Plan. Mine and Rail Dust Management Plan. Environment. August 2011 45-PL-EN-0030

Plan Mine and Rail Dust Management Plan Environment August 2011 45-PL-EN-0030

Mine and Rail Dust Management Plan Page 3 of 42 Document Number _45-PL-EN-0030 Rev No. 0 Accountability Matrix Title Accountable Person Signature of Accountable Person Group Manager, Government Relations Deidre Willmott Exploration and Evaluation Director Eamon Hannon General Manager, Cloudbreak Kevin McLean General Manager, Christmas Creek Viv Roberts* General Manager, Rail Ron Dagostino Project Director, Solomon Blake Cannavo Project Director, Port and Rail Expansion Peter Thomas Project Director, Chichester Mark Skelton The original signatures are retained by Fortescue s Document Management Area. *Note: The Accountable Person identified in the Matrix is the person that fills the applicable role at the time of signing. This may change over time whilst the Accountable Role should remain the same.

Mine and Rail Dust Management Plan Page 4 of 42 Document Number 45-PL-EN-0030_Rev No. 0 TABLE OF CONTENTS 1. INTRODUCTION... 6 1.1. REQUIREMENT FOR MANAGEMENT PLAN... 6 1.2. OBJECTIVE AND SCOPE... 6 1.3. DEFINITION OF DUST... 7 1.4. LEGISLATION AND REGULATORY FRAMEWORK... 7 2. ROLES AND RESPONSIBILITIES... 8 3. STAKEHOLDER CONSULTATION... 9 4. KEY ENVIRONMENTAL ACTIVITIES... 9 5. POTENTIAL ENVIRONMENTAL IMPACTS... 10 6. ENVIRONMENTAL MANAGEMENT... 11 7. MONITORING GUIDELINE... 14 8. AUDIT... 14 9. CORRECTIVE ACTION... 15 10. REVIEW... 16 11. REFERENCES... 17

Mine and Rail Dust Management Plan Page 5 of 42 Document Number 45-PL-EN-0030_Rev No. 0 LIST OF FIGURES Table 1: Commonwealth and State Legislation Relating to Dust... 7 Table 2: Potential Environmental Impacts Arising from Fortescue s Activities... 10 Table 3: Description of Key Elements of Environmental Management Process to Achieve Identified Objectives... 11 Table 4 Key Management Actions for Management of Dust Emissions from Mine and Rail Activities in the Fortescue Operations Area... 12 Table 5 Air quality standards and criteria for dust deposition... 15 LIST OF APPENDICES Appendix A: Project Background Appendix B: Data Flow Diagram Appendix C: Cross reference to State and Federal Statutory Requirements Appendix D: Dust Characteristics Appendix E: Naturogenic Dust Regional Influences Appendix F: Key Emissions Activities Appendix G: Key Environmental Impacts Appendix H: Dust Monitoring Guidelines

Mine and Rail Dust Management Plan Page 6 of 42 Document Number 45-PL-EN-0030_Rev No. 0 1. INTRODUCTION Fortescue Metals Group (Fortescue) is an integrated business comprised of mine, rail and port operations based in the Pilbara region of Western Australia, with its head office located in Perth. Detailed background information regarding the timing and nature of Fortescue s environmental approvals under the Environmental Protection Act 1986 (WA), the Environment Protection and Biodiversity Conservation Act 1999 (Cth), current operations and plans for future expansion is contained in Appendix A. 1.1. REQUIREMENT FOR MANAGEMENT PLAN This Mine and Rail Dust Management Plan (MRDMP) is required by the Minister as part of the environmental approval of Fortescue s Iron Ore related infrastructure in the Pilbara under Ministerial Statements 707 and 721. Existing projects and future developments will be required to prepare and implement site-specific dust management and monitoring programs to give effect to this MRDMP. Guidance for the development of site specific monitoring programs has been provided in Appendix H. The data flow diagram for this Plan is available in Appendix B. 1.2. OBJECTIVE AND SCOPE Fortescue recognises that its activities can result in the generation of dust, and in combination with naturally occurring background levels, have the potential to impact on the local environment and surrounding residential communities. The MRDMP is intended to provide a consistent approach for dust management across Fortescue Mine and Rail Operations, with the aim of continuously minimising dust generation from Fortescue activities, reducing direct and indirect impacts on amenity and environmental values. The scope of this Plan is limited to dust emissions from Fortescue s Mine and Rail Operations. Dust emissions associated with Port Operations or related to human health are addressed in the Port Facility Dust Environmental Management Plan (P-PL-EN-0010), the Asbestos Management Procedure (45-PR-SA-0024) and the Dust Management Procedure (200CO-00000-PR-SA-0006). The MRDMP was initially developed to meet the requirements of Condition 2 in Ministerial Statements 707 and 721, but is intended to provide guidance on dust management at all Fortescue Mine and Rail Operations. The sections of this Plan which address these conditions are identified in Appendix C.

Mine and Rail Dust Management Plan Page 7 of 42 Document Number 45-PL-EN-0030_Rev No. 0 This Plan will replace the Chichester Operations Dust Environmental Management Plan (CB-PL- EN-0009) and the Construction Dust Management Plan (45-PL-EN-0012). 1.3. DEFINITION OF DUST Dust is a generic term used to describe solid airborne particles generated and dispersed into the air by processes such as handling, crushing and grinding of organic or inorganic materials such as rock, ore, metal, coal, wood or grain and stockpiling of materials 1. Dust is a common component of particulate matter (PM) in air. Two key features characterise particulate matter - particle size (density and porosity) and composition (chemistry and moisture). Size and composition vary with location and the process or activity releasing the particles. PM less than 50 micrometres (μm) are referred to as Total Suspended Particulates (TSP), while finer dust particles less than 10 μm and 2.5 μm in diameter are referred to as PM 10 and PM 2.5 respectively. Total suspended particulates are associated with the potential for nuisance or loss of amenity, while PM 10 and PM 2.5 are associated with potential adverse health effects which are not addressed in this Plan. Appendix D and E summarise the characteristics of dust and naturogenic dust generation and dispersion characteristics in the Pilbara Region. 1.4. LEGISLATION AND REGULATORY FRAMEWORK Fortescue employees and contractors are required to comply with all relevant environmental Commonwealth and State legislation. The legislation that relates to dust emissions in Western Australia is presented in Table 1. Table 1: Commonwealth and State Legislation Relating to Dust Legislation Environment Protection and Biodiversity Conservation Act 1999 (Cth) Environmental Protection Act 1986 (WA) Environmental Protection (Kwinana) (Atmospheric Waste) Regulations 1992 Application Protection on environment matters of national significance Prevention, control and abatement or pollution and conservation, protection and enhancement of the environment Provides criteria for particulate matter for Western Australia 1 Dust as defined in A guideline for the development and implementation of a dust management program (DEC 2008)

Mine and Rail Dust Management Plan Page 8 of 42 Document Number 45-PL-EN-0030_Rev No. 0 National Environment Protection Council (Western Australia) Act 1996 (WA) Establishes National Environmental Protection Measures (NEPM) for ambient air quality Other relevant standards and guidelines relevant to this Plan include: AS 3580.1.1:2007 Methods for sampling and analysis of ambient air Guide for siting air monitoring equipment; AS 3580.9.3:2003 - Methods for sampling and analysis of ambient air Determination of suspended particulate matter Total suspended particulate matter (TSP) High volume sampler gravimetric method; AS 3580.10.1:2003 Methods for sampling and analysis of ambient air Determination of particulate matter - Deposited matter Gravimetric method; and Draft guideline for the development and implementation of a dust management program (Department of Environment and Conservation 2008). The following Fortescue documents are also of relevance to the MRDMP: Dust Deposition Gauges Installation and Operation Procedure (45-PR-EN-0017); Dust Management Procedure (200CO-00000-PR-SA-0006); Environmental Document Standard Terminology (100-GU-EN-0002); Incident Event Reporting Procedure (100-PR-SA-0011); and Rehabilitation and Revegetation Management Plan (45-PL-EN-0023). 2. ROLES AND RESPONSIBILITIES All Fortescue employees and contractors are required to comply with the requirements of this MRDMP. Accountability for fulfilling the requirements of this MRDMP is dependent on the stage of project development (construction, operations, decommissioning) and the project type (rail or mine). During construction stages, whether activities are undertaken by an external service provider or internal Fortescue personnel, the Project Director will be accountable for ensuring the requirements of this MRDMP are met. During operational stages, the General Manager (Rail or Mine) will be accountable for ensuring the requirements of the MRDMP are met. Where responsibilities are delegated, this must be clearly recorded and communicated. Table 4 attributes specific management actions to the appropriate personnel.

