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Caroona Coal Project

Project Description and Preliminary


Environmental Assessment

Caroona Coal Project

Contents
1. Introduction
1.1 Purpose and Structure of this Document
1.2 Background
2. Local and Regional Context
2.1 Location and Mining Tenements
2.2 Land Use and Built Features
1.3 Project Overview
2.3 Topography and Water Resources
2.4 Environmentally Sensitive Areas
3. Project Description and Justification
3.1 Proponent
3.2 Exploration Activities, Geological Features and Coal Resource
3.3 Project General Arrangement
3.4 Development Activities
3.5 Underground Mining Operations
3.6 Product Coal Stockpiling, Handling and Transport
3.7 Water Management Infrastructure and Services
3.8 Power Supply
3.9 Workforce
3.10 Rehabilitation Activities, Remediation Works and Offsets
3.11 Consideration of Alternatives and Project Justification Overview
4. Planning Considerations
4.1 Applicability of Division 4.1 of Part 4 of Environmental Planning

and Assessment Act, 1979
4.2 Planning Provisions
4.3 Planning Strategies
4.4 Permissibility of the Project
5. Preliminary Environmental Assessment
5.1 Overview
5.2 Level and Scope of Assessment
5.3 Gateway Application Assessments
6. Stakeholder Consultation
6.1 Consultation Undertaken to Date
6.2 Stakeholder Engagement Programme
7. References
Attachment A Preliminary Schedule of Lands

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Project Description and Preliminary Environmental Assessment i

Contents
continued

LIST OF TABLES:
Table 1 Overview of the Caroona Coal Project
Table 2 Key Potential Environmental Issues, Required Level and

Scope of Environmental Assessment and Preliminary Strategies

to Address Potential Impacts
LIST OF FIGURES:
Figure 1 Regional Location
Figure 2 Aerial Photograph of the Project Area and Surrounds
Figure 3a Relevant Land Ownership
Figure 3b Relevant Land Ownership List
Figure 4 Indicative Mining Layout and Surface Infrastructure
Figure 5 Environmental Monitoring Sites
LIST OF PLATES
Plate 1 Doona Ridge
Plate 2 Example of Subsidence Remediation
Plate 3 Soil Investigation
Plate 4 Soil Sampling Field Day

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Caroona Coal Project

1. Introduction
1.1 Purpose and Structure of this Document

Coal Mines Australia Pty Ltd (CMAL), a wholly owned subsidiary


of BHP Billiton, is seeking consent to develop an underground
coal mining operation in the New England North West region of
New South Wales (NSW), herein referred to as the Caroona Coal
Project (the Project) (Figure 1).

This document has been prepared to provide a description of the


Project to key State regulatory agencies to initiate the
preparation of the DirectorGenerals Requirements (DGRs) under
clause 3 of Schedule 2 of the NSW Environmental Planning and
Assessment Regulation, 2000 (EP&ARegulation). The DGRs will
identify any further matters that will need to be addressed in the
Environmental Impact Statement (EIS).
The remainder of this document is structured as follows:

Section 1 Introduction provides a background to the


development of the Project and an overview of the proposed
mining activities.

Section 2 Local and Regional Context summarises the local


and regional context of the Project (including surrounding
development).

Section 3 Project Description and Justification provides a


clear and concise description of the Project, indicates the types
of activities that will be undertaken, includes a justification for
the Project and summarises the Project alternatives considered.
Section 4 Planning Considerations describes the
permissibility of the Project and applicable statutory planning
instruments and strategic planning documents.

Section 5 Preliminary Environmental Assessment identifies


key environmental issues of particular relevance to the Project
based on a preliminary risk assessment, provides an analysis of
the likely nature and extent of potential impacts, and identifies
strategies to address the potential impacts identified.
Section 6 Stakeholder Consultation outlines consultation
(with the community, local councils and State regulatory
agencies) already undertaken and proposed to be carried out
for the Project.

Section 7 References Lists documents referenced in


Sections 1 to 6.

1.2 Background

Within the 344 square kilometres (km2) EL 6505, BHP Billiton has
identified three targeted exploration areas at Doona Ridge
(Plate 1), Nicholas Ridge and Georges Island totalling 126 km2.
Although there are significant coal deposits outside of these
areas, BHP Billiton has focused exploration on the targeted areas
because of the potential for longwall mining subsidence to
adversely impact the alluvial plains which characterise the lands
outside of the targeted areas and is often used for irrigated
cropping.
This application includes proposed longwall mining underneath
the Doona Ridge and Nicholas Ridge targeted exploration areas
(Figure 2) which total approximately 119 km2. Through focusing
proposed underground mining operations under these elevated
and gently sloping lands, and with the implementation of other
mitigation measures, the Project has been designed to minimise
impacts on the alluvial plains.

BHP Billiton will lodge an application for a Gateway Certificate


for the Project to the Mining and Petroleum Gateway Panel
(Gateway Panel) in April 2014. It is anticipated that the Gateway
Panel will issue a Gateway Certificate for the Project in
accordance with the State Environmental Planning Policy
(Mining, Petroleum Production and Extractive Industries), 2007
(MiningSEPP).

The Project will also be referred to the Federal Minister for the
Environment to determine whether the Project is a Controlled
Action and requires approval under the Commonwealth
Environment Protection and Biodiversity Conservation Act, 1999
(EPBC Act).
In parallel, BHPBilliton seeks DGRs from the DirectorGeneral of
the NSW Department of Planning and Infrastructure (DP&I) to
inform the EIS.
It is anticipated that the DGRs will be prepared by the DP&I in
consideration of:
this document;
any key issues raised by State regulatory agencies following
their review of this document;
the recommendations of the Gateway Panel set out in a
conditional Gateway Certificate; and
the decision of the Commonwealth Minister for the
Environment regarding the referral under the EPBC Act.

Exploration Licence (EL) 6505 was granted to BHPBilliton in 2006


and exploration activities, engineering studies and
environmental baseline studies have been ongoing.

Plate 1. Doona Ridge


Project Description and Preliminary Environmental Assessment 1

NARRABRI

URALLA
SHIRE COUNCIL

BARRABA

NARRABRI
SHIRE COUNCIL
Narrabri Coal Mine

Maules Creek
Coal Project

Boggabri
Coal Mine

Tarrawonga
Coal Mine

Canyon
Coal Mine

BOGGABRI

MANILLA

Rocglen
Coal Mine

TAMWORTH
REGIONAL COUNCIL

Vickery Coal
Project

CARROLL

Sunnyside
Coal Mine

GUNNEDAH
KOOTINGAL

GUNNEDAH SHIRE COUNCIL

MOONBI

TAMWORTH

CURLEWIS

Watermark
Coal Project

WERRIS CREEK
Werris Creek
Coal Mine

NUNDLE
QUIRINDI

Caroona Coal Project


WARRUMBUNGLE
SHIRE COUNCIL

LIVERPOOL PLAINS SHIRE COUNCIL

MURRURUNDI
COOLAH
LEGEND
Town
Protected Lands
NSW State Forest
Native Vegetation
Local Government Area Boundary
Exploration Licence (EL 6505)
Mine Site
0

12

18

24

UPPER HUNTER SHIRE COUNCIL


SATUR

MERRIWA

ABERDEEN

30

Kilometres
Source: Geoscience Australia (2006); NSW
Department of Premier and Cabinet, Office of
Environment and Heritage (2011) and Minerals
NSW (2012)

SCONE

Dartbrook Coal Mine


Mt Pleasant Coal Mine

MUSWELLBROOK

Mangoola
Coal Mine

Muswellbrook No.2
Coal Mine

Bengalla Coal Mine


Mt Arthur
Coal Mine

DENMAN

MUSWELLBROOK SHIRE COUNCIL

C A R O O N A

C O A L

P R O J E C T

FIGURE 1

Regional Location

HVE-13-02_PEA_201B

Project Description and Preliminary Environmental Assessment 2

300

450

0
40

Project Description and Preliminary Environmental Assessment 3

HVE-13-02_PEA_202A

k
Cree

400

0
Source: Land and Property Management Authority - Topograpraphic40Base
2010 and
Orthophoto (Curlewis 2011 & Tamworth 2010)

GDA 94 MGA Zone 56

Kilometres

K RAI
LW AY

400

400

LEGEND
0
Exploration Licence (EL 6505)45
Targeted Exploration4Area
50

350

350

0
35

0
35

30

35
0

Doona State Forest

WERRIS
CREE

Doona Ridge

35
0

40
0

40

40

BINNAW
AY

Coonabarabran Road

350

400

0
35
45

300

Caroona

300

a Ro

450

6520000

300

EL 6505

300

rin
ewa
Willi

400

0
40

350

30

6530000

400

45

450

ama
Yarr

400

35
0

Road
RI
VE
R

Mystery

Nicholas Ridge

35
0

bran R

Road
Bundella

Coonab
ara

400

Waverley Road

Wer
ris

300

oa d

35

Cree
k

C O A L
Aerial Photograph of the
Project Area and Surrounds

FIGURE 2

C A R O O N A

Quirind
i

0
35

350

300

250000

300

400

300
0

450

35

260000

I
OK
MO

WAY
HIGH

300

300

Waverley Road

300

260000
300

6520000

P R O J E C T

Creek

oad
Gap R

6530000

350

300

AROI

350

250000

L
KAMI

300

450
400 350

ad

0
35

400

Caroona Coal Project

1. Introduction

2. Local and Regional


Context

1.3 Project Overview

2.1 Location and Mining Tenements

continued

The main components comprising the Project include:


an underground mining operation within EL6505 involving a
single longwall in the Hoskissons Seam on Doona Ridge and
a second longwall in the Hoskissons Seam on Nicholas Ridge;
production of approximately 260million tonnes (Mt) of
run-of-mine (ROM) coal over the life of the mine;
production of up to approximately 10million tonnes per annum
(Mtpa) of saleable thermal coal;
a mine life of approximately 30 years;
development and operation of a pit top mine infrastructure
area comprising administration offices, bathhouse, workshop,
store, coal stockpile areas, coal handling infrastructure,
bunded hydrocarbon tanks, laydown areas, car parking,
electrical substation, muster area, associated linear
infrastructure and access road on Doona Ridge;
development and operation of a separate men and materials
shaft;
construction and operation of an event coal preparation plant
(CPP) (up to 1 Mtpa ROM coal capacity) on Doona Ridge for
washing of occasional high-ash ROM coal;
construction and operation of a coal unloading facility on
Doona Ridge to allow transportation of Nicholas Ridge ROM
coal to Doona Ridge via rail for washing;
co-disposal of fine and coarse rejects in an emplacement on
Doona Ridge, with rejects to be transported within an
infrastructure corridor;
development and operation of a separate pit top mine
infrastructure area comprising coal handling infrastructure,
coal stockpiles, an access road, car parking, administration
offices, muster area, electrical substation and associated linear
infrastructure on Nicholas Ridge;
construction and operation of separate rail loops and spurs to
connect to the BinnawayWerris Creek Railway;
realignment of Rossmar Park Road;
employment of up to approximately 400operational personnel
at peak production;
employment of an average number of construction employees
of approximately 400 and up to 600 at peak construction;
emplacement of overburden excavated during the construction
of access drifts and shafts;
progressive development of sumps, pumps, pipelines, water
storages and other water management equipment and
structures (including dewatering infrastructure);
development and operation of ventilation surface
infrastructure and gas drainage infrastructure;
development and operation of water and gas pipelines to
connect the infrastructure areas;
ongoing exploration activities within EL6505;
ongoing surface monitoring and rehabilitation (including mine
related infrastructure areas that are no longer required) and
remediation of subsidence effects; and
other associated minor infrastructure, plant, equipment and
activities.
Additional details of each of the main Project components are
provided in Section 3.

