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BENGALLA MINE ANNUAL REVIEW 2018 Prepared by: BENGALLA MINING COMPANY PTY LIMITED LOCKED BAG 5 MUSWELLBROOK NSW 2333 MARCH 2019

BENGALLA MINE ANNUAL REVIEW 2018

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BENGALLA MINE ANNUAL REVIEW 2018

Prepared by:

BENGALLA MINING COMPANY PTY LIMITED LOCKED BAG 5 MUSWELLBROOK NSW 2333

MARCH 2019

Bengalla Mine Annual Review 2018 Page iii

BENGALLA MINING COMPANY PTY LIMITED

TABLE OF CONTENTS

1 STATEMENT OF COMPLIANCE ................................................................................. 1

2 INTRODUCTION .......................................................................................................... 3

2.1 BACKGROUND ....................................................................................................................... 3

2.2 DOCUMENT PURPOSE .......................................................................................................... 3

2.3 BENGALLA CONTACTS ......................................................................................................... 5

3 APPROVALS ............................................................................................................... 9

3.1 OVERVIEW .............................................................................................................................. 9

3.2 STATUS OF MANAGEMENT PLANS ................................................................................... 11

4 OPERATIONS SUMMARY ......................................................................................... 12

4.1 MINING OPERATIONS.......................................................................................................... 12

4.2 OTHER OPERATIONS .......................................................................................................... 12

4.3 NEXT REPORTING PERIOD ................................................................................................ 13

5 ACTION REQUIRED FROM PREVIOUS ANNUAL REVIEW ..................................... 14

6 ENVIRONMENTAL MANAGEMENT & PERFORMANCE .......................................... 15

6.1 METEOROLOGY ................................................................................................................... 15

6.2 NOISE .................................................................................................................................... 16

6.3 BLASTING ............................................................................................................................. 19

6.4 AIR QUALITY ......................................................................................................................... 23

6.5 SPONTANEOUS COMBUSTION .......................................................................................... 32

6.6 GREENHOUSE GAS ............................................................................................................. 33

6.7 NON-MINERAL WASTE ........................................................................................................ 35

6.8 MINERAL WASTE ................................................................................................................. 35

6.9 CONTAMINATED LAND ........................................................................................................ 36

6.10 ABORIGINAL ARCHAEOLOGY & CULTURAL HERITAGE ................................................. 36

6.11 NON-ABORIGINAL HERITAGE ............................................................................................ 37

6.12 FLORA & FAUNA ................................................................................................................... 41

6.13 WEEDS & PEST MANAGEMENT ......................................................................................... 44

6.14 VISUAL AMENITY & LIGHTING ............................................................................................ 47

6.15 EMERGENCY RESPONSE PREPAREDNESS .................................................................... 47

7 WATER MANAGEMENT ............................................................................................ 48

7.1 WATER BALANCE ................................................................................................................ 48

7.2 SURFACE WATER ................................................................................................................ 49

7.3 GROUNDWATER .................................................................................................................. 53

Bengalla Mine Annual Review 2018 Page iv

BENGALLA MINING COMPANY PTY LIMITED

8 REHABILITATION ...................................................................................................... 55

8.1 REHABILITATION OBJECTIVES AND FINAL LAND USE ................................................... 55

8.2 REHABILITATION MANAGEMENT ....................................................................................... 55

8.3 REHABILITATION MONITORING PROGRAM ..................................................................... 59

8.4 ACTIONS FOR THE NEXT REPORTING PERIOD .............................................................. 60

9 COMMUNITY RELATIONS ........................................................................................ 61

9.1 COMMUNITY ENGAGEMENT .............................................................................................. 61

9.2 COMMUNITY CONTRIBUTION ............................................................................................ 61

9.3 ENVIRONMENTAL COMPLAINTS ........................................................................................ 63

10 INDEPENDENT ENVIRONMENTAL AUDIT............................................................... 64

11 ENVIRONMENTAL INCIDENTS ................................................................................ 65

11.1 REPORTABLE ENVIRONMENTAL INCIDENTS .................................................................. 65

11.2 NON-REPORTABLE ENVIRONMENTAL INCIDENTS ......................................................... 66

12 ACTIVITIES PROPOSED IN THE NEXT REPORTING PERIOD ............................... 68

13 REFERENCES ........................................................................................................... 69

Bengalla Mine Annual Review 2018 Page v

BENGALLA MINING COMPANY PTY LIMITED

LIST OF TABLES

Table 1 Statement of Compliance .................................................................................... 1

Table 2 Non-Compliance Risk Matrix ............................................................................... 1

Table 3 Non- Compliances in the Reporting Period .......................................................... 2

Table 4 Development Consent and Mining Lease requirements for Annual Review ......... 4

Table 5 Bengalla Contacts ............................................................................................... 5

Table 6 Bengalla Approvals Summary ........................................................................... 10

Table 7 Status of BMC Management Plans.................................................................... 11

Table 8 Production & Waste Summary .......................................................................... 12

Table 9 Actions required from the 2017 Annual Review ................................................. 14

Table 10 Blast Monitoring Locations and Criteria ............................................................. 20

Table 11 Blast Performance Summary 2018 .................................................................... 21

Table 12 Summary of PM10 Monitoring Results ................................................................ 26

Table 13 Summary of Annual Average TSP Monitoring Results....................................... 26

Table 14 Summary of Elevated Dust Monitoring Results.................................................. 27

Table 15 Greenhouse Gas Emission Reduction Research and Development Initiatives .. 33

Table 16 Energy Consumed and Produced FY 2016 to 2018 .......................................... 34

Table 17 Greenhouse Gas Emissions 2016 to 2018 ........................................................ 34

Table 18 Short Term Maintenance of the Bengalla and Overdene Homesteads 2018 ..... 38

Table 19 Site Water Take 2018........................................................................................ 48

Table 20 Site Water Balance 2018 ................................................................................... 49

Table 21 Summary of surface water monitoring results (2012 – 2018) ............................. 50

Table 22 Bengalla Rehabilitation Objectives (from SSD-5170)......................................... 56

Table 23 Bengalla Rehabilitation Status Summary........................................................... 57

Table 24 Bengalla Rehabilitation Monitoring Program Transects (2018) .......................... 59

Table 25 Environmental Management Activities Proposed for 2019 ................................. 68

Bengalla Mine Annual Review 2018 Page vi

BENGALLA MINING COMPANY PTY LIMITED

LIST OF FIGURES

Figure 1 Regional Locality ................................................................................................. 6

Figure 2 Approved Site Layout .......................................................................................... 7

Figure 3 Environmental Monitoring Network ...................................................................... 8

Figure 4 Noise Monitoring Locations ............................................................................... 18

Figure 5 Blast Monitoring Locations ................................................................................ 22

Figure 6 Air Quality Monitoring Locations ........................................................................ 24

Figure 7 Depositional Dust Monitoring Results 2014-2018 .............................................. 32

Figure 8 Biodiversity Offset Areas ................................................................................... 43

Figure 9 Weed Management Areas 2018 ........................................................................ 46

Figure 10 Surface Water Monitoring Locations .................................................................. 52

Figure 11 Groundwater Monitoring Locations .................................................................... 54

Figure 12 Mining and Rehabilitation Status 2018 .............................................................. 58

Figure 13 Environmental Complaints Received 2018 ........................................................ 63

LIST OF APPENDICES

Appendix A Meteorological Monitoring Summary

Appendix B Noise Monitoring Summary

Appendix C Blast Monitoring Summary

Appendix D Air Quality Monitoring Summary

Appendix E Annual Compliance Report for EPBC 2012/6378

Appendix F Surface Water Monitoring Summary

Appendix G Annual Groundwater Monitoring Report 2018

Appendix H Rehabilitation Monitoring Findings

Appendix I Revegetation Trial - Detailed Findings Report

Bengalla Mine Annual Review 2018 Page vii

BENGALLA MINING COMPANY PTY LIMITED

ACRONYMS

ACHMP Aboriginal Cultural Heritage Management Plan

AEISG Australasian Explosive Industry Safety Group

AGE Australasian Groundwater and Environmental Consultants Pty Limited

ANZECC Australian and New Zealand Environment Conservation Council

AQMP Air Quality Management Plan

ARD Acid Rock Drainage

AS/NZS Australian/New Zealand Standard

bcm Bank Cubic Meter

BDMP Biodiversity Management Plan

Bengalla Bengalla Mine

BJV Bengalla Joint Venture

BMC Bengalla Mining Company Pty Limited

BMP Blast Management Plan

BOMP Biodiversity Offset Management Plan

BTOC Below Top of Casing

CCC Bengalla Community Consultative Committee

CDF Community Development Fund

CER Clean Energy Regulator

CHPP Coal Handling Preparation Plant

CO2-e Carbon Dioxide Equivalent

CST Community Support Team

CW1 Clean Water Dam 1

DEC NSW Department of Environment and Conservation (now EPA)

DoEE Department of Environment and Energy

DoI - Water NSW Department of Primary Industries – Lands and Water

DPE NSW Department of Planning and Environment

DRG NSW Department of Planning and Environment Division of Resources and Geoscience

EC Electrical Conductivity

ED1 Staged Discharge Dam (Approved 2018)

EIS Environmental Impact Statement (Hansen Bailey, 2013)

EMS Environment Management Strategy

EPA NSW Environment Protection Authority

EPBC Environment Protection Biodiversity Conservation Approval

EPL 6538 Environment Protection Licence 6538

ERM Environment Management Resource Pty Limited

ERT Emergency Response Team

FY Financial Year (1 July - 30 June)

GDP Ground Disturbance Permit

GHG Greenhouse Gas

GIS Geographical Information System

GJ Gigajoule

Bengalla Mine Annual Review 2018 Page viii

BENGALLA MINING COMPANY PTY LIMITED

Ha Hectare

HHMP Historic Heritage Management Plan

HRSTS Hunter River Salinity Trading Scheme

HVAS High Volume Air Sampler

IEA Independent Environmental Audit

INP Industrial Noise Policy (EPA,2000)

LLS NSW Local Land Services

MAC Mt Arthur Coal

MACH Energy MACH Energy Pty Limited

Mbcm Million Bank Cubic Meters

ML Mining Lease (Followed by Number)

ML Mega Litres (Preceded by Number)

MOP Bengalla Mine Mining Operations Plan 2017 - 2021

MSC Muswellbrook Shire Council

Mt Mega Tonnes

NGER National Greenhouse and Energy Reporting

NGER Act National Greenhouse and Energy Reporting Act 2007

NMP Noise Management Plan

NPfI Noise Policy for Industry (EPA, 2017)

NPI National Pollutant Inventory

NPWS National Parks and Wildlife Services

NSW New South Wales

OEA Overburden Emplacement Area

OEH NSW Office of Environment and Heritage

Orica Orica Australia Pty Limited

PE Pacific Environment Pty Limited

PIN Penalty Infringement Notice

PIRMP Pollution Incident Response Management Plan

PM10 Particulate Matter less than 10 micrograms

PM2.5 Particulate Matter less than 2.5 micrograms

POEO Act Protection of Environment Operations Act 1997

PPV Peak Particle Velocity

RAP Registered Aboriginal Party

Reporting Period 1 January 2018 - 31 December 2018

RFS Rural Fire Service

RL Relative Level

RMP Rehabilitation Management Plan

RMS NSW Roads and Maritime Services

ROM Run Of Mine

RTEMS Real Time Environment Management System

SDD Stage Discharge Dam (Existing)

SSD-5170 State Significant Development 5170 (Development Consent)

SWL Standing Water Level

Bengalla Mine Annual Review 2018 Page ix

BENGALLA MINING COMPANY PTY LIMITED

t Tonnes

TDS Total Dissolved Solids

TEOM Tapered Element Oscillating Microbalance

TSP Total Suspended Particulates

TSS Total Suspended Solids

VIMP Visual Impact Mitigation Plan

WAL Water Access Licence

WMP Water Management Plan

Bengalla Mine Annual Review 2018 Page 1

BENGALLA MINING COMPANY PTY LIMITED

1 STATEMENT OF COMPLIANCE

This Annual Review has been prepared to provide a summary of the performance of Bengalla Mine (Bengalla) over the period 1 January – 31 December 2018 (reporting period). The compliance status of Bengalla against relevant approvals is summarised in Table 1.

The non-compliances recorded during the reporting period have been ranked according to the risk matrix included in Table 2 and a brief description of each is provided in Table 3.

Table 1 Statement of Compliance

Were all the conditions of the relevant approvals complied with? Yes/No

Development Consent SSD-5170 (as modified) Yes 1

Environmental Protection Licence (EPL) 6538 Yes 2

Mining Lease (ML) 1397 Yes

ML 1469 Yes

ML 1450 Yes

ML 1711 Yes 3

ML 1728 Yes

ML 1729 Yes

1 Annual air quality criteria review and general DPE Muswellbrook area multi-site air quality review ongoing.

2 See comments in Section 6.1.2 and Section 6.4.2.

3 See Table 6.

Table 2 Non-Compliance Risk Matrix

Risk Level Risk Level Description

High High Non-compliance with potential for significant environmental consequences, regardless of the likelihood of occurrence

Medium Medium

Non-compliance with:

• potential for serious environmental consequences, but is unlikely to occur; or

• potential for moderate environmental consequences, but is likely to occur

Low Low

Non-compliance with: • potential for moderate environmental consequences, but is

unlikely to occur; or • potential for low environmental consequences, but is likely

to occur

Administrative non-compliance

Administrative non-compliance

Only to be applied where the non-compliance does not result in any risk of environmental harm (e.g. submitting a report to government later than required under approval conditions).

Source: NSW Government (2015)

Bengalla Mine Annual Review 2018 Page 2

BENGALLA MINING COMPANY PTY LIMITED

Table 3 Non- Compliances in the Reporting Period

Approval Cond. # Condition

Description (Summary)

Non-compliance

Status* Comment

Section described

in this Annual Review

Water Access Licence (WAL) 41547

BMC expected groundwater inflows to the Bengalla open cut to exceed the annual entitlement under WAL 41547.

BMC notified the DPE of the expected exceedance of the groundwater allocation. BMC lodged an application with the then NSW Office of Water on 22/12/15 to increase the annual entitlement to 325 ML. The Application is yet to be determined.

11

Note: Non-compliance status as defined in the ‘Annual Review Guideline, Post-Approval

requirements for State significant mining developments’ (NSW Government, 2015).

Bengalla Mine Annual Review 2018 Page 3

BENGALLA MINING COMPANY PTY LIMITED

2 INTRODUCTION

This section provides an overview of Bengalla, outlines the purpose of this Annual Review and provides contact details for relevant Bengalla personnel.

2.1 BACKGROUND

BMC operates Bengalla in the Upper Hunter Valley of New South Wales (NSW), approximately 130 km north-west of Newcastle and 4 km west of the township of Muswellbrook, as illustrated in Figure 1.

On 7 August 1995, BMC was granted Development Consent DA 211/93 for the construction and operation of a surface coal mine, coal preparation plant, rail loop, loading facilities and other associated infrastructure. DA 211/93 was surrendered to DPE in December 2016.

On 3 March 2015, the Secretary of the DPE, as delegate for the Minister for Planning, granted approval SSD-5170 for the continuation of Bengalla to 2039 at up to 15 Mtpa Run of Mine (ROM) coal production. Bengalla commenced operations under SSD-5170 on1 October 2015.

The approved Bengalla layout is shown on Figure 2, with an overview of the Bengalla environmental monitoring network shown on Figure 3.

2.2 DOCUMENT PURPOSE

This Annual Review summarises the environmental performance of Bengalla for the reporting period and has been prepared to meet the requirements of Schedule 5, Condition 4 of SSD-5170 (as modified) and Condition 7 of ML 1397. A summary of where each requirement has been addressed is provided in Table 4. Conditions 3 and 7 of ML 1450, Condition 3 of ML 1469, Condition 3(f) ML 1711, Condition 3(f) of ML 1728 and Condition 3(f) of ML 1729 are also satisfied throughout this report.

The structure and content of this Annual Review was prepared in accordance with the requirements of the ‘Annual Review Guideline, Post-Approval requirements for State significant mining developments’ (NSW Government, 2015).

Bengalla Mine Annual Review 2018 Page 4

BENGALLA MINING COMPANY PTY LIMITED

Table 4 Development Consent and Mining Lease requirements for Annual Review

Document Where Addressed

SSD-5170 Condition (Schedule 5, Condition 4) 4. By the end of March each year (or as otherwise agreed by the Secretary), the

Applicant shall review the environmental performance of the development for the previous calendar year to the satisfaction of the Secretary. This review must:

This document

a) describe the development (including any rehabilitation) that was carried out in the past calendar year, and the development that is proposed to be carried out over the current calendar year;

Section 2, 4 and 8

b) include a comprehensive review of the monitoring results and complaints records of the development over the past year, which includes a comparison of these results against: • relevant statutory requirements, limits or performance measures/criteria; • monitoring results of previous years; • relevant predictions of the EIS;

Sections 6 to 9

c) identify any non-compliance over the last year, and describe what actions were (or are being) taken to ensure compliance;

Section 1 and 11

d) identify any trends in the monitoring data over the life of the development; Section 6 to 8 e) identify any discrepancies between the predicted and actual impacts of the

development, and analyse the potential cause of any significant discrepancies; and Section 6 to 8

f) describe what measures will be implemented over the next year to improve the environmental performance of the development. Section 12

ML 1450 and ML 1469 Condition (Condition 3) 1. Within 12 months of the commencement of mining operations and thereafter

annually or at such other times as may be allowed by the Director-General, the lease holder must lodge an Annual Environmental Management Report (AEMR) with the Director-General.

