ENVIRONMENTAL INCEPTION REPORT. Xstrata Frieda River Limited. Frieda River Project

ENVIRONMENTAL INCEPTION REPORT Xstrata Frieda River Limited Frieda River Project September 2009 © Coffey Natural Systems Pty Ltd September 2009 Pr...
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ENVIRONMENTAL INCEPTION REPORT

Xstrata Frieda River Limited

Frieda River Project September 2009

© Coffey Natural Systems Pty Ltd September 2009 Project director

Michael Jones

Project manager

Heath Doodie

Version:

Details:

Approved:

Date:

CR 128_12_v1

Draft for client review

M. Jones

5 June 2009

CR 128_12_v2

Draft for client review

M. Jones

7 July 2009

CR 128_12_v3

Draft for DEC comment

M. Jones

10 July 2009

CR 128_12_v4

Formal submission to DEC

M. Jones

28 September 2009

ENVIRONMENTAL INCEPTION REPORT Xstrata Frieda River Limited Frieda River Project

September 2009

Environmental Inception Report Frieda River Project

CONTENTS

1.

INTRODUCTION

1

1.1

Project Overview

1

1.2

This Report

4

2.

PURPOSE OF THE DEVELOPMENT

5

3.

VIABILITY OF THE PROJECT

7

4.

3.1

Proponent’s Credentials

7

3.2

Feasibility Investigations

7

3.3

Sustainable Development

8

DESCRIPTION OF THE PROPOSED DEVELOPMENT

11

4.1

General

11

4.2

Preliminary Project Description

11

5.

DEVELOPMENT TIMETABLE

13

6.

BIOPHYSICAL ENVIRONMENTAL ISSUES

15

7.

6.1

Biophysical Environment Setting

15

6.2

Issues

15

6.3

Proposed Studies

16

SOCIO-ECONOMIC ISSUES

25

7.1

Socio-economic Setting

25

7.2

Issues 7.2.1 7.2.2

25 26 27

7.3

Group A Impacts (Direct) Group B Impacts (Indirect)

Proposed Studies

27

8.

AVAILABILITY OF BASELINE INFORMATION AND DATA

35

9.

SITE SELECTION

37

10.

QUALIFICATION OF ENVIRONMENTAL CONSULTANTS

39

10.1

Lead Environmental Consultant

39

10.2

Specialist Subconsultants

40

11.

REFERENCES

43

12.

ACRONYMS

45

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Environmental Inception Report Frieda River Project

Figures 1.1

Project location

2

1.2

Mine infrastructure

3

5.1

Indicative project schedule

14

Tables 3.1

Current resource estimate

8

5.1

Project development timetable

13

6.1

Proposed environmental studies

17

7.1

Proposed socio-economic studies

29

10.1 Key personnel – Coffey Natural Systems

39

10.2 Specialist subconsultants

40

Appendices 1

Document Log – Environmental Baseline Reports

2

Document Log – Socio-economic Reports

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Environmental Inception Report Frieda River Project

1.

INTRODUCTION

1.1

Project Overview

Xstrata Frieda River Limited (XFRL), which is wholly owned by Xstrata plc and managed by Xstrata Copper, is proposing to develop the Frieda River Project, located in Sandaun Province close to the border with East Sepik Province in northern Papua New Guinea (PNG). The project lies some 250 km south of the northern coastline of mainland PNG and 75 km east of the border with the Indonesian province of West Papua (Figure 1.1), and 90 km northeast of the Ok Tedi mine. Copper mineralisation was discovered at Frieda River in the 1960s and comprises a cluster of copper-gold deposits. The most significant of these is the Horse-Ivaal-Trukai porphyry deposit and the high-grade epithermal Nena copper-gold deposit. These deposits collectively contain an estimated 5.6 Mt of copper and 325 t of gold. The Horse-Ivaal-Trukai porphyry deposit contains about 1 Bt of ore that will be mined at a rate of approximately 50 Mt/year over some 22 years. The Nena deposit contains about 50 Mt of ore that is likely to be mined at a rate of approximately 4 Mt/year over 12 years. The project is one of the world’s largest undeveloped copper and gold deposits. Exploration, metallurgical, engineering, commercial and environmental investigations have been conducted from time to time since discovery. The positive outlook for copper demand led to a resumption of studies in 2007 into the feasibility of a project to mine the Frieda River resource. The project’s main milestones through feasibility studies to development are: •

2007: scoping study.



2008: extended scoping study (ESS).



2009: pre-feasibility study (PFS) and environmental investigations and testwork.



2010: PFS completed; feasibility study investigations; environmental impact statement (EIS) submitted.



2011: feasibility study complete (August); project sanction by XFRL.



2012: potential detailed design and execution.



2016: potential first production.

Details of the project's design are yet to be finally determined and further engineering may change some aspects of the project description. The orebodies will be developed by open pits at Horse-Ivaal-Trukai and Nena and the following project outline (provided as general information) and Figure 1.2 reflect the current status (further detail is provided in Chapter 4).

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Environmental Inception Report Frieda River Project



Deposits: – Copper-gold deposits at Horse-Ivaal-Trukai and Nena.



Infrastructure: – Waste rock facilities. – Tailing storage facility (TSF). – Processing plant. – Roads, bridges, telecommunications, barging, accommodation, coastal and river ports. – Copper concentrate will be conveyed via pipeline. This would require associated pump stations, diesel-powered generators and a maintenance road. – Airport able to service international flights. – Power supply options including hydro-electric schemes (storage and run-of-river) and thermal generation (coal or gas) with associated transmission lines.



Copper and gold sales (export).

1.2

This Report

This environmental inception report (EIR) has been prepared under the provisions of the PNG Environment Act 2000 and in accordance with the PNG Department of Environment and Conservation (DEC) ‘Guideline for Preparation of Environmental Inception Report‘ (DEC, 2004). The project is a Level 3 activity under the Environment Act 2000 (Sub-category 17), for which an EIS is required. An EIR is required to be completed prior to carrying out a detailed environmental and social impact assessment (ESIA) and submitting an EIS. The objectives of the EIR process are to: • • • •

Identify the potential environmental and social issues associated with developing the project. Describe the scope of the EIS to address those issues. Initiate the formal process of stakeholder consultation. Enable DEC to review the proposed EIS scope and redress any shortcomings.

When DEC is satisfied that the proposed scope of the EIS lists all the relevant issues relating to the project’s impacts on the environment, approval of the EIR will be granted. The purpose and objectives of the project are described in Chapter 2 of this report. The social and biophysical impacts of existing mining projects in PNG provide a guide to the potential issues associated with the project, and these are set out in chapters 6 and 7 of this report. The other chapters address the remaining matters listed in DEC (2004).

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Environmental Inception Report Frieda River Project

2.

PURPOSE OF THE DEVELOPMENT

The proposed development will mine copper and associated gold at the Horse-Ivaal-Trukai and Nena copper-gold deposits, potentially generate its own power using a hydro-electric power scheme or thermal energy (gas or coal fired) and employ methods that are environmentally responsible, technologically achievable and economically viable. As such, the project is consistent with the Fourth National Goal and Directive Principle of the Constitution of PNG, which states: We declare our Fourth Goal to be for Papua New Guinea’s natural resources and environment to be conserved and used for the collective benefit of us all, and be replenished for the benefit of future generations.

Mining of these deposits presents a potential new source of wealth and growth for PNG. The project will: contribute to the capital wealth of the nation; improve the nation’s balance of trade; bring benefits to the national, provincial and local economies in the form of direct and indirect taxation, royalties and new business opportunities; provide new infrastructure to an undeveloped region; provide employment and training opportunities; and have a positive social effect within PNG. In particular, these benefits would be maintained for the nominal project life to at least 2038 (22-year project life) and possibly beyond should additional commercial mineral resources be discovered in the project area. The environmental and socio-economic considerations relevant to the project are governed by the Environment Act 2000, which provides for, and gives effect to, the national goals and principles of the constitution. From XFRL’s perspective, the commercial objective of the proposed development is the profitable operation of a mine and ore-processing facility. This will be undertaken in accordance with leading industry practice and in compliance with the conditions and standards prescribed by the PNG Government. It will also be undertaken in a manner that is consistent with XFRL’s principles and objectives for sustainable development, which involve developing the project in a climate of public participation and support, and in a manner that maximises the positive impacts and minimises the negative ones. In particular, XFRL will ensure that the specific needs of local communities are taken into account wherever possible during project planning and implementation, and that adverse effects on local communities, their resources and the environment are minimised.

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3.

