Volume a : Executive Summary Sotpela Ripot English Translation of Sotpela Ripot

Ramu Nickel Joint Venture

Ramu Nickel Project Environmental Plan

Volume A : Executive Summary Sotpela Ripot English Translation of Sotpela Ripot

January 1999 CR 161/9/v4

Prepared by: NSR Environmental Consultants Pty Ltd 124 Camberwell Road Hawthorn East, Victoria 3123 Australia

Tel: 61-3-9882 3555 Fax: 61-3-9882 3533 e-mail: [email protected] Contents

Contents Executive Summary 1

1. Introduction 1 1.1 Participants and Proponent 1 1.2 Ramu Nickel Project’s Environmental Plan 1 1.3 Project History and Development Concept 1

2. Rationale for the Development 3 2.1 PNG Government Objectives 3 2.2 Provincial Government and Landowner Attitudes 4 2.3 Opportunity for Nickel Commercialisation 4 2.4 Project Objectives 6

3. Environmental Planning and Permitting Process 6 3.1 Legislative Requirements 6 3.2 Consultation 7 3.3 Schedule 8

4. Project Description 8 4.1 Kurumbukari Facilities 8 4.2 Transport Infrastructure 12 4.3 Basamuk Facilities 12 4.4 Services 14 4.5 Tailing Treatment and Disposal 15 4.6 Workforce 17 4.7 Decommissioning 17

5. Project Setting and Issues 18 5.1 Description 18 5.2 Issues 19

6. Environmental Planning 19 6.1 Investigations 19 6.2 Main Planning and Management Options 19 6.3 Impact Assessment and Safeguards 23 6.4 Accidental Events and Natural Hazards 36

7. Social and Economic Development 37 7.1 Benefit Streams 37 7.2 Sector Impacts 37

Ramu Nickel Project—Environmental Plan v Contents

7.3 Impacts on Archaeology and Material Culture 41 7.4 Implications for Local Communities 41

8. Environmental Management and Monitoring 41

9. References 43 9.1 Ramu Environmental Plan Appendices 43 9.2 References Cited 44

10. Study Team 44 10.1 Highlands Pacific Limited 44 10.2 NSR Environmental Consultants Pty Ltd 45 10.3 Specialist Consultants 45 10.4 Engineering Consultants 45

Figures 1 Locality map 2 2 Distribution of total project revenues 4 3 Nickel cash cost and production comparisons 6 4 The relationship between resources and reserves 6 5 Special mining lease (SML) procedure 7 6 Permitting and development schedule 8 7 Plan of main project and infrastructure components 9 8 Idealised Ramu laterite profile 10 9 Greater Ramu mineralised zone 10 10 Schematic cross-section of preparation, mining and rehabilitation stages 11 11 Clearing, mining and rehabilitation sequence to Year 11 13 12 Beneficiation flowsheet 14 13 Refinery flowsheet 15 14 Layout of the DSTP system option 17 15 Conceptual DSTP disposal system 18 16 Typical oceanographic profile, August 1995 18 µ 17 Predicted percentage of time that the assumed SO2 1-hour maximum goal (350 g/m3) is exceeded under emission control options 2 and 3 24 18 Hamlets and populations at Kurumbukari 24 19 Aquatic biological impact zones at the end of mine life, Kurumbukari 25 20 Baseline and predicted mean daily TSS at Ramu River at Sepu 26 21 Predicted nearshore biological impact zones (physical and biological effects) during the construction phase 28 22 Schematic of density flows and plumes 29 23 Predicted main tailing deposit footprint 30 24 Sediment flux, New Guinea and Vitiaz Basin 32 25 Three-dimensional image of submarine canyons off Basamuk 34 26 Construction workforce profile 39 27 Provisional Ramu Nickel landowner business development structure 40

vi Ramu Nickel Project—Environmental Plan Contents Tables 1 Estimated value* of benefit streams 4 2 Power demand and supply 16 3 Water requirements and supply 16 4 Accommodation for employees during construction and operations 16 5 Refinery siting factors 20 6 Site selection criteria for on-land tailing disposal 21 7 A comparison of identified conceptual on-land tailing disposal options 21 8 Site investigations to assess suitability for DSTP 22 9 Tailing disposal option comparison 22 10 Dilutions of tailing required to comply with ambient water quality standards/guidelines 29 11 Project-adopted seismic and tsunami design criteria 36 12 Types of benefit streams and relevant stakeholder group 37 13 Project land requirements 38 14 Composition of operations workforce 39 15 Potential contracting opportunities for local businesses according to location 40 16 Archaeological and cultural sites likely to be affected by the project 41

Plates 1 Kurumbukari exploration camp located on the Kurumbukari Plateau 1 2 Proposed refinery site at Basamuk on the Rai Coast 3 3 Trial mining at Kurumbukari undertaken as part of the project’s feasibility assessment 5 4 Rehabilitation trials conducted at Kurumbukari 5 5 Millet cover crop trial on red limonite (fertilised) 12 6 Basamuk Bay and hinterland 14 7 Basamuk Bay 19 8 Banap Oxbow in the foreground with the Ramu River in the distance 25 9 Nape Swamp with Kurumbukari Plateau in the background 25 10 Lihir silt curtain 27 11 Finisterre Range behind Basamuk Bay 31 12 Sediment-laden plume of the Gogol River 31 13 Mouth of the Yaganon River 33 14 Dissected goldband snapper 35 15 Banap Creek at low flow 42 16 Banap Creek at high flow 42

Boxes 1 Relevant international conventions and treaties 8 2 List of environmental planning and impact assessment studies 20

Sotpela Ripot 47

English Translation of Sotpela Ripot 53

Ramu Nickel Project—Environmental Plan vii Executive Summary

Executive Summary

1. Introduction The EP seeks approval for the project to and following the implementation of proceed and, to this end, provides: the proposal. The Ramu Nickel Project is a proposal to mine and refine lateritic ores to pro- • For interested bodies and persons, a 1.3 Project History and duce nickel and cobalt for sale on world basis for understanding the proposal, Development Concept markets. The project is located in Ma- alternatives and preferred solutions, The Ramu lateritic nickel and cobalt re- dang Province, Papua New Guinea the existing environment, and the ex- source is located on the Kurumbukari (PNG) (Figure 1). pected changes to that environment Plateau (Plate 1), part of the southern should the proposal be implemented. flank of the valley of the Ramu River. 1.1 Participants and Proponent The Kurumbukari deposits have been The Ramu Nickel Joint Venture (RNJV) • For groups or persons with rights or explored discontinuously since 1962 by is owned in joint venture by Ramu Nickel interests in land, an outline of the a succession of companies. Highlands Limited, a wholly owned subsidiary of effects of the proposal on that land, Gold Properties Pty Limited (HGP) as- Highlands Pacific Limited (HPL) (65%), and of benefits and compensation. sumed the management of the current and Nord Australex Nominees Pty Ltd • For PNG decision-makers, informa- joint venture in 1992. An intensive pe- (35%). It is anticipated that the PNG tion for assessing the potential im- riod of geological exploration and engi- National Government and project area pacts of the proposed project and neering culminated in the prefeasibility landowners will acquire a 30% partici- associated development, having re- study in July 1996 (HGP 1996), which pating interest in the joint venture. Fol- gard to legislative and policy provi- indicated technical and commercial vi- lowing acquisition of its interest, the State sions. ability. Thereafter, RNJV was established would on sell 25% to Orogen Minerals to prepare the bankable feasibility study Limited (Orogen) whilst the landowners • For the proponent, a series of com- for the project. would retain 5% for their benefit. Orogen mitments to measures or actions is owned 51% by the PNG Government which are to be undertaken to mini- RNJV expects the project to produce and 49% by public shareholding. East- mise adverse impacts before, during some 32,800 t/a of high-grade nickel ern Pacific Minerals Limited has a right to take a 10% participating interest in the joint venture, which will dilute to 7% following State and landowner participation. The project proponent is HPL as man- ager for the joint venture. 1.2 Ramu Nickel Project’s Environmental Plan The Ramu Nickel Project’s Environmen- tal Plan (EP) comprises three volumes: • Volume A: Executive Summary (this volume) which comprises an extended summary in English (first), a shortened summary in Tok Pisin (second) and an English translation of the shortened summary (third). • Volume B: Main Report. • Volume C: twenty-five technical appendices. Plate 1 Kurumbukari exploration camp located on the Kurumbukari Plateau

Ramu Nickel Project—Environmental Plan 1 Executive Summary

N 145°00' E MANUS ° NEW 146 00' E IRELAND W E Cape Franseski WEST EAST S River SEPIK SEPIK Bismarck Sea 0 200 New km Bismarck Sea Ireland 4Sepik°00' S MADANG 4°00' S Venus Point Manam Is. Madang PAPUA NEW GUINEA 105m WESTERN New Britain HIGHLANDS 35m SOUTHERN EASTERN 122m HIGHLANDS Lae Bunapak CHIMBU HIGHLANDS Solomon Sea EAST NEW Lake MOROBE WEST NEW BRITAIN Bunapak WESTERN BRITAIN 363m NORTHEN GULF International Port Moresby boundaries 242m Provincial 420m boundaries Coral Sea AUSTRALIA CENTRAL MILNE BAY

254m 128m ADELBERT

River Karkar Is. 32m Isumrud Strait Guam Josephstaol

RANGE Banum Bagabag Is. Annanberg S o 237m g e r ra ive m R 130m 5°00' S N 5°00' S 1273m SCHRADER Useruk Kerangum Lagoon Alexishafen

Aiome Ramu W E Sogeram Gogol Asai River RANGE River Madang S River 020

BISMARCKSimbai River Ato Junction R. 690m km Musak Nuru R. Astrolabe River R. Bagasin Duduela Erima Bay Cape 716m Sepu R. Erima Harbour Rigny RANGE AndalaramOn g an Rai Coast Usino IoworoR. Basamuk 869m R. Ileg Kepler Palpa Point Mea Rai Marum R. R. Nopu Saidor Baia Ahapia R. Highway R. 2315m Karamukei Imbrum 1250 MadangÐLae R. Marea Brahman Bundi R. 3879m Banz 3774m FINISTERRE Mt Wilhelm R. 4509m Dumpu Tauya RANGE Ramu Minj 3135m 3827m 4176 ° ° 6 00' S River 6 00' S Kundiawa Highway Greater Ramu resource block Goroka 1709m Ramu West resource block

3146m M

Kurumbukari resource block a

r k

Built-up area a m Village 1950m 1638m Kainantu R Proposed 2684mrefinery . River Existing road Proposed access road 198m Dirt road 2057m 2063m Exploration Licence 193 boundary 3270m 2606m Possible future SML boundary 1685m ° 2614m ° Proposed slurry pipeline 145 00' E 146 00' E

Figure 1 Locality map

2 Ramu Nickel Project—Environmental Plan Executive Summary metal and about 3,200 t/a of cobalt (as a tion, a wharf, a limestone quarry and We declare our Fourth Goal to be for cobalt salt). A production life of 20 years an accommodation area will be com- Papua New Guinea’s natural resources has been adopted for feasibility study ponents of the Basamuk refinery site. and environment to be conserved and and environmental approval purposes, used for the collective benefit of us The preferred option for tailing disposal all, and be replenished for the benefit but there is significant potential to sub- is deep sea tailing placement (DSTP) on of future generations. stantially extend the life of the overall the ocean floor of the Vitiaz Basin im- project by further exploration in areas of While the process of mining will una- mediately north of the refinery. known mineralisation at Kurumbukari. voidably consume a non-replenishable Other project infrastructure will include resource, the taxes, royalties, profits and The main components of the project (see access roads and the pipeline corridor other economic benefits derived from Figure 1) include: between the mine site and the refinery. the project will contribute to the capital • A series of shallow open-cut mine wealth of the nation. Therefore, the eco- pits and a beneficiation plant to pro- 2. Rationale for the nomic benefits from a mining project duce ore slurry feedstock at Kurum- Development can provide a durable economic asset bukari. for future generations, even after the spe- 2.1 PNG Government Objectives cific original resource has been depleted. • A slurry pipeline approximately 134 2.1.1 Policy km long to transport the ore slurry The purpose of the proposed develop- 2.1.2 Benefits from the Kurumbukari mine site east- ment is to mine, extract and process The Ramu Nickel Project will be Papua wards to the refinery site at Basamuk nickel and cobalt from a nickel laterite New Guinea’s first nickel and cobalt on the Rai Coast, east of Madang, mine using methods that are environ- mine and will conduct full downstream and on the northern coast of main- mentally appropriate, technologically processing of ore to manufacture metal land Papua New Guinea (Plate 2). achievable and economically viable. As products which are saleable direct to in- such, the Ramu Nickel Project is con- ternational markets. This value-added • At Basamuk, a refinery to produce sistent with the Fourth National Goal component of the project will make a nickel and cobalt product using acid and Directive Principle of the Constitu- significant additional contribution to the pressure leaching technology. An tion of Papua New Guinea which states: nation’s export earnings and help to re- acid plant, a lime plant, a power sta-

Plate 2 Proposed refinery site at Basamuk on the Rai Coast

Ramu Nickel Project—Environmental Plan 3 Executive Summary dress the predicted declines in the ex- Mining and beneficiation port volumes of gold, copper and petro- Slurry pipeline 6% leum. It is estimated that the project will 2% add 15% to the current exports of Papua Revenue retained by Processing and New Guinea. Ramu Nickel Joint recovery Venture 27% The project will benefit the national, pro- 28% vincial and local economies of Papua New Guinea in the form of royalties, direct and indirect taxation, improvements in the nation’s balance of trade, infrastructure development, commerce, employment and educational opportuni- Sales and ties. By direct shareholding in HPL or in marketing Orogen, or through membership of the Capital investment 2% National Provident Fund, Public Offic- 17% PNG taxes and royalties ers’ Superannuation Fund and other fi- 18% nancial institutions, the Ramu Nickel Figure 2 Distribution of total project revenues Project will also distribute benefits to a more broadly-based cross-section of the Papua New Guinean population. To the contrary, all those individuals 2.3 Opportunity for Nickel who expressed an opinion were ea- Commercialisation Apart from the start-up and shut-down ger to see the development proceed, 2.3.1 World-class Deposit years, annual sales revenue is estimated even if they were as yet unclear about The size and quality of the Ramu re- at between US$260 and $270 million. the exact scope and scale of the source have long been appreciated (see The breakdown of expenditure is given project’s likely impacts. People cer- Section 2.3.3), but a mine has not previ- in Figure 2. tainly want the opportunity to make ously been developed because the later- Table 1 rests on a number of assump- more money and are eager to get im- itic nickel and cobalt occur in weathered tions about future events, but provides proved access to health and educa- and chemically stable forms that are dif- an approximation of possible benefit tion services, which they see the ficult to treat. streams over the life of the project. project as being able to provide. However, advances in extractive metal- 2.2 Provincial Government and The SEIS report goes on to note, how- lurgy have given confidence that eco- Landowner Attitudes ever, that: nomic processing is now technically The Madang Provincial Government has feasible. …there is little doubt that commu- expressed consistent support for the nity expectations will not be fully 2.3.2 Feasibility project. met in the short to medium term and Approximately US$30 million has been Sentiment at local level has been summed that it will not take long for some spent on exploration, environmental, up by the project’s socio-economic im- dissenting voices to be heard. It is prefeasibility and feasibility studies up pact study (SEIS) as follows: then that the effectiveness of coordi- to September 1998 including: nation and dispute resolution mecha- In the course of undertaking this • 11,700 m of diamond drilling. nisms will be put to the test. study, no vocal opposition to the mine • An independent audit of the resource. was encountered by the consultants. • Trial mining (Plate 3) and beneficiation. Table 1 Estimated value* of benefit streams • Metallurgical testwork. Benefit Million No. Years Total Million Kina Kina/year (rounded) • Erosion studies and rehabilitation tri- Compensation 0.5 to 1 3 1.5 to 3 als (Plate 4). Royalties 7.4 20 150 • Environmental impact investigations. Special Support Grant 3.7 20 75 • Socio-economic surveys. Tax credits, up to 4 16† 65 Approximate total 300 • Geotechnical investigations and risk *Values are based on assumptions about future market conditions, projected production assessment. rates and matters still to be negotiated. They are indicative only. • Engineering design and costing. †Taxable income is not expected to be significant in Years 1 to 4.

4 Ramu Nickel Project—Environmental Plan Executive Summary

The estimated total capital cost of the project is US$838 million. By virtue of a number of competitive advantages, the project will produce nickel and cobalt inside the lowest 10% of world nickel production costs (Figure 3). This will meet the RNJV commercial target return on investment based on conservative adopted values for the future price of nickel and cobalt on international markets. 2.3.3 Competitive Advantages Lateritic nickel deposits are found in many parts of the world and are by no means uncommon. However, RNJV’s low projected cash cost of production reflects a number of significant competitive advantages: • A large resource. Plate 3 Trial mining at Kurumbukari undertaken as part of the project’s • Ease of mining. feasibility assessment • Good leaching properties of the ore, with low acid consumption. • A coastal refinery site, which will reduce the cost of transporting and handling process consumables and products. • The low cost and environmental feasibility of the preferred option for tailing management (deep sea tailing placement). • Abundant supplies of water and high- grade limestone near the refinery site. 2.3.4 Sustainability It is sometimes thought that inter- generational security of mineral supplies is at risk, because each deposit that is mined-out brings closer the moment of ultimate mineral shortage. For all practi- cal purposes, however, this model is sim- plistic and incorrect within a time frame of centuries and even millenia. New discoveries will be made, including the reclassification of inferred resources as commercial reserves, as improvements in mining and processing technology allow the profitable development of increasingly larger deposits at lower and lower grades. The relationship between technology, quantity and grade is shown in Figure 4: as the economically recoverable grade

Plate 4 Rehabilitation trials conducted at Kurumbukari

Ramu Nickel Project—Environmental Plan 5 Executive Summary decreases with reduced production costs, 3.5 the amount of available resources in- Niquel Tocantins creases. Selebi-Phikwe (BCL) 3 Bindura Nickel It is for these reasons that two centuries Rio Tinto Zimbabwe of predictions of an absolute scarcity, 2.5 Codemin from Malthus (1798) and the Club of Voisey's Bay Maggie Hays 2 Loma de Niquel Rome (Meadows et al. 1972) to the Rustenburg present day, have not been borne out. 1.5 Impala Platinum In Papua New Guinea, two other factors Cost (1997 US$/lb) are far more important to the future pro- 1 duction of minerals than the depletion of known deposits: 0.5 Ramu Cawse PT Inco Murrin Marlborough Inco Falconbridge Bulong Sheritt WMC Resources Cerro Matoso Aneka Tambang Queensland Nickel Falconbridge Dominicana Eramet-SLN Outokumpu Pacific Metals • The mineral industry’s human re- 0 source capital—the people to dis- 0 100 200 300 400 500 600 700 800 900 1000 cover, build and operate new mines Production ('000 tonnes) Note: By-product cobalt at $8/lb. that can compete internationally. Source: CRU. • A socio-political climate that allows Figure 3 Nickel cash cost and production comparisons the mining industry to continue to invest and operate. Unlike minerals in the ground, expertise the country’s rich mineral endowment The environmental objectives are: and investment can migrate overnight. depends. • To plan, operate and decommission The Ramu Nickel Project represents the 2.4 Project Objectives the project in accordance with good continuity and diversity of the PNG min- The economic objective of the project is industry practice and in compliance ing sector in a climate of government to mine and process the lateritic nickel with the conditions and standards pre- and community support. The project will and cobalt resource at Kurumbukari on a scribed by the PNG Government. therefore help to sustain the expertise, profitable basis and in a climate of pub- upon which the future development of • To site and operate the components lic participation and support. of the project so as to minimise the effects on local villagers, their re- Total resources sources and the environment.

Reserves 3. Environmental Planning and Permitting Process Technology improvement-cost decrease 3.1 Legislative Requirements Current grade Current economic 3.1.1 Environmental Planning Act recoverable level This Ramu Nickel Project EP has been prepared on a voluntary basis, pursuant Non-exploitable deposits to Section 4(6) of the PNG Environmen- tal Planning Act 1978 (Chapter 370). The EP is submitted to the PNG Gov-

Increasing grade ernment for the consideration of and approval by the Minister responsible for Environment and Conservation. Lowest grade considered possible The acceptance of an EP by the Minister for defined time for Environment and Conservation is a period Unknown Known Exploration success prerequisite for the granting of a special mining lease (SML).

