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TELLUS HOLDINGS LTD
Chandler Project Community Update
Duncan van der Merwe (Managing Director)Jaime Livesey (Head of Geoscience and New Ventures)Richard Phillips (General Manager HSECC)
June 2017
TCH-5-30-20-15
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Agenda
Agenda item
Tellus Update
Chandler Project - BFS and EIS Update
Titjikala to Alice Springs Road Update
Next Steps
Appendices
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Tellus Holdings Ltd Overview• In the business of creating economic, social
and environmental value from hazardous waste, clay and salt
• Public unlisted infrastructure development company
Established “Utility Style” business
• Tellus' business model follows world's best practice techniques operating in Europe & N. America.
• Dual use facilities – mine commodity under mining act, store equipment, archives & waste under environmental act
WA Gov.’s IWDF(ClayVault 50/50 JV) Sandy Ridge(WA)
Chandler (NT)
Vision
National Warehouses (Toll)
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Proposal Location
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Tellus Strategy – Safety FirstTellus demonstrates quality management by maintaining internationally recognised
Occupational Health and Safety, Environment and Quality management systems
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Over the last 6 months, Tellus has achieved significant technical and commercial progress
2012 – 2014 5 year (3+2) contract to operate the IWDF
SR and CH Scoping Study completed
Continued engagement with community and Gov.
Commenced 39 t pilot kaolin pilot (Perth)
Commenced wet salt processing pilot (US)
Commenced dry salt processing pilot (Germany)
Major Project Status for CH. granted by NT Gov.
2015 – 2017 Independent value engineering reviews
SR Interim Bankable Feasibility Study
CH PFS Update completed
Continued Gov. and local community engagement
Lodged SR Draft Public Environment Review (PER)
Lodged CH Draft EIS (Feb 2017)
Toll logistics - 8 storage and transfer stations
Hundreds of millions of dollars of signed MOUs with majorcustomers
Indicative debt term sheet for Sandy Ridge
Indicative A$120 million debt financing MOU mostly forChandler
1. IWDF = Intractable Waste Disposal Facility, 2. SR = Sandy Ridge, 3. CH = Chandler, PFS = Pre-feasibility Study, BFS = Bankable Feasibility Study
2009 – 2011 Incorporation ofTellus
IWDF(1) / SR(2) Concept Study completed
Site selection studies: 5 salt beds (CH(3)) and 1 kaolin bed (SR) across Australia (IAEAguidelines)
Started engagement with local communities
History of Tellus
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Tellus in the Community
Support local communities (Titjikala Tidy Town) Create local jobs for TO’s Support local sports teams
Support education programs - CDU Site visits for Traditional OwnersSupport environmental program -30 rangers
Tellus supports training, local jobs and business, investment and regional development
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Tellus in the Community
Signed Agt with NT Gov (local opportunities) Create local indigenous contractor opportunities
Support local girls programs Tellus in the media - Radio, TV NewspaperSupport youth programs (50 kids – fees)
Tellus supports training, local jobs and business, investment and regional development
Support local sports teams
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Proven Low Risk Business Model
150 projects worldwide
Europe a leader in underground salt storage –Germany 20 mines
Tellus business model and technology is proven international best practice
EU Waste Acceptance Criteria (2003/33/EC)
“….in salt mines, the salt isconsidered to provide totalcontainment”.
