Mining Operations Plan

(1)

Namoi Mining Pty Ltd

ABN: 24 071 158 373

for the

Sunnyside Coal Mine,

via Gunnedah

Prepared by Namoi Mining Pty. Ltd

in conjunction with

(2)

(3)

R. W. CORKERY & CO. PTY. LIMITED

Namoi Mining Pty Ltd

ABN: 24 071 158 373

Mining Operations Plan

for the

Sunnyside Coal Mine,

via Gunnedah

Prepared by:

Namoi Mining Pty Ltd ABN: 24 071 158 373 PO Box 2440 BRISBANE QLD 4006 Telephone: (07) 3000 5693 Facsimile: (07) 3000 5699 Email: [email protected] In Conjunction with:

R.W. Corkery & Co. Pty. Limited

Geological & Environmental Consultants ABN: 31 002 033 712

Brooklyn Office:

1st Floor, 12 Dangar Road PO Box 239 BROOKLYN NSW 2083 Telephone: (02) 9985 8511 Facsimile: (02) 9985 8208 Email: [email protected] Orange Office:

Suite 15, 256 Anson Street ORANGE NSW 2800 Telephone: (02) 6362 5411 Facsimile: (02) 6361 3622

Email: [email protected] Ref No. 675/04

(4)

Name of mine Sunnyside Cut Coal Mine Mining Titles/Leases

MOP Commencement Date MOP Completion date (nominal)

Name of leaseholder Namoi Mining Pty Ltd Name of mine operator (if different)

Reporting Officer

Title

Signature ………

Date / /

This Copyright is included for the protection of this document

COPYRIGHT

All intellectual property and copyright reserved.

Apart from any fair dealing for the purpose of private study, research, criticism or review, as permitted under the Copyright Act, 1968, no part of this report may be reproduced, transmitted, stored in a retrieval system or adapted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without written permission. Enquiries should be addressed to R.W. Corkery & Co. Pty. Limited.

(5)

MINING OPERATIONS PLAN - iii - NAMOI MINING PTY LTD

Statutory Declaration Sunnyside Coal Mine

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

STATUTORY DECLARATION New South Wales STATUTORY DECLARATION

OATHS ACT, 1900

EIGHTH SCHEDULE

I, _________________, of ______________, in the State of New South Wales, solemnly and sincerely declare as follows.

1. I am the duly appointed _________________ for the Sunnyside Cut Coal Mine.

2. I am authorised to make this Declaration on behalf of the Lease Holder, Namoi Mining Pty Ltd, A.B.N 24 071 158 373.

3. All works and activities described in the Mining Operations Plan to which this declaration is attached comply with the conditions of the title of the mining lease (or mining leases) shown in the Mining Operations Plan, and with the conditions of the Project Approval and all other relevant Government Agency approvals and licences granted in respect of them. 4. I confirm that all of the works and activities referred to in the previous paragraph lie wholly

within the area shown in the Mining Operations Plan and that the tenements (mining leases, colliery holdings, land ownership) details of those tenements are correct.

And I make this solemn Declaration, conscientiously believing the same to be

true and by virtue of the provisions of the Oaths Act, 1900.

Subscribed and Declared at Gunnedah

in the State of New South Wales this …….……….. day of……..…….…………in the year ……….

(sgd) ………..….…

(6)

GLOSSARY OF ACRONYMS

adb - air dried basis

AEMR - Annual Environmental Management Report

AHIMS - Aboriginal Heritage Information Management System SCM - Sunnyside Coal Mine

CL - Coal Lease

CHPP - Coal Handling and Preparation Plant DECC (EPA) DECC (NPWS) DWE DoP - - - -

Department of Environment and Climate Change (Environment Protection Authority)

Department of Environment and Climate Change (National Parks and Wildlife Service)

Department of Water and Energy Department of Planning

DPI-MR - Department of Primary Industries - Mineral Resources EA - Environmental Assessment

EL - Exploration Licence

HGI - Hargroves Grindability Index MDG - Mine Design Guideline

MLA - Mine Lease Application

ML - Mining Lease

MOP - Mining Operations Plan MSDS - Material Safety Data Sheet NCIG - Newcastle Coal Industry Group NMP - Noise Monitoring Program NMPL - Namoi Mining Pty Ltd PCI - Pulverised Coal Injection

PVS - Peak Vector Sum

PWCS - Port Waratah Coal Services SMU - Soil Mapping Unit SWMP - Site Water Management Plan WCM - Whitehaven Coal Mining Pty Ltd

(7)

MINING OPERATIONS PLAN - v - NAMOI MINING PTY LTD

Preamble Sunnyside Coal Mine

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

Preamble

1. Plans 1 to 7 prepared for this Mining Operations Plan (MOP) have been prepared at both A3 size page and A0/A1 size page scales. For reasons of practicality, this document includes the A3 size plans, with the A0/A1 size plans presented within a separate document entitled “Mining Operations Plan – Plans 1 to 7, A0/A1 size”.

2. This MOP has been submitted prior to the granting of a mining lease and as such, reference is made only to the mining lease application, MLA 321.

3. Provision has been made for the later insertion of a range of management plans as appendices to this MOP. These plans will be inserted following confirmation of their approval from the respective approval bodies.

(8)

(9)

MINING OPERATIONS PLAN - vii - NAMOI MINING PTY LTD

Contents Sunnyside Coal Mine

Report No. 675/04

SECTION 2: PRE-MOP ENVIRONMENT

2.1 INTRODUCTION...2-1 2.2 TOPOGRAPHY...2-1 2.3 DRAINAGE AND FLOODING...2-2 2.3.1 Drainage ...2-2 2.3.2 Flooding ...2-4 2.4 WATER RESOURCES ...2-4 2.4.1 Surface Water...2-4 2.4.2 Groundwater ...2-4 2.4.3 Water Use and Availability...2-6 2.5 SOILS AND LAND CAPABILITY ...2-6

2.5.1 Soils ...2-6 2.5.2 Land Capability ...2-6 2.6 FLORA AND FAUNA ...2-9 2.6.1 Flora...2-9 2.6.2 Fauna...2-12 2.7 ABORIGINAL HERITAGE...2-12 2.8 BUILDINGS, INFRASTRUCTURE AND SERVICES ...2-12 SECTION 3: PROPOSED MINING

3.1 EXPLORATION...3-1 3.2 LAND PREPARATION...3-1 3.2.1 Introduction ...3-1 3.2.2 Soil Removal...3-1 3.2.2.1 Introduction ...3-1 3.2.2.2 Soil Categorisation...3-3 3.2.2.3 Soil Erodibility and Erosion Potential ...3-3 3.2.2.4 Soil Stripping and

Stockpiling Methods ...3-3 3.2.2.5 Soil Inventory ...3-7 3.2.2.5 Workforce Awareness and Responsibility...3-7 3.3 CONSTRUCTION ...3-8 3.3.1 Introduction ...3-8 3.3.2 Mine Entrance and Access

Road ...3-8 3.3.3 Site Facilities Area ...3-9 3.3.4 Coal Handling and

Processing Area ...3-9 3.3.5 Internal Haul Roads ...3-10

(10)

Procedures... 3-14 3.4.4 Blasting... 3-14 3.4.4.1 Introduction...3-14 3.4.4.2 Blasting Criteria...3-15 3.4.4.3 Blasting Controls and Safeguards...3-16 3.4.4.4 Blast Notification and Inspections ...3-16 3.4.4.5 Blast Monitoring and Inspections ...3-17 3.4.5 Equipment ... 3-17 3.4.6 Hours of Operation... 3-18 3.4.7 Workforce Awareness and

Responsibility ... 3-19 3.5 COAL PROCESSING... 3-20 3.6 WASTE MANAGEMENT ... 3-21 3.6.1 Introduction ... 3-21 3.6.2 Non-production Waste ... 3-21 3.6.2.1 Domestic-type Wastes and Routine Maintenance Consumables ...3-21 3.6.2.2 Fencing Materials...3-21 3.6.2.3 Oils and Grease ...3-22 3.6.2.4 Sewage ...3-22 3.6.3 Overburden ... 3-22 3.7 ROM COAL AND PRODUCT

