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REPORT TITLE Annual Review

PREPARED BY Integra Mine Complex

DATE March 2012

DISTRIBUTION

Integra Coal Operations Pty Ltd (3)

NSW Department of Resources and Energy (1)

NSW Department of Planning and Infrastructure (1)

NSW Office of Environment and Heritage (1)

NSW Office of Water (1)

Singleton Shire Council (1)

CCC Members (4)

Name of Mine:

Titles / Mining Leases:

MOP Commencement Date:

MOP Completion Date:

AR Commencement Date:

AR Completion Date:

Name of Leaseholder:

Reporting Officer:

Title:

Signature:

Date:

Integra Mine Complex (comprising Camberwell Colliery (Integra Open Cut), Glennies Creek

Colliery (Integra Underground) and Integra North Open Cut)

CL 357, CL 382, ML 1437, ML 1518, ML 1551, ML 1630, ML 1648-1651, ML 1525, EL 5824,

Sublease of MPL 343

NOC 30/03/2009; UG 02/2009; OC 12/2010

NOC 29/03/2012; UG 03/2015; OC 12/2013

NOC 01/04/2011; OC 01/09/2010; UG 01/01/2011

31/12/2011

Integra Coal Operations Pty Ltd

John Trotter

Environmental Superintendent

30/03/2012

Integra Mine Complex AR 2011

TABLE OF CONTENTS

1. INTRODUCTION 1

1.1 DOCUMENT PURPOSE 1

1.2 HISTORY 1

1.2.1 Introduction 1

1.2.2 Location and Resource 2

1.2.3 Description of Operations 7

1.3 APPROVALS, LEASES AND LICENCES 8

1.3.1 Status 8

1.3.2 Modifications during the Reporting Period 10

1.4 CONTACTS 11

1.4.1 Mine Contacts 11

1.4.2 Support Personnel 13

1.5 ENVIRONMENT POLICY 13

2. OPERATIONS 14

2.1 EXPLORATION 14

2.2 LAND PREPARATION 14

2.3 CONSTRUCTION 14

2.4 MINING 14

2.4.1 Method 14

2.4.2 Progress 16

2.5 COAL PROCESSING 21

2.5.1 Summary 21

2.5.2 Method 21

2.5.3 Processing Plant Residues / Reject Management 22

2.5.4 CHPP Water Handling and Waste Disposal Procedures 22

2.5.5 Monitoring and Maintenance of Containment Facilities 22

2.6 COAL SALES 22

2.7 COAL STOCKPILES 23

2.8 WATER MANAGEMENT 23


2.8.2 Clean Water Management 24

2.8.3 Mine Water Management 24

2.8.4 Water Supply and Use 25

Integra Coal Operations Pty Ltd i


2.8.5 Treated Water 27

2.9 HAZARDOUS MATERIAL MANGAGEMENT 27

2.9.1 Fuel Containment 27

2.9.2 Oil Containment and Disposal 27

2.9.3 Hazardous Materials 27

2.9.4 Explosives 27

3. ENVIRONMENTAL MANAGEMENT AND PERFORMANCE 30

3.1 METEOROLOGICAL 30


3.1.2 Rainfall 30

3.1.3 Wind speed and Direction 31

3.2 AIR QUALITY 31

3.2.1 Environmental Management 31

3.2.2 Environmental Performance 32

3.3 EROSION AND SEDIMENT CONTROL 36


3.3.2 New Controls 37


3.4 SURFACE WATER 37



3.5 GROUNDWATER 40



3.6 CONTAMINATED LAND 40



3.7 THREATENED FLORA 41



3.8 THREATENED FAUNA 41



3.9 WEEDS 42

Integra Coal Operations Pty Ltd ii




3.10 BLASTING 42



3.11 OPERATIONAL NOISE 44



3.12 VISUAL AMENITY AND LIGHTING 47



3.13 ABORIGINAL HERITAGE 47



3.14 NON-ABORIGINAL HERITAGE 48

3.15 NATURAL HERITAGE 48

3.16 SPONTANEOUS COMBUSTION AND ACID ROCK DRAINAGE 48



3.17 BUSHFIRE MANAGEMENT 48



3.18 MINE SUBSIDENCE 48

3.18.1 Management/Monitoring 48

3.18.2 Results 49

3.19 HYDROCARBON MANAGEMENT 49

3.19.1 Objectives and Management 49

3.19.2 Performance 50

3.20 METHANE DRAINAGE & VENTILATION 50

3.20.1 Monitoring 50

3.20.2 Methane Output 50

3.20.3 Methane Level Impacts on Mine Production 50

3.20.4 Methane Re-use 51

3.21 SECURITY AND PUBLIC SAFETY 52

Integra Coal Operations Pty Ltd iii


3.21.1 Management 52

3.21.2 Performance 53

3.22 INCIDENTS AND RISKS 53



3.23 WASTE MANAGEMENT 53



3.24 INDEPENDENT ENVIRONMENTAL AUDIT 55

3.25 INDEPENDENT REVIEW 55

4. STAKEHOLDER RELATIONS 56

4.1 EXTERNAL COMMUNICATIONS 56

4.2 COMMUNITY CONSULTATION 57

4.2.1 Community Consultative Committee 57

4.3 COMMUNITY AFFAIRS 57

4.3.1 Community Newsletter 57

4.4 COMMUNITY LIAISON 57

4.5 MINE LIFE PLANNING 57

4.6 SOCIAL/ECONOMIC CONTRIBUTIONS, DONATIONS AND SPONSORSHIP 58

4.7 EMPLOYMENT STATUS AND DEMOGRAPHY 58

4.8 ENVIRONMENTAL COMPLAINTS 58



5. REHABILITATION 60

5.1 ENVIRONMENTAL MANAGEMENT 60

5.2 ENVIRONMENTAL PERFORMANCE 60

5.2.1 Summary 60

5.2.2 Buildings 62

5.2.3 Native Animal Control 62

5.2.4 Feral Animal Control 62

5.2.5 Rehabilitation Monitoring 62

6.0 PROPOSED MINING ACTIVITIES 2012 63

6.1 MINE DEVELOPMENT 63

6.2 MODIFICATIONS 63

Integra Coal Operations Pty Ltd iv


6.3 ENVIRONMENTAL IMPROVEMENTS 63

Integra Coal Operations Pty Ltd v


TABLES

Table 1 Seams identified in the geological models within the Foybrook Formation 3 Table 2 Approvals, leases and licences 8 Table 3 Integra Open Cut Mobile Plant and Equipment 15 Table 4 Integra Underground Mobile Plant and Equipment 16 Table 5 Underground Mine Progression 17 Table 6 Air Quality Assessment Criteria 31 Table 7 Percentage of Uncontaminated Depositional Dust Gauges 32 Table 8 Annual Average of Insoluble Solids 32 Table 9 Water Monitoring Points for Integra Mine Complex 37 Table 10 Location of Blast Monitors 42 Table 11 Noise Criteria at Sensitive Receptors 44 Table 12 Methane Reuse – 2011 50 Table 13 Summary of Environmental Incidents during 2010-2011 Reporting Period 52 Table 14 Integra Open Cut Waste Streams and Tonnages 53 Table 15 Integra Underground Waste Streams and Tonnages. 54 Table 16 Methods of Communication 55 Table 17 Permanent Employment Levels 57 Table 18 Nature of Complaints 58

Integra Coal Operations Pty Ltd vi


FIGURES

Figure 1 Integra Coal Stratigraphic Sequence 5

Figure 2 Mine Location 6

Figure 3 Mining Leases 7

Figure 4 Safety and Sustainability Organisational Structure 12

Figure 5 Underground Surface Facilities 19

Figure 6 Underground Mining Activities 20

Figure 7 ROM Production and Prime Waste Movement 2010-2011 21

Figure 8 Market Destination and Sales 23

Figure 9 Coal Sales by Coal Type 24

Figure 10 Water Management System 26

Figure 11 Location of Monitoring Points 28

Figure 12 Project Land Plan 29

Figure 13 Monthly Rainfall 2009-2011 30

Figure 14 Monthly Temperature 2010-2011 31

Figure 15 Average Depositional Dust Gauge Results 2009-2010 to 2010-2011 34

Figure 16 Average TSP over Reporting Period 34

Figure 17 Annual Average HVAS TSP results 2008-2011 35

Figure 18 Average PM10 results over Reporting Period 35

Figure 19 Annual average PM10 results 2008-2011 36

Figure 20 TEOM PM10 Maximum Monthly Reading 2010-2011 36

Figure 21 Methane sent for reuse in Glennies Creek Power Station (Envirogen) 2011 52

Figure 22 Nature of Complaints during Reporting Period 59

Figure 23 Comparison of Monthly Complaints 2009-2011 59

PLATES

Plate 1 Location of Aerial Seeding 61

Plate 2 Progress of Aerial Seeding 62

Integra Coal Operations Pty Ltd vii


LIST OF APPENDICIES

Appendix 1 – Project Approval 08_0101 and 08_0102

Appendix 2 – Notice of Modification

Appendix 3 – Vale Environment Policy

Appendix 4 – Meteorological Data

Appendix 5 - Water Quality Monitoring Data

Appendix 6 – Blast Monitoring Data

Appendix 7 – Quarterly Noise Report Results

Appendix 8 – CCC Meeting Minutes

Appendix 9 – Complaint Summary

Appendix 10 – Summaries and Plans

Integra Coal Operations Pty Ltd viii


Integra Coal Operations Pty Ltd ix

LIST OF ABBREVIATIONS

AR Annual Review

bcm Bank cubic metre

CHPP Coal Handling and Preparation Plant

CCC Community Consultative Committee

DA Development Application

dBL Noise decibels (linear)

dBA Noise decibels (A-weighted)

DPI Department of Planning and Infrastructure

DRE Department of Resources and Energy

EA Environmental Assessment

EC Electrical Conductivity

EIS Environmental Impact Statement

EL Exploration Licence

EMP Environmental Management Plan

EMS Environmental Management System

EPA Environment Protection Authority

GHG Greenhouse Gas

EPL Environment Protection Licence

g/m2/mth Grams per square metre per month

HRSTS Hunter River Salinity Trading Scheme

ICO Integra Coal Operations

IMC Integra Mine Complex

ISO International Standard

km Kilometre

l/s Litres per second

mm/s Millimetres per second

MOP Mining Operations Plan

MI Megalitre

ML, MPL, CCL & CL Mining Leases

Mt Million tonnes

OGM Organic Growth Material

NOC North Open Cut

NOW New South Wales Office of Water

NOEA North overburden emplacement area

PM10 Particulate matter (dust) with a diameter of less than 10 microns

ROM Run-of-mine

SOEA South overburden emplacement area

STP Sewage Treatment Plant

TEOM Tapered Element Oscillating Microbalance

μS/cm Micro Siemens per centimetre

μg/m3 Micrograms per cubic metre


1. INTRODUCTION

1.1 DOCUMENT PURPOSE

This Annual Review (AR) details the environmental performance and operations at the Integra Mine Complex during the reporting period.

Due to the integration of Integra Open Cut, North Open Cut and Underground reports into the Integra Mine Complex AR, the reporting

period for Integra Open Cut was from 1st September 2010 to 31st December 2011, the reporting period of Integra North Open Cut was from

1st April 2011 to 31st December 2011 and the reporting period for Integra Underground was from 1st January 2011 to 31st December 2011.

The AR is a requirement of statutory approvals and has been developed in accordance with the conditions of the Mining Lease and Project

Approval 08_0101 and 08_0102. The structure of this report has generally been prepared in accordance with the Industry and Investment

NSW (I&I NSW) “Guidelines and format for Preparation of an Annual Environmental Management Report” (January, 2006).

Condition 3 of Schedule 5 of Project Approval 08_0101 and 08_0102 states that:

By the end of March 2012, and annually thereafter, the Proponent shall review the environmental performance of the projects to the

satisfaction of the Director-General. This review must:

(a) describe the development (including any rehabilitation) that was carried out in the past year, and the development that is

proposed to be carried out over the next year;

(b) include a comprehensive review of the monitoring results and complaints records of the projects over the past year, which

includes a comparison of these results against the:

• relevant statutory requirements, limits or performance measures/criteria;

• monitoring results of previous years; and

• relevant predictions in the documents referred to in condition 2 or 3 of schedule 2;

(c) identify any non-compliance over the past year, and describe what actions were (or are being) taken to ensure compliance;

(d) identify any trends in the monitoring data over the life of the projects;

(e) identify any discrepancies between the predicted and actual impacts of the projects, and analyse the potential cause of any

significant discrepancies; and

(f) describe what measure will be implemented over the next year to improve the environmental performance of the projects.

Additionally, this AR endeavours to provide information to our stakeholders regarding policies, objectives, goals and environmental and

social performance during the 2010 – 2011 reporting period.

Copies of the report are distributed to various stakeholders including, but not limited to:

• Department of Resources and Energy (DRE);

• Department of Planning and Infrastructure (DP&I);

• Environment Protection Authority (EPA);

• Singleton Shire Council (SSC); and

• Integra Mine Complex Community Consultative Committee (IMC CCC) members.

1.2 HISTORY

1.2.1. Introduction

The Integra Mine Complex comprises underground and open cut operations which have been active since 1991 formerly as Glennies Creek

Colliery and Camberwell Coal Mine.

Integra Coal Operations Pty Ltd 1 of 63


Development Consent (DA 105/90) for Glennies Creek Colliery, now Integra Underground, was granted on 1st November 1991 and was

modified on six occasions to allow further surface facility development and increased production. During the previous reporting period an

environmental assessment for mining within the Middle Liddell beyond 2012 and in the Hebden and Barrett seams was completed. The

application (PA 08_0101) was approved in late 2010 by the Department of Planning.

Camberwell Coal Joint Venture (CCJV) was granted Development Consent (DA 86/2889) for mining operation on the 21st March 1990.

Development commenced with the construction of the CHPP and rail loop facilities and the first coal was mined in the area known as the

North Pit on the 1st March 1991. Ten modifications were granted for increased production and surface infrastructure changes and upgrades.

An application (PA _0802) for open cut mining operations within the Northern and Western Extension mining area was granted in late 2010

by the Department of Planning.