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Tellus’ national infrastructure footprint is close to customers and existing rail and roads
ClayVault JV – Mt Walton
Sandy Ridge Facility Alice – Core Shed/ Office
Chandler –Field Camp
Perth Office & Pilot
National warehouse network
Chandler Facility
Apirnta S&T Facility
Tellus Locations
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Proposed Chandler Project - Introduction
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Proposed Chandler Project
Container wash down
Container Transfer Yard
Mine development Spoil Stockpiles
Temporary Salt
Stockpile
Topsoil Stockpile
Portal
Solar Hybrid Power Station
Admin Building
Technology Park
Shafts
General Stores and Maintenance
Facilities
Water pond catchment
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Proposed Chandler Project
3.2 km
1.5 km
Unique assets: Waste permanently isolated in a ~ 500 million year old salt bed Geology: Salt bed ~ 800m deep, ~ 250m thick, ~ 18km wide, salt bed (length unknown) Aquifer and climate: No aquifers have passed through the salt bed over the last ~ 500 million years. Located in an arid area.Infrastructure: Next to Central Australian railway line
0.8 km
1.8 km
860 m downcast (salt production shaft) 820 m upcast shaft (ventilation)5,760 m decline (waste and ventilation)
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Proposed Apirnta Facility
Backfill over placed waste
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Chandler - Geology & Mineral ResourcesTellus has to do drill to understand the geology (rock) and the hydrology (water)
Historic exploration Tellus drilling (geology)
Tellus drilling (hydrology)
Core from mining horizon
Core examination - international expertsHalite (salt)
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JORC resource, pilot and mining activities JORC Measured Resource estimate (NaCl) is 309 Mt1 Wet processing pilot completed in the USA Dry processing pilot completed in Germany that refines 95.4% rock
salt (NaCl) into 98.3% saleable grades2 Reinterpreted 145 km of seismic and approximately 4,500m of
wireline data Resource & mine planning drilling and sampling (2 holes, 1,937m)3 Water investigations holes (8 holes, 2,009m) Site topographical survey and digital aerial photography Market development agreement (PT Damarco trading company) Finance agreements
1 http://www.tellusholdings.com/2016/pdf/2014/2014_Jul_02_Chandler_Maiden_JORC_Measured_Resource.pdf
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Tellus’ Strategy – Storage, Recovery & Permanent Isolation
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Tellus bringing “world’s best practice” solutions for a difficult to manage problem
Sandy Ridge - wastes accepted and excluded
Chemical waste (NEPM Schedule A List 1: Waste categories) Yes
Naturally occurring radioactive waste (“NORM”) - LLW level Yes
Low level radioactive waste (LLW) Yes
Intermediate (ILW) & High level radioactive waste (HLW) No
Chandler - wastes accepted and excluded
Chemical waste (NEPM Schedule A List 1: Waste categories) Yes
Naturally occurring radioactive waste (“NORM”) – Exemption Level Yes
Nuclear Waste (enriched uranium & plutonium) - LLW, ILW, HLW No
Industry waste source Best practice safety case
Mining Oil and Gas Certified Management System
Utilities (power supply, water supply, waste collection, treatment and disposal services
Regulated packaging and transport systems
Manufacturing (heavy industry, chemical industry, equipment and machinery)
Strict waste characterisation and acceptance criteria
Agriculture, forestry and fisheries
Multiple man-made barriers (‘engineered barrier’)
State Emergency Service (man made or natural disasters)
Thick 500 million year old, dry salt bed (‘geological barrier’)
Waste Acceptance Criteria
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Agriculture, forestry & fishing
Construction Government – Fed, State, Local (Emergency Services)
Healthcare
Manufacturing -Chemicals
Manufacturing -Heavy Industry
Manufacturing -Oil and Gas
Media and Telecom’s
Mining - coal, metals, non-metals, exploration
Professional, scientific and technical services
Utilities- electricity, gas supply, water, sewerage
Wholesale and retail trade
Where do the waste materials come from?
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How do we determine what type of waste it is?
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How do we package the waste?
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How do we transport waste to site?
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How do we transport waste to site?
Tellus can recommend established and reputable transport and logistics companies
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Tellus views waste as a valuable material (recover)
Safe storage of like with like materials in licenced facilities- creates recovery opportunities
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Chandler – Supporting the Circular Economy
Category 5% recycle 15% recycle
Jobs
Passenger vehicles driven for 1 year
Solar farm (1.0MW average PV panel)
Wind turbines installed (1.92MW average turbine)
16 20
32 40
<30 >40
13,535 16,774
Notes:
2/3 of greenhouse gas abatement savings from permanent isolation, 1/3 from recovery of valuable materialstCO2e equivalent assumptions currently being audited
2 MW solar
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How de we permanently isolate the waste?