STOCKPILES ... 3-23 3.8 WATER MANAGEMENT... 3-23 3.9 HAZARDOUS AND EXPLOSIVE

MATERIALS ... 3-25 SECTION 4: PROPOSED REHABILITATION

ACTIVITIES 4.1 STAKEHOLDER CONSULTATION ... 4-1 4.2 REHABILITATION STATUS AT MOP COMMENCEMENT... 4-2 4.3 REHABILITATION STATUS AT

THE END OF MOP TERM ...4-2 4.4 BUILDINGS ...4-3 4.5 REHABILITATION OF DISTURBED LAND...4-3 4.5.1 Introduction ...4-3 4.5.2 Rehabilitation Procedures...4-3 4.5.2.1 Overburden Emplacements and Open Cut

Area...4-3 4.5.2.2 Water Management Structures...4-6 4.5.2.3 Soil Stockpiles...4-6 4.5.3 Summary of Proposed Rehabilitation ...4-6 4.6 WATER MANAGEMENT (REHABILITATED LAND) ...4-7 4.7 OTHER INFRASTRUCTURE...4-8 4.8 MONITORING AND MAINTENANCE ...4-8 4.9 REHABILITATION TRIALS AND

RESEARCH ...4-9 4.10 REHABILITATION SECURITY

FOR THE SUNNYSIDE COAL

MINE ...4-9 SECTION 5: FINAL REHABILITATION

5.1 REHABILITATED AREAS AND

FINAL FEATURES...5-1 5.2 FINAL LANDFORM AND LAND

USE ...5-1 5.2.1 Final Landform ...5-1 5.2.2 Decommissioning

Activities...5-2 5.2.3 Final Land Capability ...5-3 5.2.4 Final Land Use...5-4 5.3 REMAINING FEATURES...5-5 5.4 REHABILITATION PLANNING

CRITERIA...5-5 SECTION 6: ENVIRONMENTAL AND

REHABILITATION RISK IDENTIFICATION 6.1 ENVIRONMENTAL RISK

(11)

MINING OPERATIONS PLAN - ix - NAMOI MINING PTY LTD

Contents Sunnyside Coal Mine

Report No. 675/04

FAUNA ...7-5 7.8 WEEDS ...7-7 7.8.1 Environmental Management Controls...7-7 7.8.2 Monitoring ...7-7 7.9 OPERATIONAL NOISE ...7-7 7.9.1 Environmental Management Controls...7-7 7.9.2 Monitoring ...7-8 7.10 BLASTING...7-9 7.10.1 Environmental Management Controls...7-9 7.10.2 Monitoring ...7-9 7.11 VISUAL AMENITY AND STRAY

LIGHT...7-9 7.11.1 Environmental Management Controls...7-9 7.11.2 Monitoring ...7-10 7.12 ABORIGINAL HERITAGE...7-10 7.13 SPONTANEOUS COMBUSTION ...7-10 7.13.1 Environmental Management Controls...7-10 7.13.2 Monitoring ...7-11 7.14 BUSHFIRE ...7-11 7.15 MINE SUBSIDENCE ...7-12 7.16 HYDROCARBON CONTAMINATION...7-12 7.16.1 Environmental Management Controls ...7-12 7.16.2 Monitoring ...7-12 7.17 METHANE VENTILATION...7-12 7.18 PUBLIC SAFETY ...7-13 7.18.1 Environmental Management Controls ...7-13 7.18.2 Monitoring ...7-14 SECTION 8: PLANS

Plan 1 Mine and Context ...8-3 Plan 2 Pre MOP Environment ...8-5 Plan 3 Proposed Land Preparation ...8-7 Plan 4 Proposed Mining Activities ...8-9 Plan 5 Proposed Rehabilitation ...8-11 Plan 6 Final Rehabilitation for Lease

Relinquishment ...8-13 Plan 7 Sections...8-15 SECTION 9: REFERENCES

APPENDICES

Appendix 1 Aboriginal and Cultural

Heritage Management Plan ... A1-1 Appendix 2 Air Quality Monitoring

Program... A2-1 Appendix 3 Noise Monitoring Program ... A3-1 Appendix 4 Blasting Monitoring Program.. A4-1 Appendix 5 Site Water Management Plan A5-1 Appendix 6 Environmental Management

Strategy ... A6-1 Appendix 7 Waste Management Plan... A7-1 FIGURES

Figure 1.1 Mining Operations of WCM

within the Gunnedah Basin ...1-4 Figure 1.2 Regional Geology...1-10 Figure 1.3 Surface Geology, EL 5183 &

the Sunnyside Deposit ...1-12 Figure 1.4 Regional Stratigraphy,

Gunnedah Basin ...1-13 Figure 1.5 Coal Seam Stratigraphy ...1-15 Figure 2.1 Mine Site Catchments ...2-3 Figure 2.2 Soil Mapping Units ...2-7 Figure 2.3 Land Capability Classes...2-10 Figure 3.1 Mining Sequence ...3-2

(12)

TABLES

Table 1.1 Current Approvals and

Licences... 1-7 Table 1.2 Management Plans,

Strategies and Programs... 1-8 Table 1.3 Recoverable Coal Quantities

and Typical ROM Coal

Quality... 1-14 Table 1.4 Typical Coal Quality... 1-16 Table 1.5 Proximity of Non-Project

Related Residences

Surrounding the Mine Site ... 1-16 Table 2.1 Catchments of the Sunnyside

Coal Mine and Surrounds... 2-2 Table 2.2 Existing Dam Capacities... 2-2 Table 2.3 Summary of Soil Mapping

Units within the Mine Site ... 2-8 Table 2.4 Land Capability Class

Descriptions ... 2-8 Table 2.5 Fauna Species Recorded ... 2-12 Table 3.1 Soil Stripping Suitability and

Procedures ... 3-5 Table 3.2 Inventory of Soil Volumes to

be Removed from Areas to

be Disturbed ... 3-6 Table 3.3 Soil Balance... 3-6 Table 3.4 Accountable Positions and

Tasks (Soil Stripping and

Stockpiling) ... 3-7 Table 3.5 Initial Production and

Overburden Schedule... 3-12 Table 3.6 Typical Blast Design

Parameters ... 3-15 Table 3.7 Blast Monitoring... 3-17 Table 3.8 Mining Equipment Fleet... 3-18 Table 3.9 Hours of Operation ... 3-18 Table 3.10 Accountable Positions and

Tasks (Mining) ... 3-19 Table 4.1 Pasture Species Seed Mix ... 4-5 Table 4.2 Tree Species Suitable for

Revegetation Activities ... 4-6 Table 4.3 Summary of Proposed

Rehabilitation ... 4-7 Table 6.1 Qualitative Likelihood Rating .... 6-1 Table 6.2 Qualitative Consequence

Rating ... 6-2 Table 6.3 Environmental Risk Rating ... 6-2 Table 6.4 Analysis of Residual Risk ... 6-3

Table 7.1 Bushfire Hazard – Activities and Controls ...7-11

(13)

MINING OPERATIONS PLAN - xi - NAMOI MINING PTY LTD

Foreword Sunnyside Coal Mine

Report No. 675/04

F

OREWORD

MOP SCOPE AND FORMAT

Scope

This Mining Operations Plan (MOP) is the first MOP document submitted for the Sunnyside Coal Mine and has been prepared by Namoi Mining Pty. Ltd. (NMPL) in conjunction with R.W. Corkery & Co. Pty. Limited.

This MOP is applicable for a period of 7 years, until September 2015. Preparation of this MOP has been undertaken in accordance with the anticipated requirements of the mining lease and Project Approval (PA 06_0308), and the final Statement of Commitments accompanying the project approval.

The MOP incorporates the construction phase, initial mine development, subsequent mining activities and final rehabilitation of the mine.

The contents of this MOP:

• provide relevant information on the mining, processing and rehabilitation operations necessary for compliance with the collective conditions imposed upon the mining development by PA 06_0308 and the Statement of Commitments attached to the Project Approval as Appendix 3; and

• reflect “The Guidelines to the Mining, Rehabilitation and Environmental Management Process” prepared by the DPI-MR (the “Guidelines” - Ref:EDG03 MREMP guide V3.doc).

This MOP focuses upon the activities / operations within the mining lease. Details relating to the construction of the coal transport route between the mine site and the Whitehaven CHPP and Rail Loading Facility are separately described in Section 3 of this MOP.

