Project Sea Dragon - Stage 1 Legune Grow-Out Facility Notice of Intent for Aquaculture Operations

Project Sea Dragon - Stage 1 Legune Grow-out Facility Notice of Intent for Aquaculture Operations July 2015 Approvals Rev Date Description By Checked Approved A 30/06/2015 Draft for internal review KM NM NM 0 13/07/2015 Final KM NM NM NAME POSITION SIGNATURE NM Environmental Manager ORIGINATORS KM Senior Consultant MF Consultant CHECKER NM Environmental Manager APPROVER CM Executive Director Project Sea Dragon Stage 1 Legune Grow-out Facility Contents 1 Introduction 4 2 Project Details 5 2.1 Project Proponent 5 2.2 Timeframes 5 2.3 Locality 6 2.4 Land Use History 6 2.5 Regulation 7 3 Project Description 11 3.1 Overview 11 3.2 Project Components 13 3.3 Project De-commissioning 19 3.4 Alternatives 19 3.5 Related Development 19 4 Existing Environment 26 4.1 Natural environment 26 4.2 Significant Sites or Features 35 4.3 Cultural Heritage Environment 37 4.4 Social and Economic 37 5 Potential Impacts 39 5.1 Natural Environment 39 5.2 Significant Sites or Features 40 5.3 Cultural Heritage Environment 40 5.4 Social and Economic Environment 40 5.5 Air Quality 40 6 Measures to Avoid or Reduce Impacts 41 6.1 Site Selection 41 6.2 Engineering and Operations Design 41 6.3 Environmental Management 42 6.4 Indigenous Engagement 44 7 Matters of National Environmental Significance 45 8 Conclusion on the Likelihood of Significant Impacts 46 9 Local and Regional Benefits 47 9.1 Cooperation with Government 47 9.2 Employment and Training 47 9.3 Power Generation 47 9.4 Statement of Economic Benefits 48 10 References 49 Project Sea Dragon Stage 1 Legune Grow-out Facility i of iii Figures Figure 1.1 Project Sea Dragon Stage 1 Legune Grow-out Facility Context 9 Figure 1.2 Legune Station – current pastoral operation 10 Figure 1.3 Project Sea Dragon Stage 1 Legune Grow-out Facility Development Footprint 12 Figure 1.4 Schematic Representation of water flow in the Grow-out Centre 14 Figure 1.5 Full Project Sea Dragon project schematic and scope 22 Figure 1.6 Indicative locations of main components of Project Sea Dragon 23 Figure 1.7 Timber Creek mean rainfall (mm) for years 1981 to 2015 and current data for 2015 27 Figure 1.8 Auvergne and Port Keats Geological Sheets – Legune Station 29 Tables Table 1.1 Project Sea Dragon Pty Ltd Details 5 Table 1.2 Primary Contact Details 5 Table 1.3 Latitude and Longitude 6 Table 1.4 Stage 1 Legune Grow-out Facility Footprint (ha) 11 Table 1.5 Indicative Weekly Road Freight Demand at Stage 1 17 Table 1.6 Timber Creek Climate Statistics 26 Table 1.7 Timber Creek mean rainfall (mm) for years 1981 to 2015 26 Table 1.8 Vegetation of the Legune Coastal Floodplain and the Hinterland 30 Table 1.9 Threatened and migratory fauna species of Legune Coastal Floodplain and marine surrounds 32 Table 1.10 Matters of national environmental significance that may occur in, or may relate to, Legune Station 45 Project Sea Dragon Stage 1 Legune Grow-out Facility ii of iii Abbreviations and Acronyms AAPA Aboriginal Areas Protection Authority AOA Access and Option Agreement BBC Back-up Breeding Centre BMC Broodstock Maturation Centre CBC Core Breeding Centre EIA Environmental Impact Assessment EPBC Act Environment Protection and Biodiversity Conservation Act 1999 EPBC PMST EPBC Act Protected Matters Search Tool EPZ Environmental Protection Zone FTE Full Time Equivalents ICN Industry Capability Network IFRP Internal farm recycling ponds IPP Independent power producer LNG Liquefied natural gas MDC Main discharge canal MFC Main feeder canal NOI Notice of Intent NT Northern Territory NT EPA Northern Territory Environment Protection Authority PASS Potential acid-sulphate soils. PL's Post larvae PSD Project Sea Dragon Seafarms Seafarms Group Limited Stage 1 Legune Grow- Stage 1 of Project Sea Dragon at the Grow-out Facility to be situated on Legune out Facility Station WA Western Australia WWTP Waste Water Treatment Plant Project Sea Dragon Stage 1 Legune Grow-out Facility iii of iii 1 Introduction Project Sea Dragon Pty Ltd, a wholly owned subsidiary of Seafarms Group Limited (Seafarms) (ASX: SFG), proposes to develop Project Sea Dragon, a large, fully integrated, prawn aquaculture project located in northern Australia. The project will be delivered as an integrated production system, providing reliable, long-term, high quality and large scale production of Black Tiger prawns (Penaeus monodon). The project focuses on sustainable land use and integrated design practices to maintain surrounding river and coastal environments and support adjacent agricultural land uses. Project Sea Dragon is a large project with a long development timeline (approximately 7 years) between first operations and full scale operations. This Notice of Intent (NOI) is for construction and operation of Stage 1 of Project Sea Dragon at the Grow-out Facility to be situated on Legune Station (herein referred to as the Stage 1 Legune Grow-out