DSD Mining Regulation

DSD Mining Regulation

HMCV Presentation - PEPR

11 April 2016

Andrew Querzoli

2Department of State Development

1. Regulatory Framework

2. Two Stage Mining Application Process

3. Mining Lease Application

4. The PEPR

5. Compliance

Contents of Presentation


South Australia’s Mining Regulatory Framework

DSD is responsible for administering South Australia’s mining legislation

and

is the lead agency for assessment, approval and regulation of mining



Mining regulatory approach based on key principles and features:

• Outcomes based (not prescriptive based)

• Fair and equitable

• Timely decisions

• Transparent

• Predictable

• Practical

• Flexible

• Efficient

• Inclusive



Regulatory Approach:

• A whole-of-mine-life approach

• Balanced assessment of the economic, social and environmental impacts

• Risk-based approach to determine what impacts must be managed

• Performance-based criteria focusing on outcomes rather than inputs

• Application of recognised industry and national standards

• Minimisation of liability for both government and the community

• Clear accountability for explorer/miner to achieve community & government expectations

• Efficient Collaboration between DSD and other government agencies to achieve

streamlined approvals, engaging their expertise and authority where required

• Ensuring compliance through best practice strategies, which may include enforcement

actions, that ensure explorers and miners consistently achieve environmental outcomes


Two Stage Mining Assessment Process

Two Stage Assessment Process

Mining

Lease

Application

made to

Minister

Public

Statutory

Consultati

on

DSD Assessment

of: 1)

Environmental

Impacts

2) Net Benefits

Minister

decides to

Approve or

Refuse

Mining

Lease

Approval of

Program for

Environment

Protection and

Rehabilitation

(PEPR)

Mining

Operations

can

commence

Stage 1 – Mining Lease - Complete Stage 2 - PEPR

Operations can commence subject to:

1) Other permits and licences

2) Access to Land

3) Payment of Bond (if required)

4) Native Vegetation Legislation


Rex’s proposed smaller scale start up project

http://www.minerals.statedevelopment.sa.gov.au/mining/mines_and_quarries/hillside_copper,_gold_and_iron_ore_project/frequently_asked_questions



Rex’s proposed smaller scale start up project

• DSD formally requested that Rex provide detailed information about the form of any

revised, staged project, and an assessment of the consistency and compliance of that

revised project with the original Mining Lease Proposal.

• The purpose of requesting this information is to inform an assessment by Government,

and determination of any process that would be necessary in order for Rex to

pursue the revised project.

• If the assessment by Government of Rex’s revised project concludes that the revisions

are not consistent and compliant with the Lease & original Proposal, then Rex may

either further revise the project and re-submit, or apply for new or additional tenements,

resulting in a new application process which will include statutory public consultation.

• If the assessment by Government concludes that Rex can demonstrate that the revised

project is consistent and compliant with the Lease and original Proposal, Rex must

then prepare a Program for Environment Protection and Rehabilitation (PEPR).




Stage 1 – Mining Lease Application

Mining Proposal must include:

• Economic, Social and Environmental Benefits

• Environmental Impact Assessment

• Results of community engagement

• Measures to manage impacts

• Proposed environmental & mine completion outcomes (level of impact)

• Draft criteria for measuring achievement of the outcomes

Key considerations in a Mining Proposal assessment:

• Does the evidence provided in the Mining Proposal demonstrate that:

- There is a reasonable prospect that a mineral resource can be “effectively and efficiently mined”?

- All potential environmental impacts have been identified?

- The proposed level of impact (outcome) is appropriate given the economic & social benefits?

- The proposed control strategies will achieve an appropriate level of impact?


Stage 2 – The PEPR

Operational approval

PEPR must include:

• Description of operations, mining and rehabilitation plans, C&M

• Environmental Outcomes (level of impact) including completion

• Measures for achieving the Environmental Outcomes

• Measurement Criteria (Op, C&M, Completion) and Monitoring Plans

• Leading Indicator criteria (where applicable)

• Results of Consultation

• Consideration of Lease conditions

• Operator Capability

Key considerations in a PEPR assessment:

• Does the evidence provided in the PEPR demonstrate the:- Effectiveness of control measures for ensuring no exceedance of the approved outcomes (level of impact)

- Effectiveness of criteria in measuring the approved outcomes (level of impact)?

- Operator capability to implement the measures and management plans?


PEPR Determinations

and Guidelines

1. MD005 and MG2b – Determination and Guideline for PEPR’s for Mining

Metallic and Industrial Minerals in accordance with Regulation 65(7) of the

Mining Regulations 2011.


