APPENDIX E4 Port of Darwin CONTENTS E4 Port of Darwin 95 E4.1 Introduction 95 E4.2 Description of the proposal 97 E4.2.1 Timing 97 E4.2.2 Uranium oxide 97 E4.2.3 Concentrate 97 E4.3 Project alternatives 106 E4.3.1 Decision to expand Olympic Dam 106 E4.3.2 Decision to export concentrate 108 E4.3.3 Selected port from which to export concentrate 108 E4.4 Legislative framework 109 E4.4.1 Assessment and approvals process 109 E4.4.2 Northern Territory Government legislation 110 E4.4.3 Local government requirements 114 E4.5 Public involvement and consultation 115 E4.5.1 Feedback to date 115 E4.5.2 Stakeholder list 116 E4.5.3 Community consultation plan 116 E4.6 Existing environment 117 E4.6.1 Climate 117 E4.6.2 Land use and tenure 121 E4.6.3 Physical environment 121 E4.6.4 Air quality 122 E4.6.5 Greenhouse gas 124 E4.6.6 Acoustic environment 124 E4.6.7 Natural environment 126 E4.6.8 Cultural environment 126 E4.6.9 Socio-economic environment 128 E4.6.10 Transport 130 E4.7 Impact assessment approach 134 E4.8 Storage and loading facility impacts and management 136 E4.8.1 Air quality 136 E4.8.2 Noise 136 E4.8.3 Surface water and soils 137 E4.8.4 Flora and fauna 139 E4.8.5 Mosquito breeding 139 E4.8.6 Cultural heritage 139 E4.8.7 Visual amenity 140 E4.8.8 Waste management 140 E4.8.9 Decommissioning and rehabilitation 140 E4.9 Transport of product impacts and management 140 E4.9.1 Rail noise 140 E4.9.2 Road noise 140 E4.9.3 Traffic management 141 Olympic Dam Expansion Draft Environmental Impact Statement 2009 Appendix E 93 E4.10 Project-wide issues 141 E4.10.1 Health and safety 141 E4.10.2 Radiation protection 143 E4.10.3 Transport safety 147 E4.10.4 Greenhouse gas emissions and climate change 150 E4.10.5 Social assessment 150 E4.10.6 Economic assessment 151 E4.10.7 Relationship to other projects 154 E4.11 Risk assessment 156 E4.11.1 Introduction 156 E4.11.2 Assessment methods 156 E4.11.3 Assessment process 158 E4.11.4 Outcomes and management 160 E4.12 Environmental management 164 E4.12.1 Introduction 164 E4.12.2 Overview of the EM Framework 164 E4.12.3 Implementing the EM Framework 164 E4.12.4 Activities to be managed 164 E4.12.5 Integration with the existing environmental management system 164 E4.12.6 Meeting environmental obligations 165 E4.12.7 Review, modification and development of EMS documentation 165 E4.12.8 Draft Environmental Management Program 165 E4.12.9 Design criteria 168 E4.12.10 Environmental objectives and performance criteria 168 E4.12.11 Health, safety, environment and community management plans 168 E4.12.12 Environmental management auditing and reporting 168 E4.13 Commitments 169 E4.14 References 170 94 Olympic Dam Expansion Draft Environmental Impact Statement 2009 Appendix E E4 PORT OF DARWIN E4.1 INTRODUCTION BHP Billiton is proposing to expand its existing mining and minerals processing operation at Olympic Dam, located about 575 km by road north-north-west of Adelaide in South Australia (see Figure E4.1). The Draft EIS presents the findings of environmental, social, cultural and economic assessments undertaken to determine the potential impacts of, and benefits from, the proposed expansion. It is the primary source of information for public comment and the Australian, South Australian and Northern Territory governments’ decision about whether the proposed expansion can proceed. The proposed expansion is seeking government approval for the project configuration detailed in Chapter 5 of the Draft EIS (Description of the Proposed Expansion). This configuration would increase total production to 750,000 tonnes per annum (tpa) of refined copper equivalent, 19,000 tpa uranium oxide, 800,000 ounces per annum (oz/a) gold and 2.9 million oz/a silver. The 750,000 tpa of refined copper equivalent would consist of: • about 350,000 tpa of refined copper processed at Olympic Dam from 800,000 tpa of the copper-rich concentrate. This concentrate would be derived from higher-grade ore • about 1.6 Mtpa of the copper-rich concentrate to be exported via the Port of Darwin for processing by overseas customers. This concentrate would be derived from the lower-grade ore and is expected to yield about 400,000 tpa of refined copper. The exported concentrate would also have recoverable quantities of uranium oxide, gold and silver and is hereafter termed ‘concentrate’. About 30% of the uranium oxide produced at Olympic Dam has been exported via the Port of Darwin since January 2005. BHP Billiton has developed objectives for the health, safety, environment, community and economic components of the proposed expansion. These are being addressed in the environmental assessment process and would continue to be met in the planning, construction and operation phases, and on closure. The objectives are to: • enhance the safety and environmental performance of the Olympic Dam operation • maximise the value of the deposit for the benefit of the BHP Billiton Group shareholders, the nation and the community • maintain a major source of employment in South Australia • enhance the current opportunities, lifestyle and amenities for local and regional communities • enhance the relationship and communication with traditional land claimant groups • design, construct, operate and decommission an expanded operation that minimises the impact on, and maximises the benefits to, the environment and community. The Draft EIS addresses the requirements of the joint Australian and South Australian government EIS guidelines, published in January 2006 (see Appendix A1) and the South Australian Government guidelines published in November 2008 (see Appendix A2). It also addresses the requirements of the Northern Territory Government guidelines, which provide requirements specific to the proposed Northern Territory Transport Option (see Appendix A3 for the ‘Guidelines for Preparation of an Environmental Impact Statement, Olympic Dam Expansion (NT Transport Option) Project’; Northern Territory Department of Natural Resources, Environment, The Arts and Sport November 2008). Olympic Dam Expansion Draft Environmental Impact Statement 2009 Appendix E 95 Darwin Airport See inset Fannie Darwin Bay Alice Springs DARWIN Lake Brisbane Frances Eyre Roxby Downs Perth Bay Sydney Canberra Adelaide Melbourne DarwinCoober Pedy Harbour East Arm Hobart 024 km Marree OLYMPIC DAM Lyndhurst Andamooka Roxby Downs Lake Woomera Lake Torrens ers Ranges Windabout Pimba Pernatty Flind Island Lagoon Lagoon Port Augusta Whyalla Point Lowly Port Pirie Upper Eyre Spencer Peninsula Gulf Yor ke Peninsula Spencer Gulf Gulf St Vincent ADELAIDE Existing Olympic Dam Special Mining Lease 020406080100 Existing Roxby Downs Municipality km Figure E4.1 Location of Olympic Dam 96 Olympic Dam Expansion Draft Environmental Impact Statement 2009 Appendix E This appendix has been provided as a collation of the information presented throughout the Draft EIS so that issues relevant to the NT Transport Option could be more easily accessible to the reader. It is noted that no formal agreement between BHP Billiton and the Northern Territory Government for the proposal described in the Draft EIS or this appendix is in place. If and when required, BHP Billiton would undertake commercial discussions with the Northern Territory Government and other relevant parties to establish suitable agreements to locate the proposed facilities at the Port of Darwin, East Arm. E4.2 DESCRIPTION OF THE PROPOSAL E4.2.1 Timing If the expansion project receives all necessary approvals, open pit mining at Olympic Dam is scheduled to begin in 2010. More than 300 m of cover sequence (overburden) is to be removed before the economic ore is reached, and this would take about five years. As such, the export of additional uranium oxide and the new concentrate product through the Port of Darwin would not commence until about 2016. For the purpose of the Draft EIS, the life-of-mine has been assessed at 40 years. The large size of the mineral resource, however, suggests that mining at Olympic Dam would continue well beyond this. The proposed expansion would increase the production of uranium oxide from about 4,000 tpa to 19,000 tpa, which equates to an increase from 200 to about 900 shipping containers per annum. Olympic Dam currently exports uranium oxide via the Port of Darwin and Outer Harbor (Port Adelaide), and this is expected to continue for the expanded operation. The exact quantity of uranium oxide to be exported via the Port of Darwin is yet to be determined. Irrespective of the increased volume of containers, no new facilities to accommodate the additional uranium oxide are anticipated. New facilities would be required, however, to accommodate the new concentrate product. A description of the proposed facilities is provided in Section E4.2.3. It is expected that it would take two years to construct these facilities. Once operational, a daily train service would transport concentrate from Olympic Dam to the East Arm storage facility. The concentrate would be conveyed to a Panamax-class vessel approximately every two weeks. No additional rail movements would be required to transport the uranium oxide containers; these would be attached to the concentrate train as required. E4.2.2 Uranium oxide Uranium oxide is packed and sealed into 200 litre drums, which are then sealed inside standard ISO (or equivalent) shipping containers at Olympic Dam. Some of these containers would then be railed from Olympic Dam to the Port of Darwin on the existing Adelaide to Darwin rail line (plus the new 105 km rail line built to connect Olympic Dam to the national rail network). Other containers containing uranium oxide would be exported via Outer Harbor in South Australia.