Measured reserves Unknown resources 3.1.2 Special Mining Lease Indicated reserves Known resources The capital cost of the project exceeds Inferred resources US$75 million, which is the threshold Non-exploitable deposits above which a special mining lease Source: Govett and Govett (1974). (SML) is required. The required steps in the SML approval process are shown Figure 4 The relationship between resources and reserves diagrammatically in Figure 5. Boxes in

6 Ramu Nickel Project—Environmental Plan Executive Summary yellow are the primary responsibility of the proponent and its consultants. Boxes in blue require the collaboration of the State and the proponent, with the former taking the lead role. Boxes in pink are Community Provincial National the steps at which final government ap- EPIR (Note 1) provals are given. Undertake a land ownership study culminating in a map of (Note 2) Figure 5 shows that the EP requires ap- land ownership boundaries proval by the Minister for Environment and Conservation before the National Foster establishment Executive Council can approve the SML of Landowner Association(s) and the mine development contract. 3.1.3 Water Resources Act Develop policy on: The Water Resources Act 1982 (Chapter ¥ Employment and training 205) requires permits for the taking of ¥ Business development ¥ Community infrastructure water and the discharge of water or waste and services improvement to the environment. Schedule 4 of the Water Resources Regulations 1981 sets water quality standards for various uses Negotiate a compensation agreement with Landowner and discharges. Water quality standards Association(s) for Papua New Guinea are currently under review, and new standards have been Prepare a business proposed (PNG 1998). development plan 3.1.4 International Agreements Papua New Guinea is also a party to a Prepare a training and number of international conventions and localisation plan treaties (Box 1). 3.2 Consultation Prepare a supply and procurement plan 3.2.1 Previous Documentation The EP follows the presentation of the Environmental Plan Inception Report Prepare a finance plan (EPIR; NSR 1997a) to the PNG Govern- ment in July 1997. This report identified the environmental sensitivities of the The National Government takes the lead role in negotiating a project and defined the general scope of Memorandum of Agreement between all parties for the provision of community infrastructure and services which commits expenditure the investigations required for an assess- Prepare EP and from Special Support Grants, royalties, the Tax Credit Scheme and ment of the impacts. Officers of the BFS (Note 3) other funding sources Department of Environment and Con- servation (DEC) reviewed the EPIR and suggested additions to the scope of Mine Development Contract (MDC) between the proponent and the State EP is approved investigations which have been incorpo- by the Minister rated into this EP. for DEC (Note 4) National Executive Council approves SML and MDC, 3.2.2 Meetings and Presentations Governor General executes A series of site visits, workshops and meetings have been held since the release of the EPIR. The Ramu Nickel Note 1: Environmental Plan Inception Report (EPIR). Provincial Project Team (RNPPT) held Note 2: District Officer Lands needs to check boundaries and sign off. its inaugural meeting in May 1998 and Note 3: Environmental Plan (EP), Bankable Feasibility Study (BFS). Note 4: Dept of Environment and Conservation (DEC). ministerial inspections have been made. During the course of the SEIS, a range of national-, provincial- and district-level government officers, political representa- tives and prospective landowner repre- sentatives were interviewed. Figure 5 Special mining lease (SML) procedure

Ramu Nickel Project—Environmental Plan 7 Executive Summary

3.3 Schedule Box 1 Relevant international conventions and treaties The schedule for project permitting through to construction and first produc- RAMSAR Convention on Wetlands Especially as Waterfowl Habitat (1971) tion is given in Figure 6. International Plant Protection Convention (1951) Plant Protection Agreement for Southeast Asia and the Pacific Region (1956) 4. Project Description Convention on International Trade in Endangered Species of Wild Flora and Fauna Details of the two main project areas, (CITES) (1993) the Kurumbukari mine site and the Ba- Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other samuk refinery complex, are shown in Matter (1992) Figure 7. Convention on the Conservation of Migratory Species of Wild Animals (1979) 4.1 Kurumbukari Facilities Convention on Biological Diversity (1992) The proposed Kurumbukari mine site is Convention Concerning the Protection of World Cultural Heritage and Natural Heritage located on a dissected plateau bounded (1972) to the northeast by the extensive flood- UN Framework Convention on Climate Change (1992) plain of the Ramu River and to the southwest by the foothills of the Bismarck • Overburden averaging 2.5 m thick- Mining is proposed within four separate Range. ness, comprising a humic layer (up zones (Figure 9). The Ramu East, Ramu 4.1.1 Mining to 1 m) overlying red limonite. Central and Ramu Central Extended zones are located on the Kurumbukari Geology • Ore comprising yellow limonite (av- Plateau and together form the Kurumbu- Basement rocks underlying the Kurum- erage thickness 7.5 m) and ore-grade kari resource block. The Ramu West re- bukari mine site consist of dunite with saprolite (average thickness 2 m). minor pyroxenites. Uplift has created an source block is the fourth zone in which elevated plateau that has been exposed • Rocky saprolite, comprising weath- mining is proposed. ered dunite boulders in a saprolite to prolonged deep tropical weathering Mining Sequence ore matrix (average thickness 3.5 m) and surface laterisation. The mining process is shown in Figure overlying the predominantly dunite 10 and comprises the following phases: At Ramu, this soil laterisation process bedrock. has dissolved silica and other ions leav- • Land clearance: the land area cleared Mineral Resource and Ore Reserve ing a deposit which consists mainly of will be the minimum required for Nickel and cobalt ore occur in the yel- hydrated iron oxides enriched in nickel operations, and begins with the sal- low limonite, saprolite and rocky and cobalt. Chromite occurs as a residual vage of timber one year in advance saprolite horizons of the laterite profile. mineral and has become concentrated in of clearing the remaining vegetation. The estimated mineral resource at a 0.5% some areas by physical processes. Vegetation will either be stockpiled, nickel cutoff grade is 143.2 Mt @ 1.01% chipped for mulch, used in brush An idealised laterite profile is shown in nickel and 0.10% cobalt. The estimated matting or used to build sediment Figure 8 and consists of: ore reserve is 75.7 Mt @ 0.91% nickel filters downstream of cleared land. and 0.10% cobalt.

1997 1998 1999 2000 2001 2002 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ENVIRONMENTAL Environmental Plan Inception Report Short elapsed-time investigations Environmental Plan investigations Environmental Plan submission Baseline phase monitoring Construction phase monitoring Operations phase monitoring CORPORATE Joint Venture project approval Finance negotiations Government approvals ENGINEERING Detailed design Construction Commissioning/ramp-up

PRODUCTION

Figure 6 Permitting and development schedule

8 Ramu Nickel Project—Environmental Plan Executive Summary

Bagabag Is. 145°00' E 146°00' E

S o r Greater Ramu resource block g e e iv r am R N Ramu West resource block 5°00' S Kurumbukari resource block5 °00' S W E Built-up area Village Alexishafen S Proposed refinery 0 20 River Existing road

km Proposed access road S

o Dirt road g

e G Madang Exploration Licence 193 boundary r

a o m g o Possible future SML boundary l R R Proposed slurry pipeline i ive v r e Existing ELCOM powerline r Ato Junction R a m Musak .

u Nuru R Astrolabe . R R Bagasin i ve Bay m r Erima ra Duduela Cape ala Sepu . Erima Harbour nd R . R Rigny A On ga n woro R Usino Io R. Basamuk a i . a Ileg R alp Kepler C o Usino Junction P a s t um Point ar M Mea R. Rai R. N o Highw Saidor ia pu ay Ba R ia Karamukei . ap R. Im Ah br . um R M M a a re d Bundi Brahman a an R. gÐ F L I N I Mt Wilhelm a S T E R. e R R E 4509m a R y a u m Dumpu R a u A N T G E R iv H er ig hw ay 6°00' S 6°00' S Kundiawa

E E E E E E E E E

m m m m m m m m m

0 0 0 0 0 0 0 0 0

Goroka 0 0 0 0 0 0 0 0 0

0 1 2 3 4 5 6 7 8

° 0 0 0 ° 0 0 0 0 0 0 145 00' E 4 4 N1464 00' E 4 4 4 4 4 4

W E 9390000m N DSTP outfall S 0 2 Wellfield 2 2 3 3 3 3 9 9 0 0 1 1 0 5 0 5 0 5

0 0 0 0 0 0 9389000m N km 0 0 0 0 0 0

0 0 0 0 0 0 Accommodation m m m m m m Kaloglamepek R

E E E E a E E R area m ai Pommern u Fofom 9390000m N 939000m N Buff Bay Banap N Creek Oxbow 9388000m N Hi nap Balau ghw Mindiri Daunagari Ba ay Frensi

R Dum

W E an e

Nape v Creek e

r e Tugiak Swamp r Basamuk Ganglau C ver Imod Bay Ri 0 S 5 9387000m N Asamingar k

k C Sabsing e m m n a

u k Saigle e u

r r a k

a a k u

km i k u L

M g C e

Jangag k u k C T a Dumbal e o r u r k

a k e

m Bubu a g e

K Sareng C

l r

o n C g u

9385000m N 9385000m N Ugat b Haba M 9386000m N n m a m u o r b G

u B e l v m a i k u ee g R Cr B Babang N 9385000m N k ee r Refinery and e C R k a

m ri g u ag port n

An u Kuripung

i i

9380000m N v 9380000m N

e e

r v

9384000m N i R on an Limestone Basamuk facilities ag 2 3 3 3 Swamp 3 Y 9 0 0 1 1 b quarry 5 0 5 0 5 a 0 0 0 0 0 9383000m N 0 0 0 0 0 Raw wmater pipeline 0 0 0 0 0 o m m m m m 400000m E N

Coordinate reference E E E E E 9375000m N

Figure 7 Plan of main project and infrastructure components

Topsoil will be removed just ahead from almost non-existent to about producing and will be directly placed of mining and will be progressively 20 m. It will be stripped at an annual in mined-out areas, and neither sepa- re-used for rehabilitation. average rate of 1.1 Mt, generally im- rate disposal nor long-term storage mediately before the underlying ore above ground is required. • Overburden removal: overburden is mined. Overburden is non-acid- thickness averages 2.5 m and varies

Ramu Nickel Project—Environmental Plan 9 Executive Summary

• Ore mining: ore will be mined in cells of 1 to 4 ha at a rate of about 4.6 Humic layer Mt/a, which corresponds to an area Cr% Co% Ni% Mg% Diamond drill hole

of about 48 ha/a. Ore thickness var- Overburden (av. 2.5m) Red limonite ies from 7 to 15 m and will be mined % 5 % %

in benches by excavators and loaded 1 1 % . 1 - - 8 0 5 - - 1 0 . 4 5 into trucks for haulage to the benefi- . 0 0

0 Yellow limonite (av. 7.5m) . ciation plant. 0 % 5

• Progressive rehabilitation: rehabili- . Cobalt enrichment 0 - 1 tation will start as soon as an indi- . 0 Nickel enrichment Saprolite (av. 2.0m) vidual cell has been mined. The % 3 % 0 . % 5 Rocky saprolite (3.5m) % 0 2 general procedure is shown in Fig- 4 - - - 2 1 1 5 0 1 ure 10: . Small rocks 0-5m 0 (av. 50cm) - Boulders exposed during mining will be used to form stable, Dunite free-draining batters along the lower slopes of mined-out areas. Key Ni Nickel - Overburden will be placed over Co Cobalt previously mined surfaces. Cr Chromium Mg Magnesium - Freshly stripped topsoil with fer- tiliser will be applied and a stabilising nursery crop sown Figure 8 Idealised Ramu laterite profile (Plate 5). 2 2 3 3 3 3 9 9 0 0 1 1 0 5 0 5 0 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

m m m m m N m

E E E E E E

R a m u W E 9390000m N 9390000m N Banap S R

Oxbow i v Daunagari Cr e 0 2 eek r

p km a n EL 193 a Nape B Swamp ver Ri

um ar M Mt Kua

9385000m N 9385000m N Dakukui Wianive Palai Ramu Ramu Ramu Mt Palai Central East Ramu Central R iv Extended e Morinam r Miayi ek re C i gr Greater Ramu resource block Enekwai na A Ramu West resource block 9380000m N 9380000m N Kurumbukari resource block Mokimi Swamp Village River Proposed access road

2 3 3 3 Previously proposed access roa3 d 9 0 0 1 1

5 0 5 0 Exploration Licence 193 bound5 ary 0 0 0 0 0 0 0 0 0 0

0 0 0 0 Possible future SML boundary 0 m m m m m

E E E E Proposed slurry pipeline E 300000m E Coordinate reference 9375000m N

Figure 9 Greater Ramu mineralised zone

10 Ramu Nickel Project—Environmental Plan Executive Summary

Vegetation Post- Undisturbed Mining Overburden and topsoil logging forest (advancing phase ) stripped stripped regrowth Logging

Undisturbed Humic topsoil forest Sheeted finger Pre-mining roads landform

Ore

Base of the rocky saprolite

Preparation for mining and advancing phase mining

Dunite boulders Stable free- Mining remaining following draining batter (retreating phase ) mining being formed

Undisturbed Pushing dunite boulders to forest Undisturbed downslope edge of mined-out forest Pre-mining Sheeted finger pit to form batters landform roads

Ore

Dunite boulders Base of the rocky saprolite

Preparation for rehabilitation and retreating phase mining

Undisturbed forest Stable free- Overburden Topsoil Mulch/brush Local pioneer draining batter (2 m thick) (150 mm thick) matting Nursery crop species Established vegetation

Undisturbed forest Pre-mining landform

Burial of de-agglomeration plant rejects Dunite boulders Base of the rocky saprolite

Dunite boulders Progressive rehabilitation ( ) Figure 10 Schematic cross-section of preparation, mining and rehabilitation stages

Ramu Nickel Project—Environmental Plan 11 Executive Summary

- Some propagation of local pioneer and nitrogen-fixing species is envisaged, but ultimately, natural recolonisation will be the pre- dominant regrowth mechanism. • Erosion control: once disturbed, the clay soils of the Kurumbukari Pla- teau are easily eroded, particularly during intense rainfall. The mine site spans the headwaters of a number of catchments on the Kurumbukari Pla- teau. RNJV proposes an erosion control plan in each disturbed catchment to minimise fugitive sediment comprising: - The retention of eroded material close to the source during small to moderate flood events (micro- scale control): localised slope Plate 5 Millet cover crop trial on red limonite (fertilised) protection; small check dams; vegetative filter strips; and road drainage. pits, from which it may be subsequently 4.2.2 Slurry Pipeline reclaimed at some future date if it be- The ore slurry will be transported by a - Settling ponds (macro-scale con- comes economic to do so. 134-km pipeline across a range of low trols): three ponds are envisaged hills between the Ramu River valley and to accommodate the initial 4.2 Transport Infrastructure Astrolabe Bay, and then east along the 10 years of mining, each pond 4.2.1 Roads coast to the refinery at Basamuk (see designed to retain a 24-hour, 10- Madang to Kurumbukari Figure 7). The pipeline will be 500 mm year rainfall event. Trapped A permanent, 36-km road will be con- in diameter and comprise welded, high- sediment will be periodically ex- structed from Usino Junction on the Ma- tensile steel generally on above-ground cavated and sent to the benefi- dang–Lae Highway across a new bridge supports. The nominal rate of flow will ciation plant for blending with over the Ramu River to the mine at Ku- be 430 t of dry solids/h at a slurry den- run-of-mine ore. Additional fa- rumbukari (see Figure 7). This road will sity of 32% solids by weight. cilities will be required for the allow access from the mine site to Ma- later years of mining. dang (92 km away) and to Lae (208 km 4.3 Basamuk Facilities away). The Ramu Highway is currently 4.3.1 Refinery Sequence of Mining Activities being sealed between Usino and Lae and The location of the Basamuk refinery Figure 11 shows the progressive se- upgraded between Usino Junction and complex is shown in Figure 7. The refin- quence of clearing, mining and rehabili- Madang. ery will produce nickel and cobalt in tation, and the location of the three two main stages (Figure 13): settling ponds up to Year 11. Basamuk Access Tracks A two-lane gravel-surfaced 3-km-long • Acid pressure leaching in autoclaves 4.1.2 Beneficiation access road will be constructed between to dissolve nickel and cobalt from Beneficiation is the first stage of ore the refinery at Basamuk and the accom- the ore and their subsequent precipi- processing, and can be carried out at modation area, water supply point and tation as intermediate hydroxides us- Kurumbukari. It involves the physical limestone quarry (see Section 4.3, to fol- ing lime. removal by screening and gravity sepa- low). ration of the larger stones and chromite • Re-leaching of the hydroxides by sand, followed by thickening (Figure 12), Dry weather road access along the 95 ammonia followed by nickel solvent so as to produce a consistent slurry feed km from Madang to Basamuk will be extraction and electrowinning, and for overland pipeline transport (see Fig- via the Ramu Highway to Ato Junction cobalt salt precipitation. ure 7). The slurry will average 1.12% and then along the gravel Rai Highway. The Ramu ores have good metallurgical nickel and 0.11% cobalt. The latter fords numerous large rivers of properties, with expected nickel and co- the Finisterre Range and so heavy equip- The stones will be used for drainage and balt recoveries of 93% and 88% respec- ment, construction materials and opera- erosion control structures; the thickener tively. Testwork indicated that ores could tions access will be via the new port at overflow will be recycled; and the chr- be blended at 2:1 limonite:saprolite, a Basamuk Bay. omite sand will be stored in mined-out sulfuric acid consumption rate of

12 Ramu Nickel Project—Environmental Plan Executive Summary

Banap Creek Eastern Creeks catchment Eastern Creeks Central-A catchment Central-A catchment Central-B

Banap Creek Ban Creek Ban Creek catchment catchment catchment

N N

W E W E

S S 01Anagri Creek 01Anagri Creek catchment catchment km km

Year 2 operations Year 5 operations

Banap Creek Banap Creek catchment Eastern Creeks catchment Eastern Creeks catchment Central-A Central-A catchment Central-B Central-B Ramu East Ban Creek Ban Creek catchment catchment

Ramu Central

W E N Ramu Central S 01Anagri Creek W E Extended catchment Anagri Creek km S catchment 01 km Year 8 operations

At end of Year 11 operations

Cleared Mined Cumulative rehabilitation Settling pond Kurumbukari resource block boundary

Figure 11 Clearing, mining and rehabilitation sequence to Year 11

250 kg/t and an autoclave retention cluding melting elemental sulfur, steam, 1.2 Mt/a quarry located 3 km from Ba- time of 60 minutes. the boiler feedwater deaerator and gen- samuk feeding a conventional lime plant eral plant heating. in the refinery complex (see Figure 7). 4.3.2 Acid Plant The acid plant will produce approxi- 4.3.3 Quarry and Lime Plant 4.3.4 Port mately 3,350 t/day of sulfuric acid and The annual refinery requirements for Project-dedicated port facilities will be 120 t/day of sulfur dioxide by combus- 0.7 Mt of limestone slurry and 0.3 Mt of constructed at Basamuk. Consumables tion of elemental sulfur. Excess heat will milk of lime will be met by a proposed including fuel oil and elemental sulfur be recovered for various plant uses, in-

Ramu Nickel Project—Environmental Plan 13 Executive Summary will be imported and delivered by bulk carriers. Nickel metal and cobalt salt will be exported across the wharf. RoM ore A general view of Basamuk Bay and hinterland is given in Plate 6. De-agglomeration plant

4.4 Services Wobbler Oversize rock 4.4.1 Electrical Power feeder The provision of electrical power for the mine, the refinery and associated facilities is shown in Table 2. Diesel genera- Primary Oversize rock tor sets will supply power to the scrubber Kurumbukari mine site and the Basamuk trommel refinery complex. The two ore slurry pumping stations will draw power from the ELCOM Ramu grid switchyards at Process Secondary Oversize rock Usino Junction and Ato Junction. A new Raw water Preparation water screen scrubber transmission line will be installed from tank trommel Ato Junction to the nearby pump station. 4.4.2 Raw and Potable Water Water requirements and sources are shown in Table 3. Chromite Chromite removal 4.4.3 Accommodation plant Accommodation and messing facilities will be required for both the construction and operations phases. RNJV in- Overflow water Thickener tends to build the permanent camps early tanks to meet the construction accommodation requirements. For the operations Ore slurry pipeline phase, there will be single-status accommodation at Kurumbukari, permanent Refinery accommodation in Madang and a township at Basamuk. The make-up of the accommodation mix Figure 12 Beneficiation flowsheet is given in Table 4. 4.4.4 Sewage Treatment Basamuk, one for the refinery and the outfall to the south of the accommoda- Remote sites, sites without power and other for the accommodation area. Treat- tion area. Effluent from the Kurumbu- temporary construction facilities will use ment plant effluent from the refinery will kari package sewage treatment plant will septic tanks and absorption trenches to be mixed with tailing and discharged to be disposed of via absorption trenches. treat and dispose of sewage. Package the ocean at depth with the tailing stream. Sludge from the treatment plants will be sewage treatment plants will be provided Treated effluent from the accommoda- pressed and the cake disposed to desig- by RNJV at Kurumbukari and Basamuk. tion area package sewage treatment plant nated mined-out pits or landfills. There will be two sewage systems at will be discharged via a separate ocean

Proposed Refinery Site Basamuk Bay East Forest Yaganon River West Forest

Plate 6 Basamuk Bay and hinterland

14 Ramu Nickel Project—Environmental Plan Executive Summary

Ore

Benefication plant

Slurry storage

Limestone Pre-heating slurry

H2SO4 High pressure Pressure leach Tailing disposal Deep sea tailing placement Steam acid leach neutralisation tank Solid Limestone slurry Iron/aluminium Countercurrent decantation Air removal (two stages) (CCD)

Solid Lime slurry Lime boil and Steam ammonia Liquid recovery Ammonium sulfide Solid Solid Liquid Nickel/cobalt Nickel Lime slurry SO2/Air Copper precipitation Ammonia solvent Cobalt sulfide Solid SO2 leach removal (two stages) leach extraction precipitation

Liquid Air Liquid Nickel Cobalt/zinc Lime slurry electrowinning pressure Manganese oxidation Air Air precipitation Zinc Lime slurry Nickel solvent product extraction Zinc Cobalt precipitation solvent extraction

Cobalt crystallisation

Cobalt product

Figure 13 Refinery flowsheet

4.4.5 Refuse Disposal 4.4.6 Telecommunications 4.5 Tailing Treatment and Wastes generated at Kurumbukari and A telecommunications network will be Disposal Basamuk will be sorted and then recy- set up linking project facilities with each Two options for the management of re- cled where possible, otherwise they will other and with national and global sys- finery tailing have been considered, on- be disposed to landfill. tems. land storage and DSTP. The latter is the

Ramu Nickel Project—Environmental Plan 15 Executive Summary preferred option for reasons which are Table 2 Power demand and supply set out in Section 6.2.3. Both options Location Power Demand (MW) Installed Capacity (MW) involve treatment of the tailing. Mine 4 4.8 4.5.1 Tailing Treatment Refinery 53 71.5 Tailing solids from the refinery will be Usino Junction 4.35 Grid produced at up to 5 Mt/a and a total of Ato Junction 4.35 Grid about 100 Mt will be generated over the project’s nominal, 20-year life. Table 3 Water requirements and supply The tailing will be treated by the addition of limestone and/or lime to neutral- Requirement or Supply L/sec m3/day ise residual acidity and raise the pH to Kurumbukari approximately 7.8 so that soluble metals Raw water requirement: are precipitated prior to disposal. Mine 2.4 205 4.5.2 DSTP System Beneficiation plant 88 7,584 Configuration Other 2.8 243 The layout of the proposed DSTP sys- Total 93 8,032 tem is shown in Figure 14 and in sche- % of mean daily flow (Gagaiyo River) 4% 4% matic cross-section in Figure 15. % of 1-in-50-year minimum flow (Gagaiyo River) 67% 67% The principal features are: Basamuk • Mixing of tailing with seawater at a Raw water requirement: ratio of 1:1.5 by volume in a mix/ Process stream 195 16,850 deaeration tank on the shoreline, Cooling water 126 10,900 which removes entrained air prior to Potable 19 1,650 discharge. Other 10 865 Total 350 30,265 • Seawater intake pipeline from 60 m depth. % of mean daily flow (Yaganon River) 2% 2% % of 1-in-50-year minimum flow (Yaganon River) 53% 53% • Tailing outfall pipeline terminus at 150 m depth, which is: and wave action, and within density current along the canyon floor - 70 m below the deepest measured which water can circulate freely). and into a deep oceanic basin (Vitiaz zone of sunlight (euphotic zone). A typical measured profile show- Basin). ing the mixed layer at 75 m depth - 50 m below the zone in which Operation is given in Figure 16. upwelling can occur. The tailing will consist of: • Location of the outfall terminus in a - 30 m below the deepest measured • A treated alkaline slurry, from which steep-sided submarine canyon, which surface mixed layer of the ocean the nickel and cobalt have been ex- will direct the flow of tailing as a (a layer which is mixed by wind tracted. Potential contaminants in the

Table 4 Accommodation for employees during construction and operations

Accommodation Type Kurumbukari Mine Camp Basamuk Refinery Basamuk Madang Permanents Permanents Construction Operations Construction Operations Operations Operations Houses 20 20 11 15 Duplexes 104 50 2-man single-status quarters 16 74 34 4-man dongas (2Êper ensuite) 88 56 300 140 8-man dongas (4Êper ensuite) 128 264 480 376 16-man dongas (8Êper ensuite) 272 592 8-man dongas (spare) 400 Hostel 50 30 Hired 1,100-man camp 1,100 Total beds 538 366 2,492 1,010 115 99 100-man fly camp This camp is not included in the above figures.

