZ voluntarily appointed an Administrator. This PEPR covers the proposed MZ operations on the remainder of the Mindarie C strandline as detailed in Section 5 as well as the completion of rehabilitation works on the Mindarie A(2) strandline.

Following approval, this PEPR will become the key environmental management document for the Mindarie C operations and completion of rehabilitation of Mindarie A(2). A stamped, numbered copy of the PEPR will be kept on site at all times and as required by the provisions of the Mining Act 1971 and will be updated at intervals of no longer than every seven years.

Earlier review of the PEPR must be undertaken if directed by the Minister and may be required if:

 any additional significant environmental risks are identified  a lease renewal is required  there is a change in the operation or operator  the PEPR is not proving to be adequate in addressing environmental risks, and/or

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 there is a change in community or stakeholder expectations regarding the operation that is considered significant enough for DMITRE to require an update.

3.1.1.2 Miscellaneous Purposes Licences (MPLs) and Extractive Mineral Leases (EMLs)

In August 2006, AZ applied for an Extractive Minerals Lease (EML) for a rubble pit (RP1) required as part of the mining project. PIRSA granted EML No. 6232 (over Mineral Claim) MC3649 on the 17 October 2006. The EML is for a term of seven years and commenced on 20 September 2006. A Native Vegetation Management Plan and Mining and Rehabilitation Program were developed to cover the activities associated with EML No. 6232.

Construction of infrastructure with a mining development (but not within the mineral lease area) requires a Miscellaneous Purposes Licence (MPL) (pursuant to the requirements of Part 8 of the Mining Act 1971). MPL 80 was granted by PIRSA on 25 of July 2006 to facilitate the construction and operation of the 66kV transmission line from the Material Separation Plant to the Pyap substation. The related Pyap to Mindarie Transmission Line Mining and Rehabilitation Program (MARP) detailing the project environmental requirements was submitted to PIRSA on 19 September 2006.

3.1.1.3 Exploration licences

The Mineral Leases and strandlines associated with the Mindarie Mineral Sands Project lie within three Exploration Licences (4016, 4017 and 4018). These licences expired on 1 January 2011 and are currently being renewed and transferred from AZ to MZ.

The Mindarie C and Mindarie A(2) MLs lies within the boundaries of Exploration Licences 4017 and 4018 (refer to Figure 1.1, Appendix L).

3.1.2 Natural Resources Management Act 2004

The Natural Resources Management Act 2004 (NRM Act) is administered by the Department for Water and promotes the sustainable and integrated management and protection of the State’s natural resources.

The abstraction and use of groundwater for the project will be governed by the NRM Act.

The NRM Act also provides for the creation of eight NRM regions within South Australia and the project lies within the South Australian Murray-Darling Basin NRM (SAMDB NRM) Board area.

3.1.2.1 Groundwater

The project area falls within the Mallee Prescribed Wells Area (MPWA) which is part of the Murray-Darling Basin. The Murray-Darling Basin is one of the State’s most productive agricultural regions. Groundwater is extracted from selected aquifers in the region and is particularly important in the Angas-Bremer plains and the Mallee regions for irrigation, stock and domestic uses.

Approval is required for abstraction and use of groundwater for the project and was previously granted by the Department for Water (previously known as Department for Water, Land, Biodiversity and Conservation) on 16 March 2007. The authorisation is for a period of ten years.

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The authorisation permits a maximum of 6,000 megalitres (ML) to be extracted from the Murray Group Limestone Aquifer per water use year and limits the total volume permitted to be extracted in the ten year period to 42,920 ML (providing an average of 4,292 ML per water year use).

The authorisation permits the use of the extracted water on the Mindarie C and A(2) strandlines (ML6226 and ML6220). The authorisation states that:

 a maximum of 6,000 ML can be taken from the Murray Group Limestone Aquifer per water use year  no more than 42,920 ML shall be taken from the Murray Group Limestone Aquifer over the 10 years of the authorisation  the water use must not take water except through a meter, fitted to the satisfaction of the Minister for Environment and Conservation  the water use must not cause, suffer or permit any interference with a meter used for the purposes of measuring the quantity of water used under the Notice or any interference with pipes or fittings that may affect the accuracy of a meter, without the Minister for Environment and Conservation’s authority  the water user must not adjust or alter the meter without the Minister for Environment and Conservation’s authority  the water user must not permit sand, soil or any other material to be deposited on or around a meter  the water user must not permit deposits of sand, soil or any other material to build up around the meter  the water user must keep vegetation cleared away from the meter  the water user must not damage or destroy the meter  the water use must comply with the terms and conditions, as authorised under the Mining Act 1971, of Mineral Leases 6137, 6219, 6220, 6221, 6222¸ 6223, 6225 and 6226.

3.1.2.2 Surface water

Surface water in the project area is not prescribed, however, permits under the NRM Act are required for ‘water affecting activities’ including activities that can have an impact on water resources and the ecosystems dependent on water. This includes activities such as excavation of rock, sand or soil from a watercourse, lake, floodplain or near the banks of a watercourse. It is not expected that any surface water affecting activities will be undertaken as part of the project.

3.1.3 Environment Protection Act 1993

The Environment Protection Act 1993 (EP Act) provides for the protection of the environment. This Act is administered by the South Australian Environment Protection Authority (EPA).

3.1.3.1 General environmental duty

In addition to the various lease conditions that have been applied to the project area, MZ also has a ‘general environmental duty’ under the EP Act.

This general duty (as detailed in Section 25, Part 4 of the EP Act) specifies that a person must not undertake an activity that pollutes, or might pollute, the environment unless the person takes all reasonable and practicable measures to prevent or minimise any resulting environmental harm.

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In determining what measures are required to be taken, consideration must be given to:

 the nature of the pollution or potential pollution, and the sensitivity of the receiving environment  the financial implications of the various measures that might be taken as those implications relate to the class of persons undertaking activities of the same or a similar kind  the current state of technical knowledge and likelihood of successful application of the various measures that might be taken.

3.1.3.2 Environmental authorisations

Approvals are required for any activity associated with the project which is classified as a prescribed activity of environmental significance under Schedule 1 of the EP Act. Approvals for prescribed activities under the EP Act are in the form of a works approval and/or licence from the EPA.

Operations to be undertaken by MZ that are considered to be an ‘activity of environmental significance’ are:

 Concentration of ore on site: a prescribed activity as described in Schedule 1(2)(9) of the Act as ‘Mineral Works – the conduct of works for processing mineral ores, sands or earths to produce mineral concentrates’.

 Storage of diesel fuel: a prescribed activity as described in Schedule 1 (1)(5)(a) of the EP Act as ‘Petroleum Production, Storage and Processing Works or Facilities’ at which petroleum products are stored in tanks with a total storage capacity exceeding 2,000 cubic metres.’

A Works Approval was previously granted for the Mindarie Mineral Sands Project by the EPA in July 2006 for the construction of the Primary Concentrator Plant (PCP) and the Mineral Separating Plant (MSP) which are respectively located on and adjacent to Mindarie A(2) (ML6220).

In March 2007 the EPA granted EPA Licence 16862 for the concentration of ore on site with the licence covering the operation of the PCP, MSP and the Concentrate Upgrade Plant (CUP).

At present MZ stores 5,000 litres of diesel fuel on site and has approval from the EPA to store 190,000 litres of diesel fuel on site. Should the project require more storage of diesel fuel on site, an application will be submitted to the EPA and storage areas will be developed which meet the requirements outlined in the EPA’s Bunding and Spill Management Guidelines 2007.

As part of preparing this PEPR, the EPA provided advice to MZ in September 2011 regarding the transportation of HMC to Port Adelaide. The EPA advice indicated that the total activity of the HMC will be low enough to be exempt from the requirements of the Australian Code of Practice for the Safe Transport of Radioactive Material 2008 which is the primary document brought into force by the Radiation Protection and Control (Transport of Radioactive Substances) Regulation 2003.

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3.1.4 Development Act 1993

The Development Act 1993 provides land use approval for the life of the operations of a development and until such time that another application is approved to change or amend the standing approvals.

Development must be approved under Section 23 of the Act with the definition of development provided under Section 4 (1) of the Act. The construction of the MSP, borrow pit and accommodation village previously obtained development approval under the Act.

The Development Application for the accommodation camp and for the Mindarie MSP was lodged with the District Council of Karoonda East Murray in 2005. Development Approval was granted by Council on the 11 October 2006 and provisional Building Rules consent was given on the 16 October 2006. The Development Approval and Building Rules Consent were granted with a number of provisions. The construction camp has since been dismantled and decommissioned.

A new workers accommodation camp may be required for the re-commencement of mining of the Mindarie C strandline. The proposed location of the accommodation camp will likely be within the Wanbi Township and development of the camp will be the Contractor’s responsibility. Additionally MZ may also require the redevelopment of some existing houses within private property located in close proximity to the Mindarie Mineral Sands Project area.

MZ are in discussions with the Council to determine what approvals are required for the workers accommodation camp and/or redevelopment of existing housing.

3.1.5 Native Vegetation Act 1991

The Native Vegetation Act 1991 (NV Act) regulates the clearance and management of native vegetation throughout South Australia. It also ensures that areas of high conservation value are protected and that minor vegetation clearance is subject to a thorough assessment process.

For mining projects, DMITRE currently has been delegated authority by the Native Vegetation Council for the administration of the NV Act. As part of the mining approvals, a PEPR must include a Native Vegetation Management Plan (NVMP) which is assessed against the requirements of the NV Act.

The NVMP and consideration of Significant Environmental Benefit (SEB) for the project is included in Appendix E.

3.1.6 National Parks and Wildlife Act 1972

The National Parks and Wildlife Act 1972 provides for the establishment and management of reserves for public benefit and enjoyment, the conservation of wildlife in a natural environment and for other purposes.

The Act was designed to allow for the establishment and maintenance of a system of reserves as well as the protection of threatened species of flora and fauna. It identifies and protects certain species located within parks and reserves, as well as any species listed under Schedules 7, 8 and 9 of the Act.

Section 34 of the Act allows for the constitution of Regional Reserves which allow for the conservation of wildlife and natural features while at the same time permitting use of natural

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resources of the land. Mineral exploration and mining are allowed subject to controls consistent with the Act and, where developed, the Reserve Management Plan.

Seed collection permits are required to collect seeds for rehabilitation and completion purposes. Ethics approval and associated permits are required for any further fauna survey activities. These approvals are generally obtained by the sub-consultant undertaking the work.

3.1.7 Other relevant State legislation

There are a number of other South Australian Acts and policies that are, or may be, relevant to the project.

Details of these Acts and policies are provided in Table 3.1.

Table 3.1 Other relevant Acts and policies

Act/policy Objective/ Relevant section(s) How it applies to the purpose project Aboriginal Heritage To provide for the Authorisation under If an Aboriginal site is Act 1988 protection and Section 23 must be found or needs to be preservation of obtained before disturbing disturbed during the Aboriginal sites, a known Aboriginal site. project, MZ will be objects and human Section 12 provides a required to consult with remains (including process for determining if traditional owners. burials). a site or object is an An Access Clearance Aboriginal site or object. Survey was conducted in Section 20 controls the 2006. discovery and search for Aboriginal objects and remains. Native Title To outline the Section 39 – confirms Relates to the negotiation (South Australian) existence of native Crown ownership of all of native title rights over Act 1994 title, native title natural resources within vacant Crown land. rights, South Australia. Section Under the provisions of compensation for 43 also establishes the Act MZ is required to extinguishment or alternative right to negotiate (and have impairment of negotiate provisions for agreements in place) prior native title and mining activity through to commencement of acquisition of amendments to the SA mining operations. native title in land, Mining Act 1971. Native Title Agreements or entry to/ for the project are in place. occupation of native title land or any other matter related to native title. Heritage Places To provide for the Section 16 provides the If a non-Aboriginal Act 1993 identification, criteria of what is heritage site is found or recording and considered to be of needs to be disturbed conservation of heritage significance. The during the project, MZ will places and proposal to make entry be required to consult with objectives of non- into the South Australian the South Australian Aboriginal heritage heritage register is Heritage Council. significance. provided in Section 17. Mines and Works To improve the Schedule 5 – The Act allows for the Inspection Act regulation and Responsibilities and duties inspection of the Mindarie 1920 inspection of of owners and persons C mining project works (by mines and employed within mines DMITRE) throughout the associated works. and associated works life of the project.

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Act/policy Objective/ Relevant section(s) How it applies to the purpose project Country Fires Act Provides for the Various provisions Prohibits (subject to 1989 prevention, control including: subsection provisions) the and suppression of Section 36(1) lighting of fires in the open fires; to provide for Section 39(1) air during fire danger the protection of season. life and property in The Country Fire Service fire and other (CFS) can direct MZ to emergencies. extinguish or manage a fire or may undertake extinguishment/managem ent of a fire themselves. Occupational To secure the Part 3 – General MZ is required to comply Health Safety and health, safety and Provisions related to with all aspects of the Act Welfare Act 1986 welfare of persons occupational health, safety relating to occupational at work; to protect and welfare. health, safety and welfare. the public against risks to health or safety arising out of, or in connection with, the activities of persons at work or the use or operation of various types of machinery. Pastoral Land To make provision Section 22 – Lessee’s Under the provisions of Management and for the obligation to comply with the Act Pastoral Lessees Conservation Act management and SA Natural Resource are obliged not to hinder 1989 conservation of Management Act 2004 & or obstruct any person pastoral land; and SA Mining Act 1971 and who is exercising, or for other purposes. any regulations under attempting to exercise, a those Acts. right of access to the land pursuant to this Act or any other Act Climate Change Provides for N/A Various requirements and Greenhouse measures to assist relating to State targets to Emissions in the achievement address climate change. Reduction Act of ecologically MZ incorporated suitable 2007 sustainable planning to minimise fuel development in the use. State by addressing issues associated with climate change; to promote commitment to action within the State to address climate change. Radiation To provide for the Section 29 – Registration Certificates #19307 (CUP Protection and control of activities of premises in which and MSP) and #19308 Control Act 1982 related to unsealed radioactive (mining pit and PCP) were radioactivity substances are handled or issued to AZ on 24 May substances and kept. 2006. apparatus, to The EPA has previously protect the confirmed that the environment and registration of Mindarie C the health and mine pit can be safety of people incorporated in to the against the harmful current registration. effect of radiation

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Act/policy Objective/ Relevant section(s) How it applies to the purpose project Environment No specific N/A Ground level nitrogen Protection objective is dioxide from the diesel (Air Quality) Policy established for the motor exhaust (from all 1994 policy. generators) conforms to the limits as outlined in the policy. MZ will take reasonable measures to maintain fuel- burning equipment (generators) to: . be used in an efficient condition . operate in a proper and efficient manner . carry out maintenance; and . process, handle, move or store goods or materials in or on the premises in a proper and efficient manner. Environment Set procedures for Parts 4 – 7 MZ (as the occupier) of Protection (Noise) measuring noise to non-domestic premises Policy 2007 determine must not cause or permit compliance with excessive noise to be the Environment emitted from the Mindarie Protection Act C or A(2) project sites. 1993 and Noise Excessive noise is noise Policy. that exceeds the Set noise goals for background noise level at noise sources. a measurement site (off- Set out criteria for site sensitive receiver) and determining what exceeds the maximum requirements (if noise level for that time of any) regulators will day and the area (rural) in impose to deal which the project site is with noise sources located. not complying with Provides guidance on the policy. instrumentation Provided basis for requirements as well as a consistent time and place of noise approach relating measurements to noise in procedures and records. determination of project applications.

3.2 Australian government legislation

3.2.1 Environment Protection and Biodiversity Conservation Act 1999

Under the provisions of the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) a referral of a proposal to the Commonwealth Environment Minister is required for actions that may have a significant impact on matters of national environmental significance (NES).

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The EPBC Act identifies eight matters of NES:

 World heritage properties  National heritage places  Wetlands of international importance (Ramsar wetlands)  Listed threatened species and ecological communities  Migratory species  Commonwealth marine areas  The Great Barrier Reef Marine Park  Nuclear actions (including uranium mining).

The EPBC referral is necessary to determine whether a project requires assessment and approval under the Act. When a project is referred under the EPBC Act, the Commonwealth Department of Sustainability, Environment, Water, Population and Communities (SEWPAC) makes a determination regarding the status of the proposal as a Controlled Action (i.e. requiring approval) or Not a Controlled Action.

Based on the outcomes of the previous flora and fauna surveys undertaken for the project, a referral pursuant to the requirements of the EPBC Act has not been submitted.

3.2.2 Other relevant Commonwealth legislation

Other Commonwealth legislation relevant to the project includes the following acts (and associated amendments and regulations):

 Aboriginal and Torres Strait Islander Heritage Protection Act 1984.  Australian Heritage Council Act 2003.  Australian Heritage Council (Consequential and Transitional Provisions) Act 2003.  Dangerous Goods Amendment Act 2000.  Environment and Heritage Legislation Amendment Act 2003.  Heritage Act 1975.

3.3 National policies and strategies

The following national policies have been considered in the course of preparing this PEPR:

 Intergovernmental Agreement on the Environment (1990).  National Strategy for Ecologically Sustainable Development (1992).  National Strategy for the Conservation of Australia’s Biological Diversity (1996).  National Greenhouse Strategy (1998).  National Environment Protection Measures.  Ambient Air Quality (2003)  Assessment of Site Contamination (1999)

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4. Existing environment

The area surrounding the Mindarie C strandline has undergone mine development activities commencing in 2006 by AZ. As part of the development of the Mindarie project, a Mineral Separation Plant (MSP) and a Primary Concentration Plant (PCP) were constructed on land owned by AZ located between the Mindarie A(2) and C strandlines.

Mining of the Mindarie A(2) strandline commenced in April 2007 and in July 2009 mining moved to the Mindarie C strandline. Mining at Mindarie C ceased in October 2009 when AZ entered voluntary administration. Rehabilitation of the Mindarie A(2) and previously mined portion of Mindarie C strandlines has commenced. At the date of this submission of this PEPR approximately 95% of the previously mined sites have been successfully rehabilitated to a state similar to the surrounding agricultural land (refer to Section 4.12).

The aerial photo shown in Photo 4.1 was taken during the Mindarie A(2) mining activities and provides an illustration of the mineral sands mining operation.

Photo 4.1 Mining of Mindarie A(2) strandline during 2008

4.1 Land use and proximity to housing and infrastructure

The dominant land use of the project area is dryland agriculture, mostly as cropping and grazing. Wheat and barley are the main crops with lesser areas of rye, oats, triticale (a wheat/rye hybrid) and lupins.

The land has mostly been cleared of native mallee vegetation. Occasional areas of remnant, degraded, or regrowth vegetation and low density scattered trees exist within paddocks androadside vegetation. Remnant vegetation remaining in the relevant Hundreds range from 6% (Chesson) to 22% (McPherson). The hundred of Mindarie has approximately 11% remnant vegetation (Foulkes and Gillen 2000).

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The combined population of the townships of Mindarie and Halidon, located approximately 2.5 km and 8 km south of the MZ project site offices (respectively) is 28.

There are five residential properties in the vicinity of the Mindarie C strandline, however only three of these are within vicinity of planned activities. These are located between 150 m to 1,800 m from the mining activities on Mindarie C (refer to Figure 4.1, Appendix L).

The mining path also crosses Knights Well Road, a secondary road maintained by the District Council of Karoonda East Murray. The East Murray Area School is located 1.1 km to the north of the Mindarie C strandline. The school has approximately 40 students from Reception to Year 12.

4.2 Noise, dust and air quality

4.2.1 Air quality

Existing emissions to air are primarily related to dust generated from farming operations (harvesting and cultivation) vehicle movements along the unsealed road network and vehicle exhaust emissions. Periods of high wind are likely to exacerbate dust generation and lead to an increase in the concentration of airborne dust.

Environmental dust monitoring has been undertaken at the project area since December 2006. The annual radiation report prepared by On Site Technology Pty Ltd provides the results of the dust monitoring over the operational period between July 2008 and February 2011 (refer to Appendix B). Figure 4.2 (Appendix L) shows the locations of the upwind and downwind monitoring locations along the Mindarie A(2) strandline located adjacent to the Mindarie C strandline. Results are presented for the following:

 positional monitoring of in plant inhalable dust  Microvol dust sampling of up wind and downwind environmental samples  high volume dust samples collected adjacent to the gas storage cylinder.

Dust deposition results showed elevated levels at some locations east of the Loxton – Murray Bridge Road since mining and overburden removal commenced in early November 2008 (Australian Zircon 2010). However, these higher yielding samples were restricted to those locations close to mining operations with limited impact at remote sites to the south and west of mining operations. Some elevated dust levels occurred to the west of the mining activities which could be attributed to earthworks associated with rehabilitation and grading of the mined areas (Australian Zircon 2010).

During the previous operational period of the mine only one air quality complaint was made by the public in regard to the presence of dust along McCabe Road. This issue was addressed by AZ reducing the speed limit for AZ employees and contractors along this road to reduce dust emissions.

4.2.2 Noise

The background noise (i.e. when no mining operations are occurring) in the vicinity of the mining lease area is controlled by natural sounds such as wind and birds. At times when there is no wind at night, very low background noise levels have been recorded.

A preliminary investigation of the background noise levels in the project area was conducted in February 2001 and during excavation of the trial pit.

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A summary of the recorded background noise levels is presented in Table 4.1. Measurements of noise levels during the excavation of the trial open pit indicated average noise levels (when measured 15 m from the operations) of 76 dB(A) when the largest D10 dozer was in the excavation (8 to 10 m below surface) to 93 dB(A) near the surface.

The acoustic survey indicates that the background noise levels are in the order of 23 (early morning) and 25 dB(A) during the day at the residences.

Table 4.1 Background noise measurements

Measurement point Background Ambient (LA50) Ambient (LAeq) (LA90) (dB(A)) (dB(A)) (dB(A)) Residence 100 m from mining, 22.7 28.2 35.0 6 am-6:15 am As above 24.7 28.9 37.6 10 am to 10:15 am

Noise impacts from mining activities will depend on the distance from the houses to the mine. The mobile nature of the mine (moves about 20 m/day at the initial mining rate) will ensure that any adverse impacts, even for houses near the mine, will be short-lived.

Rehabilitation works are currently being undertaken within the Mindarie A(2) and Mindarie C strandlines where mining activities were completed by AZ. Noise associated with these rehabilitation activities include the use of four bulldozers including two D10, one D8 and one D7 bulldozers. Rehabilitation works occur six days a week and during the day only.

A noise assessment related to the Mindarie C deposit was conducted by Sonus in October 2011. A copy of this report is provided in Appendix C. The assessment focused on the noise levels expected from the mining operation at the closest dwellings and the school (refer to Figure 4.3, Appendix L). The noise assessment modelled the potential noise emissions associated with mining operations in comparison with the noise emission limits outlined in the South Australian EPA’s Environmental Protection (Noise) Policy 2007. The results of the noise assessment are outlined in Table 4.2 below.

Table 4.2 Noise Modelling Results

Site Modelled Noise Output dB(A) Noise Emission Limit (night time) dB(A) A 50 45 B 45 45 C 44 45

Whilst mining is not currently occurring within the project area it is expected that upon re- commencement of mining of the Mindarie C strandline the noise emissions would be as predicted in the Sonus 2011 noise report. Residence (A) is located in an area of the strandline that will not be mined due to the grade and resources of mineral sand. If in the future a decision is made to mine in this area MZ would implement the noise attenuation measures recommended by Sonus (establishment of a mound with a minimum height of 6m) to ensure that the night time noise limit will be met.

It should be noted that the noise assessment undertaken by Sonus assumed that noise generating activities would be located at the closest point to the dwellings with worst case (highest noise levels) weather conditions. At other times the noise levels would be

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significantly lower. The 10pm to 7am criterion of 45 dB(A) was exceeded (50 dB(A)) at dwelling “A”, a residence that is currently not occupied.

4.3 Topography and landscape

The project area is situated in the Murray Basin, which is bounded to the west by the Mount Lofty Ranges and southern Flinders Ranges and to the north by the Darling Basin. To the south-east, the Lachlan Fold Belt and the Victorian Highlands form the boundaries for the region.

The views within the Karoonda region are mainly middle ground panoramas, in which loose dune crests and mallee remnants form local features. Locally, the mallee region verges create perspective views along roads (Government of South Australia 2007).

The regional land surface consists of gently undulating plains with broad flats. This relief reflects the old strand-plain surface, which forms an accurate pattern of ridges and swales. The height of the land surface varying from approximately 50 m Australian Height Datum (AHD) to a maximum of approximately 80 mAHD with most of the ground surface lying below 65 mAHD.

4.4 Climate

The project is located in the Murray Mallee Region. The closest Bureau of Meteorology (BOM) site for which information is available for the project area is located at Mindarie, approximately 2.5 km south of the MZ project site offices.

4.4.1 Rainfall, humidity, evaporation and wind

The regional rainfall average is 300 mm, hence the site is considered a dry rural environment. The majority of rain falls in the winter growing season (April to October) which on average is 204 mm, with the lowest rainfalls over the summer months (December to March) averaging 53 mm. The mean annual rainfall for towns within the project area is indicated below Table 4.3). According to data from the BOM (2011a) July and August are the wettest months with average monthly rainfall of 31.1 mm and 33.4 mm. The driest months are January and February with 17.2 mm and 19.1 mm respectively.

Table 4.3 Rainfall data

Location Mean annual rainfall (mm) Alawoona 290 Sandalwood 327 Karoonda 339 Source: BOM 2011a

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Figure 4.4 below indicates the mean monthly rainfall for the project area.

Mean Monthly Rainfall for Mindarie SA 40

35

30

Rainfall 25 (mm) 20

15

10

5

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

Figure 4.4 Mean monthly rainfall for Mindarie SA (BOM 2011a)

Relative humidity is highest in June and July (approximately 85%) and decreasing in the summer months. Average annual pan evaporation for the area is estimated to be between 1,600 and 1,700 mm/annum (BOM 2006). At the nearest BOM recording location to Mindarie (Wanbi) the predominant wind direction is from the southwest at an average wind speed of 14 km/hour.

4.4.2 Temperature

The project area experiences temperatures ranging from 14.4°C (June) to 33.2°C in February, with an annual average temperature of 23.5°C. Mean daily minimum and maximum temperatures are tabled below (Table 4.4).

Table 4.4 Annual minimum and maximum temperatures

Month Mean maximum Mean minimum temperature (°C) temperature (°C) January 33.0 27.3 February 33.2 27.9 March 31.4 25.7 April 26.6 20.4 May 20.6 16.9 June 17.0 14.4 July 17.1 14.9

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Month Mean maximum Mean minimum temperature (°C) temperature (°C) August 19.1 15.0 September 22.2 16.4 October 25.6 20.0 November 31.5 25.5 December 30.6 26.4 Annual 24.3 20.9 Souce of Data: BOM, Karoonda Station (BOM 2011b)

4.5 Geohazards

The Mindarie area is of low seismic activity. Due to the nature of the proposed mining no specific earthquake allowance has been made (Brown and Stephenson, 1991).

The orebody contains low levels of naturally occurring radionuclides of the thorium and uranium decay chains. Although the ore is not considered radioactive under the current Australian definitions, in common with all mineral sands mining a Radiation Management Plan was prepared for the previous operations and submitted to the Radiation Protection Branch of the Environment Protection Authority for approval.

Occupational radiation monitoring was conducted at the Mindarie Mineral Sands Project site in 2009. Results of this monitoring event include (Waters 2009):

 dust inhalation was potentially the main source of occupational exposure in all areas of the site  occupational exposure to ionizing radiation was less than the regulatory limit of 20 mSv/year for all workers at the site. The maximum estimated dose (measured external plus calculated internal) was 10 mSv/year  average occupational exposure was approximately 3.6 mSv/year in the dry plant, 1.3 mSv/year in other plant areas and 0.26 mSv/year in non-plant areas of the site.

Environmental radiation monitoring was also conducted at the Mindarie Mineral Sands Project site in 2009. Results of this monitoring event include (Waters 2009):

 There were no measurable radiological impacts on groundwater during the period July 2008 to June 2009.

 Pre operational soil surveys indicated that background levels of uranium and thorium are low and that background gamma radiation dose rates are low.

 Environmental dust and airborne radioactivity (as measured by alpha activity) were low and appeared to be primarily influenced by regional conditions rather than mining or processing operations.

 Environmental radon and radon daughter levels were low and considered consistent with typical outdoor levels in rural inland Australia.

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4.6 Geology and soils

4.6.1 Regional geology

The Murray Basin succession is divided into three Tertiary age depositional sequences, overlain by a thin cover of Quaternary sediments. The Murray Basin covers an area of approximately 300,000 km2 and comprises Cainozoic marine and terrestrial sediments that were deposited in a low relief, saucer-shaped intracratonic basin (Brown and Stephenson 1991).

Sedimentation began in the Murray Basin in the Palaeocene with the deposition of a non- marine dominated succession, the Renmark Group. A minor marine incursion occurred in western and south-western areas, with deposition of the terrestrial component continuing into the middle Miocene. The second phase consisted mainly of marine sedimentary deposition, comprising clays and limestones of the Murray Group. The third episode of deposition consisted of a marine transgression which began with the laying down of a succession of plastic green, grey and brown calcareous clays and silts, with minor sand, named the Bookpurnong Beds. The Bookpurnong Beds are conformably overlain by a succession of marginal marine sands, known as the Loxton-Parilla Sands.

A large number of strandlines have been preserved within the Loxton-Parilla Sands throughout the Murray Basin, many of which, including the Mindarie heavy mineral sands deposits, contain significant concentrations of heavy minerals.

The Murray Basin is bounded to the southwest by basement rocks of the Mount Lofty and southern Flinders Ranges and to the north by late Palaeozoic rocks of the Darling Basin. Sedimentary and metamorphic rocks of the Lachlan Fold Belt and the Victorian Highlands form the eastern and south-eastern boundaries.

The Loxton-Parilla Sands is comprised of the following lithotypes:

 micaceous clays  silts  silty sands  cross-bedded micaceous sands with minor sandy conglomerate and pebble conglomerate, and  fine to coarse grained sands

The Loxton-Parilla Sand unit is disconformably overlain by a sequence of non-marine late Pliocene to Recent sediments. This disconformity between these units is commonly marked by a ferruginous, locally siliceous, weathering profile known as the Karoonda Land Surface.

In the central sector of the basin, the overlying sediments are the fluvio-lacustrine green and red brown clays of the Blanchetown Clay, which range in age from 2.4 to 0.7 million years. In the Karoonda district, the Blanchetown Clay is generally absent or at best poorly developed.

Where the Blanchetown Clay is absent, the Loxton Sand is disconformably overlain by a thin succession of unconsolidated red-brown siliceous silty sand, sandy clay and clay-pellet aggregates, which forms extensive east-west oriented dunes of the Woorinen Formation. This unit varies in thickness from zero to approximately 30 m in locally developed dune fields.

The disconformity is also locally marked by the pedological development of calcrete (refer Figure 4.5, Appendix L). The calcrete, which locally forms massive sheets, is known as the

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Bakara Formation or the Ripon Calcrete. Where present it sits disconformably above the Loxton-Parilla Sand and the Blanchetown Clays and underlies, or is intercalated with, the Woorinen Formation.

The final unit is the development of late stage cresent shaped dunes known as the Lowan Sands. These sands are white to light brown and form high dune systems which generally preclude the exploration for mineral sands because of the increased overburden thickness and also because the Lowan Sand is nutrient deficient and has therefore never been cleared for agriculture resulting in it containing the majority of the high value vegetation conservation areas.

4.6.2 Local geology

The Mindarie heavy mineral sands deposits are located in the lower south western corner of the Murray Basin. In this area, the heavily mineralised Loxton-Parilla sands are often exposed at surface or thinly covered by low dunes interpreted to be of Woorinen Formation or isolated Lowan Sand dunes. From the surface, the general stratigraphic variation is unconsolidated fine to medium sands with occasional layers of sandy clay, clayey sand or clay in the top 0 to 5 m. Calcrete is also seen in the upper 0 to 5 m, usually with the clay units immediately underlying. Within the ore zone, sands are usually fine to medium, with a basal layer of very coarse to granular and occasionally pebbly sands usually up to 5 m thick.

Within the Mindarie Mineral Sands Project area, drilling has identified a series of shorelines containing strandline mineralisation of variable grade and mineral content, of which the Mindarie C deposit is a part. Figure 4.6 below depicts a typical geological cross section of the Mindarie C strandline.

Figure 4.6 Mindarie C strandline cross section

4.6.3 Soil

The soils of the area are generally well-draining sands to loamy sands with a low water- holding capacity, and are typically alkaline exhibiting increasing pH with depth. The soils are further characterised by low organic matter contents, low fertility and low cation exchange capacity. In general, these soils may be deficient in phosphorous, nitrogen, copper and zinc. The light sandy surface soils of the area are susceptible to wind erosion, particularly after tillage.

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Figure 4.7 (Appendix L) shows the locations of the soil groups surrounding the Mindarie C and Mindarie A(2) strandlines as well as sampling locations. There are five soil groups which are listed below:

 calcareous loam  shallow calcareous loam on calcrete  gradational sandy loam with highly calcareous lower subsoil  deep carbonate sand  deep bleached siliceous sand.

In addition, descriptions of the landscape zones and land unit characteristics relevant to the Mindarie Minerals Sands project are summarised below (refer Table 4.5)

Table 4.5 Landscape zones and land unit characteristics of the proposed mine area

Land units Comments Murbko, Kekwick, Note: This zone covers areas in both the southern and northern Mallee. As the Quirke, Billiatt, Mt proposed mining area falls within the northern part of this zone, only the Rescue, Peake, northern characteristics are reported here. Ngarkat . 65% low to moderate rounded and irregularly shaped sandhills up to 3 to Land Zone 4 9 m high. Soils consist of up to 0.10 m of lime-free sand of pH 9.0. . 25% large, steep sandhills, either jumbled or crescent shaped, of between 6 and 30 m high. Soils consist of up to 1.5 m coarse, reddish sand which is lime free in the top 0.4 m with a pH of 7.5 at the surface . 10% flat, small dish shaped areas between dunes. Soils usually consist of less than 0.3 m of loamy sand to sandy loan with a surface pH of 9, overlying lime rubble and calcrete. Wanbi, Halidon, . 35% low, rounded, parallel sandhills up to 9 m high. Usually at least 1.0 m Mindarie of lime-free sand, with a surface pH of 8.5 overlying subsoils with a slight Land Zone 5 accumulation of lime and clay . 5% jumbled sandhills of up to 9 to 15 m high. Sandy surface soils of pH 7.0 overlying a layer with an accumulation of lime and clay which may be exposed in eroded areas . 25% loamy flats with 0 to 0.3 m of lime loamy sand to sandy loam overlying sandy clay loam subsoil. The pH is typically 8.5 to 9 at the surface. . 30% sandy flats with variable depth to clay or calcrete. Generally 0.25 to 0.6 m of lime-free sand to loamy sand with a surface pH of 7.0 over sandy clay and fractured calcrete. . 5% stony rises with 0.05 to 0.3 m of lime free loamy sand to sandy loam with a surface pH of 8.5 to 9 over calcrete and lime rubble. The main variable is the depth to calcrete. Note: Soil background information was sourced from the Murray Mallee District Plan (1992) compiled by the Murray Mallee District Soil Board and in McCord (1995).

The initial assessment of the soil landscapes for the project area was based on the description of topography and soils of the agricultural districts of South Australia compiled by the PIRSA Land Resources Unit. Mapping of soil landscape units has been undertaken at a scale of 1:100,000 across the project area based on existing aerial photography, geology and soil maps and limited traverses. Soil landscape units describe distinct topographic features formed on particular geological materials and include a defined range of soil classes.

A preliminary soil survey was undertaken in 2002 and included the collection of soil samples from five locations across the Mindarie Mineral Sands Project mining area including two

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locations within the Mindarie C ML and 3 within Mindarie A(2) ML (refer Figure 4.7, Appendix L).

The soil profiles observed during the survey are described in Table 4.6 and results presented in Tables 4.7 and 4.8.

Table 4.6 Observed soil profile for Mindarie C and Mindarie A(2)

Site Sample Sample Soil landscape Comments ID depth (m) unit Min C 1A 0-0.33 Dune/swale systems Light orange, unconsolidated sand with with mainly neutral small amount of particulate organic matter to alkaline, 1B 0.33-0.45 Pale orange unconsolidated sand with unbleached siliceous particulate carbonate sand with calcareous subsoil on dunes Min A(2) 3A 0-0.20 Rises and plains Orange-brown unconsolidated sand with with mainly loamy particulate organic matter texture contrast or 3B 0.20-0.35 Generally as above for 3A gradational soil 3C 0.35-0.50 Orange-red fine textured loamy sand

Table 4.7 Soil analysis results for Mindarie C and MindarieA(2)

Sample pH EC (S/cm) Sodicity Carbonate Sulfide Moisture Carbon (%) number (%) (%) (%) content (%) 1A (Min C) 6.1 21 0.15 0.55 <0.05 1 0.22 1B (Min C) 8.3 240 3.7 8.9 <0.05 7 1.88 3A (A(2)) 6.5 68 2.15 1.15 <0.05 2 0.34 3C (A(2)) 6.8 200 0.3 2.85 <0.05 3 0.94

Table 4.8 Metals in soil samples for Mindarie C and A(2)

Sample As B Be Cd Cr Cu Mo Ni Pb Sb Se Sn Zn number ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm 1A (Min C) blr blr blr blr blr blr blr blr blr blr blr blr blr 1B (Min C) blr blr blr blr 12 blr blr 4 blr blr blr blr blr 3A (A(2)) blr blr blr blr 6 blr blr blr blr blr blr blr blr 3C (A(2)) blr blr blr blr 7 blr blr blr blr blr blr blr bl Note: blr (below laboratory level of reporting)

The analytical results indicated no severe limiting chemical characteristics for the soils sampled. Plant growth is generally best within a pH range of 6 to 7.5. Soils sampled in the mining area exhibited pHs between 6.1 and 8.3 with higher pH values generally found lower in the profile (within soils with a higher calcareous content).

Soil EC, a measure of soil salinity, was found to be at a low level, suitable for growing a wide range of plant species. Similarly, soil sodicity, a measure of exchangeable sodium and soil dispersion potential, was also very low in the surface soils. Low sodicity levels suggest that it is unlikely that significant problems with soil surface crusting, which may impede seedling emergence during revegetation, would occur. However, high sodicity clays are know to occur at the base of the root zone in many areas.

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Organic matter (carbon) levels of the soil samples are typical of uncultivated Australian topsoils in dry inland areas ranging from 0.22 to 1.88%. Organic contents are likely to be lower in soils under cultivation and are dependent on cropping history, tillage practices, and the amount and nature of organic material removed from, or returned to, the soil.

Most trace element concentrations in soil samples were either below the laboratory limits of reporting (B, Be, Cd, Cu, Mo, Pb, Sb, Se, Sn) or at levels that are unlikely to have any phytotoxic effects during minesite revegetation (As, Cr, Ni, Zn). Boron levels, however, may be found within the B-horizons of many soil profiles within the area. Boron concentrations exceeding 15 mg/kg may damage cereal crops, but phytotoxic effects may be seen in some horticultural crops at much lower levels (van Rees and Pedley, 1999).

Significant amounts of salt are stored in the deep unsaturated profile between the soil surface and the water table (about 50-60 m) in the lease areas near Mindarie.Calculated

maximum salinities, measured by electrical conductivity (ECSE) for the site are shown in Table 4.9 below. These values can be compared to salinity threshold values for relevant

crops that are likely to be grown in the area. The threshold value is the ECSE value in deciSiemens/metre (dS/m) that results in a measurable decrease in yield (Department of Natural Resources Queensland, 1997). Table 4.10 below shows the threshold values for a number of crops as well as the soil salinities that produce decreases in yield to 90%, 75%, or 50%, respectively.

Table 4.9 Calculated maximum salinity (ECSE)

Site Depth (m below surface) ECSE (dS/m) Mindarie C 10.5 3.7

Table 4.10 Plant salt-tolerance data

Crop Salinity Soil salinity ECSE dS/m threshold 90% yield 75% yield 50 %yield dS/m Barley, grain 8.0 10.0 13.0 18.0 Wheat 6.0 7.4 9.5 13.0 Oats 5.0 5.5 6.3 7.5 Lucerne 2.0 3.7 6.2 10.3 Potato 1.7 2.5 3.8 5.9 Carrot 1.0 1.7 2.8 4.5 From Department of Natural Resources Queensland, 1997. The above data demonstrates that care must be taken to avoid bringing materials into the plant root-zone that could reduce productivity due to boron toxicity or increased salinity. This has lead to the commitment from MZ to sample profiles ahead of mining and to remove and replace topsoil and subsoil separately (refer to Section 8).

Soil Assessment (2009) – eastern portion of Mindarie A(2)

A soil assessment of the previously mined areas of the eastern portion of the Mindarie A(2) strandline was conducted in 2009. This soil assessment study was conducted to assess the soil quality in order to determine the most appropriate rehabilitaiton management measures for replacement of dryland cropping. Results of the soil assessment indicated varying capacity of the post mined Mindarie A(2) strandline to accommodate dryland cropping in its current statedue to (Rural Solutions 2009a):

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 low fertility and water holding capacity exhibited by the deep sand hills  heavier textured soils to a depth of 900 mm in some locations with no severe levels of salinity or sodicity  some sites exhibiting severe chemical constraints to cereal root growth within the top 900 mm.

The soil test results show in almost all heavier soil types a spike in the Exchangeable Sodium Percentage or Cation % Na in the 100 to 200 cm soil layer, often at levels that would cause some soil structural problems and impede root function. These soils are expected to respond to the application of gypsum in the surface (Rural Solutions 2009a).

4.6.3.1 Soil density

Issues have arisen with access of farm vehicles in areas which have been rehabilitated after ceasing of mining on the Mindarie A(2) and Mindarie C strandlines. The key issue was bogging of machinery during the 2010 harvesting period. A study was undertaken in May 2011 to determine the likely causes of the bogging issue found the the likely causes to include:

 an unusually wet December causing a wet layer to develop on top of the clayey soil  the presence of loose sandy soil which has not had time to compact post mining operations  imperfect soil drainage.

A soil density study comparing areas which have been rehabilitated as cropping land with adjacent land has also been carried out. The soil density study was conducted by completing 62 dynamic cone penetration tests (DCPT) to a maximum depth of 1.7 m at regular intervals along the five nominated traverses of the Mindarie Mineral Sands Project site. The DCPT method records the number of blows per distance (blows per 100 mm) of rod penetration by dropping a 9 kg hammer a set distance each time. In general, the higher the number of blows to penetrate a 100 mm distance the stronger (higher strength/density) the soil profile and generally direct comparisons can be made between soil profiles using this method.

Results of the study indicate:

 that some variability in soil density exists in both natural and rehabilitated areas  there is an increased variability in soil density in rehabilitated areas  there is a reduced soil density in the rehabilitated areas tested, particularly at depths greater than 0.3 m  significantly more locations were encountered with blow counts <2 per 100 mm in the rehabilitated areas – approximately 30% of results in assumed rehabilitated areas tested, compared to only 12% of results from the DCPTs conducted in the assumed natural material

In interpretation of these results, it should be noted that:

 The boundary between natural and rehabilitated areas was only approximate. It is possible that some of the readings stated as natural could in fact be from rehabilitated areas, and vice versa.

 The previous presence of a stockpile area on the northern side of the mine site may have led to consolidation over these areas which could increase the density and hence affect the Blow Count of the natural soils.

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 The top 300 mm depth of all locations had been tilled as part of cropping and therefore could be expected to have reduced densities.

 The potential presence of cobbles within the rehabilitated area. Fill cobbles may cause DCPT results to produce very high blow counts or meet refusal, which is not representative of the true ground conditions.

The variability between the natural and rehabilitated areas is unlikely to be the controlling influence on trafficability of farming equipment. Other factors, such as the high rainfall that was experienced in the area and the topography (such as the presence of low lying areas) could impact the density of the near surface soils.

4.7 Surface water

In common with other parts of the Murray Mallee in South Australia, there are no significant natural surface water resources away from the in the area containing MZ’s known mineral sand resources.

Surface water drainage is practically non-existent in the Murray Mallee, due to the generally low relief, low rainfall and highly permeable soils. The only significant natural surface water is the Murray River located around 45 km west of the project site.

4.8 Groundwater

4.8.1 Regional

The project area is located in the Mallee Region of the Murray Basin, where there are five main hydrogeological units (Barnett and Yan, 2000). The units in order of increasing depth below the surface are:

 Pliocene Sands: A generally unconfined aquifer that is not saturated in the study project and is not considered further, although all wells in the study project would pass through this layer before reaching water.

 Bookpurnong Beds (confining layer): This low-permeability unit is absent in most of the project area, notably the western part. However, it becomes hydrogeologically relevant approximately 25 km east of Mindarie, where it causes the underlying Murray Group Limestone Aquifer to be confined.

 Murray Group Limestone Aquifer: This occurs as an unconfined aquifer over the majority of the project area with the exception of an area east of Mindarie as noted above. It comprises a consolidated, fossil-rich limestone typically 100 m thick, of which about 80 m is saturated over most of the project area. Where the aquifer is confined, it is saturated to the full thickness. The salinity of the groundwater ranges from 1,000 to 3,000 mg/L total dissolved solids (TDS) in the project area (1,200 to 1,500 mg/L TDS under the Mindarie A(2) deposit).

 Ettrick Formation (confining layer): This is low-permeability, glauconitic and fossiliferous marl about 15 m thick.

 Renmark Group Aquifer: A confined aquifer comprising unconsolidated carbonaceous sands, silt and clay around 150 m thick. Water from this aquifer is expected to have a salinity of between 1,000 and 3,000 mg/L in the project area.

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The hydrogeology of the project area is indicated on the Pinnaroo 1:250,000 Murray Basin Hydrogeological Maps (Barnett/SADME 1993).

Regional groundwater levels, direction of flow and salinity is towards the River Murray and varies from north to west in the general area. In the area of MZ’s deposits typical groundwater movement is between 0.1 and 0.2 m/yr (S. Barnett pers. comm. in Parsons Brinckerhoff 2006)

The climate of the project area is semi-arid. Current and recent recharge of the aquifer is small, in the order of 0.1 to 1 mm/yr or less in areas with native vegetation (Allison and Hughes 1983 in Parsons Brinckerhoff 2003), although this may be up to 100 mm/yr where soils are sandy and the land has been cleared for agriculture (Kennett-Smith et al. 1994 in Parsons Brinckerhoff 2003). In the project area, it is considered that the increased recharge has not yet reached the aquifer due to the deep unsaturated layer of 40–60 m (Barnett and Yan 2000, Leaney and Herczeg 1999 in Parsons Brinckerhoff 2003). When this occurs, an increase in water levels and groundwater salinity (at least of the upper part of the unsaturated aquifer) is expected to occur, probably in a time frame of 100–150 years. Water level rises due to increased post-clearing recharge have not been observed in the project area to date (S. Barnett pers. comm. in Parsons Brinckerhoff 2003).

A review of water well records from the Mindarie Mineral Sands Project area indicates that the depth to groundwater ranges from 40 to 60 m below surface, with 50 m considered typical. Recorded yields vary from 5 to 50 L/s. Most wells in the area are shallow stock and domestic wells and do not penetrate very far into the Murray Group aquifer (Figure 4.8, Appendix L). The aquifer is considered capable of sustained yields in the upper part in the range 5 to 50 L/s if wells intercept the entire saturated thickness of the Murray Group limestones.

Rainwater collection is common in houses, but town, irrigation and industrial water supplies are obtained from groundwater.

4.9 Fauna and flora

4.9.1 Flora

4.9.1.1 Mindarie C

Environmental and Biodiversity Services (EBS) conducted an ecological assessment of the Mindarie C strandline in February 2008. A copy of this report is available in Appendix D. Native vegetation within the strandline was assessed to determine the vegetation associations present and the condition of the overall biological significance of the native vegetation in accordance with the ‘Guide to Roadside Vegetation Survey Methodology for South Australia’ (Stokes et al 1998).

A literature review and database searches were undertaken to determine the likely presence of flora species within or near the strandline. Database searches for flora species included the Department for Environment and Natural Resources’ Biological Databases of South Australia (BDBSA) and the EPBC Online Database (Protected Matters Search Tool). The literature review included the Biodiversity Plan for the South Australian Murray-Darling Basin and relevant management plans for the nearby Conservation Parks.

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Regional flora

The Mindarie C strandline occurs in an area where native vegetation has been extensively cleared for agricultural purposes.

The project area falls within the Kunlara Environmental Association (2.4.1) and the Holder Environmental Association (2.4.9) and is described as an undulating calcrete plain with extensive sand sheets, low dunes and shallow depressions (Government of South Australia 2007). Vegetation varies from disturbed mallee scrub to open parkland and grassland. The dunes have been cleared to open parkland but elsewhere the vegetative cover is cultural grassland used for cereal cultivation and grazing (Government of South Australia 2007).

The Kunlara Environmental Association contains approximately 9% of remnant vegetation (DEH 2002) and the Holder Environmental Association contains approximately 18% of remnant vegetation. Additionally, the site is located within the Hundred of Mindarie, which contains approximately 11% of its original vegetation (DEH 2002), and the Hundred of Chesson, which contains approximately 6% of its original vegetation (DEH 2002). These percentages are considered to be low and reveal limited native vegetation remains within the area.

Site vegetation communities

Eleven vegetation associations were observed by EBS and are summarised below. The location of these associations is detailed on Figure 4.9 (Appendix L).