A deep salt geological repository in a 500 Million year old, flat, 250m thick, 800m deep, 18 km wide, salt bed. Does not require ongoing monitoring as it is passively safe
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Salt mine related tourism
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Gov’t Policies that Align with Tellus’ Projects
Jobs - Local & Indigenous
Training and Skills
Royalties and Taxes Jobs – Women & Youth
Community Investment
Waste Infrastructure ContractingLocal andIndigenous
Innovation
Diversifying the Economy
Asian Trade
Government Social and Economic Policies Government Environmental and Haz. Waste Policies
Product Stewardship Reg’sRecycling is one of the few manufacturing sectors still growing in Australia
SustainabilityEncouraging valuable materials to re-enter the circular economy
Environmental Protection RegulationsMinimise adverse impacts on environment and human health and meeting national and international obligations
Hazardous chemicals (OHS Reg’s)Reduce OHS risk in theworkplace
Transport of Dangerous Goods Reg’sPrevents accidents and promotes safe transport
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Tellus is part of a $14.5 billion waste sector that employees over 50,000 people. These are green, sustainable, well paid jobs covering technical (engineering, chemistry, science), commercial (sales, business) and operational skills.
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NT Government’s EIA Process
We are here
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Titjikala to Alice Springs Road Update Tellus has met with the Northern Territory Government to discuss the
possible asphalting the Titjikala to Alice Springs Road (“Road”)
Tellus has met with the Australian Government to discuss the Road
Tellus has been asked to provide an unsolicited Road proposal
The parties are working out the design criteria for the Road
From the design criteria the cost of the Road is calculated
When the final cost is known, the parties will discuss possible next steps.
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Next Steps
Multiple gate capital investment program (3- 6 years to get to final investment decision)
Desktop (FEL 1) Desktop + Limited Field Work (FEL 1) Pre-feasbility study (FEL 2) Bankable feasbility study (FEL 3)
Capi
tal I
nves
tmen
t Pro
gram
?
We are
here
October 2017
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EIS Information
EIS information is on Tellus’ web site Community consultation is ongoing
Key Contacts – Tellus
Duncan van der MerweGroup Managing Director: +61 2 8257 3395
Richie Phillips GM HSEC and Compliance: +61 2 8257 3395
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Questions?
Contact Details
Richie Phillips
GM HSEC and ComplianceE: [email protected]
A: Suite 2, Level 10, 151 Castlereagh Street, Sydney, NSW, 2000
T: +61 2 8257 3395 www.tellusholdings.com.au
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Appendix
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Advantages of Geological Repositories
Geological Repository – Arid Near Surface Clay (Sandy Ridge) Geological Repository – Deep Underground Salt (Chandler)
Landfill
• Landfills do not permanently isolate waste from the biosphere• Once site is closed, it requires ongoing monitoring• Risk of groundwater contamination (pollution risk)• Typical landfill liner thickness ~1.5m or less• Lifespan of containment– 10-30 years(1)
• Can not issue permanent isolation / disposal certificates (hence cannot remove liability from customer balance sheet)
Engineered Barriers (Short Life)
• Can permanently isolate waste from the biosphere• Once site is closed, it requires no ongoing monitoring (post ICP), passively safe• No risk of groundwater contamination• Lifespan of containment– hundreds of thousands to millions of years• Can issue permanent isolation / disposal certificates – hence can remove customer liability• Globally considered “best practice”
Natural Barriers (Rock-long life)
1 10th International Waste Management and Landfill Symposium, Sardinia, 2005, R. COSSU, Dipartimento IMAGE, Università di Padova, Via Loredan, 20, 35131 Padova
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ClayVault WA (JV)
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Sandy Ridge Project (WA)
After 11 years of operations
Waste Inspection Building
Low Level Rad. Materials Store
Weighbridge
Admin office and Inspection Gate
Container Yard
Kaolin Process Plant and Store
Kaolin Ore Stockpile
Services Area (fuel, power, water,
maintenance)
Technology Park (future)
Accommodation Village (1.8km)
Water Ponds and Wash-down
Water Supply (12km)
Active Mine Pit
Active Waste Cell 1st Cell being Rehabilitated
Closed Cells (monitoring phase)
Unique assets: Waste permanently isolated in ~ 70 million year old clay bedGeology: Clay bed is ~ 6m deep under impermeable caprock, average ~ 14m thick, ~20km wide and ~ 160km long Aquifer and climate: No aquifer and in an arid area Infrastructure: 7.6 km from existing IWDF site
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Chandler Proposal introduction – salt mining & waste mgt
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Proposal introduction – salt mining and waste management
Australian hazardous waste market
Market size -volume (Mt)
• ~ 53.5 Mt total waste generated(2)
• ~10.3% (5.5 Mtpa) haz.(3)
• ~ 900 Mt legacy waste(2)
Marketsize value (A$)(2)
• ~ $14.2 billion(2) Australian waste market• ~ $2.4 billion(4) existing / reported hazardous waste market• ~ 50,000 + jobs, growth sector, recession proof
Sustainability• Australia is one of the highest emitters of hazardous
waste on a per capitabasis(1)
• Waste production in Australia has grown at six times population growth.