16 Ramu Nickel Project—Environmental Plan

Executive Summary

0 2 2 -

- - 1 8 0

404000m E 404500m E 0 405000m E 405500m E

- 1 6 0

1 0 1 - 2

1 4 0

1 -

- 1

0 2

2 0

0 0

2 -

0 0

- -

- 1

9388000m N 0 9388000m N

6 -

0 8 1 - N

W E

1 - Tailing mixtank S 0 200

1 -

- 1 2 0

9387500m N 9387500m N

- 1 0 0

8 -

0 6 -

0 4 -

Basamuk Bay

9387000m N 9387000m N

Basamuk refinery facilities Countercurrent Bathymetric contour decantation Tailing pipeline thickeners Slurry feed line Sulfur pipeline Raw water Drainage 404000m E 404500m E 405000m E 404000m E Coordina4te05 r5e0f0emre Ence

Figure 14 Layout of the DSTP system option

tailing have been identified as the Because the tailing seawater mixture is proximately 2,500. The permanent work- residual nickel and cobalt, and also denser than the receiving seawater at force is projected to be 1,045. chromium and manganese. 150 m depth (see Figure 16), beyond the 4.7 Decommissioning outfall the tailing will flow down the • Process reagents, with ammonia be- The project will ultimately close after an sloping seafloor of the Basamuk can- ing the only reagent of potential en- operational life which is nominally 20 yon. The footprint of the tailing solids is vironmental concern. years. Decommissioning principles in- predicted to ultimately deposit on the clude: Tailing will flow by gravity pipeline from deep ocean floor within the Vitiaz Basin the refinery to the tailing disposal tank, (see Section 6.3.4 ‘Deposition’). • Liaison with the PNG Government’s then to the mix/deaeration tank. The den- Mine Decommissioning and Reha- The above model for tailing behaviour is sity difference between the tailing and bilitation Committee concerning clo- based on the observed behaviour of ex- seawater will draw seawater into the mix/ sure requirements. isting DSTP systems, and closely mim- deaeration tank via the seawater intake ics the behaviour of natural land-derived • Liaison with landowners and com- pipe. After mixing, the diluted tailing sediment flows from coastal rivers dis- munity groups. will flow by submarine pipeline to 150 m charging into deep ocean basins. depth, where it will be discharged as a • Compliance with all relevant legisla- turbulent jet at an estimated velocity of 4.6 Workforce tive requirements, SML and other 4.2 m/s and a density of 1,100 kg/m3. The construction workforce peaks at ap- lease conditions, commitments made

Ramu Nickel Project—Environmental Plan 17 Executive Summary

Tailing headtank Tailing pipeline

Refinery Mixtank

Seawater pipeline

Seawater intake (60 m) Deepest EZD (80 m) Deepest UWD (100 m) Outfall pipeline Deepest MLD (120 m) EZD : Euphotic zone depth UWD : Upwelling depth MLD : Mixed-layer depth Outfall terminus (150 m)

Figure 15 Conceptual DSTP disposal system

by RNJV and the requirements of north of the existing Kurumbukari ex- From the Kurumbukari mine site, the project financiers and insurers (if ploration camp (see Plate 1); Usino, proposed slurry pipeline travels east- any). about 20 km to the east of the proposed wards towards the coast, crossing the mine site and with a population of about Ramu River and the extensive Ramu • Removal or burial of unwanted equip- 2,000, is the closest town. River floodplain and connecting with the ment and material. • Completion of rehabilitation. Density (kg/m3) Final landforms at the mine will com- 1020 1030 prise steep slopes, grassy terraces and 10 Temperature (°C) 35 rocky outcrops. At Basamuk, the quarry 0 will present as an open pit, and the plant Surface mixed layer area as a grassy flat. All project areas will be reclaimed by forest over time, unless regular burning 100

by villagers maintains fire-adapted grass ) m ( and shrub communities. h t p e d

r e

5. Project Setting and Issues t a W 5.1 Description 200 The undulating terrain of the proposed mine site area is covered with tropical mixed rainforest and some areas of kunai grassland. Population density is low; scattered settlements subsist from shift- 300 ing cultivation. A number of small ham- 32 Salinity (parts per thousand) 38 lets exist within the proposed SML. The 0 100 closest village to the mine site is Transmissivity (%) Daunagari, located about 5 km to the Figure 16 Typical oceanographic profile, August 1995

18 Ramu Nickel Project—Environmental Plan Executive Summary

Madang–Lae Highway which it follows Deep water close to shore to the north of • Social and economic benefits and on its descent to the coastline of Astro- Basamuk Bay leads to the Vitiaz Basin, impacts. labe Bay. Vegetation in the Ramu valley which is over 2,000 m in depth. • Effects on archaeological and cul- is a complex of low altitude forests on 5.2 Issues tural sites. plains and fans, and grassland along the The planning and impact issues raised access road alignment. These issues are discussed in Section 6. by the Ramu Project within this environ- The pipeline reaches the coastline near ment may be summarised as follows: 6. Environmental Planning the coastal town of Erima and from there Planning the pipeline route runs southeast to the 6.1 Investigations • Refinery location. proposed refinery complex at Basamuk. A comprehensive suite of site investiga- Basamuk Bay on the Rai Coast (Plate 7) • Tailing disposal strategy. tions and testwork has been carried out is a natural harbour with deep water off- for environmental planning and impact • Water quality management. shore and a narrow fringing reef on the assessment purposes. These studies are bordering headlands. The natural veg- • Air quality management. listed in Box 2, grouped according to the etation in the surrounding coastal zone section of the appendix volume (Vol- • Rehabilitation of mined land. has been largely replaced with cash crops ume C) in which they appear. of coconut and cocoa, while the foothills • Social and economic development. 6.2 Main Planning and are used for subsistence gardening. Na- Impact Assessment Management Options tive forest in the foothills is mostly sec- • Effect of project land requirements Options exist for many aspects of a large ondary regrowth in the valleys, with on land use and conservation. project. Of these, four are considered to kunai grass on the ridges and slopes. be of major significance for the Ramu The Basamuk area has a population of • Water quality impacts of construc- Nickel Project and are discussed below: between 1,000 and 1,500 people in ap- tion and downstream of mining. proximately 15 villages scattered along • Refinery location. • Shallow-water marine impacts. the coastal zone and adjacent foothills. • Power generation. • Deep-water marine impacts.

Plate 7 Basamuk Bay

Ramu Nickel Project—Environmental Plan 19 Executive Summary

Box 2 List of environmental planning and impact assessment studies

Appendices 1 to 8 Appendices 14 to 19 1 Bathymetry and Physical Oceanography 14 Resource Use Surveys 2 Currents and Water Properties off Northern PNG 15 Ocean Floor Sediments 3 Marine Biological Communities 16 Chemical and Toxicological Characterisation of 4 Freshwater Impacts Tailing 5 Marine Impacts 17 Terrestrial Vertebrate Fauna 6 Conceptual Study of On-Land Tailings Disposal 18 Archaeology and Material Culture Study Options 19 Sediment Study: Management Plan and Downstream 7 Hydrology and Meteorology Impacts 8 Deep Sea Tailing Placement Engineering

Appendices 9 to 13 Appendices 20 to 25 9 Physical Properties of Tailing 20 Assessment of Limitations to Rehabilitation, 10 The Numerical Model of Deep Sea Tailing Placement Kurumbukari Mine Site 11 Vegetation Survey 21 Air Quality Assessment 12 Aquatic Biology 22 Socio-economic Impact Study 13 Water Quality and Sediment Chemistry 23 Vegetation and Fauna of the Basamuk Bay Refinery Site 24 Deep-Slope Fisheries Survey, off the Rai Coast 25 Ramu Nickel Project Local Business Development Policy

• Tailing management. the mine and transporting imported A second review of siting and layout consumables from the port to the mine. options was then undertaken in the Erima • Air emission control. and Ato region (between the tributaries Having decided on a coastal location for 6.2.1 Refinery Location of the Palpa River) and then further afield the refinery, a precise location involved The Ramu nickel deposits were first iden- along the Rai Coast. Cape Rigny was the consideration of many factors, as tified in the 1960s, but it required im- identified for more detailed investiga- shown in Table 5. proved ore processing technology—high tions, but the water was too deep at the pressure acid leach—for the project to The coast of Astrolabe Bay (see Fig- nominal port site for a conventional become economic. However, the energy ure 7) provided the shortest slurry pipe- wharf. Around this time, Basamuk Bay and consumables required by the new line distance and prefeasibility desk was identified as a potential site. De- technology are substantial, and the abil- studies and preliminary field investiga- tailed investigations showed geotechnical ity to provide, in particular, sulfur, lime- tions identified a potentially suitable conditions to be suitable and Basamuk stone and electricity at low cost becomes site at Erima. Subsequent detailed was selected as the refinery site. critical to economic feasibility. Of the geotechnical studies showed unaccept- 6.2.2 Power Generation major consumables, limestone is avail- ably poor foundation conditions. Kurumbukari able locally, but sulfur and fuel for elec- The prefeasibility study supported the tricity generation need to be imported. At the same time, access to the mine site is hindered by a combination of moun- Table 5 Refinery siting factors tainous and swampy terrain. The opti- Factor Erima Cape Rigny Basamuk mal arrangement of facilities to meet Suitable port bathymetry Poor Very poor Good these requirements is to have the ore Flat topography Very good Poor Poor treated at the mine to remove coarse particles and chromite, and then send A reliable process water supply Poor Good Very good the beneficiated ore as a slurry by pipe- Suitable geotechnical conditions Very poor Moderate Very good line to the refinery located adjacent to Potential for deep sea tailing Moderate Good Very good the port, where the major consumables placement by volume, sulfur and fuel oil, can be Proximity to a limestone Poor Poor Very good offloaded from ships. This arrangement resource is substantially cheaper than other op- Length of ore slurry pipeline Very good Good Moderate tions, such as locating the refinery at Land tenure Good Poor Unknown Suitability ratings: very good, good, moderate, poor, very poor, unknown.

20 Ramu Nickel Project—Environmental Plan Executive Summary construction of an electricity transmis- Table 6 Site selection criteria for on-land tailing disposal sion line from the ELCOM Ramu grid at Usino Junction to the mine site. How- Factor Selection Criteria ever, construction costs were later found Foundation materials Competent, stable, low seepage potential to be prohibitive and diesel-fired gen- Fill slope stability for Modest horizontal to vertical ratio erator sets are now proposed. embankment fill materials Basamuk Proximity to other Nearby During the prefeasibility study and early project components in the feasibility study, a coal-fired power Geometry Provision of adequate storage volume and modest station, raising steam to power steam requirements for embankments in terms of length and height turbine/generator sets was considered. This could have enabled the excess steam raised from waste heat in the acid plant • Option 1b: conventional valley tail- pography to create a larger conventional (supplemented by boiler steam) to be ing dam in the coastal foothills. valley tailing dam. In practice, the post- mining topography offered no dam sites used for power generation. However, it • Option 1c: filtered tailing landfill stor- of adequate capacity, and this option was became apparent that the steam usage by age on the coastal plain. the leach circuit would be higher than not pursued further. Kurumbukari previously thought and there would be For the other disposal options, potential • Option 2a: conventional tailing dam. no steam from the acid plant for power sites were identified, and the suitability generation. A fuel study also indicated • Option 2b: filtered tailing landfill stor- and risks of each were ranked in terms that, although coal provided the cheap- age. of dam stability, seismic stability, tail- est energy in terms of cost per unit of ing handling and placement, water han- In concept, Option 2a involved creating energy as delivered to the wharf, the dling and effluent, land use, groundwater a storage area in each cell as it was capital cost of the steam turbine option seepage, and capping and closure mined-out and using the post-mining to- was very high when compared to diesel (Table 7). engines. The configuration finally selected was Table 7 A comparison of identified conceptual on-land tailing disposal options the acid plant, with an auxiliary boiler to Option Description Total Cost Potential Fatal Flaws be used for start-up, to generate all steam Rank (Millions for the leach circuit and other process * US$) areas, and a totally independent power Option 1a: 20 555 Potential for downstream environmental station using medium-speed diesel en- conventional impacts during operations and closure. gines running on heavy fuel oil. turkey’s nest tailing Significant land area impacted. 6.2.3 Tailing Management dam, coastal plain Potential requirement for foundation Tailing management by storage on-land ground improvement to prevent seismic and DSTP via a submarine outfall have liquefaction. been examined and compared. Option 1b: 22 185 Potential for downstream environmental conventional valley impacts during operations and closure. On-land Tailing Storage tailing dam, coastal Significant land area impacted. On-land tailing storage in impoundment foothills Potential requirement for foundation structures is used extensively around the ground improvement to prevent seismic world. The method is best suited where liquefaction, valley wall instability. evaporation significantly exceeds rain- Option 1c: filtered 18 503 Inability of pressure filters to produce dry fall: the water deficit promotes drying tailing, landfill cake and to handle/place material. and consolidation of the tailing materi- storage, coastal Potential for downstream environmental als and allows the structure to operate plain impacts during operations and closure. without the need to discharge water. On- Significant land area impacted. land options were considered for tailing Option 2b: filtered 15 640 Significant tailing pipeline and pump back produced as either a slurry or a filter tailing, landfill costs. cake, and five options were identified storage, Inability of pressure filters to produce dry and assessed against the criteria in Kurumbukari cake and to handle/place material. Table 6: Potential for downstream environmental Basamuk impacts, complicated by requirement for • Option 1a: conventional turkey’s nest initial 2 years storage off mine site, during tailing dam on the coastal plain. operations and closure. *Based upon qualitative ranking system out of total 35 points (lower ranking is generally more favourable with lower associated risks).

Ramu Nickel Project—Environmental Plan 21 Executive Summary

Table 7 indicates that Option 1b offers Table 8 Site investigations to assess suitability for DSTP the lowest cost option, for the highest Site Selection Criteria Survey/ Basamuk Basamuk risk, but differences in ranking between Investigation Option Option options are minor and the risk for all Type Suitability Report options is high. Reference Deep Sea Tailing Placement Occurrence of steep nearshore Ocean floor Very good Appendix 1 DSTP involves the discharge of tailing submarine slopes (>12°) that would bathymetry to the ocean at depth, with ultimate depo- allow tailing to flow away from the sition of the tailing solids on the deep outfall ocean floor. Countries presently or for- Geotechnically stable nearshore Geotechnical Moderate Feasibility merly using this method include: submarine slopes to provide pipeline assessment of Study outfall security bathymetric and • Papua New Guinea—two operating geological data 1 and one approved. Occurrence of a deep ocean basin to Deep ocean floor Good Appendix 1 which tailing can flow and then bathymetry • Indonesia—one operating, one un- deposit der construction and one approved. Occurrence of a permanent density Oceanographic Very good Appendix 1 • Turkey—one operating. gradient in the ocean profile to trap profiling tailing at depth • Chile—one operating. Lack of strong deep ocean currents Deep water Good Appendix 1 • France—two operating. capable of resuspending and current metering transporting˛tailing solids beyond the • Canada—two operated successfully, receiving basin now closed. Lack of upwelling currents capable of Interpretation of Very good Appendix 2 mobilising tailing from depth into the satellite imagery The attractions of the method are low 2 capital, operating and decommissioning surface waters for upwelling costs, natural post-closure recolonisation Preferred, but not essential of tailing deposits and long-term safety. Occurrence of a submarine canyon to Ocean floor Very good Appendix 1 confine tailing flow and deposition bathymetry However, specific site criteria need to Lack of current or potential Assessment of Moderate Appendix 24 be met, and these are shown in Table 8. commercial or subsistence utilisation utilisation of This shows that Basamuk is well suited of local deepwater fisheries deepwater to the method, with the proviso that fisheries RNJV’s environmental objectives can Moderate range of tide levels to allow Review tide Good Appendix 8 also be met (see Section 2.4). a conventional shoreline mixtank to charts Comparison of On-land Tailing Storage be used and Deep Sea Tailing Placement Suitability ratings: very good, good, moderate, poor, very poor. On-land and DSTP tailing options are 1 This assessment is of a preliminary nature. compared in Table 9. Constraints and 2 Upwelling of ocean water has been identified at Basamuk, but has been shown to occur uncertainties exist with each. In the case from depths of 100m: any DSTP system outfall would need to be sited well below this depth. of the on-land options, these factors are significant, particularly those of long- Table 9 Tailing disposal option comparison term erosion, the unavoidable need for regular discharges of water from the im- Issues On-land DSTP poundment and the inherent uncertain- 1a 1b 1c 2b ties in safeguarding a permanently Land clearance MoP MoP MoP MiP No saturated structure against seismic liq- Catastrophic failure Mo Mo Mi Mi No uefaction in perpetuity. Erosion O O S S No The constraints and uncertainties for Pipeline rupture Mi Mi Mi Mi Mo DSTP are somewhat less by compari- Shallow marine impacts MoP MoP MiP No No son. Moreover, in the regional context, Deepwater marine impacts No No No No Mi the Vitiaz Basin receives a very large Feasibility of preventing ???? No volume of natural sediment (estimated seismic liquefaction at 80 Mt/a), mainly from rivers draining Feasibility of producing and No No ? ? No the Finisterre Range. The tailing is of handling filter cake inherently low toxicity, and 5 Mt/a of Constraint ratings: tailing would add a relatively small pro- O = Overriding; S = Severe; Mo = Moderate; Mi = Minor; No = None; ? = Unknown; p = Based on preliminary data.

22 Ramu Nickel Project—Environmental Plan Executive Summary portion to the natural regional sediment In the acid plant from a previously considered refin- flux. ery site at Erima, some 48 km to the • Option 1: increasing the SO removal 2 west-northwest of Basamuk, where For these reasons, DSTP is the preferred efficiency by providing a greater the terrain is flatter). A meteorologi- tailing management option. The primary amount of catalyst in several beds cal station has been installed at Ba- factors in this choice are: and by adding a caesium catalyst in samuk and data collection commenced the fourth converter pass. • Favourable offshore site conditions. in August 1998. • Option 2: incorporating a scrubber • Large cost saving. • Re-running the air dispersion model on the exhaust stack to increase the when data from the representative • Low toxicity tailing. SO removal efficiency. 2 wind fields have been collected at • Negligible loss of land and resources. In the power station Basamuk. • A high probability of full ecological • Option 3: paying a premium for a • Negotiating a set of air quality crite- recovery, as deposited tailing will be low-sulfur heavy fuel oil for diesel ria with DEC that will be applicable buried by high rates of natural sedi- generators instead of standard heavy to RNJV. mentation. fuel oil in order to reduce SO emis- 2 • Formulating an acceptable air emissions. • Long-term safety guaranteed. sions management strategy for the • Option 4: fitting flue gas de- project (such as the adoption of Op- • High level of predictability and low sulfurisation scrubbers to the engine tions 2 and 3) and possibly other miti- technical risk. exhausts. gation measures, in consultation with The on-land options are considered tech- DEC. A second round of air dispersion model- nically feasible. However, they all rank ling was then carried out and the results • Developing a monitoring program for poorly in each of the above respects, and are reported in this EP. project operations in consultation particularly in terms of: with DEC. Ground-level concentrations have been • High to very high cost. derived for SO2 and nitrogen dioxide 6.3 Impact Assessment and

• High technical risk. (NO2) (assuming 10% of the total NOX Safeguards emissions is present as NO for which 6.3.1 Land Impacts • The onerous long-term requirement 2 the goal is set) under each of the air The development of the project will re- to protect downstream environments emission reduction options (Options 1 quire some 1,585 ha of land. A compen- and people in perpetuity against the to 4 as already defined) and under se- sation agreement is presently being potential of catastrophic failure, to lected combinations of options (1 and 3, negotiated with the local people, which which a saturated structure in an area 1 and 4, 2 and 3, and 2 and 4). is expected to cover the occupation of of high seismic activity is prone. customary land, unavoidable damages The modelling shows that a combina- The final issue—whether the marine en- to land, loss of useful resources and in- tion of Options 2 and 3 achieves the vironmental impact of DSTP is suffi- creases in freshwater and seawater tur- highest reductions of both SO and NO . ciently low and whether the tailing 2 X bidity. The assumed annual average air quality deposits will ultimately be recolonised goals can thereby be met for NO and Within the proposed SML, one or more for the option to be acceptable—is ad- 2 come very close to being met for SO hamlets will require relocation to ac- dressed in Section 6.3.4. 2 (67 µg/m3, compared to the assumed goal commodate the mine (Figure 18). RNJV 6.2.4 Air Emission Control of 60 µg/m3). will assist affected landowners to reset- The proposed refinery at Basamuk will tle to alternative areas with sufficient Similarly, the assumed 1-hour maximum have four types of air emission: land to meet subsistence gardening and air quality goals for SO and NO are particulates; hydrocarbons; sulfur di- 2 2 settlement needs and with access to clean predicted to be exceeded (albeit less than oxide (SO ); and oxides of nitrogen water and adequate bushland resources. 2 1% of the time) during worst-case con- (NO ). x ditions at some villages on the higher About 1,000 ha of primary forest in the Particulates and hydrocarbons are not ground to the south of the refinery. This mine area will be cleared. The loss of expected to be problematic from the is shown for SO2 in Figure 17. forest in the mine area, though locally standpoint of human health. However, a substantial, is not expected to be These findings indicate that the air qual- preliminary investigation found that SO regionally significant (see cover of this 2 ity issues are close to being resolved, but emissions, in particular, could be prob- report). This is because mining will dis- a further round of planning and assess- lematic and recommended that RNJV turb less than 10% of the forest which ment is required. To this end, RNJV assess ways to reduce refinery emission covers the Kurumbukari Plateau, and proposes the following course of action: levels and thereby bring ground level because the medium-crowned lowland concentrations into line with air quality • Collecting in-situ meteorological data hill forest typical of the locality is com- goals. The following options were then at Basamuk (currently only available proposed by RNJV:

Ramu Nickel Project—Environmental Plan 23 Executive Summary mon in northern Papua New Guinea, oc-

E E E E E E

m m m m cupying expansive tracts of similar cli- m m

0 0 0 0 0 0

1 2 3 4 5 6

0 0 0 0 matic and altitudinal conditions. 0 0

4 4 4 4 4 4 9389000m N N The impact to vegetation will be miti- gated by progressive clearing, mining W E DSTP outfall Accommodation and then rehabilitation of disturbed ar- P o m m e r n B a y area S eas (see Figure 11), which will provide a 0 1 9388000m N mosaic of undisturbed and disturbed veg- km Mindiri etation. The forested slopes of Mt Kua, Frensi Duman k

k C located in the northern portion of the e Highway re Tugiak Basamuk

proposed SML (see Figure 18), will be k n i a

Asamingar Ganglau e Bay a e Imod u r R untouched by the project and will pro- 9387000m N C k Sabsing o k k ra ng vide refuge for fauna. a Saigle u K k 0

e M 1 e k r C e

Jangag e

r 3 The project will have localised effects 0 1 Bubu C Dumbal Sareng u on subsistence gardens and cash crop- a l Ugat m g

o Haba n

b ping. Where these impacts are unavoid- 9386000m N a

m G 7 o Refinery and u l B able, local communities will receive 1 a

port g 0

r 0 N

e k 1

v e

compensation. i Cre 5 R Babang

At the time of writing, no villages re- e 3

b k a g n

9385000m N m u

quired resettlement along the pipeline o m

N i route, but there may be a need to resettle 1 Contour for percentage of time PerceSntage of time that Kuripung assumed SO 1-hour that assumed SO2 1-hour 2 villages in close proximity to the refin- maximum goal is exceeded maximum goal is exceeded ery. Village r e v River 0Ð1 i R 6.3.2 Freshwater Impacts 9384000m N Existing road 1Ð3 1 Proposed access road 3Ð5 Limestone Mining will be confined within indi- Proposed slurry pipeline quarry 5Ð7 Basamuk facilities n vidual zones for periods of about 5 years. no 402000m E Coordinate reference > 7 ga Generally over each period, sedimented Ya runoff will be confined to a single catchment. RNJV’s erosion control plan (see Figure 17 Predicted percentage of time that the assumed SO2 1-hour maximum Section 4.1.1) will mitigate the effects goal (350 µg/m3) is exceeded under emission control options 2 and 3 of fugitive sediment from disturbed areas, but residual freshwater impacts will 295000m E 300000m E 305000m E still occur over the life of the mine. Creek River During periods of major catchment dis- Marum Nape turbance, such as settling ponds construc- Swamp tion, locally severe impacts are predicted for the streams draining active mining Banap zones, in the Ban Creek, Eastern Creeks, Anagri Creek and Banap Creek catchments: increases in suspended sediment Mt Kua 9385000m N concentrations during high flows; and increases in bed sedimentation and Gaiji Mt Palai (68) floodplain deposition. Fish population Dakukui Falai (7) densities are expected to be severely re- Wianive (15) duced in the main streams, but increase (122) once the settling ponds start to intercept Greater Ramu resource block Ramu West resource block Morinam Miayi fugitive coarse sediment. The total length (101) (77) of all creeks thus affected is about Kurumbukari resource block Swamp N 40 km, a tiny fraction of all Ramu River Hamlet Kinimati Enekwai tributaries. Freshwater impacts at the end (15) Population (26) W E River (127) of the nominal 20-year mine life are 9380000m N Proposed access road shown in Figure 19. Further increases in Possible future SML boundary 02S Proposed slurry pipeline fish density are expected following mine 295000m E Coordinate reference km closure, as the natural sediment regime resumes. Figure 18 Hamlets and populations at Kurumbukari

24 Ramu Nickel Project—Environmental Plan Executive Summary 300000m E 305000m E 310000m E 9390000m N 9390000 mN Banap Oxbow Ramu Daunagari N Creek Eastern Creeks

River subcatchment W E Marum River Nape Banap Banap Creek Swamp S catchment 02 km

Ban Creek catchment Mt Kua 9385000m N Creek 9385000m N Palai Dakukui Wianive Ban Mt Palai

Morinam Swamp Miayi Settling pond

Creek Ramu Greater Ramu resource block Anagri Creek Ramu West resource block catchment Enekwai Anagri

Kurumbukari resource block River 9380000m N 9380000m N Village River Mokimi 295000m E Proposed access road 300000m E 305000m E 310000m E Catchment boundary Subcatchment boundary 300000m E Coordinate reference

MODERATE IMPACTS MINOR IMPACTS Physical: Physical: Moderate aquatic habitat damage from Minor aquatic habitat damage from sediment deposition and bed sediment sediment deposition and bed sediment transport. Elevated TSS concentrations transport. Elevated TSS concentrations during high flows. during high flows. Biological: Biological: Moderate reduction of fish population Minor reduction of fish population density density and biomass. Moderate reduction and biomass. Minor reductions in fish food in supply of fish food organisms. organisms.

