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FAQ
The follow frequently asked questions are derived from stakeholder meetings and are regularly updated. If you feel there are questions that need an answer please send the details through the Contact page of this website.
Who gave BHP Billiton the right to explore on land in the Caroona area?
The Minister for Mineral Resources granted Exploration Licence No. 6505 (EL) to Coal Mines Australia Limited, a wholly owned subsidiary of BHP Billiton.
What is a coal exploration licence?
An EL identifies a specific area where the title holder may explore for coal.
How long is the Exploration Licence (EL) granted for?
EL 6505 was originally granted in April 2006 for 5 years. At the end of this time the EL may be renewed subject to conditions.
Has the timeframe for any mine development been extended?
On 1 September 2009 the Minister for Mineral Resources included a new condition in the Special Conditions of the exploration licence. As a consequence the Minister agreed to an appropriate suspension of the deadlines the exploration licence imposes on seeking development approval and commencing any mining development. In granting the extension the New South Wales Government informed BHP Billiton that the extension cannot be used to delay or suspend exploration and other associated environmental studies in the Caroona project area. The Minister has requested that BHP Billiton provide a revised work program for the evaluation of the Caroona project. What is the amendment to the Special Conditions?
The new condition prevents BHP Billiton from applying for a mining lease that includes any of the following in the Caroona Exploration Licence Area:
Where is BHP Billiton likely to mine if they proceed?
After two years of regional scale exploration, BHP Billiton identified areas within the EL for further targeted exploration (August 2008). These areas are generally located under the ridge country of Doona Point (including DoonaStateForest), NicholasRidge and George’s Island. These areas were targeted for further exploration because they represent a significant coal resource that has the potential to be efficiently extracted by underground longwall mining. The company has indicated that exploration drilling to date, and other survey work, suggests the surface topography and landuse on the ridge country have the potential to co-exist with some level of subsidence associated with longwall mining.
How large is the targeted area?
The targeted exploration area represents approximately 126 square kilometers of the 350 square kilometer EL area.
Why does BHP Billiton require such a large EL if they are only interested in the targeted exploration area?
BHP Billiton is required to undertake geological and environmental studies across the whole of the Caroona exploration licence to accumulating sound scientific data.
How does BHP Billiton gain access to land to undertake exploration?
Prior to entry on any land, the company must establish an access agreement with the landholder.
What should be included as part of the access agreement?
The access agreement contains any agreed conditions of entry and may include such things as:
Where can I find out more information on the coal exploration licence and my rights as a landholder?
The Department of Industry and Investment website, www.dpi.nsw.gov.au/minerals/titles has more information
What does coal exploration in the Caroona area involve?
Coal exploration will involve a further 3 to 4 years of exploration drilling along with environmental, social, economic and technical studies. By completing the exploration process, BHP Billiton will know more about ground water systems and where mining is technically and environmentally feasible. This will precede any future application for development consent.
Who ensures the explorer obeys the rules?
Department of Industry and Investment monitors exploration activities and site rehabilitation. More information can be found on the Department’s website, www.dpi.nsw.gov.au/minerals
How many audits has the Department of Industry and Investment conducted in the Caroona project since granting the EL?
Six environmental assessments have been conducted. The first assessment was in response to the company submitting its Environmental Management Plan. Subsequently there have been two compliance inspections, two complaint investigations and a compliance audit. In each of the compliance inspections and audits no non-compliances were identified. In regard to the complaint investigations, communications were undertaken with both the complainant and the EL holder, the complaint was documented and the complaint resolved.
What assessments do compliance audits undertake?
Compliance audits assess the title holders compliance with environmental legislation and regulatory requirements. The Department of Industry & Investment can undertake compliance audits on any mining activity at any site that it regulates. The Department of Industry & Investment follows compliance audit procedures and protocols consistent with standard audit practices. The inspections focus on priority environmental issues. Activities targeted and the timing is chosen by assessing major environmental and community concerns alongside Department of Industry & Investment's corporate objectives and strategies. Criteria considered include the likelihood of environmental harm to human health and the environment from an activity, the nature of hazards associated with chemicals used, the complexity of the activity, emissions and wastes from the activity, gaps in understanding of the activity, environmental performance, location of the activity, community concern, the opportunity to make significant environmental gains in relation to the activity.
Are the results of the audits publicly available?
The findings of each audit and follow-up action program based on the audit findings are reported in a compliance audit report which is sent to the audited titleholder. When the compliance audit is undertaken following a complaint the complainant receives advice about whether or not the activities audited were compliant. Section 365 of the Mining Act 1992 restricts the release of information except under certain circumstances. This limits the amount of information the department can release without the consent of the titleholder.
How can I be assured exploration drilling won’t damage the aquifers in the Caroona area?
The CCC has appointed Dr Wendy Timms of the University of NSW to provide independent expert advice to the Committee. Dr Timms currently leads the groundwater consulting team at the UNSW-Water Research Laboratory. She has extensive knowledge on the surface and groundwater status of the Liverpool Plains and has worked with Landcare groups, irrigators and water users for many years.