Vegetation Association 1

Eucalyptus calycogona ssp calycogona (Square-fruit Mallee)/Maireana brevifolia (Short-leaf Bluebush) Open Mallee

Overstorey species Eucalyptus calycogona ssp calycogona (Square-fruit Mallee) Emergent species Eucalyptus socialis (Red Mallee) Common Maireana brevifolia (Short-leaf Bluebush), Salsola kali (Buckbush), understory species Enchylaena tomentosa var. tomentosa (Ruby Saltbush) Landform Loamy flat Condition Moderate Common weed Avena barbata (Wild Oats), Echium plantagineum (Salvation Jane), Emex species australis (Three Cornered-jack), Salvia verbenaca (Wild Sage)

Vegetation Association 2

Maireana brevifolia (Short-leaf Bluebush)/Exotic grassland Open Shrubland

Overstorey species Non recorded Emergent species None recorded Common Maireana brevifolia (Short-leaf Bluebush), Salsola kali (Buckbush), understory species Enchylaena tomentosa var. tomentosa (Ruby Saltbush), Austrostipa nodosa (Tall Spear-grass) Landform Loamy flat Condition Very poor/poor Common weed Avena barbata (Wild Oats), Chondrilla juncea (Skeleton Weed), Cirsium species vulgare (Spear Thistle), Echium plantagineum (Salvation Jane), Emex australis (Three Cornered-jack), Salvia verbenaca (Wild Sage), Heliotropium europaeum (Common Heliotrope), Marrubium vulgare (Horehound), Asphodelus fistulosus (Onion Weed)

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Vegetation Association 3

Atriplex nummularia ssp. (Old–man Saltbush) Plantation

Overstorey species None recorded Emergent species None recorded Common None recorded understory species Landform Loamy flat/sandy plains and rises Condition Not applicable Common weed None recorded species

Vegetation Association 4

Eucalyptus socialis (Red Mallee)/Eucalyptus calycogona ssp calycogona (Square-fruit Mallee)/Maireana brevifolia (Short–leaf Bluebush) Open Mallee

Overstorey species Eucalyptus socialis (Red Mallee), Eucalyptus calycogona ssp calycogona (Square-fruit Mallee) Emergent species None recorded Common Dodonaea viscosa ssp. angustissima (Narrow-leaf Hop-bush), Maireana understory species brevifolia (Short-leaf Bluebush), Maireana erioclada (Rosy Bluebush) Salsola kali (Buckbush), Enchylaena tomentosa var. tomentosa (Ruby Saltbush), Austrostipa nodosa (Tall Spear-grass), Austrodanthonia caespitosa (Common Wallaby-grass), Austrodanthonia setacea (Small- flower Wallaby-grass) Landform Loamy flat Condition Moderate Common weed Avena barbata (Wild Oats), Chondrilla juncea (Skeleton Weed), Echium species plantagineum (Salvation Jane), Emex australis (Three Cornered-jack), Salvia verbenaca (Wild Sage), Heliotropium europaeum (Common Heliotrope), Marrubium vulgare (Horehound), Asphodelus fistulosus (Onion Weed)

Vegetation Association 5

Eucalyptus oleosa (Red Mallee) Open Mallee

Overstorey species Eucalyptus oleosa (Red Mallee), Eucalyptus oleosa ssp. oleosa (Red Mallee), Eucalyptus calycogona ssp calycogona (Square-fruit Mallee), Eucalyptus gracilis (Yorrell) Emergent species Melaleuca lanceolata (Dryland Tea-tree) Common Maireana brevifolia (Short-leaf Bluebush), Salsola kali (Buckbush), understory species Enchylaena tomentosa var. tomentosa (Ruby Saltbush), Austrostipa nodosa (Tall Spear-grass) Landform Loamy flat/sandy rise Condition Moderate Common weed Citrullus lanatus (Bitter Melon), Emex australis (Three Cornered-jack), species Ehrharta calycina (Perennial Veldt-grass), Mesembryanthemum crystallinum (Common Iceplant)

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Vegetation Association 6

Eucalyptus incrassata var. incrassata (Ridge fruited Mallee) Open Mallee

Overstorey species Eucalyptus incrassata var. incrassata (Ridge fruited Mallee) Emergent species Melaleuca lanceolata (Dryland Tea-tree), Melaleuca uncinata (Broombush) Common Maireana brevifolia (Short-leaf Bluebush), Maireana erioclada (Rosy understory species Bluebush) Salsola kali (Buckbush), Enchylaena tomentosa var. tomentosa (Ruby Saltbush), Austrostipa nodosa (Tall Spear-grass), Austrodanthonia caespitosa (Common Wallaby-grass), Austrodanthonia setacea (Small- flower Wallaby-grass), Enneapogon nigricans (Black-head Grass) Landform Sandy rise/low dune Condition Moderate Common weed Avena barbata (Wild Oats), Chondrilla juncea (Skeleton Weed), Echium species plantagineum (Salvation Jane), Emex australis (Three Cornered-jack), Salvia verbenaca (Wild Sage), Asphodelus fistulosus (Onion Weed) Vegetation Association 7

Eucalyptus oleosa (Red Mallee)/Eucalyptus incrassata var. incrassata (Ridge fruited Mallee) Open Mallee

Overstorey species Eucalyptus oleosa (Red Mallee), Eucalyptus incrassata var. incrassata (Ridge fruited Mallee) Emergent species Melaleuca lanceolata (Dryland Tea-tree), Leptospermum coriaceum (Dune Tea-tree) Common Carpobrotus modestus (Inland Pigface), Enchylaena tomentosa var. understory species tomentosa (Ruby Saltbush), Acacia rigens (Nealie), Acacia nyssophylla (Spine Bush) Triodia scariosa (Spinifex), Austrodanthonia caespitosa (Common Wallaby-grass), Enneapogon nigricans (Black-head Grass) Landform Loamy flat Condition Poor/Moderate Common weed Ehrharta calycina (Perennial Veldt-grass), Salvia verbenaca (Wild Sage), species Asphodelus fistulosus (Onion Weed)

Vegetation Association 8

Revegetation area

Revegetation Eucalyptus calycogona ssp calycogona (Square-fruit Mallee), Acacia species brachybotrya (Grey Mulga-bush), Acacia notabilis (Notable Wattle), Acacia nyssophylla (Spine Bush), Acacia rigens (Nealie), Callitris gracilis (Southern Cypress Pine), Dodonaea viscosa ssp. angustissima (Narrow- leaf Hop-bush) Landform Loamy flat Common weed Ehrharta calycina (Perennial Veldt-grass), Salvia verbenaca (Wild Sage), species Asphodelus fistulosus (Onion Weed)

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Vegetation Association 9

Eucalyptus calycogona ssp calycogona (Square-fruit Mallee)/Eucalyptus incrassata var. incrassata (Ridge fruited Mallee) Open Mallee

Overstorey species Eucalyptus calycogona ssp calycogona (Square-fruit Mallee), Eucalyptus. incrassata var. incrassata (Ridge fruited Mallee) Emergent species Melaleuca lanceolata (Dryland Tea-tree) Common Carpobrotus modestus (Inland Pigface), Enchylaena tomentosa var. understory species tomentosa (Ruby Saltbush), Maireana brevifolia (Short-leaf Bluebush), Maireana erioclada (Rosy Bluebush) Salsola kali (Buckbush), Triodia scariosa (Spinifex), Austrodanthonia caespitosa (Common Wallaby-grass), Enneapogon nigricans (Black-head Grass), Acacia rigens (Nealie), Eremophila crassifolia (Thick-leaf Emubush) Landform Loamy flat/sandy rise Condition Moderate Common weed Ehrharta calycina (Perennial Veldt-grass), Salvia verbenaca (Wild Sage), species Asphodelus fistulosus (Onion Weed), Avena barbata (Wild oats)

Vegetation Association 10

Paddock/grazing land

Overstorey species None recorded Emergent species None recorded Scattered native Carpobrotus modestus (Inland Pigface), Enchylaena tomentosa var. species (other than tomentosa (Ruby Saltbush), Eremophila crassifolia (Thick-leaf Emubush), scattered trees) Austrodanthonia caespitosa (Common Wallaby-grass), Enneapogon nigricans (Black-head Grass) Salsola kali (Buckbush), Austrostipa nodosa (Tall Spear-grass), Dampiera lanceolata var. lanceolata (Grooved Dampiera), Lomandra leucocephala ssp. robusta (Woolly Mat-rush) Landform Loamy flat/sandy plains and rises Condition Very poor/poor Common weed Ehrharta calycina (Perennial Veldt-grass), Salvia verbenaca (Wild Sage), species Asphodelus fistulosus (Onion Weed), Avena barbata (Wild Oats), Chondrilla juncea (Skeleton Weed), Cirsium vulgare (Spear Thistle), Echium plantagineum (Salvation Jane), Citrullus lanatus (Bitter Melon), Marrubium vulgare (Horehound), Oenothera stricta ssp. stricta (Common Evening Primrose)

Vegetation Association 11

Grevillea pterosperma (Dune Grevillea)/Acacia brachybotrya (Grey Mulga-bush) Open Shrubland

Overstorey species Grevillea pterosperma (Dune Grevillea), Acacia brachybotrya (Grey Mulga- bush) Emergent species None recorded Common Acacia pravifolia (Coil-pod Wattle) understory species Landform Low dune Condition Moderate Common weed Salvia verbenaca (Wild Sage), Asphodelus fistulosus (Onion Weed) species

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Flora species of conservation significance

Flora species of conservation significance are discussed below (DENR 2010):

 Acacia notabilis (Notable Wattle) is listed as regionally rare. It was found within Vegetation Association 8.  Aristida holathera var. holathera (Tall Kerosene Grass) is listed as regionally rare. It was found within Vegetation Association 10.

Both species were found in the project area during the 2008 EBS survey, however no species of a State or National conservation significance were recorded during the survey.

4.9.2 Mindarie A(2)

The Mindarie A(2) strandline has undergone mining activities which have significantly altered the pre-mining vegetation within the mining affected areas. As with the Mindarie C strandline the majority of the Mindarie A(2) strandline was comprised of dryland cropping with only small areas of native vegetation present (as shown in Figure 4.9, Appendix L).

Four native Vegetation Associations and two non-native Vegetation Associations occurred along the Mindarie A(2) ML and included (EBS 2005)as follows:

 Aristida contorta – Native Grassland  Eucalyptus Dumosa – Open Mallee  Maireana brevifolia Open Shrubland  Eucalyptus cyanophylla +/- E. socialis – Open Mallee  exotic grassland  cropping.

A total area of 9.86 ha of native vegetation was cleared for the mining of Mindarie A(2), comprising:

 Eucalyptus dumosa Open Mallee association  native/exotic grassland as a sparse occurrence on a sandhill  native grassland Aristida contorta.

Upon completion of mining activities the replanting of approximately 1.5 ha of Native Vegetation along Knights Well Road occurred in 2008. Due to losses during the summer months 387 new native tube stock were planted in July 2009 to replace trees that had died in the original planting.

The remainder of the vegetation that was affected within the Mindarie A(2) mining lease was dryland cropping. These areas have either been rehabilitated or are currently being rehabilitated.

4.9.3 Fauna

4.9.3.1 Mindarie C

Environmental and Biodiversity Services (EBS) conducted an ecological assessment of the Mindarie C strandline in February 2008. A copy of this report is available in Appendix D. An

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assessment of the habitat quality for fauna species was undertaken as well as recording any fauna species which were observed within the strandline.

A literature review and database searches were undertaken to determine the likely presence of fauna species within or near the strandline. Database searches for flora species included the Department for Environment and Natural Resources’ BDBSA and the EPBC Online Database (Protected Matters Search Tool). The literature review included the Biodiversity Plan for the South Australian Murray-Darling Basin and relevant management plans for the nearby Conservation Parks.

Habitat

The habitat value of the scattered trees is considered valuable for birds due to the scarcity of vegetation within the area however none of these trees contained hollows (EBS 2008).

Site fauna

A total of ten fauna species were observed within the project area, with no species of national or state conservation significance being observed.

A possible reason that the data bases indicate low numbers of fauna species in the general project area is probably related to the number of biological surveys and the number of opportunistic recordings of fauna for the area. Their absence within databases is not necessarily justification for their absence on site.

Fauna species of conservation significance

The BDBSA includes records of three fauna species which have been previously recorded in the vicinity of the Mindarie C strandline (DEH 2008). One of the recorded species Leipoa ocellata (Malleefowl) has a national rating of Vulnerable under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

A total of six fauna species of national significance, listed under the EPBC Act, have been listed as possibly occurring within close vicinity to the project area from a search of the EPBC Act Protected Matters Database. These six animal species are discussed below:

 Leipoa ocellata (Malleefowl) is listed as Vulnerable. It is unlikely to occur because the project site contains no suitable habitat.

 Pachycephala rufogularis (Red-lored Whistler) is listed as Vulnerable. It is possible that it may occur within the Roadside Mallee vegetation of the project site however, generally it relies on larger tracts of mallee to persist in an area.

 Polytelis anthopeplus monarchoides (Regent Parrot) is listed as Vulnerable. It is unlikely to occur because the project site contains no suitable habitat.

 Rostratula australis (Australian Painted Snipe) is listed as Vulnerable. It is unlikely to occur because the project site contains no suitable habitat.

 Stipiturus mallee (Mallee Emu-wren) is listed as Endangered. It is unlikely to occur because the project site contains no suitable habitat.

 Nyctophilus corbeni, South-eastern form (Eastern Long-eared Bat) is listed as Vulnerable. It is possible that it may occur infrequently (feeding) within the Roadside

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Mallee vegetation of the project site. However, it has not previously been recorded in the region and limited habitat is available for the species within the project area.

4.9.3.2 Mindarie A(2)

The majority of the Mindarie A(2) strandline has been returned to agricultural land which has little value for native fauna species. Areas containing the Exotic Grassland, Maireana brevifolia (short-leafed bluebush) Open Shrubland and scattered native grass areas surveyed prior to mining operations were considered to provide low habitat value for wildlife. These areas may however, provide suitable habitat for pest speices such as mice (Mus musculus), hence would provide suitable foraging areas for birds of prey and reptiles (e.g. brown snake). The areas may also provide suitable habitat for large native mammals (e.g. kangaroos).

4.9.4 Pest plants and animals

4.9.4.1 Mindarie C

Pest plants

Seven weed species identified during the ecological survey are listed as declared under the Natural Resources Management Act, 2004 and an additional five weed species are considered to be serious environmental weed species. These weed species are discussed below:

 Asphodelus fistulosus (Onion Weed) is classed as a declared weed. It was found within Groups 2, 4, 6, 7, 8, 9, 10 and 11. Common particularly within Vegetation Association 10.

 Chondrilla juncea (Skeleton Weed) is classed as a declared weed. It was found within Groups 2, 4 and 10. Common particularly within Vegetation Association 10.

 Cirsium vulgare (Spear Thistle) is classed as a declared weed. It was commonly found within Vegetation Associations 2 and 10.

 Echium plantagineum (Salvation Jane) is classed as a declared weed. It was found within Groups 1, 2, 4, 6, and 10. Common particularly within Vegetation Association 10.

 Ehrharta calycina (Perennial Veldt Grass) is classed as an environmental weed. It was commonly found within Vegetation Association 10. Scattered individuals were found within Vegetation Associations 5, 7, 8 and 9.

 Ehrharta villosa var. maxima (Pyp Grass) is classed as an environmental weed. Scattered small groups were found within Vegetation Associations 5 and 10.

 Emex australis (Three-corner Jack) is classed as a declared weed. Scattered individuals were found within Vegetation Associations 1, 2, 4, 5 and 6.

 Euphorbia terracina (False Caper) is classed as a declared weed. It was commonly found within Vegetation Association 10. Scattered individuals within Vegetation Associations 7, 8 and 9.

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 Marrubium vulgare (Horehound) is classed as a declared weed. It was commonly found within Vegetation Association 10. Scattered small groups within Vegetation Associations 2 and 4.

 Mesembryanthemum crystallinum (Common Iceplant) is classed as an environmental weed. It was commonly found within Vegetation Association 10. Scattered small groups within Vegetation Associations 1, 2, 4, 5 and 6.

 Oenothera stricta ssp. stricta (Common Evening Primrose) is classed as an environmental weed. It was commonly found within Vegetation Association 10. Scattered small groups within Vegetation Associations 2 and 4.

 Sorghum halepense (Johnson Grass) is classed as an environmental weed. It was found in a small patch (roadside) within Vegetation Association 2.

Pest animals

Oryctolagus cuniculus (European Rabbit) and Vulpes vulpes (European Red Fox) were the only pest animal species observed during the project survey.

Pathogens

The project site is not located in a high risk Phytophthora or Mundulla Yellows area within the state.

4.9.4.2 Mindarie A(2)

A weed and pest survey conducted in 2009 on the eastern portion of the Mindarie A(2) strandline identified the following species (Rural Solutions 2009b):

 Amsinckia spp. (Yellow Burr-weed)  Asphodelus fistulosus (Onion Weed) – classed as a declared weed.  Cenchrus incertus and Cenchrus longispinus (Innocent Weed)  Chondrilla juncea (Skeleton Weed) – classed as a declared weed  Cirsium vulgare (Spear Thistle) – classed as a declared weed  Echium plantagineum (Salvation Jane) – classed as a declared weed  Emex australis (Three Corner Jack) – classed as an environmental weed  Euphorbia terracina (False Creeper) – classed as an environmental weed  Marrubium vulgare (Horehound) – classed as an environmental weed  Tribulus terrestris (Caltrop)  Xanthium spinosum (Bathurst Burr)  Oryctolagus cuniculus (European Rabbit)  Vulpes vulpes (Red Fox)

In the broader South Australian Murray Darling Basin area problem feral animals include: rabbits, Capra hircus (goats), foxes and Felis catus (cats). In addition, several native species threaten biodiversity and rehabilitation projects when in large numbers such as Macropus fuliginosus (Western Grey Kangaroo), Eolophus roseicapilla (Galah) and Cacatua sanguinea (Corella).

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4.10 Heritage

4.10.1 Aboriginal heritage

Prior to European settlement, the Murray Mallee was populated by Aboriginal peoples who belonged to two cultural groups, the Ngarkat and Ngintait. These groups were reliant on water from soaks scattered throughout the region, and had access to River Murray waters during times of drought. Their numbers appear to have been limited by the poor water supply and there are signs that they ranged widely through this region (Parsons Brinckerhoff, 2006).

Although the land to be mined is mostly used for farming with extensive modification of landscape by vegetation clearance and its history of agricultural use, Australian Zircon (as Southern Titanium) carried out an Access Clearance Survey in 2006. There are no previously recorded sites on the Register of Aboriginal Site and Objects, maintained by the Department of Aboriginal Affairs and Reconciliation within the project study region. During the 2006 one area adjacent to the Mindarie C strandline was considered to be of significance by representatives of the Mannum Aboriginal Community Association Incorporated (refer to Figure 4.10, Appendix L) (Wood 2006).

4.10.2 European heritage

There are a number of European heritage items located within the District Council of Karoonda East Murray. Details of these items and their distance from the Mindarie C and Mindarie A(2) strandlines are summarised in Table 4.11.

Table 4.11 European heritage items, District Council of Karoonda East Murray Area

Item Location Distance from Listing the operations (km) Billiatt Conservation Park Halidon 10 Register of the National Estate Elizabeth Well Mercunda North 9 Register of the National Estate Lowan Conservation Park Perponda 48 Register of the National Estate Nildottie Well Bakara 27 Register of the National Estate State Heritage Register Elizabeth Well including Mercunda North 9 State Heritage Register Water Tank, Drinking Troughs and Cottage (ruin) All Hallows Anglican Karoonda 44 Murray Mallee Heritage Survey Church Area School Karoonda 44 Murray Mallee Heritage Survey Cemetery Galga 9.5 Murray Mallee Heritage Survey Community Hall Mantung 15 Murray Mallee Heritage Survey Community Hall Sandalwood 18 Murray Mallee Heritage Survey Community Hall Wanbi 4 Murray Mallee Heritage Survey Community Hall Wynarka 57 Murray Mallee Heritage Survey Former Community Hall Mercunda North 9 Murray Mallee Heritage Survey Former East Murray Halidon 8.5 Murray Mallee Heritage Survey Council Chambers Former Institute Borrika 28.5 Murray Mallee Heritage Survey Former School House Mindarie 0.5 Murray Mallee Heritage Survey

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Item Location Distance from Listing the operations (km) Former Schoolhouse Wanbi 4 Murray Mallee Heritage Survey Former Shop/Residence Sandalwood 18 Murray Mallee Heritage Survey Lutheran Cemetery Via Bakara 27 Murray Mallee Heritage Survey Lutheran Church Via Bakara 27 Murray Mallee Heritage Survey Masonic Lodge Karoonda 44 Murray Mallee Heritage Survey Our Redeemer Lutheran Perponda 35.5 Murray Mallee Heritage Survey Church Post Office Karoonda 44 Murray Mallee Heritage Survey Railway Station Karoonda 44 Murray Mallee Heritage Survey Simpson’s Hotel Wanbi 4 Murray Mallee Heritage Survey St Finian’s Catholic church Karoonda 44 Murray Mallee Heritage Survey St John’s Lutheran Church Karoonda 44 Murray Mallee Heritage Survey Turner Well Via Kalyan 30 Murray Mallee Heritage Survey Uniting Church Karoonda 44 Murray Mallee Heritage Survey Water Tank Mindarie 0.5 Murray Mallee Heritage Survey

4.11 Proximity to conservation areas

The closet conservation area to the Mindarie C strandline is the Billiatt Conservation Park and Wilderness Area located approximately 10 km southeast of the Mindarie C Strandline. Other conservation areas within the region include

 Bakara Conservation Park (approximately 36 km northwest)  Karte Conservation Park (approximately 50 km southeast)  Lowan Conservation Park (approximately 56 km southwest)  Peebinga Conservation Park (approximately 56 km southeast).

Figure 4.11 (Appendix L) indicates the location of conservation areas in relation to the Mindarie C strandline.

4.12 Pre-existing site contamination and disturbance

Disturbance and contaminating activities within the project area primarily include the previous mining activities associated with AZ (including the MSP and PCP) and the current and future planned rehabilitation works. In 2006 AZ was given approval to commence construction activities in order to mine the Mindarie strandlines. Site establishment and construction activities for Mindarie A(2) commenced in 2006. Following construction and commissioning of plant and equipment, mining of mineral sands in the A(2) strandline commenced in April 2007.

AZ commenced mining operations on the Mindarie C strand (refer Figure 1.2, Appendix L) in July 2009 with mining activities commencing in a section of the strand immediately west of the Loxton – Murray Bridge Road (approximately 20.42 ha in size). In October 2009 mining activities ceased when AZ went into Voluntary Administration.

MZ has made significant progress on the rehabilitation of the Mindarie A(2) and Mindarie C strandlines where mining had been undertaken. Current activities within the project area are

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focused on rehabilitating Mindarie C and Mindarie A(2) strandlines that have an approximate combined area of 255 ha.

Figure 4.12 (Appendix L) shows the Mindarie A(2) and Mindarie C strandlines and outlines the areas which are currently undergoing rehabilitation or planned to be rehabilitated over the next 12 months. This is discussed in further detail in Section 5.19.

4.13 Socio-economic

The Mindarie project area lies in the Karoonda East Murray District Council area, with Karoonda being the largest populated centre in the vicinity of the mineral sands site.

Karoonda is home to 317 families; with 44.8% with children and 42.2% of individuals between the ages of 25–54. The median household income in the area is $634 per week, which is significantly lower than the Australian median household income of $1,027 per week (ABS Census Data, 2006). The main income for 46% of the labour workforce is derived from the sheep, beef cattle and grain farming industries. The next most populated industry is school education, employing 6% of the Karoonda East Murray District Council workforce (ABS Census Data, 2006).

4.14 Transport and traffic

The current regional road and rail network is shown in Figure 4.13 (Appendix L) and comprises of the following main elements:

 The Tailem Bend-Loxton railway line. The land and infrastructure are ‘owned’ by the Department of Planning, Transport and Infrastructure (DTPI) and leased to Genesee Wyoming Australia.

 The main Murray Bridge-Loxton arterial road. This is a sealed road, maintained by DPTI, providing an inter-regional function. It links Mindarie and Loxton with Murray Bridge to the southwest, and less directly with Tailem Bend. This road is approved by DPTI for B-Double truck use access.

 Local primary roads. These link towns and farming properties, providing a reasonable level of accessibility throughout the region. These are generally Council maintained roads with gravel pavements (principally crushed limestone), in the order of 8–9 m wide. Alignment is generally adequate for local access and truck traffic, although some localised sections are of restricted alignment. Some sections of some roads have been bituminised, e.g. parts of the Mindarie-Mantung road including a section past the East Murray Area School.

 Local secondary roads. These provide connectivity between the primary roads, and are typically up to 7 m in width, with narrower sections, and with some sections of poor alignment. Road surfaces are graded, and generally in reasonable condition for local traffic.

 Property access roads. Typically single-track roads, their primary function is to provide access to farming properties. Their alignment does generally not support heavy truck traffic without selected upgrading to improve standards (width, alignment).

Current traffic levels on the local road network are variable, depending on road function. Primarily the road network provides for local property access with some minor inter-regional

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movements. The road linking Mindarie with Mantung in the north (via the East Murray Area School) is understood to attract the highest traffic flows. There is also some seasonality of flows, with increases in truck movements during harvesting periods.

There are four school buses that service the East Murray Area School with only one utilising Knights Well Road.

Currently the Mindarie Mineral Sands project experiences traffic flow as a result of ongoing rehabilitation and operational works.

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5. Project description

5.1 General description and summary

The Mindarie Mineral Sands project is an open-pit mineral sand mining operation and involves the mining of an estimated 58.1 Mt of heavy mineral reserves to a vertical depth of approximately 26 m. Mining activities will commence northwest of the Loxton – Murray Bridge Road at Section 27 moving towards Section 22 in the east. Once the western side of the strandline has been mined, the operations will move towards the eastern side of Loxton – Murray Bridge Road (refer Figure 1.2, Appendix L) with mining determined by grade control.

Mining operations on the Mindarie C strandline will occur at a production rate of 120,000 tonnes per annum (tpa) of heavy mineral concentrate (HMC) at 90% heavy minerals for approximately two years and eight months.

MZ are currently undertaking rehabilitation activities along the Mindarie A(2) strandline and will continue to do this until rehabilitation has been completed and all applicable land returned to the landowners (refer to Section 5.19 for details on the rehabilitation process).

Sections 5.1 to 5.18 below relate to the mining process proposed for Mindarie C.

5.1.1 General

In general, operations on the Mindarie C strandline will include the following and is illustrated in Figure 5.1 (Appendix L):

 an open pit containing mining equipment  a slurry unit – located in the open pit or on the edge of the pit  a Primary Concentration Plant (PCP).

The mining method will involve the use of landplanes (tractor-scoops) or similar to strip topsoil and subsoil.

Overburden will be moved by the mining fleet (scrapers) to the back of the pit in a staged operation (refer Section 5.3.4) such that a section of the base of the pit is available for mining of ore and the remainder is used for rehabilitation purposes.

Ore will be separately excavated by the mining fleet and pushed/stockpiled at the slurry unit where it is fed into a slurry unit by a front end loader. The section of mined ore is then backfilled with tailings and/or overburden material by bulldozer, scraper or loader and/or dump trucks. The average length of the pit operations to be worked (i.e. open) at any one point in time will be approximately 2 km.

The slurry unit which is located in the mine pit screens the ore at 45 mm and mixes the extracted sand with water to form slurry which is pumped to the PCP.

The slurry pumped from the pit is again screened at 3 mm and processed through a two stage de-sliming cyclone circuit and a six stage spiral to produce HMC which is then stockpiled on site for transport initially via truck ( or rail in the future) to Port Adelaide for export (refer to Section 5.8).

Sand ‘tails’ and clay ‘slimes’ – natural clay fraction of ore) produced from the PCP will be returned to the rear of the pit via slurry pipes. The sand tails and slimes will be combined

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prior to being returned to the pit void with a rheology modifier to aid clear water production and rapid rehabilitation.

Key characteristics of the project are summarised in Table 5.1.

Table 5.1 Key characteristics of the Mindarie C project

Item Description Project location Approximately 150 km east of Adelaide, South Australia Mineral lease ML6226 Project area 63 ha Mindarie C West 100 ha Mindarie C East 53 ha Mindarie C Far East Mining method Conventional open pit dry mobile hole Available minerals in HMC 90% heavy mineral grade containing zircon at 23%, rutile at 10%, ilmenite at 65% Waste to ore ratio 3:1 Mining operation 120,000 tpa HMC Treatment rate 500 tonne per hour pumped to PCP Open pit dimensions (at any given 1-2 km long, 120 m wide, 26 m deep time) Mine life Two years and eight months Hours of operations Continuous – 24 hours per day, 7 days per week Power source 66 kV overhead powerline from Pyap/Loxton substation Total power requirement 1,500 MW/month Raw water source 6 GL/yr with a maximum of 42.6GL over 10 years Transport route Trucked to Port Adelaide (possibility to transport via rail to Port Adelaide in the future) Accommodation Potential for an Accommodation Camp in Wanbi (50-80 people) Employees Operations: approximately 30–40 employees plus approximately 35–40 contractors ٭Project capital expenditure $15 million This value does not include the cost to acquire the Mindarie asset ٭

The major components of the project and their proposed footprints are identified in Table 5.2 and described in detail in the following sections. An indicative proposed project layout and location of related infrastructure is shown on Figure 5.1 (Appendix L).

Table 5.2 Mindarie C – maximum project clearance footprints

Component Mindarie C West Mindarie C East (average 270 m wide) (average 200m wide) Length and area of land that has been Length 1,950 m Length 2,650 m either stripped of topsoil or is awaiting Area 526,550 m2 Area 530,000m 2 reinstatement of topsoil Length and area of land that has been Length 1,800 m Length 2,450 m either stripped of subsoil or is awaiting Area 486,000 m2 Area 490,000 m2 reinstatement of subsoil

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Component Mindarie C West Mindarie C East (average 270 m wide) (average 200m wide) Length and area of land that has either Length 1,500 m Length 2,050 m had overburden removed or is awaiting Area 405,000 m2 Area 410,000 m2 reinstatement of overburden Note: Due to the varying width of the orebody the dimensions above represent the average width over the length of the proposed mined area

5.1.2 Project schedule

Table 5.3 describes the proposed project schedule for the Mindarie C project.

Table 5.3 Mindarie C project schedule

Item Target date Draft PEPR submission December 2011 Final PEPR approval April 2012 Award mining contract May 2012 Award transport contract May 2012 Commence site works including pre-strip – Mindarie C West July 2012 Commence site works including pre-strip – Mindarie C East January 2013 Commence mining of ore August 2012 Cease production April 2015 (two years and eight months)

5.1.3 Project alternatives

5.1.3.1 Mining and processing methods

The Mindarie Mineral Sands Project mining operations (which included Mindarie A(2) strandline and approximately 20.42 ha of the western portion of the Mindarie C strandline) operated from August 2007 to October 2009. During these processing operations multiple products were produced including zircon, rutile and ilmenite concentrates.

As part of the feasibility study for Mindarie C, the processing methods were reviewed for areas of improvement. The following processing issues were identified as contributing to previous poor recoveries and low success rates for the reconstitution of mining voids:

 unsuitable thickener performance  increase in slime in spiral feed due to recirculation and build up  pumping slurry for long distances  lack of instrumentation and control on all plants including PCP  poor operation of settling agent (rheology modifier) resulting in ‘dirty’ water and long consolidation times  poor water management due to increased slimes and ineffective use of rheology modifier.

The revised mining and processing method will address the above issues and is outlined below.

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Rheology modifier

When the mining of Mindarie C re-commences, the rheology modifier addition will be controlled by implementing the following:

 the rheology modifier make up system will be located at the PCP for better control. In the past it was located up to 4 km from the PCP which meant travelling for inspection of the unit  additional instrumentation will be added to ensure that any breakdowns will be quickly identified  the rheology modifier pipeline will be run with the main slurry pipeline so that it is visible and not damaged through use of heavy earthmoving equipment  interlocks on the rheology unit to shut down the PCP when the rheology modifier make up system fails  appointment of a dedicated supervisor in charge of the rheology modifier make up system (and flocculent for the thickener)  using more recent technology developed by rheology modifier suppliers.

Additionally, to ensure thickener performance is maintained the flocculent system is required to utilise clean water (i.e. water without solids), the flocculent will be added at the correct dose and the ratio of tonnage to thickener will be limited when the thickener encounters problems. If it is not possible to produce clear water as a result of the flocculent system then the PCP will be stopped immediately and alteration to the process implemented to ensure clear water is being produced.

For additional information on the use and characteristics of the rheology modifier refer to Section 5.5.2.

Poor stockpile drainage

The drainage of the HMC stockpile will be managed through development of a trench on the low side of the stockpile. This trench will slope to a sump at one end, a spindle slurry pump will be placed in the sump and the run-off water directed back to the PCP.

Additionally, there will only be HMC wet stockpiles now that the MSP is no longer required.

Increase in slime/poor water management

Slime (as measured by material passing a 45 µm screen) naturally occurs in the ore within the strandlines around the Mindarie Mineral Sands Project area. This is first removed before the spiral separation circuit in a two stage cyclone circuit. The overflows from the second cyclone cluster gravitate to the thickener, where the slime is thickened and pumped with sand tails back to the mining void. The cyclone underflows are pumped to the spiral separators and the HMC removed and the sand tails are returned with the slime.

Rheology modifier is added to the sand and slime tails when discharged into the tailings dam in the mining void. This agglomerates the sand and slime fraction and releases most of the water. If added correctly as discussed above the water release will contain little or no solids and this can be used to slurry fresh ore.

It is critical that the thickener and rheology modifier addition is undertaken in a managed process. If there are issues with either then the PCP will be stopped immediately to prevent any slime building up in the water circuit.

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Pumping slurry for long distances

Booster stations will be located adjacent to the pit to assist with slurry pumping when the PCP is greater than 2 km from the mining area. These booster pumps will be controlled via telemetry which will allow operators to control the pump speed from the control room.

In addition the pumping system will be designed by experts and the correctly matching pipes and pumps will be used.

Instrumentation and control on all plants including the PCP

During previous mining activities it had been identified that the control of levels in the sumps in the PCP caused overflows which resulted in frequent spillages. MZ will be including level sensors and control valves to overcome these issues and also develop a new operating and control philosophy to ensure easier and more efficient operation with minimal spillage.

All process modules will be provided with a local Programmable Logic Control (PLC) and a radio telemetry module. Once the individual process module is plugged into the power module, local and remote monitoring and control will be made available on that individual process module.

The PCP, process modules and mine modules can all be monitored from the Supervisory Control and Data Acquisition (SCADA) computer in the PCP control room.

Mining of ore body

The mining operation will consist of an earthmoving fleet of scrapers, bulldozers, excavators, front end loaders and dump trucks. These are standard items of equipment used in the mineral sands industry.

The method to be employed will require less stockpiling of overburden and double handling than previously required when mining Mindarie A(2) and portions of Mindarie C. A haul road will be constructed along one side of the pit to move overburden directly to the mining void behind the tailings cell. This will reduce the amount of rehandle of stockpiles from the sides of the pit and reduce the overall mining cost. In addition there is a reduction of the overall land disturbance which reduces the rehabilitation timeframe and costs.

To improve the economic viability of the mine more ore will be mined (as opposed to overburden) and this will reduce the strip ratio. Previously the average strip ratio was 7:1 meaning for each cubic metre of ore another seven cubic metres of overburden needed to be moved to expose the ore. MZ has selectively chosen areas where the overburden is less and in addition there is a lower grade layer (dune material) above the ore (strand material) which reduces the strip ratio further to around 3.2:1.

5.1.3.2 Transport routes

Transport within the Mindarie Mineral Sands Project area will utilise existing local roads and haulage routes. Additionally haulage routes will be developed adjacent to the mining area for use during mining operations (e.g. haul roads developed along the length of the strandline).

HMC will be transported to Port Adelaide using the existing local (Council) and main (DPTI) roads. A trucking Contractor will be responsible for transporting the HMC.

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MZ are currently investigating the opportunity to utilise the rail network to transport HMC to Port Adelaide and should this option be deemed economically viable MZ will commence consultation with DPTI and Genesee and Wyoming Australia in the future.

5.1.3.3 Mineral separation

Previous mining activities included the HMC transportation to the MSP for further treatment to produce marketable end products including zircon, rutile and ilmenite. These products were then railed to Port Adelaide for transport to customers.

Mineral separation is not proposed for this project.

5.1.3.4 PCP location

Currently the PCP is located adjacent to Mindarie A(2) strandline and the existing MSP within the project administration site (refer to Figure 5.8, Appendix L). This means that for mining of the western portion of Mindarie C slurry will be pumped 4 km to the current location of the PCP. When mining of the eastern portion of Mindarie C slurry will be pumped over a distance of approximately 6 km. Pumping experts have been commissioned to design a suitable pumping system to pump the 6 km.

5.2 Resources, products and markets

5.2.1 Geological environment

The Mindarie Mineral Sands Project deposits are located in the lower south-western corner of the Murray Basin. In this area, the heavily mineralised Loxton-Parilla sands are often exposed at the surface, or thinly covered by low dunes interpreted to be of Woorinen Formation (or isolated Lowan Sands dunes). From the surface, the general stratigraphic variation is unconsolidated fine to medium sands with occasional layers of sandy clay, clayey sand or clay in the top 0 to 5 m. Calcrete is also seen in the upper 0 to 5 m, usually with the clay units immediately underlying. Within the ore zone, sands are usually fine to medium, with a basal layer of very coarse to granular and occasionally pebbly sands usually up to 5 m thick.

Within the Mindarie Mineral Sands Project area, drilling has identified a series of shorelines containing strandline mineralisation of variable tenor, of which the Mindarie C deposit is a part.

The geology of the Mindarie C strandline including a cross section of the strandline is included in Section 4.6 and Figure 4.6 (Appendix L).

5.2.2 Total operations ore reserves

The mineable reserves for the Mindarie Project comprise eight individual and parallel northwest-southeast oriented strandlines up to 30 km long, several kilometres from each other. The eight separate mineral sand strandlines include the following:

 Mindarie A(1)  Mindarie A(2) – mining of this strandline has been completed.  Mindarie C  Amiens  Mercunda  Long Tan

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 Lone Pine  Halidon.

Mining of the ore reserves from the seven un-mined strandlines (excluding Mindarie A(2) and a small portion of Mindarie C, which have already been mined) will produce 58.1 million tonnes of ore containing 4.3% heavy mineral. The total heavy mineral contained from this ore reserve is estimated to be 2.5 million tonnes. These figures are considered the most up- to-date ore reserve estimates and have taken into account the mining undertaken along the Mindarie A(2) and Mindarie C strandlines.

The current identified ore reserves are estimated to provide a project life of approximately 13 years at a nominal processing rate of 3.6 million tonnes of ore per year.

The ore reserve estimate is based on a variable cut-off applied to the deposit based on the mineral assemblage for each resource block. The revenue generated from the mineral assemblage for each block and costs associated with the mining and processing have been taken into account in determining the cut-off parameters. After the application of the revenue and costs, a block was considered if the ore generates a positive cashflow. A 2.5% ore loss has been provided for in the reserve. This methodology is consistent with that of the previous 2006 Ore Reserve Statement (as provided for Mindarie A(2)).

A number of changes to the economic inputs of the previous ore reserve estimates listed below have resulted in a conservative outcome for the economic assessment of those estimates:

 On the basis of experience during mining of Mindarie A(2) and Mindarie C, and mining experience in other parts of the Murray Basin indicates that an overall 60o batter angle could be applied.

 The recognition of mineralised dunal material above the strandline will increase the HM inventory by increasing the overall tonnage, but reduce the average grade and the stripping ratio.

 The production of an HMC will include the available monazite in some portions of the strandline which is an additional economic contributor and was not considered in the previous economic models.

 Additional value will be gained through sending ilmenite overseas within the HMC.

 The 63 and 45 micron limitations to the resources and reserves do not take into account the actual recovery characteristics of the PCP being 30 micron.

As part of the planned development detailed grade control drilling on a 60 m x 25 m grid is being completed in order to provide the required information for the final mine plan and scheduling of mining operations. To date this drilling has been completed over:

 Mindarie A(2) – mining of this strandline has been completed and rehabilitation is underway  Mindarie C West – This has resulted in a mineral resource for the unmined section of Mindarie C West of 2,875,000 t at 2.7% HM  Mindarie C East – This has resulted in a mineral resource for the unmined section of Mindarie C West of 4,268,000 t at 2.5% HM  Mindarie C Far East – Assaying and Resource update is on-going.

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The valuable heavy mineral content (VMC) of the total heavy mineral content (THM) and the estimated content of the material for the zircon, rutile, leucoxene and ilmenite products were determined in 2008 these figures have been updated based on conducting additional drilling utilising a grid of 60 m x 25 m (Snowden 2008 and Mason 2011). Table 5.4 indicates the total Mindarie Mineral Sands Project reserves, the newly estimated ore reserves for Mindarie C East and the previously estimated ore reserves for Mindarie C West.

Table 5.4 Mindarie Mineral Sands Project ore reserve estimate (2008 figures updated based on a 60m x 25m drilling grid for Mindarie C East)

millions % total % slimes Proportion of source material within heavy of heavy mineral component tonnes minerals Zircon Leucoxene Rutile Ilmenite minerals % % % % Project 58.1 4.3 11.0 21.2 6.4 4.8 64.8 Mindarie C 2.9 2.7 11.9 21.5 6.0 4.8 63.3 West Mindarie C 4.3 2.5 11.9 21.5 6.0 4.8 63.3 East Note: Does not include Mindarie Far East

5.2.2.1 Exploration

Mining within the Mindarie C strandline would commence in the south-western half of ML 6226. However, exploration drilling has shown the presence of the Mindarie C strand to extend for the full length of the mining lease and also to extend outside the lease to the southeast.

As part of the future development of the Mindarie Mineral Sands Project the remaining part of ML 6226 will require resource definition and potentially grade control drilling in order to define any additional economic areas of the strandline. This work has not been completed to date because these existing reserves are too far from the current development areas that any future mining would have to be done in conjunction with the Mercunda/Mindarie A1 operations.

The exploration drilling will be similar in nature to that already completed on Mindarie C West and Mindarie C East and consist of shallow aircore drilling, assaying, gamma logging, mineralogical and processing studies. This work is likely to be conducted over the next 5 to 8 years.

Exploration drill holes will be drilled using a Reverse Circulation Air Core method and will include:

 being drilled at a nominal 75 mm diameter, 'NQ' size  being drilled to less than 50 m depth  samples are returned to the surface inside the rods using air  water injection is sometimes also used in assisting drilling 'difficult' ground. Drilling water will be fresh water carried on the support truck, no saline water will be used  drilling equipment will be mounted on 4x4 light trucks  drilling support equipment is mounted on 4x4 light truck.

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Drilling will only be conducted during daylight hours. The water table is not expected to be intersected at the proposed depths of drilling. Drilling at any particular site is expected to take less than two hours.

Potential impacts to vegetation will be minimised by careful siting of the drill holes to avoid damage to shrubs and trees. The exploration drill holes will be located within areas which will be mined during future operations, thus any impacts to native vegetation will be considered in the Significant Environmental Benefit offsets calculated for the project.

Rehabilitation of each drill site will occur at the completion of the hole, prior to moving to the next site and include:

 backfilling of the hole with drill cuttings  plugging of the hole with an Octaplug or similar at a depth of 2 m  checking for and removal of any rubbish or drilling materials  no sumps or other excavations are required for this drilling technique.

5.2.3 Production rate, products and market

The life of mine schedule is based on the following assumptions:

 only proven and probable ore reserves are included in the schedule  a mining rate of 3.6 million tonnes of ore per year (one operating mine)  Mindarie A(2) has been mined and was removed from the ore reserves  mining of the eastern and western portions of Mindarie C and eastern section of Amiens to supply the first five years of mining, other strands could supply seven years of operation for a total mine life of 13 years.

The Mindarie C deposit is the second strandline to be developed as part of the larger Mindarie Mineral Sands Project.

The strandline has an estimated project life of approximately two years and eight months of mining and will produce approximately 10 million tonnes of ore and an estimated 0.35 million tonnes of heavy mineral containing zircon at 23%, rutile at 10%, ilmenite at 65%.

The current mining proposal for Mindarie C West, East and Far East is associated with the south-eastern half of ML 6226. Exploration drilling has shown the presence of the Mindarie C strandline to extend for the full length of the mining lease and also to extend outside the lease to the south-east (refer Section 5.2.2.1). Mining of Mindarie C will not cut across McCabe Road and Mindarie C Far East will terminate on the western side of Charleson Road. The average indicative tonnes per annumto be produced from the Mindarie Mineral Sands project is 120,000 tonnes of HMC.

5.2.4 Material movement

The HMC material will be stockpiled within the Mindarie Mineral Sands Project area adjacent to the plant site area (refer to Figure 5.11, Appendix L). Initially the HMC will be transported either via B-Double or standard trucks to Port Adelaide for shipment overseas where it will be processed. In the future HMC may be sent to Port Adelaide via the railway network (as described in Section 5.8).

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5.3 Mining operations

The following is a summary of the mining operations activities to be undertaken on the Mindarie C strandline.

5.3.1 General mine sequence

The Mindarie C West strandline will be developed as a 2.6 km long strip mine. The nominal width is for the western portion of the Mindarie C strandline is approximately 200 m. The mine process will advance at an approximate rate of 300 m/month (10 m/day). Figure 5.1 and Figure 5.2 (Appendix L) indicate the mine schedule and sequence for the Mindarie C strandline.

The western portion of the Mindarie C strandline will be mined in a sequential and scheduled manner to allow for the following:

 PCP ore requirement  minimal surface disturbance where only out-of-pit overburden stockpiles are created during the initial Box-Cut stages  the mine process has been designed to contain all tailings within the pit.

In this mining sequence, the intended open void consists of 1.8km at any one point in time. However with the addition of land disturbed for the haul road, stockpiles and pipelines a maximum of between 40–53 ha of land will be disturbed at any point in for Mindarie C West and Mindarie C East respectively.

The material movement can be described as follows and is shown in Figure 5.1 and Figure 5.2 (Appendix L):

 Strip topsoil and subsoil using scrapers one month prior to starting removal of overburden.

 Overburden must be mined to expose ore one month prior to mining of the exposed ore. Where possible overburden will be directly returned to the back of the mining sequence, this is to avoid and minimise all double handling.

 The expected sequence at start up is to strip top soil, sub soil and overburden from the first mining block, push ore forwards to make available enough space to construct the first in-void tailings cell.

 Ore from a 100 m ore block is fed into the slurry unit utilising the dozer push method to blend and homogenise ore feed to the slurry unit. This is then followed by a Front End Loader (FEL), excavator or a combination of these pending ore characteristics. The slurry unit will remain stationary for approximately 10 days. Each month, there will be three slurry unit moves.

 Directly behind the ore that was pushed into the slurry unit, preparation of the material which has been depleted of ore (under-burden) will commence for the construction of the in-pit tailings cells. Each cell will be approximately 100 m in length and the width of these cells will be proportional to the overall pit width with the exception of the requirement for the in-pit haul road. Each tailings cell will be able to contain 120% of the ore extracted from each mining block.

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 The in-pit haul road is required to facilitate as much direct return of overburden material ahead of the mining sequence as possible. This will reduce the overall material being double-handled.

 Each tailing cell is designed to contain all returned tailings. Once a tailing cell reaches its full capacity, it will overflow into the next cell. Once this begins the tailings discharge outlet will be relocated to the next cell. Tailing discharge and settling will be controlled by the rheology modifiers and sump pumps. The sump pumps will pump decanted water back to the slurry unit for re-use.

 The tailing cell will dry for a period of one month in order to become trafficable for overburden backfilling purposes.

 Direct returned overburden material will cover the dried tailing cell to the required final contour.

 As soon as the overburden is contoured and crowned, it will be ready to be rehabilitated with subsoil material followed by topsoil material.

Table 5.5 Mining sequence and schedule

Timing Activity Year 1 (2012) Commence operations. Pre mining Remove and stockpile vegetation. Month 0 Block 1 – strip topsoil and subsoil Month 1 Block 1 – overburden boxcut Block 2 – strip topsoil and subsoil Month 2 Block 1 – MUP begins feeding slurry unit Block 2 – overburden boxcut Block 3 – strip topsoil and subsoil Month 3 Block 1 – tailing cells drying Block 2 – MUP begins feeding slurry unit Block 3 – overburden boxcut Block 4 – strip topsoil and subsoil Month 4 Block 1 – tailing cells closed Block 2 – tailings cells drying Block 3 – MUP begins feeding slurry unit Block 4 – overburden boxcut Block 5 – strip topsoil and subsoil Month 5 Block 1 – overburden returned Block 2 – tailing cells closed Block 3 – tailings cells drying Block 4 – MUP begins feeding slurry unit Block 5 – overburden boxcut Block 6– strip topsoil and subsoil Month 6 Block 1 – subsoil returned Block 2 – overburden returned Block 3 – tailing cells closed Block 4 – tailings cells drying Block 5 – MUP begins feeding slurry unit Block 6 – overburden boxcut Block 7– strip topsoil and subsoil

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Timing Activity Month 7 Block 1 – topsoil returned Block 2 – subsoil returned Block 3 – overburden returned Block 4 – tailing cells closed Block 5 – tailings cells drying Block 6 – MUP begins feeding slurry unit Block 7 – overburden boxcut Block 8 – strip topsoil and subsoil Month 8 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – subsoil returned Block 4 – overburden returned Block 5 – tailing cells closed Block 6 – tailings cells drying Block 7 – MUP begins feeding slurry unit Block 8 – overburden boxcut Block 9 – strip topsoil and subsoil Month 9 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – subsoil returned Block 5 – overburden returned Block 6 – tailing cells closed Block 7 – tailings cells drying Block 8 – MUP begins feeding slurry unit Block 9 – overburden boxcut Month 10 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – subsoil returned Block 6 – overburden returned Block 7 – tailing cells closed Block 8 – tailings cells drying Block 9 – MUP begins feeding slurry unit Month 11 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – subsoil returned Block 7 – overburden returned Block 8 – tailing cells closed Block 9 – tailings cells drying Block 10 – completion of mining Month 12 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – subsoil returned Block 8 – overburden returned Block 9 – tailing cells closed Block 10 – tailings cells drying

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Timing Activity Month 13 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – topsoil returned Block 8 – subsoil returned Block 9 – overburden returned Block 10 – tailing cells closed Month 14 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – topsoil returned Block 8 – topsoil returned Block 9 – subsoil returned Block 10 – overburden returned Month 15 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – topsoil returned Block 8 – topsoil returned Block 9 – topsoil returned Block 10 – subsoil returned Month 16 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – topsoil returned Block 8 – topsoil returned Block 9 – topsoil returned Block 10 – topsoil returned Post mining Provide DMITRE with update on implementation of the MCRP via annual (2012-2013) Compliance Report (as per Lease Condition 2). Commence operational monitoring of rehabilitated areas in accordance with PEPR and associated plans. Year 2 (2013) Continue to progressively rehabilitate areas no longer required or finalised as part of operations. Continue operational monitoring of rehabilitated areas. Cease mining and production. Provide DMITRE with update on implementation of the MCRP via annual Compliance Report. Year 3 (2014) Continuation of monitoring to demonstrate that closure outcomes and lease/licence conditions as identified in this plan will be met. Provide DMITRE with update on implementation of the MCRP via annual Compliance Report. Year 4 (2015) Provide ongoing Annual Compliance Reports to DMITRE and make application to relinquish tenements.

