Government Insights and Tips to Mineral...

www.statedevelopment.sa.gov.au

Government Insights and Tips to Mineral Development

South Australia’s Copper Strategy – Success Seminar6 July 2016

Disclaimer

2Department of State Development

The information contained in this presentation has been compiled by the Department of State Development and originates from a variety of sources. Although all reasonable care has been taken in the preparation and compilation of the information, it has been provided in good faith for general information only and does not purport to be professional advice. No warranty, express or implied, is given as to the completeness, correctness, accuracy, reliability or currency of the materials.

The Department of State Development and the Crown in the right of the State of South Australia does not accept responsibility for and will not be held liable to any recipient of the information for any loss or damage however caused (including negligence) which may be directly or indirectly suffered as a consequence of use of these materials. The Department of State Development reserves the right to update, amend or supplement the information from time to time at its discretion.

Acknowledgement to Country

We would like to acknowledge this land that we meet on today as the traditional lands for the Kaurna people and we respect their spiritual relationship with their country. We also acknowledge the Kaurna people as the custodians of the greater Adelaide region and that their cultural and heritage beliefs are still as important to the living Kaurna people today

Charles MooreDirector – Resources and StrategyDepartment of State Development

House Keeping

Welcome Address

Dr Ted TyneExecutive DirectorMineral Resources DivisionDepartment of State Development

• South Australia’s Copper Strategy was launched on 23 February 2016 by the Premier and Minister for Mineral Resources and Energy

• Major theme of the Strategy is to share insights, ideas, success stories and lessons about copper projects and the broader resources sector, with mining and METS stakeholders to help bring projects into production as soon as practicable

• This is the first seminar of the Success Seminar Series with more planned for later this year

Copper Strategy Success Seminar Series


In Other News

• PACE Copper

• Mineral Development Announcements


Mining Project Approvals

Martin Reid Director, Mining ProjectsDepartment of State Development

Key Points

The most efficient approvals will be achieved by a company that:

Employs a dedicated and skilled project manager

and

Understands the project terrain and aligns company efforts

Mining Approvals


Project Management


• Identify and mitigate risk early Ensure the Government can say yes

• Reduce overall time to operations• Reduce costs and improve project NPV

Some suggestions:1. Employ a specialist project manager. 2. Have them on staff.3. Listen to them, include them and empower them.

Understand the Project Terrain


Decision making through a project lens:


Could this activity impact on my project?

Understanding Government

15Department of State Development John Brack Collins Street 5pm

Understanding Government


Elected Government

DPTI

EPA

DEWNR

C’wealthDoE

Public Service

Department of State Development

Mining Regulation

Tenement Admin

Case Mgmt

Government Regulators and Decision Makers


Some general observations:• Real people with diverse interests• Big responsibilities for competing interests• Witness to the very worst• Under pressure• Not making ‘personal’ decisions• Not expert at everything• Thinking about the long game• Increasing scrutiny when confidence decreases• Wanting to help you succeed

Understand the Project Terrain


time cost

scopequality

risk

Key Points

1. Employ a dedicated and skilled project manager

2. Understand the project terrain and align company efforts

3. Know and understand government

www.minerals/statedevelopment.sa.gov.auwww.statedevelopment.sa.gov.au

Contact

Department of State Development Level 7, 101 Grenfell StreetAdelaide, South Australia 5000GPO Box 320Adelaide, South Australia 5001

T: +61 8 8463 3090M: +61 411 461 281E: [email protected]

Martin ReidDirector – Mining Projects08 8463 3090


EngagementMelissa Muller, DSDTips

Steve McClare & Community RepHillgrove Resources – Building Trusted Relationships

Recent research on engagement


Financial costs of engagement• Good engagement builds a strong

project for future investors, earning a good reputation within the community.

• Poor engagement costs more money and can impact on your ability to raise capital.

Recent research – public perception


Social Atlas - acceptance of mining

https://resources-in-society.cartodb.com/viz/38448dea-1d8d-11e6-988f-0ef7f98ade21/public_map

https://resources-in-society.cartodb.com/viz/38448dea-1d8d-11e6-988f-0ef7f98ade21/public_map

Recent research – public perception


Social Atlas – trust in mining

Recent research on engagement


CSIRO Diagram – National Drivers of Trust and Acceptance• Contact quality develops trust and builds relationships• Perceived procedural fairness

Today’s 3 top engagement tips


• Understand the costs/saving by committing to leading practice engagement and be able influence up and down by selling the benefits of good engagement – whether to the board, the bean counters or the engineers.

