ENVIRONMENT PROTECTIONAND BIODIVERSITY CONSERVATIONACT 1999

Part 10StrategicAssessments

Section 146Agreement

Agreementtoundertakeastrategic assessmentoftheimpactsofaPlanforminingironore inthePilbararegion,WesternAustralia.

between

THEMINISTER FORSUSTAINABILITY, ENVIRONMENT,WATER, POPULATIONAND COMMUNITIES

and

BHPBilliton Iron OrePtyLtd

ACN 008 700981

CONTENTS

1PARTIES...... 3

2COMMENCEMENTOFAGREEMENT...... 3

3DEFINITIONS...... 3

4PREAMBLE...... 5

5BACKGROUND...... 5

6TERMSOFREFERENCEFORTHEIMPACTASSESSMENTREPORT...... 6

7PREPARATION OFTHEIMPACTASSESSMENTREPORTAND MNES PLAN...... 7

8ENDORSEMENTOFTHEPLAN...... 8

9ENDORSEMENTCRITERIA...... 8

10APPROVALOFACTIONSUNDERTHEPLAN...... 9

11VARIATION,CONFLICTRESOLUTIONANDTERMINATION...... 10

1PARTIES

TheParties tothisagreementare:

TheMinisterfor Sustainability, Environment,Water,PopulationandCommunities and

BHP BillitonIronOrePtyLtd ABN46008700981

2COMMENCEMENT OFAGREEMENT

2.1Thisagreementwill commence onthedate onwhichtheagreementis signed byboth parties.

3DEFINITIONS

3.1Unless statedotherwiseinthis Agreement,the definitions, meanings andterms inthe Environment Protection and Biodiversity ConservationAct1999(Cth) applytothis Agreementanditsattachments.

3.2InthisAgreement:

Agreementmeans this strategic assessmentagreemententeredinto betweenthe Minister for Sustainability, Environment,Water, PopulationandCommunities and BHP BillitonIronOrePtyLtd onthedatethelastPartyexecutes thisagreement.

BHPBilliton Iron Oremeans BHPBillitonironOrePtyLtd ACN 008700981

daymeans abusinessdayas measuredinCanberra, AustralianCapitalTerritory.

Department meansthe AustralianGovernmentdepartmentadministeringthe

Environment Protection and Biodiversity ConservationAct1999(Cth).

endorsementcriteriameans theendorsementcriteriadetailedinClause9ofthis

Agreement.

EPBC Act meanstheEnvironment Protection and Biodiversity ConservationAct1999

(Cth).

Impact AssessmentReport means thereport preparedin accordancewiththeTerms ofReferenceassessingthelikelyimpacts,includingcumulativeimpacts,onMNESfrom implementingthePlan.

Ministermeans theMinister responsiblefor administeringtheEPBCAct or the

Minister's authorised delegate.

MNESmeansmattersofnational environmental significanceprotectedunderPart3of theEPBC Act.

MNES PlanmeansthePlanbyBHP BillitonIronOrePtyLtdfor theprotectionof matters of nationalenvironmental significancewithintheboundarydefinedin AttachmentAfor which BHP BillitonIronOrePtyLtdhas responsibility.

PartiesmeantheMinister and BHPBillitonIronOrePtyLtdtogether, eachaParty.

Plan is the‘policy, plan or program’ (section146 oftheEPBCAct)ofthe BHPBilliton IronOrePtyLtdmanagementarrangementsthatwill applytothoseparts ofthe strategic assessmentarea asdescribedinthe MNES Planandfor whichendorsement bytheMinister is sought.

strategicassessmentmeans thestrategic assessmenttowhichthis Agreement relates,namelythestrategic assessmentoftheimpacts,includingcumulativeimpacts, ofactionsontheenvironment ofthestrategic assessment area,relevantMNES andthe BHP BillitonIronOrePtyLtdmanagement arrangementstodeal withsuchimpacts.

strategicassessmentareais thegeographicextentofthe assessmentas describedin

AttachmentA.

