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Our Report to the Community HAZELWOOD REHABILITATION PROJECT 12 MONTHS ON

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Our Report to the Community

HAZELWOOD REHABILITATION PROJECT 12 MONTHS ON

From the day after ENGIE Hazelwood closed, those who remained to work on the Hazelwood Rehabilitation Project moved into a completely different world.

Understandably, it has taken time for everyone to adjust to this new world - at times it has been challenging but also very satisfying. This is one of the largest projects of its type in Australia and the biggest ever undertaken by ENGIE.

Everything we do has only one focus - to return Hazelwood to the local community as a safe, stable and sustainable asset for use by generations to come.

At the same time, we acknowledge all those who worked here over 52 years, especially those colleagues who didn’t continue with us after closure on 31 March 2017 and those who have progressively left since then as various projects are completed.

I am extremely proud of the way all our people have committed to the task at hand. The public no longer sees the steam from our chimneys but I can assure you, Hazelwood remains a very busy site. We still have a workforce of 130 employees directly employed by ENGIE and a further 196 contracted employees.

We have a comprehensive closure plan and progressively work through each and every aspect of it. This booklet will give you a snapshot of just a small number of activities completed over the last 12 months but be assured, there have been many more.

With so much activity occurring across both the Station and Mine areas, only four First Aid Treatments have been recorded across our site for the Project. All our employees and contractors must be congratulated on this outstanding health and safety performance.

An important part of our Project is to keep our community informed. Be assured we remain committed to doing this and also to listening to you. We are also working closely with our stakeholders and regulators.

The rehabilitation of Hazelwood is a first for this community. I can assure you it is a responsibility we are committed to making work.

Our vision is to set a benchmark - one which other coal-fired power generators can follow. But most importantly, Hazelwood must be something the Latrobe Valley community can use and enjoy long into the future.

Tony Innocenzi,

Hazelwood Rehabilitation Project Director

A lasting legacy

A LASTING LEGACY

DECOMMISSIONING ON TRACK

REHABILITATION MOVING AHEAD

DECOMMISSIONING OF MINING EQUIPMENT

CONVEYOR BELTS REMOVED

UNDERGROUND SITE INVESTIGATION

SAFETY REMAINS A PRIORITY

PIPELINE PROJECT SAFELY COMPLETED

CHIMNEYS SAFE AND READY FOR DEMOLITION

AUDIT OF HAZARDOUS MATERIALS

HAZELWOOD HAS A COMPREHENSIVE FIRE PROGRAM IN PLACE

RAW COAL BUNKER CLEANED

MAKING A DIFFERENCE IN THE COMMUNITY

REDUNDANT EQUIPMENT PUT TO GOOD USE

COMMUNITY ENGAGEMENT CONTINUES

Decommissioning activities in the Hazelwood Power Station are on track to be completed before the end of May this year.

This project, which started the day after closure last year, is being managed in two phases. Phase 1 finished in June 2017 with Phase 2 starting in August 2017.

Hazelwood Rehabilitation Project Station Director, Wayne Buckley, said employees and contractors should be congratulated on completing these activities on time and importantly, safely.

“We have only had one minor first aid treatment since the Station decommissioning project started which is a credit to everyone involved,” Mr Buckley said.

“Our systematic approach to decommissioning in the Station ensures our site is secure while we manage ongoing security, clear buildings and organise salvage activities.

“We are committed to decommissioning the Power Station safely, ensuring the facility is left for demolition to be carried out in a safe and environmentally responsible manner.”

Phase 1 activities included the de-energising of major plant and equipment and then extensive cleaning to make everything safe. This work included cleaning of the large boilers and the crusher house.

The overhead cables which once sent power from Hazelwood Power Station

to the AusNet Switchyard for distribution to the grid were also disconnected. More than one million litres of oil was safely removed from the site.

Phase 2 activities have seen mechanical isolation of plant to remove all energy sources as well as disconnection of all electrical supplies within the Power Station.

In addition, removal of rubber belting over a metre wide and 450 metres long has been removed from the rising conveyors. This systematic approach ensures the facility will be left safe before demolition.

Critical infrastructure such as fire services equipment remains in place and the site is monitored and patrolled by our security services.