• Engage/employ the right people to plan, action, and evaluate leading practice engagement for the project.

• Show respect, listen and put yourselves in your stakeholders shoes, don’t only engage when you need something.


Land AccessMelissa Muller & Andrew Moll, DSDTips

Geoff Deans & Debbie AlexanderOz Minerals - Partnering

Understand existing land use & land rights


• Is it farming land, pastoral, Aboriginal land, national parks?

• Who owns the land, is it sub-let, are there native title rights?

• Value the knowledge a landowner hasof their land.

Early agreement making


• Ensure company representatives with appropriate power to negotiate agreements engage directly with landowners.

• Get to know your landowner early, at exploration stage, and when negotiating access arrangements be aware of your landowners emotional state.

• Engage experts when drafting contracts.

• Landowners want certainty, early agreement making can provide a level of certainty.

Native title process in SA


Part 9B of the Mining Act 1971• Exploration

• Exploration authority can be granted prior to native title mining agreement• Activities that affect native title must comply with Part 9B

• Production • Production tenement cannot be granted until proponent has complied with Part 9B

Keys to success


1. Understand the legislative framework & processes- Part 9B, Mining Act 1971- Aboriginal Heritage Act 1988- timing can be critical

Presenter

Presentation Notes

Peter DeRose and Rian Dutch surveying country during a Heritage Survey (Photo Ian Hopton). You could leave out the names if you want

Keys to success


2. Timely engagement- identify who to speak to- respect governance arrangements- keep people informed, provide feedback and share results

Presenter

Presentation Notes


Keys to success


3. Deliberative & meaningful engagement- work towards common goals- within an understanding of different value and cultural frameworks

Presenter

Presentation Notes


Presented by Jonathan Fatt-Clifton, Board Member & Dean Liebelt Business Development Manager, Geoff Deans, OZ Minerals

Antakirinja Matu-Yankunytjatjara Aboriginal Corporation

(AMYAC) and OZ Minerals

A Partnership

CONTEXT

The AMYAC and OZ Minerals Story• AMYAC Native Title Determination• OZ Minerals - Prominent Hill Mine – maximising

value, vision of future• Sustainable Business Development• Building capacity for 100% owned AMYAC

Businesses• Learning and developing for the future –

sustainable intergenerational change

WHERE WERE WE

Building a relationship by working together: respect, trust, open communication and long term view

What had worked:• Strong governance• Cross Cultural Awareness• Education and training• Employment – Pre Employment Training• Cultural Heritage

The future:• Professional, independent, sustainable business • Business plan• Business resources – Business Development Manager, AMY Nominees Board

AMY – Nominees on behalf of AMYAC aims to pursue business development opportunities for long term sustainability of the organisation with the aim to -

• Return financial profit from business ventures to be usedto benefit the organisation as a whole;

• Address social issues amongst the indigenousmembers of AMYAC and the broader community; and

• To provide training and employment opportunitiesfor community members.

“It is only through wealth creating at both the individual and community level of some basis that improved

standards of health, housing and overall well-being will occur”

WHERE ARE NOW

A.M.Y. Environmental Services Pty Ltd....... Hit the ground running at Prominent Hill on Sept 18th 2015

Operating 12 hours per day 365 days per year• 4 employees (plus AMYACtrainee)• $1.3m worth of plant & equipment

A.M.Y. Environmental Services Pty Ltd

There are no “free kicks” The business must be a commercial competitor first and foremost Set it up contractually correctly from day one –the people you deal with will not always be there A promise in the tender fast turns in to an expectation under the contract Safety, Safety, Safety – Compliance, Compliance, Compliance –Document, Document, Document - its written three times

because its three times as much work as anticipated If winning the tender process is tough – wait for day one of Operations! Open, transparent and regular communication is the premium lubricant for the process Deliver solutions to the client’s needs its way more than just rubbish Would we do it again.................HELL YEAH looking forward to it

LESSON LEARNED

This process has underpinned AMYACbeing able to realise their long-term vision

• Self sustainable and independent business• AMYACas a competitor and contributor as a business • Diversified business• Long term success• AMY Environmental Services –Working ‘on country to look after country’

WHERE DO WE WANT TO BE: OUR VISION

Direct and indirect benefits:

• Training and Skills development for community members

• Employment opportunities in various projects

• Opportunities for other businesses to develop working relationships with AMYAC for future projects

• Increased Social Enterprise where the return to the group is not necessarily returning a financial profit, but a real growth in community and cultural capital.

