Social and Economic Bauxite Hills Project Environmental Impact Statement
Metro Mining Appendix H2 - Metro Mining Community and Metro Mining Metro Mining Social Responsibility Policy Chapter 16 - Social and Economic Bauxite Hills Project Environmental Impact Statement
Environmental Impact Statement
Table of Contents
16 Social and Economic ...... 16-1 16.1 Project Overview ...... 16-1 16.2 Regulatory Framework ...... 16-2 16.2.1 Queensland State Planning Policy ...... 16-2 16.2.2 Environmental Protection Act 1994 ...... 16-2 16.2.3 Social Impact Assessment Guideline 2013...... 16-3 16.2.4 Cape York Regional Plan 2014 ...... 16-3 16.2.5 Cook Shire Planning Scheme 2007 and Draft Planning Scheme 2014 ...... 16-5 16.3 Relevant Programs and Plan...... 16-7 16.3.1 Cook Shire Community Plan 2011-2021...... 16-7 16.4 Objectives and Performance Outcomes ...... 16-8 16.4.1 Protection Objectives...... 16-8 16.4.2 Performance Outcomes ...... 16-8 16.5 Assessment Method ...... 16-9 16.5.1 Social Impact Assessment ...... 16-9 16.5.2 Economic Assessment ...... 16-12 16.5.3 Economic Contribution Assessment ...... 16-12 16.6 Existing Social and Economic Environment ...... 16-14 16.6.1 Existing Social Environment ...... 16-14 16.6.2 Existing Economic Environment ...... 16-26 16.6.3 Socio-Economic Indexes ...... 16-27 16.7 Potential Impacts ...... 16-32 16.7.1 Social Impacts ...... 16-32 16.7.2 Economic Impacts ...... 16-38 16.8 Cumulative Social Impacts ...... 16-41 16.8.1 Surrounding Projects and Scheduling ...... 16-41 16.8.2 Potential Cumulative Impacts ...... 16-44 16.9 Management and Mitigation Measures ...... 16-47 16.9.1 Social Management and Mitigation Measures ...... 16-47 16.9.2 Economic Management and Mitigation Measures ...... 16-54 16.10 Qualitative Risk Assessment ...... 16-55 16.11 Summary...... 16-59 16.12 Commitments ...... 16-60 16.14 ToR Cross-reference ...... 16-61
List of Figures
Figure 16-1 Regulatory boundaries and Cape York Regional Plan ...... 16-6 Figure 16-2 Social impact study area ...... 16-11 Figure 16-3 Cooktown population pyramid ...... 16-19 Figure 16-4 Mapoon population pyramid ...... 16-20 Figure 16-5 Weipa population pyramid ...... 16-21 Figure 16-6 Napranum population pyramid ...... 16-22 Figure 16-7 Northern Peninsula population pyramid ...... 16-23 Figure 16-8 Aurukun population pyramid ...... 16-24 Figure 16-9 Cairns population pyramid ...... 16-25 Figure 16-10 Relative socio-economic disadvantage ...... 16-28
i Bauxite Hills Project Social and Economic
Figure 16-11 Relative socio-economic advantage and disadvantage ...... 16-29 Figure 16-12 Economic resources ...... 16-30 Figure 16-13 Education and occupation ...... 16-31 Figure 16-14 Timeframe for Bauxite Hills and surrounding projects ...... 16-43 Figure 16-15 Surrounding projects ...... 16-46 Figure 16-5 IAP2 public participation spectrum and levels of engagement ...... 16-52
List of Tables
Table 16-1 Challenges facing the Cook Shire identified in the community plan ...... 16-7 Table 16-2 Strategies identified in community plan to address social and economic challenges ...... 16-8 Table 16-3 Measures of economic contribution ...... 16-13 Table 16-4 Anticipated capital expenditure ($m), FNQ Region and rest of Queensland ...... 16-13 Table 16-5 Community population in comparison to Queensland population ...... 16-16 Table 16-6 Community statistics ...... 16-16 Table 16-7 Indigenous population in comparison to Queensland’s Indigenous population ...... 16-17 Table 16-8 Labour force and employment statistics...... 16-17 Table 16-9 Population change and projections ...... 16-18 Table 16-10 Summary of statistics ...... 16-26 Table 16-11 Underlying regional economic trends ...... 16-26 Table 16-12 Relative socio-economic disadvantage ...... 16-28 Table 16-13 Index of relative socio-economic advantage and disadvantage ...... 16-29 Table 16-14 Index of economic resources ...... 16-30 Table 16-15 Index of economic resources ...... 16-31 Table 16-16 Beneficial and adverse impacts ...... 16-38 Table 16-17 Summary of construction phase contribution ...... 16-38 Table 16-18 Summary of average annual operational phase (2016 to 2043) contribution ...... 16-39 Table 16-19 Qualitative risk assessment – social and economic ...... 16-55 Table 16-20 Commitments – social and economic ...... 16-60 Table 16-21 ToR cross-reference – social and economic ...... 16-61
ii 16 Social and Economic
This chapter summarises the socio-economic impact assessment undertaken for the Bauxite Hills Project. This includes the assessment method, relevant regulatory framework, existing environment, potential beneficial and adverse impacts and proposed mitigation measures to minimise social and the economic impacts on the region, state and nation. The chapter is supported by a technical economic assessment report provided in Appendix H – Economic Technical Assessment. 16.1 Project Overview Aldoga Minerals Pty Ltd (Aldoga), a 100% owned subsidiary of Metro Mining Limited (Metro Mining), proposes to develop the Bauxite Hills Project (the Project) located on a greenfield site on the western coastline of Cape York, Queensland, approximately 35 kilometres (km) northeast of Mapoon. The Project will include an open cut operation, haul roads, Barge Loading Facility (BLF), Roll on/Roll off (RoRo) facility, transhipping and will produce and transport up to 5 million tonnes per annum (Mtpa) of ore over approximately 12 years. The mine will not be operational during the wet season.
The Project is characterised by several shallow open cut pits that will be connected via internal haul roads. The internal haul roads will be connected to a main north-south haul road that will link with the Mine Infrastructure Area (MIA), BLF and RoRo facility located to the north of the pits on the Skardon River. Bauxite will be screened in-pit and then hauled to the product stockpile using road train trucks.
Bauxite from the Project is suitable as a Direct Shipping Ore (DSO) product (i.e. ore is extracted and loaded directly to ships with no washing or tailings dams required). Bauxite will be transported by barge via the Skardon River to the transhipment site, approximately 12 km offshore, and loaded into ocean going vessels (OGVs) and shipped to customers. No dredging or bed-levelling for transhipping is proposed as part of this Project
OGVs of between 50,000 to 120,000 tonne (t) each. will be loaded at the transhipment anchorage site. Vessels will be loaded and bauxite will be transported to OGVs 24 hours per day with barges having an initial capacity of approximately 3,000 t to meet early production volumes, increasing up to 7,000 t as the Project reaches a maximum production volume of 5 Mtpa.
The construction of the mine is due to commence in April 2017 and is expected to take seven months to complete. The first shipment of bauxite is planned for October 2017. The Project will be 100% fly-in fly-out (FIFO) due to its remote location. The Project will operate over two 12 hour shifts per day for approximately eight months of the year and is expected to employ up to 254 employees during peak operations. In addition to the workforce, it is expected that the Project will result in the employment of additional workers through local and regional businesses servicing the accommodation camp and the construction and operation of the mine.
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16.2 Regulatory Framework With exception of the requirements to demonstrate compliance with the Project Terms of Reference (ToR) there is no specific Commonwealth or Queensland State legislative requirements that guide the assessment and approval of social and economic matters. Nevertheless, the following documents are relevant to the assessment and have been discussed in this section:
. Queensland State Planning Policy;
. Environmental Protection Act 1994;
. Social Impact Assessment Guideline 2013 (Department of State Development, Infrastructure and Planning 2013);
. Cape York Regional Plan 2014; and
. Cook Shire Planning Scheme 2007 and Draft Planning Scheme 2014.
16.2.1 Queensland State Planning Policy
The State Planning Policy (SPP), which commenced on 1 July 2014, sets out the state interests in planning and development, and contains 16 state interests that are important to protect and enhance through Queensland's continued development. While all of the State interests are in some way relevant to the social and economic environment of the Project area the interests within the overarching headings of ‘Liveable Communities and Housing’ and ‘Economic Growth’ are of particular relevance to this chapter. The specific interests within these overarching headings are:
. Liveable communities – Planning delivers liveable, well-designed and serviced communities that support wellbeing and enhance quality of life;
. Housing supply and diversity – Diverse, accessible and well-serviced housing and land for housing is provided;
. Agriculture – Planning protects the resources on which agriculture depends and supports the long-term viability and growth of the agricultural sector;
. Development and construction – Planning supports employment needs and economic growth by facilitating a range of residential, commercial, retail and industrial development opportunities, and by supporting a strong development and construction sector;
. Mining and extractive resources – Mineral, coal, petroleum, gas, and extractive resources are appropriately considered in order to support the productive use of resources, a strong mining and resource industry, economical supply of construction materials, and avoidance of land use conflicts wherever possible; and
. Tourism – Tourism planning and development opportunities that are appropriate and sustainable are supported; and the social, cultural and natural values underpinning the tourism developments are protected to maximise economic growth.
16.2.2 Environmental Protection Act 1994
Under the Section 8 of the Environmental Protection Act 1994 (EP Act) the environment and its values are taken to include “social, economic, aesthetic and cultural conditions”, and as such are considered aspects for protection under the Act. Environmental Impact Statements (EIS) prepared
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under the EP Act are required to assess the potential adverse and beneficial environmental, economic and social impacts of the Project in order to effectively propose environmental management measures (s40). In accordance with the EP Act, the ToR for the Project requires the development to:
. Describe the likely social impacts (positive and negative) on affected communities, in accordance with the Coordinator-General’s Social Impact Assessment Guideline 2013; and
. Describe the likely impacts (positive and negative) of the Project on the economies materially impacted by the Project.
A cross-reference to the ToR and where each requirement is addressed within the EIS is provided n Table 16-21.
16.2.3 Social Impact Assessment Guideline 2013
The Queensland Government Coordinator-General Social Impact Assessment Guideline 2013 provides a risk-based framework for assessing social impacts and emphasises the value of building long-term relationships between communities and stakeholders who are directly affected by the Project. The Guideline includes information on the role of the proponent and other relevant parties in the development and implementation of a Social Impact Assessment (SIA). The management measures, to be implemented by Metro Mining, are derived from the Social Impact Assessment Guideline and the tools provided by the International Council on Mining and Metals (ICMM).
The principles for SIA as per the Guideline are:
. The assessment should only address impacts (both beneficial and detrimental) arising from the Project and cumulatively with other developments in the region;
. Social impact mitigation incorporates the principles of adaptive management;
. The assessment covers the full lifecycle of the Project to the extent possible;
. The assessment is based on the best data available;
. The assessment should identify strategies to capitalise on social opportunities and to avoid, manage, mitigate or offset the predicted impacts arising from the Project; and
. Communities of interest will be engaged in a meaningful way during the development of the SIA, recognising local knowledge, experience, customs and values. Community participation should continue across the Project lifecycle.
The ToR for the Project requires that the assessment be completed in accordance with the Coordinator-General’s Social Impact Assessment Guideline 2013 and as such the above mentioned principles were taken to be the principles for this assessment.
16.2.4 Cape York Regional Plan 2014
The Cape York Regional Plan 2014 was prepared by the Queensland Government Department of Infrastructure, Local Government and Planning (DILGP) (formerly Department of State Development, Infrastructure and Planning) in August 2014. The Plan covers 11 local government areas including the Cook Shire Council Area in which the Project is located (Figure 16-1). The Cape York Regional Plan 2014 has been prepared to facilitate appropriate economic development in the region and identifies strategic land-use classifications to manage competing economic and
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environmental state interests. These classifications include Strategic Environmental Areas (SEA), National Parks, Priority Agricultural Areas (PAA) and Priority Living Areas (PLA).
The Cape York Regional Plan 2014 includes a PLA covering the township of Mapoon at the entrance of Port Musgrave, approximately 16 km southwest from the closest boundary of the Project. PLAs are an area of regional interest under the Regional Planning Interest Act 2014 (RPI Act) and they ensure that towns do not become encumbered by resources activities through the establishment of a buffer around the town growth areas. The Project is a significant distance from the Mapoon and will be located outside the buffer area.
The Cape York Regional Plan 2014 identifies a SEA to the south of Port Musgrave, covering the entrance of the Wenlock River to the shallow estuarine environment of the Port. SEAs are an area that contain regionally significant values for biodiversity, cultural values, water catchments and/or ecological function. Similar to PLAs, SEAs are a regional interest under the RPI Act and resource activities proposed in these areas are subject to meeting the relevant assessment criteria. The Wenlock River SEA is located approximately 28 km south of the Project and Project activities are not expected to impact the SEA.
The Cape York Regional Plan 2014 facilitates economic development and manages competing economic and environmental interests by providing strategic land-use classifications. The Project is not located in a strategic land-use classification area.
The Cape York Regional Plan 2014 provides specific strategic direction and policies that perform a pivotal role in managing competing state interests in the region. While the Project is outside areas of regional interest, and therefore does not require a regional interest development approval, the Plan outlines key regional issues facing the Project area and surrounds including:
. Inability of the existing local service and supply industries to cater for a growth in the mineral resources sector;
. Long-term economic resilience for the region will be dependent on the region’s ability to expand and diversify its existing economic base;
. Ongoing investment in resource activities in the region may also place localised pressure on housing supply in some communities, including Weipa and Napranum, where expansion opportunities for new housing is limited;
. Climatic conditions that can significantly affect transportation/connectivity, resource operations and the availability of water;
. Potential issues for local community development in the region include the provision of infrastructure that supports future growth, the availability (both attracting and retaining) of skilled labour and leveraging the benefits from resources and the environment to promote liveability of the region;
. Balancing economic development with environmental conservation;
. An increase in the portion of mature aged persons across the region (estimate at 13% by 2031) placing additional pressure on existing housing and services; and
. The highly dispersed settlement within the region has resulted in limited access to services and a lack of public transport.
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The Cape York Regional Plan 2014 acknowledges the potential positive social and economic benefits of resource projects in the region stating that mining “can provide economic opportunities for local communities through direct and indirect employment opportunities, royalties, compensation payments and investment in infrastructure and co-operative protection of the ecology and support for the development of physical and social infrastructure. The geographic spread of known mineral resources, if capitalised, will help insulate the region’s economy from downturns in particular commodities” (p.12).
16.2.5 Cook Shire Planning Scheme 2007 and Draft Planning Scheme 2014
The Cook Shire Planning Scheme 2007 is administered by the Cook Shire Council (CSC) and is the key guiding policy and control document for the consideration of social matters in the Project area at the local level. The Cook Shire Planning Scheme 2007 includes a strategic framework that outlines the broad visions and development intent for the Shire. Additionally, the Scheme contains Desired Environmental Outcomes (DEOs) which express the overall intent of the Scheme. The key socio- economic matters relevant to the Project that are identified in the strategic framework and DEOs are:
. Rural activities, extractive industry (mineral resources) and forestry are an important part of the Shire’s economy. These rural activities are to be sustainable and suitably located;
. Adequate infrastructure is provided to support the needs of the community;
. Economic growth and employment opportunities are encouraged;
. Cook Shire has a prosperous and growing economy, delivering jobs and rising living standards for all;
. The economy is centred around rural and extractive industries and tourism based on the Shire’s natural and cultural assets;
. Known mineral and other extractive resources are protected and used in a sustainable manner; and
. The Shire’s transport and communications network, especially its roads and telecommunications, is continuously improved.
The Draft Cook Shire Council Planning Scheme 2014 includes similar strategic intent to the current version in that mineral resources should be identified, protected and utilised in a manner that realises positive opportunities for the Cook Shire.
16-5 142°0'0"E 143°0'0"E 144°0'0"E 145°0'0"E
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Details Date R ©COPYRIGHT CDM SMITH DISCLAIMER This drawing is confidential and shall only be DESIGNER CLIENT Figure 16-1 1 Details 27/01/16 used for the purpose of this project. CDM Smith has endeavoured to ensure accuracy and completeness of the data. CDM Smith assumes Regulatory boundaries and - - - DESIGNED MD CHECKED TK / no legal liability or responsibility for any decisions 0212.5 550 - or actions resulting from the information contained Cape York Regional Plan - - DRAWN CHECKED MD TK Kilometres within this map. - - - Scale @ A3 - DATA SOURCE APPROVED - DATE 29/03/16 1:1,900,000 MEC Mining 2015; - - - GCS GDA 1994 QLD Government Open Data Source; Notes: DRG Ref: 001-R1_REG_BOUND_V2 - - - Australian Government Bureau of Meteorology. F:\1_PROJECTS\BES150115_Bauxite_Hill\GIS\DATA\MXD\FINAL\ERA\SOCIAL\001-R1_REG_BOUND_V2.mxd Bauxite Hills Project Social and Economic
16.3 Relevant Programs and Plan 16.3.1 Cook Shire Community Plan 2011-2021
The Community Plan is a 10 year high level plan for Cook Shire that identifies community needs and articulates the Council’s and community’s long-term vision, aspirations and priorities. In accordance with the Local Government Act 2009 (s127) the Plan covers the following key aspects:
. Economic – improvements of Shire financial status;
. Environmental – environmental health and sustainable development;
. Social – activities that recognise the importance and diversity of communities; and
. Governance – activities that enable Council to progress long-term community planning.
