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Cornwall Coal: Cullenswood 2 Environmental Effects Report

458.086 Revision 3 Appendices

APPENDIX A

CULLENSWOOD NO 2 MINE EVALUATION

TOTAL MINING MANAGEMENT SERVICES

Report

Cullenswood No 2 Mine Evaluation

Draft

Prepared for: Cornwall Coal

Date: 10 July 09

Project No: CWC 342

Report No: CWC 342-004

Palaris Mining Pty Ltd

PO Box 1225 Newcastle NSW 2300 Australia

Tel. +61 2 4927 5511 Fax + 61 2 4927 5522 Email [email protected]

Website www.palaris.com.au ABN 13 093 424 867

REPORT TO: Cornwall Coal

ATTENTION: Michael Bevan

PROJECT: Cullenswood No 2 Mine Evaluation

REPORT NO: CWC 342-004

DATE: 13 July 09

. John Pala MANAGING DIRECTOR

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Cornwall Coal Cullenswood No 2 Mine Evaluation

Table of Contents The Report............................................................................................................................................4 Executive Summary ............................................................................................................................5 1 Location and Tenement ............................................................................................................6 1.1 Location ....................................................................................................................................6 1.2 Tenement..................................................................................................................................6 2 Geological Model .......................................................................................................................8 2.1 Borehole Data..........................................................................................................................8 2.2 Topographic Surface ..............................................................................................................8 2.3 Base of Weathering.................................................................................................................8 2.4 Stratigraphy ..............................................................................................................................8 2.5 Structure ....................................................................................................................................8 2.6 Modelling ..................................................................................................................................8 2.7 Seam Thickness ........................................................................................................................8 2.8 Seam Quality............................................................................................................................9 3 Resource Estimation..................................................................................................................21 4 Box Cut Location.......................................................................................................................23 5 Recommendations ...................................................................................................................25 Appendix A........................................................................................................................................27 Seam Profiles from Harefield Report ..............................................................................................27

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The Report This Report has been produced for the sole use of Cornwall Coal as part of the Cullenswood No 2 Mine Evaluation. No other use or reproduction of any part of this report is permitted without prior written consent of Palaris Mining Pty Ltd and Cornwall Coal. The contents of this report are confidential.

Report Status Name Date Version Author Heath Shepherd 10 July 09 2 Peer Review by Rebecca Jackson 13 July 09 3 Draft issued to Michael Bevan 13 July 09 5 Final Review Final issued to

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Executive Summary Palaris was asked to examine the Cullenswood 2 area and estimate the resource on the data supplied. Palaris was asked to do the following only considering the E3 seam:

Find out if there is a workable deposit (+80,000 tonnes at a stripping ratio less than 15 to 1)

Estimate the size of the deposit at a ratio of 15 to 1 or less Indicate the best place to put the initial box cut in

The geology from boreholes was modelled and a resource of 437,000 tonnes of coal was estimated for the E3U Seam and 128,000 tonnes of coal for the E3L Seam.

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1 Location and Tenement

1.1 Location The Cullenswood 2 area is located approximately 5km southwest of St Marys Tasmania.

1.2 Tenement The Cullenswood 2 area is within the 1698P/M Mining Lease (Figure 1.1), it is wholly owned by the Cornwall Coal Company Pty Ltd. It was granted on the 20 September 1999 and expires on the 20 September 2009.

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Figure 1.1 Location Plan of the Cullenswood 2 and Cullenswood 3 Tenements

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2 Geological Model

2.1 Borehole Data The borehole data was provided by Cornwall Coal Company from recently drilled CW series boreholes and from The Shell Company of Australias Harefield reports. All collar and seam interval data was entered into the Minex borehole database; quality has been excluded at this stage. Three control holes have also been entered into the model to better represent the location of the E3 Seam subcrop in the Cullenswood 2 area.

2.2 Topographic Surface Topographic data was sourced from SRTM Shuttle data, downloaded on the 3 April 2009. This was gridded within Minex to create a topographic surface.

2.3 Base of Weathering Base of weathering data was collected from the boreholes in the Harefield reports and additional CW series boreholes. This data was used to create a thickness of weather grid from the surface to the base of weathering. This grid was subtracted from the topographic grid to create a level (base) of weathering grid. Because of the wide drill hole spacing this is likely to be inaccurate in areas. Currently the base of weathering in the Cullenswood 2 area is estimated from borehole data to be between 3 and 9 meters.

2.4 Stratigraphy Five Seams have been recognised across the area, these are in stratigraphic order (from base) the DF, UN2, E3, E2 and DE Seams. A cross section of the seams present in the Cullenswood 2 area is illustrated in Figure 2.1 to Figure 2.6.

2.5 Structure Five faults have been recognised in the Cullenswood 2 area. These faults consist of an approximately east-west trending graben structure in the west of the exploration lease and a series of three north east-south west trending faults in the east. There are no significant igneous bodies identifiable in the exploration area.

2.6 Modelling Minex was used to model the seams, all seams were set to exist in each borehole and then were interpolated to estimate seam height and thickness. Grids of this model were then used to create a subcrop plan (Figure 2.7), which is where fresh coal is estimated to start and a strip ratio plan (Figure 2.8).

