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Alligator Rivers Region Advisory Committee

Meeting 40

MeetingSummary

5 September 2013

ARRAC40 Meeting Summary Page 1 of 3

Agenda

1 / Welcome
2 / Apologies and Observers
3 / ARRAC39Meeting Summary and Actions
4 / Governance/Appointments
5 / Energy Resources of Australia Ltd Report
6 / Supervising Scientist Report
7 / NT Department of Mines and Energy Report
8 / Member Reports
8.1 / Gundjeihmi Aboriginal Corporation
8.2 / Northern Land Council
8.3 / Environment Centre NT
8.4 / Cameco Australia Pty Ltd
8.5 / NT Environment Protection Authority
8.6 / NT Department of Health
8.7 / Australian Radiation Protection and Nuclear Safety Agency
8.8 / Australian Government - Department of Resources, Energy and Tourism
8.9 / Australian Government - Parks Australia
8.10 / Uranium Equities Ltd
8.11 / Afmeco Mining and Exploration Pty Ltd / Areva Group
8.12 / West Arnhem Shire Council
9 / Other Business
9 / Next Meeting

1 Welcome

The Chair (Professor Webb) welcomed members and observers to the meeting. Professor Webb acknowledged the Mirrar people as the traditional custodians of the Ranger area. Mr McAllister provided a facilities and safety briefing.

2 Apologies and Attendance

Apologies from the following memberswere noted.

Members / Organisation
Peter Johnston / Australian Radiation Protection and Nuclear Safety Agency
Joe Potter / Afmeco Mining and Exploration Pty Ltd (AREVA Group)
Michael Sheldrick / Australian Government - Department of Resources, Energy and Tourism
Xavier Schobben / Northern Territory Government - Department of Health
Bill Freeland / Northern Territory Government – Environment Protection Authority
Russell Ball / Northern Territory Government - Department of Mines and Energy
Todd Simms / Energy Resources of Australia Ltd
Melissa Taylor / Uranium Equities Limited
Justin O’Brien / Gundjeihmi Aboriginal Corporation
Peter Cochrane / Australian Government – Parks Australia
Anna Morgan / Australian Government – Parks Australia

The attendance of the following members and observers was also noted.

Members/Deputy members / Organisation
Charles Webb / Independent Chair
Damien Ewington / Cameco Australia Pty Ltd
Tim Eckersley / Energy Resources of Australia Ltd
Rob Law / Environment Centre Northern Territory
Lauren Mellor / Environment Centre Northern Territory
Gillian Jan / Representing the Office of the Administrator of the Northern Territory
Melanie Impey / Gundjeihmi Aboriginal Corporation
Adam Thompson / Northern Land Council
Richard O’Brien / Australian Radiation Protection and Nuclear Safety Agency
Virginia Leitch / Australian Government – Department of Resources, Energy and Tourism
Peter Waggitt / Northern Territory Government - Department of Mines and Energy
Jean-Pierre Issaverdis / Australian Government – Parks Australia
Richard McAllister / Supervising Scientist Division
Observers / Organisation
Keith Tayler / Supervising Scientist Division
Ally Sinclair / Supervising Scientist Division
Scott Parker / Supervising Scientist Division
Josh Bean / Supervising Scientist Division
Sean Fagan / Supervising Scientist Division
Shannon Traut / Supervising Scientist Division
Carolyn Lord / Supervising Scientist Division
Michelle Bush / Energy Resources of Australia Ltd
Brooke Cawood / Northern Territory Government - Department of Mines and Energy
Angus Cole / Australian Government – Department of Resources, Energy and Tourism

3 DraftARRAC39 mEETING SUMMARYand Actions Arising

The draft ARRAC39meeting summary was approved as tabled.The status of the following ARRAC39 actions was noted.

ARRAC39: 1 - ERA to provide further details and data on potential radiological exposure (annual dose) to workers associated with underground mining at Ranger.Mr Eckersley referred to a summary table from the scoping document for Ranger 3 Deeps Project. It was noted that the underground development team has been grouped based on their expected Maximum Annual Effective Dose (MAED). It was noted that offsiders have the highest estimated MAED of 5.3 mSvwhile truck drivershave the lowest at 1.9 mSv.

ARRAC39: 2- SSD to show relevant statutory limits for contaminants in monitoring result graphs used in future presentations and reports to ARRAC.Complete.