Dr Timms provides technical guidance to the CCC by peer reviewing the hydrogeological studies and methodologies conducted by BHP Billiton.
Dr Timms has informed the Committee “there was no hydrogeological evidence of exploration drilling for coal causing damage to aquifers.”
How many water monitoring sites has BHP completed within the “target area”?
Seventeen new groundwater monitoring sites have been established within the area covered by EL6505. Nine of these are located within what was defined as the “Target Area” in August 2008 Interim Report to Stakeholders.
At fifteen of the seventeen sites BHP Billiton contractors have installed twenty monitoring bores (standpipe piezometers), eleven in the alluvium, two in coal seams, two in the Clare Sandstone and five in regolith. In addition there are fifty nine vibrating wire piezometers installed at nine of the seventeen sites monitoring various coal seam aquifers and the interburden.
As at July 2009 a further three groundwater monitoring sites were under construction.
Three other sites had all necessary approvals and will be constructed in the next few months.
Four other sites are awaiting final approval from the Department of Water & Energy (DWE).
Access to another two water monitoring sites was granted by the Arbitrator in January 2009. The landholders appealed the arbitrators’ decision to the Wardens’ Court. A final decision from the Mining Warden on this matter is still pending.
Where are these monitoring sites located?
Groundwater monitoring sites are located across the area covered by EL6505. Initial site locations were determined by the project hydrogeologist and reviewed by Dr Wendy Timms. Dr Timms report was presented to the Community Consultative Committee in April 2007. Since then additional sites have been identified and constructed. The sites are located on both public and private lands. Due to instances of vandalism to the monitoring equipment and in the interests of privacy for the landholders, BHP Billiton has not published the exact location of all sites however the company has committed to making this information along with the raw data available to the independent water study when it is established, on the understanding that the exact locations of the boreholes will not be publicly disclosed.
How many monitoring bores are capable of water quality monitoring?
BHP Billiton contractors are routinely collecting groundwater samples from twenty three sites (seventeen CCP and six (DWE). CCP collects groundwater samples from the twenty monitoring bores at the seventeen CCP sites and from thirteen monitoring bores at the six DWE sites, which is a total of thirty three groundwater samples. This number will increase as more sites are established and also it does not include groundwater samples collected and analysed from more than thirty one private bores. These groundwater bores are sampled before and after exploration drilling in the area.
Does contamination occur through drilling fluids and contaminates released from the deep strata during drilling?
BHP Billiton does not accept that groundwater has or is being contaminated by drilling fluids or from the “deep strata” due to the exploration program that it is carrying out.
Independent expert assessment by Government experts and other specialists has not found any evidence to support the allegation of contamination by drilling fluids. The Department of Industry and Investment; the independent hydrogeologist engaged by the Caroona Consultative Committee; and expert witnesses appearing before the Mining Warden have all drawn this conclusion based on their reviews of the drilling practices.
Water quality samples are taken and tested before and after drilling from landholder bores within 100 metres of an exploration drill site. To date, no change in water quality has been detected, as predicted by independent hydrogeologists. The water quality data is provided to the bore owners.
Drilling has been undertaken in the Caroona region for more than 100 years by farmers, the Department of Industry & Investment and mining companies with a total of more than 500 holes having been drilled for a range of purposes. At least 220 holes have been drilled through bedrock (mostly exploration holes from State Government agencies and BHP Billiton’s exploration work) and there are more than 370 drill holes on the floodplain, mostly irrigation bores drilled by landholders.
Are the test results available and if not why not?
BHP Billiton through its contractors routinely provide copies of the raw data collected from water monitoring sites to the landholder if requested, eg each Council is being provided with the data for water monitoring sites established on land they control. It is then up to the Council to decide what they do with this information.
EL 6505 title condition Clause 57 states: “The licence holder shall make data relating to completed hydrological studies carried out during the exploration and feasibility stage available through the Community Consultative Committee” As data must be collected over an extended period of time, BHP Billiton is still perhaps a year or so away from having a completed hydrological study to share with the CCC.
BHP Billiton has arranged an interim progress report be prepared by environmental and hydrogeological specialists and presented to the CCC. (The presentation is available in another section on the website).
How many holes in the target area have been “in situ” permeability tested in non alluvial aquifers?
Eight boreholes within the “target area” have been tested yielding a total of one hundred and sixty nine in-situ permeability tests. These tests were undertaken in the coal seams, Clare sandstone, and overburden and interburden material.
If aquifers are sealed during drilling, how are they unsealed or flushed to undertake accurate in situ horizontal or vertical permeability testing?
If the stratum is to be permanently cased as in the case of drilling through alluvium, then the required tests and logging of that section of strata are completed before the casing is installed. Where the strata is sealed with drillers mud during the normal process of drilling then the drillers mud is flushed out in accordance with the manufacturers recommendations with a weak solution of water and bleach (sodium hypochlorite) before the permeability test.
Where are all the dust collectors and monitors located ?