VIABILITY OF THE PROJECT

3.1

Proponent’s Credentials

Xstrata plc (Xstrata) is a global diversified mining group, listed on the London and Zurich Stock exchanges, with its headquarters in Zug, Switzerland. Xstrata’s business activities encompass seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with additional exposures to gold, cobalt, lead and silver, recycling facilities and a suite of global technology products. Xstrata is currently the fifth largest diversified metals and mining company in the world, with operations and projects in 19 countries, a top 5 market position in each of its major commodities, and a workforce of approximately 56,000 people, including contractors. Xstrata Copper, which is one of the five global commodity business units within Xstrata, has its headquarters in Brisbane, Australia, with mining operations and projects that span seven countries and include: mines, mineral processing plants and port facilities in North Queensland, Australia; mining and processing operations and port facilities in Chile, Peru and Argentina in South America; and mining and processing plants in Canada. It also has a recycling business (Xstrata Recycling) with facilities in Canada, USA and Asia. Xstrata Copper is the fourth largest global copper producer, with an annual production of over 1,000,000 tonnes. The proponent for the Frieda River Project is Xstrata Frieda River Limited (XFRL) and is wholly owned by Xstrata. The Frieda River Project is held through an unincorporated joint venture that is managed by XFRL. The participants and their equity in the project are: • • •

XFRL (76.2%). Highlands Pacific Limited (16.9%). Overseas Mineral Resources Development (6.9%).

Under the terms of the joint venture agreement between these participants, the equity split may change as the project progesses.

3.2

Feasibility Investigations

Studies undertaken to date by XFRL include a Concept (Scoping) Study in 2007/2008, followed by an Extended Scoping Study (ESS) in 2008. The current project description (Chapter 4) is based largely on the findings of the ESS. The project progressed to pre-feasibility study (PFS) stage in early 2009 and that study includes a number of technical and related studies (including some that will support the EIS) such as: •

A continued drilling program to: collect geotechnical information for the deposit; further define the Horse-Ivaal-Trukai and Nena deposits, pit shell and production schedule; and obtain samples for metallurgical testwork.



Additional drilling to allow a geotechnical assessment of selected mine infrastructure locations.



Mine planning.

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Environmental Inception Report Frieda River Project



Infrastructure study (accommodation, water supply, access roads, hydro-power dam, airport and pipeline routes).



Metallurgical test work.



Tailing and waste rock management options.



Capital and operating cost estimates.



Assisting government officers determine landownership in the areas affected by the project.



Engaging with provincial governments to ensure adequate regional planning.



Socio-economic studies to: – Establish existing conditions. – Identify potential economic, educational, health, employment and social development opportunities. – Provide a basis for a socio-economic impact assessment. – Determine management priorities.



Environmental studies to: – – – –

Establish existing conditions. Investigate and optimise management of waste materials. Provide a basis for environmental impact assessment. Determine the conservation and resource protection priorities.

The viability of the project will reflect a combination of economic, engineering, environmental and social considerations that will be assessed in the feasibility study (FS), should the PFS be successfully completed and the required criteria met. The current resource estimate is shown in Table 3.1, although it should be noted that this will be further refined over the course of the PFS as more detailed information becomes available. Table 3.1

Current resource estimate*

Nena deposit

51 Mt @ 2.43% Cu, 0.57 g/t Au

Horse-Ivaal-Trukai deposit

840 Mt @ 0.53% Cu, 0.28 g/t Au

*Total resource (Indicated and Inferred; 0.3% Cu cut-off for Horse-Ivaal-Trukai and 0.5% Cu cut-off at Nena); refer to the Competent Person’s report on the Xstrata plc web page for details.

3.3

Sustainable Development

From a global perspective, Xstrata Copper is a signatory to the International Council on Mining and Metals’ Sustainable Development principles, and is committed to the highest standards of health, safety, environmental and community performance. Xstrata sets aside a minimum of 1% of profit before tax each year to fund Corporate Social Involvement (CSI) programs to support initiatives that contribute to the prosperity and sustainable development of the communities in which Xstrata operates. In 2007, Xstrata set aside US$102 million to support the communities that host its operations, employees and their families.

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Environmental Inception Report Frieda River Project

At a local level, XFRL recognises that a social licence to operate is fundamental to successful business operations. The company will therefore engage, employ and work with the local people and the local, provincial and national governments to maximise socio-economic benefits before, during and after project development. This will be reflected in programs and commitments described in the EIS and the Memorandum of Agreement, and the various plans and policies that will address issues such as community development, employment and training, procurement and supply, and education assistance. In particular, XFRL will help local communities build the required capacity to ensure that a positive and lasting legacy is created and sustained throughout the project and beyond mine closure.

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Environmental Inception Report Frieda River Project

4.

DESCRIPTION OF THE PROPOSED DEVELOPMENT

4.1

General

The project description given below is based on the results of the Extended Scoping Study (ESS) (SKM, 2009) and is intended as a guide only. The project description is likely to change through the PFS, FS and subsequent planning phases, although the major project components (and options until eliminated) are likely to remain fundamentally similar to those described below. Should they occur, significant changes will be communicated to DEC and the Mineral Resource Authority.

4.2

Preliminary Project Description

The estimated capital cost for the project is US$4.2 billion, with the main project features to include (see figures 1.1 and 1.2): •

Nominal ore production: – Horse-Ivaal-Trukai: approximately 1 Bt @ 0.5% Cu and 0.3 g/t Au. Production rate: 50 Mt/year. Nominal mine life: 22 years. – Nena: approximately 50 Mt @ 2.4% Cu and 0.6 g/t Au. Production rate: 4 Mt/year. Nominal mine life: 12 years.



Waste rock production at a nominal rate of 60 Mt/year.



Ore processing by conventional comminution and a two-line sulfide flotation plant to produce a copper/gold sales concentrate.



Road access to a site near Iniok on the Sepik River or near Aitape for importing site consumables.



260-km-long concentrate pipeline and an adjacent maintenance road to a sea port near Aitape with a dewatering and storage facility and power station.



Sea port near Aitape for export of concentrate via 50,000 dwt ships.



Airport (international-class) at a site near Kaugami.



Tailing thickened and sent by slurry pipeline to a permanent, low, engineered TSF in a shallow valley bordering the floodplain to the west of the Frieda River (see Figure 1.2).



Hydro-electric power generation from a dam on the Frieda River and a run-of-river scheme on the Usage River.



Single persons’ accommodation built at site with an operations workforce flown in from regional centres at Ambunti, Telefomin and Aitape.

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Environmental Inception Report Frieda River Project

Construction will be serviced by a road from a barge terminal on the Sepik River near Iniok. A number of options are currently under investigation for the following facilities: •

Power supply: gas-powered generation in Western Province or coal-powered generation at Aitape as alternatives to hydro-power.



Waste rock dumps: in the Ok Binai valley for the Horse-Ivaal-Trukai waste rock, adjacent to the Nena pit for the Nena waste rock, or in the hydro-electric reservoir.



Tailing storage: – Tailing thickened and sent by slurry pipeline to a permanent, low, engineered TSF at an alternative site to the west of the May River at Hotmin (see Figure 1.2). – In the hydro-electric reservoir or co-disposal with the waste rock in the Ok Binai valley.

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Environmental Inception Report Frieda River Project

5.

DEVELOPMENT TIMETABLE

The PFS for the project has commenced and an indicative timetable for the development of the project is outlined in Table 5.1 and shown in Figure 5.1. Table 5.1

Project development timetable

Timing

Milestone

2007

Scoping Study

2008

Extended Scoping Study

2009

Pre-feasibility Study (completed by August 2010)

2010

Submit EIS

2011

Feasibility Study (completed by January 2012)

2012

Early works (roads and dam construction)

2012

Detailed design and execution

2013

Concentrate facility construction

2014

Commence mine development

2016

First production of copper concentrate

It is anticipated that pre-stripping will commence in 2012. A lengthy construction period will be required if hydro-electric power generation via the storage reservoir on the Frieda River is chosen as the preferred option.

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Environmental Inception Report Frieda River Project

6.

BIOPHYSICAL ENVIRONMENTAL ISSUES

This section outlines the biophysical environmental setting and sensitivities of the proposed project area and provides perspective to the proposed investigations, which are also described herein.

6.1

Biophysical Environment Setting

The components of the Frieda River Project, including the proposed mine site and process plant, infrastructure corridors, concentrate dewatering and storage facilities, and port facility near Aitape, cover a diverse range of geographical areas. The Frieda River Project is situated within the Sepik River catchment. The proposed mine site is located in mountainous terrain on the northern slopes of the Thurnwald Range. The deposits (Horse-Ivaal-Trukai and Nena) drain into the Nena River, a tributary of the Frieda River, which flows north to join the Sepik River (see figures 1.1 and 1.2). Altitudes vary from approximately 50 m at Frieda Strip (airstrip) to approximately 1,700 m some 5 km south of Nena. The area is seismically active, with corresponding implications for project infrastructure and, importantly, mine waste retention structures. Climatically, the area is classified as wet tropical and recorded mean monthly temperatures vary between 21.5ºC and 23.1ºC (NSR, 1999). Mean annual rainfall at the proposed mine site is in excess of 8 m compared to an estimated mean annual evaporation of 1 to 1.2 m (NSR, 1999). Drainage is controlled by steep, rapidly-flowing mountain streams flanked by dense tropical rainforest. Watercourses demonstrate a rapid response to rainfall given the limited storage capacity of the catchments. The Frieda River Project area is covered almost entirely by tropical rainforest classified as ‘medium crowned lowland hill forest’. There has been very little disturbance to the vegetation in the surrounding area, either by exploration activities or by local people clearing land for gardens. In the Nena catchment, the height of the dominant canopy has been estimated to be in excess of 30 m. Kauri (Agathis labillardieri) is the dominant species overall (although not in the immediate vicinity of the project area). The project area is known to contain a high diversity of terrestrial fauna, in particular mammals and frogs, in comparison with other remote areas of the PNG Highlands. Both flora and fauna tend to have affinities with western New Guinea and the abundance of species that are rare elsewhere is expected to be high. By comparison, aquatic fauna is lower in abundance and diversity than the Fly River and other southern PNG rivers (NSR, 1999).

