Coal Dust Management Presentation - August 2012

Coal Dust Management – Mine to PortA Sustainable Future in Management ofDust Emission from Coal Terminalsin Hay Point QueenslandJohn Planner - Introspec Consulting

Challenges and OpportunitiesIron ore and coal industry sustainabilitySocial: Community relations, and workplacehealth and safetyEnvironmental: Impact of operations on air,water, land, community health, andcommunity life qualityEconomic: Profitability, increased exportvolumes which generate income of highimportance to the International economy

Black coal production (Mt)Australian black coal production350300250200150100500NSW QLD WA, SA and TAS

Australian coal and iron ore productionMtpaYear Coal Iron Ore2006/07 325 2892007/08 326 3242008/09 349 3532009/10 366 4232010/11 379 4482011/12 (Est) 412 470

Community environmental concernswith iron ore & coal dustHealth effects• Dust concentrations - fine particles• Compliance generally achieved• Roof flushing to rainwater tanksAmenity impacts• Short term visibility• Home surfaces – dust build up• Soiled washing• Peak events – main resident complaints

HAY POINT2012Dalrymple Bay CoalTerminal (DBCT)85MtpaHay Point CoalTerminal (HPCT)45MtpaClosest townships toTerminals;Louisa CreekHalf TideSalonika

Dalrymple Bay Coal TerminalExpansionStage Capacity Construction Construction CostMtpa Start Completion $ million1 15 1980 1983 2501A 22.5 1988 1990 42 26.5 1991 1995 1402A 28.5 1995 1996 43 33 Oct-96 Dec-98 1854 37.5 Jun-98 Oct-99 255 45.5 Apr-01 Feb-02 45*6 56 Apr-02 Jun-03 88*Short Gain 59 Jul-04 Aug-06 31.1*7x Phase 1 68 Sep-04 Mar-08 561.7*7x Phase 2/3 Step A 72 Oct-04 Dec-08 746*7X Phase 2/3 85 Jun-09* Excludes finance costs

HAY POINT1960Area undevelopedLouisa Creek5 housesHalf Tide35 houses

HAY POINT1972Louisa Creek50 housesHalf Tide 75 housesHPCT developed1969-1972

HAY POINT1976Louisa Creek65 housesHalf Tide 75 housesSalonika 9 housesHPCT expandedDBCT proposed

HAY POINTAir qualityforecast1976DBCT Stage 1 EISDust concentrationforecast forHPCT 20 Mtpa andDBCT 20.5 MtpaMax. forecast dustconcentrationeastern end LouisaCreek 200 ug/m3

HAY POINT1982Louisa Creek65 housesHalf Tide 75 housesSalonika 40 housesHPCT expandedDBCT Stage 1constructionby QueenslandGovernment (PortsCorporation Qld)

HAY POINT1991Louisa Creek87 housesHalf Tide 80 housesSalonika 96 housesHPCT expandedDBCT Stage 1operational

HAY POINT1995Louisa Creek 130housesHalf Tide 80 housesSalonika 96 housesHPCT expandedDBCT Stages 1 & 2operational

Hay Point community issues1985 – 1995• Louisa Creek residents raise concerns on coal dust• Issues covered in local media1996• Residents concerned about DBCT Stages 3 & 4expansion and HPCT expansion• Community action groups formed• Increased local media coverage

Hay Point community issuesLouisa Creek and Half Tide residents concerns• Coal stockpiles moving closer to residents• Exacerbated coal dust problems• Increased noise levels• DBCT environmental management questioned• Impact on marine environment and water quality• Anxiety over health issues with coal dust

Betty HobbsLouisa Creek resident’s view• 1977 – 2012 Resident in Louisa Creek• 1981 – Dust from DBCT construction site• “Minimal coal dust before 1983 - DBCT Stage 1”• Betty’s swimming pool “overnight turned from blue toblack”• When Qld. Govt. told about dust and noise Govt. said“Make a sacrifice for Qld.” Govt. Minister early 1980s• Helped others re-form Louisa Creek Progress Assn.• Betty currently receives monthly dust reports on behalf ofresidents and hears residents comments

LOUISA CREEK1996 - 2000Closest property tocoal stockpiles350mPCQ Voluntary buybackpropertyscheme in responseto residents dustcomplaints.PCQ acquired 99properties. 54properties remainedin private ownership

Louisa Creek resident’s view• Property buy-back scheme created divisions• Only eastern houses included initially• Disagreements between community groups• “No information provided on new stockpiles”• 1996 - People’s Action Group formed• Anxiety over health issues with coal dust• “Lack of DBCT environmental management”• “Fabric of the community shattered”

PCQ response to community action1998 - 1999• Mediation meeting – extended buy-back scheme• Consultation with Louisa Creek Progress Association• Revegetation and fire breaks• Complaints hotline established• Newsletters• Open Days• Monthly environmental monitoring reports throughProgress Association and Sarina Shire Council• DBCT Master Plan 2000

