2012 Annual Report (2 April 2013) - Grange Resources

2012 ANNUAL REPORT
15
PAGE
ENVIRONMENTAL
Legislative Approval
Grange obtained environmental and
planning approval in 1997 and 1998
allowing it to operate under the Tasmanian
Land Use Planning and Approvals
Act 1993 (LUPA), the Tasmanian
Environmental Management and Pollution
Control Act 1994 (EMPCA), the Tasmanian
Goldamere Pty Ltd (Agreement) Act 1996
(Goldamere Act) and the Tasmanian
Mineral Resources Development Act
1995. This approval covers an expected
mine and processing life using open-cut
mining at Savage River, gangue removal
and concentrating at Savage River and
pelletising at Port Latta.
Goldamere Act
The Goldamere Act overrides all other
Tasmanian legislation with respect to
Grange’s operations. The Goldamere Act
limits Grange’s liability for remediation of
contamination, under Tasmanian law, to
damage caused by Grange’s operations,
and indemnifies Grange for certain
environmental liabilities arising from past
operations. Where pollution is caused or
might be caused by previous operations
and that pollution may be impacting
on Grange’s operations or discharges,
Grange is indemnified against that
pollution. Grange is required to operate to
Best Practice Environmental Management
(BPEM).
Planning Approvals
Grange obtained planning approval
subject to a series of environmental permit
conditions on 29 January 1997. Planning
approval was issued by the Waratah
Wynyard Council for Savage River and
by the Circular Head Council for Port
Latta. The approvals were conditional
on the provision of an Environmental
Management Plan (EMP) incorporating
a Rehabilitation Plan (ERP) prior to the
commencement of operations. Various
other studies were also required.
Environmental Management
Plans
The EMP incorporating the ERP and
study results were approved by the
(then) Department of Environment Parks,
Heritage and the Arts and operations
commenced in October 1997. The
latest revision of the approval documents
occurred on 6 October 2000 when
Environmental Protection Notices (EPN)
248/2 and 302/2 were issued to replace
the environmental permit conditions for
Savage River and Port Latta respectively.
Approvals are required from the
Department of Primary Industries, Parks,
Water and the Environment (DPIPWE) and
relevant Councils for major infrastructure
developments and operational expansions
and changes. These approvals are in
the form of approved EMP amendments
and reflect changing operational
circumstances, an increasing knowledge
base and include approvals designed to
extend operations, amend management
plans and provide for changes to waste
rock dumping plans and any proposed
treatment facilities.
An amendment to the EMP was approved
for an extension of mine and pelletising
operations in early 2007 to approve the
Mine Life Extension Plan.
EMP and ERP reviews were submitted
in December 2010 and the next revision
is expected in December 2013. The
revised EMPs reflect BPEM and current
mine planning and focus on closure
requirements and rehabilitation. The
development of significant new projects
such as a new pit will require additional
planning approval and at a minimum an
EMP amendment approval followed by
issuance of an EPN from the EPA.
Goldamere Agreement
The Goldamere Agreement (which forms
part of the Goldamere Act) provides
a framework for Grange to repay the
Tasmanian Government for the purchase
of the mine through remediation works.
Significant variations to the Goldamere
Agreement were signed on 4 October
2000 and 10 September 2002 following
extensive negotiations. The amended
Goldamere Agreement provides a
framework for Grange to co-manage the
Savage River Rehabilitation Project (SRRP)
and carry out contracted works in lieu of
paying the purchase price of the operation
to the Government. The agreement also
allows Grange to integrate its rehabilitation
obligations with those of the State under
the SRRP.
Savage River Rehabilitation
Project (“SRRP”)
Grange representatives meet with
representatives from DPIPWE on a
monthly basis to develop and implement
remediation works at Savage River.
Grange has contracted with the SRRP
for works including construction,
management and development of waste
rock dump covers, acid pipelines and
other remediation projects. The SRRP
objective is to capture and treat 65%
of the site’s copper load to remove the
possibility of an acutely toxic aquatic
environment. The scope of works to meet
this objective has been completed and
costed to feasibility level.
A strategic plan outlining the works
required to achieve the objective and
repay Grange’s purchase price debt
has been approved by the Tasmanian
Environment Protection Authority and
is being implemented by the SRRP
Committee. This plan was updated in
2012 to reflect the long term risks and
Grange’s latest mining plan.