The Plan was prepared through desktop analysis and significant community consultation that resulted in over 1,600 separate comments from the Cook Shire community. The Plan identifies a number of socio-economic issues/challenges facing the Shire which are listed in Table 16-1.
Table 16-1 Challenges facing the Cook Shire identified in the community plan Aspect Challenge . Lack of major infrastructure investment; Infrastructure . Unreliable communication infrastructure (e.g. internet); and . Legal supply of gravel/rock for road works and construction is constrained. . Land tenure issues create uncertainty and limit commercial and residential investment; and Land Tenure . Need to retain access to natural areas as the land tenures change. . Lack of skilled and unskilled workforce; Workforce and . Poor work ethic; Training . Lack of training and small business advice available locally; and . Difficulty of recruiting and retaining staff. . Cook Shire is generally an expensive place to live; the very small populations lead to diseconomies of scale, further exacerbated by high freight charges because of distance from supply centres; Cost of Living . Cost of credit, insurance, electricity and cost of compliance are more expensive in Cape York and Business than further south; and . Some residential and business rates and service charges are more expensive than larger metropolitan areas. . Community expectations of Council services are increasing while the rate base is declining . Community expectations of business and retail services product range and quality are Community increasing while the commercial sector is static or declining; and Expectations . Community self-reliance and resilience will have to be improved in order to manage disasters within current cost constraints. . Lack of continuity of on ground support and staff means relationships are not built and services may be less effective; Service Provision . Lack of trust in outside experts who “drop into” the community; and . Perceived duplication of some services and gaps in others.
Table 16-2 identifies the strategies proposed in the community plan to address social and economic challenges in the Shire.
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Table 16-2 Strategies identified in community plan to address social and economic challenges Aspect Strategies . Advocate for and investigate options to ensure there is sufficient appropriate residential housing; . Advocate for the availability of a range of affordable accommodation types to meet the needs of workers and tourists; . Facilitate community based strategies to improve personal safety; . Advocate for and support the development of cost effective options for improving food Social supply; . Support volunteer groups that provide community safety services such as rural fire brigades, State Emergency Service, coastguard and ambulance; . Incorporate Crime Prevention Through Environmental Design principles where possible; . Ensure emergency evacuation services are available in all townships where possible; and . Lobby for increased resourcing to local governments and communities to develop and promote disaster preparedness information and training. . Support local production and consumption of goods and encourage households to be more self-sufficient; . Increase business efficiency by promoting and facilitating cooperation and strategic alliances among firms and other productive enterprises to develop critical mass; . Improve business infrastructure by facilitating energy security projects and access to high speed reliable telecommunications, transport and banking services; . Support projects that deliver energy security; . Lobby government for resolution of land tenure and other legislation to provide certainty for investors and current stakeholders to invest in their property; . Support initiatives to attract residents to the area; Economic . Improve recruitment and retention of appropriately skilled staff; . Attract and actively support investment to the area; . Develop a positive reputation; . Lobby government to regionalise services and employ locals; . Identify business gaps and work with business to take up opportunities; . Provide a planning scheme that supports a range of industry; . Support the availability of relevant, effective training for workforce entrants and for existing workers to improve skills; . Work collaboratively with job service agencies and providers on projects which provide employment and skills training; and . Encourage provision and uptake of small business advice and training for all businesses. 16.4 Objectives and Performance Outcomes 16.4.1 Protection Objectives
As per the ToR the Project objectives are:
. Avoid or mitigate adverse social and economic impacts arising from the Project; and . Capitalise on opportunities potentially available to affected communities. 16.4.2 Performance Outcomes
The social and economic performance outcomes are:
. Operations and activities minimise adverse impacts to the social and economic environment of the region and maximise benefits that the operations may bring; . Use local workers and contractors, where appropriate; and . Procure local and regional businesses and services, where possible.
16-8 Bauxite Hills Project Social and Economic
Metro Mining has implemented a Community and Social Responsibility Policy that is applicable to all operations associated with the Project. Metro Mining’s aim, as stated in the policy, is for honest and open communication and the endorsement of community ideals and goal. In addition Metro Mining is committed to long term and mutually beneficial relationships and to social and economic benefits with net environmental gain. The Community and Social Responsibility Policy is publically available on Metro Mining’s website at - http://www.metromining.com.au/about-us/corporate- governance/corporate-policies/. 16.5 Assessment Method 16.5.1 Social Impact Assessment
The assessment of social impacts is based on the Queensland Coordinator-General Social Impact Assessment Guideline 2013. The methodology has adopted a conservative approach whereby an attempt has been made to identify and consider impacts even if the potential risk of that impact occurring is low, or the actual impact is difficult to predict or quantify. A summary of the assessment method is shown below:
. Develop an appropriate conceptual framework for identifying social change processes and social impacts of transport projects;
. Undertake a literature review, including other recently approved or proposed developments in close proximity to the Project including the:
• Gulf Alumina Skardon River Bauxite Project (SRBP) (in assessment)
• Rio Tinto Alcan Weipa Bauxite Mine (operational)
• Rio Tinto Alcan Amrun (formerly South of Embley) Bauxite Project (approved)
• Glencore Aurukun Bauxite Project (proposed)
• Hey Point Bauxite Project (approved)
. Identification of legislation, programs and policies that are relevant to social assessments and the management of Project impacts;
. Listing of methods used to gather information including a description of how communities of interest have been engaged;
. Identification of the Social Impact Assessment study area (see Figure 16-2):
• Cook Shire local government area, including Cooktown (the administrative centre of the shire) approximately 535 km southeast of the Project area
• Mapoon Shire local government area, including the town of Mapoon located approximately 20 km southwest of the Project area
• Weipa Town Area local government area, including the town of Weipa, located approximately 90 km south of the Project area
• Napranum Shire local government area, including the town of Napranum, located approximately 93 km south of the Project area
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• Northern Peninsula Area Regional Council, including the townships of Injinoo and Bamaga. These townships are considered due to the Traditional Owners of the Project land being predominantly based in these areas
• Aurukun Shire local government area, including the township of Aurukun located approximately 170 km south of the Project area
• Cairns Regional Council, including the northern Queensland regional centre of Cairns located approximately 700 km
. A definition of the stakeholders, the impacted communities of interest and develop an understanding of the current community profile and social baseline. In assessing the social environment, and determining the baseline, data was sourced from the following:
• Australian Bureau of Statistics (ABS) catalogues
• Queensland Government Statisticians Office
• Various Queensland Government agencies and local governments in the study area (Figure 16-1)
• Stakeholders through direct engagement
• Publically available information on surrounding projects (i.e. EIS reports)
. Cross check against baseline indicators to ensure a relevant baseline has been developed;
. Identify likely social change processes and potential social impacts and benefits for the planning/pre-construction, construction, operation, and closure of the Project;
. Identify and assess potential cumulative impacts with other projects that are proposed or operational in the area. The projects considered as part of the cumulative social impact assessment in Section 16.8 are listed below.
Project Proponent Status Distance from Project Skardon River Bauxite Project Gulf Alumina EIS in assessment Immediately adjacent Weipa Bauxite Mine Rio Tinto Alcan Operational 60 km EIS approved Amrun (formerly South of Embley) Rio Tinto Alcan proceeding to 95 km Bauxite Project construction Hey Point Bauxite Project Green Coast Resources Operational 95 km Aurukun Bauxite Project Glencore Proposed 170 km
. Provide a prediction of the significance, duration and extent of potential impacts;
. Identification of the management and mitigation measures proposed to address potential impacts from the Project; and
. Identification of a monitoring framework that informs stakeholders on the Project’s management and mitigation measures.
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Details Date R ©COPYRIGHT CDM SMITH DISCLAIMER This drawing is confidential and shall only be DESIGNER CLIENT Figure 16-2 1 Details 27/01/16 used for the purpose of this project. CDM Smith has endeavoured to ensure accuracy and completeness of the data. CDM Smith assumes Social impact study area - - - DESIGNED MD CHECKED TK / no legal liability or responsibility for any decisions 0315 060 - or actions resulting from the information contained - - DRAWN CHECKED MD TK Kilometres within this map. - - - Scale @ A3 - DATA SOURCE APPROVED - DATE 29/03/16 1:2,237,056 MEC Mining 2015; - - - GCS GDA 1994 QLD Government Open Data Source; Notes: DRG Ref: 002-R1_SOCIAL_I_STUDY - - - Australian Government Bureau of Meteorology. F:\1_PROJECTS\BES150115_Bauxite_Hill\GIS\DATA\MXD\FINAL\ERA\SOCIAL\002-R1_SOCIAL_I_STUDY.mxd Bauxite Hills Project Social and Economic
16.5.2 Economic Assessment
Regional and local economic data was collected to develop economic models and inform the ‘base case’ (or baseline scenario) against which the Project’s impacts are assessed. The geographic scope of the local and regional economies is defined as:
. Local economy – Cape York Statistical Area Level 2 (SA2); and
. Regional economy – Far North Queensland (FNQ) Statistical Area Level 3 (SA3) (including Far North, Cairns – North, Cairns – South, Innisfail – Cassowary Coast, Port Douglas – Daintree and Tablelands (East) – Kuranda).
The economic assessment also identified the economic contribution in terms of:
. Direct impacts – the first round of effects from direct operational expenditure on goods and services; and
. Indirect (flow-on) impacts – comprising of the second and subsequent round effects of increased purchases by suppliers in response to increased sales.
16.5.2.1 Assessing the Existing Economic Environment Existing data was assessed to characterise the existing economic environment, referred to as the baseline. The data was used to develop a regional impact model to assess Project impacts.
In preparing the existing economic environment section, data was sourced from:
. ABS catalogues, including the Census of Population and Housing, Labour Force Survey, Regional Population Growth, Australian Business Register and Agricultural Commodities publications;
. Queensland Government Statistician’s Office;
. Various Queensland government agencies and local governments; and
. Proprietary Economic Associates models.
16.5.3 Economic Contribution Assessment
The economic contribution assessment identifies the economic impacts specific to the Project, compared to what would be anticipated if the Project does not proceed (that is, the ‘base case’ scenario). The economic contribution assessment utilises a regional input-output approach, which provides indicative results relating to the total demand generated by the Project during construction and operational phases in terms of output, household incomes, employment and value added. The input-output approach shows the direct and indirect (flow-on) effects of one sector on other sectors and the general economy. Metro Mining provided indicative construction and operating costs for the Project as input to the estimation of the local, regional, state and national stimulus generated by the Project. The anticipated capital expenditure for the Project is provided below.
A discussion of the different measures of economic contribution is provided in Table 16-3.
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Table 16-3 Measures of economic contribution Impact Measure Description The output impact measures the increase in gross sales throughout the entire economy by aggregating all individual transactions (direct and indirect) resulting from the economic stimulus. The output impact provides an indication of the degree of structural dependence between Output sectors of the economy. However, output impacts are regarded as overstating the impact on the economy as they count all goods and services used in one stage of production as an input to later stages of production, hence counting their contribution more than once. The household income impact measures the additional wages, salaries and supplements paid to Household households associated with the industry under consideration and with other industries Income benefiting from the stimulus to the economy. The employment impact measures the number of full-time equivalent (FTE) positions for one year created directly and indirectly by the stimulus. However, the short-term response to increased demand may be that existing employees work overtime. Consequently, actual levels of employment generated (in terms of persons employed) will tend to be lower than those Employment estimated by the input-output analysis. This short-term employment response (of working additional overtime) will be more prevalent where the demand stimulus is likely to be temporary and short lived, or where there is limited spare capacity in the economy (that is, when the economy is at or near full employment). The value added or Gross Regional Product (GRP) impact measures only the net activity at each stage of production resulting from a stimulus. GRP is defined as the addition of consumption, investment and government expenditure, plus net exports (exports minus imports) from a Value Added region. The value added (or GRP) impact is the preferred measure for the assessment of contribution to the economy from a stimulus or impact, and as such should be used to describe the net impact of the event. Value added is the measure of economic impact resulting from a stimulus that is preferred by economists. Source: Jensen, R. and West, G. (2001) Community Economic Analysis, Department of Primary Industries: Brisbane, Qld
Capital Expenditure
Capital expenditure is anticipated to occur over a seven month period commencing in late 2016, amounting to a total of $50.13 million. The anticipated capital expenditure within the FNQ Region and the rest of Queensland for the Project is summarised in Table 16-4.
Table 16-4 Anticipated capital expenditure ($m), FNQ Region and rest of Queensland FNQ Rest of Description Total Queensland Queensland Haul Roads $0.42 $0.11 $0.53 Workshop Buildings $0.38 $0.10 $0.48 Construction and Mobilisation $1.54 $0.39 $1.93 Site Establishment $0.41 $0.10 $0.51 Mining Contractor Civils and Establishment Contingency $0.28 $0.07 $0.34 Camp Build and Mobilisation $3.60 $0.90 $4.50 Barge Loading Facility $20.77 $5.19 $25.96 Owner Civils and Establishment Contingency $3.26 $0.82 $4.08 Navigational Aids $0.20 $0.05 $0.25 Cyclone Moorings $0.80 $0.20 $1.00 Marine Mobilisation $0.55 $0.14 $0.69 Transhipment Contractor Marine Installations Contingency $0.16 $0.04 $0.19 Light Vehicles $0.28 $0.07 $0.35 Buses $0.18 $0.05 $0.23 Rom Screen $0.59 $0.15 $0.74 Rom Stacker $2.52 $0.63 $3.15 Emergency Response Trailer $0.20 $0.05 $0.25 Communication Systems $0.06 $0.01 $0.07 On Belt Analysers $0.72 $0.18 $0.90 Grade Control Drilling Unit $0.05 $0.01 $0.06 Survey Systems and Drone $0.10 $0.03 $0.13 BLF Critical Spares Holding $0.92 $0.23 $1.15 Owner Responsible Units Contingency $0.56 $0.14 $0.70
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FNQ Rest of Description Total Queensland Queensland Mobilisation $0.41 $0.10 $0.51 Insurance $0.00 $0.95 $0.95 Mobilisation and Insurance Contingency $0.00 $0.15 $0.15 Detailed Engineering $0.00 $0.31 $0.31 Technical and Admin Contingency $0.00 $0.03 $0.03 Total $38.96 $11.18 $50.13 16.6 Existing Social and Economic Environment The existing social and economic environment in the region was characterised by obtaining qualitative and quantitative data. Information provided in the following sections forms the baseline of which to measure any changes to the social and economic environment. The baseline information also provides areas that have the potential to be improved by the Project.
16.6.1 Existing Social Environment
Land surrounding the Project area is currently used for mineral exploration, camping, recreational and traditional fishing and hunting practices. Cattle grazing is a land use in the region but there are no active cattle properties in the immediate vicinity of the Project.
16.6.1.1 Stakeholders Stakeholders relevant to this Project are individuals, communities, non-government organisations, private organisations, government agencies, small businesses and others who have an interest or a ‘stake’ in the Project and its outcome. Stakeholders may be impacted by, or influence the planning and operations of a project in varying degrees of significance. The stakeholders consulted include the following:
. Commonwealth and Queensland Government departments (including natural resource, environment, emergency and health agencies);
. Members of the Federal and Queensland Parliament;
. Local governments (including Cook Shire, Cairns City, Mapoon Aboriginal Shire, Napranum Aboriginal Shire, Northern Peninsula Area Regional and Weipa Town);
. The Regional Harbour Master, Port Authority for Skardon River (Ports North) and Weipa (North Queensland Bulk Ports Corporation);
. Aboriginal groups and corporations (including the Old Mapoon Aboriginal Corporation, the Ankamuthi People and Northern Cape York #1);
. Mapoon residents and the Mapoon Land and Sea Rangers;
. Regional airport authorities (including the Cooktown, Weipa, Cairns and Northern Peninsula airports);
. The Northern Prawn Fishery Industry Pty Ltd;
. Surrounding project proponents (Rio Tinto Alcan and Gulf Alumina); and
. Local education and employment services.