Dust emission at other coal terminals• High level of dust emission in early stages• Evolution of air quality regulations• Gradual improvement in dust management• Different distances to residential areas (eg. Abbot Point20km to nearest residence)• Hay Point was base for development of improved dustmanagement procedures 1999 - 2010

Coal dust – Newcastle NSWMayfield 400m from coal stockpiles end,900m from stockpile centre

Coal dust – Port Kembla NSWTerminal No. 2 Berth - 1978• 1.5 km to closest residence• Southerly winds a problemYear High 24 hr. avg. Dust depositionug/m3 g/m2/month1988 124 3.21989 337 3.81990 259 5.2“It will be necessary to ensure that rigorous dust controlmeasures are implemented” 1992 PKCT EIS

HAY POINT1999DBCT Stages 3 & 4OperationalDust depositionmonitoring sitesoperational since 1994

Hay Point coal terminalssustainability review - 1999Expanded throughput comes at a cost to industry• Protection of existing community amenity must be apriority• Consultation is essential – community meetings• Understanding resident’s health issues and dustimpact on lifestyleDust management – fresh approach required• A scientific understanding of dust emission sources• Detailed review of dust deposition data• Laboratory tests on each coal type• Wind tunnel tests to simulate operational conditions

DBCT expansion stages 6 and 7Air Quality Improvements nominated in EISA new approach to dust management• Comprehensive site dust management investigation• Identify areas of potential improvement• Action on major operational sources of dust emission• Dispersion modelling of air quality and dust deposition• Improved stockpile spray system• Test program to identify “dusty coals” and determinedust extinction moisture content for each coal type• Test program to investigate stockpile chemical veneer• On-line moisture monitoring at rail receival to measuremoisture level in each coal type• Reduction in existing dust emission by 5% in spite ofexpansion in port throughput• Community consultation

Transfer of DBCT ownership - 2001• Queensland Government raised funds by sale of longterm lease of DBCT• Ports Corporation Qld passed role as owner’s managerto private enterprise• CLNQ Pty Ltd assumes role of owner’s manager on 16September 2001 - role subsequently transferred toDBCT Management• Ongoing commitment to environmental improvementsand community consultation

HAY POINT2003DBCT Stages 5 & 6operational

DBCT Dust deposition 2000-2004

Hearing community concerns – coal dust indomestic rainwater tanksA response to resident questions at DBCT Expansion 7Xcommunity meetings• Samples of Hay Point rainwater tanks and town water• Study included trace elements from DBCT coal types• Interpreted coal and non-coal dust/average rainfallresults and trace element analysis, with respect torainwater quality and human health• All leaching test results were less than the AustralianDrinking Water Guidelines (NHMRC, 2004)• Indicated a minimal likelihood of coal dust in drinkingwater being an issue with respect to human health.

DBCT expansion stage 7XDust management strategy included;• Continuous in-loading and out-loading on-linemoisture analysers to maintain optimum coalmoisture content• Chemical surface veneer applied to stockpilesand site areas when indicated by BoM forecastof adverse weather conditions• Dust management action to minimise other peakdust emission events• Upgraded stockpile spray system• Targeted reduction in carry-back spillage• A range of additional plant improvements

DBCT Community dust complaints2005 - 2011Dust complaintsNo of days complaints receivedYearNo of complaints2005 122006 112007 72008 172009 82010 42011 1 2Total 61101071664255

Australian coal terminalsdust management ratingDBCT and HPCT (H & I) most successfulSuccess in Mitigating Fugitive DustNormalised Performance0.30.20.10-0.1-0.2-0.3-0.4A B C D E F G H ITerminal© 2007 CH

Coal dust deposition – Newcastle NSW

DBCT Dust deposition 2000-2004Louisa Creek

HAY POINT2012DBCT – Stage 7XExpansion completedand operational 85 MtpaHPCT 45 MtpaTotal 130 MtpaEffective coal dustmanagement proceduresachieve compliance andresident support

Current community view of Hay Pointcoal dust managementBetty Hobbs• “Coal dust is now quite minimal compared to previousyears”• “Monthly dust and noise reports are provided”• “Other residents can provide comments”• “DBCT Management informs us if a dusty coal is to bereceived, and will take action”• “Communication is important”

Hay Point air quality improvementAir quality forecast 1976HPCT and DBCT 40.5 MtpaMax. forecast dust concentration eastern end Louisa Creek200 ug/m3Air quality forecast 2010HPCT and DBCT 130 MtpaMax. forecast dust concentration eastern end Louisa Creek20 ug/m3

Acknowledgments• North Queensland Bulk Ports – Bob Brunner• DBCT Management – Greg Smith• DBCT Pty Ltd – Terminal operators• Katestone Environmental – Simon Welchman• Louisa Creek Resident – Betty Hobbs