Environmental Assessment Chapter 2 Development Alternatives Integra Open Cut Project 2-1 2 Development Alternatives 2.1 Introduction The Director-General’s requirements issued specify that the Environmental Assessment includes a description of the development alternatives considered. This chapter provides an overview of existing Integra Coal operations and describes the feasible alternatives to the proposed future activities considered during project planning. 2.2 Existing Operations 2.2.1 Integra Open Cut Development Consent (DA 86/2889) for the Camberwell Coal Mine (now referred to as the Integra Open Cut) was granted on 19 March 1990 by the Minister for Planning permitting open cut mining in two areas (referred to as the North and South Pits – shown in Figure 1-2), together with the development and operation of a Coal Handling and Preparation Plant (CHPP), train loader and associated facilities. DA 86/2889 expires on 18 March 2011. Between 1991 and 1999, multi-seam truck and shovel/excavator open cut mining occurred within the North Pit, with overburden emplacement in, over and adjacent to various components of that area continuing through until 2007. A small section in the north-western corner of the pit was retained as a void to enable access to the Glennies Creek Colliery (now known as the Integra Underground) workings via portals in the former highwall, and support activities and infrastructure. Open cut mining commenced in the South Pit in 1997, with overburden emplacement initially within the former North Pit area and, subsequently, within and over the footprint of the South Pit, and is now approved to produce up to 4.5Mtpa of ROM coal. In the absence of an approval to extend the South Pit, mining operations within this area are projected to cease by mid 2010. DA 86/2889 has been modified on seven occasions, including to provide for increases in CHPP throughput (to 1200tph) to enable the receipt, processing and dispatch of coal from the Glennies Creek Colliery, and the increase in production from the Open Cut itself. The Integra Open Cut produces both semi-soft coking coal (70%) and thermal coal (30%) for the export market. 2.2.2 Integra Underground Major interest in the development of the coal resource in the area now referred to as the Integra Underground commenced in the mid 1970s with extensive exploration culminating in the lodgement of a development application for an underground mine in August 1990. Development Consent (DA 105/90) was granted in November 1991. Initial mining operations commenced in October 1996 with major on-site activities commencing in December 1998. Underground mine development commenced in May 1999. Since that time, the Integra Underground has been developed in three stages. • Development of three entries in the Middle Liddell seam from the highwall of the Camberwell North Pit (May 1999 to April 2000). • Development of five headings (the north-west mains) to prove mining conditions, and the installation of the initial longwall gateroads (June 2000 to August 2002).
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E n v i r o n m e n t a l A s s e s s m e n t C h a p t e r 2 D e v e l o p m e n t A l t e r n a t i v e s
Integra Open Cut Project 2-1
2 Development Alternatives
2.1 Introduction The Director-General’s requirements issued specify that the Environmental Assessment includes a description of the development alternatives considered. This chapter provides an overview of existing Integra Coal operations and describes the feasible alternatives to the proposed future activities considered during project planning.
2.2 Existing Operations
2.2.1 Integra Open Cut Development Consent (DA 86/2889) for the Camberwell Coal Mine (now referred to as the Integra Open Cut) was granted on 19 March 1990 by the Minister for Planning permitting open cut mining in two areas (referred to as the North and South Pits – shown in Figure 1-2), together with the development and operation of a Coal Handling and Preparation Plant (CHPP), train loader and associated facilities. DA 86/2889 expires on 18 March 2011.
Between 1991 and 1999, multi-seam truck and shovel/excavator open cut mining occurred within the North Pit, with overburden emplacement in, over and adjacent to various components of that area continuing through until 2007. A small section in the north-western corner of the pit was retained as a void to enable access to the Glennies Creek Colliery (now known as the Integra Underground) workings via portals in the former highwall, and support activities and infrastructure.
Open cut mining commenced in the South Pit in 1997, with overburden emplacement initially within the former North Pit area and, subsequently, within and over the footprint of the South Pit, and is now approved to produce up to 4.5Mtpa of ROM coal. In the absence of an approval to extend the South Pit, mining operations within this area are projected to cease by mid 2010.
DA 86/2889 has been modified on seven occasions, including to provide for increases in CHPP throughput (to 1200tph) to enable the receipt, processing and dispatch of coal from the Glennies Creek Colliery, and the increase in production from the Open Cut itself.
The Integra Open Cut produces both semi-soft coking coal (70%) and thermal coal (30%) for the export market.
