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Northern Coal Services

Coal Logistics Project

Briefing Paper

February 2012


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NORTHERN COAL SERVICES COAL LOGISTICS PROJECT

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TABLE OF CONTENTS

1.0 INTRODUCTION ............................................................................................................... 1

1.1 BACKGROUND................................................................................................................. 1

1.2 PROJECT

OVERVIEW

....................................................................................................... 11.3 BRIEFING PAPER ............................................................................................................ 5

1.4 THEAPPLICANT.............................................................................................................. 5

2.0 SITE DESCRIPTION ......................................................................................................... 6

2.1 SITE LOCALITY AND EXISTING LAND USES....................................................................... 6

2.1.1 Newstan Colliery..................................................................................................... 6

2.1.2 Mandalong Mine Cooranbong Entry Site ............................................................. 6

2.2 LANDFORMS AND TOPOGRAPHY...................................................................................... 6


2.2.2 Mandalong Mine Cooranbong Entry Site ............................................................. 6

2.3 LAND OWNERSHIP .......................................................................................................... 7


2.3.2 Mandalong Mine Cooranbong Entry Site ........................................................... 10

3.0 CURRENT APPROVED OPERATIONS ......................................................................... 13

3.1 NEWSTAN COLLIERY..................................................................................................... 13

3.2 MANDALONG MINE........................................................................................................ 133.3 INFRASTRUCTURE......................................................................................................... 14

3.3.1 Newstan Colliery................................................................................................... 14

3.3.2 Mandalong mine Cooranbong Entry Site ........................................................... 15

3.4 COAL HANDLING AND TRANSPORT................................................................................. 16

3.4.1 Domestic Coal Transportation Newstan Colliery .................................................. 16

3.4.2 Domestic Coal Transportation Mandalong Mine .................................................. 17

3.4.3 Export Coal Transportation Newstan Colliery ....................................................... 17

3.4.4 Export Coal Transportation Mandalong Mine ....................................................... 17

3.5 REJECT MANAGEMENTNEWSTAN COLLIERY............................................................... 17

3.6 REJECT MANAGEMENTMANDALONG MINE.................................................................. 18

3.7 WATER MANAGEMENT .................................................................................................. 20

3.8 CONSENTS,LEASES AND LICENCES............................................................................... 23

3.8.1 Newstan Colliery Development Consents ............................................................ 23

3.8.2 Mandalong Mine Development Consents ............................................................. 24


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3.8.3 Centennial Newstan Mining Leases ..................................................................... 26

3.8.4 Centennial Mandalong Mining Leases ................................................................. 29

3.8.5 Environmental Protection Licences ...................................................................... 29

3.9 ENVIRONMENTAL MANAGEMENT SYSTEM...................................................................... 30

4.0 PROPOSED PROJECT .................................................................................................. 32

4.1 BACKGROUND............................................................................................................... 32

4.2 PROJECTAREA............................................................................................................. 33

4.3 COAL HANDLING........................................................................................................... 33

4.4 REJECT MANAGEMENT.................................................................................................. 34

4.5 INFRASTRUCTURE......................................................................................................... 36

4.6 WATER MANAGEMENT .................................................................................................. 36

4.7 HOURS OF OPERATION AND PERSONNEL....................................................................... 37

4.8 ADDITIONAL LICENCES ANDAPPROVALS........................................................................ 37

4.9 ENVIRONMENTAL MANAGEMENT SYSTEM...................................................................... 37

5.0 PLANNING CONSIDERATIONS .................................................................................... 38

5.1 INTRODUCTION ............................................................................................................. 38

5.2 COMMONWEALTH LEGISLATION..................................................................................... 38

5.2.1 Environment Protection and Biodiversity Conservation Act 1999 ........................ 38

5.2.2

National Greenhouse and Energy Reporting Act 2007 ........................................ 38

5.2.3 Native Title Act 1994 ............................................................................................ 39

5.3 NEW SOUTH WALES LEGISLATION................................................................................. 39

5.3.1 Environmental Planning and Assessment Act 1979 ............................................. 39

5.3.2 Other NSW State Legislation................................................................................ 40

5.3.3 State Environmental Planning Policies ................................................................. 42

5.4 LOCALENVIRONMENTPLANS ................................................................................ 42

5.4.1 Lake Macquarie Local Environment Plan ............................................................. 42

6.0 KEY ENVIRONMENTAL ISSUES .................................................................................. 44

6.1 IDENTIFICATION OF ENVIRONMENTAL ISSUES................................................................. 44

6.1.1 Pre-Project Risk Assessment ............................................................................... 44

6.2 IDENTIFIED ENVIRONMENTAL ISSUES............................................................................. 46

6.2.1 Flora and Fauna ................................................................................................... 46

6.2.2 Surface Water....................................................................................................... 47

6.2.3 Greenhouse Gas .................................................................................................. 47


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6.2.4 Air Quality ............................................................................................................. 48

6.2.5 Noise .................................................................................................................... 48

6.2.6 Heritage (Aboriginal and European) ..................................................................... 49

6.2.7 Social/Community ................................................................................................. 49

6.2.8 Waste Management ............................................................................................. 49

6.2.9 Visual .................................................................................................................... 50

7.0 STAKEHOLDER AND COMMUNITY CONSULTATION ............................................... 50

8.0 PROJECT JUSTIFICATION ........................................................................................... 51

9.0 CONCLUSION ................................................................................................................ 52


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FIGURES

FIGURE 1NORTHERN COAL SERVICESCOAL LOGISTICS PROJECTAREA.................. 4

FIGURE 2NEWSTAN COLLIERY SURFACE SITE LAND OWNERSHIP................................ 9

FIGURE 3MANDALONG MINECOORANBONG ENTRY SITE LAND OWNERSHIP........... 12FIGURE 4CURRENTAPPROVED COAL HANDLING AND TRANSPORT SYSTEM.............. 19

FIGURE 5NEWSTAN COLLIERY SURFACE WATER MANAGEMENT SYSTEM.................. 21

FIGURE 6MANDALONG MINECOORANBONG ENTRY SITE SURFACE WATERMANAGEMENT SYSTEM......................................................................................... 21

FIGURE 7CENTENNIAL NEWSTAN MINING LEASES.................................................... 28

FIGURE 8PROPOSED COAL HANDLING AND TRANSPORT SYSTEM.............................. 35

TABLES

TABLE 1LIST OF LAND TITLES FOR THE NEWSTAN COLLIERY SURFACE SITE................ 7

TABLE 2LIST OF LAND TITLES FOR THE MANDALONG MINECOORANBONG ENTRY SITE

............................................................................................................................ 10

TABLE 3NEWSTAN COLLIERY DEVELOPMENT CONSENTS.......................................... 21

TABLE 4MANDALONG MINE DEVELOPMENT CONSENTS............................................. 26

TABLE 5CENTENNIAL NEWSTAN MINING LEASES...................................................... 26

TABLE 6CENTENNIAL MANDALONG MINING LEASES.................................................. 29

TABLE 7-SUMMARY OF NSWLEGISLATION RELEVANT TO THE PROJECT..................... 41

APPENDICES

APPENDIX 1ENVIRONMENT AND COMMUNITY BROAD BRUSH RISKASSESSMENT

APPENDIX 2SCHEDULE OF LAND

APPENDIX 3QUANTITY SURVEYORS CERTIFICATE


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ABBREVIATIONS

AHD Australian Height Datum

AHIMS Aboriginal Heritage Information Management System

Banpu Banpu Public Company Limited

BOM Bureau of Meteorology

CCC Community Consultative Committee

CPP Coal Preparation Plant

Centennial Centennial Coal Company

Centennial Newstan Centennial Newstan Pty Ltd

DA 73-11-98 Development Application 73-11-98

EARs Environmental Assessment Requirements

EIS Environmental Impact Statement

DP&I Department of Planning and Infrastructure

DTIRIS Department of Trade and Investment, Regional

Infrastructure and Services

EMS Environmental Management System

EP&A Act Environmental Planning and Assessment Act 1979

EPBC Act Environment Protection and Biodiversity Conservation

Act 1999

EPL Environment Protection Licence

Heritage Act Heritage Act 1977

ILUA Indigenous Land Use Agreement

LALC Local Aboriginal Land Council

LEP Local Environmental Plan

LGA Local Government Area

LMCC Lake Macquarie City Council

MNES Matters of National Environmental Significance


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Mtpa Million tonnes per annum

