Ulan News
Ulan Coal Community Newsletter
October 2011, Issue no. 8
Message from the General Manager
We have been a hive
of activity since our
last newsletter. During
2010/2011, Xstrata
continued to support the
local community through its
Corporate Social Involvement
(CSI) program. Last year,
Xstrata Coal committed $12
million across NSW and QLD
to assist a variety of partners
Dan Clifford, General Manager.
in the areas of health, arts
and culture, education and enterprise, environment and the
community. On 14 March 2011, Xstrata Coal announced
a commitment of $18 million to support more than 50
partners across local and regional NSW and QLD this year.
In April 2011 UCML paid Mid Western Regional Council
$2.1M (out of a total commitment of $4.525M) for
community infrastructure as part of the Voluntary Planning
Agreement that was negotiated with council as part of the
new Project Approval. In addition to this funding UCML
has also donated $75,000 to the local community this year
through our Community Support Program. In 2012 we will
double this, with $150,000 earmarked for the region, to
assist local schools as well as various charities
and community organisations.
In March this year UCML formed a new Community
Consultative Committee (CCC), in accordance with the
new Project Approval requirements. I’d like to take this
opportunity to welcome our new members – I look
forward to working with the new CCC and welcome their
constructive feedback and input into our mining operations.
Representing UCML at the 2010 “Coal Day” provided me
with an insight into the main issues and concerns of the
local people with regards to living with three coal mines
in the area. I look forward to my continued involvement
this year, as well as working with the local community
and adjacent mines to address the community’s concerns,
particularly with respect to the cumulative effects of mining
in the Mudgee region.
In August 2010, Ulan Coal Mines Ltd (UCML) received
approval from the Xstrata Board to invest $1.1billion to
develop the Ulan West Underground Mine, as part of the
Ulan Continued Operations Project. The Project was formally
approved by the NSW Minister of Planning on 15 November
2010 under Part 3A of the Environmental Planning and
Assessment Act 1979 (EP&A Act). This Project Approval (PA
08_0184) allows UCML to undertake continued operations
for the next 21 years under a single, modern approval
(following the surrender of numerous other development
consents, many dating back to the 1980’s).
In December 2010 the excavation of the Ulan West Box
Cut commenced, to allow access to the proposed Ulan
West underground mine. Underground mining activities are
proposed to commence in February 2012 once construction
works associated with the Box Cut have progressed
sufficiently. We have also completed construction of a new
water treatment facility and main ventilation shaft and fan.
Our open cut rehabilitation areas have significantly
improved, with the capping of the South 5 tailings dam
nearing completion and the commencement of the Clean
Water Diversion Project. This project will allow UCML to
divert clean runoff through the site for discharge into the
Ulan Creek, and includes the development of a constructed
wetland area within the existing rehab.
Planning for rehabilitation work on the Goulburn River
Diversion has also commenced. This project includes the
rehabilitation of the 4.2km long diversion, installed in the
1980’s to divert the Goulburn River around the open cut.
It hasn’t been all smooth sailing though. This year
has been a particularly challenging year for UCML’s
Underground Operation. As many of you may be aware,
we have experienced significant challenges with water
and underground roof conditions. These challenges have
resulted in some tough decisions being made and some
changes to the way we operate. This includes a modification
to our Project Approval, to allow us to continue mining in
other areas to ensure the ongoing sustainability of the mine.
I remain optimistic about achieving our 2011 objectives.
With our dedicated management team leading the way, I
am confident that we will restructure our business to strive
towards UCML’s vision “To be the industry’s leading, low
cost sustainable coal producer”. I look forward to the many
exciting developments in the near future.
Regards,
Dan Clifford,
General Manager, Ulan Coal Mines Ltd
Around the mine
Open Cut
UCML are currently undertaking pre-feasibility studies with
respect to the recommencement of open cut operations.
The approved open cut includes a 239 hectare extension
area that immediately adjoins the western boundary of
previous open cut mining.
The Box Cut and mine development will take place
between 2011–2014, with full (longwall) production
scheduled to commence in mid 2014.
Ulan West Project Statistics
• Approved project value approximately AUD$1.3Billion
Ulan West
As mentioned previously, work has commenced on the
excavation of the Ulan West Box Cut, which will allow
access to the Ulan West mine via a series of portals located
in the highwalls of the Box Cut.
• Production: up to 7Mt pa export thermal coal
In addition to providing access to the mine, the portal/
box cut area will also contain ventilation, power and water
management facilities and other mine support services.
Access into the portal/box cut area will be via a ramp which
will also accommodate the overland coal conveyor out of
the underground mine.
• Mine Life: 20 years (2031)
• Employment:
• 270 construction jobs;
• 350 permanent jobs
• Average annual economic contribution of $147.7 million
to the NSW economy during construction;
• Average annual economic contribution of $563.3
million to the NSW economy during mining operation;
Conceptual Image of completed Ulan West box cut area.
• Economic recovery of approximately 108 Mt of ROM
coal; and
• Significant export earnings for Australia.
Ulan Coal Community Newsletter October 2011, Issue no. 8
Around the mine
Community
Project Approval
UCML was granted Project Approval (PA 08_0184) on the
15 November 2010 for the Ulan Coal Continued Operations
Project. This Project Approval is a single, modern project
approval for continued operations and enables the surrender
of a number of development consents and other approvals
that UCML had previously operated under. Approved mining
operations at UCML consist of underground mining in the
Ulan No.3 and Ulan West area as well as open cut mining.
PA 08_0184 provides for:
New CCC
The first meeting of the ‘new look’ UCML Community
Consultative Committee (CCC) was held on 29 March 2011.
