Short Term MPL

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Short Term MPL Western AreaPCCG Meeting3rd
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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PIRSAs 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?