Mindarie Mineral Sands Project Mindarie C and A(2) Program for Environment Protection and Rehabilitation (PEPR) 16 April 2011 Parsons Brinckerhoff Australia Pty Limited ABN 80 078 004 798 Level 16 1 King William Street Adelaide SA 5000 GPO Box 398 Adelaide SA 5001 Australia Telephone +61 8 8405 4300 Facsimile +61 8 8405 4301 Email [email protected] Certified to ISO 9001, ISO 14001, AS/NZS 4801 11-0773-10-2162559A A+ GRI Rating: Sustainability Report 2010 Mindarie Mineral Sands Project – Mindarie C and A(2) – Program for Environment Protection and Rehabilitation (PEPR) Contents Page number Acronyms xi Declaration xiii 1. Introduction 1 1.1 Project history 1 1.2 Program for Environment Protection and Rehabilitation 2 1.2.1 Objectives and context 2 1.2.2 Structure and content of PEPR 3 2. Proponent details 5 2.1 Project proponent 5 2.2 Project location and mining tenements 5 2.3 Local government 6 3. Legislative requirements 7 3.1 South Australian legislation 7 3.1.1 Mining Act 1971 7 3.1.2 Natural Resources Management Act 2004 8 3.1.3 Environment Protection Act 1993 9 3.1.4 Development Act 1993 11 3.1.5 Native Vegetation Act 1991 11 3.1.6 National Parks and Wildlife Act 1972 11 3.1.7 Other relevant State legislation 12 3.2 Australian government legislation 14 3.2.1 Environment Protection and Biodiversity Conservation Act 1999 14 3.2.2 Other relevant Commonwealth legislation 15 3.3 National policies and strategies 15 4. Existing environment 17 4.1 Land use and proximity to housing and infrastructure 17 4.2 Noise, dust and air quality 18 4.2.1 Air quality 18 4.2.2 Noise 18 4.3 Topography and landscape 20 4.4 Climate 20 4.4.1 Rainfall, humidity, evaporation and wind 20 4.4.2 Temperature 21 4.5 Geohazards 22 PARSONS BRINCKERHOFF Page i 11-0773-10-2162559A Mindarie Mineral Sands Project – Mindarie C and A(2) – Program for Environment Protection and Rehabilitation (PEPR) Contents (Continued) Page number 4.6 Geology and soils 23 4.6.1 Regional geology 23 4.6.2 Local geology 24 4.6.3 Soil 24 4.7 Surface water 29 4.8 Groundwater 29 4.8.1 Regional 29 4.9 Fauna and flora 30 4.9.1 Flora 30 4.9.2 Mindarie A(2) 35 4.9.3 Fauna 35 4.9.4 Pest plants and animals 37 4.10 Heritage 39 4.10.1 Aboriginal heritage 39 4.10.2 European heritage 39 4.11 Proximity to conservation areas 40 4.12 Pre-existing site contamination and disturbance 40 4.13 Socio-economic 41 4.14 Transport and traffic 41 5. Project description 43 5.1 General description and summary 43 5.1.1 General 43 5.1.2 Project schedule 45 5.1.3 Project alternatives 45 5.2 Resources, products and markets 48 5.2.1 Geological environment 48 5.2.2 Total operations ore reserves 48 5.2.3 Production rate, products and market 51 5.2.4 Material movement 51 5.3 Mining operations 52 5.3.1 General mine sequence 52 5.3.2 Site clearance 56 5.3.3 Native vegetation, topsoil and subsoil removal and stockpiling 56 5.3.4 Overburden removal and stockpiling 56 5.3.5 Mine pit details 57 5.3.6 Ore recovery 59 5.3.7 Slurry unit 60 Page ii PARSONS BRINCKERHOFF 11-0773-10-2162559A Mindarie Mineral Sands Project – Mindarie C and A(2) – Program for Environment Protection and Rehabilitation (PEPR) Contents (Continued) Page number 5.4 Processing 61 5.4.1 Primary concentrator plant 61 5.4.2 Process description 62 5.4.3 PCP components 62 5.4.4 Hours of operation 67 5.5 Tailings 67 5.5.1 Tailings characterisation 67 5.5.2 Tailings discharge 67 5.5.3 Tailings monitoring and management 70 5.5.4 Tailings associated components 70 5.6 Sequence of mining and rehabilitation operations 71 5.6.1 Mining direction 71 5.6.2 Mining sequence and scheduling 71 5.6.3 Production schedules and annual production 71 5.6.4 Mining adjacent to residential property 71 5.7 Supporting mine infrastructure 75 5.7.1 Electricity 75 5.7.2 Pipelines 75 5.7.3 Ancillary infrastructure 76 5.7.4 Fuel storage 77 5.8 Road access and transport 77 5.9 Water management 78 5.9.1 Water supply 78 5.9.2 Mine water and tailings decant 81 5.9.3 Process water and tailings decant 81 5.9.4 Site run off/silt control and drainage 81 5.10 Waste and hazardous material management 84 5.10.1 Tailings/processing waste 84 5.10.2 Commercial and industrial waste 84 5.11 Stockpiles management 85 5.11.1 Topsoil and subsoil 85 5.11.2 Overburden 86 5.11.3 Heavy