ARRAC39: 4 - ARRAC Secretariat to seek ERA assistance with arranging a mine tour of Ranger Mine prior to the next ARRAC meeting.Complete.

4 Governance/Appointments (Mr Parker)

Mr Parker advised that the following members and deputy members were appointed by the Australian Government Minister for the Environment, Heritage and Water on 31 July 2013.

Member / Dr Bill FREELAND / Northern Territory Environment Protection Authority
Member / Mr Tim ECKERSLEY / Energy Resources of Australia Ltd
Member / Mr Scott PERKINS / Administrator of the Northern Territory
Member / Mr Adam THOMPSON / Northern Land Council
Member / Mr Rob LAW / Environment Centre NT
Deputy Member / Mr Paul PURDON / Northern Territory Environment Protection Authority
Deputy Member / Ms Lauren MELLOR / Environment Centre NT
Deputy Member / Mr Greg McDONALD / Northern Land Council
Deputy Member / Ms Melanie IMPEY / Gundjeihmi Aboriginal Corporation
Deputy Member / Mr Chris DILLON / Cameco Australia Pty Ltd

5 ERAReport

BUSINESS PERFORMANCE AND DEVELOPMENTS – RANGER (MR ECKERSLEY)

Mr Eckersley acknowledged the Mirrar as the Traditional Owners of the land on which Ranger is located and provided the ERA update report covering Ranger operations, developments and safety performance.

Safetyand Environment performance – ERA is continuing its strong focus on safety and achieved an All Injury Frequency Rate (AIFR) of 0.42 (12 month rolling average). A new record for number of days without recordable injury of 188 was achieved on 7th August.Two recordable injuries were recorded during the period (a finger crush injury and a thumb laceration). Both staff made a full recovery and returned to duties. There were no critical environmental incidents during the period and no environmental incidents reported in April.

General – Results in the first half of 2013 included a strong plant performance with 1847t U3O8 being produced from processing low grade ore and a net loss of $54M (balanced by significant depreciation off sets). Brine Concentrator performance testing is underway with handover imminent. The R3D exploration decline is currently about 1382m from the surface. Water management continues to be a key priority and pre wet season planning is well underway. Backfill of Pit#3 is on track for completion in 2014.

Brine Concentrator –The construction phase of the facility has been completed and commissioningactivities are ongoing.It was noted the brine concentrator is a critical component for the eventual rehabilitation of the Ranger mine site. The formal openingof the facility is scheduled for 19 September 2013. The first distillate from the plant has been produced (20 August) and the performance testing period has commenced. There have been a number of minor technical issues experienced (e.g. balancing fans, vibration) but these are to be expected given the size and complexity of the plant. The brine concentrator is currently producing 130 t per hour. Concurrent sampling of distillate has commenced with duplicate samples being sent to separate labs (ERA and NTEL) for analysis. Mr Eckersley noted that early indications are that the plant is operating as expected.

Pit#1 Rehabilitation – The preload of rock fill in Pit#1 has been approved but the final height of consolidationis still to be determined. The preload will assist with model validation and enable a better understanding of how closely current models are representing reality. ERA is strongly committed to determining a final consolidation level which is acceptable to stakeholders. Contractors are arriving on site next week so works can be completed prior to wet season. If successful, Pit#1 will change from a process water catchment to a pond water catchment. It was noted that this project marks the beginning of a broader scale rehabilitation approach across the site.

Jabiluka pond rehabilitation – The Jabiluka water management pond is being rehabilitated in accordance with the agreed approach. The pond has been dewatered and the liner has been removed and will be placed in Pit#1. The banks will be collapsed and used as final cover material. It is expected works will be completed in mid October so that revegetation can commence.The bores in Mine valley are being sequentially cut off below ground and closed out.

R3Deeps exploration – The R3D decline is currently close to 1400 m in lengthand approximately 300m below ground level. The first 7 of approx 300 holes have been drilled. Initial drilling results are consistent with expectations. The EIS is currently being drafted and should be completed by 2014. A social impact assessment is also being undertaken as required under the EIS guidelines.

DISCUSSION

Mr Law asked when the Ranger 3 Deeps EIS is expected to be finalised and Mr Eckersley indicated the draft EIS should be completed by Q1 or Q2 2014. Mr Law asked Ms Leitch if ECNT could be provided with a copy of the independent assessment report for the Ranger Annual Plan of Rehabilitation No.38. Ms Leitch notedthe report is not a public document,but assured Mr Law that the Plan has been subject to detailedassessment and scrutiny by relevant stakeholders.