CCJV and Glennies Creek Joint Venture (GCJV) were integrated on the 4th August 2006 to form Integra Coal Joint Venture (ICJV). AMCI

Holdings Australia, part owner of ICJV, was bought by Brazils Companhia Vale do Rio Doce (CVRD), the world’s biggest iron ore miner on

the 20th April 2007. CVRD changed the company name to Vale on the 29th November 2007 and subsequently on the 11th February 2008

renamed CVRD Australia Pty Ltd as Vale Australia Pty Ltd. Vale Australia Pty Ltd owns 61.2% of ICJV with the remaining 38.8% held by

shareholdings as described below:

Navidale Pty Ltd 14%

Toyota Tsusho Mining (Australia) Pty Ltd 11.2%

NS Glennies Creek Pty Ltd 3.6%

POS-GC Pty Ltd 3.6%

Toyota Tsusho Coal (Australia) Pty Ltd 2.8%

JS Glennies Creek Pty Ltd 1.8%

JFE Steel Australia (GC) Pty Ltd 1.8%

The Integra Complex is operated as an unincorporated joint venture, with Integra Coal Operations Pty Limited being the management

company responsible for all operations at both sites on behalf of the joint venture owners.

The Integra Complex currently operates under a single project approval instrument which combines the project approval for Integra

Underground and Open Cut (PA 08_0101 and PA 08_0102, respectively). The project approval was granted on 26th November 2010 under

Part 3A of the NSW Environmental Planning and Assessment Act 1979 (EP&A Act) and is attached as Appendix 1.

1.2.2. Location and Resource

The Integra Mine Complex is located in the Hunter Coalfields of the Sydney Basin, approximately 10km northwest of Singleton. The

Complex is surrounded by a number of existing mines, predominately along the western boundary, including Mount Owen Mine and

Ravensworth East Mine to the north-west, Glendell Mine and Ashton Mines to the west and Rix’s Creek Mine to the south-west.

The project overlies part of the north plunging Rix’s Creek Syncline, which is flanked in the west by the eroded Camberwell Anticline, within

the Vane Subgroup, Foybrook Formation, and Wittingham Coal Measures. Coal seams are numerous, thin and interbedded with

sandstone, mudstone and a lesser amount of conglomerate.

The seams dip west or northwest at between 2 and 10 degrees. Seams occasionally show roll structures and paleo-river channels. The

steepest dips are located on the western side of the South Pit.

The Integra Underground coal seams and surrounding strata are assigned to the Foybrook Formation, a stratigraphic unit of the Late

Permian Singleton Supergroup. The Foybrook Formation contains at least six named coal seams, of which four are considered to have

resource potential, and three are planned to be mined. Seams that have been identified in previous and current geological models within

the Foybrook Formation Stratigraphic Sequence at Integra are shown in Table 1 and Figure 1.



Table 1 Seams identified in the geological models within the Foybrook Formation.

Geological Seam 1987 Model (Coalesced)

1987 Model (Primary) 1997/98 Model 2003 & 2007 Models

Lemington (these seams excluded from previous studies)

460

450

440

430

420

410

400

390

380

370

360

Pikes Gully (these seams excluded from the 1987 study)

350 350

340 340

330 330

320 320

310 310

300 300

291 291

290 290

280 280

Arties

270 271 271

270 270

255W

260W

261 261

260 260

259 259

250W

254 254

253 253

252 252

251 251

250 250

249W 249 249

240W 240W

242 242

241 241

240 240

230W 230W 230 230

229 229

Upper Liddell

220W 220W 220 220

205W 210W 210 210

200 200 200

Middle Liddell 190W 190W 192 192

191 191




Table 1 continued.

Geological Seam 1987 Model (Coalesced)

1987 Model (Primary) 1997/98 Model 2003 & 2007 Models

190 190

175W 180W 180 180

170W 170 170

Upper Lower Liddell 160W 160W

163 163

162 162

161 161

160 160

Lower Liddell

150W 150W 150 150

135W 140W 140 140

130W 130 130

CORRELATION HORIZON 127 127

Upper Barrett 120W 120W 121 121

120 120

Lower Barrett 105W 110W

112 112

111 111

110 110

100W 100 100

Upper Hebden

90W 90W 90 90

75W

80 80

70W

73 73

72 72

71 71

70 70

Lower Hebden

55W

60W 60 60

50W 50 50

49 49

40 40 40

25W 30W

30 30

20W 20 20

10 10 10



Coal SeamsCoal

Sandstone

Siltstone

Mudstone

Conglomerate

<Geological Coal Seam><CBW Seam No.>

270 260 250 249 240 230 220 210 200190 180 170160

150 140 130

120110 10090 80 7060 50 40

225W

205W

175W

135W

105W

75W

55W

Arties

Middle Liddell

Lower Middle Liddell

Lower LiddellUpper BarrettLower Barrett

Upper Hebden

Lower Hebden

Upper Liddell

Figure 1 Integra Coal Stratigraphic Sequence


Figure 2 Mine Location



Figure 3 Mining Leases

The Integra Mine Complex resource is well suited to the production of export semi-soft coking and thermal coal. The Complex has Project

Approval to dispatch up to 7.3 million tonnes (Mt) of coal from the site each calendar year.

1.2.3. Description of Operations

Operations at the Integra Mine Complex have consisted of multi-seam mining in four open cut areas and extraction from one underground

coal seam, as follows;

• The former North Pit – mining within ceased in 1999 and the bulk of the pit was backfilled leaving a small section in the north-

western corner without backfill to enable access to Glennies Creek Colliery, now Integra Coal Underground, via a portal on the

former highwall;

• The former South Pit – final coal was recovered in December 2011 with waste emplacement to the pit commencing the same

month;

• The Western Extension (extension of the South Pit) – approved in November 2010. Development work commenced in December

2010 with first ROM coal produced in May 2011;

• The North Open Cut – project approval granted on 2nd December 2008, operation commencing in August 2009. The NOC is

located within 1000m of the existing pit, allowing truck haulage of coal from the pit to existing infrastructure; and

• Underground operations – mining continued in the Middle Liddell coal seam through the reporting period. Development for the

Hebden seam commenced in 2011 with first ROM coal scheduled in 2016.

A number of activities are integrated or jointly undertake over the mine site complex. These include management of water, coal handling

and preparation, management of coarse and fine rejects and transport of product coal.



The Integra Mine Complex also utilises a number of facilities and equipment necessary for the mining and washing of coal:

• Infrastructure area which incorporates the workshop, bathhouse, administration buildings and the Coal Handling and Preparation

Plant (CHPP) including three coal stockpiles;

• Rail loading facilities; and

• Mobile plant and equipment.

During the reporting period, all ROM coal was hauled directly from the underground and open cut pits to the Integra CHPP or ROM receival

area. From the CHPP, product coal is loaded into railway wagons using the Mine Complex Rail Load-out Facility for transportation to the

Port of Newcastle for export.

1.3 APPROVALS, LEASES AND LICENCES

1.3.1. Status

Mining operations at the Integra Mine Complex are undertaken under various licences, approvals and leases, the current status of which

are summarised in Table 2.

Table 2 Approvals, Leases and Licences.

Site Instrument Authority Validity Periods

Open Cut Project Approval 08_0101 DoP/DP&I 26/11/2010 -31/12/2022

Development Consent 86/2889 DoP 19/03/1990-19/03/2011

Development Consent – Modification DoP 06/09/2006-19/03/2011

Camberwell EPA Licence 003390 Licence variation (Notice No. 1027781)

DECCW/EPA Licence anniversary 31st August – In Force

Coal Lease 357 DRE 27/03/1990-27/03/2011

Mining Operations Plan DRE 12/2010 – 12/2013

Mining Leases 1648-1651 DRE 04/01/2011-04/01/2032

Authorisation 440 IDRE Renewed 24th March 2010

Authorisation 81 DRE Renewed 24th March 2010

Dangerous Goods Licence 35/028098 Work Cover Licence anniversary 11th February – In Force

Surface Water Licence WAL874 (240 GS) NOW Issued 31/3/2005




Surface Water Licence WAL1273 (1.2 SS) NOW Issued 1/11/2006

Surface Water Licence WAL 10095 (230HS) NOW Issued 11/09/2006

Radiation Licence 10121 (Mod 1 Density) EPA 20/10/2010

Radiation Licence 10120 (Mod 2 Density) EPA 20/10/2010

Radiation Licence 10119 (Tailings 1 Density) EPA 20/10/2010

Radiation Licence 7561 (Tailings 2 Density) EPA 10/07/2012

Radiation Licence 684 (RC1 Coalscan) EPA 10/07/2012

Radiation Licence 683 (CC1 Coalscan) EPA 10/07/2012

Radiation Licence 685 (DC1 Coalscan) EPA 10/07/2012

Project Approval 08_0102 DoP 26/11/2010 -31/12/2022

North Open Cut Coal Lease 382 DRE 12/11/1991-11/11/2012

Coal Lease 357 DRE 27/03/1990-27/03/2011

Mining Lease 1437 DRE 28/04/1999-27/03/2011



Table 2 continued.

Mining Lease 1518 DRE 14/06/2004-27/03/2011

Mining Lease 1630 DRE 16/03/2009-13/03/2030

EPL 3390 EPA Issued 13/05/2003-30/07

Dangerous Work Licence 35/034651 Work Cover 09/03/2005-09/05/2016

Water Access Licence 20BL 172249 Department of Water 24/07/2009-Perpetuity

Bore Licence 20AL 200530 NOW Issued 01/07/2004




Bore Licence 20BL 167917 NOW Issued 15/08/2000


Bore Licence 20BL 169573 NOW 07/03/2005-28/02/2015


Bore Licence 20BL 169628 NOW 17/08/2007-Perpetuity






























Coal Lease 382 DRE 12/11/1991-11/11/2012

Underground Mining Lease 1437 DRE 28/04/1999-27/03/2011

Mining Lease 1525 (Forest Road Ventilation Shaft)

DRE 18/11/2002-17/11/2023

Sub-lease of MPL 343 DRE 19/09/2002-26/03/2011

Mining Lease 1518 DRE 14/06/2004-27/03/2011

Mining Lease 1551 DRE 10/01/2006-27/03/2011



Table 2 continued.

Mining Lease 1525 DRE 18/11/2002-17/11/2023

Exploration Lease 5824 DRE 06/07/2006-18/03/2011

Environment Protection Licence 3390 EPA 12/2010-27/11/2014

Environment Protection Licence 7622 EPA 31/12/1999-12/07/2014

Water Access 961 NOW 01/07/2004-Perpetuity

Water Access 960 NOW 01/07/2004-Perpetuity

Water Access 484 NOW 01/07/2004-Perpetuity Water Access 485 NOW 01/07/2004-Perpetuity Water Access 1172 NOW 01/07/2004-Perpetuity Water Access 1173 NOW 01/07/2004-Perpetuity Water Access 1242 NOW 01/07/2004-Perpetuity Water Access 10095 NOW 01/07/2004-Perpetuity Bore Licence 20BL 167917 NOW 15/08/2000-Perpetuity Bore Licence 20BL 169571 NOW 07/03/2005-Perpetuity Bore Licence 20BL 169573 NOW 07/03/2005-Perpetuity Bore Licence 20BL 169574 NOW 07/03/2005-Perpetuity Bore Licence 20BL 171705 NOW 17/08/2007-Perpetuity Bore Licence 20BL 171707 NOW 17/08/2007-Perpetuity Bore Licence 20BL 171708 NOW 17/08/2007-Perpetuity Bore Licence 20BL 171710 NOW 17/08/2007-Perpetuity Bore Licence 20BL 171720 NOW 16/01/2008-Perpetuity Bore Licence 20BL 171721 NOW 16/01/2008-Perpetuity Bore Licence 20BL 171722 NOW 16/01/2008-Perpetuity Bore Licence 20BL 172277 NOW 15/09/2009-Perpetuity Bore Licence 20BL 172278 NOW 15/09/2009-Perpetuity Bore Licence 20BL 172279 NOW 15/09/2009-Perpetuity Dangerous Goods Licence 35/034651 WorkCover NSW Expiries 08/03/2011 Development Consent 719/20033 Singleton Shire Council Issued 13/02/2004

1.3.2. Modifications during the Reporting Period

On the 2nd December 2011 Modification 1 Environmental Assessment was submitted to the Minister for Planning and Infrastructure for

approval.

The proposed modifications were as follows:

• Extension of the North Open Cut (NOC) out-of-pit dump to the east and south;

• Increasing the maximum height of the NOC emplacements from 135m AHD to 141m AHD;

• Relocation of the existing NOC crib hut site;

• Extension of the timeframe stipulated in Project Approval Schedule 3, Condition 48, which requires the installation and operation

of an overland conveyor from the Underground surface facilities to the Camberwell Coal Handling and Preparation Plan (CHPP);

and

• Extension of the timeframes stipulated in Project Approval Schedule 3, Conditions 42 and 43, which relate to the revision of

Integra Coal’s biodiversity offset strategy and to the provision of long term security for the biodiversity offset areas identified in the

strategy.

The modifications proposed above, taken collectively, were to constitute Modification 1 to the Integra Mine Complex Project Approval.

Approval for the modification was formally granted on the 18 March 2012. A copy of the Notice of Modification is provided in Appendix 2.




1.4 CONTACTS

1.4.1. Mine Contacts

Figure 4 represents the organisational structure at the Integra Mine Complex. The manager of each department is responsible for ensuring

the standards and procedures in their department are applied for the operation.

Integra Coal Operations Pty Ltd’s (Integra Coal) General Manager, Mr Andrew Betts, has the responsibility to ensure that all employees,

contractors and visitors to the Integra Mine Complex comply with all relevant environmental legislation. The Company Directors have

ultimate responsibility for Integra Coal’s environmental performance.

Mr Jason Barry and Mr Greg Gleeson were the Operations Managers for Open Cut and Underground Operations, respectively, at the end

of the reporting period and are responsible for ensuring that the operations comply with all applicable legislation. Mr John Trotter is the

Environmental Superintendent and directs environmental management for the Mine Complex. Mr Kieran Plasto is the Manager –

Sustainability and is responsible for managing environment and safety elements at the Mine Complex. Ms Kate Brickhill, Mr Sam Taylor

and Mr Dan Byrne are site Environment and Community Advisors and are responsible for the routine environmental management at the

Mine Complex which includes community relations.