BENEFITS TO COMMUNITY


Mineral Tenements - Tips

Junesse Martin

General Manager Mineral Tenements/Mining Registrar

Department of State Development

6 July 2016

Engage with us early about your project and keep in touch• We have very experienced staff who are passionate about

what they do - make use of them



Presenter

Presentation Notes

During this presentation I will try to give you some practical tips and case study examples of things you should consider when planning to move your project through the approvals process. I have been in State Government for 14 years and it has almost entirely been within the Mineral Tenements Team in various capacities. I have been registrar for the last 6. My team have been involved in a lot of different projects both large and small and can call on this wealth of experience to work with you to progress your projects For larger projects my team work closely with the Project Managers and the Mining Assessments Teams to provide valuable input into tenement planning and risk identification We often review draft documents and provide comments where required. This has proved to be a really successful collaboration for the most recent projects. I also want to stress however our assistance does not have to be just for larger project managed applications. My team will also provide assistance to smaller projects and will again assist with tenement planning and document review. I stress the importance of talking to use in the tenement planning for your project whether be large or small Case Study: As an example we have had two recent smaller projects which have had to start again because the correct notices had not been served and the correct consents from underlying tenement holders were not in place The applicant had not discussed the application with our Production Tenements Team before it was lodged and we were unable to identify the problems early. As a result I was unable to register the Mineral Claims, the applicants had to withdraw their Mineral Claim applications, serve the required notices and then wait the required time period This is confusing for the stakeholders, time consuming for the applicant and the Department and probably could have been avoided if the applicant had engaged with our Team and discussed their project Photos�the two photos above are of site visits one to the proposed CEIP project and the other the Wirrida siding There is nothing like getting out on the ground to understand the complexities of your projects.



The Mining Act has specific requirements understand them for your project• Know which form you

need • Is it the correct version?• What do you need to do

with it?• Do you understand the

timeframes of each process?

Presenter

Presentation Notes

All the determined forms under the Mining Act are maintained on the Departments Website. It is important you complete the correct form for the task, with as much detail as required They are designed specifically to ensure you are meeting the requirements of the Mining Act and the Regulations when either providing a document to a landowner or the Department The forms are a key component of any application or authority to enter land, please make sure they are readable and signed and witnessed by the correct parties. The most up to date form is always available from the Departments website. Please also insure you understand all the time frames required to be achieved in the Mining Act. These are very specific for some processes particularly related to the service of notices and the lodgment of applications. They are very important and if not followed can lead difficult outcomes. Keep up to date with the legislation, it may be some time since you have lodged an application. Come and talk to us to make sure you understand the most current requirements Case Study: The Department monitored a recent case in the Warden’s Court which came about because a notice of entry was served on several landowners where part of the land was exempt land. The notice of entry was also served by a miner who did not hold the underlying exploration licence. Copies of all the documents served on the landowners were required to be provided to the Court and they were scrutinized in detail. In cases like this it is important all the title references, names, and details of operations are all correct. In this case the Department had been involved in the preparation of the notices of entry and the court ultimately ruled they had been validly served.

Make sure you have all the required documents with your application and they meet the requirements of the Mining Act• Different applications have different

requirements and time frames• Have you got the required

attachments and agreements?• Are they valid?• Have the requirements change since

you last lodged an application?



Presenter

Presentation Notes

When submitting any application to the Department there are always specific requirements to be met either by the Act, Regulations, Determinations or policy If you do not submit the correct attachments with your application the application cannot be deemed valid. Case Study: I have had two occasions where Mining Lease application submitted to the Department were deemed invalid because the mining proposals did not meet the requirements of the Mining Act and the Determinations. The applications were lodged the day before the Mineral Claims were due to expire at the end of their 12 month life. It is worth knowing a mineral claim only lasts for 12months Lodging applications in such a way did not allow the Department time to advise the applicants in relation to their applications and as there was no valid application for a mining lease at the expiry date of the Mineral Claims they expired and the applicants had to start again. They had to seek an additional consent under the Mining Act to peg new Mineral Claims over the same area within 2 years and then Re peg and progress through the whole process again. This cost time and money and required an additional approval process. Photo: This photo is a record of the documents provided to stakeholders for the recent public circulation of the CEIP mining proposal. As you would be aware this is a significant project with a large volume of stakeholders. The Department sent approximately 80 pieces of mail out with the majority being on a USB device. In planning for public consultation on such a large project we too need to undertake planning for such logistics processes and we work with applicants like Iron Road to be ready. The Department is also required to meet specific time frames in the Mining Act by planning with you prior to submission of your applications we can both meet our legislative requirements. For the majority of projects this is usually not such a large task but we need to plan and schedule for our processes just as you do.



