Statement 993 under Section 45C of the Environmental Protection Act

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Request to Amend Ministerial

Statement 993 under Section 45C of the Environmental Protection Act

1986 – North Star Power Supply Supporting Documentation

22 May 2020

662NS-0000-AP-EN-0010

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This document is protected by copyright, no part of this document may be reproduced or adapted without the consent of the originator/company owner, all rights are reserved. This document is “uncontrolled when printed”, refer to electronic copy for up to date version.

Request to Amend Ministerial Statement 993 under Section 45C of the Environmental

Protection Act 1986 – Power Supply 662NS-0000-AP-EN-0010

Revision Number REV 0

Status IFU - ISSUED FOR USE

Author Kate Thomson

Signature

Squad check number

Checked Fran Joubert

Signature

Approved Sean Mcgunnigle

Signature

Confidentiality PUBLIC USE (ACCESS TO

ALL) Publish on Extranet

Yes No

Review Date NA

22/05/2020 22/05/2020

22/05/2020

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SECTION 45C CHECKLIST

Information to be provided Provided

1. Six Aspects (for all requests) – Refer to Part 5 of Environmental Assessment Guideline No. 2 for further details

1.1 Identification of the content of the original proposal. Including previous changes or

amendments under section 45C and section 46 

1.2 Identification of the content of the relevant change(s) and prepare a modified Key Proposal Characteristics Table (if the change(s) can be described textually and/or a Figure to pictorially show the change(s).



1.3 Identification and information concerning the detrimental environmental effects the original

proposal has had or will have on the environment. 

1.4 Identification and information concerning the detrimental impacts the change(s) might have

on the environment 

1.5 Submission (supported by reasoning) as to whether the detrimental effect (if any) which the change(s) might have on the environment is additional to, or different from, the detrimental effect (if any) which the original proposal has had or will have on the environment.



1.6 Submission (supported by reasoning) as to significance (as identified in Section 5.1.6 (a) to (g)) of the identified detrimental effect(s) which the change(s) might have on the

environment and which is additional to, or different from, any detrimental effect which the original proposal has had or will have.



2. Other information (where relevant)

2.1 Spatial data showing boundaries of proposal and request for change(s) as explained in

Appendix 3. 

2.2 Details of any consultation with relevant stakeholders. 

2.3 Any additional information which readily identifies the change and its impact.  3. Documentation to submit a request

3.1 Completed checklist (this sheet) attached to the 45C request. 

3.2 Hard copy of the request, including relevant information. 

3.3. Electronic copy of the request, including any applicable spatial data and other relevant

information. 

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List of Tables

Table 1: EPA s 45C Requirements ... 8 Table 2: Current Approved Extent (Attachment 3 to MS 993) ... 9 Table 3: Modelled emissions and emission reductions from the Proposal and

associated infrastructure. ... 15

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1. INTRODUCTION

FMG Iron Bridge Pty Ltd (FMGIB) is developing the North Star Magnetite Project (North Star) (now referred to as Iron Bridge), located approximately 110 km south of Port Hedland in the Pilbara Region of WA (Figure 1). IB Operations Pty Ltd (IBO) is implementing North Star and will process 75 million tonnes per annum (Mtpa) of magnetite iron ore to produce 25 Mtpa of concentrate.

North Star was referred under Part IV of the Environmental Protection Act 1986 (EP Act) and the Minister for Environment granted approval with Ministerial Statement 993 (MS 993). North Star was also assessed under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and approved in 2012 (EPBC 2012/6689).

Three non-significant changes to North Star under s. 45C of the EP Act were subsequently approved.

The PER addressed the need for an on-site power station generating 120MW at North Star comprising three gas turbines to be located in the Mining Development Envelope (MDE). This power station was intended to operate 24 hours-a-day, 7 days-a-week.

Approval was sought to increase the capacity of the power station under s. 45C of the EP Act (with a number of other changes around dewatering forecasts) to increase the capacity of the power station to 221 MW. These changes were approved on 8 March 2019.

In 2020, Pilbara Energy Generation Pty Ltd (PEG), a wholly-owned subsidiary company of Fortescue, proposed the Pilbara Energy Connect (PEC) Project. The PEC Project will develop a combination of solar and gas-fired power generation across several locations in the Pilbara to provide power to a range of Fortescue and Fortescue Joint Venture Projects.

FMGIB now proposes to supply North Star with power largely from the PEC Project in place of the approved 221 MW on-site power station. In order to align the MS 993 approval with North Star as it is intended to be constructed, the already-approved 221 MW Iron Bridge power station will need to be removed from MS 993.

The only change to the key characteristics from this change to proposal application is the removal of the gas pipeline in the Infrastructure Corridor. The gas pipeline was required to provide gas to the 221 MW power station.

Table 1: Revised Key Characteristics Table

Element Current Approved Proposal Proposed Change

Mine Development Envelope Open-cut mine pits, waste rock dumps, groundwater production bores, tailings storage facility and associated infrastructure.

