Chinese
Bauxite Resources Limited
Conversations with the Community - Chittering Shire
12 Feb 2010

Following is a series of Questions supplied by Mr Derek Gascoine to BRL with a request that they be answered by the time of the Conversation with the Community of 11th February. The response was delivered to Mr Gascoine on the 11 February 2010.

At the Conversation with the Community Chittering Shire on 11 February 2010, BRL committed to Mr Gascoine and others to make these questions and answers available on its web-site. The notes from the Conversation with the Community workshop will be posted on the web-site in two weeks.

 The numbered questions below are followed by a response in italics.

 

1.         Q: Why didn't BRL refer its Stage 1 proposal to the EPA for assessment?

A: The Environmental Protection Act allows any party to refer a new proposal to the EPA, but it is not required for any party including the proponent. The Environmental Protection Act however requires any Decision Making Authority who is to make a decision on a proposal  to refer that proposal to the EPA before they make a decision if the proposal is of a certain class or is environmentally significant. The Decision Making Authorities that did not refer the Trial Shipments to the EPA before deciding, and therefore considered it not environmentally significant included DEC (twice), Main Roads, Department of Mines, Shire of Chittering and Department of Water.  

2.         Q: When you applied for the Stage 1 Extractive Licence for Bauxite ore, was the Board of BRL aware that the Chittering Town Planning scheme does not permit mining?

A: Actually the Town Planning Scheme does not claim to not permit mining.  

3.         Q: Will BRL fund the repairs to Mooliabeenee Rd which are needed as a result of your operations?

A: Yes. Chittering Shire has set a legally binding condition that requires this. As well as that, BRL in advance contributed some $32,000.00 to the Chittering Shire as a contribution to road maintenance.  

4.       Q: What environmental bonds has BRL put up to ensure damage to the environment can be fixed up?

A: BRL has voluntarily agreed to an  environmental bond with the private  landowner on the trial operations to secure that the mine is rehabilitated such that the environment is returned to its pre-existing condition .The amount of the bond is significant but subject to a confidentiality agreement with the private landowner. 

5.         Q: What stopped your plans (announced in January 2009) to commence mining on an existing extractive licence near Brunswick Junction from February 2009?

A: This area is not within the Chittering Shire.  The Global Financial Crisis and economic downturn at that time effected the off-take customer Chinese Wusheng’s decision to take the trial Bunbury based material.

Stage 2/2010 Activity

6.         Q: What land Lots have you referred to the EPA for assessment as announced by in your 29 December ASX announcement? Is it "Minerals to Owner" land?

A: M2110 Stephens Road. No.  

7.       If it is "Minerals to Owner" land, has BRL applied under the Mining Act to bring the aforesaid land ("Stage 2") at the Stephens Rd prospect under the Mining Act and if not, do you intend to and if so, when?.

A: No. The aforesaid is not ‘stage 2’. 

8.       Q a) What tonnage is now in your proposed 2010 activity/Stage 2? And

A a)It is not ‘stage 2’. It represents approx 1.2 million tonnes.

Q b) How long will it take to mine?

A b) About 6 months.

9.         Q: BRL has 5 granted Exploration Licences which do not apply to the top 30 metres of private agricultural land. How many private landholder agreements does BRL have giving it access to the bauxite in the top 30 metres and where, and what mining agreements do you have on Minerals to Owner land, and where?

A: This question is confused between making assertions and asking questions. If there is a simple question please ask it.  

10.      Q: ln planning your future operations what steps are you taking to ensure that the agricultural and tourist developments and businesses that already exist in Chittering are not adversely effected?

A: This question is too general. Certainly agricultural land will be more productive after removal of the caprock layer, and it would appear that existing bauxite operations in WA have enhanced tourism. Agricultural land will be improved not adversely effected. Local businesses will be utilized where possible. Tourist areas in the Chittering Valley are not the target of operations.   

11.      Q: Review the Chittering Local Planning Strategy which states that no extractive industry should occur north of Bindoon and that Agricultural Resource land must be protected for agriculture and horticulture, and that shows Mooliabeenie Rd and Dewar's Pool Rd to be a Vegetation Protection Area. What plans are in place by BRL to comply with that strategy?

A: This question is confused between making assertions and asking questions. If there is a simple question please ask it. Further to the contrary  review page 37 of the Shire of Chittering Economic Development Strategy March 2002 adopted by the Council 20 June 2002 which identifies the extensive  gravel deposits within the Shire as an industrial opportunity in the context of the threatened viability of agriculture.   

Future mining plans

12.    Q: What Exploration Licences have been applied for or granted in the Shire of Chittering and within those areas, what are the properties where the land is Minerals to Owner?

A: At the forthcoming Conversation with the Community we will give as much detail as possible about bauxite reserves in the Chittering area but obviously we will not compromise the confidential business of landholders.

13.    Q: On Page 14 of your 2009 Annual Report you refer to the purchase of 163 Wells Glover Road which you propose mining and then establishing a wildlife sanctuary.

Q a). When do you plan to do that?

A a): Not in this year. We intend to work through with stakeholders a sequence that optimises benefits and minimises impacts.

Q b). Do you also propose mining Lot 7 Great Northem Highway on the Bindoon Escarpment, and are those properties Minerals to Owner land?

A b): At the forthcoming Conversation with the Community we will discuss the generality of bauxite reserves in the Chittering area, but none of our plans beyond this year have been finalised. Finalising such plans will be assisted by ongoing Conversations with the Community. We will not disclose any agreements or details of individual agreements with landholders.

 

13.    Q: What other operations and facilities do you propose locating on those properties, such as crushing, processing, stockpiling, washing facilities etc and what hours will they operate?

A: Not decided 

14.    Q: How do you propose your heavy vehicles will gain access to those properties? Has Main Roads been approached to approve those plans?

A: We have a firm proposal for only this year. Any decision by Decision Making Authorities including Main Roads must await decisions under the Environmental Protection Act before deciding. The focus of our road transport plans for this year involves Great Northern Highway and Mooliabeenee Road.

15.    A: lf you mine on the Bindoon Escarpment what will be the impacts on down-slope salinity for nearby agricultural properties and in the valleys below and how will the watercourses which are part of the Swan-Brockman River Catchments be affected?

A: Bauxite mining rehabilitation in Western Australia is recognised as world-leading. There is no evidence of salinity impacts despite intensive study.

16.    Q: Does BRL have an agreement with a company called Swancove Enterprises (a subsidiary of Iron Mountain Mining Ltd) in relation to its tenements and/or bauxite in the area?

A: No

Infrastructure

17.    Q: Stage 1 was not environmentally assessed and the trial has been a disaster for residents, businesses, road safety and the environment. Would BRL consider installing its own infrastructure away from local roads, residences and businesses to remove these impacts on the community and the environment?

A: More of a statement than question again. The Trial Shipments operation was very extensively assessed in a very extensive and expert proposal. Your assertion about its impact is yours.

19     Q: Are you intending to use exclusively local roads to haul ore? Will you provide any of your own infrastructure such as spur lines or conveyors?

A: Not decided.

 

20.    Q: Are you proposing to rail bauxite from all your Chittering sources via the Mooliabeenee rail siding?

A: Not decided.

 

Water

21.    Q: Do you propose using local ground water and surface water for dust suppression and processing at the mine, and dust suppression at the siding?

A: Some.

 

22.    Q: How much water will you use for a 3mtpa and 6mtpa operation at the mine and the siding, and where will you get it from?

A: We think that about 30 to 40 litre per tonne of ore is a good starting estimate.  

   

File Download: Conversations with the Community 11 Feb 2010.pdf