The Project is located in the New England North West region,


approximately 40kilometres (km) southeast of Gunnedah and
14 km west of Quirindi NSW. The underground mining area is
entirely located within EL 6505 which comprises an area of
approximately 344 km2.

A preliminary Schedule of Lands for the provisional Development


Application Area1 is provided in AttachmentA. The provisional
Development Application Area is within both the Liverpool Plains
Local Government Area(LGA) and the Gunnedah LGA.

2.2 Land Use and Built Features

The types of agricultural industries within the surrounding


locality include beef cattle, sheep and a mix of dryland and
irrigated cropping (La Tierra, 2014). An aerial photograph of the
Project area2 and surrounds is provided as Figure2.

The land within the Project area is primarily used for agricultural
and rural residential purposes. Agricultural enterprises include
cattle grazing and both dryland and irrigated cropping.
The Caroona Feedlot owned by JBS Australia, located to the
south-west of the Doona State Forest within the Project area, is
a 23,500head capacity, 1,390hectare (ha) feedlot, which
includes a number of holding yards, sheds, mills, silos and other
associated infrastructure. Figures 3a and 3b show local land
ownership, including the Caroona Feedlot owned by
JBS Australia.
The most common enterprises within the Project underground
mining area are producing cattle (weaners/vealers) on natural
pastures and dryland cropping (La Tierra, 2014). There are also a
number of dryland and irrigated cropping enterprises within the
Project area, predominantly located in the southern portion of
the Doona Ridge, and the eastern portion of the Nicholas Ridge
underground mining area. Parts of the underground mining area
are comprised of denser woodland vegetation (generally on the
steeper slopes), including the Doona State Forest, which are
occasionally used to graze cattle.
Surrounding the Project area are alluvial plains which are often
used for dryland and irrigated cropping.

Existing development within and immediately surrounding the


Project area include:
the Binnaway Werris Creek Railway;
the Kamilaroi Highway, Coonabarabran Road, Waverley Road,
Williewarina Road;
the JBS Australia Caroona Feedlot;
electrical infrastructure (33 kilovolt [kV] and low voltage
powerlines);
telecommunications infrastructure (buried fibre optic cable and
copper cables);
pipelines (water and natural gas lines);
commercial, residential and rural buildings; and
agricultural infrastructure (e.g. irrigation infrastructure, farm
dams and silos).
1 Note the provisional Development Application Area may be subject to
change following detailed mine planning, environmental assessment and
consideration of alternatives conducted for the EIS.
2 Defined as the indicative underground mining area and conceptual surface
disturbance area shown on Figure4.
Project Description and Preliminary Environmental Assessment 4

240000

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116

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30 28

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117 118

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11

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101

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118

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31

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Road

152

107

17

152

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152
152 152
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152
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152

Tribella

152

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107

107

152

132

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162

161

17 162

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161

152
152
22

161

72

152

161

161

29

48

48

150

83

72

161

121

161

166

50

2003

57

111 111
111
135 111
135
57
Road 57
49

135

135

83
158

121

131

83

Road

75

83

83

2001

131

83

158

18

111

57

57

160

2003

70

2001 126

Doona State Forest

135

135

158

121

121

oad
4D R

158

27

135

135

135

31 29

48

2004

161

31
29

29

11

101

152

21

48

27

27

48
48
48 Rossmar Park

101

11

11

101
101
189
101
2004 116 2004
101
Coonabarabran
BINNAWAY
WERRIS CREE
4
K 2004
4
55
83
2004
4
RAILWAY
54
2004
190
55
83
152
54
171

99

143

143

28

31

28

28

EL 6505 28

28

11

27
27

27

23

18

57

70

139

2003
71

126

35

35

160
160 160

160

Caroona

93
18

70
156
156 2003
2003
156 7 7
149

156

18

56

56

130

130

160
164

160

160

Pine Ridge

160

18

56

130

40

127

115 8
26
128

51

5 2004

38

rina

112

125

86

125

125

129

129

125

129

2004

81

2003

6
6

98

45

19

87

13

13

2004

125

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95

95

Road

92

24
24

24

Road

125

125

41

86

6 68

134

163

66
2003
2003
2003
124

66

133

59

2005

60

113

124

64

67

67

114

114

114

114

144

12

RA
ILW

AY

63

63

158

122

94
14
103 14
46
78
7778 84
14 46 85

124

123

62
66
62
AY
62 66 K RAILW
62
CREE
IS
R
66
R
E
W
WA Y
BINNA
66

64 64

HIG 63
HW
AY

66

64

64 64
64

64

114

108

102

102

Werris Creek

LEGEND
Exploration Licence (EL 6505)
State Forest
Crown Land
6520000
Coal Mines Australia Pty Ltd
Conceptual Surface Infrastructure Area
Indicative Underground Mining Layout

Gap Road

6530000

Roa
44 90
44
68 61 61 d
6 68 68 61
61
44 90
61
6 61 61
43
138
90
138
58
95
138
43 43
0
1
2
3
4
5
95
58
95 136
136
138
95
95
Kilometres
136
136
136
GDA 94 MGA Zone 56
95
136
92
42 Source: Land and Property Management Authority (2010) and
110 134

24

163

2003
66
2003
2004

41

108

108

102

Pty Ltd, February 2014


BundellaMiner Details
RoaBdundella
Road
C A R O O N A C O
A L P R O J E C T

a
dell
FIGURE 3a
Bun
Note: Other minor ancillary infrastructure such as water and
Relevant Land Ownership
gas management infrastructure would be required,
(Refer Figure 3b for Details)
however their locations are not shown.

19

19

19

bara
bran

157

108W 108
108
ERR
IS
CR 108
128
2004 EEK
108
128
MU
86
86
86 2004 NGIN
DI
86
41
41
2004

86

2003 128 128

86

Waverley

125

129

128

125

Coon
a

129

129

129

40

Breeza

2004 126
163
126
37 36
126
79
2004 126
2004 37
36 39 126 126
79 33
34
74 74
2003
32
20
79
170
20
34
39
137 137
32 32
74
137 137
32
137
32
137
98
2

Road

Project Description and Preliminary Environmental Assessment 5

HVE-13-02_PEA_203B

6520000

Spring Ridge
State Forest

Spring Ridge

6530000

31

31

31

Road

Breeza
State Forest

Clift

Park

Rossmar

Roa

iewa
Will

R
RIVE

250000

Road

I
OK
MO

Wa

Road

240000

AROI

WA

270000

250000

Mystery

260000

L
KAMI

erle
y

270000

I
RO

260000

IL A
KAM

H
HIG

Ref. No Land Holder


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AMPS Agribusiness Pty Limited


Alcorn LJ & MA
Alcorn ML
JBS Australia Pty Ltd
Coal Mines Australia Pty Ltd
Bailey TN
Cohen GJ & DF
Baker RE & BM
Shenhua Watermark Coal Pty Ltd
Shenhua Watermark Coal Pty Ltd
Birrawa Pastoral Company Pty Ltd
Bolger EP (Junior)
Bonner MLD
Boorer CJ
Shenhua Watermark Coal Pty Ltd
Shenhua Watermark Coal Pty Ltd
Brown GW & SL
Burt MC, WP & WA
Charters CR
Charters CR & SJ
Charters HF
Charters HF
Pursehouse Properties Pty Ltd
Clarmonds Pty Ltd
Shenhua Watermark Coal Pty Ltd
Clift DT
Clift G
Clift M
Clift M & KA
Clift RS
Clift RS & A
Cohen RG & TM
Cohen GJ
Cohen GJ & DF
Cohen GJ & DF
Cohen GJ & DF
Cohen GJ & DF
Coal Mines Australia Pty Ltd
Coal Mines Australia Pty Ltd
Craig ST, JW & NL
Craig WTA & P
Cudmore RH & SA
Dalton R
Dalton R & RT
Dangar WJ, FH, HC & AA
Doolan BV
CJ & PA Duddy Pty Ltd
Duddy C J
Duddy CJ
Burt MC & WA
Ranken JWL
Eleveld KF & GK
Elsley FE
Elsley FE & DE
Burt MC & WA
Coal Mines Australia Pty Ltd
Eykamp CD
Eykamp CW
Eykamp LA
Eykamp LA & JL
Fisher ME, GC & HR
Fisher GC
Fisher HR

Ref. No Land Holder


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Fisher ME & GC
Fisher ME, GC & HR
Fisher RC
Fletcher BI & VR
Frofour Pty Ltd
Fuller JW & RM
Fullers Transport Pty Ltd
G.S.S.H Pty Ltd
Carbon Minerals NL
Glencohen Pty Ltd
Coal Mines Australia Pty Ltd
SCMB Pty Ltd and BGI Pty Ltd
Green T
Green TD
Hamlin CR & VJ
Hamblin NJ
Hamblin RJ, FJ, PG & NJ
Graham JW, Smith MEL
Hanuta Pty Ltd
Hickman JM
Hickman SSM & Ross-Hickman DS
Holifall Pty Ltd
Hurley JK
Ingall IG,Lyttle KN,Cohen RJF,Squires JA,Bruce JHP,Hosking J
Church - Croaker, AMA; Croaker, GDH; and James, MJ Trustees
Jarret H & M
Shenhua Watermark Coal Pty Ltd
Karapiti Holdings Pty Ltd
Pursehouse Properties Pty Ltd
Lawlor MW & Gorsch JB
Lindenow Pastoral Company Pty Limited
Hollis M & V
Lingard TL
Bailey TN
Malden J
Maraig Pty Ltd
Maylan Pty Ltd
McBeth W & PE, & AJ
McIlrick TW & JA
Bradfield NG & MJ
Shenhua Watermark Coal Pty Ltd
Shenhua Watermark Coal Pty Ltd
Mills RA Estate:Perpetual Lease
Moore GN & JC
Munro NM
Murphy PJ & KN
Pursehouse Properties Pty Ltd
N.R.L.F Pty Ltd
AR Grant Estate Perpetual Lease
Newcombe IR
Nicholson RP
Nilwon Pastoral Co Pty Ltd
Norman CF
Norman GS
NSW Grain Corporation Ltd
Penick RE
Permaid Pty Ltd
Pike CT
Pike CT & VL
Pike MG & CT
Piper SL & MJ
Priestley JC & CL
Pursehouse AL

Ref. No Land Holder


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2003
2004
2005
2006

Pursehouse AL & CI
Pursehouse Investments Pty Ltd
Pursehouse Properties Pty Ltd
Rado Ranch Pty Limited
Ranken DCL,HRL & JWL
Rex Fisher Pty Ltd
RG & HD Thompson Pty Ltd
Rossmar Park Pastoral Co Pty Ltd
Rutter EO & SA
Rutter PR
Rutter RA & DA
Ryan WH & EC
Frankham DR & DW
Seymour MG & CL
Seymour MG & Lingard CL
Single Tree Pty Ltd
Small HR
Shenhua Watermark Coal Pty Ltd
Stackman BA & Lingard KL
Tandim Investments Pty Ltd
Taylor MG Estate
Todman, Anthony Reginald & Jennifer Ruth
Thyrek Pty Ltd
Shenhua Watermark Coal Pty Ltd
Tribella Pty Ltd
Trustees Of The Roman Catholic Church,
Diocese of Armidale
Shenhua Watermark Coal Pty Ltd
Wadwell KG & SN
Walhallow Local Aboriginal Land Council
Walhallow Murri Enterprise Aboriginal Corporation
Wallalla Holdings Pty Limited
Warren CS
Williewarina Pty Ltd
Willis SNB & RNB
Willis SN & MJ
Wilson BM & E
The Peel-Cuningham County Council
Doona State Forest
Coal Mines Australia Pty Ltd
Elsley FE & DE
Willis
Shenhua Watermark Coal Pty Ltd
TS&CR 32492
Penunga Pty Ltd
Doona State Forest
State of NSW
State Rail Authority
The Council of The Shire of Tarmang
The Minister for Public Roads

Source: Miner Details Pty Ltd (2014)

C A R O O N A

C O A L

P R O J E C T

FIGURE 3b
Relevant Land Ownership List
(as at 10 February 2014)
HVE-13_02 _PEA_001A

Project Description and Preliminary Environmental Assessment 6

Caroona Coal Project

2. Local and Regional Context


continued

Listed heritage items located adjacent to the Project


underground mining area include:
the Caroona Mission Cemetery listed in the Liverpool Plains
Local Environmental Plan 2011 (Liverpool Plains LEP) as an
item of local significance;
the Croaker Memorial Union Church listed in the Liverpool
Plains LEP as an item of local significance; and
the Walhallow Homestead Group listed in the Liverpool Plains
LEP as an item of local significance.
No underground mining is proposed under these features.

