MAC-ENC-PRO-059

SITE WATER BALANCE

Document Owner
Donna McLaughlin, Environmental Superintendent

Document Approver
Julie McNaughton, Environment & Community Manager

Version No Date Published Details

Draft 1 30 June 2011 Draft submitted to DPI for comment
Draft 2 16 August 2012 Draft incorporating DPI comments
Final 20 August 2012 Approved by the Department of Planning & Infrastructure on
20/8/2012.
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Contents
1.0 Introduction ..................................................................................................... 3
1.1. Objectives .................................................................................................. 3
1.2. Environmental Management System .............................................................. 3
1.3. Consultation Process ...................................................................................... 3
2.0 Water Management System ........................................................................... 5
2.1 System Description/Overview ......................................................................... 5
2.2 Water Balance Model ..................................................................................... 9
2.2.1 Overview......................................................................................................... 9
2.2.2 Recent Updates ............................................................................................ 10
2.2.3 Model Results ............................................................................................... 10
3.0 Water Sources and Security ......................................................................... 13
3.1 Hunter River ................................................................................................ 13
3.2 Runoff and Groundwater .............................................................................. 13
3.3 CHPP Recycle .............................................................................................. 14
3.4 Muswellbrook Treated Effluent and Town Water .......................................... 14
4.0 Water Uses ................................................................................................... 15
5.0 Water Management ...................................................................................... 15
6.0 Off-site Transfers .......................................................................................... 16
7.0 Measures to Minimise Water use.................................................................. 17
8.0 References ................................................................................................... 18
8.1 External Documents ..................................................................................... 18
8.2 Mt Arthur Coal Internal EMS Documents ...................................................... 18
Appendix 1: Correspondence Records.................................................................... 19

Figures
Figure 1: Mount Arthur Coal Site Locality .................................................................. 4
Figure 2: Mine Layout................................................................................................ 7
Figure 3: Water Management Schematic .................................................................. 8
Figure 4: Water Balance Model Forecast Change in Water Stored ......................... 12

Tables
Table 1: Summary of Simulated Annual Inflows and Outflows (ML/annum) ............ 11
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1.0 Introduction

Hunter Valley Energy Coal Pty Ltd operates the Mt Arthur Coal Complex which
consists of approved open cut and underground mining operations, a rail loop and
associated rail loading facilities. The operations are located in the Upper Hunter
Valley, NSW approximately five kilometres south west of Muswellbrook, refer to
Figure 1.

Project Approvals and Environmental Protection Licences (EPLs) associated with Mt

Arthur Coal mining operations are provided in Appendix 1 of the MAC-ENC-MTP-034
Site Water Management Plan. The most recent Project Approval relates to
development application number 09_0062, and was approved on 24 September
2010.

This Site Water Balance (SWB) has been prepared to manage both surface water
and groundwater in accordance with the Department of Planning and Infrastructure
(DoPI), NSW Office of Water (NOW) and the NSW Office of Environment and
Heritage (OEH) requirements.

This document details:

A predictive water balance model, developed to aid site water management

planning and minimise water use; and
A detailed description of the site water management system and the water
balance model.

1.1. Objectives

The objective of this SWB is to provide a predictive water balance model which will
aid in site water management planning. The SWB will also assist in comparisons of
the actual site water balance against the predicted site water balance.

1.2. Environmental Management System

Mt Arthur Coal has a firm commitment to minimising the impact of its operations on
the local environment and community, and has a comprehensive Environmental
Management System (EMS) in place to fulfil this commitment. This SWB is a
component of the Mt Arthur Coal EMS.

1.3. Consultation Process

This SWB has been prepared in consultation with OEH, NOW and DoPI.
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Figure 1: Mount Arthur Coal Site Locality

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2.0 Water Management System

2.1 System Description/Overview

The Mt Arthur Coal water management system includes mine water collected from
runoff from the mine site, water recycled from the Coal Handling and Processing
Plant (CHPP), supplies drawn from water imported under licence to the mine from
the Hunter River, treated effluent from Muswellbrook and fresh water for the potable
water supply system (drawn from Muswellbrook town water).

