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1
Bylong Coal Project 10 May 2017
Presentation to the Planning Assessment Commission
PAC Site Visit Itinerary
2
9:30 Welcome, Safety Moment & Introductions
10:00 Project Presentation
11:15 Site Tour (with Lunch)
2:00 Close Out Discussions
Introductions & Housekeeping
3
Introductions
PAC
Representatives/Visitors
KEPCO
WorleyParsons
Hansen Bailey
Technical specialist
consultants
Visitor inductions &
Housekeeping
Oneway Moment
Agenda
4
1. Background
2. Project Description
3. Stakeholder Engagement
4. Benefits of the Project
5. Mine Plan Justification
6. Workers Accommodation Facility
7. Key Areas of Focus
• Water
• Agricultural Resources
• Heritage (European and Aboriginal)
• Social
• Other
8. Conclusion
9. Site Tour
Project Background
5
Authorisations granted to Austen & Butta 1982/84
Acquired by KEPCO 2010
Targeted local stakeholder engagement & land acquisition from 2011
Exploration and environmental monitoring commenced 2011
PFS (multiple mine plan options) completed Mid 2012
Background Doc. and Gateway Application lodged Jan 2014
EIS lodged Sept 2015
Terms of Reference for PAC Review Issued Jan 2017
DP&E Assessment Report & Recommended Development Consent
Conditions released 5 April 2017
Project Background
6
Project Background
7
Project Background
8
Project Background –
Pre Feasibility Study
9
• Initial constraints
and mining
analysis refined the
potential open cut
mining areas to
seven
• Four potential
underground
mining areas
• Various
environmental,
social and
economic
constraints were
thoroughly
investigated to
develop proposed
mine plan
• Topography defines
the areas most
suitable for
underground versus
open cut
Project Background –
Pre Feasibility Study
10
• Initial constraints
and mining
analysis refined the
potential open cut
mining areas to
seven
• Four potential
underground
mining areas
• Various
environmental,
social and
economic
constraints were
thoroughly
investigated to
develop proposed
mine plan
• Topography defines
the areas most
suitable for
underground versus
open cut
Project Background –
Pre Feasibility Study
11
• Initial constraints
and mining
analysis refined the
potential open cut
mining areas to
seven
• Four potential
underground
mining areas
• Various
environmental,
social and
economic
constraints were
thoroughly
investigated to
develop proposed
mine plan
• Topography defines
the areas most
suitable for
underground versus
open cut
Project Background –
Pre Feasibility Study
12
• Initial constraints
and mining
analysis refined the
potential open cut
mining areas to
seven
• Four potential
underground
mining areas
• Various
environmental,
social and
economic
constraints were
thoroughly
investigated to
develop proposed
mine plan
• Topography defines
the areas most
suitable for
underground versus
open cut
Overview of the Project
13 Conceptual Open Cut Mine Plans - Year 3
Overview of the Project
14 Conceptual Open Cut Mine Plans - Year 5
Overview of the Project
15 Conceptual Open Cut Mine Plan - Year 9
Overview of the Project
16 Conceptual Open Cut Mine Plan - Final Landform
Overview of the Project
17
KEPCO’s Stakeholder Engagement
18
More than 2,500 direct interactions with stakeholders in Bylong since 2011
including face-to-face meetings, emails, phone calls, letters and presentations
Targeted engagement with government, business, residents, landowners,
community interest groups, 27 Registered Aboriginal Parties and others
Regular project updates via quarterly newsletters and information sessions,
project fact sheets, information briefs, web site updates and a dedicated site-
based community liaison team
KEPCO’s Stakeholder Engagement
19
KEPCO’s Community Investment Fund commenced in 2011 and has
distributed more than $330,000 to community groups across the region, and
will continue to support local community service groups throughout the life of
the Project
Community Liaison Officers and other senior project staff continue to be
available to community members to address issues
KEPCO continues to provide regular updates via Project newsletters,
Community information sessions, fact sheet and website
Project’s 1800 phone number and email
Kane Smith with members
of the Rylstone Hospital Auxiliary
Benefits of the Project – BCA
20
AUSTRALIA NSW
$1.86B Net Production
Benefits (undiscounted)
• $1,087M company tax
• $763M royalties
• $9M MWRC VPA
$846M Net Production
Benefits (undiscounted)
• $76M company tax
• $763M royalties
• $9M MWRC VPA
Direct & Flow Benefits of the Project
21
• $624 million in annual business turnover
• $378 Million in annual value added
• $72 Million in annual household incomes
• 830 jobs including 290 direct jobs
• Employment of local workers
• Relocation of non-local workers & families
• Benefits gained through VPA ($9M)
• Upgrades to regional road network ($177K pa road maintenance)
• Sponsorship & donations
Other Benefits to MWRC LGA
MWRC LGA Direct & Flow On Benefits
22
Project Mine Plan Justification
Robust mine planning process implemented to develop the most appropriate “mine plan
and project description”, including:
Exploration activities (1984 to current) with activities accelerated over the past five
years;
Concept Study (Mar 2011);
Extensive Environmental Monitoring Program (2011 to current)
Pre-Feasibility Study (Jul 2012);
Preliminary Environmental Constraints Analysis (Nov 2012);
Options Study (Oct 2013); and
Feasibility Study (completed in Sep 2014).
