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Inquiry report – Coal mine operators

6. Progress update – Mine Rehabilitation Inquiry report –Coal mine operators

During the 2015–16 Inquiry, the Board of Inquiry was unable to make a definitive assessment on the viable rehabilitation option for each of the three Latrobe Valley mines due to many areas of uncertainty that were not addressed by relevant agencies and the mine operators. These issues included mine stability, sourcing water, water quality and fire risk.

The Board of Inquiry concluded that a significant amount of research must be conducted into these issues to provide certainty about the rehabilitation options, which must be done in the short to medium term and in a coordinated manner.

In the Mine Rehabilitation Inquiry report, the Board of Inquiry made 17 recommendations to be implemented by the state. The associated actions are included in the Victorian Government Implementation Plan and reported on in chapter 4. The Board of Inquiry made two recommendations, and one affirmation, for implementation by the Latrobe Valley mine operators. Affirmation 1, in which the three Latrobe Valley coal mine operators committed to increasing coordination and collaboration between themselves and the regulator, was reported as complete in the 2017 IGEM Hazelwood report.

The following is a summary of progress on the recommendations that were assessed as ongoing in the 2017 IGEM Hazelwood report. A full list of recommendations and affirmations, including those previously reported as complete, is available in Appendix A.

Table 33: Status of Mine Rehabilitation Inquiry report coal mine operator recommendations and affirmation reported as ongoing in 2017

NO.

Rec 18

Rec 19 RECOMMENDATION/AFFIRMATION

By 31 December 2016, develop an integrated research plan that identifies common research areas and priorities for the next 10 years, to be reviewed every three years. The plan should be developed in consultation with the Mining Regulator and relevant agencies, research bodies and experts. The list of research topics identified in Part 6.11 [of the Victorian Government Implementation Plan] can be used as a starting point for discussion. The Commissioner and statutory authority should promote and coordinate this research (see recommendations 14 and 15).

Increase the rate of progressive rehabilitation by achieving milestones within the mines' progressive rehabilitation plans, as set by the Mining Regulator under recommendation 4. STATUS

Ongoing

Ongoing

6.1 Mine Rehabilitation Inquiry report: Recommendation 18

By 31 December 2016, develop an integrated research plan that identifies common research areas and priorities for the next 10 years, to be reviewed every three years. The plan should be developed in consultation with the Mining Regulator and relevant agencies, research bodies and experts. The list of research topics identified in part 6.11 can be used as a starting point for discussion. The Commissioner and Statutory Authority should promote and coordinate this research (see recommendations 14 and 15).

The 2017 IGEM Hazelwood report noted the establishment of the Integrated Mines Research Group (IMRG) in July 2016, comprising representatives of the three Latrobe Valley mine operators, ENGIE Hazelwood, EnergyAustralia Yallourn and AGL Loy Yang. IGEM also reported the December 2016 publication of the Integrated Mines Research Group Ten Year Research Plan. The plan identified research topics developed by the IMRG through stakeholder consultation including: cover on coal – stability, water quality, fire and vegetation full lake benefits and interconnectivity with three lakes – water and stability lake fill rates (rebound/recharge) – water and stability horizontal drains – stability, water quality and fire long-term pit lake water quality – water quality research existing rehabilitation experiences – stability, water quality, fire and vegetation social and economic closure effects – social and economic spontaneous combustion – fire and stability stability – stability, water quality, fire and vegetation time lines for maintenance and monitoring – water quality and stability wave action, beaching and shoreline treatment including vegetation – stability, water quality, fire and vegetation.

During 2017–18, the IMRG met every two months to share information on the various research projects. Research outcomes from IMRG projects will be shared between the three mine operators and have common ownership. This recommendation also requires the research to be coordinated and promoted by the Latrobe Valley Mine Rehabilitation Commissioner (the Commissioner) and the Latrobe Valley Mine Rehabilitation Authority. The Commissioner has been closely involved with the IMRG throughout his first year of office. The Commissioner attends meetings to understand the scope and progress of the research that is being undertaken and to advise on the direction of the work, possible approaches to embedding the research within the wider national and international agendas, and activities that should be considered for future research. The Commissioner attends individual research project meetings where appropriate, including the Batter Stability Project being managed by Federation University Australia’s Geotechnical and Hydrogeological Engineering Research Group. The Commissioner promotes the research through engagement with the contributing academic groups and through a structured engagement program. As part of National Science Week – 11–19 August 2018 – the Commissioner promoted a series of interactive demonstrations and seminars exploring the science and technology behind the rehabilitation of the Latrobe Valley mines.