Volume of haz. waste across Australia
Waste treatment and disposal options
Landfill (Disposal), 35%
Treatment, 33%
Reuse / Recycling, 24%
Storage,5%
Sent Overseas, Energy2% Recovery, 1%
Note: Refer to End Notes for source
Situation: Recover vs
protect
• Regulators and community recognize that med-high hazardous waste should be permanently isolated(ESM)(2)
• Valuable materials should be recovered (circular economy)
• Growth in forecast & legacy waste volumes & complexity• Lack of practical & economic permanent solutions to date• Regulatory & community demands increasing
Problem: Demand↑,
Supply↓
• Can store, recover or permanently isolatewaste• Simple to use, cost effective, global best practicesolutions• Remove customer’s contingent liability
Tellus Solution
Tyres, abattoir effluent, grease trap, sewage, clinical wastes
are not targeted by Tellus
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Chandler Underground
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International Benchmarking Trip
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Winsford Rocksalt Mine - UKLargest salt mine in the UK - operating for over 170 years – combined mining and storage business.
Mining by drill and blasting
Operating since 1844Salt for snow and ice clearance in winter
Mining with continuous miners Large underground voids created
Located in rural part of NW England
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Alternative Mine Uses -UK
Concept of alternative uses of the underground void first identified in 1990’s
Deepstore launched in 1997
The first Alternative Mine Use (AMU)Mining areas after clean up
Storage room construction in progress Documents arriving for archiving
Room and pillar system >23M m3
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Minosus - UKMinosus JV set up by Salt Union Ltd and Veolia for storage and disposal of hazardous wastes
Level 3 verification testing
APC from Energy from Waste plants Secure receiving facility constructed
WAC met – waste loaded for underground APC delivered in bulk - packed on site
Underutilised existing shaft
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Minosus – Dry Packaged PlacementMultiple packages taken underground and placed into secure permanent isolation location
Containers opened in sealed storage room
Containers being driven to disposal areaContainers received 200m below ground
APC bags “pyramid stacked” Monitoring of underground atmosphere
Transit containers moved into mine shaft
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Hydraulic Backfilling Options
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Chandler - Multi Barrier SystemCombination of engineered and geological barriers provide permeant isolation
High integrity sealing systems
Multi barrier isolation system
Salt backfill and creep
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Waste Acceptance Criteria (Household & NEPM)
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Waste Acceptance Criteria (Household & NEPM)
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Waste acceptance - NORM
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Groundwater Overview Arid environment with ~ 260 mm per annum of rain. Evaporation
rates > 3,000 mm per annum (15 times average rainfall).
Not within a Water Control District.
Not connected to Mereenie Aquifer System.
Not connected to the Great Artesian Basin.
Not connected to Titjikala groundwater aquifer / water supply.
Groundwater bore holes encountered ancient lenses of water and aquifersin 4 distinct zones.
No groundwater aquifers have been detected below 400 mbgl.
Target aquifer for water supply is within the Upper Langra Formation (160 m to 220 mbgl).
Flow rates at water abstraction depth are ~ 12 litres per second.
Very saline water (18,000 mg/l) and salinity increases with depth.
Groundwater levels monitored every month.
Groundwater quality measured.
Groundwater flows southeast.
Water Management Plan drafted to manage construction and operation water demand and to protect water quality.
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Groundwater Research 2015 - 2016
Non-intrusive research
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Conceptual Groundwater Model