Environmental, social and economic considerations have been implemented into the
Project design
Mine Plan changes have been made through the approvals process, including:
Reduction from seven to two OC Mining Areas (46% surface disturbance reduction)
WAF configuration & longevity
Mine plan scheduling to minimise noise impacts
Infrastructure design to reduce potential flood impacts
Commitments to additional environmental management and monitoring actions
23
Project Mine Plan Justification
Key requirements for the open cut mining component for the Project:
Accessible quality coal resource which occurs within lower slopes of the
valley outside the alluvial flats
Economic viability of Project hinges on the initial open cut mining
operations
Provides the most robust solution for the emplacement of reject
materials
Provides for an appropriate location for the management of mine water
throughout the life of the underground
Without open cut as proposed, the Project under the SSD Application would
not proceed.
An underground only option would not be viable in the current economic
environment
An entirely different approach would be required – different underground
mine plan with reject emplacement areas, tailings dams and infrastructure in
alternate locations
24
Project Mine Plan Justification
Short term (~10 years) open cut impacts have been or will be appropriately
mitigated:
Acquired two of three receivers predicted to experience significant noise
Reached agreement for acquisition or have acquired five of six receivers
predicted to experience moderate noise
Ongoing discussions with remaining potentially affected landholders
Mine plan does not directly impact Tarwyn Park Homestead, Stables or the NSF
areas
Ongoing discussions with the descendants and in the advanced stages with NSW
Health to relocate burials upon receipt of SSD approval
Robust Biodiversity Offset Strategy developed to conservatively offset the
predicted direct impacts to ecological values within the open cut areas
Commitment to implement robust conservation management programs for items of
local heritage value
Robust rehabilitation strategy to be implemented to ensure the reinstatement of
BSAL and other land resources are appropriate for post mining agricultural
activities (including equine related activities)
Benefits of the Project
25
0
100
200
300
400
500
600
700
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Wo
rkfo
rce (P
ers
on
s)
Project Year
Underground Operations
Underground Construction
Open Cut Operations
Open Cut Construction
CHPP Operations
CHPP Construction
Construction workforce of up to 665 employees (average = 360)
Operational workforce of up to 470 employees (average = 290)
Specialised
Short-term
Workforces
Open cut workforce
for 8 -10 years
Longer term
Underground &
CHPP workforce
26
Workers Accommodation
0
100
200
300
400
500
600
700
Month 1 Month 6 Month 9 Month 13 Month 17 Month 20
Accommodation Demand Against Supply (from RTS Assessments)
Short Term Accommodation Demand Short Term Accommodation Availability Long Term Accommodation Demand
Long Term Accommodation Availability Total Accommodation Demand Total Accommodation Availability
Short-term plus long-term accommodation available (461 beds) across Local Area
Scenario 1 (@4% rental vacancy rate, utilising 90% available) (295 beds) across the Local Area
Scenario 1 (166 beds) 25% vacancy in Mudgee and Rylstone and 50% elsewhere in the Local Area
27
Workers Accommodation
28
Workers Accommodation
KEPCO is committed to ensuring that the Local Area receives the benefits from
the construction and operation of the Project
KEPCO is committed to its operational workforce residing within accommodation
available throughout the Local Area (if accommodation is available) as opposed to
a WAF as was initially proposed
Available data demonstrates that there is not sufficient accommodation available
within the Local Area for the forecast peak demand for construction workforce
Whilst it is possible (as MWRC has previously experienced) that the
accommodation market within the Local Area may provide sufficient
accommodation for the peak Project construction workforce, KEPCO is required to
manage the risks to its significant investment in the Project
KEPCO therefore is seeking approval of a mechanism in the approval for a WAF
to be utilised if at the time it is demonstrated that it is required for the construction
phase of the Project
Agenda
29
1. Background
2. Project Description