The operational and proposed mines in the vicinity of the Project


area include:
the Werris Creek Coal Mine, an operational open cut coal mine
owned by Whitehaven Coal Pty Ltd, approximately 7 km east
of EL6505; and
the Shenhua Watermark Project, a proposed open cut coal
mine owned by Shenhua Australia Holdings Pty Ltd,
approximately 6km north of EL6505.

2.3 Topography and Water Resources

The topography of the Project area is dominated by


Doona Ridge, a prominent ridgeline that trends north-south
through the centre of EL 6505, and Nicholas Ridge, another ridge
located in the eastern part of EL 6505 (Figure 2). Elevation within
Doona Ridge ranges from 410metres (m) Australian Height
Datum (AHD) in the centre of EL 6505 and up to 460 m AHD at
the southern extent of the EL6505 (known as PerrysMountain).
Nicholas Ridge reaches a maximum elevation of 410 m AHD.
At the margins of the ridges, flatter areas of around 300 m AHD
are present. These transition to the alluvial plains of the Mooki
River (east of Doona Ridge) and Yarraman Creek (west of
Doona Ridge).

The Project area is within the upper Namoi River catchment of


the Murray Darling Basin. The primary drainage line in the
vicinity of the Project is the Mooki River which flows from south
to north, between Doona Ridge and Nicholas Ridge (Figure2).
Quirindi Creek flows approximately east to west, with its
confluence with the Mooki River being approximately in the
centre of EL 6505. Yarraman Creek, located approximately along
the western boundary of EL 6505, is a disconnected ephemeral
drainage line draining the elevated country to the southwest of
the Project.
The Project area drains to the Mooki River and Quirindi Creek
through a number of ephemeral drainage lines from the
ridgelines. Runoff from the western side of Doona Ridge would
flow to the flat country in the west of EL 6505, which is
associated with the Yarraman Creek alluvial plain.

2.4 Environmentally Sensitive Areas

A preliminary investigation of environmentally sensitive areas of


State significance (as defined in the State Environmental
Planning Policy [State and Regional Development] 2011 [State
and Regional Development SEPP]) with respect to the Project has
identified the following:
The provisional Development Application Area is not within
coastal waters of the State.
There are no lands protected or preserved under State
Environmental Planning Policy No.14 Coastal Wetlands or
State Environmental Planning Policy No. 26 Littoral
Rainforests that occur within the provisional Development
Application Area.
There are no lands reserved as an aquatic reserve under the
NSW Fisheries Management Act, 1994 or as a marine park
under the NSW Marine Parks Act, 1997 that occur within the
provisional Development Application Area.
There are no lands within a wetland of international
significance declared under the Ramsar Convention on
Wetlands or lands within a World Heritage area declared under
the World Heritage Convention that occur within or near the
provisional Development Application Area.
There are no lands within the provisional Development
Application Area that are mapped as environmentally
sensitive land under the Liverpool Plains LEP or the Gunnedah
Local Environmental Plan 2012 (Gunnedah LEP). No lands
identified in an Environmental Planning Instrument as being of
high Aboriginal cultural significance have been identified
within the provisional Development Application Area at this
stage.
There are no lands reserved under the NSW National Parks and
Wildlife Act, 1974 that occur within the provisional
Development Application Area.
There are no lands, places, buildings or structures listed on the
State Heritage Register under the Heritage Act, 1977 that occur
within the provisional Development Application Area.
There are no lands reserved or dedicated under the NSW
Crown Lands Act, 1989 for the preservation of flora, fauna,
geological formations or for other environmental protection
purposes that have been identified within the provisional
Development Application Area. Travelling Stock Reserves are
located within EL6505.
There are no lands declared as critical habitat under the NSW
Threatened Species Conservation Act, 1995 or Fisheries
Management Act, 1994 that occur within the provisional
Development Application Area.

The natural groundwater levels within the site are expected to be


topographically controlled, with water level profiles generally
reflecting surface topography. Doona Ridge is bounded to the
east by the Mooki River and its associated alluvium, and
bounded to the west by the alluvium associated with Yarraman
Creek.

Project Description and Preliminary Environmental Assessment 7

Caroona Coal Project

3. Project Description and Justification


The Project is a proposed underground coal mining operation
with an operational life of approximately 30 years.

Following comprehensive community consultation, baseline


environmental monitoring and engineering studies since 2006,
this project has been specifically designed to minimise impacts
on the surrounding agricultural land, the community and the
natural environment.

An indicative Project general arrangement is shown on Figure4.


Table 1 provides a summary of activities associated with the
Project. Additional details of each of the main Project
components are discussed below.

3.1 Proponent

CMAL (ABN 70 062 855 270) (a wholly owned subsidiary of BHP


Billiton) is the proponent for the Project. The contact details for
CMAL are:
Coal Mines Australia Pty Ltd
125 Hawker Street
Quirindi NSW 2343

The proponents website is:

Website: http://www.bhpbilliton.com

3.2 Exploration Activities, Geological


Features and Coal Resource

EL 6505 was granted to BHP Billiton in 2006 as part of a


competitive tender process, for a period of five years. EL 6505
was renewed for a further term until 22 February 2016 by the
Minister for Resources and Energy on 19 March 2014.

Since the grant of the EL in 2006, BHP Billiton has conducted


various exploration activities, which are described in several
documents, namely:
Exploration Environmental Management Plan for the Caroona
Project EL 6505 (July 2006) (BHP Billiton, 2006a);
Review of Environmental Factors for Exploration Borehole C44
Caroona Exploration Area (BHP Billiton, 2006b);
Review of Environmental Factors for Caroona Exploration
Program Reconnaissance Drilling and Associated Activities
2007 to 2011 (September 2007) (BHP Billiton, 2007);
Review of Environmental Factors for Caroona Exploration
Program Exploration Drilling and Associated Activities 2009 to
2011 (March 2009) (BHP Billiton, 2009);
Review of Environmental Factors for Caroona Exploration
Program EL6505 3D Seismic Survey 2010 (October 2010)
(BHP Billiton, 2010a);
Review of Environmental Factors for Caroona Exploration
Program EL6505 3D Seismic Survey 2010 Addendum
(December 2010) (BHP Billiton, 2010b);
Review of Environmental Factors for Caroona Exploration
Program Large Diameter Boreholes 2011 (April 2011)
(BHP Billiton, 2011a); and
Caroona Exploration Program REF for Large Diameter
Boreholes 2011 (June 2011) Classification of Issues.
Addendum to the original REF dated April 2011
(BHP Billiton, 2011b).

drilling of 346 boreholes;


airborne magnetometer survey;
2-Dimensional and 3-Dimensional seismic surveys; and
ground magnetic surveys.

During the life of the Project, geological exploration activities


would continue to be undertaken in areas ahead of the
underground mining operations to investigate geological
structure and coal quality. This would include in-seam and
surface-to-seam drilling, magnetic, electromagnetic, gravimetric
and seismic investigations. The findings from these activities
would provide input into detailed mine planning and engineering
studies.

Targeted Exploration Areas

In 2008, BHP Billiton identified three targeted exploration areas.


The Doona Ridge and Nicholas Ridge targeted exploration areas
are shown on Figure 2. A third targeted exploration area on
Georges Island is not part of this Development Application.

Geological Features and Coal Resource

The Project is located within the Gunnedah Basin, which forms


the central part of the Sydney-Gunnedah-Bowen Basin system
(NSW Department of Trade and Investment, Regional
Infrastructure and Services-Division of Resources and Energy
[DTIRIS-DRE], 2014).

The formations expressed at the surface within EL6505 include:


Quaternary Alluvial Deposits; Jurassic Formations Pilliga
Sandstone, Purlawaugh and Garrawilla Volcanics; Middle Triassic
Napperby Formation; Early Triassic Digby Formation; and late
Permian Coogal and Nea Sub Groups. The Hoskissons Seam is
located within the Coogal SubGroup of the Black Jack Group
and is the target seam for the Caroona Coal Project.
Thirteen coal seams can be identified within EL6505 within the
Permian Black Jack Group, however only the Hoskissons Seam is
presently considered to be economically recoverable. These
minor coal seams include the Caroona, Howes Hill, Breeza, Clift,
Springfields and Mooki Seams (Mine Subsidence Engineering
Consultants [MSEC], 2014).

Within the Project underground mining area, the Hoskissons


Seam is 8 to 16 m in thickness and has a depth of cover between
130 and 710 m (MSEC,2014). Once mined and processed, the
Hoskissons Seam is expected to produce mainly energy (thermal)
coal.
The target recoverable coal within the target seam in the
underground mining area is approximately 260Mt of ROM coal.

3.3 Project General Arrangement

The indicative mining layout and surface infrastructure is shown


on Figure 4. The main activities associated with the Project are
provided in Table 1.

BHP Billitons exploration program was undertaken from


2006 to 2012. Exploration activities included:

Project Description and Preliminary Environmental Assessment 8

a Ro

250000

Creek

Project Description and Preliminary Environmental Assessment 9

HVE-13-02_PEA_204B

LEGEND
Exploration Licence (EL 6505)
Conceptual Surface Infrastructure Area
Conceptual Rail Infrastructure Alignment
Indicative Underground Mining Layout

rin
ewa
Willi

GDA 94 MGA Zone 56

ER
RIV

Caroona

260000

Kilometres

K RAI
LW AY

KI
MOO

man

WERRIS
CREE

Coonabarabran Road

260000

Mystery

Road

Bundel

arabra
n Ro
ad

Quirind
i

Cree
k

C A R O O N A C O A L
FIGURE 4
Note: Other minor ancillary infrastructure such as water and gas
management infrastructure would be required, however Indicative Mining Layout and
Surface Infrastructure
la Road
their locations are not shown.