Take care with the details • Have you done everything required before establishing your

Mineral Claim?• Why we need to check everything you provide us• Why we sometimes have to say ‘you need to start again’

Presenter

Presentation Notes

In terms of tenement applications the majority of notices and agreements are usually served or reached before establishing your mineral claim. Often it is this stage where you are discussing the real detail of your project with my team It is important you consider what company or individuals name the mineral claim is to be established in. It is not possible to transfer a mineral claim therefore once you start the process in one name it cannot be changed by transfer in the Mining Act until after the grant of a mining lease. When you step back through the processes it is important then you really need to decide on the proposed tenement holders name before contemplating the service of any notices or the drafting of agreements. When discussing your mineral claim with my team it is important you understand the importance of clearly defining the boundary of your mineral claim You will need to decide what is best for your project in terms of how you will identify the mineral claim, either by pegs in the ground or by “virtual” pegging. My team have encountered several projects where the coordinates provided for the registration of a Mineral Claim did not match the property boundary in the State’s spatial dataset or the land title. This is particularly a problem in some regional areas and usually requires some time to investigate before a conclusion can be reached. It is important issue because the miner needs to be clear where they are pegging to ensure the correct authorities are in place to establish the claim In turn the Registrar is unable to register the claim until this information is verified as correct. At times I am sure most of you will think we are being very pedantic My team are there to ensure to the best of our ability when the Department grants a mining tenements it is as secure as it can possibly be. We don’t enjoy telling someone to start again but sometimes we have to If the processes are not correctly followed the grant of your exploration Licence or mining lease can be challenged in the Supreme Court or the process we have followed can be questioned by external parties such as the Ombudsman Most projects judicially challenged in the Supreme Court do not go ahead and these challenges are time consuming, stressful and costly for all parties. Case Study We had a submission during a mining lease assessment recently that raised concerns a mining lease was going to be granted crossing over onto an adjoining landowners land After investigating, in this case it turned out to be more of a dispute between the two landowners that had caused the concern and the boundary of the mineral claim was correct. However you need to be sure the data you are collecting on the ground is correct. If you are pegging along a fence line, is that fence line actually on the property boundary In several cases My team and our spatial experts have had to converse directly with the relevant surveyors to reach conclusions This is important as we need to make sure you have not entered into the neighboring property unintentionally Case Study The Department has recently had to respond to questions from the Ombudsman in relation to a recent mineral claim and mining lease application. In particular, concerns were raised by third parties in relation to my decision as the Mining Registrar to register the Mineral Claim It takes a considerable amount of resources and research to respond to this type of query. Our records and yours need to be able to stand up to challenge by any party including the Ombudsman or the Courts In this case the Ombudsman found no grounds to continue his investigation and it did not delay the project, however it did take a considerable amount of internal resources to respond to such a query, time we are unable to spend on your projects Photo This first photo is an example of two different parties pegging mineral claims, both on the same piece of land. this is a really good example of when the detail is important. Who pegged their claim first, on what date, was it valid, did they have all the required permissions what are the circumstances here. This took some time to sort out, eventually a conclusion was reached and a decision made to register one of the claims. It is important to be ready to progress your project once you are undertaking these processes. The other picture is of a mining lease granted in 1918 which is still valid. If your mining lease is granted I am sure you are hoping it will be there for a considerable amount of time The thoroughness of our processes is integral to your mining tenement being a secure as possible when it is granted by the Department

Mineral Tenements Top 5 Tips• Engage with us early about your

project and keep in touch• The Mining Act has very specific

requirements, understand them for your project

• Make sure you have all the required documents with your application and they meet the requirements of the Mining Act