Contact details for the General Manager, Operations Managers, Sustainability Manager and Environment Team are:

Mr Andrew Betts General Manager

Phone: 02 6570 2104

E-mail: [email protected]

Mr Jason Barry Operations Manager – Open Cut

Phone: 02 6570 2123


Mr Greg Gleeson Operations Manager - Underground

Phone: 02 6577 4202


Mr Kieran Plasto Manager - Sustainability

Phone: 02 6570 2118


Mr John Trotter Environmental Superintendent

Phone: 02 6570 2187


Ms Kate Brickhill Environment and Community Advisor – Open Cut

Phone: 02 6570 2168


Mr Sam Taylor Environment and Community Advisor – Open Cut

Phone: 02 6570 2168


Mr Dan Byrne Environment and Community Advisor - Underground

Phone: 02 6577 4203



Figure 4 Safety and Sustainability Organisational Structure



1.4.2. Support Personnel

In addition to the personnel identified in Section 1.4.1, the Integra Mine Complex utilizes specialist assistance as and when required.

Specialist environmentally based or related companies consulted/involved in activities at the mine during the reporting period include:

• AECOM Australia – Aboriginal cultural heritage surveys;

• Carbon Based Environmental Pty Ltd – ground and surface water monitoring and analysis, air quality monitoring and visual subsidence inspections;

• Environmental Management Group Australia – subsidence management plan;

• Environmental Resource Management Australia – Environmental Assessments;

• Forest Fauna Surveys – Fauna surveys;

• Global Acoustics – operational noise monitoring;

• GeoTerra – surface and groundwater reviews along with hydro-geological studies and water management plans;

• Graham A Brown and Associates – Independent Environmental Auditors;

• GSSE – water management studies;

• Mine Subsidence Engineering Consultants – subsidence modelling;

• Pells Sullivan Meynick – dam safety management plans;

• RW Corkery – approvals and management plans;

• SCT Operations – subsidence monitoring;

• Theiss – waste management; and

• WRM Water – water balance studies.

1.5 ENVIRONMENT POLICY

Integra Coal is committed to the Vale Australia’s Environmental Policy, which states;

At Vale in Australia, we are committed to acting in an environmentally responsible manner.

We will integrate environmental matters into our corporate and operational activities by:

• Complying with legislative requirements

• Communicating effectively with stakeholders

• Committing to reduction of environmental impacts

We are all responsible for the effective application of this policy.

A copy of the Vale Australia Environmental Policy is included in Appendix 3.



2. OPERATIONS

2.1 EXPLORATION

No exploration activities were undertaken at, or associated with, the Integra Mine Complex during the reporting period.

2.2 LAND PREPARATION

Total area of vegetation clearing, soil stripping and recovery completed at the North Open Cut during the reporting period was

approximately 145ha. The cumulative volume of subsoil and topsoil recovered up to Year 2 of the MOP (2011) totalled 71 760m3 and 168

143m3 respectively.

In general accordance with the Integra Open Cut Project MOP 311, 419m3 of subsoil and 76, 336m3 of topsoil was stockpiled in the Integra

Open Cut south and west pits during the reporting period.

All vegetation cleared was mulched and stockpiled for future use in rehabilitation of the site.

Land preparation activities undertaken at the Integra Underground during the reporting period were limited to concurrent vegetation and soil

stripping to permit installation of gas drainage borehole on LW 11 11/1 to 11/6 and are identified on Figure 6. These activities were

generally in accordance with the commitments in Section 3 of the MOP.

Production and Waste summaries for the Open Cut, North Open Cut and Underground are included in Appendix 10. Additionally,

rehabilitation plans for the Open Cut and North Open Cut are presented in Appendix 10.

2.3 CONSTRUCTION

Construction activities at the Integra Mine Complex during the reporting period consisted of:

• Overburden placement from the open cut pit to the explosives compound; and

• Drilling of gas drainage boreholes GWH 11/1 to 11/6 (Figure 6). Gas drainage boreholes are installed in the undisturbed strata in

advanc of the longwall face. Following the passage of the longwall face, the gas is allowed to free-vent via a bleed-off stack or is

piped to the Glennies Creek Power Station (Envirogen). Once the gas levels have reduced to pre-determined levels in the

underground workings and/or the longwall face has progressed past the equivalent point on the adjacent panel, the vent stack

and associated equipment is removed. The Envirogen pipeline may then connect directly to the borehole to utilise mine gases.

When the gaswell site is no longer utilised, the boreholes is sealed and the site rehabilitated.

The relocation of the Crib huts within the overburden emplacement of the North Open Cut is scheduled to commence next reporting period.

2.4 MINING

2.4.1. Method

Integra surface mining operations utilize a P&H 2800XPA shovel (now retired from service), Bucyrus RH340B Excavator and Hitachi 3600

excavators with a CAT truck fleet primarily to pre-strip and remove overburden, CAT 994 loaders and trucks follow to remove the coal which

was then placed in the coal hopper at the CHPP.

During the reporting period, all ROM coal was hauled directly from the open cut and north open cut to the Integra CHPP or ROM receival area.

The mining equipment used at Integra open cut is shown in Table 3.



Table 3 Integra Open Cut Mobile Plant and Equipment

Equipment Type Number

Routinely in Function

P&H 2800XPA Shovel (retired January 2011) 1 Materials movement Bucyrus RH340B Excavator (commissioned

January 2011) 1 Materials movement

Hitachi EX3600 Excavator 2 Material movement

Caterpillar 994 Loader 4 Materials movement

Drilltech DK75KS 1 Drill rig

Drilltech D75K 2 Drill rig

Drilltech D40K 1 Drill rig

Caterpillar D11 5 Materials movement

Caterpillar D10 2 Materials movement

Caterpillar 854 RTD 1 Materials movement

Caterpillar 16 G Grader 2 Road maintenance

Caterpillar 789 Rear Dump Truck 26 Materials movement

Caterpillar 777 Watercart 2 Dust Suppression

Caterpillar 773 Service Cart 1 Equipment servicing

Coal mining methods at Integra Underground during the reporting period remain predominately unchanged from the previous period,

namely:

• Mine development using two wide head, single pass continuous miners with a combination of electrically powered shuttle cars

and diesel powered ramp cars loading onto a 1200mm wide conveyor belt system; and

• Longwall extraction using a Bucyrus longwall feeding a crusher to a 1200mm wide conveyor belt system. The longwall unit

comprises a shearer with a 1m depth delivering coal to an armoured face conveyor. During the reporting period partial extraction

of longwall 11 occurred (face length ~250m). Roof support on the longwall face was provided by 143 x 1.75m wide, two legged

hydraulic roof supports with a capacity of 1050t each. Coal was transferred from both the production and development conveyor

and from there to the RL 100 ROM stockpile area via two surface conveyors

Table 4 lists the major equipment in use at the Mine Complex underground operations at the end of the reporting period, together with its

principal function(s). Additional items of equipment such as chock carriers, petito mules, ramcars, shearer carriers and cranes were brought

onto site during the LW10 to LW11 move or to assist day-to-day operations.



Table 4 Integra Underground Mobile Plant and Equipment

Equipment Type Number Routinely in

Operation Function

Personnel Transporters 9 Personnel movement

Load Haul Dump (LHD/FBL) 6 Materials movement

Grader 1 Underground road maintenance

Continuous Miner 2 Mine development

Shuttle Car 2 Mine development

Ramcar 1 Ballast transportation

Trencher 0 Underground trenching

Bobcat 1 Underground belt cleaning

Longwall Unit 1 Coal production

Surface Front End Loader 1 *21 Loading coal trucks

Surface Haul Truck 4 *1 Transporting coal to CHPP

Surface Water Truck 1 *1 Dust suppression

Surface Forklift 2 Supplies management

*1 Plant owned and operated by Integra Open Cut.

2.4.2. Progress

Open Cut mining operations continued in the northeast of the North Open Cut and in the southwest corner of the South Pit during the

reporting periods. Final waste and ROM coal was removed from the southwest corner of the South Pit in November 2011 and December

2011 respectively, with backfilling commencing in late December. The former Camberwell North Pit was seeded and contour drains built as

per the current MOP, during the reporting period.

Development in the Western Extension (extension of the South Pit) commenced in December 2010 while mining in the form of the first drill

pattern began in February 2011. First ROM production coal from the Western Extension was extracted in May 2011.

Underground mining continued in the Middle Liddell coal seam throughout the reporting period. The longwall move from panel 10 to 11

commenced in May 2011 and first ROM coal was extracted from panel 11 in September 2011.

Mine progression at the end of the reporting period is shown on Figure 6 and presented chronologically in Table 5. Values in the table

represent metres driven in development and metres of retreat for longwall extraction each month (rounded to the nearest metre). Planned

mine progression during the 2012 calendar year is also shown on Figure 6.




Table 5 Underground Mine Progression

DEVELOPMENT

METRES Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

MG11 213 228 - - - - - - - - - -

MG12 - - - 181 - 123 - 89 450 798 702 544

North Mains Integra - - - 187 121 - - - - - - -

North Mains 63 184 203 266 239 80 48 172 122 337 217 135

Hebden Coal - - - - - - - - - - - - Hebden Roadheader 4 18 40 34 56 49 4 40 51 32 52 23

TOTAL 280 430 243 488 416 129 52 211 173 368 270 159

LONGWALL

METRES Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

LW10 85 45 21 7 5 - - - - - - -

LW11 - - - - - - - - - 99 67 87

TOTAL 85 45 21 7 5 - - - - 99 67 87

Gas drainage borehole drilling and drift development to the Hebden seam was undertaken throughout the reporting period. Completion of

the Hebden man and materials and conveyor drift’s is scheduled for late 2012 and first ROM coal production anticipated in 2016.



This Page Intentionally Left Blank


Figure 5 Underground Surface Facilities




Figure 6 Underground Mining Activities


2.5 COAL PROCESSING

2.5.1. Summary

The Mine Complex CHPP processes ROM coal from both open cut and underground operations. The monthly breakdown of product coal

produced and process waste material created by the CHPP during the reporting periods are shown in Figure 7. Mine Complex operations

produced a total of 2.05 million tonnes of ROM coal which was processed through the CHPP during the period September 2010 to

December 2011. Annual product coal at December 31st 2011 was 1.29Mt compared to 2.38 Mt for the previous annual period. The

reduction in coal production between annual periods was due primarily to delays in commencing the Western Extension of the South Pit

and methane gas issues associated with underground operations.

Figure 7 ROM Production and Prime Waste Movement 2010-2011

2.5.2. Method

Raw coal is delivered to the CHPP dump hopper by haul trucks. A sizing station at the dump hopper reduces the material to 90mm top size

in a two stage crushing process. Sized coal is then transported by conveyor to the plant feed surge bin or conveyed to the raw coal stacker

for stockpiling.

Plant feed, sourced directly from the dump hopper or reclaimed from the raw coal stockpile, is fed into the plant and crushed a third and

final time to 50mm top size. Through the use of screens and classifying cyclones, the raw coal is separated into three size fractions. The

coarse coal (>2.5mm) is processed in one of two dense medium cyclones, where the coal is separated from reject material. Coarse coal

and reject are separately dewatered.

The middle size fraction of the raw coal (2.5mm to 0.25mm) is processed using teeter bed separators. The product from the teeter bed

separators is sized at 1.4mm using sieve bends, the over size is dewatered and combined with coarse coal product. The undersize is

reprocessed in spirals. Spiral reject is combined with teeter bed separator reject, and dewatered. This dewatered reject material is

combined with the dense medium cyclone reject and leaves the plant as a single stream on the reject conveyor. Coarse reject (all reject

<0.25mm) is transported from the CHPP to the reject bin, and removed by rear dump truck to emplacement areas within the pit.

The fine coal fraction (<0.25mm) is processed in the flotation circuit using Jameson Cells. The Jameson Cells beneficiate coal by froth

flotation. The coal froth product is dewatered by filtration and combined with the coarser size fraction products. Reject material from the

flotation process is thickened at the CHPP to recover water for reuse and reduce the volume of material reporting to the tailings dam.



2.5.3. Processing Plant Residues / Reject Management

In the reporting period, CHPP overall yield for ROM coal from open cut operations was 46.9% and from underground operations was 52%.

The open cut operations experienced a decrease in yield of 14.22%, whilst the Underground yield remained unchanged relative to the

previous reporting period.

2.5.4. CHPP Water Handling and Waste Disposal Procedures

Tailings from the CHPP are pumped approximately 2.5km to Tailings Dam No. 2 and Tailings Dam No.3 (TD2 and TD3) located in the north

east section of the mining lease. Water is pumped back to mine water dam D1 where it is reused through the site water management

system. Containment walls for TD1 and TD2 were lifted during the reporting period in order to provide additional dam holding capacity.

These augmentation works were approved by the NSW Dams Safety Committee

Prime waste and coarse rejects conveyed from the CHPP to the reject holding bin are loaded into mine dump trucks and disposed in the

overburden emplacement areas. Fine rejects from the CHPP are pumped to the tailings facilities (TD2, TD3).

2.5.5. Monitoring and Maintenance of Containment Facilities

Tailings dams and pipelines are inspected daily and following blasts in the NOC. A written condition report is also made once per week. The

main tailings pipeline from the CHPP to TD2 and TD3 is fitted with an alarm to alert of blockages/leakages in addition to inspections by

CHPP staff.

In TD3, decant water off the tailings pools around the eastern section of the dam and is pumped back to D1 via a pontoon pump as

required. Some of the seepage from TD3 will report to the Portal Sump, which is located at the lowest point of the old North Pit. Water from

the Portal Sump is pumped back to D1 for reuse.

Seepage through the southern and south western embankments of TD2 are minimised by having the tailings selectively beached against

the dam wall. Any seepage that does occur is collected in drains constructed at the toe of the downstream batter. The drains direct the

water back to dam D1. Seepage to the north from TD2 is collected in containment facility Dams W20, W21 and pumped back to D1.

The following checks and inspections are carried out on a weekly basis and documented by the CHPP Maintenance Superintendent or

designated CHPP operator:

• Location of water in relation to the southern and south western embankment. If the deposition of the tailings results in water

ponding against the embankment the discharge point should be moved and/or the decant pump started; and

• The water clarity should be clear and is checked for signs of contamination with dark tailings. Comments are made on the volume

discharging from the drains at the base of the southern and south western embankment.

In addition to routine inspections, TD2 has six piezometers installed to monitor groundwater in the region of the dam wall, three are installed

on the dam wall crest and three at the toe of the dam wall. The piezometers are sampled monthly; those that have water are tested for

Electrical Conductivity (EC) and pH. There are also two v-notch weir/ water flow meters installed on both the north and southern sides of

the tailings facilities, the weirs allow water flows to be monitored in order to understand the amount of seepage coming from the tailings

facilities. A review undertaken during the reporting period indicated no significant increase in the seepage volumes from the tailings dams.