Newstan EIS Newstan Colliery Life Extension Project Environmental

Impact Statement

NREA Northern Reject Emplacement Area

NGER Act National Greenhouse and Energy Reporting Act 2007

NOW NSW Office of Water

NPW Act National Parks and Wildlife Act 1974

OEH Office of Environment and Heritage

POEO Act Protection of the Environment Operations Act 1997

Project Coal Logistics Project

ROM Run of Mine

RWMP Revised Water Management Plan

SEPP State Environmental Planning Policies

SREA Southern Reject Emplacement Area

TSC Act Threatened Species Conservation Act 1995

WMA Water Management Act 2000

WSP Water Sharing Plan


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Definitions

Newstan Colliery

Newstan Colliery encompasses the Newstan Colliery Surface Site including rejectemplacement areas, the extent of existing and approved underground mine workings

and the extent of mining leases and exploration licences held by Centennial

Newstan.

Newstan Colliery Surface Site

The Newstan Colliery Surface Site encompasses the surface facilities located off

Miller Road, Fassifern and includes all buildings, coal handling infrastructure, menand materials access, mine ventilation fans and a water management system.

Mandalong Mine

Mandalong Mine encompasses the extent of existing mining leases, underground

mine workings, the Mandalong Mine Surface Site located near Morisset, the

Cooranbong Colliery workings, the Mandalong Mine Cooranbong Entry Site at Dora

Creek, the Delta Entry and coal delivery system near Wyee and the Mandalong Mine

private haul road.

Mandalong Mine Surface Site

The Mandalong Mine Surface Site is located adjacent to the F3 Freeway interchange

at Morisset and includes administration buildings, a workshop, a men and materials

drift, ventilation fans and infrastructure for greenhouse gas abatement.

Mandalong Mine Cooranbong Entry Site

The Mandalong Mine Cooranbong Entry Site is located at Dora Creek and includes

administration buildings, workshops, coal stockpiles, coal handling infrastructure and

a water management system.


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Mandalong Mine Haul Road

The Mandalong Mine haul road is a privately owned haul road linking the Mandalong

Mine - Cooranbong Entry Site to the Newstan Colliery via the Newstan-Eraring

private haul road.


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1.0 INTRODUCTION

1.1 Background

Centennial Coal Company (Centennial) is a coal mining and marketing company

supplying thermal and coking coal to the domestic and export markets. Centennial is

a major fuel supplier to the New South Wales energy industry, fuelling approximately

46% of the States coal-fired electricity. Centennial sells approximately one third of its

coal to export market customers including power stations and steel mills in Japan,

Korea and Europe. Centennial exports its coal through the ports of Newcastle and

Port Kembla.

Centennial operates twelve coal mines in NSW, making Centennial one of the largest

underground coal producers in NSW and now, as part of Banpu, a member of thelargest independent pan-Asian coal group. Centennials operations include Awaba,

Mandalong, Mannering, Myuna and Newstan located in the northern region around

Lake Macquarie. The surface facilities of the Newstan Colliery and former

Cooranbong Colliery are integral to the ongoing processing, handling and transport of

coal from the Newstan Colliery and Mandalong Mine operations into the export

market. These services are managed by the Northern Coal Services business unit

within Centennial.

1.2 Project Overview

Centennials Northern Coal Services is seeking approval for the Coal Logistics Project

(the Project) under Part 4 Division 4.1 of the Environmental Planning and

Assessment Act 1979 (EP&A Act). Specifically the Project proposes to:

Transport up to 4 Million tonnes per annum (Mtpa) of coal from the

Mandalong Mine Cooranbong Entry Site to the Newstan Colliery Surface

Site by truck using the existing Mandalong Mine and Newstan-Eraring private

haul roads;

Upgrade the surface infrastructure of the Newstan Colliery to enable the

handling and processing of up to 8 Mtpa of Run of Mine (ROM) consisting of

up to 4.5 Mtpa from the Newstan Colliery and up to 4 Mtpa from the


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Mandalong Mine through the Newstan Colliery Coal Preparation Plant (CPP)

and coal handling infrastructure;

Increase the coal stockpile capacity at the Newstan Colliery Surface Site;

Transport up to 8 Mtpa of coal from the Newstan CPP or coal handling

infrastructure through the Newstan Colliery rail loading facilities by train to the

Port of Newcastle or Port Kembla;

Operate coal handling facilities at Cooranbong;

Transport up to 4.5 Mtpa of coal product from the Newstan Colliery to the

Eraring Power Station or the Mandalong Mine - Cooranbong Entry Site by

truck using the existing Newstan-Eraring and/or Mandalong Mine private haul

roads;

Transport up to 4 Mtpa of coal from the Mandalong Mine Cooranbong Entry

Site to the Eraring Power Station via a dedicated overland conveyor owned

and operated by Eraring Energy;

Transport reject material to the Newstan Colliery Northern Reject

Emplacement Area (NREA), the Newstan Colliery Southern Reject

Emplacement Area (SREA) or the Lake Macquarie City Council (LMCC)

owned Hawkmount Quarry via private haul roads;

Construct and operate a coal crushing facility at the Mandalong Mine -

Cooranbong Entry Site that has previously been approved but not yet

constructed;

Manage surface water at the Newstan Colliery Surface Site, the Mandalong

Mine Cooranbong Entry Site, the Mandalong Mine private haul and the

LMCC owned Hawkmount Quarry;

Transfer water between the Newstan Colliery, the Awaba Colliery, the

Hawkmount Quarry and the Mandalong Mine water management system;

Undertake locomotive refuelling and servicing on site;

Continue the construction of the Newstan Colliery SREA to RL60;

Progressively rehabilitate disturbed areas;

Provide employment for up to 100 personnel; and


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Continue to operate the coal handling activities 24 hours per day seven days

per week.

The proposed Northern Coal Services - Coal Logistics Project area as shown in

Figure 1includes:

The Newstan Colliery Surface Site (including reject emplacement areas);

The Mandalong Mine Cooranbong Entry Site;

The existing Newstan-Eraring and Mandalong Mine private haul roads; and

The LMCC owned Hawkmount Quarry.


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Figure 1 Northern Coal Services Coal Logistics Project Area


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1.3 Briefing Paper

This Briefing Paper has been prepared by Centennials Northern Coal Services to:

Provide the Department of Planning and Infrastructure (DP&I) and other

relevant regulators with a description of the Project; and

Identify likely key social and environmental issues associated with the Project.

This Briefing Paper is intended to enable the Director-General to issue Environmental

Assessment Requirements (EARs) to assist Centennial in the preparation of the

Environmental Impact Statement (EIS) required to support the Project Application.

The Briefing Paper is generally structured as follows:

Section 1:provides an introduction to the Project;

Section 2: provides a description of the site and an overview of the existing

environment;

Section 3: provides an overview of the existing and approved operations of

the Newstan Colliery, the Awaba Colliery and the Mandalong Mine;

Section 4:provides a description of the Project;

Section 5:summarises the legislation relevant to the Project;

Section 6: provides an overview of the preliminary environmental risks

associated with the Project and the proposed assessment methodology for all

key environmental issues identified in the preliminary environmental risk

assessment for the Project;

Section 7:describes the stakeholder consultation program to be undertaken

to ensure all interested parties are consulted with regards to the Project; and

Section 8:provides a justification for the Project.