Facility). Legune Station is located in the north-western Northern Territory. The Stage 1 Legune Grow-out Facility will comprise approximately 1,080 ha of prawn farming capacity, plus associated infrastructure onsite. The Stage 1 Legune Grow-out Facility is part of a larger project including other ancillary aspects of Stage 1 to be located in Darwin, Exmouth, Kununurra and Wyndham; and future proposed stages to reach full scale operations. However, these aspects of the larger project are not considered part of this application for geographical and operational (timing) reasons. These facilities will be subject to separate environmental approval processes as required, and development application approvals as required. This NOI has been prepared based on consultation with the Northern Territory Environment Protection Authority (NT EPA) and review of the ‘Draft Guideline for the Preparation of a Notice of Intent’ and the ‘Guide to writing a “Notice of Intent for Aquaculture” in the Northern Territory’. It includes: an overview of project particulars including details of the project proponent, key timeframes, locality, land use history and applicable regulations a detailed project description a description of development related to the project that is not the subject of this NOI a description of the existing environment including: − the natural environment − significant sites or features − cultural heritage environment − social and economic environment a description of the potential impacts arising from the proposed development an outline of the measures to avoid and reduce impacts an overview of the likelihood of significant impacts on matters of national environmental significance protected under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) a conclusion on whether the proposal is likely to have a significant impact on the environment a brief overview of the local and regional benefits of the project. Project Sea Dragon Stage 1 Legune Grow-out Facility Page 4 of 50 2 Project Details 2.1 Project Proponent This application is made by Project Sea Dragon Pty Ltd, a wholly owned subsidiary of Seafarms. Project Sea Dragon Pty Ltd company details are outlined in Table 1.1. Details for the primary contact person for this application are provided in Table 1.2. Seafarms is an Australian agri-food company which operates, builds and invests in sustainable aquaculture production platforms producing high-quality seafood. Seafarms is currently Australia’s largest producer of farmed prawns – growing, processing and distributing the well-known Crystal Bay Prawns® premium brand. Seafarms has existing operations in Cardwell and Ingham, Queensland, and is a major supplier of prawns to Coles and Woolworths on the East Coast. The company is one of Australia’s largest prawn aquaculture enterprises. Table 1.1 Project Sea Dragon Pty Ltd Details Required Information Details ACN 604 936 192 Street Address Level 11, 225 St Georges Terrace, Perth WA 6000 Australia Postal Address P.O. Box 7312 Cloisters Square, Perth WA 6850 Australia Phone +61 8 9321 4117 Fax +61 8 9321 4411 Website www.Project Sea Dragon.com.au Table 1.2 Primary Contact Details Required Information Details Name Chris Mitchell Title Executive Director – Seafarms Group Limited Postal Address Unit 6 Ground Floor 31-47 Joseph St Blackburn North VIC 3130 Phone 03 9928 5111 Fax 03 9928 5199 Email [email protected] 2.2 Timeframes The Stage 1 Legune Grow-out Facility will be developed in three steps, which include: a final feasibility study, including environmental impact studies, to: − de-risk the development feasibility − secure statutory approvals − engage with funding partners and secure project finance − identify and secure suitable land for each of the support infrastructure facilities − finalise the development schedule and Project Execution Plan an execution phase for the engineering, procurement, construction and commissioning phase of the capital works. an operations ramp-up phase, to commence the breeding program and start stocking the farms. Pending receipt of the relevant Approvals, Project Sea Dragon Pty Ltd expects to make a final investment decision on Stage 1 Legune Grow-out Facility in mid-2016, and Financial Close in the 4th quarter of 2016. Construction of the first 1,080 ha of ponds is anticipated to begin soon after during the dry season in mid- 2017; with the first stocking of farms expected in late 2018 (calendar years). Project Sea Dragon Stage 1 Legune Grow-out Facility Page 5 of 50 Financial modelling on the project to date has assumed a nominal 25 year operating life. However, there is nothing in the proposed assets, facilities design, breeding program and operating plan which would prevent the business from continuing for a significantly longer period. 2.3 Locality The Stage 1 Legune Grow-out Facility is proposed to be located at Legune Station in the Northern Territory.

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