Mine and Rail Dust Management Plan Page 9 of 42 Document Number 45-PL-EN-0030_Rev No. 0 When site specific dust management programs are developed to support this MRDMP, the RASCI framework should be utilised to delegate roles, responsibilities, and review and approval levels. RASCI is used to denote: R-Responsible A-Accountable S-Supportive C-Consulted I-Informed Those who do the work to achieve the task. Those who are ultimately accountable for the completion of the deliverable or task and the one to whom the Responsible person is accountable. Resources allocated to the Responsible person and who will also assist in completing the task. Those whose opinions are sought, two-way communication. Those whom are kept informed, one-way communication. 3. STAKEHOLDER CONSULTATION Fortescue has undertaken an extensive stakeholder consultation program whereby landowners, regulators and other relevant parties have been consulted with regard to investigation and design of the mine sites and rail infrastructure through the environmental approvals process (see Section 7 in Environ 2005a, and Section 6 in Environ 2005b, Section 6 in Fortescue Metals Group, 2010). The Department of Environment and Conservation (DEC) and the Office of the Environmental Protection Authority (OEPA) were consulted regarding the original Construction Dust Management Plan (45-PL-EN-0012) and the Chichester Operations Dust Environmental Management Plan (CB-PL-EN-0009). This MRDMP was submitted to the OEPA for their records. 4. KEY ENVIRONMENTAL ACTIVITIES Many of the activities 2 associated with Fortescue s exploration, construction, operation and decommissioning activities have the potential to impact on the environment. The key activities undertaken by Fortescue which have the potential to generate dust emissions are described in Appendix F and include: Vegetation clearing and ground disturbance; Drilling; Construction and establishment of infrastructure and linear infrastructure; 2 Fortescue uses the term activities to refer to Environmental Aspects as defined by ISO14001.

Mine and Rail Dust Management Plan Page 10 of 42 Document Number 45-PL-EN-0030_Rev No. 0 Open pit mining (this includes blasting activities); Ore processing; Stockpiling; Materials handling; and Vehicle movement. 5. POTENTIAL ENVIRONMENTAL IMPACTS The key potential impacts resulting from dust emissions generated from Fortescue s activities are presented in Table 2. Table 2: Potential Environmental Impacts Arising from Fortescue s Activities Potential Environmental Impact Details Amenity impacts may include: Reduced amenity Preventing members of the community from undertaking outdoor activities in comfort; Soiling clothing on washing lines; Dust build-up on buildings and vehicles requiring frequent washing; and Staining of surfaces. Vegetation health/loss Dust interferes with physiological processes such as photosynthesis, transpiration and respiration. In extreme cases dust can smother and kill vegetation and lead to increased incidence of plant pests and diseases. Reduction in air quality Wind borne dust can impact on local air quality. Fauna and habitat degradation Through prevention of seedling recruitment and resource competition, dust can damage native habitat, rendering it less valuable to indigenous fauna. Habitat degradation may lead to fragmentation/loss of foraging areas and retreats and expose fauna to an increased risk to predation. This can restrict the movement of animals within their established activity areas or home ranges leading to long term impacts.

Mine and Rail Dust Management Plan Page 11 of 42 Document Number 45-PL-EN-0030_Rev No. 0 6. ENVIRONMENTAL MANAGEMENT A series of environmental management objectives have been developed to mitigate potential environmental impacts resulting from dust emissions. These objectives include: 1. Protect the surrounding land users, such that dust emissions will not adversely impact upon their amenity; 2. Ensure dust emissions, both individually and cumulatively, meet relevant regulatory criteria; and 3. Ensure dust emissions do not adversely impact on environmental values. For each objective, management actions have been developed to ensure the impacts from Fortescue s operations are managed, and that appropriate monitoring, reporting and corrective action functions are implemented to support the successful implementation of the management actions. The key elements of the environmental management process associated with each objective are described in Table 3. Table 3: Description of Key Elements of Environmental Management Process to Achieve Identified Objectives Element Objective Management Action Performance Indicators Reporting/Evidence Responsibility Definition/Description What is intended to be achieved. Tasks undertaken to enable the objective to be met. Metrics for evaluating the outcomes achieved by Management Action. Demonstrates that the Management Action has been applied and the outcome evaluated. Accountability for ensuring management action is completed. The key management actions, performance indicators, evidence, timing and responsibilities for each objective are provided in Table 4.

Mine and Rail Dust Management Plan Page 12 of 42 Document Number 45-PL-EN-0030_Rev No. 0 Table 4 Key Management Actions for Management of Dust Emissions from Mine and Rail Activities in the Fortescue Operations Area Objective 1 Protect the surrounding land users, such that dust emissions will not adversely impact upon their amenity Reference Management Action Performance indicators Reporting / Evidence Timing Responsibility 1.1 Undertake baseline dust monitoring in accordance with AS 3580.10.1 Determination of Particulate Matter Deposited Matter Gravimetric Method to quantify background dust levels prior to construction. Modeling reports are developed Modeling reports Design Manager, Environmental Approvals 1.2 Undertake dust dispersion modeling to determine potential impacts of dust emissions on sensitive receptors and vegetation. Where required, include mitigation measures in the project design. Modeling reports Audit design and location of infrastructure to reduce potential impacts of dust emissions Modeling reports Design Manager, Environmental Approvals Objective 2 Ensure dust emissions, both individually and cumulatively, meet relevant regulatory criteria Reference Management Action Performance indicators Reporting / Evidence Timing Responsibility 2.1 Inform all personnel and contractors working in the Fortescue Operations Area of their responsibilities in relation to dust management. Staff inductions Toolbox meetings Site induction and toolbox meeting minutes Exploration/ Exploration Development/ Construction/ Operation Group Manager Resource Geology Project Manager HSES Manager 2.2 Minimise vegetation clearing and vegetation disturbance. Conduct vegetation clearing in accordance with a permit issued under the Ground Disturbance Permit Procedure (100-PR-EN-0004) and the Vegetation Clearing and Topsoil Management Procedure (45-PR-EN-0013). Ground Disturbance Permits (GDP) obtained for all clearing Clearing of vegetation within specified GDP boundaries No significant impact on significant flora or vegetation Ground Disturbance Permits BMS record Survey reports Incident reports Annual Environmental Report Exploration/ Exploration Development/ Construction/ Operation Group Manager Resource Geology Project Manager Manager Mining Manager Rail Operations 2.3 Conduct a risk assessment and develop and implement dust suppression measures (e.g. water carts, vehicle speed restrictions, sealing roads) in identified high risk areas (e.g. high traffic areas such as access and haul roads and laydown areas) to minimise the potential for dust deposition on vegetation or a reduction in amenity. Risk assessment conducted Measures implemented in identified high risk areas in accordance with risk assessment outcomes Monitoring reports completed No significant impact on significant flora or vegetation Risk assessment methodology Monitoring reports Annual Environmental Report Construction/ Operation Project Manager Manager Mining Manager Rail Operation 2.4 Develop and implement a monitoring program as outlined in the Dust Monitoring Guidelines (45-GU-EN-0004). Dust Monitoring Program implemented Timely analysis of data to develop management triggers and thresholds Dust Monitoring Program Annual Environmental Report Construction/ Operation/ Decommissioning/ Closure HSES Manager 2.5 Investigate and address any dust related environmental incidents, including complaints or incidents, where dust trigger levels are exceeded, in accordance with the Incident Event Reporting Procedure (100-PR-SA-0011). BMS up-to-date Reporting form completed BMS record Reporting form Annual Environmental Report Construction/ Operation Project Manager HSES Manager

Mine and Rail Dust Management Plan Page 13 of 42 Document Number 45-PL-EN-0030_Rev No. 0 Objective 3 Ensure dust emissions do not adversely impact on environmental values Reference Management Action Performance indicators Reporting / Evidence Timing Responsibility 3.1 Where dust emissions may significantly impact on conservation values of significant flora/ vegetation or result in habitat loss of significant fauna species, implement dust suppression measures in accordance with the Significant Flora and Vegetation Management Plan (45-PL-EN-0017) and the Chichester Operations Fauna Management Plan (CB-PL-EN-0009). Risk assessment conducted Measures implemented in identified high risk areas in accordance with risk assessment outcomes Monitoring reports completed No significant impact on significant flora or vegetation Risk assessment methodology Monitoring reports Annual Environmental Report Construction/ Operation Project Manager Manager Mining Manager Rail Operations 3.2 To ensure vegetation conservation values are maintained, conduct progressive rehabilitation in accordance with the Rehabilitation and Revegetation Management Plan (45-PL-EN-0023) or where applicable a Mine Closure Plan developed in accordance with the Guidelines for Preparing Mine Closure Plans. Vegetation in rehabilitated areas will have equivalent values as surrounding natural ecosystems Monitoring Program developed and implemented No erosion is evident Mine closure plan Monitoring Program Annual Environmental Report Construction/ Operation/ Decommissioning/ Closure Manager Mining HSES Manager

