REPORT - International Cyanide Management Code · Globally Barrick has 27 operating mines, located...

September 2008

INTERNATIONAL CYANIDE MANAGEMENT CODE GOLD MINING CERTIFICATION AUDIT

Barrick Gold of Australia Limited Kanowna Belle Gold Mine Certification Audit Summary Audit Report

Submitted to:International Cyanide Management Institute (ICMI)

Barrick Gold of Australia Limited Level 10, 2 Mill Street

888 16th Street, NW - Suite 303 Locked Bag 12, Cloisters Square Washington, DC 20006 PERTH WESTERN AUSTRALIA 6850

AUSTRALIA UNITED STATES OF AMERICA

REPO

RT

Report Number: 077641418 010 R Rev0 Distribution:

1 Copy – International Cyanide Management Institute 1 Copy – Barrick Gold of Australia Limited 1 Copy – Golder Associates

KANOWNA BELLE GOLD MINE SUMMARY AUDIT REPORT

Record of Issue

Company Client Contact Version Date Issued Method of Delivery

ICMI Norm Greenwald 077641418 010 R Rev0 Electronic and Hard Copies

Barrick Gold of Matt Hochen 077641418 010 R Rev0 Electronic and Hard CopiesAustralia Limited

September 2008 Report No. 077641418 010 R Rev0 i


SUMMARY AUDIT REPORT FOR OPERATIONAL GOLD MINES Name of Mine: Kanowna Belle Gold Mine.

Name of Mine Owner: Barrick Gold Australia Limited

Name of Mine Operator: Barrick Gold Australia Limited

Name of Responsible Manager: Matt Hochen, Project Manager ICMC Compliance

Address: Barrick Gold Australia Limited Level 10, 2 Mill Street Locked Bag 12, Cloisters Square Perth, 6850

State/Province: Western Australia

Country: AUSTRALIA

Telephone: +61 8 9212 5748

Fax: +61 8 9322 5739

E-Mail: [email protected]

LOCATION DETAIL AND DESCRIPTION OF OPERATION: Globally Barrick has 27 operating mines, located in some of the world’s most prospective gold districts in North America, South America, Australia-Pacific and Africa.

Barrick’s Australia-Pacific Business Unit is headquartered in Perth, Western Australia and comprises 10 operating mines: the Kalgoorlie, Kanowna, Granny Smith, Plutonic, Darlot and Lawlers gold mines in Western Australia; the Cowal gold mine in New South Wales; the Henty gold mine in Tasmania; the Osborne copper-gold mine in Queensland; and the Porgera gold mine in Papua New Guinea.

Kanowna Belle is a gold mining and processing operation located approximately 20 kilometres (km) east of Kalgoorlie which is approximately 570 km east of Perth in the eastern goldfields of Western Australia. The current mine and processing operations commenced in 1993.

The Kanowna Belle processing plant has an annual throughput capacity of 1.88 million tonnes. It consists of a primary crushing circuit for fresh competent ores followed by a grinding circuit consisting of a semi-autogenous grinding mill operating in closed circuit with a recycle crusher and a ball mill. Refractory ores are processed through a floatation plant to recover a refractory pyrite concentrate that is treated through a two stage roaster. The roaster product and flotation tails are leached through two separate leaching circuits. The plant has been upgraded to become the regional processing centre able to process both free milling and refractory ores. The free milling ores are treated utilising an Acacia Reactor – gravity circuit and an expanded leach circuit.

September 2008 Report No. 077641418 010 R Rev0 ii

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Table of Contents

PRINCIPLE 1 – PRODUCTION ..........................................................................................................................................1

Standard of Practice 1.1 .............................................................................................................................................1

PRINCIPLE 2 – TRANSPORTATION .................................................................................................................................2



PRINCIPLE 3 – HANDLING AND STORAGE ....................................................................................................................3



PRINCIPLE 4 – OPERATIONS...........................................................................................................................................5







Standard of Practice 4.7 ...........................................................................................................................................10



PRINCIPLE 5 – DECOMMISSIONING..............................................................................................................................12



PRINCIPLE 6 – WORKER SAFETY .................................................................................................................................13




PRINCIPLE 7 – EMERGENCY RESPONSE.....................................................................................................................16





September 2008 Report No. 077641418 010 R Rev0 iv




PRINCIPLE 8 – TRAINING ...............................................................................................................................................20




PRINCIPLE 9 – DIALOGUE..............................................................................................................................................22




APPENDICES APPENDIX A Limitations

September 2008 Report No. 077641418 010 R Rev0 v


Kanowna Belle Gold Mine 1 September 2008 Name of Facility Signature of Lead Auditor Date

September 2008 Report No. 077641418 010 R Rev0 1

PRINCIPLE 1 – PRODUCTION Encourage Responsible Cyanide Manufacturing by Purchasing from Manufacturers that Operate in a Safe and Environmentally Protective Manner Standard of Practice 1.1: Purchase cyanide from manufacturers employing appropriate practices

and procedures to limit exposure of their workforce to cyanide, and to prevent releases of cyanide to the environment.

in full compliance with

The operation is in substantial compliance with Standard of Practice 1.1

not in compliance with

Summarise the basis for this Finding/Deficiencies Identified:

Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 1.1, requiring the operation purchase cyanide from manufacturers employing appropriate practices and procedures to limit exposure of their workforce to cyanide and to prevent releases of cyanide to the environment.

Kanowna Belle purchases its sodium cyanide from Australian Gold Reagents Pty Ltd (AGR) under a Sodium Cyanide Supply Agreement. In addition to the contract, AGR, the cyanide producer, was certified as compliant under the Code on 9 October 2007.

The cyanide shipping documents provided no evidence to suggest that Kanowna Belle has received bulk delivery of cyanide reagent from any other producer.