• Take care with the details



Presenter

Presentation Notes

In closing I have summarised my top 4 tips in progressing your project. Engage with us early about your project and keep in touch The Mining Act has very specific requirements understand them for your project Make sure you have all the required documents with your application and they meet the requirements of the Mining Act Take care with the details Really they come down to communicating with the Department and your stakeholders about your project as it progresses. My team will provide as much assistance as we can but we can only assist when we know the details and understand your projects. Thankyou

Copper Strategy Seminar

Assessment & Decision Making for Mining Developments

Greg Marshall and Andrew Querzoli6 July 2016


Overview of Presentation

1) Aligning Project Development andMining Applications to Government

2) Environmental Impact Assessment3) Mine Closure and Completion


1) Aligning Project Development andMining Applications to Government


1) Aligning Project Developmentand Mining Applications to Government

Top Three:• Define Project Evaluation Objectives

• Define Project Plan early to ensure objectives will be achieved

• Scope your work packages to align with approval requirements


Aligning Project Developmentand Mining Applications to Government

1.1) Define Project Evaluation Objectives:• Determine financial value of the project

• Describe commercial environment (Metal price / Markets / FX)

• Identify and manage the project risks

• Demonstrate technical feasibility

• Demonstrate the project can be permitted and approved

• Identify the capability and capacity required to deliver

• Demonstrate full project viability + superior shareholder return

Source: AUSIMM Bulletin (June 2016) “Project Evaluation – a non-executive director’s perspective”, Richard Knighthttps://www.ausimmbulletin.com/feature/project-evaluation-a-non-executive-directors-perspective/

https://www.ausimmbulletin.com/feature/project-evaluation-a-non-executive-directors-perspective/


Aligning Project Developmentand Mining Applications to Government

1.1) Don’t forget objectives for:• Project Approvals and Permitting

• Community and Stakeholder engagement

• Environmental Performance

• Social Licence / Social Performance

• Land Access

• Mine Closure and Completion


1.2) Define Project Plan Early….

What is the relationship between:

Resource Definition

Scoping and Feasibility

Studies

Environmental Baseline and

Impact Assessment

Land AccessProject

Approvals and Permitting

Mine Closure

Stakeholder and

Community Engagement


Define Project Plan Early….

What is the relationship between:

Resource Definition

Scoping and Feasibility

Studies

Environmental Baseline and

Impact Assessment

Land Access

Project Approvals and

Permitting

Mine Closure

Stakeholder and

Community Engagement



Disclaimers:• The following Project Plan is a high level example only

• There are many ways to sequence a Project Development

• All methods are valid

• Important thing is to have a Plan that can deliver the objectives

• Land Access must be included in project planning, but it is excluded from

this example project plan



Resource

Feasibility

Environment

ExplorationTarget

JORC ResourceInferred

JORC ResourceIndicated/Measured JORC Reserves

Note: Land Access must be included in planning

Applications to

Government



Resource

Feasibility

Environment

ExplorationTarget



Scoping Study Prefeasibility Feasibility


Applications to

Government



Resource

Feasibility

Environment

ExplorationTarget




Baseline Data Collection

Env. Impact Assessment (EIA)Preliminary EIA Detailed EIA

Stakeholder and Community Engagement


Applications to

Government



Resource

Feasibility

Environment

ExplorationTarget




Pre LodgementDraft Mining Proposal

Mining ProposalPEPR &

Other Permitsand Licences

Early EngagementWith Government





Applications to

Government



Resource

Feasibility

Environment

ExplorationTarget




Pre LodgementDraft Mining Proposal



Early EngagementWith Government





Applications to

Government



Resource

Feasibility

Environment

JORC Reserves

Feasibility

Detailed EIA




Applications to

Government



Resource

Feasibility

Environment

JORC Reserves

Feasibility

Detailed EIA



Ensure integration of:

• Scopes

• Timing

• Teams / Capabilities


Applications to

Government



Resource

Feasibility

Environment

JORC Reserves

Feasibility

Detailed EIA



Ore Tonnes / GradeWaste Tonnes / CompositionDilution / Mine RecoveryCommodity price / FX

Design of Mining, Processing, Infrastructure, ClosureCAPEX / OPEXProcess RecoveryCommodity price / FXNPV / IRR

Description of EnvironmentStakeholder and Community EngagementEnvironmental Impact and Risk Assessment

Description of EnvironmentDescription of Mining, Processing, Infrastructure, ClosureStakeholder and Community EngagementEnvironmental Impact and Risk AssessmentEnvironmental Outcomes and Monitoring