Termsof Referencemeans thetermsofreferencefor thepreparationoftheImpact

AssessmentReport.

WA meansthe State ofWesternAustralia.

4PREAMBLE

4.1TheParties agreethat:

(a) the Pilbararegion ofWA has significantenvironmental,social andeconomic values andthat;

(b) newminesandexpansionof existingminesand associatedinfrastructurelocated withinthe Pilbara mustbeundertakeninamanner thatprotects andenhancesthese values.

4.2Recognisingtheenvironmental values,theParties committo:

(a) undertakeastrategic assessment oftheimpacts of actionsunder theMNES Planon matters of nationalenvironmental significanceprotectedbyPart3 oftheEPBC Act,

(b) shareinformation,includingbutnotlimitedtomapping andspatialdata,and

(c)work collaborativelyto undertaketheactivities withinthis Agreementthroughtaking reasonablypracticablemeasures.

4.3Theparties recognisethattheMNESPlan,and anyassociatedapproved actionsand classes of actions would beimplementedas partof BHP Billiton’s Charter.This would occur throughthedevelopmentandapplicationof environmentalmanagements systems andenvironmental standards including (butnotlimitedto):

(a) companycharter,Codeof Business Conductandstandards; (b) planning,implementationandoperation;

(c)monitoringand reporting; and

(d) complianceandreview.

4.4Thestrategic assessmentdoesnotaffecttheapplicationoftheEPBC Actinthe strategic assessmentareainrelationto actions or activities alreadyapprovedunder Parts 7,8and9 oftheEPBC Act.

4.5TheDepartmentagrees to assistBHP BillitonIronOretoaddress therequirementsof thestrategic assessment.

5BACKGROUND

5.1Subsection146(1) oftheEPBC Actallows theMinister toagreeinwritingwitha personresponsiblefortheimplementation ofa policy, planor programto assessthe impactsof actions taken under thatpolicy, plan or program on MNES.

5.2ThisAgreementis intendedtobeanagreementfor thepurposesofsubsection146(1)

oftheEPBC Acttoassess theimpactsof actions takenunder theMNES Plan.

5.3TheMNES Planis tobe developedbyBHPBillitonIronOre.TheMNES Plan,if endorsed,will allowtheMinister toapproveactions or classes of actions takenin accordancewiththeMNES Plan,withinthe boundaries ofthestrategic assessment area. KeyissuesthatmustbeaddressedintheMNESPlanareincluded(butnot limitedto) thoseatAttachmentB.

5.4For thepurposesofthe Agreement,thepolicy, plan or program is theMNES Plan.An Impact AssessmentReportwill also bepreparedto assess theimpacts of implementingthe MNES Planon MNES.

5.5A draftImpactAssessmentReportanddraft MNES Planwill bemade availablefor public commentforaminimum of atleast28days.Followingthe public comment period,arevisedfinal Impact AssessmentReportandafinal MNESPlanwill be submittedtothe Minister.

5.6After consideringthefinal Impact AssessmentReportandfinal MNES Plan,the Minister maymakerecommendationsabouttheMNESPlan(including recommendationsformodification ofthe MNES Plan).

5.7TheMinistermaydecidetoendorsetheMNES Planifsatisfiedthat:

(a)theImpactAssessmentReportandMNES Planadequatelyaddresstheimpacts andendorsementcriteriatowhichthis Agreementrelates;and

(b)therecommendedmodifications(if any) totheMNES Planmade bytheMinister, or modifications havingthesameeffect,have beenmade.

5.8TheParties acknowledgethattheendorsementoftheMNES Planitself does not constituteanyapproval for thetaking of actions under theEPBC Act.