Mine and Rail Dust Management Plan Page 14 of 42 Document Number 45-PL-EN-0030_Rev No. 0 7. MONITORING GUIDELINE Guidelines for monitoring dust emissions in the Fortescue Operations Area can be found in Appendix H. This document provides guidance for the development and implementation of site specific Monitoring Programs; by adopting these guidelines a consistent monitoring approach can be applied across all of the Fortescue Operations. The objectives of this Monitoring Program are: 1. Measure change in amenity and/or condition of vegetation communities within and adjacent to Fortescue Operations; 2. To the extent possible, establish if changes in amenity and/or condition of vegetation communities are occurring as a result of Fortescue s activities; and 3. Monitor and measure the success of management measures to inform an adaptive management approach. The rationale for the selection of dust monitoring parameters to be used across Fortescue s Operations Area is provided in the Dust Monitoring Guidelines (45-GU-EN-0004). A risk based approach was used to select monitoring parameters based on the types of impacts that could potentially be caused by Fortescue s activities, and the level of threat posed to amenity and vegetation conservation values by these activities. 8. AUDIT Internal auditing of activities associated with this MRDMP will be carried out in accordance with Fortescue s internal audit schedule. Audit criteria may include, but is not limited to: Management actions within this Plan; Implementation of site specific monitoring programs; and Compliance with regulatory requirements including conditions and commitments within Ministerial Statements. Where non-conformance issues or opportunities for improvement are identified these will be documented and tracked in Fortescue s Business Management System (BMS).

Mine and Rail Dust Management Plan Page 15 of 42 Document Number 45-PL-EN-0030_Rev No. 0 9. CORRECTIVE ACTION Contingency measures will be triggered in the event of two or more survey events revealing significant decline in amenity or vegetation condition Expert opinion will be sought if and when required, to guide contingency measures which will include further survey work to better understand influences causing those changes in the environment. By understanding why certain management strategies or monitoring does not work, specialist advice can be used to modify these and develop new mitigation and monitoring measures. In the absence of quantitative management triggers being developed (e.g. at the outset of a site monitoring program) the following interim triggers will apply: 1. If mean vegetation condition (dust parameter) declines by greater than 10% in potentially impacted sites relative to control sites over 3 successive monitoring periods, take further action to investigate the cause of the decline. 2. If vegetation death occurs in >10% of individuals at any monitoring site over successive monitoring periods immediately investigate the cause and where possible instigate preventative and/or remedial actions to prevent further decline. 3. If a dust deposition gauge at any monitoring site returns results which are greater than those listed in Table 5 (above background concentrations) over successive monitoring periods, take further action to investigate the cause of the increase. Table 5 Air Quality Standards and Criteria for Dust Deposition Pollutant Averaging Period µg/m3 3 Dust deposition Annual (total) Annual (increase) 4 grams/m2/month 2 grams/m2/month Any dust related environmental incidents, including complaints, where dust trigger levels are exceeded shall be considered an incident and reported and investigated as per the Incident Event Reporting Procedure (100-PR-SA-0011). Causes of incidents will be determined and management procedures will be modified, with measures taken (as required) to prevent re-occurrence of incidents. 3 In the absence of WA guidelines for dust deposition, the guidelines from NSW Department of Environment, Climate Change and Water and Victoria Environmental Protection Authority have been adopted.

Mine and Rail Dust Management Plan Page 16 of 42 Document Number 45-PL-EN-0030_Rev No. 0 10. REVIEW It is important that plans and procedures are frequently reviewed and revised as Fortescue s operations change and opportunities for improved management practices are identified. This Management Plan will be reviewed every five years, or when significant additional information comes to hand. Upon review, the document will be revised where appropriate and the revision status will be updated in accordance with Fortescue s document control procedures.

Mine and Rail Dust Management Plan Page 17 of 42 Document Number 45-PL-EN-0030_Rev No. 0 11. REFERENCES BHPBIO (2002). Port Hedland Dust Management Program, BHP Billiton, April 2002. Biota Environmental Sciences (2004a). Vegetation and Flora Survey of the Proposed FMG Stage A Rail Corridor. Unpublished report for Fortescue Metals Group. August 2004. Biota Environmental Sciences (2004b). Fortescue Metals Group Stage B Rail Corridor, Christmas Creek, Mt Lewin, Mt Nicholas and Mindy Mindy Mine Areas: Vegetation and Flora Survey. December 2004. DEC (2008). Draft Guideline for the Development and Implementation of a Dust Management Program, Department of Environment and Conservation, 2008. DEH (1998). Dust Control, Best Practice Environmental Management in Mining Series, Department of Environment and Heritage, 1998. DoE (2004). Pilbara Air Quality Study Summary Report, Air Quality Management Branch, Department of Environment, August 2004. ENVIRON (2004a). Public Environmental Review: Pilbara Iron Ore and Infrastructure Project: Port and North-South Railway (Stage A). Report prepared for Fortescue Metals Group, September 2004. ENVIRON (2004b). Port Hedland Dust Modelling Assessment. Report prepared for Fortescue Metals Group Limited, August 2004 ENVIRON (2005a). Public Environmental Review: Pilbara Iron Ore and Infrastructure Project: Stage B East-West Railway and Mine Sites. Report prepared for Fortescue Metals Group Limited, January 2005. ENVIRON (2005b). Draft Public Environmental Review: Pilbara Iron Ore and Infrastructure Project: Cloud Break. Report prepared for Fortescue Metals Group Limited, July 2005. Environ (2005c). Construction Dust Management Plan. Pilbara Iron Ore and Infrastructure Project, Stage A, B and Cloud Break. Report for Fortescue Metals Group Limited (FMG). Fortescue Metals Group Ltd (2006). Pilbara Iron Ore and Infrastructure Project. Construction Dust Management Plan E-SA-RP-0206-1181, August 2006. Fortescue Metals Group Ltd (2007). Pilbara Iron Ore and Infrastructure Project, Chichester Operations Dust Management Plan CB-PL-EN-0009, November 2007. Mattiske Consulting Pty Ltd (2005). Flora and Vegetation on the Cloud Break and White Knight Leases. Report prepared for Fortescue Metals Group Limited, February 2005.

Appendices

Appendix A. Project Background

Fortescue Metals Group Background Fortescue Metals Group (Fortescue) is an integrated business comprised of mine, rail and port operations based in the Pilbara region of Western Australia with its head office located in Perth. Fortescue has commenced operation of the Pilbara Iron Ore and Infrastructure Project (the Project), which consists of several iron ore mines and associated rail and port infrastructure in the Pilbara region of Western Australia. The Project was granted Major Project Facilitation Status in December 2004 and Fortescue has signed two Agreements with the State of Western Australia: The Railway and Port (The Pilbara Infrastructure Pty Ltd) State Agreement for the port and rail infrastructure to transport ore from the mines to the port; The Iron Ore (FMG Chichester Pty Ltd) Agreement for the iron ore mines. The Project has been developed in the following stages: Stage A, consisting of a two-berth iron ore export facility at Port Hedland and a northsouth railway from the central Pilbara to Port Hedland, approved under Ministerial Statement 690; Stage B, consisting of iron ore mines in the eastern Pilbara (Christmas Creek) and an east-west spur rail line connecting to the Stage A railway; approved under Ministerial Statement 707. (Note this approval included the Mindy Mindy mine site but this has not been developed to date); Cloudbreak iron ore mine west of the Christmas Creek area, approved under Ministerial Statement 721 and federal approval under the EPBC Act (EPBC 2005/2205); Port facility upgrade consisting of a third berth at Anderson Point, Port Hedland, approved under Ministerial Statement 771; Solomon iron ore project consisting of two new mines and a railway connecting to the existing Fortescue rail line, approved under Ministerial Statement 862 and federal approval under the EPBC Act (EPBC 2010/5567); Christmas Creek water management scheme to increase the mine dewatering rate and to inject surplus water into two brackish and one saline injection zones, approved under Ministerial Statement 871 and federal approval under the EPBC Act (EPBC 2010/5706); Additional rail infrastructure between the Herb Elliot Port Facility at Port Hedland and the Cloudbreak Mine Site, approved under Ministerial Statement 690 and 707 and federal approval under the EPBC Act (EPBC 2010/5513). Changes to Ministerial Statements 690, 707, 721 and 771 were made and approved under Section 45 or 46 of the Environmental Protection Act 1986 (EP Act).