Error! Reference source not found.1 shows surface water features in the proximity
of the mine, while Error! Reference source not found.2 provides an illustration of
the mine water management system in schematic form, with all major storages and
inter-storage linkages.

Water supply for the CHPP and other non-potable uses on site is obtained from a
network of on-site storages (dams and open cut pit voids), which provide
containment for mine water, which includes runoff and seepage from overburden
emplacement areas and runoff from other areas disturbed by the operations, in
addition to water sourced from the Hunter River and treated effluent from the local
council. The total capacity of the existing on-site water storages totals approximately
13,500 ML. The CHPP, which is the dominant user of water on site, incorporates a
tailings thickener and water recovery system to facilitate water recycling. The other
significant water use is dust suppression on haul roads and coal stockpile areas.
The main CHPP water supply storage is the Bayswater Main Dam. Three truck fill
storages provide water for haul road dust suppression (Paradise, Eggy’s and
McDonalds fill points).

The network of on-site storages separates undisturbed area runoff from mine water
catchment areas. Runoff from areas disturbed by mining is diverted into on-site
storages or to active open cuts. On-site storages are used as priority sources of
water for the CHPP and dust suppression. Upslope diversions are used to divert
runoff from undisturbed areas around storages. Groundwater seepage to active
open cuts is dewatered, along with runoff, to on-site storages. Runoff from haul
roads and open cut pre-strip areas is either directed to on-site storages or is treated
in sediment traps. Runoff from the CHPP area collects in an adjacent sediment
pond which overflows to the CHPP dirty water dam, from where it is recycled for site
use. Runoff from the industrial area, workshops and administration area collects in a
settling dam which is periodically dewatered to a nearby mine water storage dam for
site re-use. Treated effluent pumped from Muswellbrook is directed through a
wetland before flowing into the Bayswater Main Dam. Domestic wastewater is
collected and treated in an on-site package plant, prior to being directed to a wetland
which then flows into the Bayswater Main Dam.

Licensed extraction from the Hunter River occurs from a pumping station on the
Hunter River to the Environmental Dam, with transfer to other on-site storages as
required (refer Figure 1 and Figure 2 and Section 3.1).
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Any site excess water is transferred from the Bayswater Main Dam to the
Environmental Dam from where controlled releases to the Hunter River may occur
under the Hunter River Salinity Trading Scheme (HRSTS) (refer Section 6.0).

The water management system will continue to evolve over time in parallel with mine
development. The successful performance of the water management system will
involve the combination of adequate water infrastructure and the necessary
management and monitoring procedures in place to achieve the performance
objectives.

The broad objectives of the system are:

1. To maintain a low risk of uncontrolled discharge occurring from the process

water circuit (CHPP) or mine water systems over the Project life.

2. To minimise the need to export water and salt to the Hunter River by
maximising re-use on site.

3. To minimise the need to extract water from the Hunter River by optimising the
reuse and recycling of water on site and by maximising the use of
Muswellbrook treated effluent.

4. To minimise risks of disruption to mining operations by efficient mine

dewatering.

5. To ensure that effective control over emission of airborne particulates is not

interrupted due to lack of water by maintaining a reliable water supply.

6. To ensure uninterrupted operation of the CHPP by maintaining a reliable

water supply.

Mt Arthur Coal will be guided in its decisions on sourcing or discharging water using
the site water balance model (refer Section 2.2) which enables prediction of future
water supply security and risks of excess open cut pit water.
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Figure 2: Mine Layout

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Figure 3: Water Management Schematic

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2.2 Water Balance Model

2.2.1 Overview

A predictive site water balance model has been developed using the GoldSim©
modelling software. The model has been integrated with output from the NOW
Integrated Quantity Quality Model (IQQM) of the Hunter River (with respect to
available water determinations – refer Section 4.1). The structure of the model is
generally as per the schematic of the water management system in Error!
Reference source not found.2.

The water balance model can be used to assess the capacity of the water
management system to achieve its operational objectives. Modelling has involved
simulating the dynamic water balance of the storage components in the water
management system over a forward planning period under the variable climatic
conditions that may be encountered. The water balance model developed for the
project simulates all the inflows, outflows, transfers and changes in storage of water
on site on a daily continuous basis from 2010 to 2022.