A Mine Closure Strategy and Closure Plan is required to be prepared at least 2 years prior to mine closure. Based on the projected 4 year life of the Sunnyside Coal Mine, it is likely that these documents will be prepared mid term of the proposed mine life. Consequently, this MOP includes a description of the final rehabilitation activities and treatment of the final void in detail. The specific details of mine closure, which reflect the approved strategy, are to be included in a Mine Closure Strategy and Closure Plan which will to be submitted to DPI-MR 2 years prior to mine closure. The Mine Closure Strategy and Closure Plan will describe the proposed rehabilitation techniques and methodologies for the closure of the mine and relinquishment of the mining lease.

(14)

Document Format

The format of this document adheres to that suggested in the Guidelines.

Section 1: Summarises the background to mine development; outlines the objectives and scope of operations identified in the MOP; lists all consents, leases and licences held or required and the relevant mine contacts; describes mine geology and land ownership, and summarises the consultation undertaken with the local community and government agencies.

Section 2: Describes the significant features of the pre-MOP environment including topography, water resources, flora, fauna and cultural heritage.

Section 3: Describes in detail the proposed activities during the term of the MOP. Activities described include exploration, land preparation, construction, mining, processing, waste, water and hazardous materials management.

Section 4: Describes in detail the rehabilitation activities proposed during the term of the MOP including stakeholder consultation, rehabilitation procedures, building demolition, water management on rehabilitated lands, and any planned rehabilitation trials and/or research.

Section 5: Describes the intended rehabilitation outcomes for the mine site and the proposed planning criteria to be used.

Section 6: Provides a matrix for assessing environmental risk associated with the proposed activities and identifies those activities with the greatest associated risk.

Section 7: Documents how environmental management and performance will be managed for each of the environmental risks listed in Section 6.

Section 8: Presents the various plans referred to throughout this MOP.

Section 9: Presents the references for the information and data sources.

The MOP contains a range of support documentation in the form of appendices which will be progressively added to this document once they become available and / or are approved by the respective approval bodies.

In accordance with the Guidelines, seven plans have been prepared to illustrate elements of the pre-MOP environment, construction, land preparation, mining and rehabilitation activities. These plans, located at the rear of the MOP as Section 8, are as follows.

Plan 1: Mine and Context – presenting the context and surrounding features of the mine.

Plan 2: Pre-MOP Environment – presenting the status of the mine site at the commencement of the MOP term.

(15)

MINING OPERATIONS PLAN - xiii - NAMOI MINING PTY LTD

Foreword Sunnyside Coal Mine

Report No. 675/04

Plan 3: Proposed Land Preparation – presenting all areas to be cleared of vegetation and stripped of soil during the MOP term. This Plan includes soil test pit locations, vegetation stacking areas and soil stockpile locations.

Plan 4: Proposed Mining Activities – presenting the status of mining activities at the nominal Year 1, Year 2, Year 3 and end of mine life.

Plan 5: Proposed Rehabilitation – presenting the proposed status of annual progress of rehabilitation to the end of mine life.

Plan 6: Final Rehabilitation for Lease Relinquishment – presenting the anticipated final landform at the cessation of mining and lease relinquishment.

Plan 7: Sections – presenting selected sections through the mine to describe the vertical extent of mining, overburden emplacement and rehabilitation activities for the term of this MOP.

As noted in the Preamble, the plans are provided as A3 size plans within this document, however, a separate document to this MOP provides these at A0/A1 size and scale.

Additional figures have been provided throughout this MOP to assist in presenting the information required in the MOP.

The Plans and Figures were prepared using and/or based on detailed information supplied by NMPL and R.W. Corkery & Co. Pty Limited. MMG Civil Pty. Ltd. of Singleton prepared the mine design, scheduling overburden emplacement and development studies.

(16)

(17)

MINING OPERATIONS PLAN 1 - 1 NAMOI MINING PTY LTD

Section 1 – Introduction Sunnyside Coal Mine

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

Section 1: INTRODUCTION

Section 1

Introduction

1.1

HISTORY AND CONTEXT OF OPERATIONS

1.1.1 History of Operations

No mining operations have previously been undertaken on the mining lease (MLA 321 and commonly referred to throughout this document as “the mine site”), the site of the new Sunnyside Coal Mine (“the mine”).

1.1.2 Development of the Sunnyside Coal Mine Project

This sub-section provides some background to the development of the Sunnyside mine.

The area now known as EL5183 was previously held as an Authorisation (A139), by the former owners of the Gunnedah Colliery.

Four cored drillholes were drilled near the Hoskissons Seam subcrop in 1979-80. In 1982-83, 17 partially cored holes and 17 open holes were drilled, and ground magnetics and resistivity surveys were carried out. This work was reported in a Gollin Wallsend Coal Company report submitted to the Department of Mineral Resources, entitled Authorisation 139: Report to

Accompany Renewal Application (Cox, 1984).

In the 1984 report, an Indicated in-situ open cut resource at (linear) overburden to coal ratios of less than 10:1 was estimated at 32 million tonnes of thermal coal. Indicative washed coal quality for the entire seam, with an average thickness of 7.22, was estimated for floats RD 1.60 (air dried): Yield 71.7%, Ash 15.8%, Total Sulphur 0.34%, Specific Energy 27.1MJ/kg.

Down-dip underground resources of 9.1 million tonnes of coking coal and 20.4 million tonnes of thermal coal in the basal 2.4m of the Hoskissons Seam were classified as Indicated but were based on only two drillholes.

In 1997, a staged exploration program was devised for the northern open cut area of EL 5183. Stage 1, comprised up to 20 wireline logged open holes. The objective of Stage 1 was to infill the 1982-83 drilling in the potential open cut zone, bringing drillhole spacing down to 500m x 250m. Provision was made to proceed to loxline definition drilling, and to take one or two cores if results were encouraging.

(18)

The first stage of drilling comprised 19 holes (R5001-5010, R5012, and R5014 to 5020) and was completed in 1997. Although the southern part of the potential open cut resource was severely affected by near surface or subcropping igneous rock, a 1.5km2 area in the north appeared free of igneous activity and relatively shallow oxidation depths of around 30m to 35m were indicated. The second stage of drilling involved loxline drilling (R5021 - R5046) which identified a zone of deep weathering, probably structurally controlled, between the 500 metre spaced Stage 1 drilling. The target area remained open to the north and an infill open hole (R5011) and two cored holes (DDH505 & 506) were completed.

Exploration drilling between 2005 and 2008 involved exploration of the coal resources in the Hoskissons Seam and the Melvilles Seam in the Sunnyside resources area in the southern part of EL5183 and the adjacent CL 701. During this period, over 5 000m of openhole and partially cored drilling was completed in the Sunnyside Series of drillholes from SUNN-01 to SUNN-85.

Studies undertaken by Whitehaven Coal Mining Pty Ltd on behalf of NMPL during 2005 determined that sufficient coal resources were available within the MLA area to support the development of a small scale open cut coal mine of limited life. A conceptual open cut mine plan was developed and presented to the DPI-MR during October 2006, and WCM commenced the preparations of an Environmental Assessment for the development of the “Sunnyside Coal Mine” with the intention of seeking project approval from the Minister for Planning and commencing open cut mining operations by October 2008.

Since submission of the Environmental Assessment, further loxline, structural definition and geohydrological drilling (totalling approximately 2000m) has been completed to refine the sequential design of the mine and allow for the preparation of annual mine plans for this MOP (see Plan 4).

1.1.3 Context of Operations 1.1.3.1 The Operating Company

The operating company for the Sunnyside Coal Mine is Namoi Mining Pty Ltd (NMPL). NMPL is the registered licence holder of EL 5831 and lease holder of MLA 321. NMPL is a wholly owned subsidiary of Whitehaven Coal Mining Pty Ltd (WCM). WCM was initially a private company which was initially formed in 1999 to explore and potentially develop the coal resources in the Gunnedah Basin and, specifically, in the Boggabri area. The Company was re-structured and listed on the Australian Stock Exchange (ASX Code : WHC) in June 2007. WCM and its subsidiary companies have been at the forefront of the re-invigoration of the coal industry in the Gunnedah basin and currently operates, or manages the following mines.