Fortescue is extending its current operations in the Pilbara by developing the Solomon Project, which includes two new mine sites (Firetail and Kings), and a rail line to support the new sites. The Solomon Project area (Solomon) is located approximately 60 kilometres (km) north of Tom Price and is situated on both sides of the rail line operated by Pilbara Iron (Rio Tinto). Access to Solomon is via the public roads running north of Tom Price and also from the Pilbara Iron rail access road. In addition to the Solomon project, expansion of mining to the west is proposed within the Western Hub Project area which contains approximately 10 ore bodies. Expansion of mining is also proposed east of Solomon at Nyidinghu and north east at North Star. Fortescue is also conducting drilling programmes to further delineate resources and iron ore reserves within tenements surrounding Solomon and in additional locations throughout the Pilbara. In addition to its wholly owned tenements, Fortescue is party to joint ventures and agreements with other tenement holders within the Pilbara region and is the manager of iron ore exploration operations upon these tenements.

Appendix B. Data Flow Diagram

MS 690 Port and North- South Railway (Stage A) MS 707 East-West Railway and Mine Sites (Stage B) MS 721 Cloudbreak MS 771 Port Facility Upgrade Third Birth The MS requires a Management Plan This MS is outside the scope of this Plan Mine and Rail Dust Management Plan 45-PL-EN-1005 End Is dust monitoring required? Yes Solomon Dust Monitoring Guidelines 100-GU-EN-0013 No Christmas Creek Dust Monitoring Program Dust Deposition Gauges Installation and Operation 45-PR-EN-0017 Solomon Cloudbreak Christmas Creek Is dust management required? Yes Rail Cloudbreak Dust Management Program No Rail End

Appendix C. Cross Reference to State and Federal Statutory Requirements

Ministerial Conditions and Commitments Related to the MRDMP Ministerial Statement Requirement or Issue Location in this Plan Prepare a Construction Dust Management Plan which addresses: Minimising clearing Section 6 707 and 721 Minimising the generation of dust and impacts and emissions on and off site Section 6 Dust control measures Section 6 Outlines a complaints and response process Section 6 Implement the approved Construction Dust Management Plan Section 1 Prepare an Operations Dust Management Plan which addresses: Minimising the generation of dust and impacts and emissions on and off site Section 6 Dust control measures Section 6 707 and 721 Ore stockpiles moisture content Section 6 Dust monitoring network Section 6 Outlines a complaints and response process Section 6 Implement the approved Operations Dust Management Plan Section 1

Appendix D. Dust Characterisation

Dust Characterisation Definition Dust is a common component of particulate matter (PM) in air. Two key features characterise particulate matter - particle size (density and porosity) and composition (chemistry and moisture). Size and composition vary with location and the process or activity releasing the particles. Dust and other air pollutants can arise from a range of natural and man-made sources causing various acute and chronic health effects, as well as nuisance and visibility impacts. It is most likely to be generated and transported when: Stockpiles and cleared areas are dry (i.e. during periods of low rainfall and high evaporation); and Wind speeds are sufficiently high to enable wind-blown dust to be scoured from stockpiles and cleared areas. Physical Nature Airborne particles are characterised as fumes, smokes, mists or dusts depending on the nature of the particle and its size. Particles are commonly classified by size expressed as equivalent aerodynamic diameter (EAD) in micrometres (μm) as follows: coarse particulate matter (10μm 2.5μm in aerodynamic diameter); fine particulate matter (<2.5 0.1μm in aerodynamic diameter); and ultrafine particulate matter (< 0.1μm in aerodynamic diameter). PM 10 is commonly used to describe all particles 10μm in aerodynamic diameter. It is well accepted, both nationally and internationally, that monitoring for PM 10 is an appropriate method of determining the community s exposure to potentially harmful dust. Chemical Composition The chemical composition of dust particles will depend on the nature of the source material. For example, wind-borne dust from cleared areas will reflect the composition of the underlying soil types. In cases where soil has been contaminated, dust may also be associated with inorganic and organic pollutants.

Appendix E. Naturogenic Dust Regional Influences

Naturogenic Dust Regional Influences The inland Pilbara region is classified as arid, with most rain falling during the hot summer months. Climatic conditions in the Pilbara are influenced by tropical cyclone systems predominately between January and March. Ambient dust concentrations can be naturally high due to low rainfall and high evaporation, causing soils to desiccate, relatively sparse natural vegetation, frequent high winds, and frequent uncontrolled bush fires. Temperature The Pilbara region experiences the following meteorology: An arid-subtropical climate. Annual rainfall in the region is low, averaging 313 mm and 310 mm at Port Hedland and Newman respectively. The majority of this rain falls during cyclonic events between January and March, with almost no rain falling between August and November. Rainfall events in the Pilbara are generally very concentrated, averaging more than 10 mm of rainfall per rain day in Port Hedland, and slightly less than this figure in Newman. Temperature is greater during summer months and cooler during winter months with a mean range of 8 C to 39 C. Average summer maximum temperatures are generally between 35 C and 40 C and winter maximum temperatures generally between 22 C and 30 C. Low humidity, ranging between 14 per cent and 56 per cent. Evaporation is consistent with rainfall and temperature with greater evaporation recorded during hotter, wetter summer months than in the drier, cooler months. Figure B1 and Figure B2 show the monthly maximum and minimum temperatures in Newman and Port Hedland respectively.

Maximum vs. Minimum Temperature (Newman) 45 40 35 Temperature (Degree C) 30 25 20 15 10 5 0 January February March April May June July August September October November December Month Mean maximum temperature (Degrees C) Mean Minimum temperature (Degrees C) Figure B1: Maximum vs. Minimum Temperature (Newman) Maximum vs. Minimum Temperature (Port Headland) 40 35 Temperature (degree C) 30 25 20 15 10 5 0 January February March April May June July August September October November December Month Mean maximum temperature (Degrees C) Mean minimum temperature (Degrees C) Figure B2: Maximum vs. Minimum Temperature (Port Hedland)

Wind At Port Hedland, the presence of strong winds throughout the year are conducive to dust generation and transport. Since rainfall is concentrated over a small number of days, even in the wettest months, and evaporation rates are high all year round, dust problems are likely to be present throughout the year. However, strong winds are generally from westerly or south-westerly directions, which would tend to blow dust away from populated areas. Wind speeds are generally lower inland than on the coast, with similar numbers of rainfall days occurring. Windblown dust is therefore likely to be less significant in inland areas. The Pilbara region experiences the following meteorology: An annual average wind speed of 10 km/hr; Wind direction has wide variation during summer and winter within the southeasterly and north-easterly range, autumn has dominant south easterly winds while spring is dominated by north westerly to south westerly winds. Figure B3 and Figure B4 overleaf illustrate the seasonal wind roses for Port Hedland and Newman respectively through 2010. The wind roses provide a graphical representation of the frequency distribution of winds of varying strength, from all compass points.

Figure B3: Wind rose for Port Hedland

Figure B4: Wind rose for Newman

Regional Context The cumulative effect of high ambient dust levels and emissions from mining and industrial activities has led to significant dust impacts. In response to increasing levels of development in the Pilbara Region, the DoE (The Department of Environment which has been renamed the Department of Environment and Conservation (DEC)) commenced a study of air quality in the area in 1998, and produced the Pilbara Air Quality Summary Report in 2004 (DoE, 2004). The study examined various aspects of air quality in the region, and significant relevant outcomes of the study are presented below. Prior to 2002, a monitoring station at Boodarie was used to collect background data. Following the construction of the BHPBIO Boodarie Direct Reduced Iron (DRI) project this site was deemed no longer suitable for collection of background data, and a new station was established at the Port Hedland Airport. Due to its location remote from major anthropogenic dust sources, the Port Hedland Airport monitoring station is considered to represent background dust levels. A summary of the Boodarie and Airport monitoring data is presented in Table B1. Table B1: Summary of Port Hedland Background Dust Levels Monitoring Station Year No. of Times that 24-hr Average PM 10 Concentration Exceeded the Specified Level in the Calendar Year 50 μg/m 3 (NEPM Standard) 150 μg/m 3 Boodarie 1996 0 0 Boodarie 1997 7 0 Boodarie 1998 6 1 Boodarie 1999 5 1 Boodarie 2000 20 0 Boodarie 2001 7 2 Airport 2003 15 - The data presented in Table B1 indicates that background dust levels in the Port Hedland area regularly exceed the NEPM PM 10 standard, and are occasionally more than three times the standard. Most of these exceedances can be traced to dust storms and bushfires.