2.7 Seam Thickness

(i) DF Seam The DF Seam has been modelled with DFL and DFU seam splits. The average thickness of the DFL Seam is 0.16m and the average thickness of the DFU Seam is approximately 0.39m within the modelled area.

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(ii) UN2 Seam The UN2 seam has an average thickness of 0.27m in the modelled area. The maximum thickness of this seam is modelled at 0.44m.

(iii) E3 Seam The E3 Seam has been modelled to split into the E3U and E3L Seams. The average seam thickness for the E3L Seam is modelled at 0.26m with a maximum thickness of 0.30m recorded. The average modelled thickness for the E3U Seam is recorded at 0.87m within the modelled area. The maximum modelled thickness of the E3U Seam is 1.00m.

(iv) E2 Seam The E2 Seam has been modelled to split into the E2U and E2L Seams. The E2L and E2U Seams have an average modelled seam thickness of 0.38m and 0.29m respectively. Maximum thicknesses are reported at 1.29m for the E2L and 1.01m for the E2U Seam.

(v) DE Seam Average seam thicknesses for the DEL and DEU Seams are modelled to be 0.36m and 0.97m respectively.

2.8 Seam Quality Coal quality data within the Cullenswood 2 area is virtually non-existent. Coal quality results discussed below are derived from boreholes lying mostly outside of the Cullenswood 2 area, and as such are indicative only.

(i) DF Seam The DF Seam has not been sampled near the Cullenswood 2 lease area; all samples are approximately 700m north east of the current area. The profile in the Harefield report (Appendix 1) shows a seam with one stone band, the average raw ash for this seam appears to be around 42% (a.d.) but is likely to be different in the Cullenswood 2 and 3 areas.

(ii) E3 Seam There is only one hole in the area that contains any quality data for E3 Seam (GY080). In this borehole the E3 seam has a raw ash of 23.3% (a.d.). Looking at a profile of this seam which was provided in the Harefield Report for borehole GY134 (east of the current open cut operation) the E3 Seam has a couple of small stone bands dissecting it.

(iii) E2 Seam There is only one hole in the area that contains any quality data for the E2 seam (GY080). In this borehole the E2 seam has a reported raw ash of 47.8% (a.d.). Regarding the profile of this seam (Appendix 1) in the Harefield Report for borehole GY134 (east of the current open cut operation) the E2 seam has a dirty roof which is unlikely to be mined. Since the quality for GY080 was whole seam sampled it is hard to determine whether a better mining section of the E2 is available. Borehole logging data for the boreholes is rather limited in the Harefield reports so it is difficult to see if the dirty roof was left out of the sample.

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(iv) DE Seam The DE seam profile in the Harefield Report (Appendix 1) shows a seam bisected by two small stone bands, with a dirty stony floor. A preferred section has been selected in this profile. The seam has only been sampled around the current Cullenswood 1 area. The borehole samples show a wide variability in the raw ash (22 53%) (a.d.). The seam quality in the Cullenswood 2 and 3 areas is unknown.

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Figure 2.1 Cross Section 1 across the Cullenswood 2 Area

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Figure 2.7 Seam Subcrop Plan of the Cullenswood 2 Area displaying the E3, E2 and DE Seams

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Figure 2.8 Strip Ratio Plan (cubic metres: cubic metres) of the Cullenswood 2 Area

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Figure 2.9 Seam Thickness of the E3U Seam in the Cullenswood 2 Area

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Figure 2.10 Seam Thickness of the E3L Seam in the Cullenswood 2 Area

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3 Resource Estimation Resources for the E3U and E3L have been calculated within the Cullenswood 2 lease. A polygon identifying the resource area was created from the E3 subcrop to the 1:15 strip ratio cut off (Figure 3.1). Total E3U and E3L seam resources within this area are presented below in Table 3.1. These resources are not JORC compliant due to a lack of quality data in the area and are an estimate of the potential only. Relative Density values are an estimate based on historical values in the vicinity of the Cullenswood 2 area.

Seam WASTE COAL STRIP RATIO (m3:tonnes) Volume

(m3) Thick (m)

Tonnage (tonnes)

Thick (m)

RD Area (m2)

Increm. Accum.

E3U 2,345,658 5.9 437,674 0.76 1.45 395,936 5.4 5.5 E3L 26,437 0.1 128,815 0.22 1.45 397,500 0.2 4.8

Table 3.1 Resource Estimation E3 Seam Cullenswood 2 area

The E3 resources in the Cullenswood 3 area were also estimated by request and can be seen below in Table 3.2.

Seam WASTE COAL STRIP RATIO (m3:tonnes) Volume

(m3) Thick (m)

Tonnage (tonnes)

Thick (m)

RD Area (m2)

Increm. Accum.

E3U 314,857 3.7 82,305 0.66 1.45 85,418 3.8 5.8 E3L 10,208 0.1 26,154 0.21 1.45 86,099 0.4 5.1

Table 3.2 Resource Estimation E3 Seam Cullenswood 3 area

The 15:1 (m3:m3) cut off is a vertical ratio defined by topography; using this line to cut off resources we get an average of 8m3:m3 (or 5.5:1m3 : tonnes) overall pit ratio for the E3U Seam in the Cullenswood 2 area.