2.2.2 Integra Underground Major interest in the development of the coal resource in the area now referred to as the Integra Underground commenced in the mid 1970s with extensive exploration culminating in the lodgement of a development application for an underground mine in August 1990. Development Consent (DA 105/90) was granted in November 1991.
Initial mining operations commenced in October 1996 with major on-site activities commencing in December 1998. Underground mine development commenced in May 1999. Since that time, the Integra Underground has been developed in three stages.
• Development of three entries in the Middle Liddell seam from the highwall of the Camberwell North Pit (May 1999 to April 2000).
• Development of five headings (the north-west mains) to prove mining conditions, and the installation of the initial longwall gateroads (June 2000 to August 2002).
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• Installation and operation of a longwall unit with a maximum face width to date of 250m and associated development workings (August 2002 to date).
The mine is supported by surface facilities principally located off Middle Falbrook Road and within the former North Pit void.
The Integra Underground produces a high quality, semi-hard coking coal for the export market, with the current approved production level set at 4.5 Mtpa of ROM coal.
As part of a separate application (MP 08_0101), Integra proposes to consolidate the existing approvals pertaining to its underground operations and extend current underground mining operations. Planned future operations which are the subject of MP 08_0101 include:
• progressive longwall extraction of coal from the Hebden and Barrett seams;
• first workings within areas of the Hebden, Barrett and Middle Liddell seams which are not amenable to mining by longwall methods;
• the ongoing use of the existing surface facilities/infrastructure at the Underground (including facilities/infrastructure which have been approved but not yet installed); and
• the long-term use of the existing surface facilities/infrastructure at the Integra Open Cut (e.g. CHPP and train loader and associated facilities).
2.2.3 Open Cut and Underground Interaction The Integra Open Cut and Integra Underground and are two distinct operations. However, a number of activities are integrated or jointly undertaken including the management of water; coal handling and preparation; the management of coarse and fine rejects, and the transport of product coal. Both the Integra Open Cut Project and the Integra Underground Project allow for a continuation of these practices. ICO is responsible for the management of both the Integra Underground and Open Cut operations.
Notwithstanding that the Integra Underground Project is not yet approved, the assessments of all cumulative impacts undertaken as part of this environmental assessment have incorporated the predicted impacts associated with that proposal.
Figure 2-1 provides an indicative schedule of key operational activities at the Open Cut and Underground operations.
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2.2.4 Mining Tenements Two Coal Leases (CL357 and CL382), four Mining Leases (ML1437, ML1518, ML1551 and 1630), and two Authorisations (A440 and A81) issued to Integra or its associated companies by the Department of Primary Industries – Mineral Resources or its predecessor Departments, are of relevance to the Open Cut Project. Details of each of these tenements, including the area, current expiry dates and the tenement holders, are presented in Table 2-1. Figure 2-2 shows the location of the relevant tenements. As appropriate, applications will be lodged by the appropriate parties to the Department of Primary Industries – Mineral Resources to extend the tenure of these tenements.
Integra does not hold rights to the surface or to a depth of 20m across approximately 587ha of the 1,667.5ha covered by CL357 as shown in Figure 2-2. An application for a Mining Lease to cover the land within the Open Cut Project Area subject to the surface exemption and depth restrictions, together with that component of the Open Cut Project Area within Authorisation 81 (A81), will be submitted to DPI.
Table 2-1 Mining Tenements Relevant to the Open Cut Project
Lease Area (ha) Expiry Date Notes CL357 1,667 27.03.2011 Lease held by Camberwell Coal Pty Ltd.
Excludes the surface to a depth of 20m over 587ha.
CL382 4,070 11.11.2012 Lease held by VALE Australia (GC) Pty Ltd, Maitland Main Collieries Pty Ltd, JFE Steel Australia (GC) Pty Ltd, JS Glennies Creek Pty Ltd, NS Glennies Creek Pty Limited and POS-GC Pty Ltd.
ML1437 14.8 27.03.2011 Lease held by VALE Australia (GC) Pty Ltd, Maitland Main Collieries Pty Ltd, JFE Steel Australia (GC) Pty Ltd, JS Glennies Creek Pty Ltd, NS Glennies Creek Pty Limited, POS-GC Pty Ltd. Encompasses part of Integra Underground Portal Area.
ML1518 9.6 27.03.2011 Lease held by VALE Australia (GC) Pty Ltd, JFE Steel Australia (GC) Pty Ltd, Maitland Main Collieries Pty Ltd, JS Glennies Creek Pty Ltd, NS Glennies Creek Pty Limited, POS-GC Pty Ltd. Encompasses part of Integra Underground Creek Portal Area.