This document

2. The AEMR must be prepared in accordance with the Director-General’s guidelines current at the time of reporting and contain a review and forecast of performance for the proceeding and ensuing twelve months in terms of: a) the accepted Mining Operations Plan; b) development consent requirements and conditions; c) Environmental Protection Authority and Department of Land and Water

Conservation licences and approvals; d) any other statutory environmental requirements; e) details of any variations to environmental approvals applicable to the lease

area; and f) where relevant, progress towards final rehabilitation objectives.

Section 4 and 8

This document

Section 3

Section 8

3. After considering an AEMR the Director-General may, by notice in writing, direct the leaseholder to undertake operations, remedial actions or supplementary studies in the manner and within the period specified in the notice to ensure that operations on the lease area are conducted in accordance with sound mining and environmental practice.

-

4. The leaseholder shall, as and when directed by the Minister, cooperate with the Director-General to conduct and facilitate review of the AEMR involving other government agencies.

-

Bengalla Mine Annual Review 2018 Page 5

BENGALLA MINING COMPANY PTY LIMITED

ML 1711, 1728 and 1729 Condition (Condition 3f) The lease holder must prepare a Rehabilitation Report to the satisfaction of the Minister. The report must:

i. provide a detailed review of the progress of rehabilitation against the performance measures and criteria established in the approved MOP;

ii. be submitted annually on the grant anniversary date (or at such other times as agreed by the Minister); and

iii. be prepared in accordance with any relevant annual reporting guidelines published on the Department’s website at www.resources.nsw.gov.au/environment.

Note: The Rehabilitation Report replaces the Annual Environmental Management Report.

Section 8

ML 1397 Condition (Condition 3f) The lease holder must prepare a Rehabilitation Report to the satisfaction of the Minister. The report must:

iv. provide a detailed review of the progress of rehabilitation against the performance measures and criteria established in the approved MOP;

v. be submitted annually on the grant anniversary date (or at such other times as agreed by the Minister); and

vi. be prepared in accordance with any relevant annual reporting guidelines published on the Department’s website at www.resourcesandenergy.nsw.gov.au/miners-andexplorers/rules-and-forms/pgf/environmental-guidelines

Section 8

2.3 BENGALLA CONTACTS

BMC has a team of environmental personnel that provide advice for environmental standards and procedures. The relevant contacts for environmental management at Bengalla are outlined in Table 5.

Table 5 Bengalla Contacts

Contact Contact Details

Cam Halfpenny General Manager

Phone: 02 6542 9500 Email: [email protected]

Craig White Environment Superintendent

Phone: 02 6542 9500 Email: [email protected]

BMC Website (Copies of public notices, environmental management documents, monitoring results and other information relating to Bengalla’s operations)

http://www.bengalla.com.au/

Phone Bengalla General Enquiries 02 6542 9500; or Community Complaints Hotline 1800 178 984.

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BerowraBerowra

BranxtonBranxton

BudgewoiBudgewoi

CamdenCamden

DungogDungog

GloucesterGloucester

GretaGreta

Kurri KurriKurri Kurri

NarellenNarellen

SconeScone

WyongWyong

Moonan FlatMoonan FlatBurrell CreekBurrell Creek

Rawdon ValeRawdon Vale

Stewarts BrookStewarts BrookGundyGundy

BunnanBunnan KrambachKrambach

StratfordStratford

RouchelRouchel CravenCraven

AberdeenAberdeenChichesterChichester

SalisburySalisbury

WoottonWootton

LostockLostock

Sandy HollowSandy HollowStroud RoadStroud Road

AllynbrookAllynbrook

MyambatMyambatDenmanDenman StroudStroud

GresfordGresford

RavensworthRavensworth

BooralBooralCamberwellCamberwell

Jerrys PlainsJerrys Plains

Glendon BrookGlendon BrookVacyVacy

Clarence TownClarence TownPatersonPaterson

BulgaBulgaKaruahKaruah

SeahamSeaham

MedowieMedowie

BrokeBroke

PaxtonPaxton

WollombiWollombi

Glen AliceGlen Alice

WyeeWyee

KulnuraKulnura

St AlbansSt Albans

Wisemans FerryWisemans Ferry

BilpinBilpin

HartleyHartley

MulgoaMulgoa

WallaciaWallacia

Forster

MuswellbrookMuswellbrook

SingletonSingleton

Raymond TerraceRaymond Terrace

MaitlandMaitland

CessnockCessnock

NEWCASTLENEWCASTLE

Orange The EntranceThe Entrance

Bathurst

GOSFORDGOSFORD

LithgowLithgowWoy WoyWoy Woy

RichmondRichmond

HornsbyHornsby

Baulkham HillsBaulkham Hills

ManlyManlyParramattaParramatta

North SydneyNorth Sydney

BankstownBankstown

CampbelltownCampbelltown

SYDNEYSYDNEY

BengallaBengalla

P A C I F I C

O C E A N

N E W S O U T H W A L E S

Wollemi

National Park

Yengo

National Park

Blue Mountains

National Park

Barrington Tops

National Park

Port of

Newcastle

Port

Botany

S t o c k t o n

B i g h t

B r o k e n

B a y

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BENGALLA MINE

Regional Locality

FIGURE 1

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300 000 E 400 000 E

6 40

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6 30

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Project Boundary

National Park

State Forest

Rail Line

Watercourse

Export Port

Major Road

25km0

Legend

BENGALLA MINE

Approved Site Layout

FIGURE 2

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2018

BENGALLA MINE

Environmental Monitoring Network

FIGURE 3

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Bengalla Mine Annual Review 2018 Page 9

BENGALLA MINING COMPANY PTY LIMITED

3 APPROVALS

This section provides a summary of leases, licences and approvals that regulate operations at Bengalla.

3.1 OVERVIEW

A summary of the key leases, licences and approvals for activities at Bengalla during the reporting period is provided in Table 6. Copies of the Bengalla approvals and supporting documentation are available on the BMC website: http://www.bengalla.com.au/.

Key changes to licences and approvals during the reporting period included:

• SSD-5170 (MOD 4) approved in December 2018 to include:

▪ Changes to the approved water management system to reflect operations at Bengalla including proposed enlargement of the approved Staged Discharge Dam (ED1), and construction and use of the Dry Creek East Dam;

▪ Temporary storage of approximately 2,500 m3 of excess materials from the construction of ED1;

▪ Increase in the capacity and additional locations of ROM coal stockpiles;

▪ Additional storage locations for temporary emplacement of coal processing reject material, prior to permanent emplacement; and

▪ Temporary clay emplacement within the Main Overburden Emplacement Area (OEA) or to the west of this for later use in the reinstatement of Dry Creek.

• Approval of variations to EPL 6538 in March and October 2018; and

• BMC lodged application for renewal of ML 1397 to DRG on 22 June 2016. DRG confirmed that ML 1397 renewal was approved on 13 July 2018.

Bengalla Mine Annual Review 2018 Page 10

BENGALLA MINING COMPANY PTY LIMITED

Table 6 Bengalla Approvals Summary

Document Approval Period(s) Authority

Development Consent SSD-5170 (as modified) 03/03/2015 – 28/02/2039 DPE Development Consent SSD-5170 MOD 1 – approved December 2015

03/03/2015 – 28/02/2039 DPE

Development Consent SSD-5170 MOD 2 – approved 1 July 2016

03/03/2015 – 28/02/2039 DPE

Development Consent SSD-5170 MOD 3 – approved 23 December 2016

03/03/2015 – 28/02/2039 DPE

Development Consent SSD-5170 MOD 4 – approved 19 December 2018

03/03/2015 – 28/02/2039 DPE

DA 273/2006 – Explosives Facility 06/09/2006 – Perpetuity MSC Environment Protection and Biodiversity Conservation (EPBC) Act 1999 Approval 2012/6378

27/05/2015 – 31/12/2050 DoEE

ML 1397 27/06/1996 – 27/06/2038^ DRG ML 1450 10/06/1999 – 09/06/2020 DRG ML 1469 05/06/2000 – 04/06/2021 DRG ML 1711* 29/09/2015 – 17/12/2031 DRG ML 1728 10/02/2016 – 10/02/2037 DRG ML 1729 10/02/2016 – 10/02/2037 DRG

EPL 6538 Anniversary Date 11

September EPA

Mining Operations Plan (MOP) 2015 – 2021 (SSD-5170) (as amended)

03/07/2015 – 31/12/2021 (amended 8 November

2017) DRG

WAL 001106** Expiry date: 18/03/2028 DoI - Water WAL 41547 (formerly 20BL169798)*** Expiry date: 31/10/2015^ DoI - Water

20PE001354 (Hunter Pump River Permit) 01/05/1997 – Annual

Renewal DoI - Water

XSTR100151 (Licence to Store Explosives) Expiry date: 10/01/2023 SafeWork NSW 5061036 (Radiation Management Licence) Expiry date: 08/08/2019 EPA

*Compliance report to be assessed.

**Bengalla’s primary WAL for the Hunter Regulated River with 1,449 units of share component. Bengalla holds various other WALs for the Hunter Regulated River and other water sources.

***Bengalla’s primary groundwater licence authorising extraction of water from the pit. Bengalla also holds various other groundwater licences under Part 5 of the Water Act 1912.

^Renewal sought. Application lodged with NSW Office of Water on 22/12/2015 to increase entitlement to 325 ML.

Bengalla Mine Annual Review 2018 Page 11

BENGALLA MINING COMPANY PTY LIMITED

3.2 STATUS OF MANAGEMENT PLANS

BMC are required to develop and implement several Management Plans under SSD-5170 (as modified). Table 7 outlines the environmental management plans and the approval status of each at the end of the reporting period.

Table 7 Status of BMC Management Plans

Management Strategy / Plan Date Provided to DPE Approval DPE

Environmental Management Strategy (EMS) 29 July 2016 5 September 2017

Air Quality Management Plan (AQMP) 21 April 2017 18 August 2017

Noise Management Plan (NMP) 21 April 2017 18 August 2017

Water Management Plan (WMP) 4 May 2017 18 August 2017

Blast Management Plan (BMP) 11 May 2017 18 August 2017

Biodiversity Management Plan (BDMP)* 4 May 2017 18 August 2017

Biodiversity Offset Management Plan (BOMP)* 27 April 2017 18 August 2017

Rehabilitation Management Plan (RMP) and/or MOP 2017-2021

12 May 2017, and 13 October 2017

18 August 2017, and 8 November 2017

Aboriginal Cultural Heritage Management Plan (ACHMP)

11 May 2017 18 August 2017

Historic Heritage Management Plan (HHMP) 11 May 2017 18 August 2017

*The BOMP and BDMP was approved by DoEE on 8 March 2017 and 20 September 2017, respectively.

Bengalla Mine Annual Review 2018 Page 12

BENGALLA MINING COMPANY PTY LIMITED

4 OPERATIONS SUMMARY

This section provides a summary of exploration, mining and other activities undertaken at Bengalla during the reporting period. It also includes a summary of operations proposed for 2019.

4.1 MINING OPERATIONS

During 2018, mining operations at Bengalla continued to progress in a westerly direction within the approved area in accordance with the Bengalla Environmental Impact Statement (EIS) and the MOP. A comparison of the Conceptual Year 4 Mine Plan, from the Bengalla EIS, with overburden emplacement indicates that activities are progressing at a lesser but comparable rate to the Conceptual Yeardf 4 Mine Plan.

Table 8 provides a comparison of the production quantities in 2018 to those recorded in 2017 and outlines the quantities proposed for 2019. ROM coal production of 11.25 Million tonnes (Mt) in 2018 remained within the approved limit of 15 Mt.

Table 8 Production & Waste Summary

Material Unit Approved

Limit

Previous Reporting Period

(2017 Actual)

This Reporting Period

(2018 Actual)

Next Reporting Period

(2019 forecast) Waste Rock / Overburden

Mbcm - 46.6 48.4 55.2

ROM Coal Mt 15 10.9 11.3 12.5 Reject Material Mt - 1.9 2.2 2.3 Saleable Product Mt - 9.0 9.0 10.2

Note: Forecast data sourced from AOP (2019)

4.2 OTHER OPERATIONS

Other operations at Bengalla during the reporting included:

• Exploration: During the reporting period, 99 boreholes were drilled within ML 1397 and ML 1729.

• Land Preparation: During the reporting period, approximately 42 hectares (ha) was disturbed, compared to the forecast 37 ha in the MOP. There was no disturbance of areas that had previously been rehabilitated. The area disturbed in 2018 is generally consistent with the disturbed area shown on the Conceptual Year 4 Mine Plan shown in Figure 15 of the Bengalla EIS.

Approximately 35,398 bank cubic metres (bcm) of topsoil was stripped compared to the predicted 150,000 bcm described in the approved MOP.

• Coal Transport: Product coal is transported via rail to the port of Newcastle. During the reporting period, 9.14 Mt of product coal was transported by rail to the Port of Newcastle.

Bengalla Mine Annual Review 2018 Page 13

BENGALLA MINING COMPANY PTY LIMITED

SSD-5170 (as modified) restricts train movements from Bengalla to a maximum of 16 laden trains per day. The total number of train movements was 1,050 with a maximum of six train movements in a day. BMC was therefore compliant with SSD-5170 conditions relating to train movements.

• Infrastructure Construction and Management: The following major projects were commenced, progressed or completed during the reporting period:

▪ New dam precinct west of Bengalla Road – Construction in progress.

▪ North Visual Bund - BMC constructed a visual bund between Wybong Road and the northern end-wall.

During the reporting period there were no variations from the current MOP related to construction works on site.

4.3 NEXT REPORTING PERIOD

Forecast operations for the next reporting period include:

• Relocation of various infrastructure;

• Decommissioning of the Satellite pit;

• Construction of the Dry Creek East Dam;

• Construction of the new dam precinct west of Bengalla Road will continue;

• Pre-production drilling program will continue.

A summary of key environmental approval and management activities proposed for 2019 is provided in Section 12.

Bengalla Mine Annual Review 2018 Page 14

BENGALLA MINING COMPANY PTY LIMITED

5 ACTION REQUIRED FROM PREVIOUS ANNUAL REVIEW

BMC received a letter from the DPE on 17 July 2018, requesting further information to satisfy the requirements of the Project Approval in relation to the Bengalla Annual Review 2017.

BMC received further correspondence from the DPE on 7 August 2018, stating that the Bengalla Annual Review 2017 is considered to satisfy the requirements of the Project Approval and the DPE’s Annual Review Guideline (October 2015).

The comments made by the DPE and the response to each are detailed in Table 9.

Table 9 Actions required from the 2017 Annual Review

Action Required from Previous Annual Review

Action taken by the Operator

Where discussed in

Annual Review

The DPE letter (17/07/18) required that the following information be provided:

a) Surface Water – Analysis of monitoring results. In accordance with Schedule 5, Condition 4, the analysis of Surface Water monitoring data is to be extended to include:

On 31/07/18 BMC provided the DPE with an addendum to the Bengalla Annual Review 2017 with the requested additional information.

N/A

i. a comparison with monitoring data from previous years,

ii. a comparison with predictions made in the Environmental Impact Assessment,

iii. identification of trends in the data over the life of the project,

iv. identify any discrepancies between the predicted and actual impacts of the development and analyse the potential cause of any discrepancies.

b) Surface Water – Figures E1, E2 and E3 in Appendix E all show missing data for the month of April 2017. Please include a brief explanation for the missing data.

Please ensure that all exceedances and non-compliances are reported to the Department in a timely manner in accordance with the requirements of Schedule 5, Condition 7.

During the 2018 reporting period BMC reported all exceedances and non-compliances to the DPE in a timely manner in accordance with the requirements of Schedule 5, Condition 7.

11

The DPE letter (07/08/18) requested that BMC:

Please make publicly available a copy of the 2017 Annual Review, with the additional information on the company website.

The Bengalla Annual Review 2017 was made publicly available on the Bengalla website on 5 September 2018.

N/A

Bengalla Mine Annual Review 2018 Page 15

BENGALLA MINING COMPANY PTY LIMITED

6 ENVIRONMENTAL MANAGEMENT & PERFORMANCE

This section describes BMC’s environmental monitoring, management and performance during the reporting period. Environmental management actions planned to be implemented in 2019 are also described, as required.