Mr Buckley said an expression of interest for site demolition works was issued prior to Christmas with pre-qualification and shortlisting of tenderers planned in the first quarter of this year.

“After decommissioning is completed, we move into the next stage of the project which is called ‘awaiting demolition’. This will take about two years and includes consultation with the regulators around the final condition of the site and the tendering of contracts for work during the demolition stage.

“All work, including removal of hazardous substances such as asbestos, is carried out in conjunction with regulators to ensure health and safety for employees and the community is a priority.”

Decommissioning on track

We would like a rehabilitated Hazelwood site

to provide more job opportunities in agriculture,

food processing, art and manufacturing.

Business leader, November 2017.

Ten hectares along Hazelwood’s Eastfield Eastern Batters have been rehabilitated as part of the ongoing Hazelwood Mine Rehabilitation Project.

This area was completed at the end of 2017 by excavating the coal batters back to a slope of 3 to 1 then covering it with clay, before spreading topsoil over the clay and seeding the entire area. Grass has already sprouted and this can be seen from the Princes Freeway, Morwell.

Also in 2017, the batters were excavated in the Knuckle area to allow a new fire services pipe to be installed, along with the establishment of a Toe Weight, using clay from the Northern Batters.

Rehabilitation plans for 2018 include continuing work along the Eastern Batters towards Morwell where it will eventually join up with the Eastfield Northern Batters which were rehabilitated before closure.

In the following years, rehabilitation will progress around the perimeter of South Westfield Northern Batters and into the Westfield. This rehabilitation work will be completed down to the full pit lake level by start of fill scheduled for 2021. A rehabilitated Hazelwood must be a usable

resource - some recreational and some farming.

Community member, November 2017.

Rehabilitation moving ahead

To see our rehabilitation activities visit: www.engie.com.au/media/videos

Decommissioning of the Large Mining Equipment (LME) in the Hazelwood Mine was a major project with the three coal winning dredgers and a mobile slewing conveyor moved to their final resting place.

This specially built area was used for decommissioning work and will also be where the LME is demolished.

The clay capped park-up area on 5 Level within the Mine houses Dredgers 9 and 10, together with Mobile Slew Conveyor S96, while Dredger 11 is parked nearby on the level below. The areas have been fenced off with an exclusion zone established around each machine for safety reasons.

The equipment was thoroughly cleaned, made safe and fully decommissioned, ready for demolition.

It underwent extensive cleaning to remove accumulated coal and debris. In addition, industrial cleaning was undertaken to target areas where excessive oil and grease residue had built up. Oil and grease removal was also safely completed.

Decommissioning of mining equipment

We want an assurance that a future lake is a usable resource

for the community and is not a polluted water body.

Community member, November 2017.

Visit our gallery to see photos of activities in the mine: www.engie.com.au/hazelwood-closure/photo-gallery

A project removing eight conveyor belts, snaking from the Hazelwood Raw Coal Bunker to the Power Station, was recently completed at Hazelwood.

The rubber and steel rising conveyors, over a metre wide and each 450 metres long, transported coal from the Mine into the Raw Coal Bunker, then to the Crusher House, before finishing in the Station bunkers ready to heat the boilers.

Danny Kearns from local contractor Belle Banne oversaw the project, which took several months.

“All the work was done manually with the employees accessing the conveyors from walkways either side,” Mr Kearns said. “Specialised equipment was used for this slow and meticulous process as each conveyor belt weighs 10 tonnes.”

The thick rubber belt contains steel rods needed to strengthen this piece of infrastructure, vital for reliable transportation of coal and overburden.

As each section was removed, it was wound onto a 20 tonne belt winder, similar to a large cotton reel.

“The most important part of the process was holding back the force so there was no uncontrolled movement,” Mr Kearns said. “Safety was paramount.”

Conveyor belts removed

The Latrobe Valley is struggling economically

so you must ensure Hazelwood has a commitment

to use local contractors.

Community member, November 2017.

A report on a detailed underground site investigation at Hazelwood Power Station is expected by April 2018.

The two-month investigation was completed in mid-December 2017. It will help to gain a better understanding of the soil and groundwater conditions under the Power Station block in order to assess potential risks to the environment.