2.6 COAL SALES

The Mining Complex produces three coal products, all of which are exported. Coal sourced from the open cut operations is processed to

produce either a 9% ash semi-soft coking coal or a 12% ash thermal coal. Coal sourced from the underground operations is all processed

to a 9.2% ash semi-hard coking coal. The majority of coal produced was exported to Japan, with some sales to Korea, Taiwan and

Pakistan. A breakdown by destination and product coal type is shown in Figure 8 and Figure 9 respectively.



Figure 8 Market Destination and Sales

Figure 9 Coal Sales by Coal Type

2.7 COAL STOCKPILES

The Integra Mine Complex CHPP utilises three coal stockpiles in the handling and preparation process. The first in the process is the

60,000 tonne ROM stockpile located adjacent to the ROM hopper. The second, a 70,000 tonne ROM stockpile, utilises a stacker and a

reclaim facility. The third is the 300,000 tonne product coal stockpile. It utilises six (6) coal valves and a reclaim tunnel to move coal from

the stockpile to the train loading facility. The stockpiles are located to the west (ROM) and the south (product) of the existing CHPP main

infrastructure.

2.8 WATER MANAGEMENT

2.8.1. Introduction

The Complex separates clean, sediment laden and mine water on site to minimise adverse environmental impacts. Clean water includes

run-on from upstream areas (not affected by mining activities) of the mine. Sediment laden water is water off disturbed ground not subject

to mining activity. Mine water includes all water coming into contact with overburden, tailings and infrastructure surfaces. The Complex’s

water management infrastructure layout is shown in Figure 10. Development of the site in 1990 included the construction of surface water

diversion drains, outlets and other waterways. The design of dams, pipelines and associated drainage structures allows for catchment of

water from undisturbed areas to be diverted, where possible, away from disturbed and sediment laden mine water. Controls are



implemented to ensure storm water and groundwater from the mining area is diverted to either mine water dams or the pit void to prevent

discharge of this water off site.

2.8.2. Clean Water Management

In the mining lease area east of the main Northern Railway Line, rainwater runoff from non-mined or rehabilitation areas, as well as from the

diversion of the Martins Creek and Blackwattle Creek catchments, is collected in a series of four dams (C1, C2, C3 and C4). A vegetated

clean water channel connects dams C1, C2, C3 and C4. Water from C3 and C4 can be pumped to other water storage dams for on-site use

as required. C3 and C4 are maintained with sufficient freeboard to ensure adequate surge capacity during storm events. A site plan

illustrating the clean and dirty water management system is provided in Figure 10.

The water management system was designed to direct clean water from C1 through the series of dams to C4. Three further dams, C5, C6

and C6a are clean water sedimentation dams in the south of the mining lease, these dams overtop to Dam C3.

The area west of the Main Northern Railway Line had several dams constructed in 2000 due to the increase in South Pit operations and the

need to separate clean and mine water. The water management system was designed for Integra Coal Operations by John Hannan and

comprises clean water dams C7 to C11. The dams and diversion banks divert clean runoff water from entering mine workings. Dams C7,

C8 and C11 overtop and flow into C4 via the vegetated channel while dam C9 west of the south pit overtops into Station Creek. Dam C10

was located in the active mining area and was ‘mined-through’ in 2001.

Release of water through C4 has occurred in the past during storm events. Water is decanted after these events in order to keep the dam

at 70% of maximum capacity. This maintains enough freeboard to allow sufficient residence time to settle solids in the next first flush event.

Clean and dirty water separation at Integra Underground is achieved by means of an earthen bund which extends along the western margin

of the access road to the hardstand/storage areas and traverses the southern and western sides of the stores lay-down area. Flows from

the west of the bund, which originate from areas largely undisturbed by mining, are directed to the clean areas (Figure 5) via natural or

constructed drainage lines and channels. Possum Skin Dam, a structure for the storage of dirty water, is isolated from clean surface runoff

by a peripheral diversion drain.

2.8.3. Mine Water Management

Mine water is water that has come into contact with areas of mining activity. Rainfall runoff or seepage from disturbed catchments or water

that has come into contact with mine spoil or water may potentially contain chemical containments such as fuel and is required to be

retained onsite. Typically, mine water is characterised by elevated salinity levels.

All runoff from open cut surface facilities is intercepted by diversion drains and directed to Dam D1 (as illustrated in Figure 10). Mine water

and tailings dam return water is also pumped to Dam D1. A dedicated pipeline returns water collected from North Pit seepage at the

underground operations Portal Sump to Dam D1. Groundwater inflows during mining operations are dewatered from the pit to D1 to be

used in the coal processing system. Development of the North Open Cut included construction of three sediment dams (Sediment Dams 1,

2 and 3) at the eastern end of the pit to collect disturbed area surface runoff. In the Western Extension and North Open Cut project areas,

there have been a number of smaller in-pit dams constructed to aid in the removal of captured mine water from the pit. Water from these

dams is pumped back to D1 as required. Four sediment control dams (B1, B2, B5 and B6) have also been constructed in the Western

Extension project area to capture sediment laden runoff. Pumps are permanently located at sediment dam sites B1, B2, B5 and B6 which

pump to D1 or South Pit.

Mine water runoff from underground surface facilities is diverted to the Portal Sump and Possum Skin Dam via mine water drains on site.

As described in Section 2.9.2, clean and mine water separation is achieved by means of an earthen bund. Flows from the west of the bund,

which originate from areas largely undisturbed by mining, are directed to the clean areas while flows to the west of the bund are defined as

mine water and report directly to the Portal Sump (Figure 5). Water discharges from the Process Water dam, if occurring, also flow to the

Portal Sump. Overland pipelines transport water from both the Portal Sump to Possum Skin Dam and on to D1 as required. Interim mine

water storage is also available within the South Pit. A small sedimentation dam basin, positioned down slope of the Possum Skin Dam wall,

acts as a detention structure for any sediment originating from the diversion drains, dam face or areas down slop of the dam.




An oil separator located at the truck wash is used to remove hydrocarbons contained in wash down water. Floating oil booms are also

located at the inlet to Dam D1 to remove any extra hydrocarbons from the water before it enters Dam D1. A mechanised oil skimmer is

also installed at the holding sump prior to the oil separator. There have been no incidents where oil contaminated water was released off

site during the reporting period.

2.8.4. Water Supply and Use

The CHPP total water requirement during the 2010-2011 reporting period was approximately 16.8GL. A total of 10.9 GL of water was

recycled/reused from September 2010 to December 2011; representing 64.8% net water recycled. The water was drawn primarily from

Dam D1, which can be supplemented by water pumped from the clean water system if required. The bulk of this water is returned to D1

through the tailings disposal process. Mine water from the underground workings is pumped to the Portal Sump and then pumped, via

overland pipeline, to either mine water dam D1 or Possum Skin Dam. Surface water trucks collect water from Possum Skin Dam for dust

suppression at the Open Cut and ROM pad as required. No water was pumped from the clean water system or Glennies Creek for mining

operations during the reporting period.

Water may also be made available from the following sources:

• Singleton Town Supply – this water is primarily used for the bathhouse and drinking water; and

• Glennies Creek – Integra Coal Operations has a licence to pump from Glennies Creek.


Figure 10 Water Management System



2.8.5. Treated Water

Treated waste water from the Complex’s sewage treatment system is applied to a rehabilitated area. There have been no negative issues

experienced with the irrigation of rehabilitation areas during the 2010-2011 reporting period.

2.9 HAZARDOUS MATERIAL MANGAGEMENT

2.9.1. Fuel Containment

All fuel storage tanks have bunds with the capacity to hold 110% of the largest tank within that bunded area. There are no known areas of

significant hydrocarbon ground contamination at the Mine Complex.

2.9.2. Oil Containment and Disposal

Bulk oil storage occurs within the same bunded area that the bulk fuel tanks are contained within; as a result the capacity of the bund for

the bulk oil storage tank is well above 110% of the oil storage tank capacities. During the reporting period all waste oil and radiator coolant

from truck and vehicle maintenance was reclaimed and recycled. A licensed waste transport contractor, Australian Waste Oil, collects

waste oil for recycling and waste radiator coolant is collected by Valley Disposal. All diesel and wash down bays have sumps to collect the

oil/water mix and liquids flow to a main storage drive in sump. Drains to the washpad sump surround the workshop to capture any residual

oil. A loop tube surface skimmer removes the majority of hydrocarbons before the remaining water is passed through a plate separator.

Clean water from the separator flows into mine water dam D1 and a licensed waste transport contractor collects the separated waste oil

from a storage tank.

2.9.3. Hazardous Materials

Inventories of hazardous materials and Material Safety Data Sheets (MSDS) are available through the Mine Complex Stores System. The

Mine Complex also utilises the Chemwatch system, found on the Mine Complex intranet, to improve hazardous substance and chemical

management on site.

2.9.4. Explosives

Explosives materials, such as ammonium nitrate prill and emulsion, which are used to blast overburden, are stored in the explosives

compound. Detonators are stored in a separate compound as per the Explosives Act 2003 No. 39 and Explosives Regulation 2005. During

the reporting period, ammonium nitrate was stored on site at the Orica explosives compound. A secondary explosives supplier was also

engaged on site during 2011.



Figure 11 Location of Monitoring Points




Figure 12 Project Land Plan


3. ENVIRONMENTAL MANAGEMENT AND PERFORMANCE

The location of meteorological, air quality, water, and blasting monitoring points that form part of the Integra Coal EMS is illustrated in

Figure 11. Project land ownership at the Integra Mine Complex is provided in Figure 12.

3.1 METEOROLOGICAL

3.1.1. Introduction

The Mine Complex has a permanent weather station which has location coordinates E326672, N6404260. The weather station records 10

minute averages of temperature, relative humidity, wind speed, wind direction and sigma theta. The ten minute average data is transferred

by a telemetry link to the Mine Complex weather display and is used to evaluate weather conditions when blasting or after receiving a

complaint. The weather station achieved very good data recovery with over 99% of data being captured during the reporting period. All

data is stored and managed onsite by the environmental department.

The calibration and maintenance of the weather station is carried out by independent consultant Carbon Based Environmental Pty Limited.

The annual calibration of the weather station was undertaken in March 2011.

3.1.2. Rainfall

A total of 834.5mm of rainfall was received onsite during 2011. Total rainfall was significantly higher than the 2010 total of 451.6mm, with

monthly rainfall totals exceeding 80mm on four occasions in 2011. Figure 13 illustrates the monthly breakdown of rainfall for the reporting

period including a comparison with the previous reporting period.

Figure 13 Monthly Rainfall 2009 - 2011

Figure 14 illustrates the monthly breakdown of temperatures for previous and current reporting periods. The results indicate similar trends

in minimum and maximum temperatures for this reporting period compared to the previous.



Figure 14 Monthly Temperature 2010-2011

3.1.3. Wind speed and Direction

Wind speed and direction were consistent with the previous reporting years indicating dominant directions of W-NW and E-SE in spring, E-

SE in summer, E-SE and W-NW in autumn and W-NW in winter.

Monthly windroses depicting wind velocity and direction are presented in Appendix 4.

3.2 AIR QUALITY

3.2.1. Environmental Management

Introduction

Air quality management at the Mining Complex incorporates preventive dust management procedures and an extensive dust monitoring

network and operates in accordance with the Air Quality Management Plan.

The Mining Complex maintains an extensive air quality monitoring network consisting of thirteen depositional dust gauges (DDG) and three

high volume air samplers (HVAS). The DDGs provide monthly dust fallout data while the HVAS measure Total Suspended Particulates

(TSP) in air for a period of 24 hours every six days. All but two samples are collected by Carbon Based Environmental with AECOM

collecting the remainder.

Two HVAS also record PM10 particulates in accordance with the Air Quality Management Plan required under Project Approval 08_0101

and 08_0102. The two PM10 monitors are located adjacent to the TSP monitors at the Hardy and Lambkin sites allowing the ratio of PM10 to

TSP to be determined.

A real time dust monitoring unit (Tapered Element Oscillating Microbalance - TEOM) has continued to monitor dust levels on the property of

W & A Gardner, as part of the NOC Approval, since August 2009. In addition, a second TEOM unit located between the Mine Complex and

Camberwell village (Tisdell TEOM) was established during the reporting period.

Disturbed areas are kept to a minimum and rehabilitated with vegetation as soon as practicable to minimise the potential for dust

generation. Unsealed trafficable areas are maintained in a manner to reduce dust emission. Civil contractors working onsite are also

required to utilise water carts to control their dust emissions as required. Dust from the ROM and product coal stockpile areas is managed



by the use of water sprays. Moisture content of the coal is also increased during the washing process which assists in dust mitigation.

An estimated 1.4 ML of mine water is used daily for dust suppression within the Integra Mine Complex. Dust suppression agent Petrotac is

also utilised on targeted road surfaces as required. Dust from the ROM and product coal stockpile areas is managed by the use of water

sprays. Moisture content of the coal is also increased during the washing process which assists in dust mitigation.

Depositional Dust

Monitoring of depositional dust was undertaken, on a monthly basis, from 13 locations surrounding the mine site in accordance with

Australian Standard AS/NZS 3580.10.1 (2003).

A total of 208 depositional dust measurements were made in the 2010-2011 reporting period. Some results were contaminated by

excessive bird droppings or insects and were excluded from the data set.

TSP

Monitoring of TSP was undertaken every 6 days for a continuous 24 hour period from 3 locations in accordance with AS/NZS

3580.9.3:2003 Methods for Sampling and Analysis of Ambient Air – Method 9.3: Determination of suspended particulate matter – Total

suspended particulate matter (TSP) – High volume sampler gravimetric method (2003).

A total of 246 TSP measurements were made in 2010-2011 reporting period from a planned 246 measurements, giving a capture rate of

100%.

PM10

Monitoring of PM10 by the two HVAS monitors was undertaken every 6 days for a continuous 24 hour period from 2 locations in accordance

with AS/NZS3580.9.6:2003 Methods for Sampling and Analysis of Ambient Air – Method 9.6: Determination of suspended particulate matter

– PM10 high volume sampler with size selective inlet (2003).

A total of 162 PM10 measurements were made in 2010-2011 reporting period from the 164 planned, giving a data capture rate of 99%. One

lost measurement was due to power loss at the monitoring unit, while the other was due to damage to the unit. Power was restored and the

damage repaired for the next monitoring runs (respectively).