• Whitehaven Canyon Coal Mine (100%). • Werris Creek Coal Mine (100%).

• Tarrawonga Coal Mine (70%, in a joint venture with Idemitsu Boggabri Coal). • Narrabri Coal Mine (92.5%, through its wholly owned subsidiary, Narrabri Coal

Pty. Ltd.).

(19)

MINING OPERATIONS PLAN 1 - 3 NAMOI MINING PTY LTD

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

1.1.3.2 The Mining Lease and Associated Developments

The mine site (MLA 321) covers an area of 233.4ha, approximately 15km west of Gunnedah and 2km north of the now closed Gunnedah Colliery, No.5 Entry. The boundaries and boundary coordinates of the mine site are presented on Plan 1.

The mine site area (MLA 321), adjoins the southern portion of EL 5183 and the northern portion of CL 701 both held by NMPL (see Plan 1).

The mine site is located approximately 2km north of the Oxley Highway. In order to facilitate road haulage operations of Sunnyside coal products to the Whitehaven Coal Handling and Preparation Plant (CHPP and Rail Loading Facility, it is intended that a purpose built road will be constructed between the mine site and the Oxley Highway, parallel to the existing Coocooboonah Lane (see Plan 1).

Figure 1.1 presents the Sunnyside mine site (MLA 321) within the context of WCM’s existing

or proposed operations and/or leases elsewhere in the Gunnedah Basin.

The development of the Sunnyside open cut will maintain a 20m offset from the ML boundary as well as ensuring a minimum 40m barrier from the former Gunnedah Colliery No.5 Underground workings to the east of the lease.

1.2 PROPOSED

AND

FUTURE

OPERATIONS

1.2.1 Proposed Operations

This MOP covers the following principal site establishment and mining activities/operations.

• Site Establishment

- Establishment of offices, workshop and amenities.

- Construction of internal vehicular and haul truck access roads and ramps. - Construction of a coal transport route from the mine entrance across and

parallel to Coocooboonah Lane through to the intersection with the Oxley Highway, the main transport route to the Whitehaven CHPP and Rail Loading Facility.

- Establishment of the Start-up Pit.

- Construction of ROM Coal Crushing and Stockpile Facility. - Establishment of a compliant fuel and lube storage facility.

- Establishment of all water management structures in accordance with the Site Water Management Plan.

(20)

(21)

MINING OPERATIONS PLAN 1 - 5 NAMOI MINING PTY LTD

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

- Construction of visual bunds adjacent to the northern (and eastern) boundaries of the mine site.

- Topsoil removal and designated stockpiling of the material/s taken from within the footprints of all haul roads, access roads, ROM stockpile and out-of-pit emplacement.

- Establishment of diesel-fueled electric generators for the workshop and crushing plant.

• Mining

- Mining by conventional drill and blast and haulback and terrace mining methods, although this will be subject to review on the basis of changing economic and technological circumstances.

- Placement of overburden and interburden materials from the open cut area to a combination of out-of-pit and in-pit overburden emplacements.

- On-site crushing and temporary stockpiling of the mined coal within a defined coal processing area southwest of the open cut area.

- Acceptance and placement of back-loaded reject material from the Whitehaven CHPP for placement in the mined out areas of the mine.

- Progressive shaping and rehabilitation of the mine area and other areas of disturbance.

- Coal mining by open cut methods over an area of approximately 35.9ha within the mine site (referred to as the “open cut area1”) to produce approximately 3.5Mt of medium to high ash, low sulphur, ROM thermal coal from a multi-pass ply mining operation within the Hoskissons Seam.

Additional activities will also take place within the mining lease that are not directly related to mining operations. These activities will include:

- fence removal;

- new fence establishment;

- relocation of “Sunnyside” residence to site facilities area; - removal of internal power line;

- establishment of hard stand for equipment construction; - connection of site services (power, phone, water); and - modification to existing site water storages.

1_{The open cut area represents an area where, under current economic circumstances, it is considered viable to}

(22)

1.2.2 Life of Mine

Based on an average production rate of 0.8Mtpa, the mine life will be approximately 5 years. The estimated mine life is, however, based on current world coal prices and demand, both of which are factors beyond NMPL’s control. Changes to either or both of these factors could potentially see the planned mine life increase or decrease. In any event, Project Approval is being sought for a maximum of 1Mtpa. Any changes to the projected mine life will be presented in the relevant Annual Environmental Management Report (AEMR) or subsequent MOP(s).

1.2.3 Future Operations

Whilst the mine has an intended operational life of approximately 4 years, further reserves definition exploration within MLA 321 and the adjoining EL 5183 may reveal further economic mineable open cut reserves. Development of these incremental reserves would be subject to an environmental impact assessment and a new MOP. Current exploration activity has identified additional satellite reserves to the northwest and southeast of the mine site. Development of these areas would maximize resource recovery in the area, with additional exploration activity over the life of the Sunnyside Coal Mine to further confirm mineable reserves. Any additional mineable reserves may allow for the continued utilisation of infrastructure on the “Sunnyside” site for extraction of those reserves at identified satellite deposits.

Depending on the progress of mining, processing and rehabilitation of the proposed mine as outlined in this MOP, the only operations likely to be undertaken by NMPL after 2015 (ie. following the term of this MOP) on the mine site will include the final closure and decommissioning of all plant (fixed and mobile) and successful completion of all rehabilitation activities.

If required, these activities will be detailed in a new MOP covering the period 2015 onwards.

1.3

CONSENTS, LEASES AND LICENCES

Table 1.1 presents the approvals and licences held for the Sunnyside Coal Mine at the time of

lodgement of this MOP.

An Environment Protection Licence (to be issued by the Department of Environment and Climate Change (Environment Protection Authority (DECC (EPA)) and water licence(s) (to be issued by the Department of Water and Energy (DWE)) will also be required for the development and operation of the mine. A copy of each licence will be forwarded to DPI-MR as they are obtained and details of each provided in the initial AEMR for the mine.

(23)

MINING OPERATIONS PLAN 1 - 7 NAMOI MINING PTY LTD

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED Table 1.1

Current Approvals and Licences Issuing /

Responsible Authority

Type of Lease, Licence, Approval Date of Issue Expiry Comments Exploration Licence EL 5183 23 Dec 1996 22 Dec. 2010 Incorporating an area to be excised for a Mining Lease in respect of MLA 321 and CCL 701.

Consolidated Coal Lease CCL 701

16 March 1989

DPI MR Renewal pending Department of

Primary Industries - Mineral Resources

Mining Lease (MLA 321) Minister for Planning Project Approval

PA06_0308

Pending Expiry is 7 years after the commencement of the approval.

Water Access Licence (under Water Management

Act, 2000)

Department of Water and Energy

Water Licence (under

Water Act, 1912) Department of Environment and Climate Change Environment Protection Licence

For mining operation to 1.0Mtpa

Gunnedah Shire Council

Development/Building Approvals

Mine Surface Facilities and construction of coal haulage road offsite, parallel to Coocooboonah Lane through to the Oxley Highway

Project Approval PA 06_0308 requires the preparation and lodgement of eight separate management plans, strategies and programs (for the approval of the Director-General of the Department of Planning). Table 1.2 lists these plans, strategies and programs along with the required approval information. A copy of each plan will be forwarded to DPI-MR (electronically) following their approval from the respective approval agency(ies). NMPL will insert each of the approved management plans within the MOP appendices.

(24)

Table 1.2

Management Plans, Strategies and Programs

Title To be submitted by: _{Condition (PA 06_0308)}Project Approval Environmental Management

Strategy

Prior to commencement of construction activities (not including the road construction activities external to MLA 321).

Schedule 5, Condition 1

Environmental Monitoring Program Within 6 months of project approval Schedule 5, Condition 2 Water Management Plan

incorporating:

- a Site Water Balance; - an Erosion and Sediment

Control Plan;

- a Surface Water Monitoring Program;

- a Groundwater Monitoring Program; and

- a Groundwater Contingency Plan.

Prior to commencement of construction activities (not including the road construction activities external to MLA 321)

Schedule 3, Conditions 22 to 27

Noise Monitoring Program Prior to carrying out any development on site (not including the road construction activities external to MLA 321).

