South Walker Creek Mine - Kemmis 2 EPBC 2013/7025

Compliance Report 16 November 2017 - 16 November 2018

12 February 2019

Contents

Introduction 1

Description of activities 2

Compliance Table 3

Introduction

South Walker Creek Mine (SWC) is an open-cut coal mine owned by BHP Billiton Mitsui Coal (BMC). The mine is located approximately 25km west-south west of Nebo, Queensland in the Bowen Basin within the boundaries of Mine Lease 4750 (ML4750).

Mining is authorised by the Queensland Government through the historical grant of Mine Leases and associated surface rights. Activity at SWC is also further regulated under Environmental Authority MIN100552107.

To enable the continuation of mining at SWC, BMC sought a federal approval under theEnvironmental Protection and Biodiversity Conservation Act 1999 (EPBC Act)for potential impact on Matters of National Environmental Significance (MNES) due to development of 'Kemmis 2' open cut mining pit. This approval was granted on the 16thof January 2015. Construction in the approval area commenced on the 16thNovember 2016.

The following report addresses compliance with all conditions in accordance with condition 8 of theEPBC Actapproval (Approval Reference EPBC2013-7025):

"Within 3 months of every 12 months anniversary of the commencement of construction the approval holder must publish a report on their website addressing compliance with each of the conditions of this approval, including implementation of any plans as specified in the conditions. This report must remain published for the life of this approval. Documentary evidence providing proof of the date of publication and non-compliance with any of the conditions of this approval must be provided to the Department at the same time as the compliance report is published. The approval holder must also notify any non-compliance with this approval to the Department in writing within 2 business days of becoming aware of the non-compliance .….".

Description of activities

EPBC Number

2013/7025

Project Name

Kemmis 2, South Walker Creek open cut coal mine, Bowen Basin, Qld

Approval Holder and ABN

BHP Billiton Mitsui Coal Limited ABN: 34 009 713 875

Approved Action

To develop a new open cut mining pit within the boundaries of Mine Lease 4750 located approximately 25km west-south-west of Nebo Queensland in the Bowen Basin (See EPBC Act referral 2013/7025).

Location of the Project

At the northern end of, and adjacent to, existing open cut mining operations atSouth Walker Creek Mine, 25km west-south west of Nebo.

Person accepting responsibility for the report

Ann Perkins

Date of Preparation

12 February 2019

BHP

South Walker Creek Mine - Kemmis 2 EPBC 2013/7025

Compliance Table

In accordance with condition 8 of theEPBC Actapproval (Approval Reference EPBC2013-7025), this report provides an update of SWC's compliance against the relevant approval conditions (Table 1).Table2andTable3provides an update of SWC's compliance against Offset Management Plans (required under Condition 3 of the EPBC approval).

Table 1

South Walker Creek Mine - Kemmis 2 EBPC 2013-7025 Compliance Report

Condition Number

Condition

Compliant/ Non Compliant/ Not Applicable

Evidence/Comments

1

The project area is located at the northern end of, and adjacent to, existing open cut mining operations at South Walker Creek Mine, 25km west-south west of Nebo, Queensland is the project area designated in Annexure A and includes areas contained within Mining Lease (ML) 4750. The approval holder must not clear outside of the project area.

Compliant

Clearing activities are being carried out in accordance with the approved Offset Management Plans (OMPs) and site disturbance procedures.

2

The approval holder must not clear more than 13.2 hectares of Brigalow (Acacia harpophyl/a dominant and co-dominant) threatened ecological community and 31.7 hectares of Natural Grasslands of the Queensland Central Highlands and the Northern Fitzroy Basin threatened ecological community within the project area.

Compliant

Clearing activities are being carried out in accordance with the approved OMPs. Areas cleared are within the hectare limits specified in this condition.

No additional clearing of Brigalow or Natural grasslands occurred during the reporting period.

3

To compensate for authorised impacts on MNES (per condition 2), the approval holder must submit an Offset Management Plan to the Minister for approval. The approval holder must not impact upon MNES including buffers (as shown in Annexure A) until the Minister has approved the Offset Management Plan in writing. The approved Offset Management Plan must be implemented.

Compliant

An OMP was developed with the purpose being to identify the management objectives and outcomes, and the actions necessary to fulfil the OMP requirements for both the Kemmis 2 (EPBC 2013/7025) and Mulgrave Resource Area (MRA) (EPBC 2014/7272) projects. The OMP1was submitted to the Department and approved. The OMP commenced implementation following the start of construction for MRA (EPBC 2014/7272) on the 30thof March 2015. Construction of Kemmis 2 did not commence until after MRA on 23 November 2016.

1The preparation of Offset Management Plans in accordance with the Conditions of EPBC 2013-7025 was addressed in the following document:Biodiversity Offset Management Plan for Kemmis II Project and Mulgrave Resource Access Project (BHP, 2015). This document includes an Offset Area Management Plan (titledOffset Area Management Plan for Kemmis II Project and Mulgrave Resource Access Project) as an Appendix.

3

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Disclaimer

BHP Billiton plc published this content on 12 February 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 12 February 2019 09:34:07 UTC