Overall data capture at both TEOM monitoring locations (Tisdell and Gardner) was consistently high throughout the reporting period. Data

loss did occur at the Tisdell TEOM site from the 1st to 26th of September 2011 and intermittently in November and December 2011 due to

power loss.

3.2.2. Environmental Performance

Air quality assessment criteria for the open cut operation are outlined in Table 6.

Table 6 Air Quality Assessment Criteria

Pollutant Standard Period Agency

TSP 90μg/m3 Annual average DECCW/DoP

PM10

50μg/m3 24 hour maximum DECCW/DoP

30μg/m3 Annual average DECCW/DoP

50μg/m3 24 hour average; 5 exceedances permitted a year National Environment Protection Measure

(NEPM)

Depositional Dust 4g/m2/month Annual maximum total deposited dust level DECCW/DoP

2g/m2/month Annual maximum increase in deposited dust level DECCW/DoP

Depositional Dust



From the expected 208 monitoring results to be collected a total of 206 were recorded (99% capture rate). The two results not collected

were due to equipment damage. Of all the gauges collected in the 2010-2011 reporting period, some were excessively contaminated by

extraneous material. This data has been excluded from averages as high levels of contaminants such as bird droppings, insects, vegetation

and algae growth can significantly increase and provide false insoluble solids results. Data used in averaging represented 82.6% of the total

number of sampled gauges. No annual average insoluble solids results exceeded the DECCW Air Quality Goal of 4 g/m2.month. Table 7

indicates the percentage of usable results from those collected at each site in the 2010-2011 reporting period and the reason for exclusion.

Results for Depositional Dust Gauges are summarised in Table 8 and shown graphically in Figure 15. Gauge D11 was contaminated most

months by bird droppings and was slightly relocated in order to prevent the problem.

Table 7 Percentage of Uncontaminated Dust Deposition Gauges

Dust Gauge Data Availability (%) Details

D2 100 -

D3 67 5 contaminated gauges (insects/droppings)

D4 100 -

D5 94 1 contaminated gauge (insects/droppings)

D6 100 -

D7 63 6 contaminated gauges (insects/droppings/vegetation)


D9 88 1 contaminated gauge (insects/droppings), 1 gauge broken




D13 88 1 contaminated gauge (insects/droppings), 1 gauge broken


Table 8 Annual Average Insoluble Solids

Dust Gauge Annual Average 2009-2010 (g/m2/month)

Annual Average 2010-2011 (g/m2/month) Variance

D2 2.65 2.82 0.17

D3 2.74 2.34 -0.40

D4 1.82 1.69 -0.12

D5 1.67 1.62 -0.05

D6 1.81 1.55 -0.26

D7 6.05 3.46 -2.59

D8 2.62 2.47 -0.15

D9 3.62 2.78 -0.84

D10 2.69 2.71 0.02

D11 8.05 2.95 -5.10

D12 2.33 1.89 -0.44

D13 2.38 2.05 -0.34

D14 2.94 2.50 -0.44



Maximum Total Deposited Dust Level Limit (4g/m2/month)

Figure 15 Average Depositional Dust Gauge Results 2009-2010 to 2010-2011

TSP

Annual average TSP results for all sites on were less than the DoP annual criteria (90 μg/m3), as shown in Figure 16. There are no

specified criteria for a 24-hour daily TSP maximum in Integra Coal Operation’s relevant licences or Project Approval. It must be noted that

the particulates recorded by the monitors are the total from all sources and not solely from the Integra Mine Complex. Overall, from 2009-

2010 to 2010-2011 there was an improvement in the reporting period TSP average for HV-1, HV-2 and HV-3 of 8 μg/m3, 28.4 μg/m3 and 4.9

μg/m3 respectively. Figure 17 displays the longer term annual average TSP from 2008 to 2011. Please note that Figure 16 displays the

calculated annual average and the final annual average is the last data point in the chart.

Figure 16 Average TSP Over Reporting Period



Annual Average Maximum (90ug/m3)

Figure 17 Annual Average HVAS TSP Results 2008-2011

PM10

Average PM10 results for sites HV-1 and HV-3 were 16.8μg/m3 and 20.5μg/m3 respectively, which is less than the EPA long term annual

average criteria of 30 μg/m3, as shown in Figure 18. Compared to the previous reporting period, HV-1 and HV-3 showed a decrease of

1.28 μg/m3 and 2.17 μg/m3 respectively. There were no exceedances of the PM10 short term impact assessment criteria of 50μg/m3 over 24

hours during the reporting period. Figure 19 displays the longer term annual average PM10 from 2008 to 2011.Please note that Figure 18

displays the year to date annual average and the final annual average is the last data point in the chart.

Figure 18 Average PM10 Results over Reporting Period



Figure 19 Annual Average PM10 Results 2008-2011

Figure 20 displays the monthly 24hr PM10 maximum recorded at the Gardner (North Open Cut) and Tisdell (Western Extension) TEOM

monitoring locations. There were no exceedances of the PM10 assessment criteria of 50μg/m3 over 24 hours during the reporting period.

24hr PM10 Maximum (50ug/m3)

Figure 20 TEOM PM10 Maximum Monthly Reading 2010-2011

3.3 EROSION AND SEDIMENT CONTROL


All personnel at the Integra Mine Complex have the responsibility to ensure that environmental issues are considered when reviewing all

tasks on the mine site. Training is provided to keep all personnel informed of our environmental obligations and any changes or revisions to

the Environmental Management System on site are communicated at tool box talks (TBT) and monthly communication meetings (MCM).

An Erosion and Sediment Control Plan for the first stage of the Western Extension was finalized in June 2011, incorporating the first three

years of mining activity in the area. The principle objective of erosion and sediment control for the project area is to ensure that there is no



uncontrolled discharge of dirty water from the site and that any water leaving the site meets the appropriate quality standards. A range of

principles have been identified as intrinsic to the design of ESC measures including best practice land clearing procedures, erecting ESC

structures and restricting vehicle access routes.

The Mine Complex aims to prevent soil erosion at the source wherever possible. If erosion cannot be significantly reduced in situ,

sedimentation control structures are used to capture and treat sediment laden water.

In conjunction with the control measures identified by the Western Extension Erosion and Sediment Control Plan, the following erosion and

sedimentation control principles and methods are practiced, as required, at the Mine Complex:

• Reducing kinetic energy impact with soil by providing sufficient vegetative cover.

• Improving soil structure by adding gypsum.

• Reducing slope length using contour drains at appropriate intervals.

• Reducing grades in the rehabilitation planning process where possible.

• Aiming to have the majority of slopes at or below 10 degrees.

• Establishing ground cover as soon as practicable after land preparation.

• Installing sedimentation control devices such as sedimentation ponds, check dams, turf strips, hay bales and silt screens.

• Maintaining soil ‘roughness’.

• Manage weeds in order to reduce the risk of having to rework the rehabilitation sites which would lead to dust generation and

sediment loss.

Sediment dams are often required down-slope of rehabilitation areas and in areas of high erosion potential. These dams are designed to

reduce the velocity of sediment-laden water to facilitate the settling of coarse particulate matter.

3.3.2. New Controls

As part of the site Sediment and Erosion Control Plan, sediment control dams (B1, B2, B5 and B6) have been constructed in the Western

Extension to collect sediment laden runoff from stripped areas and topsoil stockpiles.


Three discharges of sediment laden water off-site occurred during the 2010-2011 reporting period, all originating from the Western

Extension project area.

All events were a result of high rainfall, with total rainfall significantly above the design criteria for the sediment dams (42.8mm over a 5 day

duration rainfall event).

At the Integra Mining Complex, dams, contour banks, drainage routes and clean and mine water channels are inspected regularly to assess

their ongoing integrity and suitability to the task of controlling and capturing water.

3.4 SURFACE WATER


The Integra Coal Operations EPA Environmental Protection Licence (EPL) requires the monitoring of surface water for pH, EC, TSS and,

TDS at the following sites on a monthly basis:



1. Station Creek, where it leaves the mine site (Integra site W1).

2. Martins Creek, where it enters the mine site (Integra site W3).

3. Blackwattle Creek, where it enters the mine site (Integra site W6).

4. Dam C4, final dam in Open Cut clean water system (Integra site W10).

Integra Coal Operations monitors nineteen (19) other sites surrounding the Mine Complex to provide background information and to

determine any impact from mining operations. These additional sites are also monitored monthly and samples are analysed for pH, EC,

TSS and TDS. All sites are identified in Table 9.

Table 9 Water Monitoring Points for Integra Mine Complex

Monitoring Point Location

W1 Station Creek

W3 Martins Creek

W4 Glennies Creek upstream of the Station Creek confluence

W5 Glennies Creek downstream of the Station Creek confluence

W6 Blackwattle Creek

W7 Stony Creek where it crosses Stony Creek Road

W8 Tisdell’s Creek

W9 Clean Water Dam – C9 (Tisdell)

W10 Clean Water Dam – C4

W11 Glennies Creek downstream at Camberwell where it crosses the New England Highway




W15 Clean Water Dam – C6A (after C5 spillway channel before clean water channel)

W16 Sediment Control Dam – C7



W19 Mine Water Dam D1

W20 Northern Stock Water Dam No. 1

W21 Northern Stock Water Dam No. 2

W22 Station Creek Up

W23 Station Creek Down

An overall analysis of the results obtained during the period of this report is presented in Section 3.4.2, with results contained in Appendix 5.


pH

Summary

The results for pH analysis, including range, mean and standard deviation, are presented in Appendix 5. pH levels ranged from 5.9 at site

W3: Martins Creek Down in April 2011 to 10.2 at site W17 (Dam C2) in May 2011. The average pH for all sites ranged from 6.6 (W3) to 8.8

(W20 and W10), with the more alkaline sites being the dams. These results are very similar to previous yearly and pre-mining studies,

suggesting minimal influence from Integra Coal mining activities. Acid generation was not observed on site from mined materials or ground

waters. Runoff from overburden materials is mildly alkaline.



Site Analysis

The pH level at the DECCW EPL monitoring site W1 (Station Creek), was alkaline during the majority of the monitoring period, with pH

values ranging from 6.8 to 8.6. DECCW EPL monitoring site W3 (Martins Creek) ranged between 5.9 to 7.7pH. DECCW EPL monitoring

site W6 (Blackwattle Creek) ranged between 7.2 and 8.3pH.

The pH levels in W4 (Glennies Creek up), W5 (Glennies Creek down) and W11 (Glennies Creek at Camberwell) were very similar to each

other throughout the monitoring period. All sites indicated alkaline water, W4 ranged from 7.5 to 8.1, W5 ranged from 7.4 to 8.1 and W11

ranged from 7.4 to 8.2.

pH levels at all Dam sites (W12, W13, W14, W15, W16, W17, W18, W19, W20 and W21) remained alkaline throughout the reporting

period. The pH levels at the final dam in the clean water system, W10 (Dam C4, EPA site) were all alkaline, ranging from 7.6 to 9.6.

Most other creeks and site dams had variable pH levels consistent with variations due to climatic factors such as rainfall and evaporation.

No indications of acid generation from Integra Coal Operations were observed.

Electrical Conductivity (EC)

Summary

The results for EC analysis, including range, mean and standard deviation, are presented in Appendix 5. The results are very similar to

previous annual results and pre-mining studies, suggesting minimal influence from mining activities. EC results at most sites varied due to

climatic factors such as rainfall and evaporation.

Site analysis

The EC levels at the EPL monitoring site W1 (Station Creek) fluctuated generally in accordance with climatic conditions, with results

ranging from 312μS/cm to 2910μS/cm. Higher results were recorded during months of very low rainfall when evaporation would have lead

to higher salt content and the relative contribution of more groundwater to stream flow would have been greater. The lowest results were

obtained after periods of high rainfall. At EPL monitoring site W3 (Martins Creek), EC results remained generally constant, ranging from

119μS/cm to 1093 μS/cm. EC results for W6 (Blackwattle Creek) are anticipated to have fluctuated with responses to rainfall, groundwater

contribution and evaporation. The lowest EC level was observed in December 2011 after consistent rainfall. Higher levels up to 19,740

μS/cm were observed following an extended dry period. All three creeks are ephemeral and generally saline groundwater inflows

predominate when the fresh water flow slows.

The EC levels at W4 (Glennies Creek Up), W5 (Glennies Creek Down) and W11 (Glennies Creek NEH) all followed a similar trend

throughout the monitoring period. Recorded EC levels increased during the months of July 2011 to September 2011 due to lower rainfall. In

general the sites dam EC results fluctuated over the reporting period due to climatic factors such as rainfall and evaporation.

EC levels at clean water dam C4 (W10, EPA site) generally fluctuated with variations in climate, ranging from 1143μS/cm to 2640μS/cm.

Total Dissolved Solids (TDS)

The results for TDS analysis, including range, mean and standard deviation, are presented in Appendix 5. As expected, TDS results

generally followed similar trends as discussed in the electrical conductivity section.

Total Suspended Solids (TSS)

Summary

The results for TSS analysis, including range, mean and standard deviation, are presented in Appendix 5. Results are similar to previous

years and pre-mining studies, suggesting marginal influence from mining activities.

Site analysis



The TSS levels at the EPA EPL monitoring site W1 (Station Creek) and W6 (Blackwattle Creek) remained relatively low and consistent

throughout the monitoring period. TSS levels peaked at 2510mg/l at site W3 (Martins Creek) after three months of the sample site being

dry. The TSS levels in W4 (Glennies Creek Up), W5 (Glennies Creek Down) and W11 (Glennies Creek NEH) were also low and generally

remained consistent throughout the monitoring period. Slight fluctuations can generally be attributed to rainfall events.

TSS levels at W10 (Dam C4, EPA site) remained generally consistent, ranging from 0mg/l to 25mg/l throughout the year. Slight fluctuations

at W10 can generally be attributed rainfall events throughout the reporting period. This was evident at W10 in July 2011, when the TSS

level rose to 25mg/l, likely a result of a high rainfall in June 2011 and associated runoff.

TSS levels at W9 (Tisdell’s Dam), W8 (Tisdell’s Creek) and W7 (Stony Creek) were generally low during the reporting period, apart from an

isolated high reading of 670mg/L during February 2011 at W9. This reading may have been due to a high rainfall event and associated

runoff.

Overall, no surface water level triggers were exceeded and no reportable events occurred during the reporting period.