PRINCIPLE 2 – TRANSPORTATION Protect Communities and the Environment During Cyanide Transport Standard of Practice 2.1: Establish clear lines of responsibility for safety, security, release

prevention, training and emergency response in written agreements with producers, distributors and transporters.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 2.1, requiring that the operation establish clear lines of responsibility for safety, security, release prevention, training and emergency response in written agreements with producers, distributors and transporters. Kanowna Belle purchases its sodium cyanide from Australian Gold Reagents Pty Ltd (AGR) under a Supply Agreement. In addition to the contract, AGR, the cyanide transporter, was certified under the Code on 26 September 2006 following ICMI’s acceptance of a report dated 8 September 2006 verifying compliance with a Corrective Action Plan dated 30 June 2006. The certification of AGR’s cyanide transport activities assures that the designation of responsibilities during transport has been adequately addressed. The cyanide shipping documents provided no evidence to suggest that Kanowna Belle has received bulk delivery of cyanide reagent from any other producer.

Standard of Practice 2.2: Require that cyanide transporters implement appropriate emergency response plans and capabilities and employ adequate measures for cyanide management.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 2.2, requiring that cyanide transporters implement appropriate emergency response plans and capabilities and employ adequate measures for cyanide management.

Kanowna Belle purchases its sodium cyanide from AGR under a Supply Agreement. The Supply agreement requires AGR be either a) be certified under the Code or b) provide the results of an independent third party audit of the cyanide transportation activities.

In addition to the contract, AGR, the cyanide transporter, was certified under the Code on 26 September 2006 following ICMI’s acceptance of a report dated 8 September 2006 verifying compliance with a Corrective Action Plan dated 30 June 2006.




PRINCIPLE 3 – HANDLING AND STORAGE Design and Construct Unloading, Storage and Mixing Facilities Consistent with Sound, Accepted Engineering Practices, Quality Control/Quality Assurance Procedures, Spill Prevention and Spill Containment Measures Standard of Practice 3.1: Design and construct unloading, storage and mixing facilities

consistent with sound, accepted engineering practices, quality control/quality assurance procedures, spill prevention and spill containment measures.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 3.1, requiring that cyanide handling and storage facilities are designed and constructed consistent with sound, accepted engineering practices, quality assurance/quality control (QA/QC) procedures, spill prevention and spill containment measures.

Liquid cyanide is delivered to the operation in isotainers.

The original design and construction of the facility was vetted by cyanide supplier CSBP, and Australian Gold Reagents Pty Ltd (CSBP’s successor in business) now inspects the facility periodically to satisfy itself that its design and overall integrity are suitable for ongoing deliveries of reagent cyanide. Original facilities for mixing solid cyanide on-site have been decommissioned. The facility is well away from surface water and inhabited areas. Drainage design is such that uncontrolled interaction between cyanide and acid used on the plant is very unlikely. Access to reagent storage is only available to authorised mine personnel.

A significant engineering upgrade program has been completed during 2008 to reduce the chance of the unloading and storage facility falling out of compliance with Code requirements in coming years. Civil works have included kerbing the unloading pad, capping the ring beam supporting the bulk cyanide storage tank, repairs to superficial cracks in the bund floor and the unloading pad, and sealing ring beams where they threaten the integrity of the bund. Mechanical works have included installation of additional overfill protection in the form of a high level interlock and increasing the height of the tank vent.

Standard of Practice 3.2: Operate unloading, storage and mixing facilities using inspections, preventive maintenance and contingency plans to prevent or contain releases and control and respond to worker exposures.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 3.2 requiring that cyanide handling and storage facilities are operated using inspections, preventive maintenance and contingency plans to prevent or contain releases and control and respond to worker exposures.




Only reagent cyanide is used at Kanowna Belle, which is unloaded and stored in a facility that has been designed and constructed according to accepted engineering standards and specifications. Standard operating procedures have been developed and are implemented to manage cyanide unloading and storage activities effectively and safely. Special attention has been paid to the roles of the Escort and Sentry. The Sentry observes the delivery Driver from a safe location throughout the unloading operation, ensures that appropriate personal protective equipment is used and that incident response equipment is available if needed.




PRINCIPLE 4 – OPERATIONS Manage Cyanide Process Solutions and Waste Streams to Protect Human Health and the Environment Standard of Practice 4.1: Implement management and operating systems designed to protect

human health and the environment including contingency planning and inspection and preventive maintenance procedures.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 4.1, requiring that the operation implement management and operating systems designed to protect human health and the environment including contingency planning and inspection and preventive maintenance procedures. Kanowna Belle has developed and implemented management and operating systems that are designed to protect human health and the environment from cyanide exposures and releases. Such systems are document-controlled through a range of systems including INTUITION, (technical training and processing procedures), Oracle (routine maintenance), MS-Project and MS-Excel (shutdown maintenance), MS-Excel (laboratory calibration) and RIMS (operational actions). Technical training materials document the background design principles, regulatory requirements and safeguards required to manage the risks associated with cyanide. Standard operating procedures are structured to highlight hazards related to cyanide, required training, the personal protective equipment required to carry out tasks safely and the most appropriate work methods. There are documented procedures that form the basis of training in the response to foreseen circumstances in which there is an increased risk of cyanide incidents. There is an extensive program of inspection and preventive maintenance activities designed to detect leaks, non-conformances and facilities degraded by corrosion or other issues carried out and documented by operations, maintenance and laboratory personnel. Administration of the preventive maintenance program has recently been migrated to Oracle and the program is being reviewed, taking advantage of the new system to review its overall routine maintenance program. Shutdown maintenance is planned separately from Oracle at present, using MS-Project to define the logical sequence of events during shutdown periods that typically occur four times per year. There is a sound change management process to ensure that modifications to cyanide-related facilities and operating conditions are evaluated and approved by those with appropriate environmental and safety expertise. Emergency power is not required to prevent unintentional releases and exposures in the event that primary power supply is interrupted. This is due to the facilities design.




