Xstrata Coal Australia Fact Sheet

Water Management

Our cOmmitment Our cOmmitment tO addressing climate change

Xstrata Coal is committed to the responsible use and management of We believe access to affordable, water in and around our operations. reliable and secure energy is fundamental to economic and social We know that in many regions development. We understandscarce where we operate, water is a that to meet rising global energy demand commodity, and is often shared with in developed and developingusers other industries, agricultural economies, a variety of energy and communities. sources, including fossil fuels and Prolonged drought can alsowill to low-emission technologies, lead a lack of water needed forensure be required. This will help mining and security of energy supply well the processing operations as and

as dust control, and other uses on site, potentially leading to a loss of economic growth while minimising production, and disruption to our the impact of our energy use on the business. environment. In contrast, some of our other To address the global issue of climate Xstrata operations are located in change, we believe it is necessary areas where there is an abundance to reduce greenhouse gas emissions of water resources, which brings and increase the efficiency of energy different challenges such as use associated with the production managing water quality, preventing and consumption of fossil fuels. uncontrolled discharges from our These are both achievable goals. mine sites and ensuring the safety

and wellbeing of downstream water users. Xstrata Coal accepts the weight of scientific opinion regarding climate Proactive management of water change. our operations is crucial on at all of We acknowledge a price carbon will be required to transition to ensuring that our water use and to a low-emission economy in the management does not negatively future our communities and affect as part of a global response to climate change. environment is neighbours; the protected from potential discharges off site; and the needs of our operations are secured.

how do we manage water resourCes? Planning and development for any new project is underpinned from inception by our corporate sustainability objectives. This not only ensures alignment with national and state guidelines, but has led to our operational plans being compliant with more stringent targets. In keeping with the principles of sustainable mine planning, the mitigation of potential water resource impacts is an integral component in all stages of the mine lifecycle. Typically our water management systems including construction, operations and closure phases are designed to:

And, when we finish mining, post-closure water management strategies are put in place to ensure there are no problems with water runoff into the environment from the mine site.

Best PraCtiCe water treatment teChnology At our Collinsville operation we are implementing a water management strategy to eliminate our reliance on regional raw surface water; maintain safe stored water inventories in on-site pits during aboveaverage wet periods; and establish a selfsufficient water supply during the drier climatic periods. At the centre of this strategy is a large water treatment plant that filters out salts and metals. The water produced by the plant can be used to substitute a significant proportion of on site raw water used by our coal wash plant. Other proposed beneficial uses of the water treatment technology being applied across a number of our operations entails the potential for on-site and off-site irrigation schemes (including supporting local pastoralists with existing irrigation schemes); replacing drinking water supplies for local townships; and recharging raw water pipelines that currently deliver raw water to sites. Our Ravensworth Underground Mine in the NSW Hunter Valley is connected to a water network that links it to our other surrounding mining operations. This pipeline system enables the operations to share recycled mine water, rather than each operation relying on its own fresh water allocation, storage systems and piecemeal arrangements with neighbouring operations.

minimise dirty (contact) water generation maximise fresh (non-contact) water diversion provide a low-risk water supply for mining operations minimise the creation of acid rock drainage minimise the off-site discharge of sediment provide a high level of certainty in the containment of dirty water, including the tailings storage system ensure any water that is discharged from site meets the adopted water-discharge quality and quantity standards for the site comply with satutory requirements.

We aim to have no serious environmental incidents relating to water at our operations, and to reduce fresh water consumption per tonne of material mined.

Above: Collecting water samples at a monitoring station, Collinsville Coal, Qld.

Above: Inspecting the construction of a water storage dam, Rolleston Mine, Qld.

Above: Taking water samples at Bowmans Creek, Glendell Coal Mine, NSW.

how will we aChieve these goals? Every month all our sites report on their water use and management. These reports keep track of their performance, water availability, water consumption and the quality of water on site. Some of our regular activities include:

water sampling segregating clean water away from active mining areas to reduce the volume of mine-affected water requiring subsequent storage and treatment sediment and erosion control measures minimising the demand for high-quality water (such as fresh water or potable water) in mining operations maximising recycling and water-sharing opportunities implementing surface and groundwater monitoring programs to measure potential impacts.