6 SUPERVISING SCIENTIST DIVISION REPORT

SUPERVISION AND ASSESSMENT (Mr Tayler/Ms Sinclair)

Mr Tayler presented the SSD ARRAC40 Supervision and Assessment report.

Inspections and Audits

Mr Tayler advised that supervisory activity since last meeting included the Ranger and Jabiluka annual audits, five Regular Periodic Inspections (RPI) at Ranger, one RPI at Jabiluka and an inspection of Nabarlek. Activities proposed for September 2013 include audits of Cameco (King River Camp) and Alligator Energy (Myra Camp). It was also noted that UXA is in receivership so no longer operating but SSD will inspect theirsite to assess the status of rehabilitation work.

The Ranger Environmental Audit conducted in May 2013 focused on 109 commitments taken from the Ranger Water Management Plan 2012-2013, the R3D Exploration Decline Application, R3D Water Management Plan and R3D Radiation Management Plan. It was noted that all findings from the Ranger 2012 audit had been closed out through the RPI process. The results of the 2013 audit included one Category 2 non-conformance related to reporting of water quality guideline exceedances and 12 observations, but no significant environmental issues had been identified.

The 2013 Jabiluka Environmental Audit focused on 22 commitments taken from the Jabiluka Authorisation. The Category 2 finding from the 2012 audit was closed out as a result of the timely submittal of the Jabiluka Plan of Rehabilitation. There was one conditional finding carried forward from the 2012 audit related to the remediation of bores in Mine Valley. It was noted that this had been delayed due to the length of time taken to gain approval from the Aboriginal Protection Authority.

The Jabiluka RPI conducted in July 2013 had focused on the Interim Water Management Pond dewatering and rehabilitation operation. It was noted that the rehabilitation works had included smoothing of stockpilesand the upgrading of the access road.

The Nabarlek MTC met on 22 July 2013. No exploration work is planned for 2013 but UEL rehabilitation work over the 2012-13 wet season included the planting of 2750 tubestock and two weed spraying campaigns. It was noted that good progress was being made in relation to weed management but UEL will need to continue spraying to keep weeds under control.

Monitoring

Ms Sinclair provided an update on the results of SSD monitoring during the reporting period. It was noted that rainfall during the 2012-13 wet season was below average resulting in less than average flows in Magela and Gulungul Creeks.

Magela Creek

Continuous EC – EC remained well below action levels and low compared to previous years.

Continuous EC and grab samples – There was very good agreement between stakeholder (DME/ERA) EC samples and SSD continuous monitoring results both upstream and downstream during the period.

Continuous Turbidity – There were 2 events where downstreamturbidity levels roseabove guidelines. It was noted that the event on 17 January most likely resulted from localised rainfall events and not the Pit#3 levee. The event on 31 March was associated with a very large rainfall event and most likely resulted from flushing due to the low flow levels in the creek.

U concentration – Uranium concentrations were extremely low compared to the ecotoxicologicallyderived limit value of 6ug/L. There was only one result above focus reported by ERA which was from the upstream site and therefore not mine derived.

Mn concentration - The maximum manganese concentration of 9.9 μg/L occurred in early April following a large rainfall event. This value is below the Action trigger value of 11 μg/L. Mn trigger values only apply when flow is above 5 cumecs.

Mg concentration – Magnesium and sulfate concentrations measured during 2012–13 were low reflecting the low level of mine site inputs to the creek. Automatic samples were not triggered for any EC peaks during the 2012–13 wet season as the EC did not exceed the 42 μS/cm (corresponding to 3 mg/L magnesium) chronic exposure guideline.

Radium 226– Radium levels were within historic range. The difference between upstream and downstream results was close to zero. There were no triggered samples as EClevels didn’t rise above the limit.

In-situ Snail egg production– Both decreases and increases in snail egg production were observed with increasing electrical conductivity (EC) over the range 10–30 µS/cm. The lower Magela and higher Gulunguldownstream egg production, compared to respective upstream sites, reflects the inhibitory and enhanced effects respectively, associated with the different water temperature regimes in each of the creeks.