Coonab

Waverley Road

Wer
ris

WAY
HIGH

Source: Land and Property Management Authority - Topograpraphic Base 2010 and
Orthophoto (Curlewis 2011 & Tamworth 2010)

ra
Yar

BINNAW
AY

Doona State Forest

AROI

6520000

6530000

EL 6505

L
KAMI

ad

Waverley Road
250000

6520000

P R O J E C T

Creek

oad
Gap R

6530000

Caroona Coal Project

3. Project Description and Justification


continued

Table 1. Overview of the Caroona Coal Project


Project Feature

Project

Mining Method and ROM Coal


Production

Longwall mining in the Hoskissons Seam.


Production of approximately 260Mt of ROM coal over the life of the mine. Production of up to
approximately 10 Mtpa of ROM thermal coal.

Mine Life

Mining Areas

Mine Infrastructure Areas and Mine


Access

CPP and Transport Infrastructure

Ventilation and Gas Drainage


Water Management

Hours of Operation

Operational life of approximately 30 years.

Doona Ridge and Nicholas Ridge areas.

Development and operation of a mine infrastructure area comprising administration offices, bathhouse,
workshop, store, coal stockpile areas, bunded hydrocarbon tanks, laydown areas, car parking, electrical
substation and associated linear infrastructure and access road on Doona Ridge.
Development and operation of a men and materials shaft on southern Doona Ridge with access off
4D Road.
Development and operation of a mine infrastructure area comprising coal stockpiles, bathhouse, car
parking, administration offices, linear infrastructure and an access road on Nicholas Ridge.
Road access to Doona Ridge off Rossmar Park Road and Nicholas Ridge off Waverley Road.
Construction and operation of train load-out facilities including a rail spur and loop at Doona Ridge and
Nicholas Ridge.

Construction and operation of coal handling infrastructure on Doona Ridge for sizing and handling of coal,
incorporating an event CPP (1 Mtpa ROM coal capacity) for washing of occasional high-ash ROM coal.
Construction and operation of coal handling infrastructure on Nicholas Ridge for sizing and handling of
coal.
Development and operation of a rail spur and loop and coal loading infrastructure on both Doona Ridge
and Nicholas Ridge to allow access to the Binnaway-Werris Creek Railway.
Construction and operation of a coal unloading facility on Doona Ridge to allow the transportation of
high-ash ROM coal from Nicholas Ridge to Doona Ridge for washing at the CPP.
Co-disposal of fine and coarse rejects in an emplacement on Doona Ridge, with rejects to be transported
within an infrastructure corridor.
Development of ventilation shafts and gas drainage infrastructure.
Construction and operation of a connecting gas pipeline between infrastructure areas.

Development of a water management system comprising of water storages, sumps, pumps, pipelines,
sediment control, mine dewatering and sewage treatment.
Development of a water management strategy based on a detailed site water balance which may include
reuse of water on-site, storage of water on-site, licensed water extraction for water supply and/or
treatment and beneficial use or controlled licensed release of excess water.
Construction and operation of a connecting water pipeline between Doona Ridge and Nicholas Ridge.
24 hours per day, seven days per week, including drift construction and development.

Operational Workforce

Up to approximately 400 personnel at peak production.

Exploration

Ongoing exploration activities within EL 6505.

Power Supply

Monitoring of Subsidence Impacts


Remediation and Rehabilitation Works

Construction Workforce

Construction and use of internal power reticulation infrastructure (substations and internal transmission
lines) as required.
Construction and operation of a 132 kV electricity transmission line from the Werris Creek substation to the
Caroona Coal Project (subject to separate approvals).
Monitoring of subsidence and subsidence impacts over the proposed underground mining and mine
development areas.
Progressive rehabilitation of surface disturbance areas (e.g. exploration drill pads).
Ongoing remediation of subsidence effects.
Rehabilitation of mine related infrastructure areas at the end of the Project life.

Average number of construction employees approximately 400 with up to 600 at peak construction.

Project Description and Preliminary Environmental Assessment 10

Caroona Coal Project

3. Project Description and Justification


continued

3.4 Development Activities

Ongoing Construction Activities

The following is a general description of the construction


activities that would be common to each phase.

The requirement for surface gas drainage infrastructure would


be determined through further detailed coal seam gas content
analysis and mine planning.

The Project would consist of two distinct construction phases,


one initial phase commencing in Year 1 of the Project focused on
Doona Ridge and taking approximately 3years and a second
phase in approximately Year 15 of the Project focused on
Nicholas Ridge, with a duration of approximately 18 months.

Underground Mine Development

Specific underground mine development activities would include:


initial underground access and portal development to enable
the commencement of the men and material and conveyor
drifts;
construction of men and material and ventilation shafts;
use of overburden associated with excavations for construction
fill and emplacement of excess overburden;
development of underground main roadways and gate roads
for longwall panels;
delivery and assembly of mining equipment; and
installation of underground conveyors.

Coal Handling Infrastructure

surface conveyors;
CPP;
train load-out facility including rail spur and loop; and
ROM and product coal stockpiles.

Site Access and Services

on-site power substation and reticulation infrastructure;


access road from Rossmar Park Road (Doona Ridge) and
Waverley Road (Nicholas Ridge);
partial relocation of Rossmar Park Road;
development of administration offices, bathhouse, workshop
compound, store buildings, bunded fuel tank, laydown areas
and car parking;
construction of water management and mine dewatering
infrastructure, including sumps, pumps, pipelines, water
storages and other water management equipment and
structures; and
installation of ancillary infrastructure (e.g.internal roads,
electrical infrastructure, potable water supply, sewage
treatment, visual screens/bunds and site security).

Construction Activities Specific to Doona Ridge

Doona Ridge would be the initial and main mine infrastructure


area for the Project and, therefore, several construction activities
would be specific to this area, namely:
construction of a 1 Mtpa event CPP for the washing of
occasional highash coal;
development of emplacements for the codisposal of CPP
rejects;
establishment of an infrastructure corridor for the CPP to the
rejects emplacement;
construction of a rail unloading facility for occasional
unloading of Nicholas Ridge coal at Doona Ridge; and
construction of a separate men and materials shaft off 4D
Road.

Ventilation and gas drainage infrastructure on the surface would


be required for the Project. Preliminary engineering studies have
indicated that gas management can be achieved through a
combination of surface and underground (inseam) gas drainage
techniques.

The final location of the ventilation and (if required) gas


drainage infrastructure would be determined through detailed
mine planning, environmental assessment outcomes and
consideration of alternatives.

Ventilation and gas drainage infrastructure would progressively


be constructed over the life of the Project as required.

Waste Rock Management

Waste rock would be excavated during the construction of access


drifts and shafts for the Project. Waste rock would be
preferentially used as a source of construction for infrastructure
items such as hardstand areas, dam embankments and road
embankments.
As part of the Project mine planning and environmental
assessment process, BHP Billiton would determine the volume of
excess waste rock and the location of emplacement areas.

3.5 Underground Mining Operations


Underground Mining Area

The Project would involve mining from a single coal seam


(Hoskissons) on Doona Ridge and Nicholas Ridge using longwall
mining methods for a period of approximately 30 years. The
proposed underground mining layout is shown on Figure 4.

Longwall mining involves extraction of rectangular panels of coal


defined by underground roadways constructed around each
longwall. The longwall mining machine travels back and forth
across the width of the coal face progressively removing coal in
slices from the panel. Once each slice of coal is removed from the
longwall face, the hydraulic roof supports are moved forward,
allowing the roof and a section of the overlying strata to fall
behind the longwall machine (referred to as forming the goaf).
Extraction of coal by longwall mining methods results in the
vertical and horizontal movement of the land surface. The land
surface movements are referred to as subsidence effects.

The layout and design of longwall panels is continually being


refined and developed through an iterative process as part of the
subsidence assessment, environmental assessment and
BHPBillitons mine planning process.
Replacement underground mining equipment would be required
over the life of the Project in order to maintain production
capacity.

Pre-mining gas extraction would generally be facilitated by either


vertical wells directly from the surface to the coal seam or via
underground cross panel drilling and drainage of the gas through
an underground collection system to infrastructure on the
surface.

Project Description and Preliminary Environmental Assessment 11

Caroona Coal Project

3. Project Description and Justification


continued

Post-mining gas extraction would be undertaken by either


vertical wells directly into the goaf to the surface or via
underground drilling methods into the goaf. Underground
techniques include the use of a goaf gas sewer system whereby
a large diameter drill hole is angle drilled from the surface, to
approximately 10 m above the coal seam and connected to gas
infrastructure on the surface. Gas would generally be flared via
flaring facilities located on the surface; however, BHP Billiton
may investigate other options to manage gas.

Other associated infrastructure and activities would include:


personnel and materials access via transport drifts from the
mine infrastructure areas at both Doona Ridge and Nicholas
Ridge;
personnel access via a separate men and materials shaft;
materials handling and transport systems to convey coal from
the longwall machine to the surface;
underground equipment (e.g. longwall mining machine,
continuous miners, conveyors, bins) and mobile fleet (e.g. load
haul dump vehicles, drill rigs, shuttle cars, personnel carriers);
ventilation systems for air intake and to exhaust air from the
mining area;
a gas pipeline to allow the transfer of gas between
infrastructure areas;
gas management systems to monitor and control the
concentrations of gases in the underground mining area;
underground goaf gas drainage via large diameter drill holes
above the longwall panels and gas extraction via a gas sewer
system to gas infrastructure on the surface;
gas drainage infrastructure in areas owned by BHP Billiton or
with the consent of private landholders;
flaring facilities on the surface; and
water management systems to transfer groundwater that
accumulates in underground workings to the surface.
The location of surface infrastructure (where required) would be
agreed through detailed mine planning, environmental
assessment outcomes and consideration of alternatives, and
would be documented in the EIS.

3.6 Product Coal Stockpiling,


Handling and Transport

Doona Ridge and Nicholas Ridge would have separate facilities


for handling ROM coal. ROM coal would be stockpiled prior to
being sized and conveyed to the product coal stockpile.

Washing (or beneficiation) of all of the ROM coal is not required


for the Project given it is generally of a high enough quality to be
exported.
Notwithstanding, an event CPP with a production rate of up to
1 Mtpa is proposed at Doona Ridge which would be operated
during periods where highash coal is produced. Sized ROM coal
processed in the CPP would be conveyed to the Doona Ridge
product coal stockpile.
Product coal would be reclaimed from the product coal stockpile
and conveyed to product coal bins located at both of the rail
loops (i.e. at Doona Ridge and Nicholas Ridge).

Product coal would then be loaded onto trains for transportation


to market.
Some high-ash ROM coal mined at Nicholas Ridge would also be
processed at the Doona Ridge CPP. This would be facilitated by
transportation of highash ROM coal from Nicholas Ridge via
train to a coal unloader at Doona Ridge, where this coal would
be conveyed to the CPP for processing. Washed product coal
would then be processed and transported in the same fashion as
Doona Ridge ROM coal.
Operation of the CPP would produce some coarse and fine
rejects. These rejects may be codisposed in an emplacement on
the western side of Doona Ridge (in the property known as
Doona Vale). Any rejects would be transported to the
emplacement via an infrastructure corridor.

