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Short Term MPL – Western Area
PCCG Meeting
3rd December 2008
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Background
• SA Government recognises Penrice operations provide important economic benefits to the State
• No current viable alternatives in SA to high grade limestone
• Short term constraints to overburden storage options (schist and aggregates)
• Long term overburden storage options yet to be resolved
• Important that the process of consultation on issues & MOP/MARP continues
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Why is the MPL needed now?
• Removal of overburden schist is required in the short term to maintain supply of L/Stone to Osborne & ABC
• PIRSA has concluded that there is an urgent short term need for additional overburden storage area
• Short term mine operational constraints:– OB removal rates much greater than OB aggregate sales– Current in pit storage already used for low grade limestone– Production constraints (mining cycle, grade control)– Crusher location– Water storage
• Unreasonable to expect Penrice to store schist in pit in short term prior to mining– Substantial rehandling costs $4-5 million– Will add to the constraints for operation of pit– Need space for LG limestone storage– The impacts of storage on an MPL managed
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Goals for interim arrangement
• Investigation and justification of long term overburden storage options to be completed.
• Discussion and resolution of environmental issues including visual impact of current operations needs to be concluded.
• Environmental performance of current operations to be improved
• Development of agreed MOP/MARP for whole site • Ongoing compliance monitoring• Supply of Osborne Stone to ABC and Osborne must
continue
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How will goals be achieved?
• Provide Penrice with limited MPL
• Setting rigorous regulatory framework, conditions on all tenements, rehabilitation bond.
• Ongoing operation of community consultation
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PIRSA’s proposal
Will be limited compared to original application:
• reduced area (south side of Jaeckeli Creek only, approx ½ original area)
• limited term (end September, 2009, usually for minimum of 7 years)
• limited volume (2 million tonnes, original application was for about 8 million tonnes)
Will also revise conditions for existing MPL and ML
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Reduced Area
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Proposed licence conditions
• First schedule – general conditions for all licences
• Second Schedule – environmental outcomes to be achieved– Some specific limitations and requirements
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First schedule
• Limits activities to “overburden storage”• Requires an approved MARP to operate• Requires immediate and annual reporting of
compliance• Allows independent auditing of compliance• Requires $20 million public liability insurance• Ensures public access to key documents
(MARP and MARCR)
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Second Schedule- Environmental Outcomes
• Visual amenity– final rehabilitated landform and vegetation must
“integrate and harmonise” with surrounding landscape
– Must be self sustaining– Link to Barossa Development Plan
• Noise, dust– no nuisance • Unauthorised access – prevent injuries to
public • Protection of aboriginal heritage
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Second Schedule- Environmental Outcomes (Contd)
• Native vegetation– No clearance in Jaeckeli Creek– Must develop a management plan to
enhance Jaeckeli creek habitat
• Soil- must preserve all existing topsoil
• Stormwater - must manage runoff
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Second Schedule- other conditions
• Limits total overburden storage to 2 million tonnes
• Validates PCCG
• Must address public complaints
• Requires that a study of overburden storage options be completed within 3 months
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Next Steps• MPL offer subject to receiving and considering advice from
Planning Minister (expected week commencing 15 Dec)• Mining Minister decides whether to grant MPL • Penrice have requested this happen before Christmas to permit
commencement of operations early 2009• If MPL granted, Penrice must, before operations commence:
– prepare MARP for the site (criteria to measure outcomes)– gain MARP approval from PIRSA – pay rent in advance– pay rehabilitation bond
• Review of MOP/MARP for whole site will continue – MOP reviews required by Mining Act– MARP review provided by license/lease condition
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Any questions?
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