Standard of Practice 4.2: Introduce management and operating systems to minimise cyanide use, thereby limiting concentrations of cyanide in mill tailings.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 4.2, requiring that the operation introduce management and operating systems to minimise cyanide use, thereby limiting concentrations of cyanide in mill tailings.

The operation does conduct a program to determine appropriate cyanide addition rates in the mill and evaluate and adjust addition rates as necessary when ore types or processing practices change cyanide requirements.

Records of original metallurgical assessments were not available for every ore type processed, however Kanowna Belle recently initiated metallurgical assessments on all ore types to verify the processing methodology used by Kanowna Belle including cyanide addition rates are appropriate.

Ongoing cyanide addition rates are adjusted based on a combination of daily to weekly bottle roll tests and monitoring the concentration of gold in the head grade and tailings stream.

Once optimum cyanide concentrations have been established, cyanide addition rates are controlled through the use of in stream cyanide analysers and cross check with manual titrations in the conventional leach circuit and manual titrations in the calcine leach circuit. A dual stream TAC 1000 was in the process of being installed in the calcine leach circuit at the time of the audit.

Standard of Practice 4.3: Implement a comprehensive water management program to protect against unintentional releases.





Kanowna Belle Bell is in FULL COMPLIANCE with Standard of Practice 4.3, requiring the operation to implement a comprehensive water management programme to protect against unintentional releases. Kanowna Belle has developed a comprehensive, probabilistic water balance, which addresses all the elements detailed within the ICMI Auditor Guidance Notes, although some assumptions have been noted for review. The water balance does not address solution application rates specifically as this is assumed to be included in the overall rate of tailings application to the Tailings Storage Facility (TSF) under the scope defined for the model. The model makes allowance for tailings deposition rates as-forecast over the model run period and also makes allowance for evaporation and seepage. Evaporation modelling can be simulated by selecting high, medium and low options. Based on topographical considerations, undiverted rainfall from upgradient areas has been excluded as a consideration of the model.




The model has the capacity to input actual data on power or other outages impacting the availability of pumped systems and this data is taken into account in the simulations. Existing operating procedures incorporate inspection and monitoring activities to manage the risk of overtopping the TSF and other impoundments including the decant dam in line with regulatory requirements. TSF and ponds are designed and operated with adequate freeboard above the maximum design storage capacity determined to be necessary from water balance calculations and regulatory requirements. A review of design documents, a TSF audit report and inspection sheets support this. The operation compares precipitation results to design assumptions and revises operating practices as necessary.

Standard of Practice 4.4: Implement measures to protect birds, other wildlife and livestock from adverse effects of cyanide process solutions





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 4.4, requiring the operation implement measures to protect birds, other wildlife and livestock from adverse effects of cyanide process solutions. Between 1 February 2008 and 3 June 2008, the average daily WAD cyanide levels from the TSF spigot was 49 mg/L, with a maximum reading of 97 mg/L. The Code Auditor Guidance does note that it is possible for operations to demonstrate that a higher concentration of WAD cyanide in open water is not lethal to the specific types of birds and other wildlife that live and pass through the area, then some higher but still protective level would be appropriate. Kanowna Belle has participated in two investigations concerning TSF bird mortalities. The first investigation focused on an assessment the risk of the effects of cyanide-bearing tailings solutions on wildlife (Australian Centre for Minerals Extension and Research (ACMER) Project R58). The second followed on from ACMER Project R58 and attempted to investigate hypersaline ecotoxicity (Minerals and Energy Research Institute of Western Australia (MERIWA) Project M398). The objective of the MERIWA Project M398 was to confirm the anecdotal evidence that suggests that wildlife interaction and ingestion of hypersaline solutions and tails is less than that experienced at other TSFs and that these operations experience rapid degradation of cyanide following tailings deposition within a TSF. The MERIWA Project M398 documents the following hypotheses as being valid and a causation inferred for Kanowna Belle:

Hypersalinity (>50,000 mg/L TDS) provides a natural barrier for wildlife exposure to WAD cyanide contained in tailings solutions because at this salinity the solutions are outside the physiologically safe drinking range of wildlife and wildlife seek to avoid its ingestion while foraging.

WAD cyanide in hypersaline waters is lost at rates sufficient to have a substantial beneficial impact on the physical area of wildlife exposure to contained WAD cyanide (levels and profiles are to be determined on a site-specific basis).

The study notes no wildlife deaths attributable to cyanide were recorded at Kanowna Belle’s TSF during the on-site or third party monitoring. A total 5710 live wildlife visitations to the TSFs were recorded. The lack of




no wildlife recommendations address maintenance of the

sites are benign to wildlife at e operating parameters experienced during the course of the study. The Definitive Report noted the

following ppli

Parameter yanide /L) (95 percentile – operate er on 95% of days)

entile (mg/L) (operate r on 80% of days)

Target Minimum /L) imum

per# (mg/L)

recorded deaths appears to reflect a lack of actual deaths despite observed interaction (including foraging behaviour) with tailings at all three sites. The MERIWA Project M398 Report contained three key recommendations relating to operating parameters, monitoring and minimising infrastructure in the vicinity of cyanide bearing habitats. The recommendations are provided in the context of the relevant standards of practice specified in the Code to address any perceived risks of wildlife cyanosis and identify requirements for compliance with the Code. Sincecyanosis deaths were recorded during the project period, theprotective measures already in place and modification of the current water chemistry and wildlife management and monitoring procedures where necessary. With regard to operating parameters, the Definitive Report considered that the th

operating parameters are considered a

Target Maximum WAD C

cable for Kanowna Belle:

Target WAD Cyanide 80

(mgund

percunde

TDS (mgTarget MaxCop

Spigot 92 78 50,000 50

Supernatant 40 NA 50,000 50

The MERIWA Project M398 was appropriately peer reviewed. In parallel to MERIWA Project M398, Kanowna Belle installed and commissioned a cyanide destruction plat Kanowna Belle during August 2008. The cyanide destruction plant is designed to limit WAD cyanide discharges to the TSF to

ant

10 mg/L. The cyanide destruction plant at Kanowna Belle will only be operated

solution ponds. concentration of 50 mg/L or less in open water are effective in

rs. These waters include:

Supernatant Ponds

Drains/Seepage Trenches

Dam

he operation conducts wildlife observations daily at the TSF (including seepage trenches, etc), and decant ond and monthly observations at the process water dam.