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5.3.2 Site clearance

Prior to the commencement of operations, a topographical survey will be undertaken to record the topographical profile of the area (to ensure the profile can be replaced as part of the rehabilitation program).

Site-specific soil profiles will be obtained to allow selective stripping of the topsoil and subsoil material to the necessary depths depending on salinity, pH, boron and soil texture profiles. Soil profiles will be assessed ahead of mining by augering or test pits and soil samples analysed for environmental parameters (including pH, salinity, etc.) at the surface, as well as at each distinguishable soil and subsoil layer and a selection of depths to the base of each hole in the orebody.

Additional shallow holes or test pits to examine topsoil, subsoil and shallow overburden will be used based on the expected variability of soil at some locations.

5.3.3 Native vegetation, topsoil and subsoil removal and stockpiling

Prior to the commencement of mining operations, native vegetation, topsoil and subsoil will be removed and stockpiled for later use in site rehabilitation activities.

Vegetation clearance techniques will be dependent upon the types and area of native vegetation to be removed. Clearance techniques will include:

 lopping of limbs  removal and stockpiled for later reuse (in rehabilitation activities)  chipping/mulching and separately stockpiled or left on the ground and stripped with topsoil. Chipped/mulched material will be reused in native vegetation rehabilitation activities.

Some areas will only require lopping of limbs, while other areas will require some vegetation to be removed and stockpiled for later respreading. Bulldozers, backhoes, loaders or similar will be used for areas where large amounts of native vegetation require removal. Where only low bushes are present a grader or landplane may be used.

Topsoil and subsoil will be systematically removed, and stockpiled (refer to Figure 5.1, Appendix L) to assist in the accurate rehabilitation of the land at the completion of mining. Landplanes (tractor-scoops) will be used to strip the soil, and soil will be stockpiled onsite for management and later used during rehabilitation activities.

The depths and corresponding volumes of topsoil and subsoil to be removed will vary along the strandline. The final removal depths will be based on the outcomes of specialist soil assessments that shall be undertaken prior to disturbance.

Topsoil and subsoil stockpile management is discussed in Section 5.11.

5.3.4 Overburden removal and stockpiling

Overburden would be mined using scrapers rather than the dozer-push or truck-excavator method as done previously.

The initial box-cut overburden will be stockpiled at an out of pit stockpile. This is required for the mining sequence to take place. Overburden stockpiles are recommended to be made as

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high as possible providing it is stable enough for scrapers to work on and with batters close to the natural angle of repose. Additionally, stockpile heights of 6 m or greater will reduce any noise impacts associated with mining activities on residents (Sonus 2011). It is envisaged that the average height of all out of pit overburden stockpiles be around 15 m.

Geotechnical investigations in 2001 indicated that the overburden material comprised a mixture of fine sand with some clay fines. The anticipated working overburden slope produced during operations will be 24-25° in order to maximise overburden efficiency removal and minimise the overburden pushing distances. A conservative assessment has been undertaken of the stability of the overburden stockpile which assumes that the material has no cohesion. Higher factors of safety (FOS) would be obtained if some cohesion was adopted for the analysis. Given the free draining nature of the sandy overburden soil it is expected that a water table would not develop in the overburden stockpile. Contouring of each stockpile during and after construction will be undertaken to ensure the effective drainage of rainwater.

For the stability analysis it was assumed that the stockpile could be approximated by an infinite slope. For a dry sand the FOS is independent of slope height and depends on the internal friction angle of the soil and the slope angle and can be determined by the following equation:

FOS = (tan ¢) ÷ (tan ß), where ¢ is the internal friction angle (30 degrees) and ß is the slope angle (25 degrees)

= tan 30 ÷ tan 25 = 0.577 / 0.466 = 1.24

Given the nature and timing of the mining operations and rehabilitation the factor of safety determined above is considered acceptable when compared to the industry standard FOS of 1.2.

Apart from the initial box-cut overburden stripping, other stockpiles would be created on an in-pit basis (refer to Figure 5.1, Appendix L). This equates to less out of pit surface disturbances especially when high topographical areas are mined.

Mining of overburden will consist of three main categories: overburden to stockpile (in or out of pit), direct return overburden and rehandle (return) stockpile. Scrapers will be more economical than dozers to replace overburden directly.

An applied expansion (swell) factor would vary from 1.15 to 1.20 if truck and excavators are used and/or 1.04 to 1.10 if scrapers are used. This has been assumed (based on Mindarie A(2) operations) when considering overburden removal and management requirements.

5.3.5 Mine pit details

5.3.5.1 Start-Up pit

For each of the project stages (as outlined on Figure 5.1, Appendix L) the start-up sequence is to strip the top soil, sub soil and overburden from the first mining block. The first exposed ore will be required to be stockpiled within the first block (pushed forwards along the mining front) to make available enough space (behind the mining front) to construct the first tailings cell. This will ensure that all mine tailings will be contained within the mining void.

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Starter pit operations will employ the same equipment specified for use during normal mining operations. This equipment will then move forwards along the mining front as volumetric void becomes available in the mining sequence (i.e., block 2, 3, 4 etc.).

Once the starter pit is complete with constructed tailings cell, the pit becomes operational with the slurry unit moving into the mining void and in-pit tailings disposal commencing.

5.3.5.2 Operational pit

At any one point in time the operational pits associated with each of the stages will be approximately 2,100 m long x 200 m wide (not including the stockpile areas). The width of the workings has been determined based on resource definition drilling.

The operational pit will be developed to a maximum depth of 26 m but typically 5 m to 11 m deep. During previous mining operations the mine pit depth reached a maximum of 32 m. On the basis of experience gained through mining of the Mindarie A(2)and C strandlines, and mining in other parts of the Murray Basin, an overall 60o batter angle could be applied.

At commencement of the starter pit a full Pit Slope Stability Assessment will be performed by reconciling the initial design with the overall stability. The implications (if any) of overburden stockpiles adjacent to the open pit will also be analysed.

5.3.5.3 Operational footprint

The total width of the operational footprint (based on the profile as detailed in Figure 5.3 below) is estimated at approximately 400 m. This area is made up of the following:

 open pit (140 m)  overburden storage areas (two areas of 50 m width)  subsoil storage areas (two areas of 25 m width)  topsoil storage areas (two areas of 12 m width)  access/haul road and pipelines (one road, 25 m wide and pipeline corridor 10 m wide).

The above is typical but all care and attention will be applied to ensure the above is reduced where possible thus reducing the area and volumes of stripping where applicable.

Figure 5.3 Typical cross section of mining operations

5.3.5.4 Pit closure

For the final project stage (as outlined on Figure 5.1, Appendix L) the closure sequence is to mine the ore from the final block with a tailings cell constructed with suitable capacity in the previous block.

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Final pit operations will employ the same equipment specified for use during normal mining operations. This equipment will then move out of the mining void and once the tailing cells are dry begin to replace the overburden, sub soil and top soil for final rehabilitation.

To ensure that the start-up hole/closure hill scenario does not occur the following may also be undertaken (where it is deemed practicable, feasible, cost effective and only after consultation and agreement with the relevant landowner).

At the beginning of each pit void, rather than storing overburden material in a designated overburden stockpile, some of this material will be used to fill in depressions/valleys and the slopes of steep drifting sand dunes. The required top-soil and sub-soil material will be stripped prior to depositing this permanent out-of-pit overburden stockpile footprint. Overburden is then placed to suitable profiles as per agreement with the relevant landowner. Upon completion of this out-of-pit stockpile, top-soil and sub-soil will be replaced. This eliminates the need for a temporary overburden stockpile and any other associated hill at the beginning of each pit void.

At the completion of each pit void there will be a requirement to outsource further fill material as the overall overburden balance will be short. Adopting the opposite approach to the above adjacent drifting sand dunes will be stripped of top-soil and sub-soil material. Once the overburden is exposed this material is then used to complete the void burial to a suitable profile. This is then followed by replacing sub-soil and top-soil materials.

If the beginning and end of each pit void falls within the same landowner land property, then approval is required by that landowner only. If the beginning and end of each pit void falls at different landowner properties, then both landowner approvals are required.

This out of pit overburden replacement methodology would be used only within the Mining Lease and no landform reshaping will be undertaken external to the Mining Lease.

5.3.6 Ore recovery

The proposed mining method is a dry ‘strip mining’ concept whereby landplanes strip the topsoil and subsoil separately ahead of the excavation works. Overburden is then moved by scraper fleet to the back of the pit in a staged operation such that half of the base of the pit is available for mining of ore and the other half used for the pushing of overburden from the front to the rear of the pit. Mining and process plant equipment move progressively along the strand (refer Figure 5.1, Appendix L). The base of the open cut would extend the full width of the ore body (approximately 140 m) with sloped sides as required for geotechnical stability (based on an overall slope of around 60°). Ore is separately excavated using a bulldozer to push it to the in-pit ore stockpile (for blending and grade control purposes) where it will be fed into the slurry unit with a front end loader (refer Figure 5.1, Appendix L).

The mining concept proposed for the Mindarie C project involves the following:

 Removal of topsoil to a depth of 100–300 mm and subsoil to a depth of 200–300 mm from the total area of operations by landplanes (tractor scoops) and stockpiled on both sides of the pit to a height limit of 4 m and 10 m respectively (refer Figures 5.1–5.3, Appendix L).

 When sufficient topsoil and subsoil has been removed to allow heavy earthmoving machinery to safely work in the adjacent areas, removal and storage of overburden by scrapers (truck/excavator) will commence. Overburden will be removed using scrapers.

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 A bulldozer will push the bulk of the ore onto an ore stockpile adjacent to the slurry unit. A front-end loader (excavator) located on top of the ore body loads the ore into a mobile slurry unit which screens the ore at 45/75 mm and mixes the extracted sand with water to form slurry which is pumped to the PCP (located adjacent to the Mindarie A(2) strandline) (refer Figure 5.1, Appendix L).

 The oversize from the slurry unit will be returned to the void by front end loader.

 Once the ore has been removed, the construction of the start-up tailings cell will commence (refer Figure 5.2, Appendix L). The start-up tailings cell (for storage of combined slimes and sand tails). This will allow the mining face to advance the required distance along the mine pit to allow the formation of the first tailings cell within the pit as shown in Figure 5.2 (Appendix L).

 The slurry will be pumped to the PCP and screened again at 3 mm and then processed through a 2 stage de-sliming cyclone circuit and a six stage spiral to produce HMC.

 The de-sliming cyclones will send the fine slime to the thickener to thicken the slime to release water for re-use in the PCP and to slurry fresh ore.

 Following processing and de-sliming the depleted sand and thickened slime (mostly clay) from the PCP is returned to the start-up tailings dam via slurry pipes until the mining face advances far enough to allow a wall to be built and the tailings from the PCP being re-directed into the tails cell in the pit (refer Figure 5.1, Appendix L).

 After the mine face advances sufficiently where the second tailings cell wall is constructed, tailings from the PCP will be re-directed into that cell. Once the tailings in the start-up cell will start to be buried with overburden either from the advancing overburden face or from the overburden stockpiled material. This will continue with a series of cells following any void that the ore has been extracted.

5.3.7 Slurry unit

The slurry unit will be located at the floor of the open pit and is designed to receive, screen and slurry the ore to the PCP at an initial rate of 500 tonnes per hour at 50% solids (weight to water ratio; w/w). The slurry unit will be located in the open pit and travel along the mine pit as the mine advances. The nature of the proposed mining technique dictates that the unit will advance in 100–150 m increments along the top of the ore body with about three moves expected each month depending on the width and depth of the ore body at the time.

The unit will consist of a hopper which is loaded with ore by either a front end loader or an excavator. The discharge from the hopper will either go directly into the screening section of the slurry unit (to remove +45 mm oversize material) or onto a conveyor that feeds into the screening unit. The oversize material will be discharged from the end of the screening unit and returned to the pit void by front end loader. The unit will be diesel powered and used to power all the motors on the slurry unit.

Water for the slurry unit will be supplied from the PCP which will be pumped to the mining pit in a pipeline corridor on the side of the mining pit (refer to Figure 5.1, Appendix L).

The undersize material from the screen section will gravitate into a hopper, where additional water is added and pumped via a 315 mm OD diameter pipeline to the PCP. The PCP slurry supply pipeline will exit the pit via the same path as the incoming water in the pipeline corridor. The slurry and water pipelines will be bound together with quick release pipe

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connections in such a way that they can be readily disconnected and moved as a single skid type unit.

Booster stations will be located adjacent to the pit to assist with slurry pumping when the PCP is greater than 2 km from the mining area. These booster pumps will be controlled via telemetry which allows operators to control the pump speed from the control room.

During mining operations, it may be necessary to bring the slurry unit to the surface to enable the mining sequence to be re-established. The slurry unit will be mounted on skids and towed by a bulldozer as mining progresses through the pit. The slurry unit will be relocated every two weeks and will halt production for the duration of the move (approximately 2–4 hours). Pipe changeovers will be required for this process, the pipes will be inspected prior to recommencement of the slurry unit to reduce the likelihood of leakages occurring. Both slurry and water pipelines will be fitted with a flow meter and density meter to record and control the flow of material to the PCP.

5.3.7.1 Tailings cells

Tailing cells will consist of a discharge point where rheology modifiers will be injected into the discharge line – this may change and be injected at the PCP pending new developments with rheology modifiers. Slimes and sand tails are co-disposed into the tailings cell, supernatant water is then pumped via sump pump back to the PCP and or slurry unit. Both discharge and recovery water pipelines will run alongside the slurry unit pipelines (refer to Figure 5.1, Appendix L).

5.4 Processing

5.4.1 Primary concentrator plant

The PCP has been designed to initially treat a nominal 500 tonnes per hour (t/h) of ore or 3.7 Mt annually (85% run time, 7,446 hr/annum) at a heavy mineral feed grade of 2.59% heavy mineral and initially produce 120,000 t/annum HMC from initial rates of 3.5 to 4 Mt of mined ore per year.

The PCP is currently located on ML6220 (Mindarie A(2) strandline) within the project administration site (refer to Figure 5.8, Appendix L) and consists of a number of integrated modules that together process ore to produce HMC . The plant is semi-permanent but re- locatable and may be relocated to the eastern portion of Mindarie C (ML6226) if necessary.

The PCP complex comprises of the following units:

 primary screening module  primary and secondary cyclone module  spiral separation module  tailings pump module  concentrate upgrading module  electrical transformer/distributor module  make-up water and return water module  pond pump module  thickener module  flocculent make-up and storage module.

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The slurry and process water pipelines will be located on ML 6226 as it is mined and cross into ML 6220 over a track between ML 6226 and ML 6220 (refer to Figure 1.2, Appendix L). It will then connect to the PCP located at the administration site. Negotiations with the landholder are currently being undertaken in order to continue utilising this track.

5.4.2 Process description

Water for the PCP and slurry unit is supplied from the process water tank which is supplemented by groundwater from production wells located on ML6220. The slurry arriving at the PCP will be screened at 3 mm. In the course of being pumped some agglomerated – 45 mm material will be broken down and only competent rock and stones will be removed at +3 mm. The oversize from the secondary PCP will fall to the ground in a bunded area and be collected by a front end loader and then transported back into the open pit void.

The undersize material from the secondary PCP will gravitate into a hopper and be pumped to a two stage cyclone circuit where the -45 µm material will be separated from the -3 mm + 45 µm. This fine (‘slime’) material is largely clay and some fine silt and is detrimental to the separation of heavy minerals and these flows into the thickener where it is thickened with the aid of flocculents. Flocculents are long chain polyacrylamide molecules which have free ions which bind the fine particles together (see Section 5.4.3.9 Flocculent Preparation for details).

The coarse fraction is then pumped to a number of spiral separation stages. The heavy mineral fraction is separated on the spiral concentrators using gravity as the means of separation. In most mineral sands operations one pass over a spiral is not sufficient to recover the heavy minerals and in some cases only two stages are required, but in this case six stages are required to recover 90% of the heavy minerals that contain an HM grade of 90%.

This HMC is pumped to a cyclone and the underflow is deposited onto the ground into a stockpile. The cyclone increases the solids content to 70% to allow the HMC to stack.

Over a number of days the HMC dries out to between 5 to 10% solids and then it is loaded into trucks and transported to Port Adelaide. Water from this draining process is collected via the drainage system and then pumped into the surge bin as it may contain some valuable heavy minerals.

The coarse sand and the thickener underflow are combined in a hopper in the PCP and pumped back to the open pit.

The most crucial part of the tailings pumping is the addition of flocculents to the tailing discharge to agglomerate the sand and slime to create a stable solid. This mixture then releases water which is pumped back into the circuit and then enables earthmoving equipment to place overburden on top of the dried tailings and quickly rehabilitate the mined areas. Tailings management is further discussed in Section 5.5 below.

The water released from the tailings is recycled and it is expected that between 50 and 70% of the water going to the tailings void will be recovered and re-used.

5.4.3 PCP components

5.4.3.1 Power supply

The total power requirement for the PCP facility is in the order of 1.5 MW per month.

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A power module will supply all process modules located in the near vicinity of the PCP. The power module will house an 11 kV switchboard and a 415 V switchboard.

The power module will be supplied with power from the 11 kv line via overhead mains conductors. At both ends of the overhead mains conductors the last span will connect to a short section of trailing cable (<50 m) at termination poles. The trailing cable will then be terminated at the source end and Power Module 11 kV switchboards.

The 415 V switchboard is supplied from a 2,000 kVA transformer mounted on the module. The 415 V switchboard supplies only feeder loads.

The 11 kV and 415 V switchboards will be housed in containerised, independent, air- conditioned switch rooms.

Both 11 kV and 415 V circuits supplying process modules will be connected via trailing cable and plugs to sockets on the power module.

Immediately after locating the switch room, but before applying power, the power module will need to be connected to electrical earth. This means that electrodes and/or a buried earth mat will need to be connected to power module main earth. Although it is likely to be uneconomic to recover the electrodes and/or a buried earth mat when relocating the power module, they will be removed to avoid future hazard to ongoing land use.

5.4.3.2 Instrumentation and control

All process modules will be provided with a local Programmable Logic Control (PLC) and a radio telemetry module. Once the individual process module is plugged into the power module, local and remote monitoring and control will be made available on that individual process module.

The PCP, process modules and mine modules can all be monitored from the SCADA computer in the PCP control room. Automatic start-up and shutdown sequences will be provided.

Equipment protection will be provided on the module relating to the equipment. As such, the integrity of the radio link will not be necessary to provide reliable equipment protection. Electric drive status monitoring, starting and stopping will be made available both locally and to a remote operator located at either SCADA terminals within the PCP control room. Pumps will incorporate pressure switch protection on the discharge line. Equipment that is not directly driven will be provided with under speed protection.

All sumps will have level control and modulating valves to control the sump levels automatically to prevent undue spillage.

A trench will be designed to recover any spillage and return it via a sump pump to the surge bin to prevent any escape of slurry to the surrounding area.The PCP control room located within the PCP will provide localized control over PCP, mine site and production well equipment.

5.4.3.3 PCP screening module

The PCP screening module will comprise of a tromel with 3 mm apertures mounted on a skid to enable relocation as required. The main components are the trommel, a surge bin and a

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primary cyclone pump unit. The total weight of this unit in non-operating condition will be approximately 50 tonnes.

Feed will be pumped from the mine at nominally 50% w/w solids density and the +3 mm fraction removed as oversize by the trommel screen.

The screen underflow bin will function principally to dilute the feed to the primary de-sliming cyclones to a density of around 30% w/w solids.

5.4.3.4 Primary and secondary cyclone module

The main components of the primary and secondary cyclone module will comprise a 7.0 m diameter surge bin, primary cyclone units, secondary cylclone units, primary cylone overflow bin, surge bin and a pump for each bin. The module will weigh approximately 70 tonnes and will be skid mounted to enable relocation as required. This module is provided with a 415 V electrical supply and requires approximately 180 kW.

A flow meter and density meter on the line from the surge bin to the spiral separators will measure these two parameters to enable flow rate, density and tonnes per hour to be dtermined. A mass flow and totalized mass flow will be calculated by the control system. In addition, a PID control loop will monitor the slurry line density and adjust a fine density control valve on the bin to achieve a stable feed density to the PCP and maintain a minimum flow to prevent bogging of the line.

5.4.3.5 Spiral separation module

There are four spiral seperation modules which include six sprial circuts comprising the following:

1. Roughers 96 starts of CPG MT HCI spirals 2. Tails scavenger 120 starts of GPG MT HCI spirals 3. Mids scavenger 296 starts of CPG MT MG4 Spirals 4. Cleaner 72 starts of CPG MT MG6.3 spirals 5. Re-cleaner 24 starts of CPG MTHG10 spirals 6. Recleaner scav 18 starts of CPG MT HG10 spirals.

The modules are mounted on skids so they can be relocated. The total non-operating weight of all the modules will be in the order of 220 tonnes.

5.4.3.6 Tailings pumping module

The tailings pumping module incorporates a 5 m mass flow bin and three transfer pump units. The pumps are KSB 150-500 which are driven by 220 kW 4 pole electric motors (or equivalent).The tailings bin is fitted with density control instrumentation similar to that described for the primary spiral surge bin.

The module weighs 48 tonnes and mounted on two separate skid bases.One of the pump drives are fitted with a variable frequency controller. This is arranged such that it can be switched over to control any one of the stage pumps. This provides optimum control over the tailings pump line whether the module is operating in single, double or three stage mode.

An 11 kVAC socket mounted on the power module will provide power to this module. A 2,000 kVA transformer and 415 V motor control centre is located on this module. The 415 V

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motor control centre will house drive switchgear and control. The power requirement for this module is nominally 600 kW.

A flow transmitter will report the real time volumetric flow of material being delivered from the tails bin. A nucleonic density transmitter will monitor the specific gravity of the slurry line from the tails bin. A mass flow and totalized mass flow will be calculated by the control system.

5.4.3.7 PCP process water

The existing process water dam will be regarded as a collection pit for run off rain water from around the site as it is the lowest point on the site. Also possible overflow from the thickener overflow tank will go into the process water dam. A pump will be located in this dam to pump water back into the system when the water is clear enough to do so.

A process water tank will be provided adjacent to the existing process water dam (now only a stormwater collection pond) for storage of PCP process water. This will be constructed as required in order to assess the potential for leaks to the surrounding environment.

5.4.3.8 Process water leak protection and monitoring

Monitoring surrounding the process tank and the stormwater collection pond will continue to occur. Prior to operation and in compliance with operating conditions background water monitoring was conducted in wells surrounding the site and subsequently 21 registered wells within a 10 km radius of the MZ project area (refer to Figure 5.4, Appendix L) were selected for routine ongoing monitoring. During 2010, 19 of these wells have been routinely monitored.

MZ is in compliance with groundwater monitoring requirements as listed in ML 6220 (Mindarie A(2) strandline) and ML 6226 (Mindarie C strandline) for wells within 10 km of the MZ project area as well as for the MZ production wells. During the 2010 reporting period the site was in care and maintenance, less than 15 megalitres of water was used.

5.4.3.9 Flocculent

The definition of flocculation is “a process of contact and adhesion whereby the particles of dispersion form larger-size clusters”. In the case of mineral sands, slime/clay particles are dispersed in solution and flocculent is added to adhere to these particles and form larger- size clusters.

A number of different types of flocculating agents are used. In the Mindarie operation these are the polyacrylamides poly(2-propenamide) or poly(1-carbamoylethylene) which are synthetic substances and are non-toxic. These polyacrylamides are polymers formed from acrylamide sub units and can be synthesized as a simple linear-chain structure or cross- linked, typically using N,N’-methylenebisacrylamide. The length and ionic character can be varied and it is important to find the right flocculent for both the water quality and the type of clay. There are two types of clay present in the Mindarie ore bodies these being kaolinite and smectite.

Flocculation is required in thickening and also in the tails disposal area of the processing plant. The flocculating agent used was the same in both cases when the Primary Concentrator Plant (PCP) was operated previously and this has advantages. However, when the mixture of clay types changed another type of flocculent was required for the thickener.

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It is important to note that the thickener and tailings flocculent addition must both operate at optimum addition rates to achieve their respective objectives. They are both critical to the successful co-disposal system.

In the process all material less than 45 µm in size is separated in two stages of cyclones and this fine fraction is sent to the thickener. The cyclone overflow is the stream that reports to the thickener, while the cyclone underflow (coarser material) reports to the spiral circuit for separation and production of a heavy mineral concentrate (HMC).

This -45 µm material is referred to as slime, although it is a mixture of mainly clay and some fine silt. There are two clays present and the ratio of these does change. One is smectite, which is swelling type clay, and the other is kaolinite.

This material does not contain much valuable mineral (in fact very little). However, the presence of high concentrations of this slime in water is not desirable as this increases the viscosity of the carrier fluid and in gravity separation this would adversely affect the separation. Slime needs to be removed before the gravity separation process to maintain mineral recoveries.

It was found in 2006 prior to start-up of the previous operations that underflow densities from thickening were only able to achieve 25% solids by mass (Outokumpu Technology Test Report S287TG dated December 2006). This meant that the area required for slimes dams would be too great and it was decided to move to a co-disposal method, where the sand tailings were added to the thickened slime and pumped to a tailings dam at around 50% solids.

Magnafloc or a similar flocculent will be stored on site for use in the PCP. The flocculent will be an organic flocculating reagent that is used to agglomerate particles in the thickening stages of the concentration process. Flocculent will be transported to the PCP on formed roads with compacted road base. The material is non-toxic and biodegradable, such that the risk to the environment should spill occur is small.

The flocculent preparation for the rheology modifier proposed is based on a design flocculent powder dosage rate of 200 grams/tonne of total tailings. For a tailings feed rate of 430 t/h, the flocculent usage rate will be approximately 86 kg/h active powder and 17,200 L/hr of 0.5% dilute flocculent solution.

Flocculent batching plant

A suitable batching and storage plant is located in the PCP to enable convenient operator monitoring. The plant will be supplied complete with instrumentation and controls to enable automatic continuous batching and flocculent transfer to storage with the powder storage hopper requiring re-filling approximately once per week.

The flocculent batching and storage plant will include a bulk silo designed to receive powder grade flocculents, the flocculent is transferred pneumatically from the bulk unloading system into the silo and discharged through an outlet valve which is mounted directly above a powder metering unit.

Solid grade flocculent is fed from the powder silo via the constant rate, volumetric screw feeder into an air stream from a blower. Air conveys the flocculent via the “Jet Wet” dispersion head into the agitated mix tank. After complete dissolution the flocculent solution is pumped into a storage tank.

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The bulk hopper is supplied complete with load cells, vibrator, dust filter, discharge valve and powder metering unit to suit the attached Auto Jet Wet Unit. The Powder Silo together with its dust filter ensures that the product is kept dry and free flowing to maintain a flooded head to the powder metering unit situated directly beneath its outlet.

5.4.4 Hours of operation

Mining on the Mindarie C strandline will be undertaken 24 hours a day, 7 days per week (on a rotational roster). The PCP will be operated 85% of this time equating to approximately 310 days per year.

5.5 Tailings

5.5.1 Tailings characterisation

The tailings will consist of coarse sand and slime that are combined in the hopper in the PCP and pumped back to the open pit. The slimes are defined as material less than 45µm in size and are fine silt and clay.

5.5.2 Tailings discharge

A relatively new development in the mineral sand industry is the use of a ‘rheology modifier’ to keep the sand and slime fractions bound together by altering the viscosity of the slurry. Essentially the rheology modifier is a flocculent and operates similar to the thickener flocculent described previously.

It is found that on addition of the rheology modifier the agglomerated sand and slime (after flocculation) remain intact and form a consolidated base with rapid release of water. Once the water is removed the base is quite stable and overburden can be placed on top of the consolidated sand and slimes.

A study was undertaken by Martin, Hinner and Fagan (Summary of Co-disposal Development Test Work, 2007) to determine the optimum conditions for co-disposal of the sand and slimes tailings. The report found that:

 a sand slime mixture of 40–55% solids had the potential to reach densities of 72–76% solids in a matter of days  dose rates are dependent on slurry density of the sand and slime mixture and the optimum density and dose is 40% solids and 40g/t, and the highest was 55% solids and 100 g/t  the dosage rate did not vary much between slime to sand ratio in the range 12–16% and this equates to the Mindarie C expected average  in the absence of rheology modifier, co-disposal mixtures of sand and slime still release water though at a slower rate. Mixtures of the sand and slime will however, undergo significant segregation of the slimes and this would impede rehabilitation  the rheology modifier would need to be added at the point of discharge into the tailings void  excessive mixing or turbulence imposed on a co-mixture containing rheology modifier will result in the destruction of the flocculent particles and release of slimy water. This will then halt the consolidation process.

Further to this the slimes at Mindarie were found to have the following characteristics:

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 the slimes/clays age but this is not an issue as the plant treats this material before the completion of the ageing process  two independent make up systems are required for the thickener to allow for flocculent changes  colour changes in the clays and this relates to settling rate  the slimes are in the 3–6 µm size range  as mentioned swelling type clays in the form of smectite exist.

In operation there were a number of issues with flocculent dosing for both the thickener and the rheology modifier, which were:

 water quality for the make-up system. Unfortunately dirty water was used in both systems and this reduces the effectiveness of the flocculent  control of the rheology modifier make up system in the field was not achievable and operators had to drive to the unit to check if it was running  dosage rates were set and left and this was not optimized  the water line to the field make up unit was often broken by heavy vehicles operating in the area  the flocculent line to the discharge point was also broken by heavy vehicles  at the discharge point a reduced diameter nozzle was put on the end and this created higher pressures, which broke up the flocculent and this reduced the effectiveness  all the above relied on visits by operators supposedly every two hours but in reality this could have been only once per 12 hour shift.

The rheology modifier make up system will be located at the PCP for better control and dosing and additional instrumentation will be added in order to ensure that any breakdowns of the system are quickly identified.

The readings from the field instruments and motors on the rheology modifier make up unit will be monitored in the control room by the operators. With all PLC management systems if any instrument or motor is not working or not working correctly an alarm would be generated in the control room. In the first instance this will alert the operator that there is an issue. However, there will be interlocks between the operation of the PCP and the rheology modifier units. If there was a fault in the rheology unit an alarm would come up and the interlocks will commence shutting down the PCP in a controlled fashion. This would force the operator to repair the fault (or get it repaired) and then restart the PCP. Any plant stoppage has to be notified to the Processing Manager, who will ensure the correct action is taken. The above procedures apply to the make-up unit.

The flow of flocculent from the PCP to the mining void also needs to be checked at least twice per shift to make sure there has been no break in the line. This will be done by the PCP operator and if there is a break then the PCP will be shut down and the Process Manager informed. The operator may call on the slurry unit operator to check the flow of flocculent as this operator will more often than not be a few hundred metres from the tailings cell where the flocculent is being added.

The tailings pipeline from the PCP and the rheology modifier pipeline will run with the main slurry pipeline in order to prevent any damage to the pipelines. The tailings pipeline route to the tailings cell needs to be well designed and maintained to allow pipeline extensions and retractions to be carried out by the day crew staff in an efficient and safe manner. The requirements will be determined by MZ staff and maintained by the earthmoving contractor.

The tailings pipelines will be bifurcated at the rear of the tailings cell and further bifurcated to provide at least four individual tailings placement pipes which will be regularly alternated to

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deposit the tailings across the tailings cell in the required manner as shown in Figure 5.5 below. The rheology modifier will be added to the tailings at the end of the pipeline to allow the slimes and sand tailings to form a homogenous material that dewaters rapidly.

Figure 5.5 Tailings deposition

The tailings cell will be operated in a manner that allows the water draining from the tailings deposited naturally to drain to the sump at a low point in the tailings cell. The tailings pipelines require advancing in a sequence so that the front face of the tailings is always forming a batter towards sump as shown in Figure 5.5 above.

The full width of the tailings cell will be utilised at all times so that the maximum surface area for drainage and evaporation is presented.

An overflow pipe will be inserted in the wall during construction at a height that would come into operation when the tailings cell is almost full and the freed water allowed to overflow into the next tailings cell. The overall aim of this process is to promote and accelerate the separation of the water from the tailings and remove it from the area containing the tails. This will allow the overburden to be placed over the tailings in a timely manner to complete the rehabilitation as early as possible.

The uncontrolled filling of the tailings cell to the upper levels without dewatering will not be allowed to occur. There will be an interlock on the plant PLC that will start the shutdown sequence if the rheology modifier unit stops. In addition there will be an operational standing order that if the rheology modifier is not performing correctly, the mining process and separation in the PCP will be shut down until all systems are operating correctly.

The use of the rheology modifier is expected to increase the rates of release of water to allow for a rapid drying of tailings cells. In turn this will allow for a more rapid closure of tailings cells and re-instatement of soils to pre-mining conditions.

It is expected that without using the rheology modifier the slimes faction of the tailings would not dewater and tailings cells would hold wet slimes for significant periods of time (greater

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than 12 months). Under these conditions the tailing cells would not be able to be rehabilitated in a timely manner to pre-mining conditions.

5.5.3 Tailings monitoring and management

Operational monitoring and management procedures for the tailings discharge include:

 operating the water draining system to remove water from the top and base of the tailings cell when the water is clear of solids  moving the active discharge locations daily to ensure even development of the tailings beaches  discharging tailings at a velocity that is from an open unrestricted pipe(s)  frequent monitoring and inspections of tailings discharge points, rheology modifier dosage unit (at the PCP), water level in the tailings cell and water return pipelines (twice per shift)  flow inspection of tailings and rheology modifier inject point at discharge to allow rapid detection of any potential tailings line breach  pressure monitoring in tailings line  additional instrumentation added to the rheology modifier make up system to ensure breakdowns are identified quickly  appointment of a dedicated supervisor in charge of the rheology modifier make up system and flocculent for the thickener  annual review of operational procedures.

In addition MZ will install a turbidity meter in the line that returns water from the tailings void to a ‘decant tank’ which is then re-used to slurry ore. The signal from the turbidity meter will be relayed by telemetry to the PCP control room and this will generate an alarm when the turbidity increases. These alarms are recorded in the computer system for up to one year. When the alarm is activated the control room operator will report to the rheology modifier supervisor and send an operator to the void to assess whether flocculent is going into the tailings dam at the set rate and dilution. If these parameters are found to be non-compliant then these will be adjusted and the water quality from this point on will be carefully monitored.

In addition the tailings pipes will be moved on a regular basis and there will be an operator monitoring the inflow into the tailings void. Normally slime beaches at angles of 1 to 3 degrees to the horizontal and it can be observed visually that the slime and sand have blended homogenously and the rheology modifier is working. The operator will be the first to know that the rheology modifier is not working if the slimes are not beaching greater than 5 degrees and would report this immediately to the control room operator.

If this does not improve the plant will be shut down and the flocculent (rheology modifier) manufacturers will be called to site to investigate.

5.5.4 Tailings associated components

The movement of tailings pipes will be with the assistance of smaller front end loaders with fork adapter.

The power supply for the tailings instrumentation and control will be by diesel engine or electricity powered mobile (skid) pump.

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5.6 Sequence of mining and rehabilitation operations

5.6.1 Mining direction

Mining of the Mindarie C strandline will commence approximately 2.8 km west of the previously mined (now rehabilitated) section of the strandline and progress southeast for approximately 2.6 km approaching the previously mined area. Mining will then restart immediately east of Loxton – Murray Bridge Road and progress southeast for approximately 5.5 km (refer Figure 1.2, Appendix L). Mining is planned to commence in the first half of 2012.

5.6.2 Mining sequence and scheduling

The expected sequence of operation for Mindarie C is shown diagrammatically in Figure 5.2 (Appendix L). For the overall Mindarie Mineral Sands Project the Mining Schedule is subject to change, as a result of the overall operational requirements and advancement rates, Normally this is adjusted on a quarterly basis. The mining schedule for the remaining strandlines will be determined based on the results of ore reserve studies, community consultation and other inputs.

5.6.3 Production schedules and annual production

The mining plan for the Mindarie Mineral Sands Project has a life of approximately 13 years. Mining of the Mindarie C strandline is expected to be completed within 25 months of commencement.

In practice the tonnage and grade will reflect operating performance and prevailing economic conditions being experienced at the time.

The PCP has been designed to initially treat a nominal 500 t/h of ore or 3.7 Mt annually (83% run time, 7,446 hr/yr) at a heavy mineral feed grade of 2.59% heavy mineral and initially produce 120,000 t/yr heavy mineral concentrate (HMC) from initial rates of 3,500,000 to 4,000,000 tonnes of mined ore per year. This will be upgraded to 90% HM grade.

5.6.4 Mining adjacent to residential property

A residential property is located within the Mindarie C lease area and is subject to a Warden’s Court decision (Action Number 651/03) with regards to (but not limited to) access, compensation, rehabilitation and mining operations. Prior to undertaking any mining activities in the vicinity of this property a structural evaluation (dilapidation report) of all infrastructure be undertaken in consultation with the landowner. Following mining and rehabilitation a similar structural survey will be undertaken to assess damage, if any, caused by mining.

The nearest infrastructure to the mine pit itself is a timber frame and corrugated iron shearing shed located approximately 45 m to the south of the pit (as shown in Figures 5.6 and 5.7 below). Approximately 75 m further to the south from the shearing shed is an old homestead of brick/stone construction with a solid concrete foundation. This homestead is approximately 110 m from the mine pit outline. MZ have agreements in place with the owner/occupier of this residence with regards to relocating them for the duration of the mining in the vicinity of the property.

A mining fence buffer of 10 m wide will be in place prior to mining in order to separate the active mining area and access to shearing shed and other sheds as shown in Figure 5.7. As a 385 mm diameter pipeline will be installed between the mining pit and the processing plant

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the pipe will be serviced by a 10 metre geotechnical buffer. The pipeline corridor will be 5 to 8 m in width to accommodate the pipeline “snaking effect”. In addition an access track of approximately 10 m width will be required to service the pipeline for (maintenance and inspections etc.).

The pit depth at the vicinity of the shearing shed will be in a total of 7 m after excavating the in-situ ore. On applying the recommended “geotechnical buffer” all structures associated with this residence are outside the “geotechnical zone of influence” affecting any potential stability and/or subsidence issues. The “geotechnical zone of influence” is conservatively taken to be one unit horizontally for every unit vertically from the edge of the excavation and this applies only to sedimentary formations (such as the Murray Basin units).

On the south side of the mine pit outline only tractor-scoops will operate in this area to strip the pipeline corridor access track. To minimise any undue activity adjacent the property only pipeline installation and servicing vehicle will be using this access track. All other heavy earthmoving equipment such scrapers (or haul trucks), bulldozers and front-end-loaders will be using the haul road located north of the mine pit outline.

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5.7 Supporting mine infrastructure

5.7.1 Electricity

The Mindarie C site will be fed by the existing power infrastructure located on the Mindarie A(2) site. Power for the Mindarie A(2) operations is sourced via the Company’s overhead 66 kV transmission line from the Pyap/Loxton substation (which is owned and operated by ETSA Utilities).

During the Mindarie A(2) mining operations, a 66 kV overhead power line was installed from the Pyap/Loxton substation to the strandline. The power line generally follows secondary road verges along roads between Pyap and Mindarie.

The switch yard at Mindarie is located on the northern side of the MSP on the Mindarie A(2) site (refer Figure 5.8, Appendix L) and comprise a 66/11 kV transformer, circuit breakers, surge arrestors and overcurrent protection. Switching provides for an 11 kV feeder line to the existing PCP and 11 kV feed to the decommissioned MSP.

The PCP currently draws power from the 11 kV distribution line whilst all services between the PCP and mining area together with all slurrying and pumping services within the open pit will be diesel powered. PCP power requirements are estimated at 1.2 MW.

An underground 11 kV cable supplied the decommissioned MSP 11 kV switchboard. The switchboard supplies an 11,000/415 V, 2000 kVA transformer. In addition, a second 11 kV circuit connects to an overhead conductor and supplies the PCP, mine site and production wells.

The 11 kV and 415 V switchboards are housed in containerised, independent, air- conditioned switch rooms.

Emergency supply is provided for localized emergency building lighting and SCADA PC Uninterruptible Power Supplies (UPS). These emergency supplies will be designed to yield 15 minutes of backup power.

Power for operations on the Mindarie C strandline will be installed beneath the existing railway and highway in accordance with the safety standards of the owners. Installation of power and other utilities beneath this infrastructure has successfully been undertaken as part of the Mindarie A(2) operations.

5.7.2 Pipelines

5.7.2.1 Raw water supply

Raw water will be required on the Mindarie C operations to mix the dry excavated material (within the slurry unit) into slurry for pumping to the PCP.

Water for the operation of the slurry unit will be sourced from recycled water from the mining process and the current water wells located on the Mindarie A(2) strandline for which MZ has an authorisation to extract (refer to Section 5.9 and Figure 5.4, Appendix L).

The current authorisation permits the extraction of (on average) 4,292 ML per annum (and a maximum of 6,000 ML) and permits the use of the extracted water on the Mindarie C mining lease.

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No additional water (above the current allocation) is required for the Mindarie C operations. As a result, it is not currently proposed to install any additional groundwater supply or monitoring wells as part of the initial operations on the Mindarie C strandline.

As with supply of power to the Mindarie C strandline, installation of water supply pipelines will occur under the railway and highway as required.

5.7.2.2 Slurry

Ore slurry from Mindarie C strandline will be pumped to the PCP which will (initially) remain in its current location on the Mindarie A(2) strandline.

The slurry pipeline from the PCP will be installed beneath the existing railway and highway in accordance with the safety standards of the owners once mining moves the eastern portion of the strandline.

5.7.3 Ancillary infrastructure

5.7.3.1 Accommodation camp

An accommodation camp is likely to be constructed to support mine personnel during the course of mining of the Mindarie C strandline. Options for the accommodation village are currently being investigated.

The location of the accommodation camp is still under consideration, however MZ have identified two preferred options:

 A site located within the Wanbi Country Township adjacent to Karoonda – Murray Bridge Road. This site is currently owned by the District Council of Karoonda East Murray. Services are not currently provided to the site, MZ will consult with the relevant Authorities and infrastructure service providers if this is determined to be the preferred site.

 A homestead site located northeast of Wanbi within Wanbi Flats. This site is privately owned and was previously utilised as a research facility. Seven houses exist within this site and electricity, sewerage and water services are provided. Consultation with the landowner, relevant authorities and infrastructure service providers will be required in order to determine whether the services are appropriate.

The accommodation camp will house around 50 to 80 mining personnel and will be constructed to meet the requirements of the International Workers Accommodation Process and Standards. Figure 5.9 (Appendix L) outlines the indicative location of the two preferred accommodation camp options.

The appointed mining contractor will be responsible for the design and construction of the accommodation camp as well as the day to day management of the camp and site personnel.

Appropriate Development Approvals and Council consultation will be completed in order to gain development approval for the construction and operation of the accommodation camp in accordance with the requirements of the Development Act 1993.

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5.7.3.2 Crib room

An elevated crib room for general purpose use, including meal breaks and sanitary requirements will be located adjacent to the main working areas on the Mindarie C strandline. As mining along the strand progresses, the elevated crib room will be relocated as required.

5.7.4 Fuel storage

Minimal fuel and chemical storage will be required on the Mindarie C strand line. Currently two 50,000 L diesel storage units exist within the MZ plant site (refer to Figure 5.8, Appendix L). Additional diesel storage will be located within self-bunded mobile tanks which will move along the Mindarie C strandline in accordance with the mining sequence.

Storage design and bunding requirements for an expected maximum of 190,000 L of diesel will be stored on the Mindarie C strandline in accordance with the SA EPA requirements (Bunding and Spill Management Guidelines 2007). Fuel will be delivered to the site in bulk as required.

5.8 Road access and transport

Access to the western portion of the Mindarie C strandline will be gained from Knights Well Road. As operations along the strandline progress (as outlined on Figure 1.2 (Appendix L) and discussed in Section 5.3) access requirements will be reviewed and revised as necessary.

Following production of the HMC at the site of the former MSP Murray Zircon propose to transport the HMC to Port Adelaide using either B-Double trucks with side tipping capability or standard trucks. Each trailer is expected to have a capacity of 24 tonnes (48 tonnes total). This will be confirmed following the appointment of the Transport Logistics contractor. If B-Double trucks are used it is expected that 7-8 trucks per day would be needed and about 12 trucks per day for standard trucks.

As the HMC will be produced from slurry that will be pumped from the mine site to the PCP the HMC transport trucks will only need to access a small portion of Knights Well Road, then cross the railway line and join the approved B-Double route from Loxton to Murray Bridge and on to Port Adelaide. The proposed route is indicated in Figure 5.4 (Appendix L).

The section of Knights Well Road that will be used by trucks to enter and leave the former MSP site is not approved for B-Double truck use. MZ is making an application to the Department for Planning Transport and Infrastructure (DPTI) for approval to use this section of Knights Well Road. DPTI will determine the requirements for any upgrade of the road and safety provisions that MZ will need to adhere to.

In addition as Knights Well Road is under the control of the Council. MZ will need to develop and implement a traffic management and maintenance agreement with the Council. Discussions are being had with Council to finalise an agreement.

MZ are currently in consultation with a transport Contractor to confirm the trucking route, however it is expected that the transport of HMC will follow the following route (refer to Figure 5.10, Appendix L):

 Loxton – Murray Bridge Road south to Tailem Bend  Princess Highway

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 Portrush Road  Hampstead Road  Grand Junction Road  South Road   Victoria Road  Coghlan Road (wharf entrance).

5.9 Water management

5.9.1 Water supply

Project water supply requirements during operations comprise:

 ore mining water – to slurry the ore in the pit which is pumped to the PCP for processing  processing water – within the PCP water will be used as make up water when diluting certain streams, for making up flocculent slurry tailings and for general wash-down and housekeeping purposes  tailings slurry – the tailings will be pumped from the PCP to the mine pit and subsequent tailings cell at solids concentration of approximately 50% by weight  dust suppression and vehicle wash down water – water carts will operate along the mine pit void and stockpiles  potable water for site amenities.

Water supply for the Mindarie C operations will be sourced from recycled water from the mining process and the current production wells located on site.

It is not currently proposed to install new water supply wells on the Mindarie C strandline. In the event that water supply bores are required on the Mindarie C strandline, an amendment to this PEPR will be submitted to DMITRE and the Department for Water outlining the location of the bores and associated groundwater monitoring (depth and quality).

Whilst the process water meets potable water guidelines it has a high salinity making it distasteful for people, thus in some crib rooms the water will first be put through a reverse osmosis unit to improve the taste. In addition bottled water is brought in for drinking.

The initial amount of water required for mining of the Mindarie C strandline is 1,816 ML/annum on average (where slimes are 12% in ore and a 500 tonne/hour processing rate), this includes the following breakdown:

 1,727 ML/annum for the PCP (running approximately 7446 hours per year)  36 ML/annum treatment of dust on roads (equivalent to 2 l/second for 500 hours)  13 ML/annum for rehabilitation activities (e.g. watering)  40 ML/annum for topsoil dust suppression.

Figure 5.11 below indicates the water balance model for the use and reticulation of water and waste water on site.

This model is based on the following assumptions:

 50% of the water entering the tails dam is recovered to be used to slurry fresh ore  the other 50% of water is contained in the dam, lost to evaporation and seepage into the surrounding ground

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 only 50% of water is recovered (this is considered a conservative estimate and is likely to increase in practice)  the water allowance is 6,000 ML/annum to a maximum of 42,920 ML over the 10 year allocation period.

The existing production wells will provide this water and consists of five wells; four operating and one spare with each well capable of delivering 90 m³/hr from a depth of 120 m. The well pumps are Grundfos SP95-13 with 55 kW motors fitted (or equivalent). Wells were installed nominally at 1,000 m intervals along the mining lease. Locations are given in Figure 5.4 (Appendix L).

Power is reticulated to each well location via an overhead power line with pole mounted transformers at each location.

The production delivery line is constructed from polyethylene (PE or “black poly”) pipe appropriately sized.

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Figure 5.11 Water balance estimate

Each production well has been test pumped to determine its safe yield and pump depth setting. One or two production wells at the strandline (depending on its length) will be test pumped to examine aquifer hydraulic characteristics. Individual wells in the area have yielded up to 50 L/s or more, but for design purposes a yield of 25 L/s has been assumed.

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All production wells in use are fitted with an integrating water meter to measure instantaneously and record cumulative water flow. Meters are read at weekly intervals from active wells and records kept to demonstrate that the authorised quantity of water has not been exceeded.

Charting during 2009 shows that when the production wells are in operation the drawdown on the water level is between 15–30 m and drawdown on the adjacent observation wells is 3–5 m. The two observations bores are located approximately 100 m from production wells MA (2)-2 and MSP-1 respectively. When the production wells are not in operation, standing water levels (SWL) recharges to its original levels (Australian Zircon 2009).

Two monitoring wells are installed with the central production well at the Mindarie A(2) strandline to allow pumping tests to determine aquifer characteristics. In general these are arranged perpendicular and parallel to the mining direction respectively. One of these monitoring wells is installed adjacent to the PCP and acts as an ongoing monitoring bore (Figure 5.4, Appendix L). At Mindarie A(2) well MSP-1 is test pumped to examine aquifer hydraulic characteristics.

For wells within 10 km of the project area, monitoring results indicate that there is no impact on aquifer levels.

The location of all monitoring wells within 10 km of the Mindarie A(2) project area are shown in Figure 5.4 (Appendix L).

The following parameters are measured for the production, observation and monitoring wells:

 standing water levels  pH  total dissolved solids (TDS)  electrical conductivity (mS/cm)  uranium (U)  thorium (Th).

5.9.2 Mine water and tailings decant

Mine water comprises pit-dewatering from groundwater inflows and incidental rainfall over the mine pit area. Mine water will drain to a sump at the base of the mine pit and be pumped to the slurry unit. Water collected from the tailings dams is pumped to either the slurry unit or to the process water tank.

5.9.3 Process water and tailings decant

The bulk of the water used at the PCP will be recovered using thickeners and recycled via the process water tank and be available for immediate re-use.

Any waste water arising from the mining service areas including vehicle washdown areas will be collected, passed through an oil-water separator and allowed to be collected and used as process water.

5.9.4 Site run off/silt control and drainage

Given the generally low relief, low rainfall and high permeability of the soils in the area, excess surface water flows are virtually non-existent on site. However, due to clearing and

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other activities associated with the mining operations (e.g. stock piling of materials etc.) there remains a small risk of erosion and sedimentation occurring on site. Appropriate siting and implementation of temporary and permanent sediment control devices based on ‘catchment’ areas and topography will be installed. Sediment control used on site where necessary will include (but not be limited to):

 sediment traps (straw bales, sand bags, logs and vegetation etc.)  sediment retention basins  sediment control perimeter banks (earthen windrows, stacked logs and vegetation, stacked rock and geotextile and straw bales).