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Metro Mining has undertaken an engagement process with the above listed stakeholders and utilised the quantitative data gathered from the engagement to assist with establishing the social baseline. All known interested and affected persons have either been consulted in person or issued with a notice of the Project draft ToR. In addition, each stakeholder has been separately issued with a Project newsletter (January 2016) which is publically available on Metro Mining’s website. The newsletter provided an overview of the proposed location, scale and operations, the EIS process, environmental studies conducted, cultural heritage and community engagement matters.
The following environmental issues were raised during the consultation:
. Final landform and final land use (Chapter 4 – Land);
. Impacts to vulnerable species (Chapter 7 – Matters of National Environmental Significance, Chapter 5 – Terrestrial and Freshwater Ecology and Chapter 6 – Marine Ecology);
. Weed, fire and feral animal controls (Chapter 5 – Terrestrial and Freshwater Ecology);
. Water quality (Chapter 9 – Water Quality);
. Dust (Chapter 12 – Air Quality);
. Noise (Chapter 13 – Noise and Vibration); and
. Rehabilitation (Chapter 4 – Land).
The potential impacts and management and mitigation measures proposed by Metro Mining are described in the respective sections; however, it is recognised that the risk of these impacts causing any significant harm to the social environment is minimal, given the distance between the Project and sensitive receptors.
16.6.1.2 Existing Community Profiles Identifying community profiles provides an overview of social characteristics and conditions in the study area, including population and demographics, social infrastructure and community values. Mapoon, Weipa, Napranum, Aurukun, the Northern Peninsula (primarily Bamaga and Injinoo) are the local communities that are relevant to the Project and have therefore been included in this assessment. In addition, Cooktown and Cairns are likely sources of employees, good and services for the Project and have also been included in the study. It should be noted that Weipa is a community that is strongly influenced by the existing Rio Tinto Alcan operations. This is reflected in the data provided in the forthcoming sections.
Many of the challenges impacting the communities across the Western Cape region are similar to those faced by remote communities across Australia. These challenges include, but are not limited to:
. Need for quality education that leads to employment outcomes;
. Lack of available housing; and
. Access to health care facilities.
The following section outlines socio-economic data pertaining to both Indigenous and non- Indigenous populations.
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Community Statistics
At the time of the 2011 Census, the combined population of the Cooktown, Mapoon, Weipa, Napranum, Bamaga, Injinoo and Aurukun communities was 5,915 (approximately 0.137% of the total Queensland population) with Queensland’s population totalling 4,332,739 (refer to Table 16- 5). Note, Cairns has been included in the assessment as it will be a potential labour source and location of direct supply; however, it has been separated from the other North Queensland centres as it has a disproportionate percentage of the population compared to the smaller, more local centres.
Table 16-5 Community population in comparison to Queensland population Community Population Percentage of Queensland population Cooktown 1,617 0.037% Mapoon 263 0.006% Weipa 3,334 0.077% Napranum 852 0.020% Bamaga 1,044 0.024% Injinoo 468 0.011% Aurukun 1,288 0.030% Sub-Total 7,203 0.166% Cairns 133,893 3.090% Total 141,096 3.257% Source: ABS, 2013
Weipa is a community that is strongly influenced by the existing Rio Tinto Alcan operations particularly in regard to salaries and rent. This is shown in Table 16-6.
Table 16-6 Community statistics Community Median age Average people Median weekly Median weekly rent per household household income
Cooktown 40 2.2 $907 $180 Mapoon 30 3.3 $866 $53 Weipa 30 2.8 $2,501 $231 Napranum 22 4.3 $784 $92 Bamaga 22 3.7 $1,179 $60 Injinoo 20 4.3 $1,019 $75 Aurukun 25 5 $1,144 $80 Cairns 35 2.5 $1,164 $260 Queensland 36 2.6 $1,235 $300 Australia 37 2.6 $1,234 $285 Source: ABS, 2013
The data shows that, with the exception of Cooktown and Cairns, the study area communities have a lower median age and higher quantity of people per household than the Queensland and Australian average. Despite Napranum’s close proximity to Weipa (approx. 5 km south), and the Rio Tinto Alcan mining operations, it displays the lowest median household income while Weipa has the highest. This indicates that mining related employment is centred on Weipa and Napranum is experiencing significantly less direct and indirect income benefits.
With the exception of Weipa, all communities in the study area have median weekly household income that is below both the Queensland and Australian average. While median weekly rent is lower this alludes to potential financial disadvantage in these communities which is supported by ABS analysis in Section 16.6.3.
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Indigenous Population Profile
The 2011 Census recorded 16,728 Indigenous persons, including Torres Strait Islanders, living in the geographic area of concern. The percentage of the Indigenous people compared to the total Indigenous population (155,824) in Queensland is displayed in Table 16-7.
Table 16-7 Indigenous population in comparison to Queensland’s Indigenous population Indigenous Percentage of Community Population Percentage of Local Queensland Population Population Cooktown 359 22.20% 0.23% Mapoon 233 88.59% 0.15% Weipa 616 18.48% 0.40% Napranum 817 95.89% 0.52% Bamaga 843 80.75% 0.54% Injinoo 454 97.01% 0.29% Aurukun 1,190 92.39% 0.76% Cairns 12,216 9.12% 7.84% Total 16,728 N/A 10.74% Source: ABS 2013
Employment
The 2011 Census identified Weipa as having the highest labour force participation rate of 79% followed by Mapoon (66%). There is insufficient data to derive the employment percentages for Bamaga and Injinoo; however, the Northern Peninsula region has an unemployment rate of 8.6% which is above the Queensland rate of 6.1%. Mapoon is also above the Queensland unemployment rate at 6.7%. The only community in the study area to record unemployment below the Queensland average was Weipa which in 2011 had a rate of 2.6% that further reduced to 0.9% in the latest (2015) Queensland Government data (Queensland Government Statistician’s Office, 2016). This reflects the Rio Tinto Alcan employees residing in Weipa and the indirect economic impacts.
For the entire study area the unemployment rate at September 2015 was 7.6% with a total of 6,550 unemployed persons (Queensland Government Statistician’s Office 2016). Within the region Aurukun had the highest unemployment rate of 37.4%, while the rate for the Shires of Mapoon, Napranum and the Northern Peninsula were lower at between 13.6% and 13.8%. This was; however, still higher than the Queensland average of 6.1% (Table 16-8).
Table 16-8 Labour force and employment statistics
Local Government Area Unemployed Labour force Unemployment rate
Cook Shire 276 2,052 13.5% Mapoon Shire 18 132 13.6% Weipa Town Area 26 2,783 0.9% Napranum Shire 57 420 13.6% Northern Peninsula Area Regional 160 1,163 13.8% Aurukun Shire 149 398 37.4% Cairns Regional 5,864 79,391 7.4% Queensland 161,082 2,490,181 6.1% Source: Queensland Government Statistician’s Office, 2016
The study area exhibits a higher than average percentage of families with children under 15 years of age and with no parent employed, being 17.9% compared to a Queensland average of 13.5%. This figure is significantly higher for the Shires of the Northern Peninsula (26.9%), Mapoon (41.9%), Napranum (54%) and Aurukun (60.2%) (Queensland Government Statistician’s Office, 2016).
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Mobility The Queensland Government Statistician’s Office data indicates that Weipa has the most mobile population in the region, with a total of 26.7% of persons having a different address to one year prior (at completion of the 2011 Census). The local government area of Cairns (20% and Mapoon (21.9%) also exceeded the Queensland State average of 17.9%. The Shires of the Northern Penninsula (8%), Napranum (5%) and Aurukun (3.8%) all had a low proportion of persons with different addresses, indicating low mobility populations. This aligns with the Aurukun Shire Council’s acknowledgement that many Indigenous communities are very stable (immobile). The Aurukun Shire attributes this to many residents having little opportunity to move away from the area and a lack of recognised education or training. In addition the Shire notes to move would also deprive the residents of their family and clan supports (Aurukun Shire Council, 2013a). Demographic Change Changes to a population can be stimulated by a number of factors such as a new development, altered access or even natural disasters. The Project area, in particular Weipa, is heavily influenced by the resource industry. Table 16-9 provides the projected populations up to 2036 for the local governments within the study area (based on medium projection). Table 16-9 Population change and projections
Local Government Area 2011 2016 2021 2026 2031 2036
Cook Shire 4,409 4,765 5,037 5,320 5,526 5,754 Mapoon Shire 281 310 337 358 389 414 Weipa Town Area 3,423 3,853 4,258 4,631 4,973 5,285 Napranum Shire 908 927 983 1,021 1,070 1,105 Northern Peninsula Area 2,463 2,621 2,758 2,884 3,000 3,110 Regional Aurukun Shire 1,398 1,511 1,611 1,701 1,784 1,860 Cairns Regional 150,992 167,794 186,575 205,735 225,006 244,083 Queensland 4,476,778 4,946,319 5,477,082 6,007,578 6,548,220 7,095,177 Source: Queensland Government Statistician’s Office, 2016
Over the period from 2016 to 2036 the populations of communities within the study area are projected to increase by between 19% and 45%. The lowest percentage increase across the 20 year period is 19% in both Napranum Shire and the Northern Peninsula Regional, while the highest percentage increases are in Weipa (37%) and Cairns (45%). Cairns is the only area with a population projection over the next 20 years that exceeds the percentage increase in the overall Queensland population (43%). Therefore, while the study area population will experience significant increases, as a percentage of the existing population, these will likely be less than other parts of Queensland and experienced on a smaller scale. Community Values Community values relate to factors such as community wellbeing and cohesion, use of culturally important areas, community safety, and access and connectivity. The identification of community values has been informed by: . Local government and Queensland Government social policies; . Outcomes of community consultation undertaken for the Project; and . A survey of community values within the Mapoon community. The Project has been identified as having the potential to impact the community values of a number of local and regional communities including Mapoon, Weipa, Napranum, Aurukun, Cairns and
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Cooktown and the Northern Peninsula Regional Council communities. The community values of these potentially impacted areas is further discussed below. 16.6.1.3 Cooktown The Project is located within the Cook Shire Council local government area. The Cook Shire offices are located in Cooktown located approximately 730 km from the Project. In addition to Cooktown the Shire’s other main population centres are Coen, Lakeland and Laura. The Shire is the largest local government area in Queensland and there are significant distances between the population centres. The Project area is on the western edge of the Shire and only accessible by vehicles from an unsealed road off the north-south Telegraph Road.
The Cook Shire Council covers an area of over 105,000 km2 and has a population of 4,153 people, with 20% identifying as Aboriginal and/or Torres Strait Islander. Cooktown itself has a population of 1,617 with 16.7% identifying as Aboriginal and/or Torres Strait Islander. As of the 2011 Census the Cook Shire had a total of 1,335 dwellings and a total of 34.5% of those dwelling had no internet connection.
At the 2011 Census the median age of people in Cooktown was 40 years, 4 years above the Queensland average of 36. A total of 59.6% of Cooktown residents reported full-time employment which is just below the Queensland average of 60% and the centre exhibited an unemployment rate of 7.6%, above both the Queensland (6.1% and Australian (5.6%) rates (Table 16-6).
90-94 years 85-89 years 80-84 years Males Females Cooktown (%) 75-79 years Queensland (%) Cooktown (%) 70-74 years Queensland (%) 65-69 years 60-64 years 55-59 years 50-54 years 45-49 years 40-44 years Age Age Group 35-39 years 30-34 years 25-29 years 20-24 years 15-19 years 10-14 years 5-9 years 0-4 years 6 4 2 0 2 4 6 Percentage of Population (%)
Figure 16-3 Cooktown population pyramid
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16.6.1.4 Mapoon Mapoon is located approximately 35 km from the mine in a direct line, with road access to the Project 367 km away. With some parts of the road slightly more advanced than bush tracks, the easiest access from Mapoon to the Project is by small aircraft or boat, weather permitting.
As identified in the 2011 Census Mapoon’s population was 260 people of which 89% were identified as Aboriginal and/or Torres Strait Islander. The community includes approximately 71 dwellings and provides basic community services and facilities to meet the needs of local residents, including education, primary health care, basic government services and a community store. A total of 55.4% of the dwellings had no internet connection at the time of the 2011 Census.
The Mapoon community was established as the Batavia River Mission on Cullen Point in 1891. In the 1950s and 1960s, the discovery of bauxite on the Western Cape area saw mining leases for large areas approved for Comalco and Alcan. Comalco was bought by Rio Tinto in 2000 while Alcan was acquired in 2007. The mission was closed in the early 1960s as the government sought to rationalise services for the Cape Indigenous people by centralising the services to the Bamaga area. Many Bamaga residents and one of the nearby communities, New Mapoon, were unhappy with the closure and rationalisation of services. Over the following years, many moved back to (old) Mapoon, and the government eventually provided new housing which is under the administration of the Mapoon Aboriginal Shire Council.
Today, the community differs from many others given the land use and settlement layout was the result of an extensive participatory planning process. The ‘Planning for a Healthy Community Project’ started in 1994 and was completed in 1995. Upon completion in 1995, a large capital works program to the value of $3 million was approved by government for Mapoon, (with the promise of more funding to follow) to occur over a five year planning horizon to the year 2000.
The improvements that took place over this period included roadworks, about 30 new houses, an airstrip, a clinic, a school, a store, reticulated water and power.
90-94 years 85-89 years 80-84 years Males Females 75-79 years Mapoon (%) Mapoon(%) 70-74 years Queensland (%) Queensland (%) 65-69 years 60-64 years 55-59 years 50-54 years 45-49 years 40-44 years Age Age Group 35-39 years 30-34 years 25-29 years 20-24 years 15-19 years 10-14 years 5-9 years 0-4 years 8 6 4 2 0 2 4 6 8 Percentage of Population (%)
Figure 16-4 Mapoon population pyramid
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16.6.1.5 Weipa The town of Weipa was originally established by Comalco to support its bauxite mining activities. The Weipa mine is now owned and operated by Rio Tinto Alcan, who administer the town via the Weipa Town Authority, fulfilling the role of the Local Authority. The town has developed as a regional centre providing a range of businesses, government and administration services, sports and recreation, and facilities to support smaller regional communities of the Western Cape. Emergency services in Weipa are supported through local permanent police, fire and rescue, and ambulance services and State Emergency Service volunteers. Primary health care to the Weipa (and the Mapoon and Napranum communities) is provided by the Weipa Integrated Health Service (WIHS). The WIHS is a multipurpose health service facility providing 24-hour inpatient, outpatient, residential aged care, emergency and primary healthcare services. A community services team provides access to social work, Aboriginal and Torres Strait Islander liaison and support, dietetics, physiotherapy, diabetics education, child health, Indigenous health assessments, antenatal services and nurse-led medical officer clinics. Additional services include palliative care, surgical and medical services, respite care, medical imaging, chronic disease management, child and maternal health, and dental. The WIHS also hosts a suite of regular visiting medical, community and allied health clinics, including mental health, alcohol and drug services, obstetrics and gynaecology, optometrist, paediatrics, orthopaedics, psychology, thoracic, and theatre, including ear nose and throat, ophthalmology, dental and scopes (QHS, 2016). In 2011, the town had an estimated residential population of 3,332 people, with 19% of the population identifying as Aboriginal and/or Torres Strait Islander. As of the 2011 Census the Weipa Town Shire had a total of 1,003 dwellings and a total of 13.3% of those dwelling had no internet connection. As per the population pyramid (Figure 16-5) the Weipa population generally has a higher percentage of residents in the age brackets below 54 years than the Queensland average. The reduction in the population of Weipa residents aged between 15 and 24 years is likely to indicate movement of residents outside of Weipa for educational purposes. Up until 2016 there has been only one educational facility in Weipa (the Western Cape College); however, St Joseph’s Catholic primary school also opened in 2016. This is supported by an acknowledgement on the Napranum Shire Council website that most secondary school students leave the community to attend boarding schools and other alternative programs (Napranum Aboriginal Shire Council 2016). The graph also indicates a greater percentage of males in the population and a much lower proportion of the elderly than that of Queensland.
90-94 years 85-89 years 80-84 years 75-79 years Males Females 70-74 years 65-69 years Weipa (%) Weipa (%) 60-64 years Queensland (%) 55-59 years Queensland (%) 50-54 years 45-49 years 40-44 years
Age Age Group 35-39 years 30-34 years 25-29 years 20-24 years 15-19 years 10-14 years 5-9 years 0-4 years 6 4 2 0 2 4 6 Pecentage of Population (%) Figure 16-5 Weipa population pyramid
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16.6.1.6 Napranum Napranum is located within the Napranum Aboriginal Shire Council. Napranum is located approximately 4 km south of Weipa and provides a range of community services and facilities to serve the day-to-day needs of local residents. These services include a healthcare centre, preschool, kindergarten, visitor accommodations, mail distribution, aged care facility, community hall, sports facilities and a local supermarket. Despite these services the 10 Year Community Plan outlines a number of additional services considered necessary or desirable for Napranum including public transport, day care and additional sporting facilities (Napranum Aboriginal Shire Council 2011). Additionally, the 10 Year Community Plan identifies a number of skills/values that would be desirable for the community including:
. Awareness of the importance of education;
. Understanding of appropriate living and teaching values;
. Community safety; and
. Youth coaching and mentoring (Napranum Aboriginal Shire Council 2011).