The water balance model uses information regarding water sources and security
(refer Section 3.0), water uses (refer Section 4.0), water management (refer Sections
2.1 and 5.0), water supply (refer Section 5.0), and offsite water transfers (refer
Section 6.0) in order to predict future water supply reliability. A reliable water supply
is crucial to the continued operation of the mine.

The model uses a series of “normal” operating trigger volumes in the water storage
dams and voids. In general, when the volume in a storage rises above the high
trigger volume, the model attempts to pump water to other storages or (ultimately) to
the Environmental Dam for release. When the volume in the Bayswater Main Dam,
the Environmental Dam and the truck fill dams falls below a low trigger volume, the
model attempts to pump water to these key storages from other storages and from
licensed extraction from the Hunter River (in the case of the Environmental Dam).

The model operates on a sub-daily time-step (8 hourly) and was set up to run over a
large number of different daily rainfall sequences compiled from the 118-year
historical record. For the 13-year water balance simulation, 118 different climatic
sequences were generated. The first sequence spans the first 13 years of data, the
second years 2 to 14, the third years 3 to 15, and so on. The 118 sequences
therefore represent 106 different possible climatic scenarios based on historical data.
Model results can be expressed as averages, extremes (maximum or minimum) or at
different risk levels (e.g. 95 percentile or 5 percentile) over all climatic scenarios.

Catchment areas reporting to individual water storages have been estimated from
the most recently available (September 2010) site contour plan and future predicted
mine snapshot plans (the model linearly interpolates catchment areas between given
dates). The total contributing catchment area varies from 38.8km2 in 2010 to
50.9km2 in 2022.
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The Australian Water Balance Model (AWBM) was used to simulate runoff from
rainfall on the various catchments and landforms across the mine. The AWBM is a
nationally-recognised catchment-scale water balance model that estimates runoff
from rainfall and evaporation. Six different sub-catchment types were modelled
using the AWBM, representing different types of surface disturbance. Sub-
catchment AWBM parameters were taken from model calibrations undertaken for a
nearby stream, while parameters for the remaining sub-catchments were taken from
literature-based guideline values or experience with similar projects.

Future groundwater inflow estimates to mine open cuts were taken from the
Groundwater Impact Assessment which forms part of the 2009 Environmental
Assessment (EA).

2.2.2 Recent Updates

The model was first developed as part of the Surface water impact assessment for
the Mt Arthur Coal Consolidation Project Environmental Assessment in 2009.
Recent changes to the mine water management system such as revised pump and
pipeline locations and directions resulted in the model being updated for this SWB.
The model will be reviewed every two years and, if required, updated to reflect
operational or water management changes.

2.2.3 Model Results

Results of modelling indicate a supply reliability of 99% - i.e. 99% of CHPP demand
can be supplied - averaged over all climatic sequences. The lowest CHPP reliability
simulated in any 13-year climatic sequence was 86%. Modelling predicted no CHPP
supply shortfall in 101 out of 118 climatic sequences.

Predicted total stored water volume on site over the simulation period is graphically
presented in Figure 4.

The average predicted water balance (averaged over the simulation period) for
median, wet (90 percentile) and dry (10 percentile) rainfall sequences is summarised
in Error! Reference source not found.1.
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Table 1: Summary of Simulated Annual Inflows and Outflows (ML/annum)

Flows 10%’ile Rainfall Median Rainfall 90%’ile Rainfall
Sequence (Dry) Sequence Sequence (Wet)
Inflows
Catchment Runoff 5925 6869 7264
Groundwater 666 661 655
Hunter River 1642 858 611
Licensed Extraction
Muswellbrook 983 983 984
Treated Effluent
Tailings Water 704 704 704
Outflows
CHPP 5559 5559 5559
Truckfill (Dust 1371 1359 1359
Suppression)
Evaporation 2201 2428 2589
Release to Hunter 191 147 204
River
Coal Loader 24 24 24
Industrial Area 636 636 636

Results indicate that system inflows are dominated by catchment runoff with a much
smaller proportion of system inflow provided by licensed extraction from the Hunter
River. The main system outflow comprises make-up supply to the CHPP.
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Figure 4: Water Balance Model Forecast Change in Water Stored

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3.0 Water Sources and Security

The water management system relies on water obtained from a number of different
sources as follows:
site runoff and groundwater seepage captured within the water management
system;
licensed extraction from the Hunter River;
water recycling from the CHPP (including tailings water);
treated effluent from Muswellbrook; and
fresh water from the potable water supply system (drawn from Muswellbrook
town water).