Figure 19 Aquatic biological impact zones at the end of mine life, Kurumbukari

Plate 8 Banap Oxbow in the foreground with the Ramu Plate 9 Nape Swamp with Kurumbukari Plateau in the River in the distance background

Ramu Nickel Project—Environmental Plan 25 Executive Summary

The only permanent change predicted is that Banap Oxbow (Plate 8) is expected 1000 Initial construction 1000 to infill with sediment over the life of 800 800 the mine, resulting in the loss and/or

L 600 600 / g reduction of aquatic habitat and the as- m 400 400 sociated subsistence fishery. This effect 200 200 is unavoidable, and will require com- 0 0 pensation to be paid. Impacts on the other 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr subsistence fishery of the mine area, Nape Swamp (Plate 9), are expected to 1000 Year 1 1000 be minor. 800 800 600 600 L Water quality impacts due to trace met- / g als originating from the mine are pre- m 400 400 dicted to be insignificant. 200 200 0 0 No detectable bed sedimentation or 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr heavy metal impacts on the Ramu River are expected. Highly localised, minor Year 2 impacts on aquatic habitats at the mouths 1000 1000 of the Ban and Banap creeks are ex- 800 800 600 600 L pected during construction and early op- / g erations. However, no significant impacts m 400 400 are expected on the overall aquatic habi- 200 200 tats of the Ramu River, as episodes of 0 0 elevated, mine-induced TSS fall within 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr the natural range (Figure 20). 1000 Year 4 1000 6.3.3 Shallow-water Marine Impacts 800 800 The main impacts on the shallow-water 600 600 L / marine environment will be caused by g m 400 400 plumes of turbid water associated with the construction activities near the coast, 200 200 0 0 especially the refinery complex at Ba- 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr samuk. The sources of turbid water will include sediment-laden floodwaters from 1000 Years 5-11 1000 creeks draining construction areas, tur- 800 800 bid plumes resulting from the shoreline 600 600 L / dumping of incompetent waste rock and g soil generated during excavation of the m 400 400 refinery site, port construction and asso- 200 200 ciated dredging, and from the construc- 0 0 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr tion of the tailing-seawater mixtank and the onshore-offshore section of the tail- Baseline Predicted ing and seawater intake pipelines. RNJV will install and maintain silt curtains, similar to those deployed by the Figure 20 Baseline and predicted mean daily TSS at Ramu River at Sepu Lihir Gold Mine (Plate 10) at the mouths of the most affected streams, in order to decrease rapidly with distance from the represents a small area compared to the contain and settle the solids in turbid sources of turbid water plumes gener- large unaffected areas of fringing reef runoff. However, residual shallow-wa- ated by construction activity. Within within Basamuk Bay and along the adja- ter impacts will still occur during con- about 500 m either side of the sources of cent Rai Coast. Within the severe impact struction, and nearshore biological turbid water plumes, impacts on the fring- zones, most or all of the reef-attached fish impact zones are shown in Figure 21. ing coral reef are expected to be minor. species are expected to be displaced, and Within and adjacent to the main areas of Small and localised sections of coral reef reef-associated fishes are expected to nearshore construction and creek mouths, will be lost, such as a 10-m-wide section migrate to less-affected reef areas. Fol- impacts on the fringing coral reef (where needed for the construction of the tail- lowing construction, the settlement and present) are predicted to be severe but to ing-seawater pipelines; however, this recruitment of juvenile corals in the af-

26 Ramu Nickel Project—Environmental Plan Executive Summary

Plate 10 Lihir silt curtain fected areas of fringing reef is expected DSTP Impact Mechanisms dissipated much of the tailing’s ini- to be rapid. The significant impact mechanisms of tial energy. Substantial dilution will the DSTP system are: occur during this initial mixing phase, During operations, the sources of con- but the slower-moving mixture will struction-derived sediments will have • The flow of tailing as a bottom-at- still be denser than the surrounding ceased and no long-term impacts on the tached density current. seawater. shallow-water marine environment are • Elevated concentrations of suspended predicted. • Gravity will cause the negatively- fine tailing solids in a series of di- buoyant mixture of tailing and The effects of treated sewage discharge lute, subsurface plumes, which shear seawater to continue down the slop- from the Basamuk accommodation area off the descending density current. ing seabed as a density current. This are expected to be highly localised and • Tailing deposition on the floor of the will gradually spread across the bed restricted to a short distance from the Basamuk canyon and on the deep of the canyon. This larger, slower outfall. No observable effects on the ocean floor of the Vitiaz Basin. movement is termed a ‘lutite flow’. fringing coral reef are expected. Plume Formation • Localised tailing solids deposition 6.3.4 Deep-water Marine Impacts Case studies of operating DSTP systems will occur along the flow path. Impacts on the deep-water marine envi- indicate the following processes: ronment will arise mainly during the op- • The peripheries of the density cur- erations phase from DSTP. However, • The neutralised and diluted refinery rent are expected to eventually reach over a period of several months during tailing will emerge from the pipe at a a density equal to that of the sur- construction, the shoreline dumping of in- depth of 150 m as a high-energy, tur- rounding seawater, at which point competent waste from foundation works bulent jet. It will be denser than part of the liquid fraction, and some at the refinery site is expected to have seawater and will flow down the slop- of the finest tailing particles, will minor impacts on deep-slope habitats, as ing floor of the Basamuk canyon. shear off and form a subsurface plume the waste material descends the subma- in the water column. The formation • Within a short distance, friction and rine slope below the proposed dumping of these plumes will occur at density entrainment of seawater will have site. discontinuities in the water column.

Ramu Nickel Project—Environmental Plan 27 Executive Summary

E E E E E

m m m 9389000m N m m

0 0 0 0 0

4 3 5 2 6

0 0 0 0 0

4 4 4 4 N 4 Village River Bismarck Sea W E Existing road Proposed slurry pipeline S Sandy embayment 0 Fringing coral reef 500 Proposed silt curtain m Proposed treated DSTP outfall sewage outfall Incompetent waste dump Areas to be dredged 9388000m N 402000m E Coordinate reference Mindiri

Frensi Duman Tu ek Refinery giak Ck re C and port Ship wharf Basamuk way Imod Tugiak High Bay Rai Ganglau Asamingar g Sabsing a 9387000m N y g u Accommodation Saigle N Barge berth area ek re C

k k k k

n e e e

e e a e e

r r e r

r C

C C k C

Bubu o

Sareng n

e l u k

m a u g M

o g a n b l N g Haba u m n o m a

B i G S

SEVERE IMPACT ZONE MODERATE IMPACT ZONE MINOR IMPACT ZONE

Physical: Physical: Physical: Severe reef damage from sediment Moderate reef damage from sediment Minor effects of increased sedimentation deposition and resuspension. High TSS deposition and resuspension. Elevated rates. Elevated TSS concentrations. concentrations. Nearshore water very TSS concentrations. Nearshore water Nearshore water occasionally turbid. frequently turbid. frequently turbid. Biological: Biological: Biological: Some reduction in live coral coverage and High mortality of corals and associated Moderate reduction in live coral cover and diversity. Detectable changes in reef- fauna. Loss and/or reduction of reef- diversity. Moderate reduction of reef- attached fish diversity and population attached fish. Reduction in numbers of reef- attached fish diversity and population density. No change in diversity of reef- associated fish. density. Minor reduction in reef-associated associated fish. fish population density and biomass.

Figure 21 Predicted nearshore biological impact zones (physical and biological effects) during the construction phase

• The remaining solids in the lutite off Basamuk. Both factors are expected Deposition flow, especially the coarser tailing to contribute to the variable distribution Figure 23 shows the area in which the particles, will continue to move down through the water column of subsurface principal deposition of tailing is expected the slope. plumes; however, as in the case for other to occur. The area is generally defined DSTP systems, these subsurface plumes by a 1-km margin around the tailing den- • Deep in the basin, in the zone of are expected to be very dilute (<50 mg sity flow. The footprint of the density main deposition, a very dilute, but total suspended solids (TSS)/L) and re- flow has been defined by the 10 parts vertically expansive bottom-attached main trapped at various depths below per million (ppm) contour, that is, by the plume may occur, termed the the surface mixed layer where they will points at which the moving and gradu- ‘nepheloid layer’. be advected horizontally by prevailing ally spreading density current has even- • Ultimately the sediment, less losses currents and will not rise to the surface. tually decreased in suspended sediment to subsurface plumes, will settle on concentration to 10 ppm1, by processes The process of density flow and plume the ocean floor. of deposition and dilution. In general, it formation is consistent with the model is expected that settling within the den- Both density discontinuities and current of McCave (1972), by which large quan- shearing (horizontal layers of water flow- tities of fine sediment are transported 1 Suspended solids in ocean water typically ing in opposing directions) have been from their terrigenous origins to beyond average 5 ppm. A concentration of 10 ppm measured throughout the water column continental shelves (Figure 22). in a glass beaker would appear clear to the eye.

28 Ramu Nickel Project—Environmental Plan Executive Summary sity flow footprint (where the faster, turbulent density currents prevail) will be minor, with major settling occurring in the much slower, laminar, deep-ocean Sea level currents at the perimeter of the density flow. In simple terms, the configuration of settling could resemble a halo, in the Plume development along manner observed at other DSTP opera- density interface tions, mimicking the formation of levees Main lutite flow along floodplain rivers and in natural down slope deep-sea turbidite (density) current fans (see Figure 22). Suspension Seabed cascade The linear pattern at the start of the density flow reflects the strong confining To bottom nepheloid effect of the Basamuk canyon down to layer around 800 m depth. Substantial settling is expected to occur between 1,000 m Source: After McCave (1972). and 1,600 m water depth. Tailing depos- Figure 22 Schematic of density flows and plumes its are expected to range from a few cm to tens of metres thickness. By way of they provide a useful point of reference. mixed with seawater, such as hydroly- context, a 100-km-long seismic profile Filterable concentrations of arsenic, cad- sis, precipitation/dissolution, and adsorp- across the Vitiaz Basin has indicated mium, copper, iron, mercury, lead and tion/desorption. Analytical results natural sediment deposits of up to 2 km zinc in the proposed tailing slurry are all indicated that some metals in the tailing in thickness (Milliman 1995). low, being less than the current PNG will be mobilised from the solid phase standards for marine waters (Water Re- on mixing with seawater. However, con- The area of main deposition has been sources Act 1992) and also less than the centrations of filterable metals as a pro- estimated to be of the order of 150 km2. proposed PNG objectives (as of May portion of total metals were still low, This is some 1.5 % of the approximately 1998) for the protection of marine eco- generally 5% or less of the total concen- 10,000 km2 area of the Vitiaz Basin, de- systems (PNG 1998). All other filterable tration of each metal. fined as the area from Teliata Point to metal concentrations (nickel, chromium Long Island and extending westwards in Mixing Zone Requirement: the PNG Wa- and cobalt) are less than 0.5 mg/L, ex- an arc through smaller islands to Cape ter Resources Act 1982 allows a mixing cept manganese which is 29 mg/L. Juno north of Madang (see Figure 24). zone between the discharge point and a Bioassay: chronic and acute sub-lethal boundary where ambient water quality Figure 23 also shows the inputs of sedi- toxicity tests on organisms representing standards must be met. Within the mix- ment from rivers on either side of the three trophic levels were undertaken on ing zone, these standards may be ex- DSTP system. An annual total of 12 Mt the tailing liquor by CSIRO’s Centre of ceeded. has been estimated. This material will Advanced Analytical Chemistry. The re- comprise: Table 10 shows the total dilutions of tail- sults showed the tailing liquor to be non- ing in seawater required to comply with • The bedload and heavier suspended toxic to even the most sensitive species various water quality standards/guide- sediments, which will flow in their tested after only 100 dilutions in lines, based on the results of the mixing own density currents to join, dilute seawater. tests. and settle with the tailing flow. Mixing: mixing tests elucidate the non- Compliance with existing PNG regula- • The lighter suspended sediments, conservative physico-chemical processes tory requirements for all metals is pre- which will float in spreading fresh- which occur when a tailing slurry is water plumes from the river mouths, and settle to the ocean floor over a Table 10 Dilutions of tailing required to comply with ambient water quality wider expanse of the Vitiaz Basin. standards/guidelines

Water Column Effects Parameter PNG Schedule 4 Proposed PNG ANZECC USEPA µ Chemistry: all filterable (<0.45 m) (1982) Objectives (1992) metal concentrations in the tailing are lower than World Bank guidelines Nickel 0 340 340 460 (World Bank 1995) applicable to liquid Cobalt 720 460 - - effluents from open pit mining and mill- Manganese <50 550 - - ing (such as discharge of overflow water from a tailing dam). While the guide- Ammonia - - - 865 lines are not directly applicable to DSTP, Note: toxicity testwork showed the tailing to be non-toxic to the most sensitive species tested after 100 dilutions of the tailing liquor (equivalent to 40 dilutions downstream of the mixtank).

Ramu Nickel Project—Environmental Plan 29 Executive Summary dicted to be achieved with 720 dilutions Examples of seawater appearance at a range of total suspended sediment of the tailing. This is based on compli- concentrations (patterned cards seen through seawater in glass beakers) ance with the standard for cobalt, which 0 ppm 22 ppm 70 ppm 120 ppm is specified as the ‘limit of detection’ and therefore depends on the analytical method used. The method detection limit for analytical results reported in the EP, and therefore the PNG standard, was 0.5 µg/L, but this is arbitrary and of no toxicological significance. Compliance with the proposed PNG objectives (PNG 1998) for all metals would be achieved with 550 dilutions of the tailing slurry, based on compliance with the proposed Modelled tailing density flow footprint to 10410000mE ppm 420000mE objective for manganese. River Road Vitiaz Basin When compared to international water Proposed slurry pipeline Terrigenous (river) sediment input quality criteria, all filterable metal con- 410000mE Coordinate reference centrations are predicted to comply with Predicted main zone of tailing deposition Basamuk facilities Australian guidelines (ANZECC 1992) Upland catchment and United States criteria (USEPA 1986 Mountain catchment 9410000mN and 1995) with 460 dilutions of the tail- High mountain catchment Unmapped area ing slurry, apart from ammonia (USEPA Depth of 1989), for which 865 dilutions would be ocean floor N (m) required. -1600 S W E TS -1500 pm The toxicity testwork showed the tailing -1400 0 p S 1 liquor to be non-toxic after 100 dilu- -1300 05 -1200 km tions, based on the no-effect concentra- -1100 S S tion (NOEC) for the most sensitive test -1000 T m -900 p 9400000mN species. (This translates to a dilution of p -800 10 some 40-fold after allowance for pre- -700 Tailing 5 Mt/a mainly to discharge dilution of 1:1.5 tailing -600 deposition zone -500 slurry:seawater by volume in the -400 Natural sediment 12 Mt/a to mixtank.) -300 main tailing deposition zone -200 and wider Vitiaz Basin Numerical modelling was undertaken to -100 provide a guide to the distances required 0 to attain the various water quality objectives. Assuming a conservative set re- 6.01 Mt/a 9390000mN quirement of 1,000 dilutions, this would translate into a mixing zone with a ra- River R dius of 1 km from the mixtank, (and, Gowar 0.25 Mt/a a i C o a s t say, >100 m below the surface). Ambi- River 0.04 Mt/a r ent water quality standards may possi- 0.22 Mt/a 0.32 Mt/a e Kepler Point River iv Rai R 5.43 Mt/a bly be exceeded in the tailing density Highway n o

n current and bottom-attached lutite flow Ganglau a

g Menglau a outside this zone; however the physical Y impacts of continuous tailing discharge Figure 23 Predicted main tailing deposit footprint will eclipse any effects due to deterio- rated water quality. In other words, any occur within a short distance of the outfall centrations of metals in soil from the water chemistry effects are secondary to terminus and well inside the suggested area to be excavated are similar to, or physical impacts, and this limits the use- mixing zone). less than, concentrations in ocean floor sediment samples taken offshore of Ba- fulness of applying a mixing zone based Benthic Effects samuk and literature values for mean on water quality criteria to the density Shoreline dumping of incompetent rock crustal abundances and deep-sea clay. current and lutite flow. (Furthermore, and soil generated by refinery site con- the toxicity testwork showed the tailing struction activities will result in this The principal benthic impacts arise from to be non-toxic after some 40-fold dilu- material ultimately reporting to the the passage of the density current and tions (see prior discussion), and this will deep-water marine environment. Con- tailing solids settling on the seabed.

30 Ramu Nickel Project—Environmental Plan Executive Summary

Plate 11 Finisterre Range behind Basamuk Bay

Smothering of the Benthic Habitat on is more than the Amazon Basin.) A typi- Case studies of overseas DSTP systems, the Ocean Floor: the main physical im- cal sediment-laden plume from the Gogol after closure, report rapid rates of re- pact of DSTP will be the physical smoth- River spreading out across the ocean sur- colonisation: Island Copper Mine (Ellis ering of benthic habitats within Basamuk face in the Vitiaz Basin is shown in 1989) and Kitsault Molybdenum Mine canyon and on the deep ocean floor of Plate 12. (NSR 1997b). In each of these Canadian the Vitiaz Basin. examples, a diverse benthic community The upper illustration in Figure 24 shows became established within 1 to 2 years The predicted zone of major deposition the annual sediment flux to the Vitiaz of DSTP closure. Provided the tailing is has been given in Figure 23. The periph- Basin, indicating the individual contri- not toxic (see as follows), then a similar eral area of much more diffuse sedimen- butions of the larger rivers. In the re- recovery is expected on the ocean floor tation, expected to be of the order of tens gional context of the Vitiaz Basin, the offshore of Basamuk. of millimetres, will contribute to the al- Ramu tailing will add approximately 6% ready high regional sediment flux into to this annual load. the Vitiaz Basin. This is a consequence of the numerous, short, steep, sediment- laden rivers draining the steep and very unstable terrain of the Finisterre Range (Plate 11). In areas of heavy sedimentation, sedentary and less mobile bottom-dwelling fauna will be smothered: the tailing deposits are also expected to be devoid of bottom-dwelling fauna. A less diverse bottom-dwelling invertebrate fauna is expected to persist in the more lightly sedimented areas. Figure 24 puts the Rai Coast into perspective. The lower illustration shows that it is part of the second-highest sediment-yielding basin of the island of New Guinea. (New Guinea yields 1,700 Mt/a of sediment to the coastal ocean, which Plate 12 Sediment-laden plume of the Gogol River

Ramu Nickel Project—Environmental Plan 31 Executive Summary

145° 30' E 146° 00' E 146° 30' E 147° 00' E 147° 30' E Cape Croisilles N

Bismarck Sea 5° 00' S Cape Juno W E

Cape Barschtsch S 0 50 Gogol River V km 2.3 Mt/a i Madang t i a z Long Is.

