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ASSESSMENT REPORT

STRATFORD MINING COMPLEX

Bowens Road North Coal Mine – Extension of Mine Life DA 39-02-01 MOD 5

1 BACKGROUND Stratford Coal Pty Limited, a subsidiary of Yancoal Australia Limited (Yancoal) operates the Stratford Mining Complex, approximately 11 kilometres (km) to the south of the village of Gloucester in the Gloucester Valley (see Figure 1).

Figure 1: Regional Location

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The Stratford Mining Complex comprises the Stratford and Bowens Road North coal mines. The Complex is surrounded by a range of agricultural land uses, and native bushland located principally on the ridge lines of the Gloucester Valley. The villages of Stratford and Craven are located to the west and southwest, and house a combined population of approximately 400 people. Mining takes place under two Ministerial development consents which together allow for the extraction of up to 3.1 million tonnes per annum (Mtpa) of run-of-mine (ROM) coal. The Bowens Road North mine is currently permitted to extract up to 1.0 Mtpa of ROM coal, and transport it to the Stratford mine for processing. The Stratford mine is currently permitted to: produce up to 2.1 Mtpa of run of mine (ROM) coal; receive up to 1.0 Mtpa of run of mine (ROM) coal from the Bowens Road North mine and 3.0 Mtpa of

ROM coal from the Duralie mine for processing; process up to 3.4 Mtpa of coal; and rail up to 4.6 Mtpa of coal to domestic and export markets. Since 1995, mining has been completed in the Stratford Main, Roseville, Roseville Extended and Parkers/Bowens Road West pits. These pits have either been filled and rehabilitated or are being (or are proposed to be) used for waste rock and water storage as part of Stratford’s ongoing mining operations. Until October 2013 mining was undertaken in two pits - the Roseville West pit and the Bowens Road North pit. In September 2013, in response to reduced coal prices, Yancoal scaled back its mining operations by ceasing mining operations in its Roseville West pit and placing it on care and maintenance. Until recently, the complex was only producing about 1.2 Mtpa, which was further reduced with the cessation of operations in the Roseville West pit. Yancoal has continued mining operations in its remaining Bowens Road North pit. The existing approval to undertake mining operations on the site is scheduled to lapse at the end of 2013. However, coal extraction rates have been lower than originally anticipated and Yancoal will be unable to complete extraction of this coal resource until some time in 2014. Yancoal is also currently seeking approval to extend operations at Stratford to produce up to 2.6 Mtpa of ROM coal from an additional resource of 21.5 Mt of coal over an 11-year project life. The proposal involves three new mining areas - the Avon North Open Cut, the Stratford East Open Cut and an extension of the Roseville West Open Cut. This proposal, known as the Stratford Extension Project, would combine all operations undertaken at the Stratford Mining Complex under a single development consent and lead to the surrender of both the Bowens Road North and Stratford consents. The determination of this application before the end of 2013 is likely, but not certain, and so Yancoal has sought to modify its Bowen Road North mine development consent in order to provide it with assurance of continued approval to undertake mining operations on that site during 2014. Figure 2 shows the extent of the existing mining development, as well as the components of the proposed Stratford Extension Project. 2 PROPOSED MODIFICATION Yancoal has lodged a modification application seeking approval to conduct mining operations at the Bowens Road North mine until the end of 2014. 3 STATUTORY CONTEXT 3.1 Modification Yancoal is seeking approval to modify the existing development consent under section 75W of the Environmental Planning and Assessment Act 1979 (EP&A Act). The development consent for the Bowens Road North mine (DA 39-02-01) was granted under Part 4 of the EP&A Act in relation to an application for State significant development. Clause 8J(8) of the Environmental Planning and Assessment Regulation 2000 requires modifications of such development consents to be carried out under section 75W of the EP&A Act. The effect of section 75W is continued for such consents by clause 12 in schedule 6A of the Act. The Department is satisfied that the proposed modification to extend mining operations at the Bowens Road North pit is a relatively minor variation of the existing approved development. The proposed modification involves no changes to the total tonnage of coal produced by the mine or its mining methods, employment or applicable environmental standards. It is appropriate to characterise the proposed changes as a modification to the existing development consent.

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Figure 2: Bowens Road North Pit and Proposed Stratford Extension Project

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APPENDIX A

NOTICE OF MODIFICATION