Applications to

Government



Resource

Feasibility

Environment

JORC Reserves

Feasibility

Detailed EIA








Applications to

Government



Resource

Feasibility

Environment

JORC Reserves

Feasibility

Detailed EIA







You must scope closure across

your teams


Applications to

Government



Planning to ensure your project is defined early will set you up for success:

Source: Ausimm Project Evaluation Conference 2016 – “The use and abuse of Feasibility Studies – Has anything changed?” – Mackenzie and Cusworth

Presenter

Presentation Notes

Good = projects delivered within +/- 15% of stated capital cost and schedule and are operating with expectations Not too Bad = projects exceeded forecast capital cost by 15 to 50 percent but operate in accordance with expectations Not so Good = projects exceeded forecast capital cost by more than 50 percent or operate at less than 85% of nameplate capacity within 18 months of start-up Ugly = EITHER (1) cost or schedule blow out of > 100% or (2) They never reach completion





Good = projects delivered within +/- 15% of stated capital cost and schedule and are operating within expectations

Presenter

Presentation Notes

Good = projects delivered within +/- 15% of stated capital cost and schedule and are operating with expectations Not too Bad = projects exceeded forecast capital cost by 15 to 50 percent but operate in accordance with expectations Not so Good = projects exceeded forecast capital cost by more than 50 percent or operate at less than 85% of nameplate capacity within 18 months of start-up Ugly = EITHER (1) cost or schedule blow out of > 100% or (2) The project is not developed





Ugly = EITHER (1) cost or schedule blow out of > 100% or (2) The project is not developed

Presenter

Presentation Notes

Good = projects delivered within +/- 15% of stated capital cost and schedule and are operating with expectations Not too Bad = projects exceeded forecast capital cost by 15 to 50 percent but operate in accordance with expectations Not so Good = projects exceeded forecast capital cost by more than 50 percent or operate at less than 85% of nameplate capacity within 18 months of start-up Ugly = EITHER (1) cost or schedule blow out of > 100% or (2) The project is not developed










1.3) Scope for Feasibility / EIA to align with regulatory requirements

Scope of work for internal teams / consultants should align to deliver

information required for Mining Proposal and PEPR

Example:

Mining Proposal requires:

• Source/Pathway/Receptor Impact Assessment Model

• Best practice control strategies to manage impacts

• Assumptions, Uncertainties and Sensitivity Analysis

• You must scope your teams to deliver analysis on assumptions,

uncertainties and sensitivity required by a Mining Proposal


Scope

Example:

Who’s scope is the pit abandonment bund in??

1) Resource Geologist

2) Mining Engineer

3) Geotech Engineer

4) Environmental Eng.

5) Civil Engineer

6) Hydrologist / Surface Water engineer

7) Owners engineer


Scope

Example:

Who’s scope is the pit abandonment bund in??

1) Resource Geologist Future resources / Sterilization?

2) Mining Engineer Has the pit design, Mine/Material schedule

3) Geotech Engineer Has the pit stability assessment

4) Environmental Eng. Env Receptors / Clearance / WA guideline

5) Civil Engineer Can design the bund / Material analysis

6) Hydrologist / Surface Water engineer Has the SW infra plan

7) Owners engineer Integration / Co-ordination / Regulatory Docs


Scope

Example:

How do you scope the closure design for a TSF or WRD with PAF??1) Cover Design specialist

2) Geochemist

3) Geomorphologist / Landform evolution specialist / Erosion specialist

4) TSF Engineer

5) Mining Engineer

6) Geotech Engineer

7) Environmental Eng.

8) Hydro-geologist

9) Civil Engineer

10) Hydrologist / Surface Water engineer

11) Owners engineer


2) Environmental Impact Assessment


2) Environmental Impact Assessment

Top Three:• Consult DSD Guidelines and Engage with DSD

• Capability

• Start Impact and Risk Assessment Early


2.1) DSD Mining Determinations and Guidelines

Determinations and Guidelines

1. MD6 and MG2a – Determination and Guideline for Mining Proposals and/or Management Plans for Metallic and Industrial Minerals in accordance with Regulation 30(3) and 49(3) of the Mining Regulations 2011.

2. MD5 and MG2b – Determination and Guideline for PEPR’s for Mining Metallic and Industrial Minerals in accordance with Regulation 65(7) of the Mining Regulations 2011.