Surface Water and Groundwater environmental management and performance are discussed in Section 7.2 and Section 7.3, respectively.

6.1 METEOROLOGY

6.1.1 Environmental Management

BMC operates a meteorological station and inversion tower in the vicinity of Bengalla in accordance with the requirements of SSD-5170 and EPL 6538. The meteorological station is sited (see Figure 3), operated and monitored in accordance with the ‘Approved Methods for Sampling and Analysis of Air Pollutants in New South Wales’ (DEC, 2007), ‘Methods for Sampling and Analysis of Ambient Air: Metrological Monitoring for Ambient Air Quality Monitoring Applications’ (AS/NZS 3580.14:2014), and the ‘NSW Industrial Noise Policy’ (INP) (EPA, 2000).

Between 7 and 15 May 2018 BMC upgraded the inversion tower including replacing the existing meteorological sensors with new, calibrated meteorological sensors and upgrading the telemetry equipment and solar power supply.

6.1.2 Environmental Performance

Wind speed, wind direction, air temperature, relative humidity, solar radiation, rainfall and evapotranspiration are recorded at the meteorological station. A summary of the 2018 meteorological data is included as Appendix A.

In the EPL 6538 Annual Return 2017-18, BMC reported that it did not comply with all of the conditions of the EPL 6538. EPL 6538 Condition M4.1 requires BMC to continuously monitor 15-minute average data at the Meteorological Station and 1-hour average data at the Meteorological Station and Inversion Tower. In the Annual Return BMC reported that during the period 11 September 2017 to 10 September 2018:

• 0.2 % of the 15-minute average data and 0.1 % of the 1-hour average data was not obtained by the Meteorological Station, generally due to power interruptions;

• 1.86 % of the 15-minute average temperature lapse rate data was not obtained at the inversion tower due to miscellaneous issues; and

• 2.29 % of the 15-minute average temperature lapse rate data was not obtained due to the inversion tower undergoing an upgrade.

BMC no longer consider the above to be a non-compliance with EPL 6538 Condition M4.1, as the data capture rate at the meteorological station and inversion tower exceeded 90%. The sampling method (AM-4) specified in EPL 6538 Condition M4.1 identifies 90% completeness as the requirement for regulatory modelling applications.

Bengalla Mine Annual Review 2018 Page 16

BENGALLA MINING COMPANY PTY LIMITED

6.1.3 Further Actions

There are no additional actions planned for 2019 in regard to meteorological monitoring.

6.2 NOISE

6.2.1 Environmental Management

BMC manage noise in accordance with the approved NMP, which describes measures for monitoring and managing noise from Bengalla.

Three methods of noise monitoring are utilised at Bengalla, including:

• Compliance attended noise monitoring;

• Onsite managed supplementary attended monitoring; and

• Onsite managed unattended (Real-time) Monitoring. In accordance with the Draft Application Note, BMC focuses its assessment of noise on the night period. 6.2.2 Environmental Performance

Compliance Attended Noise Monitoring

During the reporting period, compliance attended monitoring was undertaken by an appropriately qualified acoustic consultant nominally once per calendar month (but at least two weeks apart) during the night period (10 pm to 7 am) at three locations representative of the nearest private residences (see Figure 4).

The NMP outlines the applicable criterion for the three monitoring locations. The NMP criterion are representative of the acoustic equivalent noise levels stipulated in SSD-5170 (as modified) and EPL 6538.

Operational noise (Bengalla alone and cumulatively with other sources) was measured at each monitoring location and assessed against the applicable criterion (see Appendix B).

Supplementary Attended Monitoring

Supplementary attended monitoring continued to be undertaken as an internal noise management tool for the night period. Measurements were recorded by trained BMC personnel at the same locations associated with the compliance attended monitoring.

Results from the supplementary attended monitoring are not used to determine compliance as the noise levels recorded do not represent noise solely from Bengalla.

Unattended (Real-time) Monitoring

BMC operates two continuous, unattended real-time noise monitoring units as a management tool. The locations of the two real-time noise monitoring units are shown on Figure 4.

The noise levels recorded at the real-time monitors are not used to determine compliance as the noise levels recorded do not represent noise solely from Bengalla.

Bengalla Mine Annual Review 2018 Page 17

BENGALLA MINING COMPANY PTY LIMITED

Noise Monitoring Results

Compliance with Bengalla noise criteria were assessed via the compliance attended noise monitoring program. No exceedances of the noise monitoring criteria were identified during the reporting period (Bridges Acoustics, 2018). A summary of 2018 compliance attended noise monitoring results is provided in Appendix B.

Two complaints relating to noise were received during the reporting period compared to five complaints relating to noise received in 2017 (see Section 9.3).

Comparison to Assessment Predictions

The acoustic impact assessments supporting SSD-5170 predicted that the approved operations would not produce an exceedance of the Bengalla operational specific noise criteria at any surrounding privately owned residence that was not identified as being subject to land acquisition upon request (either to BMC or the operator(s) of surrounding mines).

Noise monitoring results recorded during the reporting period were consistent with the predictions in the Bengalla EIS.

Private Residence Mitigation

In accordance with SSD-5170 (as modified), BMC is required to implement additional reasonable and feasible noise mitigation measures upon receiving written request by the landholder of the privately owned residences listed in SSD-5170.

During the reporting period, BMC received one request for additional noise mitigation from a resident identified in SSD-5170. BMC have consulted with the landowner and undertaken assessments to determine appropriate noise mitigation measures. These will be implemented in 2019 following agreement from the landholder.

6.2.3 Further Actions

BMC will review the NMP in 2019 to address any requirements of SSD-5170 MOD 4. Should amendments to the NMP be warranted, BMC will lodge the revised plan with relevant regulatory agencies for comment.

BMC will implement additional noise mitigation for Resident 126 (identified in Table 3 of SSD-5170 (as modified)) following agreement from the landholder in accordance with Schedule 3, Condition 3 of SSD-5170 (as modified).

Manobalai

Antien

MUSWELLBROOKMUSWELLBROOK

KayugaKayuga

Castle RockCastle Rock

MangoolaMangoola

Denman Road

Denman Road

Wybong RoadWybong Road

Castlerock RoadCastlerock Road

Kayuga

Road

Kayuga

Road

Denm

an R

oad

Denm

an R

oad

Sandy

Cre

ek

Sandy

Cre

ek

San

dy

Cre

ek

San

dy

Cre

ek

Whites C

reek

Whites C

reek

Ram

rod C

reek

Ram

rod C

reek

Mus

wel

lbro

ok- U

lan

Rail L

ine

Mus

wel

lbro

ok- U

lan

Rail L

ine

AN01AN01

RoxbRoxb

AN03AN03

AN04AN04RaceRace

E 29

0 00

0

N 6 430 000

N 6 426 000

N 6 422 000

E 29

4 00

0

E 29

8 00

0

E 30

2 00

0

E 30

6 00

0

E 28

6 00

0

214

214

215

219

218299

302

303

309

304

301294

308221

220

216

230 230

231

233

232

230

230230

222

228 229

217

173174

174

174204

207

208

295

296

297

300

298

206

204

198

199

205

194195

194

197

200

201

209209

210

210

203201

202

172

171

170

169168

166

160162

167

182

181

175176

177178

179

180

183184

184185188

187186N

186S189190

191165 164

193192

192192

192 163161 159

158

157

156E

156W

156S

152150

154

153149

155

148147

147

120121

125146

149

146131143142

141

9096

104

10510699

98

93

101

133

9495

132

102

131

103

130

128

108

107

109

110

111

112S

133134

135

136

133

144138

137

137

138139

140 131

145

129

126N

126C

126S

127

126125

126

124 123

211112N

113 115

114117

116 118

249 250279

243

290

291292 307

289312

313

314

1

2

66 65

64

45

46 61

63

62 67

69

80

7782

84

8685 8183

79

78

76

6870 71 72 74

75

73

4041

3929

4244

36

35

3837

3431

30

3332

28

27E27W

262125

24

2322

1917

20

16 1513

3

11

4 56

7

8

9

10

12

14

Project Boundary

Residence

Private Freehold

Bengalla Mining Company

Mt Arthur Coal

Mount Pleasant Project

Mangoola Coal

Muswellbrook Coal

Industrial Freehold

Crown

Utilities / Government Owned

Not Searched

Bengalla Mine ZOA

Mount Pleasant Project ZOA

Mangoola Coal ZOA

Mt Arthur Coal ZOA

Mt Arthur & Mount Pleasant Project ZOA

Coal Operations Australia

Hunter Valley Energy Coal

Unknown

4km0

Legend

Datum: GDA 94 (Zone 56)

BMC Attended Noise Monitoring Locations

Real Time Noise Monitor

N

BENGALLA MINE

BEN

GA

LLA

AN

NU

AL

REV

IEW

2018

Noise Monitoring Locations

FIGURE 4

Bengalla Mine Annual Review 2018 Page 19

BENGALLA MINING COMPANY PTY LIMITED

6.3 BLASTING

6.3.1 Environmental Management

BMC has developed and implemented a BMP, which sets out procedures for blast monitoring and management at Bengalla. Fume generation is managed as per the Post Blast Fume Generation Mitigation and Management Plan.

6.3.2 Environmental Performance

Blast Monitoring Program

SSD-5170 (as modified) states that blasting shall not be undertaken within 500 m of the following areas without written agreement of the relevant infrastructure authority or landowner:

• Any public road;

• The Muswellbrook-Ulan Rail Line; and

• Any land outside of the site that is not owned by the Applicant.

BMC has blasting agreements in place to facilitate blasting within 500 m of these areas, including specific procedures and vibration limits as required to protect people, livestock and infrastructure.

During the reporting period, there was an average of 2.7 blast events per week which is compliant with Schedule 3, Condition 10 of SSD-5170 (as modified), which allows a maximum of 6 blasts per week, averaged over a calendar year. A total of 139 blast events (182 individual blasts) occurred during the reporting period. Blast overpressure and vibration criteria are reproduced in Table 10, with monitoring locations shown on Figure 5.

Blast monitoring is undertaken at 11 real time blast monitors that record the following data for each blast event:

• Time and date;

• Peak vector sum (mm/s);

• Air overpressure peak (dB Linear Peak); and

• Waveform trace, where applicable.

Assessment of compliance with blast criteria for privately owned residences and public infrastructure is undertaken at three blast monitors located on non-mine owned land (see Table 11).

Bengalla Mine Annual Review 2018 Page 20

BENGALLA MINING COMPANY PTY LIMITED

Table 10 Blast Monitoring Locations and Criteria

Location Blast

Monitoring ID Criteria

Vibration Overpressure Non-Mine Owned Monitoring Locations Moore MRE

10 mm/s and 5% ≥ 5mm/s

120 dB (linear Peak) and 5% ≥ 115dB (linear Peak)

St James School SCH Blake BLK Historic Heritage Site Monitoring Locations Edinglassie Homestead EGL 10 mm/s

120 dB (linear Peak) and 5% ≥ 115 dB (linear Peak)

Bengalla Homestead BHS Mine Owned Monitoring Locations Boyle* BOY NA NA Webber* WEB NA NA Collins * COL NA NA Scriven * SCR NA NA Carter * CTR NA NA ARTC Infrastructure Wantana WAN 100 mm/s -

*Mine owned locations used as an internal management tool. NA = Not Applicable as locations on mine owned land.

Blast Monitoring Results

A summary of blast performance for the reporting period is provided in Table 11, with monitoring results for locations representative of private residences included in Appendix C. During the reporting period, results from the blast monitors on non-mine owned land did not exceed relevant impact criteria for overpressure or ground vibration.

One localised fume event occurred at Bengalla during the reporting period. See Section 11.2.

Bengalla Mine Annual Review 2018 Page 21

BENGALLA MINING COMPANY PTY LIMITED

Table 11 Blast Performance Summary 2018

Blast Summary Number of

Blasts % of Blasts

Total blast events 182 Individual

Blasts, 139 Blast

Events

-

Blasts >0.5mm/s at private residence 130 71 Average number of blasts per week 2.7 - Days with more than two blast events 29 21 Number of road closures – Wybong Rd 35 25 Number of road closures – Bengalla Link Rd 0 0 Number of rail loop closures 2 1 Exceedances of applicable vibration and overpressure criteria - - • Non Mine-owned Monitoring Locations Vibration (10 mm/sec) 0 0 • Non Mine-owned Monitoring Locations Vibration (5 % ≥5mm/sec)) 1 <1 • Non Mine-owned Monitoring Locations Overpressure (120dB) 0 0 • Non Mine-owned Monitoring Locations Overpressure (5% ≥115dB) 4 3 • Historic Heritage Site Monitoring Locations Vibration (10 mm/sec) 0 0 • Historic Heritage Site Monitoring Locations Vibration (5% ≥5 mm/sec)) 0 0 • Historic Heritage Site Monitoring Locations Overpressure (120 dB) 0 0 • Historic Heritage Site Monitoring Locations Overpressure (5% ≥115dB) 0 0 • ARTC Infrastructure (100 mm/sec) 0 0 Blast result capture rate, all non-mine owned monitors 182 100 Fume events (≥ Rating 3) 1 <1

6.3.3 Further Actions

BMC will review the BMP in 2019 to address any requirements of SSD-5170 MOD 4. Should any amendments to the BMP be warranted, BMC will lodge the revised plan with relevant regulatory agencies for comment.

Manobalai

Antien

MUSWELLBROOKMUSWELLBROOK

KayugaKayuga

Castle RockCastle Rock

MangoolaMangoola

Denman Road

Denman Road

Wybong RoadWybong Road

Castlerock RoadCastlerock Road

Kayuga

Road

Kayuga

Road

Denm

an R

oad

Denm

an R

oad

Sandy

Cre

ek

Sandy

Cre

ek

San

dy

Cre

ek

San

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Cre

ek

Whites C

reek

Whites C

reek

Ram

rod C

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Ram

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reek

Mus

wel

lbro

ok- U

lan

Rail L

ine

Mus

wel

lbro

ok- U

lan

Rail L

ine

Edinglassie

Homestead

Edinglassie

Homestead

Rous

Lench

Rous

Lench

Bengalla HomesteadBengalla Homestead

Overdene

Homestead

Overdene

Homestead

BLKBLK

SCRSCR

CTRCTR

BOYBOY SCHSCHBHSBHS

WANWAN

EGLEGL

WEBWEB

COLCOL

MREMRE

MS01MS01

E 29

0 00

0

N 6 430 000

N 6 426 000

N 6 422 000

E 29

4 00

0

E 29

8 00

0

E 30

2 00

0

E 30

6 00

0

E 28

6 00

0

214

214

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301294

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230 230

231

233

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173174

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174204

207

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295

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120121

125146

149

146131143142

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9096

104

10510699

98

93

101

133

9495

132

102

131

103

130

128

108

107

109

110

111

112S

133134

135

136

133

144138

137

137

138139

140 131

145

129

126N

126C

126S

127

126125

126

124 123

211112N

113 115

114117

116 118

249 250279

243

290

291292 307

289312

313

314

1

2

66 65

64

45

46 61

63

62 67

69

80

7782

84

8685 8183

79

78

76

6870 71 72 74

75

73

4041

3929

4244

36

35

3837

3431

30

3332

28

27E27W

262125

24

2322

1917

20

16 1513

3

11

4 56

7

8

9

10

12

14

Project Boundary

Residence

Private Freehold

Bengalla Mining Company

Mt Arthur Coal

Mount Pleasant Project

Mangoola Coal

Muswellbrook Coal

Industrial Freehold

Crown

Utilities / Government Owned

Not Searched

Bengalla Mine ZOA

Mount Pleasant Project ZOA

Mangoola Coal ZOA

Mt Arthur Coal ZOA

Mt Arthur & Mount Pleasant Project ZOA

Coal Operations Australia

Hunter Valley Energy Coal

Unknown

4km0

Legend

Datum: GDA 94 (Zone 56)

Historic Heritage Sites

Meteorological Station

Blast Monitor

N

BENGALLA MINE

BEN

GA

LLA

AN

NU

AL

REV

IEW

201

8

Blast Monitoring Network

FIGURE 5

Bengalla Mine Annual Review 2018 Page 23

BENGALLA MINING COMPANY PTY LIMITED

6.4 AIR QUALITY

6.4.1 Environmental Management

BMC has developed and implemented an AQMP, which sets out procedures for the management of odour, fume, dust and greenhouse gas emissions at Bengalla.

6.4.2 Environmental Performance

Air Quality Monitoring Program

SSD-5170 (as modified) and EPL 6538 provide impact criteria and monitoring methods required to determine air quality concentrations including particulate matter less than 10 microns (PM10), total suspended particulates (TSP) and deposited dust. Compliance with these criteria is assessed as via BMC’s air quality monitoring network.

Bengalla’s air quality monitoring network is shown in Figure 6 and comprises:

• One meteorological station and an inversion tower;

• Eight real-time air quality monitors (four E-Bam monitors and four DustTrak monitors). Six of which are linked to the RTEMS;

• Nine High Volume Air Samplers (HVAS) with five measuring TSP and four measuring PM10; and

• 27 Depositional Dust Gauges.