1.4 The Appl icant

Centennials Northern Coal Services Pty Limited is the applicant for this proposed

Project. Northern Coal Services Pty Limited is a wholly owned subsidiary of

Centennial Coal Company (Centennial), which is a wholly owned subsidiary of Banpu

Public Company Limited (Banpu).


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2.0 SITE DESCRIPTION

2.1 Site Locali ty and Existing Land Uses

2.1.1 Newstan Colliery

Newstan Colliery is regionally located approximately 25 kilometres south-west of

Newcastle and 140 kilometres north of Sydney within the Lake Macquarie Local

Government Area (LGA). The Newstan Colliery Surface Site is located in Fassifern

approximately four kilometres north of the township of Toronto.

2.1.2 Mandalong Mine Cooranbong Entry Site

The Mandalong Mine Cooranbong Entry Site is situated approximately

90 kilometres north-east of Sydney on the western side of Lake Macquarie and within

the Lake Macquarie LGA. The Mandalong Mine Cooranbong Entry Site is located

approximately 2.6 kilometres north of the township of Dora Creek.

A 3.4 kilometre private haul road owned by Centennial Mandalong links the

Mandalong Mine Cooranbong Entry Site to the Newstan Colliery via the existing

Newstan-Eraring private haul road. The Newstan-Eraring private haul road is ownedby Eraring Energy, is approximately 13 kilometres long and links to the Newstan

Colliery to the Eraring Power Station.

2.2 Landforms and Topography


The Newstan Colliery is located in gently undulating terrain bordered by vegetation.

The site has an approximate elevation of 30 metres AHD at Surface Site and an

approximate elevation of 72 metres AHD (highest point) at the SREA.


The Mandalong Mine Cooranbong Entry Site typically has an elevation of 10

metres to 14 metres AHD. The site has been excavated into the floor of a small


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valley and is surrounded to the south, west and north by ridges with elevations of

typically 40 to 50 metres AHD.

2.3 Land Ownership


The Newstan Colliery Surface Site occupies mainly freehold land. The remainder of

the land is Crown land. Land title descriptions and ownership associated with the

Newstan Colliery Surface Site is listed in Table 1 and shown in Figure 2 below.

Table 1 List of Land Titles for the Newstan Colliery Surface Site

Lot DP Owner

C 381399 Centennial Fassifern Pty Limited

441 583057 Fassifern Colliery Pty Limited



148 728974 Centennial Fassifern Pty Limited




630 816256 Crown Land






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100 1127677 Croft Bros. Pty Limited

591 607932 Nicholas & Robert Croft


5 46737 Crown Land

6 46737 Crown Land


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Figure 2 Newstan Colliery Surface Site Land Ownership


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Land at the Mandalong Mine Cooranbong Entry Site is largely Crown land or land

owned by Centennial Fassifern Pty Limited. Land title descriptions and ownership

associated with the Mandalong Mine Cooranbong Entry Site is listed in Table 2 andshown in Figure 3 below.

Table 2 List o f Land Titles for the Mandalong Mine Cooranbong Entry Site

Lot DP Owner

7306 1164232 Crown Land

11 1050120 Eraring Energy


210

755218 Gregory James Agius and Rebbekah

Josephine Atkinson





97 755218 Crown land







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Figure 3 Mandalong Mine Cooranbong Entry Site Land Ownership


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3.0 CURRENT APPROVED OPERATIONS

3.1 Newstan Colliery

Newstan Colliery was granted Development Consent DA 73-11-98 by the then

Minister for Urban Affairs and Planning on 14 May 1999 under Part 4 of the EP&A

Act. Centennial Newstan is approved under DA 73-11-98 to undertake the following

activities:

Extraction of up to 4 Mtpa of ROM coal from within the Newstan Colliery Life

Extension Area;

Process up to 4 Mtpa of ROM coal through the Newstan Colliery CPP;

Export up to 3 Mtpa of coal through the Newstan Colliery rail loading facilitiesby train;

Transport up to 2 Mtpa of coal by truck to the Eraring Power Station using the

existing Newstan-Eraring private haul road;

Receive ROM coal from the Mandalong Mine by truck;

Receive up to 880,000 tpa of coal from the Awaba Colliery by truck;

Transport reject material from the Newstan Colliery CPP to the Northern

Reject Emplacement Area;

Transport reject material from the Newstan Colliery CPP to the Southern

Reject Emplacement Area;

Construction of the SREA to RL60; and

Operate activities 24 hours per day 7 days a week.

3.2 Mandalong Mine

Mandalong Mine was granted Development Consent DA 97/800 by the then Minister

for Urban Affairs and Planning on 14 October 1998 under Part 4 of the EP&A Act.

Mandalong Mine is an extension of the old Cooranbong Colliery. After obtaining

Development Consent in 1998, construction commenced on the Mandalong Mine

Surface Site and decline tunnel to access the Mandalong underground mining area.

Coal produced by the Mandalong Mine is either transported to the Delta Entry Site or


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the Mandalong Mine Cooranbong Entry Site where it is either transported to the

Eraring Power Station or the Newstan Colliery Surface Site for further processing and

transport into the export market.

Approved activities for the Mandalong Mine - Cooranbong Entry Site include:

Receipt of up to 4 Mtpa of ROM coal from the Mandalong Mine underground

workings;

Construction and operation of coal handling infrastructure including a coal

preparation plant;

Coal stockpiling;

Construction and operation of a private haul road linking the Mandalong Mine

Cooranbong Entry site to the Newstan Colliery Surface Site;

Delivery of up to 2 Mtpa of coal to the Eraring Power Station via a dedicated

overland conveyor owned and operated by Eraring Energy;

Delivery of up to 2 Mtpa of ROM coal to the Newstan Colliery surface site by

truck via the Mandalong Mine and Newstan-Eraring private haul roads;

Delivery of stone material by truck using the existing Mandalong Mine and

Newstan-Eraring private haul roads to the Newstan Colliery emplacement

areas;

Delivery of reject material to the LMCC owned Hawkmount Quarry for

emplacement;

Pumping of tailings into the underground workings of the Mandalong Mine;

Operation of a water management system; and

Operate activities 24 hours per day 7 days a week.

3.3 Infrastructure


The existing Newstan Colliery Surface Site is located adjacent to Miller Road, near

the township of Fassifern. The Newstan Colliery surface infrastructure incudes:


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An administration building;

A bathhouse with adequate facilities and services for up to 350 people;

A CPP and coal storage bins with a design capacity in excess of 4 million

tonnes per annum;

Various workshops, service buildings and material storage sheds;

Visitor and employee parking areas;

A men and materials drift winder for access to underground workings;

A coal conveyor drift and coal conveyor drive house to transport coal from the

underground workings to the surface;

Ventilation fans;

A ballast borehole at Awaba;

Coal stockpile areas;

A rail loop;

Reject emplacement areas; and

A comprehensive water management control system and associated

infrastructure.

The Newstan Colliery also operates a range of ancillary surface infrastructure for the

provision of water, electricity, ventilation and communications to the site and removal

of gas from the underground workings.

3.3.2 Mandalong mine Cooranbong Entry Site

Infrastructure at the existing Mandalong Mine Cooranbong Entry Site consists of:

An administration building and bath house;

Car parking;

A material storage facility;

A workshop;

Personnel and materials access drift;


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A twin centrifugal fan upcast air shaft;

A compressor building;

An emergency services helipad;

Equipment and materials storage sheds;

Water management and associated infrastructure; and

Coal handling plant and stockpiles.

Coal handling plant infrastructure includes conveyors leading from the South Drift, a

rotary breaker and sizer, conveyor drive head units, storage bins, coal stockpile

areas and a haul road linking the Cooranbong Services Site to the Newstan-Eraring

private haul road. The majority of the site is paved with runoff from the site beingdirected into a controlled water management system. The Mandalong Mine has

approval for upgrades to the coal handling system at the Cooranbong Entry Site to

include additional washing and processing infrastructure. These upgrades have not

yet been constructed.