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Figure 3.1 Resource Area Plan of the Cullenswood 2 and Cullenswood 3 Area

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4 Box Cut Location In consultation with Dave Lennard, also from Palaris Mining, it is proposed the best location for the initial box cut would be in the north eastern corner (Block 01) of the lease mining down dip between the approximately north-south trending fault lines (Figure 4.1). This location assumes mining is not permitted in the eastern low strip ratio area and that future mining may be permitted in the triangular Cullenswood CW3 area. This strategy would allow mining to proceed into the CW3 area as approval was gained. A suggested strategy of mining has been outlined with a mining sequence from 01 to 07 displayed. This sequence targets low strip ratio coal and allows final highwall refinement as further exploration better defines the limits. Out of pit dumping has been suggested to occur on the eastern and north eastern extents of the Cullenswood 2 area (Figure 4.1).

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Figure 4.1 Mining Sequence Plan of the Cullenswood 2 and Cullenswood 3 Area

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5 Recommendations

With regard to new boreholes; lox line drilling in the vicinity of borehole CW3 may further constrain the extent of the barren area modelled within the Cullenwood 2 lease. Geophysical logging of boreholes may give better control over seam correlations within the exploration lease. Coal quality analysis of the E3 Seam should also be undertaken to further investigate the quality of the resource.

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References LANDSAT (Downloaded 2009) SRTM Shuttle Data.

WOLLFF, I. (1982) Harefield Geological Report - EL 5/61.

WOLLFF, I. (1982) Harefield Interim Geological Report - Tasmania EL 5/61.

STEFFANI, G. (2009) CWC 342-001 Cullenswood No 2 Mine Evaluation

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Appendix A

Seam Profiles from Harefield Report

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APPENDIX B

CULLENSWOOD CORE SAMPLES

REFERENCE NUMBER : HV1323328

REPORT TITLE : Cullenswood Core Samples

CLIENT NAME AND ADDRESS : Mr Scott GrayCORNWALL COAL COMPANYPO Box 402Fingal, TAS, 7214

DATE SAMPLED : See Report

SAMPLED BY : Cornwall Coal Staff

DATE SAMPLES RECEIVED : 14-Sep-09

DATE SAMPLES ANALYSED : 14-Sep-09 to 29-Sep-09

REPORTED BY : Doug HammentManager and Senior Coal Technologist

DATE REPORTED : 30-Sep-09

REPORT STATUS : Draft

ISSUED BY : Doug HammentManager and Senior Coal Technologist

SIGNATURE :

Maintaining Leadership through Innovative Technology and ServiceThis report shall not be reproduced except in full

BUREAU VERITAS INTERNATIONAL TRADE4 ENTERPRISE CRESCENTMAISON DIEU ESTATE SINGLETON NSW 2330TEL(02) 65711033FAX(02) 65711099

This document is issued in accordance with NATAs accreditation requirements.Accredited for compliance with ISO/IEC 17025.Corporate Accreditation Number: 1805Site Number: 14329

Bureau Veritas International Trade HV 1323328 Page 1 of 8

ORIGIN: Cornwall CoalDESCRIPTION: Cullenswood Core Samples REF.No: HV1323328REPORTED TO: Mr Scott Gray DATE REC'D: 14/9/09

(ad) (db)

Moisture (%) 3.4 Ash (%) 15.1 15.6

Volatile Matter (%) 30.2 31.3Total Sulphur (%) 0.60 0.62Calorific Value (Mj/kg ad) 27.00 27.95 (Sulphur corrected)

Deformation (oC) 1560+Spherical (oC) 1560+Hemispherical (oC) 1560+Flow (oC) 1560+

SiO2 57.1 Al2O3 34.5 Fe2O3 4.1 TiO2 0.70 CaO 0.62 MgO 0.93 Na2O 0.60 K2O 0.33 P2O5 0.08

Mn3O4 0.03 SO3 0.10 BaO


(ad) (db)

Moisture (%) 3.1 Ash (%) 16.0 16.5




Mn3O4 0.02 SO3 0.32 BaO


(ad) (db)

Moisture (%) 3.0 Ash (%) 19.9 20.5




Mn3O4 0.05 SO3 0.13 BaO 0.01 SrO 0.02 ZnO 0.03 V2O5 0.03

Core CW 04 - 14.45 to 15.00m

Ash Fusion Temperatures (Reducing Atmosphere)

Ash Analysis (%dry basis)




(ad) (db)

Moisture (%) 3.4 Ash (%) 12.9 13.4




Mn3O4 0.04 SO3 0.17 BaO


(ad) (db)

Moisture (%) 2.7 Ash (%) 13.6 14.0





Core CW 14 - 6.00 to 6.55m






(ad) (db)

Moisture (%) 3.0 Ash (%) 14.4 14.8


Deformation (oC) 1400Spherical (oC) 1440Hemispherical (oC) 1480Flow (oC) 1540




Core: CW 14 - 9.85 to 10.15m




ORIGIN: Cornwall CoalDESCRIPTION: Cullenswood Core Samples REF No : HV1323328REPORTED TO: Mr Scott Gray Date Rec'd : 14/09/09