Erosion and sediment control measures will be applied/installed progressively or as needed as each stage of the Mindarie C strandline is opened up. The most important control structures measures will be installed first including diversion banks constructed as part of clearing and pit excavation operations. Sediment traps below areas to be disturbed will also be installed prior to clearing and grubbing if the slope and nature (e.g. sandy or clayey) warrants. Due to the generally flat nature of the landscape and highly absorbent sandy soils, sediment traps are not expected to be required for many situations.

Sediment control devices will be established around all areas prone to erosion, including stockpiles and any drainage lines. The length and steepness of slopes associated with mining operations will be minimised.

Strategically placed sumps will be excavated to collect all run-off from the access/haul road. Run-off from the PCP and HMC stockpile areas will be collected in drainage sumps constructed for this purpose and pumped back to the surge bin (refer to Figure 5.12 below).

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Figure 5.12 HMC stockpile drainage

Drainage of the overburden, topsoil and sub-soil stockpiles located along the length of the open pit during mining activities will be managed through contouring of the piles to divert all run-off away from the pit. Run-off will be drained toward a collection pond which will act as a sediment trap to reduce erosion of the surrounding land. Further information on stockpile management is included in Section 5.11.

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5.10 Waste and hazardous material management

Table 5.6 outlines the expected waste streams from the site operations.

Table 5.6 Expected management of the waste streams generated by Mindarie C project

Waste *Annual initial Characteristics Treatment/disposal quantity Overburden 19.9 million tonnes Predominantly fine to Replaced as backfill of medium sand mined area Slimes and sand 3.15 million tonnes Fine to medium sand and Replaced as backfill of tailings clay slimes mined areas Waste oils 75,000L Transported to off-site waste oil recycler Solid waste 62 tonnes Recycling or transported (packaging, food offsite to approved landfill scraps) Sewage Minor quantities High nutrient Collected for off-site concentrations and BOD treatment and disposal Construction Minor quantities Recycling or landfill materials *quantities are an estimate only.

5.10.1 Tailings/processing waste

Approximately 96% of the originally mined material will be returned to the pit as waste from the PCP once the heavy mineral component is removed from the ore. This material (sand tails and clay slimes) will be deposited into the mine pit and allowed to partly dry out prior to being covered by overburden, followed by subsoil and topsoil. This will occur as a staged process, where the waste will be returned as backfill from previously mined areas, still allowing access to in-situ materials.

Further details about the tailings are outlined in Section 5.5 above while post mining landform is discussed in Section 5.17 below.

5.10.2 Commercial and industrial waste

Solid waste generation on the Mindarie C strandline will be limited to:

 solid waste (packaging, food scraps) associated with the operation of the crib room  hazardous materials associated with mining activities  construction materials associated with site establishment and relocation of the PCP.

Permanent waste storage facilities are located within the plant site providing separation for waste paper, plastics, hydrocarbons and glass (refer to Figure 5.8, Appendix L). Management of solid waste on site will be based on the waste hierarchy of control (i.e. avoid, reduce, reuse, recycle, recover then dispose). Following collection and storage for reuse and/or recycling, inert waste will be disposed off-site.

As mentioned in Section 5.7.2.2 reverse osmosis units are provided in crib rooms in order to desalinize water for potable use. The reverse osmosis units are small domestic units fitted to a tap in the sink of the crib rooms. When the membrane becomes clogged this is removed and hand washed. The amount released is minimal.

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Hazardous materials require specific transport, storage, handling and disposal procedures that comply with legislative requirements and specific material safety data sheets (MSDS). Fuel and other hazardous wastes will be stored in drums and tanks with impervious bunds to contain spillages and will be disposed of periodically by a registered contractor.

The existing sewer system for the site will continue to be used. All sewage gravitates to an underground tank which is decomposed by anaerobic means and this main tank is located east of the laboratory (refer to Figure 5.8, Appendix L). The cleaned water is then pumped into the fields located adjacent to the plant site. Anaerobic decomposition is also used for the mobile crib rooms. The tanks are located on the skids adjacent to the crib rooms.

5.11 Stockpiles management

5.11.1 Topsoil and subsoil

As part of the operations undertaken on the Mindarie A(2) strandline, the project has developed a Surface Soil Dig Procedure and Surface Soil Dig Permit. This procedure and associated permit provides instructions on the excavation and placement of topsoil and subsoil. The procedure requires personnel who supervise an excavation or operate excavation machinery to complete and implement an approved Surface Soil Dig Permit.

Both the procedure and permit requirements will be implemented during operations on the Mindarie C strandline. The implementation of the procedure and permit will assist with rehabilitation and closure activities post mining.

The procedure includes the determination of the depth and characteristics of topsoil and subsoil by sampling soil profiles prior to removal of the topsoil and subsoil along the strandline. Sediment and erosion control structures will be constructed prior to commencement of soil stripping and excavation activities, if required.

Stockpile locations will avoid working areas, areas of natural drainage and on site traffic routes and where possible the stockpiles will be placed as close to its re-use site as possible.

Soil from agricultural areas will be kept separately from soil from native vegetation areas and erosion control measures will be implemented to protect stockpiles and minimise erosion and sediment loss.

Indicative locations of stockpiles during mining operations on Mindarie C are shown on Figure 5.13 (Appendix L).

Stockpile locations have been designed to facilitate the shortest practicable haul distance when removal is taking place and minimise vegetation clearance.

5.11.1.1 Topsoil

Topsoil will be stripped using landplanes (tractor scoops) and placed on a stockpile on the side of the pit based on characteristics such as sand, sandy clay and clay and appropriately mapped and documented for management and rehabilitation purposes.

Topsoil stockpiles would not be capped with clay to prevent wind erosion as done previously but rather have 1:4 (V:H) batters allowing a cover crop seeding to take place. Immediately after seeding a water cart will be used to provide a crust and moisture to seedlings.

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Restriction on topsoil stockpile height would be applied making these stockpiles no higher than 3-4 m (refer to Figure 5.3 in Section 5.3.5).

5.11.1.2 Subsoil

Subsoil will be stripped as per the same methodology as the top-soil. As subsoils are more structurally sound, sub-soil stockpiles with batters resembling the natural angle of repose (23–28 degrees) will be developed.

In order to minimise land disturbances sub-soil stockpiles will be built up to a maximum height of 10 m as this occupies a smaller footprint (refer to Figure 5.3 in Section 5.3.5).

No surface treatment of subsoil stockpiles will be implemented other than ensuring a V-drain is placed in the centre of the stockpile allowing drainage lengthwise rather than cross-ways. Windrows would also be placed on the edges at completion.

5.11.2 Overburden

As required by the Mining Lease conditions, permanent overburden stockpiles created by the operations will be shaped to conform to the local Mallee landscape.

Overburden placement and reuse options are also considered, while minimising distances between the “start” and “end” points is preferred (in order to increase potential use of overburden to minimise depressions) it is not considered economically viable to move overburden excessive distances (e.g. over 100 m) in order to facilitate this. Soil horizons will be replaced in the same order that they were removed, i.e. fill the mining pit with overburden and cover with stockpiled subsoil horizon(s) where separately stripped, then cover with stockpiled topsoil. Soil will be reused as close as practicable to its point of origin.

Sediment and erosion control structures will be placed prior to commencement of overburden stripping and excavation activities, if required.

Overburden stockpiles will not exceed a height of 15 m (refer to Figures 5.1 in Appendix L and Figure 5.3 in Section 5.3.5). Further information regarding overburden stockpiles is included in Section 5.3.4.

5.11.3 Heavy mineral concentrate

The HMC stockpile area consists of a stacking pad which is sloped towards a trench down one side of the pad and the trench drains into a sump at the lowest point of the pad. The hardstand for the HMC stockpile area will be made from compacted earthfill and aggregate.

Three stockpiles will be produced to a height of approximately 5 m. Each of the three stockpiles will be approximately 314 m2 containing a volume of 524 m3 of material, for an overall capacity of 1,153 tonnes.

Each of the three stockpiles within the HMC stockpile pad will have a three sided bund wall made of 0.5 m high X 0.5 m deep by 1 m long aerated concrete block in three or four layers to prevent excess wind erosion. In addition fine mist water sprayers will be distributed over the stockpiles to prevent the HMC being blown onto adjoining land.

A permanent spindle type centrifugal pump is placed in the sump and pumps this drainage water to the PCP. The sump will have a level control device that starts the pump when the sump becomes full and then switches off when the sump becomes empty. In addition there

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will be agitation water to the suction of the pump to clear out solids before pumping is started.

The HMC stockpile area will be approximately 80 m long and 30 m wide and provides for the storage of 30 days of product which will have an estimated total capacity of 10,000 tonnes. The layout allows time for the HMC to dry by gravity and drainage to 4–5% moisture. Three individual cyclone stackers will be also be constructed in the stockpile area.

The HMC stockpile will be located in the area utilised during previous mining operations, opposite the PCP (refer to Figure 5.8, Appendix L). This area will be designed to allow for loading of HMC into trucks to be transported to Port Adelaide.

Figure 5.12 in Section 5.9.4 shows the general layout of the HMC stockpile area.

5.12 Construction

5.12.1 PCP relocation works

As mentioned in Section 5.4, the PCP has been designed as a number of integrated demountable modules each arranged to be readily disconnected from each other when it will require relocation for future mining operations. The PCP may be relocated to the eastern portion of the Mindarie C strandline for mining operations to be undertaken along Mindarie C East as well as other adjacent strandlines. However, the requirement for moving the PCP for mining of Mindarie C East has not been determined, additionally, the PCP may be relocated onto a different Mining Lease if considered more suitable for future operations.

If it is deemed necessary to move the PCP for mining of the eastern portion of the Mindarie C strandline, MZ will consider environmental impacts associated with the proposed movement procedure and seek an amendment to this PEPR from DMITRE.

5.12.2 Access

As operations along the strandline progress (as outlined on Figure 1.2 (Appendix L) and discussed in Section 5.3.6) access requirements will be reviewed and revised as necessary. An access road will be constructed along the length of the strandline for access.

5.12.3 Accommodation

As outlined in Section 5.7.3 during construction workers accommodation will likely be required in Wanbi. Negotiations with landowners and infrastructure providers are currently underway.

Alternatively construction workers may be housed in commercial accommodation within neighbouring towns and transported to and from the site.

5.13 Modes and hours of operation

Mining on the Mindarie C strandline will be undertaken 24 hours a day, 7 days per week (on a rotational roster). The PCP will be operated 85% of this time equating to approximately 310 days per year.

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5.14 Visual screening and site security

The overburden stockpiles will provide screening of the operational pit from the adjacent landholders. Mining operations are transient and rehabilitation of the open pit mine will occur progressively. The presence of vegetation along major roadways will provide visual screening from some of the mining operations for road users.

Since the mine site is mobile, traditional security measures are not feasible. However, there are existing perimeter fences around all areas proposed for mining i.e. farm fences. The site will be occupied 24 hours per day and all visitors to the mine site will have to be accompanied by a company employee or authorised contractor at all times.

5.15 Plant and machinery requirements

During operations, a variety of equipment will be used. Equipment required for operations generally comprise mining equipment, site mobile equipment (refer Table 5.7) and the PCP and slurry unit components such as screens, hydrocyclones, screens, flocculent tank and filters.

Table 5.7 Site mobile equipment

Description Number Bulldozers 3–4 Front end loaders 1-2 Scrapers 6 Graders 1–2 Excavators 2 Dump trucks (100 tonne) 10 Service vehicles 2 Fuel truck 1 Water trucks 1 Delivery vehicles 3 4WD vehicles 12

Table 5.8 below outlines noise, vibration and exhaust outputs as well as the ignition sources for each of the site mobile equipment to be used during mining operations.

Table 5.8 Mobile equipment output information

Type Size Capacity No. of Noise Engine Fuel Exhaust Ignition Units (litres) Output Source (litres/hr) Scrapers 657G/F 24.5 LCM 6 115dBA at ACERT C18 1597 79.85 Exhaust 25 m Dozers D10 N/A 4 115dBA at C32 ACERT 1987 99.35 Exhaust 25 m Dozers D8 N/A 2 115dBA at 3406CTA 625 31.25 Exhaust 25 m Dozers D7 N/A 1 115dBA at 3176SCAC 481 24.05 Exhaust 25 m FEL 980G 5.7 LCM 2 N/A C15ATACCC 479 23.95 Exhaust

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Type Size Capacity No. of Noise Engine Fuel Exhaust Ignition Units (litres) Output Source (litres/hr) Grader 16G N/A 2 N/A C13 ACERT 511 25.55 Exhaust VHP B-Double N/A 48 tonnes 7 <69dBA - 310 - Exhaust *All CAT exhausts have a spark dissipation chamber in the exhaust system.

5.16 Resource inputs

5.16.1 Workforce details

The operations workforce will vary during the project mine life depending on the level of mining activity. Where possible, employees will be recruited from South Australia but additional recruitment from the rest of Australia may be necessary.

Personnel requirements during operations will be approximately 100 people including 40–70 personnel anticipated to be engaged by the mining contractor. These are summarised in Table 5.9.

Table 5.9 Operations workforce

Position Number Administration General Manager 1 Environment, Health and Safety Manager 1 Environment, Health and Safety Officer 1 Environmental Technician 1 Safety Technician 1 Administration Manager 1 Administration Assistant 1 Mining Mine Manager 1 Pit Supervisor/Technician 2 Surveyor 1 Geology Senior Geologist 1 Processing Plant Production Manager 1 Operator 3 (per shift) Maintenance Maintenance Manager 1 Electrician 2 Fitters 2 Boilermaker 1 Mining Contractor’s Workforce Project Manager 1

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Position Number Site Engineer 1 Safety/Training Officer 1 Production Supervisor 3 (1 per shift) Mobile Plant Operators 20-30 (per shift)

5.16.2 Energy sources

The project will operate 24 hours per day, 7 days per week. The average electrical power load during operations is estimated to be 18,000 MWh annually (refer Table 5.10).

Table 5.10 Estimated annual power consumption

Component Installed power Utilisation (%) Average MWh (MWh) consumed annually PCP (comprising the slurry unit, HMC 1,400 85 handling, tailings pumping and water pumping) Buildings and mining services 100 100 Total 1,685

It is estimated that the mining and processing of the Mindarie C strandline will produce

approximately 29,872 tonnes of CO2-e greenhouse gas emissions annually.

MZ does not currently plan on providing carbon offsets for energy usage, however, the applicability of green diesel fuel use is being investigated. MZ has committed to reporting greenhouse gas emission to the National Greenhouse and Energy Register (NGER).

5.17 Water sources

Water sources for the project are discussed in Section 5.9.

5.18 Mine completion and rehabilitation

Below is a summary of mine closure and rehabilitation activities. Further details are provided in the Mine Closure and Rehabilitation Plan (Section 8).

5.18.1 Management of overburden

Figures 5.1 and 5.2 (Appendix L) indicate that overburden mounds will be created adjacent to the open pit and that backfilling will be progressive as the mining continues to ensure that overburden material does not have to be transported significant distances during rehabilitation.

5.18.2 Areas along the strandline

With the post mining landforms along the mined strandline it is possible that (following overburden, subsoil and topsoil replacement) the central elevation may be up to 2 m high along the centreline of the deposit which will provide a slope of approximately 1:19 (based

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on the design of the pit to be on average 200 m wide. A slope of this degree is considered compatible with the surrounding landform and will allow for crop cultivation.

5.18.3 Rehabilitation

Rehabilitation of the post mining areas will be undertaken to ensure that the land is rehabilitated to that of the pre-mining land use. Current land use along the Mindarie C strandline is broad acre farming (cropping). Remnant native vegetation also occurs in isolated pockets and transport corridors.

Rehabilitation activities will be progressively undertaken during operations at a rate similar to that of the mining process and following the completion of mining activities and removal of infrastructure/services.

5.18.3.1 Cropping land

Revegetation activities on cropping land will be undertaken in accordance with the landowner/leaseholder agreements established as part of the project.

A summary of the rehabilitation process for cropping land is provided below:

 reshape land to a similar pre-mining landscape (including appropriate overburden, subsoil and topsoil replacement)  reshaped landform to be stable, adequately drained and suitable for cropping  replanting with appropriate cover crop  monitoring of regrowth.

5.18.3.2 Native vegetation/mallee ecosystem

The rehabilitation of native vegetation/mallee ecosystem will be as follows:

 identification of species in the area (this occurs prior to vegetation clearance)  collection of seeds, other propagules and surface vegetative matter  reshape land to a similar pre-mining landscape (including appropriate overburden, subsoil and soil replacement)  reshaped landform to be stable and adequately drained  respreading of stockpiles vegetative matter  reseeding/tubestock planting  exclusion of grazing  monitoring of regrowth  follow up actions as required (based on outcomes/recommendations from regrowth monitoring).

5.19 Mindarie A(2) and former Mindarie C rehabilitation

Rehabilitation activities associated with the previous mining of Mindarie A(2) and C strandlines are currently being finalised.

Rehabilitation work on the disturbed areas of the Mindarie C strandline commenced in February 2010 and involved replacement of overburden and subsoil. Further rehabilitation work was undertaken in August 2011 and involved surface contouring for improved drainage. The replacement of subsoil on Mindarie C was completed in October 2011 and topsoil replacement completed in April 2012.

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Rehabilitation work on the disturbed areas of the Mindarie A(2) lease commenced in August 2011 and involved the drying of wet areas, the replacement of overburden and subsoils. As of April 2012, 100% of all overburden, subsoils and topsoils have been replaced on the A(2) strandline.

Seeding of cover crops is expected to occur starting late April through May and monitoring will occur on an ongoing basis after completion of rehabilitation.

5.19.1 Process pond rehabilitation

During the previous operations of the Mindarie mine tailings from the Mineral Separation Plant were managed in an out of void tailings facility. MZ is committed to rehabilitating this tailings facility and proposes that the material in the MSP dam is removed and processed to recover the valuable minerals including those that are slightly radioactive.

There are four options that have been considered by MZ including:

 Option 1 – remove the material from the MSP dam and truck down to the Mindarie C void during mining operations for co-disposal within the tailings cell  Option 2 – remove the material from the dam as above and truck down to the slurry unit and add in to the ore feed at a controlled rate and produce additional HMC in the PCP  Option 3 – remove the material from the dam with an excavator and trucks and process through a small processing plant using existing spirals on site to produce HMC on its own  Option 4 – remove the material from the dam as above and process through the cleaner circuit of the PCP also to produce HMC on its own.

Option 1 for the in-void disposal of the material is not the preferred option as the transport costs from the MSP dam to the mining void are prohibitive.

Option 2 is also not the preferred option because, as with Option 1, the transport costs are prohibitive. In addition processing cannot start earlier than mining however Option 3 could be initiated after mining has commenced.

Options 3 and 4 have the benefit of producing separate clean sand tailings that can be backfilled directly into the MSP dam and the HMC can be processed before the mine is started. Another benefit is the shipping system can be tested prior to start-up of the mine.

In Options 3 and 4 the procedure would be as follows:

 develop a safe procedure to remove sand from the eastern end of the MSP rejects dam using an excavator and trucks. There is little or no radioactivity on the western end of the dam  deliver sand to the PCP or stand-alone spiral plant and dump into a hopper  convey sand to a screen and slurry chute above the spiral feed sump  water will be initially be provided from the mine site wells and this will circulate through the process water dams and this settled water re-used to slurry the MSP dam material  this will be a closed loop until the whole mine and PCP is started or in the case of Option 3 it will continue on its own  if necessary flocculent will be added to keep the water clear, however there is little slime in the eastern half of the dam  slurry will be pumped to the spirals (Option 3 or 4) and the rough concentrate will be channelled to a set area at 70% solids  excess water from the concentrate stockpile will gravitate to the process water ponds  both the tailings and rough HMC will be stacked around the process water dam area (in separate areas)

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 the tailings will be pumped to a portable stacker and dewatered to 70% solids and returned to the MSP dam free of any radioactivity. Excess water will drain back into the process water dam  the concentrate will be removed and loaded into trucks or containers when sufficiently dry and this will also prove what moisture content is achievable  a suggested tonnage is around 100tph running 24 hours per day and will require 4 to 6 additional staff. At this rate the operational time will be approximately 6 to 12 months, however this is largely dependent on the grade in the MSP dam  HM grades and recoveries are expected to be low as this material was the most difficult to recover during previous operations  a further benefit is that the area around the MSP can be treated through this temporary plant and made free of low level radioactive material.

The benefits of Options 3 and 4 are that all solids will be removed as HMC and all process water will be circulated through the PCP dam, thus removing all low level radioactive materials from the MSP dam. All potentially low level radioactive wastes will be stored temporarily within the PCP ponds until mining operations commence at which point they will be piped back to the in-void tailings cell for encapsulation.

This rehabilitation work would be undertaken in accordance with radiation management procedures outlined by the Environment Protection Authority (Radiation Protection Control Branch) and detailed in an approved Radiation Management Plan.

5.19.2 Rehabilitation activity schedule

Table 5.11 outlines the rehabilitation measures undertaken to date, measures proposed to be undertaken, and the timing for remaining work. Current rehabilitation areas are shown in Figure 4.12 (Appendix L).

Table 5.11 Rehabilitation strategy and schedule 2011/12

Area Task Detail Timing Strand 1 Overburden replacement complete January 2012 A(2) West 1b Subsoil replacement complete January 2012 (Area 1) 1c Topsoil replacement complete February 2012 1d Seeding April 2012 1e Monitoring Ongoing Strand 2 Overburden replacement complete December 2011 A(2) West 2a Subsoil replacement complete February 2012 (Area 2- backfill 2b Topsoil replacement complete February 2012 dam) 2c Seeding April 2012 2d Monitoring Ongoing Mindarie C 3 Overburden replacement complete November 2011 (Area 3) 3a Subsoil replacement complete November 2011 3b Topsoil replacement to commence March 2012 3c Seeding April 2012 3d Monitoring Ongoing Strand 4 Overburden replacement complete January 2012 A(2) East 4a Subsoil replacement complete January 2012 (Area 4) 4b Topsoil replacement to commence March 2012 4c Seeding April 2012

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Area Task Detail Timing 4d Monitoring Ongoing Strand 5 Overburden replacement complete December 2011 A(2) East 5a Subsoil replacement complete December 2011 (Area 5) 5b Topsoil replacement commenced February 2012 5c Seeding April 2012 5d Monitoring Ongoing PCP dam 6a Complete November 2011 (Area 6) A(2) 6b Removal of remaining heavy mineral component within May 2013 Tailings tailings and reprocess through PCP and MSP rejects dam (Area 6) Wet voids 7 Complete December 2011 7a Complete December 2011

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6. Stakeholder consultation

Stakeholder consultation for the overall Mindarie Mineral Sands Project has occurred in several stages, these stages included:

 by AZ prior to and during operation of the mine site  during the period of voluntary administration  by MZ during rehabilitation activities on Mindarie A(2)  as part of the process prior to re-commencement of mining operations  as consultation on the PEPR.

The engagement which occurred at each of these phases is detailed in this chapter.

6.1 Identified stakeholders

Table 6.1 identifies the project stakeholders, (but is not limited to):

Table 6.1 Preliminary stakeholder list

Stakeholder groups Landholders . Directly affected landholders and any tenants on their properties . Non-directly affected landholders and tenants in nearby properties . Landholders and tenants in Mindarie township Internal . MZ Staff . Management . Shareholders . Board Government agencies . Department of Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) . Environment Protection Authority (EPA) . Department for Water (DFW) . Department for Environment and Natural Resources (DENR) . Native Vegetation Council (NVC) . Department of Planning, Transport and Infrastructure (DPTI, formerly DTEI) . South Australian Murray Darling Basin Natural Resources Management Board Local Government . District Council of Karoonda East Murray . Murray Land Regional Development Board Community groups and businesses . Murray Mallee Community Consultative Committee (Mineral Sands) (MMCCC) . Murray Mallee Community Consultative Committee (MMCCC) sub-committee . Local Aboriginal groups (including the Mannum Aboriginal Community Association and Riverland Aboriginal Cultural Heritage Association) . East Murray Area School (staff, students and parents/guardians) . Business owners in the region . Genesee and Wyoming Australia.

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6.2 Australian Zircon stakeholder consultation

AZ (and its predecessor companies) commenced discussions with stakeholders and communities between 1997 and 2009. Table 6.2 outlines the consultation tools and activities AZ delivered to local government, landowners, and wider community:

Table 6.2 Australian Zircon (AZ) stakeholder consultation tools

Consultation Tools Description Stakeholder audience One-on-One . Discussions with landowners in the area . Landowners meetings commenced in 1997 during the exploration . Wider community phase. . Discussions held with the wider community in October 2001. . Attended regular and frequent meetings . District Council of with local council from October 2001. Karoonda East Murray . Murraylands Regional Development Board Information Booths . Project information booths were provided at . Wider community the Karoonda Farm Fair from 2002 to 2009. Information Sessions . Throughout 2003 to 2006 inclusive . Mallee Land Action information sessions were provided to a Planning Group number of local and regional groups. . The Mallee Financial and Information Services group . The Karoonda Development Group, . The Loxton – Waikerie Council . Surrounding community . Karoonda community . Loxton community Public Community . Several public meetings were also held at . Directly impacted Meetings the East Murray Community Centre located community within the project area near Mindarie. . Wider community Included presentations from:

 PIRSA concerning its regulatory obligations relating to the proposed mining and mineral processing activities

 DWLBC (currently DFW) personnel – concerning the impacts of the project’s proposed water usage on the local groundwater regime Information brochures . Project brochures were circulated to all rate . Wider community payers throughout the Karoonda East Murray and Loxton Waikerie District Council regions

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Consultation Tools Description Stakeholder audience Presentations . To provide information to government . River Murray agencies, and project stakeholders. Catchment Water Management Board1 (then) . Native Vegetation Council . DTEI . EPA . Department for Environment and Heritage (currently DENR) . DWLBC (currently DFW) . Other stakeholders

6.2.1 Murray Mallee Community Consultative Committee (Mineral Sands)

The Murray Mallee Community Consultative Committee (Mineral Sands) (MMCCC) was created in June 2004. At inception, it consisted of representatives from the landowner groups, Soil Conservation Board, local community, District Council of Karoonda East Murray, PIRSA, Regional Development Boards and (then) Southern Titanium. MZ continue to convene these meetings, which is further detailed in Section 6.4.

The objectives of the MMCCC are:

 to provide a forum for community feedback to MZ, PIRSA and District Council of Karoonda East Murray on all matters relating to the planned zircon mining operations in the area  to ensure accurate and effective communication between all stakeholders by the development of a communication strategy, including the use of information meetings and communiqués  to facilitate a wide community consultation on issues relating to the planned mining operations in the area  to provide appropriate access to government departments, including the Minister for Mineral Resources Development  to utilise available research facilities to determine best practice principles are employed.

Principal issues that have been addressed in this forum to date include the rehabilitation of farming land and proposed amendments to Mining Lease rentals.

6.2.2 Aboriginal liaison

AZ entered into a Heritage Agreement covering access for exploration and mining with the Riverland Aboriginal Cultural Heritage Association over the AZ tenements in the region of the River Murray and those to the north. A similar Heritage Agreement was signed in 2002 with the Mannum Aboriginal Community Association for tenements to the south.

1 Now subsumed by the South Australian Murray Darling Basin Natural Resources Management Board

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The Company also secured a Part 9B Native Title Mining Agreement for Exploration over its Exploration Leases north of the River Murray with the First Peoples of the River Murray and Mallee Region.

6.2.3 Consultation on the Mindarie C project by AZ

Numerous written submissions were received from various stakeholders, identified in Table 6.3, during 2003 following the lodgement with PIRSA of Applications for five Mineral Leases including the one covering the Mindarie C project.

Table 6.3 Written submissions stakeholder list

Stakeholder groups Landholders . Landowners Government agencies . Department for Planning and Local Government (DPLG) . EPA . Aboriginal Affairs and Reconciliation Division (AARD) . Department of Environment and Heritage (Currently DENR) . DTEI Industry/ Service Provider . Australian Southern Railroad

Matters raised in these submissions were largely generic in nature, in most cases relating to environmental and rehabilitation aspects relevant to all Leases. These were addressed by AZ through its responses to PIRSA. Table 6.4 outlines the two submissions which had specific relevance to the Mindarie C operations and ML6226.

Table 6.4 Mindarie C project Stakeholder Submissions

Stakeholder Issue Description Outcomes Previous landowner: Referred to issues relating to These matters were John Berger his property impacted on by the subsequently dealt with in the Mindarie C mining proposal. Wardens Court during 2003 and 2004. Australian Southern Railroad Issues relating to proposed Subsequent changes to mining (previously operating the work within the rail corridor plans ruled out mining across railway line which is now including the temporary the rail corridor. operated by Genesee and severing of the rail line. Wyoming Australia)

6.3 Stakeholder consultation during administration

When AZ went into voluntary administration in October 2009, an independent firm, Pitcher Partners, was commissioned to undertake administrative duties on behalf of the company. During this time Pitcher Partners, continued to consult with stakeholders, particularly the landholders affected by mining activities. Consultation primarily involved discussions regarding compensation for affected landowners, with agreements on compensation amounts being made and transactions completed during the administration period.

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Whilst AZ was undergoing voluntary administration, Pitcher Partners held two creditors meetings to provide updates on the mine operations as well as information on creditors. These meetings were held at the Loxton Hotel in Loxton as well as the Richmond Hotel in Adelaide.

6.4 Murray Zircon stakeholder consultation

MZ commenced consultation with stakeholders soon after the company was officially formed in June 2011. Engagement to date has been focused around:

 introducing MZ to the community  detailing the process for commencing mining operations, including the Feasibility Study and PEPR process, and  outlining the key elements of the PEPR for discussion and feedback.

MZ is continuing engagement with the local landowners and community, in order to develop relationships with key stakeholders, and inform the development of the PEPR for Mindarie A(2) and C.

6.4.1 Approach

All communication with the community is developed in line with MZ’s Communications and Engagement Strategy framework. This framework outlines the basis for the development of relationships with key stakeholders, and details an approach to engagement which aims to:

 build trust with stakeholders and become part of the community through open and transparent communications  establish mechanisms for the two-way flow of information through project construction and operations, and  provide opportunities for stakeholders to obtain information and have in place mechanisms for comments to be made.

These key elements are incorporated in the tools and activities which have occurred to date, and will inform ongoing communications during construction and operations.

6.4.2 Consultation to date

6.4.2.1 Engagement activities

Upon the launch of the MZ joint venture the company commenced consultation with the local community. Table 6.5 outlines the mechanisms that have been used to engage with different areas of the community from July 2011 to the end of February 2012:

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Table 6.5 Stakeholder activities and tools

Mechanism Description Stakeholder audience One-on-one . Facilitated discussion directly with . Directly affected meetings with interested/ directly affected stakeholders, landowners directly affected to address questions and queries. landowners . Meetings held regularly and on an ongoing basis MMCCC Meetings . 31 Meetings of the MMCCC have been . Affected landowners held since the inception of the project with . Wider community AZ . Businesses within the . MZ have facilitated the previous four District Council of meetings of the committee with meetings Karoonda East held in May, September and November Karoonda 2011, and January 2012. . DMITRE . Local meeting used as a forum to engage all stakeholders. . Regional Development Boards . The most recent meeting, held 24 January 2012, was focused on . Community Groups presenting the key elements of the mining proposal, and gathering feedback as part of the PEPR process. MMCCC Sub- . Meetings held with affected landowners of . Landowners affected Committee the A(2) mining strand by A(2) mining and Meetings rehabilitation . Purpose of group is to discuss mine closure criteria for A(2) and rehabilitation of . DMITRE the previous mining area . Sub Committee was established March 2010, firstly chaired by AZ . MZ has chaired four of these meetings to date Local Council . Presentation to the District Council of . District Council of briefings and Karoonda East Murray outlining the mining Karoonda East Murray presentations proposal . Facilitated discussion on key elements included road condition, and workers accommodation Industry . Presentation to SACOME providing . Mining community presentations information about the Proposed Mindarie Mining Activities. Advertisements . To promote and generate awareness of the . Wider community project, and upcoming community meeting. . Identified two country newspapers that circulated directly to the project area: Loxton News and The Riverland Weekly (changed later to Murray Valley Standard) . Advertised one week prior to each MMCCC meeting . Two advertisements per publication. Information . Provided information to the wider . Wider community advertorial community, and interested stakeholders a . Businesses summary of the project. . Community groups . Served as additional advertising for the MMCCC meetings.

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Mechanism Description Stakeholder audience Drop In Sessions . Two sessions to provide a forum for wider . Wider community community to discuss elements of the . Businesses project with project team . Community groups Landowner PEPR . Facilitated workshop with affected . Affected landowners workshop landowners to discuss details of the PEPR Fact sheets . Provided the community and stakeholders . Wider community information about the Proposed Mindarie . Businesses Mining Activities, Rehabilitation plan, and Program for Environmental Protection and . Community groups Rehabilitation (PEPR) document. . Elected members Q+A PEPR topics . Provide feedback on questions raised at . Meeting attendees MMCCC meetings . Wider community Media responses . Provided interviews and written responses . Wider community to media questions from print and radio media Meeting minutes . Used to record key discussions and issues . Meeting attendees raised during formal meetings. . Kept as electronic documents for future reference. Contact Point . MZ has established a point of contact . All stakeholders including phone number and email address for the community to make enquiries about the PEPR. Stakeholder . MZ has met with key stakeholders such as . Key stakeholder groups meetings East Murray Area School and the Wanbi . East Murray Area Hotel to discuss potential issues and School concerns with the mining proposal and additional infrastructure, including the . Wanbi Hotel workers accommodation Newsletter . Project status update included in the . Wider community District Council of Karoonda East Murray Quarterly newsletter Website . Developed MZ website to provide project . Wider community information, company announcements and key documents

6.4.2.2 Landholder meetings

There are six landholders along the Mindarie C strandline proposed mining area which MZ are currently working with to develop long-term relationships during PEPR approval, construction, mining and rehabilitation (refer to Figure 4.1, Appendix L). MZ currently undertake regular meetings with individual landholders to disseminate information and review the existing compensation agreement in order to establish a Deed of Variation. The key issues raised throughout the consultation process with these landowners are outlined in Table 6.6. As a result of the consultation process a Rehabilitation and Mine Closure Criteria Plan has been agreed between MZ and relevant landowners.

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Table 6.6 Landholder meetings – issues raised

Stakeholder group Feedback received How feedback has been addressed Directly impacted . Concerns about further mining . MZ has been working with landholders of on the site, as rehabilitation of landowners affected by previous Mindarie A(2) and C previous mining area did not mining operations to improve mining activities occur as committed to by rehabilitation outcomes. previous company . Mining method has been updated and has been developed to assist in improving rehabilitation outcomes. . Compensation agreements . MZ is working with landowners to need to reflect fair market rate review the existing compensation agreement and establish a Deed of Variation . The rehabilitation of previously . MZ will continue to work with mined land and the ability to landowners affected by previous bring up to its pre-existing mining operations, and use these condition. results to demonstrate a different approach to managing rehabilitation. . How has the mining . Improved processing methods methodology been updated to means less water is used in the improve rehabilitation process, to improve long-term outcomes rehabilitation . Soil will be moved using scrapers instead of dozers to improve soil stability . Final separation will not be occurring on site, which was the key source of slurry affecting land quality in the previous operations . Current rehabilitation of A(2) is . MZ has been working closely with not yet complete landowners and DMITRE to finalise the rehabilitation of the A(2) mining area. . MZ has made significant progress in rehabilitating the previous mining area, and will be required to ensure the standard is accepted by the landowners before mining commences on site.

6.4.2.3 Wider community feedback

In addition to the meetings and discussions with landowners, MZ have committed to communicating and engaging the wider community. MZ has undertaken two community meetings for the wider community (15 November 2011 and 24 January 2012), at the East Murray Community Centre (East Murray Area School). Prior to the community meetings MZ prepared a presentation to discuss the following:

 program for environmental protection and rehabilitation (PEPR) process  rehabilitation plans  proposed mining activities including mining methodology, workers accommodation and wider community opportunities.

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In preparation for the community meetings several tools were developed to help facilitate key messages and deliver important information regarding the rehabilitation process. Table 6.7 outlines the tools that were prepared:

Table 6.7 Community meeting tools

Tools Description/rationale Items Loxton News . To provide the surrounding community . 2 x paid advertorials with timely information about the project . 2 x paid public notices and upcoming community meetings. . Distribute project representatives contact details. The Riverland . To provide project information to the . 2 x paid advertorials Weekly broader community. . 2 x paid public notices . Provide various channels of communication opportunities. . Distribute project representatives contact details. Fact Sheet . To provide detailed information . 250 x A4 coloured fact regarding the PEPR, Rehabilitation sheets (Double sided) Plan and contact details. PowerPoint . Visual aid to present technical . 29 x slides Presentation information. . Presented maps, summary of proposed project areas, maps of rehabilitation progress, consultation process and PEPR study. Feedback form . To gather information and feedback . Double sided A4 form from community meeting attendees. . 10 x questions . Used to analyse strengths, weaknesses and opportunities to improve the consultation process

The key stakeholders and their issues and concerns raised through the engagement process, and how this feedback has been considered for mining of Mindarie C and rehabilitation of A(2), is documented in Table 6.8.

Table 6.8 Community issues and feedback integration

Stakeholder group Feedback received How feedback has been addressed East Murray Area . Desire to bring families to the . MZ will encourage workers to School district settle in the area with their families, if they desire . This is a personal choice for individual families and cannot be directed by MZ

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Stakeholder group Feedback received How feedback has been addressed District Council of . Poor existing quality of . MZ will take this issue to DPTI to Karoonda East Karoonda Road, exacerbated by discuss road condition and Murray additional truck movements possible maintenance plans . Council preference is for rail . MZ are committed to negotiating transport, but understanding this use of the railway, but at this is not yet possible stage is not possible . MZ will continue pursuing this, but for the immediate future will rely on trucking. Wider community . Location of accommodation . MZ will work with Council camp adjacent the Wanbi Hotel through the Development has the potential to cause social Approval process to ensure issues appropriate policies are in place to manage social issues. . MZ to support the local . MZ plan to develop a community, as this did not Community Sponsorship plan to eventuate previously identify opportunities to support the wider community . Poor existing quality of . MZ will take this issue to DPTI to Karoonda Road, exacerbated by discuss road condition and additional truck movements possible maintenance plans . Opportunities for local . MZ is committed to employing employment are important to the local people where possible community . This will be managed long term by the Mining Contractor who will be encouraged to source people locally Local businesses . Maximising employment . MZ is committed to employing opportunities for the region local people where possible . This will be managed long term by the Mining Contractor who will be encouraged to source people locally . Maximising the use of local . This will be managed long term businesses and suppliers – by the Mining Contractor including local accommodation, . They will be encouraged by MZ bus service, banking, as done to use local businesses and previously. services where possible . MZ will compile a register of businesses who are interested in providing services to the mining contractor, to pass on once they have been appointed.

6.4.3 Ongoing consultation

A range of communication materials and tools will be required to achieve the objectives outlined in the Stakeholder Communications and Engagement Strategy – detailing plans for ongoing communications during construction and operation. Refer to Appendix I for the detailed outline of the strategy.

The following table outlines only some of the tools and activities that MZ have included as a part of the Strategy.

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Table 6.9 Ongoing consultation communications and engagement tools and activities

Communication tool/ Rationale Targeted stakeholder group activity Introductory letters and . Purpose of letters is to: . Resident/property owners ongoing letter . Government agencies  Inform community groups and correspondence stakeholders about Murray . Local Community and Zircon and their plans Businesses  Make contact with . State MPs stakeholder to seek their . Aboriginal groups input into the rehabilitation . Environment groups process to be documented in . Non-government the PEPR. organisations  Advertise contact methods to wider community, including upcoming event details . To provide an ongoing form of communication with stakeholders. Briefing to Council . Ensure Council and the Local . Council staff members and Local elected member are aware of the . Local Government Elected members PEPR process, investigations, Members consultation process and timing, . Local Members and to address items of interest/issues. Website . Provide stakeholders and . Landowners community members with a . Local businesses forum to gain updates and other . Community groups information. . Wider community . Provide an avenue from which people can locate information about upcoming events, and contact details should further information be required. . Provide an opportunity for stakeholders to access project documents, including the PEPR. Project email . To contact the project team via . Landowners email with enquires regarding the . Local businesses project. . Community groups . A method by which complaints . Wider community and incidents can be reported and recorded Consultation database . To provide an ongoing and real . Any stakeholder groups time record of all stakeholder who have contact MZ interactions . To assist in the reporting process . Provide input into the issues identification process Community Sponsorship . To clearly outline MZ’s capacity . Landholders plan to support community . Local community groups partnerships in building positive . Wider community and relationships with the community businesses . Manage expectations of all stakeholders as to how MZ are able to invest in community benefits

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6.4.4 PEPR community consultation feedback

During the formal community consultation phase of the PEPR approval process, MZ held various public meetings, one on one workshops, and drop in sessions, as well as distributed information via the website, the District Council of Karoonda East Murray quarterly newsletter and fact sheets. The feedback MZ received from these activities is presented below.

6.4.4.1 Public meetings

The questions asked during these activities and the answers given are listed below:

Q: How can we trust Murray Zircon (MZ)? A: There are two major reasons that MZ operations will be successful where AZC were not. Firstly, the major shareholder in MZ is able to use all of the product and will underpin the Australian operation financially. Secondly the mining methodology and processing have changed to reduce operational costs.

Q: How will MZ handle the overburden (OB) rehabilitation differently to the previous operations? E.g. pushing wet material back into the pit causing long term rehabilitation issues. A: A rheology modifier will be used during the process which will separate the water from the solids, so that dewatered material is returned to the mining pit. Operational controls will be put in place so that the mining operations cease if the dewatering system is not functioning.

Q: What mining technique will be used by MZ? A: The mining operation will consist of an earthmoving fleet of scrapers, bulldozers, excavators, front end loaders and dump trucks. These are standard items of equipment used in the mineral sands industry. The method to be employed will require less stockpiling of overburden and double handling than previously required when mining Mindarie A(2) and portions of Mindarie C. The top soil, sub soil and overburden stockpiles when removed will be positioned next to (parallel) to the strand to be mined.

Q: How can MZ be profitable, when the operations were not previously? A: There are several changes in the process and to the commodities markets that make this operations financially viable. Firstly, the zircon price has increased substantially in the last few years. Secondly, MZ will produce HMC for export thus reducing the operating costs.

Q: Is DMITRE going to monitor MZ to make sure they are doing the right thing? A: Yes, the recent changes to the Mining Act will allow DMITRE to stop mining operations if there is any breach of the Mining Lease conditions.

Q: Will the bonds required by DMITRE be appropriate for the operations? A: Yes.

Q: What is DMITRE’s role? A: MZ acquired existing mining leases from AZC, and at this point the Minister can review the lease conditions. More detail is required in the new PEPR than the previous MARP, and breaches can give DMITRE the right to stop mining.

Q: Where do landowners stand on previous agreements with AZC? A: As MZ has acquired the mining leases and operations, MZ has been advised that rights to previous agreements are assignable to MZ.

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Q: How will MZ attract families to the local school? A: MZ will encourage employees to move into the area by providing induction packages identifying local schools, sporting facilities, businesses, accommodation etc. This however, will remain the personal choice of the employees.

Q: Will there be opportunities for the accommodation to be supplied by the local B&Bs? A: Yes. MZ will encourage staff, where appropriate, to find accommodation within the community. There may also be opportunities for the mining contractor to use those facilities if appropriate.

Q: There used to be a bus run from Loxton to the mine, will this be run again? Setting up the camp next to the pub may cause concern for our community. A: The mining camp is proposed to be in Wanbi, it will be a dry camp and MZ conducts drug and alcohol testing on site to ensure the safety of all work personnel. The MZ staffing is much less than previously hence the bus service is no longer required.

Q: How many people will be on site at one time? A: 30 to 60 subject to the mining schedule.

Q: Trucks are not good for the road the roads are narrow and dangerous, some are breaking up. What is MZ doing about safety on the road? A: There will be extra trucks but MZ are working through the issues with DTEI on a traffic management plan. The Karoonda Road is a B-Double gazetted road. MZ is aware that a traffic management plan is required to cover Knights Well Road.

Q: Regarding community benefit, local area has bad mobile phone coverage. Can MZ get a mobile phone tower erected to improve coverage? A: Mark Bolton from Telstra, there will be upgrades to Sandalwood but not to Mindarie. Telstra is aware of the coverage issues. A: Discussions with Telstra and Optus are still ongoing, Telstra’s initial cost estimate was too high. However a tower could be funded through the Rural Development Fund, it has $200m in the fund. A collaborative application by MZ, school, businesses, local council and community would carry some weight. The first two rounds of funding have expired; the third and final round will expire in the next few weeks.

Q: All product is being shipped to China for processing; why not process it here in the “state of the art” plant? Has the feasibility study been undertaken with the option to process here? A: Extraction of the product past first stage is not viable as demonstrated with the AZC operations, MZ has to have a commercially viable operation which means final processing will take place in China.

Q: Community support didn’t eventuate with the previous operations, and some businesses were hurt when AZC went into voluntary administration. How will MZ support the community? A: OZ, the major shareholder in MZ, will ensure the company is properly funded and supported to ensure the business succeeds.

Q:What is going to vary from this process to the processes used in the past? A: A different mine methodology will be employed, scrapers will be used in place of push dozers. This will greatly reduce the rehandle of the overburden. A rheology modifier will be used during the process to efficiently dewater the ore before it is returned to the mine pit.

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Q: Will the workers accommodation be built before mining commences? A: The workers accommodation will be built progressively as the mine ramps up. There may be opportunities for local accommodation providers during this ramp up stage.

Q It stated in the presentation that you would use grader boarding to replace overburden, why? A: The overburden will be replaced by scrapers and the grader boards will be used to shape the overburden to provide more stable surface topography.

Q: The mine will need supplies of goods and services, will you be using local businesses and will you put a weighting toward using local. A: MZ will utilize local suppliers as much as possible. Local suppliers that have contacted MZ have had their details passed onto the relevant contact.

Q: You have said you will use road transport and not rail, why? A: There will be approximately 7-8 B-doubles a day to transport the product to the port. MZ has had discussions with the rail providers (Genesee and Wyoming). They have acquired the Adelaide to Darwin rail line and all rolling stock has been assigned to this line hence there is insufficient capacity to ship ore via rail.

Q: How much do the containers shipped by road weigh and how are the trucks configured, is the HMC wet or dry? A: The containers weight 24 tonnes each and are half filled. The trucks are configured with a light weight skel. The HMC has some moisture in it but is essentially dry.

Q: Why not use the Waikerie road via the to Port Adelaide? A: The portion on the road from Mindarie to Waikerie is not gazetted for B-doubles trucks.

Q: How did MZ manage to get the wet areas dry? A: Grader boarding was used to spread the wet material which was then allowed to solar dry.

Q: How long will the bond remain on the mining lease? A: Bond stays on the lease as long as a liability remains. Bond may be reduced if the liability reduces or conversely may increase if the liability increases.

Q: AZC trail pit was not rehabilitated properly and subsided, how can you guarantee this will not happen with the current operation? A: DMITRE is discussing this issue with landowners in the MMCCC subcommittee meeting. Subsidence was caused by incorrect replacement of soils upon completion of mining. Proposed soil replacement methodology will prevent pooling of moisture that caused the subsidence. MZ plan to mine in the area for up to 20 years hence the company will still be around if subsidence occurs 10 years after the land has been rehabilitated. The provisions in the new Mining Act allow for the Minister of Mines to order the land is rehabilitated even after the mine lease has been surrendered.

Q: Landowners need confidence in the Government that they will be protected if there are issues with the land after mining has finished. A: MZ has learnt from AZC errors and has put different compensation agreements in place. MZ has demonstrated its integrity through the efforts in rehabilitating the land to date.

Q: How were the topsoil stock piles managed in the past compared to how MZ will manage them? A: The old method used inert clay to form a cover over the top soil and then a cover crop. Under the new method the topsoil will be spread in 100m long sections and watered

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immediately to form a crust. The first year the topsoil is replaced a non-commercial cover crop will be planted. MZ will work with the sub-committee regarding the best approach.

Q: What discussions have MZ and Karoonda Council had regarding the Wanbi oval as the proposed camp site? A: Council are supportive of the camp at Wanbi oval. Council will need to purchase a small strip of land held by a third party and are willing to do this due to the long term nature of the lease to MZ. A Category 3 application will be lodged with council within the next two weeks.

Q: The mining mythology has changed, does this mean more water and more bores along the strandline? A: The same amount of water will be used for processing as the previous operations. Excess water from the processing will go back to the mine pit, and the same extraction wells will be used during the mining. The previous operations used much less water than the allocation allowed.

6.4.4.2 Written submissions

During the formal community consultation phase of the PEPR approval process, MZ also received the following written submissions:

District Council of Karoonda East Murray:

Page 121 – 7.2.4.2 Potential Impacts – The increase in heavy vehicle traffic WILL lead to deterioration of the local road network. Given the increase in traffic movements and that the roads have not been constructed to a b-double standard the consequence would, in my view, be medium. Having said that I acknowledge that a Road Maintenance Agreement will be in place but it needs to be acknowledged what the realistic impact will be on Council roads.

MZ acknowledge that there will be some deterioration of road conditions due to the increase in heavy vehicle traffic. MZ will enter into a Road Maintenance Agreement with the District Council of Karoonda East Murray for the maintenance of council managed roads.

Appendix D: Page 35 – 5.1.3 Existing environment and environmental impacts – The waste streams are detailed in Table 5.1. Murray Zircon have had preliminary discussions with Council’s Works Manager. It needs to be noted that given the resources of Council that there would be no change to the existing domestic run which takes place on a weekly basis. Murray Zircon may have to consider waste disposal utilising the Riverland and a company specialising in waste removal.

MZ acknowledge that domestic waste there will be no change to the collection of domestic putrescible waste by the District Council of Karoonda East Murray. As required MZ will use suitably qualified contractors to recycle/dispose commercial and or industrial waste from site.

Appendix H: Page 3 – Key stakeholders. The Murraylands Regional Development Board and Riverland Development Corporation have amalgamated to form the RDA Murraylands and Riverland Inc.