These sources are described in more detail below.

3.1 Hunter River

Historically, the majority of off-site make-up supplies have been obtained from
licensed extraction from the Hunter River. Mt Arthur Coal presently holds both
General Security Entitlements (GSE) and High Security Entitlements (HSE). The
volume of water that can be extracted from the Hunter River by licence holders is
limited by Available Water Determinations (AWDs) which are announced by the
NOW on the 1st July each year (the start of the water year) and then periodically
thereafter. At 100% AWD, the full licence volume may be extracted by a licensee in
that water year. Historically, during time of drought, AWDs may fall to 0% for GSE
and 75% for HSE. However, these AWDs refer only to regulated river flow (i.e. water
released from Glenbawn Dam when ordered by the licensee). During periods of
naturally high river flow, the NOW may announce ‘off-allocation’ conditions during
which AWDs are temporarily suspended and licensees may extract (at a limited rate
per day) up to their licensed volume.

Water is drawn by Mt Arthur Coal from a pump station on the Hunter River in the
north of the Project Area and pumped at a rate of up to 16 megalitres per day (ML/d)
to the Environmental Dam. Mt Arthur Coal currently holds 3,195 ML/year GSE and
501 ML/year HSE.

3.2 Runoff and Groundwater

Runoff from areas disturbed by mining and groundwater seepage to open cut pits
report to the network of on-site storages (dams and open cut pit voids) – refer Figure
3. See Table 2 for a summary of approvals for open cut interception of groundwater.

These provide secure containment for runoff from areas disturbed by the operations,
seepage from overburden emplacement areas and groundwater with elevated
salinity which reports to open cuts. The catchment area of the existing water
management system totals approximately 31 km2. Runoff from haul roads and open
cut pre-strip areas is either directed to on-site storages or to sediment dams and off
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site (refer ESCP). Runoff from upslope undisturbed areas is diverted where possible
around mine operations. Runoff from fully rehabilitated areas is likewise, where
possible, directed, via sediment dams, off site.

A recent Sub-Lease agreement between Anglo Coal (Drayton Mine) and HVEC (Mt
Arthur Coal) details the conditions by which water can be stored and harvested from
the Drayton Void.

Table 2: Summary of approvals for open cut interception of groundwater (Water

Management Act 2000)
Licence Licence Type Volume Licence
Number (MLp.a.) Expiry
WAL 917 Water Access Licence – High 700 Perpetuity
Security
WAL 918 Water Access Licence – General 2510 Perpetuity
Security
WAL1296 Water Access Licence - 152.6 Perpetuity
Supplementary
20WA201128 Works Approval - 30/6/2017
20WA203496 Works Approval - 01/5/2017

3.3 CHPP Recycle

The CHPP is the dominant user of water on site. In order to ensure water recycling
is maximised, a water recovery system has been implemented. It incorporates a fine
rejects (tailings) thickener such that clarified water is recovered from the tailings prior
to pumping to a tailings storage facility (West Pit tailings storage).

Water pumped with the tailings infiltrates into adjacent mine spoil and direct recovery
is not possible, although it is believed that this water infiltrates into the Drayton Void,
from where Mt Arthur Coal sources water (refer Section 3.2 above).

A staged expansion of the tailings storage facility at Mt Arthur Coal is currently

underway, with construction on Stage 1 having commenced in 2012. , The expanded
emplacement will incorporate direct recovery of tailings water with water balance
model calculations estimating that up to 2.5 ML/d of water (liberated from settling
tailings) may be available.

