Kiwi Quarry

Management Plan

June 2015

CONTENTS

Summary

Section 1: Introduction

Section 3: Financial

Section 4: Performance Measures

Section 5: Council and Contractor Responsibilities

Section 6: Site Specific Methodology

Section 8: Quarry Restoration, Rehabilitation and Expenditure Plan

Section 9: Quarry Permits and Consents

Summary

This plan sets out the history and future plans of Kiwi Quarry so there is a record of any major decisions, expenditure, permits and consents.

It identifies the objective of the quarry as well as the methods of monitoring the condition of the quarry and rock, and determines the annual funding and expenditure needed to retain the safest and most cost effective plan possible.

Section 1: Introduction

1.1 Purpose of a Quarry Management Plan

This Quarry Management Plan defines the objective and performance standards of Kiwi Quarry for which the West Coast Regional Council has the ultimate responsibility.

This Quarry Management Plan:

-Identifies the service level for the quarry

-Describes the background of the quarry

-Describes the methods used to maintain the service level of the quarry

-Complies with the regulatory requirements of the current Health and Safety in Employment Act/s Regulations thereon and all relevant Permits/Consents.

Kiwi Quarry is a multi-bench side hill quarry located in Stillwater, West Coast, adjacent to State Highway 7 and the Midland Railway.

Operated for the exclusive production of Armor Grade Protection Rock (AGPR) with a range of .25 tonne through to rocks with an individual weight of 4.5 tonne plus.

The predominant rock type quarried at Kiwi Quarry is Kaiata Formation Carbonaceous Mudstone with clearly visible bedding planes at a dip of approximately 10 degrees.

Kiwi Quarry Management Plan 20151

Section 3: Financial

3.1Direct and Overhead Costs

The below costs do not include the “stock adjustment” which is applied when product is sold or quarried.

That adjustment reflects the “cost of rock sold” and is not a cost of operating the quarries.

The below costs include direct costs and allocated overhead costs.

Part Year
Year To / 30/06/2006 / 30/06/2007 / 30/06/2008 / 30/06/2009 / 30/06/2010 / 30/06/2011 / 30/06/2012 / 30/06/2013 / 30/06/2014 / 31/03/2015
Kiwi Quarry Specific Cost / $24,550 / $34,664 / $33,236 / $29,058 / $45,979 / $97,313 / $199,648 / $141,154 / $61,180 / $87,327

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Section 4: Performance Measures

The overall performance measure is to operate Kiwi Quarry in the safest and most cost effective manner possible.

The following procedures will be adopted to ensure the adequacy of Safety and Efficiency.

Annually

Rock production meets specific target(s)

Procedures meet Health and Safety requirements

Performance Measure

Waste to rock ratio – 20% waste 80% rock

Lost time due to injuries/incidents

Random Health and Safety Audits

Section 5: Council and Contractor Responsibilities

To achieve the primary aim of the Regional Council Kiwi Quarry it is essential that both the Contractor and Council ensure that all responsibilities under existing Health and Safety in Employment Law and relevant amended acts and regulations are recognized and acted upon.

5.1Contractor Responsibilities

It is expected that the goal of a ‘Zero Harm’ working quarry environment is seen as achievable, operation expediency over safe work practices in WCRC quarries will not be tolerated under any circumstances.

It is expected that all contractors operating in WCRC quarries will follow industry accepted best quarry practices at all times.

Section 6: Site Specific Methodology

6.1Drill and Blast Methodology

It is expected that the Contractors Blaster will develop a blast technique that uses a minimum of explosive weight per tonne of rock produced to ensure that excessive fragmentation does not occur.

Experience has shown that a combination of lightly loaded toe and down holes optimize the production of AGPR with a minimum waste and in any case the proximity of road and rain infrastructure rule out large production blasts at this quarry.

6.2Faces and Benches

The current face retreat is to the west and it is intended that extraction be continued in this direction. The aim is to fully expose the total available resource to the extent possible in the upper levels within the current permit area.

On achievement, the lower level benches will also be progressively worked out in a similar manner and direction.

6.3Future Approximate Face Heights

Face heights at Kiwi Quarry will be limited to approximately 7-8m at all times.

6.4Bunding

Recent changes to the Health and Safety in Employment Laws and all acts and regulations there on have made bunding in quarries mandatory. This bunding requirement includes all road edges, benches, faces, tip heads and associated terminal drop-offs where there is a risk of vehicle roll over or falls.

6.5Waste Dump Management

Space to dump large volumes of waste is very limited atKiwi Quarry and it is important to ensure that all waste handling is kept to a minimum and in particular that dumping on or near potential resource is prohibited. All waste must be subject to some compaction by way of track rolling and/or bucket tamping a minimum when being placed regardless of whether it is to be used in access and bench bunding, easing of access road gradients or at the tiphead.

Most of the waste generated at Kiwi Quarry will be utilized in haul road gradient reconfiguration, extending the bunding along benches and roads and placing in designated waste dumps.

6.6Rock Stockpile Areas

At Kiwi Quarry AGPR will generally be stockpiled on the main bench in areas to be marked out by the WCRC Quarry Manager prior to commencement of quarry operatiions.

Although all quarry product ex the face shall be weighed as it is broken out prior to loadout to stockpile the actual stockpiles shall also be constructed in such a manner that facilitates physical measurement of rock volumes in the stockpile, (regular shape, straight sides, consistent height etc.)

