Alligator Rivers Region Advisory Committee
Meeting 38
Meeting Summary
6 September 2012
ARRAC38 Meeting Summary Page 2 of 3
Alligator Rivers Region Advisory Committee
Agenda – 38th Meeting
Agenda Item
/Meeting Start 1000
1 / Welcome
2 / Apologies and Observers
3 / Draft Minutes – ARRAC37
4 / Actions Arising – ARRAC37
5 / Energy Resources of Australia Ltd Report
5.1 / Independent Surface Water Review Update
6 / Supervising Scientist Report
7 / NT Department of Mines and Energy Report
8 / Member Reports
8.1 / Australian Government - Department of Resources, Energy and Tourism
8.2 / Environment Centre NT
8.3 / Afmeco Mining and Exploration Pty Ltd / Areva Group
8.4 / Northern Land Council
8.5 / Gundjeihmi Aboriginal Corporation
8.6 / Australian Radiation Protection and Nuclear Safety Agency
8.7 / NT Department of Health
8.8 / Parks Australia
8.9 / Cameco Australia Pty Ltd
8.10 / NT Department of Natural Resources, Environment, the Arts and Sport
8.11 / West Arnhem Shire Council
8.12 / Uranium Equities Ltd
9 / Other Business
9.1 / Presentation – Simon Powell, Exploration Manager, UXA Resources Limited
9.2 / Presentation – Greg Duncan, Chief Operating Officer, Alligator Energy
10 / Next Meeting
Meeting Close 1500
1 Welcome
The Chair (Prof Webb) recognised the Mirrar people as the Traditional Owners of Kakadu (represented at the meeting by Gundjeihmi Aboriginal Corporation) and welcomed attendees to the 38th meeting of the Alligator Rivers Region Advisory Committee. Prof Webb thanked ERA for arranging an informative tour of Ranger mine prior to the meeting. He noted the tour provided a valuable opportunity to see the status of various mine developments and suggested that this be made an annual event. Prof Webb noted apologies received from various NT government stakeholder members due to commitments associated with the recent change of government in the Northern Territory. Mr Waggitt advised the NT Department of Resources has been renamed the Department of Mines and Energy.
2 Apologies and Attendance
The following apologies were noted.
Richard O’Brien / Australian Radiation Protection and Nuclear Safety AgencyMichael Sheldrick / Australian Government - Department of Resources, Energy and Tourism
Nicole Hinton / Australian Government - Department of Resources, Energy and Tourism
Russell Ball / Northern Territory Government - Department of Mines and Energy
Matt Darcey / Northern Territory Government - Department of Natural Resources, Environment, the Arts and Sport
Ewan Gunn / Northern Territory Government - Department of Natural Resources, Environment, the Arts and Sport
Xavier Schobben / Northern Territory Government - Department of Health
Russell Robinson / Northern Territory Government - Department of Health
Todd Simms / Energy Resources of Australia Pty Ltd
Melissa Taylor / Uranium Equities Limited
Geoff Kyle / Gundjeihmi Aboriginal Corporation
Alister Trier / Representing Office of the Administrator of the Northern Territory
Gillian Jan / Representing Office of the Administrator of the Northern Territory
Peter Cochrane / Parks Australia
Anna Morgan / Parks Australia
Alan Hughes / Supervising Scientist Division
The following resignations and ministerial appointments since last meeting were noted.
Resignations
Dan Janney / Energy Resources of Australia LtdAppointments (pending Ministerial approval)
Tim Eckersley / Energy Resources of Australia LtdJustin Tutty / Environment Centre NT
Chris Dillon / Cameco Australia Pty Ltd
Attendance
The attendance of the following members and observers was noted.
Members/Deputy members / OrganisationCharles Webb / Independent Chair
Damien Ewington / Cameco Australia Pty Ltd
Chris Dillon (nominee) / Cameco Australia Pty Ltd
Greg Sinclair / Energy Resources of Australia Pty Ltd
Cat Beaton / Environment Centre Northern Territory
Justin Tutty (nominee) / Environment Centre Northern Territory
Justin O’Brien / Gundjeihmi Aboriginal Corporation
Howard Smith / Northern Land Council
Adam Thompson / Northern Land Council
Joe Potter / Afmeco Mining and Exploration Pty Ltd (AREVA Group)
Peter Johnston / Australian Radiation Protection and Nuclear Safety Agency
Peter Waggitt / Northern Territory Government - Department of Mines and Energy
Richard McAllister / Supervising Scientist Division
David Jones / Supervising Scientist Division
Observers / Organisation
Sally Strohmayr / Northern Territory Government - Department of Resources
Lauren Cooper / Northern Territory Government - Department of Resources
Virginia Leitch / Aust Govt - Department Resources Energy and Tourism
Simon Powell / UXA Resources Limited
Keith Tayler / Supervising Scientist Division
Michelle Bush / Supervising Scientist Division
Ally Frostick / Supervising Scientist Division
Krissy Kai-Nielsen / Supervising Scientist Division
Rick van Dam / Supervising Scientist Division
Josh Bean / Supervising Scientist Division
Mark Ellis / Supervising Scientist Division
Sean Fagan / Supervising Scientist Division
Liam Curtis / Supervising Scientist Division
Rob Thorn / Supervising Scientist Division
James Matthews / Supervising Scientist Division
Scott Parker / Supervising Scientist Division (ARRAC Secretary)
3 Draft minutes – ARRAC37
The draft ARRAC37 minutes were approved without change.