Meteorological monitoring is undertaken to predict adverse weather conditions. Using this information, operations can be modified to prevent dust exceedances.

BMC utilises six of the eight real-time air quality monitors to provide monitoring data beyond that required by regulatory requirements and to enable a more proactive approach to managing the operations.

BMC are required to monitor PM10 continuously at intervals of 10 minutes at EPA22, EPA23 and EPA24 in accordance with EPL 6538. In the EPL 6538 Annual Return 2017-18, BMC reported that it did not comply with EPL 6538 Condition M9.5 as data recovery at EPA22 (99.6%), EPA23 (99.8%) and EPA24 (99.8%) was less than 100% as a result of data not obtained or erroneous (i.e. negative) results. BMC no longer consider this to be a non-compliance as the monitors were operated in accordance with the sampling method specified in EPL 6538:

• Negative concentrations are a symptom of zero drift. The data loggers are programmed to initiate a zero calibration at 1 minute past the hour; and

• Missing values may occur as a result of monitor servicing and maintenance.

Manobalai

Antien

MUSWELLBROOKMUSWELLBROOK

KayugaKayuga

Castle RockCastle Rock

MangoolaMangoola

Wybong RoadWybong Road

Castlerock RoadCastlerock Road

Kayuga

Road

Kayuga

Road

Denm

an R

oad

Denm

an R

oad

Sandy

Cre

ek

Sandy

Cre

ek

San

dy

Cre

ek

San

dy

Cre

ek

Whites C

reek

Whites C

reek

Ram

rod C

reek

Ram

rod C

reek

Mus

wel

lbro

ok- U

lan

Rail L

ine

Mus

wel

lbro

ok- U

lan

Rail L

ine

PM1PM1

PM2PM2

PM3PM3

PM4PM4

HV6HV6HV1HV1

HV3HV3

HV2HV2

HV4HV4

Dust 1Dust 1

Dust 2Dust 2

Dust 3Dust 3

Dust 5/EPA22Dust 5/EPA22

Dust 4Dust 4

Dust 6Dust 6

EPA23EPA23

EPA24EPA24

D24D24

DBDBD20D20

D25D25DADA

D26D26

D21D21D19D19

D18D18

D14D14

D05D05

D06D06D09D09

D02D02

D01D01

D07AD07A

D23D23

D10D10

D08D08DCDC

D16D16

D15D15

D04AD04A

D12AD12A

D12BD12B

D12CD12C

D17D17

D13D13

MS01MS01

E 29

0 00

0

N 6 430 000

N 6 426 000

N 6 422 000

E 29

4 00

0

E 29

8 00

0

E 30

2 00

0

E 30

6 00

0

E 28

6 00

0

214

214

215

219

218299

302

303

309

304

301294

308221

220

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230 230

231

233

232

230

230230

222

228 229

217

173174

174

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207

208

295

296

297

300

298

206

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198

199

205

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194

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200

201

209209

210

210

203201

202

172

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169168

166

160162

167

182

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175176

177178

179

180

183184

184185188

187186N

186S189190

191

165164

193192

192192

192 163161 159

158

157

156E

156W

156S

152150

154

153149

155

148147

147

120121

125146

149

146131143142

141

9096

104

10510699

98

93

101

133

9495

132

102

131

103

130

128

108

107

109

110

111

112S

133134

135

136

133

144138

137

137

138139

140 131

145

129

126N

126C

126S

127

126125

126

124 123

211112N

113 115

114117

116 118

249 250279

243

290

291292 307

289312

313

314

1

2

66 65

64

45

46 61

63

62 67

69

80

7782

84

86 85 8183

79

78

76

72 7475

73

4041

3929

4244

35

3837

3431

30

3332

27E27W

262125

24

2322

1917

20

1513

3

11

4 56

7

8

9

10

12

1416

28

36

6870

71

Project Boundary

Residence

Private Freehold

Bengalla Mining Company

Mt Arthur Coal

Mount Pleasant Project

Mangoola Coal

Muswellbrook Coal

Industrial Freehold

Crown

Utilities / Government Owned

Not Searched

Bengalla Mine ZOA

Mount Pleasant Project ZOA

Mangoola Coal ZOA

Mt Arthur Coal ZOA

Mt Arthur & Mount Pleasant Project ZOA

Coal Operations Australia

Hunter Valley Energy Coal

Unknown

4km0

Legend

Datum: GDA 94 (Zone 56)

Real Time

HVAS - PM Monitor

HVAS - TSP Monitor

PM Monitor

Dust Deposition Monitor Meteorological Station

10

10

N

BENGALLA MINE

BEN

GA

LLA

AN

NU

AL

REV

IEW

201

8

Air Quality Monitoring Locations

FIGURE 6

Bengalla Mine Annual Review 2018 Page 25

BENGALLA MINING COMPANY PTY LIMITED

BMC operates eight HVAS on land representative of the closest private residences and receives data from one HVAS (PM10-3) owned and operated by Mt Arthur Coal (MAC). Monitoring of TSP and PM10 via the HVAS is a measure of compliance against SSD-5170 (as modified). Measurements are sampled every six days for a continuous 24-hour period in accordance with the ‘Methods for sampling and analysis of ambient air – Determination of suspended particulate matter – Total suspended particulate matter (TSP) - High volume sampler gravimetric method’ (AS/NZS 3580.9.3:2015) and ‘Methods for sampling and analysis of ambient air - Determination of suspended particulate matter - PM10 high volume sampler with size-selective inlet - Gravimetric method’ (AS/NZS 3580.9.6:2015).

Of the 27 dust deposition gauges monitored by BMC, 14 are situated on land representative of the closest private residences and are used to measure compliance against SSD-5170 (as modified) criteria. Sampling of dust gauges is undertaken monthly in accordance with the “Methods for Sampling and Analysis of Ambient Air – Determination of Particulate Matter – Deposited Matter – Gravimetric Method” (AS/NZS 3580.10.1:2003).

During the reporting period, BMC continued to use remote video cameras installed at infrastructure and operational locations (including the active pit and haul roads) as an air quality management tool. These cameras facilitate remote visualisation of the pit and assist in management of Bengalla operations.

Air Quality Monitoring Results

During the reporting period, monitoring results above the SSD-5170 (as modified) 24-hour average PM10 criterion of 50µg/m3 were recorded in January, February, March, May, July, August, September, November and December. BMC notified DPE upon the receipt of elevated readings. BMC engaged an independent air quality specialist to analyse the monitoring data and determine Bengalla’s contribution to each elevated reading.

During the reporting period, the annual average PM10 measurements exceeded the SSD-5170 (as modified) annual average criterion of 30µg/m3 for PM10-1 (Racecourse Road) and PM10-4 (Wybong Road West). A comparison of the PM10 monitoring results with the results for previous years are presented in Table 12.

During the reporting period, the annual average TSP concentration recorded at HV1 (Wybong Road East), HV2 (Racecourse Road) and HV6 (Wybong Rd West) was 94.3µg/m3, 91.4µg/m3 and 112µg/m3 respectively; above the SSD-5170 (as modified) annual average criterion of 90µg/m3. A comparison of the TSP monitoring results with the results for previous years are presented in Table 13.

Figure 7 provides a summary of annual average monitoring results from 2014 to 2018 for the 14 dust deposition gauges representative of the closest private residences. At the end of the reporting period, D20 had exceeded the SSD-5170 (as modified) criterion for annual average total deposited dust (4g/m2/month), however was compliant with the maximum allowable annual increase in deposited dust levels (2g/m2/month).

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All deposited dust monitoring sites were compliant with the SSD-5170 (as modified) criteria for annual average total deposited dust (4g/m2/month) and for the maximum allowable annual increase in deposited dust levels (2g/m2/month).

Table 14 provides a summary of the elevated readings recorded during the reporting period and the results of the independent analysis.

The 2018 air quality monitoring results are included in Appendix D.

Table 12 Summary of PM10 Monitoring Results

Site Location

Annual Average

PM10 Criteria (µg/m3)

2018 Annual

Average PM10

(µg/m3)

2017 Annual

Average PM10

(µg/m3)

2016 Annual

Average PM10

(µg/m3)

2015 Annual

Average PM10

(µg/m3)

2014 Annual

Average PM10

(µg/m3)

PM10-1 Racecourse Road, Muswellbrook

30 33.3 23.1 18.4 20.0 23.5

PM10-2 St James School, Muswellbrook

30 27.1 19.2 17.0 18.9 23.6

PM10-3 Mt Arthur Coal Residence, Muswellbrook

30 27.5 20.9 17.9 18.9 23.7

PM10-4 Wybong Road (West), Muswellbrook

30 38.2 28.0 21.1 22.7 23.7

Table 13

Summary of Annual Average TSP Monitoring Results

Site Location

Annual Average

TSP Criteria (µg/m3)

2018 Annual

Average TSP

(µg/m3)

2017 Annual

Average TSP

(µg/m3)

2016 Annual

Average TSP

(µg/m3)

2015 Annual

Average TSP

(µg/m3)

2014 Annual

Average TSP

(µg/m3)

HV1 Wybong Road (East), Muswellbrook

90 94.3 58.9 52.8 45.8 60.3

HV2 Racecourse Road, Muswellbrook

90 91.4 60.0 52.7 54.1 67.3

HV3 Logues Lane, Muswellbrook

90 69.7 43.9 37.6 39.1 49.3

HV4 St James School, Muswellbrook

90 71.5 49.6 44.9 44.5 60.9

HV6 Wybong Road (West), Muswellbrook

90 112 96.4 68.7 73.1 80.1

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Table 14 Summary of Elevated Dust Monitoring Results

Date of elevated

result

Result (µg/m3)

Monitor Date BMC received

Date DPE notified

Description

24 HOUR EXCEEDANCES

01/01/2018

58 PM10-4 09/02/2018 12/02/2018 BMC engaged Pacific Environment Pty Limited (PE) to investigate the elevated PM10 levels recorded at PM10-3 and PM10-4. The investigation was unable to estimate Bengalla’s contribution for PM10-3 based on the prevailing wind directions, however it is likely that Bengalla was not the dominant contributor. For PM10-4, Bengalla’s contribution is estimated at 18μg/m3. On 28/02/18, BMC provided DPE with the investigation report and a summary of operations undertaken at Bengalla on 01/01/18.

63 PM10-3 19/02/2018 20/02/2018

13/01/2018 73 PM10-1 09/02/2018 12/02/2018

BMC engaged PE to investigate the elevated reading at PM10-1. The investigation estimated Bengalla’s contribution to be a maximum of 47μg/m3. BMC submitted the investigation report and an operations summary on 28/02/2018. An updated report including reference to the inversion tower monitoring data was sent to DPE on 05/03/2018.

19/01/2018

52 PM10-1 09/02/2018 12/02/2018 BMC engaged PE to investigate the elevated readings at PM10-1, PM10-3 and PM10-4. The investigation found that based on the prevailing wind directions and other available information, Bengalla did not contribute to the measurement at PM10-1. The contribution to PM10-3 is estimated at a maximum 30μg/m3. PM10-4 contribution was unable to be quantified based on the available information, however BMC was not the dominant contributor. BMC provided DPE with the investigation report and operations summary on 06/03/18

91 PM10-3 19/02/2018 20/02/2018

120 PM10-4 09/02/2018 12/02/2018

25/01/2018

54 PM10-1

09/02/2018 12/02/2018

BMC engaged PE to investigate the elevated levels recorded at PM10-1 and PM10-4. The investigation found Bengalla was not the dominant contributor at PM10-1 and estimated a contribution of 22μg/m3 at PM10-4. BMC provided DPE with the investigation report and a summary of operations on 06/03/2018. On 20/03/18 BMC advised DPE that further information had been received, regarding activities undertaken at Bengalla. BMC provided DPE with a revised investigation report on 29/03/18. 76 PM10-4

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Date of elevated

result

Result (µg/m3) Monitor

Date BMC received

Date DPE notified Description

31/01/2018 68 PM10-4 09/02/2018 12/02/2018

BMC engaged PE to investigate the elevated level recorded at PM10-4 elevated level. The investigation estimated BMC’s contribution to be 24μg/m3. BMC provided the DPE with the investigation report and an operations summary on 06/03/2018. On 20/03/18 BMC advised DPE that further information had been received, regarding activities undertaken at Bengalla. BMC provided DPE with a revised investigation report accounting for the new information on 29/03/18.

06/02/2018*

61 PM10-4 07/03/2018 07/03/2018

BMC engaged PE to investigate the elevated level recorded at PM10-4. The investigation report concludes that Bengalla did not contribute more than 50μg/m3 to the elevated reading and was not the dominant contributor to the elevated reading. On 29/03/2018, BMC provided DPE with the investigation report and a summary of operations undertaken at Bengalla on 06/02/18. On 02/05/18, DPE notified no further action would be undertaken.

12/02/2018*

57 PM10-4 07/03/2018 07/03/2018

BMC engaged PE to investigate the elevated PM10 level recorded at PM10-4. The investigation report concludes that Bengalla operations contributed a maximum of 7μg/m3 to the elevated reading at PM10-4. BMC provided DPE with the investigation report and a summary of operations on 29/03/2018. On 02/05/18, DPE notified no further action would be undertaken.

18/02/2018*

60 PM10-1

07/03/2018 07/03/2018

BMC engaged PE to investigate the elevated levels recorded at PM10-1 and PM10-4. The investigation report concludes that Bengalla had a maximum contribution of 2.4μg/m3 at PM10-1. The report further concludes that Bengalla was not the dominant contributor to the elevated reading at PM10-4. BMC provided DPE with the investigation report and a summary of operations on 29/03/2018. On 02/05/18, DPE notified no further action would be undertaken.

99 PM10-4

02/03/2018*

53 PM10-4 09/04/2018 10/04/2018

BMC engaged Environmental Resources Management Pty Limited (ERM) to investigate the elevated level recorded at PM10-4. The investigation report concludes that Bengalla did not contribute more than 50μg/m3 and suggests that Bengalla was not the dominant contributor. On 20/04/18, BMC provided DPE with the investigation report and a summary of operations undertaken at Bengalla on 02/03/18. On 02/05/18, DPE notified no further action would be undertaken.

20/03/2018*

69 PM10-1 09/04/2018 10/04/2018

BMC engaged ERM to investigate the elevated PM10 levels recorded on 20/03/18. The investigation report concludes that Bengalla did not contribute more than 50μg/m3 to any of the elevated readings. The report considers that a regional dust event was the dominant cause of the elevated readings. On 20/04/18, BMC provided DPE with the investigation report and a summary of operations undertaken at Bengalla on 20/03/18. On 02/05/18, DPE notified no further action would be undertaken.

99 PM10-2

71 PM10-3 17/04/2018 17/04/2018

93 PM10-4 09/04/2018 10/04/2018

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Date of elevated

result

Result (µg/m3) Monitor

Date BMC received

Date DPE notified Description

25/05/2018 59 PM10-4 12/06/2018 15/06/2018

BMC engaged ERM to investigate the elevated PM10 level recorded at PM10-4. The investigation found that Bengalla did not contribute more than 50μg/m3 to the elevated reading. Based on the prevailing wind directions it is estimated that Bengalla’s operations (in conjunction with Mt Pleasant construction activities) contributed a maximum of 29μg/m3 to the measurement at monitor PM10-4. On 25/06/18, BMC provided DPE with an email containing an investigation report and operations summary. On 09/07/18, DPE notified no further action would be undertaken.

24/07/2018 71 PM10-1 07/08/2018 07/08/2018

BMC investigated the elevated PM10 level recorded at PM10-1. In an email dated 10/08/18, BMC provided DPE with the investigation report. The investigation found that it was not possible to determine the Bengalla alone contribution however, based on the prevailing wind directions it is estimated that Bengalla and the Mt Pleasant infrastructure contributed a maximum of 19μg/m3 to the measurement at PM10-1. On 30/08/2018, BMC provided DPE with a revised investigation report following request for additional information. On 06/09/18, DPE notified no further action would be undertaken.

23/08/2018 65 PM10-4 11/09/2018 12/09/2018

BMC engaged ERM to investigate the elevated PM10 level recorded at PM10-4. In an email dated 20/09/18, BMC provided DPE with the investigation report which concludes the contribution of Bengalla to be less than 50μg/m3. Considering the prevailing wind directions, it is estimated that the Bengalla operations and the recently completed Mt Pleasant construction contributed a maximum of 47μg/m3 to the elevated reading at PM10-4 and that the Bengalla dam construction contributed a maximum of 32μg/m3 to the elevated reading. On 24/09/18, DPE notified no further action would be undertaken.

22/09/2018 53 PM10-1 10/10/2018 11/10/2018

BMC engaged ERM to investigate the elevated levels recorded at PM10-1. In an email dated 18/10/18, BMC provided DPE with the investigation report. The report concludes Bengalla's contribution to be less than 50μg/m3, estimated at a maximum contribution of 10μg/m3 at PM10-1. On 23/10/2018, the DPE notified no further action would be undertaken.