5.9IftheMinister decidestoendorsetheMNESPlan,theMinister maythenapprovethe taking of anaction,oraclass of actions,in accordancewiththeMNES Planandthe EPBC Act.The effect ofthisapproval decisionis thatanyactionsor class of actions approvedunder section 146Bwouldnotneedfurtherapproval bytheMinister under theEPBC Actiftakenin accordancewiththeendorsedMNESPlan.

5.10TheParties acknowledgethat,where proponentsproposetotakean actionin accordancewiththeMNES Planthatis notthesubjectofan approval under section

146B,theyare abletoseek approvalfor thatactionthroughtheassessmentand approval processestablishedunder Parts7,8 and9 oftheEPBC Act.Whererelevant, informationintheImpact AssessmentReportmustbetakeninto accountwhen deciding:

(a)thelevel of assessmentfor an actionreferredunder Part7;and

(b)whetheror notto approve an actionunder Part9(paragraphs 87(3)(e) and

136(2)(e)).

6TERMSOF REFERENCEFOR THEIMPACTASSESSMENT REPORT

6.1After commencement ofthe Agreement,BHP BillitonIronOrewillas soon as practicableseekpublic commentonthedraftTerms ofReference (AttachmentC).

BHP BillitonIronOremustprovidethe draftTerms ofReferencefor public comment by noticeincluding:

(a) postingonBHPBillitonIronOre’s website;

(b) publishinginamajor newspaper circulatinginWesternAustralia;and

(c)circulationtokeystakeholder groupsagreedbetweentheDepartmentand

BHP BillitonIronOre.

6.2Thenoticemust advise:

(a) thatthedraftTermsofReference areavailablefor public comment; (b) howcopiesmaybeobtained;

(c)thecontactdetailsforobtainingfurther information;and

(d) thatpublic commentsareinvitedforaperiod ofatleast28days as specifiedby theMinister.

6.3Followingthe public commentperiodforthe draftTermsofReferencein accordance withclause 6.2(d), BHP BillitonIronOrewillsubmittothe Minister:

(a)proposedfinalTerms ofReference;

(b)publicresponses relatingtothe draftTerms ofReference;and

(c) areportonhowthepublic responses have beentakenintoaccount.

6.4Followingreceiptofthe proposedTermsofReference,theMinister will notifyBHP BillitonIronOrethatthe proposedTermsofReference:

(a) are approved, or

(b) are notapproved,inwhichcasetheMinister will notifyBHP BillitonIronOre of anycomments andinvite BHPBillitonIronOretoproviderevisedTerms of Referencewhichtakethosecomments into account.

6.5As soon aspracticable after receipt oftherevisedTerms ofReferencefromBHP BillitonIronOreinaccordancewithclause6.4(b),theMinister will either:

(a) notifyBHP BillitonIronOreoftheapproval oftherevisedTermsofReference;or

(b) provide approvedTerms ofReferencethatmeettherequirements.

7PREPARATION OF THEIMPACTASSESSMENT REPORTANDMNES PLAN

7.1BHP BillitonIronOrewill prepare assoon aspracticable after theTerms ofReference are approvedunder clause6.5adraftMNESPlananddraftImpactAssessment Reportinaccordance withthis AgreementandtheTermsofReference.

7.2BHP BillitonIronOremustprovidethe draft MNES PlananddraftImpact Assessment

Reportfor public comment bynotice,including: (a) postingonBHPBillitonIronOre’s website;

(b) publishinginamajor newspaper circulatinginWesternAustralia;and

(c)circulationtokeystakeholder groupsagreedbetweentheDepartmentand BHP BillitonIronOre.

7.3Thenoticemust advise:

(a) thatthedraft MNES PlananddraftImpactAssessmentReportareavailablefor public comment;

(b) howcopiesmaybeobtained;

(c)providecontactdetailsfor obtainingfurther information;and

(d) thatpublic commentsareinvitedonthe draft reportsfor aperiod of atleast28 days as specified bytheMinister.