Astrolabe Bay B Enke Point Cape Rigny 5 Mt/a 80 Mt/a a Pommern R a i s 5° 30' S Bay Basamuk C Kepler Point o a i Cape Iris s n Umboi Is. Helmholtz Point t Saidor

Bunsen Point Gauss Point Weber Point Lepsius Point Gowar River 6.0 Mt/a Reiss Point Vincke Point Teliata Point Peschel Point Yaganon River Upland 5.4 Mt/a Mountain Mave River 6° 00' S High mountain 6.4 Mt/a Proposed refinery Nankina River 8.7 Mt/a Yupna River Terrestrial sediment flux to the Vitiaz Basin (80Mt/a) 5.4 Mt/a with values for larger individual rivers and Urawa River Ramu Nickel Project tailing (5Mt/a) 11.7 Mt/a Timbe River Kwama River 7.8 Mt/a 8.3 Mt/a

130¡E 140¡E 150¡E

N Annual sediment flux (t/km2) for W E New Guinea 10¡S 5500 S 10¡S 5100 0 200 2500 km 2200 2000 1800 130¡E600 140¡E 150¡E

Source: Milliman (1995). Fi 23Sdi fl N Gi dVii Bi Figure 24 Sediment flux, New Guinea and Vitiaz Basin

32 Ramu Nickel Project—Environmental Plan Executive Summary

Sediment Toxicity: testwork results show sediment quality criteria. Subsequent lev- Menglau, Ganglau and Yaganon (Plate that metal content of the tailing will re- els of assessment more closely consid- 13) rivers, which enter the ocean in a 10- main almost entirely associated with the ered the bioavailable fraction of the km section of the coast either side of particulate matter settling on the ocean potential contaminants. Toxicity testing Basamuk. The submarine canyons of floor. This will mostly occur at depths, of the interstitial water by CSIRO pro- these rivers (Figure 25) all converge in where anoxic conditions (devoid of oxy- vided the final tier of assessment. the zone of predicted major tailing depo- gen) in the sediments will promote the sition. The results showed that nickel was the formation of stable metal sulfide species primary possible toxicant: it was enriched Effect on Fishes and Fisheries (e.g. nickel sulfide, cadmium sulfide) in tailing (0.7 mg Ni/g dry weight) rela- Laboratory toxicity testing, as already and co-precipitation with common iron tive to reference values and sediment reported, has shown negligible residual sulfide minerals. In the long term, the quality criteria, and it was present in toxicity of the tailing at the dilutions continued settling of natural sediment tailing interstitial water at concentrations expected within the deep-sea environ- after closure will dilute, and eventually greater than relevant water quality crite- ment. Therefore, no material effects are bury, the tailing deposits. ria for the overlying water column. How- expected to fishes encountering the di- The possibility of adverse toxicological ever, the bioassays on marine reference lute subsurface plumes in the water col- effects of deposited tailing solids on ben- species (selected for their known sensi- umn. thic biota was assessed by a four-tiered tivity to nickel) indicated that the settled Investigations confirmed the expected chemical and toxicological testwork pro- tailing was non-toxic. occurrence of an unexploited, deep-slope gram. It follows, therefore, that water transfer- fishery resource along the Rai Coast, The first tier of assessment compared ring from the seabed sediments into the involving predominantly two species: the metal concentrations in tailing solids with water column would also be non-toxic. goldband snapper (Pristopomoides reference values, such as world average multidens) in the depth range 100 to Some confidence attaches to this find- values for deep-sea clay and crustal abun- 200 m and the ruby snapper (Etelis ing, as the Ramu tailing will be diluted dances. The second level of assessment carbunculus) in the depth range 200 to nearly 3-fold by the estimated annual compared metal concentrations with 400 m. 12-Mt sediment loads of the Gowar,

Plate 13 Mouth of the Yaganon River

Ramu Nickel Project—Environmental Plan 33 Executive Summary

The preferred depth range of the goldband snapper (Plate 14) is mostly Ganglau River canyon upslope of the proposed DSTP outfall and initial tailing deposition zone and, Incompetent waste dump as such, is expected to be little affected. Rotational slip scar In contrast, the depth range of the ruby snapper (200 to 400 m) is downslope of DSTP outfall the proposed outfall. This species will Yaganon River canyon therefore be affected. However the habitat area expected to be smothered by Basamuk Bay

tailing flows and deposition off Basamuk N is small in area, in comparison to the extensive unaffected areas of submarine slope in the same depth range elsewhere along the Rai Coast and along the north coast of mainland Papua New Guinea. Therefore, the project’s effect on bottom-dwelling fishes or potential deep- slope fisheries is expected to be restricted to a highly localised area of ocean floor and is not expected to be regionally significant.

B In the long-term, these effects are con- ~800 m a s M a sidered to be reversible: the deposited i m n d u tailing is expected to be both recolonised i k r i directly, and itself buried by natural sedi- C

C a a ment which will continue to flow into n

n y

y o

Basamuk canyon in perpetuity. Ulti- o n mately, a diverse assemblage of benthic n species are expected to become estab- ~6 km lished. Regulatory Requirements DSTP discharges are regulated in Papua New Guinea under the Water Resources Act 1982, which provides for a non-con- Figure 25 Three-dimensional image of submarine canyons off Basamuk forming mixing zone to be set by the Water Resources Board, at whose boundary the ambient water quality criteria Assuming this distance horizontally on • The tailing flow is fundamentally must be met. the seafloor, the diffuse lutite flow would non-toxic: after dilution in the have reached a depth of approximately mixtank, the liquor requires only 40 At the operational mines of Misima and 350 to 400 m. additional dilutions to achieve the Lihir, the mixing zone for DSTP is an empirically determined threshold of Summary imaginary cylinder jutting out of the sub- chronic effect. This is expected to The proposed refinery site at Basamuk marine slope. The radius of the cylinder occur within a short distance of the is located on the edge of one of the is the distance required for ambient wa- outfall terminus. ter quality criteria to be met. world’s most active sedimentary environments, with massive sediment yields • The interstitial (pore) water that will The results of numerical modelling for in rivers draining north to the Rai Coast form in the tailing deposits on the the Ramu Nickel Project indicate that from the very steep and unstable ocean floor is also fundamentally 1,000 dilutions would be attained within Finisterre Range. non-toxic. a distance of 1 km (and, say, greater than 100 m below the water surface of the In these and other respects, the DSTP • Vertical movement in the water col- outfall). If the Misima and Lihir models system proposed for the Ramu Project is umn in limited by the natural stratifi- are followed, then a mixing zone radius greatly advantaged by both favourable cation of the ocean and the absence of 1 km would provide a conservative site conditions and the characteristics of of upwelling except in the shallow- basis for regulation of the project’s pro- the tailing itself: est 100 m; lateral movement is lim- posed DSTP system. ited by the confining effect of the Basamuk canyon.

34 Ramu Nickel Project—Environmental Plan Executive Summary

• Substantial natural dilution and even- tual burial by river sediment will occur both around Basamuk and regionally in the Vitiaz Basin. • The DSTP impacts will be over- whelmingly physical, not chemical. After decommissioning, the operational environmental effects on the marine environment are expected to be substantially or entirely reversible. Section 2.4 sets out the RNJV environmental objectives for the Ramu Nickel Project: • To plan, operate and decommission the project in accordance with good industry practice and in compliance with the conditions and standards pre- scribed by the PNG Government. Plate 14 Dissected goldband snapper • To site and operate the components

of the project so as to minimise the 6.3.5 Air Quality Impacts of time. The reaction of plants to SO2 is effects on local villagers, their re- Effects on Human Health complex and it is difficult to predict ac- sources and the environment. Gaseous emissions from fixed and mo- tual impacts on vegetation with any cer- bile equipment at Kurumbukari and fu- tainty. However, adverse impacts on It is considered that the preferred DSTP gitive dust from all project areas are not vegetation are quite possible. Therefore, option for tailing management achieves expected to pose a significant risk to as part of the development of an accept- these objectives. Moreover, of all the human health. At Basamuk, air disper- able air emissions management strategy DSTP feasibility and impact factors as- sion modelling shows that annual aver- and monitoring program for the project, sessed by this EP, the factors most image air quality goals are close to being RNJV will work with DEC on the for- portant to achieving an environmentally met at nearby villages, while worst-case mulation of an acceptable vegetation satisfactory outcome are also the factors ground-level concentrations exceed the monitoring program and response strat- least prone to uncertainty: assumed 1-hour maximum air quality egy in areas where elevated concentra- • The low toxicity of tailing has been goals at the villages of Kuripung, tions are predicted to occur. established by comprehensive Babang, Dumbal and Ugat for SO and 2 Development of an Acceptable Air testwork. the villages of Kuripung and Babang for Emissions Management Strategy NO (assuming that 10% of NO at the • The ability to confine tailing below 2 x Section 6.2.4 sets out the RNJV com- receiving location is present as NO ). In the surface mixed layer is well- 2 mitment to repeating the air dispersion both cases, exceedence reflects an unu- proven at operating mines. modelling based on site meteorological sual combination of meteorological con- data from Basamuk, to reviewing pre- • Existing fisheries will be entirely un- ditions occurring for less than 1% of the dicted air quality impacts, to negotiating affected, and the effect on known but time. SO is the significant contaminant 2 air quality criteria with the Department undeveloped fisheries in deeper wa- in terms of human health protection, and of Environment and Conservation ter is expected to be very small. Figure 17 shows the percentage of time (DEC), and to reaching agreement with that the assumed 1-hour maximum goal Furthermore, confidence also seems war- DEC on an acceptable air emissions man- is exceeded for the areas and villages ranted in the long-term outlook for sub- agement strategy and monitoring pro- around the Basamuk refinery. stantial reversibility of the effects of gram for the project. The protection of tailing deposition after closure: the Vi- Effects on Vegetation human health will be central to the ne- tiaz Basin is one of the most heavily No effects on vegetation are predicted gotiations on air quality standards. sedimented marine environments in the from gaseous emissions from fixed and The findings of this EP are therefore world. Within a decade or less, it would mobile equipment at Kurumbukari or subject to updating in light of these fur- be expected that all sediment of Ramu from fugitive dust in any project area. At ther studies and negotiations. However, Nickel Project origin will have been bur- Basamuk, modelling predicts that veg- initial modelling has indicated that a sat- ied by natural input to the basin. etation on the hills to the south of the isfactory solution to the air quality man- refinery will be exposed to elevated lev- agement issues is within reach. els of SO2, albeit for very short periods

Ramu Nickel Project—Environmental Plan 35 Executive Summary

6.4 Accidental Events and Natural On 17 July 1998, a series of tsunamis hit The pipeline rupture locations with the Hazards the north coast of Papua New Guinea highest spill volume potential will be 6.4.1 General near the settlement of Aitape in West the centre of the Ramu valley and across Accidental and natural events that could Sepik Province. Wave heights of approxi- the foothills of the Finisterre Range. The lead to environmentally hazardous dis- mately 8 m were estimated. While the maximum volume of slurry that could charges are fundamentally different from return period of such an event is un- be discharged would be about 4,800 m3, the normal operational discharges of known, a tsunami of this magnitude is equivalent to some 2,000 t of solids. wastes and wastewaters described previ- likely to be a very low probability event, Depending on the location of the break, ously. The probability of accidental against which it is difficult or impossi- the total volume could enter the local events is low, given that the design, op- ble to defend most coastal areas. drainage. erating and control measures adopted by For the Ramu Nickel Project, all impor- However, the impact from such an event RNJV will have the specific aim of their tant facilities and all accommodation ar- would be non-toxic and temporary, given prevention. Similarly, natural occur- eas and localities requiring personnel the generally high sediment load in the rences of sufficient magnitude to cause attendance on a frequent basis will be rivers along the alignment and the fact significant damage have a very low prob- sited at elevations 3.5 m above the high- that the contents of the pipeline will be ability of occurrence. Nevertheless, est tide level (see Table 11). Process rea- an ore slurry of weathered soil. events of this nature cannot be precluded. gents, chemicals and fuel storage areas In such cases, the resources of RNJV If a spill occurs, it will be attended by an will also be similarly sited. will be mobilised in accordance with RNJV control and clean-up team. Envi- emergency plans. 6.4.4 Fuel and Reagent Spills ronmental monitoring will be carried out The primary protection against fuel and to determine the extent of damage and 6.4.2 Earthquakes reagent spillage is to bund the areas in the effectiveness of clean-up. The PNG region is one of the most which these materials are handled, to seismically active zones in the world, 6.4.6 DSTP Pipeline Failure keep good inventory records, to make regularly experiencing earthquakes of If a failure in the DSTP pipeline were routine inspections and to train opera- magnitude 7.0 or more on the Richter detected, then the refinery would be shut tors in correct procedures. Nonetheless, scale. down until the problem had been recti- accidents can occur. fied. The main failure possibilities of the The adopted seismicity and tsunami de- Prior to plant commissioning at the re- DSTP pipeline system and the corre- sign criteria are given in Table 11. finery, RNJV will prepare a spill contin- sponding safeguards are as follows: 6.4.3 Tsunamis gency plan. • The pipeline floats to the surface due Tsunamis are waves caused by undersea 6.4.5 Ore Slurry Pipeline Failure to entrained air in the tailing slurry. earthquakes and/or undersea landslides, Rupture of the pipeline would create an For such an event to occur, the de- the larger of which will inundate low- initial release of slurry under high pres- aeration mixtank would have to first lying coastal land. In 1970, a magnitude sure. The resulting pressure drop in the experience an abnormal increase in 7 earthquake generated a 3-m-high tsu- pipeline would be sensed by the control drawdown, which would be detected nami along the coastline north of Ma- system and the pumps would be halted. at the refinery control room, prompt- dang. ing an investigation of the system Since the rupture would almost certainly The Standards Council of Papua New and instigation of corrective response. not be located at a high point in the Guinea recommends that buildings be pipeline, slurry would continue to flow • The check valve in the mixtank fails, constructed 2 m to 3 m above the highest under hydrostatic pressure from the line causing the outfall/seawater intake tide level (PNGS 1982). above the rupture point. system to operate in reverse. Failure of the check valve will be detected in such an event. Table 11 Project-adopted seismic and tsunami design criteria • The outfall pipe develops a leak. This would cause an abnormally low Relevant Criteria for Design Reference mixtank fluid level, which would alert PNG seismic zone—Ramu and Huon Ripper and Letz, 1993 the refinery control room. Minor leak- PNG design earthquake zone—Zone 2 PNGS Code, 1982 ages at depth are more difficult to 100-year return period event—Magnitude 7.1* Ripper and Letz, 1993 detect than those in shallower areas 475-year return period event—Magnitude 7.7* Ripper and Letz, 1993 and the line can be inspected peri- Maximum credible earthquake—Magnitude 7.8 Ripper and Letz, 1993 odically by remotely operated vehi- Peak ground acceleration: soil—0.42 g Beca Gure, 1985 cle. Peak ground acceleration: rock—0.35 g Beca Gure, 1985 • The outfall pipe becomes blocked. Tsunami design (above high tide)—3.5 m Fluor Daniel, 1998 Even partial blockage of the pipeline *Surface wave magnitude, normalised to 100 km2 zone as per Ripper and Letz (1993). will result in unusually high levels in

36 Ramu Nickel Project—Environmental Plan Executive Summary

the mixtank fluid, causing operators Table 12 Types of benefit streams and relevant stakeholder group to investigate and instigate corrective action. Government Landowners Local Business RNJV Royalties Royalties Mine-related Employment and • A ship’s anchor damages the pipe. contracts training The location of the outfall and Dividends from Dividends from equity equity Other spin-off Education seawater intake pipelines will be businesses sponsorship shown on navigational charts and Special Support Compensation and warnings to mariners will be issued. Grant land use payments Special community grants An area surrounding the pipelines Infrastructure will be designated ‘no anchorage’. (mining) grant Technical assistance Moreover, any ship trying to anchor Tax credit scheme Tax credit scheme over the pipelines would be in full view of the refinery, and could be Nickel Project Feasibility Study indicate 7.1.7 Benefit Summary warned off. payments of about K5.9 million annu- Table 1 (see Chapter 1) has summarised 7. Social and Economic ally to the Provincial Government and the projected benefit streams to land- Development K1.5 million to the landowners. owners and provincial government for compensation, royalties, SSG and tax 7.1.2 Compensation The considerable benefit streams gener- credits. Landowners are entitled to compensa- ated by the project will act as major tion for the use of their land and the loss 7.2 Sector Impacts stimuli for development in the project of resources. RNJV is currently negoti- 7.2.1 Provincial and Local areas and Madang Province. The benefit ating a formal agreement. Payments Governments streams have the potential both to im- might be between K1.5 and 3 million Properly managed, the additional rev- prove social and economic welfare, par- over the first 3 years of project life, and enues to Madang Province will stimu- ticularly in the areas of education, health, at a lower level thereafter. late the development and growth of LLGs employment and business development, in both the project area and throughout but also have the potential to generate 7.1.3 Special Support Grant the province. negative impacts if they are not effec- Special Support Grants (SSGs) are paid tively managed. by the National Government to provin- RNJV is aware of the difficulties facing cial governments which host mining and provincial government initiatives in the The socio-economic impacts of the pro- petroleum projects. The grant system is past, and intends to contribute time as posed mining project have been investi- based on 1% of the f.o.b. value of pro- well as money towards improvements in gated in the Socio-economic Impact duction and could amount to approxi- this area. Emphasis will be given to the Study (SEIS) conducted by Project De- mately K3.7 million/a. provision of infrastructure works and sign and Management Pty Ltd. services in the project districts and LLG 7.1.4 Infrastructure 7.1 Benefit Streams areas, and on the transfer of responsi- Infrastructure grants by the National Table 12 presents a summary of the main bilities for projects and services from Government to provinces are not fixed benefit streams. The exact scope and RNJV to the designated agencies. to production. Their value would be a scale of some streams will depend on matter for negotiation between the Na- 7.2.2 Social Services negotiations between the parties, and on tional and provincial governments and Education future events, such as production vol- local level governments (LLGs) involved The project will increase demand for umes and the price of nickel and cobalt in the project. educational services. It will also offer a on world markets. means for meeting this demand, and for 7.1.5 Dividends 7.1.1 Royalties remedying existing deficiencies. Dividends depend on profit; dividend Royalties are currently paid at 2% of the income to Madang Province or LLGs or The SEIS has identified a number of free-on-board (f.o.b.) value of mine prod- landowners will require them to take up potential education projects, to which ucts exported from Papua New Guinea, share equity in the project. RNJV might contribute. These include or of the net smelter return from prod- new schools in Kurumbukari and ucts smelted or refined in Papua New 7.1.6 Tax Credits Daunagari, support for existing commu- Guinea. Under the Mining Act, 80% of The tax credit scheme allows companies nity schools servicing the SML, pipeline the royalties are distributed to the Pro- to spend up to 2% of gross turnover and Basamuk communities, support for vincial Government and 20% to the land- annually on public infrastructure projects the Rai Coast High School, a new high owners in the SML, although this is within or near the project area. Once school to service the Kurumbukari/ subject to negotiation. The owners of each project is completed, the company Usino–Walium area and curriculum and the limestone quarry will also receive receives a tax credit equal to the amount facilities enhancements. royalties. The values for metals produc- spent. This could represent K64 million tion and price adopted by the Ramu over the life of the project.

Ramu Nickel Project—Environmental Plan 37 Executive Summary

Health At Kurumbukari, the mining of approxi- ment preference for local people (see As with education, the project will add mately 1 ha of land per week may be Section 7.2.4 to follow). to the demand for health services. It will offset to some extent by the opportunity Forestry also provide the means for meeting new to revegetate mined areas with commer- Timber felled from the mainly forested demand and for remedying existing de- cial plants such as coffee, cocoa, vegeta- land of the Kurumbukari Plateau will be ficiencies, both directly in the form of bles, trees, and possibly pasture for available for salvage, either via a saw- new facilities, and indirectly, by means smallholder cattle. mill for local use or to supply round logs of improved diet, sanitation, communi- At Basamuk, roughly 150 ha of land for export or pulping. There will also be cations and access. will taken by the refinery complex, ac- opportunities for replanting the mined If no upgrading is carried out, existing commodation area and quarry. areas with commercially useful tree spe- facilities will be overloaded by project- cies. In all cases, compensation will be paid. induced demand. These facilities include Fisheries the Daunagari Aid Post, the Walium In addition, the project will provide a The project will increase the demand for Health Centre on the highway between market for produce, and cash from roy- fresh fish. It will also generate capital Lae and Madang, the aid posts at Usino alties and compensation will enable capi- for investment in new boats and gear and Ganglau and the clinic at the Rai tal investment in agricultural production. and improve market access. Coast High School. The SEIS recom- On the negative side, paid jobs and the mends support for a number of health purchasing power of cash replace—and 7.2.4 Employment facilities. hence must to some extent weaken—the The project will be the largest employer subsistence economy. In particular, men in the province during the construction Social health problems of alcoholism and become unavailable for their previous phase, and the second largest (after Ramu sexually transmitted diseases tend to ac- tasks, the burden for which falls mostly Sugar) during operations. company improvements in material on the women. wealth in Papua New Guinea, and are to Construction be expected. However, the evidence of In-migration to project areas is expected The construction workforce will peak at existing large mines in Papua New to take place in pursuit of employment, approximately 2,500 (Figure 26). Guinea is that overall, projects like Ramu business opportunities and inter-mar- RNJV and its contractors will employ as can make an enormous positive contri- riage. To the extent that these objectives many local people as possible during bution to community health. are not met, in-migrants will strain the construction, but are constrained by the physical infrastructure and economic 7.2.3 Primary Resources demands of this phase for short-term base of the project areas, unless they Subsistence Land skilled labour. Many of the construction return to their place of origin. The land requirement for the proposed jobs will therefore be filled by people Ramu Nickel Project is estimated to be RNJV intends to mitigate these effects from elsewhere in Papua New Guinea 1,585 ha (Table 13). to some extent, for example by employ- and expatriates on a fly-in, fly-out ros- ter. Operations Table 13 Project land requirements The project will provide permanent employment for some 1,045 workers (Ta- Component Area Ha ble 14). The workforce will be structured Kurumbukari mine site Proposed mine pits and haul roads over 1,000 to satisfy the operating requirements of 20 years the project. Employment will also be Beneficiation plant site 12 available through contractors in fields Mine camp 8 such as catering, janitorial services, se- Mine/camp service/access road 2 curity, transport and road and camp main- Mine access road Kurumbukari mine camp to Ramu bridge1 37 tenance. Slurry pipeline Kurumbukari mine site to Ramu bridge 14 Recruitment preference will be given to Ato Junction to refinery 169 local people from project impact areas, Combined road/pipeline Ramu bridge to Usino Junction 51 followed in order by persons from within Usino Junction to Ato (existing highway) 132 Madang Province, PNG citizens from Basamuk refinery Refinery/port areas 79 other provinces and non-citizens. Accommodation area 48 It is planned to reduce the proportion of Limestone quarry 25 expatriate workers from about 20% to Refinery/camp access road 4 about 12% over the life of the project. Limestone quarry access road 4 Some employment classifications, gen- Total area 1,585 erally of an unskilled or semi-skilled na- 1 Ramu bridge is the meeting point of the access road and the slurry pipeline, just before the Ramu River.