MZ acknowledge the change of name of stakeholders and have updated the Community Consultation Plan accordingly.

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7. Environmental outcomes

7.1 Background

The assessment of the potential for mining operations to impact the environment is normally undertaken by conducting an Environmental Risk Assessment (ERA) to:

 identify potential environmental, social and economic aspects and impacts  provide a framework for the environmental impact assessment, and  develop strategies to address these impacts.

On 8 November 2011 DMITRE issued draft Mining Lease conditions to MZ for the Mindarie C and Mindarie A strandlines (refer to Appendix K). Condition 1 in the Second Schedule specifies environmental and mine rehabilitation outcomes and other environmental conditions that must addressed in the PEPR. In addition on 8 November 2011 DMITRE issued a draft Determination of the matters that are required to be addressed in the PEPR (refer to Appendix K).

Consideration has been given to avoidance, mitigation and/or management strategies. These have been categorised as Design Control Strategies (strategies that can be incorporated into the design of the mine and associated infrastructure) and Operational Management Strategies (management approaches and plans to be implemented both during and following operations).

Section 4.1 of the Determination indicates that the control and management strategies should be commensurate with the risk of the potential impacts. In order to assess this MZ has reviewed the impacts and risk register developed for the previous mining activities for Mindarie A(2) and Mindarie C and these are discussed in the following sections.

The Design Control Strategies and Operational Management Strategies are technically and economically feasible and reflect MZ’s commitment to minimising environmental impact and adopting an approach to the project that demonstrates leading practice mining and environmental management.

In the following sections where there is specific issues that are relevant to either Mindarie C or Mindarie A(2) they are discussed separately. Otherwise the issue are equally applicable to both Mindarie C and Mindarie A(2).

7.1.1 Control and management strategies

The incorporation of control and management strategies into the project includes both Design Control Strategies and Operational Management Strategies. Design control strategies are the primary control strategies designed to ameliorate the impact prior to it occurring. They encompass aspects of the project such as infrastructure design and placement e.g. inclusion of low permeability barriers in dam design. Secondary strategies are those that involve management activities during operations e.g. management and monitoring plans.

Implementation of both design and operational management control measures will facilitate the achievement of the identified objectives.

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7.1.2 Outcomes measurement criteria

Outcomes measurement criteria have been developed for each of the environmental outcomes contained in the lease conditions. The outcomes measurement criteria indicate what will be measured, where it is measured, when and how often it will be measured and where possible the measurement technique and standard or guideline that has been adopted. The outcomes measurement criteria will be used to demonstrate the achievement of the outcome and used by DMITRE to assess compliance. In addition to developing the assessment criteria for the project, leading indicators have been developed for those outcomes specified in the conditions and for high consequence events that rely on a control strategy to reduce the risk. These leading indicator criteria will give early warning that the control measure is failing and the outcome is potentially at risk of not being achieved.

7.1.3 Monitoring

A component of the environmental management approach during operations will be monitoring of environmental elements (e.g. flora, fauna, water quality, dust, etc.) to demonstrate achievement of the outcomes (using the assessment criteria).

Details of the monitoring to be undertaken during operations are summarised in Sections 7.2 and 7.3 below.

7.1.4 Environmental outcomes and measurement criteria

The lease conditions specify environmental and mine rehabilitation outcomes that must be included in the PEPR. There are other lease conditions for which environmental outcomes have not been specified. For these lease conditions the Determination by the Minister indicates that the PEPR needs to demonstrate (where relevant) where they have been addressed or demonstrate how they will be complied with. MZ has developed environmental and social outcomes for some of the additional lease conditions and other aspects not included in the lease conditions but highlighted by the risk assessment.

MZ is committed to implementing the environmental and mine rehabilitation outcomes for the construction, operation, rehabilitation and closure of the project and complying with all lease conditions.

Each environmental outcome is accompanied by measurable criteria (‘measurement criteria’) that can be used by MZ and others (such as external environmental auditors and DMITRE) to assess progress towards or compliance with the outcome. The measurement criteria have been developed in consultation with DMITRE, who will be the primary regulator for the project and the community which had an opportunity to comment on a draft PEPR.

The measurement criteria detail what is being measured, and what the measurement is assessed against. Where possible, the measurement criteria are based on standards, guidelines, monitoring results or similar that allows numerical comparison. However, this is not always feasible hence, other criteria have been developed that relate to the implementation of specific measures that require a simple yes/no, use comparison with baseline or control site data, or use comparison with specific project features.

In addition to the requirement under the lease conditions and Determination for aspects where a high consequence has been identified as potentially occurring and which relies heavily on a control strategy to reduce the risk, a leading indicator has been developed. The lease conditions have also specified that additional leading indicators are required for outcomes dealing with soil, mine closure and rehabilitation and groundwater and surface

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water. These leading indicators will provide an early warning that the control measure is failing and the outcome is potentially at risk of not being achieved. The detection of unexpected results will lead to immediate action being taken and these indicators have been included in the management and monitoring plans.

Table 7.1 below outlines the Lease Conditions and associated outcomes for mining of the Mindarie C strandline and rehabilitation of the Mindarie A(2) strandline as well as where these are discussed within the PEPR document.

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Table 7.1 Schedule 2 Mining Lease Conditions and outcomes

Lease Condition Outcome Location within Location within PEPR for PEPR for Mindarie C Mindarie A(2) Noise The Lessee must, in constructing and operating the Lease, ensure No adverse public nuisance impacts from noise 7.2.3 7.2.3 that there are no adverse public nuisance impacts from noise emanating from the Lease. emanating from the Lease. Air Quality The Lessee must in constructing and operating the Lease ensure No adverse public health and/or nuisance impacts 7.2.8 7.2.8 there are no adverse public health and/or nuisance impacts to local to local residents from air emissions and, dust residents from air emissions and, dust generated by mining generated by mining operations operations Unauthorised access The Lessee must in constructing and operating lease ensure there No public injuries and or deaths resulting from 7.2.6 7.2.6 are no public injuries and or deaths resulting from unauthorised entry unauthorised entry to the site that could be to the site that could be reasonably prevented reasonably prevented Traffic The Lessee must in constructing and operating the Lease ensure No traffic accidents involving the public at mine 7.2.4 7.2.4 there are no traffic accidents involving the public at mine access access points that could have been reasonably points that could have been reasonably prevented by the Lessee prevented Adjacent land use 7.2.6 The Lessee must in constructing and operating the Lease ensure No adverse impacts to adjacent land use 7.2.6 there are no adverse impacts to adjacent land use Protection of third party property The Lessee must in constructing and operating the Lease ensure No unauthorised damage (including caused by fire) 7.2.6 7.2.6 there is no unauthorised damage (including caused by fire) to to adjacent public or private property and adjacent public or private property and infrastructure infrastructure Aboriginal and European heritage The Lessee must in constructing and operating The Lease ensure No disturbance to Aboriginal or European artefacts 7.2.5 7.2.5 there is no disturbance to Aboriginal or European artefacts or sites of or sites of significance unless prior approval under significance unless prior approval under the relevant legislation has the relevant legislation has been obtained been obtained

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Lease Condition Outcome Location within Location within PEPR for PEPR for Mindarie C Mindarie A(2) Native vegetation The Lessee must in constructing and operating the Lease ensure no No loss of abundance or diversity of native 7.2.1 7.2.1 loss of abundance or diversity of native vegetation on or off the Lease vegetation on or off the lease through: through: . Clearance . Clearance . Dust/contaminant deposition . Dust/contaminant deposition . Fire, or . Fire, or . Other damage . Other damage unless prior approval under relevant legislation is Unless prior approval under relevant legislation is obtained obtained Weeds and Pest (Feral Animals) The Lessee must in constructing and operating Lease ensure no No introduction of new species of weeds, plant 7.2.2 7.2.2 introduction of new species of weeds, plant pathogens or pests pathogens or pests (including feral animals), nor (including feral animals), nor sustained increase in abundance of sustained increase in abundance of existing weed existing weed or pest species in the Lease area compared to or pest species in the Lease area compared to adjoining land. adjoining land. Top and Sub soil The Lessee must in constructing and operating the Lease ensure that Existing top and sub soil quantity and quality is 7.2.12 7.2.12 the existing top and sub soil quantity and quality is maintained. maintained. Groundwater and surface water The Lessee must in constructing and operating the Lease ensure that No adverse impact on the quality and quantity of 7.2.10 and 7.2.11 7.2.10 and 7.2.11 there is no adverse impact on the quality and quantity of ground and ground and or surface water caused by mining or surface water caused by mining operations to existing users and operations to existing users and water dependent water dependent ecosystems ecosystems Stormwater The Lessee must in constructing and operating the Lease ensure no No water is contaminated as a result of mining 7.2.10 7.2.10 water is contaminated as a result of mining operations; leaves the operations, leaves the Lease area or results in loss Lease area or results in loss of or contamination of soil on or off the of or contamination of soil on or off the lease. Lease. Hydrocarbon contamination The Lessee must in constructing and operating the Lease ensure that No compromise of the quality of groundwater 7.2.10, 7.2.11, 7.2.10, 7.2.11, there is no compromise of the quality of groundwater caused by caused by hydrocarbon contamination. 7.2.12 7.2.12 hydrocarbon contamination.

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Lease Condition Outcome Location within Location within PEPR for PEPR for Mindarie C Mindarie A(2) Mine waste disposal and hazardous substances The Lessee must in constructing and operating the Lease ensure that No contamination and/or pollution of the natural 7.2.10, 7.2.11, 7.2.10, 7.2.11, no contamination and/or pollution of the natural drainage systems, drainage systems, streams and rivers, groundwater, 7.2.12 7.2.12 streams and rivers, groundwater, land and soils occurs either on or land and soils occurs either on or off-site by waste off-site by waste products and hazardous materials used on the mine products and hazardous materials used on the mine operations. operations. Commercial and industrial waste disposal The Lessee must in constructing and operating the Lease ensure that All commercial or industrial waste is disposed in 7.2.10, 7.2.11, 7.2.10, 7.2.11, all commercial or industrial waste is disposed of in accordance with accordance with relevant legislation 7.2.12 7.2.12 relevant legislation Mine rehabilitation The Lessee must demonstrate to the satisfaction of the Director . Final landforms and vegetation will be integrated 8 8 Mines that the following mine colure and rehabilitation outcomes (in with the surrounding landscape so far as they may be affected by mining operations) are expected to . Risks (including radiological) to the health and be achieved and sustained after mine closure: safety of the public and fauna will be as low as . Integrate and harmonise final landforms and vegetation with the reasonably practical surrounding landscape . The site is physically stable . The risks (including radiological) to the health and safety of the . No compromise of the quality and quantity of public and fauna are as low as reasonably practical ground and/or surface water to existing users . The site is physically stable and water dependent ecosystems . No compromise of the quality and quantity of ground and/or . All mine waste materials left on site to be surface water to existing users and water dependent ecosystems chemically and physically stable . All mine waste materials left on site are chemically and physically . No industrial or commercial waste left on site stable . Where applicable the pre-mining native . No industrial or commercial waste left on site ecosystem and landscape function or pre mining . Where applicable for all disturbed areas either establishment of cultivated land use and productivity will be pre-mining native ecosystem and landscape function or pre mining established. cultivated land use and productivity. Visual Amenity and Landscaping Structures and buildings must be designed and constructed so as to No DMITRE outcome specified in condition 7.2.7 N/A present a neat and orderly appearance and to blend as far as MZ is utilising existing structures and buildings that practicable with the surrounding landscape. were established as part of the previous mining operations. Any new buildings will be designed and constructed to present a neat and orderly appearance and blend as far as practicable with the surrounding landscape.

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Lease Condition Outcome Location within Location within PEPR for PEPR for Mindarie C Mindarie A(2) Community consultation Prior to commencement of construction and mining operations the No DMITRE outcome specified in condition. 7.2.6 7.2.6 Lessee must prepare and submit a community Consultation Plan, MZ has included a Community Consultation Plan in outlining the proposed mechanisms for on-going consultation with PEPR. local residents and stakeholders. Consultation in preparing the PEPR In preparing the PEPR submitted under Section 70B of the Mining Act No DMITRE outcome specified in condition 7.2.6 7.2.6 1971, the Lessee must consult with affected infrastructure and service MZ will consult with affected infrastructure and authorities and landholders and make arrangements satisfactory to service authorities and landholders and where those authorities for the protection and relocation of those services necessary make arrangements satisfactory to those and infrastructure. authorities for protection or relocation of those services and infrastructures. Public complaints The Lessee will be responsible for recording and addressing in a No DMITRE outcome specified in condition 7.2.6 7.2.6 manner and form (to the satisfaction of the Director of Mines) any MZ has established a system to address complaints complaints received from the public. from the public to the satisfaction of the Director of Mines. Landholder liaison The Lessee must agree a written protocol to ensure that the occupier No DMITRE outcome specified in condition. 7.2.6 7.2.6 of the land is fully advised of their program of activities, particularly in MZ will develop a written protocol that ensures the regard to the impact of operations on the land and rehabilitation occupier of the land is fully advised of the program progress. of activities and the impact of operations on the land and rehabilitation progress. Refuelling Fuel storage to be bunded in accordance with EPA requirements No DMITRE outcome specified in condition. 7.2.10, 7.2.11, 7.2.10, 7.2.11, MZ commits to bunding fuel storage in accordance 7.2.12 7.2.12 with EPA requirements Progressive rehabilitation The Lessee must undertake rehabilitation of mining operations in No DMITRE outcome specified in condition 8 8 accordance with an integrated mining and rehabilitation plan as approved in the PEPR to ensure that: post mining crop productivity is equal to or better than crop productivity in the adjoining paddocks and is sustainable in the long term.

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Lease Condition Outcome Location within Location within PEPR for PEPR for Mindarie C Mindarie A(2) The Lessee must ensure that the PEPR submitted under Section 70B The PEPR specifies the maximum area of disturbed 5.3.5.2 N/A of the Mining Act 1971 specifies the maximum area of disturbed land land that the whole operation will not exceed at any that the whole operation will not exceed at any time. time specifies a rehabilitation schedule and Maximum areas must be specified for each of the following: commitment to reporting monthly to the Director of Mines. . The length and area of land that has been either stripped of top soil, or is awaiting reinstatement of topsoil. . The length of area and land that has been either stripped of subsoil, or is awaiting reinstatement of subsoil. . The length and area of land that has had overburden removed or is awaiting reinstatement of overburden. Once approved in the PEPR, the area of the above disturbed areas must be reported monthly to the Director of Mines. The Lessee must ensure that the PEPR submitted under Section 70B of the Mining Act 1971 specifies a rehabilitation schedule (with a firm commitment to timeframes) for previously disturbed areas. Provision of alternate groundwater supply 7.2.10 7.2.10 The Lessee must provide a replacement water supply of similar No DMITRE outcome specified in condition quality and quantity to any affected existing groundwater users, until MZ will provide an alternative water supply for such time as the mine ceases to impact on the users water supply. affected users until such time as the mine ceases to impact on the users’ water supply. It is noted that to date there has been no evidence that existing users have been affected in terms of groundwater quality and quantity. Road transport The Lessee must prepare a Traffic Code of Conduct for all haulage No DMITRE outcome specified in condition 7.2.6 7.2.6 vehicles associated with the Mindarie Mineral Sands Project operating MZ will prepare a Traffic Code of Conduct for all within the Mallee District prior to commencement of construction and haulage vehicles associated with the Mindarie to the satisfaction of the Minster, requiring these haulage vehicles to Mineral Sands Project. comply with the Code. Road maintenance (a) The Lessee must enter into a Road Maintenance Agreement with No DMITRE outcome specified in condition 7.2.6 7.2.6 the District Council of Karoonda East Murray for roads that are MZ will enter into a Road Maintenance Agreement impacted by the mining operations. with the District Council of Karoonda East Murray prior to commencement of operations.

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Lease Condition Outcome Location within Location within PEPR for PEPR for Mindarie C Mindarie A(2) Loxton-Murray Bridge Road (RN 7500) The Lessee must have a formal agreement with the Department for No DMITRE outcome specified in condition 7.2.6 7.2.6 Planning, Transport and Infrastructure in relation to the proposed B- MZ will enter into a formal agreement with DPTI as Double truck transport route. required by these entities. Railway diversion The Lessee must have a formal agreement with the Department for No DMITRE outcome specified in condition 7.2.6 7.2.6 Planning, Transport and Infrastructure (DPTI) and Genesee and No diversion of the rail line will be required for Wyoming Australia in relation to operational issues that have an mining of the Mindarie C strandline. impact on the rail corridor or associated with transport of heavy mineral concentrate by rail. A copy of this formal agreement shall be supplied to the Minister and registered against the Mining Lease. Groundwater monitoring The Lessee must ensure that the PEPR submitted under Section 70B No DMITRE outcome specified in condition 7.2.11 7.2.11 of the Mining Act 1971 includes details of groundwater bore MZ will adopt monitoring requirements specified by monitoring procedures in accordance with this clause. the condition During operations, each water monitoring and discharge point or utilisation area specified in the criteria must include an identifying number and demonstrate that monitoring of existing production and monitoring wells will be at least at the following frequency: (Frequency Table included in Appendix E – Water Management and Monitoring Plan) For long term groundwater monitoring (2 years after active mines are decommissioned and rehabilitated): (Frequency Table included in Appendix E – Water Management and Monitoring Plan) Leading Indicators The PEPR must include additional leading indicator criteria for the Leading indicators have been specified in the PEPR 7.2.10, 7.2.11, 7.2.10, 7.2.11, following outcomes: 7.2.12 and 8 7.2.12 and 8 . Soil . Mine closure and progressive rehabilitation . Groundwater and hydrology

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Lease Condition Outcome Location within Location within PEPR for PEPR for Mindarie C Mindarie A(2) Other legislation The above environmental outcomes do not derogate from the MZ will comply with applicable legislation 3 3 operation of any other Acts that may be applicable to this operation including (but not limited to): . Aboriginal Heritage Act 1988 . Environment Protection Act 1993 . Natural Resources Management Act 2004

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7.2 Mindarie C (ML 6226) and Mindarie A(2) (6220)

This section outlines the identified environmental risks, outcomes, assessment criteria and management strategies associated with mining and rehabilitation of the Mindarie C strandline (ML 6226) and Mindarie A(2) (ML 6220) as per the method outlined in Sections 5.1.1–5.18 of this document.

7.2.1 Native vegetation

7.2.1.1 Context

The Mindarie C strandline occurs in an area where native vegetation has been extensively cleared for agricultural purposes.

The project area falls within the Kunlara Environmental Association (2.4.1) and the Holder Environmental Association (2.4.9) and is described as an undulating calcrete plain with extensive sand sheets, low dunes and shallow depressions (Government of South Australia 2007). Vegetation varies from disturbed mallee scrub to open parkland and grassland. The dunes have been cleared to an open parkland but elsewhere the vegetative cover is a cultural grassland used for cereal cultivation and grazing (Government of South Australia 2007).

The Kunlara Environmental Association contains approximately 9% of remnant vegetation (DEH 2002) and the Holder Environmental Association contains approximately 18.5% of remnant vegetation. Additionally, the site is located within the Hundred of Mindarie, which contains approximately 11% of its original vegetation (DEH 2002), and the Hundred of Chesson, which contains approximately 6% of its original vegetation (DEH 2002). These percentages are considered to be low and reveal limited native vegetation remains within the area.

There are eleven Vegetation Associations present within the strandline:

Group 1: Eucalyptus calycogona ssp calycogona (Square-fruit Mallee)/Maireana brevifolia (Short-leaf Bluebush) Open Mallee. Group 2: Maireana brevifolia (Short-leaf Bluebush)/Exotic grassland Open Shrubland. Group 3: Atriplex nummularia ssp. (Old-man Saltbush) Plantation. Group 4: Eucalyptus socialis (Red Mallee)/Eucalyptus calycogona ssp calycogona (Square-fruit Mallee)/Maireana brevifolia (Short-leaf Bluebush) Open Mallee. Group 5: Eucalyptus oleosa (Red Mallee) Open Mallee. Group 6: Eucalyptus incrassata var. incrassata (Ridge fruited Mallee) Open Mallee. Group 7: Eucalyptus oleosa (Red Mallee)/Eucalyptus incrassata var. incrassata (Ridge fruited Mallee) Open Mallee. Group 8: Revegetation area. Group 9: Eucalyptus calycogona ssp calycogona (Square-fruit Mallee)/Eucalyptus incrassata var. incrassata (Ridge fruited Mallee) Open Mallee. Group 10: Paddock/grazing land. Group 11: Grevillea pterosperma (Dune Grevillea)/Acacia brachybotrya (Grey Mulga-bush) Open Shrubland.

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Two flora species, Notable Wattle and Tall Kerosene Grass, considered as regionally Rare were identified as occurring within Vegetation Associations 8 and 10 within the Mindarie C mining lease area.

The Mindarie A(2) strandline has undergone mining activities which have significantly altered the pre-mining vegetation within the mining affected areas. As with the Mindarie C strandline the majority of the Mindarie A(2) strandline was comprised of dryland cropping with only small areas of native vegetation present (as shown in Figure 4.9, Appendix L).

Four native Vegetation Associations and two non-native Vegetation Associations occurred along the Mindarie A(2) ML and included (EBS 2005)as follows:

 Aristida contorta – Native Grassland  Eucalyptus Dumosa – Open Mallee  Maireana brevifolia Open Shrubland  Eucalyptus cyanophylla +/- E. socialis – Open Mallee  exotic grassland  cropping.

A total area of 9.86 ha of native vegetation was cleared for the mining of Mindarie A(2), comprising:

 Eucalyptus dumosa Open Mallee association  native/exotic grassland as a sparse occurrence on a sandhill  native grassland Aristida contorta.

The remainder of the vegetation that was affected within the Mindarie A(2) mining lease was dryland cropping. These areas have either been rehabilitated or are currently being rehabilitated.

Upon completion of mining activities the replanting of approximately 1.5 ha of Native Vegetation along Knights Well Road occurred in 2008. Due to losses during the summer months 387 new native tube stock were planted in July 2009 to replace trees that had died in the original planting.

7.2.1.2 Applicable legislation or standards

The relevant acts of legislation that protect the State’s flora and provide a framework for management are discussed in detail in Section 2 and include:

 Environment Protection and Biodiversity Conservation Act 1999  National Parks and Wildlife Act 1972  Native Vegetation Act 1991.

7.2.1.3 Potential impacts

The primary impacts and risk levels associated within native vegetation relates to the clearance of vegetation and are described in the sections below:

Reduced species abundance both locally and regionally

Some vegetation will need to be cleared to facilitate the establishment of the Mindarie C strandline. Without the implementation of management strategies, it is considered unlikely that there will be reduced species abundance in local and regional ecosystems associated

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with the operations. In the event that there is a reduction in species abundance it is considered there would be an insignificant impact on native flora. This results in a low level of inherent environmental risk.

No native vegetation clearance is required for the remaining rehabilitation activities for Mindarie A(2).

Inhibition of native vegetation growth

The emissions to air and water due to mining and rehabilitation operations can reduce the ability of flora to conduct photosynthesis and respiration thus inhibiting plant growth.

Vegetation clearing, vehicle movements and day-to-day operational activities will generate dust. Ground compaction, soil or water contamination and physical damage to vegetation in the mining lease area may also reduce the ability of plants to become established, and limit the potential for regeneration and revegetation of disturbed areas. Mine infrastructure may alter the runoff and drainage characteristics of the ML area and have adverse effects on downstream vegetation. This may reduce plant health and degrade habitat for existing native vegetation.

Without the implementation of any control and management strategies it is considered possible that air and water emissions will cause a serious impact to the health of native vegetation. The consequence is considered to be minor given its geographically limited nature of affect, thus a moderate inherent risk has been determined.

Reduced species and abundance due to fire

Fires originating from mining and rehabilitation operations have the potential to affect areas of native vegetation within and adjacent to the mining lease. Without the implementation of control measures the potential for a fire originating from mining operations to cause a reduction of native flora species abundance and diversity is considered to be possible, whilst the consequence is minor providing a moderate inherent risk.

7.2.1.4 Control and management strategies

Design control measures

Design control strategies to minimise impacts to native vegetation during the planning and development phases of the Mindarie C strand line project have predominantly focussed on minimising the area required for clearing as far as practicable. This is not applicable to Mindarie A(2) as the activities relate to rehabilitation of the previously disturbed surfaces.

Additionally, implementation of mine operation and rehabilitation procedures will reduce the likelihood of fires.

Operational management strategies

Measures to avoid, mitigate and manage the risks of impact on native vegetation include:

 Implementation of a Native Vegetation Management and Monitoring Plan that includes details on:  project specific vegetation procedures for vegetation clearance prior to removal of vegetation (i.e. to ensure that all clearance associated with the project is undertaken in accordance with approval requirements)

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 collection of seeds, other propogules and other surface vegetative matter for replanting/spreading  reseeding/tubestock planting  irrigation of tubestock during the first two summers of planting  exclusion of grazing  weed control (refer to Section 7.2.2)  provision of Significant Environmental Benefit offsets.

 Implementation of a Mine Rehabilitation and Closure Plan that includes  progressive infill and rehabilitation of pit voids  return of subsoil, topsoil and vegetative matter during rehabilitation activities  soil management and segregation of topsoil and subsoil.

A copy of the Native Vegetation Management and Monitoring Plan is included in Appendix E whilst the Mine Rehabilitation and Closure Plan is included in Section 8 of this PEPR. The management and monitoring plans provide details on:

 what will be measured  responsible person for undertaking the measurement  location of measurement  methodology  record keeping  reporting protocols.

7.2.1.5 Summary of environmental outcomes and measurement criteria

The risk levels, outcomes and measurement criteria are provided in Table 7.2 below.

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Table 7.2 Environmental outcomes, risk levels, control and management strategies and measurement criteria – native vegetation

Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria MZ-009 Reduction of species L Implementation of the Native L No loss of abundance Annual review of native N/A abundance both Vegetation Management and or diversity of native vegetation clearance permits locally and regionally Monitoring Plan and Mine vegetation on or off the demonstrate all clearance has due to clearing Closure and Rehabilitation Plan. lease through: been authorised under the activities Minimise clearance of native . Clearance Native Vegetation Act 1991as vegetation. per the Native Vegetation Unless prior approval Management and Monitoring under relevant Plan (Appendix E) legislation is obtained MZ_010 Inhibition of vegetation M Implementation of the Native L No loss of abundance Annual native vegetation N/A growth due to the Vegetation Management and or diversity of native species abundance or diversity pollution of air quality Monitoring Plan. vegetation on or off the assessment through visual and/or surface water. lease through: observations and . Dust/containment photomonitoring assessments deposition indicate no decrease in abundance or diversity of native Unless prior approval vegetation due to mining under relevant operations (refer to locations A2, legislation is obtained. B2, C2 in Figure 4.9, Appendix L) in comparison to control sites A1, B1 and C1 MZ_011 Reduced species M Implementation of the Native L No loss of abundance Annual native vegetation N/A abundance and Vegetation Management and or diversity of native species abundance and diversity diversity due to Monitoring Plan. vegetation on or off the assessments indicate no presence of fire lease through: decrease in abundance or . Fire, or diversity of native vegetation as a result of fires caused by Other damage . mining operations (refer to Unless prior approval locations A2, B2, C2 in under relevant Figure 4.9, Appendix L) in legislation is obtained comparison to control sites A1, B1 and C1 Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.2.2 Weeds and pests

7.2.2.1 Context

Seven weed species identified during the ecological survey are listed as declared under the Natural Resources Management Act, 2004 and an additional five weed species are considered to be serious environmental weed species.

European Rabbit and European Red Fox were the only pest animal species observed during the project survey.

The project site is not located in a high risk phytophthora or Mundulla Yellows area within the state.

7.2.2.2 Applicable legislation or standards

The relevant acts of legislation that governs pest plants and animals and provides a framework for ongoing management are discussed in detail in Section 2 and include:

 Environment Protection and Biodiversity Conservation Act 1999  National Parks and Wildlife Act 1972  Natural Resources Management Act 2004.

7.2.2.3 Potential impacts

Issues and risk levels associated with the pest plants and animals that have been identified for the project are related to three specific elements:

 introduction and/or spread of existing and new weeds on site  increased abundance of pest animal species  introduction of plant pathogens to the site.

Introduction and/or spread of existing and new weeds on site

If not controlled, it is considered likely that weeds may either be introduced to the site, or the distribution of existing weeds may be exacerbated. The introduction and/or spread of existing and new weeds during construction and mining activities is considered to have a moderate consequence. This results in a high inherent environmental risk.

Introduction of plant pathogens to the site

It is considered unlikely that the plant pathogens Phytophthora cinnamomi (root-rot fungus), Mundulla Yellows or any other pathogens will be introduced to the project area. Given the environmental conditions at the site, the consequence (in the event that plant pathogens were introduced to site) is considered to be minor. This provides a low inherent environmental risk.

Increased abundance of pest animal species

If project activities are not controlled, it is considered unlikely that pest animal species may increase in abundance. Increases in pest animal species would result in a minor impact and therefore the resulting inherent environmental risk level is low.

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7.2.2.4 Control and management strategies

Design control strategies

Design control strategies include targeted location of access tracks and ancillary infrastructure outside of identified infested areas, where practicable.

Operational management strategies

Measures to mitigate against the introduction and exacerbation of pest plants and animals on site include:

 Implementation of a Weed and Pest Management and Monitoring Plan that includes:  weed inspections  weed control program within the project area  vehicle inspection and washdown requirements  reporting of feral animal sightings to the Environmental Officer.

 Implementation of a Commercial and Industrial Waste Management Plan that includes requirements for secure storage of waste.

 Implementation of a Native Vegetation Management and Monitoring Plan that includes requirements for progressive clearing.

Copies of the Weed and Pest Management and Monitoring Plan, Native Vegetation Management and Monitoring Plan and Commercial and Industrial Waste Management and Monitoring Plan are included in Appendix E of this PEPR.

The management and monitoring plans provide details on:

 what will be measured  responsible person for undertaking the measurement  location of measurement  methodology  record keeping  reporting protocols.

7.2.2.5 Summary of environmental outcomes and measurement criteria

The risk levels, outcomes and measurement criteria are provided in Table 7.3 below.

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Table 7.3 Environmental outcomes, risk levels, control and management strategies and measurement criteria – weeds and pests

Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria MZ_017 Increased abundance L Implementation of a Weed and L No introduction of new Annual review of records N/A of introduced (feral) Pest Management and weeds or pests indicate that any new weed species monitoring Plan (including feral species found on lease area are Implementation of a Commercial animals), nor sustained treated in accordance with and Industrial Waste increase in abundance Weed Management and Management and monitoring of existing weed or pest Monitoring Plan (Appendix E) Plan species on the mining and or landowner agreements lease or adjoining land within 72 hours of reporting (caused by mining infestations operations). MZ_017 Increased abundance L Implementation of a Weed and L No introduction of new Annual review of records N/A of introduced (feral) Pest Management and weeds or pests indicate that the Weed and Pest species monitoring Plan (including feral Management and Monitoring Implementation of a Commercial animals), nor sustained Plan (Appendix E) has been and Industrial Waste increase in abundance implemented Management and monitoring of existing weed or pest Plan species on the mining lease or adjoining land (caused by mining operations). Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.2.3 Noise and vibration

In December 2008 Sonus undertook a noise survey of the Mindarie A(2) mining operations to assess compliance with the Noise Management and Monitoring Plan and potential impacts on residences near Mindarie A(2) (refer to Appendix C).

The assessment concluded that the contribution of noise from the mining activities were

 Significantly less than the 45 dB(A) requirement of the Environmental Protection (Noise) Policy 2007 outside residences  significantly less than the 30-35 dB(A) criterion for noise within bedrooms of residences.

As the ongoing rehabilitation activities is using similar equipment to undertake simialr tasks to those during mining operations the report isconsidered appropriate.

Noise impacts from the mine will depend on the distance from the houses to the mine. The mobile nature of the mine (moves about 20 m/day at the initial mining rate) will ensure that any adverse impacts, even for houses near the mine, will be short-lived. A noise assessment related to the Mindarie C deposit was conducted by Sonus in October 2011. A copy of this report is provided in Appendix C. The assessment focused on the noise levels expected from the mining operation at the closest dwellings and the school (refer to Figure 4.3, Appendix L). The noise assessment modelled the potential noise emissions associated with mining operations in comparison with the noise emission limits outlined in the South Australian EPA’s Environmental Protection (Noise) Policy 2007 and included a 5dB(A) penalty. The results of the noise assessment are outlined in Table 7.4 below.

Table 7.4 Noise modelling results

Site Modelled Noise Output dB(A) Noise Emission Limit (night time) dB(A) A 50 45 B 45 45 C 44 45

The noise assessment undertaken by Sonus assumed that noise generating activities being located at the closest point to the dwellings with worst case (highest noise levels) weather conditions. At other times the noise levels would be significantly lower. The 10pm to 7am criterion of 45 dB(A) was exceeded (50 dB(A)) at dwelling “A”, a residence that is currently not occupied. In addition the third residence (A) is located in an area of the strandline that will not be mined due to the grade and resources of mineral sand. If in the future a decision is made to mine in this area MZ would implement the noise attenuation measures at the third location (establishment of a mound with a minimum height of 6m) to ensure that the night time noise limit will be met.

MZ has entered into compensation agreements with stakeholders whose amenity is considered likely to be negatively affected through mining operations and rehabilitation activities (this includes noise amenity). Due to this, the assessment criteria developed for noise amenity do not include consideration of those stakeholders who have amenity compensation agreements in place.

7.2.3.1 Applicable legislation or standards

The relevant acts that govern noise and vibration in the State were discussed in detail in Section 3 and include:

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 Environment Protection Act 1993  Environment Protection (Noise) Policy 2007.

7.2.3.2 Potential impacts

Operations associated with the mine will produce noise and vibration from both fixed and mobile equipment. The major sources of noise associated with the operations have been identified as being plant noise associated with onsite vehicles and machinery (e.g. drills, loaders, pumps, haul trucks, excavators and other ancillary equipment).

The nearest sensitive off-site receiver is located 500 m from mining operations. As a result it is considered likely that disturbance from noise and vibration would be experienced in this location. Although the events may be short-lived, in the event that an effect was felt, the consequence would be minor. The inherent risk to the environment is therefore considered to be high.

Vibration is transmitted through the ground surface to potential receptors. Unlike other mining operations the proposed Mindarie C operations do not involve any blasting. Given the distance of mining operations from sensitive receivers it is considered very unlikely that vibration impacts would be caused to the extent that they would be noticeable to potential receptors either during mining or rehabilitation activities. Therefore vibration is not considered further.

7.2.3.3 Control and management strategies

Design control strategies

The noise assessment undertaken by Sonus has recommended that implementing the following control measures will reduce noise levels to a level that does not exceed the sleep criteria at all dwellings in which the landholder does not have a commercial agreement with MZ.

 locating overburden mounds between the mining operation and dwellings at a minimum of 6 m in height  locating noisy equipment at the greatest practical distance from dwellings  locating noisy equipment at the greatest practical distance from dwellings.

The third residence (A) is located in an area of the strandline that will not be mined due to the grade and resources of mineral sand. If in the future a decision is made to mine in this area MZ would implement the noise attenuation measures at the third location (establishment of a mound with a minimum height of 6 m) to ensure that the night time noise limit will be met.

The proposed layout of the noise control mounds relative to Residence A is indicated in the Sonus report in Appendix C and has been included in the Noise Management and Monitoring Plan in Appendix E.

Operational management strategies

Implementation of a Noise Management and Monitoring Plan that includes:

 shutting off or throttling equipment down whenever it is not in actual use  ensuring that noise reduction devices such as mufflers are fitted and operating effectively

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 ensuring that equipment is maintained or repaired  operating equipment and handling materials so as to minimise impact noise.

MZ will maintain good industry practice in servicing and operating the vehicle and equipment fleet employed during both the construction and operation of the mine. The vehicle fleet will be maintained in accordance with manufacturers’ requirements and will reduce the potential for unnecessary noise generation.

MZ will continue communications and negotiation with landholders directly affected by the Mindarie C operations with a view to mitigate issues.

7.2.3.4 Summary of environmental outcomes measurement criteria

The risk levels, outcomes and measurement criteria are provided in Table 7.5 below.

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Table 7.5 Environmental outcomes, risk levels, control and management strategies and measurement criteria – noise and vibration

Unique Aspect and impact PRL Summary of control and RRL Outcomes Assessment criteria Leading ID management measures indicator criteria MZ_021 Disturbance to H Implementation of a Noise L No adverse public Quarterly total noise levels Weekly noise neighbours due to Management and Monitoring Plan. nuisance impact from in dB measured as 24hr levels in dB (or production of noise Implementation of amenity noise emanating from continuous attended following and vibration compensation agreements the Lease monitoring at sensitive complaints) (associated with receptors (refer to locations measured by vehicles, machinery Mobile nature of the mine will ensure D, E and F Figure 4.1, hand held noise etc.) that any adverse impacts, even for Appendix L) show that level meter taken houses near the mine will be short mining operations do not at sensitive lived. exceed the EPA Noise receptors (refer to Residences subject to more Policy of <52dBA during locations D, E prolonged disturbance will be offered the day and <45dBA during and F Figure 4.1, soundproofing of the same standard night. Appendix L) as provided in the vicinity of Adelaide reach 85% of the airport in addition to the monetary EPA Noise Policy compensation limit Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.2.4 Traffic

The local primary roads will satisfy most transport needs between the respective mining strips and processing facilities within the mining lease area and associated with remaining rehabilitation activities for Mindarie A(2).

MZ are currently in consultation with a transport Contractor to confirm the trucking route from the mine site to Port Adelaide, however it is expected that the transport of HMC associate with mining of Mindarie C will be by the following route (refer to Figure 5.10, Appendix L):

 Loxton – Murray Bridge Rd south to Tailem Bend  Princess Highway  Portrush Road  Hampstead Road  Grand Junction Road  South Road  Port River Expressway  Victoria Road  Coghlan Road (Wharf Entrance)

HMC will be transported using B-double trucks to Port Adelaide carrying 48 tonnes of HMC and requiring 7 to 8 truck movements per day, or 12 standard trucks per day.

MZ are currently investigating the option of transporting HMC to Port Adelaide via the rail network in the future.

7.2.4.1 Applicable legislation or standards

The relevant acts of legislation that govern the construction and use of roads and highways in the State and provides a framework for ongoing management are discussed in detail in Section 2 and include:

 Highways Act, 1926  Local Government Act, 1999.

7.2.4.2 Potential impacts

Traffic related issues that have been identified for the projects are related to two specific elements:

 increased road traffic  increased rail traffic.

Reduced public safety due to road use

It is considered possible that there would be a significant risk of an accident at egress/ingress points to the mine. In the event that an accident occurred, it is considered that this would have a major impact as mine site vehicles and trucks would not be travelling at high speeds. This provides an inherent risk level of extreme.

Accelerated deterioration of local roads due to increased numbers of light vehicles

It is considered unlikely that increased light vehicle traffic generated from MZ vehicles will lead to deterioration of the local road network. If an impact to road condition is experienced it is considered the consequence would be minor in nature. This provides an inherent risk level of low.

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Accelerated deterioration of local roads due to increased numbers of heavy vehicles

It is considered likely that this increase in heavy vehicle traffic will lead to deterioration of the local road network. It is considered the consequence would be minor in nature. This provides an inherent risk level of moderate.

Reduced public safety due to rail use

The cartage of HMC by rail is under consideration and may be incorporated into the project at a later date. On this basis a risk assessment has been undertaken. Due to the limited number of trains (three per week during full operations) it is considered unlikely that increased rail traffic generated from MZ operations will result in reduced public safety. If an impact is experienced it is considered the consequence would be major in nature. This provides an inherent risk level of high.

7.2.4.3 Control and management strategies

Design control strategies

The design control strategies incorporated into the mine plan to assist in traffic management include:

 the installation of traffic control measures e.g. Give Way and/or Stop signs at selected intersections  minor road improvements  Speed restrictions

Operational management strategies

Proposed operational management measures to manage and mitigate potential impacts associated with traffic include:

 Finalisation of an agreement with the District Council of Karoonda East Murray and the Department for Planning, Transport and Infrastructure (DPTI) and discussion with the East Murray Area School regarding traffic management controls and road maintenance requirements.

 Liaison as required with the rail transport provider should MZ decide to transport HMC by rail.

 Discussions with Genesee and Wyoming Australia and DPTI on train movements, frequencies etc.

 Implementation of a Traffic Management and Monitoring Plan that details:  fatigue management requirements  design speed details for roads and areas on site, and  communication of the traffic management requirements in the induction program for the site.

A copy of the Traffic Management and Management Plan is included in Appendix E of this PEPR.

7.2.4.4 Summary of environmental outcomes and measurement criteria

The risk levels, outcomes and measurement criteria are provided in Table 7.6 below.

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Table 7.6 Environmental outcomes, risk levels, control and management strategies and measurement criteria – traffic

Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria MZ_023 Reduced public safety E Liaison with District Council of H No traffic accidents Independent investigations of all Monthly associated with Karoonda East Murray and DPTI involving the public at recorded traffic accidents at inspection of the increased road traffic regarding traffic management mine access points that mine access points indicate that road pavement in remote areas. controls and maintenance. could have been they could not have been condition at mine Implement the Traffic reasonably prevented reasonably prevented access points Management and monitoring by the Lessee. (refer to locations Plan A, B, C, Figure 5.10, Preparation of Traffic Code of Appendix L) by Conduct visual inspection and photomonitoring show that all traffic accidents involving the public at mine access points could have been reasonably prevented MZ_023 Reduced public safety E Liaison with District Council of H No traffic accidents Independent investigations of all Monthly associated with Karoonda East Murray and DPTI involving the public at recorded traffic accidents at inspection of the increased road traffic regarding traffic management mine access points that mine access points indicate that condition of road in remote areas. controls and maintenance. could have been they could not have been traffic signage at Implement the Traffic reasonably prevented reasonably prevented mine access Management and monitoring by the Lessee. points (refer to Plan locations A, B, C, Figure 5.10, Preparation of Traffic Code of Appendix L) Conduct indicates compliance with Australian Standard AS:1742 Manual of Uniform Traffic Control Devices

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Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria MZ_023 Reduced public safety E Liaison with District Council of H No traffic accidents Independent investigations of all Quarterly audit of associated with Karoonda East Murray and DPTI involving the public at recorded traffic accidents at the total number increased road traffic regarding traffic management mine access points that mine access points indicate that of records in remote areas. controls and maintenance. could have been they could not have been indicate that all Implement the Traffic reasonably prevented reasonably prevented employees and Management and monitoring by the Lessee. contractors have Plan been inducted to the Traffic Preparation of Traffic Code of Management Conduct Plan (Appendix E) Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

7.2.4.5 Compliance with other environmental conditions

DMITRE has specified other environmental conditions for which no outcome has been established. The issues and control and management strategies are presented in Table 7.7 below.

Table 7.7 Other environmental conditions and compliance assessment – traffic

Condition Management strategy PEPR Road transport The lessee must prepare a Traffic Code of Conduct for all haulage vehicles associated with the MZ will prepare a Traffic Code of Conduct for Section 7.2.6 Mindarie Mineral Sands project operating within the Mallee district prior to commencement of all haulage vehicles associated with the construction and to the satisfaction of the Minister, requiring these haulage vehicles to comply with Mindarie Mineral Sands Project. the Code Road maintenance The Lessee must enter into a Road Maintenance Agreement with the District Council of Karoonda No haulage road will be constructed between Section 7.2.4 East Murray for the haulage route from mine to the Separation plant site. The agreement must the Mindarie C mine and the Separation include a requirement for a joint inspection every six months, or as agreed by the District Council Plant. of Karoonda East Murray as relevant, following completion of the road upgrade, to determine and assess as to whether the maintenance is required and to stipulate that should maintenance be required and not carried out within one month of inspection, that the District Council of Karoonda East Murray as applicable, will be entitled to carry out such maintenance work at the lessee’s cost.

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Condition Management strategy PEPR Road maintenance The Lessee must enter into a Road Maintenance Agreement with the District Council of Karoonda MZ will enter into a Road Maintenance Section 7.2.6 East Murray prior to the commencement of construction of roads which are likely to be used by Agreement with the District Council of traffic to the project site. The agreement must include: the requirement for a traffic monitoring and Karoonda East Murray prior to reporting process to be developed and implemented at the lessee’s expense, to identify the use of commencement of operations. roads by mine traffic; and mechanisms to calculate contributions for road maintenance commensurate with mine traffic use as identified by traffic monitoring. Loxton-Murray Bridge Road (RN7500) The lessee shall enter into a formal agreement with the Department of Planning, Transport and No diversion of the Karoonda Highway will Section 7.2.4. Infrastructure (DPTI) for road design, pavement design, construction and maintenance works, be required for mining of the Mindarie C technical and operational issues affecting this main road should this road require a temporary strandline. rerouting. A copy of this formal agreement shall be supplied to the Minister and registered against the mining lease.

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7.2.5 Aboriginal and European heritage

7.2.5.1 Context

Aboriginal heritage

The land to be mined is mostly used for farming with extensive modification of landscape by vegetation clearance and its history of agricultural use.

In 2006 an Access Clearance Survey was undertaken by Vivienne Wood of Vivienne Wood Heritage Consultant Pty Ltd. The outcomes of the investigations revealed that on the Mindarie C strand line there are no previously recorded sites on the Register of Aboriginal Site and Objects (maintained by the Department of Aboriginal Affairs and Reconciliation). One area adjacent to the Mindarie C strandline was identified as being of significance by representatives of the Mannum Aboriginal Community Association Incorporated. This area (refer to Figure 4.10, Appendix L) will not be affected by mining operations.

The completion of rehabilitation activities at Mindarie A(2) is on previously disturbed land and therefore will not impact Aboriginal cultural heritage.

heritage

Mining activities are proposed for areas comprising predominantly agricultural land and no heritage items will be disturbed for Mindarie C opeations or completion of rehabilitation activitiesfor Mindarie A(2).

7.2.5.2 Applicable legislation and standards

The relevant legislation that protect the South Australia’s and Australia’s cultural and European heritage and provides a framework for ongoing management include:

 Aboriginal Heritage Act 1988  Native Title (South Australia) Act 1994  Heritage Places Act 1993.

7.2.5.3 Potential impacts

Issues and risk levels associated with Aboriginal and European heritage are related to the establishment and operation of the mine, and specifically the potential for:

 disturbance to Aboriginal sites  disturbance to European heritage sites.

Disturbance to Aboriginal sites (without prior approval)

Given the presence of one identified area on the Mindarie C strandline, if no planning or mitigation measures were in place, the likelihood of disturbing Aboriginal sites (without prior approval) is considered unlikely. The consequence of the disturbance has been considered to be moderate. Thus the inherent environmental risk associated with disturbance to Aboriginal sites is considered to be moderate.

Disturbance to European heritage sites (without prior approval)

No European heritage sites have been identified within or around the proposed project area. The likelihood of disturbing European heritage sites is considered to be unlikely, the

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consequence of this being minor. The inherent environmental risk associated with this aspect of the project is considered to be low.

7.2.5.4 Control and management strategies

Design control strategies

An Access Clearance Survey has been undertaken. In the event that the area of significance cannot be excluded from the mining area further discussions and negotiations will be required with representatives from the Mannum Aboriginal Community Association Incorporated.

Operational management strategies

The MZ site induction package includes responsibilities under the Aboriginal Heritage Act, 1988 and requirements of the Aboriginal heritage agreements that have been carried out and appropriate training for European heritage and its protection.

The area identified as being an area of significance will be visibly marked (e.g., through fencing or flagging) and site personnel will be made aware of it to ensure that no personnel or equipment enter the area.

A procedure has been developed that details the activities to be undertaken in the event that suspected Aboriginal or European sites/relics are discovered during mine operations.

MZ has established an ongoing relationship with the Aboriginal and European stakeholders for the region – details outlining the ongoing requirements will be detailed in the Community Consultation Plan.

A copy of the Community Consultation Plan is included in Appendix E of this PEPR.

7.2.5.5 Summary of environmental outcomes and measurement criteria

The risk levels, outcomes and measurement criteria are provided in Table 7.8 below.

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Table 7.8 Environmental outcomes, risk levels, control and management strategies and measurement criteria – Aboriginal and European heritage

Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria MZ_035 Disturbance to MO Clearance survey undertaken. L No disturbance to Weekly visual inspection and N/A Aboriginal sites of Implementation of a pre- Aboriginal artefacts or photomonitoring records show scientific, clearance survey checklist. sites of significance no disturbance to the existing mythological or other Induction package developed unless prior approval Aboriginal site as indicated on significance and implemented. under the relevant Figure 4.10 (Appendix L) in legislation has been comparison to baseline Visual identification of significant obtained. photomonitoring area to ensure it is avoided. MZ_035 Disturbance to MO Clearance survey undertaken. L No disturbance to Records show that if an N/A Aboriginal sites of Implementation of a pre- Aboriginal artefacts or Aboriginal site or artefact is scientific, clearance survey checklist. sites of significance discovered that work ceases mythological or other Induction package developed unless prior approval and appropriate procedures are significance and implemented. under the relevant followed approval sought under legislation has been the Aboriginal Heritage Act 1988 Visual identification of significant obtained. area to ensure it is avoided. MZ_036 Disturbance to L Clearance survey undertaken L No disturbance to There are no sites of European N/A European historic and European artefacts or heritage on the Mindarie C lease cultural heritage sites sites of significance without prior unless prior approval approval. under the relevant legislation has been obtained. Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.2.6 Community consultation and landuse management

7.2.6.1 Context

Effective community consultation and communication during the life of the Mindarie Mineral Sands Project is required to ensure that all issues and concerns are managed effectively and members of the community are informed and up to date with the operations of the project.

As with most mining operations, the activities associated with the Mindarie C strandline and completion of remediation activities for Mindarie A(2) can have a range of land use management issues, including:

 safety as a result of unauthorised access  damage (including that caused by fire) to adjacent public or private property and infrastructure (roads and railway lines, power transmission lines)  stakeholder communication  complaints management  Increased pressure on the local community and services.

7.2.6.2 Applicable legislation and standards

The legislation applicable to community consultation including consultation on the PEPR include the following:

 Mining Act 1971  Mining Regulations 2011.  National Parks and Wildlife Act 1972  Environment Protection Act 1993  Country Fires Act 1989.

7.2.6.3 Potential impacts

The potential impact associated with community consultation and stakeholders during operations are related to reduced community support, misunderstanding and safety.

Community consultation

Without any consideration of management strategies it is considered likely that adverse community reaction will have an impact on the project. The level of impact is considered to be moderate and results in a high level of risk.