As of the 2011 Census the Napranum Shire had a total of 182 dwellings and a total of 85.6% of those dwelling had no internet connection. As per the population pyramid (Figure 16-6), Napranum exhibits a higher proportion of the overall population in the age brackets between 0 and 29 years than the Queensland average. In addition, Napranum exhibits a lower proportion of the population above the age of 54 years.
90-94 years 85-89 years 80-84 years Males Females 75-79 years Napranum (%) Napranum (%) 70-74 years Queensland (%) Queensland (%) 65-69 years 60-64 years 55-59 years 50-54 years 45-49 years 40-44 years Age Age Group 35-39 years 30-34 years 25-29 years 20-24 years 15-19 years 10-14 years 5-9 years 0-4 years 8 6 4 2 0 2 4 6 8 Percentage of Population (%)
Figure 16-6 Napranum population pyramid
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16.6.1.7 Northern Peninsula (Bamaga and Injinoo) The Northern Peninsula Area Regional Council includes the main townships of Injinoo and Bamaga, among others (Umagico, New Mapoon and Seisia). Injinoo is the closest settlement to the north, located approximately 205 km from the Project. Bamaga is a further 22 km north from Injinoo. While not located in close proximity to the Project, many of the Traditional Owners with Native Title rights over the Project area live in the Northern Peninsula Regional Council area. As such, from a community and social impact perspective, these townships are relevant to the Project.
In 2011, the Northern Peninsula Area Regional Council had 2,298 people with 85% identifying as Aboriginal and/or Torres Strait Islander. As of the 2011 Census the Northern Peninsula area had a total of 562 dwellings and a total of 59.4% of those dwelling had no internet connection.
Townships within the Northern Peninsula council area provide a range of services including aged and child care, transport (airport), libraries, sporting facilities, an arts centre, accommodation and supermarkets.
As per the population pyramid (Figure 16-7) the Northern Peninsula communities exhibit a higher proportion of the overall population in the age brackets between 0 and 24 years than the Queensland average. The Northern Peninsula exhibits a lower proportion of the population aged 35 years and above. This data aligns with the life expectancy gap between Aboriginal and Torres Strait Islanders and non-Indigenous Australian’s which at the national level for 2005 – 2007 was 11.5 years less for males and 9.7 years less for females (Australian Bureau of Statistics 2012),
90-94 years 85-89 years 80-84 years Males Females 75-79 years Northen Peninsula (%) Northern Peninsula (%) 70-74 years Queensland (%) Queensland (%) 65-69 years 60-64 years 55-59 years 50-54 years 45-49 years 40-44 years Age Age Group 35-39 years 30-34 years 25-29 years 20-24 years 15-19 years 10-14 years 5-9 years 0-4 years 8 6 4 2 0 2 4 6 8 Percentage of Population (%)
Figure 16-7 Northern Peninsula population pyramid
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16.6.1.8 Aurukun Aurukun is the primary residential population centre in the Aurukun Shire and is located approximately 170 km south of the Project. As of the 2011 Census the population of Aurukun totalled 1,288 people (see Figure 16-8) with 92% identifying as Aboriginal or Torres Strait Islander (Australian Bureau of Statistics 2013), many of which represent the Wik and Wik Way Traditional Owners of the area (Rio Tinto Alcan 2013). While Aurukun is the central location for residents of the area, there are also a number of outstations (remote residential settlements/communities) that are occupied during the dry season (Aurukun Shire Council 2013a).
A range of services are available in Aurukun including postal, banking, health, shopping, education and transport (air) services. Aurukun is one of four Welfare Reform Communities in Queensland, with two other also being in the study area (Coen – Cook Shire and Mossman Gorge – Cairns Regional Council). Possession of alcohol within the Shire is illegal and family income management is applied to families who do not satisfy certain criteria related to child care, home maintenance and good order (Aurukun Shire Council 2013b).
As of the 2011 Census the Aurukun Shire had a total of 222 dwellings and a total of 80.5% of those dwelling had no internet connection. The population pyramid for Aurukun (Figure 16-8) is similar to those of Napranum and the Northern Peninsula, whereas the population exhibits a higher proportion of residents in the younger age brackets and lower in the higher brackets compared to the Queensland average.
90-94 years 85-89 years 80-84 years Males Females 75-79 years Aurukun(%) Aurukun(%) 70-74 years Queensland (%) Queensland (%) 65-69 years 60-64 years 55-59 years 50-54 years 45-49 years 40-44 years 35-39 years 30-34 years 25-29 years 20-24 years 15-19 years 10-14 years 5-9 years 0-4 years 8 6 4 2 0 2 4 6 8
Figure 16-8 Aurukun population pyramid
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16.6.1.9 Cairns Cairns is the largest urban centre in Northern Queensland with a population at the 2011 Census of 133,893 (Australian Bureau of Statistics 2013) (see Figure 16-9). It is predicted that two thirds of tropical North Queensland’s population growth will be accommodated within the Cairns region (Cairns Regional Council 2015). Cairns is located on the east coast of Northern Queensland with the coastal strip to the north and south consisting predominately of good quality agricultural land and areas of high ecological significance.
Cairns contains most services found in any large city within Australia, including an international airport. This airport, and the large labour force (Table 16-8), are key reasons for potentially operating FIFO operations to the Project direct from Cairns.
As of the 2011 Census the Cairns Regional Council had a total of 53,020 dwellings and a total of 18.5% of those dwelling had no internet connection. The population pyramid for Cairns generally aligns with that of Queensland, However, Cairns exhibits a greater proportion of working aged residents between 30 and 59 years and a lower proportion of residents aged 60 years and above.
90-94 years 85-89 years 80-84 years Males Females 75-79 years Cairns (%) Cairns (%) 70-74 years Queensland (%) Queensland (%) 65-69 years 60-64 years 55-59 years 50-54 years 45-49 years 40-44 years Age Age Group 35-39 years 30-34 years 25-29 years 20-24 years 15-19 years 10-14 years 5-9 years 0-4 years
5 4 3 2 1 0 1 2 3 4 5 Percentage of Population (%)
Figure 16-9 Cairns population pyramid
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16.6.1.10 Statistics The various ABS statistics from the 2011 Census for Cooktown, Mapoon, Weipa, Napranum, Aurukun, Northern Peninsula, Cairns, Far North Queensland, Queensland and Australia are identified in Table 16-10 (see Figure 16-2).
Table 16-10 Summary of statistics Average Work Full- Unemployed Median Male Female Married Children time (%) (%) Age (%) (%) (%) per Family Cooktown 59.6 7.6 40 2.1 51.3 48.7 39.3 Mapoon 44.4 6.7 30 2.3 50.6 49.4 13.9 Weipa 74.1 2.5 30 2 53.3 46.7 47.3 Napranum 54.8 23.6 22 2.2 50.4 49.6 6.5 Northern Peninsula 64.5 8.6 22 2.4 48.5 51.5 23.4 (Bamaga and Injinoo) Aurukun 51.8 22.6 25 2.1 49.1 50.9 9.1 Cairns 59.8 6.8 35 1.9 49.4 50.6 42.2 Far North Queensland 59.2 8 31 2.2 53.4 46.6 33.2 Queensland 60 6.1 36 1.9 49.6 50.4 47.9 Australia 59.7 5.6 37 1.9 49.4 50.6 48.7
16.6.2 Existing Economic Environment
The assessment of the economic environment of the region identified a number of underlying future or cross-sectional trends. These trends are shown in Table 16-11 and are discussed in more detail in Appendix H Economic Technical Assessment.
Table 16-11 Underlying regional economic trends Population . Cape York SA2: population projected to increase at an average annual rate of 1.0% per annum between 2011 and 2036; . FNQ Region: population projected to increase at an average rate of 1.5% per annum between 2011 and 2036; . Projected average growth rate of population is lower in Cape York SA2 (1.0% per annum) than both FNQ Region (1.5% per annum) and Queensland (1.9% per annum); and . Projected average growth rate of working age population anticipated to be significantly lower within all regions, with this trend most pronounced in the Cape York SA2 (0.3% per annum). Average Age of Residents . At both the 2001 and 2011 Census, Cape York SA2 recorded an average age lower than the FNQ Region and Queensland; . 37.5 years in Cape York SA2 as of the 2011 Census; and . 38.2 years in FNQ Region as at the 2011 Census. Age Profile . Cape York SA2 recorded a higher incidence of working aged men (40.6% of total population) relative to FNQ Region (32.7% of total population) and Queensland (32.9% of total population); and . FNQ Region recorded a similar incidence of working aged persons (66.3%) relative to Queensland (66.5%). Family Structure . In 2011, lone person households (20.9%) were the most prevalent household type in Cape York SA2; and . Most prevalent household type in the FNQ Region was couple families with children (25.2%). Household Income . Average household income in Cape York SA2 ($1,098) was significantly below the state average ($1,501); . Average household income in FNQ Region ($1,308) was below the state average ($1,501); and . Cape York SA2 recorded the highest rate of growth in average household income between the 2006 and 2011 Censuses (4.9% per annum). Labour Market Trends
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. Unemployment rate in Cape York SA2 (13.1%) was significantly higher than in the FNQ Region (8.3%) and Queensland (6.5%); and . Labour force participation rate in Cape York SA2 (57.5%) significantly lower than in the FNQ Region (60.7%) and Queensland (64.7%). Employment by Industry . Just over a third of persons in Cape York SA2 were employed in the public administration and safety (22.7%) and health care and social assistance sectors (11.2%) as of the 2011 Census; and . The incidence of employment within the public administration and safety sector in Cape York SA2 (22.7%) was significantly higher than the FNQ Region (8.6%) and Queensland (6.7%). Occupation Type . Cape York SA2 recorded a significantly higher proportion of persons employed in lower blue collar occupations (29.2%) than the FNQ Region (19.3%) and Queensland (17.9%). Qualifications . Significantly lower proportions of people have a post school qualification in Cape York SA2 (23.5%) than the FNQ Region (35.3%) and Queensland (41.9%). Enterprise Activity . 352 registered businesses within Cape York SA2 as of June 2013, with construction and agriculture, forestry and fishing the most common business types; . Three construction businesses within Cape York SA2 employed 20 to 199 persons, with no registered businesses employing 200 or more persons; and . 23,606 registered businesses within the FNQ Region as of June 2013, with construction, agriculture, forestry and fishing and rental, hiring and real estate services the most common business types. Development Pipeline . Four bauxite projects were identified within the FNQ Region, with the largest to produce 22.5 Mtpa, with the potential to increase to 50 Mtpa. Gross Regional Product . $12,286 million in the FNQ Region in 2010-11 (4.5% of Queensland’s Gross State Product); . Growth in GRP between 2000 - 2001 and 2010- 2011 was significantly lower in the FNQ Region (6.3% per annum) than Queensland (8.8% per annum); and . Electricity, gas, water and waste services (10.6% per annum between 2000-01 and 2010-11) and health care and social assistance (10.1% per annum between 2000-01 and 2010-11) have been the key contributors to FNQ Region’s GRP growth. Agriculture . Agricultural commodities produced within Cape York SA2 (separate to FNQ ), while minimal and localised, included maize, sorghum, rice, melons, macadamias, passionfruit and meat cattle; . Sugar cane and peanuts are the key cropping commodities in the FNQ Region in terms of both volume and value of production. Sugar cane production in the FNQ Region accounted for 21.6% of the total production volume and value in Queensland. Peanut production in the FNQ Region accounted for 39.3% of Queensland production volume and 39.5% of Queensland production value; . Bananas were the key fruit crop within the FNQ Region, accounting for the majority of Queensland production in terms of both volume (98.5% of Queensland volume) and value of production (98.5% of Queensland value); and . Cattle and calves the dominant livestock commodity in terms of value in both Cape York SA2 ($49.6 million) and the FNQ Region ($289.1 million).
16.6.3 Socio-Economic Indexes
Socio-Economic Indexes for Areas (SEIFA) is a product developed by the ABS that ranks areas in Australia according to relative socio-economic advantage and disadvantage. Area level disadvantage depends on the socioeconomic conditions of a community or neighbourhood as a whole. The indexes are based on information from the five-yearly Census.
SEIFA 2011 is the latest version of this product and consists of four indexes:
. The Index of Relative Socio-Economic Disadvantage (Section 16.6.3.1); . The Index of Relative Socio-Economic Advantage and Disadvantage (Section 16.6.3.2); . The Index of Education and Occupation (Section 16.6.3.3); and . The Index of Economic Resources (Section 16.6.3.4).
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Each index is a summary of a different subset of Census variables and focuses on a different aspect of socio-economic advantage and disadvantage. The ABS broadly defines relative socio-economic advantage and disadvantage in terms of people's access to material and social resources, and their ability to participate in society. Section 16.6.3.1 to Section 16.6.3.4 provide the details of the four indexes for the communities discussed in Section 16.6.1.
16.6.3.1 Socio-Economic Disadvantage The Index of Relative Socio-Economic Disadvantage summarises variables that indicate relative disadvantage. This index ranks areas on a continuum from most disadvantaged to least disadvantaged. A low score on this index indicates a high proportion of relatively disadvantaged people in an area. Values from this index for the relevant local government areas are provided in Table 16-12 and graphically represented using the deciles in Figure 16-10.
Table 16-12 Relative socio-economic disadvantage Local Government Area Score Rank Decile Percentile Cook Shire 902 67 2 12 Mapoon Shire 699 29 1 6 Weipa Town Area 1064 519 10 92 Napranum Shire 535 7 1 2 Northern Peninsula Area Regional 705 30 1 6 Aurukun Shire 486 3 1 1 Cairns Regional 981 298 6 53
Figure 16-10 Relative socio-economic disadvantage
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16.6.3.2 Socio-Economic Advantage and Disadvantage The index of socio-economic advantage and disadvantage summarises variables that indicate either relative advantage or disadvantage. An area with a high score on this index has a relatively high incidence of advantage and a relatively low incidence of disadvantage. Values from this index for the relevant local government areas are provided in Table 16-13 and graphically represented using the deciles in Figure 16-11.
Table 16-13 Index of relative socio-economic advantage and disadvantage Local Government Area Score Rank Decile Percentile Cook Shire 898 66 2 12 Mapoon Shire 740 29 1 6 Weipa Town Area 1049 501 9 89 Napranum Shire 602 6 1 2 Northern Peninsula Area Regional 750 30 1 6 Aurukun Shire 586 4 1 1 Cairns Regional 975 322 6 57
Figure 16-11 Relative socio-economic advantage and disadvantage
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16.6.3.3 Economic Resources
The index of economic resources summarises variables relating to the financial aspects of relative socio-economic advantage and disadvantage. These include indicators of high and low income, as well as variables that correlate with high or low wealth. Areas with higher scores have relatively greater access to economic resources than areas with lower scores. Values from this index for the relevant local government areas are provided in Table 16-13 and graphically represented using the deciles in Figure 16-12.
Table 16-14 Index of economic resources Local Government Area Score Rank Decile Percentile Cook Shire 891 51 1 10 Mapoon Shire 684 28 1 5 Weipa Town Area 1037 491 9 87 Napranum Shire 589 12 1 3 Northern Peninsula Area Regional 655 26 1 5 Aurukun Shire 521 3 1 1 Cairns Regional 967 198 4 36
Figure 16-12 Economic resources
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16.6.3.4 Education and Occupation The index of education and occupation summarises variables relating to the educational and occupational aspects of relative socio-economic advantage and disadvantage. This index focuses on the skills of the people in an area, both formal qualifications and the skills required to perform different occupations. A low score indicates that an area has a high proportion of people without qualifications, without jobs, and/or with low skilled jobs. A high score indicates many people with high qualifications and/or highly skilled jobs. Values from this index for the relevant local government areas are provided in Table 16-15 and graphically represented using the deciles in Figure 16-13.
Table 16-15 Index of economic resources Local Government Area Score Rank Decile Percentile Cook Shire 963 305 6 54 Mapoon Shire 860 21 1 4 Weipa Town Area 965 312 6 56 Napranum Shire 770 3 1 1 Northern Peninsula Area Regional 910 81 2 15 Aurukun Shire 848 14 1 3 Cairns Regional 978 365 7 65
Figure 16-13 Education and occupation
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16.7 Potential Impacts The potential social and economic impacts, both beneficial and adverse, associated with all phases of the Project are discussed in this section. The existing social and economic environment, provided above, forms the baseline of which impacts are measured against.