3. Stakeholder Engagement
4. Benefits of the Project
5. Mine Plan Justification
6. Workers Accommodation Facility
7. Key Areas of Focus
• Water
• Agricultural Resources
• Heritage (European and Aboriginal)
• Social
• Other
8. Conclusion
9. Site Tour
30
Key Areas of Focus – Water
The Project has been specifically designed to avoid impacts to productive
alluvial lands and neighbouring landholders water allocations within the
Bylong Valley
Five + years of baseline monitoring data utilised in assessments
Robust groundwater modelling which has extensively tested model
sensitivity and uncertainty utilising a vast range of inputs
Progressive model updates and refinements
Peer Reviewed (including model audit) with no new material issues identified
Modelling confirmed predicted water takes in accordance with existing
water licences (additional Permian licences required for underground)
Modelling confirmed no private landholder bores will be affected
Post-mining (with no void), some minor volumes of water to move
through rehabilitated mining area into alluvium
Beneficial use of alluvial groundwater not predicted to change
31
Key Areas of Focus – Water
Water management system designed to contain all mine water
Sediment dams to treat sediment laden water prior to being released
Water balance confirmed the water management system is effective
and no discharges of mine water are predicted to occur based on
historic climatic conditions
Borefield makeup water utilised to supplement processing water,
primarily during open cut operations
Underground inflows to be managed within part of the open cut mining
void which contains sufficient capacity to accommodate the ~7,000ML
of predicted mine water
Flood assessment has confirmed all infrastructure positioned &
designed appropriately
Underground subsidence is not expected to result in material flood
impacts
32
Key Areas of Focus – Agricultural
Resources
Agricultural resources were a primary constraint considered during
Project design
Initially the alluvial floodplain was the primary constraint applied with the
later BSAL process resulting in amendments to the OEAs and
infrastructure for the EIS
Gateway Certificate was granted in April 2014 which contained
recommendations for assessment included in EIS
A Rehabilitation Strategy was developed for the EIS to ensure impacts to
agricultural land are appropriately managed
Project Disturbance Boundary and Biodiversity Offset Properties is
approximately 0.009% of agricultural land within NSW Best case $2.7 million per annum of agricultural production (which is 4% of that in MWRC
LGA, 0.02% of that in NSW and 0.005% of that in Australia)
KEPCO land outside the Project Disturbance Boundary and Biodiversity
Offset Properties will continue to be managed for agriculture
Farm Manager and team of farm hands already increasing production
33
Key Areas of Focus – Agricultural
Resources
34
Key Areas of Focus – Agricultural
Resources KEPCO is committed to the implementation of
a leading practice Rehabilitation Strategy
Proposed reinstatement of 423.1 ha of BSAL to
the final landform
EIS Rehabilitation Strategy and BSAL
Reinstatement Strategy has been prepared
Rehabilitation Management Plan will be
prepared in close consultation with the relevant
regulators to the satisfaction of DRE
Conceptual rehabilitated final landform has
been designed to enable post mining land uses
to be generally consistent with those currently
occurring or have historically occurred
Predominantly cattle grazing
Equine CIC related uses
KEPCO has engaged academic institutions to
assist in ensuring the success of the mine
rehabilitation
35
Key Areas of Focus – Agricultural
Resources
76 km (~1 ½
hours drive)
from Scone as
the Regional
Centre for
Equine CIC
>10 km (30
minutes drive)
from closest
operating stud
36
Key Areas of Focus – Agricultural
Resources 1,933 ha Equine CIC within Project Boundary
467 ha of mapped Equine CIC to west of
Project Boundary
Equine CIC within and to west of Project
Boundary is owned by KEPCO
Project Disturbance Boundary contains 700
ha of Equine CIC
Offsets will impact 584 ha of land mapped as
Equine CIC, including 69 ha of cultivated land
No Thoroughbred horse breeding has
occurred on this mapped Equine CIC land for
many years
Former landowners have confirmed this:
"The property (Tarwyn Park) is now used
as a cattle raising farm operated by the
Andrew's family" (Peter Andrews quote in
Racing and Sport (2011))
Wallings Agricultural Company primarily