6.2

Issues

The proposed development of the Frieda River Project raises the following key environmental issues: •

The effects of increased solids loading on the rivers draining the project area and their subsequent transport and deposition.

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Environmental Inception Report Frieda River Project



The effects of runoff from areas disturbed by the project on downstream water quality, water use, riparian and aquatic habitats and biota, and subsistence and commercial fisheries.



Behaviour of the hydro-electric scheme reservoir and its capacity to overturn during specific climatic conditions.



The effects of attenuating water flows and the maintenance of environmental flows in the Frieda River downstream of the hydro-electric scheme reservoir.



Acid rock drainage (ARD) potential and its management during operations and following mine closure.



Surface storage/disposal of waste rock, especially the management of soft (incompetent) rock.



Tailing management (TSF): – Structural integrity and geochemical stability of the TSF. – Water management within the TSF. – Management of excess water released from the TSF under all likely conditions.



Terrestrial, aquatic and nearshore marine biodiversity issues (with particular focus on terrestrial and aquatic biodiversity due to the project’s environmental setting, as described in Section 6.1).



Flood frequency (and/or impacts on small-scale, alluvial mining activity if such activities occur close to, or downstream of, the project area).



Rehabilitation of areas disturbed by the project and decommissioning of project facilities and infrastructure.

Second order issues are those that, while requiring investigation and management to meet standards and appropriate mine operating practice, are of secondary concern relative to the main risks discussed above (unless additional investigation indicates otherwise). These include issues such as emissions to air (including CO2 and other greenhouse gases), noise, vibration, airblast, non-mine waste (including sewage and sanitary landfill wastes), water extraction, land contamination, archaeology, progressive rehabilitation, and monitoring and reporting.

6.3

Proposed Studies

The proposed environmental studies listed in Table 6.1 will build on the information already collected in previous and ongoing environmental studies and monitoring campaigns. Upon completion of the investigations, formulation of management and mitigation measures and assessment of the project’s residual impact will be carried out and reported in the EIS. In addition to the following studies, the EIS will outline: • •

A Disaster and Emergency Management Plan. A Tailing Spill Contingency Plan.

The detailed plans will be developed and submitted to the PNG Government prior to commencement of operations. All project stakeholders will be consulted during the preparation of the EIS and additional issues raised during this process will be addressed as required in the EIS. 16

Mine waste geochemistry

Surface water quality

• Characterise stream flow in the project area, including the catchments of the proposed hydro-electric reservoir, and downstream.

Hydrology (surface and groundwater) and meteorology

• Develop a simple site water quality model (concentrations and loads) to predict the quality and quantity of residual runoff, leachates and discharged waters from the designed pits, waste dumps, stockpiles and TSF during construction, operations and post closure. • In association with the mine planning team, design effective and affordable measures to control ARD and achieve acceptable water quality downstream from the mine, waste dump, ore stockpiles and the TSF.

• Assess the suitability of waste materials to be used as an acid neutralising resource and a substrate for revegetation.

• Assist in designing ARD control measures.

17

• Evaluate the long-term ARD implications for closure planning and make specific recommendations for minimisation of ARD risk in the long term.

• Implement a sampling and analysis program to characterise the ARD potential of the site, including lag time estimates and long-term behaviour of problematic material.

• Analyse water and bed sediment samples for metals and physical and chemical parameters.

• Provide a baseline against which future conditions can be compared.

• Characterise all mine materials with potential for causing ARD or problematic water quality.

• Obtain bed sediment samples at selected sites.

• Conduct water sampling at regular intervals for surface water bodies in the project area, with regular sampling capturing both high (wet season) and low flow (dry season) events, and including on-going opportunistic high flow events.

• Assess the likely changes to local groundwater hydrology and quality as a result of project development.

• Describe the existing groundwater hydrology in the project area.

• Re-establish water level recorders with rainfall measurement at selected sites.

• Collect total suspended solids (TSS) grab samples at all gauging stations, including depth integrated TSS samples at each of the three Sepik River gauging stations.

• Determine river flow statistics.

• Continue the hydromet network data collection program (gauging stations, pluviographs and weather stations).

Tasks

• Establish the background range of suspended sediment conditions.

• Establish a baseline describing the range of background water and sediment quality conditions in surface waters.

• Obtain site-specific hydro-meteorological data.

• Provide information that will allow calculation of the downstream dilution of mine-derived contaminants that may enter the river system.

• Build a suitable hydrological database for use in planning the project’s water supply and the mine’s water management scheme.

• Characterise the groundwater hydrological regime in the project area.

Objectives

Proposed environmental studies

Technical Study

Table 6.1

Environmental Inception Report Frieda River Project

Sediment characterisation and transport

• Assess the likely limnological behaviour of the Frieda hydro-electric reservoir (with and without mine wastes) during filling, operations, post closure and, if appropriate, during overturning.

Hydro-electric reservoir limnology

• Develop mitigation measures and, once these are finalised, predict project-related changes in suspended and bed load sediment transport rates, and downstream implications.

• Evaluate the sediment transport implications of different project arrangement options that are under consideration.

• Predict the water quality within the Frieda hydro-electric reservoir (with and without mine wastes) and downstream in the Frieda River during filling, operations, post closure and, if appropriate, during overturning.

Objectives

Proposed environmental studies (cont’d)

Technical Study

Table 6.1 Tasks

18

• Assess the likely changes to bed levels, stream morphology, flooding, over-bank sedimentation and sediment effects on off-river water bodies along the lower Frieda River and along the Sepik River below Frieda during construction, operations and post closure.

• Estimate the changes in suspended load and bed load generated from project components (e.g., pit voids and waste rock dumps) at key locations downstream of the hydro-electric reservoir, and how this will vary with time according to project timelines.

• Identify project-wide sources of fugitive sediment generation, and work with the design teams to produce feasible and affordable measures to mitigate fugitive sediment generation.

• Construct a sediment transport model.

• Estimate existing suspended and bed load sediment transport rates at key locations.

• Repeat the water quality predictions and outline the likely benefit to water quality within the reservoir and downstream in the Frieda River.

• Propose feasible and affordable recommendations to achieve improved water quality within the reservoir and downriver.

• Predict water quality within the reservoir and downstream in the Frieda River (including downstream water flows) during operations, after closure and also during overturning episodes, with and without mine wastes in the reservoir.

• Create a conceptual model of the likely limnological behaviour of the Frieda hydro-electric reservoir including stratification and mixing.

• Review in-country and international case studies of the limnology of mountain lakes/reservoirs in similar tropical, high rainfall settings.

Environmental Inception Report Frieda River Project

• Design a program to monitor effects on biodiversity during construction and operations.

19

• Assess the post-mitigation impacts of the project on biodiversity generally and on species of conservation significance or significance to the local community.

• Identify criteria for the establishment of biodiversity control sites and refuge areas where relevant.

• Provide advice on management and mitigation measures to reduce and/or mitigate project impacts.

• Provide a high-level assessment of the impacts on biodiversity of commercial forestry by characterising the commercial forestry potential of the project area and surrounds.

• Assess the potential for, and implications of, the introduction of new invasive species into the area.

• Calculate old-growth forest loss associated with the project.

• Determine whether the construction and operation of the project will affect habitats or species of conservation significance, or significance to the local community.

• Describe the flora (vascular), and fauna (mammals, reptiles, amphibians and birds) of conservation or local community significance (including cultural importance), particularly in areas to be directly affected by construction and operation of the mine and infrastructure corridor in the context of their general distribution and conservation significance; include vegetation maps and, where appropriate, selected invertebrates.

• Analyse the direct and indirect effects of the project and provide recommendations for mitigation.

• Assess the residual impact post-mitigation.

• Determine relevant laws, treaties, conventions and similar that will provide an assessment framework for the investigation (including the Equator Principles).

• Characterise the terrestrial biodiversity and habitat of the project area.

Terrestrial biodiversity and conservation

Tasks

Objectives

Proposed environmental studies (cont’d)

Technical Study

Table 6.1

Environmental Inception Report Frieda River Project

Nearshore marine impacts

• Characterise the aquatic fauna (including selected invertebrates), flora and habitats within the project area.

Aquatic fauna and flora biodiversity and conservation

• Determine whether the port site will adversely disturb nearshore marine fauna and flora populations, species richness and composition, or significantly affect the ability of the local community to exploit nearshore marine resources, after the implementation of mitigation measures.