7.4BHP BillitonIronOrewill prepareafinalImpact AssessmentReportandfinal MNES Plan,takingintoaccountanypublic comments receivedin accordancewithclause

7.3(d).

8ENDORSEMENT OFTHE PLAN

8.1BHP BillitonIronOrewill submittotheMinister:

(a) Thefinal MNES Plan(incorporatinganyrevisions inlightofpublic comments);

(b) Thefinal Impact AssessmentReport(incorporatinganyrevisions inlightofpublic comments);

(c)areportexplaininghowrelevant public responses have beentakeninto account andaddressedinthefinal Impact AssessmentReportandfinal MNES Plan;

(d) public comments received duringtheconsultationperiod relatingtothedraft

Impact AssessmentReportanddraftMNESPlan;and

(e) anyotherdocuments requiredtosupporttheBHP BillitonIronOre’ssubmission.

8.2IftheMinister is notsatisfiedthatthefinal MNES Planandfinal Impact Assessment

Reportadequatelyaddresses theimpactstowhichthis agreementrelates,then: (a) theMinister canmake recommendationsto amendtheMNESPlan;

(b) BHP BillitonIronOremayseek clarificationfromtheMinisteronthe recommendations;

(c)BHP BillitonIronOrewill thensubmittotheMinisterfor considerationtherevised MNES PlanandasummaryofhowtheMinister’s recommendationsweregiven effect;

(d) theMinister will consider therevisedMNESPlan,andanysupportingmaterial provided;and

(e) theMinistermayrequestfurther modificationsifstill notsatisfiedthatthePlan provides for adequateprotectionofMNES.

8.3TheMinistermayendorsetheMNES Planifsatisfiedthatthereportssubmittedunder clause8.1and/or clause 8.2adequatelyaddress theimpactstowhichthis Agreement relates,andthatanyrecommendedmodifications totheMNESPlanor modifications havingthesame effecthave beenmade.Inconsideringwhether toendorsetheMNES PlantheMinister will alsoconsider theendorsementcriteriaatClause 9.

9ENDORSEMENT CRITERIA

9.1When decidingwhether to endorsetheMNESPlan,the Ministermust besatisfiedthat theImpactAssessmentReportadequatelyaddresses theimpacts towhichthe Agreementrelates,andthatanyrecommendationsbytheMinister tomodifythe

MNES Planhave been respondedtoappropriately.

9.2 Indeterminingwhetheror nottoendorsetheMNES Plan,theMinister will haveregard tothe extenttowhichtheMNESPlanmeets theobjectsoftheEPBC Act.In particular, thatit:

(a) protectstheenvironment, especiallythoseaspectsoftheenvironmentthatare

MNES;

(b) promotesecologicallysustainabledevelopmentthroughtheconservationand ecologicallysustainable use of natural resources;

(c)promotestheconservationof biodiversity;

(d) provides for the protectionandconservation of heritage;

(e) promotesacooperative approachtothe protectionand managementofthe environment;and

(f)assists intheco-operativeimplementation of Australia’s international environmental responsibilities.

9.3Withoutlimitingthematters theMinistermayconsider whenmakingthedecision whether or notto endorsetheMNES Plan,theMinister will consider themanner in whichthe Plan:

(a) identifiesdirect,indirect andcumulativeimpacts onMNES; (b) avoids impacts onMNES;

(c)mitigates theimpacts onMNES; (d) offsetstheimpactson MNES;

(e) contributestotheenhancement oftheexistingenvironmentandmanagement of existingthreats;and

(f)demonstratesadaptiontoreasonableclimatechangescenarios.

9.4Commitments intheMNES Plan mustbeadequatelyresourcedthroughoutitslife.The MNES Planmustdemonstrateaneffectivesystemof adaptivemanagementthat addresses uncertaintyandcontingencymanagementas well as proceduresfor monitoring,independentauditingandpublic reporting onimplementation.