The highlighted Standards will have been used for this report

Reference ReferenceNumber Description

AS 1038.1 Higher rank coal - Total Moisture

AS 1038.3 Proximate analysis of higher rank coal

AS 1038.5 Gross Calorific Value of coal and coke - Automatic isothermal-type Calorimeters

AS 1038.6.1 Ultimate analysis of higher rank coal - Determination of Carbon and Hydrogen

AS 1038.6.2 Ultimate analysis of higher rank coal - Determination of Nitrogen

AS 1038.6.3.3 Ultimate analysis of higher rank coal - Determination of Total Sulphur (Infrared method)

AS 1038.9.3 Coal and Coke - Phosphorus - Ash Digestion Method

AS 1038.11 Coal - Forms of sulphur

AS 1038.12.1 Higher rank coal - Caking and coking properties - Crucible swelling number

AS 1038.15 Higher rank coal ash and coke ash - Ash fusibility

AS 1038.20 Higher rank coal - Hardgrove grindability index

AS 1038.21.1.1 Higher rank coal and coke - Relative density - Analysis sample / density bottle method

AS 1038.23 Higher rank coal - Carbonate carbon

AS 3881 Size analysis - higher rank coal

AS 4156.1 Higher rank coal - Float and sink testing

AS4264.1 Higher rank coal - Sampling procedures

AS1038.12.4.1 Higher Rank Coal - Gieseler Fluidity

Disclaimer: Bureau Veritas International Trade does not take any responsibility for the results reported for any sample collected by another party. The results in this report relate only to the items being tested





APPENDIX C

PLANNING PERMIT APPLICATION

Planning Permit Application

ForCornwall Coal Company Pty Ltd

January 2009 Revision 0

Project No: 458.086

F 100 05, Revision 11, 20 October 2009


0458.086 Revision 0 Authorisation

REPORT ISSUE AUTHORISATION PROJECT: Planning Permit Application Project No: 458.086 AUTHOR: Geoff Davis

Date Purpose of Issue/Nature of Revision

Rev Reviewed by

Issue Authorised

by 18/01/2010 Revision 0 0 GD/JA GD

This Report has been prepared in accordance with the scope of services agreed upon between SEMF Pty Ltd (SEMF) and the Client. To the best of SEMFs knowledge, the report presented herein represents the Clients intentions at the time of printing of the report. However, the passage of time, manifestation of latent conditions or impacts of future events may result in the actual contents differing from that described in this report. In preparing this report SEMF has relied upon data, surveys, analysis, designs, plans and other information provided by the client, and other individuals and organisations referenced herein. Except as otherwise stated in this report, SEMF has not verified the accuracy or completeness of such data, surveys, analysis, designs, plans and other information. No responsibility is accepted for use of any part of this report in any other context or for any other purpose by third parties. This report does not purport to provide legal advice. Readers should engage professional legal advisers for this purpose. SEMF Pty. Ltd Level 2, 162 Macquarie Street, Hobart 7000: GPO Box 897 Hobart 7001 Tasmania Australia ACN 117 492 814 ABN 24 117 492 814 Telephone: (61 3) 6212 4400 Facsimile: (61 3) 6212 4475 Email: [email protected]


0458.086 Revision 0 Contents

CONTENTS

1. INTRODUCTION ................................................................................................. 1 1.1 PLANNING INSTRUMENT ................................................................................. 1 1.2 LOCATION...................................................................................................... 1 1.3 DESCRIPTION OF DEVELOPMENT .................................................................... 1

2. DESCRIPTION OF SITE ..................................................................................... 5 2.1 DESCRIPTION OF SITE.................................................................................... 5 2.2 ZONING AND DESCRIPTION OF SURROUNDS.................................................... 5 2.3 ROAD ACCESS AND MOVEMENTS ................................................................... 5 2.4 POWER AND TELECOMMUNICATIONS .............................................................. 5

3. STATUTORY AND STRATEGIC PLANNING INSTRUMENTS.......................... 7 3.1 BREAK ODAY PLANNING SCHEME.................................................................. 7 3.2 DETERMINING APPLICATIONS.......................................................................... 7 3.3 USE............................................................................................................... 7 3.4 ZONING ......................................................................................................... 8 3.5 USE CLASSES IN ZONES................................................................................. 9

4. PLANNING SCHEME STANDARDS APPLICABLE IN THE NATURAL RESOURCES ZONE................................................................................................................. 10

4.1 ISSUE 1 SUBDIVISION ................................................................................... 10 4.2 ISSUE 2 STRATA SCHEMES........................................................................... 10 4.3 ISSUE 3 DEVELOPMENT ON AGRICULTURAL LAND ......................................... 10 4.4 ISSUE 4 FORESTRY OPERATIONS ................................................................. 10 4.5 ISSUE 5 MINERAL EXPLORATION AND MINING ................................................ 11 4.6 ISSUE 6 TOURISM DEVELOPMENT................................................................. 11 4.7 ISSUE 7 RESIDENTIAL USE OR DEVELOPMENT............................................... 11 4.8 ISSUE 8 DEVELOPMENT IN AREAS AT RISK FROM NATURAL HAZARDS ............ 11 4.9 ISSUE 9 VEGETATION PROTECTION .............................................................. 11 4.10 ISSUE 10 LAND CLEARANCE......................................................................... 12 4.11 ISSUE 11 ROAD ACCESS AND SET BACKS..................................................... 12 4.12 ISSUE 12 POLLUTION AND WASTE DISPOSAL ................................................ 12