3.7 Water Management Infrastructure


and Services

A site water balance will be developed for the Project. The


Project water management strategy would be developed as part
of the site water balance and would be based on the following:
separation of undisturbed area runoff from disturbed area
runoff;
collection and reuse of surface runoff from disturbed areas;
capture of groundwater inflows and reuse;
storage of water on-site;
licensed water extraction to supplement water supply;
consideration of flood impacts on surface infrastructure; and
treatment and beneficial use or licensed controlled release of
excess water.
Water management infrastructure such as sumps, pumps,
pipelines and water storages would be developed or upgraded/
replaced as required over the Project life. In addition, a pipeline
would be constructed for the transfer of water between the
infrastructure areas.

3.8 Power Supply

A 132 kV electricity transmission line would be constructed from


the Werris Creek substation to the Project. Discussions with the
relevant power authority (Essential Energy) and engineering
studies are ongoing to determine the physical alignment of the
electricity transmission line.
The electricity transmission line would be subject to a separate
approval under Part 5 of the Environmental Planning and
Assessment Act, 1979 (EP&A Act).

Construction and use of substations and power supply


infrastructure for internal power reticulation would be required
for the Project and approval for this infrastructure would be
sought as part of the Project.

3.9 Workforce

The average number of construction employees would be


approximately 400 with up to 600employees at peak
construction.

During operations, a peak workforce of approximately 400


employees would be required.

Project Description and Preliminary Environmental Assessment 12

Caroona Coal Project

3. Project Description and Justification


continued

3.10 Rehabilitation Activities,


Remediation Works and Offsets

Other activities that would be conducted as a component of the


Project include exploration, monitoring, remediation of
subsidence impacts (Plate 2), rehabilitation of surface
disturbance, establishment and management of biodiversity
offsets and development of other associated minor
infrastructure, plant, equipment and activities.

3.11 Consideration of Alternatives and Project


Justification Overview
Project Alternatives

As discussed in Section 1.2, the Project underground mining area


has been positioned underneath the Doona Ridge and Nicholas
Ridge targeted exploration areas to minimise impacts on the
alluvial plains within EL 6505.

Project Justification

The Project would facilitate the creation of employment


opportunities for up to approximately 400 employees during the
operational phase at peak production. Employment of up to
approximately 600personnel would be required for the
construction of the Project. The initial construction phase would
take approximately 3years.

The Project is expected to invest significant capital over 30 years,


to be defined in the EIS. The Project would also result in the
payment of substantial royalties to the State, in addition to other
Federal Government contributions, such as the Mineral
Resources Rent Tax and other payments.
Further analysis of the justification for the Project on social,
environmental and economic grounds will be included in the EIS.

Alternatives to the proposed location, scale and mining methods


have been considered by BHPBilliton in the development of the
Project description. An overview of the alternatives considered is
provided below:

Project Location The location of the Project is determined by


the presence of coal seams able to be economically mined in
the Doona and Nicholas Ridge areas. The Project mine plan is
positioned beneath the Doona and Nicholas Ridge targeted
exploration areas to minimise impacts on the surrounding
agricultural practices. A third ridge, Georges Island, has been
considered for mining; however is not considered to be
economic at the present time.
Surface Facilities The proposed pit top locations were
determined based on distance and depth to the Hoskissons
Seam (i.e.to reduce costs associated with the personnel and
conveyor drifts). The proposed construction of a men and
materials shaft on Doona Ridge was determined on the basis
of providing alternate underground access, and therefore more
efficient commuting of employees to the southern portion of
the longwall panels on Doona Ridge. The location of the men
and materials shaft on Doona Ridge was also sited to minimise
impacts on Biophysical Strategic Agricultural Land (BSAL).
Scale The Project coal yield is estimated at approximately
260 Mt of ROM coal within the Hoskissons Seam. Resource
definition and exploration drilling conducted by BHP Billiton
indicates that this is the optimum scale of the Project.
Mining Method BHP Billiton has considered alternate
methods of mining, however the depth of cover means that the
coal resource is amenable to underground mining methods and
open cut mining is not proposed. Longwall extraction has been
determined to be the most efficient method of mining the coal
resource relative to other underground mining methods (e.g.
bord and pillar mining) and has reduced impacts relative to
open cut mining methods.
Further consideration of alternatives to location, scale, methods
and management would be undertaken as a component of
comprehensive assessment undertaken for the EIS.

Plate 2. Example of Subsidence Remediation

Project Description and Preliminary Environmental Assessment 13

Caroona Coal Project

4. Planning Considerations
4.1 Applicability of Division 4.1 of Part 4 of
Environmental Planning and Assessment
Act, 1979

Approval for the Project will be sought under the State


Significant Development provisions (Division4.1) under Part4 of
the EP&A Act. The EP&A Act and EP&A Regulation set the
framework for planning and environmental assessment in NSW.
Clause 8 of the State and Regional Development SEPP provides:

(1) Development is declared to be State significant development


for the purposes of the Act if:

(a) the development on the land concerned is, by the


operation of an environmental planning instrument, not
permissible without development consent under Part 4 of
the Act, and
(b) the development is specified in Schedule 1 or2.

As discussed in Section 4.4, the Project constitutes development


which is not permissible without development consent under
Part 4 of the EP&A Act.
Clause 5 of Schedule 1 of the State and Regional Development
SEPP provides:
5 Mining

(1) Development for the purpose of mining that:


(a) is coal or mineral sands mining

is State Significant Development for the purposes of the EP&A


Act.
The Project represents development for the purpose of coal
mining (Section3.2).

In view of the foregoing, it is clear that the Project constitutes


development to which Division 4.1 of Part4 applies.

Development Consent will thus be sought from the NSW Minister


for Planning and Infrastructure.

4.2 Planning Provisions

State Environmental Planning Policies

The following SEPPs may potentially be relevant to the Project:

Mining SEPP;
State Environmental Planning Policy No. 33
Hazardous and Offensive Development (SEPP33);
State Environmental Planning Policy No. 44
Koala Habitat Protection; and
State Environmental Planning Policy No. 55
Remediation of Land.

Relevant provisions and objectives of the above SEPPs would be


considered in the preparation of the EIS.

Local Environmental Plans

The provisional Development Application Area is within the


Gunnedah LGA and the Liverpool Plains LGA (Figure1), which is
covered by the Gunnedah LEP and the Liverpool Plains LEP.

The Gunnedah LEP and Liverpool Plains LEP are discussed further
in Section4.4.

Mining Act, 1992

BHP Billiton will lodge Mining Lease Applications separately with


DTIRIS-DRE for the Project.

Under the NSW Mining Act, 1992, environmental protection and


rehabilitation are regulated by conditions included in all mining
leases, including requirements for the submission of a Mining
Operations Plan prior to the commencement of operations, and
subsequent Annual Environmental Management Reports.

Under section89K(1)(c) of the EP&A Act, if the Project is


approved as State Significant Development, mining leases
granted under the Mining Act, 1992 cannot be refused and are to
be substantially consistent with any Development Consent
granted under Division4.1 of Part4 of the EP&A Act.
Condition 59 of EL6505 states:

Any development approval sought by the licence holder


within the initial term of the licence or during any extensions
or renewals of the licence, shall not include any of the
following activities in the area covered by EL 6505:
Long wall mining underneath the deep alluvial irrigation
aquifers
Long wall mining underneath the floodplain
Open cut mining anywhere on the floodplain.
Accordingly, BHPBilliton will consider Condition 59 in the EIS,
which will accompany the Development Application for the
Project.

Protection of the Environment Operations Act, 1997

The NSW Protection of the Environment Operations Act, 1997


(PoEO Act) and the NSW Protection of the Environment
Operations (General) Regulation, 2009 set out the general
obligations for environmental protection for development in
NSW.

Under section89K(1)(e) of the EP&A Act, if the Project is


approved as a State Significant Development, an Environment
Protection Licence under the PoEO Act cannot be refused and is
to be substantially consistent with any Development Consent
granted under Division4.1 of Part4 of the EP&AAct.

Mine Subsidence Compensation Act, 1961

Under the Mine Subsidence Compensation Act, 1961, the Mine


Subsidence Board (MSB) is established, which is a service
organisation operating for the community in coal mining areas of
NSW and is responsible for administering the Mine Subsidence
Compensation Act, 1961.
Under section 10 of the Mine Subsidence Compensation Act,
1961, a Mine Subsidence Compensation Fund has been
established into which colliery holders are required to make
annual payments. From this fund the Mine Subsidence
Compensation Act, 1961 provides for compensation or repair
services where property improvements are damaged by mine
subsidence resulting from the underground extraction of coal.

BHP Billiton would make contributions to the Mine Subsidence


Compensation Fund and would conduct consultation with the
MSB in regard to Project subsidence impacts on property
improvements.

Roads Act, 1993

If the Project is approved, BHP Billiton would apply for the


necessary consents under section138 of the NSW Roads Act,
1993 associated with mining under any public road and for the
realignment of Rossmar Park Road.
Project Description and Preliminary Environmental Assessment 14

Caroona Coal Project

4. Planning Considerations
continued

Under section89K(1)(f) of the EP&A Act, if the Project is


approved as a State Significant Development, consent under
section138 of the Roads Act, 1993 cannot be refused and is to
be substantially consistent with any Development Consent
granted under Division 4.1 of Part4 of the EP&A Act.

Commonwealth Environment Protection and


Biodiversity Conservation Act, 1999

The Project is being referred to the Commonwealth Minister for


the Environment for consideration as to whether the Project is a
Controlled Action and requires approval under the EPBC Act.

Commonwealth Native Title Act, 1993

The Commonwealth Native Title Act, 1993 (CNTA) provides for


the recognition and protection of native title rights in Australia.
The CNTA provides a mechanism to determine whether native
title exists and what the rights and interests are that comprise
this. The process is designed to ensure indigenous people who
profess an interest in the land (or any part thereof) have the
opportunity to express this interest formally, and to negotiate
with the Government and the applicant about the proposed
grant or renewal, or consent to access native title land.
The NSW Mining Act, 1992 must be administered in accordance
with the CNTA. The primary effect of the CNTA on exploration
and mining approvals is to provide native title parties with a
Rights to Negotiate about the grant and some renewals by
governments of exploration and mining titles.

The CNTA, where applicable, would be complied with in relation


to the granting of any necessary mining tenements for the
Project.

4.3 Planning Strategies

The following strategic planning documents would be considered


in the planning of the Project and the preparation of the EIS:
New England North West Strategic Regional Land Use Plan
(NSW Government, 2012);
Namoi Catchment Action Plan 2010-2020 (Namoi Catchment
Management Authority, 2013);
Gunnedah Community Strategic Plan 2012-2022 (Gunnedah
Shire Council, 2012); and
Namoi Catchment Management Authority Extractive Industries
Policy (Namoi Catchment Management Authority, 2012).

4.4 Permissibility of the Project

Section 89E of the EP&A Act provides that development consent


may not be granted under Division4.1 of Part4 if the
development is wholly prohibited by an environmental planning
instrument, but may be granted despite the development being
partly prohibited by an environmental planning instrument.
The provisional Development Application Area includes land
zoned under the Gunnedah LEP as:
ZoneRU1 (Primary Production); and
Zone RU3 (Forestry).
The provisional Development Application Area includes land
zones under the Liverpool Plains LEP as:
Zone RU1 (Primary Production);
Zone RU5 (Village); and
Zone SP1 (Special Activities).