• Characterise the nearshore marine fauna and flora close to the port site.

• Design a program to monitor effects on aquatic biodiversity during construction and operations.

• Determine whether the project will adversely disturb aquatic biodiversity, e.g., populations, species richness and composition, or significantly affect the ability of the local community to exploit aquatic resources, after the implementation of mitigation measures.

Objectives

Proposed environmental studies (cont’d)

Technical Study

Table 6.1 Tasks

20

• Assess the overall impacts on nearshore marine fauna and flora associated with project construction and operation after assuming implementation of mitigation measures.

• Identify measures to avoid, minimise, or mitigate adverse impacts upon nearshore marine fauna and flora and to manage residual impacts.

• Assess whether the project may significantly affect the ability of the local community to exploit nearshore marine and terrestrial resources.

• Collect fish and other fauna consumed by local communities and conduct metals analyses.

• Assess the sensitivity of nearshore marine fauna and flora to increased turbidity and assess potential impacts on nearshore marine fauna and flora associated with the proposed activities.

• Identify significant nearshore marine fauna and flora species, communities and habitat in the study area, and in particular the distribution of any species of conservation significance or significance to the local community (including cultural significance).

• Assess the overall impacts on aquatic fauna, flora and aquatic habitats associated with project construction and operation after assuming implementation of mitigation measures.

• Identify measures to avoid, minimise, or mitigate adverse impacts upon aquatic fauna and to manage residual impacts, including determination of minimum environmental flows to maintain environmental values downstream of the hydro-electric reservoir.

• Collect flesh and liver samples from aquatic biota (e.g., fish/fresh water crayfish) consumed by local communities and conduct metals analyses.

• Assess the sensitivity of aquatic fauna and flora to increased turbidity and sediment loads, changes to the natural flow regimes downstream of the hydro-electric reservoir and assess potential impacts on aquatic fauna and flora associated with the proposed activities.

• Identify significant aquatic fauna and flora species, communities and habitats in the study area, and in particular the distribution of any species of conservation significance or significance to the local community, using a sampling protocol that can be repeated in future sampling.

Environmental Inception Report Frieda River Project

• Determine the effects of the project with respect to air quality, noise, ground vibration and blast overpressure, both during construction and operations.

Air quality, noise and blasting

• Assist with project optimisation to comply with appropriate air quality, noise, ground vibration and blast overpressure constraints.

Objectives

Proposed environmental studies (cont’d)

Technical Study

Table 6.1 Tasks

21

• Outline a monitoring and reporting program to enable sound air quality management and ensure public accountability.

• Identify and describe mitigation and management measures for reducing/controlling air quality impacts.

• Undertake a greenhouse gas assessment to determine the implications for greenhouse gas emissions associated with the project and the potential requirement for carbon offsets within the context of leading practice and PNG legislation.

• Use an air quality model with local meteorological data and estimated emissions to determine air quality conditions and assess impacts.

• Identify sources of dust and other air emissions (including those associated with project infrastructure and transportation).

• Develop appropriate air quality targets.

• Establish existing meteorological conditions by reference to existing data sets, supplemented by data from the on site monitoring program.

Air Quality

Environmental Inception Report Frieda River Project

Air quality, noise and blasting (cont’d)

Objectives

Proposed environmental studies (cont’d)

Technical Study

Table 6.1 Tasks

22

• Outline an appropriate monitoring and reporting program based on the impact assessment.

• Identify and describe mitigation and management measures for reducing/controlling vibration and blast overpressure impacts, taking into account the remote location of the project.

• Develop appropriate environmental goals for ground-vibration and blast overpressure in the context of relevant standards and guidelines.

• Use a vibration and blast overpressure model to predict ground-vibration and overpressure levels, and assess impacts in relation to effects on nearest residences and other sensitive receptors.

• Describe the likely blasting regime for the project.

Blasting

• Outline an appropriate monitoring and reporting program based on the impact assessment.

• Identify and describe mitigation and management measures for reducing/controlling noise impacts.

• Use a noise prediction model to estimate noise levels at representative receptors, taking into account the effects of terrain, vegetation and worst case meteorological conditions, and assess impacts.

• Identify significant noise sources and their mode of operations (including those associated with blasting, project infrastructure and transportation).

• Develop appropriate environmental noise level goals.

• Establish existing background noise levels for the study area, nearest residences and other sensitive receptors.

Noise

Environmental Inception Report Frieda River Project

• Propose a closure goal for the mine area and other project facilities.

Conceptual closure plan

• Determine objectives for the end-of-mine layout, land form, structures and materials required to meet the mine closure goal.

• Determine the likely downstream water quality impacts from discharges from the final pit voids.

• For at-risk areas, describe the process for future management identification and mapping management of acid sulfate soils materials, and any required rehabilitation.

• Characterise the nature and extent of the construction disturbance and the associated acid sulfate soils risk.

Final pit void

Acid sulfate soils

Objectives

Proposed environmental studies (cont’d)

Technical Study

Table 6.1 Tasks

23

• Provide the basis for the ongoing review of closure concepts and closure costs provisioning.

• Identify the completion criteria for closure that are specified in the relevant legal documents, policies and guidelines.

• Ensure that the conceptual mine closure plan is consistent with the Equator Principles and applicable PNG requirements and practice.

• Based on the current mine plan, prepare a conceptual closure plan that identifies potential issues and impacts for mine closure (early and whole-of-mine-life) and provides indicative closure costs.

• Assess the implications for downstream water quality and propose management measures to ameliorate any impacts.

• Provide an assessment of the water quality of the final pit voids and predict the volume and quality of runoff from the final pit voids.

• Provide an assessment of the pit inflow volumes from surface runoff and groundwater seepage.

• Characterise pit void catchments, including run off and seepage sources, and inflow quality.

• Identify potential sources of material to be used in any proposed management techniques.

• Provide an assessment of the likelihood of impacts related to acid sulfate soils and propose management techniques to ameliorate any impacts.

• Map areas of acid sulfate soils potential.

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7.

SOCIO-ECONOMIC ISSUES

This section outlines the socio-economic setting and sensitivities of the proposed project area and provides perspective to the proposed investigations, which are described herein.

7.1

Socio-economic Setting

People from a broad range of cultures, mostly living in very low population densities, occupy the proposed Frieda River Project area. The people in the proposed mine area practise subsistence agriculture with some panning for gold. People living in the more elevated land to the south grow taro as the subsistence staple whereas the people on the lowlands to the north of the project area subsist principally on sago and fish. There is no permanent settlement along the Nena River downstream of the deposits. The first village downstream of the mine area (excluding the settlement at Frieda Strip) is Paupe on the Frieda River about 20 km below the Frieda–Nena river confluence (see Figure 1.1). There are a number of isolated settlements further down the Frieda River towards the Sepik River. The total number of people living on the Frieda River below the Nena confluence is estimated to be 300. In contrast, the May River below the Usage is more populated. While there is no permanent settlement on the Usage River, there are some 2,000 people further downstream along the lower May River. Approximately 200,000 people live in the Sepik Basin downstream of the Frieda River. Approximately 600 people live in the villages of Ok Esai and Blak Wara (Wabia) in a wide, flat valley of the Niar River near the project area (see Figure 1.2). Should hydro-electric power generation be the preferred option for the project, these villages and the alluvial gold deposits that are worked by the villagers will be inundated by the reservoir created by the hydro-electric scheme dam wall, in which case they will require relocation. The village of M14 upstream of the Nena deposit (see Figure 1.2) will not be directly affected by the project. Outside the immediate project area, ancillary infrastructure corridors (road, tailing pipeline and concentrate pipeline) will be required from the mine site. A sea port is planned to be constructed at the coast near Aitape, over 250 km north of the project area, from where concentrate will be exported by ship. Aitape has a population of approximately 8,000 and lies midway between Vanimo and Wewak, the respective capitals of Sandaun and East Sepik provinces.

7.2

Issues

It is a requirement of DEC (2004) to differentiate socio-economic impacts into two distinct groups (Group A and Group B) to make clear which impacts will occur as either a direct or indirect result of the project. As described in DEC (2004): Group (A) impacts are those that can be identified and addressed by the DEC approval process. They arise directly from adverse impacts upon the biophysical environment as caused by the development.

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Environmental Inception Report Frieda River Project

Group (B) impacts are secondary socio-economic effects that are reasonably expected to manifest themselves and are normally best handled by the responsible National, Provincial or Local Level Government agencies.

The main potential socio-economic issues and opportunities that have been identified for the Frieda River Project are outlined below.

7.2.1

Group A Impacts (Direct)

Group A impacts include: •

Loss of land due to the establishment of project components and consequent impacts on subsistence living due to loss of resources such as gardens and hunting and gathering areas.



Relocation of two villages, Ok Esai and Blak Wara (Wabia), as a result of inundation by the creation of the hydro-electric scheme reservoir and associated issues such as resource availability, impacts on cultural heritage areas and values, and compensation.