3.4 Coal Handling and Transport

The current approved coal handling and transport operations across the NewstanColliery and the Mandalong Mine are detailed below and shown in Figure 4.

3.4.1 Domestic Coal Transportation Newstan Colliery

Domestic coal at the Newstan Colliery is delivered by conveyor from the Newstan

CPP to the 2000 tonne truck loading bin prior to being loaded onto trucks and

transported to Eraring Power Station via the Newstan-Eraring private haul road.

Domestic coal may also be stockpiled within the Newstan rail loop before it is loaded

onto trains by front end loaders. The coal is then transported by rail to the Vales

Point Power Station.


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3.4.2 Domestic Coal Transportation Mandalong Mine

Domestic coal delivered from the Mandalong Mine to the Mandalong Mine

Cooranbong Entry Site is transported directly to the Eraring Power Station via the

Eraring Energy owned enclosed overland conveyor.

3.4.3 Export Coal Transportation Newstan Colliery

Export quality coal produced by the Newstan Colliery CPP is transported by truck

from the 2000 tonne truck loading bin and stockpiled within the central portion of the

existing rail loop. Coal is then loaded by front end loaders onto the trains for

transportation along the Main Northern Railway to the port of Newcastle or Port

Kembla.

3.4.4 Export Coal Transportation Mandalong Mine

Export quality coal produced by the Mandalong Mine and delivered to the Mandalong

Mine Cooranbong Entry Site is transported by truck using the Mandalong Mine

private haul road to the Newstan Colliery Surface Site. Mandalong Mine coal is then

processed and handled in accordance with the approved coal handling operations of

the Newstan Colliery before being loaded onto trains and transported to the port of

Newcastle or Port Kembla.

3.5 Reject Management Newstan Coll iery

Fine reject material (tailings), produced from the washing of coal through the

Newstan CPP is pumped to the approved Newstan Colliery SREA. The SREA has an

approved development area of 75 hectares, which equates to an emplacement

volume of approximately 12.3 million cubic metres. The SREA has been designed to

be developed in a series of stages to minimise the land area that needs to be cleared

at any time. This sequential development also allows a free-draining and stable final

landform to be readily achieved if emplacement in this area ceases at any stage of

the development. A filter wall and bore are strategically located within the confines of

the tailings dam which allows excess water to be decanted from the tailings dam into


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underground workings. The decanted water is recycled for reuse in the mine and the

CPP.

Coarse reject material is transported by truck from the Newstan Colliery CPP to the

SREA for emplacement or use in the construction of the dam wall. Some coarsereject material is transported to the NREA where it is used as a capping material in

the rehabilitation process.

3.6 Reject Management Mandalong Mine

Currently, approximately 7800 tonnes per year of stone material produced from the

processing of coal at the Mandalong Mine - Cooranbong Entry Site is transported by

truck, using the existing Mandalong Mine and Newstan-Eraring private haul roads, to

the Newstan Colliery for use in rehabilitation or emplacement within the Newstan

Colliery reject emplacement areas. Mandalong Mine has an existing approval to

transport coarse reject material produced from the approved but not yet constructed

wash plant to the Hawkmount Quarry for emplacement and dispose of fine reject

material (tailings) underground into disused workings of the Cooranbong Colliery.

Stone material from the Mandalong Mine that is processed at the Newstan Colliery

Surface Site is managed in accordance with the approved Newstan Colliery reject

management system.


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Figure 4 Current Approved Coal Handling and Transport System


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3.7 Water Management

The water management system at the Newstan Colliery and the Mandalong Mine

Cooranbong Entry Site is comprised of both surface and underground water and is a

complex system that has been progressively developed over the life of theoperations. The water management system for all sites has been designed to:

Maximise the separation of clean and dirty water;

Manage water discharge from site, in terms of volume and quality, to a level

that is acceptable for environmental management;

Minimise water discharges from the premises by maximising, where

practicable available water storages; and

Minimise discharges of dirty water from the premises.

Figure 5 and Figure 6 depict the surface water management system at both the

Newstan Colliery Surface Site and the Mandalong Mine Cooranbong Entry Site

respectively.


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Figure 5 Newstan Colliery Surface Water Management System


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Figure 6 Mandalong Mine Cooranbong Entry Site Surface Water

Management System


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3.8 Consents, Leases and Licences

3.8.1 Newstan Colliery Development Consents

Newstan Colliery was granted Development Consent by the (then) Minister for Urban

Affairs and Planning on the 14 May 1999 for the range of activities detailed and

assessed within the Newstan Colliery Life Extension Project Environmental Impact

Statement (Newstan EIS). Modifications to DA 73-11-98 include:

Approval to allow for the continuation of underground mining within longwall

panel 24 and the relocation of an approved, however not yet constructed,

ventilation shaft and associated service corridors granted on 23 September

2007;

Approval to wash coal from the Centennial Mandalong Mine at Newstan

Colliery granted on 27 November 2009; and

Approval to wash coal from the Centennial Awaba Colliery at Newstan

Colliery, the acceptance of stone reject material from the Centennial

Mandalong Mine at Newstan Colliery and the establishment of a 30,000 tonne

emergency coal stockpile granted on 26 November 2010.

In 2011, Centennial Newstan submitted an application to DP&I to modify DA 73-11-

98 to allow for the recommencement of mining using bord and pillar mining methodswithin an area referred to as Main West. At the time of submitting this document,

approval for the Main West Mining Project has not yet been obtained. Table 3

contains a list of the consents relevant to the Newstan Colliery operation.


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Table 3 Newstan Colliery Development Consents

Reference Descript ion Expiry date

DA 73-11-98

Approves the extension of Newstan underground

coalmine and upgrade of associated surface facilities on

May 14 1999 (modified in 2007, 2009 and 2010).

6/07/2020

DA 83/877

Authorises the transport of coal via the NewstanEraring

private haul road to Eraring and to the Newstan CHPP

from Awaba Colliery surface facilities.

N/A

DA 93/00080Allows the development of coal storage and a rail loading

area.N/A

DA 88/0645Permits the establishment of a coal storage area and

water management facilities adjacent to rail loop.N/A

DA

99/02806/1N

Permits the establishment of an emergency egress and

bulk materials delivery facility.N/A

DA 95/00152 For addition to lease area for land under ML 1380. N/A

The Newstan-Eraring private haul road is owned by Eraring Energy with whom

Centennial Newstan has an agreement with for its use. The road is located on Crown

land used under Permissive Occupancy #16313 held by Eraring Energy. A small

section of the haul road access from the Awaba Colliery stockpile area to the junction

with the main haul road is owned by Centennial Newstan. The road is constructed on

Crown land leased by Centennial Newstan.

3.8.2 Mandalong Mine Development Consents

Mandalong Mine was granted Development Consent DA 97/800 in 1998 for the

extension to underground mining activities at the Cooranbong Services Site and

development of the Mandalong Mine Surface Facilities Area. Development Consent

97/800 is supported by the Cooranbong Colliery Life Extension Project -


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Environmental Impact Statement (Umwelt, 1997). Seven modifications to the original

Development Consent have since been approved, as follows:

Development Consent DA 97/800 was first modified in 2001 under section

96(1A) of the EP&A Act to allow for minor changes to conditions of consentrelating to the preparation of property subsidence management plans,

longwall subsidence management plans and notification of landholder

requirements;

In 2005 a modification was approved under section 96(2) of the EP&A Act for

the installation of methane drainage plant and the transport of 1,000 tonnes of

coal from the Mine by road. Centennial Mandalong has since constructed and

commenced operation of the methane drainage plant;

Condition 60a(iii) of the 2005 modification included a requirement for

Centennial Mandalong to submit a report on the progress towards

implementing greenhouse gas abatement. In accordance with this condition,

a report dated 24th June 2005 and a subsequent application was submitted to

modify DA 97/800 to allow for the installation and operation of enclosed

methane gas flare units for high purity methane drainage gas. This

modification was approved in 2006; and

In 2009 three modifications to the consent were approved for the:

o Construction and operation of gas engines to produce up to 12 Mega

Watts (MW) of electricity using high purity methane drainage gas, an

increase in the rate of ROM production to 6 Mtpa, relocation of the

approved ballast borehole, and an update of subsidence conditions to

make them consistent with the current Subsidence Management Plan

(SMP) process;

o Temporary increase in the amount of coal product transported by

conveyor from Mandalong Mine to the Eraring Power Station

stockpiles, and processing of Mandalong coal at the Newstan Colliery;

and

o Modifications to the heights and locations of already approved but not

yet constructed coal handling infrastructure at the Cooranbong

Services Site.