Public injury or death due to unauthorised entry to the site

It is considered possible that injury to the public could occur if there were unauthorised entry to the mining operations. In the event that an impact occurred it is considered that this would have a major effect. The resulting inherent environmental risk is considered to be extreme.

Damage to infrastructure and private property

It is considered possible that there would be significant risk to infrastructure and private property as a result of mining operations beyond that which has been agreed upon and appropriate compensation negotiated. In the event that an impact was experienced, it is considered that this would have a moderate effect with a resulting inherent environmental risk considered to be high.

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Accommodation Camp

It is considered almost certain that the construction and utilisation of the accommodation camp for mining operations would cause an increase in population size within Wanbi and thus impact on the local community. The consequence of this increase in population size is considered to be major. The resulting inherent risk is considered to be extreme.

Additionally, the construction and operation of the accommodation camp will put pressure on the local services (e.g. electricity, water, sewerage etc.). Without the implementation of management strategies it is considered possible that pressure on local services will occur. The consequence is considered to be minor thus the inherent risk level is moderate.

Onsite fires

It is considered possible that mining operations would cause fires that would impact adjacent land uses. In the event that an impact was experienced, it is considered that this would have a moderate effect. The resulting inherent environmental risk is considered to be high.

7.2.6.4 Control and management strategies

Implementation of a Community Consultation Plan that includes:

 processes for establishing and maintaining good relationships with community stakeholders  incident and complaint management procedures.  ensure that there are procedures in place to minimise impacts on public property and infrastructure  continuing the community consultative committee  developing and implementing a communication program  developing a complaints response protocols.

MZ also aims to obtain stakeholder input into planning and operational issues including traffic management, employment opportunities, environmental management and rehabilitation.

A copy of the Land Use Management and Monitoring Plan and Community Consultation Plan are included in Appendices E and I (respectively) of this PEPR.

7.2.6.5 Summary of environmental outcomes and measurement control

The risk levels, outcomes and measurement criteria are provided in Table 7.9 below.

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Table 7.9 Environmental outcomes, risk levels, control and management strategies and measurement criteria – community consultation and landuse management

Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading indicator ID management strategies criteria MZ_037 Fires originating H Implementation of an MZ and MO No unauthorised Records show that Monthly housekeeping onsite or wildfires from Mining Contractor’s operational damage (including damage (including inspections of lease area outside put pressure procedures. caused by fire) to caused by fire) to by visual observations on local CFS and adjacent public or adjacent public or show all extraneous emergency services. private property and private property and flammable/combustible infrastructure infrastructure was materials stored in managed in compliance accordance with AS with landowner 1940-2004: The Storage agreements and Handling of Flammable and Combustible Liquids MZ_038 Unauthorised access E Implement inductions for all site H No public injuries and or Records show that Monthly inspections of to site by members of personnel outlining the deaths resulting from independent third party conditions of lease the public potentially requirement to report any unauthorised entry to the review was sought as boundary gates, fences leading to public injury trespassing. site that could be required to assess that and site infrastructure by or death reasonably prevented public injuries and or visual observation deaths resulting from indicate no interference unauthorised entry to the or damage which could site (by damage to lead to public injuries gates, fences and site and or deaths that could infrastructure) could have been reasonably have been reasonably prevented as a result of prevented unauthorised entry to the site Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.2.6.6 Compliance with other environmental conditions

DMITRE has specified other lease conditions for which no outcomes have been established. The issues and control and management strategies are presented in Table 7.10 below.

Table 7.10 Other environmental conditions and compliance assessment – community consultation and landuse management

Condition Management strategy PEPR Community consultation Prior to commencement and construction and mining operations the Lessee must prepare and A Community Consultation Plan has been Section 7.2.6 submit a Community Consultation Plan, outlining the proposed mechanisms for on-going included in this PEPR. Appendix I consultation with local residents and stakeholders Consultation in preparing the PEPR In preparing the PEPR submitted under Section 70B of the Mining Act 1971, the Lessee must MZ will consult with affected infrastructure Section 7.2.6 consult with affected infrastructure and services authorities and landholders and make and service authorities and landholders and arrangements satisfactory to those authorities for the protection or relocation of those services where necessary make arrangements satisfactory to those authorities for protection or relocation of those services and infrastructures. Public complaints The lessee with be responsible for recording and addressing in manner and form (to the MZ has established a system to address Section 7.2.6 satisfaction of the Director of Mines) ant complaints received from the public complaints from the public to the satisfaction of the Director of Mines. Landholder liaison The lessee must agree with a written protocol to ensure that the occupier of the land is fully MZ will develop a written protocol that Section 7.2.6 advised of their program of activities, particularly in regard to the impact of operations on the land ensures the occupier of the land is fully and rehabilitation progress. advised of the program of activities and the impact of operations on the land and rehabilitation progress.

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7.2.7 Visual amenity and landscaping

7.2.7.1 Context

The mining operations for Mindarie C will involve the initial stripping of topsoil and subsoil and stockpiling this material on either side of the open pit along the mining path.

The overburden (material underlying soils and overlying ore) will be placed in two stockpiles adjacent to the open pit. On this basis the major visual components of the mining operations will be the scarpers, bulldozers or other earthmoving equipment carrying out soil stockpiling, overburden moving and soil replacement and the stockpiles which vary in height from 3-4 m for the topsoil to 10 m for subsoil and 15 m for overburden. The overburden stockpiles will be limited in height to no more than 15 m.

The highest visual sensitivity will be dependent on the direction of mining. Mining activities will be visible from some of the regional access roads from time to time, however the presence of well-established native vegetation along many of the road reserves (particularly the main Loxton to Murray Bridge Road) should ameliorate the negative visual impact.

At night operations will continue at the mine and PCP. Lighting will be maintained to meet safe working conditions. Lighting at the active mining pit will be on elevated lighting towers directed inwards towards the activities. These will be shielded in part by the overburden mounds on each side of the pit but some light spill will occur. Lights will be visible from the main highway and Knights Well Road for a distance of approximately 2 km on each road whilst mining occurs within those areas.

The operations will use the existing infrastructure and buildings at the former MSP site. It is not proposed to establish any new buildings or utilise the MSP itself. Minor works will be undertaken to establish a HMC stockpile area and associated drainage. In the event that MZ need to establish additional buildings or structures they will be designed and constructed to ensure a neat and orderly appearnce and and far as practicable blend in with the surrounding landscape.

Rehabilitation will be progressive and completed following mining of the strandline. In general taking into consideration such factors as swell and aeration, the post mining landform within the mine footprint and mining lease would be contoured in consultation with relevant landowner regarding the final profile. Where possible the final rehabilitation profile would be returned flatter than the original undisturbed profile suitable for broad-acre farming practices.

Given the majority of the land is used for agricultural purposes the rehabilitated mine site will be planted with dryland cropping species as agreed upon with the relevant landowners. Some native vegetation will be affected through mining activities and these areas will be planted with locally indigenous species.

MZ has entered into compensation agreements with stakeholders whose amenity is considered likely to be negatively affected through mining operations (this includes visual amenity). Due to this, the assessment criteria developed for visual amenity do not include consideration of those stakeholders who have amenity compensation agreements in place.

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7.2.7.2 Applicable legislation and standards

The relevant legislation that requires that visual amenity impacts are assessed include the following:

 Mining Act 1971  Wilderness Protection Act 1992.

7.2.7.3 Potential impacts

The establishment and operation of the mine for Mindarie C will reduce the visual amenity in the project area both locally and regionally during operation and rehabilitation. Given the remoteness of the site it is considered that impacts will be transient as the mining operations proceed along the strand line.

For Mindarie A(2) there will be a positive impact as ongoing rehabilitation activities will return the land for agricultural use in accordance with an agreement between the landowners and MZ. In addition the remaining stockpiles will be used as backfill and thereby further reduce the visual impact. Light spill could result in a reduction of visual amenity at night during mining operations as operations will occur 24 hours per day. As rehabilitation activities for Mindarie A(2) will be conducted during the day only there are no light spill issues.

7.2.7.4 Control and management strategies

Design control strategies

The final landform design will be compatible with the existing environment. Specific landform design criteria is detailed in the Mine Closure and Rehabilitation Plan (Section 8).

Other design control measures incorporated into the project include:

 stockpiles for the Mindarie C strandline will be no more than 15 m in height  inclusion of appropriately coloured building materials and the retention and creation of vegetation buffers  blending of final mounds and voids to broadly mimic the natural environment of dunes and swales.  Mining sequence limits timeframe of impacts to residents.

Operational management strategies

Proposed operational management strategies to manage and mitigate potential impacts associated with land use and visual amenity include

 Implementation of a Mine Closure and Rehabilitation Plan that includes:  final rehabilitation design criteria  progressive infill and rehabilitation of pit voids  return of subsoil, topsoil and vegetative matter during rehabilitation activities.  Night time lighting to be restricted to levels required to provide safe working conditions.  Placement of lights to reduce light spill in directions not required for mining activities.

A copy of the Mine Closure and Rehabilitation Plan is included in Section 8 of this PEPR.

7.2.7.5 Compliance with other environmental conditions

DMITRE has specified other environmental conditions for which no outcome has been established. The issues and control and management strategies are presented in Table 7.11 below.

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Table 7.11 Other environmental conditions and compliance assessment – visual amenity and landscaping

Condition Management strategy PEPR Visual amenity and landscaping MZ is utilising existing structures and buildings that were established as Section 7.2.7 Structures and buildings must be designed and constructed as to part of the previous mining operations. Any new buildings will be present a neat and orderly appearance and to blend as far as designed and constructed to present a neat and orderly appearance practicable with the surrounding landscape and blend as far as practicable with the surrounding landscape.

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7.2.8 Air quality

7.2.8.1 Context

The Mindarie Mineral Sands Project is located in an area that is dominated by cropping activities which can generate dust during cultivation and reaping activities.

Construction and mining operations at the Mindarie Mineral Sands Project have the potential to impact air quality and also result in emissions of combustion products. In addition innapropriate waste management practices could generate odours.

7.2.8.2 Applicable legislation and standards

The relevant legislation that regulates air quality and its impacts include the:

 Environment Protection Act 1993  Mining Act 1971  Natural Resources Management Act 2004  Environment Protection (Air Quality) Policy 1994.

7.2.8.3 Potential impacts

Dust emission

During construction and operation and rehabilitation it is almost certain that at most times of the year there will be an increase in dust generation and an impact on air quality as a result of:

 soil excavation and handling  emission from cleared/disturbed land surfaces  overburden stockpiles (topsoil, sub-soil and overburden)  on-site and local road traffic movement.

The emission of dust has the potential to result in:

 impacts to human health  deposition of dust on native vegetation (this is discussed in Section 7.2)  impact to safety of road users.

It is considered likely that the mining operations and rehabilitation activities would result in the generation of dust which could discharge onto the Loxton to Murray Bridge Road and result in impacts to amenity and in some cases lead to accidents due to poor visibility. The consequences for the public in terms of accidents could be major. There is also potential for dust emissions to impact susceptible persons (elderly and those with respiratory problems). Both of these could result in an extreme environmental risk level.

It should also be noted that agricultural activities will generate dust and particulate emissions during seasonal ploughing, cultivation and crop reaping.

Emission of fuel combustion products

Emissions of greenhouse gases and combustion products (carbon monoxide, sulphur dioxide and nitrogen dioxide) and particulate matter from fuel combustion associated with earthmoving plant and equipment, diesel generators and vehicles will occur. However, it is unlikely that there would be significant regional impacts and the consequence would be

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insignificant. The inherent risk associated with combustion emission impacts has been calculated as low.

Odour

Incorrect solid waste management could generate malodorous conditions which would reduce amenity. It is possible that a loss of amenity could occur on-site however given the localised nature, the consequence of this would be insignificant. The inherent (localised) environmental risk level of this impact is therefore low.

7.2.8.4 Control and management strategies

Design control strategies

MZ has entered into amenity compensation agreements with those stakeholders likely to be affected as a result of the proposed mining operations at Mindarie C and ongoing rehabilitation of Mindarie A(2).

Fuel combustion facilities will be designed in accordance with relevant Australian Standards.

The ore will be transported from the mine void to the PCP via a slurry pipeline. Following processing the HMC will be loaded into containers and transported to the Port Adelaide in either standard or B-Double trucks.

Commercial and industrial waste materials generated on site will be stored in accordance with relevant standards, guidelines, codes of practice and legislation and collected by licensed waste transporters and disposed appropriately at an EPA licensed facility.

Operational management strategies

Dust generation

Additional measures to avoid, mitigate and manage the risks associated with dust generation have been developed and are proposed to be implemented during the various stages of the project. These include:

 Implementation of an Air Quality Management and Monitoring Plan that includes:  requirements to stabilise soil stockpiles (top soil and sub soil) and rehabilitated areas  requirements to stabilise other identified areas (e.g. vehicle parking areas etc.)  details of the stabilisation techniques i.e. with polymer or bitumen  requirements to construct temporary access roads using imported calcrete  use of water carts during operations to suppress dust from access roads and work/laydown areas  stabilisation/covering of soil/overburden stockpiles with polymers, benign clay material or other suitable material  installation (in areas identified as specific dust nuisance sites) of wind breaks using shade cloth fences.

 Implementation of a Mine Closure and Rehabilitation Plan that includes requirements for progressive rehabilitation for disturbed areas.

 Implementation of a Traffic Management and Monitoring Plan that:  requires the HMC to be placed in containers before loading onto trucks  restriction of vehicle speeds in the Mining Lease and un-sealed roads.

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Combustion emissions and greenhouse gases

Earthmoving plant and equipment, generators and machinery and vehicles will meet exhaust standards and comply with relevant legislation and will be fitted with appropriate emission control equipment and regularly maintained and serviced.

Odour

Proposed operational management strategies to manage and mitigate potential impacts of odour from commercial and industrial waste include:

 Implementation of a Commercial and Industrial Waste Management and Monitoring Plan that includes:  maximising recycling of general wastes generated during construction and operational activities  storage of general waste materials generated onsite in accordance with relevant standards, guidelines, codes of practice and legislation  wastes generated on site to be collected by licensed waste transporters and disposed appropriately at an EPA licensed facility.

7.2.8.5 Summary of environmental outcomes and measurement criteria

The risk level estimated after the application of the management and mitigation measures, predicted outcomes and measurement assessment criteria are provided in Table 7.12 below.

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Table 7.12 Environmental outcomes, risk levels, control and management strategies and measurement criteria – air quality

Unique Aspect and impact PRL Summary of control and RRL Outcomes Assessment criteria Leading indicator ID management measures criteria MZ_018 Dust generated from E Implementation of Air Quality H No adverse public Monthly review of PM10 Daily review of site impacts visual Management and Monitoring health and/or nuisance measurements by mobile real PM10 amenity and safety of Plan (including monitoring of the impacts to local time sampler (such as T-BAM) measurements by the public in close Bureau of Meteorology website residents from air located at sensitive receptors mobile real time proximity to mining to identify high wind periods). emissions and dust (locations 3,4,5 and control sampler (such as operations. generated by mining sites locations 5,6 and 7 T-BAM) located at operations Figure 4.2, Appendix L) sensitive receptors demonstrates mining (locations 3,4,5 and operations compliance with control sites NEPM 1998 locations 5,6 and 7 <50 µg/m3/year, with <5 days Figure 4.2, exceedance/year Appendix L) demonstrates mining operations compliance with NEPM 1998 <50 µg/m3/year, with <5 days exceedance/year MZ_018 Dust generated from E Implementation of Air Quality H No adverse public All community complaints from N/A site impacts visual Management and Monitoring health and/or nuisance the public regarding dust amenity and safety of Plan (including monitoring of the impacts to local arising from the lease area the public in close Bureau of Meteorology website residents from air addressed within 48 hours and proximity to mining to identify high wind periods). emissions and dust assessed against the NEPM operations. generated by mining criteria operations MZ_019 Loss of amenity L Implementation of the L No adverse public Annual review of storage and Monthly review of (odour) due to Commercial and Industrial health and/or nuisance disposal records indicate waste inspection incorrect storage, Waste Management and impacts to local putrescible waste collected records indicate collection and disposal Monitoring Plan residents from air weekly by Council and less than 5 of commercial and emissions and dust transported off the lease areas occurrences of industrial waste. generated by mining in accordance with the Waste incorrectly disposed operations Management Plan of waste on lease (Appendix L) area in accordance with the Waste Management Plan (Appendix L)

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Unique Aspect and impact PRL Summary of control and RRL Outcomes Assessment criteria Leading indicator ID management measures criteria MZ_020 Increase in L Implementation of Air Quality L No adverse public Records demonstrate that all N/A greenhouse gas Management and Monitoring health and/or nuisance operational vehicles and emissions Plan impacts to local equipment used on lease Potential adverse Fuel combustion engines meet residents from air areas have appropriate effects on local / Australian Design emission emissions and dust emission control devices regional air quality standards. generated by mining (according to vehicle operations specifications) prior to commencement of use and at scheduled maintenance times Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.2.9 Radiation and asbestiform materials

7.2.9.1 Context

All naturally occurring soils, rocks and minerals contain small amounts of the radioactive materials (radionuclides) thorium and uranium.

The orebody contains low levels of naturally occurring radionuclides of the thorium and uranium decay chains and is not considered radioactive under the current Australian definitions. Tailings (including slimes) are likewise not radioactive by definition, and will be managed as described previously in this PEPR (refer Section 4.5).

Low level radioactive material from the previous processing of mineral sands from the Mindarie A(2) strandline is currently stored in the waste pond located at the former MSP plant site. The EPA has advised that this material is able to be placed in the initial portion of the Mindarie C void.

To date no asbestiform minerals have been identified during the drilling at the Mindarie C deposits therefore it is considered that there are no credible impacts.

7.2.9.2 Applicable legislation and standards

The relevant acts of legislation that governs radiation and asbestiform materials in the State and provides a framework for ongoing management are discussed in detail in Section 3 and include:

 Radiation Protection and Control Act 1982  Occupational Health, Safety and Welfare Act 1986.

7.2.9.3 Potential impacts

Potential impacts associated with radiation materials have been identified as being:

 prolonged radiation exposure for workers and public exceeding health limits.

Prolonged radiation exposure exceeding health limits to workers

Based on background radiation monitoring results, it is considered that prolonged exposure (leading to an exceedance of health limits) is unlikely. In the event that an exceedance of health limits is experienced the consequence is considered to be minor. As a result, the inherent environmental risk level is low.

7.2.9.4 Control and management strategies

Design control strategies

In order to address the issues associated with radiation, MZ developed a Radiation Management Plan (RMP) that was provided to the Radiation Protection Branch of the EPA. The EPA will transfer the licence previously held by AZ to MZ.

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Operational management measures

During operations, MZ will implement the Radiation Management Plan which includes conducting baseline radiation monitoring during project development and operations.

7.2.9.5 Summary of environmental outcomes and measurement criteria

The risk levels, outcomes and measurement criteria are provided in Table 7.13 below.

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Table 7.13 Environmental outcomes, risk levels, control and management strategies and measurement criteria – radiation and asbestiform materials

Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies Indicator Criteria Prolonged exposure L Tailings (including slime) are not L No risk to human Monitoring at completion of N/A to radiation exceeding radioactive by definition and will health from radiation rehabilitation demonstrates no health limits for be buried in the pit adverse public health and/or workers and members Site inductions will include nuisance impacts to local residents of the public. appropriate radiation safety and from air emissions and dust awareness training. generated by mining operations in compliance with EPA approved Removal and burial of low level Radiation Management Plan radioactive material from ponds in accordance with RMP MZ_022 Prolonged exposure L Tailings (including slime) are not L No risk to human Records demonstrate that at N/A to radiation exceeding radioactive by definition and will health from radiation completion of rehabilitation removal health limits for be buried in the pit and burial of low level radioactive workers and members Site inductions will include material from ponds occurs in of the public. appropriate radiation safety and accordance with the EPA approved awareness training. Radiation Waste Management Plan such that no adverse public health Removal and burial of low level and/or nuisance impacts to local radioactive material from ponds residents from air emissions and dust in accordance with RMP generated by mining operations Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.2.10 Surface water and stormwater

7.2.10.1 Context

The project area is situated in the Murray Basin, which is bounded to the west by the Mount Lofty and southern Flinders Ranges and to the north by the Darling Basin. To the south-east, the Lachlan Fold Belt and the Victorian Highlands form the boundaries for the region.

The regional land surface consists of gently undulating plains with broad flats. This relief reflects the old strand-plain surface, which forms an accurate pattern of ridges and swales with the land surface varying from approximately 50 m Australian Height Datum (AHD) to a maximum of approximately 80 m AHD. Most of the surface lies below 65 m AHD.

Surface water drainage is practically non-existent on the Mindarie C and Mindarie A(2) strandlines, due to the generally low relief, low rainfall and highly permeable soils.

7.2.10.2 Applicable legislation and standards

The relevant acts of legislation that surface water use and management within the project area are discussed in detail in Section 3 and include:

 Natural Resources Management Act 2004.  Environment Protection Act 1993.

7.2.10.3 Potential impacts

Reduced water quality and quantity

An impact on surface water quality from the inappropriate storage and disposal of commercial and industrial waste is considered to be unlikely but would cause a minor consequence. Thus the inherent risk level is low.

However, an impact on surface water quality due to contamination from the storage, transport and distribution of petroleum hydrocarbon or chemicals is considered possible causing a minor consequence. Thus the inherent risk level is moderate.

Impacts to offsite surface water quality and quantity associated with release of sediment laden water from mining operations is considered to be likely, however, the consequence would be minor. Thus the inherent risk level is high.

Stormwater erosion of soil stockpiles with a resultant transport off-site is possible causing a minor consequence. Thus the inherent risk level is moderate.

7.2.10.4 Control and management strategies

Design control strategies

The drainage system design will consider collection and storage of surface water to reduce impacts to quality and quantity.

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Operational management strategies

The proposed operational management strategies to manage and mitigate potential impacts to surface water include:

 Implementation of a site Water Management and Monitoring Plan that has the:  requirement for regular site drainage system inspections, and  provides details of maintenance requirements for the site drainage system.

A copy of the site Water Management and Monitoring Plan is included in Appendix E of this PEPR.

7.2.10.5 Summary of environmental outcomes measurement data

The risk levels, outcomes and measurement criteria are provided in Table 7.14 below.

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Table 7.14 Environmental outcomes, risk levels, control and management strategies and measurement criteria – surface water

Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria Adverse impact on L Appropriate storage and L No water is contaminated Quarterly audits and Fortnightly visual surface water quality disposal of commercial and as a result of mining inspection records inspections from inappropriate industrial waste. operations, leaves the demonstrate that waste is indicate the storage and disposal Implement the Commercial and Lease area or results in stored and correctly disposed correct storage, of commercial and Industrial Waste Management loss of or contamination in accordance with the transport and industrial waste and Monitoring Plan of soil on or off the lease. Commercial and Industrial distribution of No adverse impact on the Waste Management and petroleum quality and quantity of Monitoring Plan (Appendix L), hydrocarbon or ground and or surface and no evidence of waste chemicals in water caused by mining disposed of on-site accordance with operations to existing EPA Bunding and users and water Spill Management dependent ecosystems Guidelines 2007 MZ_027 Adverse impact on L Appropriate storage and L No water is contaminated Records demonstrate that all N/A surface water quality disposal of commercial and as a result of mining spills within the lease areas from inappropriate industrial waste. operations, leaves the are recorded, reported to the storage and disposal Implement the Commercial and Lease area or results in EPA and DMITRE (as of commercial and Industrial Waste Management loss of or contamination required) and clean up actions industrial waste and Monitoring Plan of soil on or off the lease. completed, in accordance EPA No adverse impact on the / DMITRE agreed procedures quality and quantity of to ensure that no ground and or surface contaminated water leaves the water caused by mining lease area operations to existing users and water dependent ecosystems

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Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria MZ_029 Impacts offsite H Drainage system design to L No water is contaminated Monthly photographic Weekly visual associated with consider collection and storage as a result of mining inspections and written reports inspections of the release of sediment of surface water operations, leaves the of the effectiveness of silt traps effectiveness of laden water Implementation of the Water Lease area or results in and surface drainage systems silt traps and Management and monitoring loss of or contamination to demonstrate systems are surface drainage Plan of soil on or off the lease. operating in accordance with systems to No adverse impact on the the design specifications ensure no loss of quality and quantity of containment. ground and or surface Inspection of water caused by mining drainage operations to existing containment users and water system after rain dependent ecosystems events that generate runoff confirms no loss of containment Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.2.11 Groundwater

7.2.11.1 Context

The project area is located in the Mallee Region of the Murray Basin, where there are five main hydrogeological units (Barnett and Yan, 2000). Regional groundwater levels, direction of flow and salinity is towards the River Murray and varies from north to west in the general area. In the area of the Mindarie Mineral Sands Project typical groundwater movement is between 0.1 and 0.2 m/yr (S. Barnett pers. comm. in Parsons Brinckerhoff 2006)

Various types of waste will be generated as a result of construction and operation of the project, including, construction wastes, commercial and industrial wastes, process and hazardous wastes. Mismanagement of waste could lead to contamination of groundwater.

Processing wastes that will be generated during mining operations will include clay and sand tailings from the PCP.

Fuel and chemical will be stored on site and refuelling of pumps and earthmoving equipment will also be required.

The processing operation will require the extraction and use of groundwater.

7.2.11.2 Applicable legislation and standards

The following acts are relevant for ongoing management of groundwater resources include:

 Mining Act 1971  Natural Resources Management Act 2004  Environment Protection Act 1993  Dangerous Substance Act 1979.

7.2.11.3 Potential impacts

The availability of groundwater resources (quantity) to existing users could be impacted by extraction of groundwater for use in the mining and processing operations.

The potential impacts to groundwater associated with the project are:

 a reduction in quantity of water for other groundwater users due to development and extraction from the water supply bore field  a reduction in water quality due to contamination from mining and processing operations including the storage of fuels and chemicals.

In addition groundwater quality could be impacted by mining and processing by infiltration of contaminants to soil and subsequent seepage to groundwater due to the storage of:

 process wastes  storage of hydrocarbons and chemicals  storage of commercial and industrial waste material  refuelling activities.

Reduced groundwater availability/quantity for existing users

Process water and bore water will be required on the Mindarie C operations to enable the ore to be slurried for pumping to the PCP.

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Water for the operation of the slurry unit will be sourced from current water bores located on the Mindarie A(2) strandline for which MZ has an authorisation to extract (refer to Section 5 for further details) and from the recycling of process water.

Water is also required for ongoing rehabilitation activities for Mindarie A(2) primarily for dust suppression.

The current authorisation permits the extraction of (on average) 4,292 ML per annum (and a maximum of 6,000 ML for use on the Mindarie C mining lease. No additional water (above the current allocation) is required for the Mindarie C operations. Monitoring of the groundwater bores will continue as discussed in Section 5.

A review of the groundwater monitoring results indicates that the drawdown effects have been less than initially modelled (refer to Section 5.9). Therefore it is considered unlikely that groundwater extraction will have an impact on existing users in terms of quantity. The consequence of the impact is considered to be moderate and the inherent environmental risk is assessed as being moderate.

Adverse effect on groundwater quality

Impact from mining and processing operations

It is unlikely that mining operations will have an adverse effect on groundwater quality. The consequence of the impact is considered to be minor resulting in a low environmental risk level.

This has been confirmed by the monitoring of uranium and thorium associated with Mindarie A(2) (refer to Section 5.9).

There is potential for impacts to groundwater quality to occur through leaks and spills associated with the processing of material (e.g. transport of slurry via pipelines to the PCP). The potential for these spills and leaks to occur is considered likely, however, the consequence to groundwater would be minor providing a high inherent risk value.

Impact from storage of hydrocarbons and chemicals

It is considered unlikely that spillage of hydrocarbons or chemicals could result in seepage and have an adverse effect on groundwater quality. The consequence of the impact is considered to be moderate with a resultant moderate environmental risk level.

Impact from commercial and industrial waste disposal

It is considered unlikely that the storage of commercial and industrial waste will result in impacts to groundwater. The consequence would be minor, resulting in a low inherent environmental risk.

7.2.11.4 Control and management strategies

Design control strategies

Hydrocarbon and hazardous substances

All hydrocarbon and hazardous substance storage areas will be designed and constructed in accordance with EPA Bunding Guidelines and relevant Australian Standards.

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Commercial and industrial waste

Waste materials generated onsite will be stored in accordance with relevant standards, guidelines, codes of practice and legislation and collected by licensed waste transporters and disposed of appropriately at an EPA licensed facility.

Mine operations

Mining operations have been designed to limit the potential for leaks and spills which could lead to groundwater contamination.

Operational management strategies

Groundwater use

A Water Management and Monitoring Plan will be implemented that includes:

 identification of key water use requirements on the Mindarie C strandline  continued use of existing groundwater bores for the site water supply  re-use of tailings bleed water and collected surface water run-off for process water recycling, and  monitoring for key indicator parameters (pH, total dissolved solids, conductivity, uranium, thorium, total petroleum hydrocarbons.

A copy of the site Water Management and Monitoring Plan is included in Appendix E of this PEPR.

Hydrocarbon and chemical use

Proposed operational management strategies to manage and mitigate potential impacts of hydrocarbon and chemical spills include:

 Requirement for the management of an up to date chemical manifest on site  Requirements for ongoing inspection and maintenance for hydrocarbon and chemical storage areas  Maintenance of hydrocarbon spill kits on site (including details of their location).  Inclusion of hydrocarbon spill kit locations within the Employee Induction package.  Implementation of Emergency Response Procedures that include response requirements for emergency scenarios including emergency contact lists, emergency equipment details and site containment requirements.

A copy of the Water Management and Monitoring Plan is included in Appendix E of this PEPR.

Commercial and industrial waste

Proposed operational management strategies to manage and mitigate potential impacts of solid waste include:

 Implementation of a Commercial and Industrial Waste Management and Monitoring Plan that includes:  maximising recycling of general wastes generated during construction and operational activities  storage of general waste materials generated onsite in accordance with relevant standards, guidelines, codes of practice and legislation

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 waste generated on site to be collected by licensed waste transporters and disposed of at EPA licensed facility.

The Commercial and Industrial Waste Management and Monitoring Plan is included in Appendix E of this PEPR.

7.2.11.5 Summary of environmental outcomes and measurement criteria

The risk levels, predicted outcomes and measurement criteria are provided in Table 7.15 below.

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Table 7.15 Environmental outcomes, risk levels, control and management strategies and measurement criteria – groundwater

Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria MZ_030 Reduction in MO Installation of monitoring bores L No adverse impact to Annual records indicate that Quarterly review groundwater to allow pumping tests to the quality and quantity annual groundwater extraction of extraction availability for existing determine aquifer of ground and/or rates of production wells records show that users due to reduction characteristics. surface water caused (measured by flow meter) are in water extraction is in groundwater levels Implementation of a Site Water by mining operations to accordance with approved in accordance Management and Monitoring existing users and Water Allocation Plan (average with the Plan. water dependent 42GL over 10 years and not Authorisation to ecosystems. exceeding 6GL per water use Take Water year) Adverse effects on MO Implement the Water L No adverse impact to Records demonstrate that all N/A ground water quality Management and Monitoring the quality and quantity spills within the lease areas are due to contamination Plan of ground and/or recorded, reported to the EPA from the storage, surface water caused and DMITRE (as required) and transport and by mining operations to clean up actions completed, in distribution of existing users and accordance EPA / DMITRE petroleum water dependent agreed procedures to ensure hydrocarbon or ecosystems. that no contaminated water chemicals. leaves the lease area MZ_031 Adverse effects on MO Hydrocarbon and chemical L No adverse impact to Fortnightly visual inspections N/A ground water quality storage areas designed in the quality and quantity indicate the correct storage, due to contamination accordance with EPA and of ground and/or transport and distribution of from the storage, Australian Standards. surface water caused petroleum hydrocarbon or transport and Development and implement the by mining operations to chemicals in accordance with distribution of Water Management and existing users and EPA Bunding and Spill petroleum Monitoring Plan water dependent Management Guidelines 2007 hydrocarbon or ecosystems. chemicals.

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Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria Adverse effects on MO Implement the Water L No adverse impact to Annual groundwater quality Monthly and six ground water quality Management and Monitoring the quality and quantity measurements (for EC, pH, monthly due to contamination Plan of ground and/or uranium, thorium, TDS) from groundwater from the storage, surface water caused each existing monitoring well, quality transport and by mining operations to landholder wells and production measurements distribution of existing users and wells (refer Figure 5.4, (for EC, pH, petroleum water dependent Appendix L) do not exceed uranium, thorium, hydrocarbon or ecosystems. existing baseline conditions by TDS) from each chemicals. two standard deviations existing monitoring wells, landholder wells and production wells (refer Figure 5.4, Appendix L) do not exceed existing baseline conditions by two standard deviations Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.2.12 Topsoil and subsoil

7.2.12.1 Context

The soils of the area are generally well-draining sands to loamy sands with a low water- holding capacity, and are typically alkaline exhibiting increasing pH with depth. The soils are further characterised by low organic matter contents, low fertility and low cation exchange capacity. In general, these soils may be deficient in phosphorous, nitrogen, copper and zinc. The light sandy surface soils of the area are susceptible to wind erosion, particularly after tillage.

Construction and operation of the Mindarie C strandline will involve:

 soil excavation and handling – Mindarie C and A(2)  the creation of cleared/disturbed land surfaces – mailnly Mindarie C  establishment of overburden stockpiles (topsoil, subsoil and overburden) – Mindarie C  relocation of overburden stockpiles during rehabilitation – Mindarie C and A(2)  establishing slurry pipeline to transport material to and from the PCP – Mindarie C  storage of fuels – Mindarie C and A(2)  refuelling of plant and equipment – Mindarie C and A(2)  storage of waste products – Mindarie C and A(2).

7.2.12.2 Applicable legislation and standards

The following acts are relevant for ongoing management of soil resources include:

 Mining Act 1971  Environment Protection Act 1993  Dangerous Substance Act 1979.

7.2.12.3 Potential impacts

The mining and processing activities and rehabilitation activities could have an impact on soil quantity and quality.

Soil quantity and quality

Leakages and spills associated with operation of the slurry pipeline is considered likely without the implementation of management strategies. The consequence of this on soil quality would be moderate thus providing a high inherent risk level.

Adverse effects on soil quality and quantity due to the storage, transport and distribution of petroleum hydrocarbon or hazardous chemicals is considered to be possible, however, the consequence would be minor providing a moderate inherent risk.

Adverse effects to soil quality and quantity due to the inappropriate storage of commercial and industrial wastes and hazardous substances is considered to be unlikely causing a minor consequence thus a low inherent risk level is associated with this risk.

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7.2.12.4 Control and management strategies

Design control strategies

Design control strategies include:

 use of reinforced/strengthened material and pressure/flow sensors for the pipeline (refer to Section 5.4 which outlines improved mining methods)  bunding of fuel storage tanks in accordance with EPA Guidelines and Australian Standards.

Operational management strategies

The operational management strategies that will be implemented to minimise the impacts include:

 implementation of the Commercial and Industrial Waste Management and Monitoring Plan (refer to Appendix E)  implementation of the Topsoil and Subsoil Management and Monitoring Plan (refer to Appendix E)  operational procedures and emergency response procedures to include process for response in the event of a pipe split and loss of slurry, and loss of fuels from storage tanks  spill containment kits located on site  visual inspections of slurry pipeline to ensure integrity and identify maintenance issues and requirements  visual inspection of bunded areas for signs of leakage and spills  use of portable bund during refuelling of plant and equipment  collection and disposal off-site of commercial and industrial waste  clean-up of spills.

As part of the operations undertaken on the Mindarie A(2) strandline, MZ have developed a topsoil and subsoil management procedure (Surface Soil Dig Procedure and Surface Soil Dig Permit). The process ensures that the quantity and quality of topsoil and subsoil is documented. This procedure and associated permit provides instructions on the excavation and placement of topsoil and subsoil into separate stockpiles. The procedure requires personnel who supervise an excavation or operate excavation machinery to complete and implement an approved Surface Soil Dig Permit.

Both the procedure and permit requirements will be implemented during operations on the Mindarie C strandline and during the completion of rehabilitation of Mindarie A(2). The implementation of the procedure and permit will assist with rehabilitation and closure activities post mining as it will enable placement of materials as near as practicable to the original soil levels.

7.2.12.5 Summary of environmental outcomes and measurement criteria

The risk levels, outcomes and measurement criteria are provided in Table 7.16 below.

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Table 7.16 Environmental outcomes, risk levels, control and management strategies and measurement criteria – topsoil and subsoil

Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria MZ_002 Impact to soil quality H Implementation of the Topsoil L Existing top and sub Weekly review of Soil Dig Permit N/A through compaction in and Subsoil Management and soil quality and quantity records indicates that all areas of backfill, Monitoring Plan is maintained. overburden, subsoil and topsoil below stockpiles and Implementation of Soil Dig within the lease area are site access roads Procedure and permit system removed in separate layers with scrapers/landplanes Shallow ripping of compacted surface during rehabilitation MZ_045 Impacts to soil and H Pipeline designed for expected MO Existing top and sub Annual review of inspection Visual inspection agricultural land flow conditions and pressures soil quality and quantity records indicate that all slurry of pipeline to associated with slurry Topsoil and Subsoil is maintained. spills from ruptured/split occur within 2 loss from split/failure Management and Monitoring pipelines are managed in hours of in pipeline. Plan to include process for accordance with the emergency automatic control response in the event of a pipe management procedures and system indicating split and loss of slurry. notified to DMITRE within 48 loss of pressure hours and or flow Visual inspections of slurry differential in pipeline to ensure integrity and slurry system to identify maintenance issues and indicate spill/leak requirements. between mine and plant sites in accordance with the emergency management procedures Adverse effects on MO Hydrocarbon and chemical L Existing top and sub Fortnightly visual inspections N/A soil quality and storage areas designed in soil quality and quantity indicate the correct storage, quantity due to accordance with EPA Bunding is maintained. transport and distribution of storage, transport and and Spill Management petroleum hydrocarbon or MZ_046 distribution of Guidelines. chemicals in accordance with petroleum EPA Bunding and Spill hydrocarbon or Management Guidelines 2007 hazardous chemicals

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Unique Aspect and impact PRL Summary of control and RRL Outcomes Measurement criteria Leading ID management strategies indicator criteria Adverse effects on MO Hydrocarbon and chemical L Existing top and sub Records demonstrate that all N/A soil quality and storage areas designed in soil quality and quantity spills within the lease areas are quantity due to accordance with EPA Bunding is maintained. recorded, reported to the EPA storage, transport and and Spill Management and DMITRE (as required) and distribution of Guidelines. clean up actions completed, in petroleum accordance EPA / DMITRE hydrocarbon or agreed procedures to ensure hazardous chemicals that no contaminated water leaves the lease area MZ_047 Adverse impact on L Appropriate storage and L Existing top and sub Quarterly audits and inspection N/A soil from inappropriate disposal of commercial and soil quality and quantity records demonstrate that waste storage of industrial industrial waste. is maintained. is stored and correctly disposed and commercial waste Implement a Commercial and in accordance with the Industrial Waste Management Commercial and Industrial and Monitoring Plan Waste Management and Monitoring Plan (Appendix L), and no evidence of waste disposed of on-site MZ_048 Impacts to soil quality H Implementation of Soil Dig L Existing top and sub Monthly photographic inspection Weekly visual due to poor stockpile Procedure and permit system soil quality and quantity of soil stockpiles to ensure inspection shows management Implementation of Top Soil and is maintained. topsoil and subsoil volume is that separate Subsoil Management and maintained through separate topsoil and Monitoring Plan stockpiles (managed with survey subsoil stockpiles reference markers) as are established in established immediately accordance with following construction of Top Soil and stockpiles Subsoil Management and Monitoring Plan Note: PRL = primary risk level with no control and management strategies; RRL = residual risk level after implementation of control and management strategies; L = Low; M = Moderate; H = High

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7.3 Consolidated summary of environmental outcomes and measurement criteria

Table 7.17 Outcomes and criteria

Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) No loss of abundance or Annual review of native Areas cleared will be Locations as No unauthorised Annual Native diversity of native vegetation vegetation clearance permits compared to native authorised clearance Vegetation on or off the lease through: demonstrate all clearance has vegetation clearance Management and . Clearance been authorised under the permits through audit of Monitoring Plan Native Vegetation Act,1991 as records (Appendix E) Unless prior approval under per the Native Vegetation relevant legislation is obtained Management and Monitoring Plan (Appendix E) No loss of abundance or Annual native vegetation Native vegetation Refer to locations No decrease in Annual Control sites A1, diversity of native vegetation species abundance or species abundance or A2, B2, C2 and abundance or B1, and C1 on or off the lease through: diversity assessment through diversity through visual control sites A1, diversity of native vegetation . Dust/contaminant visual observations and observations and B1 and C1 deposition photomonitoring assessments photomonitoring (Figure 4.9, indicate no decrease in Appendix L) Unless prior approval under abundance or diversity of relevant legislation is obtained native vegetation due to mining operations (refer to locations A2, B2, C2 in Figure 4.9, Appendix L) in comparison to control sites A1, B1 and C1 No loss of abundance or Annual native vegetation Native vegetation Refer to locations No decrease in Annual Control sites A1, diversity of native vegetation species abundance and species abundance or A2, B2, C2 and abundance or B1, and C1 on or off the lease through: diversity assessments diversity through visual control sites A1, diversity of native vegetation . Fire, or indicate no decrease in observations and B1 and C1 abundance or diversity of photomonitoring (Figure 4.9, Other damage . native vegetation as a result Appendix L) Unless prior approval under of fires caused by mining relevant legislation is obtained operations (refer to locations A2, B2, C2 in Figure 4.9, Appendix L) in comparison to control sites A1, B1 and C1

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) No loss of abundance or Annual review of records New weed species Lease area All new weed Annual Weed and Pest diversity of native vegetation indicate that any new weed species are Management and on or off the lease through: species found on lease area treated within 72 Monitoring Plan . Fire, or are treated in accordance with hours or as (Appendix E) and Weed Management and agreed with or landowner Other damage . Monitoring Plan (Appendix E) DMITRE agreements Unless prior approval under and or landowner agreements relevant legislation is obtained within 72 hours of reporting infestations No sustained increase in Annual review of records Pest species Lease area Compliance with Annual Weed and Pest abundance of introduced indicate that the Weed and the Weed and Management and (feral) species in the Lease Pest Management and Pest Monitoring Plan area compared to adjoining Monitoring Plan (Appendix E) Management and (Appendix E) and land has been implemented Monitoring Plan or landowner agreements No adverse public nuisance Quarterly total noise levels in Total noise levels in dB Refer to locations <52dBA during Quarterly EPA Noise Policy impacts from noise emanating dB measured as 24hr as 24hr continuous D, E and F the day and 2007 from the Lease continuous attended attended monitoring as Figure 4.1, <45dBA during monitoring at sensitive outlined in the EPA Appendix L night receptors (refer to locations D, Noise Policy 2007 E and F Figure 4.1, Appendix L) show that mining operations do not exceed the EPA Noise Policy of <52dBA during the day and <45dBA during night. Leading indicator: Total noise levels in dB Refer to locations Less than 85% of Weekly and EPA Noise Policy Weekly noise levels in dB (or as measured with hand D, E and F the guideline limit following 2007 following complaints) held noise level meter Figure 4.1, complaints measured by hand held noise Appendix L level meter taken at sensitive receptors (refer to locations D, E and F Figure 4.1, Appendix L) reach 85% of the EPA Noise Policy limit

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) No traffic accidents involving Independent investigations of Investigation of traffic Mine site access No traffic As required N/A the public at mine access all recorded traffic accidents accidents points (refer to accidents points that could have been at mine access points indicate locations A, B, C, involving the reasonably prevented that they could not have been Figure 5.10, public at mine reasonably prevented Appendix L) access points that could have been reasonably prevented No traffic accidents involving Leading Indicator: Condition road pavement Mine site access All traffic Monthly Baseline survey the public at mine access Monthly inspection of the road by visual observation points (refer to accidents prior to points that could have been pavement condition at mine and photomonitoring locations A, B, C, involving the commencement reasonably prevented access points (refer to Figure 5.10, public at mine of mining locations A, B, C, Figure 5.10, Appendix L) access points operations Appendix L) by visual could have been inspection and reasonably photomonitoring show that all prevented traffic accidents involving the public at mine access points could have been reasonably prevented Leading Indicator: Condition of traffic Mine site access All signs comply Monthly In accordance Monthly inspection of the signage by visual points (refer to with Australian with Australian condition of road traffic observation locations A, B, C, Standard Standard signage at mine access points Figure 5.10, AS:1742 Manual AS:1742 Manual (refer to locations A, B, C, Appendix L) of Uniform Traffic of Uniform Traffic Figure 5.10, Appendix L) Control Devices Control Devices indicates compliance with Australian Standard AS:1742 Manual of Uniform Traffic Control Devices Leading indicator: Compliance with Traffic N/A All employees Quarterly Traffic Quarterly audit of the total Management Plan and contractors Management number of records indicate (Appendix E) through to be inducted Plan that all employees and audit of records (Appendix E) contractors have been inducted to the Traffic Management Plan (Appendix E)

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) No disturbance to Aboriginal Records show that if an Disturbance to Aboriginal Lease area No disturbance As required Aboriginal artefacts or sites of Aboriginal site or artefact is sites of artefacts to Aboriginal Heritage Act significance unless prior discovered that work ceases artefacts or sites 1988 approval under the relevant and appropriate procedures of significance legislation is obtained are followed approval sought under the Aboriginal Heritage Act 1988 Weekly visual inspection and Disturbance through Known site No disturbance Weekly Baseline photomonitoring records show visual inspection and (Figure 4.10 to Aboriginal photomonitoring no disturbance to the existing photomonitoring Appendix L) artefacts or sites Aboriginal site as indicated on of significance Figure 4.10 (Appendix L) in comparison to baseline photomonitoring No disturbance to European There are no sites of N/A N/A N/A N/A N/A artefacts or sites of European heritage on the significance unless prior Mindarie C lease approval under the relevant legislation is obtained No unauthorised damage Records show that damage Damage adjacent public Lease area and Any unauthorised As required Landowner (including caused by fire) to (including caused by fire) to and private property and adjacent damage agreements adjacent public or private adjacent public or private infrastructure properties (including caused (Commercial in property and infrastructure property and infrastructure by fire) to Confidence) was managed in compliance adjacent public with landowner agreements or private property and infrastructure is managed in accordance with landowner agreements.