Appendix F. Key Emissions Activities

Key Emission Activities The main dust emission-generating activities are expected to be related to the mining, transport and handling of waste rock and ore products. The activities listed in Table G1 are considered to be the likely dominant generators and emitters of airborne particulates during construction, operations and decommissioning phases: Table G1: Dust Sources ACTIVITY CONSTRUCT OPERATIONS REHAB all projects Cloud Break Christmas Creek Kings Firetail all projects Mechanical Miscellaneous Clearing Earthworks Concrete batching Infrastructure Exploration Drilling Mining Drilling/Blasting Overburden Excavation Loading Transport Stockpiling Ore Excavation Loading Transport Stockpiling Ore Processing Crushing Screening Ore Loading To road transport To rail transport Mobile plant Wheel impact Progressive Earthworks Village Earthworks Airfield Wind Scour Stockpiles Topsoil Waste Ore Disturbed areas Note: the volume and duration of dust emissions from these sources is expected to be variable and intermittent depending on prevailing meteorology and the types of activities occurring on site.

Appendix G. Key Environmental Impacts

Key Environmental Impacts Key Activity Vegetation clearing Description Causing substantial damage to native vegetation. This includes: The killing or removing of native vegetation; The severing or ringbarking of trunks or stems; The draining or flooding of the land; The burning of vegetation; The grazing of stock; or Any other activity that kills or damages native vegetation. A guide to clearing permits under the Environmental Protection Act 1986. The definition includes all types of native vegetation, including those found in aquatic and marine environments. It includes all native grasses, shrubs and trees bus does not include intentionally sown native vegetation (such as that found in a garden, plantation or other crop). Ground disturbance Disturbance of the topsoil or surface rock layer of the ground, or a waterway, by machinery in the course of grading, excavating, digging, dredging or deep ripping. Includes: Top soil removal Growth medium recovery Earthworks. Construction/ establishment of infrastructure Construction/ establishment of linear infrastructure Exploration drilling Construction and completion of substantial permanent structures. Construction and completion of linear infrastructure, which has the potential to interrupt sheet water flows e.g. rail lines, roads. Includes: Defining resource for feasibility; Defining resource for mining schedule; Geological test work; Drilling for water. Open pit mining Includes: First blast; Excavation; Free digging; Other in-pit activities;

Until loaded onto haul trucks for transport to Ore Processing Facility. Excludes construction of waste rock dumps or stockpiles. Stockpiling and waste rock dump construction: Temporary Waste rock dump construction: Permanent Ore processing Materials handling Vehicle movement Temporary storage of waste materials or ore in landforms for either future use or relocation. Permanent disposal of waste or spoil materials in landforms. Process of washing, crushing and screening ore into final marketable product at Ore Processing facility (OPF). Movement of material from mine site to OPF and from OPF to ship. Includes: haul trucks, rail transport, stacker, reclaimer, ship loader, conveyors, ROM Pad, stockpiles, stockyards. Movement of freight trucks, light vehicles, buses, airplanes

Appendix H. Dust Monitoring Guidelines (45-GU-EN-0004)

Guideline Dust Monitoring Guidelines Environment August 2011 45-GU-EN-0004

Dust Monitoring Guidelines Page 2 of 26 Document Number 45-GU-EN-0004_Rev No. 0 TABLE OF CONTENTS 1. INTRODUCTION... 4 1.1 GOALS AND OBJECTIVES... 5 1.2 DEFINITIONS... 5 1.3 AUSTRALIAN STANDARDS... 6 1.4 CONSTRAINTS AND LIMITATIONS... 6 2. MONITORING OVERVIEW... 7 2.1 RATIONALE FOR PROGRAM... 7 2.2 RISK ASSESSMENT... 7 2.3 PROGRAM DESIGN... 7 3. MONITORING SITE SELECTION... 9 3.1 SITE SELECTION PARAMETERS... 9 3.2 SITE SELECTION PROCEDURE... 10 3.3 MONITORING SITE LAYOUTS... 11 4 MONITORING PARAMETERS... 11 4.1 DESCRIPTION OF PRIMARY MONITORING PARAMETERS... 13 4.2 DESCRIPTION OF SECONDARY MONITORING PARAMETERS... 14 5. MONITORING METHODOLOGY... 14 5.1 PASSIVE SAMPLING METHODS... 14 5.2 ACTIVE SAMPLING... 15 5.3 MONITORING FREQUENCY... 16 6. DATA MANAGEMENT, ANALYSIS AND INTERPRETATION... 16 6.1 DATA COLLECTION AND STORAGE... 16 6.2 DATA ANALYSIS AND INTERPRETATION... 17 6.3 ERROR ANALYSIS... 18 7. INTERIM MANAGEMENT TRIGGERS... 19

Dust Monitoring Guidelines Page 3 of 26 Document Number 45-GU-EN-0004_Rev No. 0 8. REPORTING... 19 9. REVIEW AND REVISION... 20 10. REFERENCES... 20 LIST OF TABLES Table 1 Primary and secondary monitoring parameters... 12 Table 2 Air quality standards and criteria for dust deposition... 19 LIST OF FIGURES Figure 1: Dust Monitoring Process... 8 LIST OF APPENDICES Appendix A: Qualitative Visual Assessment Data Recording Sheet Appendix B: Dust Deposit Sample Log Sheet

Dust Monitoring Guidelines Page 4 of 26 Document Number 45-GU-EN-0004_Rev No. 0 1. INTRODUCTION These monitoring guidelines have been prepared for the Fortescue Metals Group Ltd (Fortescue) in the Pilbara in Western Australia. The guideline incorporates best practice methods currently used in dust emissions assessment and is designed to address the goals and objectives of Fortescue in relation to environmental protection. The implementation of the guideline will address project environmental development conditions, as imposed under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999 and the state Environmental Protection Act 1986, and Fortescue s commitments for monitoring the impact of dust emissions on amenity and environmental values in proximity to the Fortescue Operations Area. The guideline is to be used during all construction, operation and decommissioning/closure activities at Fortescue Rail and Mine Operations to measure and assess activities that have the potential to cause significant impacts to amenity and/or environmental values. This guideline is limited to Mine and Rail Operations with all activities associated with Port Operations being addressed in the Port Facility Dust Environmental Management Plan (P-PL-EN-0010). All Fortescue staff and contractors involved in dust monitoring, assessment and reporting are responsible for following all dust monitoring procedures included in the guideline. All operators should ensure they have been adequately trained to carry out the dust monitoring procedures, including quality assurance/quality control protocols, in a manner that delivers accurate, verifiable results. By adopting the guideline, a consistent monitoring approach can be applied across all Fortescue Rail and Mine Operations. The guideline describes: goals and objectives of the monitoring program; the rationale underpinning the monitoring program design; the approach for selecting the number and location of monitoring sites; the selection of a set of appropriate monitoring parameters for detecting and evaluating change in amenity and environmental values; monitoring methodologies; and data management, reporting and review.

Dust Monitoring Guidelines Page 5 of 26 Document Number 45-GU-EN-0004_Rev No. 0 1.1 GOALS AND OBJECTIVES Goals Measure change in amenity and/or condition of vegetation communities within and adjacent to Fortescue Operations; To the extent possible, establish if changes in amenity and/or condition of vegetation communities are occurring as a result of Fortescue s activities; Monitor and measure the success of management measures to inform an adaptive management approach 1. Objectives Establish a set of replicated monitoring sites using the BACI (Before/After/Control/Impacted) design approach; Identify and select a set of appropriate dust monitoring parameters to include in the monitoring program; Use appropriate analytical methods to: o o o o Detect trends in monitoring data; Identify if changes in amenity or vegetation condition can be attributed to Fortescue s activities; Identify if changes are impacting or threaten to impact vegetation conservation values; and Provide the basis for developing management thresholds and triggers. Complete monitoring program reviews on an annual basis. 1.2 DEFINITIONS Dust monitoring and reporting requires a technical understanding of the terms used to describe dust emissions. These terms are defined below: Raw data data that has not been validated and may contain erroneous data that is influenced by local humidity levels or problems associated with the monitoring equipment. 1 Adaptive management is a cyclical process of continuous improvement, relying on the results of prior learning to inform future actions (adapted from Allan & Stankey 2009).