a cattle grazing enterprise
Tinka Tong – previously a cattle grazing
enterprise with some Stock Horses
37
Key Areas of Focus – Bylong Valley
Social
KEPCO has acquired a large portion of land within the Bylong Valley
Population declines and the associated social implications to the Bylong Valley as a
declining rural area were already occurring
Health and amenity impacts from the Project to remaining residents will be minimal
as a result of substantial buffer of KEPCO land
The Project during operation will result in interim changes to the character and
identity of Bylong Valley from rural to mining, these changes will be substantially
reduced following the completion of the initial open cut operations
KEPCO have:
Committed to operate the Bylong General Store for life of Project
Contributed to operating costs of Bylong Community Hall
Undertaken beautification and enhancement works at the Bylong Village
Appointed a Farm Manager and developed a comprehensive Farm
Management Plan for all KEPCO owned land
Provided financial and human resources support for the Bylong Rural Fire
Service
38
Key Areas of Focus – Heritage
No heritage items or sites within the Project Boundary listed on statutory UNESCO,
Commonwealth or NSW or Local government lists, registers or schedules
HHIA identified 18 sites assessed to be of heritage significance within and directly
adjacent to the Study Area (Authorisations)
The Project will result in direct impacts to seven sites assessed by the HHIA as having
conservation values at a local level, including Tarwyn Park Farm Complex
The following will be implemented for directly impacted items where appropriate:
• Archival recordings, including scaled drawings and photographs, prepared in
accordance with the relevant Heritage Office guidelines
• Test excavation, and salvage excavation (as determined by testing)
• Documentation, including photographic record
Blast Management Plan to be prepared for remaining items
Design of the open cut mining areas and infrastructure has incorporated measures to
mitigate potential visual impacts to some historic heritage sites
Upon granting of SSD approval, KEPCO is committed to preparing Conservation
Management Plans for:
• Tarwyn Park Farm Complex;
• Bylong Station Farm Complex; and
• Homestation.
39
Tarwyn Park Farm Complex
Tarwyn Park Farm Complex (including Iron Tank) comprises the following features which have
been assessed to comprise local heritage value:
• Tarwyn Park Homestead (c. 1927)
• Stables (c. 1927)
• Various Farm Buildings
• Archaeological Site – rubbish mound
• Horse Burials
• Natural Sequence Farming (soil hydrology techniques) land use
The homestead, stables and farm buildings within the Tarwyn Park Farm Complex are to be
retained
The mine plan design results in the Project remaining off the Bylong River floodplain, where the
primary soil hydrology techniques (NSF) have been undertaken
A Blast Management Plan to be prepared:
• Various examples where blasting has been undertaken in proximity to heritage structures
(Liddell Coal – Chain of Ponds Inn; Wambo Mine – Wambo Homestead; Bengalla Mine –
Bengalla and Overdene Homesteads)
• Baseline dilapidation inspections have been completed on the heritage structures within the
Study Area
• KEPCO has recently remediated eroded sections of sandstone walls at Tarwyn Park in
preparation of the potential impacts
40
Tarwyn Park Farm Complex
41
Existing Property Management Actions
KEPCO has undertaken the following works since gaining access in August 2016:
• Agricultural Assessment and Land Management Plan – including soils and agricultural
capability assessment (in addition to one completed in March 2014)
• Dilapidation/baseline structural condition assessments
• Inspections and upgrades to the electrical wiring throughout the Homestead
• Reconstruction of the chimneys to Homestead which were in a dilapidated state
• Repairs/reconstruction of veranda posts
• Re-joining of sandstone walls around the perimeter of Homestead
• General tidy up of rubbish and maintenance around the homestead and stables
• Various agricultural land and water studies being conducted by academic institutions to
inform transferability to mine rehabilitation
KEPCO has an estimated, but as yet unbudgeted expenditure of more than $600,000 to
conduct the necessary immediate repairs to Tarwyn Park homestead, stables, timber framed
stables and rounding yard (rubbish and asbestos removal, septic installation, rising damp
remediation, etc).