9.5TheMNES Planmustaddressall oftheabovemattersfor ittobeconsideredfor endorsementbytheMinister in accordancewiththeEPBC Act.

10APPROVAL OFACTIONSUNDER THE PLAN

10.1TheMinistermayapprovethetaking of anactioninaccordancewiththeendorsed

MNES Plan.Indoingso,theMinistermusttakeintoconsideration:

(a) matters relevanttoanymatter protectedbyprovisionofPart3oftheEPBC Act thatthe Minister considers relevanttotheapproval; and

(b) economicandsocialmatters.

10.2 Inconsideringthesematters,theMinistermusttakeinto accountthe principles of ecologicallysustainable development.

10.3TheMinistermustseek commentfrom otherAustralianGovernment Ministers with administrativeresponsibilities relatingtothe actions beforeapprovingthetaking ofan action,or classofactions,pursuanttosection146CoftheEPBCAct.

10.4If endorsed,bothParties will make publiclyavailable electronicallythroughtheir websites theendorsed MNES Plan,theImpact AssessmentReport,andanyapproval decisionandconditions.

10.5Approvalsfor actionsor classes of actions mayoccur progressivelyafter endorsement oftheMNESPlan.

11VARIATION,CONFLICT RESOLUTIONAND TERMINATION

11.1ThisAgreementmayonlybevaried bywritten agreement(includingelectronic communications)betweenthePartiesandinaccordancewiththeEPBC Act.

11.2Wherethereis adisputebetweenthePartiestothisAgreementonaparticularmatter, theParties will consultinthespiritofmutual cooperationinrelationtothatmatter and will usetheir bestendeavours tonegotiateamutuallyacceptableresolution.

11.3Either partymayatanytimeterminatethis Agreement bywrittencorrespondenceto theother Party.

11.4TheParties donotintendthis Agreementtocreatecontractualor other legal obligations,or thatabreach oftheAgreementwill giveriseto anycauseof action,or righttotakelegal proceedings.

11.5Toavoid anydoubt,nothinginthisAgreementis intendedtooverridetheprovisions of theEPBC Act.

SIGNEDBY:

TheHon.TonyBurkeMPDated

MinisterforSustainability,Environment,Water,
PopulationandCommunities

[Signed]18/9/2012

Carl Binning

Vice President Health, Safety, Environment and Community

BHP Billiton Iron Ore Pty Ltd

[Signed]28/08/2012

AttachmentA

STRATEGICASSESSMENTAREA

Thestrategic assessmentareais theboundaries ofBHPBilliton assets withinthecentral Pilbararegion ofWestern Australia(refer Figure 1) andthesurroundingarea,totheextent thatactions undertaken byBHP Billitoninthestrategic assessmentareamayimpact matters of nationalenvironmental significance.Thestrategic assessment areahas been definedinpartusingtheInterimBiogeographicRegionalisationfor Australia(IBRA) sub- regional boundaries andanominal corridor basedontheexistingBHP BillitonIronOre NewmantoPortHedlandrail corridor.

- 12-

DAMPIER

#*#*

CAPELAMBERT

#*

KARRATHA

PORTHEDLAND #*

050 km

100

LOCALITY

PortHedland

!(

!(

MARBLE BAR

Yarrie

MILLSTREAM NATIONAL PARK

LEGEND

PANNAWONICA

!(

Newman

0500

Kilometres

!(MAJORTOWN

#* MAJOR PORT BHPBIORAILWAY

HIGHWAY SECONDARYROAD

STRATEGICASSESSMENTAREA

INTERIMBIOGEOGRAPHIC REGIONALISATION FORAUSTRALIA(IBRA)AREA

Wittenoom

CHICHESTERIBRA

TOMPRICE

KARIJINI NATIONAL PARK

FORTESCUEIBRA

HAMERSLEY IBRA

PARABURDOO

BHPBILLITON IRON ORE STRATEGICASSESSMENTAREA FIGURE1.

