1. 0 CCG Meeting Angaston 3 rd June 2009

2. Mine Operation Update – June 2009 Eastern Area  Dressing of upper levels of west face to reduce colour variation  Seed bombs being used to grass the upper levels (see photograph)  Recent rain has allowed tree planting to commence  Completed crushing of upper aggregate inventory & moved the mobile crusher down to the next lower level – see photo Western MPL 118  Rain has delayed topsoil removal but continuing, expected to be completed now by mid June  The accessible topsoil mound is continuing to be sown with sterile rye grass  Overburden being placed in first level (see photo)  Overburden volume moved 417,500t

3. 2  Eastern Area  Sheeting of western slopes to reduce visual impact  Seeding of western slopes on eastern dump  Donovans Earthcare innovating seeding method using clay ‘bombs’ Mine Operation Update

4. 3 Eastern area – Mobile crusher moved from RL394 to lower level RL384. Buffer height lifted to limit visual impact. – Due to heavy NEXY demand we are short in crusher capacity – assessing options to increase crushing rate

5. 4 Mine Operation Update MPL 118 Development  Topsoil removal continuing when weather conditions permit  437,000 tonnes removed to date  Overburden 417,500 tonnes placed in area  Jaeckeli Creek management plan submitted to NRM Board

6. 5 Truck Tarp Survey  Conducted Monday 1 st June 2009  Full compliance with tarps in place -- 88%  Non Compliance no tarps – 6.5%  Partial compliance (either truck or trailer not tarped in dual configuration) – 5.4%  Entry Exit Road tarping & parking lanes for safe traffic movement requires movement of the telecom line, 3 new lights and removal of 9 trees subject to Native Vegetation Act requirements with a new plantings ratio of 5 – see photo  Tarp Commitment – Adelaide Brighton Cement oTrucks to have and use tarps for movements to ABC Angaston – recommended by 30 th June 2009

7. 6 Front Entrance upgrade  Intermediate actions oWiden road for truck tarping area - narrow entrance safety concern o9 trees to be removed, replaced with 45 new plantings – this is compliant with Native Vegetation Act oTelstra and power cable relocation oStreet lighting installation at front gate and truck wash area

8. 7 Front Entrance Upgrade  Design plans submitted to Council for approval  Refer handout for details  Drag out control  Road Sweeper minimum daily sweep (more if required)  Washing down of entrance

9. 8 Community Environmental Issues oRefer handout for Complaints oGlass limestone compressor room

10. Mine Operation Update – June 2009 Other  Meeting requested with PIRSA to finalise the Overburden options report with KRC including a site visit  Agreed to new $140k rehabilitation work for FY2010 covering Kalimna rd, West MPL 1 st level, MPL vehicle track, West side rail embankment, & west side of east mound  Still chasing NRM Board approval of Jaeckeli Ck Management Plan to commence  Later train loading continuing  EIP Dust mitigation plan - see later  Investigating Mine closure concept plans (subject to hydrology outcome) – see later  Mine Planning study continuing with a visit from geotechnical experts (KRC) to better determine pit shape into the future

11. Mine Operation Update – June 2009 Other  New Mine manager & Maintenance manager positions to be filled to strengthen management, planning, maintenance and project work, a further commitment to the mine and the community. Preference is for living locally  Increased activity due to derailment and ABC Birkenhead increased drag out – Remedial Action – limited use of truck-wash due to water drag out – Use of water cannon several times to wash road, with apologies to council

12. Results taken from the Silt Trap Overflow: 28/4/09

13. Penrice Community Park Concept Mine Closure Plan

15. 14 Dust Emission Reduction Initiatives - EIP NoPlantItem Target Completion Date ImpactAction 1Front entranceRoad watering, only water to gate1/4/09Reduce water/drag out to Penrice Rd Completed 2Penrice RoadChange to Envirosweep street sweeper 6-04- 09Improve sweeping of drag out Completed 27/4/09 3Truck washUpgrade water recycle system31/07/09Improve washing efficiency Quotes still to be received 4Osborne train loader Commence water sprays to Osborne stone ½ hour prior to loading 2/04/09Reduce emissions at return circuit Commencing water sprays 1/4hour prior to loading (mud problem with ½ hour) Moving to automatic PLC 5Osborne train loader Maintain chute water sprays with polocitrus Serviced quarterly Comments from residents this is working Completed 6Osborne plantApply water sprays on tertiary plant & Q10 at all times 1/04/09Reduce dust at these handling points Aligned to No11- Completed 1/5/09 7PC1 CrusherAuto water spray on trucks entering to unload 31/07/09Negates manual activation by operator Automation using PLC, have parts will be installed by 30/6/09 8PC1 CrusherShroud unload bin in shade cloth31/07/09Improve effectiveness of water sprays Barossa engineering still to quote 9ABC StockpilesShroud perimeter15/06/09Reduce dust emission through wind erosion Cyclone fence with shade cloth on order for 6 months trial to be installed 13 th June 2009 10ABC StockpileSpray completed pads with green covering 30/04/09Reduce dust emission from stockpiles Trialled, very expensive, looking at more cost effective alternatives