PEPR Content – DSD Expectations

1. Description of the Environment

2. Description of Mining Operations

3. Consultation

4. Environmental Outcomes, strategies, criteria and monitoring

5. Operator capability

6. Lease and Licence Conditions

7. Exempt Land

8. Other Requirements and Approvals

1. Public Liability Insurance

2. Bonds

3. EPA

4. Other Acts


Description of the Environment

1. Description of the Environment

• A full description of the environment is not required in the PEPR as this has

already been provided in the Mining Proposal

• MD 005 – Section 2 – PEPR must “include any changes to the environment, or

updates to information about the environment, since the previous description of

the environment was provided in the Mining Proposal”

• Can be required by the lease, ie:

• Sixth Schedule Clause 18.1:

• The PEPR must include “baseline data to characterise the pre-mining

condition of all soils within the Land”


Description of mining operations

2. Description of mining operations

• Similar to information provided in Mining Proposal, but more detail is required

• Ore Reserves and Mineral Resources

• Production rate and products

• Description of open pit and/or underground mining

• Sequence of mining and rehabilitation

• Stockpiles

• Mine Dewatering

• Rehabilitation strategies and designs for the mine and stockpiles

• Care and Maintenance (C&M) strategies for the mine and stockpiles

• Crushing, Grinding, Processing and Product Transport

• Rehabilitation and C&M strategies and design for the processing plant




• Waste Rock and Tailings storage facilities

• Specifications, drawings, plans for the design, construction, operations

and completion of all waste rock and tailings facilities

• Rehabilitation and C&M strategies and designs for Waste Rock and Tailings

storage facilities

• Supporting Surface Infrastructure

• Accommodation and offices

• Fuel and Chemical storage

• Site security

• Stormwater, silt control and drainage

• Rehabilitation and C&M strategies and designs for Infrastructure




• Vegetation Clearance / Native Vegetation Management Plan / SEB

• Description of the mine site at completion

• The closure strategies for the site must be in a detailed form

• There is flexibility for closure strategies to change over time

• Closure outcomes must still be achieved, strategies can change

• Rehabilitation Liability Estimate

• Resource Inputs

• Workforce, Energy Sources, Water Sources


Consultation

3. Consultation

• DSD requires that mining companies consult with all stakeholders in the

development of a PEPR

• The results of consultation must be documented in the PEPR

• The PEPR must include the Community Engagement Plan (also required by the

Lease).

• The Lease requires that the CEP must be implemented and maintained


Environmental Outcomes, Strategies,

Criteria and Monitoring

4. Environmental Outcomes, strategies, criteria and monitoring

• Set out environmental outcomes – most are required by the Mining Lease

• Set out control and management strategies

• Uncertainty assessment

• Current and future works program to remove uncertainty

• Based on the future works program, propose the timing of PEPR reviews

• Measurement Criteria

• Leading Indicator Criteria

• Operator compliance monitoring program for Criteria and Reporting


Environmental Outcomes, Strategies,

Criteria and Monitoring

MG2B – Outcomes and Criteria Example Tables


Operator Capability

5. Operator Capability

PEPR must include the descriptions and details of capability in:

• Corporate operational policies

• Procedures and practices to achieve compliance

• Comprehensive risk management system

• Monitor, evaluate, audit and review compliance

• Reporting of non compliance

• Emergency Response Plan

• Communication plans for employees, contractors and visitors

• Communication plans for external parties

• Previous record in achieving compliance

• Resources allocated to a compliance system


Lease / Licence

6. Lease / Licence

• Where the lease or licence includes conditions or requirements that are not

environmental outcomes, a section of the PEPR must demonstrate that these

conditions have been addressed in the PEPR or how otherwise they have or will

be complied with.

• Eg:

• Rainwater tank testing

• The PEPR must include details about how this condition has been or will be

complied with.


Exempt Land

7. Exempt Land

• The PEPR should identify areas within mining tenements that are exempt land.

• Exempt Land can include:

• Cropping land

• Land within 400m of an occupied house

• Land within 150m of a bore, dam, industrial or agricultural building/shed

• The PEPR should detail the ‘waivers’ which are required to implement the full

extent of the mining operations detailed in the PEPR.

• The PEPR will not be approved if mining operations are proposed on

exempt land in the PEPR without a waiver in place.


Other Requirements and Approvals

8. Other Requirements and Approvals

• Public Liability Insurance – requirement of the Mining Act

• Bond – based on the maximum rehabilitation liability from the PEPR

• Native Vegetation Management Plan / PEPR – SEB payment

• EPA permits and licences, eg:

• Works approval for construction of plant and equipment

• EPA Licence for operations of plant and equipment

• The PEPR can be used as the supporting documentation for the EPA Works

approval and EPA Licence application

• DEWNR permits and licences, eg:

• Permits for accessing surface or ground water

• Work health and safety requirements


All new mining PEPRs are public

All Major mines have a dedicated DSD web page:

http://www.minerals.statedevelopment.sa.gov.au/mining/mines_and_quarries

A summary of PEPRs can be found on SARIG or DSD web page:

http://www.minerals.statedevelopment.sa.gov.au/mining/approved_peprs

https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/cat0/MSearch

http://www.minerals.statedevelopment.sa.gov.au/mining/mines_and_quarries

http://www.minerals.statedevelopment.sa.gov.au/mining/approved_peprs

https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/cat0/MSearch


Post PEPR Compliance and Monitoring

Compliance and Monitoring

• Company Annual Compliance Reporting to State (DSD/EPA) (Public)

• Site Inspections by State (DSD/EPA) – Quarterly for all major mines

• Incident investigations by State (DSD/EPA)

• Company Quarterly reporting and presentations to State DSD/EPA/SafeWork SA

Contact

www.statedevelopment.sa.gov.au

DSD Mining Regulation

Level 7, 101 Grenfell Street

Adelaide, South Australia 5000

GPO Box 320

Adelaide, South Australia 5001

Documents

DSD Mining Regulation