Changes to the hydrological regime within the catchment of the mine area and the Frieda River downstream of the hydro-electric scheme dam and consequent impacts on relevant environmental values associated with the river, such as fishing and use of riverine resources.



Amenity impacts (air quality, noise and visual) as previously described in Chapter 6 and associated consequences in terms of the quality of life for affected people.



In-migration and its associated potential impacts on social cohesion, safety and security, health, land use, services, infrastructure and accommodation. This may also result in increased demand for local food products and timber, as well as increased local incomes through the expansion of cultivation of gardens for produce, fishing activity and small-scale logging, with consequent changes in the consumption patterns of local villagers and associated impacts such as increased generation of domestic wastes.



Effects on archaeological or cultural sites and practices.



Landowner issues: – Workforce employment and training policies. – Local business development (and examples are given above in relation to in-migration).



Increased direct employment opportunities and increased family cash incomes, and other benefit streams to local populations such as royalties and community development programs.



New business opportunities for the nearby regional centres of Aitape and Ambunti (see Figure 1.2) and Telefomin (as discussed above).



Impacts on social and physical infrastructure (including infrastructure at the nearby regional centres) and the capacity for existing infrastructure to support development associated with new business opportunities.



Effects on the general quality of life of local villagers and those living downstream from the project, with particular focus on their livelihoods, subsistence resources, income derivation, land connection and use, and local culture and customs.

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Environmental Inception Report Frieda River Project

7.2.2

Group B Impacts (Indirect)

Group B impacts include: •

Ownership of affected land and the need to address leasing, benefits and compensation agreements and areas of cultural significance.



Ongoing generation of human (as well as financial) capital, which will underpin further economic and social development in PNG.



Continuity within the PNG mining sector and, with it, the maintenance of expertise, on which PNG’s future mining industry depends.



Increased employment (direct and indirect), with the associated increased potential for migration and related issues such as law and order, and communicable diseases.



Over-reliance on finite mine-related benefits such as direct and indirect employment resulting in future inability to subsist using traditional practices.



Economic multipliers associated with the project, as well as backward and forward economic linkages within PNG’s economic sectors that drive local, provincial and national economic growth.



Pressure on Local, Provincial and National Government capacity to plan for and implement social development.



Post-closure (early or planned) maintenance of infrastructure and revenue streams.



Improvements in the nation’s balance of trade, infrastructure development, and commercial, employment and educational opportunities.



Monetary benefits such as taxes, royalties, fees and compensation payments.

7.3

Proposed Studies

Specialist studies will be undertaken to provide a comprehensive profile of the project area in relation to the existing human environment, infrastructure and economy. The study area is defined as including the following project aspects: • • • •

The mine area and associated infrastructure. The road and pipeline routes. The port areas (coastal, river and airport). Regional centres.

The socio-economic studies will comprise: • •

Characterisation studies. Impact assessment.

The characterisation component will describe the existing human, social and economic environment. The impact assessment will detail actual and perceived impacts of the project and recommend mitigation strategies for potential negative impacts and strategies to maximise potential social benefits arising from the project.

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Environmental Inception Report Frieda River Project

The approach to undertaking the socio-economic studies will be consistent with applicable PNG requirements and practice and, where relevant, the Equator Principles. The steps in undertaking the socio-economic studies are as follows: • • • •

Characterisation. Stakeholder engagement. Specialist (field) studies. Impact assessment (including consideration of management and mitigation measures).

Table 7.1 lists the objectives and tasks for the socio-economic studies that will support the EIS and address the issues presented above (primarily in Section 7.2.1).

28

Land connection and use

Economy and governance

Demography

29

This assessment may also contribute to land negotiations and inform impact mitigation, compensation and community development strategies, in addition to options for the potential relocation of housing and settlements.

• Accurately understand land ownership and use, and connection to land in the project area to identify potential project impacts and sensitivities in regards to land ownership and use, and to assist with the siting of project facilities and land access arrangements.

• Build an accurate understanding of the local economies and local governance structures and their respective capabilities.

• Characterise the economic and governance matters relevant to the project area and surrounds.

• Assist in the identification of potential project impacts that will inform mitigation and community development strategies.

• Build an accurate understanding of the human populations in the project area.

• Characterise the demographics of the project area and surrounds.

Objectives

Proposed socio-economic studies

Technical Study

Table 7.1

Environmental Inception Report Frieda River Project

Tasks

• Identify potential options for resettlement of affected people and communities, considering quality of resettlement sites and development needs.

• Provide data to enable the preparation of a map of land use and resource use in the project area (including areal estimates).

• Describe connections to land in the project area and explain the nature of those connections as they relate to the project.

• Describe the present pattern of land use in the project area and explain who is entitled to use either land or resources in various parts of the project area, linking these to the ethnic origins of the local villagers.

• Determine customary land ownership in the project area.

• Describe the local governance structure and capacity for infrastructure planning and implementation, and wealth distribution.

• Identify and describe relevant historical and current influences on the project area and region.

– Standards of living of potentially affected populations.

– Industry diversity.

– Livelihoods and income derivation.

– Employment.

• Describe the local economy in the areas likely to be affected by the project within the context of the two provinces and PNG as a whole, with particular reference to:

• Determine the range and average household size (area and number of persons) and relate this to ethnic origin.

• Determine the age structure, sex ratio and any other relevant demographic characteristics.

• Determine the geographic and ethnic origin of local villagers and their present residential address.

• Accurately quantify the adequacy of the existing physical (e.g., power, water, transport) and social (e.g., hospitals, schools, clinics) infrastructure to meet the demands of the project.

Infrastructure (physical and social)

30

• Identify the priority infrastructure development required to support the project and its potential social impacts and opportunities.

• Assist in the identification of potential project impacts that will inform mitigation and community development strategies.

• Predict the potential population influx as a result of the project.

• Characterise water use by potentially affected people and communities.

Water use

Objectives

Proposed socio-economic studies (cont’d)

Technical Study

Table 7.1

Environmental Inception Report Frieda River Project

– Ports.

– Housing and accommodation.

– Telecommunications.

– Energy sources and use.

– Solid waste management.

– Sanitation and sewerage.

– Constructed drainage.

– Transport (road network, capacity and use).

• Describe the existing physical infrastructure:

• Comment on the relative importance of aquatic fauna to the local community.

• Describe other water uses, e.g., transport, laundry, cultural significance.

• Describe subsistence and commercial (if any) fishing activity.

• Define and map stretches of rivers and streams that are specifically exploited as freshwater resources.

– Seasonal changes to location, type and frequency of water source.

– Frequency of water use at each water source.

– Type of use at each water source.

• Characterise water use in terms of:

• Identify and map the nature and location of all water sources used by the local community, based on interviews and site inspections.

Tasks

Health

Infrastructure (physical and social) (cont’d)

31

• Assist in the identification of potential project impacts that will inform mitigation and community development strategies.

• Characterise the health status of the population in the project area and surrounds.

Objectives

Proposed socio-economic studies (cont’d)

Technical Study

Table 7.1

Environmental Inception Report Frieda River Project

– Rates of infection and immunisation program.

– Current disease risks.

– Nutrition status.

– Age standardised mortality rates.

– Infant mortality rates.

– Life expectancy at birth.

• Describe the existing health status of the population in the study area by considering key health indicators that include:

• Identify any physical infrastructure that is available to support the development of the mine and the potential population increases.

• Identify inadequacies in social infrastructure to support mine development and operations, and potential population increases.

– Law and order.

– Government services.

– Emergency services.

– Health care facilities (hospitals, dispensaries, clinics, HIV/AIDS screening).

– Community education services.

– Childhood education services.

• Describe the existing social infrastructure, including access to:

• Identify inadequacies in physical infrastructure to support mine development and operations, and potential population increases.

Tasks

1

1

• Assist in the identification of potential project impacts that will inform mitigation and community development strategies.

• Accurately identify and understand the amenities of the project area.

• Characterise the relevant amenities of the project area and surrounds.

• Identify natural or man-made amenities within the study area.

• Report on communities that have had minimal interaction with modern society.

• Collaborate with other surveys to identify rare biodiversity that may result in the development of rare human customs and activities.

• Identify ‘at risk’ cultures and customs.

• Provide the framework on which to base further studies to develop mitigating strategies and ongoing monitoring and measurement of cultural and customs indicators.

• Identify individual language groups and their community leadership structures.

• Identify sites of archaeological or cultural significance that could impose constraints on the location of project facilities or otherwise require specific management.

• Identify unique cultures in isolated communities that have had little contact with modern society.

• Assist in the identification of potential project impacts that will inform mitigation and community development strategies.

Tasks • Review existing information, consult with relevant authorities and examine the relevant literature to locate known sites of archaeological or cultural significance in the project area.

32

Amenity is defined in this instance as the natural or man-made characteristics of the local environment that are valued by residents.

Amenity

Culture and customs

• Characterise the relevant archaeology and cultural heritage of the project area and surrounds.

Archaeology and cultural heritage

• Accurately identify and understand areas of archaeological or cultural importance in the project area.