16.7.1 Social Impacts
A number of potential social impacts, both adverse and beneficial, have been identified during the social impact assessment including:
. Opportunities for employment;
. Potential business opportunities;
. Transport and site access issues;
. Exclusion of the community;
. Disruption to community cohesion;
. Increased demand on community services; and
. Demographic changes.
The abovementioned impacts are discussed in the following sections.
16.7.1.1 Opportunities for Employment The issue of most concern, and identified as high importance, was the opportunities available for local employment as a result of the Project. As noted above, unemployment levels in all of the study area communities (except Weipa) are higher than the Queensland and Australian average. Weipa benefits from the long established Rio Tinto Alcan operation which provides a high rate of employment. Interestingly, Napranum which is adjacent to Weipa exhibits a 13.6% unemployment rate and employment opportunities from the mining operations are providing far less beneficial employment outcomes than in Weipa. Aside from Rio Tinto Alcan’s operation, there are few emerging employment opportunities.
The Project is a small operation in comparison to Rio Tinto Alcan’s existing and proposed Amrun project with an average of 254 jobs required over the 12 year life of the mine. Of these jobs, Metro Mining has committed to maximising opportunities for local community members, in particular local Indigenous persons, women and people with disabilities. Employment of local Indigenous members is likely to directly benefit household income and provide indirect community benefits through higher wages.
Due to the poor road access to the Project area it is not possible to transport the workforce from an offsite location or nearby population centre (e.g. Mapoon and/or Weipa) to the Project area on a daily basis. Therefore the workforce will be 100% FIFO.
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In response to the Infrastructure, Planning and Natural Resources Committee Report No. 9 Inquiry into fly-in, fly-out and other long distance commuting work practices in regional Queensland, the Queensland State Government detailed a range of measures to be adopted. These measures will be released later in 2016 as part of the Government's broader policy framework for FIFO and included inter alia:
. Workforce plans that maximise the opportunity for local workers to get jobs;
. Workers to live in local existing housing, or in purpose-built villages, where there is community support; and
. Accommodation that provides a safe, clean and healthy environment for workers.
Metro Mining’s approach to a 100% FIFO workforce does not contravene the Government response to prevent 100% FIFO projects. Metro Mining is seeking to maximise local and Indigenous employment; it is simply the lack of suitable road infrastructure, access and distances from townships that determines the requirement for FIFO. The Project’s FIFO workforce will be transported to the site by air and will be housed in the accommodation camp in the Project area. Approximately ten flights per week during construction and three flights per week, assuming 40 seater planes, will be required for the FIFO workforce during operations.
Charter flights will be arranged from Cairns directly to site, or going via Weipa. Should there be sufficient demand, charter flights will be arranged between Cooktown, Bamaga and the Project site. Aircraft would use the Northern Peninsula Airport, which services all communities in the Northern Peninsula Area for flights into and out of Bamaga. Cook Shire Airport will be used for flights into and out of Cooktown. Mapoon airstrip is not considered to be suitable for a 40 seater aircraft; however, there is potential that smaller aircraft could use this airstrip. Charter flights are expected to go via Weipa to refuel and collect passengers which could include workers from Mapoon.
16.7.1.2 Potential Business Opportunities Traditional Owners, councils, local businesses and service providers expressed the view that they wish to take advantage of potential business opportunities available through the Project. Viable and sustainable businesses are desired, leading to positive outcomes for Traditional Owners and local communities. A particular emphasis was placed on potential opportunities related to land and coastal management, agriculture, timber harvesting, civil construction, contract mining, eco- tourism services, training and development, seed collection and rehabilitation, cultural heritage management and general goods and services.
The construction and operations of the Project will provide employment and a range of business opportunities. Opportunities to reduce local dependency on one business supplier (Rio Tinto Alcan) are seen as desirable.
Metro Mining will encourage local business opportunities, particularly Indigenous business opportunities, and look for ways to form partnerships that provide good social and economic outcomes.
16.7.1.3 Transport and Site Access Issues General queries were raised regarding the different transport options and how this would impact on existing infrastructure. Once it was established that access would predominantly be via airstrip and barge, with limited road access and no current plans to use or upgrade any of the existing roads in the region, there were few issues identified. The slight additional increase in flights, given that the majority of FIFO flights for employees would be directly to the Skardon River airstrip, was not a
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significant concern to the local stakeholders. It is noted that FIFO operations will be employed by necessity due to the remote nature of the operation.
Metro Mining commits to maintaining at least the existing access controls, with potentially more stringent controls being required to limit access to the mining operations that may also reduce access concerns for sensitive environmental and cultural areas. Access to recreational fishing in the Skardon River and the existing bush camping, at the mouth of the river, will not be impacted, except for potentially diverting the existing access track away from the mining operations. In the Skardon River itself, the barge loading facility will extend a small way into the Skardon River, still allowing significant free access along all stages of the river for recreational purposes.
16.7.1.4 Exclusion of the Community The Traditional Owners and the existing freehold land owners raised concerns regarding not knowing what would be happening on their land during operations or being able to confirm if Metro Mining was complying with the agreed conditions.
Access to the site for Traditional Owners will be established and implemented through the Cultural Heritage Management Agreement (CHMA), facilitated through the Liaison Committee that will include members from the land owners (OMAC), the Traditional Owners (Ankamuthi and Northern Cape York Group #1) and Metro Mining. As part of the CHMA development Metro Mining and the relevant Indigenous parties have agreed protocols to facilitate how access to the site is arranged and undertaken.
Regular stakeholder communications, covering updates on the Project, will be undertaken as part of the stakeholder engagement.
16.7.1.5 Disruption to Community Cohesion Law and order and alcohol control were issues raised during consultation. These issues have the potential to cause deterioration in community cohesion and are interrelated with other issues raised such as domestic violence, child safety, health and youth crime.
The usual issues of interaction between workers and the community, and alcohol consumption at the accommodation camp leading to community impacts are made largely irrelevant for the Project considering the remote location of the site and the limited site access.
Another issue raised as part of community cohesion was the impact of FIFO rosters on both the employees, and their families located in the chosen base/s. Some stakeholders were concerned that a two week on, and one week off roster may cause negative impacts on employees, with anecdotal evidence suggesting an elevated risk of high stress levels, depression, binge drinking, recreational drug use and relationship break-ups. These would potentially decrease the community values and cohesion.
Given the extremely limited opportunity for interaction between the mining operations and the surrounding communities, the potential to negatively impact on community cohesion is considered to be low.
A study undertaken with Western Australia FIFO mining employees, The Effects of Fly-in/Fly-out Commute Arrangements and Extended Working Hours on the Stress, Lifestyle, Relationship and Health Characteristics of Western Australian Mining Employees and their Partners (Clifford, 2009), found that:
‘FIFO and extended working hours had negative impacts on employees’ work satisfaction and FIFO was frequently reported to be disruptive to employees’ and partners’ lifestyle, in the long-term. However,
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FIFO and extended working hours did not lead to poor quality relationships, high stress levels or poor health, on average in the long-term; there were generally no significant differences in these characteristics between FIFO and Daily Commute (DC) employees, or between the FIFO sample and the wider community.’
The report concluded that:
‘In conclusion, the project results largely dispute anecdotal evidence as FIFO employees and partners were generally no more likely to have high stress levels, poor relationship quality or poor health behaviours than DC employees or community samples. There was however a small proportion who found the working arrangements particularly stressful.’
A study undertaken by Beach and Cliff (2003), found that it was the disparity between work and family time that was the major problem with FIFO rosters, such that even lengthy rosters that had equal work to home ratios were sustainable (i.e. 28 days on, 28 days off), but that the greater the work to home ratio, the less sustainable the roster for employees. It is noted that as the Project only proposes to operate during the dry season. Employees will not only have their usual rostered time off, but will also have a block of time over the summer wet season (12 to 16 weeks) when they will not be required to be at work.
The Beach and Cliff (2003) study also showed that employee turnover at mines using the 14/7 pattern varied between 13% and 28%, with most being at the higher end of the range. The best performing site using a 14/7 roster (13% turnover) demonstrates that management at that mine had, in large part, offset the difficulties associated with the 14/7. The obvious difference at this mine was not financial incentives, but the commitment of management to develop and maintain a positive organisational culture that benefited all employees.
While the remote location of the operation necessitates FIFO operations, Metro Mining understands that the FIFO roster will be a significant factor in employee satisfaction and will look for opportunities to develop a roster that will be sustainable for the majority of employees.
16.7.1.6 Increased Demand on Community and Essential Services Health Services
The Project workforce will likely be a combination of local residents who can access the site by boat, and FIFO personnel, that will reside onsite during the construction and operational phases. The use of local residents will not change the current demand for community health services in the region. There may; however, be a minor increase to the demand for community services including medical health services. Typically minor illnesses and injuries will be treated onsite at the Project’s first aid facility and will not increase demand on health services. In some cases; however, emergency evacuation of patients may be required from the Project to Weipa or Cairns for more specialist healthcare provision. This increased demand will draw on the existing supply of such services for each hospital but is expected to be infrequent. Therefore the increased demand on health services is assessed as being of low socio-economic significance and no mitigation is proposed.
Education Services
It is not expected that there will be any significant in-migration of permanent residents to any of the communities within the study area as a result of the Project as the majority of the workforce is anticipated to be either sourced from the existing local communities, or be FIFO. Consequently, there is likely to be only limited additional demand placed on the local/regional educational infrastructure in the communities from where FIFO flights operate. It is anticipated that the 254 jobs created by the Project will be based in a number of the study area communities primarily Cairns
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Regional Council Area (~154), Mapoon Aboriginal Shire (~35), Northern Peninsula Area Regional Council area (~35) and Cook Shire (~30). On a conservative basis, if these positions were to all result in new community residents it would equate to increases in the existing local government area populations of 0.09% for Cairns, 11.29% for Mapoon, 1.34% for the Northern Peninsula and 0.63% for Cook Shire1. However, there would only be additional demand where FIFO workers and their families migrate into the communities for employment and this is expected to be limited. The Project is therefore not expected to have a significant impact on the existing educational services. As such no mitigation is proposed.
Emergency Services
There is unlikely to be an increased demand on ambulance and paramedic services within the socio- economic study area during the construction and operations phases of the Project. The distance and relative inaccessibility of the Project area to vehicular traffic, limits the extent to which ambulance and paramedic services would be utilised. Any major medical emergencies are expected to call on local or regional air rescue services such as the Royal Flying Doctor Service or by the Emergency Management Queensland Cairns based rescue helicopter service.
In terms of police and fire and rescue response it is estimated that vehicle access to the site would take in the vicinity of 15 hours. Onsite emergencies such as fires, chemical spills and onsite security matters will in the first instance be managed by appropriately trained Project staff. Onsite emergency services mitigation measures will be managed through a Project Emergency Response Plan (ERP) (see Chapter 18 – Hazard and Safety). In the unlikely situation that police or fire and rescue services are required to attend the Project area it is anticipated that the demand on existing services would be of short duration. It is expected; however, that the onsite response capabilities will help to minimise any burden on the police and fire and rescue services.
In the unlikely event of an incident at sea or in the Skardon River, there may be an increase in demand for sea rescue and maritime incident services. Given the infrequency of such events, and the unlikely event of multiple events occurring at the same time, in it not expected that there will be a discernible increase in demand for such services. The Project will consult with the relevant agencies to ensure appropriate management actions are included in the Project’s Emergency Response Plan (ERP). The overall impact on emergency services has been assessed as being of low socio-economic significance.
Essential Services
There are no impacts to essential services anticipated from the Bauxite Hills Project. Essential services such as water supply (via groundwater sources that are not connected to community supplies), sewage (treated and managed onsite) and electricity (supplied via onsite generators) will be contained to the Project site and will not draw on public infrastructure or supply. It is noted that the Weipa township utilises shallow aquifers for potable water supplies; however, the groundwater impact study has confirmed that Project operations will not impact this supply (refer to Chapter 10 – Water Resources).
Telecommunications services will be via existing providers and the Project is considering the installation of communications infrastructure at site or at Mapoon to optimise existing telecommunication services. Waste management services will be supported by licenced contractors with waste removed from site and taken to existing licenced facilities, likely to be situated in Weipa
1 These numbers are for planning purposes only and will be confirmed during recruitment.
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and/or Cairns. The Mapoon landfill will not be used to service the Project as it currently does not have capacity to do so.
Any additional load placed on essential services is therefore not expected to significantly affect the existing supply of these services at any of the communities within the socio-economic study area, as the load will be borne at the Project site. The increased demand on essential services outside the Project area associated with the Project construction and operation is therefore likely to be of negligible socio-economic significance and no mitigation is proposed.
Transport Infrastructure
The Project does not propose to use or modify the existing road network outside of the Project area (see Chapter 2 – Description of the Project and Chapter 17 – Transport). Consequently no demand on the existing road infrastructure is anticipated. Consequently no further mitigation is proposed.
The Project will utilise Cairns, Cooktown and/or Bamaga airports as the primary location to transfer the FIFO workforce to the Skardon River airport. The air movements associated are within existing capacity of the airports and as such the Project is anticipated to have a negligible socio-economic impact on the community due to increased usage of the Airports (see Chapter 17 – Transport). The Project may utilise the Weipa airport on an infrequent basis. The infrequent nature of the usage is anticipated to have a negligible socio-economic impact on the community due to increased usage (see Chapter 17 – Transport).
Given the negligible anticipated socio-economic impacts associated with the increased usage of local and regional airports no mitigation is proposed.
Community and Recreational Facilities and Services There are no community or recreational facilities or services in the local Project area, although some recreational facilities will be developed as part of the onsite accommodation camp. The remoteness of the site and reliance for air or sea transport to access any external townships significantly limits the extent to which existing facilities in those communities will be used by Project employees. As identified within the Education Services section above, increases in the populations of the anticipated employee source communities (as a result of the Project) will only occur if people move to the areas specifically for this work (i.e. not through utilising existing residents). Based on the conservative percentages presented in the Education Services section, potential population increases are considered minor and therefore impacts to community and recreational facilities are unlikely. Should workers use existing recreational facilities within the socio-economic study area, it is expected that any increase in demand will be infrequent and of short duration. As such the Project is anticipated to have a negligible socio-economic significance impact on the community due to increased usage of recreational facilities and services. Consequently no mitigation is proposed. 16.7.1.7 Demographic Changes The Project is not predicted to cause any significant increase in local community populations as the aim is to employ as many local people as possible (that is those that already live in the towns). Where local employees are not possible, people will reside in one of the larger regional communities, for example Cairns. Cairns currently has a population of over 150,000, therefore even if a worst case scenario of every employee being based out of Cairns, and every employee being part of a four person family, an additional 1016 people may be located in Cairns, which is approximately a 0.6% increase in the population. The use of local residents may encourage a higher proportion of the working aged population to maintain residence in the local area rather than look elsewhere for work. This could result in decreased mobility of the local population.
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16.7.2 Economic Impacts
The economic impact assessment used a risk based framework where the anticipated interaction of probability and consequence of impacts occurring were identified (refer to Section 16.10). Figures used throughout this section have been taken from the Economic Technical Report included as Appendix H. The anticipated beneficial and adverse impacts associated with the construction and operation of the Project is outlined in Table 16-16. Table 16-16 Beneficial and adverse impacts Beneficial Impacts Economic growth product during the construction phase (short term) and operational phase (to a lesser extent, but longer term) of the Project flowing from direct and indirect impacts Export revenue associated with the sale of bauxite, which in turn facilitate the payment of royalties to the Queensland Government in the order of $36 million/year once the mine is fully operational Potential small increase in the Cape York local population through the attraction of operational workers Increased employment opportunities for Cape York residents including residents of Indigenous communities [i.e. Ankamuthi People, the Northern Cape York Group #1 and The Old Mapoon Aboriginal Corporation (OMAC)] Opportunities for local Cape York and FNQ suppliers to support the construction and operation of the Project Adverse Impacts Opportunity cost of the Project in terms of lost ecosystem services Tightening of the local and regional labour market potentially resulting in increased labour costs Potential for skills shortages Potential localised inflation in the local Cape York housing market Potential localised inflation in Cape York commercial and industrial property markets Increased burden on Cape York infrastructure, particularly during the construction phase (for example barge landings and airstrips) 16.7.2.1 Economic Contribution The economic contribution within both the FNQ Region and Queensland is anticipated to be highest within the mining, transport, postal and warehousing sectors. The following section explains the direct and indirect economic contribution during the construction phase and operational phase. The anticipated peak output, household incomes, employment and value added is also provided below.
Construction Phase Contribution The contribution of the Project to the FNQ Region and rest of Queensland economy during the construction phase is summarised in Table 16-17.