ML1551 43.13 27.03.2011 Lease held by VALE Australia (GC) Pty Ltd, Maitland Main Collieries Pty Ltd, JFE Steel Australia (GC) Pty Ltd, JS Glennies Creek Pty Ltd, NS Glennies Creek Pty Limited, POS-GC Pty Ltd. Encompasses part of the North Open Cut Haul Road E and the RL100 Stockpile Area.
ML1630 18.13 16.03 2030- Lease held by VALE Australia (GC) Pty Ltd, Maitland Main Collieries Pty Ltd, JFE Steel Australia (GC) Pty Ltd, JS Glennies Creek Pty Ltd, NS Glennies Creek Pty Limited and POS-GC Pty Ltd. Encompasses a section of CL382 with a restriction on mining related activities from
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the surface to a depth of 20m A81 490 16.12.2009 Held by Navidale Pty Ltd, Toyota Tsusho
Coal (Australia) Pty Ltd, Toyota Tsusho Mining (Australia) Pty Limited. Embraces the surface and to unlimited depth.
A440 230 16.12.2009 Held by Camberwell Coal Pty Limited. Embraces the surface and to a depth of 20m. Overlies CL357.
2.2.5 Environmental Management Environmental management at the Integra Coal Open Cut, including the implementation of all relevant approval, licence and lease conditions, is the responsibility of the Operations Manager. The Health, Safety, Environment, Community and Training Superintendent is responsible for managing all day to day environment related matters in accordance with the site’s overall environmental management system. The existing system will be updated to reflect the commitments and conditions of consent associated with this Project Application and Environmental Assessment.
An important component of environmental management at the Integra Open Cut is the ongoing development and use of the documentation required by the Department of Primary Industries and the Department of Planning, including the Mining Operations Plan (MOP), the Annual Environmental Management Report (AEMR), and various Environmental Management Plans as discussed below.
Mining Operations Plan
The current MOP (Camberwell Coal Pty Limited 2005) covers the period 1st January 2005 to 31st December 2009 and relates to activities associated with continued mining of the South Pit, completion of dumping in the North Pit and rehabilitation of the North Pit. An amendment to the MOP was submitted to the Department of Primary Industries – Mineral Resources in December 2008 to reflect changes in the mine plan; the construction of a haul road to the North Open Cut; installation of the approved overland conveyor between the Integra Underground portal area and the CHPP Area, and the use of a new tailings emplacement facility. The new tailings emplacement facility, TD3, is also known as dam D2.
A new MOP or an update to the existing MOP, accepted by the Department of Primary Industries, would be required prior to the commencement of mining within the Extended South Pit. The MOP would provide a greater level of detail with respect to mining operations, rehabilitation and site environmental management than this Environmental Assessment, as well as including any additional procedures or management controls required to meet approval conditions.
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Environmental Management Plans and AEMR
The Environmental Management System at the existing Integra Open Cut comprises Policies, Procedures and Environmental Management Plans developed in accordance the conditions identified in DA86/2889 (as modified). Management plans currently specified in DA86/2889 are as follows.
• Land Management Plan
• Landscaping and Land Use Management Plan
• Erosion and Sediment Control Plan
• Dust Management Plan
• Noise Management Plan
A series of separate management plans and monitoring programs relating to the North Open Cut Project, together with their required content and timing for submission, e.g. prior to commencement of operations; within three months of approval etc, are identified in DA 06-0073 and include:
• Noise Management Program;
• Construction Noise Management Plan;
• Road Closure Management Plan;
• Blast Monitoring Program;
• Air Quality Monitoring Program;
• Water Management Plan (including a Surface and Groundwater Monitoring Programs and Surface and Groundwater Response Plans);
• Landscape Management Plan (including a Rehabilitation and Offset Management Plan and Mine Closure Plan);
• Aboriginal Heritage Management Plan;
• Construction Traffic Management Plan;
• Greenhouse and Energy Efficiency Plan; and
• Environmental Management Strategy.
Each of the management plans and programs is designed to be a concise, effective and auditable management tool; to draw and expand upon previously submitted information and the outcomes of subsequent investigations pertaining to each component of the environment, and remain consistent with the content and intent of the relevant approval.
