Mt Gibson Iron Ore Mine and Infrastructure Project Mount Gibson Mining Limited Report and recommendations of the Environmental Protection Authority Environmental Protection Authority Perth, Western Australia Bulletin 1242 November 2006 Environmental Impact Assessment Process Timelines Date Progress stages Time (weeks) 06/09/04 Level of assessment set (following any appeals upheld) 0 18/04/06 Proponent document released for public comment 84 30/05/06 Public comment period closed 6 14/09/06 Final proponent response to the issues raised 15 27/11/06 EPA report to the Minister for the Environment 10 ISBN. 0 7307 6881 3 ISSN. 1030 - 0120 Assessment No. 1538 Summary and recommendations Mount Gibson Mining Limited proposes to mine and process iron ore (hematite and magnetite) from Extension Hill and Extension Hill North. The proposal also includes the construction of a pipeline to transport the magnetite slurry to Geraldton Port, and infrastructure at the port to strip the ore from the slurry for export. The operation will yield approximately 13 million tonnes of hematite over 8 years and 230 million tonnes of magnetite over 20 years. Extension Hill and Extension Hill North are part of a ridge of Banded Ironstone Formations (BIFs) within the Mt Gibson ranges in the Mid West region of Western Australia. This report provides the Environmental Protection Authority’s (EPA’s) advice and recommendations to the Minister for the Environment on the environmental factors relevant to the proposal. Section 44 of the Environmental Protection Act 1986 requires the EPA to report to the Minister for the Environment on the key environmental factors relevant to the proposal and on the conditions and procedures to which the proposal should be subject, if implemented. In addition, the EPA may make recommendations as it sees fit. The EPA is also required to have regard for the principles set out in section 4A of the Environmental Protection Act 1986. Key environmental factors and principles The EPA decided that the following key environmental factors relevant to the proposal required detailed evaluation in the report: (a) flora; (b) vegetation; (c) fauna; and (d) mine closure and rehabilitation. There were a number of other factors which were relevant to the proposal, but the EPA is of the view that the information set out in Appendix 3 provides sufficient evaluation. The following principles were considered by the EPA in relation to the proposal: (a) the precautionary principle; (b) the principle of intergenerational equity; (c) the principle of the conservation of biological diversity and ecological integrity; and (d) the principle of waste minimisation. Other advice The EPA considers that given the: • high conservation value of BIFs in the Yilgarn Craton; i • large number of existing and proposed BIF mining proposals; and • lack of existing reservation for conservation of these areas, BIF ranges in the Yilgarn Craton with significant biodiversity values should be protected in the conservation estate. The EPA considers that there is an urgent requirement to establish a context for an assessment on cumulative impacts on flora, vegetation and fauna from mining of BIFs in this region. Conclusion The EPA has considered the proposal by Mount Gibson Mining Limited to mine and process iron ore from Extension Hill and Extension Hill North, and to construct infrastructure to transport the magnetite slurry to Geraldton Port, and strip the ore from the slurry for export. The EPA considers that the BIF ranges in the Yilgarn Craton have outstanding conservation significance. The BIF ranges support floristically different vegetation communities and unique biological species that evolved as a result of isolation of the ranges over geological timescales. The EPA is aware that the proposal would remove floristic vegetation communities restricted to Extension Hill and Extension Hill North that are not known to occur anywhere else. The EPA is also aware that these communities may fulfil the criteria for Threatened Ecological Communities (TECs), and that nominations are currently being prepared recommending the listing of some BIF floristic communities as TECs. The EPA is aware that there are a number of other existing and proposed BIF mining proposals, and a lack of protection of similar vegetation communities in the area. The Department of Environment and Conservation (DEC) recently carried out regional flora and vegetation surveys of BIFs in the Yilgarn Craton. The results of these surveys, and other biological survey data from the area, have highlighted the outstanding nature conservation values of the BIF ranges. The EPA notes that the flora and vegetation survey and analysis carried out by Mount Gibson Mining Limited has significantly contributed