Table 16-17 Summary of construction phase contribution FNQ Region Rest of Queensland Output ($M) Direct $38.96 $11.18 Indirect $14.61 $11.68 Total $53.57 $22.86 Household Income ($M) Direct $7.51 $2.33 Indirect $3.41 $2.73 Total $10.92 $5.05 Employment (FTEs) Direct 66 20 Indirect 52 40 Total 118 60 Value Added ($M) Direct $13.27 $3.94 Indirect $5.84 $4.81 Total $19.11 $8.75 Note: Estimates have been calculated and rounded by Economic Associates
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Operational Phase Contribution
The Project is anticipated to operate over a 12 year period, with bauxite production anticipated to commence in 2017. A summary of the average annual contribution, during the operational phase of the Project, to the FNQ Region and rest of the Queensland economies is provided in Table 16-18. The FNQ Region is anticipated to experience the most significant operational stimulus from the Project.
Table 16-18 Summary of average annual operational phase (2016 to 2043) contribution FNQ Region Rest of Queensland Output ($M) Direct $67.17 $16.79 Indirect $20.57 $13.88 Total $87.74 $30.67 Household Income ($M) Direct $15.37 $3.84 Indirect $4.86 $3.18 Total $20.23 $7.02 Employment (FTEs) Direct 181 45 Indirect 72 45 Total 254 90 Value Added ($M) Direct $29.78 $7.45 Indirect $8.82 $5.90 Total $38.61 $13.34 Note: Estimates have been calculated and rounded by Economic Associates
Peak Output Contributions
Output contributions are anticipated to peak over the 2019 to 2026 period for both the FNQ Region and the rest of Queensland. The peaking in the output contributions are in line and relate to the peaking in supply chain expenditures made during the operating period of the Project. During the 2019 to 2026 period, the peak output or consumption effects of the Project are estimated at:
. FNQ Region: total output or consumption contribution of $97.24 million, comprising direct contribution of $74.45 million and indirect contribution of $22.79 million; and
. Rest of Queensland: total output or consumption contribution of $34.00 million, comprising direct contribution of $18.61 million and indirect contribution of $15.38 million.
Peak Household Income Contributions
The FNQ Region is anticipated to experience the most significant operational stimulus from the Project. Household income contributions are anticipated to peak over the 2019 to 2026 period for both the FNQ Region and the rest of Queensland.
During the 2019 to 2026 period, the peak household income effects of the Project are estimated at:
. FNQ Region: total household income contribution of $22.42 million, comprising direct contribution of $17.03 million and indirect contribution of $5.39 million; and
. Rest of Queensland: total household income contribution of $7.78 million, comprising direct contribution of $4.26 million and indirect contribution of $3.52 million.
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Peak Employment (FTEs) Contributions
Employment impacts estimated as part of the regional impact modelling report full-time equivalent positions (FTEs), which represent a quantum of work (approximately 1,800 hours) within a given period. Hence there is little concordance between operational workforce estimates and FTE estimates.
The FNQ Region is anticipated to experience the most significant operational stimulus from the Project. Household income contributions are anticipated to peak over the 2019 to 2026 period for both the FNQ Region and the rest of Queensland.
During the 2019 to 2026 period, the peak employment effects of the Project are estimated at:
. FNQ Region: total employment contribution of 280 FTEs, comprising direct contribution of 200 FTEs and indirect contribution of 79 FTEs; and
. Rest of Queensland: total employment contribution of 100 FTEs, comprising direct contribution of 50 FTEs and indirect contribution of 50 FTEs.
Peak Value Added Contributions
The FNQ Region is anticipated to experience the most significant operational stimulus from the Project. Value added contributions are anticipated to peak over the 2019 to 2026 period for both the FNQ Region and the rest of Queensland.
During the 2019 to 2026 period, the peak value added effects of the Project are estimated at:
. FNQ Region: total value added contribution of $42.79 million, comprising direct contribution of $33.01 million and indirect contribution of $9.78 million; and
. Rest of Queensland: total value added contribution of $14.79 million, comprising direct contribution of $8.25 million and indirect contribution of $6.53 million.
16.7.2.2 Opportunity Cost of the Project Opportunity cost refers to the loss of other economic opportunities as a result of the Project. The opportunity cost of the Project is expected to be limited to the direct impacts on vegetation communities with the land currently not utilised for a significant economic purpose. The Project is anticipated to impact a range of vegetation communities. These impacts will occur as a result of both the construction and operational phases of the Project. Based on the expected Project footprint, it is estimated that the direct impact on vegetation communities is approximately $3.37 million per year. This value is based on the impacts to:
. Woodland complexes: WorleyParsons (2013) estimates a number of ecosystem service values for forests, ranging from $1,160 per hectare per year (/ha/yr) to $2,150/ha/yr. This study adopts a value representing the midpoint of the WorleyParsons values of $1,655/ha/yr. With an expected clearance of 1,429.89 ha an annual value of $2.37 million in direct impact on vegetation communities is expected; and
. Wetlands: A study by Constanza et al. (1997) estimated a wetland value of $27,200/ha/yr. Based on an expected 37.05 ha clearance Costanza et al. (1997) implies a direct impact of approximately $1.01 million per year.
It is unavoidable that the Project will result in significant land clearing to allow the open cut mining to be undertaken; however there are a range of mitigation measures that will be undertaken to
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minimise the environmental impacts associated with these activities. Metro Mining is proposing to undertake progressive rehabilitation works to leading industry standards, such that only the minimal area required for operations will be cleared at any given time, riparian buffers and biodiversity corridors are maintained wherever possible, and that the same or similar environmental values will be returned to the area post-mining. In addition, areas of specific environmental significance are being avoided wherever possible e.g. Of-Concern Regional Ecosystems, and offset to meet both State and Commonwealth legislation where the impact cannot be avoided. While there is impact resulting to the local ecosystems from the proposed mining operations, it should be recognised that this report has been extremely conservative by assuming that the entire area will be cleared from Year 1, and will remain with no ecosystem values at all until the end of the Project. In reality, the actual value of lost ecosystem services is likely to be significantly below what has been allowed for. 16.8 Cumulative Social Impacts The section contains a high level assessment of cumulative impacts of the Project in context of other resource projects and operations in the surrounding area, based on publicly available information for those projects.
16.8.1 Surrounding Projects and Scheduling
The resource projects and operations surrounding the Project which have been considered for the social cumulative impact assessment are outlined below.
Gulf Alumina Skardon River Bauxite Project (SRBP) – Gulf Alumina proposes to develop a 3 to 5 million tonne per annum (Mtpa) bauxite mine on three mining leases immediately adjacent to the Bauxite Hills Project area (Figure 16-15). The operational SRBP life is expected to be 12 years, with a construction period of approximately 1 year and post mining decommissioning and final rehabilitation period (Gulf Alumina, 2015).
The total disturbance area for the bauxite mine across all three mining leases is approximately 1,515 ha. Bauxite products would be transported via the existing and new haul roads to the Port of Skardon River and transhipped by barge to bulk carriers in deep water beyond the mouth of the river for export. Construction is planned to commence in 2016 and bauxite mining and shipping would commence in 2017.
Employees would be accommodated in the upgraded accommodation camp during the construction and the mining operation phases. The project would require approximately 100 employees during construction and 160 employees during operation. Depending on demand, FIFO will be offered from Cairns, Weipa, Mapoon and Bamaga (Northern Peninsula) airports.
Rio Tinto Alcan Weipa Bauxite Mine – The Weipa operations consist of two continuous mining operations at East Weipa and Andoom, two beneficiation plants, 19 km of railway to transport mined bauxite to the port area, two stockpiles and two ship loaders. Mining operations occur on mining leases MLA 7024 and MLA 7031, spanning 3,860 km2 north of the Embley River. The existing operations employ approximately 1,400 direct Rio Tinto Alcan employees and contractors (Rio Tinto Limited, 2015).
Rio Tinto Alcan owns 237 of the approximate 1,163 dwellings in Weipa. The remainder of dwellings are owned privately and by Government agencies. The Rio Tinto Alcan workforce lives locally in
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predominately privately owned homes and two single person accommodation villages located at Rocky Point (140) and Evans Landing (200) (Rio Tinto Alcan, 2013).
Rio Tinto Alcan Amrun (formerly South of Embley) Bauxite Project – This project involves the construction and operation of a bauxite mine and associated processing facilities, barge and ferry terminals, and a port. The project involves a staged increase in production up to 50 Mtpa with an initial installed capacity of 22.5 Mtpa. The initial construction phase is expected to take approximately three years. The estimated capital cost to establish 22.5 Mtpa capacity is approximately $1,900 million. The project is located near Boyd Point on the western Cape York Peninsula, approximately 40 km southwest of Weipa and 40 km north of Aurukun. Construction is anticipated to take between 30 and 36 months and construction workforce numbers are anticipated to vary over that period, averaging approximately 1,400 full-time equivalents (Rio Tinto Alcan, 2013).
The project construction workforce is proposed to be housed predominately in a temporary onsite camp near the Boyd infrastructure area. When not on roster, the construction workers would return to their point of hire (Rio Tinto Alcan, 2013). The proponent also proposes an onsite 200 bed camp for contractors to address short-term accommodation pressures during construction. The project would result in an increase in the amount of operational workers by 173 at 22.5 Mtpa and 139 at 50 Mtpa. The reduction in the secondary figure being due to a cessation of mining north of the Embley River as part of the Rio Tinto Alcan Weipa operations discussed above.
Public feedback as part of the project EIS consultation raised a number of key issues. While the Bauxite Hills Project will be significantly smaller than the Amrun project the issues raised are considered relevant and included:
. Traffic and transport;
. Land and sea management;
. Community consultation and engagement;
. Employment, training and educations opportunities;
. Breakdown in community cohesion;
. Water supply;
. Opportunities for business development; and
. Workforce arrangement (Rio Tinto Alcan, 2013).
On 27 November 2015 Rio Tinto Alcan Limited announced business approval to proceed with the Arum project at the 22.5 Mtpa quantity (Rio Tinto Limited 2015). Production and shipping are expected to commence in the first half of 2019, ramping up to full production by the end of the year (Rio Tinto Limited, 2015). Although construction will take 3 years (beginning in 2016), the majority of capital expenditure for the Amrun project is scheduled for 2017 and 2018 (Rio Tinto Limited, 2015).
Glencore Aurukun Bauxite Project – On 19 August 2014, Glencore was selected by the Queensland Government as the preferred developer for bauxite resources south of Weipa and to the east of Aurukun (Department of State Development, 2015). Glencore is proposing an initial small-scale bauxite mine producing up to 6 Mtpa over a 20 year mine life. Glencore has applied for a Mineral Development Licence (MDL) (Glencore, 2016). The MDL is necessary for Glencore to undertake
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onsite feasibility and environmental studies for the project. Grant of the MDL is dependent on resolution of native title (Glencore, 2016). No schedule or detailed project documentation was available at the time of writing this EIS and as such estimates of potential cumulative impacts are limited.
Green Coast Resources Hey Point Bauxite Project – Green Coast Resources Pty Ltd is proposing to develop a small bauxite mine at Hey Point approximately 10 km south of Weipa, adjacent to the Rio Tinto Amrun Project. The project will produce a total of 4 Mt of bauxite over 3 years. Bauxite mining will only occur during the dry season and raw ore product will be directly conveyed to a barge for export. The total capital and operational expenses over the life of the project are estimated at $100 million. The project has a total anticipated workforce of 12 employees at peak and has committed to sourcing locally. Personnel are proposed to be transported to site either by bus from Aurukun and/or by boat from Napranum. The project has commenced operations but has not currently shipped any material.
In accordance with the Coordinator-General’s Social Impact Assessment Guideline 2013 a cumulative impact for the purpose of this assessment is a successive, incremental and combined impact (both beneficial or detrimental) of an activity or multiple activities on communities of interest. Cumulative social impacts from the Project are likely to be similar to the impacts discussed in Section 16.7.1 above; however, the severity of impact is likely to be greater should construction and operation of the Project coincide with one or more of the abovementioned projects.
The schedule of the Project construction in relation to the SRBP, Amrun and Hey Point bauxite projects is shown at Figure 16-14. The construction of the Project is anticipated to coincide with construction of the Amrun project and would proceed immediately following construction of the SRBP. The peak construction workforce for SRBP (100) is greater than that of the Project (75) and therefore (without fully understanding the Amrun project’s manning schedule) it is likely that cumulatively the construction workforce across all three projects will peak between the second half of 2016 and first half of 2017.
Figure 16-14 Timeframe for Bauxite Hills and surrounding projects
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16.8.2 Potential Cumulative Impacts
Based on stakeholder input, and a review of the existing baseline social conditions, the following potential impacts are discussed with consideration to potential cumulative effects.
16.8.2.1 Opportunities for Employment The proponents for each of the three projects displayed in Figure 16-14 have committed to utilising local and Indigenous staff where possible. In addition, all proponents have included strategies to facilitate the inclusion of locals in their workforces. As such, opportunities for employment in the local area and general region are likely to increase and this is considered a beneficial cumulative impact of the projects. It is noted that, with construction of the Project slated to begin immediately following completion of construction for the SRBP, the higher level of construction workforce is expected to be maintained for a two year period with only a slight drop in the overall construction workforce (25 people) following completion of SRBP in 2017.
With the exception of Weipa and Cairns, the surrounding communities have unemployment ranging from 13.5% to 37.4% with an unemployed labour force of 686 (Table 16-8). Successful integration of locals into the construction and operation of the projects will place downward pressure on unemployment and likely increase household incomes. Metro Mining has committed to maximising opportunities for local community members, in particular local Indigenous persons, women and people with disabilities.
16.8.2.2 Potential Business Opportunities Development of the Project provides business opportunities at both the local and regional scale. The majority of capital expenditure for the Amrun project is scheduled for 2017 and 2018 (Rio Tinto Limited, 2015). Construction of the SRBP and Bauxite Hills projects is scheduled to coincide with the Amrun capital expenditure peak and therefore peak cumulative supply and service demand is anticipated between this 2017 to 2018 period. The cumulative impacts of the projects may encourage establishment of new local businesses to supply the projects and it may enable expansion of existing small business.
However, increased demand for local supplies and services also has the potential to limit availability and increase prices. Cumulatively, all proponents will need to monitor supplies from surrounding communities and alleviate shortages or price increases to prevent impacts on the communities. It is also noted that increase local employment and business opportunities may act to insulate the region’s economy from general economic downturns.
16.8.2.3 Transport and Site Access Issues The Projects will inhibit direct access to the approved Mining Leases. This poses a direct impact to local residents and Indigenous communities who utilise these areas for recreational and cultural activities. However, direct land access to various project areas is already extremely limited and there is only one formal campground likely to be impacted by the developments (the False Pera Head camping ground impacted by the Amrun project). The existing informal camp ground at the mouth of the Skardon River will not be directly impacted. As such, potential site access issues are considered minor and access to land by Indigenous groups for the Project will be managed through the CHMAs and the existing arrangements with the OMAC people that manage the camping area at the mouth of the Skardon River.
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16.8.2.4 Exclusion of the Community While the community will by physically excluded from the project areas, management measures are being developed to maintain public access routes (through realignments) and allow Indigenous groups access in accordance with the Projects CHMAs. While the projects have acknowledged utilisation of locals there may be a number of communities that could be excluded. For example, Aurukun which has the highest unemployment rate of any community in the study area (37.4%) risks being excluded from the potentially large cumulative employment opportunities and indirect benefits due to distance and access issues. Limiting of opportunities to certain towns and shires may also create tension between the communities leading to disruption of community cohesion.
Employees of the Rio Tinto’s Amrun project will primarily commute from Weipa and Napranum. However, the project EIS included commitments to facilitate access and transport for Indigenous residents of Aurukun who work at the mine. In addition, Rio Tinto will continue an ongoing employment program (the destinations program) aimed at Aurukun residents. The Amrun project is much closer to Aurukun than the existing operations and employment opportunities for the Aurukun community are expected to improve.
16.8.2.5 Disruption to Community Cohesion Each of the proposed developments involve some degree of FIFO employment. Potential exists for disruption of community cohesion through altered working patterns where employees are away from their place of residence and families for extended periods. However, as discussed in Section 16.7.1.5 these impacts are anecdotal and, while FIFO workforce arrangements are necessary due to the remote location, the proponent for Bauxite Hills will be seeking to develop a working culture and FIFO roster that maximises employee satisfaction and limits impacts. In addition, employees will receive a 12 to 16 week break during the wet season.
16.8.2.6 Increased Demand on Community and Essential Services The Amrun Project is anticipated to have the greatest draw, both individually and cumulatively, on community and essential services within the Weipa area and broader community. The SRBP and the Bauxite Hills Project will be largely self-sufficient (i.e. power, water and sewage infrastructure) or will place a negligible increase in demand on existing essential services (communications and waste services). In regard to community services the distance from existing community services and associated infrastructure, together with the lack of accessibility to both Projects, effectively limits the demand on community services. Furthermore, the commitment of both Projects to have appropriately trained staff onsite to management illness/injury and natural and operational incidents further minimises the cumulative demand on community services.