3.4 Muswellbrook Treated Effluent and Town Water

Mt Arthur Coal has secured access to treated effluent from Muswellbrook Shire
Council at a rate of 985 ML/year until 1 July 2019. Treated effluent is passed
through a wetland for final polishing prior to entering the Mt Arthur Coal water
management system. Potable water is also sourced from the Muswellbrook Shire
Council mains supply.
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4.0 Water Uses

Water is used to wash coal in the CHPP, for dust suppression on haul roads and
hardstand areas, for dust control sprays in the ROM, product coal and export coal
stockpile areas and for the industrial area, principally for wash down of mobile plants.
Some water may also be used for irrigating vegetation establishment areas, fire
fighting and other minor non-potable uses.

The demand for dust suppression will vary with climatic conditions and with the
length of haul roads and area of hardstand that will need to be watered, which will
change (increase and decrease) as the project expands. Similarly the CHPP water
demand will vary in accordance with coal washing rates.

Future CHPP coal washing rates are predicted to increase in line with production.
Future estimated CHPP makeup demand varies from 9.1 ML/d to 18.3 ML/d.

Based on recorded usage, the estimated demand for haul road dust suppression
water averages 1,359 ML/annum (3.7 ML/d). This varies seasonally, peaking in
summer months. The introduction of a dust suppressant product will not reduce
water consumption but may add to the effectiveness of dust control measures at Mt
Arthur Coal.

Also based on recorded usage, approximately 1.7 ML/d is used in the industrial
area/workshops, with the majority of this water being used for vehicle washing. Most
of this water (an estimated 90%) is recycled back to the West Cut Fill Dam (refer
Figure 1 and Figure 2). A small amount of water is used by the export coal loader
(estimated at 2 ML/month) for dust suppression and other miscellaneous uses.

A small volume of potable water sourced from the Muswellbrook town water supply
is used for bathhouse and general potable consumption of site personnel
(24.7ML/annum).

5.0 Water Management

Water management for the project will continue to be based on adherence to well-
established, best water management practices in the Australian mining industry.

The management of water on site is dependent on quality, generation rate and the
inherent capacity for it to be re-used and/or recycled. The site water balance model
is used by Mt Arthur Coal personnel to maintain an understanding of water
requirements and possible impacts on water supply due to different climatic
sequences and fluctuations in coal washing rates.

Abnormally wet periods lead to an excess of water being generated on site. When
the volume of water being held on site is in excess of that required to ensure water
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supply security, and there is an increased risk of disruption to mining as a result of

excess water being held in open cut pits, water is transferred to the Environmental
Dam with a view to controlled release under the HRSTS at the next opportunity.
Conversely, when the volume of water being held on site falls below that required to
ensure acceptable water supply security, water may be sourced by licensed
extraction from the Hunter River to the Environmental Dam.

The available water sources, the relatively large surface catchment area and storage
capacity for mine water have provided Mt Arthur Coal with significant flexibility to
manage its water system over a wide range of operational and climatic conditions.

6.0 Off-site Transfers

As indicated in Section 5.0, excess water from the site is transferred off-site via
controlled release from the Environmental Dam to the Hunter River under the
HRSTS.

The HRSTS was established to manage salinity discharges to the Hunter, such that
salt concentrations would be held below irrigation and environmental standards. The
scheme is managed by the OEH under a statutory regulation attached to the
Protection of Environment Operations Act 1997 which came into effect on 1
December 2002.
The scheme attempts to achieve these objectives by prohibiting releases of saline
waters during periods of low flow and controlling releases of saline water during
periods of high flow such that specific salinity targets at various points in the river are
not exceeded. The operational parameters used to regulate the scheme are advised
on a daily basis for each of the various sections of the Hunter River.

Participants in the scheme are issued with tradable discharge credits. Each credit
entitles the holder to a 0.1% share of the available salt discharge capacity
announced during high flow periods. The amount of saline water that may be
discharged from a given discharge licence holder is determined by reference to the
salinity of the discharge waters, the river flow, the number of credits held and any
overriding limit that may be applied as a condition of the licence. Mt Arthur Coal
presently holds 16 credits.