mineral concentrate 86 5.12 Construction 87 5.12.1 PCP relocation works 87 5.12.2 Access 87 5.12.3 Accommodation 87 5.13 Modes and hours of operation 87 5.14 Visual screening and site security 88 5.15 Plant and machinery requirements 88 PARSONS BRINCKERHOFF Page iii 11-0773-10-2162559A Mindarie Mineral Sands Project – Mindarie C and A(2) – Program for Environment Protection and Rehabilitation (PEPR) Contents (Continued) Page number 5.16 Resource inputs 89 5.16.1 Workforce details 89 5.16.2 Energy sources 90 5.17 Water sources 90 5.18 Mine completion and rehabilitation 90 5.18.1 Management of overburden 90 5.18.3 Rehabilitation 91 5.19 Mindarie A(2) and former Mindarie C rehabilitation 91 5.19.1 Process pond rehabilitation 92 5.19.2 Rehabilitation activity schedule 93 6. Stakeholder consultation 95 6.1 Identified stakeholders 95 6.2 Australian Zircon stakeholder consultation 96 6.2.1 Murray Mallee Community Consultative Committee (Mineral Sands) 97 6.2.2 Aboriginal liaison 97 6.2.3 Consultation on the Mindarie C project by AZ 98 6.3 Stakeholder consultation during administration 98 6.4 Murray Zircon stakeholder consultation 99 6.4.1 Approach 99 6.4.2 Consultation to date 99 6.4.3 Ongoing consultation 104 6.4.4 PEPR community consultation feedback 106 7. Environmental outcomes 111 7.1 Background 111 7.1.1 Control and management strategies 111 7.1.2 Outcomes measurement criteria 112 7.1.3 Monitoring 112 7.1.4 Environmental outcomes and measurement criteria 112 7.2 Mindarie C (ML 6226) and Mindarie A(2) (6220) 121 7.2.1 Native vegetation 121 7.2.2 Weeds and pests 126 7.2.3 Noise and vibration 129 7.2.4 Traffic 133 7.2.5 Aboriginal and European heritage 138 7.2.6 Community consultation and landuse management 141 7.2.7 Visual amenity and landscaping 145 7.2.8 Air quality 148 7.2.9 Radiation and asbestiform materials 153 Page iv PARSONS BRINCKERHOFF 11-0773-10-2162559A Mindarie Mineral Sands Project – Mindarie C and A(2) – Program for Environment Protection and Rehabilitation (PEPR) Contents (Continued) Page number 7.2.10 Surface water and stormwater 156 7.2.11 Groundwater 160 7.2.12 Topsoil and subsoil 166 7.3 Consolidated summary of environmental outcomes and measurement criteria 170 7.4 Other conditions without outcomes 191 7.5 Additional environmental risks 195 8. Mine Closure and Rehabilitation Plan 196 8.1 General 196 8.1.1 Stakeholder involvement and issues 196 8.1.2 Scope and review 196 8.1.3 Potential environmental, economic and social impacts of mine closure 197 8.1.4 Rehabilitation Mine Closure and Criteria Plan 198 8.1.5 Closure outcomes 199 8.1.6 Other conditions 199 8.2 Mindarie C (ML 6226) 200 8.2.1 Environmental baseline 200 8.2.2 Description of closure Domains 200 8.2.3 Summary of environmental outcomes and completion criteria 200 8.2.4 Compliance with other environmental conditions 207 8.2.5 Closure strategies for each domain 208 8.2.6 Closure management 210 8.2.7 Post closure monitoring and management 216 8.2.8 Closure cost estimate/bond 217 8.3 Mindarie A(2) (ML 6220) 219 8.3.1 Environmental baseline 219 8.3.2 Status of current rehabilitation 219 8.3.3 Process pond rehabilitation 219 8.3.4 Summary of environmental outcomes and completion criteria 220 8.3.5 Compliance with other environmental conditions 225 8.3.6 Closure management 226 8.3.7 Post closure monitoring and management 227 8.3.8 Closure cost estimate/bond 228 8.3.9 Mine closure schedule 230 9. Management systems and capability 232 9.1 Commitment and leadership 232 9.2 Policies and objectives 232 9.2.1 Environmental policy 232 9.2.2 Procedures and practices 233 PARSONS BRINCKERHOFF Page v 11-0773-10-2162559A Mindarie Mineral Sands Project – Mindarie C and A(2) – Program for Environment Protection and Rehabilitation (PEPR) Contents (Continued) Page number 9.3 Organisation, resources and documentation 233 9.3.1 Organisation structure and resources 233 9.3.2 Documentation 233 9.4 Risk evaluation and management 234 9.4.1 Job safety analysis 235 9.4.2 Contractor management 235 9.4.3 Management review 235 9.5 Planning 235 9.6 Implementation, recording and monitoring 235 9.7 Audit and review 236 9.7.1 PEPR review and amendments 236 9.7.2 Annual Compliance Report 236 9.8 Previous experience of operator 237 9.9 Lease conditions 237 10.