16. 15 Dust Emission Reduction Initiatives 11Fine Mill PlantClose down from 1/5/091/5/09Customers to be notified Completed 12Top Soil StockpileSpray stockpile with green covering30/04/09Reduce possible dust emission from wind & rain? Seeded sterile Rye grass, finish when accessible 13Aggregate PlantComplete auto water sprays of working area around plant 30/08/09Reduce dust from vehicle movements Requires PLC Being quoted 14Aggregate plant feed stock piles Erect a overhead water spray system for all trucks to pass under before unloading to stockpiles 30/9/09Reduce dust in crushing plants Designs being considered 15Aggregate PlantIncrease water application during start up/shut down and when empty with automatic sprays 30/06/09Currently a chimney effect of dust; designing the PLC control at present Requires new design of chutes with PLC control 16Aggregate Plant Bins Automate sprays to be on all day15/04/09Reduce dust in strong wind conditions Completed 17Aggregate PlantImprove water sprays at sand output end 30/06/09Reduce dust in string winds Alternative spray nozzles being assessed 18OI Glass PlantAssemble foam spray applicators30/09/09Reduce dust emission in strong winds Investigating foam options 19Aggregate PlantReview use of shade cloth in this area to reduce wind impact 31/07/09Reduce dust emission in strong winds Under review along with No 9 20Osborne trainReview ability to stop return <50mm stone 30/6/09Reduce dust emissions at return bins May trial delayed until June 21Front entranceSeal roads from entrance to weigh bridge30/10/09Reduce drag out to Penrice Rd See design including new tarp and parking lanes NoPlantItem Target Completion Date ImpactAction

17. 16 TSP & PM10 Dust results May TSP Limits: 120 µg/m3` DateTSP (µg/m 3 )High wind Sp (km/h)Wind direction 1/5/0910.440.2NNW 4/5/0920.035.4SSW 7/5/0937.233.8SSW 10/5/0924.451.5S 13/5/0915.248.3SW 16/5/098.869.2NNW 19/5/0946.843.5S 22/5/0949.859.5SSE 22/5/096.951.5NW PM10 Limits: 50 µg/m3 DatePM10 (µg/m 3 ) High wind Sp (km/h)Wind direction 1/5/094.940.2NNW 4/5/092.835.4SSW 7/5/094.933.8SSW 10/5/093.651.5S 13/5/096.648.3SW 16/5/095.169.2NNW 19/5/0914.843.5S 22/5/0921.459.5SSE 22/5/094.251.5NW

18. Dust Emissions – on site monitoring

19. Dust Suppression & Noise Abatement Initiatives  Penrice Rd residents meeting with residents  Site Noise Modeling by Bassett Acoustics – commence in 2 nd week June.  This will include the new mobile crusher location in the east mound  Crushing capacity not been met within the current hours – longer hours will be investigated subject to environmental footprint, safety and labour requirements  Dust suppressant trials – see photo  Green dust suppressant (as per photo) has worked well and not affected by rain. It forms a crust on the stockpiles and prevents the stockpiles from eroding (water and wind). This is not a cost efficient option and we will continue to trial products that best meet common objectives  4 products have been trialed to date oTallow not effective on roads and will be assessed for stockpiles oPolocitrus is in use on train and aggregate crushing plant successfully oGreen dust suppressant effective for stockpiles but cost prohibitive oPolycom has been applied to selected routes around the weighbridge successfully and trials are ongoing

20. Dust Suppressant Trial – ABC stockpiles

21. 20 The Barossa Council – Better Development Plan Submission tendered by PIRSA, EPA and Penrice Will be able to be viewed via the Council web Public hearing 10 th June 2009 Key Penrice Issues Extractive Industry is a legitimate land use The EPA guidelines for Separation should be followed in any building activity including current zones – see photo The proposed rezoning will conflict with the mine operations Penrice opposes key elements of the Better Development plan

22. 21 Traffic Counter Derailment meant truck haulage to Osborne from 17/5 to 23/5 resulting in approx 80 extra truck movements per day

23. 22