Specialist contractor ERM drilled 76 bore locations around the power block - 60 of these were soil bores and a further 16 were initially soil bores then converted to monitor ground water.

There were also two sediment samples and one surface water sample taken as part of the investigation.

Hazelwood Environmental Manager Regulatory, Ross Brooker, said the Power Station concrete foundations were poured over 50 years ago.

“With 50 years of operational activities on the site, it is important to understand what, if any, impacts may have occurred sub surface under these foundations, therefore sample bores were sunk by drilling through the thick concrete,” Mr Brooker said.

“Samples taken were sent away for detailed analysis by environmental scientists. We are specifically looking for anything that might have leaked from any plant and equipment including oils, fuel and chemicals that could have contaminated the soil.

“This will help inform decisions to be made for the demolition phase of the Hazelwood Rehabilitation Project and also identify any site remediation activities required post demolition.”

This is the first phase of the detailed site investigation program for the Hazelwood Rehabilitation Project with further studies required post demolition on the power block and also on the remaining lands surrounding the Mine operational areas.

The project is being overseen by EPA appointed auditor, Darryl Strudwick from AECOM.

Underground site investigation

The people of the Latrobe

Valley want to have a say

in Hazelwood’s future.

Community member, June 2017.

Safety remains at the forefront of all activities associated with the Hazelwood Rehabilitation Project.

OHS Manager Hazardous Materials and Substance, Shane Cane, said the well-being of employees and contractors on site was paramount in every task or activity undertaken.

“Even though we are no longer an operating Power Station and Mine and the risk profile has changed, risks still remain and continue to evolve,” Mr Cane said. “It is important that everyone is aware of these risks and remains vigilant.”

Since the Project started on 1 April 2017, the total reportable injury frequency rate is the lowest ever recorded across the site with four first aid treatments over 800,000 man hours. It has been 652 days since the last lost time accident (LTA) on site.

Mr Cane said because the risk profile across the site had changed, it was also necessary to review all OHS policies.

“Our Safety Management System Framework was completely rewritten to suit the significant changes to site and reflect the Project activities,” he said.

“All documents and procedures have been reviewed to ensure they remain relevant to the Project.

“We now have three Safety Coordination Plans - Station decommissioning, Mine decommissioning and Mine Rehabilitation.

“These plans are reviewed every three months against the risk register together with any incidents that may have occurred. This ensures what we are doing meets the requirements of the regulators and importantly, keeps our people safe.”

The Safety Risk Register was rebuilt to reflect the changed risks.

Mr Cane said two important safety initiatives, ‘Fresh Eyes’ and ‘Safety Walks’, were reviewed and subsequently merged to ensure all safety components were captured. To date, 550 Safety Walks have been completed across the site.

OHS forums are held monthly to review or highlight any incidents in addition to the daily health and safety activities.

“A new induction program for employees and visitors was put in place,” Mr Cane said. “This ensures everyone understands their obligations while accessing this ever changing site.”

Safety remains a priority

I don’t want the site to become a burden

on the community in the future.

Community member, September 2017.

The 2017 Knuckle Pipeline Realignment Project involved a total of approximately 7,000 man hours over two months and was achieved without injury.

The Knuckle area is the section of the Mine visible from the Princes Freeway on the outskirts of Morwell.

The project was a major rehabilitation activity with these pipelines forming part of the water supply to the Mine pipeline network for use by Fire Services and Operational Water Services. The dirty water and artesian pipeline mains are integral to maintaining Mine water supply to the pipeline network and Mine dewatering capability.

The realignment of these assets was required to allow the progression of the Overburden System into the Knuckle area as part of the Mine Rehabilitation Project. Work included realignment of 500 metres of 750 nominal diameter Dirty Water Pipeline and the realignment of 500 metres of 600 nominal diameter Artesian Pipeline.

Once the pipeline project was completed, the overburden stacker known as TS2 gradually moved its way from the south Eastfield Southern Batters dump towards the Knuckle where it covered the coal and added overburden to assist the long term stability of the batters.

Pipeline project safely completed

You must ensure the integrity of the local

waterways is maintained.

Community member, September 2017.