4 Actions arising – ARRAC37
No. / Action / StatusARRAC37-1 / Mr Waggitt to advise whether DME is looking at using micro-purging techniques as part of ground water quality check monitoring / Mr Waggitt advised that NTDME uses an alternative technique to micro-purging involving slow pumping through a closed cell, monitoring to constant chemistry and then taking a sample. Mr Waggitt noted the slow rate of pumping is used to simulate natural recharge.
ARRAC37-2 / Mr Simms to provide Mr Robinson with copy of the Ranger Radiation Monitoring Plan / Dr Sinclair to follow this item up.
ARRAC37-3 / Mr Robinson to provide an update to next ARRAC meeting on the status of NT legislative amendments associated with the National Dose Register. / It was noted this information is provided in the NT DoH report for this meeting.
ARRAC38 Action 1: Dr Sinclair to confirm if Mr Robinson has been provided a copy of the Ranger Radiation Monitoring Plan.
5 ERA Reports
BUSINESS PERFORMANCE AND DEVELOPMENTS – RANGER (DR SINCLAIR)
Dr Sinclair provided a status report covering Ranger operations, developments and safety performance. Key points raised are summarised below.
Organisational structure - ERA is currently going through a management restructure. There are currently three General Managers covering Operations, Technical and Major Studies and External Relations.
Safety performance - ERA continues to maintain a strong focus on safety and in 2011 achieved its best performance on record with an All Injury Frequency Rate of 0.57. Four recordable injuries have occurred to date in 2012, with 3 Lost Time Injuries (a sprained wrist from an employee slipping in a shower; a strained shoulder from an employee slipping on a step and a broken wrist from a drilling contractor using a breakout tool) and one medical treatment required (a laceration to the shin whilst stepping onto a drill rig).
People – ERA is a major employer in the West Arnhem region with approximately 600 full time employee positions (including 108 Indigenous employees) and a female participation rate of 21%. ERA currently employs 17 fulltime apprentices and five school based apprentices. A total of 193 employees have undertaken cultural awareness training over the last 12 months. ERA continues to make a significant contribution to the Jabiru community and the broader NT economy.
Progressive rehabilitation – this is a key focus for ERA going forwards with successful results from the trial landform being applied across the RPA and the Jabiluka lease. ERA is working closely with GAC to integrate traditional ecological knowledge into rehabilitation activities. Activities include replanting of disused tracks on the Ranger Project Area, installation of wicks in Pit#1 (about 80% complete) and rehabilitation of disused Land Application Areas.
Production outlook and key focus areas – ERA expects to produce 3,200 to 3,700 tonnes of uranium oxide in 2012. Production is expected to peak at the end of Pit#3 mining. Without new resources being identified the size of the operation will decline. Key areas of focus currently include completing mining in Pit#3 in 2012, demonstrating successful water treatment, commencing progressive rehabilitation of key sites on the RPA, transition from open pit to potential underground mining, reducing the operational footprint, further exploration and ensuring key stakeholders understand ERA’s role as the major social and economic driver in the Alligator Rivers Region. ERA expects to have the brine concentrator commissioned by Q3 2013. ERA recognises the continued support of TOs is critical to the success of their operations.
Operations -Full mining access in Pit#3 has been achieved ahead of schedule. The average grade of in-situ ore reserves is 0.19% (6,530t U3O8) applying a cut-off grade of 0.08%. From 2013 onwards, high grade ore will be processed before moving to lower grade ores from stockpiles. Stockpiles will be the source of feed to the mill from 2013 to 2016 with production post 2016 being dependent on the outcome of further studies on processing of low grade ore and the prevailing economic conditions. The mill and plant at Ranger are performing strongly and ERA is focused on maximising efficiency and minimising costs without compromising safety or the environment. Total of 5.2 million tonnes of material was mined YTD 2012 (a 24% increase on 2011) producing 1,244 tonnes of U3O8 (107% increase over 2011).