There are currently eight dust gauges located within EL 6505 including two high volume samplers. These gauges are collecting baseline data of the Caroona area. The locations were chosen by Holmes Air Sciences who specialize in air monitoring design and data analysis. The sites are located on both public and private lands. Due to instances of vandalism and in the interest of privacy for the landholders, their exact location has not been published. This information will however be published as part of the Environmental Assessment report.
Where are all the noise loggers located?
BHP Billtion intend to install fixed noise loggers. This will occur later in the Project and the information will be shared and discussed with the CCC when it is available.
How many sites in the drill hole plan have BHP Billiton’s Environmental Consultants (Umwelt) physically examined prior to commencement of drilling?
100% of sites drilled have been inspected by Umwelt before drilling.
Are Pre Exploration Checklists at drill sites utilized and are they publicly available?
Yes “Pre Exploration Checklist” are utilised by the project and an example of this is included as appendix 2 in the Exploration Environmental Management Plan (the EEMP can be viewed on this website). The Pre-Exploration Checklists are part of the quality assurance process for exploration drilling. They are internal documents and are not publicly available.
At what stage is the licence requirement to investigate the potential of a regional independent power plant?
BHP Billiton has told the CCC that they will not be investigating the specific merits of a local coal fired power station and they are not in the business of operating coal fired power stations.
BHP Billiton will undertake sampling and analysis of coal cores to assess if the coal within EL6505 is suitable for domestic and/or export markets.
Where are the early options for power line routes for bringing high voltage power to the target area?
At this stage power requirements have not been determined. Power requirements will be one of many important considerations as progressed with the company’s assessments.
What commitment has BHP Billiton made in regard to the independent water study?
BHP Billiton has indicated they support the water study and are pleased that detailed planning for the study is now progressing. BHP Billiton has welcomed the announcement by Minister Macdonald of the appointment of Mr. Mal Peters, former President of the NSW Farmers Association, as the independent chair of the Ministerial Oversight Committee for the initial Namoi Water Catchment Study.
BHP Billiton has announced it is committed to providing a share of the funding for the independent water study and that it will incorporate the findings of the water study as part of any environmental assessment it undertakes. BHP Billiton has indicated it is already collecting data that will be provided to the study.
How will the $5 million community fund be spent?
BHP Billiton has established the Caroona Coal Project Community Fund which is available to benefit community members of both the Gunnedah and Liverpool Plains Shires and is an annual investment of $1m for up to five years.
Late in 2006 the Caroona Coal Project, in conjunction with Coakes Consulting, engaged the assistance of key community representatives across a range of sectors to determine community needs and priority areas for investment.
The most common areas of need raised during consultation were:
Following community consultation, BHP Billiton Caroona Coal Project used the community needs analysis to develop Community Fund Focus Areas which would deliver tangible community outcomes.
More information can be found at http://www.bhpbilliton.com/bb/ourBusinesses/energyCoal/caroonaCoalProject/caroonaCoalProjectCommunityFund.jsp
What are the benefits to the local community should a mine go ahead?
Whilst this is in the early stages of the process the potential benefits from the development of a new coal mine generally include;
The broader community receives benefits through additional increased taxes and royalties. Shareholders expect to receive a return on their investment.
The potential economic benefits of any new coal mine are assessed against the risks of significant environmental or social impacts.
When are they likely to commence mining?
BHP Billiton is progressing with exploration and feasibility studies which are envisaged to take around 4 to 5 years.
An exploration licence does not permit mining nor does it automatically follow that a licence holder will be permitted to mine in the future. There is a lot of work required before a consideration can be made to progress with the project. If the exploration program identifies a deposit of an economic size and grade, the licence holder has to obtain development consent and a mining lease before it can start mining. The current indicative timeframe for commencement of production, should development consent be granted, is approximately 2014.
What will be considered prior to an application for development consent?
When the company makes its application for development consent it also has to submit an Environmental Assessment. It must cover such matters as
BHP Billiton will need to demonstrate that mining can co-exist with other industries in the region such as farming.
Will the mine be open cut or underground?
BHP Billiton and the Government have agreed to include a Special Condition in BHP Billiton’s Exploration Licence, preventing BHP Billiton from apply for a mining lease that includes any of the following in the Caroona Exploration Licence Area:
Who will approve any future mine proposal?
The Minister for Planning is the approval authority for any future mine proposal under the Environmental Planning and Assessment Act 1979
If the mine is approved how many jobs are there likely to be?
As it is the very early stages of the exploration program, BHP Billiton cannot be definitive about the operational scale of a potential mining development however it is estimated to create between 500 and 800 new jobs for the area. There will also be a product and service multiplier effect with the flow on to mining associated industries.
What type of skills will be required?
If a mining development proves to be environmentally and economically feasible and proceeds through the development application process and approval, the required skills will vary depending on the final type mining method chosen.
Although the project is in the very early stages of exploration, BHP Billiton expects from preliminary work, that most of the coal would be extracted by underground methods. A typical underground operation would require skills in various engineering and environmental fields, geology, commerce, IT, human resources, OH&S, accounting and administration. Operational staff would include plant and mining operators, electricians, mechanical and maintenance staff such as electrical and diesel fitters.
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