Dust Monitoring Guidelines Page 6 of 26 Document Number 45-GU-EN-0004_Rev No. 0 Validated data data that has been reviewed for errors and faults. Dust is both biological and mineral matter that has a typical equivalent aerodynamic diameter (EAD) of between 1 and 50 microns. Nuisance dust inert particulate matter containing 1% quartz. TSP Total suspended particulate matter atmospheric suspended particulate matter having an approximate EAD of less than 50 µm. 1.3 AUSTRALIAN STANDARDS Australian Standards relevant to this Guideline include: AS 3580.1.1:2007 Methods for sampling and analysis of ambient air Guide to siting air monitoring equipment; AS 3580.9.3:2003 - Methods for sampling and analysis of ambient air Determination of suspended particulate matter Total suspended particulate matter (TSP) High volume sampler gravimetric method; AS 3580.10.1:2003 Methods for sampling and analysis of ambient air Determination of particulate matter - Deposited matter Gravimetric method. 1.4 CONSTRAINTS AND LIMITATIONS Monitoring programs will be limited by the availability of time, human and other resources (including expertise), and baseline information. In some instances land access or on-ground activities may be restricted by land tenure and regulatory requirements. These limitations require careful consideration during the planning and implementation of monitoring programs for a given operations area. Invariably there is a trade off between the desired resolution of the monitoring program and the resources available to collect and interpret the monitoring results. Any requirement to augment Fortescue site personnel/resources with external personnel/resources should be identified early in the planning process. Although the methodologies presented in this document are the result of extensive consultation and review of previous work in the area, they will continue to evolve. Fortescue anticipates that the proposed methodologies will be further refined and improved following the implementation of the monitoring program, as informed by on-ground experience and improved knowledge. Although monitoring can quantify the atmospheric emissions of dust and these emissions can be correlated to climatic factors, long term data collection using multiple parameters is often required to enable the causes of change to be definitively identified.

Dust Monitoring Guidelines Page 7 of 26 Document Number 45-GU-EN-0004_Rev No. 0 2. MONITORING OVERVIEW 2.1 RATIONALE FOR PROGRAM Emissions of dust into the atmosphere can impact on amenity, reduce photosynthetic efficiency and capacity in vegetation and cause distress for native fauna. Dust can also cause nuisance by deposition on surfaces such as laundry, vehicles and accommodation and reduce visibility resulting in an increase in motor vehicle accidents. Measuring the emissions of dust into the environment allows for informed management actions to reduce the impacts of dust on sensitive receptors. 2.2 RISK ASSESSMENT A risk assessment is used to determine the source(s) of dust emissions that have the greatest potential for significantly impacting upon on-site and off-site sensitive receptors (refer Figure 1). The outcomes of the risk assessment, along with any project related environmental commitments or conditions, will determine the number of monitoring sites and design requirements for each site monitoring program. 2.3 PROGRAM DESIGN This monitoring guideline is designed to identify: 1. Key monitoring site locations; 2. Equipment to be installed; 3. Quality assurance and control procedures; and 4. Reporting requirements. The generic dust monitoring process is described in Figure 1.

Dust Monitoring Guidelines Page 8 of 26 Document Number 45-GU-EN-0004_Rev No. 0 Figure 1: Dust Monitoring Process Identify and Assess Site Specific Factors Conduct a Risk Assessment Review and overlay EIA simulated dust dispersion model outputs with site specific factors Identify Sensitive Receptors and overlay, as above For assessed High Risk sensitive receptors, prepare and implement a 12 month, grid pattern dust deposition gauge program to validate dust dispersion model outputs Collect and assess monthly deposition results to validate modelled outputs Confirm risk assessment and required extent (number and location) of monitoring sites Determine format for reporting, through consultation with stakeholders Submit reports to stakeholders, as required Review monitoring program and report format every two years after implementation Reassess risk Based upon steps 1 4, prepare site and sensitive receptor specific dust impact risk assessment Install, either gravimetric or real-time monitors, and collect and verify data for use in monthly (internal) reporting and annual (external) reporting

Dust Monitoring Guidelines Page 9 of 26 Document Number 45-GU-EN-0004_Rev No. 0 3. MONITORING SITE SELECTION Selection of monitoring sites should be based on AS 3580.1.1:2007 Methods for the sampling and analysis of ambient air Guide to siting air monitoring equipment. However, site specific conditions may require a deviation from the standard which should be noted in the monitoring program and reports. Monitoring site selection should address: Access for sample collection, maintenance and calibration; Security of equipment against vandalism; and Availability of an electrical supply (given that diesel generators tend to interfere with dust monitoring data), for air volume based measurements. Monitoring sites should be selected to provide reliable, verifiable data suitable for compliance and trigger level management action monitoring. 3.1 SITE SELECTION PARAMETERS The identification and review of key monitoring dependencies is a necessary component of designing an effective dust monitoring program. The key monitoring dependencies may include: o o o o o o o Site specific parameters: Topography and landforms; Historical and contemporary meteorological conditions; Site geology, including soil and ore characterisation; Location and distance to on-site and proximate off-site sensitive receptors (such as human settlements and nature conservation areas); and Background (or ambient) atmospheric dust concentrations. Source and physical parameters of site generated dust emissions: Mechanical Emissions: Mining and blasting areas; Processing equipment; Integrated waste landforms; Ore loading areas; and Unsealed haul roads (major and minor). Wind scour emissions:

Dust Monitoring Guidelines Page 10 of 26 Document Number 45-GU-EN-0004_Rev No. 0 Disturbance/rehabilitation areas; and Stockpiles of topsoil, low-grade ore and ore. Dust dispersion of site generated dust emissions: o Qualitative (visual assessment). When wind velocity is greater than 4.9 m/s (> 18 km/h), regardless of direction, visual monitoring of dust dispersion from identified dust sources to assess: If dust is leaving the mine lease; and If dust is travelling beyond identified sensitive receptors. 3.2 SITE SELECTION PROCEDURE After review of the risk assessment outcomes and the key monitoring dependencies the following approach will be used to select the number and location of monitoring sites: Rule 1: Background site: Each development site will identify at least one location for permanent placement of a background (control) monitoring site. This site will be up-wind of the prevailing wind direction (this may change during the year, and may require the placement of additional control monitors), and a minimum of 5 km (no more than 10 km) from the identified dust sources (point or diffuse). Rule 2: The location of monitoring site(s) will be dependent upon the: 1. Seasonal variability in dust dispersion, due to climatic influences; 2. Number of sensitive receptors identified in the risk assessment as being high risk; 3. Accessibility of the site, including provision of power for monitoring units requiring mains power, and compliance with site OHS procedures; and 4. Outcome of modelling based on spatial correlation, Monte-Carlo variance reduction or atmospheric diffusion. Areas where modelled concentration levels (C) are greater than a reference concentration (C R ), proximate to sensitive receptors, will be targeted for initial gravimetric sampling. Rule 3: The number of monitoring sites will be dependent upon: 1. The seasonal variability in dust dispersion, due to climatic influences; 2. The number of sensitive receptors identified by the risk assessment as being high risk;

Dust Monitoring Guidelines Page 11 of 26 Document Number 45-GU-EN-0004_Rev No. 0 3. The dust concentration, or deposition rate, at on-site sensitive receptors as compared to the dust concentration or deposition rate at the boundary of the mine lease, assuming a continuation along the identified prevailing wind direction. Incidental guidelines for locations of monitoring sites include: 1. Use existing monitoring sites where they meet rules 1-3 above. 2. Ensure monitoring sites have been permitted for clearing under the Ground Disturbance Permit Procedure (100-PR-EN-0004). 3. Monitoring sites should be within the zone of influence of the identified dust sources. 4. Monitoring sites should have a minimum unrestricted airflow of 270 degrees around the sample inlet. 5. Ideally, sites should be located at least 1 km from stock water points, to minimise variation in data due to cattle activity. 6. Minimise new disturbance required to access the monitoring sites. 3.3 MONITORING SITE LAYOUTS Monitoring sites should be established within development approved areas. Sites can be mobile and temporary, or fixed and permanent. All sites should be a minimum of 10 metres from the nearest object or dripline of trees (that are higher than 2 metres from the height of the sample inlet). Wherever possible, monitoring should be initiated in the pre-construction phase (i.e. prior to any mining related impacts) in order to obtain a baseline record. A GPS location (MGA 2 coordinates) should be taken and recorded for each monitoring site. 4. MONITORING PARAMETERS A set of monitoring parameters has been selected to provide broad coverage of vegetation changes expected under a range of different mining related impacts. Current mine and rail operations have negligible risk of amenity impacts on the community due to their distance from sensitive residential/community receptors. However, the amenity of workers is also an important consideration as well as future developments which may be closer in proximity to sensitive residential/community receptors. Therefore, parameters relating to amenity have also been included in this guideline (Table 1). 2 Map Grid of Australia