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Date of elevated

result

Result (µg/m3) Monitor

Date BMC received

Date DPE notified Description

09/11/2018 51 PM10-4 10/12/2018 10/12/2018

BMC engaged ERM to investigate the elevated PM10 levels recorded on 09/11/18 and to determine Bengalla’s contribution to the elevated levels. In an email dated 18/12/18, BMC provided DPE with the investigation report. The report concludes that Bengalla did not contribute more than 50μg/m3 to the elevated reading. Based on the prevailing wind directions, it is estimated that Bengalla’s operations (together with the Mt Pleasant recently completed construction area) contributed a maximum of 29μg/m3 and the Bengalla dam construction area contributed a maximum of 26μg/m3 to the measurement at monitor PM10-4. On 19/12/2018, the DPE notified no further action would be undertaken.

27/11/2018 56 PM10-4 10/12/2018 10/12/2018

BMC engaged ERM to investigate the elevated PM10 levels. On 18/12/18, BMC provided DPE with the investigation report concluding that Bengalla did not contribute more than 50μg/m3 to the elevated reading. Based on the prevailing wind directions, it is estimated that Bengalla’s operations (together with the Mt Pleasant recently completed construction area) contributed a maximum of 14μg/m3 and the Bengalla dam construction area contributed a maximum of 29μg/m3 to the measurement at monitor PM10-4. On 19/12/2018, the DPE notified no further action would be undertaken.

09/12/2018

58 PM10-3 15/01/2019 15/01/2019 BMC engaged ERM to investigate the elevated PM10 levels. On 16/01/19, BMC provided DPE with the investigation report concluding that Bengalla did not contribute more than 50μg/m3 to the elevated reading. Based on the prevailing wind directions, it is estimated that Bengalla’s operations contributed a maximum of 15μg/m3 to the measurement at monitor PM10-3 and maximum of 28μg/m3 to the measurement at monitor PM10-4. On 22/12/2018, the DPE notified no further action would be undertaken.

71 PM10-4 07/01/2019 08/01/2019

27/12/2018

63 PM10-3 15/01/2019 15/01/2019 BMC engaged ERM to investigate the elevated PM10 levels. On 16/01/19, BMC provided DPE with the investigation report concluding that Bengalla did not contribute more than 50μg/m3 to the elevated reading. Based on the prevailing wind directions, it is estimated that Bengalla’s operations contributed a maximum of 22μg/m3 to the measurement at monitor PM10-3 and maximum of 43μg/m3 to the measurement at monitor PM10-4. On 19/12/2018, the DPE notified no further action would be undertaken.

84 PM10-4 07/01/2019 08/01/2019

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ANNUAL AVERAGE EXCEEDANCES

27/12/2018 33.3 PM10-1

07/01/2019 08/01/2019 BMC engaged ERM to investigate the elevated annual average PM10, TSP and depositional dust levels. As at 31/12/18 the investigation is ongoing. 38.2 PM10-4

27/12/2018 94.3 HV1

07/01/2019 08/01/2019 91.4 HV2 112 HV6

17/12/2018 4.6

g/m2/ month

D20 7/01/2019 08/01/2019

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BENGALLA MINING COMPANY PTY LIMITED

Figure 7 Depositional Dust Monitoring Results 2014-2018

Comparison to Assessment Predictions

The results from the Bengalla air quality monitoring network was found to be generally consistent with the impact predictions made in the EIS air quality assessment. Elevated readings at the Bengalla monitors are in part due to elevated background concentrations.

Private Residence Mitigation

In accordance with SSD-5170 (as modified), BMC is required to implement additional reasonable and feasible air quality mitigation measures upon receiving written request by the landholder of the privately-owned residences listed in SSD-5170.

During the reporting period, there were no written requests for the installation of additional air quality mitigation received from the owner of any privately-owned residence.

6.4.3 Further Actions

BMC will review the AQMP in 2019 to address any requirements of SSD-5170 MOD 4. Should any amendments to the AQMP be warranted, BMC will lodge the revised plan with relevant regulatory agencies for comment.

6.5 SPONTANEOUS COMBUSTION

Occurrences of spontaneous combustion are infrequent at Bengalla due to the inert nature of the strata and proactive stockpile management. The environmental risk associated with spontaneous combustion at Bengalla has been assessed as low to moderate.

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6.5.1 Environmental Management

Affected areas in the pit are capped with inert material as soon as practical to minimise smoke or odour generation. To minimise the possibility of spontaneous combustion at Bengalla, reject and carbonaceous material is emplaced below the final landform surface in accordance with the MOP.

6.5.2 Environmental Performance

One spontaneous combustion incident was recorded at Bengalla during the reporting period. See Section 11.1.

6.5.3 Further Actions

There are no additional actions planned for 2019 in regard to the management of spontaneous combustion.

6.6 GREENHOUSE GAS

6.6.1 Environmental Management

SSD-5170 requires BMC to implement reasonable and feasible measures to minimise the release of greenhouse gas (GHG) emissions from Bengalla.

BMC contributes to several research and development initiatives that investigate GHG minimisation (see Table 15).

Table 15 Greenhouse Gas Emission Reduction Research and Development Initiatives

Program Outcomes COAL21 Australian black coal producers contribute a voluntary levy to the Coal21 Fund to

support the development of low emission coal technology in Australia.

Australian Coal Association Research Programme (ACARP)

Australian black coal producers contribute five cents per tonne of product coal to fund research and the development of technologies that lead to the safe, sustainable production and utilisation of coal. ACARP is currently coordinating work to develop improved methods for estimating fugitive emissions from underground coal mining. There is also considerable research activity on the reduction of dust emissions from coal during transport to and storage at the major export terminals in Australia and to understand opportunities to reduce fugitive greenhouse gas emissions from mines.

6.6.2 Environmental Performance

At the end of each Financial Year (FY) BMC reports on the emissions of certain substances to the NPI. GHG emissions, energy consumption and production data is also reported under the National Greenhouse and Energy Reporting (NGER) Scheme.

National Pollutant Inventory

In the 2018 FY, BMC’s NPI report included 31 substances, one more substance than was reported in 2017 FY. In 208 FY, antimony exceeded the usage threshold of 10 t.

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In 2018 FY, BMC triggered the emissions and transfers reporting requirements for 28 of the 31 reportable substances, an increase of two more emissions and transfer substances then 2017 FY. Overall, usage of all 31 reported substances increased between 12% and 15%, in line with the increase in activity on site.

National Greenhouse and Energy Reporting

During the reporting period BMC was required to report on Bengalla’s GHG emissions, energy consumption and energy production for the 2018 FY.

During 2018 FY Bengalla emitted 486,988 t CO2e, a 1% decrease from 488,056 t CO2-e emitted in the 2017 FY. Scope 1 emissions decreased by 1% generally due to an 8% decrease in fugitive gas emissions. Scope 2 emissions increased by 4% due to an increase in electricity purchased. Overall, total emissions reported for 2018 FY are similar to total emissions reported for 2017 FY.

Energy consumed and produced increased (14% and 7% respectively) in line with the increase in fuel usage and coal produced.

A comparison of the 2018 FY NGER results with the results for previous FYs are presented in Table 16 and Table 17.

Table 16 Energy Consumed and Produced FY 2016 to 2018

Energy 2018 2017 2016

Consumed (GJ) 2,504,231 2,197,415 2,125,664

Produced (GJ) 248,063,567 232,020,274 228,448,957

Table 17

Greenhouse Gas Emissions 2016 to 2018

Greenhouse Gas Emissions 2018 2017 2016

Scope 1 (tCO2-e) 425,713 429,011 508,678 Scope 2 (tCO2-e) 61,274 59,046 64,007

Total (tCO2-e) 486,988 488,057 572,686

6.6.2.1 Safeguard Mechanism

Starting on 1 July 2016, the Australian Government introduced a Safeguard Mechanism under subsection 22XS of the NGER Act. Responsible emitters controlling facilities whose net emissions exceed the safeguard threshold (100,000 t CO2-e per year) must keep their emissions at or below a baseline set by the Clean Energy Regulator (CER).

The CER allocated a baseline to each facility in accordance with the facility’s highest annual reported NGER emissions for the five years commencing 2010 FY and ending 2014 FY. The CER allocated a reported-emissions baseline of 443,494 t CO2-e to BMC based on the NGER emissions reported in the 2010 FY.

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BENGALLA MINING COMPANY PTY LIMITED

With 425,713 t CO2e Scope 1 emission for the 2018 FY, Bengalla was below its reported-emissions baseline by 17,781 t CO2-e.

6.6.3 Further Actions

There are no additional actions planned for 2019 in regard to the management of greenhouse gases.

6.7 NON-MINERAL WASTE

6.7.1 Environmental Management

BMC has developed and implemented a non-mineral waste management system at Bengalla to allow the appropriate disposal, tracking and reporting of non-mineral waste. The non-mineral waste management contractor is accountable for monitoring and recording volumes of each waste type collected and the offsite management of waste (offsite disposal or offsite recycling).

6.7.2 Environmental Performance

During the reporting period, approximately 1,295 t of waste was recycled. This volume represents approximately 78% of the offsite non-mineral waste generated at Bengalla during 2019. The total volume of material disposed of externally in 2018 was 1,653 t, a decrease in volume from 2017 (1,718 t). The major waste streams recycled at Bengalla in 2018 were scrap metal, waste oil and co-mingled recycling.

There were no non-compliances with regulatory requirements in relation to non-mineral waste management in 2018.

6.7.3 Further Actions

There are no additional actions planned for 2019 in regard to the management of non-mineral waste.

6.8 MINERAL WASTE

6.8.1 Environmental Management

Management of mineral waste at Bengalla in 2018 was undertaken in accordance with the MOP and the ‘BMC Acid Rock Drainage’ (ARD) and Mineral Waste Management Plan’.

6.8.2 Environmental Performance

In accordance with the ARD and Mineral Waste Management Plan, BMC maintains a mineral waste inventory of the volumes of inert and Potentially Acid Forming waste disposed on site and disposal locations.

The volumes of total mineral waste generated and stored at Bengalla in 2018 are summarised in Table 8, which showed a CHPP yield of approximately 80% product coal from the ROM processed, which is slightly lower than the CHPP yield of approximately 83% in 2017.

Dragline total prime interburden moved in 2018 was 9.45 Mbcm. Of this, 1.10 Mbcm consisted of Wynn interburden (Archerfield Sandstone) from Strip 29 and 30.

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BENGALLA MINING COMPANY PTY LIMITED

In 2018, the truck fleet combined with throw blasting moved 38.98 Mbcm of prime overburden and interburden. Of this, 0.36 Mbcm consisted of Wynn interburden (Archerfield Sandstone) from Strip 29 and 30. The BMC truck fleet also transported 1.1 Mbcm of reject material from the CHPP for co-disposal into the OEA. Of the 48.43 Mbcm of total mineral waste placed in the OEA in 2018, a total of 2.57 Mbcm (or 5.3%) of the overall material comes from the Wynn interburden or rejects (potential acid forming material). The remaining 45.86 Mbcm (or 94.7%) of mineral waste was made up of all the other overburden and interburden units (acid neutralising material).

6.8.3 Further Actions

There are no additional actions planned for 2019 in regard to the management of mineral waste.

6.9 CONTAMINATED LAND

6.9.1 Environmental Management

Land contamination may occur as a result of hydrocarbon or other chemical spills. Bengalla implements control strategies and procedures for hydrocarbon and chemical management, including:

• Waste management, minimisation and recycling

• Prompt spill response and remediation;

• Bunding and containment to isolate and prevent site contamination; and

• Soil monitoring for Total Petroleum Hydrocarbon levels at the Bengalla bioremediation area as required.

6.9.2 Environmental Performance

During the reporting period, there were no non-compliances relating to the management of hazardous materials and contaminated land.

A summary of incidents for 2018 (including for hydrocarbon and chemical spills) is presented in Section 11.2.

6.9.3 Further Actions

There are no additional actions planned for 2019 in regard to the management of contaminated land.

6.10 ABORIGINAL ARCHAEOLOGY & CULTURAL HERITAGE

6.10.1 Environmental Management

The management of Aboriginal archaeology and cultural heritage at Bengalla is undertaken in accordance with the National Parks and Wildlife Act 1974 and the Environmental Planning and Assessment Act 1979 via the approved ACHMP.

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BENGALLA MINING COMPANY PTY LIMITED

6.10.2 Environmental Performance

Areas disturbed in the course of Bengalla’s activities in 2018 were assessed for potential impacts to Aboriginal archaeology as part of the GDP process.

BMC advised the Registered Aboriginal Party (RAP) representatives on 19 November 2018 that the salvaged Aboriginal Artefacts are securely stored within the Bengalla offices. No feedback was received from the RAP representatives.

No unapproved impacts to Aboriginal heritage items occurred during 2018.

6.10.3 Further Actions

BMC will review the ACHMP in 2019 to address any requirements of SSD-5170 MOD 4. Should any amendments to the ACHMP be warranted, BMC will lodge the revised plan with the relevant regulatory agencies and stakeholders for comment.

6.11 NON-ABORIGINAL HERITAGE

6.11.1 Environmental Management

Two European heritage sites are located in the vicinity of Bengalla (Bengalla Homestead c1877 and the Overdene Homestead c1860). Both sites are of local heritage significance, as listed in the Heritage Act 1977 register of Heritage Orders, the Hunter Regional Plan 1989 (Heritage), the Muswellbrook Local Environmental Plan 2009 and the National Trust register.

BMC has developed and implemented a HHMP, which describes the requirements for the ongoing management and conservation of the Bengalla and Overdene Homesteads.

6.11.2 Environmental Performance

Dilapidation assessments of the Bengalla and Overdene Homesteads were completed in November 2018. Maintenance works were conducted at the Homesteads throughout the reporting period. A summary of the 2018 maintenance and preservation works completed by BMC at the Homesteads is presented in Table 18.

6.11.3 Further Actions

BMC will review the HHMP in 2019 to address any requirements of SSD-5170 MOD 4. Should any amendments to the HHMP be warranted, BMC will lodge the revised plan with relevant regulatory agencies for comment.

BMC will continue to implement the program of Homestead maintenance and preservation works as identified HHMP.

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Table 18 Short Term Maintenance of the Bengalla and Overdene Homesteads 2018

Reference Maintenance Response Status BENGALLA HOMESTEAD

Whole Complex HHMP Appendix C, Section 7.3

3 monthly termite inspection Termite inspections were completed in December 2018. The inspection identified recent termite activity. BMC commenced termite baiting in December 2018.

On-going

Building 1 – Homestead and Service Wing HHMP Appendix C, Section 7.3

Quarterly testing of fire management system The fire alarm back to base system was inspected monthly. The fire extinguishers were changed out on 9/04/18 and 17/10/2018.

Complete

HHMP Appendix C, Section 7.3

Remediate appropriately damage caused by settlement, both internal and external, to north eastern corner of Homestead including the following: - Crack below Window 1; - Restoration of eroded mortar to brickwork in south eastern corner; and - Fix crack in plinth beneath eroded mortar.

The drainage was repaired in 2017 and the brick work was repaired in 2018.

Complete

HHMP Appendix C, Section 7.3

Re-mortar lower 4-6 courses of brickwork around doors 8 and 9 and beneath Window 12

Works completed in 2018 Complete

Building 3 – Underground Cistern HHMP Appendix C, Section 7.3

Maintain to prevent further deterioration. Visual inspection undertaken in 2018. No maintenance works required.

On-going

Building 5 – Toilet/Shower HHMP Appendix C, Section 7.3

Undertake minimal maintenance to ensure stability of building New roof and fascia boards installed. Downpipes repaired. On-going

Building 6 - Gazebo HHMP Appendix C, Section 7.3

Quarterly inspection to ensure guttering is functioning and draining adequately

Inspected in 2018. No maintenance works required. On-going

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Reference Maintenance Response Status Building 7 - Laundry HHMP Appendix C, Section 7.3

Retain any salvageable materials, including the laundry sink and bricks, for reuse elsewhere on site or for reconstruction. Materials to be stored in a suitable location with protection from the elements.

Laundry reconstructed using salvageable materials. New roof installed.

Complete

Building 8 – Book‐keeper’s Cottage HHMP Appendix C, Section 7.3

Stabilise footing defects. Works completed in 2018. Complete

Building 9 – Tennis Court HHMP Appendix C, Section 7.3

Maintain in current condition. Lawn maintenance undertaken as required. On-going

Building 12 – Modern Water‐Tower HHMP Appendix C, Section 7.3

Maintain to prevent further deterioration No maintenance works required in 2018. On-going

Building 13 – Stockyards HHMP Appendix C, Section 7.3

Maintain in current condition. No maintenance works required in 2018. On-going

OVERDENE HOMESTEAD External HHMP Appendix D, Section 6.4

Treat termites and/or other pests appropriately. Termite inspections were completed in 2018. No evidence of recent termite activity was identified.