Under Part 2 of the Gunnedah LEP and Liverpool Plains LEP


(Permitted or Prohibited Development), underground mining is
not listed as permissible, with or without consent, on lands
within Zone RU1 (Primary Production), Zone RU3 (Forestry),
ZoneRU5 (Village), and Zone SP1 (Special Activities).
Underground mining is therefore prohibited under the Gunnedah
LEP and Liverpool Plains LEP in these zones (subject to the
application of the Mining SEPP as discussed below).
Clause 4 of the Mining SEPP relevantly provides:
4 Land to which Policy applies
This Policy applies to the State.

Clause 5(3) of the Mining SEPP gives it primacy where there is


any inconsistency between the provisions in the Mining SEPP and
the provisions in any other environmental planning instrument
(subject to limited exceptions).
The practical effect of clause 5(3) for the Project is that if there is
any inconsistency between the provisions of the Mining SEPP
and those contained in the Gunnedah LEP and Liverpool Plains
LEP, the provisions of the Mining SEPP will prevail.

Clauses 6 and 7 of the Mining SEPP provide what types of mining


development are permissible without development consent and
what types are permissible only with development consent.
In this regard, clause 7(1) states:

7 Development permissible with consent

(1) Mining
Development for any of the following purposes may be carried
out only with development consent:
(a) underground mining carried out on any land,

(d) facilities for the processing or transportation of minerals or


mineral bearing ores on land on which mining may be carried
out (with or without development consent), but only if they
were mined from that land or adjoining land,
The term underground mining in the Mining SEPP is given an
extended definition in clause3(2) as follows:
underground mining means:

(a) mining carried out beneath the earths surface, including


bord and pillar mining, longwall mining, top-level caving,
sub-level caving and auger mining, and

(b) shafts, drill holes, gas and water drainage works, surface
rehabilitation works and access pits associated with that
mining (whether carried out on or beneath the earths
surface),
but does not include open cut mining.

The effect of clause 7(1)(a), in conjunction with the operation of


clause 5(3) of the Mining SEPP, is that notwithstanding any
prohibition in the Gunnedah LEP and Liverpool Plains LEP,
development for the purpose of underground mining may be
carried out with development consent.
Accordingly, the Minister would not be precluded from granting
approval under section89E of the EP&A Act for the Project in
respect of those parts of the Project land where mining is
prohibited under the Gunnedah LEP and Liverpool Plains LEP.

Project Description and Preliminary Environmental Assessment 15

Caroona Coal Project

5. Preliminary Environmental Assessment


5.1 Overview

The following preliminary environmental assessment has been


prepared to identify the key potential environmental issues
associated with the construction and operation of the Project.
This information has been prepared to assist the DP&I with
issuing the DGRs for the Project under clause 3 of Schedule 2 of
the EP&A Regulation.
This preliminary environmental assessment has drawn on:
understanding of the local and regional context (Section2)
and the Project (Section3);
feedback from stakeholder consultation undertaken to date;
baseline environmental data collected to date;
preliminary environmental assessments undertaken for the
Gateway Application;
experience from previous environmental management and
approvals processes throughout NSW; and
a preliminary risk assessment.
Baseline environmental monitoring has been conducted at the
Project since its inception. Regular monitoring has included
(Figure 5):
meteorological;
surface water;
groundwater; and
air quality.

The baseline monitoring data will be used to inform EIS studies


and will be reported in the EIS.

The preliminary environmental assessment involved the


following steps:
1. Identification of Potential Issues. Consideration of how the
Project is likely to affect the physical or biological aspects of
the environment; natural or community resources;
environmentally sensitive areas; areas allocated for
conservation purposes; and areas sensitive because of
community factors.

2. Identification of Key Potential Environmental Issues.


Based on the results of the preliminary risk assessment, what
are the priority issues, considering the extent of the potential
impacts; the nature of the potential impacts; and the
potential impacts on environmentally sensitive areas.
3. Preliminary Consideration of the Study Requirements.
Each of the key environmental issues identified above were
considered with respect to the level and scope of assessment
that would be required for the EIS. Preliminary strategies to
address the key impacts were also identified.
The key environmental issues identified by the preliminary risk
assessment are provided in Table2 with a preliminary list of
study requirements to address these issues. Recognised
specialists will be commissioned to conduct the studies outlined
in Table2, and Peer Reviews will be conducted of key studies.

5.2 Level and Scope of Assessment

In addition to consideration of the key potential environmental


issues (Table2), the following studies would be undertaken as a
component of theEIS to address other potential impacts:
visual assessment;
geochemistry assessment;
land contamination assessment;
rehabilitation strategy; and
preliminary hazard analysis in accordance with SEPP33.

Assessment of the key potential environmental issues (Table2)


and the other potential impacts identified above would include
consideration of:
existing environment using sufficient baseline data;
potential impacts of all stages of the Project including any
cumulative impacts;
measures that could be implemented to avoid, mitigate,
rehabilitate/remediate, monitor and/or offset the potential
impacts of the Project; and
contingency plans and/or adaptive management for managing
any potentially significant residual risks to the environment.
Preliminary strategies to address each of the key environmental
issues are presented in Table 2. These strategies would be
developed and refined through the assessment process. Detail
on the proposed measures would be presented in the EIS.

All assessments of potential impacts would consider all


applicable policies, guidelines and plans included in
contemporary DGRs for major mining projects. Therefore, these
policies, guidelines and plans have not been repeated within this
document.

5.3 Gateway Application Assessments

A number of preliminary assessments including subsidence,


groundwater and agricultural resource assessments have been
conducted as part of an Agricultural Impact Assessment to
accompany the application for a Gateway Certificate. Initial
findings from these studies are summarised below.

Preliminary Subsidence Assessment

The proposed longwall layout has been developed and refined


through an iterative process using predicted subsidence effects
and consequences for various mining layouts. Subsidence effects
have been reduced in particular locations above the proposed
longwalls through the development of Subsidence Control Zones,
which will be reviewed and revised in the EIS.
Subsidence modelling for the proposed longwall layout indicates
surface cracking and deformations will vary depending on the
depth of cover across the Project underground mining area
(MSEC, 2014).
Surface remediation measures can be conducted to re-establish
natural grades along drainage lines to reduce the potential for
increased ponding and to remediate surface cracking following
the completion of longwall panels in each mining area
(MSEC, 2014).

Project Description and Preliminary Environmental Assessment 16

300

6530000

350

6520000

450

!
(

k
Cree

400

0
Source: Land and Property Management Authority - Topograpraphic
Base 2010 and
40
Orthophoto (Curlewis 2011 & Tamworth 2010)

+ C23
U

K RAI
LW AY

+
U

C243

35
0

35
0

C168a

!
( SW14
+ C17
U

LEGEND
50
Exploration Licence (EL46505)
Targeted Exploration
Area
50

0
35

#
*

50

+
U

C282a

+ C76
U

DDG05 #
*

NOW Gauging Station

#
* Air Quality
+ Groundwater
U

DDG09

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*

300

+
U

+C285
U

C102

300

+ GW030380
U

+
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!
( SW03
GW030078

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(

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VE
R

SW11

Meteorological Station

+
U

300

C78a

C153a U
+

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C11 U
+

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Bundella

Coonab
ara

400

+ C162
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Nicholas Ridge

#
*

GW030083

+
U

!
(

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Waverley Road

Quirindi Creek at Greenacres

C50

!
( U
+

C89a SW15 C265

+
U

+ GW030012
U

!
( Surface Water

!
( SW01

+ GW030010
U
+ C199
U

Mooki River at Caroona


!
( SW02
Caroona

DDG04 and HVAS


(TSP, PM10 & TEOM)

+ C37
U
#
* DDG06

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35

+
U

#
*DDG03 +
U50

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#
* DDG02
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C188-1

Doona State Forest


C182-2 U
+C182-2
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SW08

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WERRIS
CREE

+
U

400

!
(

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35

Kilometres

BINNAW
AY

+ GW965576 !
U
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*DDG08
C151 U
+#

+
U

C180a

C119a

40
0

40

Yarraman Creek

#
* DDG01

350

+ C137
U
SW06
30!
(
0

ad

Project Description and Preliminary Environmental Assessment 17

HVE-13-02_PEA_206C

Mystery

Road

Mooki River at Breeza

a Ro

SW07

350

35
0

+ C113
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450

0
40

400

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ris

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+

oa d

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C O A L
Environmental Monitoring Sites

FIGURE 5

35

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+
U

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oad
Gap R

6530000

350

EL 6505

250000

300

30

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*

400

rin
ewa
Willi

35

300

400

300

400

0
35

450

n
300

Waverley Road

450
45

!
(

P R O J E C T

!
(

SW16

6520000

SW12

450
400

450

300
0
35

260000

ama
Yarr

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*

300

#
*

250000
300

400

300

350

#
*

#
*

I
OK
MO
300

Y
HWA
40
0

260000

I HIG
400 400

LARO
KAMI

300

450
350

350

450

400

400

Potential subsidence related


impacts on agricultural land
(e.g.minor soil cracking and
changes in drainage).
Temporary removal of land from
agricultural production as a
result of land used for surface
infrastructure during the Project
life.

Impacts on agricultural
land resources.

Groundwater monitoring network.


Development and implementation of Extraction Plans to mitigate,
monitor and manage potential impacts on groundwater resources.
Mitigation (e.g. bore re-conditioning), compensation (e.g.
alternative water supply) or other contingency measures in the
event that groundwater users are adversely affected by the
Project.
Appropriate licensing in accordance with the legislative
requirements of the Water Management Act, 2000.
Consideration of environmental assessment outcomes during
detailed mine planning (including the location of any BSAL).
Development and implementation of Extraction Plans to mitigate,
monitor and manage potential impacts on agricultural land in
consultation with overlying landholders.
Remediation of subsidence related impacts on agricultural land,
for example surface crack repair works and repairs to fencing.
Incorporation of agricultural land in rehabilitation strategy.
Identification of strategies to maintain agricultural production of
overlying land.

Consideration of any conditions of the Gateway Certificate.


Groundwater assessment, including numerical modelling of
potential impacts on groundwater users and baseflow
contributions to local watercourses, and consideration of the
Aquifer Interference Policy.
Investigation of measures to avoid, mitigate, monitor and/or offset
the potential impacts of the Project.
Expert Peer Review of the assessment.

Consideration of any conditions of the Gateway Certificate.


Assessment of the agricultural resources and agricultural
production of the Project area, based on a site specific soil
analysis, identification of current agricultural enterprises and
consultation with local landholders.
Risk-based assessment of potential impacts on agricultural
resources and industries.
Incorporation of the results of other specialist studies, including
the socio-economic assessment and groundwater assessment.
Investigation of measures to avoid, mitigate, monitor and/or
remediate potential impacts of the Project.

Potential impacts of
surface water flow and
flood regimes in the
Mooki River as a result
of the rail spur.

Potential impacts on surface


water flow and flood regimes.

Detailed flood impact assessment, including hydrologic modelling, Investigation of design opportunities to minimise impacts on local
and regional flood regimes (i.e. consideration of flood impacts
which identifies impacts on local and regional flood regimes,
during design of infrastructure).
including consideration of flood levels and extent and flow
velocities and distribution.
Investigation of measures to avoid, mitigate, monitor and/or offset
the potential impacts of the Project.
Expert Peer Review of the assessment.