The operation does not use a heap leach process.

when monitoring indicates spigot chemistry has deviated from the specifications detailed in the MERIWAProject M398 Report. Kanowna Belle does monitor WAD cyanide concentrations in open water in TSFs and Kanowna Belle can show that WAD cyanidepreventing significant wildlife mortality for all open wate

TSF Cell 1 and 2

TSF cell 1 and 2 Toe

Decant Pond

Process Water

Wildlife Dam

Troy Sump Tp




Standard of Practice 4.5: Implement measures to protect fish and wildlife from direct or indirect discharges of cyanide process solutions to surface water.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 4.5, requiring the operation implement measures to protect fish and wildlife from direct or indirect discharges of cyanide process solutions to surface water.

Kanowna Belle does not have a direct discharge to surface water. The nearest surface water body is White Flag, an ephemeral salt lake located approximately 20 km to the north-east and groundwater monitoring does not indicate that the operation is indirectly discharging to this surface water body.

Standard of Practice 4.6: Implement measures designed to manage seepage from cyanide facilities to protect the beneficial uses of groundwater.




not subject to


Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 4.6, requiring the operation implement measures designed to manage seepage from cyanide facilities to protect the beneficial uses of groundwater.

The operation’s prescribed activities (Processing and beneficiation of metallic ore, and mine dewatering) are the beneficial uses of the groundwater and are regulated through the site’s Environmental Licence issued by the Department of Environment and Conservation under the Environmental Protection Act. The abstraction of groundwater for dewatering and mineral ore processing is further authorised under the sites groundwater well licence.

The Tailings Storage Facility (TSF) is unlined and seepage is managed through perimeter seepage trenches and recovery wells.

WAD cyanide concentrations in groundwater at compliance points are below levels that are protective of identified beneficial uses of groundwater.

The operation currently uses mill tailings as underground backfill and the operation has evaluated and implemented measures to protect the potential impacts to worker health and the beneficial uses of groundwater through a comprehensive test work and risk assessment programme.




Standard of Practice 4.7: Provide spill prevention or containment measures for process tanks and pipelines.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 4.7 requiring that the operation implement measures designed to manage seepage from cyanide facilities to protect the beneficial uses of groundwater.

The materials of construction used for primary containments at Kanowna Belle conform to the standards generally recognised as suitable in the gold mining industry. The operation has recently completed capital works and significant repairs to ensure that its secondary containments provide effective barriers against seepage and has the capacity to hold the largest tank in any containment as well as pipe drainage and storm volumes. In doing so, it has eliminated ring beam foundations for higher cyanide strength tanks and has implemented a lysimeter-based leak detection system within the ring beams of lower cyanide strength tanks. There are also arrangements to contain pipeline leaks and to monitor for such leaks. These involve impermeable surfacing where high strength leaks could occur and earthen bunding along low strength routes. There is no surface water to be protected anywhere near Kanowna Belle, but cyanide solutions collected within bunded areas can readily be pumped back into the process. At the Paste Plant, there is a release scenario that could involve release of low strength solution to ground and there is an emergency response scenario to deal with that, including proper clean up of contaminated soil.

Standard of Practice 4.8: Implement quality control/quality assurance procedures to confirm that cyanide facilities are constructed according to accepted engineering standards and specifications.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 4.8 requiring that operations implement QA/QC procedures to confirm that cyanide facilities are constructed according to accepted engineering standards and specifications.

Kanowna Belle has partial documentation of the quality assurance and quality control programs implemented during construction of its cyanide facilities. The operation has therefore used a combination of its own appropriately qualified personnel and independent experts to review the condition, operation and maintenance of its cyanide facilities. The Kanowna Belle Maintenance Manager has undertaken the latest in a series of reviews. The Maintenance Manager is an appropriately qualified person to oversee such a review, and is competent to undertake inspections in his areas of specialist expertise. The latest review in June 2008 provides formal assurance that the continued operation of cyanide facilities at Kanowna Belle will protect against cyanide exposures and releases and notes the operating and maintenance parameters that constrain the validity of the assurance provided.




Standard of Practice 4.9: Implement monitoring programs to evaluate the effects of cyanide use on wildlife, surface and groundwater quality.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 4.9 requiring that operations implement monitoring programs to evaluate the effects of cyanide use on wildlife, surface and groundwater quality.

The operation has written standard procedures for monitoring activities for wildlife, surface and groundwater quality which were prepared by appropriately qualified persons. The procedures contain information on how and where samples should be taken, sample preservation techniques, chain of custody procedures, shipping instructions, and cyanide species to be analysed. Cyanide species and other parameters to be monitored are also nominated in the Department of Environment and Conservation (DEC) Environmental Licence.

The procedures conform to monitoring and reporting requirements detailed in the DEC Licence for the facility and are consistent with AS/NZS 5667 – Water Quality Sampling – Guidance on the design of sampling programs, sampling techniques and the preservation and handling of samples.

Section 4 of the Water Quality and Monitoring Procedures Manual prepared by Gecko Environmental Monitoring and Sampling Services and the Kanowna Belle SOP for Wildlife Monitoring require that sampling conditions be recorded. The SOP for Tailings Storage Facility (TSF) and Decant Pond sampling does not. However, sampling time and temperature is recorded on the Wildlife Observation data sheet. This data sheet requires weather conditions, etc, to be recorded during wildlife monitoring at the TSF, which is undertaken concurrently with the TSF and Decant Pond water sampling.

