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Short Term MPL – Western Area PCCG Meeting 3 rd December 2008

Short Term MPL – Western Area PCCG Meeting 3 rd December 2008. Background. SA Government recognises Penrice operations provide important economic benefits to the State No current viable alternatives in SA to high grade limestone

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Short Term MPL – Western Area PCCG Meeting 3 rd December 2008

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  1. Short Term MPL – Western AreaPCCG Meeting3rd December 2008

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. Reduced Area

  8. Proposed licence conditions • First schedule • general conditions for all licences • Second Schedule • environmental outcomes to be achieved • Some specific limitations and requirements

  9. 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)

  10. 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

  11. 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

  12. 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

  13. 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

  14. Any questions?

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