Objectives

Proposed socio-economic studies (cont’d)

Technical Study

Table 7.1

Environmental Inception Report Frieda River Project

▪ Identify potential social and cultural impacts, both positive and negative, and describe the nature and extent of each on project-affected populations (using the aforementioned specialist characterisation studies).

Impact assessment

33

• Assist the proponent, communities and other stakeholders to identify development goals to ensure that positive outcomes are maximised.

▪ Facilitate the expression of views, concerns and aspirations about the proposed mining activity by project-affected populations.

▪ Contribute to a better understanding of the proposed project activities by local populations, particularly those potentially affected by the project.

Objectives

Proposed socio-economic studies (cont’d)

Technical Study

Table 7.1

Environmental Inception Report Frieda River Project

• Recommend subsequent action planning for the mitigation and realisation of potential project impacts.

• Recommend strategies to maximise potential community benefit from the project.

▪ Investigate issues requiring to be addressed by the proponent and recommend management and mitigation strategies for those issues, and describe residual impacts.

• Seek stakeholders’ views concerning the potential impacts associated with the project and their aspirations and expectations resulting from any impacts.

• Identify the potential impacts (direct, indirect and cumulative) of the project.

Tasks

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8.

AVAILABILITY OF BASELINE INFORMATION AND DATA

The project has a long history, with copper mineralisation first discovered in the 1960s and potential commercial mineralisation identified at Frieda River in the early 1970s. The project area has been under intermittent, but intensive, investigations since that time. Baseline environmental and social investigations for the Frieda River Project began in 1979 via a 1 joint company (Frieda Copper Pty Ltd)/PNG Government task force . The scope of work included the Horse-Ivaal and Nena deposits. Various activities and investigations then continued intermittently through the 1980s and into the 1990s. By mid-1993, the Nena deposit had become the focus of development activities and was subjected to renewed environmental investigations by Highlands Gold Limited, with extensive meteorological, hydrological and geochemical data collection programs being initiated. However, due to a number of factors, most elements of the programs went into abeyance at the end of 1996. Subsequent to a period of relative inactivity in the late 1990s/early 2000s, XFRL initiated a scoping study after acquiring the project in October 2006. In addition to defining an execution model for the project that could be taken into the PFS, a number of environmental and social programs were re-established, and these will be supplemented by the investigations described in chapters 6 and 7 that will support the EIS. The activities summarised above have generated a considerable number of reports that address both the environmental and social aspects of the project area, and these are listed in Appendix 1 and Appendix 2. While some of these remain relevant to the proposed project, others are now somewhat dated and the information contained therein will be superseded by that obtained as part of XFRL’s current and proposed program.

1

This was supervised by Natural Systems Research Pty Ltd, which subsequently became NSR Environmental Consultants, then Enesar Consulting and is presently Coffey Natural Systems.

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9.

SITE SELECTION

As with all resource development projects, the location of the project is constrained by the location of the deposits. The location of mine infrastructure is primarily governed by access to known commercially-viable copper deposits. The location of the process plant and infrastructure is constrained by local topography, engineering constraints, and environmental, social and economic considerations, and therefore reflects consideration of capital costs, operating costs and qualitative issues such as health, safety and security, landowners, proven technology, business risk and environmental and social setting. A project execution model that is presently being addressed in the PFS stage of the project is described in Chapter 4, although it should be noted that the locations of project components will be further refined during feasibility investigations. The preferred tailing and waste rock management options involve either the disposal of tailing in an on-land TSF and waste rock in a waste rock dump, or the subaqueous placement of tailing and waste rock within the dead storage of the hydro-electric scheme reservoir (with the latter being 1 possible only if hydro-power is the preferred power generation option for the project ). If an onland TSF is to be constructed, criteria for site selection will include local geological, geotechnical, hydrological and other environmental considerations to minimise the potential for adverse environmental impacts. Determination of the preferred tailing management option will involve the consideration of environmental, social, economic and engineering factors. The proposal for a coastal port in the Aitape region has been addressed by site investigations, discussions with PNG port authorities at Vanimo, Wewak, Madang and Port Moresby, and confirmation of bathymetric data from Admiralty Charts and wave data. These investigations have determined that no existing port in the section of coast nearest the mine is suitable for mine export purposes, and that a substantial upgrade, extension or new port would, in any case, be required to address the project’s needs.

1

As noted in Chapter 4, gas-powered generation in Western Province or coal-powered generation at Aitape are also under consideration.

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10.

QUALIFICATION OF ENVIRONMENTAL CONSULTANTS

Key environmental consultant personnel and proposed specialist sub consultants to direct, manage and prepare the EIS are presented below.

10.1

Lead Environmental Consultant

Coffey Natural Systems (formerly Enesar Consulting) is the lead environmental consultant for the Frieda River Project. The company was established in 1974 and is a wholly owned business unit of the Australian Stock Exchange-listed company Coffey International Limited. Coffey Natural Systems provides environmental and social consulting services to the resource development and infrastructure sectors, multilateral and private financiers and insurers, and governments. The firm has conducted more than 600 projects in 40 countries, including over 50 ESIAs for new projects. Coffey Natural Systems has completed environmental plans for the Kainantu, Misima, Porgera, Simberi and Ramu mining projects in PNG (as well as a number of oil and gas projects) and, more recently, completed the EIS for the Hidden Valley Project, the Solwara 1 Project and the PNG LNG Project. Additional information about Coffey Natural Systems can be found at www.coffey.com. Prior to 2004, Coffey Natural Systems (which at that time was Enesar Consulting) traded as NSR Environmental Consulting Pty Ltd. The founding directors and many of the principal investigators associated with the company’s work in PNG still work with the company. Key personnel from Coffey Natural Systems proposed for the Frieda River Project EIS are listed in Table 10.1. Table 10.1

Key personnel – Coffey Natural Systems

Name

Position

Alastair Sharp-Paul

Project Strategist

Anna Dennis

Assistant Project Manager

Clark Monahan

EIS writer

David Gwyther

EIS writer

Danielle Martin

EIS writer

Danielle Ryan

EIS writer

Heath Doodie

Project Manager

Lois Davidson

EIS writer

Marissa Haywood

EIS writer

Michael Jones

Project Director

Michael Sale

EIS writer

Stuart Jones

Project Strategist

Travis Wood

EIS writer

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Environmental Inception Report Frieda River Project

10.2

Specialist Subconsultants

Table 10.2 lists the subconsultants currently engaged to undertake selected supporting studies or provide specialist advice; while this list focuses on the studies that have already been commissioned by XFRL, specialists with similar levels of qualifications and experience will be engaged to undertake the remaining studies. Table 10.2

Specialist subconsultants

Subconsultant – Area of Study or Specialist Advice

Curricula Vitae

Rod Sandison, Sentinel Pty Ltd – Hydrology and meteorology monitoring network

Director of Sentinel Pty Ltd, Rod is the principal environmental consultant on whose expertise and experience the company was founded in 2000. Rod has worked both nationally and internationally in the hydrographic industry and has over 20 years industry experience and over 15 years international experience in the design and implementation of remote monitoring projects.

Dr Stuart Miller and Dr John Jeffery, Environmental Geochemistry International (EGi) Pty Ltd – Mine materials geochemistry

Director and founder of EGi in 1983, Stuart has over 30 years experience in mine waste geochemistry and management, and has worked on more than 250 mining projects in Australia and overseas, including PNG, Indonesia, Malaysia, Philippines, Thailand, Africa, Brazil, Argentina, Iran, Ireland, USA and Canada. John has 25 years experience as a geochemist and joined EGi in 1989. Prior to that, he worked for Bougainville Copper where he obtained direct site experience in prediction, modelling, monitoring and control of ARD. His expertise is in the environmental geochemical and hydro-geochemical aspects of mine waste disposal, site water quality modelling, pit water quality and management of sulfidic wastes.

Greg Hookey, Golder Associates – Sediment transport

Greg is Manager of Surface Water Services in Golder’s Perth office and has more than 30 years experience in the surface hydrology and water resource sectors. He has undertaken a number of sedimentrelated studies and has extensive experience in carrying out largescale hydrologic and hydraulic modelling for flood and sediment assessment and environmental impacts for mining-related projects.

Dr Jason Antenucci, Centre for Water Research (University of Western Australia) and Prof Barry Hart – Hydro dam limnology

Jason is the Deputy Director (Research) of the CWR, and has expertise in three main area: transport mechanisms in aquatic systems; modelling of aquatic systems; and the dynamics of organisms impacting human health in aquatic systems. He has published 27 refereed papers and is currently involved in UNESCO capacity building activities in East Africa, as well as working with UNESCO on quantifying the greenhouse gas emissions from hydropower. He has conducted research projects in Kenya, Mozambique, Seychelles, Colombia, Chile, Brazil, Israel, Germany, Italy, Canada, the USA, Singapore and Japan. Barry has an international reputation in the fields of water quality management, catchment, environmental risk assessment and environmental chemistry (heavy metal and nutrient biogeochemistry). He has published over 175 refereed papers and 12 books, is on the editorial board of 5 international journals, and has received several awards in the field of environmental chemistry. He has extensive experience in PNG, having worked on a number of mining projects commencing with impact studies for the Porgera Gold Mine in the 1980s.