42
Agricultural Land Management Plan
CSIRO, 2002 concluded:
“NFS has done little to address issues of native biodiversity and landscape ecology at Tarwyn Park.
There is low species diversity in the riparian and stream plant communities, and a near absence of
remnant native trees on the farmed hillslopes. These plant communities are therefore expected to
provide little habitat for birds and other terrestrial fauna.”
43
Agricultural Land Management Plan
44
Conservation Management Measures
for Implementation
KEPCO has committed to a number of conservation management actions during
the SSD approvals process to manage potential impacts to the Tarwyn Park
Farm Complex as a result of the Project, including:
• Management measures to be described within the Historic Heritage
Management Plan;
• Strategic Property Conservation Management Plan;
• Blast Management Plan, including baseline dilapidation assessment; and
• Rehabilitation Strategy and Biophysical Strategic Agricultural Land
Reinstatement Strategy – to include a trial of soil hydrology techniques on
rehabilitated lands.
KEPCO is committed to actively consulting with the relevant regulators in relation
to the implementation of these conservation actions
KEPCO has commenced the development and early implementation of a number
of these conservation management actions
45
Other Areas of Focus – Ecological
Offsets
The Project is a “Transitional Project” under the Biodiversity Offsets Policy for
Major Projects (Offset Policy) and the Framework for Biodiversity Assessment
(FBA) (OEH 2014)
SEARs were issued prior to the Offset Policy and FBA
EIS Ecological Impact Assessment applied the three former methods (offsetting
principles, Commonwealth guidelines and biobanking) to assess the impacts and
to provide appropriate compensation for unavoidable impacts
KEPCO agreed to complete the additional works required to apply the Offset
Policy and FBA to Project at the RTS stage
OEH noted to DP&E in correspondence dated 3 November 2016 that: “OEH is
pleased to inform you that all substantial biodiversity and Aboriginal cultural
heritage matters which required resolution prior to DP&E finalising assessment
have now been resolved.”
46
Other Areas of Focus – Ecological
Offsets
Biodiversity Offset Strategy will be
developed to ensure the Project’s
conservation objectives are met
BOS includes 4,116 ha of land with
approximately 3,825 ha of native
vegetation
BOS addresses the credits generated by
the application of the FBA and Offset
Policy to the Project
Various offset areas are to be subject of
Biobanking Agreements, exception of
Offset Area 5
Biodiversity Management Plans will be
developed to manage the impacts of
construction and operations of Project to
biodiversity values
47
Other Areas of Focus - Subsidence
48
Conclusion
DP&E’s Assessment Report and Recommendations for conditions of approval are
generally achievable, measurable and enforceable and will not impact on the
viability of the Project
Some recommended conditions of approval are of concern and need to be
discussed further
Project will deliver material socio economic benefits the MWRC LGA, particularly
in areas where a source of employment is required urgently
Assessments have shown that impacts to the water and agricultural resources are
able to be appropriately managed in accordance with relevant regulatory
requirements
KEPCO has gone above and beyond to effectively manage the social impacts of
the Project
Direct disturbance to items of potential heritage value to be managed in terms of
the DP&E recommended conditions of approval
KEPCO is committed to developing the Project upon the receipt of the necessary
approvals so that its benefits can flow to the region as soon as possible
Invested over $650 Million already and will invest a further several billion dollars
over the life of mines development
49
Site Tour