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In 2011, approval was granted for the installation and ongoing operation of

new technology known as a ventilation air methane regenerative after burner

(VAMRAB) to demonstrate the ability of the technology to capture and abate

ventilation air methane from the mine.

In addition to DA 97/800, Development Consent DA 35/2/2004 was granted in July

2004 by the Minister for Planning, approving the construction and operation of the

coal handling and clearance system at the Delta Entry Site. Table 4 details the

Development Consents held by Centennial Mandalong.

Table 4 Mandalong Mine Development Consents

Reference Descr ipt ion Expiry Date

DA 97/800 Development Consent for Mandalong Mine 14/10/2019

DA 35/2/2004

Development Consent for the construction

and use of the Mandalong Coal Delivery

System (Delta Link Project)

04/07/2021

3.8.3 Centennial Newstan Mining Leases

Centennial Newstan holds a number of mining leases which are detailed in Table 5

and Figure 7below.

Table 5 Centennial Newstan Mining Leases

Lease Expiry Date

CCL727 11/08/27

CCL746 31/12/28

CCL763 09/06/22

CCL764 18/05/21

ML1380 18/09/16


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Newstan Colliery has eleven benefiting unregistered subleases with adjoining mining

lease holders to mine various coal seams. Recent changes to the Mining Act 1992

have resulted in all the subleases held by Centennial Newstan being deregistered.

Newstan Colliery is in the process of making application to have the various

subleases reregistered.

ML1452 06/07/20

ML1480 20/07/23

ML1587 23/10/27

MPL304 25/03/14

MPL305 25/03/14

MPL327 05/08/15

MPL328 05/08/15

PLL497 24/08/17


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Figure 7 Centennial Newstan Mining Leases


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3.8.4 Centennial Mandalong Mining Leases

Table 6lists the mining leases relevant to the Centennial Mandalong operations. The

Mandalong Mine - Cooranbong Entry site is located within CCL 762 held by

Centennial Mandalong. The Mandalong Mine private haul road is located withinCCL746 held by Centennial Newstan. Centennial Newstan holds Licence Number

LI432152 with the Land and Property Management Authority for the construction and

operation of the Mandalong Mine private haul road.

Table 6 Centennial Mandalong Mining Leases

3.8.5 Environmental Protection Licences

Newstan Colliery currently holds EPL 395. Mandalong Mine holds EPL 365 which

covers the Mandalong Mine Cooranbong Entry Site.

Lease Expiry Date

CCL 762 13/10/2022

CCL746 31/12/2028

ML 1443 01/03/2020

ML 1431 27/05/2019

ML1543 25/11/2024

ML1553 07/09/2025

MPL 191 24/02/2023

MPL 329 04/08/2015


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3.9 Environmental Management System

The Mandalong Mine and the Newstan Colliery have an established Environmental

Management System (EMS) that has been developed in accordance with the

Centennial Coal Environmental Management System Framework (October 2011).

The EMS for both sites has been developed and implemented to ensure the effective

management of environmental issues and compliance with all regulatory

requirements while providing a means for continued improvement in the

environmental performance of the sites. The major components of the EMS include:

Centennial Coals Environmental Policy;

Various management plans, management documents and environmental

monitoring programmes; and

An Environmental Management Strategy.

The existing environmental management plans in place the Newstan Colliery include:

Noise Management;

Dust Management Plan;

Flora & Fauna Management Plan;

Water Management Plan;

Wetland Management Plan;

Archaeology & Cultural Heritage Plan;

Landscape Management Plan;

Fine Rejects Management Plan;

Erosion & Sediment Control Plan;

Land Management Plan;

Soil Stripping Management Plan; and

Bush Fire Management Plan.

The environmental management plans in place at the Mandalong Mine, relevant to

the Mandalong Mine Cooranbong Entry Site include:


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Underground Mining Environmental Management Plan;

Surface Environmental Management Plan;

Stakeholder Engagement Plan;

Emergency Plan;

Wetland Management Plan;

Energy Savings Action Plan; and

Cooranbong Haul Road Environmental Management Plans.


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4.0 PROPOSED PROJECT

4.1 Background

Centennials Northern Coal Services is seeking approval for the Coal Logistics Project

under Part 4 Division 4.1 of the EP&A Act. Specifically the Project proposes to:

Transport up to 4 Million tonnes per annum (Mtpa) of coal from the

Mandalong Mine Cooranbong Entry Site to the Newstan Colliery Surface

Site by truck using the existing Mandalong Mine and Newstan-Eraring private

haul roads;

Upgrade the surface infrastructure of the Newstan Colliery to enable the

handling and processing of up to 8 Mtpa of Run of Mine (ROM) consisting of

up to 4.5 Mtpa from the Newstan Colliery and up to 4 Mtpa from the

Mandalong Mine through the Newstan Colliery Coal Preparation Plant (CPP)

and coal handling infrastructure;

Increase the coal stockpile capacity at the Newstan Colliery Surface Site;

Transport up to 8 Mtpa of coal from the Newstan CPP or coal handling

infrastructure through the Newstan Colliery rail loading facilities by train to the

Port of Newcastle or Port Kembla;

Operate coal handling facilities at Cooranbong;

Transport up to 4.5 Mtpa of coal product from the Newstan Colliery to the

Eraring Power Station or the Mandalong Mine - Cooranbong Entry Site by

truck using the existing Newstan-Eraring and/or Mandalong Mine private haul

roads;

Transport up to 4 Mtpa of coal from the Mandalong Mine Cooranbong Entry

Site to the Eraring Power Station via a dedicated overland conveyor owned

and operated by Eraring Energy;

Transport reject material to the Newstan Colliery Northern Reject

Emplacement Area (NREA), the Newstan Colliery Southern Reject

Emplacement Area (SREA) or the Lake Macquarie City Council (LMCC)

owned Hawkmount Quarry via private haul roads;


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Construct and operate a coal crushing facility at the Mandalong Mine -

Cooranbong Entry Site that has previously been approved but not yet

constructed;

Manage surface water at the Newstan Colliery Surface Site, the MandalongMine Cooranbong Entry Site, the Mandalong Mine private haul and the

LMCC owned Hawkmount Quarry;

Transfer water between the Newstan Colliery, the Awaba Colliery, the

Hawkmount Quarry and the Mandalong Mine water management system;

Undertake locomotive refuelling and servicing on site;

Continue the construction of the Newstan Colliery SREA to RL60;

Progressively rehabilitate disturbed areas;

Provide employment for up to 100 personnel; and

Continue to operate the coal handling activities 24 hours per day seven days

per week.

4.2 Project Area

The Northern Coal Services Coal Logistics Project Area as shown in Figure 1

includes:

The Newstan Colliery Surface Site (including reject emplacement areas);

The Mandalong Mine Cooranbong Entry Site;

The existing Newstan-Eraring and Mandalong Mine private haul roads; and

The LMCC owned Hawkmount Quarry.

4.3 Coal Handling

The Project will allow for the flexible processing and handling of coal from both the

Newstan Colliery and Mandalong Mine. ROM coal produced by the Newstan Colliery

will be delivered to and processed by the Newstan Colliery CPP before being

transported to the domestic or export markets. Coal from the Mandalong Mine will be


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either transported from the Mandalong Mine - Cooranbong Entry Site to the Newstan

Colliery Surface Site by truck using the Mandalong Mine and Newstan-Eraring

private haul roads or transported directly from the Mandalong Mine Cooranbong

Entry Site to the Eraring Power Station using the existing Eraring Energy owned

overland conveyor. Coal transportation to the Newstan Colliery Surface Site will be at

a rate of up to 4 Mtpa or the Eraring Power Station at a rate of up to 4 Mtpa.