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Leading indicator: Total occurrences of Lease area and Compliance with Monthly AS 1940-2004: Monthly housekeeping uncontrolled flammable adjacent AS 1940-2004: The Storage and inspections of lease area by and or combustible properties The Storage and Handling of visual observations show all materials through visual Handling of Flammable and extraneous observation Flammable and Combustible flammable/combustible Combustible Liquids materials stored in Liquids accordance with AS 1940- 2004: The Storage and Handling of Flammable and Combustible Liquids No public injuries and or Records show that Damage to gates, fences Lease No public injuries As required Status of gates, deaths resulting from independent third party review and site infrastructure boundaries, and or deaths fences and site unauthorised entry to the site was sought as required to assessed by gates and site resulting from infrastructure that could have been assess that public injuries and independent third party infrastructure unauthorised prior to the reasonably prevented or deaths resulting from review area and entry to the site commencement unauthorised entry to the site adjacent that could have of mining (by damage to gates, fences properties been reasonably operations and site infrastructure) could prevented not have been reasonably prevented No public injuries and or Leading indicator: Damage to gates, fences Lease No public injuries Monthly Status of gates, deaths resulting from Monthly inspections of and site infrastructure by boundaries, and or deaths fences and site unauthorised entry to the site conditions of lease boundary visual observation gates and site resulting from infrastructure that could have been gates, fences and site infrastructure unauthorised prior to the reasonably prevented infrastructure by visual entry to the site commencement observation indicate no that could have of mining interference or damage which been reasonably operations could lead to public injuries prevented and or deaths that could have been reasonably prevented as a result of unauthorised entry to the site

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) No adverse public health Monthly review of PM10 PM10 by mobile real Sensitive <50 µg/m3/year, Monthly NEPM 1998 and/or nuisance impacts to measurements by mobile real time sampler (such as receptors with <5 days local residents from dust time sampler (such as T- T-BAM) Locations 3,4,5 exceedence/year generated by mining BAM) located at sensitive and control sites operations receptors (locations 3,4,5 and Locations 5, 7 control sites locations 5,6 and and 8 7 Figure 4.2, Appendix L) (Figure 4.2, demonstrates mining Appendix L) operations compliance with NEPM 1998 <50 µg/m3/year, with <5 days exceedance/year All community complaints Complaints from the Lease area 48 hours As required NEPM 1998 from the public regarding dust public regarding dust <50 µg/m3/year, arising from the lease area with <5 days addressed within 48 hours exceedence/year and assessed against the NEPM criteria Leading Indicator: PM10 by mobile real Sensitive <50 µg/m3/year, Daily NEPM 1998 Daily review of PM10 time sampler (such as receptors with <5 days measurements by mobile real T-BAM) Locations 3,4,5 exceedence/year time sampler (such as T- and control sites BAM) located at sensitive Locations 5, 7 receptors (locations 3,4,5 and and 8 control sites locations 5,6 and (Figure 4.2, 7 Figure 4.2, Appendix L) Appendix L) demonstrates mining operations compliance with NEPM 1998 <50 µg/m3/year, with <5 days exceedance/year

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) No adverse public health Annual review of storage and Storage and disposal of Lease area Putrescible Annual Waste and/or nuisance impacts to disposal records indicate putrescible waste in waste collected Management local residents from air putrescible waste collected accordance with Council weekly Plan emissions generated by weekly by Council and requirements (Appendix L) mining operations transported off the lease areas in accordance with the Waste Management Plan (Appendix L) Leading Indicator: Total occurrences of Lease area Less than 5 Monthly Waste Monthly review of waste uncontrolled wastes occurrences of Management inspection records indicate through visual incorrectly Plan less than 5 occurrences of observation disposed waste (Appendix L) incorrectly disposed of waste on lease area in accordance with the Waste Management Plan (Appendix L) No adverse public health Records demonstrate that all Presence of emission Lease area All operational Prior to Vehicle and and/or nuisance impacts to operational vehicles and control devices on heavy vehicles commencement equipment local residents from air equipment used on lease plant and equipment at of mining specification emissions generated by areas have appropriate time brought onto site operations and at mining operations emission control devices and through vehicle scheduled (according to vehicle maintenance records service / specifications) prior to maintenance commencement of use and at times scheduled maintenance times No adverse public health Monitoring at completion of Radiation in accordance Lease area No adverse At completion of EPA approved and/or nuisance impacts to rehabilitation demonstrates no with EPA approved public health rehabilitation Radiation local residents from air adverse public health and/or Radiation Management and/or nuisance Management emissions and dust generated nuisance impacts to local Plan requirements impacts to local Plan by mining operations residents from air emissions residents from air At closure: and dust generated by mining emissions and operations in compliance with dust generated The risks (including EPA approved Radiation by mining radiological) to the health and Management Plan operations

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) safety of the public and fauna Records demonstrate that at Radiation in accordance Lease area No adverse At completion of EPA approved are as low as reasonably completion of rehabilitation with EPA approved public health rehabilitation Radiation Waste practical removal and burial of low level Radiation Management and/or nuisance Management The site is physically stable radioactive material from Plan requirements impacts to local Plan All mine waste materials left ponds occurs in accordance residents from air on site are chemically and with the EPA approved emissions and, physically stable Radiation Waste Management dust generated Plan such that no adverse by mining public health and/or nuisance operations impacts to local residents from air emissions and dust generated by mining operations No water contaminated as a Quarterly audits and Storage and disposal of Waste storage All waste Quarterly Commercial and result of mining operations inspection records commercial and areas contained on site Industrial Waste leaves the Lease area or demonstrate that waste is industrial waste through for subsequent Management and results in loss of or stored and correctly disposed visual observations disposal off-site Monitoring Plan contamination of soil on or off in accordance with the (Appendix L) the lease Commercial and Industrial No adverse impact to the Waste Management and quality and quantity of surface Monitoring Plan (Appendix L), water caused by mining and no evidence of waste operations to existing users disposed of on-site and water dependent Records demonstrate that all All spill events reported Lease areas No contaminated As required Environment ecosystems spills within the lease areas to DMITRE and EPA water leaves the Protection Act are recorded, reported to the lease area 1993 EPA and DMITRE (as required) and clean up actions completed, in accordance EPA / DMITRE agreed procedures to ensure that no contaminated water leaves the lease area

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Leading Indicator: Correct storage, Fuel and or All storage areas Fortnightly EPA's Bunding Fortnightly visual inspections transport and distribution chemical storage in accordance and Spill indicate the correct storage, of petroleum / distribution with EPA Management transport and distribution of hydrocarbon or areas requirements Guidelines 2007 petroleum hydrocarbon or chemicals through visual chemicals in accordance with observations EPA Bunding and Spill Management Guidelines 2007 No water contaminated as a Monthly photographic Operation and Lease area Design Monthly Design result of mining operations inspections and written maintenance of silt traps specifications are specifications leaves the Lease area or reports of the effectiveness of and surface drainage met results in loss of or silt traps and surface drainage systems through contamination of soil on or off systems to demonstrate photographic inspection the lease. systems are operating in and written report No adverse impact on the accordance with the design quality and quantity of surface specifications water caused by mining Leading indicator: Effectiveness of silt traps Lease area No loss of Weekly Design operations to existing users Weekly visual inspections of and surface drainage containment After rainfall Specifications and water dependent the effectiveness of silt traps systems visual events that ecosystems and surface drainage systems inspection generate runoff to ensure no loss of containment. Inspection of drainage containment system after rain events that generate runoff confirms no loss of containment No adverse impact to the Annual records indicate that Groundwater extraction Production wells Average 42GL Annual Authorisation to quality and quantity of ground annual groundwater extraction rates per water use year (refer to over 10 years Take Water water caused by mining rates of production wells by water flow meter Figure 5.4, and not (Natural operations to existing users (measured by flow meter) are Appendix L) exceeding 6GL Resources and water dependent in accordance with approved per water use Management Act ecosystems Water Allocation Plan year 2004) and (average 42GL over 10 years existing and not exceeding 6GL per groundwater water use year) extraction data

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Leading indicator: Extraction volumes Refer to 1,000 ML Quarterly Authorisation to Quarterly review of extraction Figure 5.4, Take Water records show that water Appendix L (Natural extraction is in accordance Resources with the Authorisation to Take Management Act Water 2004) No adverse impact to the Records demonstrate that all All spill events reported Lease areas No contaminated As required Environment quality and quantity of ground spills within the lease areas to DMITRE and EPA water leaves the Protection Act water caused by mining are recorded, reported to the lease area 1993 operations to existing users EPA and DMITRE (as and water dependent required) and clean up actions ecosystems completed, in accordance EPA / DMITRE agreed procedures to ensure that no contaminated water leaves the lease area Fortnightly visual inspections Correct storage, Fuel and or All storage areas Fortnightly EPA's Bunding indicate the correct storage, transport and distribution chemical storage in accordance and Spill transport and distribution of of petroleum / distribution with EPA Management petroleum hydrocarbon or hydrocarbon or areas requirements Guidelines 2007 chemicals in accordance with chemicals through visual EPA Bunding and Spill observations Management Guidelines 2007 Annual groundwater quality Ground water samples Existing Average per Annual Existing measurements (for EC, pH, analysed for electrical monitoring wells, monitoring well groundwater uranium, thorium, TDS) from conductivity, pH, landholder wells not to exceed quality data each existing monitoring well, uranium, thorium, and and production two standard (Appendix N) landholder wells and total dissolved solids wells (refer deviations of production wells (refer Figure 5.4, baseline mean Figure 5.4, Appendix L) do not Appendix L) conditions exceed existing baseline conditions by two standard deviations

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Leading Indicator: Ground water samples Existing Average per Production wells Existing Monthly and six monthly analysed for electrical monitoring wells, monitoring well monthly groundwater groundwater quality conductivity, pH, landholder wells not to exceed Farm wells six quality data measurements (for EC, pH, uranium, thorium, and and production one standard monthly (Appendix N) uranium, thorium, TDS) from total dissolved solids wells (refer deviations of each existing monitoring Figure 5.4, baseline mean wells, landholder wells and Appendix L) conditions production wells (refer Figure 5.4, Appendix L) do not exceed existing baseline conditions by two standard deviations Ensure that the existing top Weekly review of Soil Dig Records indicates Lease area All overburden, Weekly Soil Dig and sub soil quality and Permit records indicates that overburden, subsoil and subsoil and Procedure and quantity is maintained all overburden, subsoil and topsoil stockpiles are topsoil stockpiles Permit Register topsoil within the lease area removed in separate are removed in are removed in separate layers separate layers layers with scrapers/landplanes Ensure that the existing top Annual review of inspection Spills are addressed Mine site to plant 48 hours Annual Baseline and sub soil quality and records indicate that all slurry within 48 hours through pipeline conditions prior quantity is maintained spills from ruptured/split audit of records to pipelines are managed in commencement accordance with the of mining emergency management operations procedures and notified to DMITRE within 48 hours

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Leading indicator: Loss of pressure and or Mine site to plant 2 hours Daily and or a Emergency Daily visual inspection of flow differential in pipeline time of Response pipeline to occur within 2 automatic control occurrence Manual hours of automatic control systems system indicating loss of pressure and or flow differential in slurry system to indicate spill/leak between mine and plant sites in accordance with the emergency management procedures Ensure that the existing top Fortnightly visual inspections Correct storage, Fuel and or All storage areas Fortnightly EPA's Bunding and sub soil quality and indicate the correct storage, transport and distribution chemical storage in accordance and Spill quantity is maintained transport and distribution of of petroleum / distribution with EPA Management petroleum hydrocarbon or hydrocarbon or areas requirements Guidelines 2007 chemicals in accordance with chemicals through visual EPA Bunding and Spill observations Management Guidelines 2007 Records demonstrate that all All spill events reported Lease areas No contaminated As required Environment spills within the lease areas to DMITRE and EPA water leaves the Protection Act are recorded, reported to the lease area 1993 EPA and DMITRE (as required) and clean up actions completed, in accordance EPA / DMITRE agreed procedures to ensure that no contaminated water leaves the lease area

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Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Ensure that the existing top Quarterly audits and Storage and disposal of Waste storage All waste Quarterly Commercial and and sub soil quality and inspection records commercial and areas contained on site Industrial Waste quantity is maintained demonstrate that waste is industrial waste through for subsequent Management and stored and correctly disposed visual observations disposal off-site Monitoring Plan in accordance with the (Appendix L) Commercial and Industrial Waste Management and Monitoring Plan (Appendix L), and no evidence of waste disposed of on-site Ensure that the existing top Monthly photographic Soil volume by visual Stockpile Volume Monthly Baseline and sub soil quality and inspection of soil stockpiles to inspection and locations maintained of conditions quantity is maintained ensure topsoil and subsoil photomonitoring and in stockpiles of following volume is maintained through accordance with Top Soil topsoil and construction of separate stockpiles (managed and Subsoil subsoil the stockpiles with survey reference Management and markers) as established Monitoring Plan immediately following construction of stockpiles Leading indicator: Soil type by visual Stockpile Separate Weekly Baseline Weekly visual inspection inspection and in locations stockpiles of conditions shows that separate topsoil accordance with Top Soil topsoil and following and subsoil stockpiles are and Subsoil subsoil construction of established in accordance Management and the stockpiles with Top Soil and Subsoil Monitoring Plan Management and Monitoring Plan

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Table 7.18 Outcomes and criteria – Mindarie C

Mine closure and rehabilitation – Mindarie C Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Final landforms and vegetation At completion of rehabilitation Topography of mined Mined area Integrated At completion of Surrounding will be integrated and the topography of the mined area will be surveyed landform with rehabilitation landscape harmonised with the area will be surveyed for elevated crown surrounding landscape integration with surrounding on mined areas landscape and presence of elevated crown No industrial or domestic Visual observation and Visual inspection of the Lease area No waste left on At completion of N/A waste will be left on site records demonstrate at presence of commercial site rehabilitation completion of rehabilitation all and industrial waste commercial and industrial waste material disposed off- site in an approved EPA licenced landfill The risks (including Radiological waste materials Radiation in accordance Lease area No adverse public At completion of EPA requirements radiological) to the health and are managed in accordance with EPA requirements health and/or rehabilitation safety of the public and fauna with EPA requirements nuisance impacts will be as low as reasonably to local residents practical from air emissions and dust generated by mining operations Records at completion of Records indicate that all Lease area No adverse At completion of Section 5.2.2.1 rehabilitation indicate that all exploration drill holes health and/or rehabilitation PEPR exploration drill holes were managed in accordance safety impacts to managed in accordance with with PEPR public the PEPR such that no adverse health and/or safety impact exists to the public

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Mine closure and rehabilitation – Mindarie C Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) The site will be physically Records at completion of Records indicates Lease area All overburden, At completion of Soil Dig stable rehabilitation indicate that all overburden, subsoil and subsoil and rehabilitation Procedure and overburden, subsoil and topsoil stockpiles are topsoil stockpiles Permit Register topsoil within the lease are replaced in sequence are replaced in replaced using using scrapers/landplanes separate layers in scrapers/landplanes in order as removed separate layers in similar order as removed in accordance with the Soil Dig Procedure Leading indicator Turbidity of tailings Tailings discharge Clarity wedge Every six hours of N/A Clarity wedge readings every discharge water is points or pipeline readings of operations (or six hours of tailings discharge measured using either by (in-line) and greater than 30. continuously for water and decanting pump a clarity wedge (or by in- tailings cells in-line meter) indicate water clarity of line real time turbidity decanting sump greater than 30 meter) pump (tailing cell decant water re- entering the process system) Leading indicator Visual inspection of Tailings cell Beaching angles Every six hours of N/A Six hourly visual inspections beaching angles of are greater than 5 operations of tailings cells indicate tailings deposition, using degrees off beaching angles greater than a handheld clinometer horizontal 5 degrees off horizontal with a hand held clinometer and recorded in a log book.

Leading indicator Yield stress of deposited Tailings cell Greater than Every shift N/A Yield stress of deposited tailings materials using a beaching front, 200 kPa tailings material is shown to hand held shear vane be greater than 200 kPa tester when tested daily at tailings cell beaching front using a hand held shear vane tester

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Mine closure and rehabilitation – Mindarie C Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) All mine waste materials left on Appropriate geotechnical Soil density using 100 metre Within ±15 % of At completion of Adjacent un- site will be chemically and testing, such as dynamic geotechnical testing (such spacing along the adjacent un- rehabilitation mined areas physically stable cone penetrometers, at 100 as DCP). centreline of the mined (cropped metre spacing along the strand areas) or similar centreline of the strand at the use completion of rehabilitation indicate that post mining rehabilitated surface is within ±15 % of adjacent un-mined (cropped areas) or similar use Leading indicator Records indicates Lease area All overburden, Weekly Soil Dig Weekly review of records overburden, subsoil and subsoil and Procedure and during rehabilitation indicate topsoil stockpiles are topsoil stockpiles Permit Register all overburden, subsoil and replaced in sequence are replaced in topsoil within the lease are using scrapers/landplanes separate layers in replaced using similar order as scrapers/landplanes in removed separate layers in similar order as removed in accordance with the Soil Dig Procedure Annual ecosystem Assessment of ecosystem Rehabilitated Ecosystem Annual until Control sites A1, Where applicable for all assessment by suitably sustainability by suitably areas adjacent to sustainability ecosystem B1 and C1 disturbed areas there will be qualified third party of qualified third party native vegetation sustainability either re-establishment of the rehabilitated areas of native survey locations reached pre-mining native ecosystem vegetation (refer to locations (refer to locations and landscape function or pre A2, B2, C2 in Figure 4.9, A2, B2, C2 in mining cultivated land use and Appendix L) in comparison to Figure 4.9, productivity control sites A1, B1 and C1 Appendix L) Where applicable for all have achieved or are disturbed areas there will be predicted to reach ecosystem either re-establishment of the function

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Mine closure and rehabilitation – Mindarie C Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) pre-mining native ecosystem Annual crop yield measured Crop yield measured as Previous mined Best 3 of 5 Annually for Baseline historical and landscape function or pre as tonnes per hectare or tonnes/hectare or areas cropping seasons period of 5 years data prior to mining cultivated land use and bags per hectare based on bags/hectare as of the returned following closure commencement productivity the best 3 of 5 cropping appropriate mining area is to of mining seasons of previously mined equal (i.e. 95%) operations area is equal to (i.e. 95%) or or better the better than the comparable comparable yield yield from the applicable from the landholders adjoining applicable paddock (for a period of landholders 5 years following closure) adjoining paddock based on historical data prior to the commencement of mining operations Leading indicator Trafficablility of Lease areas 100% trafficable On the Adjacent unmined On completion of rehabilitated land through completion of land rehabilitation, the use rehabilitation rehabilitated land is trafficable by landowner’s equipment consistent with adjacent unmined land There will be no compromise Annual records indicate that Groundwater extraction Production wells Average 42GL Annually for Authorisation to of the quality and quantity of annual groundwater rates per water use year (refer to over 10 years and period of 3 years Take Water ground and/or surface water to extraction rates of production by water flow meter Figure 5.4, not exceeding following closure, (Natural existing users and water wells (measured by flow Appendix L) 6GL per water unless transferred Resources dependent ecosystems meter) are in accordance with use year to landowners Management Act approved Water Allocation 2004) and Plan (average 42GL over 10 existing years and not exceeding 6GL groundwater per water use year) extraction data

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Mine closure and rehabilitation – Mindarie C Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Annual groundwater quality Ground water samples Existing Average per Annually for Existing measurements (for EC, pH, analysed for electrical monitoring wells, monitoring well period of 3 years groundwater uranium, thorium, TDS) from conductivity, pH, uranium, landholder wells not to exceed two following closure, quality data each existing monitoring well, thorium, and total and production standard unless transferred (Appendix N) landholder wells and dissolved solids wells (refer deviations of to landowners production wells (refer Figure 5.4, baseline mean Figure 5.4, Appendix L) do Appendix L) conditions not exceed existing baseline conditions by two standard deviations

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Mindarie Mineral Sands Project – Mindarie C and A(2) – Program for Environment Protection and Rehabilitation (PEPR)

Table 7.19 Outcomes and criteria – Mindarie A(2)

Closure and rehabilitation – Mindarie A(2) Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Final landforms and vegetation At completion of rehabilitation Topography of mined Mined area Integrated At completion of Surrounding will be integrated and the topography of the mined area will be surveyed landform with rehabilitation landscape harmonised with the area will be surveyed for elevated crown surrounding landscape integration with surrounding on mined areas landscape and presence of elevated crown The site will be physically Records at completion of Records indicates Lease area All overburden, At completion of Soil Dig stable rehabilitation indicate that all overburden, subsoil and subsoil and rehabilitation Procedure and overburden, subsoil and topsoil stockpiles are topsoil stockpiles Permit Register topsoil within the lease are replaced in sequence are replaced in replaced using using scrapers/landplanes separate layers in scrapers/landplanes in similar order as separate layers in similar removed order as removed in accordance with the Soil Dig Procedure All mine waste materials left on Appropriate geotechnical Soil density using 100 metre Within ±15 % of At completion of Adjacent un- site will be chemically and testing, such as dynamic geotechnical testing (such spacing along the adjacent un- rehabilitation mined areas physically stable cone penetrometers, at 100 as DCP). centreline of the mined (cropped metre spacing along the strand areas) or similar centreline of the strand at the use completion of rehabilitation indicate that post mining rehabilitated surface is within ±15 % of adjacent un-mined (cropped areas) or similar use

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Closure and rehabilitation – Mindarie A(2) Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Leading indicator Records indicates Lease area All overburden, Weekly Soil Dig Weekly review of records overburden, subsoil and subsoil and Procedure and during rehabilitation indicate topsoil stockpiles are topsoil stockpiles Permit Register all overburden, subsoil and replaced in sequence are replaced in topsoil within the lease are using scrapers/landplanes separate layers in replaced using similar order as scrapers/landplanes in removed separate layers in similar order as removed in accordance with the Soil Dig Procedure Where applicable for all Annual ecosystem Assessment of ecosystem Rehabilitated Ecosystem Annual until Control sites A1, disturbed areas there will be assessment by suitably sustainability by suitably areas adjacent to sustainability ecosystem B1 and C1 either re-establishment of the qualified third party of qualified third party native vegetation sustainability pre-mining native ecosystem rehabilitated areas of native survey locations reached and landscape function or pre vegetation (refer to locations (refer to locations mining cultivated land use and A2, B2, C2 in Figure 4.9, A2, B2, C2 in productivity Appendix L) in comparison to Figure 4.9, Where applicable for all control sites A1, B1 and C1 Appendix L) disturbed areas there will be have achieved or are either re-establishment of the predicted to reach ecosystem pre-mining native ecosystem function and landscape function or pre Annual crop yield measured Crop yield measured as Previous mined Best 3 of 5 Annually for Baseline historical mining cultivated land use and as tonnes per hectare or tonnes/hectare or areas cropping seasons period of 5 years data prior to productivity bags per hectare based on bags/hectare as of the returned following closure commencement the best 3 of 5 cropping appropriate mining area is to of mining seasons of previously mined equal (i.e. 95%) operations area is equal to (i.e. 95%) or or better the better than the comparable comparable yield yield from the applicable from the landholders adjoining applicable paddock (for a period of 5 landholders years following closure) adjoining paddock based on historical data prior to the commencement of mining operations

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Closure and rehabilitation – Mindarie A(2) Outcome Measurement Criteria Criteria What will be measured Locations Target value Frequency Control data (and how) There will be no compromise Annual groundwater quality Ground water samples Existing Average per Annually for Existing of the quality and quantity of measurements (for EC, pH, analysed for electrical monitoring wells, monitoring well period of 3 years groundwater ground and/or surface water to uranium, thorium, TDS) from conductivity, pH, uranium, landholder wells not to exceed two following closure quality data existing users and water each existing monitoring well, thorium, and total and production standard (unless (Appendix N) dependent ecosystems landholder wells and dissolved solids wells (refer deviations of transferred to production wells (refer Figure 5.4, baseline mean landowners) Figure 5.4, Appendix L) do Appendix L) conditions not exceed existing baseline conditions by two standard deviations Annual records indicate that Groundwater extraction Production wells Average 42GL Annually for Authorisation to annual groundwater rates per water use year (refer to over 10 years and period of 3 years Take Water extraction rates of production by water flow meter Figure 5.4, not exceeding following closure, (Natural wells (measured by flow Appendix L) 6GL per water unless transferred Resources meter) are in accordance with use year to landowners Management Act approved Water Allocation 2004) and Plan (average 42GL over 10 existing years and not exceeding 6GL groundwater per water use year) extraction data

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7.4 Other conditions without outcomes

Table 7.20 Other conditions without outcomes

Condition Management strategy PEPR Visual amenity and landscaping Structures and buildings must be designed and constructed as to present a neat MZ is utilising existing structures and buildings that were Section 7.2.7 and orderly appearance and to blend as far as practicable with the surrounding established as part of the previous mining operations. Any landscape new buildings will be designed and constructed to present a neat and orderly appearance and blend as far as practicable with the surrounding landscape. Community consultation Prior to commencement and construction and mining operations the Lessee must A Community Consultation Plan has been included in this Section 7.2.6 prepare and submit a Community Consultation Plan, outlining the proposed PEPR. Appendix I mechanisms for on-going consultation with local residents and stakeholders Consultation in preparing the PEPR In preparing the PEPR submitted under Section 70B of the Mining Act 1971, the MZ will consult with affected infrastructure and service Section 7.2.6 Lessee must consult with affected infrastructure and services authorities and authorities and landholders and where necessary make landholders and make arrangements satisfactory to those authorities for the arrangements satisfactory to those authorities for protection protection or relocation of those services or relocation of those services and infrastructures. Public complaints The lessee with be responsible for recording and addressing in manner and form MZ has established a system to address complaints from the Section 7.2.6 (to the satisfaction of the Director of Mines) ant complaints received from the public to the satisfaction of the Director of Mines. public Landholder liaison The lessee must agree with a written protocol to ensure that the occupier of the MZ will develop a written protocol that ensures the occupier Section 7.2.6 land is fully advised of their program of activities, particularly in regard to the of the land is fully advised of the program of activities and the impact of operations on the land and rehabilitation progress. impact of operations on the land and rehabilitation progress. Refuelling Fuel storage to be bunded in accordance with Environment Protection Authority MZ commits to bunding fuel storage in accordance with EPA Section 7.2.10 requirements requirements. Section 7.2.11 Section 7.2.12 Progressive rehabilitation The Lessee must undertake rehabilitation of mining operations will be undertaken MZ commits to rehabilitation of mining operations as outlined Section 8 in accordance with an integrated Mining and Rehabilitation Plan as approved in in the progressive rehabilitation schedule provide in this Appendix N the PEPR to ensure that post-mining crop productivity is equal to or better than PEPR and the Rehabilitation and Mine Closure Criteria Plan. crop productivity in the adjoining paddocks and is sustainable in the long term

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Condition Management strategy PEPR The Lessee must ensure that the PEPR submitted under Section 70B of the This PEPR specifies the maximum area of disturbed land Section 5.1.1 Mining Act 1971 specifies the maximum area of disturbed land that the whole that the whole operation will not exceed at any time specifies Table 5.2 operation will not exceed at any time a rehabilitation schedule and commitment to reporting Maximum areas must be specified for each of the following: monthly to the Director of Mines. . the length and area of land that has been either stripped of topsoil, or is awaiting reinstatement of topsoil . the length and area of land that has been either stripped of subsoil, or is awaiting reinstatement of subsoil . the length and area of land that has either had overburden removed, or is awaiting reinstatement of overburden Once approved in the PEPR, the length of the above disturbed areas must be reported monthly and the area reported quarterly to the Director of Mines. The Lessee must ensure that the PEPR submitted under Section 70B of the Progressive rehabilitation schedule is provided in this PEPR Section 8 Mining Act 1971 specifies a rehabilitation schedule (with a firm commitment to timeframes) for previously disturbed areas Provision of alternate water supply The lessee must provide a replacement water supply of similar quality and quantity MZ will provide an alternative water supply for affected users Section 7.2.10 to any affected existing groundwater users, until such time as the mines ceases to until such time as the mine ceases to impact on the users’ impact on the users water supply. water supply. It is noted that to date there has been no evidence that existing users have been affected in terms of groundwater quality and quantity. Road transport The lessee must prepare a Traffic Code of Conduct for all haulage vehicles MZ will prepare a Traffic Code of Conduct for all haulage Section 7.2.6 associated with the Mindarie Mineral Sands project operating within the Mallee vehicles associated with the Mindarie Mineral Sands Project. district prior to commencement of construction and to the satisfaction of the Minister, requiring these haulage vehicles to comply with the Code Road maintenance The Lessee must enter into a Road Maintenance Agreement with the District No haulage road will be constructed between the Mindarie C Section 7.2.4 Council of Karoonda East Murray for the haulage route from mine to the mine and the Separation Plant. Separation plant site. The agreement must include a requirement for a joint inspection every six months, or as agreed by the District Council of Karoonda East Murray as relevant, following completion of the road upgrade, to determine and assess as to whether the maintenance is required and to stipulate that should maintenance be required and not carried out within one month of inspection, that the District Council of Karoonda East Murray as applicable, will be entitled to carry out such maintenance work at the lessee’s cost.

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Condition Management strategy PEPR Road maintenance The Lessee must enter into a Road Maintenance Agreement with the District MZ will enter into a Road Maintenance Agreement with the Section 7.2.6 Council of Karoonda East Murray prior to the commencement of construction of District Council of Karoonda East Murray prior to roads which are likely to be used by traffic to the project site. The agreement must commencement of operations. include: the requirement for a traffic monitoring and reporting process to be developed and implemented at the lessee’s expense, to identify the use of roads by mine traffic; and mechanisms to calculate contributions for road maintenance commensurate with mine traffic use as identified by traffic monitoring. Loxton-Murray Bridge Road (RN7500) The lessee shall enter into a formal agreement with the Department of Planning, No diversion of the Karoonda Highway will be required for Section 7.2.4. Transport and Infrastructure (DPTI) for road design, pavement design, mining of the Mindarie C strandline. construction and maintenance works, technical and operational issues affecting this main road should this road require a temporary rerouting. A copy of this formal agreement shall be supplied to the Minister and registered against the mining lease. Railway diversion The Lessee shall enter into a formal agreement with DPTI and Genesee and No diversion of the rail line will be required for mining of the Section 7.2.6 Wyoming for rail design, pavement design, construction and maintenance works, Mindarie C strandline. technical and operational issues affecting rail diversion should this project require any work within the rail corridor and or a temporary rerouting of the railway line. Groundwater monitoring The Lessee must ensure that the PEPR submitted under Section 70B of the MZ will adopt monitoring requirements specified by the Section 7.2.11 Mining Act 1971 includes details of groundwater bore monitoring procedures in condition accordance with this clause. Leading Indicators The PEPR must include additional leading indicator criteria for the following Leading indicators have been specified in the PEPR Section 7.2.10 outcomes: Section 7.2.11 . Soil Section 7.2.12 Section 8 . Mine closure and progressive rehabilitation . Groundwater and hydrology Other legislation The above environmental outcomes do not derogate from the operation of any MZ will comply with applicable legislation Section 3 other Acts that may be applicable to this operation including (but not limited to): . Aboriginal Heritage Act 1988 . Environment Protection Act 1993 . Natural Resources Management Act 2004

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7.5 Additional environmental risks

MZ believe that the environmental management and monitoring commitments detailed in this PEPR adequately cover the Lease conditions as specified by DMITRE. No additional environmental risks have been determined by MZ at the time of submittal of this PEPR.

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8. Mine Closure and Rehabilitation Plan

8.1 General

8.1.1 Context and approach to mine closure

This Mine Closure and Rehabilitation Plan (MCRP) has been developed in order to manage environmental impacts associated with the rehabilitation and mine closure of the Mindarie C and Mindarie A(2) to comply with the ML conditions of approval and the Determination by the Minister.

Planning for mine closure is a continuing process that commences with this report and will be progressively refined and adapted as the project develops. Information gained throughout the life of the mine including surveys, changes in regulations, stakeholder communication, technology, mine planning, etc. all contribute to developing and refining closure plans. A key aspect of the mine closure for the project is progressive rehabilitation during operations.

The MCRP for Mindarie C and Mindarie A(2) includes:

 outcomes specified in the mining lease conditions  other lease conditions dealing with rehabilitation and closure  completion criteria to demonstrate compliance with conditions  the management activities to be implemented to minimise the likelihood and consequence of an unacceptable impact on the environment from rehabilitation or mine closure  description of the methods used to monitor rehabilitation success and assess the effectiveness of rehabilitation and mine closure management strategies.

8.1.1 Stakeholder involvement and issues

MZ has an active program of consultation with landowners whose properties are affected by the project as well as the local community. Closure of the mine will form part of the overall consultation program involving both formal and informal consultation (refer Section 6 and Appendix I).

The objectives for stakeholder involvement are to ensure that their interests are considered and that all outcomes agreed upon are achievable and sustainable.

8.1.2 Scope and review

The scope of the MCRP includes the proposed open pit mining activities and associated infrastructure of the Mindarie C strandline and the completion of rehabilitation of Mindarie A(2) strandline. It also includes post closure monitoring and management.

In accordance with regulatory requirements the MCRP for Mindarie C will be reviewed and if necessary revised, every year in conjunction with the environmental management and monitoring plans (refer to Appendix E) such that with successive reviews the MCRP will inform the preparation of a final MCRP that will be implemented upon permanent closure.

Regular review of the MCRP will allow DMITRE to review MZ’s bond so that it can be recalculated to reflect the current level of disturbance and rehabilitation liabilities. Review of the bond is undertaken every year or as otherwise determined by the Minister.

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Closure planning and management of rehabilitation activities throughout operations will be the responsibility of the Operations Manager for the Mindarie Mineral Sands Project. Post- closure, mine decommissioning and rehabilitation activities will also be the responsibility of the Operations Manager for the Mindarie Mineral Sands Project.

The MCRP for Mindarie C includes lessons learnt from the rehabilitation program undertaken for the Mindarie A(2) and initial mining of Mindarie C strandlines.

8.1.3 Potential environmental, economic and social impacts of mine closure

The potential environmental, economic and social impacts and risks that may exist after mine closure are listed below in Table 8.1. These impacts and risks will be avoided, mitigated or managed throughout the operation of the mine, and are expected to pose very small risks post closure. The potential impacts are listed for each closure Domain, as well as for the general project closure.

Table 8.1 Potential impacts after mine closure

Aspect Potential impact General project closure Fauna & flora Failure of revegetation and regeneration in areas of Mallee vegetation Increased density and distribution of weed species Increased abundance of introduced species Visual amenity Improved visual amenity compared to mining operations Socio-economic Changed value of rural properties (negative) Reduced employment opportunities Reduced spending in local community Increased area of cropping land Socio-economic Post-closure monitoring and maintenance costs (positive) Improved amenity adjacent to site (air quality; noise) Mine pit Surface water Altered flow regimes due to changes in landform Increased sediment load resulting from ineffective rehabilitation Groundwater Contaminants in seepage from process water affecting groundwater quality Air quality Increase in dust emissions from disturbed land due to ineffective rehabilitation Socio-economic Public safety and human health risks due to ineffective compaction and reinstatement of soil during rehabilitation Public safety and human health risks due to ineffective rehabilitation Infrastructure (including PCP, access roads, electricity, water & slurry pipelines) Air quality Increase in dust emissions from disturbed land due to ineffective rehabilitation Groundwater Chemical contamination of groundwater due to seepage from land contaminated by mining activities (e.g. diesel spills/leaks) Land use Land use impact due to ineffective compaction and reinstatement of soil during rehabilitation Socio-economic Public safety and human health risks Flora Increased density and distribution of weed species

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Aspect Potential impact Failure of revegetation and regeneration in areas of Mallee vegetation Grazing by native or feral animals or stock Other disturbed areas Air quality Increase in dust emissions from disturbed land due to ineffective rehabilitation Groundwater Chemical contamination of groundwater due to seepage from land contaminated by mining activities (e.g. diesel spills/leaks) Land use Land use impact due to ineffective compaction and reinstatement of soil during rehabilitation Poor establishment of crops and pastures Socio-economic Public safety and human health risks Flora Increased density and distribution of weed species Failure of revegetation and regeneration in areas of Mallee vegetation Grazing by native or feral animals or stock Fire

8.1.4 Rehabilitation Mine Closure and Criteria Plan

A Rehabilitation Mine Closure and Criteria Plan (RMCCP) has been developed in order to outline the objectives and closure criteria for returning mining affected areas to cropping land. The RMCCP has been reviewed and agreed upon by MZ as well as all relevant landholders.

The objectives of the RMCCP are:

 to return a safe, stable, vegetated landform that is consistent with surrounding conditions  to establish clear monitoring guidelines for the measurement of crop yields on an annual basis  to ensure accurate data for both rehabilitated ground and neighbouring paddocks is gathered in a manner to deliver a method that enables reliable comparison between the aforementioned paddocks  to ensure rehabilitation activities on the returned mining strands are carried out at optimum times in line with the adjoining paddocks  ensure that the neighbouring/adjoining paddocks and rehabilitation areas are sown and reaped with the same method, including similar timing and additional cultivation techniques  to ensure verified yield data is made available for the rehabilitation sites and the applicable neighbouring paddocks.

Criteria for the measuring of crop yields and management of rehabilitated cropping land have been developed and included in the RMCCP.

A copy of the Rehabilitation Mine Closure and Criteria Plan as agreed and signed off with affected landowners is included in Appendix M.

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8.1.5 Closure outcomes

The Mindarie C strandline is covered by ML 6226. The conditions attached to the lease that are of particular relevance to rehabilitation of the site are outlined below and provide specific outcomes:

The Lessee must demonstrate to the satisfaction of the Director of Mines that the following mine closure and rehabilitation outcomes (in so far as they may be affected by mining operations) are expected to be achieved and sustained after mine closure:

 integrate and harmonise final landforms and vegetation with the surrounding landscape  the risks (including radiological) to the health and safety of the public and fauna are as low as reasonably practical  the site is physically stable  no compromise of the quality and quantity of ground and or surface water to existing users and water dependent ecosystems  all mine waste materials left onsite are chemically and physically stable  no industrial or commercial waste left onsite  where applicable for all disturbed areas either re-establishment of the pre-mining native ecosystem and landscape function or pre-mining cultivated land use and productivity.

In terms of physical stability, MZ has interpreted this to mean that the land surface is free from subsidence areas and soft spots causing trafficability problems for agricultural equipment. The mine waste material is essentially overburden material that is inert and used for backfilling and tailings which have been modified by flocculents which are organic based.

8.1.6 Other conditions

The mining lease also specified other conditions without environmental outcomes:

 The Lessee must undertake rehabilitation of mining operations in accordance with an integrated mining and rehabilitation plan as approved in the PEPR to ensure that: post- mining crop productivity is equal to or better than crop productivity in the adjoining paddocks.

 The Lessee must ensure that the PEPR submitted under Section 70B of the Mining Act 1971 specifies the maximum area of disturbed land that the whole operation will not exceed at any time.

 Maximum areas must be specified for each of the following:  the length and area of land that has been either stripped of topsoil or is awaiting reinstatement of topsoil  the length and area of land that has been either stripped of subsoil or is awaiting reinstatement of subsoil  the length and area of land that has either had overburden removed or is awaiting reinstatement of overburden.

Once approved in the PEPR, the length of the above disturbed areas must be reported monthly and the area reported quarterly to the Director of Mines.

The Lessee must ensure that the PEPR submitted under Section 70B of the Mining Act 1971 specifies a rehabilitation schedule (with firm commitment to timeframes) for previously disturbed areas.

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8.2 Mindarie C (ML 6226)

8.2.1 Environmental baseline

The environmental baseline for the Mindarie C strandline is described in detail in Section 4. As discussed a small portion of the Mindarie C strandline has been mined previously, additionally the supporting infrastructure (e.g. the PCP, electricity transmission lines, haul roads etc.) will continue to be utilised for mining operations associated with other Mining Leases after closure and rehabilitation of the Mindarie C strandline.

The baseline information for the Mindarie C strandline will allow for a comparison of the rehabilitated Mindarie C strandline to pre-mining conditions.

8.2.2 Description of closure Domains

The final land use(s) for the Mindarie C mineral lease is determined by the capability of the area to support that use. The overall objective is to ensure that the final land use conforms to the present character and land use.

In general taking into consideration such factors as swell and aeration, the post mining landform within the mine footprint and mining lease would be contoured in consultation with relevant landowner regarding the final profile. Where possible the final rehabilitation profile would be returned flatter than the original undisturbed profile suitable for broad-acre farming practices.

Proposed land uses have been identified for each Domain (refer Table 8.2) with a preference towards the land uses which are complementary to the current surrounding land use.

Due to the continuous, linear nature of the mining operation, rehabilitation of the mined sites will be carried out progressively at a rate similar to that of the mining process.

Table 8.2 Proposed land use for each Domain on closure

No Domain Proposed land use 1 Mine pit Modified landform with broad-acre farming or native vegetation 2 Infrastructure (including PCP, access roads, Broad-acre farming or native vegetation electricity, water & slurry pipelines) 3 Other disturbed areas (e.g. stockpile Broad-acre farming or native vegetation locations)

8.2.3 Summary of environmental outcomes and completion criteria

The environmental outcomes and completion criteria are included in Table 8.3. The completion criteria will be used by MZ, DMITRE and other independent auditors to assess the progress towards or compliance with the outcomes.

The completion criteria have to be as clear and measurable as is practicable and will form the basis for conditions of lease relinquishment. During the mining operations and progressive rehabilitation, the outcomes and completion criteria may be reviewed and revised where necessary.

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As required in the Lease Conditions, leading indicator criteria have been developed for each of the lease conditions and outcomes related to mine rehabilitation and closure. Leading indicator criteria are designed to, if monitored, give early warning that the control strategy is failing and the outcome is potentially at risk of not being achieved.

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Table 8.3 Mine closure and rehabilitation – outcomes and completion criteria Mindarie C

Mine closure and rehabilitation – Mindarie C Outcome Measurement criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Final landforms and At completion of Topography of mined Mined area Integrated At completion of Surrounding vegetation will be integrated rehabilitation the topography area will be surveyed landform with rehabilitation landscape and harmonised with the of the mined area will be elevated crown surrounding landscape surveyed for integration with on mined areas surrounding landscape and presence of elevated crown No industrial or domestic Visual observation and Visual inspection of the Lease area No waste left on At completion of N/A waste will be left on site records demonstrate at presence of commercial site rehabilitation completion of rehabilitation and industrial waste all commercial and industrial waste material disposed off- site in an approved EPA licenced landfill The risks (including Radiological waste materials Radiation in accordance Lease area No adverse At completion of EPA radiological) to the health and are managed in accordance with EPA requirements public health rehabilitation requirements safety of the public and fauna with EPA requirements and/or nuisance will be as low as reasonably impacts to local practical residents from air emissions and dust generated by mining operations Records at completion of Records indicate that all Lease area No adverse At completion of Section 5.2.2.1 rehabilitation indicate that all exploration drill holes health and/or rehabilitation PEPR exploration drill holes were managed in accordance safety impacts to managed in accordance with with PEPR public the PEPR such that no adverse health and/or safety impact exists to the public

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Mine closure and rehabilitation – Mindarie C Outcome Measurement criteria Criteria What will be measured Locations Target value Frequency Control data (and how) The site will be physically Records at completion of Records indicates Lease area All overburden, At completion of Soil Dig stable rehabilitation indicate that all overburden, subsoil and subsoil and rehabilitation Procedure and overburden, subsoil and topsoil stockpiles are topsoil stockpiles Permit Register topsoil within the lease are replaced in sequence are replaced in replaced using using separate layers scrapers/landplanes in scrapers/landplanes in order as separate layers in similar removed order as removed in accordance with the Soil Dig Procedure Leading indicator Turbidity of tailings Tailings Clarity wedge Every six hours N/A Clarity wedge readings every discharge water is discharge points readings of of operations (or six hours of tailings measured using either by or pipeline (in- greater than 30. continuously for discharge water and a clarity wedge (or by in- line) and tailings in-line meter) decanting pump indicate line real time turbidity cells decanting water clarity of greater than meter) sump pump 30 (tailing cell decant water re- entering the process system) Leading indicator Visual inspection of Tailings cell Beaching angles Every six hours N/A Six hourly visual inspections beaching angles of are greater than of operations of tailings cells indicate tailings deposition, using 5 degrees off beaching angles greater than a handheld clinometer horizontal 5 degrees off horizontal with a hand held clinometer and recorded in a log book.

Leading indicator Yield stress of deposited Tailings cell Greater than Every shift N/A Yield stress of deposited tailings materials using a beaching front, 200 kPa tailings material is shown to hand held shear vane be greater than 200 kPa tester when tested daily at tailings cell beaching front using a hand held shear vane tester

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Mine closure and rehabilitation – Mindarie C Outcome Measurement criteria Criteria What will be measured Locations Target value Frequency Control data (and how) All mine waste materials left Appropriate geotechnical Soil density using 100 metre Within ±15 % of At completion of Adjacent un- on site will be chemically and testing, such as dynamic geotechnical testing spacing along the adjacent un- rehabilitation mined areas physically stable cone penetrometers, at (such as DCP). centreline of the mined (cropped 100 metre spacing along the strand areas) or similar centreline of the strand at the use completion of rehabilitation indicate that post mining rehabilitated surface is within ±15 % of adjacent un-mined (cropped areas) or similar use Leading indicator Records indicates Lease area All overburden, Weekly Soil Dig Weekly review of records overburden, subsoil and subsoil and Procedure and during rehabilitation indicate topsoil stockpiles are topsoil stockpiles Permit Register all overburden, subsoil and replaced in sequence are replaced in topsoil within the lease are using separate layers replaced using scrapers/landplanes in similar order scrapers/landplanes in as removed separate layers in similar order as removed in accordance with the Soil Dig Procedure Where applicable for all Annual ecosystem Assessment of Rehabilitated Ecosystem Annual until Control sites A1, disturbed areas there will be assessment by suitably ecosystem sustainability areas adjacent to sustainability ecosystem B1 and C1 either re-establishment of the qualified third party of by suitably qualified third native vegetation sustainability pre-mining native ecosystem rehabilitated areas of native party survey locations reached and landscape function or pre vegetation (refer to locations (refer to locations mining cultivated land use and A2, B2, C2 in Figure 4.9, A2, B2, C2 in productivity Appendix L) in comparison to Figure 4.9, control sites A1, B1 and C1 Appendix L) have achieved or are predicted to reach ecosystem function

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Mine closure and rehabilitation – Mindarie C Outcome Measurement criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Annual crop yield measured Crop yield measured as Previous mined Best 3 of 5 Annually for Baseline as tonnes per hectare or tonnes/hectare or areas cropping seasons period of 5 years historical data bags per hectare based on bags/hectare as of the returned following closure prior to the best 3 of 5 cropping appropriate mining area is to commencement seasons of previously mined equal (i.e. 95%) of mining area is equal to (i.e. 95%) or or better the operations better than the comparable comparable yield yield from the applicable from the landholders adjoining applicable paddock (for a period of landholders 5 years following closure) adjoining based on historical data prior paddock to the commencement of mining operations Leading indicator Trafficablility of Lease areas 100% trafficable On the Adjacent On completion of rehabilitated land through completion of unmined land rehabilitation, the use rehabilitation rehabilitated land is trafficable by landowner’s equipment consistent with adjacent unmined land There will be no compromise Annual records indicate that Groundwater extraction Production wells Average 42GL Annually for Authorisation to of the quality and quantity of annual groundwater rates per water use year (refer to over 10 years period of 3 years Take Water ground and/or surface water to extraction rates of production by water flow meter Figure 5.4, and not following closure, (Natural existing users and water wells (measured by flow Appendix L) exceeding 6GL unless Resources dependent ecosystems meter) are in accordance per water use transferred to Management Act with approved Water year landowners 2004) and Allocation Plan (average existing 42GL over 10 years and not groundwater exceeding 6GL per water extraction data use year)

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Mine closure and rehabilitation – Mindarie C Outcome Measurement criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Annual groundwater quality Ground water samples Existing Average per Annually for Existing measurements (for EC, pH, analysed for electrical monitoring wells, monitoring well period of 3 years groundwater uranium, thorium, TDS) from conductivity, pH, landholder wells not to exceed two following closure, quality data each existing monitoring uranium, thorium, and and production standard unless (Appendix N) well, landholder wells and total dissolved solids wells (refer deviations of transferred to production wells (refer Figure 5.4, baseline mean landowners Figure 5.4, Appendix L) do Appendix L) conditions not exceed existing baseline conditions by two standard deviations

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8.2.4 Compliance with other environmental conditions

DMITRE has specified other environmental conditions for which no outcome has been established. The issues and control and management strategies are presented in Table 8.4 below.

Table 8.4 Other environmental conditions and compliance criteria – mine closure and rehabilitation Mindarie C

Condition Management strategy PEPR Progressive rehabilitation The Lessee must undertake rehabilitation of mining operations will be undertaken MZ commits to rehabilitation of mining operations as outlined Section 8 in accordance with an integrated Mining and Rehabilitation Plan as approved in in the progressive rehabilitation schedule provide in this Appendix N the PEPR to ensure that post-mining crop productivity is equal to or better than PEPR and the Rehabilitation and Mine Closure Criteria Plan. crop productivity in the adjoining paddocks and is sustainable in the long term The Lessee must ensure that the PEPR submitted under Section 70B of the This PEPR specifies the maximum area of disturbed land Section 5.1.1 Mining Act 1971 specifies the maximum area of disturbed land that the whole that the whole operation will not exceed at any time specifies Table 5.2 operation will not exceed at any time a rehabilitation schedule and commitment to reporting Maximum areas must be specified for each of the following: monthly to the Director of Mines. . the length and area of land that has been either stripped of topsoil, or is awaiting reinstatement of topsoil . the length and area of land that has been either stripped of subsoil, or is awaiting reinstatement of subsoil . the length and area of land that has either had overburden removed, or is awaiting reinstatement of overburden Once approved in the PEPR, the length of the above disturbed areas must be reported monthly and the area reported quarterly to the Director of Mines. The Lessee must ensure that the PEPR submitted under Section 70B of the Progressive rehabilitation schedule is provided in this PEPR. Section 8 Mining Act 1971 specifies a rehabilitation schedule (with a firm commitment to timeframes) for previously disturbed areas

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8.2.5 Closure strategies for each domain

This section presents further detail on the closure strategies for each domain and how this will be achieved. The section also contains a residual risk assessment for each closure outcome. This is undertaken by examining the potential consequences and the likelihood that those impacts will occur after closure strategies have been implemented.

8.2.5.1 Mine pit (Domain 1)

Closure strategies for Domain 1 have been developed and are discussed in Table 8.5 below. These actions have been developed to assist in the achievement of outcomes and completion criteria.

Table 8.5 Closure strategies for closure of Domain 1 (conceptual)

Domain Strategy Mine pit (Domain 1) . The maximum area of disturbed land that the whole operation will not exceed at any given time is approximately 30 ha. . Progressively backfill pit with tailings as mining activities move along the strand . Progressively return overburden to pit as tailings dry sufficiently . Reshape disturbed land to be stable adequately drained and suitable for cropping land use . Replace stockpiled subsoil . Spread gypsum if applicable . Replace stockpiled topsoil (the upper clay and topsoil should be spread in dry conditions and compatible with dust management requirements). . After spreading the upper clay but before spreading the topsoil an application of 3 t/ha of gypsum (or 0.3 t/ha of calcium nitrate) should be applied if applicable (as per agreements with landowners) . Spread fertilizer (15 kg/ha P and 15 kg/ha N) with trace elements as recommended by an agronomist based on initial soil analysis (as per agreements with landowners) . Stabilise area with temporary crops or stabilising agent . Yield based on the criteria of selecting data from the best 3 of 5 cropping seasons of the returned mining area is to average not less than 95% of the comparable yield from the applicable landholders adjoining paddock (the same paddock once MZ's fencing has been removed). . Monitor rehabilitated cropping land as per outlined in the Mine Closure and Rehabilitation Criteria Plan. . Undertake assessment of rehabilitated native vegetation, conduct replanting and/or seedling maintenance as required.

Figure 8.1 (Appendix L) provides an example of the rehabilitated landscape of the mine pit (Domain 1).

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8.2.5.2 Infrastructure (Domain 2)

Closure strategies for Domain 2 have been developed and are discussed in Table 8.6 below.

Table 8.6 Closure strategies for closure of Domain 2 (conceptual)

Domain Strategy Infrastructure . Decommission and dismantle PCP (including PCP, . Removal of temporary access roads that have been compacted (e.g. access roads, through vehicular/plant movement) should be ripped to a depth of 0.4 m electricity, water & at 1 m intervals and an application of gypsum at 3 t/ha applied if slurry pipelines) applicable . Removal of redundant infrastructure including pipes, powerlines, water wells . Reinstatement of fences . Reinstatement of interrupted infrastructure including public roads, telecommunications, powerlines to properties . Offer ownership and responsibility for wells no longer required to landholders, if offer refused, decommission wells following Department for Water procedures . Where possible, reshape the land disturbed by mining to a landform that is consistent with surrounding conditions (with a slope no greater than 1:4) . Replace stockpiled subsoil and topsoil on disturbed areas . Stabilise areas with temporary crops or stabilising agent . Undertake assessment of rehabilitated native vegetation and conduct replanting and/or seedling maintenance as required. . Undertake yield assessment and monitoring as agreed up on in the Mine Closure and Rehabilitation Criteria Plan.

Figure 8.1 (Appendix L) provides an example of the rehabilitated landscape of the infrastructure (Domain 2).

8.2.5.3 Disturbed areas (Domain 3)

Closure strategies for Domain 3 have been developed and are discussed in Table 8.7 below.

Table 8.7 Closure strategies for closure of Domain 3 (conceptual)

Domain Strategy Other disturbed . Where possible, reshape the land disturbed by mining to a landform that areas (e.g. stockpile is consistent with surrounding conditions with a slope no greater than 1:4 locations) . Reinstate fences . Replace stockpiled subsoil and topsoil on disturbed areas . Unmined areas that have been compacted (e.g. through vehicular/plant movement) should be ripped to a depth of 0.4 m at 1 m intervals and an application of gypsum at 3 t/ha applied if applicable (as per agreements with landowners) . Stabilise areas with temporary crops or stabilising agent . Undertake assessment of rehabilitated native vegetation, conduct replanting and/or seedling maintenance as required. . Undertake yield assessment and monitoring as agreed up on in the Rehabilitation and Mine Closure Criteria Plan.

Figure 8.1 (Appendix L) provides an example of the rehabilitated landscape of the disturbed areas (Domain 3).