Waste Management Plan Prior to the commencement of construction activities.

Blasting Monitoring Program Prior to any blasting Schedule 3, Condition 17

Air Quality Monitoring Program Prior to commencement of construction activities (not including the road construction activities external to MLA 321).

- Rehabilitation and Landscape Management Plan.

Prior to 31st_{March 2009} _{Schedule 3, Conditions 29}

Aboriginal Cultural Heritage Management Plan

Prior to commencement of construction activities (not including the road construction activities external to MLA 321)

Mine Closure Plan At least 2 years prior to cessation of mining Schedule 3, Condition 30 Energy Savings Action Plan Within 3 months of project approval Schedule 3, Conditions 41 Construction Traffic Management

Plan

To GSC and RTA only, prior to any development of site.

The status of these plans, strategies and programs will be presented in the initial AEMR prepared for the mine.

1.4 MINE

CONTACTS

Company personnel responsible for operational and environmental performance at the Sunnyside Coal Mine and their relevant contacts are as follows.

• General Manager Operations – Casper Dieben - Whitehaven Coal Mining Pty Ltd, retains overall responsibility for all aspects of the mine’s operations. (Contact: 07 3000 5632 / 0407 123 958).

• Manager Mining Engineering – Paul Hensley – responsible for all statutory compliance and safety performance for all activities and performance at the mine. • Project Manager – Colin Hulm, responsible for the coordination and management

(25)

MINING OPERATIONS PLAN 1 - 9 NAMOI MINING PTY LTD

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

The nominated Environmental Officer for the mine will be Danny Young, Group Environmental Manager, Whitehaven Coal Mining Pty Ltd (Contact: 02 6749 7700 / 0427 497 710).

Mining operations at the mine will be undertaken by NMPL. Selected activities may, however, be variously contracted out such as blasting and explosives handling. The DPI-MR will be duly notified of any contractor operations in due course and prior to commencement of operations.

1.5 MINE

GEOLOGY

1.5.1 Regional Geology

The regional geology is shown in Figure 1.2.

Regionally, the Sunnyside Mine site lies in the Mullaley sub-basin of the central Gunnedah Coalfield, with the proposed extraction of the Hoskissons Seam from the Late Permian Hoskissons Coal Member of the Black Jack Formation.

Three main coal seams occur beneath the Mine site, namely in descending order, the Wondobah (Breeza) Seam, the main Hoskissons Seam, and the underlying Upper and Lower Melville Seam, which only sub-crop to the east of the mine site.

The Lower Melville Seam subcrops beneath Quaternary alluvium in the Coocooboonah Creek valley floor, whilst the Hoskissons Seam sub-crops under primarily transported colluvial cover on the eastern flanks of Coocooboonah Creek.

The strata have an average dip of 3° to 5° to the southwest. The depth of weathering extends approximately 30m below surface, with the depth to the top of the Hoskissons Seam extending up to approximately 65m below surface in the open cut pit area.

Non coal lithologies are mainly lithic conglomerates, sandstones and siltstones. Several tuffaceous claystone bands are present in the upper part of the Hoskissons Seam and minor carbonaceous and thin coal beds occur between and above the Hoskissons and Wondobah Seams.

The surface geology is shown on Figure 1.3. It shows the north-west trending subcrop of the Late Permian Black Jack Group, with the overlying Triassic Digby and Napperby Formations and areas of Mesozoic volcanic rocks to the west and the underlying Late Permian Millie Group to the east.

The regional stratigraphy and coal seam nomenclature for the Gunnedah Basin is summarised in the Figure 1.4.

(26)

(27)

MINING OPERATIONS PLAN 1 - 11 NAMOI MINING PTY LTD

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

1.5.2 Local Geology 1.5.2.1 Structure

The coal resource on the “Sunnyside” property is separated from the Gunnedah Coal Mine No 5 Entry underground workings by a zone of faulting and intrusive volcanic activity.

Aeromagnetic surveys undertaken by the Department of Mineral Resources during the 1990s, and more recently by SRK Consultants for NMPL, show a number of northeast-trending lineaments across the northern half of EL 5183. Drilling during 1997 delineated up to four northeast-trending faults across the northern half of the EL. A similar northeast-trending fault / dyke structure occurs in the vicinity of the northern boundary of MLA 321.

Previous drilling indicated a major igneous body overlying the Hoskissons Seam near the subcrop to the north and northwest of the mine site within the central EL area. This was confirmed during both the 1997 and 2005 drilling programs. Beneath this igneous body, the coal is invariably destroyed by heating or at least badly heat affected.

Numerous thinner intrusions, which are probably dykes with perhaps some minor sills within the Hoskissons Seam itself, were intersected. These are more concentrated to the north. The coal within the proposed open cut area is comparatively free of igneous sills except for the southeastern and northwestern fringe areas where heat-affected coal occurs.

1.5.2.2 Overburden Lithologies

The overburden above the Hoskissons Seam of the mine comprises a deeply weathered section of interbedded claystone, siltstone, sandstone, conglomerate, tuffaceous claystone and occasional soft, weathered to strong tuffs as sills either within the or above the Hoskissons Seam.

The depth of weathering is generally between 25m and 40m across the extent of the open cut area with localised deepening to in excess of 40m in association with intrusive dykes and faulting.

A thin soil layer is underlain by between 4m and 14m of variously clay and weathered clayey siltstones which are variably stained yellow, to orange and reddish brown by secondary iron oxides.

The Hoskissons Seam floor lithology tends to vary across the open cut area from interbedded siltstone- sandstone to mudstone-siltstone and is relatively soft to medium strong.

The open pit area will not be overly affected by groundwater inflows other than very minor “nuisance” seepage. The Hoskissons Seam is in fact the main confined aquifer in the geological sequence.

Due to relative level considerations, no old underground pit water inflows from the former Gunnedah Colliery, No.5 entry workings are expected to seep from the south (up dip) into the open pit area despite its proximity.

(28)

(29)

(30)

1.5.2.3 Coal Geology

Five plies have been identified in the Hoskissons Seam in the Gunnedah area. They are referred to as Plies A to E, based on stone bands and coal quality. A description of the general coal seam stratigraphy follows (refer to Figure 1.5).

Section A-B comprises the lower ash basal part of the seam, up to the first stone band. Zone

AB is generally 2.5m to 4.0m thick. The "working section" of Cox (1984) correlates with the 2.4m section mined in No 4 entry at that time. It is the only coal with coking characteristics in the Hoskissons Seam. It thins to the north and is less than 1.6m thick in the north of EL5183.

Section C is a heavily banded ply in the central part of the seam, and varies from 1.4m to 3.1m

thick.

Section D-E is the coal section above the highest significant stone band in the seam. Although

there are no bands in the zone it does have a high inherent ash and no swelling characteristics. It is usually 1.0m to 2.1m thick.

The roof of the Hoskissons Seam is a carbonaceous mudstone with occasional sandstone bands, and the immediate floor is a siltstone or silty sandstone.

1.5.2.4 Recoverable Reserves and Coal Quality

Table 1.3 presents a summary of the results of the modelling by WCM in June 2008 for

potential recoverable coal quantities and estimated coal quality from sampling and analyses of recent 100mm diam. bore cores.

Table 1.3

Recoverable Coal Quantities and Typical ROM Coal Quality

Coal Seam Recoverable Coal (t) In-situ Relative Density Inherent Moisture (%) adb Ash Content (%) adb Volatile Matter (%) adb Total Sulphur (%) adb Calorific Value (kcal/kg) adb Hoskissons Seam 3.5 million 1.59 2.5 8.0 - 22.0 22.0 - 27.0 0.38 - 0.40 5000 - 7000

Typical export product coal specifications for a PCI product and thermal coal are shown in

Table 1.4.

An analysis of the coal quality information presented in Table 1.4 indicates that the expected thermal coal quality will be higher in ash than the typical export thermal coal specification. Sunnyside thermal coal is intended to be blended, unwashed, with other WCM coal products either at the Gunnedah CHPP & Rail Loading Facility or at the Port of Newcastle ship loading/assemblage stockpile facility at PWCS or NCIG after 2010.