Each year, in accordance with the conditions within its mining lease, Integra prepares an Annual Environmental Management Report for the existing Open Cut which presents a record of the environmental and operational performance during the preceding 12 months; a comparison of the actual as opposed to predicted impacts; monitoring results and an evaluation of the effectiveness of its environmental management controls. The content and structure of the AEMR follow the requirements of the NSW Department of Primary Industries – Minerals (DPI) document entitled “Guidelines and Format for the Preparation of an Environmental Management Report” (January 2006) and also address specific aspects identified in the Development Consent. A similar document will be prepared for the North Open Cut.
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The AEMR is currently submitted to the Department of Planning, Department of Primary Industries, Singleton Shire Council and the Community Consultation Committee representatives.
Should the Open Cut Project be approved, it is envisaged that a single set of environmental management plans and monitoring programs would be developed which amalgamate the content of the existing documents and also address the specific content requirements within the Project Approval. It is also envisaged that a single AEMR would be prepared and submitted to the relevant stakeholders.
2.3 Alternatives Considered The nature and extent of proposed activities within the Extended South Pit component of the Open Cut Project Area (i.e. those specific activities not covered by any existing Development Consent or Planning Approval) and, in particular, the delineation of the Mine Area, has followed a series of feasibility and constraints identification studies, with the alternatives examined principally relating to:
• alternative open cut pit sizes;
• alternative mining methods;
• alternative mining sequences;
• alternative waste rock emplacement designs;
• alternative ROM coal transportation methods; and
• the Do Nothing option.
Each of the above alternatives is outlined in the following sub-sections.
2.3.1 Alternative Open Cut Pit Sizes The proposed Mine Area as shown in Figure 1-3 represents the outcome of an iterative process which commenced with an infill drilling program to define an economic pit limit down-dip of the existing South Pit, and was then refined based on the outcome of environmental or feasibility constraints identification studies.
Although the data from the exploration drilling initially indicated an economic pit limit which extended beyond that ultimately adopted, the following constraints were identified which led to the adoption of the preferred pit outline.
• The presence of the Main Northern Railway Line to the north.
• The presence of the New England Highway to the south-west and the necessity for Highway closure should mining or blasting progress closer than 500m.
• The presence of Quaternary alluvium associated with Glennies and Station Creeks as shown in Figure 2-3, and the current DWE guideline which requires that that open cut mining be offset a minimum 150m from the edge of the identified alluvial deposits to avoid potential interconnection effects (DIPNR, 2005).
• The presence of a geological washout zone to the south. Within the washout zone which extends through the southern woodland abutting the Rix’s Creek lease, several of the economic coal plies present elsewhere have been washed out and replaced by hard, sedimentary rock.
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Alluvium associated withGlennies Creek and Station Creek
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A further constraint which may affect the ultimate pit size is the privately-owned Dulwich property (Figure 1-2). In the event that Integra is unable to acquire Dulwich or formulate an agreement with the owner which would enable mining to progress through the property, mining would be limited to the area to the south referred throughout this Environmental Assessment as the “Part Pit Extent”.
2.3.2 Alternative Mining Methods
Underground Mining
Investigation drilling and reporting on the viability of an underground operation was undertaken by Camberwell Coal in 2003. An underground operation was ruled out as the 12 coal horizons within the proposed Pit are generally thin, include up to 26 plies in multiple splits and are relatively close to the surface, making open cut mining the only viable method of mining and maximising resource utilisation.
Dragline Mining Methods
Open cut dragline mining methods were considered but ruled out for the following reasons.
• Insufficient highwall strike distance to provide continuity of operation of a dragline.
• The multi ply nature of the deposit adversely impacted on the cost efficiency of this method of mining due to the increased time spent on equipment relocations or time lost awaiting the provision of blasted ground.
• The high capital cost of a dragline could not be recovered within the 9 year mine life.
2.3.3 Alternative Mining Sequences The economics of the planned mining activities are largely driven by the number of trucks required to move the waste materials and deliver the raw coal to the CHPP. A number of mining sequences were considered including:
i) commencing mining in the south of the Mine Area and progressing north;
ii) commencing mining in the north of the Mine Area and progressing south;
iii) commencing mining in the middle of the Mine Area, progressing north, then south.
Option (i) was readily discounted as it would require the commencement of mining at the down-dip (deepest) point of the Mine Area and necessitate a larger active mine and waste dump area, a substantial elevation of the overburden emplacement external to the Mine Area and an increase in potential noise and air quality impacts.