Exploration – Approximately 8000m (mainly in Anomaly 4, Anomaly 8 and south- east Ranger 3 Deeps) has been drilled since January 2012 and drilling commenced in areas north of Magela Creek in late June. A total of 22 drill holes have been grouted in the area of Ranger 3 Deeps. ERA is looking to finalise drilling at Anomaly 8 and Georgetown to allow drilling operations to move north to concentrate on Ranger 18E and Ranger 19 areas subject to regulatory approval.
MAJOR PROJECTS UPDATE
Brine concentrator – project is on schedule and budget. Site preparations are going well with successful completion of acid plant demolition and commencement of footings. All components are expected to arrive in the NT before Christmas 2012. The brine concentrator has a nominal capacity to treat 1.83 billion litres of water per year. It is expected the facility will be commissioned and fully operational in the second half of 2013.
Ranger 3 Deeps Exploration Decline – project is on schedule and budget. Following ground breaking in May, the box cut has been excavated and work is focusing on the steel arches in preparation for going underground before the wet season.
Prefeasibility study for Ranger 3 Deeps – The $57m Prefeasibility study for underground mining an estimated 34000 tonne resource has been approved. First phase involves exploration drilling additional 16000 m for resource definition and a further 1100 m of underground development. Other components include construction of a ventilation shaft, selection of mining method, production rates and treatment method. ERA also needs to address all business and stakeholder issues and secure community and regulatory approvals. ERA will commence exploration drilling in Q1 2013 and resource drilling will follow. ERA anticipates seeking regulatory approval to mine in 2015 with underground production commencing later that year. It was noted these plans are subject to change.
Integrated Tailings Water Closure Strategy – A total of $23m is allocated to the pre feasibility study. It is important given the location of the mine that the process is done properly. This is an integrated approach looking at all classes of water. Current options include transferring tailings into Pit#3. ERA currently has inventory of 10 GL of process water. The three WTP are currently working well and are generating brine streams which will be processed through the brine concentrator before being injected into the bottom of Pit#3. It is important that the injection holes are placed accurately. Given the need to isolate the tailings for 10,000 years, modelling is ongoing to develop a sound understanding of the hydrogeology beneath the Pit. The brine injection process will require regulatory approval. The current Pit#3 rehabilitation design involves transferring tailings from the TSF to the Pit and covering with low grade ores and then clean rock followed by contouring and revegetation. It is expected the PFS will be completed by April 2013. The Closure Criteria Working Group is also looking at this.
Construction projects
RP6 – the bulk earthworks were completed in August 2012 and liner installation is 35% complete. Installation of the liner will be completed in mid to late October. A 500mm HDPE pipeline from RP6 to RP2 has been completed.
TSF to Pit#3 contingency transfer system – the contingency transfer system is designed to deal with a possible PMP rainfall event. A pumping system is being constructed with a 200ML/day transfer capacity. It is expected the project will be completed by late October 2012.
TSF raise – construction of the lift of the clay core to RL60.5m is 55% complete. The project should be completed by mid October. The top of the TSF crest will be 61m. Geophysics and magnetic surveys have been undertaken to provide information on the profile of materials in the TSF. This information will feed into seepage modelling. ERA is also mapping locations of large metallic objects.
Pit#1 wick installation – Wick installation commenced in June. Approximately 6500 wicks were installed as at 26 August with 7700 wicks expected to be installed by September. Wick depth varies from 18 to 39 metres. The water level in Pit#1 is being adjusted as required to support the installation process. Tailings characterisation and CPT testing has been completed to enable up-dated consolidation modelling. The Pit#1 consolidation model is being rerun based on new knowledge. Some resistance has been detected at about the 20m depth and it appears that the tailings are more compressed that first thought.
ENVIRONMENTAL MANAGEMENT
ERA is undertaking a project to remove redundant infrastructure from Ranger, Jabiluka and Djarr Djarr. A feral pig control program is proposed subject to GAC approval which will involve trialling of trapping and ground shooting. It was noted this is a regional issue. The Aboriginal Areas Protection Authority (AAPA) application for Mine Valley Rehabilitation was submitted in June 2011 and is under assessment. This project is likely to be postponed until the 2013 dry season.
DISCUSSION
Ms Beaton asked where the ore intercepted by the exploration drilling would be stored and if any thought has been given to modifying the design of the decline to avoid hitting mineralised ore. Dr Sinclair advised the exploration decline has been designed to avoid the main ore body. Mr Thompson asked if there is a plan to change the exploration decline and associated drilling program to avoid further interceptions of the resource. Dr Sinclair advised that ERA always suspected there could be further ore at depth. He noted there is no need or plan to change the direction of the decline as this would require a further approval process. Mr Thompson asked how any high grade ore intercepted by the decline would be managed under the current approvals. Dr Sinclair restated that ERA is being careful to avoid intercepting the high grade ore body but, should this occur, the ore will be removed and stockpiled separately on site. He also noted that there are shielding and ventilation requirements associated with dealing with high grade ore underground.