A routine maintenance project on the eight Hazelwood chimneys was safely completed after closure.

The year-long project ensured the integrity of the 137 metre high structures.

Mine Rehabilitation Project Station Director, Wayne Buckley, said the routine inspection and maintenance focussed on maintaining the integrity of the chimneys, ready for demolition.

The project started in January 2016 with an inspection by specialist contractor, Absafe, whose employees are highly trained and skilled in high rope access work. A scope of work for repairs was then developed, based on the inspection results and completed in early 2017.

“Once the closure of the Station was announced and the business objectives changed, this project was reviewed and re-scoped,” Mr Buckley said.

Throughout the project, WorkSafe inspectors were on site for regular ‘Safety Walks’ which included updates on the chimney work.

Mr Buckley said based on expert engineering assessments, all work was completed and with existing controls, ensured the integrity of the chimneys would be maintained until their planned demolition.

Construction of the chimneys started with the rest of the Station in the 1960s. The most visible part of the Station, they have a diameter of 11 metres at the base, 7.4 metres at the top and are constructed as self-supporting steel reinforced concrete with a lining of fire bricks.

Mr Buckley said while the chimneys were a familiar sight in the Latrobe Valley, they had exceeded their design life by many years.

“They were built for the Station’s original 30-year life,” he added. “Work from now will be around care and maintenance, ensuring they remain safe in a suitable condition until their demolition.”

Chimneys safe and ready for demolition

We want ENGIE to use materials from

the site to build an iconic structure

with the names of all employees

and include their contribution.

Community member, November 2017.

Get a bird’s eye view of these giant structures: www.engie.com.au/media/videos

Hygienists from specialist auditors, Edge Group, have been on site at Hazelwood for six months, conducting a Hazardous Materials Audit as part of the Division 6 regulations.

The audit report is expected by the end of the first quarter this year.

A Division 6 audit is an invasive audit, which includes the identification of all hazardous building materials, including asbestos and Polychlorinated Biphenyls (PCBs), prior to demolition. It is undertaken to quantify hazardous materials that will need to be removed prior to demolition works.

OHS Manager Hazardous Materials and Substances, Shane Cane, said the hygienists initially carried out an assessment of Hazelwood’s hazardous materials register versus their inspections.

“Then we worked together preparing a strategy for auditing the entire site, both Station and Mine,” Mr Cane said. “They will be on site for another month to complete the audit.

“It is a lengthy process to identify and quantify all hazardous materials on site so a licensed demolition contractor can remove it all as part of the demolition.”

The Edge Group is specialised in auditing large industrial sites in accordance with the hazardous materials regulations.

Audit of hazardous materials

The community should be safe

from any asbestos contamination.

Community member, September 2017.

ENGIE Hazelwood was well prepared for the 2017-18 fire season with a comprehensive program in place to reduce the risk of fire.

Hazelwood’s Mine Production Manager, Rob Dugan, said fire reduction work and maintenance was undertaken throughout last year however these activities moved to another level prior to summer with a “renewed focus” on procedures, training and equipment.

“All our Mine staff and contractors are trained as ‘First Responders’,” Mr Dugan said.

“This means we have a well-trained and active response unit on site.”

All Mine staff and contractors undertake training on an annual basis.

ENGIE and the CFA conducted training exercises on site last year to ensure CFA personnel are familiar with both the Mine and Station. These are planned again this year.

“Every Mine vehicle is fitted with a fire extinguisher and 2x30 metre hoses with branch, which can be connected to any hydrant (which is CFA compliant) on our extensive pipe network,” Mr Dugan said.

More than 120 kilometres of fire service pipe network is situated in and around the Mine. Other initiatives include extensive grass slashing, and establishing and maintaining fire breaks along with a weed and grass eradication within the Mine, using helicopter spraying.

There are now four six-wheel drive articulated water tankers on site, each carrying 30,000 litres of water. Supporting these large tankers are two ex-CFA tankers with a capacity of 3,000 litres.

Employees regularly patrol the Mine with Portable Thermal Imaging cameras. This efficient diagnostic technology allows them to instantly detect any hot areas in and around the Mine. In addition to general surveying for excessive heat, the cameras are used to check previous areas of interest to ensure they remain benign.