3.5 GROUNDWATER


In August 2005, a groundwater monitoring plan was submitted and approved by the Department of Natural Resources as required under

the Part 5 licence for the interception of groundwater by open cut mining.

A series of groundwater bores that were developed by Integra Coal Underground and a Department of Natural Resources reference bore

along with several more surface sites, were used to monitor any possible impact from Integra Coal mining activities on local groundwater.

Groundwater bore locations are shown in Figure 11.


Overall, no groundwater level triggers were exceeded and no reportable events occurred during the reporting period. The results for

groundwater analysis, including range, mean and standard deviation are presented in Appendix 5.

The pH remained relatively constant throughout the reporting period at all the groundwater monitoring points. EC was consistently low at

the Glennies Creek alluvial bore GC09 (289-564μS/cm) and has remained consistent but higher at the Richards Bore (4120-5340μS/cm).

Monitoring of the coal seam aquifers GC02 and GC05 has shown relatively high and consistent conductivity (7,780-14,500μS/cm). Only one

reading (GC05, May 2011) was slightly above the ranges sighted in the EIS for coal seam aquifers (9,500-14,360 μS/cm). Due to mine

water storage in the South Pit during the reporting period, groundwater inflow cannot be accurately measured.

Alluvium groundwater levels at Integra Underground, North Open Cut and Western Extension sites showed no response to mining

activities, remaining consistent over the reporting period. With the exception of GCP34, basement groundwater levels at the Western

Extension have remained consistent and are yet to show signs of depressurising. A significant drop in water level in GCP34, located to the

south of the Western Extension, was observed during the reporting period; however no triggers are in place for these basement water

levels. As expected, the North Open Cut basement groundwater piezometers are generally depressurising. Basement groundwater levels at

the Underground remained consistent throughout the reporting period.

3.6 CONTAMINATED LAND


The Integra Coal Environmental Management System details the procedures in place to ensure all potential contaminants are managed

effectively. All above ground hydrocarbon storage tanks at Integra Coal are held within a bunded area, with a containment capacity of 110%

of the largest tank to ensure any spills are isolated from the remainder of site. Emergency spill kits are placed throughout the mine to

enable prompt clean-up of minor hydrocarbon spills. Larger booms and spill kits are also kept in the store.




There have been no significant areas of hydrocarbon contamination identified on site. Small hydrocarbon spillages are effectively contained

and recovered as detailed in site procedures. There were no significant hydrocarbon spillage events that occurred during the 2010-2011

reporting period.

3.7 THREATENED FLORA


Flora and fauna management is legislated under the Environmental Protection & Biodiversity Conservation Act 1999 (EPBC Act) and the

Threatened Species Conservation Act 1999 (TSC Act). During the reporting period, clearing was undertaken for the Western Extension. In

accordance with the Flora and Fauna Management Plan for the Integra Coal Open Cut Project and project approval statement of

commitments, pre-clearing surveys were carried out and groundcover clearance protocols established.


Clearing works for the Western Extension commenced in mid-January 2011 and was completed by early April. Vegetation in the area was

dominated by native and introduced grasses with scattered paddock trees. A small stand of remnant woodland was located in the north-

west corner of the extension; however the area had been disturbed by stockpiling of top soil from previous mine operations. There were no

instances where a threatened or endangered species was knowingly impacted by land clearing during the reporting period.

3.8 THREATENED FAUNA


Prior to clearing for the Western Extension, habitat trees and records of threatened and protected fauna were recorded. Hollows in post

clearing felled trees were inspected by a suitably qualified ecologist, with uninjured animals to be released into nearby habitat.

A threatened species monitoring survey was conducted in April 2011, in accordance with the North Open Cut Threatened Species

Management Plan. Ecological monitoring consisted of:

• The inspection of 125 installed nest and roost boxes for a variety of tree hollow dependent fauna, including the threatened Brush-

tail Phascogale;

• Surveys along 7 designated transects for the threatened bird, the Grey-crowned Babbler; and

• Monitoring of feral predators by use of sand traps and remote infra-red cameras.


Injury and fatality were low during Western Extension clearing, with only one mortality recorded. Felled habitat trees were left undisturbed

for a period of several days to enable animals to disperse to adjoining treed areas.

Results of the threatened species monitoring in April 2011 indicated an overall increase of nest boxes occupied. Populations of the

threatened Grey-crowned Babbler were found along transects established in the biodiversity offset areas, however there was no evidence

of the Brush-tailed Phascogale within the monitoring areas. The threatened Squirrel Glider, which had not been detected in the Integra

offset areas previously, was found to have constructed a nest in four (4) of the boxes. No feral animals were observed during the monitoring

period.

There has been no instance where a threatened or endangered species has been knowingly impacted by land clearing during the reporting

period.



3.9 WEEDS


Integra Coal has developed a site Weed Management Plan to enable a long term strategic approach to controlling environmental weeds

within the mine boundaries and buffer lands. The Weed Management Plan includes the following obligations:

• Continued surveillance of Integra owned land for noxious weeds;

• Staff training in the identification of noxious weeds;

• Maintaining weed control campaigns;

• Prevention of the establishment of additional noxious weed species; and

• Maintain up to date knowledge of the latest weed control techniques and products.

During the reporting period, the Glennies Creek Riparian Management Plan was initiated, targeting priority weed species along sections of

Glennies Creek managed by the Integra Mining Complex.


There was no evidence of significant noxious week infestation on-site or within buffer lands during the reporting period.

The Weed Management Plan continued to be implemented throughout the reporting period.

Rehabilitation and restoration of Area 2, as identified within the Glennies Creek Riparian Management Plan, commenced in December

2011. The area, situated between the Camberwell township and Western Extension of the South Pit, was identified as high priority due to

low weed infestation rates. High priority weed species targeted in the area included:

• Willow (Salix spp);

• Spiky Rush (Juncus acctus);

• Green Cestrum (Cetrum parpui); and

• Castor Oil plant (Ricinus communis).

Further weed control activities, including target areas identified under the Glennies Creek Riparian Management Plan, are scheduled for

2012.

3.10 BLASTING


The Integra Mine Complex operates a blasting management system that includes the use of a meteorological model to evaluate weather

conditions prior to blasting. The model considers wind speed and direction, as well as sigma theta as an indicator of the presence of an

atmospheric inversion, to assist in predicting unsuitable blasting conditions. If unsuitable conditions are detected, blasting can be postponed

until the conditions become suitable.

Integra Coal operates an Ecotech blast monitoring system to record and return ground vibration and air blast overpressure results to the

mine office directly following each blast. Table 10 displays the locations of the blast monitors as specified in the Blast Management Plan

and others installed for the purpose of infrastructure risk management or to address community concerns.



Table 10 Location of Blast Monitors

Monitoring Site Address/Location

Lambkin residence Bridgman Rd, Singleton NSW 2330

Noble residence Glennies Creek Rd, Singleton NSW 2330

Cherry Residence Middle Falbrook Rd, Singleton NSW 2330

Langdon Residence Thomas Lane, Mt Olive NSW 2330

Dulwich Middle Falbrook Rd, Singleton NSW 2330

Western Highwall Open Cut pit highwall

Tailings Dam 2 (TD2) Tailings Dam 2 embankment

Possum Skin Dam (PSD) Possum Skin Dam embankment

Watling residence Glennies Creek Rd, Singleton NSW 2330

Cheetham Residence Middle Falbrook Rd, Glennies Creek NSW 2330

Jensen Residence Thomas Lane, Mt Olive NSW 2330

Bridge Residence Middle Falbrook Rd, Singleton NSW 2330

Moran Residence Glennies Creek Rd, Singleton NSW 2330

Dulwich is monitored due to local historical significance and as a requirement of the Project Approval.

The EPL and Project Approval specifies that overpressure shall not exceed 120 dB (L), and maximum peak particle velocity shall not

exceed 10 mm/s. Five percent of blasts may exceed 115 dB (L) and 5 mm/s respectively. The limits are based on comfort criteria and it is

the aim for all blasting conducted at the Integra Mine Complex to be below these criteria.


There were 214 blasts at Integra Open Cut during the reporting period.

There were no instances where the recorded peak particle velocity was greater than 10 mm/sec and five (5) instances where recorded peak

particle velocity was greater than 5 mm/sec at privately owned residences. The 5 blasts resulting in ground vibration greater than 5 mm/sec

equalled 2.7% of total annual blasts and fell within the allowable annual exceedance of 5% total blasts.

During the reporting period there were eleven (11) instances where overpressure results exceeded 115dB(L) and four (4) instances where

the recorded overpressure exceeded 120dB. The 4 blasts exceeding 120dB(L) were reported as incidents to the appropriate government

regulators (EPA and DP&I). The 11 blasts exceeding 115dB(L) equalled 4.7% of total annual blasts and fell within the allowable annual

exceedance criteria of 5% total annualblasts.

Data capture for blast monitors this reporting period was affected, on occasion, by:

• Monitor malfunction; and

• Maintenance/calibration or replacement of monitors.

Blast monitoring results and submitted incident reports for blast exceedances are provided in Appendix 6. The higher number of blast

exceedances was due to the close proximity of the Dulwich residence which in previous years was no included in exceedance reporting as

it was within the Camberwell Coal “zone of affectation”.

The Integra Mine Complex received twenty two (22) complaints from the community relating to blasting, representing a decrease of forty-

seven (47) from the previous reporting period.

During the reporting period, blasting undertaken at Integra Mine Complex Underground Operation utilized 73.25 sticks (each stick being

approximately 0.341kg) of powergel explosive within underground areas only. No community complaints were received as a result of the

underground blasting activities and there is no evidence to suggest that blast limits were exceeded.



3.11 OPERATIONAL NOISE


The Integra Mine Complex undertakes the following noise control measures to manage potential noise impacts from the mine.

• Noise is monitored to measure noise levels and determine contributing noise sources and, where required, to assess the

practicability of additional noise controls;

• Monitoring of overpressure from blasting activities;

• Manage operation of all site plant and equipment to satisfy the necessary acoustic performance;

• The use of a light signaling system, rather than audible signals for the train loading system;

• Maintenance of mobile equipment and conveyors to ensure optimal (including noise) performance;

• Selection of new equipment with consideration of sound power levels;

• Development and implementation of a complaint management protocol that facilitates investigation and actioning of noise related

complaints;

• Construction of an acoustic bund along the RL 100 haul road, from the Integra Mine Complex Underground Operation;

• Monitoring of the meteorological parameters, Sigma Theta and temperature lapse rate to assist in inversion detection and

evaluation;

• Use of slower and wider conveyors; and

• Not fully emptying the reject hopper between loads to prevent initial loading noise.

Noise surveys are undertaken in accordance with the site Noise Management Plan and NSW Industrial Noise Policy (EPA, 2000) on a

quarterly basis as required by the Integra Mine Complex Project Approval Statement of Commitments. Monitoring was completed and

reported for the Underground and Open Cut by Global Acoustics and Spectrum Acoustics respectively. Noise surveys involve attended

noise monitoring at three locations (Lambkin, Payne and Hall residences), on three occasions over a period of 24 hours. Meteorological

conditions during monitoring surveys is sourced from the site weather station. Noise criteria as specified in the Project Approval (Schedule

3, Condition 2) is provided in Table 11.



Table 11 Noise Criteria at Sensitive Receptors

Note: NAG refers to noise assessment group. Locations are provided in Figure 11.2 of the Integra Open Cut Project

Environmental Assessment Volume 1.

Location

Day Evening Night

LAeq(15min) LAeq(15min) LAeq(15min) LA1(1min)

NAG 1 All privately-owned land 38 38 36 46



NAG 4

99, 100 39 39 39 47

88, 91, 95 40 40 40 47

105, 161 41 41 41 47

All other privately-owned land 42 42 37 47

NAG 5

104 35 35 35 52

139 36 36 36 52

103 37 37 37 52

121 40 40 40 52

118, 154 43 43 43 52

112 45 45 45 52

111 47 47 47 52


NAG 6

137 35 35 35 48

133 37 37 37 48

132 38 38 38 48



NAG 8

142 35 35 35 45


NAG 9

146, 148, 149 35 35 35 48

143, 144, 145, 147, 150, 151, 152 36 36 36 48

2 37 37 37 48

3, 4 39 39 39 48




Table 11 continued.

Table 2 continued.

Location

Day Evening Night

LAeq(15min) LAeq(15min) LAeq(15min) LA1(1min)

NAG 10

5 40 40 40 47 6, 11

41 41 41 47

8 42 42 42 47


NAG 11

18 35 35 35 49

20, 21 37 37 36 49

19 37 37 37 49

17 38 38 38 49

7 39 39 39 49

12, 15 40 40 40 49

14, 16 42 42 42 49


NAG 12

52, 55 35 35 35 45

51, 56 37 37 37 45

53, 57 38 38 38 45

50, 54 39 39 39 45

62 40 40 40 45


NAG A

24, 25, 26, 27, 28, 29, 30, 36, 37, 38, 39, 40, 41 35 35 35 46

31 36 36 35 46

42, 43 36 36 36 46

32 37 37 35 46

22, 23 37 37 37 46

34 39 39 36 46

35 39 39 35 46


NAG B All privately-owned land 37 37 35 45

NAG C

47 39 39 39 45

63 40 40 40 45


NAG D

44, 48 36 36 36 48

49 39 39 39 48


NAG F

65, 66 39 39 39 50

67 40 40 40 50

68 42 42 42 50


NAG G All privately-owned land 41 41 39 50





Noise surveys are conducted quarterly throughout the year. Noise monitoring results for Integra Mine Complex are presented in Appendix 7. The results demonstrate that the Integra Mine Complex satisfied the project approval noise criteria during all attended monitoring events.

3.12 VISUAL AMENITY AND LIGHTING


The Integra Mine Complex operates several mobile lighting plants in addition to headlights on mobile plant and fixed lighting, near the

workshop, open cut and underground administration areas, the CHPP and associated facilities. A number of management techniques to

control and minimise the visual impacts are employed at Integra Mine Complex and off-site operations (Forest Road ventilation shaft site

and gas drainage borehole sites) including:

• Visual bunds established to improve visual amenity;

• Light positioning and orientation are assessed when placing lighting plants on site;

• Positioning mine entrance and exit roads to prevent headlights shining towards adjacent residences;

• Utilisation of a “Low Spill” design for car park area lighting; and

• Awareness training was provided to educate employees regarding the sensitivity of the Integra Mine Complex’s proximity to local

residents.