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8.2.5.4 Additional cropping land

There are a number of areas within the Mindarie C lease which comprise un-cropped land, contain native vegetation, house blocks and / or an Aboriginal heritage site (refer to Figure 4.10 and Figure 8.2, Appendix L). MZ are currently in consultation with landholders to enable relevant land to be used for cropping through re-contouring to enable better access for farming equipment. The portions of land that contain native vegetation, residences and associated outbuildings, and the Aboriginal heritage site will not be made available for cropping.

Cropping yields from these areas will not be included in the crop yield assessment as detailed in the Rehabilitation and Mine Closure Criteria Plan, due to the potential that these areas to not provide an equivalent crop yield as to previously cropped areas.

8.2.6 Closure management

8.2.6.1 Progressive rehabilitation

Progressive rehabilitation of the Mindarie C strandline during the operational life of the mine is important to demonstrate the success of closure strategies prior to actual closure of the strandline and to enable adjustments to the strategies as a result of the experience gained or changes to stakeholder and regulator expectations. Progressive rehabilitation is also an important way of reducing the long-term closure liability.

Given the nature of the mining operations progressive rehabilitation of the mine pit void will be undertaken as the mining operations advance along the strandline. In addition the site access tracks and pipeline routes will be progressively rehabilitated as they become available.

Figure 8.3 (Appendix L) provides an example of the final landform and rehabilitated areas upon completion of a mining sequence and subsequent rehabilitation activities.

8.2.6.2 Topsoil and subsoil management

As part of the operations undertaken on the Mindarie A(2) strandline, MZ have developed a topsoil and subsoil management procedure (Surface Soil Dig Procedure and Surface Soil Dig Permit). This procedure and associated permit provides instructions on the excavation and placement of topsoil and subsoil. The procedure requires personnel who supervise an excavation or operate excavation machinery to complete and implement an approved Surface Soil Dig Permit.

Both the procedure and permit requirements will be implemented during operations on the Mindarie C strandline. The implementation of the procedure and permit will assist with rehabilitation and closure activities post mining as it will enable placement of materials as near as practicable to the original soil levels.

8.2.6.3 Mine closure schedule

For each of the project stages (as outlined on Figure 5.1, Appendix L) the start-up sequence is to strip the top soil, sub soil and overburden from the first mining block. The first exposed ore will be required to be stockpiled within the first block (pushed forwards along the mining front) to make available enough space (behind the mining front) to construct the first tailings cell. This will ensure that all mine tailings will be contained within the mining void.

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The mining equipment will then move forwards along the mining front as volumetric void becomes available in the mining sequence (i.e., block 2, 3, 4 etc.). Once the starter pit is complete with constructed tailings cell, the pit becomes operational with the slurry unit moving into the mining void and in-pit tailings disposal commencing. At any one point in time the operational pits associated with each of the stages will be approximately 1,800 to 2,100 m long x 200 m wide (not including the stockpile areas). Progressive rehabilitation will occur as the operation of one mining sequence (block) concludes.

Table 8.8 below outlines the timeframes for rehabilitation and closure. Year 1 corresponds to the commencement of mining.

The progress of closure planning (including progressive rehabilitation) will be reported on an annual basis as part of the project’s Annual Compliance Report to DMITRE.

Table 8.8 Schedule for closure and rehabilitation

Timing Activity Year 1 (2012) Commence operations. Pre mining Remove and stockpile vegetation. Month 0 Block 1 – strip topsoil and subsoil Month 1 Block 1 – overburden boxcut Block 2 – strip topsoil and subsoil Month 2 Block 1 – MUP begins feeding slurry unit Block 2 – overburden boxcut Block 3 – strip topsoil and subsoil Month 3 Block 1 – tailing cells drying Block 2 – MUP begins feeding slurry unit Block 3 – overburden boxcut Block 4 – strip topsoil and subsoil Month 4 Block 1 – tailing cells closed Block 2 – tailings cells drying Block 3 – MUP begins feeding slurry unit Block 4 – overburden boxcut Block 5 – strip topsoil and subsoil Month 5 Block 1 – overburden returned Block 2 – tailing cells closed Block 3 – tailings cells drying Block 4 – MUP begins feeding slurry unit Block 5 – overburden boxcut Block 6– strip topsoil and subsoil Month 6 Block 1 – subsoil returned Block 2 – overburden returned Block 3 – tailing cells closed Block 4 – tailings cells drying Block 5 – MUP begins feeding slurry unit Block 6 – overburden boxcut Block 7– strip topsoil and subsoil Month 7 Block 1 – topsoil returned Block 2 – subsoil returned Block 3 – overburden returned Block 4 – tailing cells closed Block 5 – tailings cells drying Block 6 – MUP begins feeding slurry unit Block 7 – overburden boxcut Block 8 – strip topsoil and subsoil

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Timing Activity Month 8 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – subsoil returned Block 4 – overburden returned Block 5 – tailing cells closed Block 6 – tailings cells drying Block 7 – MUP begins feeding slurry unit Block 8 – overburden boxcut Block 9 – strip topsoil and subsoil Month 9 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – subsoil returned Block 5 – overburden returned Block 6 – tailing cells closed Block 7 – tailings cells drying Block 8 – MUP begins feeding slurry unit Block 9 – overburden boxcut Month 10 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – subsoil returned Block 6 – overburden returned Block 7 – tailing cells closed Block 8 – tailings cells drying Block 9 – MUP begins feeding slurry unit Month 11 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – subsoil returned Block 7 – overburden returned Block 8 – tailing cells closed Block 9 – tailings cells drying Block 10 – completion of mining Month 12 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – subsoil returned Block 8 – overburden returned Block 9 – tailing cells closed Block 10 – tailings cells drying Month 13 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – topsoil returned Block 8 – subsoil returned Block 9 – overburden returned Block 10 – tailing cells closed

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Timing Activity Month 14 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – topsoil returned Block 8 – topsoil returned Block 9 – subsoil returned Block 10 – overburden returned Month 15 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – topsoil returned Block 8 – topsoil returned Block 9 – topsoil returned Block 10 – subsoil returned Month 16 Block 1 – topsoil returned Block 2 – topsoil returned Block 3 – topsoil returned Block 4 – topsoil returned Block 5 – topsoil returned Block 6 – topsoil returned Block 7 – topsoil returned Block 8 – topsoil returned Block 9 – topsoil returned Block 10 – topsoil returned Post mining Provide DMITRE with update on implementation of the MCRP via annual (2012-2013) Compliance Report (as per Lease Condition 2). Commence operational monitoring of rehabilitated areas in accordance with PEPR and associated plans. Year 2 (2013) Continue to progressively rehabilitate areas no longer required or finalised as part of operations. Continue operational monitoring of rehabilitated areas. Cease mining and production. Provide DMITRE with update on implementation of the MCRP via annual Compliance Report. Year 3 (2014) Continuation of monitoring to demonstrate that closure outcomes and lease/licence conditions as identified in this plan will be met. Provide DMITRE with update on implementation of the MCRP via annual Compliance Report. Year 4 (2015) Provide ongoing Annual Compliance Reports to DMITRE and make application to relinquish tenements.

8.2.6.4 Additional actions

Table 8.9 contains additional rehabilitation and mine closure management actions developed to mitigate the environmental impacts.

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Table 8.9 Management actions – rehabilitation and mine closure

No. Commitment Evidence to support achievement of completion criteria Decommissioning (of public infrastructure) – restoration of private infrastructure on individual landholdings is covered in landholder agreements Roads 1 Roadbed will be re-established and re- Correspondence with local council regarding surfaced to meet the requirements of the the agreed requirements. local council or as appropriate. Records of visual inspections. Road maintenance to occur as per the Correspondence with local council regarding previously agreed terms with the District the agreed requirements. Council of Karoonda East Murray. Electricity 2 Electricity and telecommunications Lease-handed back to DMITRE and bond infrastructure re-established to at least the returned (or transferred to another deposit). previous level of service. Correspondence with relevant utility. Electricity and telecommunication infrastructure maintenance integrated into normal local practice and formally accepted by the relevant utility. Water 3 Offer ownership and responsibility for wells Decommission documentation or no longer required to landholders, if offer correspondence with land owner. refused, decommission wells following Department of Water procedures. Pits 4 Infill of the mobile pit with overburden, PCP Evidence that the crop/pasture yield of land tailings (sand and clay) materials as a disturbed by mining operations is determined continuous process as the excavation moves to be equivalent to the yield of the along the strand. surrounding crop/pasture. 5 Pits to be in filled with overburden and soil Native vegetation accepted as physically (except at the end points of the strands). stable and moving towards equivalent ecosystem function as prior to mining without irrigation and with same maintenance requirements as prior to mining and formally accepted by DMITRE. Yield based on the criteria of selecting data from the best 3 of 5 cropping seasons of the returned mining area is to average not less than 95% of the comparable yield from the applicable landholders adjoining paddock (the same paddock once MZ's fencing has been removed). Overburden Stockpiles 6 Return of the overburden to the pit and Yield based on the criteria of selecting data overburden covered with stockpiled soil from the best 3 of 5 cropping seasons of the horizons (subsoil then topsoil) returned mining area is to average not less than 95% of the comparable yield from the applicable landholders adjoining paddock (the same paddock once MZ's fencing has been removed).

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No. Commitment Evidence to support achievement of completion criteria Post mining landform 7 Reshape the land disturbed by mining to a The land disturbed by mining operations is landform that is consistent with surrounding returned to a stable landscape conditions and allows achievement of commensurate with the adjacent landforms. outcome. This landform will be stable, The slopes (for the mounds and voids only) adequately drained and suitable for cropping, shall be pushed back to a maximum of 1:4 if and match the characteristics of the unable to be reconciled. immediately adjacent unmined land surface. Rehabilitation activities – agricultural land 8 Landowners will be involved in the cropping Monitoring results that demonstrate the land of agricultural land. This may include disturbed by mining operations has not been harrowing and enriching the topsoil through compromised by contamination, including addition of fertiliser and planting temporary weeds, radiation, and soil and groundwater crop or providing advice. If the landowner contaminants. does not select to undertake the work the Company or its contractors will undertake the work. 9 The replanted areas will be monitored for Photo records established and maintained adequate regrowth until the crop/pasture is for revegetated areas throughout the appropriately self-sustaining and meets the rehabilitation and monitoring period. reasonable requirements of the landowner. Rehabilitation activities – native vegetation 10 Plants used will be of local provenance, Tubestock sourced appropriately with however the provenance boundary may vary assistance from East Murray Area School. depending on the availability of seed source and given the scattered nature of vegetation patches within the broad project site. Wherever possible and viable, locally rare or endangered species may be added to the list in consultation with local experts. Limited use of tubestock will be used to augment direct seeding, and irrigation will be provided where planting is not able to be undertaken in winter months. 11 Reestablishment of vegetation in these areas Photo records established and maintained will be monitored with special attention given for revegetated areas throughout the to preventing weed invasion and maintaining rehabilitation and monitoring period. soil moisture by respreading leaf litter and other local material. Living mulch species (e.g. chenopods) and native grass seed will be added to the seed mix as well. 12 The revegetated areas will be monitored for Physical stability (resistance to erosion). at least two years to verify successful No increase in weeds spread or species. establishment, although monitoring will be extended to the life of the lease at a lesser No further irrigation or replanting required. intensity. Sustainability of site (e.g. ongoing regeneration from planted/seeded material). Results of the visual monitoring of the revegetated areas to verify successful establishment. Soil management and reuse 13 Soil characteristics of strandlines identified Soil profile records. prior to removal i.e. soil profile sampling of mining areas was undertaken to determine soil characteristics prior to mining. 14 Provision of fact sheets for land owners Factsheets available from MZ and evidence regarding disturbed soils management they have been offered to land owners.

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No. Commitment Evidence to support achievement of completion criteria 15 Before undertaking rehabilitation activities, Visual inspection records erosion and sedimentation control structures Physical stability of the soil i.e. resistance to will be established. erosion. 16 Immediately prior to spreading and reuse of Soil reuse procedure topsoils the preparation of the subsoil may include shallow ripping by scarifying or similar, where compacted, to a depth of at least 100 mm then after topsoil spreading lightly rolled to ensure bonding of the topsoil and subsoil. 17 Soil horizons will be replaced in the same Surface soil dig permit will be used to order that they were removed, i.e. fill the document where the different horizons have mining pit with overburden and cover with been stockpiled. stockpiled subsoil horizon(s) where separately stripped, then cover with stockpiled topsoil. Soil will be reused as close as practicable to its point of origin. 18 Where identified as necessary by initial soil Soil testing results. characterisation, additional soil testing (nutrients, pH, EC and toxicity factors) for the top and sub soil materials will be undertaken prior to reuse. 19 Sampling and characterisation of the Yield based on the criteria of selecting data rehabilitated soils will be undertaken to from the best 3 of 5 cropping seasons of the determine the need for the addition of any returned mining area is to average not less elements e.g. phosphorus, zinc, copper, than 95% of the comparable yield from the possibly manganese to obtain the applicable landholders adjoining paddock appropriate levels of these elements for (the same paddock once MZ's fencing has agricultural use or establishment of native been removed). vegetation where this is recommended by the environmental scientist or agronomist. 20 Where necessary gypsum, calcium nitrate or Soil characterisation analysis results fertiliser will be applied to soil when recommended by the soil characterisation analysis.

8.2.7 Post closure monitoring and management

Monitoring of rehabilitation and mine closure management activities are detailed in Table 8.10 below.

Table 8.10 Monitoring activities and requirements – rehabilitation and mine closure

Activity Frequency Parameters Pre rehabilitation activities Soil removal and Prior to removal of Removal data and storage location as detailed in stockpiling all top soil the approved Surface Soil Dig Permit. Rehabilitation activities – agricultural land Soil assessment During/immediately Soil type, soil quality, soil density, soil depth in order after rehabilitation to compare post mine soil assessment to pre-mine activities (one off soil assessment assessment)

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Activity Frequency Parameters Agricultural yield Post rehabilitation Yield based on the criteria of selecting data from the assessment best 3 of 5 cropping seasons of the returned mining area is to average not less than 95% of the comparable yield from the applicable landholders adjoining paddock (the same paddock once MZ's fencing has been removed). Rehabilitation activities – native vegetation Soil assessment During/immediately Soil type, soil quality, soil depth in order to compare after rehabilitation post mine soil assessment to pre-mine soil activities (one off assessment assessment) Native vegetation Post rehabilitation – Successful establishment of revegetated areas. survey annually until Weeds occurrence. identified that outcome has been achieved. Visual Inspection Annually until lease Vegetation condition relinquishment Weeds occurrence Mine closure Visual inspection Post rehabilitation Final landform suitable and agreed to by landowner. All other mining infrastructure removed in agreement with landowner.

8.2.8 Closure cost estimate/bond

The cost estimate for rehabilitation of the site has been prepared using actual costs for the current rehabilitation of Mindarie A(2) and additional cost sought from suppliers. The cost estimate is based on the assumption that a third party undertakes the rehabilitation and decommissioning works at the end of mine life and that there is no revenue from resalable items.

Under the conditions of the Mineral Lease, before commencing operations, MZ will lodge a bond of AUD$ 3,951,486 as surety to cover the full cost of rehabilitation liability for Mindarie C as summarised in Table 8.11.

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Table 8.11 Closure cost estimate Item # Operations/aspect Unit of Measure No. of Units rate $/unit Estimated cost ($) 1 Top and sub soil replacement bcm 299,808 $1.90 $569,635 2 Overburden replacement bcm 814,864 $1.45 $1,181,553 3 Grader boarding for overburden, subsoil and topsoil $91,290 4 Rolling Topsoil Ha 30 $334,543 5 Rolling Subsoil Ha 30 $438,600 6 Ripping - this will replace rolling (offset) $0 7 Gound Preparation including spraying for weeds and rust, seeding, fertilizer Ha 30 $215 $6,450 8 Mobilization/Demobilization of heavy equipment $432,668 9 Removal of pumps on mining lease per pump 6 $710 $4,260 10 Removal of piping on mining lease $63,000 11 Disposal of last tails water in tailings void $1,680 12 Spill Disposal per event but aim for nil events 2 $1,440 $2,880 13 Fence replacement km 5.9 $1,200 $7,080 14 Exploration Bores decommissioned N/A 15 Production Bores decommissioned per bore 5.0 $710 $3,550 Subtotal (domains and sundry items) $3,137,189 Contingency @ 10% $313,719 Tender Preparation/assessment $5,000 Unplanned final closure plan $25,000 Post closure environmental monitoring $156,859 Project management and surveying $313,719

Total Mindarie C project cost estimate $3,951,486

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8.3 Mindarie A(2) (ML 6220)

8.3.1 Environmental baseline

The environmental baseline for the Mindarie A(2) is described in detail in the Mining and Rehabilitation Program (MARP) approved by PIRSA in 24 August 2006.

The baseline information will allow for a comparison of the rehabilitated Mindarie A(2) strandline to pre-mining conditions.

8.3.2 Status of current rehabilitation

Rehabilitation activities associated with the previous mining of Mindarie A(2) and C strandlines are currently being finalised.

Rehabilitation work on the disturbed areas of the Mindarie A(2) lease commenced in August 2011 and involved the drying of wet areas, the replacement of overburden and subsoils. As of April 2012, 100% of all overburden, subsoils and topsoils have been replaced on the A(2) strandline.

Seeding of cover crops is expected to occur starting late April through May and monitoring will occur on an ongoing basis after completion of rehabilitation.

8.3.3 Process pond rehabilitation

During the previous operations of the Mindarie mine tailings from the Mineral Separation Plant were managed in an out of void tailings facility. MZ is committed to rehabilitating this tailings facility and proposes that the material in the MSP dam is removed and processed to recover the valuable minerals including those that are slightly radioactive.

There are four options that have been considered by MZ including:

 Option 1 – remove the material from the MSP dam and truck down to the Mindarie C void during mining operations for co-disposal within the tailings cell  Option 2 – remove the material from the dam as above and truck down to the slurry unit and add in to the ore feed at a controlled rate and produce additional HMC in the PCP  Option 3 – remove the material from the dam with an excavator and trucks and process through a small processing plant using existing spirals on site to produce HMC on its own  Option 4 – remove the material from the dam as above and process through the cleaner circuit of the PCP also to produce HMC on its own.

Option 1 for the in-void disposal of the material is not the preferred option as the transport costs from the MSP dam to the mining void are prohibitive.

Option 2 is also not the preferred option because, as with Option 1, the transport costs are prohibitive. In addition processing cannot start earlier than mining however Option 3 could be initiated after mining has commenced.

Options 3 and 4 have the benefit of producing separate clean sand tailings that can be backfilled directly into the MSP dam and the HMC can be processed before the mine is started. Another benefit is the shipping system can be tested prior to start-up of the mine.

In Options 3 and 4 the procedure would be as follows:

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 develop a safe procedure to remove sand from the eastern end of the MSP rejects dam using an excavator and trucks. There is little or no radioactivity on the western end of the dam  deliver sand to the PCP or stand-alone spiral plant and dump into a hopper  convey sand to a screen and slurry chute above the spiral feed sump  water will be initially be provided from the mine site wells and this will circulate through the process water dams and this settled water re-used to slurry the MSP dam material  this will be a closed loop until the whole mine and PCP is started or in the case of Option 3 it will continue on its own  if necessary flocculent will be added to keep the water clear, however there is little slime in the eastern half of the dam  slurry will be pumped to the spirals (Option 3 or 4) and the rough concentrate will be channelled to a set area at 70% solids  excess water from the concentrate stockpile will gravitate to the process water ponds  both the tailings and rough HMC will be stacked around the process water dam area (in separate areas)  the tailings will be pumped to a portable stacker and dewatered to 70% solids and returned to the MSP dam free of any radioactivity. Excess water will drain back into the process water dam  the concentrate will be removed and loaded into trucks or containers when sufficiently dry and this will also prove what moisture content is achievable  a suggested tonnage is around 100tph running 24 hours per day and will require 4 to 6 additional staff. At this rate the operational time will be approximately 6 to 12 months, however this is largely dependent on the grade in the MSP dam  HM grades and recoveries are expected to be low as this material was the most difficult to recover during previous operations  a further benefit is that the area around the MSP can be treated through this temporary plant and made free of low level radioactive material

The benefits of Options 3 and 4 are that all solids will be removed as HMC and all process water will be circulated through the PCP dam, thus removing all low level radioactive materials from the MSP dam. All potentially low level radioactive wastes will be stored temporarily within the PCP ponds until mining operations commence at which point they will be piped back to the in-void tailings cell for encapsulation.

This rehabilitation work would be undertaken in accordance with radiation management procedures outlined by the Environment Protection Authority (Radiation Protection Control Branch) and detailed in an approved Radiation Management Plan.

8.3.4 Summary of environmental outcomes and completion criteria

The environmental outcomes and completion criteria are included in Table 8.12. The completion criteria will be used by MZ, DMITRE and other independent auditors to assess the progress towards or compliance with the outcomes.

The completion criteria have to be as clear and measurable as is practicable and will form the basis for conditions of lease relinquishment. During the mining operations and progressive rehabilitation, the outcomes and completion criteria may be reviewed and revised where necessary.

As required in the Lease Conditions, leading indicator criteria have been developed for each of the lease conditions and outcomes related to mine rehabilitation and closure. Leading indicator criteria are designed to, if monitored, give early warning that the control strategy is failing and the outcome is potentially at risk of not being achieved.

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Table 8.12 Mine closure and rehabilitation – outcomes and completion criteria Mindarie A(2)

Closure and rehabilitation – Mindarie A(2) Outcome Measurement criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Final landforms and vegetation At completion of Topography of mined Mined area Integrated At completion of Surrounding will be integrated and rehabilitation the topography area will be surveyed landform with rehabilitation landscape harmonised with the of the mined area will be elevated crown surrounding landscape surveyed for integration with on mined areas surrounding landscape and presence of elevated crown The site will be physically Records at completion of Records indicates Lease area All overburden, At completion of Soil Dig stable rehabilitation indicate that all overburden, subsoil and subsoil and rehabilitation Procedure and overburden, subsoil and topsoil stockpiles are topsoil stockpiles Permit Register topsoil within the lease are replaced in sequence are replaced in replaced using using separate layers scrapers/landplanes in scrapers/landplanes in similar order separate layers in similar as removed order as removed in accordance with the Soil Dig Procedure All mine waste materials left Appropriate geotechnical Soil density using 100 metre Within ±15 % of At completion of Adjacent un- on site will be chemically and testing, such as dynamic geotechnical testing spacing along adjacent un- rehabilitation mined areas physically stable cone penetrometers, at 100 (such as DCP). the centreline of mined (cropped metre spacing along the the strand areas) or similar centreline of the strand at the use completion of rehabilitation indicate that post mining rehabilitated surface is within ±15 % of adjacent un-mined (cropped areas) or similar use

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Closure and rehabilitation – Mindarie A(2) Outcome Measurement criteria Criteria What will be measured Locations Target value Frequency Control data (and how) Leading indicator Records indicates Lease area All overburden, Weekly Soil Dig Weekly review of records overburden, subsoil and subsoil and Procedure and during rehabilitation indicate topsoil stockpiles are topsoil stockpiles Permit Register all overburden, subsoil and replaced in sequence are replaced in topsoil within the lease are using separate layers replaced using scrapers/landplanes in similar order scrapers/landplanes in as removed separate layers in similar order as removed in accordance with the Soil Dig Procedure Where applicable for all Annual ecosystem Assessment of Rehabilitated Ecosystem Annual until Control sites A1, disturbed areas there will be assessment by suitably ecosystem sustainability areas adjacent to sustainability ecosystem B1 and C1 either re-establishment of the qualified third party of by suitably qualified third native vegetation sustainability pre-mining native ecosystem rehabilitated areas of native party survey locations reached and landscape function or pre vegetation (refer to locations (refer to locations mining cultivated land use and A2, B2, C2 in Figure 4.9, A2, B2, C2 in productivity Appendix L) in comparison to Figure 4.9, control sites A1, B1 and C1 Appendix L) have achieved or are predicted to reach ecosystem function Annual crop yield measured Crop yield measured as Previous mined Best 3 of 5 Annually for Baseline as tonnes per hectare or tonnes/hectare or areas cropping period of 5 years historical data bags per hectare based on bags/hectare as seasons of the following closure prior to the best 3 of 5 cropping appropriate returned mining commencement seasons of previously mined area is to equal of mining area is equal to (i.e. 95%) or (i.e. 95%) or operations better than the comparable better the yield from the applicable comparable yield landholders adjoining from the paddock (for a period of applicable 5 years following closure) landholders based on historical data prior adjoining to the commencement of paddock mining operations

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Closure and rehabilitation – Mindarie A(2) Outcome Measurement criteria Criteria What will be measured Locations Target value Frequency Control data (and how) There will be no compromise Annual groundwater quality Ground water samples Existing Average per Annually for Existing of the quality and quantity of measurements (for EC, pH, analysed for electrical monitoring wells, monitoring well period of 3 years groundwater ground and/or surface water to uranium, thorium, TDS) from conductivity, pH, landholder wells not to exceed following closure quality data existing users and water each existing monitoring uranium, thorium, and and production two standard (unless (Appendix N) dependent ecosystems well, landholder wells and total dissolved solids wells (refer deviations of transferred to production wells (refer Figure 5.4, baseline mean landowners) Figure 5.4, Appendix L) do Appendix L) conditions not exceed existing baseline conditions by two standard deviations Annual records indicate that Groundwater extraction Production wells Average 42GL Annually for Authorisation to annual groundwater rates per water use year (refer to over 10 years period of 3 years Take Water extraction rates of production by water flow meter Figure 5.4, and not following closure, (Natural wells (measured by flow Appendix L) exceeding 6GL unless Resources meter) are in accordance per water use transferred to Management Act with approved Water year landowners 2004) and Allocation Plan (average existing 42GL over 10 years and not groundwater exceeding 6GL per water extraction data use year)

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8.3.5 Compliance with other environmental conditions

DMITRE has specified other environmental conditions for which no outcome has been established. The issues and control and management strategies are presented in Table 8.13 below.

Table 8.13 Other environmental conditions and compliance assessment – mine closure and rehabilitation Mindarie A(2)

Condition Management strategy PEPR Progressive rehabilitation The Lessee must undertake rehabilitation of mining operations will be undertaken MZ commits to rehabilitation of mining operations as outlined Section 8 in accordance with an integrated Mining and Rehabilitation Plan as approved in in the progressive rehabilitation schedule provide in this Appendix N the PEPR to ensure that post-mining crop productivity is equal to or better than PEPR and the Rehabilitation and Mine Closure Criteria Plan. crop productivity in the adjoining paddocks and is sustainable in the long term The Lessee must ensure that the PEPR submitted under Section 70B of the This PEPR specifies the maximum area of disturbed land Section 5.1.1 Mining Act 1971 specifies the maximum area of disturbed land that the whole that the whole operation will not exceed at any time specifies Table 5.2 operation will not exceed at any time a rehabilitation schedule and commitment to reporting Maximum areas must be specified for each of the following: monthly to the Director of Mines. . the length and area of land that has been either stripped of topsoil, or is awaiting reinstatement of topsoil . the length and area of land that has been either stripped of subsoil, or is awaiting reinstatement of subsoil . the length and area of land that has either had overburden removed, or is awaiting reinstatement of overburden. Once approved in the PEPR, the length of the above disturbed areas must be reported monthly and the area reported quarterly to the Director of Mines. The Lessee must ensure that the PEPR submitted under Section 70B of the Progressive rehabilitation schedule is provided in this PEPR. Section 8 Mining Act 1971 specifies a rehabilitation schedule (with a firm commitment to timeframes) for previously disturbed areas

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8.3.6 Closure management

Table 8.14 contains additional rehabilitation and mine closure management strategies developed to mitigate the environmental impacts.

Table 8.14 Management strategies – rehabilitation and mine closure

No. Commitment Evidence to support achievement of completion criteria Post mining landform 1 Reshape the land disturbed by mining to a The land disturbed by mining operations is landform that is consistent with surrounding returned to a stable landscape conditions and allows achievement of commensurate with the adjacent landforms. outcome. This landform will be stable, The slopes (for the mounds and voids only) adequately drained and suitable for cropping, shall be pushed back to a maximum of 1:4 if and match the characteristics of the unable to be reconciled. immediately adjacent unmined land surface. Rehabilitation activities – agricultural land 2 Landowners will be involved in the cropping Monitoring results that demonstrate the land of agricultural land. This may include disturbed by mining operations has not been harrowing and enriching the topsoil through compromised by contamination, including addition of fertiliser and planting temporary weeds, radiation, and soil and groundwater crop or providing advice. If the landowner contaminants. does not select to undertake the work the Company or its contractors will undertake the work. 3 The replanted areas will be monitored for Photo records established and maintained adequate regrowth until the crop/pasture is for revegetated areas throughout the appropriately self-sustaining and meets the rehabilitation and monitoring period. reasonable requirements of the landowner. Rehabilitation activities – native vegetation 4 Plants used will be of local provenance, Tubestock appropriately sourced with however the provenance boundary may vary assistance from East Murray Area School. depending on the availability of seed source and given the scattered nature of vegetation patches within the broad project site. Wherever possible and viable, locally rare or endangered species may be added to the list in consultation with local experts. Limited use of tubestock will be used to augment direct seeding, and irrigation will be provided where planting is not able to be undertaken in winter months. 5 Reestablishment of vegetation in these areas Photo records established and maintained will be monitored with special attention given for revegetated areas throughout the to preventing weed invasion and maintaining rehabilitation and monitoring period. soil moisture by respreading leaf litter and other local material. Living mulch species (e.g. chenopods) and native grass seed will be added to the seed mix as well. 6 The revegetated areas will be monitored for Physical stability (resistance to erosion). at least two years to verify successful No increase in weeds spread or species. establishment, although monitoring will be extended to the life of the lease at a lesser No further irrigation or replanting required. intensity. Sustainability of site (e.g. ongoing regeneration from planted/seeded material). Results of the visual monitoring of the revegetated areas to verify successful establishment. Soil management and reuse

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No. Commitment Evidence to support achievement of completion criteria 7 Where identified as necessary by initial soil Soil testing results. characterisation, additional soil testing (nutrients, pH, EC and toxicity factors) for the top and sub soil materials will be undertaken prior to reuse. 8 Sampling and characterisation of the Yield based on the criteria of selecting data rehabilitated soils will be undertaken to from the best 3 of 5 cropping seasons of the determine the need for the addition of any returned mining area is to average not less elements e.g. phosphorus, zinc, copper, than 95% of the comparable yield from the possibly manganese to obtain the applicable landholders adjoining paddock appropriate levels of these elements for (the same paddock once MZ's fencing has agricultural use or establishment of native been removed). vegetation where this is recommended by the environmental scientist or agronomist. 9 Where necessary gypsum, calcium nitrate or Soil characterisation analysis results fertiliser will be applied to soil when recommended by the soil characterisation analysis.

8.3.7 Post closure monitoring and management

Monitoring of rehabilitation and mine closure management activities are detailed in Table 8.15 below.

Table 8.15 Monitoring activities and requirements – rehabilitation and mine closure

Activity Frequency Parameters Rehabilitation activities – agricultural land Soil assessment During/immediately Soil type, soil quality, soil density, soil depth in after rehabilitation order to compare post mine soil assessment activities (one off to pre-mine soil assessment assessment) Agricultural yield Post rehabilitation Yield based on the criteria of selecting data assessment from the best 3 of 5 cropping seasons of the returned mining area is to average not less than 95% of the comparable yield from the applicable landholders adjoining paddock (the same paddock once MZ's fencing has been removed). Rehabilitation activities – native vegetation Soil assessment During/immediately Soil type, soil quality, soil depth in order to after rehabilitation compare post mine soil assessment to pre- activities (one off mine soil assessment assessment) Native vegetation Post rehabilitation – Successful establishment of revegetated survey annually until identified areas. that outcome has been Weeds occurrence. achieved. Visual Inspection Annually until lease Vegetation condition relinquishment Weeds occurrence

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Activity Frequency Parameters Mine closure Visual inspection Post rehabilitation Final landform suitable and agreed to by landowner. All other mining infrastructure removed in agreement with landowner.

8.3.8 Closure cost estimate/bond

The cost estimate for rehabilitation of the site has been prepared using actual costs for the current rehabilitation of Mindarie A(2), the NSW Rehabilitation Cost Calculator, and additional cost sought from suppliers. The cost estimate is based on the assumption that a third party undertakes the rehabilitation and decommissioning works at the end of mine life and that there is no revenue from re-saleable items.

It should be noted that there is value for the equipment in the PCP if sold as second hand equipment. For example the spirals (cost $1.335M in 2006/2007) were used for two years and with a life of eight years would still be useable on other mineral sand projects. Assuming the value has dropped by 50% then these spirals could be worth in the order of $667,000. The cost to remove the PCP has been calculated to be $381,500.

It is not unreasonable to expect a liquidator to dispose of the PCP through:

 sale of steel as scrap metal  sale of pumps and other equipment  sale or transfer to second hand equipment supplier for on-selling.

It likely that the sale of the PCP and associated equipment would generate funds in excess of those calculated for removal.

Under the conditions of the Mineral Lease, before commencing operations, MZ will lodge a bond of AUD$ 1,379,650 as surety to cover the full cost of rehabilitation liability for Mindarie A(2), including the PCP (Table 8.15).

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Table 8.16 Closure cost estimate

Mindarie A2 Rehabilitation closure cost estimate in the event of liquidation or administration

Item # Operations/aspect Unit of Measure No. of Units rate $/unit Estimated cost ($) 1 Top and sub soil replacement 116 $543,291 2 Overburden replacement Complete 3 Grader boarding for overburden, subsoil and topsoil Complete 5 Rolling Subsoil $43,719 7 Sub Soil Crusting Ha 116 $377 $43,719 8 Gound Preparation including spraying for weeds and rust, seeding, fertilizer Ha 116 $215 $24,940 9 Demobilization of heavy equipment $55,000 12 Spill Disposal per event but aim for nil events 2 $1,440 $2,880 13 Fence replacement km 9 $1,200 $10,800 14 Exploration Bores decommissioned Not applicable 15 Production Bores decommissioned per bore 5 $710 $3,550 Subtotal (domains and sundry items) $727,899 Contingency @ 10% $72,790 Mobilization $55,000 Tender Preparation/assessment $5,000 Unplanned final closure plan $25,000 Post closure environmental monitoring $76,066 Project management and surveying $36,395

Total Mindarie A2 project cost estimate $998,150

Disassemble the PCP on the A2 lease and transport to Adelaide

Item # Operations/aspect Unit of Measure No. of Units rate $/unit Estimated cost ($) 1 Clear site before and after removal $20,000 2 Disconnect power, cables and separate modules $150,000 3 Hire Trucks to move equipment and steel return rate ADL 40 $700 $28,000 4 Hire Floats to move equipment and steel return rate ADL 10 $1,400 $14,000 5 Hire Cranes - 50 hours @ $280p/h + $5,000 mobilization X 2 $24,000 6 Riggers to lift off steel and equipment - 2 riggers for 20 days daily rate 40 $600 $24,000 7 Fitters to dismantle steel work - 4 fitters for 25 days daily rate 100 $600 $60,000 8 Supervisor for 4 weeks - 1 supervisor for one month daily rate 25 $800 $20,000 9 Electrician - 1 electrician for 10 days daily rate 10 $700 $7,000 10 Crates for spiral separators crate 23 $1,500 $34,500 TOTAL for PCP removal $381,500

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8.3.9 Mine closure schedule

Table 8.17 outlines the rehabilitation measures proposed to be undertaken, and the timing for remaining work. Current rehabilitation areas are shown in Figure 4.12, Appendix L.

Table 8.17 Rehabilitation strategy and schedule 2011/12

Area Task Detail Timing Strand A(2) 1 Overburden replacement complete January 2012 West 1b Subsoil replacement complete January 2012 (Area 1) 1c Topsoil replacement complete February 2012 1d Seeding April 2012 1e Monitoring Ongoing Strand A(2) 2 Overburden replacement complete December 2011 West 2a Subsoil replacement complete February 2012 (Area 2- backfill dam) 2b Topsoil replacement complete February 2012 2c Seeding April 2012 2d Monitoring Ongoing Mindarie C 3 Overburden replacement complete November 2011 (Area 3) 3a Subsoil replacement complete November 2011 3b Topsoil replacement to commence March 2012 3c Seeding April 2012 3d Monitoring Ongoing Strand A(2) 4 Overburden replacement complete January 2012 East (Area 4) 4a Subsoil replacement complete January 2012 4b Topsoil replacement to commence March 2012 4c Seeding April 2012 4d Monitoring Ongoing Strand A(2) 5 Overburden replacement complete December 2011 East (Area 5) 5a Subsoil replacement complete December 2011 5b Topsoil replacement commenced February 2012 5c Seeding April 2012 5d Monitoring Ongoing PCP dam 6a Complete November 2011 (Area 6) A(2) Tailings 6b Removal of remaining heavy mineral component May 2013 and MSP within tailings and reprocess through PCP rejects dam (Area 6) Wet voids 7 Complete December 2011 7a Complete December 2011

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9. Management systems and capability

The proponent of the Mindarie C project is Murray Zircon Pty Ltd (MZ), a joint venture between Guangdong Orient Zirconic Ind Sci and Tech (Orient Zirconic) and Australian Zircon NL (AZ).

MZ will be the owner and operator of the Mindarie Mineral Sand Project.

9.1 Commitment and leadership

As part of the overall Mindarie Mineral Sand Project, various management system processes, procedures and standards have been developed and introduced during the Mindarie A (2) mining operations. MZ has reviewed these policies and procedures and revised them if required.

These elements of a management system have been (and will be) implemented to assist the company in achieving continuous performance improvement in all areas of the project including operations, environmental and occupational health and safety management.

While the management system in which the project is operated has not been accredited/certified, elements of the system have been developed with reference to the following standards:

 AS/NZ ISO 9000 – Quality Management Systems  AS/NZ ISO 14001 – Environmental Management Systems  AS/NZ 48001 – Occupational Health and Safety Management Systems  AS/NZ 3806 – Compliance programs  AS/NZ 4360 – Risk Management.

MZ is committed to ensuring that all its operations and activities are conducted in a manner that minimises impacts on the environment including:

 conduct operations with the objective of achieving best practice  conduct operations with the objective of achieving all agreed environmental and social outcomes  continuously improve operations in order to minimise environmental impacts and maximise environmental benefits  comply with regulatory requirements and relevant legislation  continuously consult with the local community and relevant stakeholders.

9.2 Policies and objectives

9.2.1 Environmental policy

In November 2011, the MZ Environmental Policy was issued by the Chief Executive Officer Eddy Wu, a copy of which is included in Appendix H.

The company recognises that its operations have an environmental impact and has adopted an approach of proactively managing activities and adopting techniques which minimize environmental harm. The company also recognises the rights of others in the environment.

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MZ is committed to ensuring that all its operations and activities are conducted in a manner that minimises impacts on the environment. The Environmental Policy is considered to be a mechanism of this commitment.

9.2.2 Procedures and practices

In order to facilitate safe and environmentally sound operations of the Mindarie Zircon Project, MZ has reviewed and adopted a number of procedures and practices established during the Mindarie A(2) operations to ensure that activities on site (by both contractors and MZ employees) are undertaken in such a manner to ensure compliance with statutory obligations including Mining Lease conditions.

Continual improvement will result in these procedures being revised as required. Revisions of these procedures will not result in revisions of this PEPR. The status and revisions of these procedures should be checked prior to use.

MZ will comply with all applicable environmental laws, regulations, approvals and codes of practice as set out in Section 3 of this PEPR.

9.3 Organisation, resources and documentation

9.3.1 Organisation structure and resources

MZ has a board of directors (3) and number of executives supported by a company secretary and contract support staff (e.g. information technology) (refer Figure 9.1, Appendix L).

MZ will manage the Mindarie Mineral Sand Project throughout operation. The Mine Manager will be responsible for ensuring that all project activities are undertaken in full compliance with statutory regulations and are consistent with MZ’s policies, procedures and management systems. The Mine Manager will ensure all contractors fulfil their contractual obligations and comply with company policies and procedures.

The company’s organisational structure will be reviewed on a regular basis to ensure it has the capacity for meeting its regulatory and corporate requirements. Safety and Health Management responsibilities and authorities for employees shall be documented, implemented and reviewed. The responsibilities, authorities, and the interrelation of all employees and contractors who manage, perform and verify work affecting safety shall be defined in operating procedures.

Additional information regarding resources for the project has previously been discussed in Section 5.1–6.1.

9.3.2 Documentation

9.3.2.1 Site inductions

A comprehensive site induction is undertaken for all employees and contractors to ensure that all workers on the project have a thorough understanding of:

 the environmental issues associated with the project  the environmental management requirements for the project (i.e. those requirements as outlined in this PEPR)  their responsibilities in relation to minimising the environmental impacts associated with the operations.

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The MZ Environmental Induction includes (but is not limited to) details on:

 waste management  radiation safety  soil conservation and dust  no-go zones (e.g. soil stockpiles, rehabilitated areas etc.)  hydrocarbon spills  heritage (Aboriginal and European)  traffic code of conduct

9.3.2.2 Training and supervision

In addition to the general inductions, ongoing supervision of employees and reinforcement of issues is provided through specific work area inductions and ‘tool box meetings’. These meetings include topics on health, safety, environmental and communications issues that arise.

Specific work-skills training is also provided and includes:

 environmental and radiation inductions  heat stress  Job Safety Analysis risk management  hazardous substances  tip truck operations  senior first aid  confined space and entry permit training  manual handling.

9.3.2.3 External communications

As outlined in Section 6 MZ has adopted a consultative approach in its community and stakeholder management. To ensure that stakeholders and the community are well-informed consultation has included:

 bi-monthly Murray Mallee Community Consultative Committee (MMCCC) meetings  MMCCC Sub-committee meetings (as required)  quarterly updates printed in the District Council of Karoonda East Murray community newsletter  newsletter available for download from MZ website  information booths at local and regional community events.

9.4 Risk evaluation and management

Risk identification, assessment and management are integral to MZ’s operations. Risk management processes are implemented in various forms across all levels and activities of the company and include:

 job safety analysis  contractor management  management review.

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9.4.1 Job safety analysis

Job Safety Analysis (JSA) is a functional component of the MZ approach to risk management. JSAs are undertaken for existing and new activities and when changes to existing activities are proposed in order to identify the safest way to complete the task.

The JSA process involves five steps:

 documenting the activity  identifying the hazards (including environmental where applicable)  documenting the control measures  identifying responsibility  monitoring and review.

The employee training program implemented by MZ includes a program to provide employees with the skills to complete JSAs.

9.4.2 Contractor management

MZ will finalise a plant and equipment contract with an external supplier which requires the supplier to demonstrate that the plant and equipment being used on the Mindarie Mineral Sands Project are maintained and serviced according to specifications and that there is an ongoing assessment of the “fitness for purpose” of the equipment.

9.4.3 Management review

Risk identification, assessment and management activities are continuously reviewed by MZ management representatives through participation in the process as well as management review activities.

9.5 Planning

Environmental emergency management responsibilities are shared by both MZ and site contractors (MZ takes the lead role). A comprehensive induction is undertaken (refer Section 9.3.2).

In addition to the induction provided for employees and contractors, MZ will review and implement the previous developed Emergency Response Manual (Version 1 – 21/6/06). The Manual details responsibilities and requirements in the event of the following emergency situations on site:

 evacuation  fire  explosion, emission of toxic gases  large chemical/fuel spill  environmental emergency (e.g. tailings slurry spill).

9.6 Implementation, recording and monitoring

Inspections and audits are undertaken on a regular basis to assess the ongoing environmental performance of the project and the implementation of the PEPR.

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Records of all inspections (completed inspection checklists) and audits are maintained on Project Files for review as may be required.

The MZ Environmental Manager is responsible for:

 establishing the non-conformance and corrective action procedures and requirements associated with the requirements of the PEPR  in the event a non-conformance with the PEPR, issue a Non Conformance/Corrective Action Request Form outlining the details of the non-conformance  follow up and verify the implementation of the corrective action that was required  keeping details of all non-conformances and corrective action requests issued on the project on project files.

This PEPR contains details regarding the implementation, recording and monitoring of environmental elements associated with the mineral lease tenements associated with the project.

9.7 Audit and review

9.7.1 PEPR review and amendments

Review of the PEPR will be undertaken annually by MZ to assess how operations have progressed and to identify whether amendments to the PEPR are required. It is envisaged that this review will be undertaken as part of the Annual Compliance Report preparation process. In the event that the PEPR requires updating, the amended document will be submitted to DMITRE for approval. In addition, the PEPR will be revised in the event that MZ considers that changes in operation or activities results in the potential to impact environmental outcomes.

9.7.2 Annual Compliance Report

As required by Mining Lease Condition 2, DMITRE require MZ to provide an Annual Compliance Report detailing operations carried out on the mineral lease and compliance with the approved PEPR and lease conditions. The Annual Compliance Report must be provided to DMITRE within two months of the anniversary of the lease grant (or at an alternate period as agreed with DMITRE).

This report is required to summarise compliance monitoring activities, and provide some evidence that the lease is compliant with regulatory requirements. DMITRE will use the reports to better target compliance monitoring activities, and a detailed report that clearly demonstrates compliance may result in reduced compliance monitoring and enforcement activities by DMITRE.

As specified in the lease conditions, annual Compliance Reports prepared by MZ will in general be made available to the public.

Previously an Annual Environmental Report was required to be submitted in addition to the Annual Compliance Report. This is no longer required, thus MZ will ensure that all environmental compliance aspects will be included in the Annual Compliance Report.

The contents of the Annual Compliance Report are not specified in the lease conditions, however the following issues in general will be addressed:

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 summary of the major mining activities undertaken in the reporting year and proposed activities for the following year  summary of environmental management and rehabilitation activities for the reporting year and proposed activities for the following year  a summary of consultation and any complaints received from third parties  a statement of compliance with the obligations under the lease conditions, and the approved PEPR for the year  a statement of action taken to rectify any non-compliance detected either by PIRSA inspections, or internal monitoring, and to prevent recurrence  a statement on the effectiveness of any previously undertaken action to rectify non- compliance  any new environmental hazards detected during the year, that were not previously documented to DMITRE (e.g. at the time the PEPR was approved); and  environmental incidents that have occurred and how these incidents were managed.  results of monitoring activities undertaken on site for operation and rehabilitation

The Annual Compliance Reports shall also be prepared in accordance with Regulation 86(1)(a) and the Mining Lease conditions.

MZ will engage a third party to undertake an external audit of the Annual Compliance Report process.

No specific official review of the MZ management system elements is undertaken, rather, the system elements are reviewed as considered necessary (and as identified during ongoing implementation and use).

Proposed changes to the MZ management system include the implementation of an annual system review.

9.8 Previous experience of operator

MZ is a joint venture between AZ (responsible for mining operations on Mindarie A(2) and section of Mindarie C West) and Orient Zirconic. As part of the previous mining operations, AZ has developed, commissioned and commenced operations associated with the Mindarie Mineral Sands Project.

The composition of the project team management reflects corporate and operational experience relevant to all project phases including exploration, feasibility studies, project development and operation.

9.9 Lease conditions

Sixteen lease conditions have been stipulated by DMITRE for mining of the Mindarie C and A(2) Mining Leases and are included in Appendix K.

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10. References

DCKEM 2011. District Council of Karoonda East Murray. http://www.dckem.sa.gov.au/site/page.cfm. Accessed 10 August 2011.

Australian Bureau of Statistics (ABS) (2006). 2006 Census Quick Stats: Karoonda East Murray (DC) Local Government Area.

Australian Zircon (2010). Mining and Rehabilitation Compliance Report 2009.

Brown CM & Stephenson AE 1991. Geology of the Murray Basin, Southeastern Australia. bulletin 235, Bureau of Mineral Resources, Geology and geophysics, Australian government Publish Service, Canberra.

Bureau of Meteorology (BOM) (2011a). Daily Rainfall for Mindarie South Australia, accessed August 2011

Bureau of Meteorology (BOM) (2011b). Mean Temperatures for Karoonda South Australia, accessed August 2011

Department for Environment, Water, Heritage and the Arts (DEWHA) (2009). Matters of National Environmental Significance, Significant Impact Guidelines v 1.1.

Department of Environment and Heritage (DEH) (2002). Updated Remnancy Figures for Environmental Associations.

Department of Environment and Heritage (DEH) (2008). Extract from the Biological Databases of South Australia for the Mindarie C Project.

Department of Environment and Natural Resources (DENR) (2010). Regional Species Conservation Assessments, DENR Murraylands Region; Complete Dataset for all Flora Assessments, July 2010.

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PARSONS BRINCKERHOFF 11-0773-10-2162559A Page 239

Appendix A

Certificates of Title

Appendix B

Dust Monitoring Reports (July 2008–2009)

Appendix C

Noise Assessments

Appendix D

EBS Biodiversity Survey

Appendix E

Management Plans

Appendix F

Mining Lease Number 6226

Appendix G

Mindarie C Environmental Risk Assessment

Appendix H

Environmental Policy

Appendix I

Community Consultation Plan

Appendix J

Guide to information location in the PEPR

Appendix K

Lease Conditions

Appendix L

Figures

Appendix L Figures

Figures

Figure 1.1 Mindarie Zircon Project Figure 1.2 Mindarie C Mineral Lease (ML 6226) General Layout Figure 4.1 Residential properties and educational buildings in vicinity of Mindarie C and A(2) strandline Figure 4.2 Dust monitoring locations Figure 4.3 Noise Modeling Locations Figure 4.5 Geology Figure 4.7 Soils (including soil sampling locations) Figure 4.8 Water bores Figure 4.9 Site vegetation associations Figure 4.10 Location of Indigenous Heritage Sacred Site Figure 4.11 Conservation areas Figure 4.12 Rehabilitation areas Figure 4.13 Regional transport network Figure 5.1 Mining sequence diagram Figure 5.2 Mining schedule Figure 5.4 Monitoring and supply water bores Figure 5.8 Plant site plan Figure 5.9 Accommodation village Figure 5.10 Proposed transport route Figure 5.13 Indicative location of stockpiles Figure 8.1 Indicative rehabilitation of mine pit (domain 1) Figure 8.2 Indicative locations of currently uncropped land Figure 8.3 Indicative horizontal cross section of rehabilitated mining lease Figure 9.1 Organisational structure

PARSONS BRINCKERHOFF 11-0773-10-2162559A Page L.1

Appendix M

Rehabilitation and mine closure criteria plan

Appendix N

Mindarie Baseline 2010