Investigation of opportunities for re-use or beneficial use of excess


site water.
Water management strategy for the Project based on regular
reviews of the site water balance.
Erosion and sediment control during construction and operation.
Surface water monitoring network.
Development and implementation of Extraction Plans to mitigate,
monitor and manage potential impacts on surface water resources.
Appropriate control/remediation measures along drainage lines.
Appropriate licensing in accordance with the legislative
requirements of the Water Management Act, 2000.

Preliminary Strategies to Address Potential Impacts*

Proposed Level and Scope of Environmental Assessment

Potential impacts on hydrology Detailed site water balance for the Project incorporating all sources
Impacts on surface
of water inflow to demonstrate sufficient water for mine
and surface drainage regimes,
water resources as a
operations.
result of subsidence and including localised effects on
site water management. water quality and/or persistence Development of a water management strategy for the life of the
of low flows.
Project and assessment of potential impacts.
Potential impacts on ephemeral Assessment of potential subsidence effects on streams and
drainage lines including
potential for subsidence induced impacts.
potential cracking, change in
Groundwater assessment, including numerical modelling of
alignment and/or acceleration
potential impacts on groundwater users and baseflow
of erosion processes.
contributions to local watercourses.
Surface water assessment of potential impacts of predicted
subsidence effects and changes in baseflow contribution.
Investigation of measures to avoid, mitigate, monitor and/or offset
the potential impacts of the Project.
Expert Peer Review of the assessment.

Potential depressurisation of
Impacts on
coal seam aquifers as a result of
groundwater resources.
dewatering of the coal seam to
facilitate underground mining
leading to potential effects on
overlying groundwater system.
Potential impacts on other
groundwater users in the
vicinity of the Project and
potential reduction in baseflow
contributions to local
watercourses.

Likely Extent and Nature of


Potential Impacts

Key Potential
Environmental Issue

Table 2. Key Potential Environmental Issues, Required Level and Scope of Environmental Assessment and Preliminary Strategies to Address Potential Impacts.

Caroona Coal Project

5. Preliminary Environmental Assessment


continued

Project Description and Preliminary Environmental Assessment 18

Impacts on ecology as a Potential impacts of vegetation Comprehensive flora and fauna surveys of the disturbance area in
accordance with relevant survey guidelines.
disturbance associated with the
result of vegetation
Project including potential
disturbance.
Assessment of potential impacts on any terrestrial and aquatic
disturbance of threatened flora
species, populations, ecological communities or their habitats.
species and potential loss of
Assessment
of alternative locations of surface infrastructure in
fauna habitat.
consideration of potential impacts on ecology.
Identification of measures that would be implemented to maintain
or improve the biodiversity values of the surrounding region in the
medium to long-term.

Identification and characterisation of existing built features.


Potential impacts on built
features and private residences Subsidence assessment of potential subsidence effects on built
as a result of subsidence effects
features.
(e.g. tilts and strains).
Proactive engagement with relevant infrastructure owners and
residents.
Consideration of panel layout, panel width and pillar width,
including mine economics and environmental aspects.
Development of management measures to maintain safety and
(wherever practical) serviceability, and to fully repair or fully
compensate any loss of serviceability or damage.
Investigation of measures to avoid, mitigate, remediate and/or
monitor the potential impacts of the Project.

Consideration of environmental assessment outcomes during


detailed mine planning (including minimisation of vegetation
disturbance, particularly disturbance of areas with higher
ecological value).
Surface disturbance protocols (including timing of land clearance,
pre-clearance surveys and salvage of habitat features).
Weed and feral animal control measures.
Rehabilitation strategy for the Project.
Offset and compensatory measures to maintain or improve the
biodiversity values of the surrounding region in the medium to
long-term.

Consideration of environmental assessment outcomes during


detailed mine planning (including potential impacts to built
features and private residences).
Development of subsidence performance measures for built
features and private residences.
Adaptive management approach to achieve subsidence
performance measures.
Development and implementation of Extraction Plans to mitigate,
monitor and manage potential impacts on built features and
private residences in consultation with the relevant owner(s).
Appropriate pre-mining mitigation measures to minimise impacts,
where appropriate.
Remedial measures for subsidence impacts, including a
commitment to mitigate, repair, replace or compensate any
impacts in a timely manner.

Consideration of environmental assessment outcomes during


detailed mine planning (e.g. locations of Aboriginal and
non-Aboriginal heritage sites).
Involvement of Aboriginal stakeholders during the assessment and
operational phase.
Surface disturbance protocols (including salvage or demarcation of
sites where applicable).
Development of subsidence performance measures for any
significant heritage sites.
Adaptive management approach to achieve subsidence
performance measures.
Development and implementation of Extraction Plans to mitigate,
monitor and manage potential impacts on Aboriginal and
non-Aboriginal heritage.

Subsidence assessment of potential subsidence effects on items of


Aboriginal and non-Aboriginal heritage.
Assessment of impacts on items of Aboriginal heritage and
Aboriginal cultural values in accordance with NSW Department of
Environment, Climate Change and Water (DECCW) (2010) and NSW
Department of Environment and Conservation (2005).
Assessment of impacts on items of non-Aboriginal heritage,
including a Statement of Heritage Impact, in accordance with
relevant Heritage Branch guidelines.
Investigation of measures to avoid, mitigate, remediate, monitor
and/or offset the potential impacts of the Project.

Subsidence related
impacts on key built
infrastructure and
residences.

Preliminary Strategies to Address Potential Impacts*

CONTINUED

Proposed Level and Scope of Environmental Assessment

Potential subsidence related


impacts on items of Aboriginal
heritage or Aboriginal cultural
values.
Potential subsidence related
impacts on items of
non-Aboriginal heritage.
Direct impacts on items of
Aboriginal heritage or
Aboriginal cultural values as a
result of surface disturbance.

Likely Extent and Nature of


Potential Impacts

Impacts on heritage as
a result of subsidence
and direct disturbance.

Key Potential
Environmental Issue

Table 2. Key Potential Environmental Issues, Required Level and Scope of Environmental Assessment and Preliminary Strategies to Address Potential Impacts.

Caroona Coal Project

5. Preliminary Environmental Assessment


continued

Project Description and Preliminary Environmental Assessment 19

Potential road movement


impacts associated with
employees, contractor access
and deliveries.

Likely Extent and Nature of


Potential Impacts

Preliminary Strategies to Address Potential Impacts*


Design of mine access roads and intersections to appropriate
standards to minimise potential impacts to other road users.
Development of strategies to minimise road movements during
sensitive times (e.g. restricted heavy vehicle deliveries, avoiding
school bus times where practicable etc.).

Proposed Level and Scope of Environmental Assessment


Road transport assessment of potential cumulative impacts on the
safety and performance of the road network.
Identification of potential road improvements and management
required.

CONTINUED

Socio-economic assessment of potential impacts on the regional


Employment of up to
and NSW community and economy, including potential impacts on
approximately 400personnel
community infrastructure (including housing) and a cost-benefit
during peak production and up
analysis.
to 600 personnel during
construction, including flow-on Project justification, including consideration of alternatives,
effects to the regional and NSW
principles of ecologically sustainable development and the objects
economy.
of the EP&A Act.
Ongoing payment of royalties to
the State and other tax
payments.

Modelling and assessment of potential air quality impacts as a


Potential air quality impacts
result of Project activities.
resulting from Project activities.
Assessment of potential cumulative impacts resulting from the
Potential greenhouse gas
Project and nearby developments and mines.
emissions resulting from the
combustion of diesel fuel and
Assessment of greenhouse gas emissions
fugitive emissions from
(including scope1, 2 and 3 emissions).
underground mining.
Investigation of measures to avoid, mitigate and/or monitor the
potential impacts of the Project.
Consideration of air quality effects on agricultural productivity.

* To be refined during detailed impact assessments.

Costs and benefits to


the regional and NSW
economy.

Air quality impacts on


the surrounding
community.

Strategies to increase local employment and support of local


businesses.
Continued operation of the BHPBilliton Caroona Coal Project
Community Fund to benefit community members of the Gunnedah
and Liverpool Plains Shires.

Best practice mitigation measures to minimise dust generation


during construction and operation.
Air quality monitoring network.
Best practice energy efficiency measures.
Negotiated agreements with landowners where required.

Modelling and assessment of potential noise impacts as a result of Reasonable and feasible mitigation measures on-site to minimise
Potential noise impacts
Noise impacts on the
noise generation during construction and operation.
mining operations, including road and rail traffic.
surrounding community. resulting from Project related
mining activities as well as road Assessment of potential cumulative impacts resulting from the
Noise monitoring network.
and rail movements.
Project and nearby developments and mines.
Acoustical mitigation at receivers where required (which may
include measures such as enhanced glazing, insulation and/or
Investigation of measures to avoid, mitigate and/or monitor the
air-conditioning), in consultation with the relevant landowner.
potential impacts of the Project.
Negotiated agreements with landowners where required.

Road transport related


impacts on the local
road network.

Key Potential
Environmental Issue

Table 2. Key Potential Environmental Issues, Required Level and Scope of Environmental Assessment and Preliminary Strategies to Address Potential Impacts.

Caroona Coal Project

5. Preliminary Environmental Assessment


continued

Project Description and Preliminary Environmental Assessment 20

Caroona Coal Project

5. Preliminary Environmental Assessment


continued

Negligible subsidence impacts are predicted to occur at the


Mooki River, Quirindi Creek, Werris Creek and Yarraman Creek
due to the distances they are located from the proposed
longwalls (MSEC, 2014).

Subsidence impacts to agricultural land include surface cracking


and changes to surface water drainage. Remediation measures
can be implemented to manage impacts to agricultural land
(including cracking and ponding impacts) (MSEC,2014).
Assessment of potential subsidence impacts to other built
features including houses, rural building structures, irrigation
and water storage infrastructure, local roads, gas pipelines, etc.
would be undertaken during the EIS stage and management
strategies would be developed in consultation with the
infrastructure owners.

Preliminary Groundwater Assessment

A preliminary groundwater assessment has been conducted to


consider the potential impacts to highly productive and less
productive groundwater resources associated with the Project.

The assessment is based on a hydrogeological model developed


by HydroSimulations (DrNoelMerrick).

The assessment concluded that the Project meets the Level 1


Minimal Impact Considerations of the Aquifer Interference Policy
(NSW Office of Water [NoW], 2012) (AI Policy) for highly
productive groundwater associated with the Namoi/Mooki
Alluvium and the Liverpool Range Basalts
(HydroSimulations, 2014).

The Project triggers the Level 2 Minimal Impact Considerations of


the AI Policy for the highly productive Jurassic (Spring Ridge)
porous rock aquifer, and the less productive water source
comprising the Permo-Triassic porous rock unit. This is due to the
potential for greater than 2 m predicted cumulative drawdown
at some water supply works, such as water bores
(HydroSimulations, 2014). BHP Billiton has committed to make
good any impacts on these privately-owned bores and will
continue to investigate these impacts through the conduct of a
census of these bores and refinement of groundwater modelling
prior to the EIS.

Agricultural Resource Assessment

A soil survey program was completed by McKenzie Soil


Management (DrDavid McKenzie) during 2013 which included
survey and sampling of 404 soil test pits across the Project area
(Plate 3). Based on the soil survey, McKenzie Soil Management
conducted an assessment of the BSAL status across the surveyed
area in accordance with the Interim Protocol for Site Verification
and Mapping of Biophysical Agricultural Land (NSW
Government, 2013).