38 Ramu Nickel Project—Environmental Plan Executive Summary

Table 14 Composition of operations workforce

Area Expatriate Senior National Staff National National Local Award Total Staff National Staff Tradesmen Award Skilled Unskilled Mine Mine operations 7 17 3 0 120 12 159 Beneficiation plant 8 9 6 0 20 20 63 Plant maintenance 14 4 2 29 20 4 73 Mine admin. support 2 11 24 0 2 0 39 Total mine 31 41 35 29 162 36 334 Refinery Operations 80 14 32 0 85 88 299 Engineering 50 4 8 43 63 8 176 Administration 30 14 21 8 45 4 122 Operations support Human resources 6 6 12 0 0 0 24 Environment 3 2 10 0 0 2 17 Marketing 4 0 1 0 6 0 11 Community affairs 8 26 24 0 0 4 62 Total refinery 181 66 108 51 199 106 711 Overall total 212 107 143 80 361 142 1,045 ture, will be reserved exclusively for Trained personnel will be introduced to der for them to participate in the oppor- PNG nationals. the construction workforce through con- tunities generated by the project, where: tractors. Carpentry, metalwork and com- The mining and refining operations will • The business contributes to the com- puting courses will be available and operate continuously, 24 h/d, 365 d/a. mercial implementation of the temporary classrooms and a training project. Training and Localisation workshop will be built. A Training and Localisation Plan has • The business will be able to deliver Business Development been prepared for submission to the goods and/or services on a competi- RNJV will support the establishment of Department of Labour for approval be- tive basis, including rates and deliv- new businesses, and assist existing en- fore project implementation. The plan ery. terprises in the Madang Province, in or- identifies all positions to be filled for project operation and nominates positions expected to be filled by expatriates 3500 and nationals. The plan will outline training and development programs to progressively localise, wherever possible, 3000 the expatriate positions. 2500 Training initiatives during project operations will include secondary school sponsorships, graduate sponsorships, 2000 trades apprenticeships, administrative and secretarial training and on-the-job 1500 operator, safety and environmental train- Number of people ing. In order to maximise local partici- 1000 pation in the construction workforce, a training program will be conducted during pre-construction and construction. 500 This program will teach local people safety and the fundamentals of hand tool 0 use. 5 6 7 8 9 10111213141516171819202122232425 26 27 28 29 30 Months Figure 26 Construction workforce profile

Ramu Nickel Project—Environmental Plan 39 Executive Summary

• The business will be sustainable with- Table 15 Potential contracting opportunities for local businesses according to out subsidy and may span the con- location struction phase, the operational phase or both. Kurumbukari Pipeline Basamuk Bush clearance Truck/bus transport Barging and loading • A business seeking assistance from Security Bush clearing and security Boat/bus services for workers RNJV must be motivated by, and Catering Road construction and Light industrial, to service the operate under, accepted commercial maintenance processing plant principles. Janitorial Road construction Sea transport Security RNJV may offer support or assistance to and maintenance Dry hire of equipment Catering a local business enterprise but it will not Janitorial offer to subsidise the operations of any Road construction and maintenance business venture. A business development plan has been prepared (Appendix 25) which provides an annual salary and wage bill, which is 7.2.5 Madang for the establishment of an RNJV Busi- estimated to be some K17 million. Madang can expect strong growth in the retail and wholesale sector, in the resi- ness Development Office, and clan-based Many components of the project could dential, commercial and industrial prop- landowner companies under an umbrella be sub-contracted to local companies ei- erty market, in plant, transport and management services company. The pro- ther operating independently, or in joint associated service industries, and in the visional business development structure venture with established PNG-based financial and commercial services mar- is shown in Figure 27. companies. Examples of contracting op- ket. The project will become the most sig- portunities are summarised by location nificant business in Madang Province. It in Table 15. Other local contracting op- An expanded population will signifi- will generate unprecedented opportuni- portunities could include housing construc- cantly increase the demands on the ties for existing contractors and suppli- tion, vehicle and equipment maintenance town’s facilities and infrastructure. Ma- ers, both through project purchasing and and temporary earthworks. dang has no reticulated sewerage, roads are poor, traffic is congested and there is

Management RNJV Business services company Development Office

Kurumbukari Pipeline Basamuk Umbrella Company Umbrella Company Umbrella Company

Clan companies Clan companies ¥ Maure ¥ Imaruba ¥ Nokomboi ¥ Pagazi

Inland clan companies Coastal clan companies ¥ Usino ¥ Wagia ¥ Iguru ¥ Bogati ¥ Ono ¥ Siroi ¥ Naru

Figure 27 Provisional Ramu Nickel landowner business development structure

40 Ramu Nickel Project—Environmental Plan Executive Summary no reticulated water supply in many ar- Table 16 Archaeological and cultural sites likely to be affected by the project eas. Social problems of crime and pros- titution are also increasing. Site No. Local Name Type of Site Significance Kurumbukari The increased demands induced by the project will allow the Madang Urban 1 Ikrungu Mythical Low LLG to present a strong case to the Na- 2 Kurumbukari (exploration Archaeological/settlement Low tional Government for additional finan- camp) cial and technical support. This case 3 Miayi Settlement/burial High could be based on a plan to address the 4 Wianive Archaeological High changing future needs of the town, and a Basamuk method of financing its implementation. 5 Basamuk Archaeological High 7.3 Impacts on Archaeology and 6 Basamuk Burial High Material Culture 7 Soup (Basamuk) Sacred High Traditional artefacts and all archaeologi- 8 Ganabaing (Basamuk) Mythical/historical Medium cal and cultural sites, including burial 9 Guang-Busunou Archaeological/settlement High and settlement sites, are protected under 10 Sarang-Guau Archaeological/burial High PNG law. 11 Ibab-Guang Archaeological/settlement High 1 Identified sites of cultural and archaeo- 12 Imod Hill Sacred Not known logical significance that may be affected 1 Site identified by Appendix 14 and no significance rating was provided. by the project are summarised in Ta- ble 16. Sites 2, 4, 5, 6 and 8 and possibly Whether or not the economic and social to the public sector of more than K200 others will be unavoidably lost; the re- impacts of the project are ultimately posi- million over 20 years should bring large mainder can be protected with due care. tive or negative will depend on how the and widespread socio-economic benefits To this end, RNJV will maintain com- project’s benefit streams are managed. throughout Madang Province. However, munication with the local owners and Elsewhere in Papua New Guinea, this for this to occur in practice requires a the Trustees of the PNG National Mu- process has been problematic, and deliv- framework that reflects the lessons to be seum and Art Gallery. ery has often fallen short of expecta- learned from previous projects: in par- 7.4 Implications for Local tions. ticular, local community, government and company interests and concerns need Communities These issues are being addressed by the to be voiced, discussed and effectively The Ramu Nickel Project will greatly Forum process (which is co-ordinated acted upon within a set of agreed and improve the standard of living of local by DMR), to which RNJV is committed. communities, particularly in the medium enforced principles of equity and ac- to long term. At Kurumbukari especially, From the project’s perspective, the man- countability. this change will occur from a low base agement focus for social and economic of high infant mortality, low Tok Pisin development should be on the basic is- 8. Environmental literacy, and poor access to health and sues of revenue from compensation and Management and education services. royalty, social services, jobs, training and Monitoring business development. This focus mani- The proposed environmental manage- The main potential negative social and festly reflects the explicit priorities of ment and monitoring program includes economic impacts of the project are those villagers for material advancement and the following steps: associated with the development of a access to social services, but there are large-scale mining project in a remote two areas in which, historically in Papua • Implementation of management com- rural area: a weakened subsistence pro- New Guinea, the satisfactory delivery of mitments and compensation arrange- duction base, increased domestic and these benefits has been impeded: ments. agricultural workloads for women, new health problems related to diet, alcohol • The tendency for cash benefits to be • Assembling a baseline range of vari- abuse and sexually transmitted diseases, handled and spent in an inequitable, ables to define the pre-mining condi- problems associated with in-migration, opaque and non-accountable way. tions such as variability in stream water quality (Plates 15 and 16). and an increase in economic inequalities • Shortcomings in the delivery of gov- with the attendant potential for conflict. ernment services, and the mispercep- • Monitoring of construction effects. tion that it is a straightforward matter At the same time, the significant overall • Following construction, performing for the company to fill the gap: improvements in community health that an intensive short-term study to vali- ‘kampani mas givim’. have occurred at other major mines in date the predictions of the effects of Papua New Guinea are expected to oc- If these recurring, historic problems can the project, particularly compliance cur as a result of the Ramu Nickel Project. be remedied, then the project’s revenues with water quality criteria at mixing zone boundaries.

Ramu Nickel Project—Environmental Plan 41 Executive Summary

Plate 15 Banap Creek at low flow

Plate 16 Banap Creek at high flow

42 Ramu Nickel Project—Environmental Plan Executive Summary

• Monitoring operations for regulatory Appendix 8 (Volume C) 1998. Deep Appendix 17 (Volume C) 1998. Ter- compliance and to identify any un- Sea Tailing Placement Engineering. restrial Vertebrate Fauna of the Ramu foreseen effects. A report prepared by Hay and Com- Nickel Project. November. A report pany Consultants Inc. for NSR Envi- prepared by Francis Crome and • Reporting to local communities and ronmental Consultants Pty Ltd, Stephen Richards, Francis Crome Pty to government. Hawthorn East, Victoria. Ltd for NSR Environmental Consult- • Consultation with local communities ants Pty Ltd, Hawthorn East, Victo- Appendix 9 (Volume C) 1998. Physi- routinely and as issues arise. ria. cal Properties of Tailing. November. 9. References A report prepared by Ocean Science Appendix 18 (Volume C) 1998. Ar- Institute for NSR Environmental chaeology and Material Culture 9.1 Ramu Environmental Plan Consultants Pty Ltd, Hawthorn East, Study of the Ramu Nickel Project. Appendices Victoria. July. A report prepared by Alois Appendix 1 (Volume C) 1998. Bathym- Kuaso, Department of Prehistory, Appendix 10 (Volume C) 1998. The etry and Physical Oceanography. No- Papua New Guinea National Museum Numerical Model of Deep Sea Tail- vember. A report prepared by NSR and Art Gallery for NSR Environ- ings Placement. November. A report Environmental Consultants Pty Ltd mental Consultants Pty Ltd, Haw- prepared by Ocean Science Institute for Highlands Pacific Limited. thorn East, Victoria. for NSR Environmental Consultants Appendix 2 (Volume C) 1998. Cur- Pty Ltd, Hawthorn East, Victoria. Appendix 19 (Volume C) 1998. Ramu rents and water properties off north- Nickel Project Feasibility Study. Appendix 11 (Volume C) 1998. Veg- ern PNG as they may relate to Sediment Study: Management Plan etation Survey. A report prepared by development in Astrolabe Bay and and Downstream Impacts. October. George Vatasan for NSR Environ- off the Rai Coast. July. A report pre- A report prepared by Klohn-Crippen mental Consultants Pty Ltd, Haw- pared by George Cresswell, CSIRO Consultants Ltd for Highlands Pa- thorn East, Victoria. Marine Research, Hobart, Tasmania cific Limited. for NSR Environmental Consultants Appendix 12 (Volume C) 1998. Aquatic Appendix 20 (Volume C) 1998. As- Pty Ltd, Hawthorn East, Victoria. Biology. September. A report pre- sessment of Limitations to Rehabili- pared by Ross Smith and Adrian Appendix 3 (Volume C) 1998. Marine tation, Kurumbukari Mine Site, Flynn, R & D Environmental Pty Ltd Biological Communities. July. A re- Papua New Guinea. June. A report for NSR Environmental Consultants port prepared by NSR Environmen- prepared by Natural Resource As- Pty Ltd, Hawthorn East, Victoria. tal Consultants Pty Ltd for Highlands sessments Pty Ltd for NSR Environ- Pacific Limited. Appendix 13 (Volume C) 1998. Water mental Consultants Pty Ltd, Quality and Sediment Chemistry. No- Hawthorn East, Victoria. Appendix 4 (Volume C) 1998. Fresh- vember. A report prepared by NSR water Impacts. November. A report Appendix 21 (Volume C) 1998. Air Environmental Consultants Pty Ltd prepared by NSR Environmental Quality Assessment. December. A re- for Highlands Pacific Limited. Consultants Pty Ltd for Highlands port prepared by Holmes Air Sci- Pacific Limited. Appendix 14 (Volume C) 1998. Re- ences for NSR Environmental source Use Surveys. September. A Consultants Pty Ltd, Hawthorn East, Appendix 5 (Volume C) 1998. Marine report prepared by Noki Makap, Victoria. Impacts. December. A report pre- NOMAK Consultancy Services Ltd pared by NSR Environmental Con- Appendix 22 (Volume C) 1998. Socio- for NSR Environmental Consultants sultants Pty Ltd for Highlands Pacific economic Impact Study (SEIS). May. Pty Ltd, Hawthorn East, Victoria. Limited. A report prepared by Jonathon Hamp- Appendix 15 (Volume C) 1998. Ocean shire, Gary Simpson and Noki Appendix 6 (Volume C) 1998. Con- Floor Sediment. October. A report Makap, Project Design and Manage- ceptual Study of On-Land Tailings prepared by NSR Environmental ment Pty Ltd for NSR Environmen- Disposal. October. A report prepared Consultants Pty Ltd for Highlands tal Consultants Pty Ltd, Hawthorn by Klohn-Crippen Consultants Ltd Pacific Limited. East, Victoria. for NSR Environmental Consultants Pty Ltd, Hawthorn East, Victoria. Appendix 16 (Volume C) 1998. Chemi- Appendix 23 (Volume C) 1998. Veg- cal and Toxicological Characterisa- etation and fauna of the Basamuk Appendix 7 (Volume C) 1998. Hydrol- tion of Tailing. November. A report Bay refinery site. July. A report pre- ogy and Meteorology. A report pre- prepared by NSR Environmental pared by Francis Crome, Francis pared by NSR Environmental Consultants Pty Ltd for Highlands Crome Pty Ltd for NSR Environ- Consultants Pty Ltd for Highlands Pacific Limited. mental Consultants Pty Ltd, Haw- Pacific Limited. thorn East, Victoria.

Ramu Nickel Project—Environmental Plan 43 Executive Summary

Appendix 24 (Volume C) 1998. Deep- port for the Club of Rome’s Project Legislation Slope Fisheries Survey, off the Rai on the Predicament of Mankind. Pan Environmental Planning Act 1978 Coast, Papua New Guinea. Novem- Books, London. (Chapter 370) ber. A report prepared by NSR Envi- Milliman, J.K. 1995. Sediment dis- Water Resources Act 1982 (Chapter 205) ronmental Consultants Pty Ltd for charge to the ocean from small moun- Highlands Pacific Limited. Water Resources Regulations 1981 tainous rivers: The New Guinea (Schedule 4) Appendix 25 (Volume C) 1998. Ramu example. Geo-Marine Letters (1995), Nickel Project Local Business De- 15: 127–33. Conventions and Treaties velopment Policy. October. A report Convention Concerning the Protection NSR 1997a. Ramu Nickel Project En- prepared by Ramu Nickel Joint Ven- of World Cultural Heritage and Natural vironmental Plan Inception Report. ture. Heritage 1972 July. A report prepared by NSR En- 9.2 References Cited vironmental Consultants Pty Ltd for Convention on Biological Diversity 1992 ANZECC 1992. Water Quality Guide- Highlands Pacific Limited. Convention on International Trade in lines for Fresh and Marine Waters. NSR 1997b. Misima Mine, Papua New Endangered Species of Wild Flora and November. Australian and New Zea- Guinea: Review of Submarine Tail- Fauna (CITES) 1993 land Environment and Conservation ing Disposal. Report CR 206/21. NSR Council. Convention on the Conservation of Mi- Environmental Consultants Pty Ltd, gratory Species of Wild Animals 1979 Beca Gure (PNG) Pty Ltd 1985. Earth- Hawthorn East, Victoria. quake engineering for bridges in Pa- Convention on the Prevention of Marine PNG 1998. Office of Environment and pua New Guinea. A report prepared Pollution by Dumping of Wastes and Conservation. May. Proposed Envi- for Papua New Guinea Department Other Matter 1992 ronment Protection Policy - Waters of Works. of PNG. International Plant Protection Conven- Ellis, D. 1989. Environments at risk. tion 1951 PNGS 1982. PNG Standard 1001-1982: Case histories of impact assessment. Part 4 - Earthquake loadings. Na- Plant Protection Agreement for South- Chapter 4, Mining - Island Copper tional Standards Council of Papua east Asia and the Pacific Region 1956 (Canada) pp. 70–108. Springer- New Guinea. Verlag, New York. RAMSAR Convention on Wetlands Es- Ripper, I.D. and Letz, H. 1993. Return pecially as Waterfowl Habitat 1971 Fluor Daniel and Simons 1998. Draft periods and probabilities of occur- Feasibility Study Report (8 vols). UN Framework Convention on Climate rence of large earthquakes in Papua July. A report prepared by Fluor Dan- Change 1992 New Guinea. Geological Survey Re- iel-Simons Joint Venture for High- port 93/1. Department of Mining and GIS Database Sources lands Pacific Group. Petroleum, Papua New Guinea. ADC World Map. Base map informa- Govett, G.J.S. and Govett, M.H. (eds) tion from American Digital Cartography USEPA 1986. Quality criteria for wa- 1974. Developments in Economic Inc. ter. EPA 440/5-86-001. United States Geology 3, World Mineral Supplies Environmental Protection Agency, AGSO 1998 Assessment and Perspective. Elsevier Office of Water, Regulations and Scientific Publishing Company. Standards Standards, Washington. PNGS 1982. PNG Standard 1001-1982: HGP 1996. Ramu Prefeasibility Study. USEPA 1989. Ambient water quality Part 4 - Earthquake loadings. National July. A report prepared by Highlands criteria for ammonia (saltwater). Standards Council of PNG Gold Properties Pty Limited on be- April. EPA 440/5-88-004. United half of the Ramu Joint Venture. States Environment Protection 10. Study Team Malthus, T. R. 1798. An Essay on the Agency, Office of Water, Regula- Highlands Pacific Limited appointed Principle of Population. tions and Standards, Washington. NSR Environmental Consultants Pty Ltd McCave, I.N. 1972. Transport and es- USEPA 1995. Interim Final Rule. Wa- to prepare this Environmental Plan. NSR cape of fine-grained sediment from ter Quality Standards. Establishment engaged a number of specialist subcon- shelf areas. In: Swift, D.J.P., Duane, of Numeric Criteria for Priority Toxic sultants. Their contributions, and those D.B. and Pilkey, O.H. (eds) Shelf Pollutants - Revisions of Metals Cri- of Highlands Pacific Limited and High- sediment transport: process and pat- teria. Federal Register 40 CFR Part lands’s engineering consultants, are ac- tern, pp. 225–48. Hutchinson and 131. knowledged. Ross, Stroudsburg, P.A. World Bank 1995. Mining and Mill- 10.1 Highlands Pacific Limited Meadows, D. H., Meadows, D. L., ing–Open Pit. World Bank Environ- E. Anderson Randers, J. and Behrens, W. W. III ment, Health and Safety Guidelines. J. Blackley 1972. The Limits to Growth: a Re-

44 Ramu Nickel Project—Environmental Plan Executive Summary

S. Dalton P. Towler Ocean Science Institute (OSI) C. Jenkins E. Hills M. Wright Project Design and Management Pty P. Mason 10.3 Specialist Consultants Ltd (PDM) Australian Centre for Tropical S. Mellombo J. Hampshire Freshwater Research, James Cook M. Piamnock University of North Queensland G. Simpson S. Richards L. Queen R&D Environmental Pty Ltd CSIRO Division of Marine Research R. Smith R. Queen G. Cresswell Textonic Editorial Services T. Riley David Balloch & Associates C. Taylor M. Wilkes D. Balloch WA Marine Research Laboratories 10.2 NSR Environmental Department of Prehistory, Papua New S. Newman Consultants Pty Ltd Guinea National Museum and Art 10.4 Engineering Consultants J. Bant Gallery Beca Simons NZ A. Kuaso H. Blaszkiewicz A. Peacock P. Swadling M. Cleland J. Pezaro Ecowise M. Cramer P. Smythe G. Newton C. Coyne R. Steel J. Skinner L. David P. Wells-Green Francis Crome Pty Ltd R. Dehnert F. Crome Fluor Daniel J. Boland A. Flynn G.S. Vatasan E. Magulo J. Eather K. Friday J. Simaga J. Kelly T. Halliday G. Vatasan G. Morgan C. Hardy Hay & Company Consultants Inc. P. Tyrer I. Hargreaves (HayCo) J. Walker B. Hughes R. Gardener H. A. Simons M. Jones J. Stronach A. Kozak S. Jones Holmes Air Sciences Klohn-Crippen Consultants Limited N. Holmes M. Leake E. Buschiazo S. Lakmaker N. Leake A. Markham Museum of Victoria S. Mackay M. Thompson J. Taylor C. Monahan Tennent Isokangas Pty Ltd R. Wilson T. Isokangas J. O’Neil Natural Resource Assessments Pty Ltd M. Rose D. Oram (NRA) M. Evans H. Tennent B. Sands NOMAK Consultancy Services B. White A. Sharp-Paul N. Makap

Ramu Nickel Project—Environmental Plan 45 Executive Summary

46 Ramu Nickel Project—Environmental Plan Executive Summary

Sotpela Ripot

Toksave Long Projek (HPL) em i mama kampani bilong Ramu • Kliarim bus antap long graun, dispela Nickel Ltd, na bai go pas long lukautim mas go pas. Wanpela nupela maining projek bai na menesim olgeta wok bilong dispela kamap insait long liklik ples oli kolim • Digim na rausim graun na ston antap Joint Venture namel long dispela tupela long Kurumbukari, insait long Madang karamapim ol ston karim Nikel na kampani em oli kolim long Ramu Nickel Provins long Papua New Guinea (PNG). Kobolt. Joint Venture (RNJV). Dispela ples em i stap arere long wara • Wok maining we ol stat long Ramu, samting olsem 75 kilomita longwe Ol bikpela kain wok maining olsem, save kamautim ol ston i karim Nikel na long Madang taun, long hap igo long kamapim planti sensis o bagarap insait Kobolt. sautwes (Mep 11). Dispela wok maining long envaironmen. Olsem na kampani i bai kamuatim tupela samting long graun wokim olgeta envaironmen stadi na • Stretim gut na planim gras na diwai em oli kolim long Nikel na Kobolt. kamapim dispela Envaironmen Plen (EP) antap long ol eria kampani i pinis Kampani bai kamautim ol ston na graun ripot igo long Gavman bilong PNG, long wok maining long en. karim dispela Nikel na Kobolt na behain behainim seksen 4 (6) bilong lo oli kolim Kliarim Bus bai katim dispela igo liklik tru pastaim Environmental Planning Act, 1978 Kampani bai nonap long mekim nating long Kurumbukari. Behain long dispela, (Chapter 370). nobaut long rausim ol bus antap long ol bai miksim wantaim wara na pamim maining eria. Ol bai lukaut gut long katim igo kamap long Basamuk, long Rai Kos Lukluk Insait Long Projek ol bus inap long mak bilong em, na insait insait long wanpela paiplain (Mep 7). long eria oli laik wok long en long Longpela dispela paiplain bai winim moa Wok Maining wanwan taim. Pastaim tru, olsem wan long 134 kilomita. Kampani bai mekim Kurumbukari maining eria em stap antap yia bifo maining stat, ol bai katim na ol kainkain wok insait long wanpela long wanpela plet eria, namel long wara rausim ol gutpela bikpela diwai bilong bikpela fektori long Basamuk long Ramu long not-is sait na ol bikpela wokim timba. Behain long dispela, ol rausim Nikel na Kobolt stap pas long ol maunten bilong Bismak long hap igo bai rausim olgeta bus na gras bilong ston na graun ikam long maining eria. long sautwes. rereim graun bilong wok maining. Olgeta Olgeta wanwan yia, kampani bai rausim Kampani i wokim plen bilong brukim bus, lif, diwai han na gras, ol bai rausim samting olsem 32, 800 tan Nikel na 3,200 dispela maining eria igo long fopela hap na putim arere long wanpela eria, o katim tan Kobolt na salim dispela igo long ol (Mep 9) bilong wok maining. Dispela igo liklik bilong putim igo bek long graun wol maket ausait long PNG. fopela eria bai oli kolim long Ramu East, o yusim bilong pasim rot wara ron long Long ol fisibiliti stadi kampani i bin Ramu Central, Ramu Central Extended en bilong stopim ol graun bruk igo insait wokim bilong painim aut sais bilong na Ramu West. Wok maining insait long long ol wara. Ol bai rausim graun antap maining na kos bilong kamapim projek, dispela fopela hap eria bai go olsem: inogat Nikel na Kobolt long en, na hipim i soim olsem dispela projek bai ron inap • Ramu East - Bai kirap insait long yia o bungim arere bilong ol ken yusim winim moa long 20 yia olgeta. Tasol, oli 1 igo yia 4. behain taim bilong stretim na mekim ting dispela eria igat inap risosis bilong kamap gut ol eria kampani i pinis long surikim laif bilong dispela projek igo • Ramu Central - Bai kirap insait long wok maining long en. antap long 35 na 40 yia olgeta. yia 5 igo yia 11. Graun Na Ston Stap Antap Tupela kampani bai bung wantaim long • Ramu Central Extended - Bai kirap Ol graun wantaim ston sindaun antap kamapim Joint Venture long wokim long yia 9 igo yia 14. long ol ston i karim Nikel na Kobolt, oli kamap dispela projek. Wanpela long • Ramu West - Bai kirap insait long save kolim ovabuden (overburden). dispela tupela kampani em Ramu Nickel yia 15 igo yia 20. Behain long taim oli pinis long rausim Ltd husat bai holim 65% sea na narapela ol diwai na bus antap long ol maining kampani em Nord Australex husat bai Pasin bilong kirapim wok maining insait eria, kampani bai stat long digim aut holim 35% sea insait long dispela projek. long ol dispela fopela eria bai behainim 1 Bikpela kampani Highlands Pacific Ltd fopela step: Bilong lukluk long olgeta piksa mep, plis yu mas lukim insait long narapela Sotpela Ripot.