to the knowledge about the Declared Rare Flora (DRF) Darwinia masonii, the recently discovered Lepidosperma sp. Mt Gibson and the restricted vegetation communities on Extension Hill and Extension Hill North. Both plant species and the vegetation are unique to the Mt Gibson ranges. Current estimates indicate that 15% of D. masonii and 47% of Lepidosperma sp. Mt Gibson would be impacted by the proposal. The Mt Gibson ranges also support conservation significant fauna, such as Leipoa ocellata (Malleefowl). The presence of Darwinia masonii, and Malleefowl in the project area are triggers for assessment under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999. The Commonwealth has determined that the proposal is a “controlled action” and has accredited the State environmental impact assessment process. However, the Commonwealth will determine its position on the proposal as a separate decision, taking into account the information provided in this report. ii The EPA notes the advice from the Western Australian Threatened Species Scientific Committee (WATSSC) regarding the threat ranking for Darwinia masonii and Lepidosperma sp. Mt Gibson under the internationally recognised criteria established by the International Union for the Conservation of Nature and Natural Resources (IUCN). The advice was based on the initial 14% impact on the known population of D. masonii and 55% impact on Lepidosperma sp. Mt Gibson. Given these levels of impact, a recommendation to increase the IUCN ranking from “endangered” to “critically endangered” is likely for D. masonii and an increase from “vulnerable” to “endangered” is likely for Lepidosperma sp. Mt Gibson should the proposal proceed. The WATSSC has advised that in order to mitigate both species from being at risk of further decline, the remaining populations of D. masonii and Lepidosperma sp. Mt Gibson should be protected in a conservation reserve that is exempt from any further exploration or mining activity. The EPA notes that DEC supports the WATSSC’s recommendation that in order to ensure the long-term conservation of Darwinia masonii and Lepidosperma sp. Mt Gibson, the remaining populations of both species should be protected in the conservation estate, as a class ‘A’ nature reserve. The EPA considers that the proposal should only proceed if, prior to ground- disturbing activities: • the remaining ridges of BIFs in the Mt Gibson area with sub-populations or suitable habitat for Darwinia masonii and Lepidosperma sp. Mt Gibson, and suitable habitat for the remaining restricted floristic vegetation communities are protected in the formal conservation estate, as a class ‘A’ nature reserve, exempt from any exploration or mining activity; and • adequate management resources are provided to ensure that threatening processes on the remaining plant populations and restricted vegetation within the reserve are mitigated. If the above can be achieved, and there is satisfactory implementation of the recommended conditions set out in Appendix 4, and summarised in Section 5, the EPA considers that the proposal can proceed. The conditions include the preparation and implementation of comprehensive research and recovery plans for Darwinia masonii and Lepidosperma sp. Mt Gibson. If appropriate conservation reservation of the remaining sub-populations of Darwinia masonii and Lepidosperma sp. Mt Gibson, and habitat for the remaining restricted floristic vegetation communities in the Mt Gibson ranges cannot be achieved, and adequate management resources are not provided, prior to ground-disturbing activities, the EPA considers that the proposal should not be implemented. Recommendations The EPA submits the following recommendations to the Minister for the Environment: 1. That the Minister notes that the proposal being assessed is the mining and processing of iron ore from Extension Hill and Extension Hill North, and construction of a pipeline to transport the magnetite slurry to Geraldton Port, and infrastructure at the port to strip the ore from the slurry for export. iii 2. That the Minister notes the strategic policy considerations in Section 2, for the mining of conservation significant BIFs in the Yilgarn Craton. 3. That the Minister considers the report on the key environmental factors and principles as set out in Section 4. 4. That the Minister notes that the EPA has concluded that the proposal should only proceed if: • prior to ground-disturbing activities, the remaining ridges of BIFs in the Mt Gibson area that contain sub-populations or suitable habitat for Darwinia masonii and Lepidosperma sp. Mt Gibson and habitat for the remaining restricted floristic communities are secured in the formal conservation estate, as a class ‘A’ nature reserve; • prior to ground-disturbing