NEWMAN

A366_005_X_Strategic_Planning_CentralPilbara_RevC.mxd

Attachment B

KEYISSUESTOBEADDRESSED IN THE MNES PLAN

1.TheMNES Planpreparedfor this strategic assessmenthasawideaudience,including thegeneral public and governmentregulators,soitmust:

a)use plainEnglishtoensurereaders who do nothave backgroundinor detailed knowledgeoftheMNES Planunderstanditsintent,whereitapplies,what must/mustnotbehappeningandthe planningmechanisms;

b)addressanticipatedcommunityconcerns;and

c)provideclarityaboutlegal responsibilities affectedbytheMNESPlanfollowing endorsement.

2.TheMNES Planmustclearlyarticulate outputs andoutcomestobeachievedandthe actionsandprocessestobe used.Theseoutputs,outcomes, actionsandprocesses shouldaddress (butnot belimitedto):

a)mattersof nationalenvironmental significance;

b)data managementandsharing;

c)stakeholderengagementandcommunication;and

d)monitoring, auditing,evaluationandadaptivemanagement.

3.TheMNES Planmustdescribehowrelevantmatters of nationalenvironmental significancewithinthestrategic assessmentareawill be addressedthrough avoidance, mitigationor offsetmeasures.Tobeendorsed,theMNESPlanmust adequatelyaddress all impacts towhichthe Agreement relates.

4.TheMNES Planmustaddress (butnotlimitedto) how:

a)environmentalimpactswill be addressed;

b)monitoring, auditing,evaluationandadaptivemanagementprocesswill be implemented (includingaddressingfailuretomeetenvironmental outcomes);and

c)mechanisms toachieve ecologicallysustainabledevelopmentincludingactions to maintainor enhance biodiversity, having regardfor species diversity and abundance,andthe extent,condition,connectivityand protection of native vegetation.

5.Anystatelegislation, plans,procedures or guidelines relevanttothe MNES Planmustbe documentedintheMNES Plan or referenced.

6.TheMNES Planmustcontinuetobeeffective despitechangestorelevantWAplanning, legislative andpolicyprovisions underpinningtheplan. Itis alsoimportantthatsuch changes will notaffecttheabilityoftheMNESPlantodeliver theendorsedoutcomes, actionsandprocessesinthefuture.TheMNES Planmustgiveaclear,securebasisfor buildingconfidencethatthebenefitsandoutcomescommittedtoatthetime of endorsementwill bedelivered. TheMNESPlanmustalsoclearlydescribehowit has allowed enoughflexibilityto deal withunforseenchanges,respondto adaptive managementoutcomes or tohave elementsaddedtotheMNESPlan.

7.TheMNES Planmustalsobeclearonaspects thatcannotbe alteredwithout breaching the Plan.For example,minimumenvironmental outcomes.

8.All references citedintheMNESPlanaretobeincludedinabibliography.

Attachment C

Draft Terms ofReference

BHPBilliton Iron OreStrategicAssessment of theimpactsof aMNES Plan formining iron orein thePilbararegion,WesternAustralia.

1Introduction

The Minister for Sustainability,Environment,Population and Communitiesand BHPBilliton IronOrePtyLtd haveagreed toundertakea strategicassessmentofBHPBilliton IronOre’sproposed programformining iron oreinthePilbara regionofWestern Australia.This programincludes:

•Expansionofexistingoperations;

•Upgradetoexisting supporting infrastructure(such asrailwaylines);and

•Newminesand associatedinfrastructure.

Thepurposeof this strategicassessmentistoassessaplan for themanagement of Mattersof National Environmental Significanceasdefined intheEnvironmentProtectionand Biodiversity Conservation Act1999 (EPBCAct)fortheimplementationof theproposed program (MNES Plan).TheMNES Plan istobe prepared byBHPBillitonIronOreaspart ofthestrategicassessment process.