The most economically viable option generated (Option ii) involved mining to the northern and western extents of the proposed Pit (from the northern limit of the existing approved South Pit and then advancing the mine in a southerly direction and placing waste within the void created. This sequence would present a number of benefits including:
• shorter waste material truck hauls with resulting lower waste material handling cost, increased equipment productivity and, consequently, reduced noise and air quality impacts;
• a smaller active mine and waste dump area as the existing South Pit void would be more easily accessed. Smaller active areas would also reduce the area potentially exposed to wind erosion and dust generation and dispersal;
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• concentration of the overburden and coal equipment in a single area instead of a split operation in Years 4 - 6 as currently proposed due to space constraints in the pit; and
• an accelerated rehabilitation programme as areas of waste rock emplacement would reach their final extent earlier in the mine life.
However, Option ii is reliant on Integra acquiring Dulwich or coming to an agreement which would enable mining to progress.
Should Dulwich be acquired prior to the commencement of the planned mining activities, the preferred option (Option ii) would be adopted. However, should Dulwich not be acquired, the mining activities would follow the less desirable sequence involving commencement in the middle of the western side of the existing South Pit and then progressing in a northerly then southerly direction (Option iii). Given the current uncertainty with respect to Dulwich ownership at the commencement of the proposed mining activities, where appropriate this latter, less desirable sequence (Option iii) has been adopted when assessing the impacts of the proposal.
2.3.4 Alternative In Pit Waste Rock Emplacement Design A number of waste rock emplacement design variations were considered during the project planning and design phase, each involving no disturbance of land for out-of-pit emplacements; initial overburden and interburden emplacement within and over the South Pit area, and subsequent waste emplacement into the mined-out components of the proposed Pit.
Initial waste rock emplacement designs also considered the potential use of the final open cut void as a tailings and coarse reject storage for the ongoing Integra Underground operations following the cessation of open cut mining. As the final void is to be positioned in the south-western, down-dip corner of the proposed Pit, its longer term use as a reject storage was considered to be sub-optimal and likely to be compromised by the demand for a long term water storage facility. The emplacement design studies then examined alternative long term tailings and coarse reject storages and the design submitted as part of this application now includes a nominal 10 million cubic metre void adjacent to the bridge over the Main Northern railway line for placement of tailings and coarse rejects following the cessation of open cut mining. The adopted extent, form and elevation of the emplacement presented in this EA is assessed to be the most desirable compromise from an operational, aesthetic, post-mining landform, land use and environmental perspective.
2.3.5 Alternative ROM Coal Transport Methods The proposed method of ROM coal transport identified in this EA involves using the existing coal haul road and coal haul trucks to haul coal from the mining faces up and out of the Extended South Pit to the rail bridge spanning the Main Northern Railway line and on to the existing ROM dump hopper or ROM coal stockpile at the CHPP. Coal haulage by conveyor was considered and discounted at this time for the following reasons.
• Coal haulage by conveyor from the coal face is not practical in a thin seam, multi ply operation due to the frequently changing coal face locations.
• The depth of coal plies would require multiple transfer points and switchbacks to achieve an acceptable grade from the bottom of the pit.
• With a mine life of up to 9 years, there is an insufficient payback period to recover the high capital cost of an overland conveyor.
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Re-evaluation of coal haulage by conveyor over all or part of the route may, however, be reconsidered in the event of changed economic circumstances, and implemented if viable at that time.
2.3.6 ‘Do Nothing’ Option The ‘do-nothing’ option would leave a large reserve of coal unmined within the area of Coal Lease 357 and, as such, would be contrary to the objectives of DPI - Mineral Resources, and Integra’s obligations under the terms of its mining tenements, to maximise resource utilisation. Furthermore, if the Open Cut Project does not proceed, Integra’s customers will source their coal elsewhere on the global coal market and the potential benefits of the project to Integra and its joint venture participants, together with those to the local area, the region and to the State and Commonwealth, will not eventuate (refer Chapter 16 Socio-Economic).
Additionally, a failure to continue coal extraction following the cessation of extraction within the existing South Pit would not maximise the potential benefits to be accrued from the investment to date, utilise the established infrastructure and the knowledge of local geological and mining conditions developed during the South Pit operations. Accessing the resources at a later date is unlikely to be economically viable due to the significant costs associated with re-establishing infrastructure and services to facilitate access to the coal. That is, should an approval not be granted, the coal resource would likely be sterilised and mining activities at the existing approved Integra Open Cut would cease by mid 2010.
