Michael Roche

Chief Executive

Environmental Management in Materials Handling 5 June 2013

Working with communities to mitigate environmental issues

> The Queensland Resources Council (QRC) is a not-for-profit peak industry

association representing the commercial developers of Queensland’s

minerals and energy resources

> 86 full members – explorers, miners, mineral processors, site contractors,

oil and gas producers, electricity generators

> 193 service members - providers of goods or services to the sector

> Multi-commodity peak body specialising in Queensland-based advocacy

Who is the Queensland Resources Council?

86

full

members

193

service

members

40

associate

members

Aberdare Collieries

Adani Mining

A.J. Lucas Coal Technologies

Alcyone Resources

Allegiance Coal

Altona Mining

Ambre Energy

Anglo American Exploration

Anglo American

Aquila Resources

Areva Resources Australia

Arrow Energy

Bandanna Energy

BHP Billiton Cannington

BHP Billiton Mitsubishi Alliance

Birla Mt. Gordon

Blackwood Corporation

Caledon Coal

Cape Alumina

Cape Flattery Silica Mines

Carabella Resources

Carbon Energy

Carpentaria Gold

Cement Australia

Civil Mining and Construction

Clean Energy Australasia

Coalbank

Cockatoo Coal

CuDeco

Downer EDI Mining

Eagle Downs Coal Management

Ensham Resources

ERM Power

Evolution Mining

Exco Resources

Golding Contractors

Guildford Coal

Hancock Coal

Investigator Resources

Ivanhoe Australia

Jellinbah Resources

Jindal Steel & Power

John Holland

Lagoon Creek Resources

Leighton Contractors

Liberty Resources

Linc Energy

Macmahon Holdings

MacMines Austasia

Mastermyne

Mega Uranium

Metallica Minerals

MetroCoal

Millmerran Power Management

Minerals and Metals Group

Mitsubishi Development

New Hope Group

Norton Gold Fields

Origin Energy

OZ Uranium

Paladin Resources

Peabody Energy

QCoal

QER

QGC

Rio Tinto Alcan

Rio Tinto Coal Australia

Santos/TOGA

Sibelco Australia

Sojitz Coal Mining

Sonoma Mine Management

Stanmore Coal

Summit Resources

Superior Coal

Tata Steel Resources Australia

Thiess

Vale

Vital Metals

Watpac Civil & Mining

Wesfarmers Resources

Westside Corporation

Whitehaven Coal

Xstrata Coal Australia

Xstrata Copper

Xstrata Zinc Australia

Yancoal Australia

4

Health, education, immigration and roads top-of-mind issues

20%

12%

2%

8%

17%

16%

4%

3%

9%

4%

3%

18%

5%

2%

4%

4%

35%

29%

19%

18%

18%

10%

9%

8%

7%

7%

6%

6%

6%

5%

4%

4%

Health

Education

Illegal immigration / boat people

Roads

Economy & Finances

Employment

Budget

Social & welfare

Mining & resources

Environment

Taxes

Cost of living

Rural & regional

Other public infrastructure

Crime

Government & politicians

Total 2012

Total 2013

5

Support for the mining & resources industry remains high

79%

33%

16%

5%

5%

82%

35%

14%

5%

4%

TOTAL SUPPORT

Strongly support

TOTAL OPPOSE

Strongly oppose

Don’t know / No

opinion

Total 2012

Total 2013

6

Top spontaneous reasons to support the resources sector

42%

39%

12%

10%

9%

8%

7%

7%

5%

4%

4%

4%

50%

43%

11%

7%

7%

6%

4%

4%

5%

4%

3%

0%

Employment

Economy / exports

Personal interest/involvement

Economy needs mining & resources / Other industries cannot

support

Benefits for region / Good for local economy

Conditional Support - depending on other factors

Meet energy/mineral demands/be self-sufficient/maintain lifestyle

Concerns about environmental damage

Make use of the resources we have

For progress/growth

General benefits to the state/nation

They know what they are doing

Total 2012

Total 2013

7

General environmental concerns dominate

29%

24%

11%

10%

10%

9%

9%

8%

6%

4%

4%

4%

2%

32%

25%

8%

9%

12%

3%

13%

12%

9%

6%

2%

8%

3%

19%

38%

14%

19%

8%

10%

6%

6%

5%

4%

0%

0%

4%

32%

18%

10%

5%

10%

15%

13%

9%

3%

3%

10%

4%

3%

40%

9%

8%

2%

15%

2%

7%

11%

9%

5%

3%

9%

0%

Environmental

Taking over agricultural land/Destroying farmers’ livelihoods

Anti CSG

Impact on landholders' / farmers' rights

Short term gain/Too much too quickly

Water contamination, usage concerns

There has not been enough research

Profits go overseas

Ethical concerns/Greed

Impcat on community / locals have no say

Environment - Flora/Fauna/Habitats

Land rehabilitation/Conservation process is insufficient

Increases the cost of housing/living

Total 2013

Soft voters

DD Regional

CQ Regional

Marginal Electorates

QRC environment policy

Promote sustainable environmental management outcomes throughout the resources sector

Secure leading systems of environmental administration and regulation

QRC provides strategic leadership by:

• promoting leading environmental management

• promoting continual improvements in environmental performance

• promoting the conservation of biodiversity

• facilitating stakeholder communication

• establishing an industry position on environmental issues

• working with key stakeholders to achieve an equitable legislative framework

1. Disrupt and delay key infrastructure

2. Constrain the space for mining 3. Increase investor risk 4. Increase costs 5. Withdraw social licence of coal industry 6. Build a powerful movement

1. Disrupt and delay key infrastructure

Challenge and delay key infrastructure developments (ports and rail) and ‘mega mines’. • Wandoan Supreme Court challenge (taxpayer-funded through EDO) • Multiple Land Court challenges to issuing of mining leases, often by persons with no connection to projects under challenge • EPBC amendments – ‘water trigger’ and ‘Great Barrier Reef’ • World Heritage-in danger listing threat for GBR because of port development, and ignoring the real threats

2. Constrain the space for mining

Build on the outrage created by coal seam gas to win federal and state based reforms to exclude mining from key areas, such as farmland, nature refuges, aquifers, and near homes. Landowners locking the gate. • NSW/Qld exclusion zones for exploration • Lock The Gate – from Tara to NSW overstating angst; celebrity scaremongering • ‘Battle’ for Bimblebox Nature Reserve (Waratah Coal) • Gasland 1 & 2; Call to Country TV campaign • Dredging in GBR Marine Park/World Heritage Area

3. Increase investor risk Create uncertainty and a heightened perception of risk over coal investments

4. Increase costs Increasing the cost of coal is fundamental to the long-term global strategy to phase out the industry. We can start to remove the massive subsidies to the coal industry, and to internalize the ‘externalized’ costs of coal • Ongoing campaign to withdraw federal fuel tax credits • Court challenges, previously taxpayer-funded through EDOs • Expensive, unnecessary EPBC amendments • Federal approvals delaying tactics (TWS ships claim – South of Embley Project) • Greens’ pressure on MRRT amendments with ‘class warfare’ undertones

5. Withdraw social licence of the coal industry

Change the story of coal from being the backbone of our economy, to being a destructive industry that destroys the landscape and communities, corrupts our democracy, and threatens the global climate • Month-long Rainbow Warrior tour of coastal Queensland • Great Barrier Reef ‘coal superhighway’ campaign • Port expansions ‘dredging the reef’ • Demonisation of non-resident workers (FIFO/DIDO); 457 visa holders • ‘Greens health spokesperson, Dr Richard Di Natale, said today that the Greens- initiated Senate Inquiry on air quality will focus on the health impacts of coal.’ • South West and Brisbane metropolitan rail corridor ‘coal dust’ health issue

6. Build a powerful movement Create stronger networks and alliances and build the power necessary to win larger victories over time • Graeme Wood (Wotif) and David Thomas (Cellarmasters) Foundation supporters • Global players – 350.org, Pew Centre, Rockefeller Foundation, Sierra Club, Greenpeace • Brisbane WWF office now paying 20 staff

Western/metropolitan rail corridor dust management plan

Stop Brisbane Coal Trains – anti

coal movement campaign at work

Fears raised with local communities

about ‘coal dust health problems’

arising from coal transported to Port

of Brisbane. Real focus is stopping

all coal exports.

Industry users’ group on front foot,

preparing Dust Management Plan

incorporating results of independent

scientific testing

Users Group: New Hope Group, Peabody Energy, Yancoal Australia; supply chain

service providers Aurizon, Queensland Rail and Queensland Bulk Handling

•Baseline PM2.5/PM10 monitoring for two months

• Oakey • Toowoomba • Ipswich • Tennyson • Fairfield • Coorparoo • Chelmer (control)

Proactive industry response

Media overreaction – instant health ‘crisis’ despite no scientific evidence

Proactive industry response

The coal industry funded testing and monitoring at seven sites builds on the Queensland Government’s Tennyson Dust Monitoring Investigation in September 2012 which found: -No exceedances of dust and air quality objectives - Deposited dust samples showed coal dust at 10-20% of total dust was not the major source of dust

Map showing the location of the monitoring sites at Tennyson in relation to the rail corridor.

The next phase New Acland (Jondaryan) mine

began profiling, veneering in May.

Monitoring to measure ‘before’ and

‘after’ scenarios. Evaluation reports

to be published.

Longer-term continuous monitoring

and near real time reporting

All mines using Port of Brisbane on

board, consistent with CQ dust

suppression commitments

Anti-coal movement reaction ‘Health professionals are among the most trusted people in the Australian community. By amplifying their voices in the coal debate, we can powerfully shift public sentiment against the coal industry in general and against specific projects in particular.’

Anti-fossil fuels movement

unconstrained by facts

Industry is up against well funded and highly organised Green groups who don’t feel constrained by the facts. They claim that by 2020/22 there will be 11,000 coal ships and 1 billion tonnes of coal carried through Reef Industry will calmly present facts eg state government estimates of about 3000 coal and LNG ships and 300M tonnes of coal (180M in 2012)

Queensland coal sector

growth in perspective

0100200300400500600700800900

1000

Mtp

a

Year

Queensland coal exports: actual and likely growth cf Greenpeace estimates

Actual Greenpeace Likely

Source: ABARES, QRC estimates, Greenpeace 'Boom Goes the Reef'

CAGR 5.4%

CAGR 19%

CAGR 6%

CAGR – Compound Annual Growth Rate

Michael Roche

Chief Executive

Environmental Management in Materials Handling 5 June 2013

Working with communities to mitigate environmental issues