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Environmental Inception Report Frieda River Project

Table 10.2

Specialist subconsultants (cont’d)

Subconsultant – Area of Study

Curricula Vitae

Francis Crome, Francis Crome Pty Ltd – Terrestrial biodiversity

Francis is an independent consultant and researcher with more than 25 years of experience in the areas of biodiversity assessment and management, tropical and wetland ecology, and strategic analysis. After finishing with CSIRO as a Principal Research Scientist, Francis established his own consultancy in 1994 and has subsequently completed projects in areas including Africa, the Americas, and the Asia-Pacific region, including PNG.

Prof Richard Jackson – Socioeconomic characterisation and impact assessment

Richard has 30 years of academic and consulting experience in the issues of the interface between resource projects and their host communities, with a specific focus on social risk assessment and impacts, community development, in-migration management, resettlement planning, land acquisition and compensation, and baseline surveys. Currently an independent consultant, his academic career includes roles as Professor of Geography at University of PNG and then James Cook University (while also consulting part-time). Consulting roles in PNG include tasks for the Department of Mining, as well as for the Ok Tedi, Hidden Valley, Misima, Lihir, Kainantu, Porgera and Tolukuma operations. Richard has also provided advice in relation to prospects and operations in a number of countries throughout the Asia Pacific and Africa.

Dr Keith Bentley – Community health

Keith has a broad-based knowledge in environmental health, specialising in toxicology of metals and health risk assessment for the mining and minerals industries. Most of his career has been working in environmental health issues in developing countries in south and southeast Asia and the western Pacific. The focus of this work has included the health aspects of pollution control, air and water quality, hazardous wastes management, environmental resource management, and chemical and pesticides safety. Projects in PNG in which Keith has provided specialist advice and/or undertaken health surveys include Ok Tedi, Porgera and Hidden Valley operations.

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11.

REFERENCES

DEC. 2004. Guideline for Preparation of Environmental Inception Report. January. DEC Publication: GL-Env/01/2004. NSR. 1999. Frieda River Project Environmental Review. Report prepared by NSR Environmental Consultants P/L for Cyprus Climax Metals Company. March. CR 128/9/v2. SKM. 2009. Infrastructure Extended Scoping Study. Report prepared by Sinclair Knight Mertz for Xstrata Frieda River Limited. January. Rev 0.

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12.

ACRONYMS

ARD

Acid rock drainage

DEC

Department of Environment and Conservation

DoM

Department of Mining

dwt

Deadweight tonnage

EIR

Environmental Inception Report

EIS

Environmental Impact Statement

EMP

Environmental Management Plan

EP

Environmental Permit

ESIA

Environmental and Social Impact Assessment

FS

Feasibility Study

ML

Megalitres

MW

Megawatts

MRA

Mineral Resources Authority

NFA

National Fisheries Authority

PFS

Pre-feasibility Study

PGK

Papua New Guinea Kina

PNG

Papua New Guinea

ppm

parts per million

SIA

Social Impact Assessment

TSF

Tailing storage facility

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Appendix 1 Document Log – Environmental Baseline Reports

HPL

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Cat

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

NSR Environmental Consultants

NSR Environmental Consultants

Highlands Gold Properties

ECOWISE Hydrology and Environmental Services

ECOWISE Hydrology and Environmental Services

NSR Environmental Consultants

NSR Environmental Consultants

EGI

ECOWISE Hydrology and Environmental Services

EM & M Environmental Consultants

EM & M Environmental Consultants

EM & M Environmental Consultants

EM & M Environmental Consultants

Natural Systems Research

Author

Proposed Scope of Work, Schedule and Costs for the Environmental Plan

Environmental Planning Act General Guidelines for the Preparation and Content of Environmental Plans

Assimilative Capacity Testwork Results - Nena

Rising stage sampling (RSS) Database

1

Hydrology & Environmental Services - Site Trip April 1996

Hydrology & Environmental Services - Site Trip July 1996

Preliminary Summary of Historical Hydrological Data Nena Project, PNG

Meteorology and Hydrology Report No 1

Acid forming potential of Waste Rock and Implications for Management

Nena Hydrometric Network Report 1995

Draft Progress Report on Assessment of Waste Rock Geochemistry Nena Copper/Gold Project

Scope of Baseline Studies For Environmental Plan Preparation - Frieda Copper/Gold Project

Frieda Project Initial Assessment of Acid Rock Drainage for Nena Prospect

Frieda Project Baseline Environmental Monitoring Reconnaissance Survey

Environmental Review and Investigations Plan, Frieda Project, West Sepik Province PNG

Title

Highlands Gold Properties

Department of Environment and Conservation

Highlands Gold Properties

Frieda River Joint Venture

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Limited

Highlands Gold Limited

Highlands Gold Limited

Highlands Gold Limited

MIM Holdings Ltd

Company

Frieda River Environmental Program Review – Document Log

December

February

May

September

August

November

not specified

September

Month

1996

1996

1996

1996

1996

1995

1995

1995

1995

1994

1994

1993

1993

1979

Year

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Supplied to CCMC

Copied (HPL)

HPL

Copied (HPL) Draft of ENV-17

Copied (HPL)

Copied (HPL)

Copied (HPL)

Copied (HPL)

NSR

EGi

Ex 1688 - NSR

Copied (HPL)

Copied (HPL)

Copied (HPL)

HPL

CR 128

Source

HPL

16

17

18

19

20

21

22

23

24

25

26

27

27A

29

30

Cat

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

ENV-

NSR Environmental Consultants

Tony Spandler Ecowise Envrionmental Limited

Ecowise Envrionmental Limited

Ecowise Envrionmental Limited

Ecowise Envrionmental Limited

Tony Spandler Ecowise Environmental Ltd.

Highlands Gold Limited

Highlands Gold Limited

ECOWISE Hydrology and Environmental Services

Tony Spandler Ecowise Environmental Ltd

Tony Spandler Ecowise Environmental Ltd

Highlands Gold Properties

Tony Spandler Ecowise Environmental Ltd

NSR Environmental Consultants

NSR Environmental Consultants

Author

Nena Project,Papua New Guinea, Review of Environmental Program

Hydrology Site Trip June 1998 - Frieda River Project

Nena Hydrometric Network Report 1997 - Nena Project

Nena Hydrometric Network Report 1996 - Nena Project

Site Trip November 1997 - Frieda River Project

Site Trip September 1997 - Nena Project

Assimilative Capacity Testwork Results - Nena

Rising Stage sampling (RSS) Database

Nena Hydrometric Network Report

Site Trip February 1997 - Nena Project

Site Trip December 1996 - Nena Project

Rainfall and River level data - 1968 to 1982

Site Trip September 1996 - Nena Project

Nena Assimilative Capacity Testwork

Water Quality Sampling Manual

Title

2

Highlands Gold Limited

Cyprus Climax Limited

Highlands Pacific

Highlands Gold Limited

Highlands Pacific Limited

Highlands Pacific Limited

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Limited

Highlands Gold Limited

Highlands Gold Limited

Highlands Gold Properties

Highlands Gold Limited

Highlands Gold Australia Pty Limited

Highlands Gold Properties

Company

Frieda River Environmental Program Review – Document Log

January

June

April

December

December

October

March

January

October

December

November

Month

1995

1998

1998

1997

1997

1997

1996

1996

1996

1997

1997

1982

1996

1996

1996

Year

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Supplied to CCMC

NSR CR 128/1 DRAFT

Copied (HPL)

Copied (HPL)

Copied (HPL)

Copied (HPL)

Copied (HPL)

Same as ENV-17

Same as ENV-12

Same as Env-27

Copied (HPL)

Copied (HPL)

HPL

Copied (HPL)

Copied (HPL)

Copied (HPL)

Source

HPL

31

32

33

1

2

3

4

5

6

7

8

9

10

11 (Not at HPL)

Cat

ENV-

ENV-

ENV-

MIN-

MIN-

MIN-

MIN-

MIN-

MIN-

MIN-

MIN-

MIN-

MIN-

MIN-

EGI - Environmental Geochemistry International

Kevin Rosengren & Assoc.

Dames & Moore

Highlands Gold Limited

Mining Dynamics

Kevin Rosengren & Assoc.

EGI - Environmental Geochemistry International

MIM Holdings Ltd

Klohn-Clippen

Highlands Gold Limited

Dames & Moore

Tony Spandler Ecowise Envrionmental Limited

Tony Spandler Ecowise Envrionmental Limited

NSR Environmental Consultants

Author

Horse/Ivaal Prospect, PNG, Preliminary evaluation of the acid forming potential of waster rock.