The portable cameras are supported by Forward Looking Infrared (FLIR) cameras mounted on permanent fixtures to monitor the Northern and Southern Batters.

Mr Dugan said on days of high temperatures, the extensive water spray system within the Mine was regularly turned on in accordance with applicable policies and procedures, in an effort to reduce the risk of a significant fire. These sprays are also regularly used for dust suppression.

“An Emergency Command Centre is set up on days of extreme fire risk,” he said.

“Since closure, the fire risk has significantly reduced in as much as fewer vehicles are travelling across coal surfaces, and most plant and equipment is no longer operating.

“However the current procedures and measures in place for days of high, very high, severe and extreme fire danger have remained at the same high level as when it was a fully operational Mine.”

It is a great comfort to

Latrobe Valley people to see

your fire preparedness initiatives.

Community member, November 2017.

Hazelwood has a comprehensive fire program in place

To see our fire preparedness activities visit: www.engie.com.au/media/videos

The Hazelwood Slot Bunker (HSB) once stored more than 25,500 tonnes of raw coal to supply the Hazelwood Power Station’s eight operating units.

It was one of the many large structures at the Station decommissioned by Hazelwood’s coal and ash employees.

Mine Decommissioning Project Manager, Dave Baxter, said prior to the Station’s closure on 31 March 2017, planning was implemented to ensure that only the required quantities of coal were delivered to the raw coal bunker.

“During the closure process involving the winding down of the Station’s generating units, as much coal as practically possible was extracted out of the HSB,” Mr Baxter said. “However residual coal remained within the HSB, requiring removal as part of the decommissioning process.”

The cleaning of the HSB’s three 8,500 tonne capacity slots was a major task with significant amounts of coal hung up and accumulated in inaccessible areas across each slot.

Mr Baxter said access was difficult and the process for removal of the coal was very time consuming.

“While every effort was made to extract all of the coal from within the HSB by closure, the residual amounts remaining were certainly a challenge to remove,” he said.

When the wash-down was completed, the HSB underwent further decommissioning activities ready for demolition of the asset.

The cleaning of the crusher houses in the Station was another major project completed safely, removing built-up pulverised fuel and coal dust to mitigate any fire risk.

Raw coal bunker cleaned

People living close to Hazelwood don’t

want any dust emissions from the site.

Community member, June 2017.

The Hazelwood Rehabilitation Project continues to support the local community through donations to Gippsland organisations and projects.

This year, the Project has allocated $250,000 to the community, bringing its total contribution in more than 20 years to $14.2 million.

ENGIE in Australia Manager Corporate Social Responsibility, Simon Klapish, said this year, the company would concentrate its CSR on education and youth development.

“This includes areas of social disadvantage that impact learning, programs designed to extend school attendance, reduce delinquency, improve educational access and support learning,” Mr Klapish said.

“In particular, we continue our relationships with Major Partners FareShare, Operation Flinders Foundation, The Ice Meltdown Project (non-residential drug rehabilitation programs), Gippsland Power Football Club’s youth development program and Gippsland Swimming.”

FareShare currently provides over 87,000 meals per year to vulnerable families and individuals suffering food insecurity across the Latrobe Valley and Gippsland with meal distribution through 13 local agencies.

The Operation Flinders Latrobe Valley Partnership continues to assist 20 ‘at risk’ young people each year to make positive changes in their lives. This is a partnership with the Rotary Clubs of Moe, Morwell, Hazelwood, Traralgon and Traralgon Central, plus the Flexible Learning Option Campus of Kurnai College, and Victoria Police.

The Ice Meltdown Project in Drouin assists people wanting to kick the ice habit to do so without the need for expensive residential programs.

YOUNG FOOTBALLERS SHINE

Gippsland Power Talent Manager, Peter Francis,

attributes much of the success and growth

of the regional TAC Cup club to the support

from ENGIE in Australia.

“The company has supported us for 22 years,

helping us grow into the professional and

competitive organisation we have become,”

Mr Francis said.

The logistics of bringing players from

throughout Gippsland together to train

and play is always a challenge. While the

club headquarters are based in Morwell,

competitors travel across the state

which in itself is a costly exercise.