In July 2018 the Minister for Resources introduced a Bill to the Victorian Parliament to amend the Mineral Resources (Sustainable Development) Act 1990 to create a mine land rehabilitation authority to oversee mine rehabilitation and post-closure management. DEDJTR expects that the Mine Land Rehabilitation Authority will be established by 2020. The Integrated Mines Research Group Ten Year Research Plan is due to be reviewed in December 2019.

Finding

IGEM considers this recommendation is progressing satisfactorily and will revisit in the next Annual Report.

6.2 Mine Rehabilitation Inquiry report: Recommendation 19

Increase the rate of progressive rehabilitation by achieving milestones within the mines’ progressive rehabilitation plans, as set by the Mining Regulator under recommendation 4.

The Mine Rehabilitation Inquiry report recommended that mine operators increase the rate of progressive rehabilitation by achieving milestones within progressive rehabilitation plans. The Board of Inquiry recognised the impact of progressive rehabilitation on the timeframes for final rehabilitation of mined land.

The Victorian Government Implementation Plan sets out that progressive rehabilitation milestones will be built into work plan variations for the Latrobe Valley coal mines and approved by DEDJTR as the regulator (refer to Action 158). To progress this recommendation, all three Latrobe Valley coal mine operators have submitted work plan variations to DEDJTR which incorporate proposed progressive rehabilitation milestones. The 2017 IGEM Hazelwood report stated that DEDJTR was working with the mine operators to finalise their work plan variations. DEDJTR approved ENGIE’s work plan variation for the Hazelwood mine in December 2017. It continues to work with AGL Loy Yang and EnergyAustralia Yallourn to finalise their respective work plan variations. In the interim – before the progressive rehabilitation milestones are finalised – ENGIE and AGL Loy Yang have tracked the number of hectares rehabilitated within their sites and provided this information to IGEM. EnergyAustralia Yallourn has reported against rehabilitation targets set out in its existing Yallourn Mine Risk Assessment and Management Plan.

ENGIE Hazelwood

In September 2017 ENGIE submitted a work plan variation to DEDJTR for approval. DEDJTR approved the work plan variation in December 2017. The work plan variation contains an extensive program for progressive mine rehabilitation and details the rehabilitation works ENGIE intends to undertake during the immediate post-station closure and closure planning (IPSCCP) period. It also highlights two closure concepts for the mine pit void – a full lake and a partial lake – to be further assessed during the IPSCCP period. ENGIE’s progressive rehabilitation approach covers rehabilitation domains, including: mine batters mine floor ash storage overburden dumps waterways dams infrastructure roads and hardstand buildings pasture land.

ENGIE expects the proposed works during the IPSCCP period to be completed within approximately four to seven years. Final rehabilitation works are expected to take an additional 10 to 15 years. During the IPSCCP period, ENGIE will develop a detailed Rehabilitation and Closure Plan for submission to DEDJTR for approval. ENGIE advised that in accordance with the work plan variation, an extensive range of IPSCCP works – decommissioning, remediation and rehabilitation –has commenced, including the completion of four hectares of rehabilitation, and the capping of 62 hectares of clay. A total of 708 hectares has been rehabilitated to date. IGEM anticipates that future progress updates will consider achievement of the milestones set out in the approved work plan variation.

AGL Loy Yang

Over the course of 2017–18 AGL Loy Yang and DEDJTR have continued working together to finalise a work plan variation. In May 2018 DEDJTR requested changes to be made to AGL Loy Yang’s work plan variation. AGL Loy Yang is currently working to address these requests. The proposed work plan variation includes a progressive rehabilitation approach to the following areas: unaffected land within the mine licence area (pasture and grazing land) waterways overburden dumps mine batters the pit floor and pit void (lake).

AGL Loy Yang have continued to report on the land area rehabilitated within the mine site. AGL Loy Yang advised that during 2017–18 it had completed 38.1 hectares of rehabilitation, totalling 628.1 hectares rehabilitated to date.

EnergyAustralia Yallourn

Over the course of 2017–18 EnergyAustralia Yallourn and DEDJTR have continued working together to finalise a work plan variation. DEDJTR has directed EnergyAustralia Yallourn to resubmit a revised work plan variation by November 2018.

Until the work plan variation with progressive rehabilitation milestones is finalised, EnergyAustralia Yallourn has continued rehabilitation works in line with the target commitments documented in its existing Yallourn Mine Risk Assessment and Management Plan. In July 2018 EnergyAustralia Yallourn advised it is on track to meet current commitments and has rehabilitated 33.9 hectares since January 2018.

Finding

IGEM notes the delays to the implementation of this recommendation and will revisit in the next Annual Report.

Image: Rehabilitation works at AGL Loy Yang. Source: AGL

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