(31)

(32)

Table 1.4 Typical Coal Quality

Thermal Product

Total Moisture (adb) 11.0%

Proximate Analysis (adb)

- Inherent Moisture 2.5%

- Ash 22.0%

- Volatile Matter 26.7%

- Fixed Carbon 48.8%

Total Sulphur (adb) 0.4%

Calorific Value (adb) 5840 kcal/kg

24.45 GJ/tonne

HGI 45 - 48

Phosphorus in Coal (db) <0.005%

Ash Fusion Temp (°C Red. Atmos.)

- Initial Deformation 1 470

- Hemispherical >1 560

- Flow >1 560

1.6 LAND

OWNERSHIP

1.6.1 Mine Site and Surrounding Properties

NMPL and WCM own the property of “Sunnyside” which encompasses the area within MLA 321. NMPL and WCM also now owns the property “Werona” and is currently negotiating on the purchase of “Lilydale”. The property of “Plain View”, northeast of the mine site, whilst owned by C.J. Howarth, is project related due to the lease of land accommodating the coal transport route parallel to Coocooboonah Lane. Plan 1 presents the ownership details within and immediately surrounding the mine site.

1.6.2 Surrounding Residences

Plan 1 also shows the locations of 18 residences surrounding the mine site. The distances from

those closest non-project related residences to the areas of activity planned for the term of this MOP are listed in Table 1.5. Of those residences on properties not owned by NMPL/WCM, “Lilydale” would be the closest to open-cut activities.

Table 1.5

Proximity of Non-Project Related Residences Surrounding the Mine Site

Residence

Name from Mine Site Distance (m) Boundary Distance to ROM Area (m) Distance to Open Cut (m) “Illili” 900 1760 2450 “Innisvale” 1200 2770 1660 “Ivanhoe” 1320 2170 1900 “Ferndale” 1400 1890 2500 “Plain View” 1700 2200 1800 “Woodlawn” 2730 2770 3360 “Lilydale” 1300 2130 1300

(33)

MINING OPERATIONS PLAN 1 - 17 NAMOI MINING PTY LTD

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

1.6.3 Road Access

The mine site does not encompass any public road reserves although operation of the mine will involve the re-alignment of a section of the existing Coocooboonah Lane between the mine site entrance (off set by 100m from existing Coocooboonah Lane) and the Oxley Highway intersection. The road construction program will involve the re-alignment of approximately 450m of pavement which will be bitumen sealed.

This initiative has been undertaken to avoid the use of existing Coocooboonah Lane as part of the coal transport route and thus the need to remove many Koala habitat eucalypt trees growing close to the verge of the existing Coocooboonah Lane.

The construction of the aligned section of Coocooboonah Lane will include the re-establishment of entrances to two affected properties, namely “Plain View” and “Lilydale”.

1.7

CONSULTATION, MANAGEMENT AND DOCUMENT

PREPARATION

1.7.1 Consultation

NMPL and/or its representatives have consulted with the following government agencies during the preparation of the MOP and associated environmental management / monitoring plans.

• Department of Primary Industries - Mineral Resources. • Department of Environment and Climate Change. • Department of Water and Energy.

1.7.2 Environmental Management Plans

A number of the Environmental Management Plans and Monitoring Programs that will be required by the Department of Planning have been (or are being) prepared in conjunction with the following specialist environmental consultants.

• Carbon Based Environmental – Site Water Management Plan, Noise Monitoring Program, Air Quality Monitoring Program, Blasting Monitoring Program.

• Geoterra – Site Water Management Plan (Groundwater)

The management plans have been (or are being) prepared in consultation with relevant government agencies nominated in the Project Approval. A copy of each plan will be forwarded electronically to DPI-MR following their approval from the respective agency(ies). NMPL will insert each of the approved management plans within the MOP appendices.

(34)

1.7.3 Document Preparation

The preparation of this document has been managed by Mr. David West, B.App.Sc (App. Geology), Grad. Dip. Eng. Geol., General Manager Technical Services with Whitehaven Coal Mining, with assistance provided by Mr. Rob Corkery M.Appl.Sc., B.Sc (Hons), Principal of R.W. Corkery & Co Pty. Ltd. This Company assisted with the compilation of the figures and plans for the document and the copying / assembly of the final document.

Mine planning and operational information was provided by Mr Brian Francis of MMG Civil Pty Ltd while Mr. Chris Burgess (General Manager New Projects with WCM), Mr. Casper Dieben (General Manager, Operations with WCM) and Mr. Danny Young (Group Environmental Manager with WCM) provided further technical information on the operation of the mine and assisted with finalising the document.

(35)

MINING OPERATIONS PLAN 2 - 1 NAMOI MINING PTY LTD

Section 2 – Pre-MOP Environment Sunnyside Coal Mine

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

Section 2: PRE-MOP ENVIRONMENT

Section 2

Pre-MOP Environment

2.1 INTRODUCTION

The following sub-sections describe elements of the existing environment within and surrounding the Sunnyside mine site. Particular emphasis is placed on those elements that will be affected during the life of the Sunnyside Coal Mine. Plan 2 presents the pre-MOP environment, ie. the status of the mine site at the commencement of the MOP.

2.2 TOPOGRAPHY

The regional topography is shown on Plan 2. MLA 321 lies within the Namoi River Basin in an area representative of the transition from the higher broken country to the northeast and south associated with the Nandewar, Great Dividing and Liverpool Ranges and the open plains to the west in the Wee Waa and Coonamble areas.

Natural slopes within the region range from less than 1° along the flood plains of the Namoi River to in excess of 25° within areas of Wondobah State Forest and in excess of 45° on the slopes of Blackjack and King Jack Mountains southeast of the mine site.

The local topography within the vicinity of the mine site is shown on Plan 2.

The mine site is located on the lower slopes at the edge of the Coocooboonah Creek valley and extends upslope to an escarpment zone. To the north of the mine site, the valley widens to ultimately form part of the Namoi River floodplain (Plan 2).

Elevations within the local area range from approximately 544m AHD at the top of Sugarloaf Mountain and 428m AHD on the hill above the open cut pit to approximately 310m AHD to the immediate north of the “Sunnyside” property.

Plan 2 also shows the tributaries to Coocooboonah Creek. Coocooboonah Creek Tributary 1 is

the main catchment that flows through the mine site. It has a number of minor diversions associated with soil conservation structures. However, general flow is towards the northwest corner of the “Sunnyside” property. All project disturbance activity occurs within this tributary.

Water from Coocooboonah Creek Tributary 2 does not enter the mine site. It is directed by soil conservation structures to join Tributary 1 immediately outside the northwestern boundary of the property.

(36)

2.3 DRAINAGE

AND

FLOODING

2.3.1 Drainage

The “Sunnyside” property is located within a distinct catchment area of approximately 376ha about 15km west of Gunnedah. The majority of the surface water runoff on the “Sunnyside” property flows northwards across the mine site. It then flows into Coocooboonah Creek which flows northwest within a constructed waterway paralleling Coocooboonah Lane. From there, it flows into Rock Well Creek then into Native Cat Creek which continues to flow northwest for 6km. Runoff then heads northwards within Collygra Creek where it flows across a floodplain area before flowing into the Namoi River some 25km north of the Mine site. The remainder of the property’s surface water flows south into Coocooboonah Creek ultimately flowing into the Namoi River to the north.

The property can be divided into four separate sub-catchments with these described in

Table 2.1 and presented on Figure 2.1.

Table 2.1

Catchments of the Sunnyside Coal Mine and Surrounds Catchment

No. Approximate Area (ha) Description of Catchment

1 170* This western catchment generally flows northwards within the Mine site then north into Coocooboonah Creek. Includes DW1 and DW2 Catchments.

2 131 This eastern catchment generally flows northwards within the Mine site then north into Coocooboonah Creek.

3 54 This catchment flows southwards across the Oxley highway into Coocooboonah Creek south of the Mine site.

4 21 This small catchment generally falls westwards and then south into Coocooboonah Creek south of the Mine site.

Total 376ha

* Catchment 1 includes 61ha of clean water catchment and 42ha and 67ha of dirty water catchment in Areas DW1 and DW2 respectively (Figure 2.1).

Source: Modified after Soil Conservation Service (2007) Table 1

Four substantial farm dams already occur within the mine site with their approximate capacities listed in Table 2.2.