Mandalong Mine coal will either be processed through the Newstan CPP or

transported directly into the export market through the Newstan Colliery rail loading

facility.

The Newstan Colliery coal handling infrastructure and CPP will be upgraded to allow

up to 8 Mtpa to be processed and handled at the Newstan Colliery Surface Site. Up

to 8 Mtpa of either Newstan or Mandalong Mine coal will be transported into theexport market through the Newstan Colliery rail loading facilities.

Up to 4.5 Mtpa of coal will be transported from the Newstan Colliery Surface Site to

the Eraring power Station via the Newstan-Eraring private haul road.

Figure 8 depicts the coal handling and transport system propsed for the Northern

Coal Services Coal Logistics Project.

4.4 Reject Management

Coarse reject material produced form the processing of coal through the Newstan or

Cooranbong Colliery CPPs will be either transported to the Newstan Colliery NREA

for use in capping and rehabilitation of the site or SREA for use in the construction of

the dam wall or emplacement. Coarse reject material will also be transported by truck

using the existing Newstan-Eraring and Mandalong Mine private haul roads for

emplacement at the LMCC owned Hawkmount Quarry.

Fine rejects (tailings) will continue to be pumped from the Newstan Colliery CPP to

the SREA for emplacement.


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Figure 8 Proposed Coal Handling and Transport System


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4.5 Infrastructure

The proposed Project will utilise the existing infrastructure of the Newstan Colliery

and the Mandalong Mine Cooranbong Entry Site, including existing private haul

roads and rail loading facilities. The Project proposes upgrades to the NewstanColliery CPP and coal handling infrastructure to allow for the handling and

processing of up to 8 Mtpa of ROM coal from either the Newstan Colliery or

Mandalong Mine. The Project will also require the construction and operation of an

automatic train loading facility at the Newstan Colliery to facilitate the transport of up

to 8 Mtpa through the Newstan Colliery rail loading facility into the export market.

The Newstan Colliery Extension of Mining Project currently being considered by

Centennial proposes upgrades to the infrastructure at the Awaba Colliery Surface

Site to accommodate for the proposed relocation of the Centennial Newstan

workforce. Once the Centennial Newstan workforce has relocated to the Awaba

Colliery Surface Site, the existing infrastructure at the Newstan Colliery Surface Site,

including administration buildings, workshops and storage areas will continue to be

utilised by the Coal Logistics Project Team. Minor upgrades to this infrastructure may

be required.

Additional infrastructure including support buildings and infrastructure for electrical

reticulation, water reticulation, water management, communications, hydrocarbonstorage and management and other services may also be required.

An additional coal crushing facility at the Mandalong Mine Cooranbong Entry Site

currently approved for construction by the Mandalong Mine Development Consent

DA 97/800 will be constructed and operated as part of the Coal Logistics Project.

4.6 Water Management

The Project will continue to operate and manage the surface water management

systems of the Newstan Colliery, the Mandalong Mine - Cooranbong Entry Site, the

Mandalong Mine private haul road and the LMCC owned Hawkmount Quarry.

Surface water management includes the supply of potable water and the

management of all licenced discharge points at these sites. Upgrades to the water

management systems may be required at all sites and will be discussed in detail in

the EIS. Centenial are currently investigating water management options at a


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regional level across its operations and options to manage water quality at both the

Newstan Colliery Surface Site and the Mandalong mine Cooranbong Entry Site.

These investigations involve ongoing discussions with the Office of Environment and

Heritage and will be further detailed within the EIS.

Additional water management infrastructure will be required to be constructed at the

Hawkmount Quarry to manage surface water at the site. Detailed water management

requirements for the Hawkmount Quarry will also be discussed in the EIS.

4.7 Hours of Operation and Personnel

The coal handling, processing and transport operations associated with this Project

will be undertaken 24 hours a day, seven days a week. The project will require

approximately 100 full time personnel to be engaged to manage the Project. These

100 personnel will be spread across the Newstan Colliery Surface Sites and the

Mandalong Mine Cooranbong Entry Site and will utilise existing buildings and car

parking facilities.

4.8 Additional Licences and Approvals

A new EPL will be required to support the Project incorporating existing Newstan

Colliery and Mandalong Mine Cooranbong Entry Site Licenced Discharge Points. A

review of all additional licences or approvals required to support the Project will be

undertaken as part of the preparation of the EIS.

4.9 Environmental Management System

If the Project is approved, the EMS of the Newstan Colliery and the Mandalong Mine

will be revised to develop a single EMS to cover the activities associate with the

Northern Coal Services - coal logistics operations. The EMS will be developed, taking

into consideration the results of specialist studies undertaken as part of the

development of the EIS.


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5.0 PLANNING CONSIDERATIONS

5.1 Introduction

The Project will be assessed in full consideration of the applicable statutory planning

instruments of the Commonwealth and State, as well as associated planning and

environmental frameworks. This section describes the statutory planning instruments

relevant to the Project, and assesses their implications in relation to the required

approval process.

5.2 Commonwealth Legislation

5.2.1 Environment Protection and Biodiversity Conservation Act 1999

The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)

came into effect on 16 July 2000 and is administered by the Commonwealth

Department of the Sustainability, Environment, Water, Population and Communities

(SEWPaC). Part 3 of the EPBC Act states that an action that has, will have or is likely

to have a significant impact on a Matter of National Environmental Significance

(MNES), may not be undertaken without prior approval of the Minister for SEWPaC.

An assessment of whether the Project will have a significant impact on these MNES

will be undertaken as part of the environmental assessment process. If required, a

referral will be submitted to SEWPaC to determine if the Project is a controlled action

under the EPBC Act.

5.2.2 National Greenhouse and Energy Reporting Act 2007

The National Greenhouse and Energy Reporting Act 2007 (NGER Act) provides a

single National framework for the reporting and dissemination of information

regarding greenhouse gas emissions, greenhouse gas projects and energy use, and

production by corporations. The NGER Act mandates registration and reporting by

corporations whose energy production or use, or greenhouse gas emissions meet

specified thresholds. Centennial reports emissions from the corporation which

includes emissions from the Newstan Colliery, the Awaba Colliery and the

Mandalong Mine.


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5.2.3 Native Title Act 1994

The Native Title Act 1994 recognises that Aboriginal people have rights and interests

to land which derives from their traditional laws and customs. Native title rights can

include rights to: live on the land, access the land for traditional purposes, protectimportant places and sites, collect food and medicinal resources from native plants,

hunt and fish, teach traditional law and customs, and to have input into land use

practices and development planning. Native title can be negotiated in two ways;

through a Native Title Claim (applications and determinations), or through an

Indigenous Land Use Agreement (ILUA).

An ILUA is an agreement between a native title group and other parties who use or

manage the land and waters. The ILUA process allows for negotiation between

indigenous groups and other parties over the use and management of land and water

resources, and the ability to establish a formal agreement. An ILUA is binding once it

has been registered on the Native Title Tribunals Register of Indigenous Land Use

Agreements.

The land within the mining leases and exploration licences currently held by

Centennial Newstan are covered by an ILUA (NIA2000/001) which was entered into

on 28 May 1999 by Wonnarua Nation Aboriginal Corporation and Powercoal Pty Ltd

(since acquired by Centennial). As such, Centennial is bound by the terms of theILUA.

5.3 New South Wales Legislation

5.3.1 Environmental Planning and Assessment Act 1979

The development assessment and approval system in NSW is set out in Parts 4 and

5 of the EP&A Act. A Planning and Assessment Commission determines applications

for State significant development. Schedule 1 of SEPP (State and Regional

Development) 2011 identifies development which is classified as State significant.