On-going

HHMP Appendix D, Section 6.4

Repair damage caused by termites, where integral to structural integrity.

No works required in 2018. On-going

HHMP Appendix D, Section 6.4

Check and repair/replace, if necessary, the roof, all downpipes, guttering and drainage gulleys for leaks and to ensure free‐flowing drainage.

Inspected in 2018. No maintenance works required. On-going

HHMP Appendix D, Section 6.4

Tighten existing tie rods Works undertaken in 2018. On-going

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Reference Maintenance Response Status HHMP Appendix D, Section 6.4

Repair mortar where necessary, internally and externally. Internal mortar continued to be monitored throughout 2018. On-going

Internal HHMP Appendix D, Section 6.4

Undertake a detailed inspection of the foundations and rectify/repair, including hall archway and fireplace in Room 3.

Inspected in 2018. No maintenance works required. On-going

HHMP Appendix D, Section 6.4

Investigate and determine appropriate work required: • Northern wall where the verandah has been removed is

damaged and leaning • Cracking in eastern wall adjacent W1 • Room R1 - Floorboards rotting and wasp nests present • Room R2 – cracking and dislodgment to render of doorway

D9 with some pieces to be removed for safety purposes • Room R4 – mortar missing or eroded in bottom 6 courses of

brickwork in eastern wall (may be due to rising damp). • Room R5 – hole in roof • Hallway – damp timber potentially caused by leaking roof

and D11 frame hollow suggesting termites

BMC will continue to implement maintenance and preservation works where required.

On-going

Bengalla Mine Annual Review 2018 Page 41

BENGALLA MINING COMPANY PTY LIMITED

6.12 FLORA & FAUNA

6.12.1 Environmental Management

SSD-5170 (as modified) and EPBC Approval 2012/6312 require BMC to manage biodiversity at Bengalla and to maintain selected offsite lands as an offset for the impacts to biodiversity predicted in the Bengalla EIS.

6.12.2 Environmental Performance

Onsite Biodiversity Management & Mitigation

Biodiversity management at Bengalla is described in the BDMP, which includes the following:

• Pre-clearance and staged clearance procedures;

• Management strategies for weed and feral animal control; and

• A program to monitor and report on the effectiveness of biodiversity management measures.

A summary of commitments from the BDMP against activities undertaken during the reporting period and an annual Compliance Report against the conditions of EPBC Approval 2012/6378 are included in Appendix E.

Offsite Biodiversity Management & Mitigation

BMC manages approximately 6,215 ha of offsite land under the BOMP. The location of the offset properties in relation to Bengalla is illustrated on Figure 8.

During the reporting period, BMC undertook several management programs on the offset properties, including but not limited to:

• Weed inspections and weed spraying program;

• Dog baiting and trapping programs;

• Sand pad monitoring program;

• Fire trail maintenance and hazard reduction burns across all offsets; and

• Summer and Winter ecological surveys.

BMC attended various meetings with relevant stakeholders including adjoining private neighbours, National Parks and Wildlife Services, Local Land Services (LLS), various Wild Dog Associations, Rural Fire Service representatives and local weeds inspectors.

The EPBC Compliance Report (Appendix E) did not identify any non-compliances with the conditions of EPBC 2012/6378.

Bengalla Mine Annual Review 2018 Page 42

BENGALLA MINING COMPANY PTY LIMITED

Conservation Bond

As per Schedule 3, Condition 30 of SSD-5170 (as modified), BMC are required to lodge a conservation bond with DPE to ensure the biodiversity offset strategy is implemented in accordance with the BOMP performance and completion criteria. BMC lodged the conservation bond (four bank guarantees as per BJV ownership percentage at the time) to the DPE offices in Sydney on 1 June 2018.

Offset Ecological Surveys

The biodiversity offset ecological monitoring program commenced in 2016 and continued in 2018. The purpose of the program is to monitor the ongoing status and health of flora and fauna in the biodiversity offset areas to determine if the ‘maintain and enhance’ objective of the BOMP is being achieved. The monitoring programme is a requirement of SSD-5170 (as modified) and EPBC 2012/6378.

A total of 28 permanent flora monitoring sites were established and surveyed, including six woodland (Zone 1), six grasslands (Zone 2), and two riparian sites (Zone 3) within the Kenalea Properties; seven woodland (Zone 1) sites, and one riparian site (Zone 3) within Black Mountain; and six woodland (Zone 1) sites within Merriwa River. A suite of additional surveys were also undertaken during the reporting period.

The data collected in 2018 represents the second year of annual monitoring, following the collection of baseline data in 2016. As identified in the BOMP, key performance criteria require a larger data set, collected over several years. Subsequent years of monitoring will provide additional data to enable further detailed assessment against criteria.

Bushfire Hazard Reduction Burns

In January 2018, a bushfire occurred at the Kenalea offset property, burning approximately 385ha over two weeks. Following the bushfire, BMC undertook several fuel load assessments to identify areas of ‘extreme’ risk. BMC then engaged LRM Fire and Rescue to undertake four hazard reduction burns from August 2018 to November 2018, totalling 918 ha.

6.12.3 Further Actions

Should any amendments to the BOMP be required, BMC will review and submit a revised version of the BOMP to DoEE and DPE for comment and approval.

MuswellbrookMuswellbrook

SingletonSingleton

Moonan FlatMoonan Flat

BowBow

MerriwaMerriwa

Upper

Dartbrook

Upper

Dartbrook

Kars SpringsKars Springs

BelltreesBelltrees

Dry CreekDry CreekWingenWingen

GundyGundy

ParkvilleParkville

Owens GapOwens Gap

BunnanBunnan

Stewarts BrookStewarts Brook

SaturSatur

SegenhoeSegenhoe

SconeScone

GlenbawnGlenbawn

MoobiMoobi

Upper RouchelUpper Rouchel

DartbrookDartbrook

RossgoleRossgole

ManobalaiManobalai

DangarfieldDangarfield RouchelRouchel

Rouchel BrookRouchel Brook

AberdeenAberdeen

Davis CreekDavis Creek

GungalGungal

McCullys GapMcCullys GapKayugaKayuga

Castle RockCastle Rock

Bowmans CreekBowmans CreekWybongWybong

Muscle CreekMuscle CreekCarrowbrookCarrowbrook

RoxburghRoxburgh

Sandy HollowSandy Hollow

HebdenHebden

LostockLostock

HollydeenHollydeen MangoolaMangoola

AntieneAntiene

GreenlandsGreenlandsDenmanDenmanEddertonEdderton

St ClairSt Clair

MyambatMyambat

BaeramiBaerami

WestbrookWestbrook

BylongBylong

YarrawaYarrawa

Mount OliveMount Olive

Jerrys PlainsJerrys Plains

LiddellLiddellMurrumboMurrumbo

RavensworthRavensworth

WiddenWidden

DalswintonDalswinton

Reedy CreekReedy Creek

HowickHowick

KerrabeeKerrabee

MartindaleMartindale

BureenBureen

DyrringDyrringCamberwellCamberwell

Doyles CreekDoyles Creek

WarkworthWarkworth

Lambs ValleyLambs Valley

Lee CreekLee Creek

ObanvaleObanvale

DuralDural

ElderslieElderslie

Long PointLong PointRoughitRoughit

Big RidgeBig RidgeGlenriddingGlenridding GlendonGlendon

WhittinghamWhittingham Lower BelfordLower BelfordHambledon HillHambledon Hill

Mount ThorleyMount Thorley

HillsboroughHillsborouDalwoodDalwood

Manobalai

Nature

Reserve

Manobalai

Nature

Reserve

Goulburn River

National Park

Goulburn River

National Park

Wollemi

National Park

Wollemi

National Park

Wollemi

National Park

Wollemi

National Park

Mount Royal

National Park

Mount Royal

National Park

Barrington Tops

National Park

Barrington Tops

National Park

Woolooma

National Park

Woolooma

National Park

Wollemi

National Park

Wollemi

National Park

Towarri

National

Park

Towarri

National

Park

UPPER HUNTERLGA

MUSWELLBROOKLGA

SINGLETONLGA

Merriwa River

Black Mountain

Kenalea Properties

Lake Glenbawn

State Recreation Area

Lake Glenbawn

State Recreation Area

Project Location

B84

A43

A15

B84

GOLDEN HIGHWAY

GOLDEN HIGHWAY

Bunan Road

Bunan Road

Scone Road

Scone Road

Wybong RoadWybong Road

Alb

ano

Road

Alb

ano

Road

Hunter RoadHunter Road

Merr

iwa

Riv

er

Merr

iwa

Riv

er

Merriw

aR

iver

Merriw

aR

iver

Pages River

Pages River

Rouchel BrookRouchel Brook

Lake

Glenbawn

Lake

Glenbawn

Lake

Liddell

Lake

Liddell

Plashett

Reservoir

Plashett

Reservoir

Lake

St Cllair

Lake

St Cllair

E 26

0 00

0

N 6 460 000

N 6 440 000

N 6 420 000

E 28

0 00

0

E 30

0 00

0

E 32

0 00

0

E 34

0 00

0

Project Boundary

National Park and Wildlife Estate

State Forest

Black Mountain Offset Area

Merriwa River Offset Area

Kenalea Properties Offset Area

Major Road

Minor Road

Rail line

Legend

20km0

Datum: GDA 94 (Zone 56)

BEN

GA

LLA

AN

NU

AL

REV

IEW

2018

N

BENGALLA MINE

Biodiversity Offset AreasStanhopeStanhope

FIGURE 8

Bengalla Mine Annual Review 2018 Page 44

BENGALLA MINING COMPANY PTY LIMITED

6.13 WEEDS & PEST MANAGEMENT

6.13.1 Environmental Management

Weed and pest management at Bengalla and its offset properties is undertaken in accordance with Bengalla's approved BDMP and BOMP, respectively.

Periodic inspections are undertaken for weed and pest management, as required, to eradicate targeted species. Weed and pest control at Bengalla and on the Bengalla offset properties is undertaken through respective chemical and baiting applications.

6.13.2 Environmental Performance

6.13.2.1 Weed Management

Bengalla

In 2018, approximately 350 ha was treated for the management of weeds during the reporting period (see Figure 9) compared to approximately 388 ha treated in 2017. Target weed species included African boxthorn, galenia, prickly pear and other environmental weeds. Priority areas for treatment included the rehabilitation areas, topsoil stockpiles and GDP areas (prior to topsoil stripping).

Observations during the weed treatment program and follow up inspections indicate that treatment methods used during the reporting period have generally been effective in reducing the presence of weeds in target areas.

Offsets

BMC undertook an inspection with the Upper Hunter Weeds Authority on 20 February 2018. No issues were raised during the inspection.

Weeds treated at the offset properties in 2018 included a suite of environmental weeds, Prickly Pear and Tiger Pear. St John’s Wort was not prevalent during the reporting period, largely due to drier conditions experienced during the summer period.

Observations during the weed treatment program and follow up inspections indicate that treatment methods used on the offset properties during the reporting period have generally been effective in reducing the presence of weeds in target areas.

6.13.2.2 Pest Management

Bengalla

BMC undertook a pig baiting program at Bengalla following reports of pigs near the train loading facility.

In spring 2018 BMC undertook a wild dog ground baiting program at Bengalla in conjunction with the local Wild Dog Association. A total of 35 foxes and 3 dogs were reported to be baited over the course of the program.

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BENGALLA MINING COMPANY PTY LIMITED

A suitably qualified contractor was engaged to undertake a pigeon shooting program to control the population which was significantly impacting personnel and equipment operating at the CHPP and workshop. The pigeon control program was undertaken on one occasion during the reporting period.

Offsets

BMC undertook two 4-week dog ground baiting programs across all offset properties; including two aerial dog baiting programs in May 2018 and November 2018; and two dog trapping programs in conjunction with the LLS. A total of 14 dogs were trapped at Black Mountain during the reporting period.

BMC undertook a pig trapping program that included a total of 10 traps on Black Mountain and Kenalea. The pig trapping program was undertaken over two seasonal programs (winter and summer) throughout 2018. A total of 50 pigs were trapped over a total of 82-day program. Although these species are exotic pests, due to low numbers, they are not considered to be a major threat to the native flora and fauna on the offset properties.

BMC undertook two open range operations targeting kangaroos, pigs, wild dogs and deer. BMC obtained approval from National Parks and Wildlife Services (NPWS) to undertake a kangaroo culling program. A suitably qualified contractor was engaged to undertake the culling program from October to December, with a total of 262 kangaroos and 44 wallabies being controlled.

In addition, LLS undertook an aerial shooting program as part of the Upper Hunter Aerial Shooting program in June/July 2018 at Black Mountain and Kenalea. A total of 264 pigs, 42 deer and 1 wild dog were controlled during the aerial shooting program.

6.13.3 Further Actions

There are no additional actions planned for 2019 in regard to weed and pest management.

Datum: GDA 94 (Zone 56)

BEN

GA

LLA

AN

NU

AL

REV

IEW

2018

BENGALLA MINE

Weed Management Areas 2018

FIGURE 9

N

Bengalla Mine Annual Review 2018 Page 47

BENGALLA MINING COMPANY PTY LIMITED

6.14 VISUAL AMENITY & LIGHTING

6.14.1 Environmental Management

BMC is required to implement reasonable and feasible measures to mitigate the visual and offsite lighting impacts of the development and ensure no outdoor light shines above the horizontal. The management of lighting impacts from Bengalla is undertaken in accordance with Bengalla’s procedure for the Management of Lighting Impacts from Operations.

General and site specific visual impact mitigation measures for Bengalla are outlined in the Bengalla Visual Impact Mitigation Plan (VIMP). The specific mitigation measures outlined in the VIMP aim to reduce the visual impact of Bengalla’s operations at the private residences listed in SSD‐5170 Table 14. The owners of the private residences listed in SSD‐5170 Table 14 are entitled to additional visual mitigation measures upon request. During the reporting period no visual impact mitigation measures were requested by residents.

6.14.2 Environmental Performance

6.14.2.1 Tree Screening Along Public Roads

Within two years of the commencement of development under SSD-5170 (as modified) (Schedule 3, Condition 40), BMC is required to plant tree screening along sections of Denman Road, Roxburgh Road and Wybong Road that will have direct views of the Bengalla mining operations. The screening must be planted in consultation with the MSC and, where required, the NSW Roads and Maritime Services (RMS).

During the reporting period, BMC consulted with key stakeholders (MSC, DPE and MAC representatives) regarding the development and implementation of tree screens along identified public roads, however due to several constraints identified DPE have granted BMC an extension of time to 1 April 2019.

6.14.3 Further Actions

Tree screen planting will be completed along sections of Roxburgh Road with views to Bengalla.

To determine where Denman Road tree screens can be planted and not planted (for a variety reasons) further work and consultation will be undertaken.

6.15 EMERGENCY RESPONSE PREPAREDNESS

BMC has an Emergency Response Team (ERT) on site which is trained to respond to emergencies and conducts simulated emergency exercises at least annually.

The BMC Environment Department conducted a pollution incident response test exercise on 19 December 2018. The scenario was that the Wantana West Dam pump failed during a storm event. The exercise allowed BMC to confirm that the information included in the Pollution Incident Response Management Plan (PIRMP) is up to date and that the storm / flood emergency response guide is capable of being implemented in a workable and effective manner.

Bengalla Mine Annual Review 2018 Page 48

BENGALLA MINING COMPANY PTY LIMITED

7 WATER MANAGEMENT

This section describes the Bengalla water management objectives and performance during the reporting period.

7.1 WATER BALANCE

Bengalla water take during the reporting period is summarised in Table 19 with an overview of the site water balance included in Table 20.

In April 2018, BMC secured temporary transfer of 431 ML from various WALs to WAL001106, increasing BMC WAL001106 entitlement to 1,880 ML until 30 June 2018.

The 1,571 ML of water pumped from the Hunter River by Bengalla during 2018 was consistent with WAL001106 entitlements and the prediction in the Bengalla EIS that up to 1,680 ML would be required to support a production rate of 10.7 Mt ROM coal.

A discussion of surface water and groundwater monitoring and management during the reporting period is provided in Section 7.2 and Section 7.3, respectively.

Table 19 Site Water Take 2018

Water Licence

Water Sharing Plan, Source & Management Zone

Entitlement Passive Take / Inflows (ML)

Active Pumping

(ML)

Total (ML)

WAL001106 Hunter Regulated River Water

Source Water Sharing Plan 1,880 units1 - 1,571 1,571

20BL169798

Hunter Unregulated and Alluvial Water Source – Hunter

Regulated River Alluvial Water Source

125 ML2 99 - 99

Hunter Unregulated and Alluvial

Water Source

Muswellbrook Water Source 109 ML3 0 ML4 - 0

Total 1,670 1 In April 2018, BMC secured temporary transfer of 431 ML from various WALs to the BMC high security WAL increasing the

entitlements from 1,449 ML to 1,880 ML. This was in place until 30 June 2018.