All lighting plants are located and directed towards the work area and not deliberately directed towards residences or public roads. There

were three (3) community complaints regarding lighting during the 2010-2011 reporting period, all reported via the Environmental Hotline. In

each instance the light was relocated and the complainant contacted to ensure the problem had been satisfactorily addressed.

3.13 ABORIGINAL HERITAGE


Aboriginal cultural heritage values are protected in accordance with the National Parks and Wildlife Act 1974 (NPW Act) and the

Environmental Planning and Assessment Act 1979. Integra Coal acknowledges the cultural importance of Aboriginal archaeological sites

and how these and other sites in the Hunter Valley symbolise our past and connect to the local Aboriginal people, especially people of the

Wanaruah/Wonnarua Tribe.

Protected sites include an area along Martins Creek. Located within this fenced and restricted area are six heritage sites that have been

protected to ensure that these sites are not impacted. Furthermore, all staff and contractors must undertake an environmental induction

component before undertaking any work onsite. This induction includes information on Aboriginal heritage sites, their locations, what

constitutes an artefact and what to do if an item of Aboriginal heritage is located.

An Aboriginal Archaeological assessment was conducted for the Western Extension project area during the reporting period. Field

investigations were carried out to identify and record Aboriginal sites and areas of potential based on landscape characteristics. Artefacts

found on site were relocated to a keeping place on site.


The original Camberwell Coal EIS and associated studies identified aboriginal heritage on what is now the Integra Mine Complex. Where

sites were to be impacted, the appropriate Consents to Destroy under Section 90 of the NPW Act were obtained in advance. Sites that have



been identified and did not have Consent to Destroy are protected by fencing and are subject to inspections to ensure they have not been

damaged. A number of Aboriginal heritage items were relocated during the initial phase of the Glennies Creek Open Cut Project (North

Open Cut), and undertaken in accordance with the approved Aboriginal Heritage Management Pan for the project,

No known sites have been disturbed or destroyed during this reporting period.

3.14 NON-ABORIGINAL HERITAGE

No items of non-aboriginal heritage have been identified or are considered to occur within the Mine Complex.

3.15 NATURAL HERITAGE

With the exception of the historic bridge site and an area reportedly containing the grave site of a four year old European girl, no other items

or areas of natural heritage significance are considered to occur within the Mine Complex.

3.16 SPONTANEOUS COMBUSTION AND ACID ROCK DRAINAGE


Spontaneous combustion and acid rock drainage are managed in accordance with the Mining Operations Plan. The Mining Operations Plan

states that reject coal from the CHPP is to be mixed with overburden materials to minimize the risk of spontaneous combustion. Due to the

coal stockpiles’ turnover rate, coal has low residency times reducing the risks of stockpile heating. Furthermore, operators continuously

visually monitor the coal stockpiles and mining areas for signs of spontaneous combustion.


Over the life of the Integra Mine Complex (or its predecessor entities) there have been no instances of spontaneous combustion – largely

attributed to the low propensity of the coal seams mined.

The Integra Mine Complex continues to evaluate water quality monitoring results to assess potential for acidification due to acid mine

drainage. During the 2010-2011 reporting period there was no indication of acid rock drainage.

3.17 BUSHFIRE MANAGEMENT


The Integra Mine Complex has a Bushfire Management Plan which was developed in accordance with Mining Lease obligations. The

objectives of the Plan are to minimise the risk of bushfire and to provide control strategies should an outbreak occur. Firebreaks are

reinstated on an annual basis - generally in spring - in preparation for the hotter, higher risk, summer months.


There were no instances of bushfire during the reporting period.

3.18 MINE SUBSIDENCE

3.18.1. Management/Monitoring

Longwall mining involves the removal of a substantial proportion of the coal seam which causes collapse of the overlying rock strata into the

goaf, with consequent resultant subsidence of the natural surface. The extent of subsidence depends on the width and thickness of the coal

seam removed in each longwall panel, the characteristics of the overlying rock and the depth of mining. The settlement and binding of the

strata to the surface results in a subsidence trough which is wider than the actual longwall panel extracted.



By contrast, development of first workings, such as the north-west and north mains, involves the removal of a minor portion of the coal

seam, is designed for stability, does not cause any collapse of the rock strata and hence, does not cause subsidence.

Subsidence management for the Integra Mine Complex underground operations within all longwall panels mined to-date is undertaken in

accordance with appropriate approvals. All mining beyond LW6 has been undertaken in accordance with the subsidence management

approval process administered by the Department of Resources and Energy. This process, an extension of the former Section.138 process,

requires an assessment of the surface environment in the area of proposed underground mining; identification and characterisation of

surface and sub-surface features that may be affected by the proposed mining; subsidence prediction, and an assessment of the

subsidence impacts and risks. The Subsidence Management Plan for longwall panels LW7 to LW9 was approved by the Department of

Primary Industries (now Department of Resources and Energy) on 14 March 2006. The subsidence management plan for longwall panels

LW10 to LW17 was approved on the 17 October 2008 and is currently in use.

Central to the subsidence management plan is monitoring, reporting and a review of outcomes against predictions.

Subsidence monitoring undertaken at the Integra Mine Complex Underground Operations in order to verify modelled subsidence predictions

and, if required, model refinement, involves:

• Surveys along a single fixed transect crossing all longwall panels (normal to the chain pillars) after the completion of each

longwall block;

• Survey of a monitoring line at 45 degrees to the longwall panel (Line F on Figure 6);

• Surveys of three monitoring lines parallel to the Mt Owen Rail Spur, each at different offsets to the Rail Spur;

• Surveys of Bettys Creek, Main Creek and its tributaries prior to, during and following mining, to measure changes in gradient and

cross-section, and identify any pondage; and

• Photography of high risk areas to observe increases in, or changes to, erosion and sedimentation.

Subsidence monitoring transects in place as of 31 December 2011 are shown on Figure 6.

The extent and form of subsidence monitoring for current and future longwall mining will be undertaken in accordance with approved

subsidence management plans.

3.18.2. Results

Mine-induced subsidence recorded to-date over LW1 to LW11 has ranged up to 1.50m, with future subsidence as a consequence of Middle

Liddell Seam extraction currently projected to remain in the range of 1.5m. Detailed subsidence predictions which will reflect measured

subsidence in completed panels will be provided in each future SMP.

Surface affects observed as a consequence of subsidence during the reporting period were limited to:

• Changes in fence wire tension resulting in breakage; and

• Minor surface cracking.

Both the above mentioned impacts were identified through the inspection regime conducted in line with the relevant Subsidence

Management Plan and any required remediation works were completed promptly in consultation with the relevant stakeholders.

During the reporting period, the Integra Mine Complex was unaware of any subsidence-induced damage to residences or structures which

are covered by the Mine Subsidence Board, and received no requests for information from the Board.

3.19 HYDROCARBON MANAGEMENT

3.19.1. Objectives and Management

It is the Integra Mine Complex’s objective that:



• The management of all hydrocarbons and other chemicals is carried out in accordance with Integra Mine Complex

Underground Operations EMS procedure Hydrocarbon & Chemical Management (PRO_0380);

• All bulk hydrocarbons, i.e. fuel, oils, grease etc (both new and waste)are retained at the Underground Operations are

contained within bunded areas inside the contained “dirty” water management system;

• Hydrocarbon contaminated materials are disposed of, or remediated, appropriately; and

• Minor spillages, if occurring, are cleaned up and the contaminated soil either bio-remediated or transferred off-site to an

appropriately licenced waste disposal area.

Major spillages requiring statutory reporting to the EPA and/or the DP&I, if occurring, would be managed in accordance with the Integra

Mine Complex Underground Operation’s Hazardous Material Spill Response Procedure (PRO_0313) which details the appropriate response

to hazardous material spills and operates under the guidance of the Emergency Management System (OMP_0300).

3.19.2. Performance

There were no significant oil spills during the reporting period. Minor hydrocarbon spills were cleaned up using spill-sorb and disposed of

into dedicated spill-sorb bins.

A fuel leak from an inground transfer pipe within the Open Cut Operations fuel farm area was discovered during the reporting period. The

leaking pipe was repaired. All fuel impacted soil was excavated and removed from site by a licensed waste transporter.

3.20 METHANE DRAINAGE & VENTILATION

3.20.1. Monitoring

The Integra Mine Complex Underground Operations employ an extensive program to monitor air quantity and quality within its underground

workings and exhausting from the ventilation shaft and gas drainage boreholes.

Monitoring methods include:

• Hand held;

• In-situ electronic real time system (underground locations powered from surface);

• A tube bundle monitoring system (surface gas analyser sampling underground locations); and

• Gas chromatograph (bag samples taken from underground and processed on the surface).

3.20.2. Methane Output

Average methane output levels recorded during the reporting period were:

• 0.66% in 250m3/sec in the main return; and

• 67% in 1000L/s at gaswell sites, with net flow approximations based on measured data and duration. Approximations

considered the two exhausting options (free venting and forced extraction configurations) on LW6, LW7, LW8, LW9 & LW10.

Flow rates varied from approximately 50 L/s to 360 L/s depending on the exhausting option utilised. Flow measurement is

verified by a combination of physical measurement and real time monitoring.

3.20.3. Methane Level Impacts on Mine Production

There were a number of mining delays as a result of methane levels exceeding 2.0% during the reporting period. However, periods when no



diesel equipment could operate in the tailgate roadway (CH4 > 1.0%) did occur as a consequence of barometer fluctuations in conjunction

with goaf seal leakage, higher gas content within the area and increased production rates releasing increased volumes of methane. Goaf

seal standards have remained of a high standard and minimise the leakage from the goaf into the return.

Using a combination of the two extraction plants, two free venting stacks and free venting direct connections to the Glennies Creek Power

Station, overall management of methane in the tailgate roadway has been significantly improved.

Gas drainage boreholes, installation of quality sealing devices and volumetric dilution will continue to be used as a primary method for

controlling methane in the underground roadways.

3.20.4. Methane Re-use

Condition 12(b)(viii) of DA 105/90 (as amended) requires that the Integra Mine Complex Underground Operations provide an annual

evaluation of the feasibility of methane drainage and re-use.

The construction of the Glennies Creek methane fired power station (Envirogen) commenced in 2006 with commissioning being carried out

in the latter half of 2007.

Since that time, a significant volume of methane has been captured and combusted to generate electricity. Table 12 and Figure 21 identify

the volume of methane captured and used in electricity generation. During 2011, the power station used 12,067 tonnes of methane.

Table 12 Methane Reuse - 2011

MONTH Methane (tonnes) sent to Envirogen

January 1056

February 1021

March 1072

April 1169

May 885

June 1014

July 854

August 867

September 931

October 1091

November 1016

December 1090

TOTAL 12,067



Figure 21 Methane sent for reuse in Glennies Creek Power Station (Envirogen) 2011

3.21 SECURITY AND PUBLIC SAFETY

3.21.1. Management

Management of security and public safety at the Integra Mine Complex is achieved through a combination of physical measures, education

and training as outlined below.

• Security

The Integra Mine Complex Surface Facilities Areas are fenced with only one main access roadway leading to the open cut and underground

operational areas. Additional fencing is in place around sensitive areas such as the explosive magazines.

Public entering the mine site are directed by a sign stating “NO UNAUTHORISED ENTRY, ALL VISITORS AND CONTRACTORS TO

REPORT TO THE MAIN OFFICE” with an additional sign which directs the visitors and contractors to the car park and main office complex.

All visitors and contractors have to login using the electronic onsite tracking system, and logoff when leaving site.

The site is manned 24 hours, 7 days per week with a fully functioning control room. In addition, licensed security contractors provide patrols

of the mine site areas that are not always visited on a regular basis by site employees.

• Mine Inductions

No visitor or contractor is allowed on the Integra Mine Complex without having an appropriate induction. The inductions, which determine

the areas where visitors and contractors are allowed to go on the mine site, are valid for a period of two years (in the case of contractors).

When on-site, visitors are escorted by mine personnel at all times.

• Personal Protection Equipment

Personal Protection Equipment (PPE), which complies with the relevant Australian Standards, is available to all visitors and contractors that

come onto site. Contractors are, however, expected to supply their own PPE.

All areas where PPE is to be worn are clearly sign-posted.

Job Safety Observations which are conducted by deputies and all staff members ensure that correct PPE is being worn at all required times.



3.21.2. Performance

The management procedures in place were effective throughout the reporting period, with no incidents involving unauthorised entry or injury

to the public.

3.22 INCIDENTS AND RISKS


Broad Brush Risk Assessments are undertaken regularly as a means of reviewing the environmental risks associated with activities at the

Integra Mine Complex including:

• Open Cut Mining,

• Surface Drilling,

• Coal Handling and Preparation,

• Maintenance Facilities,

• Supply and Procurement; and

• Underground Mining

All identified risks have appropriate management controls to assist in reducing the potential for, and severity of, environmental impacts.


Nine (9) environmental incidents occurred at the Integra Mine Complex during the 2010-2011 reporting period.

Table 13 Summary of Environmental Incidents during 2010-2011 Reporting Period

Date/s Occurred Reported to Nature of Incident

23/03/2011 EPA, DoP Blast Exceedance (128.37dB (L))

31/05/2011 EPA, DoP Discharge of Sediment Laden Water Offsite

14/06/2011 EPA, DoP Discharge of Sediment Laden Water Offsite

16/06/2011 EPA, DoP Backup Seepage Collection Dam overflow

32 occurrences between 26 November 2010 and 13 July 2011 DP&I Operating outside approved hours

14/07/2011 EPA, DP&I Blast Exceedance (121.26dB(L))


23/11/2011 EPA, DP&I Discharge of Sediment Laden Water Offsite


3.23 WASTE MANAGEMENT


Sewage Treatment/ Disposal

The Integra Mine Complex has on-site sewage treatment systems which includes a primary aeration tank and a secondary maturation



pond. Wastewater from the system is used to irrigate rehabilitation areas.

Rubbish Disposal

Over the reporting period, Theiss has managed the disposal of the majority of waste streams. The Total Waste Management System

(TWMS) has continued to operate throughout the 2010-2011 reporting period. The TWMS consolidated a number of waste contracts into a

single contract to ensure all waste streams are properly accounted for and to encourage greater recycling of all materials on site. Additional

training has been provided for all employees to ensure a greater understanding of the importance of separating waste streams to achieve

effective and responsible waste management.