4.12.1 12.1 Discharge of pollutants............................................................... 12 4.12.2 12.2 Impact of emissions ................................................................... 13

4.13 ISSUE 13 INFRASTRUCTURE PROVISION........................................................ 13 4.14 ISSUE 14 ATTENUATION DISTANCES SEPARATION OF INCOMPATIBLE USE OR

DEVELOPMENT ............................................................................................ 13 4.15 CODES ........................................................................................................ 14

4.15.1 Industrial Development Code (13) ..................................................... 14 4.15.2 Car Parking and Access Code (. 14).................................................. 14 4.15.3 Attenuation Distances Code (15) ....................................................... 14 4.15.4 Heritage Code (16)............................................................................. 14 4.15.5 Signs Code (17) ................................................................................. 15 4.15.6 Wetlands and Waterways Code (18) ................................................. 15 4.15.7 Siting of Developments Code (19) ..................................................... 15 4.15.8 Road Asset Code (20)........................................................................ 17 4.15.9 Residential Code (21) ........................................................................ 17 4.15.10 Subdivision and Building in Bushfire Prone Areas Code (22) ........ 17

5. CONCLUSION................................................................................................... 19


0458.086 Revision 0 Contents

FIGURES Figure 1: Land Tenure and Use............................................................................................... 2 Figure 2: Site Plan ................................................................................................................... 3 Figure 3: Proposed mine access route .................................................................................... 4 Figure 4: Ecological Values and Designated Mining Zone ...................................................... 6 PHOTOGRAPHS Photograph 1: Site ................................................................................................................... 5


0458.086 Revision 0 Page 1

1. INTRODUCTION

The Cornwall Coal Company Pty Ltd currently operates the Duncan underground mine, the Blackwood No. 4 underground mine and the nearby Cullenswood open cut mine No 1 operation which, along with the Kimbolton mine at Hamilton, supplies in excess of 450,000 tonnes per annum of coal to Tasmanian industry. The Cullenswood Mine is now close to becoming sub-economic and therefore Cornwall Coal proposes to open a new open-cut mine at site approximately 2km away from the current Cullenswood Mine that will be known as Cullenswood No. 2. Depending on the production rates, the expected mine life for the new operation (Cullenswood No.2 Open Cut) is 5-10 years.

Cullenswood No. 2 will provide an essential source of coal supplemental to that provided by the Blackwood No. 4 mine.

1.1 Planning Instrument

Development and land use is controlled by Break O Day Planning Scheme 1996.

1.2 Location

The subject site is located (GR 594000E 5393000N) on the Break O Day Plains within the Fingal Valley and is generally within the current lease area (Mining Lease No. 1698P/M) for the Cullenswood mine operations. The site is approximately 3.5 km from Cullenswood and approximately 6km from St Marys.

1.3 Description of Development

The site will be mined by using truck and excavator methods. Only one open cut with a maximum depth of 20 metres will be needed to extract the coal. The planned level of production will be based on shortfalls at the Blackwood No. 4 mine but is likely to be 150,000 tonnes per annum over the life of the resource.

Recovered coal will be stockpiled on an area adjacent to the mine haul road. When required, stockpiled coal will be reloaded by front end loader or excavator into road trucks for transportation to the Duncan Washery where it will be finally processed.

Cornwall Coal is seeking to operate the mine from 6.30am to 7pm Mondays to Fridays and 6.30 to 5pm on Saturdays. Cornwall Coal is also seeking 24 hour cartage in order to ensure supply to the Duncan Washery.



Figure 1: Land Tenure and Use



Figure 3: Proposed mine access route



2. DESCRIPTION OF SITE

2.1 Description of Site

The proposed mine is located on a valley floor comprising the Break ODay Plains, sloping up from the Break O day River. The site is relatively flat with a gradual downward slope from a small hillock on the south west to the east.

Drainage lines from the site ultimately reach the Break ODay River which is located approximately 3 km from the site. The Break ODay is a tributary of the South Esk River.

Photograph 1: Site

2.2 Zoning and Description of Surrounds

The zoning is Natural Resources which reflect the use, characteristics and values of the site which is currently used for grazing. The site is bounded to the west and south by native grasslands, plantations and native forest.

2.3 Road Access and Movements Access to the site will be off the Esk Highway using 2.7 km of existing farm road on the Cullenswood Estate. An additional 1.7km of road will be constructed from the existing farm road to access the mine site (see Figure 3).

2.4 Power and Telecommunications

There are no power or telecommunications connections to the site. The proposed use will not require either service.



