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Short Term MPL – Western Area

PCCG Meeting

3rd December 2008

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Background

• SA Government recognises Penrice operations provide important economic benefits to the State

• No current viable alternatives in SA to high grade limestone

• Short term constraints to overburden storage options (schist and aggregates)

• Long term overburden storage options yet to be resolved

• Important that the process of consultation on issues & MOP/MARP continues

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Why is the MPL needed now?

• Removal of overburden schist is required in the short term to maintain supply of L/Stone to Osborne & ABC

• PIRSA has concluded that there is an urgent short term need for additional overburden storage area

• Short term mine operational constraints:– OB removal rates much greater than OB aggregate sales– Current in pit storage already used for low grade limestone– Production constraints (mining cycle, grade control)– Crusher location– Water storage

• Unreasonable to expect Penrice to store schist in pit in short term prior to mining– Substantial rehandling costs $4-5 million– Will add to the constraints for operation of pit– Need space for LG limestone storage– The impacts of storage on an MPL managed

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Goals for interim arrangement

• Investigation and justification of long term overburden storage options to be completed.

• Discussion and resolution of environmental issues including visual impact of current operations needs to be concluded.

• Environmental performance of current operations to be improved

• Development of agreed MOP/MARP for whole site • Ongoing compliance monitoring• Supply of Osborne Stone to ABC and Osborne must

continue

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How will goals be achieved?

• Provide Penrice with limited MPL

• Setting rigorous regulatory framework, conditions on all tenements, rehabilitation bond.

• Ongoing operation of community consultation

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PIRSA’s proposal

Will be limited compared to original application:

• reduced area (south side of Jaeckeli Creek only, approx ½ original area)

• limited term (end September, 2009, usually for minimum of 7 years)

• limited volume (2 million tonnes, original application was for about 8 million tonnes)

Will also revise conditions for existing MPL and ML

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Reduced Area

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Proposed licence conditions

• First schedule – general conditions for all licences

• Second Schedule – environmental outcomes to be achieved– Some specific limitations and requirements

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First schedule

• Limits activities to “overburden storage”• Requires an approved MARP to operate• Requires immediate and annual reporting of

compliance• Allows independent auditing of compliance• Requires $20 million public liability insurance• Ensures public access to key documents

(MARP and MARCR)

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Second Schedule- Environmental Outcomes

• Visual amenity– final rehabilitated landform and vegetation must

“integrate and harmonise” with surrounding landscape

– Must be self sustaining– Link to Barossa Development Plan

• Noise, dust– no nuisance • Unauthorised access – prevent injuries to

public • Protection of aboriginal heritage

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Second Schedule- Environmental Outcomes (Contd)

• Native vegetation– No clearance in Jaeckeli Creek– Must develop a management plan to

enhance Jaeckeli creek habitat

• Soil- must preserve all existing topsoil

• Stormwater - must manage runoff

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Second Schedule- other conditions

• Limits total overburden storage to 2 million tonnes

• Validates PCCG

• Must address public complaints

• Requires that a study of overburden storage options be completed within 3 months

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Next Steps• MPL offer subject to receiving and considering advice from

Planning Minister (expected week commencing 15 Dec)• Mining Minister decides whether to grant MPL • Penrice have requested this happen before Christmas to permit

commencement of operations early 2009• If MPL granted, Penrice must, before operations commence:

– prepare MARP for the site (criteria to measure outcomes)– gain MARP approval from PIRSA – pay rent in advance– pay rehabilitation bond

• Review of MOP/MARP for whole site will continue – MOP reviews required by Mining Act– MARP review provided by license/lease condition

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Any questions?