The Project is a State significant development listed under Schedule 1 of SEPP

(State and Regional Development) 2011 as it is development for the purpose of

mining related works and has a capital investment value greater than $30 Million. As

such Part 4 Division 4.1 of the EP&A Act applies.


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5.3.2 Other NSW State Legislation

The provisions and requirements of additional NSW legislation will be considered and

addressed within the EIA. A summary of potentially relevant Acts is included in Table

7.


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Table 7 - Summary of NSW Legislation Relevant to the Project

Act Relevance to the Project

Protection of theEnvironment Operations

Act 1997 (POEO Act)

The POEO Act is administered by the OEH and requireslicensing for environmental protection, including waste

generation and disposal, water, air and noise pollution.

Under the POEO Act, an EPL is required for premises at

which a scheduled activity is conducted. Schedule 1 of the

POEO Act lists activities that are scheduled activities for the

purposes of the Act. The proposed Project is a scheduled

activity and will require a new EPL to support the Project.

Mining Act 1992 Centennial Newstan and Centennial Mandalong currently

hold mining leases over the Project Area. No new mining

leases are required to support the Project.

Water Act 1912 The Water Act 1912 is administered by the NSW Office of

Water (NoW) and contains approval requirements for some

developments to protect watercourses from any adverse

effects resulting from works within or in proximity of these

watercourses.

National Parks and

Wildlife Act 1974 (NPW

Act)

The National Parks and Wildlife Act 1974 (NPW Act) is

administered by the National Parks and Wildlife Service

(NPWS) and provides for the establishment, care, control,

and management of National Parks, historic sites, nature

reserves, State conservation areas, Aboriginal areas, and

State game reserves. An archaeological assessment will

be conducted as part of the EIS, which will identify the

presence of any known Aboriginal sites, as well as

strategies for the management and mitigation of any

identified impacts on such sites.

Heritage Act 1977 The purpose of the Heritage Act 1977 (Heritage Act) is to

protect and conserve non-indigenous cultural heritage,


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including scheduled heritage items, sites, and relics. The

Heritage Act is administered by the Heritage Branch within

the OEH.

The archaeological assessment will be undertaken as partof the EIS and will identify any items of heritage significance

in the Project Area and recommend appropriate

management strategies if and where required.

Threatened Species

Conservation Act 1995

The Threatened Species Conservation Act 1995 (TSC Act)

provides for the conservation of threatened species,

populations, and ecological communities. The EIS will

identify any threatened species, populations and ecological

communities within the Project Area, as well as strategies

for the management and mitigation of impacts where

required.

5.3.3 State Environmental Planning Polic ies

The following State Environmental Planning Policies (SEPPs) will be considered as

part of the EIS for the Northern Coal Services - Coal Logistics Project:

SEPP (State and Regional Development) 2011;

SEPP (Mining, Petroleum Production and Extractive Industries) 2007;

SEPP 33 Hazardous and Offensive Development; and

SEPP 44 Koala Habitat Protection.

5.4 LOCAL ENVIRONMENT PLANS

5.4.1 Lake Macquarie Local Environment Plan

The Newstan Colliery surface site is located on land zoned 4(1) Industrial (Core)

and 9 Natural Resources. The Awaba Colliery surface site is located on land zoned

9 Natural Resources. The Mandalong Mine Cooranbong Entry Site is located on

land zoned 4(1) Industrial (Core), 7(2) Conservation Secondary and 9 Natural


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Resources. The Mandalong Mine private haul road and the LMCC owned

Hawkmount Quarry located on land owned 9 Natural Resources.

Development for the purposes of a mine is permissible with development consent

under the Lake Macquarie LEP 2004 within zones 1(1), 4(1) and 9 however isprohibited within all other zones. Despite the Lake Macquarie LEP 2004 prohibiting

mining within certain zones, the Mining SEPP prevails over the Lake Macquarie LEP

2004 to the event of any inconsistency. Any zoning provision in the LEP that would

otherwise operate to prohibit the project therefore has no effect in this case.


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6.0 KEY ENVIRONMENTAL ISSUES

6.1 Identification of Environmental Issues

The key project-related issues warranting detailed assessment in the EIS will be

identified through:

The existing environmental context of the Project Areas and surrounding

locality;

The legislative framework applicable to the Project (discussed in Section 5.0);

A preliminary environmental risk assessment, which has already been

completed (see Section 6.1.1);

The outcomes of consultation to be undertaken with government agencies

and other relevant stakeholders; and

Specialist studies completed as part of the preparation of the EIA.

6.1.1 Pre-Project Risk Assessment

A preliminary environmental risk assessment was conducted by Northern Coal

Services in accordance with the Centennial risk management process, with the aim

of:

Identifying those issues relating to the Project that represent the greatest risk

to the business, environment and community; and

Assisting in setting the level of assessment required to address each

identified risk within the EIS.

The issues that were specifically assessed in the risk assessment include:

Flora and fauna

Surface water

Water management

Greenhouse gas

Air quality

Noise

European heritage

Aboriginal heritage

Social and community issues

Visual impacts


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A Risk Assessment report, including a risk register, was prepared to document the

outcomes of the risk assessment, and is attached asAppendix 1.

The risk assessment did not identify any extreme or high environmental issues

relating to the Project.

Two significant issues were identified, relating to the Project including:

Community or social issues as a result of the continued operation and

expansion of coal handling operations or inadequate community consultation

being undertaken; and

Impacts to creeks (creek geomorphology or ecological receptors) or impacts

to water quality above ANZECC or EPL criteria as a result of operating the

surface water management systems at both the Newstan Colliery SurfaceSite and the Mandalong Mine - Cooranbong Entry Site.

Moderate risks relating to the Project identified during the risk assessment included:

Impacts to Aboriginal heritage sites as a result of land clearing required for

the construction of additional surface infrastructure;

Exceedence of noise criteria, air quality criteria or community complaints

regarding noise or air quality as a result of the construction of new

infrastructure at either the Newstan Colliery Surface Site or the Mandalong

Mine - Cooranbong Entry Site; and

Exceedence of noise criteria, air quality criteria or issues with vibration as a

result of coal transportation or the operation of surface infrastructure at the

Newstan Colliery Surface Site or the Mandalong Mine Cooranbong Entry

Site.

A number of low risks were identified including:

Impacts to EECs, threatened flora, threatened fauna or threatened fauna

habitat as a result of land clearing required for the construction of additional

surface infrastructure;

Impacts to European heritage sites as a result of land clearing required for the

construction of additional surface infrastructure;


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Impacts to creeks or water quality as a result of land clearing required for the

construction of additional surface infrastructure;

Exceedence of noise and air quality criteria or community complaints

regarding noise or air quality as a result of the construction of additionalinfrastructure at the LMCC owned Hawkmount Quarry;

Visual impacts or complaints regarding impacts to visual amenity as a result

of the construction of additional surface infrastructure;

Greenhouse gas emissions as a result of coal stockpiling and coal handling

operations contributing to sea level rise and global warming; and

Traffic impacts as a result of increased train movements on the Main Northern

Railway.

6.2 Identified Environmental Issues

The environmental issues identified during the environmental risk assessment, and

how they will be assessed in the EIS is discussed in the sections below.

6.2.1 Flora and Fauna

A terrestrial ecological impact assessment will be undertaken as part of the EIS. The

assessment will involve:

A review of previous ecological investigations undertaken in proximity to the

Project Application Area in addition to database searches within the locality;

Vegetation community survey and mapping;

Targeted seasonal threatened flora surveys;

Fauna Surveys; and

Identification of mitigation or management measures as required.


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6.2.2 Surface Water

A surface water impact assessment will be undertaken as part of the EIS and will

include:

Collection and review of background data;

Assessment of impacts to creeks which could be impacted by the proposed

Project;

Development of a site water balance which includes analysis of any water

quality data to determine the median, 80th and 20th percentile values for

each parameter. The background water quality will be compared to the

ANZECC water quality guidelines;

Analysis of the water quality data to determine any mine water quality and the

potential contaminants associated with any discharge requirements;

Review and update existing monitoring program as required (including any

licensing requirements); and

Determine mitigation or management measures as required.