6.7Hazards and Issues specific to Kiwi Quarry

  • Proximity to State Highway
  • Proximity to Midland Railway line
  • Risk of rock fall onto road/rail
  • Fly Rock incidents
  • Possible catastrophic destabilisation of outcrop
  • Geological considerations
  • Steep terrain
  • Limited visibility access crossing onto State Highway
  • Foggy conditions common in vicinity
  • Adverse weather conditions could lead to mud and debris tracking onto the State Highway

6.8Extraordinary Hazards

Fog is a regular weather phenomenon at Kiwi Quarry and when it is present or when conditions increase the hazard at the crossing contractors are requested to take special precautions when entering or leaving the quarry. These special precautions should include but should not be limited to the following:

  • Approved Specific Warning signs (which may include roadside flashing beacons) while rock cartage operations are underway
  • All trucks must have operational flashing beacons
  • A Transit NZ accepted Traffic Management Plan that deals with or minimizes the inherent risks at the entrance crossing.

6.9Access Road Regrading and Future Haul Road Maintenance

At Kiwi Quarry the main access road from the State Highway heads up to the main floor firstly in an easterly direction before switching back to the west. This overall steepness of grade as well as the abrupt change in direction can lead to access difficulties for empty semitrailer rock trucks from time to time.

It is proposed to deal with this problem progressively in the next year or two using waste generated in the blast/breakout/loadout phase to reconfigure the access road trouble spots.

All access and main haul roads will be maintained in good order and tracking of mud and other material beyond the quarry gate is to be avoided at all times.

Section 7: Primary Blasting Notification Requirements

Prior to any primary blasting taking place at Kiwi Quarry Train Control at Greymouth and Transit NZ require notification and State Highway 7 needs to be closed in accordance with the Traffic Management Plan.

-Kiwi Rail Traffic Control, 0800 801 070

-NZ Transport Agency , 0800 44 44 49 Greymouth, 03 769 9330

Contractors must pay strict attention to Kiwi Rail Time Tables particularly in regard to the Alpine Express.

Finally, Council is committed to the concept and goal of a ‘’Zero Harm’’ Work Environment in all WCRC Quarries and will work very hard with Contractors to achieve this goal.

Section 8: Quarry Restoration, Rehabilitation and Expenditure Plan

The Restoration/Rehabilitation efforts of the last few years in the Council’s quarries mean that overall the future requirements have been somewhat reduced at all sites but in any case this Restore/Rehab expenditure must be viewed as a function of the ongoing quarries operation. It is therefore important to ensure that each quarry has a dedicated budget line to maintain a meaningful Restore/Rehab programme into the future.

The level of annual expenditure should remain reasonably constant being more or less in lock step with annual production volumes unless a large flood event or similar occurs.

In this situation Restoration/Rehabilitation costs will increase in line with any production surge but based on averages should equate to around $0.15 (15 cents) per tonne of armour grade rock produced to also provide an additional lump sum at closedown/decommissioning.

This lump sum will be required to deal with:

  • Roading issues
  • Public access
  • Long term safety issues
  • Pit slope and face stabilization
  • Drainage
  • Contouring
  • Landscaping
  • Land ownership/transfers etc.

8.1 Expenditure Requirements for Kiwi Quarry

As at 1/09/2014 year one restore/rehab programme and expenditure requirements for Kiwi Quarry are as follows:

Seed collection/seedlings (endemic to location) Labour and nursery costs / $550
Planting including “clump” relocation within quarry, landscaping etc. / $1250
Follow-up/release/replant as necessary / $300
Total first year expenditure / $2100

Thereafter: Given the present annual production requirement at Kiwi of 4000 tonnearmour grade rock plus 25% to account for quarry generated waste (assume no extraordinary flood events) an annual expenditure of $1050 (Inflation adjusted) should be sufficient to meet the ongoing Restore/Rehab obligations during the production life of this quarry.

There are sufficient reserves of rock at Kiwi to allow quarrying to continue for 20 years at the current rate of extraction at which time additional decommissioning costs such as roading, drainage, pit slope stabilization, contouring and landscaping will come to charge.

Therefore assuming 20 years at 4000 tonne per annum = 8000t. + 25% waste = 100000 tonne all up.

Using and average of $0.15 per tonne the provisional sum required for decommissioning at Kiwi Point Quarry totals: 100000t. X $0.15=$15000 LS required at closedown.

Section 9:Quarry Permits and Consents

9.1 Crown Minerals Permit 41295

Permit Number / 41295
Permit Term / 40 years from Commencement Date
Commencement Date / 1991
Expiry Date / 2031
Area / 5,8240

9.2West Coast Regional Council Consents Held

Resource consent Number / Date Granted / Term / Expiry
date / Purpose
94/23 / 11.5.1998 / 20 Years / May 2018 / Land use
94/24 / 3.5.1994 / 35 Years / 2 May 2029 / Discharge to water
99257/1 / Oct 2001 / 35 Years / Oct 2036 / Discharge to air
99257/2 / Oct 2001 / 35 Years / Oct 2036 / Discharge to water

9.3Grey District Council Consents Held

Consent Number / Issuer / Date Granted / Term / Expiry
date / Purpose
M94/4 / GDC / 3.11.1994 / 20 Years / 3.11.2014 / Land use
LU N 869/02 / GDC

Kiwi Quarry Management Plan 20151