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1 ./01&2/M./T34 1MP36T ST3T.M./T 1a$t3l$4 536e-al4 13$ %3te9 Sol9ara 1 Pro;ect!"l$%e ( Mai$ &e(ort Te-t )e*te%,e- 2//0 :;

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3 ENVIRONMENTAL IMPACT STATEMENT VOLUME A: MAIN REPORT TEXT CR 7008_09_v4 September 2008 Pty Ltd ABN Level 21, 12 Creek Street Brisbane QLD 4000 Australia T (+61) (7) F (+61) (7)

4 Project director David Gwyther Project manager Michael Wright Version: Details: Approved: CR 7008_09_v1 Initial draft to client July 2008 CR 7008_09_v2 Second draft to client August 2008 CR 7008_09_v3 Third draft to client September 2008 CR 7008_09_v4 Final for exhibition September 2008

5 CONTENTS 1. INTRODUCTION Background Project History Proponent Purpose of the Development Environmental Settings and Issues This Report Approach to EIS Statutory Context EIS Scope Report Structure Areas Defined VIABILITY OF THE PROJECT Proponent s Credentials Feasibility Investigations Geophysics Engineering Geotechnical Investigations Resource Investigation Oceanography Water and Sediment Quality Biology Compatibility with PNG Government Strategies POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK PNG Legislation and Agreements Mining Act Environment Act Other Legislation and Regulations Existing Proposed Guidelines International Environmental Agreements Socioeconomic Impact Assessment Requirements International Standards and Principles Australian Guidelines Equator Principles 3-7 i

6 4. STAKEHOLDER CONSULTATION Overview Independent State of Papua New Guinea Consultation Requirements Stakeholders Public Consultation and Disclosure Program Goals Consultation Methods Consultation Program Documentation of Stakeholder Consultation Consultation Outcomes Continuing Consultation DESCRIPTION OF THE PROPOSED DEVELOPMENT Project Area Definition Solwara 1 and South Su Barge Corridor and Crew Transfers Port of Rabaul Project Components Offshore Onshore Rationale for the Location of Project Components Mining Method Location of Onshore Facilities Mineral Resource Scale of the Project Offshore Mining Equipment Seafloor Mining Tool Riser and Lift System Mining Support Vessel Remotely Operated Vehicles Mining Mine Plan General Mining Sequence Hazardous Materials Management Transportation Storage, Handling and Disposal Fuel and Oil Explosives Workforce Employment Policy Workforce Construction and Operating Standards Design Codes Health and Safety 5-18 ii

7 5.11 Commissioning Decommissioning and Closure Offshore Infrastructure Onshore Facilities DEVELOPMENT TIMETABLE DESCRIPTION OF THE EXISTING ENVIRONMENT General Tectonics and Seismicity Volcanism Tsunamis Studies Completed Hydrothermal Vents Introduction Vent Environment and Biology Issues and Studies Meteorology and Air Quality Climate Air Quality Physical Oceanography and Deep Sea Sedimentation Regional Current Circulation Tides in the Eastern Bismarck Sea Oceanography at Solwara Deep Sea Sedimentation Water Quality Sediment Quality Seafloor Geological Setting Sediment Mineralogy and Geochemistry Biological Environment Surface and Water Column Seafloor Underwater Light, Noise and Vibrations Description of the Existing Nearshore and Onshore Environment General Marine Environment Terrestrial Flora and Fauna Landform, Soils and Geology Air Quality and Noise Cultural Heritage Existing Use Port Management SOCIOECONOMIC ENVIRONMENT Papua New Guinea in Brief Population and Society Sovereignty Communities, Religion and Language 8-1 iii