There are several downgradient groundwater monitoring bores around the TSF, decant pond and open cut pit/paste fill plant. There are no monitoring bores specifically for the plant site. However, the bores situated around the calcine TSF are downgradient of the plant site. The operation does not have a direct or indirect discharge to surface waters.

Kanowna Belle wildlife monitoring procedures were developed by Kanowna Belle, using information provided by qualified ornithologist David Donato from Donato Environmental Services. Monitoring occurs at the TSF, decant pond, associated sumps and drains as well as the process water dam.

Monitoring is conducted at frequencies adequate to characterise the medium being monitored and to identify changes in a timely manner.




PRINCIPLE 5 – DECOMMISSIONING Manage Cyanide Process Solutions and Waste Streams to Protect Human Health and the Environment Standard of Practice 5.1: Plan and implement procedures for effective decommissioning of

cyanide facilities to protect human health, wildlife and livestock.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 5.1 requiring that operations plan and implement procedures for effective decommissioning of cyanide facilities to protect human health, wildlife and livestock.

The operation has developed Decontamination and Decommissioning Plan (DDP) detailing Kanowna Belle’s decommissioning procedures. The DDP includes an implementation schedule divided into monthly units and the planned tasks are scheduled up to 24 months prior to closure and continue for up to 24 months after closure. The operation has established a system to review its decommissioning procedures for cyanide facilities during the life of the operation and revise them as needed.

Standard of Practice 5.2: Establish an assurance mechanism capable of fully funding cyanide related decommissioning activities.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 5.2 requiring that the operation establish an assurance mechanism capable of fully funding cyanide related decommissioning activities. The closure cost for the Kanowna Belle operation has been calculated by Barrick’s Regional Reclamation and Closure Manager. The cost estimate is sufficient to cover the items detailed within the Decontamination and Decommissioning Plan (DDP) and third party equipment and labour rates were used. The Western Australian Department of Industry and Resources (DoIR) has established an Unconditional Performance Bond (UPB) system under Section 84 of the Mining Act. In addition to this Barrick engaged an independent certified public accountant to assist in obtaining a corporate financial guarantee for all cyanide decommissioning activities using 40 CFR 264.143(f), 30 CFR 800.23 and 10 CFR 30. The process was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the ICMI’s implementation Guidence. The report contains several summary statements concerning Barrick’s financial strength indicating Barrick has sufficient financial strength to meets its cyanide decommissioning costs.




PRINCIPLE 6 – WORKER SAFETY Protect Workers’ Health and Safety from Exposure to Cyanide Standard of Practice 6.1: Identify potential cyanide exposure scenarios and take measures as

necessary to eliminate, reduce and control them.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 6.1 requiring an operation to identify potential cyanide exposure scenarios and take measures as necessary to eliminate, reduce and control them.

The operation has developed in excess of 100 plans, procedures, forms and sampling documents for both the processing and for maintenance tasks in the Processing Plant Area relating to cyanide tasks.

The procedures require, where necessary, the use of personal protective equipment (PPE) and address pre-work inspections. All employees and contractors working on the site are required to undertake a field level risk assessment (FLRA) prior to undertaking any task. Training on the FLRA process is provided during Induction training and all contractors and employees are issued with FLRA pocket book detailing the procedure, risk assessment matrix and record sheets. The risk score obtained during the FLRA process requires different responses from workers:

The operation has a change management procedure to allow process and operational changes and modifications to be reviewed for their potential impacts on worker health and safety, and incorporate the necessary worker protection.

The operation does formally solicit and actively consider worker input in developing and evaluating health and safety procedures. This is done formally using the FLRA process and Environmental, Health and Safety Committee.

Standard of Practice 6.2: Operate and monitor cyanide facilities to protect worker health and safety and periodically evaluate the effectiveness of health and safety measures.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 6.2 requiring an operation operates and monitors cyanide facilities to protect worker health and safety and periodically evaluates the effectiveness of health and safety measures. The operation has established pH for the operation of the plant depending on the ore being processed, this is controlled through an automated dosing system and monitored through a Tech 1000 unit.




Where the potential exists for significant cyanide exposure, the operation does use personal monitoring devices to confirm that controls are adequate to limit worker exposure to HCN gas and personal HCN monitors are worn in close proximity to the leach tanks, and the ball mill. There are no tasks or work areas that expose workers to a hydrogen cyanide concentration of 4.7ppm or greater for a continuous eight hour period. The operation has identified areas and activities where workers may be exposed to cyanide in excess of 10 ppm and require use of PPE in these areas or when performing these activities and complete evacuation of the area if above 20 ppm. Bulk sodium cyanide solution unloading and cyanide emergencies have been identified to be high risk activities that require a high level of PPE whilst performing these tasks. HCN monitoring equipment is maintained, tested and calibrated as directed by the manufacturer, and records retained for at least one year. Signage at the cyanide storage and processing area stipulates that there is “No Eating and No Drinking In this Area” and “Danger HCN Gas”. Monitors must be worn”. Access is restricted to the processing plant area and cyanide storage area, eating and drinking is restricted to the control room and smoking was only observed immediately outside the control room. Showers, low-pressure eyewash stations and dry-powder fire extinguishers were located at strategic locations throughout the operation in the cyanide areas, and are maintained, inspected and tested on a regular basis. Tanks and piping containing cyanide at concentrations that pose a threat to worker health and safety (i.e., >15 mg/L WAD) were adequately labelled. MSDSs, first aid procedures and informational materials on cyanide safety were available in the language (English) of the workforce and are available in areas where cyanide is managed. Kanowna Belle has implemented an Incident Reporting and Investigation Procedure capable of investigating and evaluating cyanide exposure incidents to determine if the programmes and procedures are adequate to protect worker health and safety or need revising.