6.2.3 Greenhouse Gas

A greenhouse gas assessment will be undertaken as part of the EIS. The

greenhouse gas assessment will:

Calculate Scope 1, 2 and 3 greenhouse gas estimations for the activities

associated with the Project in accordance with the requirements of the NGER

Act, and by applying all relevant emission factors and methods including

those documented in the relevant NGERs guidelines;

Assess the significance of greenhouse gas emissions for the Project in

relation to national greenhouse gas objectives, and report on the Projects

greenhouse gas implications in terms of Commonwealth and State

Government policies and protocols; and

Determine mitigation or management measures as required.


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6.2.4 Air Quality

An air quality assessment will be undertaken as part of the EIS to assess potential

impacts on nearby sensitive receptors. This assessment will include:

Identification of an appropriate meteorological data set to utilise for the

Project;

Identification of sensitive receptors;

Identification of all likely dust generating sources (depositional dust, PM10,

PM2.5 and Total Suspended Particulates (TSP));

Establishment of background air quality levels and air quality goals for all

relevant air quality emissions in accordance with relevant guidelines;

Estimation of emission rates primarily using emission inventory data.

Dispersion modelling to predict PM10, PM2.5, TSP and deposition rates at

the closest sensitive receptors; and

Recommendations on mitigation and management strategies.

6.2.5 Noise

A noise impact assessment will be undertaken as part of the EIS and will include:

Installation of noise loggers, where required, at locations representing the

nearest affected residential premises to determine existing background noise

levels and contributors for a period of at least seven days;

Noise measurements to determine sound power levels of all acoustically

significant plant and equipment associated with the Project.

Analysis of noise data with reference to local weather conditions andcumulative impacts;

Impact assessment of the proposed Projects contribution to the noise

environment at the nearest sensitive receptors for day, evening and night time

periods under calm and prevailing meteorological conditions; and

Identification of noise management strategies and mitigation measures, as

required.


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6.2.6 Heritage (Aboriginal and European)

An Aboriginal and European heritage impact assessment will be undertaken as part

of the EIS and will include:

Background research, including:

o Identify statutory requirements relevant to the proposed Project;

o Consultation with the Aboriginal community and other interested

stakeholders in accordance with the Aboriginal Cultural Heritage

Consultation Requirements for Proponents 2010 (OEH, 2010);

o Literature review of previous archaeological studies relevant to the

Project Application Area;

o Search of the Aboriginal Heritage Information Management System

(AHIMS) database;

o Assessment of Aboriginal and European archaeological and cultural

heritage items identified within the Project areas; and

o Baseline inventory of all Aboriginal heritage sites inside the Project

areas.

Field surveys over the Project area; and

Identification of mitigation and management strategies to minimise the

impacts to identified Aboriginal and/or European heritage sites.

6.2.7 Social/Community

A social impact assessment will be undertaken as part of the EIS to identify impacts

of the Project on the community and identify mitigation and management measures

as required.

6.2.8 Waste Management

The EIS will include an assessment of waste management across the site including

management of reject material.


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6.2.9 Visual

A visual impact assessment will be undertaken as part of the EIS.

7.0 STAKEHOLDER AND COMMUNITY CONSULTATION

Centennial will lead the stakeholder and community consultation for the Project. A

detailed stakeholder consultation plan will be developed for the Project, and will

provide a framework to identify and appropriately consult with stakeholders that may

be influenced by or have an interest in the Project. Key stakeholders include:

Government (Commonwealth, State and Local);

Community; and

Mine staff and employees.

Centennial has undertaken extensive consultation with the Office of Environment and

Heritage regarding water management across its operations which will continue

throughout the preparation of the EIS. A stakeholder consultation log will be

maintained as a record of the consultation activities undertaken, and the contents of

this log will be summarised in the EIS.

Consultation to be undertaken as part of the Project will include:

Updates to the Newstan and Mandalong Mine Community Consultative

Committees;

Updates to the LT Creek Sustainable Neighbourhood Group;

Letters informing people of the project;

Project updates provided on the Centennial Coal website;

Project updates provided in the Lakes Mail;

Media releases;

Information sessions where required;

Face to face meetings with landowners and other regulatory and industry

stakeholders where required; and


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A briefing session with relevant government agencies.

Centennial Newstan and Centennial Mandalong maintain a community complaints

and enquiries line which will also be made available to the community for people to

obtain up to date and factual information or make complaints regarding the Project.

8.0 PROJECT JUSTIFICATION

The Northern Coal Services Coal Logistics Project, if approved, will allow for

flexible coal handling arrangements and improved surface water management across

the Newstan Colliery and the Mandalong Mine Cooranbong Entry Sites. The

Project provides an opportunity for Centennial to produce and deliver a range of coal

products suitable for both the domestic and export markets.

Both the surface facilities of the Newstan Colliery and the Mandalong Mine -

Cooranbong Entry Site are located in close proximity to the existing Power station.

Newstan Colliery is directly linked to the Eraring Power Station by private haul road

and the Mandalong Mine Cooranbong Entry Site is linked to the Eraring power

Station by an overland conveyor. The existing infrastructure in place at the Newstan

Colliery and the Mandalong mine Cooranbong Entry Site provides an ongoing

stable supply of coal while reducing the energy demands that would be required forcoal to be supplied from other NSW mining operations. In addition, the ability for

Centennial Newstan to handle and process coal from other Centennial Coal

operations at the Newstan Colliery Surface Site provides a unique opportunity for

Centennial to blend different coal qualities in order to meet supply demands for

different coal products.


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9.0 CONCLUSION

Centennials Northern Coal Services is seeking approval under Part 4 Division 4.1 of

the EP&A Act to undertake and continue a range of coal handling and surface water

management activities across Centennials Newstan Colliery, the Awaba Colliery and

the Mandalong Mine Cooranbong Entry site as outlined within this Briefing Paper. A

detailed assessment of infrastructure requirements, impacts and management

measures required for the Project will be undertaken during the preparation of the

EIS.

This Briefing Paper has been prepared by Northern Coal Services to accompany and

is intended to provide the DP&I, other relevant regulators and the community with a

description of the Project and identify likely key social and environmental issues

associated with the Project to enable the Director-General to issue EARs. The EARs

will be considered during the preparation of the EIS.


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Appendix 1 Environment and Communi ty Broad Brush Risk Assessment


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Coal Logistics Project Enviro

1 of 15

DyademStatureforRiskManagement:

Risk Assessment Title: Coal Logistics Project - Environment and Community Broad Brushed Risk Assessment

Version: 1

Region: North

Stature Risk Assessment No.: 1000074014


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Objectives

The objectives of this Risk Assessment is to identify the environment and community risks associated with the proposeProject and to identify knowledge gaps where further information and/or assessment will be required to support an Environm


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Potential Hazards

The potential hazards for the proposed Northern Coal Services Logistics Project include:

Vegetation clearing required to support additional infrastructure or upgrades to existing infrastructure;

Impacts to water quality;

Noise impacts; Air quality impacts;

Impacts to Archaeological sites;

Impacts from GHG emissions;

Traffic/rail impacts;

Impacts to the existing water management system;

Community/social impacts; and

Visual impacts.


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Scope

This Risk Assessment is a preliminary Risk Assessment aimed to identify knowledge gaps and areas where further asseenvironmental risks associated with this project will not be understood until further and more detailed investigations havshould be reviewed following the completion of the detailed investigations to ensure all environmental risks associatunderstood and are at an acceptable level for the company.


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Risk Assessment Method

Yes/No Method

Yes Workplace Risk Assessment and Control (WRAC)

No Fault Tree Analysis (FTA)

No Safety Integrity Level Analysis t

profil centennial coal

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