– Note: Management Plans are for Miscellaneous Purposes Licences


2.2) Environmental Impact Assessment Capability

Capability:• Ensure team has Environmental Impact Assessment capability

• Engage this capability as early as possible

• Integrate this capability into all Project Development teams


2.3) Start Environmental Impact Assessment early

Start Impact Assessment Early:Adopt the Source, Pathway, Receptor model early– A preliminary SPR impact model can be developed at scoping study

Adopt an Impact, Risk and Performance based approach early


2.3) Start Environmental Impact Assessment early

Why start Impact Assessment early?• “Sources” can be identified during exploration, met testwork:

– Sulphur, Silica, Asbestos, Arsenic etc

Example - Use Impact Assessment to drive scope:– Assay for Sulphur early – both waste and ore

If identified:

– Conduct an early Impact Assessment using S, P, R Model

– Depending on outcomes of EIA - develop a scope of work for the potential for AMD

– Continually revisit your Impact Assessment

• “Receptors” must be identified early.– Receptors will be refined as the Project Definition becomes more certain


Mine Closure and Completion


3) Mine Closure and Completion

Top Three:• Consult DSD Guidelines, engage with DSD and understand DSD’s

expectations

• Engage mine closure capability

• Integrate closure and completion planning early


3.1) DSD Mining Determinations and Guidelines

Determinations and Guidelines1. MD6 and MG2a – Determination and Guideline

for Mining Proposals and/or Management Plans for Metallic and Industrial Minerals in accordance with Regulation 30(3) and 49(3) of the Mining Regulations 2011.

2. MD5 and MG2b – Determination and Guideline for PEPR’s for Mining Metallic and Industrial Minerals in accordance with Regulation 65(7) of the Mining Regulations 2011.

– Note: Management Plans are for Miscellaneous Purposes Licences


3.2) Regulatory Requirements for Mine Closure and completionMining Proposal:• Mine closure and rehabilitation strategies must be

integrated into the Description of Mining Operations

• The description of mine site at completion is required

• Closure and rehab can be conceptual in the Mining Proposal

• Options for post mining land use required

• Mine Completion outcomes and draft Completion criteria

• Consultation with stakeholders on completion outcomes

• Progressive rehabilitation must be integrated into the mine plan


3.2) Regulatory Requirements for Mine Closure and rehabilitationPEPR:• Mine closure and rehabilitation strategies must be

integrated into the Description of Mining Operations

• The description of mine site at completion is required

• Closure and rehab must be detailed in the PEPR

• Current detailed plan for post mining land use required

• Mine Completion outcomes and final completion criteria

• Consultation with stakeholders

• Progressive rehabilitation must be integrated into the mine plan

• Effective mine closure planning and commitment to progressive

rehabilitation can minimize the Mine Rehab Bond


3.3) Integrate Closure planning early

Resource

Feasibility

Environment

JORC Reserves

Feasibility

Detailed EIA







You must scope closure across

your teams


Applications to

Government


Overall Top 5

• Develop Project Objectives that include regulatory requirements

• Develop a Project Plan early and integrate regulatory requirements

• Define/scope your study work to deliver info for the Mining Proposal

• Consult DSD Guidelines and Engage with DSD

• Have capability in your team for Impact Assessment / Mine Closure


DSD Web LinksRegulatory Framework - https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/image/DDD/BROCH005.pdf

Determinations

MD006 – Determination for Metallic and Industrials Mining Proposals

MD005 – Determination for Metallic and Industrials PEPRs

Guidelines:

MG2a – Guideline for Metallic and Industrials Mining Proposals

MG2b – Guideline for Metallic and Industrials PEPRs

https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/image/DDD/BROCH005.pdf

https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/image/DDD/MD006.pdf

https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/image/DDD/MD005.pdf

https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/image/DDD/MRGMG2a.pdf

https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/image/DDD/MRGMG2b.pdf

Contact


DSD Mining RegulationLevel 7, 101 Grenfell StreetAdelaide, South Australia 5000GPO Box 320Adelaide, South Australia 5001


Continuing the Conversation

Facilitated Group Discussion

Charles Moore

www.minerals/statedevelopment.sa.gov.auwww.statedevelopment.sa.gov.au

Contact

Department of State Development Level 4, 11 Waymouth StreetAdelaide, South Australia 5000GPO Box 320Adelaide, South Australia 5001

T: +61 8 8303 2202M: +61 422 007 059E: [email protected]

Charles Moore,Director, Resources and Strategy08 8303 2202

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