16.8.2.7 Demographic Changes Cumulatively, the projects will result in an influx of working aged employees. However, impacts from demographic changes are likely to be limited as each of the projects will be accommodating staff within purpose built accommodation precincts external to the townships. Interactions of project staff and the community is more likely to occur with the Amrun project than the more isolated SRBP and Bauxite Hills Project.
A number of stakeholder groups raised concerns regarding significant duplication of infrastructure and services, particularly between this Project and the proposed SRBP. Although there will be a scheduling overlap between the two projects (refer to Figure 16-14), and cumulative social and environmental impacts will arise, Metro Mining will work in conjunction with Gulf Alumina to avoid or limit these potential impacts.
16-45 141°30'0"E 142°0'0"E 142°30'0"E
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AR SK D O N RIVER
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C Watercourse R OE E N RI V 13°30'0"S VE 13°30'0"S I R Surrounding Projects R
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R Gulf Alumina Skardon River Bauxite Project A Rio Tinto Alcan Weipa Bauxite Project Rio Tinto Alcan Amrun Bauxite Project SC RUB Glencore Aurukun Bauxite Project RUNNING CREEK BY C R E E Hey Point Bauxite Project K
141°30'0"E 142°0'0"E 142°30'0"E
Details Date R ©COPYRIGHT CDM SMITH DISCLAIMER This drawing is confidential and shall only be DESIGNER CLIENT Figure 16-15 1 Details 28/01/16 used for the purpose of this project. CDM Smith has endeavoured to ensure accuracy and completeness of the data. CDM Smith assumes Surrounding projects - - - DESIGNED MD CHECKED TK / no legal liability or responsibility for any decisions 015 020 - or actions resulting from the information contained - - DRAWN CHECKED MD TK Kilometres within this map. - - - Scale @ A3 - DATA SOURCE APPROVED - DATE 29/03/16 1:660,000 MEC Mining 2015; - - - GCS GDA 1994 QLD Government Open Data Source; Notes: DRG Ref: 003-R1_SURROUND_PROJ - - - Australian Government Bureau of Meteorology. F:\1_PROJECTS\BES150115_Bauxite_Hill\GIS\DATA\MXD\FINAL\ERA\SOCIAL\003-R1_SURROUND_PROJ.mxd Bauxite Hills Project Social and Economic
16.9 Management and Mitigation Measures The following sections provide potential measures to avoid, minimise and mitigate adverse impacts and optimise positive impacts. Management and mitigation measures are made with consideration to the ToR, the tools provided by the International Council on Mining and Metals and existing stakeholder consultation outcomes.
16.9.1 Social Management and Mitigation Measures
A range of mitigation strategies are proposed both to enhance the positive social impacts and mitigate the negative social impacts arising from the development and operation of the Project. The management and mitigation measures described below are those that Metro Mining has control over and does not refer to matters that are the responsibility of government agencies and other parties. The following management plans will also influence the management of potential social impacts and opportunities:
. CHMAs;
. Stakeholder Engagement Plan (SEP); and
. ERP.
16.9.1.1 Cultural Heritage Management Indigenous cultural heritage management is important to both the Ankamuthi People and the Northern Cape York Group #1, who are the recognised Native Title Claimants, together with OMAC as the freehold land owners.
The management and mitigation of impacts on Indigenous cultural heritage are dealt with in the CHMA. Metro Mining will use a range of cultural heritage management processes and procedures that have effectively been implemented throughout Queensland, in consultation with the Ankamuthi.
The Ankamuthi People (QUD6158/98) and the Northern Cape York Group #1 (QUD157/11) have been identified as being the relevant Aboriginal parties for the Project area. Indigenous heritage resources within impact areas will be identified during dedicated field surveys conducted by the relevant Aboriginal party as agreed in the CHMA. The conduct of the cultural heritage study and the implementation of site protection or remediation measures will be specified in the approved CHMA.
The Ancillary Agreement concluded under the RTN process with the Northern Cape York Group #1 and the Ankamuthi People, as well as OMAC as the land owners, includes the CHMA. The CHMA will be active throughout the life of the Project and incorporates monitoring, survey, fieldwork, analysis and consultation.
The mitigation measures included within the CHMA will be comprehensive and apply throughout the construction, operation and decommissioning of the Project and will entail procedures that will include (but not be limited to):
. In the first instance, avoiding known areas of Indigenous cultural heritage significance wherever practical e.g. the removal of Big Footprint Swamp from the mining lease application area;
. Undertake pre-construction Indigenous cultural heritage surveys with the assistance of recognised Traditional Owners;
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. Employee inductions will include details of the Aboriginal history of the area and the likely types of Indigenous cultural heritage material or items which may be in the area to assist identification of unknown items or material they may encounter in the field. Training will include the procedure to follow if an item of cultural heritage significance is identified or suspected at a location;
. A ‘stop’ and ‘report’ process whereby if any unrecorded items or sites of possible Indigenous heritage significance are found, work that may impact the find will cease until the significance of the item or site can be confirmed by a suitably qualified person;
. A site recording programme including accurately recording/updating the global position system (GPS) co-ordinates of sites for which GPS co-ordinates are not available or are inaccurate;
. A protocol for the development of site specific conservation plans for areas of Indigenous cultural significance identified within the Project area, as agreed with the Aboriginal party; and
. Collecting and relocating cultural heritage items, as agreed with the relevant Aboriginal parties.
Management measures will be of a scale commensurate with the Aboriginal heritage sites’ cultural significance. Following completion of the Project, cultural heritage items recovered prior to construction and objects identified and salvaged during construction may require management and safe keeping.
Further details are included in Chapter 15 – Cultural Heritage.
16.9.1.2 Workforce Management Metro Mining is developing workforce management strategies and will continue to do so as Project planning and engagement with stakeholders’ progresses.
The mine site is remote from any town or settlement. The nearest town is Mapoon, population 300, which is over 300 km by road and is accessible only to 4WD vehicles. All positions within the Project will require the incumbent to reside onsite during their working roster, in the accommodation provided by Metro Mining.
The composition of the workforce and the source of workers will not be known until recruitment commences. Recruitment will; however, be focussed on residents in the local area with preference given to Traditional Owners and local Indigenous people, followed by other residents from the Northern Cape York area. Metro Mining is also committed to maximising Project employment opportunities for women and people with disabilities.
In developing the employment strategy, Metro Mining is working with relevant stakeholders to ensure realistic targets are set and theses target are met.
Recruitment, Training and Development
Metro Mining will be partnering with a regional employment and training organisation to assist with the recruitment and skilling of personnel for the Project. The organisation will likely educate apprentices and trainees locally in Weipa and will be a single point of contact for prospective employees. Early discussions are currently being held with an accredited Indigenous Vocational Training and Employment Centre in regard to implementing a range of specific recruitment and training initiatives with emphasis on Indigenous, local, female and disabled employment for the Project. One of the primary initiatives under consideration is a 13 week local ‘live in’ training program to promote a focused learning environment that is comfortable and familiar to
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participants. This would also allow Indigenous participants to be on (or close) to country to ensure they still feel connected to family and community. Final initiatives will be confirmed closer to Project operation.
Workforce Accommodation
A fully catered workers accommodation facility will be located at the mine site for employees and contractors. The accommodation village will offer a high level of amenity, which will contribute to a healthy workforce. Ensuring adequate access to exercise and other recreational facilities, along with modern communication facilities, will also contribute to the health and social wellbeing of workers.
Construction, Operation and Decommissioning Phases
Recruitment and management of the workforce during all phases of the Project will largely be the responsibility of contractors and subcontractors appointed to undertake various components of the Project. The contracting strategy requires contractors to have recruitment and training programs in place, along with a local and Indigenous employment policy. The contractors will be required to comply with the environmental authority conditions and any other relevant approval conditions and environmental management plans.
Workplace Health and Wellbeing
Metro Mining has comprehensive, risk based health and safety plans which comply with the Mineral Resources Act 1989 and Work Health and Safety Act 2011 for the current level of operations. These plans are being updated to meet all requirements of the MR Act and will be in place prior to the commencement of construction. These plans are focussed on the physical safety of workers while onsite. Equally as important is the general health and wellbeing of workers. If workers are not physical and mentally healthy they are less able to perform their duties, they can be fatigued, distracted by issues in the home and become unsafe in the workplace.
There is considerable debate in regard to mining operations that engage FIFO workers, including the impacts on health and wellbeing. Metro Mining is taking a proactive approach to the health and wellbeing of employees through a number of strategies and programs including:
. An Induction Program which outlines expectations and includes education and awareness of fitness for work requirements to maintain a strong focus on health and safety and a high level of awareness of personal responsibilities for health and safety;
. Provision of health, fitness and recreational facilities and ensuring healthy choices are available within the accommodation village dining area;
. Requirements in relation to safe work practices and fitness for work, including fatigue, drugs and alcohol education and testing programs; and
. Education regarding both the challenges and opportunities being a FIFO worker presents. This will include encouragement and support for staff to gain advice in relation to financial planning, and to get involved in mining support groups such as mining family matters www.miningfm.com.au and FIFO families www.fifofamilies.com.au.
Workforce Behaviour
Workforce behaviour will be managed by setting clear expectations of anticipated behaviour through the development and implementation a Code of Conduct for workers which will be presented to the workforce in the induction process. The clear expectations of contractors and
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employees will be identified through determining the environment and appropriate behaviours Metro Mining wishes to create and promote onsite and in the accommodation village. These behaviours will then be developed into the Code of Conduct.
The Code of Conduct will include (as a minimum):
. Equal opportunity in the workplace;
. Tolerance of and respect for race, gender, religious views, political views and sexual preferences;
. General behaviour, including aggressive and threatening behaviour;
. Behaviour when travelling between the place of residence and the accommodation village;
. Use of facilities and services and respect for property of Metro Mining and individuals;
. Zero tolerance of alcohol when in the workplace;
. Responsible consumption of alcohol within the accommodation village and when off-shift;
. Zero tolerance of illegal drugs in the workplace and the accommodation village;
. Possession of guns and other weapons; and
. Compliance with all Metro Mining policies, including:
• Occupational Health and Safety Policy
• Environmental Policy
• Community and Social Responsibility Policy
• Diversity Policy.
The corporate governance policies are publically available on Metro Mining’s website at - http://www.metromining.com.au/about-us/corporate-governance/corporate-policies/.
The Code of Conduct will be explained to workers in inductions and there will be an ongoing program to maintain awareness of requirements and encourage worker commitment to establishing a positive culture at the mine and accommodation village. Employment agreements will include consequences for not following the Code of Conduct.
Contractors will also be required to manage workforce behaviour in accordance with Metro Mining standards and requirements.
16.9.1.3 Procurement Metro Mining will advertise for goods and services in the region, giving preference to local contractors when they are able to meet the tendering requirements and are competitive with other suppliers. Preference will favour, in order of priority, suppliers from: (i) the Northern Peninsula (Bamaga), Mapoon and Weipa area, (ii) Cape York Region/North Queensland, (iii) the rest of Queensland, and (iv) elsewhere in Australia.
In accordance with the Queensland Resources and Energy Sector Code of Practice for Local Content, Metro Mining will develop a local content strategy that will:
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. Ensure the principle of the code is communicated and integrated within the procurement strategies and procedures of Metro Mining and within the Project supply chains;
. Ensure early and ongoing engagement of local industry and:
• Promote procurement opportunities to local industry (including effective communication of scope of works and tender opportunities)
• Promote capability requirements to local industry
. Identify capable local industry; and
. Engage with contractors or subcontractors on the basis of the most competitive tender proposal, that shall include (amongst other things) consideration of direct and indirect cost factors, past performance, reliability, maintainability, innovation, whole-of-life costs, value, safety compliance, environmental sustainability performance, financial capability, and supply chain reliability.
Metro Mining will monitor and evaluate the effectiveness of the Local Content Strategy. Metro Mining will also seek to promote local businesses either through direct use of their services or indirect promotion of goods and services to employees. This may include, but not be limited to, identifying appropriate recreational opportunities (i.e. tourism ventures) to employees and opportunities to support locally sourced produce (i.e. agriculture) within induction material and ongoing employee correspondence.
16.9.1.4 Stakeholder Engagement The Stakeholder Engagement Strategy will be developed as a management tool for use by Metro Mining to build awareness, acceptance and ultimately, an understanding of the mining operations. It will be designed to maximise community and stakeholder input into the mining operations through capacity building and two-way communication mechanisms which will be in place for the life of the mine. It also outlines the communication tools which will be used and the purpose of these tools. The Strategy will remain a dynamic document and will be updated as required throughout the life of the mine.
The Strategy will be based on the Social Impact Assessment Guideline – July 2013 issued by the Coordinator General in conjunction with EHP. The Guideline has been prepared to assist proponents to assess the social aspect of their projects, promote a risk-based approach to social impact assessment and focus on outcomes to encourage innovative solutions to capitalise on social opportunities and mitigate detrimental impacts that may arise from the Project.
A core principal of the Guideline is to ensure communities of interest are engaged in a meaningful way during the development of the social impact assessment and community consultation phase of the EIS, recognising local knowledge, experience, customs and values. The Guideline encourages community participation across the project lifecycle.
In addition to the Guideline, the International Association for Public Participation’s (IAP2) Public Participation Spectrum (shown in Figure 16-16) has been considered in the community consultation program. The Spectrum includes opportunities to inform, consult, involve, collaborate with and empower stakeholders, including local communities and the wider public.
For the purposes of managing the level of engagement with stakeholders, stakeholders have been grouped as follows:
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. Level 1: Landholders, registered Native Title claimants or body corporates, underlying tenure holders and local government;
. Level 2: Key stakeholders and local communities; and
. Level 3: General public, community and special interest groups, wider regional and state-wide Project communication.
For Level 3 stakeholders the level of participation for this Project is anticipated to be inform and consult, for Level 2 stakeholders inform, consult and involve, and for Level 1 stakeholders, collaboration is anticipated (Figure 16-16). The stakeholders’ ability to influence decisions depends on the decision type and what aspects of the Project are negotiable and what aspects are non- negotiable. The process is intended to be flexible and open to including all stakeholders to the maximum extent possible.
INCREASING IMPACT ON THE DECISION
INFORM CONSULT INVOLVE COLLABORATE EMPOWER Level 1. 2 and 3 Level 1, 2 and 3 Level 1 and 2 Level 1 Level 1 Stakeholders Stakeholders Stakeholders Stakeholders Stakeholders To provide the To obtain public To work directly To partner with the To place final
public with feedback on with the public public in each decision making in balanced and analysis, throughout the aspect of the the hands of the objective alternatives and/or process to ensure decision including public. information to decisions. that public the development of assist them in concerns and alternatives and the understanding the aspirations are identification of the problem, consistently preferred solution. alternatives, understood and opportunities considered. PUCLIC PARTICIPATION GOAL PUCLIC PARTICIPATION and/or solutions We will keep you We will keep you We will work with We will work We will implement informed. informed, listen to you to ensure that together with you what you decide. and acknowledge your concerns and to formulate concerns and aspirations are solutions and aspiration, and directly reflected incorporate your provide feedback in the alternatives advice and on how public input developed and recommendations influenced the provide feedback into the decisions decision. We will on how public to the maximum
PROMISE TO PUBLIC THE seek your feedback input influenced extent possible. on drafts and the decision. proposals. Source: IAP2 2014 Figure 16-16 IAP2 public participation spectrum and levels of engagement
Where practicable, communication and engagement activities will be prioritised in the following order:
. Key stakeholders and directly affected landholders;
. Local communities, neighbouring landholders, and other stakeholders; and
. General public and wider regional community.
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The Strategy informed the engagement program for the public notification period. This program includes activities across the IAP2 spectrum targeted towards the different stakeholders and includes already scheduled events and those planned for the remainder of the approvals period.
Activities include:
. Maintaining the Project website through ongoing updates to that website – http://www.metromining.com.au/resources-projects/bauxite-projects/environmental-impact- statement ;
. Monthly Web Newsletter “Bauxite Insight”;
. Specific Project Newsletters at relevant stages of the EIS process;
. Ongoing meetings with Traditional Owner representatives and Aboriginal Land Trustees throughout 2014, 2015 and 2016; and
. Ongoing one-on-one meetings and other communications with key stakeholders and Project partners.