In addition tothe preparation oftheMNESPlan,BHP Billiton Iron Orewill preparean ImpactAssessment Report(IAR).TheobjectiveoftheIARis toprovide details ofthepotential impacts oftheimplementationof the MNESPlan.

TheseTermsofReference (ToR)referspecifically tothecontentsand structureoftheImpactAssessment

Report.

2Content of ImpactAssessment Report

2.1Descriptionof theMNES Plan

TheIARmustincludea detailed descriptionof theMNES Plan prepared byBHPBilliton Iron Ore,including

(butnotlimited to):

•HowtheMNESPlan hasbeen developed.

•Theregional context(socialand environmental)oftheMNES Plan.

•Thelegal and administrativeframeworkfortheimplementationoftheMNESPlan. This should includea descriptionof:

oLegal standing of theMNES Plan.

oTherelationshipof the MNES Plan toother relevantpolicies,plans,guidelines, commitments, regulationsand legislation.

oThebasisof land and assettenure.

oThemanagementandapprovalarrangementsofBHPBilliton Iron Ore and the person(s)

responsiblefortheimplementation oftheMNESPlan.

•Descriptionof theactionsand classesof actionsthatarethe subjectoftheMNESPlan. Thisincludes theshort,mediumand long termactionsproposed.

2.2ExistingEnvironment

TheIARmustprovidea detailed descriptionof theexisting environmentof the Pilbara region(asrelevantto thestrategicassessment).Thisshould includetheenvironmentbeyondthefootprint oftheactionsand

classesof actionsproposedbyBHPBilliton IronOrewherethereispotential foreither director indirect impacts.

In addition,thefollowing should beincluded:

•Descriptionof anyphysicalprocesses(eg. fire,flood,drought,pastand currentland uses)influencing the environmentalcharacteristicsofMNES.

•A detailed profileofeachMNES potentiallyaffectedbytheMNESPlan. Each profilemustinclude:

oDescriptionof theMNES (including images).

oConservation statusof thematterunderboththeEPBCActand relevantWest Australian legislation.

oMapsshowing thedistribution and location oftheMNES (both historicand current),across itsrangeandwithin thestrategicassessmentarea.

oWhereappropriate,a descriptionof the habitatrequirementsof the MNES.

oDescriptionofkeythreatstotheMNESand recoveryand conservationmanagement priorities.

•A profileshould alsobe prepared formattersthatare potentially eligibleforlistingprior toapproval of actionsand classesof actions.

2.3Natureandimplicationof impacts

TheIARmustincludean assessmentofthepotentialimpacts(including directandindirect)on each relevant MNES,including thosemattersthatare potentiallyeligiblefor listing during thestrategicassessment duration.

Asaminimum,theIARmustincludethefollowing:

•Descriptionof thenatureand extentofthepotential impacts,whether:

oShort-term,long-termor irreversible.

oLocalorregional.

oDiscreteorcumulative.

oDirect orindirect.

•Discussion ofuncertaintyin theassessmentof potential impactson MNES,including referenceto technical dataand information relied upon intheimpactassessment.

•Whereappropriate,mapsshowing thelocation,amount(hectares),qualityandtypeof habitatthat may beimpacted for eachMNES.

•Whererelevant,mapsshowing thelocation,amount(hectares),qualityand typeof habitattobe retained for eachMNES.

•Discussion ofthe potentialfor climatechangetointensifypotential impactsand threatstoMNES.

•Descriptionof theassumptionsmadeintheimpactassessment.