Open Cut Operations

No incidents were experienced during the reporting period.

Table 14 shows the itemisation of waste streams for the reporting period.

Table 14 Integra Open Cut Waste Streams and Tonnages

Waste Category Weight (tonnes)

Hazardous mud, dross and dusts from treatment systems 11

Used oils and greases 299

Batteries 5

Waste of asbestos <1

Waste of health services <1

Waste and materials contaminated with oils and greases 5339

Paints, varnishes, solvents and chemicals 9

Sand, crushed, rubble 1

Rubbers and tyres 91

Wood 15

Metallics 177

Paper and cardboard 14

Non-hazardous mud and dusts from treatment systems 26

Mixed waste 192

Stockyard and refractory waste 161

Total 6339

Underground Operations

Waste streams were managed as per the Integra Mine Complex Underground Waste Management Procedure including the provision of

relevant numbers of bins placed at strategic locations around the surface facilities. Waste generated underground was brought to the

surface prior to being managed.

Table 15 provides a summary of the Waste volumes managed by Thiess during the reporting period.



Table 15 Integra Underground Waste Streams and Tonnages

Waste Category Weight (tonnes)

Used oils and greases 33

Waste and materials contaminated with oils and greases 2

Paints, varnishes, solvents and chemicals 9

Rubbers and tyres 10

Metallics 303

Paper and cardboard 1

Plastics 1

Non-hazardous mud and dusts from treatment systems 214

Mixed waste 369

Glass 1

Total 943

3.24 INDEPENDENT ENVIRONMENTAL AUDIT

An independent environmental audit was required to be conducted by December 2011 as per Schedule 5, Condition 8 of the Integra Mine

Complex Project Approval. Consultant firm Graham A Brown and Associates commenced the Integra Coal Complex Independent

Environmental Audit in early December 2011. The draft report is expected in April 2012, with the final report (to include recommendations

and comments) available for submission to the Director-General by June 2012.

3.25 INDEPENDENT REVIEW

An independent review of the Integra Mine Complex’s noise and air quality compliance with Project Approval requirements was undertaken

by consultants EMGA Mitchell McLennan in 2011 after requests from neighbouring landowners to the DP&I.

The review found that the Integra Mine Complex complied with the Project Approval over the review period (17 months) in terms of annual

average TSP and PM10 dust results. With regard to noise under operator attended monitoring, the review found that Project Approval

conditions were complied with at all receivers with the exception of three privately owned dwellings. The three properties subject to non-

compliance were either entitled to noise mitigation or the exceedance was within the allowable 2dB tolerance of the mitigation criteria.

Those landowners who requested the independent review were provided with a copy of the consultant’s report and the findings discussed

with them by Integra Mine Complex environmental staff.



4. STAKEHOLDER RELATIONS

4.1 EXTERNAL COMMUNICATIONS

The Integra Mine Complex has committed to focus on building good working relationships with the community through effective

communication. Integra Coal Operations has a policy to communicate openly and honestly with the community, which is achieved through

the operation of a 24 hour hotline and other methods as detailed in Table 16.

The Integra Mine Complex 24 hour Environmental Hotline service is advertised on the Company website, in newsletters and in local

newspapers on a regular basis.

Table 16 Methods of Communication

Stakeholder Method of Communication

Adjacent Residents • Personal visits and phone conversations

• Newsletters

• Integra Mine Complex website

Singleton • Newsletters

• Site Tours and Presentations

• Community Consultative Committee


Singleton Shire Council • Presentations

• Newsletters


• Phone conversations

• Community Consultative Committee

Government Departments • Scheduled external reporting of monitoring results and performance

• Newsletters

• Personal visits and phone conversations

Aboriginal Groups • Newsletters

• Meetings and site inspections (as required)

Employees and their Families • Monthly Communications Meetings

• Tool Box Talks

• Notice Boards

• Job Safety Observations (JSO)

• Newsletters

• Integra Mine Complex intranet and website

Educational Providers • Site tours and presentations

Neighbouring Industry • Site tours and presentations




4.2 COMMUNITY CONSULTATION

4.2.1. Community Consultative Committee

The Integra Mine Complex Community Consultative Committee (CCC) was established in 2011 as per Condition 5 of Schedule 5 in Project

Approval. The Integra Mine Complex CCC replaced the separate CCC meetings conducted for the Open Cut and Underground projects. In

accordance with the Guidelines for Establishing and Operating Community Consultative Committees for Mining Projects (Department of

Planning 2007), the Integra Mine Complex was represented by members of the Sustainability, Environment & Community and Management

team. The remainder of the committee was comprised of local residents, representatives of Singleton Shire Council and relevant

stakeholders. Meetings were held every six months with minutes of each meeting distributed to CCC members and available on request.

Three CCC meetings were held during the reporting period:

• 25th November 2010

• 10th May 2011

• 15th November 2011

From 2012 onwards, the CCC is scheduled to meet quarterly.

The minutes of the meetings held during the reporting period are presented in Appendix 8.

4.3 COMMUNITY AFFAIRS

4.3.1. Community Newsletter

The Integra Mine Complex’s community newsletter is distributed to all local landholders in the vicinity of the operation, any interested

parties who have contacted the operation and residents of Camberwell Village. A newsletter was distributed in August 2010 that provided

the community with updates on mining operations, community, health and safety, environment and employment. The next community

newsletter is scheduled to be distributed in 2012.

4.4 COMMUNITY LIAISON

In addition to community liaison through CCC meetings, Integra Mine Complex personnel also undertook irregular informal discussions with

local landholders and residents and formal one-to-one consultation programs with those members of the local community who may be

affected by issues such as subsidence, blasting, dust and noise.

An independent review of noise and dust was completed by consultants EMGA in October 2011. Consultation, as part of the review, was

undertaken with identified stakeholders by Integra Mine Complex personnel and EMGA consultants.

The Integra Mine Complex maintains a partnership with the Coal Industry Centre (CIC) in Singleton, co-ordinating site and facility tours for

interested parties.

4.5 MINE LIFE PLANNING

Integra Coal Operations previously engaged GSS Environmental Pty Ltd to develop a Mine Closure Plan in line with Condition 33 of the

Development Consent 86/2889 (that is, prior to the current Project Approval). The Mine Closure Plan was to enable Integra Coal

Operations to progressively implement effective mine closure and decommissioning whilst continuing operations in the medium term. The

plan investigated options for future use of the site; investigated ways to minimise the socio-economic effects associated with mine closure;

described measures to manage ongoing environmental responsibilities; and described methods of monitoring overall site rehabilitation. The

Project Approval granted in 2010 had the effect of extending open cut operations until 2022 and consequently delaying mine closure.



4.6 SOCIAL/ECONOMIC CONTRIBUTIONS, DONATIONS AND SPONSORSHIP

The Integra Mine Complex contributes to the community at a both a local and State level. There were many contributions made to the

community through the reporting period in the form of donations and contributions to the total of approximately $91,000.These donations

and contributions included those made to:

• Black Coal Cup Ball;

• Westpac Rescue Helicopter;

• Singleton Prime Beef Stock Competition;

• McGrath Breast Cancer Foundation; and

• Occupational Health and Safety Conference.

4.7 EMPLOYMENT STATUS AND DEMOGRAPHY

At the end of the reporting period a total of 674 employees and contractors were working at the Integra Mine Complex. This represents an

increase of 184 compared to the previous reporting period. Table 17 provides information on employment levels by classification.

Table 17 Permanent Employment Levels

Classification No. at 31/12/11

Integra Coal Operations Staff 49

Contractors 5

Open Cut Wages 258

Contractors 69

Underground Wages 181

Contractors 112

Total 674

The increase in employment levels is primarily a function of increased manning in the development area, along with the employment of shift

engineers to strengthen the maintenance and engineering departments.

Singleton is the dominant place of residence for Integra Mine Complex employees and contractors, with other employees commuting mainly

from Newcastle, Cessnock and Muswellbrook areas.

4.8 ENVIRONMENTAL COMPLAINTS


Integra Coal operates a 24 hour Environmental Hotline, 1800 505 361, whereby the Environment and Community Advisor can be contacted

by members of the community regarding any concerns they may have. The hotline also serves to provide information on upcoming blasting

activities.


There were one hundred (100) community complaints received by the Integra Mine Complex during the 2010-2011 reporting period. The

distribution of primary nature of the complaints is displayed in Table 18 and illustrated in Figure 22. Please note that the total of one

hundred and one (101) in Table 20 is a result of one complaint about two aspects of operation.

Figure 23 displays the monthly breakdown of complaints from 2009 to 2011. The 100 complaints received for the combined Integra Open



Cut, North Open Cut and Underground reporting periods represent an overall decrease of 37 complaints compared to the previous

reporting periods.

Table 18 Number of Complaints

Primary Nature of Complaint

Site Blast Dust Light Noise Other Total

Open Cut 10 11 0 14 0 35

North Open Cut 12 15 3 28 3 61

Underground 0 1 0 1 0 2

Off-site 0 0 0 2 1 3

Total 22 27 3 45 4 101

Figure 22 Nature of Complaints during Reporting Period

Figure 23 Comparision of Monthly Complaints 2009 - 2011

The Integra Mine Complex remains committed to managing complaints in a proactive manner. All comments are filed in the Integra Mine

Complex complaints register as required by the Environmental Protection Licence 3390 and Project Approval Condition 10 of Schedule 5.

A summary of all complaints and actions taken is provided in Appendix 9.



5. REHABILITATION

5.1 ENVIRONMENTAL MANAGEMENT

The land at Integra Mine Complex prior to the commencement of mining operations had a long history of clearing and agricultural or

pastoral land use which resulted in considerable modification of native vegetation and faunal habitat. The majority of the area was cleared

for pasture with irrigation on the Glennies Creek floodplain. Clearing resulted in both grasslands devoid of trees and artificially induced open

woodland with scattered mature trees.

Rehabilitation at Integra is undertaken progressively as outlined in the current MOP, REMP, EA and Project Approval commitments. The

rehabilitation of the final landform features will be integrated across the underground, open cut and surrounding natural landforms.

The major objective of the rehabilitation process is to:

• return the site to a suitable land capability class;

• reshape all slopes to gradients which provide long term stability;

• locate dams on natural and reformed watercourses and gullies to provide short term retention and sedimentation control during

mining and rehabilitation, and long term stock watering;

• prevent contaminants from leaving the site;

• revegetate lands disturbed by mining activities; and

• minimise dust generation during the rehabilitation process.

Some changes were made to rehabilitation areas due to mining operations in the NOC requiring the emplacement of materials over

rehabilitation. The rehabilitation summaries and plan figures for each site are provided in Appendix 10.

5.2 ENVIRONMENTAL PERFORMANCE

5.2.1. Summary

Rehabilitation of Area 2 as identified under the Glennies Creek Riparian Management Plan commenced in late 2011. Ongoing remediation

activities in the area include:

• Fencing for livestock exclusion;

• Target weed management;

• Re-vegetation – an area of 6Ha has been identified for re-vegetation work;

• Debris removal; and

• Erosion works.

Monitoring of the rehabilitated areas will be conducted by Integra employees and maintenance carried out as required. The restoration of

creek frontage along Glennies Creek satisfies commitments under the Integra Project Approval and Open Cut EA to rehabilitate

approximately 1km of Glennies Creek riparian zone on Integra owned land annually for the life of the project.

Aerial seeding around the North Open Pit Overburden Embankment, as depicted in Plate 1, was conducted in December 2011 in

accordance with the Integra Project Approval Statement of Commitments.



Plate 1 Location of Aerial Seeding

Twenty-eight hectares was seeded at a rate of 30 kilograms per hectare of seed mixed with 100 kilograms per hectare Granuloc fertilizer.

Seeding was completed to reduce dust and as a precursor to final rehabilitation of the NOC Overburden Embankment. Progress of the

aerial seeding is illustrated in Plate 2.



Plate 2 Aerial Seeding

Further rehabilitation of approximately 30hectares in the North Open Cut is scheduled to be carried out in the 2012 reporting period.

5.2.2. Buildings

No buildings were renovated or removed during the reporting period.

5.2.3. Native Animal Control

An eastern grey kangaroo culling program occurred in December 2010 after Integra Coal received 100 tags from National Parks and

Wildlife Service.

5.2.4. Feral Animal Control

A wild dog control program was undertaken from April to June 2011. Trapping was initially conducted in early April, followed by a 1080

baiting program from May to June.

5.2.5. Rehabilitation Monitoring

During the reporting period, rehabilitation monitoring of landforms and associated water management structures, plus plant vigour and

cover, were monitored by way of inspections to assist in the management of instability, erosion and/or failure. This process will continue

over the life of the mine, with the extent and nature of activities undertaken being consistent with the MOP.




6. PROPOSED MINING ACTIVITIES 2012

6.1 MINE DEVELOPMENT

In accordance with the current Project Approval mining operations will continue in the Western Extension of the South Pit, the North Pit and

within the Underground longwall panel 11 during the next reporting period.

Completion of the Hebden Seam man and materials and conveyor drift are scheduled for the end of 2012. In addition, drilling of the sixteen

(16) surface to in-seam (SIS) holes for the Hebden and Barrett seams are expected to be finished by December 2012.

6.2 MODIFICATIONS

Modification (termed “Modification 1”) of the Project Approval was approved by the Department of Planning & Infrastructure on 18 March

2012. This modification included an additional privately owned property being included within properties being entitled to acquisition by

Integra Coal Operations upon request, an increase in waste emplacement height, extension of time to complete a revised biodiversity offset

strategy, extension of time to establish long term security for biodiversity offset areas and an extension of time permitting truck haul of

underground operations produced coal to the CHPP.

A second modification of the Project Approval (“Modification 2”) is expected to be submitted to the Department of Planning & Infrastructure

in June 2012. More information on Modification 2 will be provided in the next Integra Mine Complex AR.

6.3 ENVIRONMENTAL IMPROVEMENTS

Integra Coal has a number of improvements planned for the 2012 reporting period, which include:

• Review of real time dust/noise network usage and system for weather condition pre-forecasting;

• Extend real time monitoring equipment;

• Investigating new ways of reducing waste to landfill;

• Investigation into improving biodiversity of rehabilitated areas;

• Continued implementation of SAP EC phase 2;

• Improving data collection methods and hence response time to environmental issues;

• Improving Biodiversity Offset areas and Glennies Creek riparian zone;

• Increased community engagement and participation; and

• Continue and improve employee environmental awareness training.

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