Engagement activities will continue for the duration of the Project with ongoing and regular engagement with stakeholders in accordance with the IAP2 Spectrum. The Strategy will be updated to reflect changes in the Project and in response to feedback, and issues raised during engagement activities. The Strategy will continue to inform and reflect the development of the Project. Metro Mining will develop a SEP for the Project. The objectives of the SEP will be to develop a consultation process that can be integrated into the community with minimal disturbance and which provides a foundation for long-term relationships between Metro Mining and the community that is based on trust and mutual respect; Metro Mining and its subsidiary Cape Alumina Ltd have been active in the Cape York region since 2008 and have established informal communication processes with many of the stakeholders. Informal communication will continue to occur; however, for the specific purposes of the Project, Metro Mining has undertaken a significant stakeholder engagement program, which is discussed further in Chapter 1 – Introduction. In addition to meeting with stakeholders, Metro Mining has established a website for the Project and has sent out electronic updates of the Project to various stakeholders. The SEP will ensure the continuity of engagement with key stakeholders, including Traditional Owners and OMAC, and provide mechanisms to seek further information, provide feedback and raise concerns related to the Project. In response to concerns raised regarding duplication of infrastructure between Metro Mining and Gulf Alumina, Metro Mining has been actively seeking agreement on a combined approach to existing and proposed infrastructure, where this is feasible. At the time of lodging this document no agreement had been reached with Gulf Alumina. The infrastructure that has the potential to be used by both Metro Mining and Gulf Alumina includes: . Skardon River airstrip; . Accommodation camp; . Haul roads; and . Port facilities.
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16.9.1.5 Emergency Response Consultation with relevant government departments, including the Department of Community Safety, Queensland Fire and Rescue Service, Queensland Police Service and Queensland Ambulance Service, will be undertaken to develop an ERP. The ERP will be developed to ensure that the potential consequence of emergency situations are minimised as far as possible. The Project Site Senior Executive (SSE) will be the onsite contact for state emergency services in the event of an emergency situation.
16.9.2 Economic Management and Mitigation Measures
Assessing or quantifying standards and indicators to be used in monitoring the effectiveness of mitigation strategies are difficult to establish, as economic indicators assess the performance of the economy as a whole. While the economic impact assessment has generally identified the significant positive economic contribution the Project will have to the local, regional and State economies, this section identifies management and mitigation measures to address the potential adverse impacts identified in Section 16.6.2. 16.9.2.1 Increased Labour Costs and Skills Shortages The Project has the potential to increase labour costs within Cape York; however it is anticipated that these impacts if they occurred would be very low. The Project will make a significant contribution to the economic strength of the Northern Cape region through the provision of employment and training opportunities for Traditional Owners and the local communities, business development and contracting opportunities and payment of mining benefits to the Ankamuthi People, the Northern Cape York Group #1 and OMAC for the life of the Project. That being said, a range of mitigation measures are currently being assessed that would further soften these impacts, including: . Work with the Queensland Government agencies, Queensland Resource Council, local government and other Cape York proponents to develop programs to assist local businesses retain workers and back fill any vacancies created as a result of the Project. Principally, these programs will seek to encourage locals to re-enter the workforce and upskill the unemployed or underemployed; . Engage with recognised training providers to identify potential measures to increase the capacity of local job seekers, particularly Indigenous job seekers, to develop relevant skills for construction and mining; and . Identify potential funding opportunities and training programs that local training providers can access to increase the available pool of skilled labour in the region. 16.9.2.2 Localised Inflation in the Local Housing Market The Project has the potential to have some (albeit limited given the proposed size of the Project workforce) inflationary impact on local housing markets. Given the size of the Project, the priority to employ local (that is, those that are in existing housing) and the likely dispersed origin locations of prospective workers, this impact will be minimal. Mitigation measures outlined below represent potential measures that are considered by Metro Mining to address potential housing related impacts however small the impacts may be: . Establish a register of relevant accommodation providers and rental agents for the duration of construction and first two years of operation to be provided to all employees upon request;
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. Identify opportunities for purpose built accommodation within close proximity to identified bases for the Project site; and . Develop a workers Code of Conduct for all non-resident workers employed during the construction phase. 16.9.2.3 Increased Burden on Local and Regional Infrastructure The Project has the potential to contribute to the utilisation of local and regional infrastructure, predominantly barge landings and airstrips. Considering the Project will be in a remote location, the existing barge landings and airstrip in Weipa will be subject to limited and infrequent use. It is anticipated that the Project will utilise, and upgrade if required, the existing Skardon River airstrip which is centrally located within the resource area and will construct a barge loading facility also within the resource area (see Chapter 17 – Transport for further details on the transport options). The majority of flights to the Project are likely to originate from the Cairns, Cooktown or Bamaga Airports. A review of the potential transport impacts on these airports confirmed there is sufficient capacity to handle the additional flights and there is low risk of disruption to existing operations (refer to in Chapter 17 – Transport). Therefore, impacts to existing infrastructure are likely to be localised and the impacts to community infrastructure, in Weipa, is anticipated to be minor. 16.10 Qualitative Risk Assessment
An assessment of the anticipated adverse social and economic impacts resulting from the Project and the proposed management and mitigation measures are provided in Table 16-19.
Table 16-19 Qualitative risk assessment – social and economic
Management and Mitigation Potential Impacts Measures
Initial Initial Initial
Likelihood Risk Initial
Residual Risk Residual
Consequence Social . Develop a roster that will be Disruption to home life Minor Possible Medium sustainable for the majority Low associated with rosters of employees (i.e. 14/7). . Maintain existing access controls; and . Implement more stringent controls, where required, to Disruption of Transport and Moderate Unlikely Medium limit access to the mining Low limitation site access operations to reduce access concerns to sensitive environmental and cultural areas. . Implement the SEP; . Regularly update stakeholders regarding the Project status; and Exclusion of the community Minor Possible Medium Low . Hold an annual ‘open day’ for relevant stakeholders where information and a site visit will be provided.
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Management and Mitigation Potential Impacts
Initial Initial Initial Measures
Likelihood Risk Initial
Residual Risk Residual
Consequence
. Develop and maintain a positive organisational culture that benefits all employees; Disruption to community Minor Possible Medium . Develop a roster that will be Low cohesion sustainable for the majority of employees; and . Develop and implement a CHMA and SEP. . Employ local people where possible (that is those that already live in the towns) or Demographic changes Moderate Unlikely Medium Low those that live in larger regional communities e.g. Cairns. . Work in conjunction with Duplication of Gulf Alumina; and Minor Possible Medium Low infrastructure and services . Develop and implement an ERP.
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Management and Mitigation Potential Impacts
Initial Initial Initial Measures
Likelihood Risk Initial
Residual Risk Residual
Consequence Economic Opportunity cost of the Project The Project is anticipated to directly impact approximately 1,466.94 ha of vegetation communities. Indirect impacts are estimated for a further 37.05 ha of wetland complexes. This represents an economic value of . Refer to Chapter 5 – approximately $3.37 Terrestrial and Freshwater million/year. Note - The Almost Ecology for management opportunity cost Moderate Extreme Medium Certain and mitigation measures to calculations are based on the entire Project impact reduce potential impacts areas for these ecosystems. from vegetation clearing. This is considered a conservative assessment and the area of complete vegetation denudation at any point in time will be significantly less than that stated above. This is discussed in further detail in Appendix H – Economic Technical Report Increase in labour costs Based on workforce data . Develop programs to assist there appears to be some local businesses retain significant latent capacity workers and back fill any within Cape York and FNQ vacancies created as a result region with unemployment of the Project; rates well above the Queensland average, with . Identify potential measures unemployment having to increase the capacity of recently risen. local job seekers to develop While there is a possibility Possible Insignificant Low relevant skills for Low that the Project will result construction and mining; and in a tightening of labour . Identify potential funding market this will be a opportunities and training reversal of recent trends. programs that local training As such, the impact of providers can access to tightening will be significantly moderated by increase the available pool of the extent of latent capacity skilled labour in the region. present in Cape York and FNQ labour markets.
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Management and Mitigation Potential Impacts
Initial Initial Initial Measures
Likelihood Risk Initial
Residual Risk Residual
Consequence Potential for skills shortage The Project is likely to have only a modest demand for . Develop programs to assist employment, although this local businesses retain employment demand is workers and back fill any likely to be for relatively vacancies created as a result skilled labour. The Cape of the Project; York and FNQ regions have . Identify potential measures had a long standing and to increase the capacity of mature bauxite mining local job seekers to develop sector. While the Project is Unlikely Insignificant Low relevant skills for Low likely to have a demand for construction and mining; and skilled labour, there remains significant capacity . Identify potential funding within the local and opportunities and training regional labour markets to programs that local training accommodate this demand, providers can access to and there is also a well- increase the available pool of established pool of workers skilled labour in the region. experienced in the bauxite mining sector already within the region. Localised inflation in housing market With a modelled peak construction phase workforce of 118 FTEs . Establish a register of local within the Cape York region accommodation providers and an ongoing operational and rental agents for the employment demand duration of construction and within the Cape York region first two years of operation of approximately 280 FTEs the potential for the Project to be provided to all to have a material impact employees upon request; on the Cape York housing . Identify opportunities for Possible Minor Medium Low market is limited. The mine purpose built is isolated from existing accommodation within close major settlements, but any proximity to the Project site; locally domiciled workforce and will fly out of Weipa. As the . Develop a workers Code of much of the housing in Conduct for all non-resident Weipa is controlled by Rio Tinto Alcan, there is a workers employed during the possibility that workers construction phase. choosing to base themselves in Weipa may face some challenges in accessing housing.
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Management and Mitigation Potential Impacts
Initial Initial Initial Measures
Likelihood Risk Initial
Residual Risk Residual
Consequence Localised inflation in commercial and industrial property market The Project will generate some business opportunities for suppliers located within Cape York and the broader FNQ Region, and has some . Identify opportunities for limited potential to attract purpose built Possible Insignificant Low Low new entrants to the Cape accommodation within close York and FNQ market. proximity to the Project site. These opportunities may generate increased demand for commercial and industrial land. However, this impact is likely to be moderated to some extent by latent site capacity of suppliers. Increased burden on local . Workers will either be and regional infrastructure barged from Mapoon or The Project will possibly flown from Cairns, Cooktown impose additional burden or Bamaga. Hence local on the local and regional infrastructure impacts will be infrastructure network. Possible Minor Medium Low limited to barge landing and However, the majority of inputs will be supplied by airstrips, which have barge from Weipa or Cairns significant capacity to and landed at Skardon accommodate further River. expansion. 16.11 Summary The Project’s main cultural and social area of influence is the local communities of Mapoon, Weipa, the broader Cook Shire Regional Council and the lands associated with the Traditional Owners. The development of the Project will create employment and business opportunities within this region, contributing to higher income levels and help sustain population growth. This growth is, and will continue to be, the necessary stimulus for improved infrastructure and services in the region. Sustainable employment creation is key to regional economic development, and in securing genuine community support for new developments. Metro Mining is focussed on maximising this opportunity for the local people. Metro Mining is committed to working collaboratively with community stakeholders and government agencies, including relevant councils, the Chamber of Commerce, Traditional Owners, OMAC and various educational institutions to enhance education, training and employment for local Indigenous people and community residents, and support the ongoing development of emerging and existing businesses. The social impact assessment for the Project, given the current social environment, has concluded that the Project will have impacts that are manageable via the implementation of a CHMA, SEP and ERP. The Project will provide an employment opportunity for locals and Indigenous communities and has the potential to generate flow on effects including improved local and regional services.
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Management and mitigation measures will be implemented to ensure no adverse economic impacts result from the Project’s construction and operational activities. Overall it is anticipated that with an operational life of 12 years, the Project will provide substantial social and economic benefits to the regional community. In conclusion it is anticipated that the Project will meet the environmental objectives and performance outcomes for social and economic values as identified in Section 16.3. 16.12 Commitments In relation to addressing potential economic impact Metro Mining’s commitments are provided in Table 16-20.
Table 16-20 Commitments – social and economic Commitments Preparation and implementation of a Stakeholder Engagement Strategy for the Project construction, operation and decommissioning phases. Seek to utilise local businesses and employ local staff where possible. Encourage local business opportunities, particularly Indigenous business opportunities, and look for ways to form partnerships that provide good social and economic outcomes. Community participation will continue across the Project lifecycle. Access to the site for Traditional Owners parties will be established and implemented through the relevant Cultural Heritage Management Agreements i.e. the signed Ancillary Agreement. Regular stakeholder communications, covering updates on the Project, will be undertaken as part of the stakeholder engagement. Seek to develop a positive working culture and fly-in fly-out roster that maximises employee satisfaction. Consult with the relevant agencies to ensure appropriate management actions are included in the Project’s Emergency Response Plan. Essential services (water, sewage and electricity) will be contained to the Project site and will not draw on public infrastructure or supply. The existing informal camp ground at the mouth of the Skardon River will not be directly impacted. Work in conjunction with Gulf Alumina to avoid or limit potential cumulative impacts from the projects. Develop workforce management strategies. Recruitment to be focussed on residents in the local area with preference given to Traditional Owners and local Indigenous people, followed by other residents from the Northern Cape York area. Committed to maximising Project employment opportunities for women and people with disabilities. Advertise for goods and services in the region, giving preference to local contractors when they are able to meet the tendering requirements and are competitive with other suppliers. Preference will favour, in order of priority, suppliers from: (i) the Northern Peninsula (Bamaga), Mapoon and Weipa area, (ii) Cape York Region/North Queensland, (iii) the rest of Queensland, and (iv) elsewhere in Australia. Develop and implement a Local Content Strategy that aligns with the Queensland Resources and Energy Sector Code of Practice for Local Content.
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16.14 ToR Cross-reference Table 16-21 ToR cross-reference – social and economic Terms of Reference Section of the EIS 8.11 Social and Economic A range of measures aimed at Objectives avoiding or mitigating impacts from the Project are The construction and operation of the Project should aim to: presented in Section 16.9 – . avoid or mitigate adverse social and economic impacts arising from the Project Management and Mitigation Measures. Opportunities for employment and service provision will be available to affected communities. Metro Mining has made commitments to utilise local . capitalise on opportunities potentially available to affected communities. employment and preference local suppliers/services providers in Section 16.9 – Management and Mitigation Measures and listed these in Table 16-20. Information Requirements Potential impacts of the Project are presented in Section 16.7 and the potential cumulative social impacts (including surrounding 8.11.1 In accordance with the Coordinator-General’s Social Impact Assessment projects) are presented in Guideline, describe the likely social impacts (positive and negative) on affected Section 16.8. communities and the proposed mitigation measures. Management and mitigation measures to address the listed potential impacts are presented in Section 16.9, specifically Section 16.9.1 for the social aspects. Potential economic impacts (positive and negative) are 8.11.2 Describe the likely impacts (positive and negative) of the Project on the identified in Section 16.7.2. economies materially impacted by the Project. The analysis should describe both Further descriptions of the the potential and direct economic impacts including estimated costs, if material, on potential economic impacts industry and the community. are included within the Economics Technical Report – Appendix H of the EIS.
8.11.3 The assessment should identify opportunities to capture the social and
economic benefits of the Project, including:
A local advertising strategy for Project goods and services has been presented in Section . strategies for ensuring local suppliers of goods and services receive full, fair and 16.9.1.3 and Metro Mining reasonable opportunity to tender for work throughout the life of the Project has committed to through adopting policies such as the Queensland Resources and Energy Sector implementing a Local Content Code of Practice for Local Content administered by Queensland Resources Strategy as per the Code of Council Practice listed in the ToR (refer to Table 16-21 – Commitments).
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Terms of Reference Section of the EIS The Project will implement an employment strategy focused on Indigenous and local residents. In addition, Metro . employment strategies for local and regional residents, including Indigenous Mining has committed to communities, women and people with a disability across Queensland maximising employment opportunities for women and people with disabilities. Refer to Sections 16.7.1.1, 16.7.1.6 and 16.8.2.1. Metro Mining has committed to promoting local business opportunities where possible. This will include promotion of . opportunities to support the agricultural and tourism industries tourism and locally sourced produce (i.e. agriculture) to employees. Refer to Section 16.9.1.3. Metro Mining will likely partner with a local recruitment, training and development provider. Initiatives for development of . recruitment, training and development programs or initiatives to be apprentices and trainees may implemented. include a 13 week ‘live in’ program. Refer to Section 16.9.1.2 (Recruitment, Training and Development Section). Stakeholders for the Project (including fisheries stakeholders) are identified in Section 16.6.1.1. The Chapter also identifies that access to recreational fishing in the Skardon River and at the mouth of the river, will not be impacted (refer to Section 16.7.1.3) A complete overview of fisheries resources (Section 8.11.4 Identify recreational, commercial or Indigenous fisheries potentially 6.5.5), potential impacts impacted and undertake consultation. (Section 6.6.4) and proposed mitigation measures (Section 6.8.4) is provided in – Chapter 6 Marine Ecology. The commitments for ongoing community participation and stakeholder engagement presented in this chapter and listed in Table 16-20, will apply to all commercial and recreational fisheries stakeholders.
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