Left: Vehicle spray cannon in operation, Mangoola Coal, NSW.

Case study ravensworth underground mine

Xstrata Coals Ravensworth Underground Mine (RUM) has implemented innovative solutions to the tough challenges it faced in using and managing water on site. The mines licence conditions meant it could not discharge water off site; it had limited storage capacity on site; and relied on water pumped from the Hunter River for the continuous operations of its coal preparation plant (CPP) and underground longwall mining machinery. And, while RUM held significant water licences to extract water from the river, this supply could be cut during periods of extended drought. To reduce reliance on the Hunter River, Xstrata Coal investigated alternatives to pump water to and from neighbouring Xstrata operations Glendell Coal Mine, Mt Owen Mine, Liddell Coal and Ravensworth Mine. The subsequent infrastructure installed to enable this has all but eliminated RUMs reliance on the Hunter River however, RUM still needed to deal with the challenges of having to retain all water on site. Moving and recycling water across a site can result in it becoming laden with sediment, making it unsuitable for use by underground longwall machinery, which in turn would cause production delays. This issue of sediment-laden water was further compounded through the recycling and reuse of tailings dam water that was returned to the main storage dam. The solution was to build a number of small, fully contained dams, into which water is now
Above: Reviewing the Ravensworth water network, Ravensworth Underground Mine.

pumped from the tailings dam and dosed with a coagulant to take out the suspended sediment. A significant amount of sediment is removed from the water during this process, enabling the water to be used across the operation. To further improve the quality of the underground feed water, a water treatment plant has been installed, which now renders the water suitable for recreational use under

the Australian and New Zealand Environment Conservation Council (ANZECC) Water Quality Guidelines. Occasionally Hunter River water is still imported for use on site. However this has been reduced by more than 50% over recent years and efforts continue to ensure this occurs less often.

Case study ulan Coal

Ulan Coal near Mudgee in New South Wales creates a significant water surplus, generating approximately 8.2 megalitres per day above what it needs. The excess water generated requires a significant effort to remove, and to monitor water usage and quality. Previously, surplus mine water was discharged in accordance with environmental licence conditions into the Goulburn River. However, studies undertaken by the mine showed that this was not a sustainable solution in view of the volume of water produced by the underground mine, as well as the variation in water quality. In response, we implemented a comprehensive, long-term water management strategy for the mine. Part of the water management plan involved developing a water treatment facility to enable water to be discharged off site without harming the environment. Prior to implementing the water management plan, we carried out a comprehensive consultation program with the local community, downstream water users and regulatory bodies, including the NSW Department of Environment and Heritage, the Department of Natural Resources, and mine management. The aim of the consultation process was to better understand community expectations as well as discuss the management of any impacts the discharged water from the mine may have on the downstream environment and its users.
Right: Ulan Creek, Ulan Coal, NSW. Cover: Monitoring water quality, Rolleston Mine, Qld.

Desalination technology was implemented to manage water quality. The desalination plant was installed taking into account the surrounding environment and watercourse of Ulan Creek. Extensive stabilisation works were undertaken on the sandstone rock bar at the discharge point within the creek to ensure the stability of the watercourse. The discharge of treated water to the river has had a positive impact on the ecosystems reliant on the river, particularly during drought conditions, where the Goulburn River and most other waterways in the area can be reduced to dry sandy beds with small water holes.

Discharged water from the Ulan mine has restored the rivers flow, and monitoring has shown increased biological and ecological activity within the receiving watercourse and adjacent areas. The controls used by Ulan Coals water management plan were acknowledged as industry best practice and the technology developed to support the water treatment process has generated significant interest from other mining operations. The project demonstrates how excess water can be responsibly used by mining operations to bring about environmental, community and business benefits.

ContaCt details:

Xstrata Coal Pty Ltd

Further inFormation:

Level 38, The Gateway Building 1 Macquarie Place Sydney 2000 GPO Box R1543, Royal Exchange Sydney 1225 Telephone 02 9253 6700 Facsimile 02 9241 6898 xstratacoal.com

If you want more information on water management, refer to the following website: NSW Minerals Council: www.nswmin.com.au/Media-Speeches-and-Info/Publications-and-Fact-Sheets/Fact-Sheets/default.aspx December 2011