8 8.1.4 Land Ownership Economy United Nations Millennium Development Government Project Impact Area Kavieng Rabaul Fisheries Commercial Fisheries Subsistence Fisheries Simpson Harbour Transportation ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES Definitions and Impact Assessment Criteria Extent Duration Severity Air Quality Oceanography and Deep-sea Sedimentation Offshore Water Quality Issues to be Addressed Mitigation and Management Measures Residual Impacts Sediment Quality Issues to be Addressed Mitigation and Management Measures Residual Impacts Biological Environment Surface, Water Column and Nearshore Seafloor Habitat and Biodiversity Light and Underwater Noise Maritime Safety and Interactions with Shipping Issues to be Addressed Mitigation and Management Measures Residual Impacts Quarantine Issues to be Addressed Mitigation and Management Measures Residual Impacts Waste Management and Emergency Response Issues to be Addressed Mitigation and Management Measures Residual Impacts Port of Rabaul Marine Environment Landform, Soils and Geology 9-39 iv

9 Noise Air Quality SOCIOECONOMIC IMPACTS AND MITIGATION AND MANAGEMENT Issues to be Addressed Mitigation and Management Measures Optimisation of Benefits Management and Mitigation Residual Impacts Economic Community Development Fund Industry Diversity and Skills Development In-migration and Community Conflicts Fisheries and Marine Traffic ACCIDENTAL EVENTS AND NATURAL HAZARDS General Extreme Weather Issues to be Addressed Mitigation and Management Measures Residual Impacts Seismicity, Volcanism and Tsunamis Issues to be Addressed Mitigation and Management Measures Residual Impacts Hazardous Material Leakage or Spillage Issues to be Addressed Mitigation and Management Measures Residual Impacts Fire and Explosion Issues to be Addressed Mitigation and Management Measures Residual Impacts Collisions Issues to be Addressed Mitigation and Management Measures Residual Impacts GREENHOUSE GAS EMISSIONS AND CLIMATE CHANGE Introduction Estimated GHG Emissions GHG Emissions Assessment ENVIRONMENTAL MANAGEMENT, MONITORING AND REPORTING Introduction Organisational Structure and Responsibilities Environmental Management System Environmental Management Plan 13-2 v

10 Mitigation and Management Monitoring Reporting STUDY TEAM Nautilus EIS Specialist Subconsultants REFERENCES GLOSSARY 16-1 Tables 1.1 EIS Supporting Studies Other environmental legislation and regulations General legislation and regulations Proposed marine pollution bills Applicable international agreements to which PNG is a signatory Applicable IFC guidelines Project stakeholders Public consultation Project response to issues raised during consultation sessions Indicated and inferred mineral resource estimate (4% Cu cut off) Comparison of the with other PNG mines at time of EIS approval SMT instrumentation and sensors Mining support vessel technical details Unconsolidated sediment removal rates Competent waste material side casting rates Offshore operations workforce Geophysical and environmental studies completed at Manus Basin General water quality and filtered metals at Solwara 1 in General water quality and filtered metals at Solwara 1 in 2006 (cont d) Wave Mercury 07 Campaign filtered metal concentrations at Solwara Cetacean species likely to occur at Solwara Meiobenthos from sediments at Solwara 1 and South Su (numbers of individuals/10 cm 2 in top 1 cm of sediment) Meiobenthos taxa (number of individuals/10 cm 2 ) in abyssal plain sediments remote from Solwara Marine water quality adjacent to the Port of Rabaul Port of Rabaul Ship Movement 1993 to Port of Rabaul Berth Dimensions PNG development indicators at New Ireland performance against millennium goals East New Britain performance against millennium goals PNG domestic and locally based foreign fishing fleet catch composition International fleet catch composition in the PNG EEZ 8-8 vi

11 9.1 Maximum acid-extractable metal concentrations measured in samples Maximum concentrations of the metals measured in Phase 1 elutriate tests Plume concentrations probability Deposition of unconsolidated sediment and competent waste rock Estimates of ballast water discharge Predicted emissions of greenhouse gases (CO2-equivalent) Summary of proposed seafloor monitoring program 13-6 Boxes 13.1 Environment Policy 13-2 Attachment A Risk Register vii

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