Table 2.2

Existing Dam Capacities Dam Number Capacity (m3) 1 500 2 2 000 3 2 000 4 1 000 Total 5 500 * To be removed

(37)

(38)

The combined capacity of existing water storages on the mine site is approximately 5 500m3. Throughout the life of the mine, one of these dams (Dam 2) would be removed as it is within the overburden emplacement footprint area. There would be approximately 3 500m3 or 3.5ML of water storage retained and available for use after both the open cut area and overburden emplacement are at their fullest extents.

The harvestable right capacity for the NMPL owned “Sunnyside” property is 26.32MLpa. The maximum harvestable rights dam capacity (MHRDC) was determined using the DNR publication titled Rural Production and Water Sharing Landholders Information Package. The MHRDC is 26.32ML, so there is potential to store, through the construction of additional dams, an additional 22.82ML on the mine site which can be used for any purpose, i.e. 26.32ML less 3.5ML.

The maximum harvestable right does not include storages that are to be used for environmental purposes. For the Sunnyside Coal Mine, environmental purposes include the capture of predominantly “dirty” or sediment-laden water. The water within those storages will be used for dust suppression and watering rehabilitated areas, if required.

2.3.2 Flooding

Water that flows from southeast to northwest along Coocooboonah Creek has potential to interfere with the transportation of coal from the mine site to the Whitehaven CHPP and Rail Loading Facility. Coocooboonah Creek is ephemeral and, based on anecdotal evidence, only flows after rainfall events and may flow for approximately two days after a large rainfall event that occurs over its entire catchment.

NMPL will construct the coal transport route at the existing ground level and, wherever necessary, construct concrete causeways to cross any gullies. This type of construction will not inhibit the overland flow of water and thus would not impact on localised flooding of the area.

2.4 WATER

RESOURCES

2.4.1 Surface Water

Much of the surface water flowing across the mine site and surrounding landholdings is directed to and held in agricultural dams of various sizes. In discussions with surrounding landowners, and from recent representative sampling of surface water, the quality surface runoff is and has been historically suitable for stock watering and irrigation purposes.

2.4.2 Groundwater

Drilling and monitoring of eight piezometers and 15 coal exploration bores within EL 5183 and in the vicinity of the mine site along with assessment and field confirmation of 20 privately operated bores within 3km of the proposed mine, indicate very low groundwater yields (<0.63L/sec).

(39)

MINING OPERATIONS PLAN 2 - 5 NAMOI MINING PTY LTD

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

Six coal exploration bores drilled in, or adjacent to, the abandoned underground workings, piezometer monitoring and coal exploration records indicate the workings are mostly dry, apart from a down-thrown block faulted area located approximately 50m south of the proposed open pit area, which contains approximately 31.2ML of stored water.

Assessment of water levels and remnant void space indicates there is at least 1523ML of unfilled workings in the abandoned mine, and that water levels in the underground are primarily beneath the excavated workings and lower than the basal level of the open cut outside of the isolated down-thrown block faulted section.

Field and laboratory tests indicate the:

• Out-of-pit overburden batch test leachate results range from pH 6.97 to 8.43, with salinity ranging from 724µS/cm to 2 590µS/cm.

• No. 5 Underground water pH ranges from 6.90 to 8.10, with salinity between 3 590µS/cm to 7 360µS/cm; and

• Hoskissons Seam pH ranges from 6.62 to 7.9, with salinity between 2 260µS/cm and 12 650µS/cm.

The open cut pit is located on the outcropping flanks of Coocooboonah Creek and would be excavated through Early Triassic overburden into the Late Permian Hoskissons Seam, with no excavation through Quaternary alluvium or any associated alluvial aquifers.

The Quaternary alluvium of Coocooboonah Creek to the east and Native Cat Creek to the north can extend to at least 50m thick, whilst Rock Well Creek to the west of the mine site is recorded to have up 10m of alluvium. No registered bores extract groundwater from the Quaternary alluvium within at least 3km of the proposed mines.

The Hoskissons Seam and its associated overburden and underlying formations are significantly intruded and / or contact metamorphosed by doleritic sills and dykes, which can be regionally extensive, particularly to the west, north and south of the open cut. In addition, the stratigraphy is also significantly faulted in the same areas.

Two piezometers were installed to 41m below surface in the Coocooboonah Creek alluvium, three were installed to 81m below surface in the Hoskissons Seam and three were installed in the underlying Late Permian Shallow Marine Facies and Lower Delta Plain Facies to a maximum depth of 90m.

Short duration pump tests and falling head tests assessed the Quaternary alluvium to have hydraulic conductivities below 5.3m/day. The Hoskissons Seam hydraulic conductivity ranged up to 4.0m/day whilst the underlying formations, excluding the Melville Seam, ranged up to 2.1m/day.

Groundwater within the Hoskissons Seam is unconfined where it subcrops beneath the Coocooboonah Creek alluvium, and progressively becomes more confined towards the west (down dip) of the open cut.

(40)

Groundwater quality of the tested overburden, Hoskissons Seam and underlying formations generally exceeded the ANZECC 2000 upland stream freshwater and 95% trigger level for freshwater species for electrical conductivity, total nitrogen, total phosphorus, copper, zinc, and to a lesser degree, nickel and manganese.

2.4.3 Water Use and Availability

The mine site is located within an essentially dry, ephemeral first order stream catchment which drains to the north and northwest into the essentially dry, ephemeral Coocooboonah Creek. It is located within a low rainfall, high evaporation climatic regime.

Of the 20 registered operating private bores within 3km of the mine site, five extract water from formations above the Hoskissons Seam, two extract from within the seam and 13 extract from lithologies beneath the Hoskissons Seam, particularly the Upper and Lower Melville Seams. All private bores have yields below 0.63L/sec, salinities between 510 – 10,080µS/cm and near neutral pH values.

2.5 SOILS

AND

LAND

CAPABILITY

2.5.1 Soils

Three Soil Mapping Units (SMUs) are present on and adjacent to the mine site.

• SMU1 – occurs on upper slopes below the rocky scarp in the southern section of the open cut.

• SMU2 – occurs on the mid- and lower slopes over the remainder or northern section of the mine site.

• SMU3 – is associated with a small occurrence of endangered ecological community – Native Vegetation on Cracking Clay Soils of the Liverpool Plains - located on the eastern end of the coal transport route on the “Plain View” property.

The locations of the boundaries of the three SMUs are shown in Figure 2.2.

The coverage of each SMU is illustrated on Plan 2 and Table 2.3 presents a summary of the soil profiles and characteristics of the identified SMUs.

2.5.2 Land Capability

The 1: 100 000 scale Land Capability map of the Boggabri map sheet area prepared by the Soil Conservation Service shows the mine site mapped mainly as Class II (lower slopes) and Class III (mid-slopes) with an area of Class IV land associated with the scarp adjacent to the southern boundary of the open cut. The descriptions of the land capability classes on the Mine site are described in Table 2.4.

(41)

(42)

Table 2.3

Summary of Soil Mapping Units within the Mine Site

Soil Mapping

Unit (SMU)* General Topsoil Subsoil

1 - Upper Slopes Soil depth: 145cm deep Surface: loose to firm Stones: moderate to large amounts of large stone present, rounded/angular to 15cm Overlies: weathered rock

Texture: loam fine sandy, sandy clay to silty clay, medium to heavy clay, roots common, some rounded to angular gravel, 1 -3cm

pH: 6.0 - 6.5

Colour: brown/reddish brown

Texture: gritty clay, medium to heavy clay, heavy clay, roots few to common, no lime, no manganese, some to much rounded gravel to 5cm,

pH: 6.0 – 8.5

Colour: pinkish white, pale brown, light brownish grey, yellowish red

2 – Mid - Lower slopes

Soil depth: To 290cm plus Surface: soft, loose, firm or hard setting,

Stones: surface stone absent or only some surface stone present, rounded or angular, 1 -15cm, [usually <10cm]

Overlies:

Texture: sandy clay loam, silty clay loam, clay loam, fine sandy loam, light clay, light to medium clay, loam fine sandy, medium clay, medium to heavy clay pH: 5.0 to 6.0, occ. 7.0 Colour: brown, reddish brown, yellowish red, dark reddish brown

Texture: clay, stones and gravel textured, often within up to 4 horizons often inn pockets only

pH: 7.0 – 9.0

Colour: shades of brown (pale brown, brown, light brown) or grey (light brownish grey, dark grey, light grey, pinkish grey) 3 – Drainage

Depressions

Soil depth: to 260cm plus Surface: self mulching and cracking, surface stone absent, some lime stains present, no manganese

Stones: absent

Overlies: soil material, abrupt boundary

Texture: heavy clay, many roots, any small lime nodules present, no manganese, not bleached, not mottled, moist

pH: 9.0 – 9.5

Colour: dark reddish brown, dusky red

Texture: up to 3 horizons, medium to heavy, stones and gravel usually absent, few roots,

pH: 8.0 – 9.5

Colour: shades of red and reddish brown

Source: Modified after GCNRC (2007a) – Section 5. *See Plan 2

Cunningham (2007a) noted that it was evident that the areas delineated as Class II and Class III land had been correctly identified. However, the area of Class IV land is more correctly classed as Class VII land. Class VII land is land best protected by green timber. It generally comprises areas of steep slopes, shallow soils and/or rock outcrop. Adequate ground protection must be maintained by limiting grazing and minimising damage by fire.