Figure 4: Ecological Values and Designated Mining Zone



3. STATUTORY AND STRATEGIC PLANNING INSTRUMENTS

3.1 Break ODay Planning Scheme

3.2 Determining applications

In determining an application for a permit, Council must:

(a) seek to further the objectives of the Act; (b) act in accordance with the requirements of a State Policy; (c) give effect to any direction from the Commission under s. 28(1)(a) or

s.41(a) of the Act in accordance with s.51(3) (b) and (c) of the Act; and (d) give effect to all relevant standards and any other requirements specified

in the scheme; and

must have regard to:

(e) the objectives for planning as set out in part A; (f) the objectives of the relevant zone; (g) the objectives of the relevant issues; (h) the intent of any relevant code; (i) any advice, information or recommendation with respect to the

application that it seeks from a person who has the necessary qualifications and experience; and

(j) any representations received as a result of notification under s.57 of any Act.

3.3 Use Under the Break ODay Planning Scheme 1996 the use is defined as Resource Development Use Class which is defined as, Use of land for primary production which involves the use of land for planting, growing, harvesting, processing or extraction, of natural resources. It includes but is not necessarily limited to: farming, commercial forestry, extraction of rocks and minerals and /or the processing of these products. It includes buildings and works directly associated with these uses.



3.4 Zoning

The site is zoned Natural Resources which, encompasses land that is used for resource based industries associated infrastructure and areas that require management to protect the resources on which these industries depend. Objectives of the Natural Resource Zone are to: Encourage the appropriate use and development of areas suitable for forestry, mining, grazing, cropping, horticulture, milk production and other agricultural pursuits. Promote and encourage innovative and appropriate forms of resource development in the zone. Allow for the processing and support facilities directly related to the use and development of resources in the zone. Allow for a range of activities such as tourism which may not be directly related to, but are compatible with, the long term maintenance of the values of the zone. Maintain the scenic, historic and cultural values of the zone. Encourage use and development that integrates conservation of natural and cultural values into agricultural pursuits, particularly protection of remnant vegetation, poorly reserved plant communities and the habitat of rare and threatened species. Provide a basis for protecting the quality and quantity of the resources upon which resource development depends. The resources to be protected include soils, water quality, infrastructure and landscapes. Comment The mine location is determined by the location of the resource and the Natural Resource zone recognises this. The proposed development will be managed to ensure there are no adverse impacts on the environment and the site will be rehabilitated when the resource is extracted.



3.5 Use Classes in Zones

In the Natural Resources zone the Resource Development use is classified as an allowable use. Whether a use or development is permitted or is discretionary depends on whether the use relies wholly or partly on the use of performance criteria applicable to the use or development. Because the proposed development will be relying on some performance criteria it is a discretionary application. Council must refuse a use or development it if it cannot meet the scheme standards. Comment The application will be discretionary as approval relies on meeting performance criteria and it is a level 2 activity. Scheme Standards Applicable in the Zone

Use and Development in this zone is to conform to the following standards; Industrial Development Code (Part D.13) Car parking and Access Code (Part D. 14) Attenuation Distances Code (Part D. 15) Heritage Code (Part D. 16) Signs Code (Part D. 17) Wetlands and Waterways Code (Part D.18)

Siting of Developments Code (Part D. 19) Road Asset Code (Part D. 20) Residential Code (Part D.21) Subdivision and Building in Bushfire Prone Areas Code (Part D. 22)



4. PLANNING SCHEME STANDARDS APPLICABLE IN THE NATURAL RESOURCES ZONE The relevant development issues and standards in the Natural Resources Zone which apply to this development are detailed in the following sections.

4.1 Issue 1 Subdivision

Comment

Not applicable as no subdivision proposed.

4.2 Issue 2 Strata Schemes

Comment

Not applicable as no strata scheme proposed

4.3 Issue 3 Development on Agricultural Land

Objective: To ensure that use or development does not reduce the productive capacity of agricultural land to be used for agriculture and associated activities.

AS 3.1a requires the land classification be identified. The Land Capability Survey of Tasmania shows the site classified as Class 5 land which is not prime land and is only suitable for grazing.

Acceptable Solution 3.1(b) is called up; Non agricultural use or development is not to unreasonably fetter agricultural uses on adjoining land.

The site and surrounds is currently used for grazing. The proposed mine operations will not fetter the surrounding agricultural use. It is noted the mine location is dictated by the location of the resource and the site will be rehabilitated when the resource is exhausted.

4.4 Issue 4 Forestry Operations

Not applicable as no forest clearing or plantation activities will be undertaken.



4.5 Issue 5 Mineral exploration and Mining

Objective: To ensure that the operation of Extractive Industries is carried out with minimal impact on the environment.

Acceptable solutions call up the Wetlands and Waterways Code and Quarry Code of Practice.

Comment

The Wetlands and Waterways Code is dealt with in section 4.14.6. In relation to the Quarry Code of Practice the proposed mine operations will undergo a Level 2 activity approval process and subsequently managed in accordance with any permits issued.

4.6 Issue 6 Tourism Development

Not applicable

4.7 Issue 7 Residential Use or Development

Not applicable

4.8 Issue 8 Development in Areas at Risk from Natural Hazards

Objective: To ensure that natural hazards are identified and addressed at the time of development.

Comment

The identified hazards are flooding and fire, both of which are considered low risk. The area is located in an area of extensive pasture with low fuel loads and water will be available from on site tankers. With regard to flooding, cut off drains will be constructed and water pumped from the pit and drains will be directed to a settling pond before discharging to the Break ODay River. In accordance with the Performance Criteria the works will not increase the level of risk to property or persons.