2 Application lodged with NSW Office of Water on 22/12/2015 to increase entitlement to 325 ML.

3 Harvestable rights entitlement calculation (Bengalla EIS).

4 No water take in 2018.

Bengalla Mine Annual Review 2018 Page 49

BENGALLA MINING COMPANY PTY LIMITED

Table 20 Site Water Balance 2018

Aspect Volume (ML) Water Inputs Raw water sourced from Hunter River (ML/yr) 1,571 Rainfall and catchment runoff (ML/yr) 619 Groundwater inflow to open cut pits (ML/yr) 99 Water entrained in ROM coal processed (ML/yr) 1,013 Total Inputs 3,302 Water Outputs Water entrained in product coal 1,673 Other CHPP plant losses 213 Dust suppression (stockpiles and haul roads) 574 Vehicle wash-down losses 115 Hunter River Salinity Trading Scheme (HRSTS) discharge 0 Other offsite discharges from mine water management system 0 Evaporation from dams 873 Total outputs 3,448 Water Balance for 2018 -146

Source: BMC

7.2 SURFACE WATER

7.2.1 Environmental Management

BMC has developed and implemented a WMP in accordance with SSD-5170 (as modified) requirements which describes the surface water management infrastructure and procedures in place at Bengalla. This includes a:

• Surface water monitoring program;

• Dry Creek Diversion water management system;

• Site water balance;

• Erosion and sediment control; and

• Surface water impact trigger levels and management actions.

7.2.2 Environmental Performance

Surface Water Use

During the reporting period, Bengalla pumped 1,571 ML from the Hunter River; approximately 84% of the licensed allowable amount under the WAL001106. Hunter River water use per tonne of product coal in 2018 was higher than 2017 however, water use during the reporting period was generally typical of operations. The Bengalla water balance for 2018 is provided in Section 7.1.

Bengalla Mine Annual Review 2018 Page 50

BENGALLA MINING COMPANY PTY LIMITED

Surface Water Monitoring Program

Water extracted from the Hunter River is tracked and compared to the license allocation on an ongoing basis.

BMC conducts monthly receiving water monitoring at four locations on the Hunter River. This includes three locations upstream (W01, W02 and W03) and one location downstream (W04) of Bengalla. Electrical Conductivity (EC), pH and Total Suspended Solids (TSS) are monitored monthly at all four sites while a six-monthly surface water speciation is undertaken at one upstream (W01) and one downstream (W04) site.

Rain event monitoring is conducted when more than 25 mm rain is received in a 24-hour period. Rain event monitoring is undertaken at the receiving water monitoring locations and at numerous dams. Dams are also sampled quarterly for pH, EC and TSS. BMC undertook rain event monitoring three times during the reporting period (27/02/2018, 29/11/2018 and 15/12/2018). An inspection of the Bengalla water management system (particularly dams) is undertaken following a rain event.

Bengalla’s surface water monitoring locations are shown on Figure 10.

Surface Water Monitoring Results

The monitoring data (see Appendix F) indicates that during 2018 the receiving water pH, EC and TSS were generally within the criteria of the Australian and New Zealand Environment Conservation Council (ANZECC), 2000, ‘Guidelines for Fresh and Marine Water Quality’ with upstream and downstream results following similar trends. A comparison of the 2018 receiving water monitoring results with the results for previous years are presented in Table 21.

Table 21 Summary of surface water monitoring results (2012 – 2018)

Year Site W01 Average Site W02 Average Site W03 Average Site W04 Average

pH TSS EC pH TSS EC pH TSS EC pH TSS EC

2012 7.9 28 468 7.9 285 504 7.9 64 508 7.7 28 562

2013 7.9 89 440 7.8 124 412 7.8 114 489 8.0 131 420

2014 7.8 24 473 7.9 33 480 7.8 47 541 7.7 93 639

2015 7.8 37 450 7.8 42 453 7.7 27 487 7.7 51 543

2016 7.9 30 483 7.9 40 489 7.9 28 526 7.8 31 546

2017 7.9 8 458 7.9 17 459 7.9 14 487 7.9 10 535

2018 8.1 10 371 8.0 11 384 8.0 11 390 7.9 13 411

Bengalla Mine Annual Review 2018 Page 51

BENGALLA MINING COMPANY PTY LIMITED

Trends Over the Life of the Project

The Hunter River water quality trigger values in the WMP and are used for the investigation of potential surface water impacts from Bengalla operations. Trigger values for the surface water parameters monitored monthly are:

• pH: 6.5 – 8.1;

• Total Suspended Solids (TSS): 40 mg/L; and

• Electrical Conductivity (EC): 650 µS/cm.

Discrepancies between predicted and actual impacts during the reporting period were related to individual monthly elevated results which were above the trigger values for Hunter River water quality assessment (see Appendix F).

The review of these elevated monthly results by BMC did not identify significant impacts or a trend of increased surface water impacts resulting from Bengalla operations (i.e. no discharge occurred during the reporting period).

Comparison to Assessment Predictions

The EIS predicted that downstream impacts on surface water quality would be considered negligible provided that discharge by Bengalla would be conducted according to the Hunter River Salinity Trading Scheme. No discharge occurred during the reporting period.

Surface water monitoring of pH, TSS and EC at the four Hunter River monitoring sites in 2018 confirms that water quality remains generally within the relevant impact criteria for each parameter.

An overview of the Bengalla site water balance for 2018 was provided in Section 7 of the 2018 Annual Review. In comparing the 2018 water balance results to the EIS and Bengalla Modification 1 SEE, Year 4 was selected as the most appropriate scenario. However, it should be noted that the Year 4 water balance assumed a production rate of up to 15 Million tonnes per annum of product coal.

In 2018, the greatest variations from predictions in the Bengalla EIS and Bengalla SEE surface water balance were related to the dry conditions prevailing throughout much of the year, with increased volumes from evaporation and in water demand for dust suppression.

7.2.3 Further Actions

BMC will review the WMP in 2019 to address any requirements of SSD-5170 MOD 4. Should any amendments to the WMP be warranted, BMC will lodge the revised plan with relevant regulatory agencies for comment.

W01W01

W07W07W27W27

W26W26

W15W15

W20W20

W22W22

W17W17

W16W16

W12W12

W18W18

W23W23

W24W24

W11W11

W28W28

W06W06

Discharge Release PointDischarge Release Point

W03W03

W02W02

SW05SW05

W04W04

SW01 (EPSW01 (EPA01)A01)

SW02SW02

(EP(EPA02)A02)

Wybong RoadWybong Road

Rox

burg

hR

oad

Rox

burg

hR

oad

BengallaLink Road

BengallaLink Road

Wybong RoadWybong Road

Logues

Lane

Logues

Lane

Denman Road

Denman Road

Denm

anRoa

d

Denm

anRoa

d

KayugaRoad

KayugaRoad

MUSWELLBROOKMUSWELLBROOK

South

Muswellbrook

South

Muswellbrook

Mine access roadMine access road

N 6 424 000

N 6 426 000

N 6 428 000

E2

92

00

0

E2

94

00

0

E2

96

00

0

E2

98

00

0

E3

00

00

0

Project BoundaryDisturbance BoundaryHunter River 1 in 100 Year Flood LineDry Creek 1 in 100 Year Flood Line (Pre-Construction of CW1) Surface Water Monitoring LocationHRSTS Discharge Location

2km0

Legend

Datum: GDA 94 (Zone 56)BEN

GA

LLA A

NNUA

L RE

VIEW

201

8

N

BENGALLA MINE

Surface Water Monitoring Locations

FIGURE 10

W12EPA25

Bengalla Mine Annual Review 2018 Page 53

BENGALLA MINING COMPANY PTY LIMITED

7.3 GROUNDWATER

7.3.1 Environmental Management

BMC has developed and implemented a WMP in accordance with SSD-5170 (as modified) requirements which describes the groundwater management measures in place at Bengalla. This includes a:

• Groundwater monitoring program;

• Groundwater impacts predicted in the EIS;

• Site Water balance and water licensing; and

• Groundwater impact trigger levels and management actions.

7.3.2 Environmental Performance

Groundwater Monitoring

Bengalla has a groundwater monitoring network in place targeting the two aquifer systems an alluvial aquifer associated with the Hunter River floodplain and a Permian aquifer system. The current groundwater monitoring network consists of a total of 53 bores which are shown in Figure 11.

The alluvium, shallow bedrock and deep bedrock bores are all sampled for Standing Water Level (SWL), pH, EC, and Total Dissolved Solids (TDS) at various frequencies. A chemical analysis including sulphate and metals is also undertaken on a number of bores annually.

Monitoring Results for Groundwater Levels and Quality

Appendix G discusses the 2018 groundwater monitoring results, trends and comparison with EIS predictions.

7.3.3 Further Actions

BMC will consider the groundwater monitoring and management recommendations identified in Appendix G.

4727747277

5300753007

4292742927

42701427011195311953

BG5BG5

SMB2SMB2

SMB1SMB1WAN7WAN7

BG1BG1

WAN8WAN8

WAN6WAN6WAN9WAN9

WAN4WAN4WAN10WAN10

1911619116WAN5WAN5

I7I7

REP-I7REP-I7

BG3BG3

1829818298

BE3BE3

BE2BE2

4673746737

BE1BE1 37774377742851028510

WAN3WAN3WAN2WAN2

WAN1WAN1

B18B18

A5A5GW01GW01

WAN12WAN12

WAN11WAN11

Wybong RoadWybong Road

Rox

burg

hR

oad

Rox

burg

hR

oad

BengallaLink Road

BengallaLink Road

Wybong RoadWybong Road

Logues

Lane

Logues

Lane

Denman Road

Denman Road

Denm

anRoa

d

Denm

anRoa

d

KayugaRoad

KayugaRoad

MUSWELLBROOKMUSWELLBROOK

Mine access roadMine access road

N 6 424 000

N 6 426 000

N 6 428 000

E2

92

00

0

E2

94

00

0

E2

96

00

0

E2

98

00

0

E3

00

00

0

Project BoundaryDisturbance BoundaryGroundwater Monitoring Location Alluvial Groundwater Monitoring Location

2km0

Legend

Datum: GDA 94 (Zone 56)

N

BENGALLA MINE

Groundwater Monitoring Locations

FIGURE 11

BEN

GA

LLA

ANN

UAL

REVI

EW 2

018

BE2BE5

BE1BE4

Bengalla Mine Annual Review 2018 Page 55

BENGALLA MINING COMPANY PTY LIMITED

8 REHABILITATION

This section describes the Bengalla rehabilitation objectives and performance during 2018. Rehabilitation activities planned for the next reporting period are also discussed.

8.1 REHABILITATION OBJECTIVES AND FINAL LAND USE

The goal of the Bengalla rehabilitation program is to develop a safe, stable and non-polluting landform that aligns to the mine’s operating approvals. The majority of the post mining landscape will support a mixture of native woody vegetation and pastures suitable for grazing.

The rehabilitation objectives for Bengalla as described in Schedule 3 Condition 44 of SSD-5170 (as modified) and the status of each is provided in Table 22.

8.2 REHABILITATION MANAGEMENT

Rehabilitation at Bengalla is undertaken in accordance with SSD-5170 (as modified) and as described in the Rehabilitation Management Plan (RMP) and the MOP.

SSD-5170 (as modified) Schedule 3 Condition 44 states that the final landform design must incorporate natural micro-relief and natural drainage lines.

The current MOP proposed to undertake 13 ha of rehabilitation in 2018, focusing on the southern face of the OEA and the southern visual relief area. However, it was identified that rehabilitation completed in 2018, and part of the existing 2017 rehabilitation, would need to be reshaped to incorporate micro-relief and natural drainage lines following approval of a revised MOP.

At the end of the reporting period 4 ha on the southern face of the OEA was rehabilitated. An interim cover crop of Millet was spread to stabilise the landform and minimise potential dust emissions. When the conditions are suitable the woody species mix will be sown.

The planned remedial works to the northern (Wybong) face did not commence in 2018 and have been deferred to 2020.

The rehabilitation completed up to and including 2018 and the shaping / reshaping planned for 2019 is shown on Figure 12.

The rehabilitation completed in the last two reporting periods and the predicted rehabilitation activities for 2019 is summarised in Table 23. Rehabilitation activities at Bengalla are progressing at a rate around the Conceptual Year 4 Mine Plan.

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BENGALLA MINING COMPANY PTY LIMITED

Table 22 Bengalla Rehabilitation Objectives (from SSD-5170)

Feature Objective Status Mine site (as a whole)

• Safe, stable and non-polluting • Ongoing. See Section 6.8.1 for a description of Bengalla mineral waste management during 2017.

• Final landforms designed to incorporate natural micro-relief and natural drainage lines, which, where reasonable and feasible, further avoid straight run drainage drop structures, to integrate with surrounding landforms

• Overburden emplacement and rehabilitation activities are undertaken with the objective of achieving the concept final landform approved under SSD-5170 (as modified).

Overburden Emplacement Area – exposed to Muswellbrook and Denman

• Rehabilitate the entire face with high density woody vegetation as soon as practicable following the completion of mining operations

• Ongoing. Strategy to be further developed and implemented for establishment of high density woody vegetation.

Final void • Designed as a long term groundwater sink and to maximise groundwater flows across back-filled pits to the final void

• Minimise the greatest extent practicable: o the size and depth of the final

void; o the drainage catchment of the

final void; o any high wall instability risk; and o risk of flood interaction (flows in

and out of the void) • Maximise to the greatest extent

practicable the final void landform to be in keeping with the natural terrain features of the surrounding landscape

• Final void designs approved under SSD-5170 (as modified) to be reviewed at least five years from closure of Bengalla.

Agricultural land • Restore or maintain land capability generally as described in the [Bengalla] EIS and shown conceptually in Appendix 9 [of SSD-5170]

• Ongoing. Rehabilitation activities are undertaken with the objective of achieving the land capability commitments approved under SSD-5170 (as modified).

Revegetation areas • Restore a minimum 10% treed coverage at the mine site

• Higher density planting along the riparian zone of the Dry Creek reinstatement, and around the final void

• This activity is not within the current MOP period.

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Feature Objective Status Dry Creek reinstatement

• No net loss of creek length; • Restore, maintain and/or improve

hydrological and ecological function, quality and geomorphic stability;

• Incorporate erosion control measures based on vegetation and engineering revetments; and

• Revegetate with suitable native species

• Dry Creek reinstatement planned to commence from 2030 (Year 15) under SSD-5170 (as modified).

Surface infrastructure • To be decommissioned and removed, unless DRG agrees otherwise

• No decommissioning undertaken outside of active mining areas in 2018.

Community • Ensure public safety; and • Minimise the adverse socio-

economic effects associated with mine closure

• Areas restricted to BMC personnel and contractors; and

• Socio-economic impacts to be reviewed at least five years from closure of Bengalla.

Table 23 Bengalla Rehabilitation Status Summary

Mine Area Type Previous Reporting Period 2017

(ha)

This Reporting Period 2018 (ha)

Next Reporting Period 2019

(ha)

A. Total mine footprint1 1,122 1,168 1,2446

B. Total Active Disturbance2 893 935 1,022

C. Land being prepared for rehabilitation3

0 0 187

D. Land Under Active Rehabilitation4

229 233 2228

E. Completed Rehabilitation5 0 0 0

Notes:

1. Includes all areas within Bengalla mining leases that will require rehabilitation due to mining and

associated activities.

2. Includes all areas ultimately requiring rehabilitation including exploration areas, stripped areas ahead of mining, infrastructure and water management

areas, topsoil stockpiles, active mining areas,

overburden emplacements, tailings dams, etc.

3. Disturbed land that is under decommissioning, landform establishment and growth medium development.

4. Areas under rehabilitation that are being managed to achieve relinquishment.

5. Areas of rehabilitation that have been formally signed off by DRG as having successfully met agreed land use objectives and rehabilitation completion

criteria.

6. Sourced from the MOP.

7. 18 Ha will be shaped (11 Ha reshaped and 7 Ha newly shaped).

8. 11 Ha of the 2017/2018 rehabilitation area will be reshaped due to microrelief establishment.

BENGALLA MINE

Mining and Rehabilitation Status 2018

FIGURE 12

BEN

GA

LLA

AN

NU

AL

REV

IEW

201

8

N

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8.3 REHABILITATION MONITORING PROGRAM

Rehabilitation monitoring at Bengalla is undertaken annually through the implementation of the following:

• A transect-based monitoring program (the monitoring program); and

• A rehabilitation audit (the audit), consisting of a walk-through assessment of all rehabilitated lands.

During the reporting period rehabilitation monitoring was undertaken in December 2018. The 2018 monitoring program assessed 12 rehabilitation sites, which comprised:

• Eight existing sites established during earlier monitoring events – comprising one site within the Class III pasture (P3) and seven sites within woodland rehabilitation (NW1, NW2, NW3, NW4, NW5, NW6 and NW7); and

• Four new rehabilitation sites including:

▪ Two sites established as part of the 2016-17 ‘eastern OEA revegetation trials’ (AECOM, 2016) and now incorporated into the annual monitoring regime (coded NW8 and NW9); and

▪ Two additional sites established in areas of successful woody vegetation establishment (coded NW10 and NW11) with the view to increase monitoring sites density and improve the representativeness of collected datasets across the rehabilitation.