Macro-invertebrates – Only samples from Magela and Gulungul Creeks from the 2012–13 wet season were available for analysis prior to this meeting. Without comparable data from the two control streams, it is not possible to run the full ANOVA testing for 2013. Instead, a modified ANOVA model was run examining just the exposed creeks, Magela and Gulungul, to determine if any change in these streams has occurred. The ANOVA showed no significant change from the before (pre 2012–13) to after (2012–13) periods and this was consistent between both streams. These results confirm that the dissimilarity values for 2013 for both Magela and Gulungul Creeks do not differ from previous years.

Channel billabongs – The 2013 results continue to support previous suggestions that reduced Rainbowfish abundances occur after larger wet season rainfalls as a consequence of the more extensive upstream migration of Rainbowfish past Mudginberri Billabong in response to high stream flows. This has the effect of reducing the concentration of fish in the billabong during the recessional flow period. Conversely, years of below average rainfall, such as 2012–13, have the potential to reduce upstream migration of Rainbowfish, resulting in above average counts.

Gulungul Creek

Overall, the water quality measured in Gulungul Creek for the 2012–13 wet season showed greater fluctuation in EC at the upstream monitoring site compared to previous wet seasons. This was due to very low overall rainfall and the effects from small scale rain events within the Gulungul catchment area, which resulted in localised surface runoff and influx of solutes into the creek. The results for the downstream monitoring site are comparable to previous years and indicate that, based on water quality, the aquatic environment in the creek has remained protected from mining activities.

Continuous EC – There were 2 main events recorded during the period. The EC event on 9 April coincided with a localised rainfall event. EC at the downstream monitoring site peaked at 45 µS/cm and remained above 42 µS/cm for a period of 5 hours. Under the SSD ecotoxicology magnesium pulse framework, a 5 hour pulse duration would have an EC limit value of 581 µS/cm, thus with a peak of 45 µS/cm the downstream aquatic ecosystem was very unlikely to have been impacted by this event. Another localised rainfall event on 22 Mayflushed solutes into the creek resulting in a non-mine derived EC peak of 113 µS/cm at the upstream monitoring site. These solutes were washed down the creek and progressively diluted producing a peakof 46 µS/cm at the downstream monitoring site. The EC at the downstream monitoring site remained above 42 µS/cm for a period of 3.3 hours. Under the SSD ecotoxicology electrical conductivity-magnesium pulse framework, a 3.3 hour pulse duration would have an EC limit value of 1140 µS/cm, thus with a peak of 46 µS/cm, the downstream aquatic ecosystem was very unlikely to have been impacted by this natural event.

EC and grab samples – There has been good conformity between SSD continuous monitoring and stakeholder grab sample results, with slightly more variability in downstream results.

Continuous Turbidity – All peaks recorded were higher at upstream sites typical of smaller catchments. There was good conformity between SSD and stakeholder results.

U concentration – Uranium concentrations were very low compared to specifiedlimits. The three results above focus limits were all upstream.

Mn concentration– Manganese concentrations were generally below the Magela Creek Focus level. The highest recorded concentration was 22 μg/L at the upstream monitoring site on 11 February 2013.

Mg concentrations– Magnesium concentrations closely followed the EC continuous monitoring trace. The highest recorded concentration was 9.3 mg/L which occurred upstream of the minesite at GCUS on 22 May 2013. At the downstream monitoring site the concentrations of magnesium remained below 2.6 mg/L throughout the wet season.

Sulfate – Sulfate concentrations were generally low. The highest concentrations of 5 mg/L were observed at GCDS on 9 April 2013. The higher downstream results may be due to the black soils in lower catchment

Ngarradj

Overall, the water quality measured in Swift Creek (Ngarradj) for the 2012–13 wet season is comparable with previous wet seasons and does not show a detectible effect from the discharge of the IWMP.

Continuous EC and grab samples– continuous monitoring occurred from 17 January to 12 June. Results from grab samples followed trend in continuous monitoring results.

Continuous Turbidity –A number of gaps in data resulted from periods when the sonde was exposed and from intermittent issues with the telemetry.

Atmosphericradiological Monitoring

SSD radiological monitoring sites are located at the Jabiru water tower and Four Gates Road.

Radon monitoring–The quarterly average results reflect the typical wet-dry seasonal trend, with higher concentrations occurring in the dry season and lower concentrations occurring in the wet season. The total annual effective dose from radon progeny in air, which includes contribution from natural background, has been estimated to be 0.386 mSv at Jabiru town and 0.372 mSv at Mudginberri.