4.9 Issue 9 Vegetation Protection

Objective: To ensure the natural drainage functions and botanical, zoological and landscape values of rivers and streams is protected by the retention of native vegetation.

Comment

There will be no removal of vegetation which impacts on rivers.



4.10 Issue 10 Land Clearance

Objective: To ensure clearing of vegetation occurs only where it is required as an integral part of an approved use and development and is carried out in such a way as to have minimal impact on the identified values.

Comment

A fauna and flora survey conducted in March 2009 found that the lease area contains native grassland and sedgeland, agricultural land, a hardwood plantation and two threatened flora species. No native vegetation communities listed on Schedule 3A (Threatened native vegetation communities) of the Tasmanian Nature Conservation Act 2002 occur. No ecological communities listed under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 occur.

Clearing of land will be conducted with permit conditions as required under Clause 10.1. (a) (i) however there will be no mine operations near the identified listed flora. Furthermore the mine area will be fenced adjacent to the areas where the threatened flora species were recorded.

4.11 Issue 11 Road Access and Set Backs

Comment

See section 4.14.8 (Road and Asset code).

4.12 Issue 12 Pollution and Waste Disposal

Objective: To protect the quality of receiving waters from point sources of pollution.

4.12.1 12.1 Discharge of pollutants

Comment

Cut off drains will be installed around the perimeter of the disturbed areas of the mine to divert stormwater from the site to a settling pond. Stormwater which enters the pit or disturbed area will also be pumped out to a settling pond before being discharged to the nearest natural water course. Discharging points may vary over the course of the mine life to suit the mining activity.

There is no data on the ground water condition of the site but ground water is often found along coal seams. If it is encountered during extraction it will be pumped to a settling pond before discharge. Should substantial amounts of groundwater occur during mining a ground water study will be undertaken to review mining techniques and impact on the ground water table.

Except in extreme rain periods it is unlikely drainage water will enter the Break O Day River which is approximately 3 km to the north of the site.

Note that the stored overburden will be progressively placed in the worked out areas of the pit as the mine extends.



4.12.2 12.2 Impact of emissions

Comment

Noise will be generated from heavy machinery such as a dozer, loader, trucks and excavator. No blasting is planned.

The only noise impact may be caused by trucks travelling from the proposed mine to the Esk Main Road during the night. This activity may have an impact on the nearest resident (owner of the land) whose house is located approximately 300 metres away from the proposed access road.

Dust from traffic movements to and from the site on unsealed access roads will generate some dust. The unsealed road between Esk Main road and the proposed site passes about 300 metres to the east of the Cullenswood Estate house. In normal conditions vehicle movements should have minimal impacts on the house, however in dry conditions which are often accompanied by westerly winds the dust will be controlled with watering.

No odour emissions are expected to occur.

There will be no controlled or trade wastes generated.

4.13 Issue 13 Infrastructure Provision

Objective: To ensure the cost of providing additional infrastructure to new development is not borne by the community.

Comment

The new access road and any other required infrastructure will be paid for by the company.

4.14 Issue 14 Attenuation Distances Separation of Incompatible use or Development

Objective: To ensure that potentially incompatible use or development is separated by distance sufficient to ameliorate any adverse effects.

Table 15.2 requires a sensitive use to be a distance of 300 metres from a quarry where no blasting, crushing or vibratory screening takes place.

Comment

The nearest house is 2 km from the proposed mine area whilst the next closest residence is 4 km away.



4.15 Codes

4.15.1 Industrial Development Code (13)

Because the development is basically an open cut mine in a rural area the provisions of this code are generally not relevant. The site is not near an urban zone and the site will be rehabilitated after the coal is mined. The loading and parking of vehicles will be done on site in designated areas.

4.15.2 Car Parking and Access Code (. 14)

The car parking code requires 1 car space per 1.5 employees. The car parking requirements will be provided on site and will be minimal as there will be only be 5 employees on site.

4.15.3 Attenuation Distances Code (15)

The objective is to ensure that habitable residences and users of community and recreational facilities are not located within areas likely to be affected by noise, fumes, smoke, or odour emissions.

For a quarry where no blasting, crushing or vibratory screening takes place the attenuation distance to a sensitive use is 300 metres which is easily met.

4.15.4 Heritage Code (16)

An Aboriginal heritage survey has been undertaken over the site and a small number of relics were found. Notwithstanding this if any other Aboriginal heritage sites are discovered in the interim or as part of any future development works, then the Aboriginal Relics Act 1975 will apply for reporting and management purposes. A reporting and management plan has been designed for this purpose.

With regards to European heritage the listed property Cullenswood Estate, is located 2 kilometres from the proposed mine site. The farm road that will be used to access the proposed mine passes approximately 300 metres to the east of the homestead.

Given the location of the homestead and the fact the farm road is currently used to access the existing Cullenswood Mine it is considered unlikely that there will be any adverse impacts on the heritage values due to the mines extraction or transportation activities.



4.15.5 Signs Code (17)

No impact

4.15.6 Wetlands and Waterways Code (18)

This code sets out the objectives and planning scheme standards for wetlands and waterways. Proposals for use or development to which this code applies must demonstrate compliance with the planning scheme standards set out in the code.