A description of the monitoring sites is included as Table 24 with the locations of each transect shown on Figure 1 of Appendix H.

Table 24 Bengalla Rehabilitation Monitoring Program Transects (2018)

Transect Name

Description Slope Rehabilitation Established

Transect Established

RHB NW1 High density woodland on Class IV or V land 18% 2005 2009 RHB NW2 High density woodland on Class IV or V land 23% 2004 2009

RHB NW3 High density woodland on Class IV or V land 11% 2008 2012 RHB NW4 High density woodland on Class IV or V land 15% 2007 2017

RHB NW5 High density woodland on Class IV or V land 19% 2013 2017 RHB NW6 High density woodland on Class IV or V land 20% 2014 2017

RHB NW7 High density woodland on Class IV or V land 15% 2015 2017

RHB NW8 High density woodland on Class IV or V land 23% 2016 2018

RHB NW9 High density woodland on Class IV or V land 21% 2016 2018 RHB NW10 High density woodland on Class IV or V land 19% 2006 2018

RHB NW11 High density woodland on Class IV or V land 14% 2004 2018 RHB P3 Pasture on Class III land 2% 2012 2014

Source: Koru Environmental Pty Limited, 2019

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8.3.1 Rehabilitation Monitoring Results

The 2018 monitoring program found that the rehabilitation sites are generally developing in accordance with the relevant MOP criteria, however it is likely that continued active management of rehabilitation will be required to successfully achieve rehabilitation objectives.

The 2018 monitoring report identified that vertebrate pests (rabbits, foxes and wild pigs) have been identified for the first time during the rehabilitation monitoring program. Population levels are uncertain, however disturbance impacts on vegetation and rehabilitation establishment could not be clearly evidenced during the monitoring and therefore are likely to be low.

Weed infestations (including Galenia, African Boxthorn and Acacia saligna) were recorded during the 2018 monitoring program.

Rehabilitation monitoring findings are detailed in Appendix H.

8.3.2 Revegetation Trials

Trial Implementation

To comply with the requirements of SSD-5170 (as modified) Schedule 3 Condition 44, BMC must convert existing areas of pasture and low density woody vegetation to high density woody vegetation. To this effect, an Eastern Face Woodland Rehabilitation Strategy – Revegetation Trials (the Strategy) was prepared in 2016 to guide revegetation activities.

The Strategy outlines two methods of soil cultivation and sowing which was trialled on two separate areas of rehabilitation.

• Method 1: consists of deep ripping of the topsoil and subsoil layers using a D5 dozer. Seed broadcasting and incorporation for Method 1 are via equipment mounted on a tractor linkage.

• Method 2: consists of shallower soil cultivation and direct seeding in a created seed bed, with the deposited seeds being pressed into the seed bed by a stippled roller. Method 2 allows for soil cultivation, seed bed preparation, seed application and incorporation to be undertaken concurrently in a single pass through equipment mounted on a tractor linkage.

The trial works were undertaken between 26 September 2016 and 11 October 2016.

Trial Monitoring

BMC continued to monitor the progress of the trial areas throughout 2018 (see Appendix I).

8.4 ACTIONS FOR THE NEXT REPORTING PERIOD

BMC will revise the MOP to reflect SSD-5170 MOD4 approval and to incorporate micro-relief and natural drainage lines.

It is anticipated that, in 2019, 18 Ha will be shaped (11 Ha reshaped and 7 Ha newly shaped).

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9 COMMUNITY RELATIONS

This section includes a summary of the environmental complaints received at Bengalla and community engagement and support activities undertaken during the reporting.

9.1 COMMUNITY ENGAGEMENT

Bengalla undertook a range of community engagement activities in 2018, including:

• Bengalla Community Consultative Committee (CCC) meetings. Meetings were held in February, May, August and December 2018. Minutes of each of these meetings are available at the Muswellbrook Library, Denman Library and on the Bengalla website. The CCC provides a forum for constructive dialogue and discussion. CCC representatives act as a point of contact to provide feedback between Bengalla and the community;

• Near neighbour consultation regarding impacts, sale of land and interactions; and

• Upper Hunter Mining Dialogue events including school tours.

9.2 COMMUNITY CONTRIBUTION

BMC contributes to programs identified by, and preferably in partnership with, local communities. The Bengalla Community Support Team (CST) meets regularly to assess requests from the local community for donations, sponsorship and in-kind contributions. A number of projects and events have been developed through sponsorship funding and assistance from the Bengalla CST who provide their time and expertise to support these initiatives.

During 2018, BMC contributed to the education and career development of students from Muswellbrook, Aberdeen and Scone with the provision of undergraduate scholarships. BMC awarded 8 scholarships to local students pursuing an undergraduate degree in 2019, including a full scholarship for a student pursuing a career in engineering. BMC will continue to support local students with scholarship programs being made available in 2019.

The work experience programme with Muswellbrook High School students continued in 2018, offering 20 placements to local students and the opportunity to experience the mining industry.

The Community Development Fund (CDF) provides support to the local communities to build community capacity, address development challenges and to take advantage of emerging opportunities. Some of the organisations and projects funded from the CDF in 2018 included:

• Muswellbrook PCYC Purpose Built Gymnastics Shed;

• Muswellbrook Healthy and well program;

• Warbirds over Scone;

• Upper Hunter Shire Tree planting days;

• Muswellbrook PCYC gymnastics shed;

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• Muswellbrook Men’s shed- Solar Panel installation; and

• Aberdeen athletics- seating and tables.

BMC will continue to focus on ensuring the long-term sustainability of the community, and target issues, needs and opportunities which are a priority to the local community through the CDF.

In 2018 BMC sponsored and partnered with community groups including:

• Muswellbrook Shire Council Open Art prize, Blue Heeler Film Festival and the Upper Hunter Show;

• Muswellbrook Race Club Race Day;

• Muswellbrook PCYC Fitness Resource;

• Upper Hunter Education Fund;

• Westpac Rescue Helicopter Charity Shield Day;

• Group 21 Rugby League Competition Naming Rights; and

• Muswellbrook Public School Swimming Programme.

BMC retained an active partnership program with the following Muswellbrook organisations in 2018:

• Muswellbrook Netball Association 2018 Season Naming Rights Sponsor;

• Wanaruah Local Aboriginal Land Council Naidoc Awards;

• Upper Hunter Eisteddford Naming Rights Sponsorship;

• Muswellbrook Rotary Club MUNA Event, 2018 Charity Ball and Charity Golf Day Supporting Drought Relief;

• Muswellbrook Shire Council’s Open Art Prize;

• Muswellbrook Amateur RSL Swimming Club Timing System;

• Mangoola Fire Brigade IT Equipment;

• Muswellbrook PCYC Charity Golf Day;

• Upper Hunter Show Cattle & Beef Camp; and

• Sponsorship of School Presentation Days in Muswellbroook, Aberdeen, Scone, Denman and Sandy Hollow.

A breakdown of the support and funding provided to the local communities in 2018 is as follows:

• CDF and Voluntary Planning Agreement: $863,944

• Scholarships: $31,688

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• Donations and sponsorship: $410,284

• Other: $30,806

9.3 ENVIRONMENTAL COMPLAINTS

BMC maintains a register of complaints and a complaints hotline (1800 178 984) which operates 24 hours, 7 days per week. BMC received 77 complaints during the reporting period, an increase compared to the 42 complaints received in 2017 and 23 received in 2016. During the reporting period, the most common environmental issues raised by Bengalla complainants were related to air quality (62%) and blasting (30%). A summary of complaints received during the reporting period by issue is provided in Figure 13.

Figure 13 Environmental Complaints Received 2018

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10 INDEPENDENT ENVIRONMENTAL AUDIT

This section discusses the SSD-5170 requirement for an Independent Environmental Audit of Bengalla operations.

In accordance with Schedule 5, Condition 9 of SSD-5170, BMC are required to comission an Independent Environmental Audit (IEA) of Bengalla within 1 year of the commencement of SSD-5170 (i.e. 2016) and every 3 years thereafter.

No IEA was undertaken during the reporting period.

BMC will commission an IEA in 2019 as per SSD-5170 (as modified).

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11 ENVIRONMENTAL INCIDENTS

This section describes the environmental incidents that occurred at Bengalla during the reporting period.

During the reporting period, 34 environmental incidents were recorded at Bengalla. The incidents were categorised as either:

• Reportable incidents (being an actual or potential non-compliance with Bengalla regulatory approvals and licences); or

• Non-reportable incidents (being a non-conformance with BMC standards and procedures).

11.1 REPORTABLE ENVIRONMENTAL INCIDENTS

In total, 27 reportable environmental incidents were recorded at Bengalla during the reporting period, including:

• In January 2018, the EPA undertook a dust inspection of Bengalla from Wybong Road. The EPA requested information about the activities that were occurring and dust controls that were being implemented at Bengalla on 10 January 2018. On 18 January 2018 BMC provided the EPA with the requested information.

• In May 2018, groundwater seepage occurred in two areas (south of Wybong Road and west of Dry Creek; and CW1). BMC engaged independent specialists to investigate the seepage events. BMC notified DPE, EPA and the NSW DSC regarding the incident.

• In August 2018, spontaneous combustion occurred over a small area of Bengalla. BMC notified DPE of the incident and that mitigation works were in progress.

• In September 2018, BMC received an ‘Invitation to Show Cause’ letter (dated 26 September 2018) from the EPA regarding “excessive dust emissions being generated from an excavator loading material into haul trucks” on 19 September 2018.

On 26 October 2018 BMC provided a response to EPA ‘Invitation to Show Cause’.

On 29 November 2018, the EPA issued BMC a penalty infringement notice (PIN) for allegedly failing to comply with condition O1.1 of EPL 6538, and therefore allegedly contravening Section 64(1) of the POEO Act.

On 24 December 2018 BMC submitted to the EPA an application for review of the PIN.

• In December 2018, BMC notified DPE of the expected exceedance of water licence WAL 41547 allocation (currently 125 ML). BMC lodged an application with the NSW Office of Water on 22 December 2015 to increase the annual entitlement under 20BL169798 (replaced by WAL 41547) to 325 ML. The Application is yet to be determined.

• In December 2018, groundwater seepage occurred into CW1. MACH Energy were notified by BMC, in addition to EPA and NSW DSC.

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• Potential exceedances of the SSD-5170 (as modified) air quality criteria for short term (24-hour average) PM10 impacts were recorded across 18 days during the reporting period. Investigations were undertaken and the findings of each event were submitted to DPE. The elevated air quality monitoring results are discussed further in Section 6.4.2.

• A potential exceedance of the SSD-5170 (as modified) air quality criteria for long term (annual average) PM10 impacts was recorded at PM10-1 and PM10-4. An investigation was undertaken and the findings were submitted to DPE. The elevated air quality monitoring results are discussed further in Section 6.4.2.

• A potential exceedance of the SSD-5170 (as modified) air quality criteria for long term (annual average) TSP impacts was recorded at HV1, HV2 and HV6. An investigation was undertaken and the findings were submitted to DPE. The elevated air quality monitoring results are discussed further in Section 6.4.2.

• A potential exceedance of the SSD-5170 (as modified) criterion for annual average total deposited dust was recorded at D20. An investigation was undertaken and the findings were submitted to DPE. The elevated air quality monitoring results are discussed further in Section 6.4.2.

11.2 NON-REPORTABLE ENVIRONMENTAL INCIDENTS

7 non-reportable environmental incidents were recorded at Bengalla during the reporting period:

• A bushfire occurred on part of the BMC Kenalea biodiversity offset property following an electrical storm on 23 January 2018. Firefighting required extensive effort from BMC, Rouchel and Stewarts Brook Rural Fire Service (RFS). The bushfire ceased on 4 February 2018 and burnt approximately 385ha;

• As at 9 March 2018, the automatic raw effluent pumps in the sewerage pit were out of service and the sewerage pit was being sucked out manually. On 9 March 2018 the sucker truck was delayed, and the sewerage pit overflowed. The spill was contained, and the contaminated material was transported to the effluent management facility. The sewerage pumps were repaired on 14 March 2018;

• One localised blast fume event on 12 June 2018. The fume from the event was rated a level 4B under the Australasian Explosive Industry Safety Group (AEISG) guidelines (2011). BMC engaged Orica Australia Pty Limited (Orica) to undertake an investigation. The investigation identified three factors that most likely caused the fume generated on the shot: single priming in the top deck, runaways and confinement;

• Four hydrocarbon spill incidents. Dates and details of these spills included:

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▪ 23 March 2018 - approximately 10-15 L of hydraulic oil from an excavator at the Bengalla dam construction area. The spill was cleaned up and transported to the bioremediation facility for treatment;

▪ 18 October 2018 - approximately 100L of coolant from a valve at the maintenance lube bay coolant pump. The valve was replaced and the spill was mopped up with absorbent mating;

▪ 26 October 2018 - approximately 100 L of coolant from a fitting failure in the Stores area. The spill was directed to the store compound waste drain which discharges to the oily water separator system; and

▪ 1 November 2018 - leakage of approximately 100 L of coolant from a gauge at the maintenance lube bay. The coolant was contained within the bunded area and directed into the oily water separator system.

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12 ACTIVITIES PROPOSED IN THE NEXT REPORTING PERIOD

This section summarises the operational and environmental management activities proposed to be undertaken during 2019.

A summary of key environmental management activities proposed for 2019 is presented in Table 25. Progress against these activities will be reported in the 2019 Annual Review.

Table 25 Environmental Management Activities Proposed for 2019

2018 Document

Section Area / Issue Actions Proposed

3 Various

SSD-5170 (Management

Plans)

Following the approval of SSD-5170 MOD4, the BMC management plans will be revised to reflect any required amendments to operations.

6.2 Noise

Implement additional noise mitigation for Resident 126 (identified in Table 3 of SSD-5170 (as modified)) following agreement from the landholder in accordance with SSD-5170 (as modified).

6.11 Non-Aboriginal

Heritage BMC will continue to implement the program of Homestead maintenance and preservation works as identified HHMP.

6.14 Visual Amenity &

Lighting Tree screen planting will be completed along sections of Roxburgh Road with views to Bengalla.

6.14 Visual Amenity &

Lighting

To determine where Denman Road tree screens can be planted and not planted (for a variety reasons) further work and consultation will be undertaken.

7.3 Groundwater BMC will consider the groundwater monitoring and management recommendations identified in Appendix G.

8.4 MOP BMC will revise the MOP to reflect SSD-5170 MOD4 approval and to incorporate micro-relief and natural drainage lines.

8.4 Rehabilitation It is anticipated that, in 2019, 18 Ha will be shaped (11 Ha reshaped and 7 Ha newly shaped).

10 Independent

Environmental Audit

BMC will commission an IEA in 2019 as per SSD-5170 (as modified).

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13 REFERENCES

• Australian Explosives Industry and Safety Group (AEISG) (2011) Prevention and Management of Blast Generated NOx Gases in Surface Blasting 2nd Ed

• ANZECC (2000) National Water Quality Management Strategy: Australian Guidelines for Fresh and Marine Water Quality

• AGE (2018) Bengalla Mine Annual Groundwater Monitoring Report 2018

• Benchmark Monitoring (2018) Bengalla Mine Monthly Meteorology Reports – January to December 2018

• BMC (2017) Bengalla Mining Company Pty Limited; Bengalla Annual Review 2017

• BMC (2015) Bengalla Mine Mining Operations Plan 2015 – 2017 (DA 211/93)

• BMC (2015) Bengalla Mine Mining Operations Plan 2015 – 2021 (SSD-5170)

• DEC (2007) Approved Methods for Sampling and Analysis of Air Pollutants in New South Wales

• EPA (2018) Environment Protection Licence 6538

• Hansen Bailey (2006) Bengalla Mining Company Modifications to Mining Operations Statement of Environmental Effects

• Hansen Bailey (2008) Bengalla Mine Development Consent Modification Environmental Assessment

• Hansen Bailey (2010) Bengalla Mine Development Consent Modification Environmental Assessment

• Hansen Bailey (2013) Continuation of Bengalla Mine Environmental Impact Statement

• Hansen Bailey (2014) Bengalla Mine Development Consent Modification Environmental Assessment

• Hansen Bailey (2014) Continuation of Bengalla Mine Response to Submissions

• Koru Environmental (2019) Bengalla Mine Rehabilitation Monitoring and Audit 2018

• NSW Government (2015) Annual Review Guideline, Post-approval requirements for State Significant mining developments, October 2015

• Tongway, D. J. & Hindley, N. L. (2004) Landscape Function Analysis: Procedures for monitoring and assessing landscapes, with special reference to minesites and rangelands, CSIRO, Canberra