Ramu Nickel Project—Environmental Plan 47 Executive Summary olgeta ovabuden, sindaun antap karamapim • Kamapim strongpela na bikpela bush insait long nambawan tenpela yia bilong ston i karim Nikel na Kobolt. Mak o sais karamap. wok maining. Insait long dispela painim bilong dispela ovabuden i bikpela tumas aut, kampani bai stretim gut plen bilong Kontrolim Graun Bruk Long Taim long sampela eria na inogat tru long kontrolim rein wara na graun bruk long Bilong Rein sampela hap. Insait long olgeta wanwan laif bilong dispela maining projek. Long taim bilong bikpela rein, planti yia, sais bilong ovabuden kampani bai graun bai bruk na igo insait long het Prosesim Or Bilong Rausim Nikel Na kamautim bai winim moa long wan bilong ol wara na bagarapim ol dispela Kobolt milion tan. Insait long maining plen, wara i save ron igo aut long maining Rot bilong prosesim ol or bilong rausim kampani bai stat wok maining behain eria. Ol kain graun i save stap long Nikel na Kobolt bai behainim ol dispela tasol long oli rausim olgeta ovabuden. Kurumbukari maining eria ino strong step: Oli nonap larim graun stap igo longpela tumas na isi long rein i wasim ol na rein taim long wanem, nogut rein wara i • Ol bai brukim ol bikpela sais ston wara karim igo. wasim na rausim sampela Nikel na nabaut igo liklik. Ol wesan i gat Kobolt na igo wes nating na lus. Olgeta RNJV igat plen pinis long traim na wanpela narapela samting ol kolim ovabuden bai go stret long eria maining kontrolim dispela kain bagarap long kromait bai ol rausim na storim antap i pinis long en, bilong halivim stretim graun na wara mas inoken kamap. RNJV long maining eria yet. gut graun bilong planim grass na diwai igat tupela rot o wei insait long dispela • Kampani bai miksim wesan i karim bilong kamapim gut ples ken. plen bilong kontrolim mak bilong graun Nikel na Kobolt wantaim wara na bruk long bikpela rein taim. Wanpela Wok Maining Long Or pamim dispela igo long Basamuk wei kampani bai traim long pasim ol Mak bilong maining long ol ston i karim insait long wanpela longpela paiplain, graun bruk klostu yet long maining eria Nikel na Kobolt oli kolim or (ore), bai longpela bilong en bai winim moa na stopim ol long inoken go insait long stap long 4.6 milion tan long olgeta long 134 kilomita. Samting olsem het bilong ol wara ron igo aut long wanwan yia. Dispela bai min olsem eria 430 tan or miks wantaim wara igo maining eria na bagarapim ol. maining bai karamapim long olgeta long Basamuk faktori insait long wanwan yia bai winim moa long 48 Narapela rot em kampani laik yusim dispela paiplain long olgeta wanwan hekta. Maining bai stat long antap na igo sampela bikpela wei bilong pasim graun haua. Mak bilong Nikel na Kobolt daun, na ol buldosa nabaut bai digim na bruk insait long maining eria. RNJV bai stap miks wantaim or na wara istap lodim ol or igo long ol trak bilong karim konstraktim na yusim ol kain banis raun olsem 1.12% Nikel na 0.11% Kobolt. igo long masin bilong katim na miksim wara we rein wara insait long ol maining • Kampani bai yusim sampela kain wantaim wara. eria bai go insait na sindaun. Taim dispela marasin insait long faktori bilong rein wara igo insait na sindaun insait Stretim Gut Eria Maining I Pinis traim na mekim isi wok long rausim long dispela raun wara, olgeta graun stap Long En Nikel na Kobolt istap miks wantaim miks wantaim rein wara bai pundaun Kampani gat plen bilong stretim na graun na ston insait long or. insait long flo bilong banis raun wara. mekim kamap gut olgeta eria wok Wara antap tasol bai lusim dispela banis • Behain long step 3 antap, kampani maining i pinis long en. Dispela wok bai raun wara na igo aut na bungim ol bikpela bai yusim narapela rot ken bilong stat quik taim tasol behain long wok wara. Dispela wei inap long stopim rausim Nikel na Kobolt. Dispela kain maining i pinis insait long wanpela eria. olgeta graun bruk antap long maining faktori kampani bai wokim long Piksa Mep 10 i soim plen bilong dispela eria, na pasim rot bilong ol wara antap Basamuk, em i kain faktori husat i wok, na i karamapim ol dispela samting: long Kurumbukari eria long kisim gat save long dispela kain wok long • Ol bai lainim olgeta bikpela ston long bikpela bagarap long en. prosesim na rausim Nikel na Kobolt tambolo arere long mainten sait stap insait long or. Dispela rot bilong kontrolim rein wara bilong larim isi ron bilong wara na na graun bruk RNJV bai yusim long stat Ol kain marasin ol i kolim asid kampani givim sapot long beis bilong en long bilong wok maining igo inap long tenpela bai yusim insait long faktori bilong ol eria maining i pinis long en. yia. RNJV bai klinim na rausim ol graun halivim rausim Nikel na Kobolt, bai oli • Ol ovabuden i kam long maining eria igo daun na sindaun long flo bilong banis wokim yet long faktori long Basamuk. bai ol i yusim bilong karamapim raun wara olgeta taim, nogut graun bai Ol bai yusim wanpela kain marasin oli olgeta eria maining i pinis long en, pulap insait na bagarapim wok bilong kolim salfa bilong mekim dispela asid ol na levelim gut. en. RNJV bai yusim dispela graun ol bai yusim long rausim Nikel na Kobolt. rausim insait long ol banis raun wara • Antap long dispela ovabuden kampani Ol tu bai yusim wanpela samting ol i long putim igo miks wantaim or ken bai spredim nupela blekpela graun. kolim laim bilong halivim wok long bilong rausim Nikel na Kobolt. prosesim or insait long faktori. Kampani • Planim ol grass na diwai bilong Kampani bai lukluk na stadi gut long bai wokim dispela laim long Basamuk. halivim strougim gut dispela nupela hau dispela kain pasin bilong pasim graun Ol bai digim na rausim ol ston oli kolim graun. bruk insait long banis raun wara bai wok laimston, stap klosta long faktori eria na

48 Ramu Nickel Project—Environmental Plan Executive Summary wokim kamap laim long en. Faktori bai bagarapim rif, pis na ol komuniti husat long PNG. Sapos kain wokman projek i nidim samting olsem 1 - 2 milion tan istap arere long nambis klostu long Ba- gat nid long en ino stap long PNG, last laim long olgeta wanwan yia long laif samuk. sans long en kampani bai lukluk ausait bilong projek. Ples we ol bai digim long PNG long ol arapela kantri bilong Ol Sapot Wok Bilong Projek dispela laimston oli kolim kwari, bai stap painim ol dispela wokman. Projek bai nidim planti ol sapot samting samting olsem 3 kilomita longwe long bilong kirapim ol wok. Ol bikpela Long stat long wok maining, namba faktori long Basamuk. samting projek i nidim i stap olsem: bilong ol wokman i kam long arapela Pasin Bilong Rausim Teiling kantri bai stap samting olsem 20% long • Bai gat bikpela nid bilong wanpela Pipia das na wesan kamaut long faktori ol lain wokman. Dispela mak bai igo wof o bris na ol sapot samting klostu behain long oli rausim Nikel na Kobolt, daun inap long 12% insait long laif bilong long Basamuk bilong bringim ikam em oli kolim long teiling (tailing). Faktori projek. ol samting olsem disel, bensin na ol long Basamuk bai kamapim samting arapela ikwipmen. Na tu, Nikel na olsem 5 milion tan teiling long olgeta Ol Bagarap Na Rot Bilong Kobolt ol i wokim kamap long faktori wanwan yia. Insait long laif bilong Pasim Ol bai lusim Basamuk long sip. dispela projek, moa long 100 milion tan Bagarap Long Graun teiling bai kamaut long Basamuk faktori. • Planti ol rot nau stap insait long Dispela maining projek bai nidim Dispela mak bai go antap sapos laif maining eria na long faktori eria ino samting olsem 1,585 hekta graun bilong bilong dispela maining projek i abrusim gutpela tumas. Kampani mas wokim kamapim olgeta wok. Long dispela nid 20 yia na go antap. kamap gut ol dispela rot na bris na tu long graun, toktok long kompensesin wokim sampela nupela bilong Bifo long kampani i tromoi teiling igo, long graun i wok long go het namel long halivim gut ron bilong dispela projek. ol bai pastaim tru miksim dispela teiling ol papa graun na kampani. Dispela wantaim laimston o laim, o tupela • Bai gat bikpela nid long kol wara na kompensesin agrimen bai karamapim ol wantaim. Dispela em i bilong halivim dispela mas i kam long ol wara ron toktok long yusim kastomari graun, ol long daunim pawa bilong ol marasin klostu long maining eria na long kain bagarap bai kamap long dispela nogut stap miks wantaim teiling na tu Basamuk faktori eria. graun, risosis bilong ol pipal, wara na halivim long rausim sampela long ol solwara. • Bilong wokim kamap olgeta dispela dispela marasin nogut bifo long ol i ken wok, nid bilong pawa em i wanpela Sampela long ol liklik ples we ol papa tromoi dispela teiling igo aut. Dispela bikpela samting. graun i stap long en long Kurumbukari pasin emi bilong pasim ol rot we ol bai stap insait stret long maining eria oli marasin nogut stap inait long teiling long • Narapela bikpela samting projek bai kolim SML. Kampani bai halivim ol bagarapim envaironmen taim kampani nidim long en em telefon na redio dispela lain man meri long muv igo long tromoi teiling igo. bilong salim toktok igo kam. Ol narapela hap bilong mekim rot bilong dispela samting mas stap sambai na Kampani bin spendim bikpela taim na maining igo het. Dispela nupela eria ol redi long maining projek ken yusim, moni long lukluk gut long painim aut dispela lain igo stap long en mas gat na ronim ol wok. sapos igutpela long pasim dispela teiling inap graun bilong mekim haus, gaten na antap long graun o tromoi igo daun long • Kampani bai wokim wanpela singel tu mas gat planti gutpela wara klostu na dip solwara insait long wanpela paiplain. kota long Kurumbukari bilong olgeta ol bikpela bus bilong painim ol wail apus Insait long dispela stadi painim aut, oli singel wokman. Ol marit lain bai na diwai. painim aut olsem gutpela rot tru bilong kisim akomodesin long Madang taun Taim kampani kliarim ol bikpela bus rausim dispela teiling em long putim na long Basamuk. insait long maining eria, planti wail laif dispela igo daun long dip solwara. • Mas i gat plen bilong kolektim, tritim bai kisim taim long painim ples bilong Kampani i laik dispela teiling mas lusim na tromoi ol pipia wes long toilet na sindaun, painim kai na slip. Na tu planti faktori long Basamuk insait long wanpela ol haus. Dispela tu em bikpela long ol risosis bilong bus bai kisim paiplain igo daun long nambis na behain samting bilong lukaut gut long en. bagarap. Mak bilong bikpela bus igo aut long dip solwara. Maus bilong wantaim diwai kampani bai rausim i stap Lain Wokman Na Meri dispela paiplain we teiling bai kamaut olsem 1,000 hekta. Insait long maining Long taim wok maining i stat long ron, long en, bai stap samting olsem 150 m eria stret, dispela em bikpela hevi tru, samting olsem 1,045 wokman na meri lusim antap igo daun long dip solwara. tasol insait long bikples Kurumbukari, bai stap insait long ol wok. Kampani bai Taim teiling i ron kamaut long maus bikpela bus stap ausait long wok maining givim nambawan sans igo long ol aspeles bilong dispela paiplain, em bai ron spit eria i karamapim bikpela eria tru. man meri bilong Kurumbukari na Ba- moa yet igo daun long solwara and samuk long kisim wok insait long projek. Eria bai kisim bagarap long wok maining sindaun tambolo long floa bilong solwara bai karamapim samting olsem 10% long samting olsem 1,000 m na 1,600 m, lusim Nambatu sans long en bai go long ol lain olgeta eria stap insait long bikples Ku- antap igo daun. Dispela teiling bai ino insait long Madang Provins na namba tri rumbukari. Dispela mak em i liklik tru, nap long kam bek antap long nambis na sans bai go long ol arapela man meri

Ramu Nickel Project—Environmental Plan 49 Executive Summary olsem na dispela bagarap ino bikpela na pipia wes long inoken igo insait long Bagarap Kamap Long Solwara samting tru. Insait long PNG, sais bilong het bilong ol wara na bagarapim ol. Klostu Long Nambis Long Basamuk ol eria stap ananit long dispela kain bus Ples bilong wokim kamap faktori long Tasol, sampela liklik bagarap bai kamap em i bikpela tru. Olsem na dispela em Basamuk em i stap klostu tasol long yet long ol wara long maining projek, ino bikpela wari tumas long bagarap nambis. Olsem na planti wok bai kamap long wanem em ino isi samting long kamap long hap liklik seksen long dispela long taim bilong konstraksen na dispela painim rot bilong pasim olgeta bagarap kain bus, insait long PNG. taim solwara arere long nambis long long noken kamap. Basamuk bai kamap doti. Ol graun bruk, Bilong kontrolim gut ol bagarap i kamap, Long taim ol bikpela wok i kirap, planti wesan na ston igo insait long ol wara ron kampani bai makim wan wan blok long long ol wara ron igo aut long Kurumbu- ikam daun bai karim ol igo na tromoi igo maining eria na taim em pinis maining kari maining eria bai karim planti graun insait long solwara. Dispela solwara bai long wanpela blok, em bai stratim gut na bai doti tru. Long taim bilong bikpela doti long taim oli konstraktim bris bilong dispela blok, na planim grass na diwai rein, dispela ol wara bai doti tru na kisim sip na wokim paiplain bilong karim bilong mekim kamap gut ples ken. bikpela bagarap long planti graun bruk teiling igo daun long dip solwara. Na tu Kampani bai givim bikpela tingting long igo daun long wara. Planti long ol fis kampani bai tromoi ol pipia ston na graun dispela wok, long wanem kampani laikim istap insait long wara nau bai kisim ol kamautim long ples bilong sanapim tru long sapotim ol wail laif na bus long bagarap na namba bilong ol bai igo daun faktori bai go insait long solwara. Kurumbukari mas kambek ken olsem tru. bifo. Insait long laif bilong maining, Mt Wanpela rot bilong pasim ol doti wara Kua eria bai stap na maining bai nonap Dispela ol wara bai stat long kamap klin long noken ron igo aut tumas, em long bagarapim dispela eria. Dispela bai givim ken taim kampani i wokim kamap pinis yusim wanpela samting ol kolim “Silt sans long ol wail laif long muv igo long ol banis raun wara na pasim ol graun curtain”. Dispela em i wanpela kain dispela hap na sindaun long en taim bruk insait long maining eria. Piksa Mep strongpela sel banis kampani bai yusim maining igo het. Maining bai inonap long 19 i soim mak bilong ol bagarap kamap bilong banisim maus bilong ol wara na igo insait long Mt Kua eria bilong larim long ol wara insait long 20 yia main laif. tu eria we ol tromoi ol pipia ston na ol wail laif ken stap na bikpela bus tu bai Behain long main laif i pinis, olgeta wara graun long en. Dispela rot bai pasim ol stap bilong ol papa graun ken yusim. bai stat long kamap klin ken na ol fis bai doti wara insait long liklik eria bilong kam bek ken. solwara na inonap bagarapim bikpela Long dispela taim long raitim kamap solwara klostu long nambis long Ba- dispela ripot, i luk olsem, ron bilong Wanpela bikpela bagarap tasol kampani samuk. Piksa Mep 21 i soim mak bilong paiplain lusim maining eria antap long i save long en bai kamap long dispela ol bagarap bai kamap long solwara na ol Kurumbukari igo long fektori eria long maining projek, em bai kamap long wara rif na pis stap insait long en. Basamuk, bai abrusim ol viles na inonap Banap Oxbow, we graun miks wantaim long mekim wanpela viles muv igo aut ston na wesan bai igo insait na pulamapin Ol rif stap klostu long maus bilong ol long narapela hap. Tasol, i luk olsem, dispela wara na planti ol samting nau wara na arere long ples ol bikpela wok i sampela ol viles klostu long ples we istap insait long en olsem fis, bai kisim kamap long en, bai kisim bagarap. kampani bai wokim kamap fektori long bagarap olgeta. Nape Tais bai nonap Longwe long dispela, ol rif bai nonap en, bai mas muv igo aut long narapela kisim bikpela bagarap na ol fis nabaut kisim bagarap. Samting olsem 500 m hap. Sampela hap liklik bagarap bai bai stap olsem yet. lusim eria we konstraksen wok i kamap kamap long sampela gaten kaikai, long en, bagarap kamap long ol rif bai Olgeta wara ron i go aut long maining kokonas na koko plantesin o ol arapela ino bikpela tumas. eria bai nonap karim sampela poisen o wok husat i stap arere long paiplain rot o marasin nogut insait long ol. Olsem na Rif stap insait long ples teiling paiplain faktori eria. wara bai nonap kamap poisen na mekim bai ron long en bai kisim bagarap olgeta. Kampani bai traim bes long daunim mak ol man pret. Tasol sais bilong rif eria kisim bagarap na pasim ol rot bilong dispela kain long wok bilong putim teiling paiplain Wara Ramu tu bai nonap long kisim bagarap long kamap. We em i hat tru bai liklik tru. Bikpela rif eria bilong bikpela bagarap long dispela maining long pasim dispela bagarap, kampani bai Basamuk na Rai Kos bai nonap long projek ikam long ol pipia ston, graun o peim kompensesin long ol man na meri kisim bagarap. Insait long eria long poisen marasin. Sampela liklik senis o husat i papa long ol dispela risosis. solwara na rif kisim bikpela bagarap long bagarap bai kamap klostu long maus en, ol rif fis bai lusim dispela eria na Bagarap Kamap Long Ol Wara bilong tupela wara Ban na Banap we ronowe igo long narapela hap we bagarap Insait long olgeta wan wan 5 yia, wok tupela i bungim wara Ramu. Dispela eria ino kamap long en. Behain long ol wok maining bai stap insait long wanpela bai kisim bagarap long taim bilong konstraksen i pinis, wara na solwara bai blok. Dispela bai mekim isi long konstraksen tasol na stat bilong maining. stat long kamap klin ken na ol fis bai kontrolim bagarap kamap long ol wanwan Tasol nogat wanpela bikpela bagarap bai kam bek long olpela ples bilong ol. Taim wara ron igo aut lusim Kurumbukari kamap long wara Ramu na em bai stap konstraksen wok i pinis na faktori i stat maining eria. Ol plen bilong kampani long yet olsem nau, long laif bilong wok long wok, bai nogat moa rot bilong ol kontrolim graun bruk igo insait long wara maining. wara na solwara long kamap doti ken. bai halivim long pasim rot bilong ol graun

50 Ramu Nickel Project—Environmental Plan Executive Summary

Olsem na bai nogat moa rot bilong rif na Insait long baundri eria, solwara bai kisim salim na kisim moni long en. Eria long fis i kisim bagarap bihain long dispela bikpela bagarap, tasol dispela bai nonap solwara stap autsait long nambis bilong taim. long bagarapim o kilim dai ol kind fis ol Rai Kos em i traipela tumas na eria insait i save stap long dip na namel solwara. long Basamuk Bay we teiling bai go Bagarap Kamap Long Dip Solwara Taim ol fis i painim aut olsem dispela daun na karamapim em bai liklik hap Bagarap insait long dip solwara bai hap eria long solwara we teiling igo daun tasol. Olsem na ol bagarap teiling bai kamap long wanpela mein rot tasol long long en i senis, ol bai lusim dispela eria mekim kamap long sait na flo bilong taim faktori i stat long wok. Dispela mein na ronowe igo long ol narapela hap long solwara long Basamuk em bai liklik tru, rot em long ol pipia wes i kamaut long solwara we nogat bagarap i kamap long na ol dip solwara fis tu bai inonap kisim fektori em oli save kolim long teiling bai en. bikpela bagarap long en. kamap taim kampani i tromoi dispela teiling i go daun long solwara klostu Solwara ino nap long kisim bagarap long Taim laif bilong dispela wok maining i long Basamuk insait long wanpela ol poisen marasin long wanem kampani pinis, olgeta wok long faktori tu bai pinis paiplain. bai daunim tru strong bilong ol bifo em i na long dispela taim, no moa teiling bai go daun long paip. Dispela teiling bai go go daun long dispela eria. Long dispela Sampela bagarap tu bai kamap long ol kol olgeta taim em igo miks wantaim taim igo, ples teiling i go pundaun long rif long dip solwara taim kampani tromoi bikpela wara. Ol stadi kampani i wokim en tambolo long flo bilong solwara bai i igo daun ol pipa ston na graun i kam kamap i soim olsem, nogat bikpela go strong na ol wanwan binatang na fis long eria oli kamautim bilong sanapim bagarap bai kamap insait long solwara i nabaut bai isi isi long stat long kam bek faktori insait long sampela mun long kam long ol marasin nogut. ken. Dispela em bai tekim sampela years konstraksen taim. moa yet behain long wok maining i pinis. Wanpela rot we ol bikpela bagarap o Bagarap long dip solwara bai kamap long senis bai kamap insait long dip solwara Bagarap Kamap Long Man Na teiling taim dispela teiling i kamaut long bai kamap long ol teiling taim ol i ron i Sindaun Bilong Ol Long Ples maus bilong paip na ron igo daun long go daun lusim maus bilong paip na go Dispela maining projek bai kamapim dip solwara na sindaun tambolo long flo sindaun tambolo long flo bilong solwara, planti gutpela rot bilong bringim halivim bilong solwara. Tasol wanpela samting, klostu long Basamuk. Dispela teiling bai long wok developmen insait long projek em mak bilong ol wesan na graun ol karamapim olgeta samting olsem ol eria na tu long bikples Madang Provins. wara i save karim i kam daun long binatang na long ol kain kain animol ol Ol gutpela halivim ikam long projek bai Finisterre Range or maunten nau, i winim save stap na painim kaikai raum long flo givim sans long kamapim gutpela mak bilong dispela teiling inap planti bilong solwara, insait long bikpela eria sindaun long ples na opim rot bilong taim antap. Olsem na mak bilong teiling ananit long solwara em oli kolim long wok developmen na ol komuniti sevis bai ino bikpela tumas. Taim teiling i Vitiaz Bay. olsem edukesin, helt, painim wok moni, kamaut long maus bilong paiplain na wok bisnis. Sapos ol pipal na Gavman samting olsem 150 m lusim antap igo Long ol hap eria long dip solwara we ino klia gut na mekim nating nobaut daun ananit long dip solwara, em bai ron planti teiling tru igo pundaun long en, long ol dispela gutpela halivim, planti spit behainim sait long graun na rol i go nogat wanpela samting bai stap laif, bagarap na heve tu ken kamap. Olsem daun long dip solwara na sindaun long olgeta samting olsem ol binatang na ol na olgeta mas bung wantaim long lukluk flo bilong dip solwara. Piksa Mep 21 i animol husat i save slo tumas long muv gut, plen gut na mekim gutpela wanbel soim ron bilong teiling ananit long dip igo kam, bai olgeta kisim bagarap long disisen long kamapim ol dispela wok i solwara, na we em bai go sindaun long dispela teiling. Ol bikpela fis nabaut husat ken ron gut. en. Dip wara klostu long Basamuk bai i save stap long dip solwara bai lusim holim pas olgeta teiling long dispela eria. tasol dispela eria na muv i go aut long ol Wanpela impoten samting tru long lukluk Dispela em i gutpela long wanem teiling arere solwara ino kisim bagarap long en. long en, em long ol rot we moni bai kam bai nonap muv igo kam ananit long long ol pipal na Gavman olsem long Antap long ol teiling, nogat wanpela laif solwara na bagarapim bikpela eria long royalti moni, sosel sevis, wok, trening bai stap long en. Long ol hapsait long flo bilong solwara. na bisnis develpmen. Long ai bilong ol dip solwara we ino planti tumas teiling pipal dispela ol samting i min olsem ples Bilong kontrolim ol bagarap kamap long igo pundaun long en, planti long ol na laif bilong ol bai senis na kamap teiling insait long solwara, PNG Gavman binatang na ol animol husat i save stap gutpela na ol senis long helt, edukesin bai putim tambu baundri mak ananit long long en, bai stap olsem yet na nonap na bisnis developmen bai go gutpela and lo bilong kantri we mak bilong bagarap senis tumas o kisim bikpela bagarap long bikpela insait long eria bilong ol. Tasol, mas noken abrusim. Ananit long ol en. planti taim yumi lukim pinis long PNG, envaironmen lo, Kampani mas sek ap Insait long Basamuk Bay na tu long Rai tupela pasin i save bagarapim ol dispela gut long dispela baundri mak na ol tambu Kos, bikpela dip solwara fis risos il stap. tingting. lo Gavman i putim long em, olgeta taim Tasol wanpela samting em ino planti insait long laif bilong projek, long • Ol disisen long spendim ol moni i man o kampani i save yusim dispela daunim mak bilong bagarap long kam long kain projek olsem, is save risos, bilong kaikai long ples o bilong envaironmen.