2.4Ecologicallysustainabledevelopment

TheIARmustdescribe howthefollowing principlesofecologicallysustainable developmenthavebeen applied in theMNESPlan:

a)Decisionmaking processesshould effectivelyintegrate both long-termand short-termeconomic, environmental,social andequitableconsiderations.

b) If therearethreatsofserious or irreversibleenvironmental damage,lackof full scientificcertainty should not beusedasa reason for postponingmeasurestopreventenvironmental degradation.

c)Theprincipleof inter-generationalequity–thatthepresentgeneration should ensurethatthe health,diversityand productivityof the environmentis maintained orenhanced for the benefitof futuregenerations.

d) Theconservation of biological diversityand ecologicalintegrityshould bea fundamental consideration in decisionmaking.

e)Improvedvaluation,pricingand incentivemechanismsshould bepromoted.

2.5Management, mitigationandoffsets

TheIARmustdemonstratethateveryeffort hasbeenmadetoavoid impacts toMNES. Whereimpacts cannotbeavoided,theIARmustoutlineand assessmitigationmeasuresto protect MNESfrompotential impacts.Environmentaloffsetsin accordancewith theEPBCActEnvironmentalOffsetsPolicy,Consultation draft,August2011(offsets policy),should then beapplied tocompensateforimpactstoMNES thatare unabletobeavoidedormitigated.

TheIARwill includea detailed description and assessment oftheeffectivenessofmanagement measures to beimplemented toaddresstheimpacts oftheMNESPlan,including (butnotlimited to):

•An assessmentofthesuitability oftheapproachtaken (eg. whencomparedtoother potential approaches) toaddresstheimpactson MNES.

•Discussion ofthe predicted effectivenessoftheproposed measures.Claimsregarding effectiveness ofmeasuresmustbesubstantiated.

•Detailsoftheimplementation ofmeasures,including:

oMethodof implementation(eg. BHPBillitonpolicy,training,signage, etc).

oTimelines.

oRolesand responsibilities.

Offsetsmustproduceanoverallconservationoutcomethatimprovesormaintainsthe viabilityofthe relevant MNES. Offsetsmustbereadilyabletobe measured,monitored,audited and enforcedin accordancewith theDepartment’soffsetpolicy.

TheIARmustincludediscussionof:

•Theappropriatenessofthe proposedoffsetsin thecontextofevolving orapproved policy,including

(butnotlimited to):

oCommonwealth threatabatementplans,recovery plans,conservation advicesand other relevantpolicystatements.

•Detailsofproposed directand indirectoffsets.

•Timingof theestablishmentofoffsets.

•Mechanismstoensurethesecurityand long-term managementofoffsetsites.

Whereappropriate,informationon proposedoffsetsmustincludetheprovisionofmapstoshowthe location,amount(hectares),qualityandtypeofhabitatfortherelevantMNES.

2.6Adaptivemanagement andmanagingrisk

TheIARmustidentifykeyrisksassociated with themanagement measuresand theresponsefor addressing theserisksas well asadapting tochangedcircumstances. TheIAR mustprovidedetailsof:

•Keyrisks(eg. totiming,effectivenessofmeasures).

•Responsestoaddresstheserisks.

•Triggersfor reviewandmodificationof themitigationmeasuresand strategies(eg. newinformation, significantchangetostandards).

2.7Auditingandreporting

TheIARmustspecify:

•Monitoring and publicreporting processand timeframes.

•Commitmentfor independent,third partyauditingoftheimplementationof theMNES Plan bya suitablyqualified person(s).

2.8Endorsement criteria

TheIARmustincludean assessmentof howtheMNESPlan togetherwith anyassociated management arrangementsmeetstheendorsementcriteria defined in Clause9ofthe Agreement.

2.9General

TheIARhasa wideaudienceincluding;the general public,community groups,non-governmentorganisations (NGOs),governmentagenciesand industry groups.TheIARmustthereforebewrittenusing plain Englishto ensurethatall readersareableto understand thenatureand extentof impactstoMNES.

Information used in theIAR mustbeappropriatelyreferenced,withthefollowing details provided:

•Sourceoftheinformation;

•Howrecenttheinformation is;

•Howthereliabilityoftheinformationhasbeen tested; and

•Detailsofuncertaintiesintheinformation.