Standard of Practice 6.3: Develop and implement emergency response plans and procedures to respond to worker exposure to cyanide.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 6.3 requiring an operation develop and implement emergency response plans and procedures to respond to worker exposure to cyanide.

The operation has the necessary equipment to respond in the event of a worker’s exposure to cyanide.

The operation does inspect its First Aid equipment regularly to ensure that it is available when needed, and materials such as cyanide antidotes are stored and/or tested as directed by their manufacturer and replaced on a schedule to ensure that they will be effective when needed. The operation has developed and implemented a site specific Cyanide Emergency Response Plan (CERP). The CERP notes that cyanide exposure scenarios represent a real risk to the operation and as such, the plan has developed a pre-incident plan for a cyanide related injury. These procedures are enforced through




cyanide awareness training, procedures, and signage out in the treatment plant at strategic positions where there are high-risk, cyanide tasks.

The operation does have its own on-site capability to provide first aid assistance to workers exposed to cyanide and the operation has developed procedures to transport workers exposed to cyanide to locally available qualified off-site medical facilities.

The operation has a mutual aid agreement with the Kalgoorlie Regional Hospital and Boulder Medical Centre for treating any cyanide cases.

Mock emergency drills are conducted periodically to test response procedures for various emergency scenarios, and lessons learned from the drills are incorporated into response planning via debriefs.

The Mine’s Rescue (Emergency Response Team) conduct drills on a weekly basis. Responses to chemical emergencies form a significant part of the training.




PRINCIPLE 7 – EMERGENCY RESPONSE Protect Communities and the Environment through the Development of Emergency Response Strategies and Capabilities Standard of Practice 7.1: Prepare detailed emergency response plans for potential cyanide

releases.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 7.1 requiring an operation prepare detailed emergency response plans for potential cyanide releases.

The operation has developed and implemented a site specific Cyanide Emergency Response Plan (CERP) to address potential accidental releases of cyanide. The site has adopted a tiered approach to emergency response and the CERP forms part of the site Kanowna Belle Emergency Response Management Plan (ERMP) which combines with the Barrick Kanowna Belle Crisis Management and Recovery Manual (CMRM) to form Kanowna Belle’s Emergency Management System.

The CERP details specific written emergency response plans and procedures to respond to cyanide exposures as required by this standard of practice.

The CERP details five pre-incident plans (PIP) that address the identified potential incident scenarios for the site. It is considered that these PIP’s cover the potential cyanide failure scenarios appropriate for its site-specific environmental and operating circumstances, including on-site transportation.

The Plan does describe specific response actions (as appropriate for the anticipated emergency situations) such as clearing site personnel from the area of exposure, use of cyanide antidotes and First Aid measures.

The intention of the CERP is to provide a single point of reference for all cyanide incidents on-site where emergency response is required. It is designed to be a point of reference for both new and existing employees involved in responding to cyanide incidents on-site.

Standard of Practice 7.2: Involve site personnel and stakeholders in the planning process.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 7.2, requiring an operation involve site personnel and stakeholders in the planning process.




The operation engaged an external emergency management consultant to assist in the development of the Cyanide Emergency Response Plan (CERP). The development process involved workforce and stakeholder consultation.

Barrick have determined that there are no potentially affected communities in close proximity to Kanowna Belle. Kalgoorlie is the nearest settlement approximately 20 km away. The workforce at Kanowna Belle is consider to be the main group at risk from an on-site cyanide emergency as there are no down stream or nearby communities. The workforce is fully trained in cyanide awareness and trained in the operations and maintenance procedures as well as emergency response.

The operation has a mutual aid agreement with the Kalgoorlie Regional Hospitals for treating any cyanide cases and is in communication with the Dr Joseph of Boulder Medical Centre for treatment and response to cyanide emergencies. A memorandum of understanding has also been established between Barrick and the Royal Flying Doctors Service (RFDS).

The CERP review and revision process solicits and incorporate feedback from Stakeholders listed within the CERP.

Standard of Practice 7.3: Designate appropriate personnel and commit necessary equipment and resources for emergency response.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 7.3 requiring an operation designate appropriate personnel and commit necessary equipment and resources for emergency response.

The elements of the Cyanide Emergency Response Plan (CERP)s and procedures do:

a) designate primary and alternate emergency response coordinators whom have explicit authority to commit the resources necessary to implement the Plan;

b) identify Emergency Response Teams;

c) require appropriate training for emergency responders;

d) include call-out procedures and 24-hour contact information for the coordinators and response team members;

e) specify the duties and responsibilities of the coordinators and team members;

f) list emergency response equipment, including personal protection gear, available along transportation routes and/or on-site;

g) include procedures to inspect emergency response equipment to ensure its availability; and

h) describe the role of outside responders, medical facilities and communities in the emergency response procedures.




Kanowna Belle does not anticipate the involvement of external assistance with cyanide emergencies but the CERP does include a number of entities as having a potential role in an emergency.

Two full scale mock cyanide emergencies have been conducted to date. The scenarios were:

20 May 2008 – Fitter splashed with reagent strength cyanide and spill outside of containment.

28 November 2007 – Man down in reagent yard.

Both drills were assessed and a list of recommendations developed based on the response.

Standard of Practice 7.4: Develop procedures for internal and external emergency notification and reporting.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 7.4 requiring the development of procedures for internal and external emergency notification and reporting.

The Plan does include procedures and contact information for notifying management, regulatory agencies, outside response providers and medical facilities of the cyanide emergency.

The roles and responsibilities of the various emergency responders are defined in the Cyanide Emergency Response Plan (CERP).

The CERP and the Crisis Management system also includes procedures for communicating with the media.