Ramu Nickel Project—Environmental Plan 51 Executive Summary

go long ol wrong samting, na moni i Envaironmen Menesmen Na lukluk gut long ol senis i kamap long save wes nating na lus, na nogat Monitoring Progrem envaironmen. wanpela gutpela wok o sevis save Ol wok bilong painim aut ol bagarap • Behain tasol long stat bilong wok kamap long ol ples na Provins. kamap long envaironmen na stretim ol heve maining, sekim ol wara sapos bagarap • Planti taim Gavman yet i save feil projek i kamapim insait long envaironmen i kamap o nogat na tu long solwara long givim sevis bilong ol yet igo ino pinis long dispela ripot. Neks step save long “Miksing Zon Baundri” long long ol pipal, na behain ken tanim na kamap behain long dispela ripot em oli Basamuk. tok, “Kampani mas givim” long kolim long Envaironmen Menesmen Na • Lukaut gut long olgeta wok i kamap stretim hap wok o sevis em yet i feil Monitoring, we kampani mas lukaut gut long taim bilong maining long laif long givim long ol pipal. long olgeta wok bilong en long noken bilong projek, na sekim sapos kamapim bikpela bagarap long Insait long 20 yia main laif, mak bilong sampela bikpela senis o bagarap i envaironmen na long sindaun bilong ol moni dispela projek bai peim igo aut kamap long envaironmen o nogat. pipal. long ol pipal bai go antap winim K200 • Olgeta samting ol painim aut long ol milion. Dispela em traipela moni na em Kampani bai wokim ol menesmen na dispela mesemen na monitoring wok, inap long kamapim planti wok developmen monitoing progrem behainim ol dispela kampani bai toksave long ol pipal na insait long Madang Provins. Tasol, sapos step: Gavman long ol ripot em bai raitim yumi laik lukim tru tru samting kamap • Behainin gut olgeta agrimen kampani kamap long en. long yusim dispela kain moni, yumi mas yet i agri long en na long peim sanap bung wantaim long luk luk gut • Olgeta taim kampani bai traim long kompensesin. long ol rot asua bin kamap pinis long ol kamapim gutpela sindaun wantaim arapela projek long PNG. Dispela i min • Wokim kamap ol stadi bilong painim ol pipal na toktok wantaim ol long olsem olgeta tingting na nid bilong ol aut mak bilong ol samting stap nau olgeta wok na senis i kamap long laif lokal komuniti, Gavman na kampani mas long envaironmen bilong halivim ol bilong projek. bung wantaim na toktok long en, na sekim ol senis i kamap behain long wanem samting mas kamap ol mas taim wok maining i kirap na ron. wanbel na agri long en. Behainim dispela • Lukaut gut na sekim ol wok kamap pasin bai karim gutpela kaikai na olgeta long taim bilong konstraksen na bai hamas long en.

52 Ramu Nickel Project—Environmental Plan Executive Summary

English Translation of Sotpela Ripot

Introduction zones are located around the drainage the underlying nickel bearing ore. Over- divides of the Kurumbukari Plateau and burden will be transported directly to The Ramu Nickel Project is based on the together form the Kurumbukari Resource mined-out areas for immediate use in mining of a lateritic nickel and cobalt Block. The Ramu West zone is situated rehabilitation. Disposal or long-term stor- resource at Kurumbukari, some 75 km in the southwestern headwaters of Banap age of overburden is not required for the west-southwest of Madang, in Madang Creek. Ramu Nickel Project. Province, Papua New Guinea (Figure 11). Slurried ore from the Kurumbukari mine The proposed mining sequence will be: Ore Mining site will be transported by pipeline some Mining will be at a rate of about • Ramu East (Years 1 to 4). 134 km to a refinery at Basamuk on the 4.6 Mt/a, which corresponds to a mined Rai Coast (Figure 7). The refinery will • Ramu Central (Years 5 to 11). area of about 48 ha/a. Mining within produce some 32,800 t/a of nickel metal individual zones will occur in a cellular • Ramu Central Extended (Years 9 and 3,200 t/a of cobalt salt for export to fashion, with open cut cells typically 1 to 14). world markets. to 4 ha in area. Ore thickness varies • Ramu West (Years 15 to 20). around an average of about 12.5 m. Ore The Feasibility Study has identified ore will be mined in benches by excavators reserves for a 20-year mine life. How- The mining process comprises the fol- and loaded into trucks for haulage to the ever, the geological resource base sug- lowing four phases: beneficiation plant. gests that a mine life of between 35 and • Land clearance. 40 years is probable. Progressive Rehabilitation • Overburden removal. Rehabilitation will commence as soon The proponent of the project is a joint as mining of an individual cell is com- venture between Ramu Nickel Limited • Ore mining. plete. The general procedure is shown in (65%) and Nord Australex (35%). Ramu • Progressive rehabilitation. Figure 10 and includes: Nickel is wholly owned by Highlands Pacific Limited (HPL), acting as man- Land Clearance • Using boulders exposed during min- ager for the Ramu Nickel Joint Venture Land clearance will be kept to the mini- ing, wherever possible, to form sta- (RNJV). mum required for operations, and com- ble, free-draining batters along the mences with the salvage of timber one lower slopes of mined-out areas. The project’s environmental planning year in advance of clearing the remain- proposals and impacts are addressed in • Replacement of overburden over ing vegetation. Vegetation will either be this voluntary Environmental Plan (EP), mined surfaces. stockpiled, chipped for mulch, used in which is submitted in compliance with brush matting or used to build sediment • Application of freshly stripped top- Section 4(6) of the PNG Environmental filters downstream of cleared land. Top- soil. Planning Act 1978 (Chapter 370). soil will be removed just ahead of min- • Sowing ‘nursery’ crops to assist in ing and be re-used as soon as possible as Project Outline stabilising the soil surface. part of the progressive rehabilitation pro- Mining gram. • Establishment of permanent vegeta- The proposed Kurumbukari mine site is tion cover. Overburden Removal located on a dissected plateau bounded The thickness of overburden across the Erosion Control to the northeast by the extensive flood- proposed mine site varies from almost The clayey soils of the Kurumbukari Pla- plain of the Ramu River and to the south- non-existent to about 20 m, with an av- teau, once disturbed, have high potential west by the foothills of the Bismarck erage thickness of 2.5 m. On average, for erosion, particularly during intense Range. 1.1 Mt of overburden will be mined an- rainfall. The mine site spans the head- Mining is proposed within four separate nually. In general, it is planned to strip zones (Figure 9). The Ramu East, Ramu overburden immediately before mining 1 For figure references, see the extended summary Central and Ramu Central Extended so as to limit the potential for erosion of report.

Ramu Nickel Project—Environmental Plan 53 Executive Summary waters of a number of catchments on the • Releaching of the hydroxides fol- • Power supplies at the Kurumbukari Kurumbukari Plateau. RNJV proposes lowed by nickel solvent extraction and Basamuk facilities. to implement an erosion control plan in and electrowinning, and cobalt salt • A telecommunications network. each disturbed catchment to minimise precipitation. the delivery of fugitive sediment to the • Single-status accommodation at Ku- Acid used in the refinery will be pro- streams. The erosion control plan com- rumbukari, permanent accommoda- duced on-site. Elemental sulfur will be prises a combination of micro- and tion in Madang and a township at used as feed stock for the acid plant. macro- controls. Micro-controls include Basamuk. a variety of techniques to retain eroded Lime and limestone slurry used in the • Treatment of sewage and treated ef- material close to the source during small process will be produced on-site. The fluent disposal. to moderate flood events. 1.2 Mt/a of limestone required for the lime plant will be extracted from a lime- Workforce Macro-controls comprise the construc- stone quarry located 3 km from Basamuk. During operations, the project will pro- tion, operation and ongoing maintenance vide permanent employment for some of settling ponds. The Ramu Nickel Tailing Treatment and Disposal 1,045 workers. Recruitment preference Project will be the first mining project in Tailing solids from the refinery will be will be given to local people from project Papua New Guinea which will attempt produced at up to 5 Mt/a and a total of impact areas followed, in order, by per- to utilise settling ponds as a pre-emptive about 100 Mt will be generated over the sons from within Madang Province, Pa- measure to assist in the containment of life of the project. However, greater pua New Guinean citizens from other fugitive sediment in runoff from dis- quantities could be produced if the mine provinces then non-citizens. turbed areas. Three settling pond sites life were extended beyond 20 years. have been identified for the initial Initially, the proportion of expatriates The tailing will be treated by the addi- 10 years of mining. Each pond has been will be about 20% of the workforce. tion of limestone and/or lime (as neces- designed to retain a 24-hour 10-year rain- However, it is planned to progressively sary) to neutralise residual acidity and fall event. The ponds will require peri- reduce this proportion to about 12% over raise the pH so that soluble metals are odic excavation of the trapped sediment, the life of the project. Additional indi- precipitated prior to disposal. Both on- which will be routed to the beneficiation rect employment will be provided by land and deep sea tailing placement plant for blending with run-of-mine ore. contractors who provide services to the (DSTP) options have been considered Based on the operation and performance operation. and DSTP is the preferred option for of these ponds over the initial 10 years tailing disposal. of mining, erosion control structures and Impacts and Safeguards procedures will be implemented and Tailing will flow by gravity from the Land Impacts optimised for the later years of mining. refinery to the coast and through an The development of the project will re- outfall pipeline on the seafloor with a Ore Processing quire some 1,585 ha of land. A compen- terminus at a water depth of 150 m. Be- Processing of the ore consists of the fol- sation agreement is presently being yond the outfall the tailing will flow as a lowing four stages: negotiated with the local people, which negatively-buoyant density current along is expected to cover the occupation of • Ore preparation at the mine site, the sloping seafloor and down a subma- customary land, unavoidable damages which includes the removal of over- rine canyon before ultimately depositing to land, loss of useful resources and fresh- size material and chromite sand, to on the deep ocean floor within the Vitiaz water and seawater turbidity. produce a consistent slurry feed for Basin, at depths generally between overland pipeline transport. Chromite 1,000 m and 1,600 m. Within the proposed special mining lease sand will be stored in mined-out pits (SML) one or more hamlets will require Project Infrastructure at the mine site. relocation to accommodate the mine. Project infrastructure will include: RNJV will assist affected landowners to • Slurry transportation over 134 km by • Project-dedicated port facilities at resettle to alternative areas with suffi- pipeline to the refinery at Basamuk. Basamuk. Consumables including cient land to meet subsistence gardening The slurry pipeline will carry about fuel oil and elemental sulfur will be and settlement needs and with access to 430 t/h of feed for the refinery. On imported and delivered by bulk car- clean water and adequate bushland re- average the slurry will have a metal riers. Nickel metal and cobalt salt sources. content of 1.12% nickel and 0.11% will be exported across the wharf. cobalt. The clearance of primary forest in the • Construction and upgrade of roads mine area and along the access road will • Acid pressure leaching at the refin- and bridges to access the mine site, result in the clearance of about 1,000 ha ery to extract nickel and cobalt from refinery and limestone quarry. of forest habitat and will impact the the ore into soluble constituents, and fauna, flora and bushland resources of their subsequent precipitation as in- • Water supplies sourced from rivers the region. The loss of forest in the mine termediate hydroxides using lime. close to the mine site and the refin- area, though locally significant, is not ery. expected to be regionally significant.

54 Ramu Nickel Project—Environmental Plan Executive Summary

This is because mining will disturb less tive coarse sediment is intercepted and sources of turbid water plumes gener- than 10% of the forest which covers the retained. Freshwater impacts at the end ated by construction activity. Within Kurumbukari Plateau, and because the of the 20-year mine life are shown in about 500 m either side of the sources of medium-crowned lowland hill forest Figure 19. Recovery of impacts will con- turbid water plumes, impacts on the typical of the locality is common in north- tinue in the streams following mine clo- fringing coral reef are expected to be ern Papua New Guinea, occupying ex- sure. minor. Some sections of coral reef will pansive tracts of similar climatic and be lost, such as a 10-m wide section The only permanent change predicted is altitudinal conditions. alienated by construction of the tailing- that the Banap Oxbow will infill with seawater pipelines; however, this repre- The impact to vegetation will be miti- sediment over the life of the mine, re- sents a small area compared to the large gated by progressive clearing, mining sulting in the loss and/or reduction of unaffected areas of fringing reef within and then rehabilitation of disturbed ar- aquatic habitat and the associated sub- Basamuk Bay and along the adjacent eas, which will provide a mosaic of un- sistence fishery. Impacts on the other Rai Coast. Within the severe impact disturbed and disturbed vegetation. The important subsistence fishery of the mine zones, most or all of the reef-attached success of revegetation will be impor- area, Nape Swamp, are expected to be fish species will be displaced, and tant in determining the ultimate impacts minor. reef-associated fishes will migrate to less- to fauna and flora of the Kurumbukari Water quality impacts due to trace met- affected reef areas. Following construc- region. The forested slopes of Mt Kua, als originating from the mine are pre- tion, recovery in the hard coral fauna of located in the northern portion of the dicted to be insignificant. the impacted fringing reef is expected to proposed SML, will be left untouched be rapid, within about 5 to 10 years, by the project to provide refuge for fauna No detectable impacts on the Ramu River owing to the predominance in the coral and to ensure a large tract of original are expected with respect to bed sedi- reef community of the staghorn coral forest is left intact. mentation and trace metals. Highly lo- which is a pioneering and fast-growing calised, minor impacts on aquatic habitats At the time of writing, no villages re- species. at the mouths of the Ban and Banap quired resettlement along the pipeline creeks are expected during construction During operations, the sources of con- route, but there may be a need to resettle and early operations. However, no sig- struction-derived sediments will have villages in close proximity to the refin- nificant impacts are expected on the over- ceased and no long-term impacts on the ery. The project will have localised ef- all aquatic habitats of the Ramu River. shallow-water marine environment are fects on subsistence gardens and cash predicted. cropping. Specific mitigation measures Shallow-water Marine Impacts and safeguards are proposed to mini- The main impacts on the shallow-water Deep-water Marine Impacts mise these effects and where these im- marine environment will be caused by Impacts on the deep-water marine envi- pacts are unavoidable, local communities plumes of turbid water associated with ronment will arise mainly during the op- will receive compensation. the construction of the refinery complex erations phase from DSTP. However, at Basamuk. The sources of turbid water over several months during construction, Freshwater Impacts include sediment-laden floodwaters from the coastal dumping of incompetent Mining will be confined within indi- creeks draining construction areas, tur- waste from the excavation of the refin- vidual zones for periods of about 5 years. bid plumes resulting from the coastal ery site is expected to result in minor Generally over this period, sedimented dumping of incompetent waste rock and impacts to deep-slope habitats as the runoff will be confined to a single catch- soil generated during excavation of the waste material descends down the sub- ment. RNJV’s erosion control plan will refinery site, port construction and asso- marine slope. mitigate the effects of fugitive sediment ciated dredging, and from the construc- from disturbed areas. However, residual During operation of the DSTP system, tion of the tailing-seawater mixtank and freshwater impacts will still occur over the discharge at depth of the tailing- the onshore-offshore section of the tail- the life of the mine. seawater mixture will result in mid-wa- ing and seawater intake pipelines. ter and deep-water, water quality impacts During periods of major catchment dis- Silt curtains, installed at the mouths of as well as tailing deposition on the floor turbance, such as during construction of the most-affected streams, will assist in of the Vitiaz Basin. However, the intro- settling ponds, locally severe impacts mitigating the effects of turbid runoff. duction of tailing should be considered are predicted for the streams draining However, residual shallow-water impacts in the light of the much larger inputs of the mining zones. These severe impacts will still occur during construction, and natural terrestrial sediments from rivers include increases in suspended sediment nearshore biological impact zones are and creeks draining the Finisterre Range. concentrations during high flows, and shown in Figure 21. increases in bed sedimentation and flood- The refinery tailing, when diluted with plain deposition, and are expected to re- Within and adjacent to the main areas of seawater and discharged at 150 m, will sult in major reductions of fish population nearshore construction and creek mouths, move down the steep submarine slope as densities in the main streams. Recovery impacts on the fringing coral reef (where a density current. Tailing solids deposi- of the streams will commence once the present) are predicted to be severe but tion will occur along the path of the settling ponds are operational and fugi- decrease rapidly with distance from the density current and accumulate on the

Ramu Nickel Project—Environmental Plan 55 Executive Summary seafloor. Development of a numerical ered and the surface of the tailing depos- • The tendency for cash benefits to be model simulating DSTP to the Basamuk its is expected to be devoid of bottom- handled and spent in an inequitable, canyon has indicated that separation of dwelling fauna. In areas of light opaque and non-accountable way. material from the periphery of the de- sedimentation, a less diverse bottom- • Shortcomings in the delivery of gov- scending density current will result in an dwelling invertebrate fauna is expected ernment services, and the mispercep- expansive lutite flow across the bed of to persist. tion that it is a straightforward matter the canyon. A number of dilute subsur- A deep-slope fishery resource is present for the project to fill the gap: face plumes will separate from the upper adjacent to Basamuk Bay and along the ‘kampani mas givim’. surface of the lutite flow and become Rai Coast. At present, the deep-slope trapped by the natural density stratifica- The Ramu Nickel Project’s revenues to fisheries are not exploited commercially tion of the ocean. The plumes will then the public sector will exceed K200 mil- or for subsistence. The deep-slope bot- disperse under the influence of the pre- lion over 20 years. This is sufficient to tom habitat likely to be impacted by op- vailing currents, ultimately depositing produce large and widespread socio-eco- eration of the DSTP will be small in area on the seabed. nomic benefits throughout Madang Prov- in comparison to the large and unaf- ince. However, for this to occur in The physical setting for DSTP in the fected areas of submarine slope adjacent practice requires a framework that re- Basamuk canyon is advantageous as it to the DSTP and beyond. Therefore, sig- flects the lessons of previous projects: in constrains the alongshore spread of tail- nificant impacts on bottom-dwelling particular, local community, government ing plumes while at the same time di- fishes or potential deep-sea fisheries are and company interests and concerns need recting the density current to the actively not expected at the local or regional level. to be voiced, discussed and effectively depositing Vitiaz Basin. Upon cessation of mining and acted upon within a set of agreed param- The PNG Government will specify a decommissioning of the DSTP system, eters of equity and accountability. mixing zone around the tailing discharge the deep-slope and seafloor tailing de- point. At the boundary of the mixing posits will stabilise and consolidate Environmental Management zone, there will be a requirement for with time. Recovery of the deposit site and Monitoring Program compliance of the subsurface plumes in may take from months to years and The proposed environmental manage- the water column with marine ambient benthic species more opportunistic than ment and monitoring program includes water quality criteria. the original occupants of the deposition the following steps: site may recolonise the area. Although a deterioration of water qual- • Implementation of management com- ity may be expected within the mixing Socio-economic Impacts mitments and compensation arrange- zone, adverse impacts on mid-water fish- The considerable benefit streams gener- ments. eries, such as deep-slope snapper, are ated by the project will act as major not expected. Fishes are either expected stimuli for development in the project • Assembling a baseline range of vari- to be attracted to or to avoid these areas, as well as for Madang Province. ables to define the pre-mining condi- deep-water subsurface plumes. Chemi- The benefit streams have the potential tions. cal impacts of DSTP are expected to be both to improve social and economic • Monitoring of construction effects. insignificant, as tailing chemicals will welfare, particularly in the areas of edu- be diluted many times within the subsur- cation, health, employment and business • Following construction, performing face turbidity plumes and by the flux of development, but also have the potential an intensive short-term study to vali- ocean water passing over the tailing de- to generate negative impacts if they are date the predictions of the effects of posits on the seafloor. Laboratory toxic- not effectively managed. the project, particularly compliance ity testing of tailing-seawater dilutions with water quality criteria at the mix- From the project’s perspective, the man- has shown that there is negligible re- ing zone boundary. agement focus should be on the basic sidual toxicity at the dilutions expected issues of revenue from compensation and • Monitoring operations for regulatory within the deep-sea environment. royalty, social services, jobs, training and compliance and to identify any un- The main physical impact of DSTP will business development. While this focus foreseen effects. be the deposition of tailing solids on the manifestly reflects the explicit priorities • Reporting to local communities and seafloor, and consequent smothering of of villagers for material advancement to government. bottom habitats of Basamuk canyon and and access to social services there are, the Vitiaz Basin. In areas of heavy sedi- historically, two means by which the sat- • Consultation with local communities mentation, sedentary and less mobile isfactory delivery of these benefits can routinely and as issues arise. bottom-dwelling fauna will be smoth- be impeded in Papua New Guinea:

56 Ramu Nickel Project—Environmental Plan