The intent of the code is to provide protection for sensitive ecosystems, flow regimes, flora and fauna and their role for flood mitigation, nutrient filtering, as resources for recreational activities and as landscape features.

The issues which need to be addressed are;

works on or near wetlands or waterways. riparian vegetation water quality road and private roadways construction

Comment

The development site is not within 30 metres of a wetland, it will not impact on riparian vegetation and as the stormwater run off will be controlled by cut off drains and settling ponds there will be no impact on water quality or erosion. Access to the site will involve the use of an existing access route as well as the construction of an additional 2.2 kilometres of road. There will be no road crossings constructed across creeks or streams. During construction of the new access road best practice sedimentation measures will be installed.

4.15.7 Siting of Developments Code (19) The intent of the code is to:

a) Provide guidance for applications for use or development in coastal and environmentally sensitive areas.

b) Identify the planning scheme standards for use or development in coastal and

environmentally sensitive areas, and

c) Set out criteria applicable to use or development which has the potential to adversely impact on the natural and heritage values of coastal and environmentally sensitive areas, and

d) Set our requirements for use and development on land reserved under the

National Parks and Reserves Management Act 2002 and the Crown Lands Act 1976.



This schedule applies because the term environmentally sensitive area applies to;

Any land or feature which forms part of the habitat of a threatened species as defined in the Threatened Species Protection Act 1995.

As indicated earlier two flora species have been identified on the site.

Issue 1 Development on Reserved Land

There is no impact on National Parks or Crown Lands.

Issue 2 Protection of Coastal and Environmentally Sensitive Areas.

Objective To ensure that development is sited in locations that do not result in adverse impacts on cultural and natural values in coastal and environmentally sensitive areas.

A field survey conducted in March 2009 found that the study site contains native grassland and sedgeland, agricultural land and hardwood plantation.

No native vegetation communities listed in Schedule 3A (Threatened native vegetation communities) of the Tasmanian Nature Conservation Act 2002 occur in the study site. No ecological communities listed under Section 181 of the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 occurs on the site.

Two flora species listed on the Tasmanian Threatened Species Protection Act 1995 were recorded.

Desmodium gunnii, slick tick trfoil (Vulnerable); and

Scleranthus fasciculatus, spreading knawel (Vulnerable).

No EPBC listed flora species were recorded during the survey.

The sites containing the threatened flora species will be fenced and not mined.

The study also found within the site, habitat for five threatened fauna species. The habitat however which was primarily for foraging was in some cases poor quality probably due to the area being highly modified. Thus the effects of the proposed mine development on the five identified fauna species are not considered to be significant.

The subject site contains no high environmental values, is neither on the skyline, on a slope, on a geo heritage site or coast nor on the boundary of a National Park. It is unlikely to be visible from a tourism road or by the public.



4.15.8 Road Asset Code (20)

The Esk Road between St. Marys and Fingal is classified as a category two road.

Traffic from the site will use the existing access and intersection developed for Cullenswood No.1 mine. The level of traffic will remain the same as currently occurs for the Cullenswood No.1 mine which is a maximum of 4 trucks per hour for transporting coal and five cars used by employees.

A traffic impact assessment completed for the existing mine recommended the installation of signage (T junction, Give Way, speed limit) and the sealing of the first 50 metres of the Cullenswood Estate farm road. These measures have been implemented.

The setback requirements are met as the subject site is more than 50 metres from the road boundary.

4.15.9 Residential Code (21)

Not relevant

4.15.10 Subdivision and Building in Bushfire Prone Areas Code (22)

This code sets out the standards for the design and siting of subdivisions, habitable buildings and associated works in bushfire prone areas. Considering the flat topography and pastoral/grazing nature of the surrounding area the site is considered to have a low bushfire factor.

Issue 1 Subdivision in Bushfire Prone Areas.

No subdivision is to occur and there will be no habitable buildings. As the area is flat, contains no significant vegetation it is not considered to be in a high risk bush fire prone area. Also there will be on site water tankers which can be used for fire fighting purposes.

Issue 2 Access in Bushfire Prone Areas

Objective: Access must be designed to provide for safe access for emergency and other vehicles



The road access to the site will conform to Table 22.3 in the scheme in that it will have an all weather surface and be designed and constructed to accommodate the passing of large coal carrying trucks.

Issue 3 Water Supplies for Fire Fighting in Bushfire Prone area

Objective: To ensure adequate water supplies are always available to defend property from fire.

The mine site will have no permanent buildings. Water tankers and the settling ponds for groundwater runoff will be the only sources of water.

Issue 4 Bushfire Protection for Habitable Buildings in Bushfire Prone Areas

There will be no habitable buildings on the site.



5. CONCLUSION

The planning scheme establishes a series of criteria and standards which a development must meet in order for Council to issue a planning permit. The proposed development is located in the Natural Resources Zone and is permissible as a discretionary use. Subject to meeting various criteria and standards, the development of the resources available within the zone are promoted. As the location of the resource is fixed there is no opportunity to relocate it to another site. As the existing Cullenswood mine will be closed there will not be an increase in traffic. The mine to a large extent will utilise the existing road infrastructure and access onto the Esk Road.

There are no issues which preclude the approval of the proposed use of the site.

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