6. Stakeholder Consultation
6.1 Consultation Undertaken to Date

Consultation undertaken to date in relation to the Project has


included:
ongoing consultation with local landholders regarding the
Project and access for exploration and environmental baseline
studies;
ongoing consultation with the Community Consultative
Committee (CCC) since 2006 (these meetings include an open
invitation to the community for briefings regarding the Project);
ongoing consultation with representatives of the DTIRIS-DRE
regarding exploration activities in EL6505;
introductory briefing with the Office of Environment and
Heritage (OEH) on 7November 2013;
an inter-agency workshop on 5 December 2013, including
representatives of NoW, Commonwealth Department of the
Environment (DotE), OEH, DTIRIS-DRE and DP&I;
conceptual Project Development Plan meeting with
representatives of the DTIRIS-DRE on 9December 2013;
ongoing consultation with the DP&I regarding the status of
environmental baseline studies and the lodgement of this
request for DGRs;
participation in a pilot Working Group run by the DTIRIS-DRE
and FPC Water Solutions and facilitated by the Land and Water
Commissioner, MrJockLaurie, regarding the Gateway process;
conduct by La Tierra Pty Limited of a number of interviews with
local agricultural producers to inform the Agricultural Impact
Assessment;
presentation to the Caroona Coal Action Group Annual General
Meeting on 8 August 2013 on the Gateway Application process
and the status of the associated environmental studies;
soil sampling field day on 19 September 2013 to demonstrate
the soil sampling methodology and provide the community the
opportunity to discuss the methodology with the specialist
consultants undertaking the Agricultural Impact Assessment
and the Agricultural Resource Assessment (Plate 4);
consultation with the Liverpool Plains, Gunnedah and Tamworth
Regional Councils to discuss the development of the Project and
environmental studies, development contributions, social
impact assessment and the timing of the EIS and Gateway
Application processes;

Parts of Doona Ridge and Nicholas Ridge have slopes greater


than 10 percent and therefore cannot be considered as BSAL.
The majority of the soil test pit sites did not meet the criteria for
BSAL, with salinity and alkalinity in the subsoil being the main
limiting factors (McKenzie Soil Management, 2014).

Three soil landscape units in the southern portion of Doona


Ridge had dominant soil types with BSAL characteristics. Smaller
areas of land with BSAL characteristics comprising greater than
20 ha are also located across other parts of the Project area.

Plate 3. Soil Investigation


Project Description and Preliminary Environmental Assessment 21

Caroona Coal Project

6. Stakeholder Consultation
continued

consultation with NoW regarding the methodology of the


Groundwater Assessment for the Gateway Application in
November 2013; and
involvement in the Namoi Catchment Water Study with DTIRIS.

BHP Billiton is committed to contributing to the local community


and has provided donations or sponsorship payments or
commitments in excess of $4.4M, including:
education and training through university scholarships, a high
school trade centre and a career engagement program;
health through donations to the Gunnedah Rural Health Centre
and the Quirindi Health Centre;
community development including the Quirindi pathway and
cycleway, Quirindi Theatre and the Breeza Hall; and
indigenous development, sport and the environment including
NAIDOC celebrations, the Walhallow playgym, sporting clubs
and the Gunnedah Koala Management Plan.

6.2 Stakeholder Engagement Programme

A stakeholder engagement programme has been developed for


the Project. Key objectives of this programme are to:
inform government and public stakeholders about the progress
and nature of the Project;
recognise and respond to local interest or concerns regarding
the Project; and
continue the ongoing dialogue between local landholders and
BHP Billiton.

The consultation would include, but not necessarily be limited to,


the following government agencies and authorities:
DP&I;
OEH (including the Heritage Branch);
NSW Environment Protection Authority;
DTIRIS (including the DRE);
DPI (including the NoW and AgricultureNSW);
NSW Roads and Maritime Service;
NSW Treasury;
MSB;
Gunnedah Shire Council;
Liverpool Plains Shire Council;
Tamworth Shire Council; and
DotE.
Consultation with the Australian Rail Track Corporation and coal
chain operators would be undertaken to discuss potential rail
movements. Consultation would also be conducted with
Newcastle Coal Infrastructure Group at the Port of Newcastle.

Consultation with the Aboriginal community would be conducted


with the requirements of the Aboriginal Cultural Heritage
Consultation Requirements for Proponents 2010 (DECCW,2010)
and the Interim Community Consultation Requirements for
Applicants (Department of Environment and Conservation,
2004).

The issues raised and outcomes of the stakeholder engagement


programme would be reported in the EIS.

The EIS consultation programme would include the use of a


variety of consultation mechanisms which in summary include
current and future actions such as:
public availability of key documents (e.g. the request for DGRs
and the EIS);
provision of Project information on the BHPBilliton website
(www.bhpbilliton.com) and Caroona CCC website
(www.caroonacoalccc.com.au);
ongoing consultation with the local community and
landowners, including the CCC;
meetings with the general community including Aboriginal
groups and directly affected landowners;
meetings with relevant government agencies; and
community information brochures and community information
sessions.

Plate 4. Soil Sampling Field Day

Project Description and Preliminary Environmental Assessment 22

Caroona Coal Project

7. References
BHP Billiton (2006a) Exploration Environmental Management
Plan for the Caroona Project EL 6505, July 2006.
BHP Billiton (2006b) Review of Environmental Factors for
Exploration Borehole C44
Caroona Exploration Area.
BHP Billiton (2007) Review of Environmental Factors for Caroona
Exploration Program Reconnaissance Drilling and Associated
Activities 2007 to 2011, September 2007.
BHP Billiton (2009) Review of Environmental Factors for Caroona
Exploration Program Exploration Drilling and Associated
Activities 2009 to 2011, March 2009.
BHP Billiton (2010a) Review of Environmental Factors for
Caroona Exploration Program
EL6505 3D Seismic Survey 2010, October2010.
BHP Billiton (2010b) Review of Environmental Factors for
Caroona Exploration Program
EL6505 3D Seismic Survey 2010 Addendum, December 2010.
BHP Billiton (2011a) Review of Environmental Factors for
Caroona Exploration Program
Large Diameter Boreholes 2011, April 2011.
BHP Billiton (2011b) Caroona Exploration Program REF for
Large Diameter Boreholes 2011, June 2011 Classification of
Issues. Addendum to the original REF dated April 2011.
Department of Environment and Conservation (2004) Interim
Community Consultation Requirements for Applicants.
Department of Environment and Conservation, (2005) Draft
Guidelines for Aboriginal Cultural Heritage Impact Assessment
and Community Consultation.
Department of Environment, Climate Change and Water (2010)
Aboriginal Cultural Heritage Consultation Requirements for
Proponents 2010.
Department of Trade, Investment, Regional Infrastructure and
Services, Division of Resources and Energy (2014) Gunnedah
Basin Geological overview.
Website: http://www.resources.nsw.gov.au/ geological/overview/
regional/sedimentary-basins/gunnedah.
Accessed: 9 January 2014.
Gunnedah Shire Council (2012) Gunnedah Community Strategic
Plan 2012-2022.
HydroSimulations (2014) Caroona Coal Project Gateway
Application Preliminary Groundwater Assessment.
La Tierra (2014) Caroona Coal Project Gateway Application
Agricultural Impact Assessment.
McKenzie Soil Management (2014) Agricultural Resource
Assessment for Gateway Application: Caroona Coal Project.
Mine Subsidence Engineering Consultants (2014) Caroona Coal
Project Gateway Application Subsidence Assessment.
Namoi Catchment Management Authority (2012) Namoi
Catchment Management Authority Extractive Industries Policy.
Namoi Catchment Management Authority (2013) Namoi
Catchment Action Plan 2010-2020.
NSW Government (2012) New England North West Strategic
Regional Land Use Plan. Released September 2012.
NSW Government (2013) Interim Protocol for Site Verification
and Mapping of Biophysical Agricultural Land.
NSW Office of Water (2012) NSW Aquifer Interference Policy.
Project Description and Preliminary Environmental Assessment 23

Caroona Coal Project

Attachment A Preliminary Schedule of Lands

Tenure Type
Freehold
Freehold

Department of Lands (Crown)


Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold

Department of Lands (Crown)


Department of Lands (Crown)
Department of Lands (Crown)
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold

Lot Number
14

15

7005
16
1
5
6
7
8
9

10
11

12
13

14
1
2
1
2
3

859
1
1
2
1
2
3
4
5
8
9
1
1
2
3
3
4
5
1
2
2
1
1

Deposited
Plan
Number

Tenure Type

Lot Number

Deposited
Plan
Number

44196

Freehold

356063

44196
96311

111786

114872
114872
114872
114872
114872
114872
114872
114872
114872
114872
114872

129778
129778
131920
131920
131920
131937
131971

133607
133607

133608
133608
181826
181826
181826
181826
181826

188016

245275
245275
245275

254049
254419
254419
254511
254511

254647
254715

300039

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

98

Freehold

99

Freehold

Freehold

Freehold

State Rail Authority of NSW


State Rail Authority of NSW
State Rail Authority of NSW
Freehold
Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Department of Lands (Crown)

Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

Freehold

102
1

192
27

28
41
57

62
63
70

72
78

356063

366686
366686
366686
366687
367398
367399
367399
367400
377642
406517

433533
433533
433533

435063
435063
450224
450224
510667
510667
575271

582892
582892
595873
595873
612664
612664
614451

628700
628700

654494
725841
751018

751032
751032
751032
751032
751032
751032
751032
751032
751032

Project Description and Preliminary Environmental Assessment 24

Caroona Coal Project

Appendix A Preliminary Schedule of Lands


continued

Tenure Type

Lot Number

Deposited
Plan
Number

Freehold

80

751032

Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold

Department of Lands (Crown)


Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold

State Forests of NSW


State Forests of NSW
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold

79
81

82
83

84
85

86
87

88
89

90

109
117

118

128

129
135

150
158
1
3
4
6

12
13

35

36
82
83

114

116
117

122
124

199

200
201

202
203

204
205
206

751032
751032
751032
751032
751032
751032
751032
751032
751032
751032
751032
751032
751032
751032
751032
751032
751032
751032
751032

755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494
755494

Tenure Type

Lot Number

Deposited
Plan
Number

Freehold

210

755494

Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold

207
211

212
213

215
217
19

51

52

99

177
178
1
3
6

15

16
17

18

22
23

32
33

34

36
64
65

66
67

70
71

74

75

82

96
97

99

101

104
171

172

310

755494
755494
755494
755494
755494
755494
755520
755520
755520
755520
755520
755520

755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529
755529

Project Description and Preliminary Environmental Assessment 25

Caroona Coal Project

Appendix A Preliminary Schedule of Lands


continued

Tenure Type

Lot Number

Deposited
Plan
Number

Freehold

837358

Freehold
Freehold
Freehold
Freehold
Freehold

Department of Lands (Crown)


Department of Lands (Crown)
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold
Freehold

Department of Lands (Crown)


Freehold

Department of Lands (Crown)


Freehold
Freehold
Freehold
Freehold
Freehold
Freehold

Department of Lands (Crown)

33
2
1
2
1

41

7001
1
2
3
1
2
1
2
3
4

7017
1

7005
1
1
2
3
2
6

7302

837193

837358

848069
848069
952649

1019504

1026452

1080644
1080644
1080644
1081798
1081798
1088131
1088131
1088131
1088131
1096115

1108256

1109398
1110085
1110519
1110519
1110519

1116407

1130609
1147060

Project Description and Preliminary Environmental Assessment 26

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