Dust Monitoring Guidelines Page 12 of 26 Document Number 45-GU-EN-0004_Rev No. 0 Primary parameters give a condition status of amenity or the vegetation community at the time of the monitoring event, and are not necessarily suitable for the development of trigger values or indicators until suitably validated. Validation requires relationships between impacting processes and measured parameters to be elucidated. Secondary parameters can be used to analyse and interpret the primary parameters, thereby helping to explain or confirm the cause of shifts in amenity or vegetation health. The measurement of secondary parameters may also ultimately contribute to the development of management triggers and thresholds. All Fortescue monitoring programs should include the full set of primary monitoring parameters. Secondary parameters should be selected where relevant for detecting anticipated change to amenity or vegetation responses to disturbance, or to assist with the interpretation of measured responses. When selecting secondary monitoring parameters the following aspects should be considered: Parameter selection should demonstrably contribute to meeting the monitoring program objectives; Parameter selection should reflect the expected amenity/vegetation response, based on available scientific knowledge. Ideally the parameter selection will enable hypothesised responses to be quantitatively tested; Parameter selection should be appropriately matched to the spatial and temporal scales of monitoring; Ensure that capacity exists (or can be obtained) for analysing and interpreting the measured parameter dataset; and It is generally better to monitor a small number of parameters correctly than a greater number of parameters with less accuracy and/or precision. Table 1 Primary and Secondary Monitoring Parameters Primary Monitoring Parameters Vegetation condition/ health Secondary Monitoring Parameters Foliar pigment (e.g. chlorophyll) analysis Soil moisture Erosion Photographic analysis Dust deposition Total Suspended Particulates Climate data

Dust Monitoring Guidelines Page 13 of 26 Document Number 45-GU-EN-0004_Rev No. 0 4.1 DESCRIPTION OF PRIMARY MONITORING PARAMETERS Vegetation Condition/Health The primary and secondary dust monitoring parameters associated with vegetation condition and health are provided in the Significant Flora and Vegetation Monitoring Guidelines (45-GU-EN- 0002) and should be referred to when developing a dust monitoring program associated with Fortescue s Mine and Rail Operations. Dust Deposition Dust deposition measurements are commonly used to determine if a particle source poses an unacceptable level of nuisance to nearby residents or an impact on surrounding vegetation. Dust deposition can be measured using various methods including a dust deposition gauge. A dust deposition gauge comprises a glass funnel supported in the neck of a large glass bottle, which can be mounted in a steel bucket on an elevated stand if necessary. The gauge is typically left for one month so a measurable quantity of dust is collected. At the end of the period the gauge is returned to a laboratory for analysis. The rate of dustfall is calculated by dividing the weight of insoluble material (milligrams) collected by the cross-sectional area of the funnel (metres 2 ) and the number of days over which the sample was taken. The units of measurement are milligrams/metre 2 /day. As dust deposition guidelines do not exist in Western Australia for human amenity or health/condition of vegetation the physical observations and regular monitoring may help develop management triggers for the Fortescue Operations Area. Climate Data Water availability and temperature have fundamental effects on dust generation in arid environments and therefore essential to consider the influence of climate in dust monitoring programs. Fortescue operations areas will generally have weather stations installed. Climate data can also be obtained from the Bureau of Meteorology s website http://www.bom.gov.au or derivative products such as SILO patched point data http://www.longpaddock.qld.gov.au/silo. Due to long distances between BOM stations in the Pilbara region, the utility of the data can be constrained by extrapolation errors. Purpose instruments (e.g. rain gauges) or automatic weather stations at or near monitoring sites can provide higher resolution site specific information, although at higher cost and with associated station maintenance obligations. The augmentation of BOM records with site specific data may be warranted to help answer program specific monitoring questions.

Dust Monitoring Guidelines Page 14 of 26 Document Number 45-GU-EN-0004_Rev No. 0 4.2 DESCRIPTION OF SECONDARY MONITORING PARAMETERS Vegetation Condition/Health The primary and secondary dust monitoring parameters associated with vegetation condition and health are provided in the Significant Flora and Vegetation Monitoring Guidelines (45-GU-EN- 0002) and should be referred to when developing a dust monitoring program associated with Fortescue s Mine and Rail Operations. Total Suspended Particulates (TSP) TSP monitoring is used to determine the total amount of suspended particulate material present in the atmosphere. TSP have an aerodynamic diameter less than 50μm and are typically associated with impacts to amenity. TSP is usually measured using a high-volume air sampler that draws a large known volume of air through a pre-weighed filter for 24 hours. After sampling, the filter is re-weighed and the difference in filter weight is the particulate mass. 5. MONITORING METHODOLOGY The following sections describe monitoring methodologies which may be used by Fortescue for primary and secondary monitoring parameters. These are intended to serve as a guide rather than rigid prescriptions. However, it is important to ensure a level of standardisation across all Fortescue Operations Areas to enable the use of consistent data analysis methods, comparisons across company operations and reporting. These issues should be considered during the monitoring program design phase for specific Fortescue Operations Areas. The currency and appropriateness of monitoring methods should always be reviewed during the monitoring program design phase for specific Fortescue Operations Areas. Dust monitoring methodology for Fortescue s Mine and Rail Operations will be limited to positional (area) monitoring which measures the performance of dust control measures and long-term trends in ambient dust levels impacting on human amenity and potential diminishing of environmental values. Positional monitoring may be undertaken by passively collecting deposited suspended particulates or by actively drawing a defined volume of air through sample collecting and analysing equipment. 5.1 PASSIVE SAMPLING METHODS Certain qualitative dust monitoring techniques may be employed to provide guidance for location of quantitative monitoring devices. Such techniques may include:

Dust Monitoring Guidelines Page 15 of 26 Document Number 45-GU-EN-0004_Rev No. 0 Dust Deposition Gauges The dust deposition gauge is the simplest form of dust monitor available. The method relies on the passive deposition and capture of dust within a funnel and bottle arrangement. The deposition gauge provides basic data on dust deposition rates, presented as mass per unit area per time period (usually as milligram/square metre/day). Dust deposition monitoring is an affordable and easy method for monitoring dust. It can be set up in remote areas, does not require power and can be left in the field for a long period. It is however, difficult to interpret results because of the time the gauge needs to remain in the field, typically 30 days, or a minimum of two weeks. It also does not allow the dust levels recorded to be related to meteorology such as wind direction or other shorter-term events that might have occurred during the monitoring period. As dust deposition guidelines do not exist for human amenity or health/condition of vegetation the physical observations and regular monitoring may help develop management triggers for the Fortescue Operations Area. The monitoring of dust emissions using a dust deposition gauge should be in accordance with Australian Standard 3580.10.1:2003 Methods for sampling and analysis of ambient air, Method 10.1: Determination of particulate matter Deposited matter Gravimetric method. Observation log sheets Observation log sheets (Appendix C) can be used in conjunction with quantitative sampling techniques or on their own to assess air (dust) quality in a particular area. This method involves individuals recording information about the presence of dust emissions in their local area, including dust emissions from a pollution event, and their perceived impacts (environmental or aesthetic) on an observation log sheet. Collected data findings should be manually entered into the dust monitoring database and can be used to validate data and data variances obtained from other monitoring methods. 5.2 ACTIVE SAMPLING Active sampling techniques are available for generating real-time monitoring data for reporting against dust monitoring criteria. Currently, Fortescue Rail and Mine Operations are not required to report against dust monitoring criteria due to the distance of operations from sensitive residential/community receptors. However, the amenity of workers is also an important consideration in the development of this guideline as well as future developments which may be closer in proximity to sensitive residential/community receptors.