The club fields an under 18 boys’ side in

the TAC Cup competition, a women’s team

in a nine-match competition and an under

16 boys’ team that plays three matches.

Over the years, many of the Power boys

have made the progression to AFL level.

After the first women’s competition last year,

two Power players were drafted by the

Collingwood AFLWL club.

Mr Francis is excited about this year’s

competition. “This is probably our strongest

group in the TAC Cup competition since

the 2003-4 season,” he said. “The bottom

age players are particularly strong.

“Our girls and under 16 boys are

also expected to be really competitive.”

ENGIE must ensure that any community

engagement is just not ticking the box.

Community member, March 2017.

Making a difference in the community

An engine for the Walhalla Goldfields, a portable water pump for the CFA, redundant fire fighting equipment for Australian racetracks and chemistry equipment for local schools.

These are just some of the donations the Hazelwood Rehabilitation Project has made to community and not-for-profit groups since it closed on 31 March 2017.

A D348 Caterpillar diesel engine, once used in the Hazelwood Mine, will have a new life carrying passengers along the Walhalla Goldfields Railway. It is being used for the 10 Class Diesel Hydraulic as part of its restoration.

The MK 500 pump was donated to the Newborough Fire Brigade. It is the only pump of its kind in the Latrobe Valley CFA and will help the fire-fighters replenish their water tanks when fighting fires in remote areas.

Multiple large scale dry chemical fire extinguishers and mobile foam carts, once housed in the Station, were donated to Racesolutions Motorsport - a diverse group of volunteers committed to the provision of medical and trackside services at all levels of motorsport events.

Redundant equipment from the Hazelwood Chemistry Laboratory has been donated to Kurnai College in Churchill, Traralgon Secondary College, Lavalla College in Traralgon and Hazelwood North Primary School.

Project Director, Tony Innocenzi, said it was gratifying that this equipment, along with many other donations, would assist these groups and schools.

“We understand how difficult it is to raise funds and are pleased this equipment, no longer required, is now being put to good use,” Mr Innocenzi said.

Redundant equipment put to good use

The community must have a say in the future use of the site.

Community member, November 2017.

Read more about our support in the community: www.engie.com.au/hazelwood-closure/community-support

The Hazelwood Rehabilitation Project recognises community involvement in its rehabilitation plans is crucial.

Its extensive engagement activities will continue this year with three community meetings planned, two business breakfasts, a secondary school forum, focus groups and a number of smaller information displays throughout the Latrobe Valley.

The Project Team released an engagement plan last year titled ‘Hazelwood. Be part of our future’ which demonstrates how it will effectively engage with the community and stakeholders.

Project Communications Manager, Lauren Carey, said the aim was not for a “tick the box” approach but to encourage timely, genuine and transparent two-way engagement with a clear purpose and meaningful participation.

“Regular community engagement by the Project is not only a requirement of the Victorian Government and associated regulators but also forms part of ENGIE in Australia’s ongoing commitment to engage positively and constructively with the community,” Ms Carey said.

“The scope and nature of the engagement requirement dictates that this plan is regularly reviewed and updated to reflect developments and changes that will inevitably emerge in the months and years ahead.”

Ms Carey said while this year’s stakeholder engagement program contained a number of major opportunities for the community, regular updates and information on the Project could be found on the website.

“We have firm goals and principles behind our engagement which underpin everything we do,” she said.

“I can assure you we are genuine in our efforts to engage early and often and importantly, will listen to the views, feedback and suggestions from our community.

“We understand the important role Hazelwood has played in the Latrobe Valley for more than 52 years and that our community has an investment in its future.”

Ms Carey said all community events would be extensively advertised through the Latrobe Valley Express, on commercial radio and on the ENGIE website.

If you want to join the conversation or find out about our activities, you can be included on the Hazelwood Rehabilitation Project stakeholder database to receive regular Project updates. Contact us on:

Community engagement continues

Thank you for your pro-active level of engagement.

Community member, November 2017.

(03) 5135 5000

[email protected]

www.engie.com.au

Meet the people behind the Hazelwood Rehabilitation Project: www.engie.com.au/hazelwood-closure/engagement-plan

engie.com.au