Table 2.4

Land Capability Class Descriptions

Land Capability

Class Description

Class II “Land suitable for regular cultivation. Soil conservation practices such as strip cropping, conservation tillage and adequate crop rotation would be used.”

Class III “Land suitable for regular cultivation provided structural soil conservation works such as diversion banks together with soil conservation as in Class II are used”.

Class IV “Land suitable for grazing with occasional cultivation and requiring soil conservation practices such as stock control, application of fertiliser and minimal cultivation for the establishment or re-establishment of permanent pasture”.

Class VII “Land best protected by natural bush and comprises steep slopes, shallows soils and/or rock outcrop with even occasional escarpments

(43)

MINING OPERATIONS PLAN 2 - 9 NAMOI MINING PTY LTD

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

Figure 2.3 shows the boundaries of these land capability classes across the mine site.

2.6 FLORA

AND

FAUNA

2.6.1 Flora

A large proportion of the mine site has been cleared for grazing and cropping although some areas of remnant and re-growth native vegetation remain above the rocky escarpment to the south of the mine site.

Vegetation Communities

Nine vegetation communities were identified by Cunningham (2007b) within and surrounding the mine site.

The nine vegetation communities are identified as:

• Community 1 – Cleared Cropland and Pastureland; • Community 2 – Regenerating Grasslands;

• Community 3 – Bare Disturbed Land with Minimal Vegetation Cover; • Community 4 – Whitewood Community;

• Community 5 – Dry Scrub Community of the Rocky Scarp;

• Community 6 – Tumbledown Gum, Wilga and White Cypress Pine Community; • Community 7 – White Box Community;

• Community 8 – Bimble Box Yellow Box and White Box Woodland Community; and

• Community 9 – Degraded Plains Grass Grassland.

Community 1 identified as Cleared Cropland and Pastureland is almost completely cleared of trees and shrubs and has been cropped in the past.

The Regenerating Grasslands included in Community 2 comprise land that has been cleared for grazing and cropping in the past and which is presently supporting a cover of regenerating native trees and shrub species.

Community 3 appears to have been used as a gravel source in the past and is almost completely bare.

The Whitewood Community identified as Community 4 is confined to a single elongated area below the rocky scarp in the central section of the “Sunnyside” property.

Community 5, a Dry Scrub Community of the Rocky Scarp, is confined to the rocky escarpment immediately above Community 4.

(44)

(45)

MINING OPERATIONS PLAN 2 - 11 NAMOI MINING PTY LTD

Report No. 675/04

R. W. CORKERY & CO. PTY. LIMITED

A Tumbledown Gum, Wilga and White Cypress Community identified as Community 6 occurs generally on ridge tops with rock outcrops and shallow soils although a variation occurs on a mid-slope area near the Oxley Highway south of “Sunnyside”.

Community 7 is a White Box Community. This Community differs from the White Box Yellow Box Blakely’s Red Gum Woodland endangered ecological community in that it has a relatively dense shrub layer present rather than having an understorey characterised generally by grass and herbaceous species with shrubs being much less prevalent.

Community 8 is a Bimble Box Yellow Box White Box Woodland Community. It occurs along what appears to be a reserved road that is currently being used as a waterway to dispose of runoff water. This Community is considered to be representative of the White Box Yellow Box Blakely’s Red Gum Woodland identified in the NSW Threatened Species Conservation Act

1995 as an endanger

Mining Operations Plan

Namoi Mining Pty Ltd

R. W. CORKERY & CO. PTY. LIMITED

Namoi Mining Pty Ltd

Prepared by:

Name of mine Sunnyside Cut Coal Mine Mining Titles/Leases

COPYRIGHT

All intellectual property and copyright reserved.

R. W. CORKERY & CO. PTY. LIMITED

And I make this solemn Declaration, conscientiously believing the same to be

GLOSSARY OF ACRONYMS

MINING OPERATIONS PLAN - v - NAMOI MINING PTY LTD

Preamble

MINING OPERATIONS PLAN - vii - NAMOI MINING PTY LTD

CONTENTS

Page Page

SECTION 2: PRE-MOP ENVIRONMENT

CONTENTS

Page Page

STOCKPILES ... 3-23 3.8 WATER MANAGEMENT... 3-23 3.9 HAZARDOUS AND EXPLOSIVE

RESEARCH ...4-9 4.10 REHABILITATION SECURITY

REHABILITATION RISK IDENTIFICATION 6.1 ENVIRONMENTAL RISK

CONTENTS

Page Page

APPENDICES

CONTENTS

Page Page

TABLES

MINING OPERATIONS PLAN - xi - NAMOI MINING PTY LTD

OREWORD

Scope

Document Format

MINING OPERATIONS PLAN - xiii - NAMOI MINING PTY LTD

MINING OPERATIONS PLAN 1 - 1 NAMOI MINING PTY LTD

R. W. CORKERY & CO. PTY. LIMITED

Section 1: INTRODUCTION

1.1.1 History of Operations

1.1.3 Context of Operations 1.1.3.1 The Operating Company

MINING OPERATIONS PLAN 1 - 3 NAMOI MINING PTY LTD

R. W. CORKERY & CO. PTY. LIMITED

Figure 1.1 presents the Sunnyside mine site (MLA 321) within the context of WCM’s existing

1.2 PROPOSED

1.2.1 Proposed Operations

MINING OPERATIONS PLAN 1 - 5 NAMOI MINING PTY LTD

R. W. CORKERY & CO. PTY. LIMITED

1.2.2 Life of Mine

CONSENTS, LEASES AND LICENCES

Table 1.1 presents the approvals and licences held for the Sunnyside Coal Mine at the time of

MINING OPERATIONS PLAN 1 - 7 NAMOI MINING PTY LTD

R. W. CORKERY & CO. PTY. LIMITED Table 1.1

Table 1.2

CONTACTS

R. W. CORKERY & CO. PTY. LIMITED

GEOLOGY

1.5.1 Regional Geology

MINING OPERATIONS PLAN 1 - 11 NAMOI MINING PTY LTD

R. W. CORKERY & CO. PTY. LIMITED

1.5.2.2 Overburden Lithologies

1.5.2.3 Coal Geology

Section D-E is the coal section above the highest significant stone band in the seam. Although

Table 1.3

Table 1.4 Typical Coal Quality

OWNERSHIP

1.6.1 Mine Site and Surrounding Properties

Table 1.5

MINING OPERATIONS PLAN 1 - 17 NAMOI MINING PTY LTD

R. W. CORKERY & CO. PTY. LIMITED

CONSULTATION, MANAGEMENT AND DOCUMENT

1.7.1 Consultation

1.7.3 Document Preparation

MINING OPERATIONS PLAN 2 - 1 NAMOI MINING PTY LTD

R. W. CORKERY & CO. PTY. LIMITED

Section 2: PRE-MOP ENVIRONMENT

2.2 TOPOGRAPHY

The local topography within the vicinity of the mine site is shown on Plan 2.

2.3 DRAINAGE

2.3.1 Drainage

Catchments of the Sunnyside Coal Mine and Surrounds Catchment

Total 376ha

2.3.2 Flooding