Standard of Practice 7.5: Incorporate in response plans and remediation measures monitoring elements that account for the additional hazards of using cyanide treatment chemicals.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 7.5, requiring an operation develop procedures for internal and external emergency notification and reporting.

The Cyanide Emergency Response Plan (CERP) and associated procedures do describe specific remediation measures as appropriate for the likely cyanide release scenarios, such as:

Recovery or neutralisation of solutions or solids;

Decontamination of soils or other contaminated media;




Management and/or disposal of spill clean-up debris; and

Provision of an alternate drinking water supply.

The CERP prohibits the use of chemicals, such as sodium hypochlorite, ferrous sulphate and hydrogen peroxide to treat cyanide that has been released into surface water.

Section 6.0 of the CERP address the potential need for environmental monitoring to identify the extent and effects of a cyanide release, and include sampling methods, parameters and, where practical, possible sampling locations.

Standard of Practice 7.6: Periodically evaluate response procedures and capabilities and revise them as needed.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 7.6 requiring an operation periodically evaluate response procedures and capabilities and revise them as needed.

The operation does review and evaluate the cyanide related elements of its Emergency Response Plan for adequacy on a regular basis.

Section 7.8 of the Cyanide Emergency Response Plan (CERP) provides that the plan is to be reviewed and revised following all cyanide related emergencies and drills (in the absence of incidents, review and revision should occur immediately after the mock cyanide drill) and revision information kept on file.

Mock cyanide emergency drills are conducted periodically as part of the CERP evaluation process, however the CERP is less than one year old and reviews conducted following cyanide related emergencies and drills conducted to date have not resulted in changes to the CERP.




PRINCIPLE 8 – TRAINING Train Workers and Emergency Response Personnel to Manage Cyanide in a Safe and Environmentally Protective Manner Standard of Practice 8.1: Train workers to understand the hazards associated with cyanide use.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 8.1 requiring an operation train workers to understand the hazards associated with cyanide use.

The operation does train all personnel who may encounter cyanide in cyanide hazard recognition.

Personnel who may encounter cyanide complete the cyanide awareness and refresher training annually.

Competency training including tasks involving cyanide is also carried out.

The cyanide awareness, competency training and assessment, and records, are maintained in the INTUITION database. The operational departments also maintain paper copies of these training records.

Standard of Practice 8.2: Train appropriate personnel to operate the facility according to systems and procedures that protect human health, the community and the environment.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 8.2 requiring an operation train appropriate personnel to operate the facility according to systems and procedures that protect human health, the community and the environment.

The Operation trains workers to perform their normal production tasks, including unloading, mixing, production and maintenance, with minimum risk to worker health and safety and in a manner that prevents unplanned cyanide releases. The standard operating procedures are used as a basis for training personnel in tasks and assessment of competency. The Processing Safety and Trainer Coordinator and the Workplace Assessor run formal competency training, which includes cyanide tasks. Personnel are trained and assessed in procedures relating to cyanide tasks prior to allowing them to work independently. The competency training is accredited training based on the Australian Metalliferous Qualifications Framework. Maintenance workers are also trained in cyanide related tasks based on maintenance procedures.

All trainers and assessors are appropriately qualified.




Employees are trained prior to working with cyanide.

Cyanide awareness refresher training is conducted every year by the department training coordinator for those who work with cyanide or those who work on cyanide related tasks. A basic introductory course is run every year for personnel who may encounter cyanide.

The operation evaluates the effectiveness of cyanide training by testing and observation.

The competency training records are maintained electronically. There are also hard copies of training records and assessment sheets, which are kept in the Training Department.

Standard of Practice 8.3: Train appropriate workers and personnel to respond to worker exposures and environmental releases of cyanide.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 8.3 requiring an operation train appropriate workers and personnel to respond to worker exposures and environmental releases of cyanide.

All cyanide unloading, mixing and production personnel are trained in the procedures to be followed if cyanide is released.

The Processing Safety and Training Coordinator and the Workplace Assessors out in the plant run formal competency training, which includes cyanide tasks. Personnel are trained and assessed in procedures relating to cyanide tasks prior to allowing them to work independently. The competency training is accredited training based on the Australian Metalliferous and New Zealand Qualifications Framework. Maintenance workers are also trained in cyanide related tasks based on maintenance procedures.

When there is a cyanide release, an emergency alarm is raised and the Mines Rescue/Emergency Response Team take over. Cyanide training is a core competency of all ERT team members. The training is assessed through a scenario involving and a man trapped beneath a forklift being exposed to a cyanide spill in the reagent area.

Process Plant and Maintenance workers are trained in First Aid with three yearly refreshers. All the ERT are trained in First Aid and there is at least one Registered Nurse either on duty or call out.

The CERP provides for limited outside response with the on-site emergency response team being responsible for managing on-site cyanide emergencies.

Cyanide awareness and refresher training records and first aid training records are retained by the Training Department, both electronically and paper copies. Emergency response training records are maintained in the INTUITION system and by the Emergency Response Coordinator.

A formal emergency response drill based on a cyanide exposure scenario has been carried out on 20 May 2008 and 28 November 2007. Following each mock drill, a full debrief was conducted that identified corrective actions. The mock drill includes the designated responders and was documented.




PRINCIPLE 9 – DIALOGUE Engage in Public Consultation and Disclosure Standard of Practice 9.1: Provide stakeholders the opportunity to communicate issues of

concern.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 9.1 requiring an operation provide stakeholders the opportunity to communicate issues of concern

The operation does provide the opportunity for stakeholders to communicate issues of concern regarding the management of cyanide. This is done at an operational and corporate level.

At a corporate level, Barrick have established an email address ([email protected]) on their website for questions concerning cyanide.

At an operational level all employees, contractors and visitors are required to attend a “general site induction”, prior to working on the site. The induction notes that cyanide is used on the site and promotes questions on the issue. A cyanide awareness training package has been developed and is delivered to all employees when they are attending their general site induction. Opportunity is provided during the presentation to answer questions from the participants.