Dust Monitoring Guidelines Page 16 of 26 Document Number 45-GU-EN-0004_Rev No. 0 Therefore, where necessary, Fortescue may monitor total suspended particulate matter (TSP) at its Rail and Mine Operations to help determine the potential impact upon amenity. TSP can be measured using a high-volume air sampler that draws a large known volume of air through a pre-weighed filter for 24 hours. After sampling, the filter is re-weighed and the difference in filter weight is the particulate mass. The concentration of TSP in the air is calculated as the particulate mass divided by the volume of air sampled. The unit requires an electrical input and does not provide information on short-term dust events. The sampling and analysis of TSP using a high-volume air sampler should be in accordance with Australian Standard 3580.9.3:2003 Methods for sampling and analysis of ambient air: Method 9.3 Determination of suspended particulate matter Total suspended particulate matter (TSP) High volume sampler gravimetric method. 5.3 MONITORING FREQUENCY Ideally the monitoring program should capture baseline air quality data before any mine infrastructure installation or railway construction. If the baseline survey data is not considered sufficient due to the timing of the survey, then ambient (background) monitoring should be used for baseline air quality data. Gravimetric sampling will be based on a 30 day sample collection cycle. Following each monitoring event, the results should be evaluated and the monitoring frequency reviewed. The review should evaluate the necessity to continue monitoring, which may involve consultation with regulatory agencies such as the DEC. 6. DATA MANAGEMENT, ANALYSIS AND INTERPRETATION In accordance with the monitoring program objectives, data collected from monitoring the parameters described above will be used to detect change in amenity or environmental values in Fortescue s Operations Area and where possible clarify factors responsible for any detected change. Appropriate data handling, storage and analysis is crucial for the monitoring program to inform the development of amenity and vegetation protection and management strategies. 6.1 DATA COLLECTION AND STORAGE All data collected in the field or obtained after laboratory analysis should be transferred into a Monitoring Program database to be checked for any errors and to facilitate easy data entry, sorting, and other simple data manipulation. A data input register should be maintained in association with the database that includes:

Dust Monitoring Guidelines Page 17 of 26 Document Number 45-GU-EN-0004_Rev No. 0 The name and title of the person responsible for the data entry; The names and titles of the persons who collected the data; The date of data entry; and Quality assurance procedures that were applied. Data will be stored at Fortescue project sites. Data should be backed up on a regular basis with a copy stored in a separate geographic location (i.e. the Fortescue Perth office). 6.2 DATA ANALYSIS AND INTERPRETATION Appropriate data analysis and interpretation is a function of the monitoring program design. As such, suitable data analysis methods should be identified and selected during the monitoring program design phase. Where required, advice on the potential application of multivariate analysis should be sought from an expert biometrician. Once the monitoring program is implemented, these methods can be reviewed and refined as appropriate. Broad questions that will typically be addressed using statistical analysis include: Question 1 Question 2 Question 3 Are there significant differences in amenity or vegetation condition change over time between the potentially impacted and control monitoring sites? Are there significant differences in amenity or vegetation condition change or response time between the potentially impacted monitoring sites? Does change in amenity or vegetation condition correlate with any of the other variables being measured? Univariate statistical analysis can be used for comparing differences in individual parameter values between plots, for example using the Students t-test (and its variants) and Analysis of Variance (ANOVA). This type of analysis involves the comparison of parameter means and variance between monitoring sites. Careful selection of replicates within the monitoring sites is important to minimise selection bias and other sources of potential error. Without adequate replication the chance of obtaining a good estimate of the mean and variance or distribution of a parameter is low (Bradshaw & Book 2010). Univariate analysis assumes that the parameter datasets satisfy conditions of normality; if investigations indicate that this is not the case then further manipulation of the data (such as log transformation) may be required. Alternatively non-parametric tests, which do not include normality assumptions, may be warranted (for example the Mann-Whitney test, and Wilcoxon and Kruskal Wallis signed-rank tests). Linear regression analysis can be used for modelling and testing relationships between two or more measured parameters. Regression models can be used to identify if different monitoring sites respond differently to environmental conditions and disturbances, and can potentially enable predictions of how these sites might respond to future disturbance scenarios. This type of analysis assumes that the parameter datasets satisfy conditions of normality; if investigations indicate that this is not the case then further manipulation of the data, such as log transformation, may be

Dust Monitoring Guidelines Page 18 of 26 Document Number 45-GU-EN-0004_Rev No. 0 required. Alternatively a number of non-parametric correlation coefficients can be used (e.g. Spearman's Rank or Pearson product-moment correlation coefficients), but these depend strongly on number of sample sites with generally >30 sites being required to provide a reliable characterisation of a relationship (Bradshaw & Brook 2010). A variety of more complex statistical techniques are available for the analysis of multiple parameter datasets (e.g. parametric and non-parametric multivariate analysis). These may be useful where the objective is to classify site amenity or vegetation responses based on multiple factors (e.g. using classification and ordination techniques), and explore the relative importance of the factors influencing these groupings (e.g. Principal Component Analysis). Advice on the potential application of multivariate analysis should be sought from an expert biometrician where required; generally this type of analysis requires the use of specialised statistical software packages. 6.3 ERROR ANALYSIS For data interpretation purposes it is important to understand the accuracy of the monitoring results and the sensitivity of the results to potential sources of error. Two types of error should be considered: Random error inherently unpredictable error, which is related to the standard deviation of a set of replicated measurements. Random error should always be assessed and presented as a component of the monitoring results. For a given parameter, the site mean plus or minus the standard error 3 should be presented. In some situations it may be desirable to present 95% confidence intervals for measurement parameters. Systematic error biases in measurement which lead to an overestimate or underestimate of actual parameter values. Systematic error can be caused by data recorders making mistakes, imperfectly calibrated equipment, or skewed environmental factors (for example caused by poor monitoring site selection). Systematic errors can be difficult to detect, however where the cause of a systematic error can be identified it can usually be eliminated. The ability of the monitoring program to detect changes in amenity/vegetation condition is subject to the nature and magnitude of these errors. A structured analysis of error should be undertaken following each phase of monitoring data collection. The completion of this action should be recorded in the data input register. The error analysis will provide the basis for critically interpreting the monitoring results, which in many cases will be used to guide management actions and compliance reporting. Error analysis is also useful for critically evaluating the design of the monitoring program and its component methodologies. 3 The standard error of an estimated mean =

Dust Monitoring Guidelines Page 19 of 26 Document Number 45-GU-EN-0004_Rev No. 0 7. INTERIM MANAGEMENT TRIGGERS Change in amenity and environmental values over successive monitoring events (i.e. trend analysis) will primarily be used to develop and refine management triggers and thresholds. At the outset of the monitoring program, the following trigger levels will apply: If mean vegetation condition (dust parameter) declines by greater than 10% in potentially impacted sites relative to control sites over three successive monitoring periods, take further action to investigate the cause of the decline; If vegetation death occurs in >10% of individuals at any potentially impacted site over successive monitoring periods immediately investigate the cause and where applicable instigate preventative and/or remedial actions to try and prevent further decline; If a dust deposition gauge at any monitoring site returns results which are greater than those listed in Table 2 (above background concentrations) over successive monitoring periods, take further action to investigate the cause of the increase. Table 2 Air Quality Standards and Criteria for Dust Deposition Pollutant Averaging Period µg/m3 4 Dust deposition Annual (total) Annual (increase) 4 grams/m2/month 2 grams/m2/month Where trigger values have been exceeded, the source and frequency of exceedences will be reported to management on a monthly basis to provide support for implementation of remedial actions, as required. 8. REPORTING Monitoring results that have been interpreted and subject to quality assurance processes will generally be required to meet Fortescue s reporting obligations. This could include: Internal reporting to inform management planning and future monitoring program design; A summary of findings relating to the monitoring program objectives in relevant company Annual Environmental Reports (AERs); and Reporting against legislative compliance requirements. 4 In the absence of WA guidelines for dust deposition, the guidelines from NSW Department of Environment, Climate Change and Water and Victoria Environmental Protection Authority have been adopted.

Dust Monitoring Guidelines Page 20 of 26 Document Number 45-GU-EN-0004_Rev No. 0 The utility of disseminating monitoring report findings to other stakeholders and information users, such as DEC, should also be identified. Only reports, required for submission to the DEC and the Department of Mines and Petroleum (DMP), will be prepared annually, detailing: Monitoring results (raw and processed data); Calibration data; Dust emission trends against emissions criteria. 9. REVIEW AND REVISION Fortescue should review and revise this monitoring methodology during the term of the operations. The first review and revision will be conducted after the initial baseline monitoring event and every two years thereafter. 10. REFERENCES Allan C & Stankey GH 2009, Adaptive environmental management a practitioners guide, CSIRO Publishing, Melbourne. Department of Environment, Best Practice Environmental Management in Mining Dust Control (1998). Department of Environment and Conservation, Draft Guideline for the development and implementation of a dust management program (2008). Department of Industry and Resources, Guideline: Management of Asbestos in Mining Operations (2001). Etyemezian, V. et al., Desert Research Institute Field testing and Evaluation of Dust Deposition and Removal Mechanisms - Final Report, (2003). Fortescue Metals Group, Significant Flora and Vegetation Monitoring Guidelines (2011). Leading Practice in Sustainable Development Handbook Series Air Contaminants, Noise and Vibration. Umwelt Environmental Consultants, Liddell Colliery Air Quality Monitoring Program (2008).

Appendices

Appendix A. Qualitative Visual Assessment Data Recording Sheet

Appendix B. Dust Deposit Sample Log Sheet