Geotechnical Assessment for Undeground Mining - Nena May 1996

Revised Pit Designs and Quantites - Nena

Conceptual Pit Design - Nena Project

Preliminary Pit Optimisation - Horse / Ivaal Pit

Geotechnical Assessment for Undeground Mining - Nena

Preliminary Evaluation of the Acid Forming Potential of Waste Rock

Preliminary Study of the Mine Operating and Equipment Costs for the Nena Copper/Gold Project

Review of Pit Slope Design - Nena

Waste Rock Volumes - Nena Project

Preliminary Pit Optimisation and Mine Plan - Nena

3

Hydrology Site Trip December 1998 - Frieda River Project

Hydrology Site Trip September 1998 - Frieda River Project

Nena Transport Study, Preliminary Hydrology

Title

Highlands Gold Properties

Highlands Gold Limited

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Limited

Highlands Gold Properties

Highlands Gold Properties

Highlands Gold Properties

Maunsell

Company

Frieda River Environmental Program Review – Document Log

August

February

February

December

May

Month

1996

1996

1995

1995

1996

1996

1996

1995

1995

1995

1995

1999

1998

1995

Year

No

Yes

Yes

No

No

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Supplied to CCMC

Same as Min-5

Not Req.

Copied (HPL)

Not Req.

Not Req.

Not Req.

EGi

Not Req.

Not Req.

Copied (HPL)

Not Req.

Supplied by Ecowise

Supplied by Ecowise

NSR CR 128/4

Source

Appendix 2 Document Log – Socio-economic Reports

AUTHOR(S)

Nov-95

Sep-07

1994

1994

Joint East Sepik and Sandaun Provincial Land Investigation team

Provincial Land Office

Provincial Land Office

Division of Land Mobilization Wewak

Land Investigation Report Frieda River Project

Land Investigation Report 1A

Land Investigation Report 1B

Frieda Land Investigation Report for Arch Files No 1A - 1C. Frieda Patrol Report Summary.

1994

Aug-07

Mar-96

Feb-96

Jan-96

Provincial Land Office

Dan Jorgenson Subada Consulting Pty Ltd Don Gardner; Dan Jorgassen; George Morren; Rune Paulsen; compiled by Don Gardner

Nov-95

Mar-95

Susanne Bonnell; Frits Robinson

Mar-66 1994-1995

Colin Filer Misc Don Gardner S Bonnel; F Robinson; N Makap Environmental Management and Monitoring

Jan-96 Apr-96

Dan Jorgensen Don Gardner

Oct-07 13-Nov-79 1996

Colin Filer Thomas Moylan Don Gardner

1981 1995 1994

Peer Review/Commentary

Landowner Issues Cultural Impacts

Community Issues History, Geneaology, Social Structure Social structure

Research report Forward plan Correspondence Correspondence Proposal Correspondence Correspondence Correspondence Correspondence Correspondence Correspondence Field reports Discussion notes; correspondence Correspondence Correspondence

Publication; Country environmental profile

TYPE

Frieda River Nena and May Valley May River; Ok Esai; Wabi; Nena

Nena Area

Frieda River Frieda River Frieda River, Telefol & Paiyamo Nena Area

Frieda River

Unamo; Wabia Frieda River Frieda River

Upper Sepik and Chambri Lakes Area Frieda River PNG PNG Frieda River Telefomin PNG PNG PNG PNG PNG District

PNG

PLACE

Customary Land Investigation; Genealogy; Health;Law and Order

Land Investigation Report; LIR

Land Investigation Report; LIR

Geneology

Geneology

People; culture; impact area

Wanium; Ham; Hotmin; Usalemin; Mabweimin Paupe; Amaromin; Iniok; Sokamin; Wameinmin; Ok Esai Frieda River; Paupe; ok Esai; Wabia; Wameinmin; Sokamin; Amaromin; Fiak; Mabweimin; Fiarmin; Hotmin; Usalemin; Inagre village; Ham; Yanpamin; Wanium

Ok Esai; Telefomin; Sandaun

Nena Telofomin District Ok Esai; Telefomin; Sandaun

Socio-Economic Impact study Sepik Basin; Nena Socio-Economic study for preNena; Schatterberg feasibility study of the Nena Mountains; Sandaun project province; PNG Landowner Issues and Demographic census Nena; Frieda Population map and May River; Sepik River; communities baseline info Frieda River

Socio-Economic field work

Correspondence Jan-95 Genealogy; Demographics

13-Mar-96 2007 1975-80 1980-onwards 22-Aug-94 1976-1980 1969-1978 1969-1983 1969-1982 1978-1982 1971-1980 1970-1980

1994

DATE

Misc Misc Misc

Misc Misc Dan Jorgensen Misc Misc Misc Misc Misc Misc

Australian International Development Assistance Bureau Lawrence Kuna Kalinoe, University of Papua New Guinea

Provincial Land Office Customary Land Investigation Form

Draft: A summary of the People and Cultures of the Nena Impact area.

Community Directory Nena Project Area

Draft report Nena Project Socio-Economic Assessment Confidential Report concerning Paiyamo and Telefol Landowners' issues with respect to the Nena Mining Project

Nena Socio Economic Impact Study Overview Report

Nena Socio-Economic Impact Study. Fieldwork February 1995

Landowners' memos, letters, replies Nena Genealogy Study Trip number 1. A report to Highlands Gold Limited

Identificatiuon of the Landowners in the Frieda River Area & their Affiliations with other Groups The Cultural Context of Nena (A Report to Highlands Gold Limited) Report Concerning Paiyamo and Telefol Landowners' Issues with Respect to the Nena Mining Project Nena Project Socio-Economic Impact Assessment: Cultural Impacts Nena Socio Economic Impact Study Overview Report / Comments on 'Nena Project SocioEconomic Assessment (Bonne & Robinson 1995)

Nena Reports Community Issues Associated With Large-Scale Mining Developments In Papua new Guinea: Potential Implications for Xstrata's Frieda River Project

Ifiloponin Group Discussions and Correspondence

Dept of District Administration Patrol Reports

Water Law and Customary Water Rights Research Project; Field Work Report on the Upper Sepik and Chambri Lake Area; A Case Study of the Upper River FMLA Working Document 2007 & Beyond Occupation fee Occupation / Compensation Genealogy Study Proposal Local people Telefomin/Teleformin Council Correspondence DDA Frieda Paupe Relationships Frieda Land Ownership Politics

Country Environmental Profile of Papua New Guinea

TITLE

Environmental Inception Report Frieda River Project Appendix 2

Xstrata Brisbane

Xstrata Brisbane

Xstrata Brisbane

Xstrata Brisbane

Xstrata Brisbane

Xstrata Brisbane

Xstrata Brisbane

Xstrata Brisbane

Xstrata Brisbane x 2 copies

Xstrata Brisbane

Xstrata Brisbane x 2 copies

Xstrata Brisbane Xstrata Brisbane

Xstrata Brisbane

Xstrata Brisbane Xstrata Brisbane

Xstrata Brisbane Xstrata Brisbane

Xstrata Brisbane x 3

Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane

Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane Xstrata Brisbane

Xstrata Brisbane

HARDCOPY LOCATION

COMMENTS

Summary Report of Land Investigation study 1A-1C ( only files available are 1 A and 1 B.)

Land Investigation Report

Land Investigation Report

Genealogy study at Ok Esai

Genealogy study at Ok Esai

A document describing the people and their culture in the impact area of the Nena District.

A document containing population map and communities baseline info

A report concerning Paiyamo and Telefol landowners

A socio-economic study undertaken for the Nena prefeasability study

Socio-economic impact study of the Sepik Basin and Nena.

Socio-economic impact study in the May river, Ok Esai, Wabia and nena areas.

128_12_App2-v1-1.xls

Correspondence concerning landowners seeking assistannce, some grievances at company and their responses Genealogy study in the Nena and May valleys.

Social and health issues arising in relation to the proposed mine development project. Cultural complexity; land disputes arise from ongoing mineral exploration A peer review by Colin Filer on studies concering impacts at Frieda done by Bonnel & Robinson 1995 & by Gardner in 1996.

Accounts of warfare amongsts tribal groups, relationships, geneaolgy and general social structure. A study of contemporary social structure, subsistence, resource ownership, distribution and inheritance.

Compilation of issues arising within the community with recommendations to address them

Trust deeds for the villages Unamo and Wabia Correspondence relating to a ministerial trip to Nena. Miscellaneous reports and correspondence

Paper based on university research project funded by Highlands Pacific. "Blue print' for addressing issues related to Frieda River Project for 2007 drilling program and beyond. Correspondence from Frieda Copper Pty Ltd to PNG Government re: occupation fees Correspondence from Frieda Copper Pty Ltd to PNG Government re: occupation fees Proposal for a study of information concenring local people within the mine prospect area Correspondence regarding council meetings and sponsorships Correspondence to/from the District Development Administration Correspondence regarding issues relating to Paupe Correspondence regarding issues relating to Frieda River landowners Correspondence regarding government relations Correspondence regarding West Sepik province matters Before independence; Australian administration patrols

Aims of the profile are to outline PNG's main environmentla issues in the context of ecological sustainable development; describe the environmentally-realted aspects of the existing Australian development cooperation program.

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