Kanowna Belle allows public access to the site and a sign is located along Yarri Road inviting the public to view the mining operations from a lookout. Viewing platforms have been provided along with information boards.

The Kanowna Belle environmental licence is renewed annually by the Department of Environment and Conservation (DEC). As part of the renewal process the DEC invites public comment on the conditions attached to the licence, through newspaper advertisements. The licence contains conditions relating to the management of cyanide and its constituents.

Standard of Practice 9.2: Initiate dialogue describing cyanide management procedures and responsively address identified concerns.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 9.2 requiring an operation initiate dialogue describing cyanide management procedures and responsively address identified concerns

At an operational level, Kanowna Belle utilise site inductions, information articles in quarterly newsletters, intranet and cyanide awareness training to create opportunities for the operation to communicate with the workforce and provide them with information regarding cyanide management practices and procedures.




Barrick Gold’s website outlines cyanide use at Kanowna Belle and also has a public affairs email for queries on cyanide use at their sites, such as Kanowna Belle. Interaction with Yarri Road users is via a sign advising of lookout areas and the provision of information boards at the viewing areas.

Standard of Practice 9.3: Make appropriate operational and environmental information regarding cyanide available to stakeholders.





Kanowna Belle is in FULL COMPLIANCE with Standard of Practice 9.3 requiring an operation make appropriate operational and environmental information regarding cyanide available to stakeholders Kanowna Belle has developed information packages regarding cyanide management practices and procedures and has created opportunities to interact with selected stakeholders, specifically employees, contractors and tourists. The illiterate proportion of the local population did not constitute a significant percentage and consequently, verbal dissemination of material was not considered warranted. The operation has the mechanisms to make information publicly available on the cyanide release or exposure incidents, where applicable. Kanowna Belle has a safety and environment incident reporting and investigation procedure that ensures unplanned cyanide exposures and releases are investigated and reported by Kanowna Belle. Kanowna Belle is required to submit an annual environmental report (AER) to the DEC and DOIR on an annual basis. The AER details all environmental incidents that occurred on-site during the reporting period. The AER is publically available from the DEC and available from the DOIR through the Freedom of Information Act. In addition to the AER, off-site spills for all Barrick operations are reported in the Company’s annual Responsibility Report. The Responsibility report is available on the Barrick website and is issued to employees. All mining operations within Western Australia are required to report serious occurrences and mining injuries to DoCEP on designated forms. The CERP requires appointed media liaison personnel to keep the media apprised of incident cyanide related incidents in accordance with the procedure. The content and frequency of information flow is dependent on the type and severity of the incident and the risk to surrounding communities. The dissemination of information to the media will take the form of media conferences, statements and releases as appropriate.


Report Signature Page

GOLDER ASSOCIATES PTY LTD

Edward Clerk ICMI Lead Auditor/Technical Specialist Manager Mining Environmental Services Group

EC/HJ/cem

A.B.N. 64 006 107 857

m:\jobs407\mining\077641418-barrick cn audits\certification audit\kanowna belle\final reports\077641418 010 r rev0 kanowna belle summary audit.doc

September 2008 Report No. 077641418 010 R Rev0


September 2008 Report No. 077641418 010 R Rev0

APPENDIX A Limitations

Golder Associates Pty Ltd GAP Form No. LEG04 RL1

LIMITATIONS

This Document has been provided by Golder Associates Pty Ltd (“Golder”) subject to the following limitations: This Document has been prepared for the particular purpose outlined in Golder’s proposal and no responsibility is accepted for the use of this Document, in whole or in part, in other contexts or for any other purpose. The scope and the period of Golder’s Services are as described in Golder’s proposal, and are subject to restrictions and limitations. Golder did not perform a complete assessment of all possible conditions or circumstances that may exist at the site referenced in the Document. If a service is not expressly indicated, do not assume it has been provided. If a matter is not addressed, do not assume that any determination has been made by Golder in regards to it. Conditions may exist which were not detected given the limited nature of the enquiry Golder was retained to undertake with respect to the site. Variations in conditions may occur between assessment locations, and there may be special conditions pertaining to the site which have not been revealed by the investigation and which have not therefore been taken into account in the Document. Accordingly, additional studies and actions may be required. In addition, it is recognised that the passage of time affects the information and assessment provided in this Document. Golder’s opinions are based upon information that existed at the time the information is collected. It is understood that the Services provided allowed Golder to form no more than an opinion of the actual conditions of the site at the time the site was visited and cannot be used to assess the effect of any subsequent changes in the quality of the site, or its surroundings, or any laws or regulations. Any assessments, designs, and advice provided in this Document are based on the conditions indicated from published sources and the investigation described. No warranty is included, either express or implied, that the actual conditions will conform exactly to the assessments contained in this Document. Where data supplied by the client or other external sources, including previous site investigation data, have been used, it has been assumed that the information is correct unless otherwise stated. No responsibility is accepted by Golder for incomplete or inaccurate data supplied by others. Golder may have retained subconsultants affiliated with Golder to provide Services for the benefit of Golder. To the maximum extent allowed by law, the Client acknowledges and agrees it will not have any direct legal recourse to, and waives any claim, demand, or cause of action against, Golder’s affiliated companies, and their employees, officers and directors. This Document is provided for sole use by the Client and is confidential to it and its professional advisers. No responsibility whatsoever for the contents of this Document will be accepted to any person other than the Client. Any use which a third party makes of this Document, or any reliance on or decisions to be made based on it, is the responsibility of such third parties. Golder accepts no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions based on this Document.

Golder Associates Pty Ltd Level 2, 1 Havelock Street West Perth Western Australia 6005 Australia T: +61 8 9213 7600

REPORT - International Cyanide Management Code · Globally Barrick has 27 operating mines, located...

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