The new committee was developed in accordance with the
Project Approval. A second meeting was held in July.
The purpose of the CCC is to provide a forum for open
discussion between representatives of the company, the
community, the council and other stakeholders on issues
directly relating to the mine’s operations, environmental
performance and community relations, and to keep the
community informed on these matters.
• A further 21 years of mining operations at the Ulan Mine
Complex;
• Continued operation of Ulan No.3 underground by
longwall mining methods;
Future meetings for 2011 will be held in November and
December. All meeting minutes are available within 28 days
of the event, via the UCML Website (www.ulancoal.com.au).
• Longwall mining of the approved Ulan West area via a
modified mine layout;
• Recommencement of open cut operations, including a
239 hectare extension area that immediately adjoins the
western boundary of previous open cut mining
UCML Community
Support Program
• Upgrade and continued use of the existing Coal Handling
and Preparation Plan (CHPP) and rail loading facilities to
cater for an increase in total coal production capacity
from 10 to 20 million tonnes per annum (Mtpa) product
coal; and
• Continued use of existing surface facilities and ancillary,
and construction and use of approved and new
surface facilities and ancillary activities to support the
abovementioned operations.
Project Modification
UCML are currently seeking to modify PA 08_0184 under
Section 75W of the EP&A Act to address the imminent period
of coal discontinuity during 2011. The modification
is required to prevent mining discontinuity during times where
unforeseen circumstances erode longwall (LW) production
and in turn the continuity of coal mining operations.
The imminent period of between 6 and 12 months is the
result of encountering difficult underground conditions
(particularly roof strata conditions) which have significantly
slowed underground development rates.
These conditions were unforeseen and could not have been
predicted with any certainty. The consequence of such a
Rehabilitation
Clean Water System
During 2010, UCML engaged a specialist environmental
engineering company to design a detailed clean water
drainage system for the rehabilitated area of the West
Pit. The Clean Water System (CWS) was developed to
complement the 2007 final landform design and integrate
with the Ulan West infrastructure design.
This year (to date) UCML have donated more than $40,000
to local schools and community groups including:
• $19,000 to local schools
S75W Modification (and existing approved area).
• $10,000 to the Cudgegong Pathway Project
prolonged period of discontinuity has the potential to affect
both the ongoing operation of UCML and its workforce.
UCML propose to modify the Project Approval 08_0184
to include the development of five additional LW panels
in an area known as North 1, minor modifications to
the Ulan No.3 and Ulan West mine plans and the
establishment of a small Concrete Batching Plant (CBP) in
the Bobadeen Area.
Further information about the Project Approval or the
Project Approval Modification can either be obtained
from UCML’s website www.ulancoal.com.au or contact
Jamie Lees (Environment & Community Manager) on
02 6372 5368.
Stage 1 works involve establishing a network of drainage
channels and sediment retention basins above Stage 3 for
capturing and conveying surface water generated from
rehabilitated areas and from adjoining (non-disturbed)
catchments to the south and south-western areas bordering
the West Pit. Stage 2 will see the establishment of a large
constructed wetland to filter water transported from
Stages 1 and 3, prior to the water being discharged into
an atributary of Ulan Creek, in accordance with UCML’s
Environment Protection Licence (EPL).
South 5 Tailings Dam
One of the major environmental projects undertaken last
year was the final capping of the decommissioned South
5 Tailing Dam facility. This included capping the 15ha area
with 3m of suitable fill material and shaping. During 2011,
further rehabilitation works including shaping the final
landform and spreading topsoil. UCML expect to completed
the rehabilitation of South 5 before the end of 2011.
For further information contact:
Community complaints and enquiries hotline:
Bertie Stanley
Community, Land and Property Coordinator
T (02) 6372 5406 E [email protected]
1800 647 630
Jamie Lees
Environment and Community Manager
T (02) 6372 5368 E [email protected]
UCML Environment
and Community Team
This year UCML’s Environment and Community (E&C)
Team has grown to respond to the expansion of the Ulan
Mine Complex. The new look team includes three new
coordinators; Ian, Daniel and Bertie, a new officer, Tara, and
E&C Manager, Jamie.
The four stage design allows for runoff water to be
managed from water runoff generated from internal
disturbed catchments and surrounding non-disturbed
catchments and returned back into Ulan Creek.
In August 2011, works commenced to construct Stage 1 of
the CWS. Preliminary works for Stages 2 and 4 commenced
during September 2011. UCML anticipate the completion of
all four stages of the CWS in early to mid 2012.
Ulan Creek
• $5,000 to the Central West Catchment Management
Authority for the Talbragar Rivercare Project.
For information on articles in Ulan News, or other
operational and environmental issues, please contact the
relevant people listed or visit www.ulancoal.com.au.
Left to right: Jamie, Ian, Tara, Bertie, Dan.
Community Information
Session and BBQ
You are invited to attend a Community Information
Session & BBQ at the Ulan Village Community Hall
on the 1 December 2011. The information session will
include a project update and will commence at 11am.
This will be followed by a BBQ lunch.
Please RSVP to Bertie Stanley by 24 November 2011
(Ph: 6372 5406 or email [email protected])
for catering purposes.
Xstrata’s commitment to Sustainable Development
We are committed to the goal of sustainable development. We balance social,
environmental and economic considerations in how we manage our business. We believe
that operating to leading standards of health, safety and environmental management,
contributing to the development of sustainable communities, and engaging with our
stakeholders in two-way, open dialogue, regardless of our location, enhances our
corporate reputation and is a source of competitive advantage. This enables us to gain
access to new resources, maintain a licence to operate, attract and retain the best
people, access diverse and low-cost sources of capital, identify and act upon business
opportunities, and optimise our management of risks.