To ensure compliance with HRSTS guidelines, Mt Arthur Coal are in the process of
producing a “Discharge Water Operational Procedure” which will be reviewed on an
annual basis by the site Environmental Coordinator. The procedure will contain a
number of steps through which discharge can occur and includes details of reporting
and monitoring required during the process. A summary of the discharge procedure
is as follows:
NSW State Water notifies Mt Arthur Coal by SMS (or facsimile) of an
impending opportunity to discharge – a “River Register” which lists the licence
holders, the total tonnage of salt that may be discharged, and the start and
finish times of the discharge.
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If discharge is required from site, the Environment Coordinator determines the

flow type (i.e. high flow or flood flow). The Environment Coordinator must
then determine the daily allowable salt load and the daily discharge volume
from the Environmental Dam based on the Electrical Conductivity (EC) of the
stored water and the lag time of flow reaching the Hunter River via Whites
Creek. This information is sent to OEH. The pH of the water and the TSS is
also tested. Water must have a pH range of 6.5-9.0 and the TSS must not be
greater than 120mg/L.
The valves are opened and the discharge is continuously monitored for
volume and EC using telemetry. Both Mt Arthur Coal and OEH monitor data
during discharges.

Each discharge event is recorded with monthly volumes and salt load data entered
into a spreadsheet. An annual report of activity under the HRSTS is forwarded to
OEH.

7.0 Measures to Minimise Water use

A number of trials have been conducted in order to examine possible ways in which
use of water for dust suppression can be reduced. A RST dust suppressant and red
rock sheeting is used across the site on main haul roads.

As described in Section 2.3, tailings water is not presently directly reclaimed from the
West Pit tailings storage. A staged expansion of the tailings storage facility is
currently underway, with Stage 1 currently in construction (2012). Direct recovery of
tailings water is planned as part of this staged expansion.

Pumping and reticulation infrastructure is planned and budgeted as part of growth at

Mt Arthur Coal, which includes the purchase of additional high head pumps and
pipelines to assist pit dewatering and transfer across site from non-active voids. This
will enable transfer of water at increased rates to key consumption points (i.e. CHPP
and water cart fill points) and minimise the need, dependent on climatic conditions,
to source water from the Hunter River.

As part of growth other water saving initiatives, including pipe head flocculation and
tailings control, will continue to be investigated and incorporated where justified.
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8.0 References

8.1 External Documents

Hansen Bailey (2009), Mt Arthur Coal Consolidation Project Environmental

Assessment. Prepared for Hunter Valley Energy Coal Pty Ltd.

AGE (2009). “Mt Arthur Coal Consolidation Project Environmental Assessment –

Appendix N Groundwater Impact Assessment”. Report prepared for Hunter Valley
Energy Coal Pty Ltd November.

Gilbert and Associates (2009). “Mt Arthur Coal Consolidation Project Environmental
Assessment – Appendix M Surface Water Assessment”. Report prepared for Hunter
Valley Energy Coal Pty Ltd November.

Minerals Council of Australia (1997), “Mine Site Water Management Handbook”

Protection of Environment Operations (Hunter River Salinity Trading Scheme)
Regulation 2002

URS Australia Pty Limited (2000) The Mount Arthur North Coal Project,
Environmental Impact Statement. Prepared for Coal Operations Australia Limited.

8.2 Mt Arthur Coal Internal EMS Documents

Current Mt Arthur Coal EMS Documents

MAC-ENC-MTP-034 Site Water Management Plan
MAC-ENC-PRO-042 Community and Environmental Incident Response and
Reporting
MAC-ENC-PRO-060 Erosion and Sediment Control Plan
MAC-ENC-PRO-061 Surface Water Monitoring Program
MAC-ENC-PRO-062 Groundwater Monitoring Program
MAC-ENC-PRO-063 Surface and Ground Water Response Plan
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Appendix 1: Correspondence Records

Telephone correspondence on 16 March 2011, 3.38pm

Steve Perkins from Mt Arthur Coal contacted Steve Clair from the Department of
Environment, Climate Change and Water (now Office of Environment and Heritage)
on 16 March 2011 and asked if Mt Arthur Coal could meet with him to review
Management Plans. Steve Clair advised that the Department of Environment,
Climate Change and Water does not provide comment on Management Plans.
Steve Clair informed Steve Perkins that he could send the Management Plans to him
for review, but that he would not submit any comments on the Management Plans.
Email correspondence on 25 March 2011, 4.28pm
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Email correspondence on 25 March 2011, 4.47pm