Clearing of no more than 3,493 ha within the revised mine

development envelope of 5,226 ha.

Dewatering of up to 5 GL/a.

N/A

Water Corridor Development

Envelope Clearing of no more than 886 ha

within the water corridor N/A

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Element Current Approved Proposal Proposed Change Borefield, water supply pipeline and

associated infrastructure. development envelope of 31,126 ha.

Abstraction at a rate of 20 GL/a from the Wallal aquifer.

Slurry Corridor Development Envelope

Slurry pipeline, natural gas pipeline, access road and associated infrastructure.

Clearing of no more than 315 ha within the slurry corridor

development envelope of 3,023 ha.

N/A

Infrastructure Corridor Development Envelope Aerodrome, access roads, groundwater production bores, transmission pipelines, gas pipeline and slurry pipeline.

Clearing of no more than 557 ha within the revised infrastructure corridor development envelope of 5,276 ha.

Infrastructure Corridor Development Envelope Aerodrome, access roads, groundwater production bores, transmission pipelines, gas pipeline and slurry pipeline.

1.1 Purpose

FMGIB proposes to amend North Star by removing the approved 221 MW North Star power station from MS 993.

The PEG project includes 165MW of gas fired generation, together with 150MW of solar photovoltaic (PV) generation (Lambda Junction solar farm and North Star Junction solar farm) which will be supplemented by large scale battery storage. The development of the PEG project will replace capacity of the North Star power station.

The proposed changes will result in power supply to North Star provided largely through connection to the PEG reticulated power transmission network

This report provides an environmental impact assessment supporting the application to amend MS 993 under s. 45C of the EP Act. No additional management measures are proposed to manage environmental impacts because of this application as removal of the power station from North Star will result in reduced construction impacts and lower greenhouse gas emissions being produced from the alternative power source proposed for the North Star.

The implementation of the proposed change detailed in this application will not result in a significant, detrimental environmental effect in addition to, or different from, the effect of the original proposal. In fact, the use of the PEG power network will result reduced greenhouse gas emissions required to provide power to the North Star.

1.2 Policy and Legislative Context

The Minister for the Environment (the Minister) has the power to approve a change to an approved proposal without referring a revised proposal to the EPA under Part IV of the EP Act.

Section 45C (2) provides that the only limitation placed on the Minister’s power to approve a change to an approved proposal, is that the Minister cannot give approval if:

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… the Minister considers the change or changes to the proposal might have a significant detrimental effect on the environment in addition to, or different from, the effect of the original proposal.

There are six aspects to the evaluation required under s. 45C to enable the Minister to approve the change. These are:

1. Identification of the content of the original proposal.

2. Identification of the content of the relevant change(s) and determine whether the change(s) involves a revision of the original proposal.

3. Determination as to whether the original proposal has had, or will have, any detrimental effect on the environment and if so, what. The Minister will take into account the implementation conditions in making his decision.

4. Determination as to whether the change(s) to the original proposal might (in the Minister’s opinion) have any detrimental effect on the environment, and if so, what.

5. Decide whether the detrimental effect (if any) which the change or changes in question might have on the environment is additional to, or different from, the detrimental effect (if any) which the original proposal has had or will have.

6. Determination as to whether any detrimental effect which the change(s) to the original proposal might have on the environment, which is additional to, or different from, any detrimental effect which the original proposal has had or will have is, in the circumstances, significant.

1.3 Structure of this s. 45C Support Document

This change to application has been prepared using the EPA’s Instructions for request for a change to proposal under Section 45C of the Environmental Protection Act 1986

(Environmental Protection Authority, 2016) and the Environmental Impact Assessment (Part IV Divisions 1 and 2) Administrative Procedures 2016 (Environmental Protection Authority, 2019).

Specifically, this application addresses the six aspects detailed in Table 1, as required by the EP Act.

Table 1: EPA s. 45C Requirements

EPA s. 45C Requirements Location in this

Application

Step 1 Content of the original proposal Section 2

Step 2 Content of the proposed change to the proposal Section 3

Step 3 Detrimental environmental effects of the original proposal Section 4 Step 4 Detrimental environmental effects of the proposed change Section 5 Step 5 Additional or different detrimental environmental effects of the proposed change Section 6 Step 6 Significance of the additional or different detrimental environmental effects Section 7

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2. STEP 1: CONTENT OF THE ORIGINAL PROPOSAL

The North Star Magnetite Project was originally referred under Part IV of the EP Act in October 2012. Public Environmental Review Documentation (Fortescue Metals Group Limited, 2013) was made available for public comment between 9 September 2013 and 21 October 2013. The EPA recommended approval of the project, with conditions (Environmental Protection Authority, 2014). Following the dismissal of an appeal, the Minister released MS 993 on 9 January 2015.

Subsequently, four s. 45C changes have been considered and approved:

• 22 August 2016: Attachment 1 to MS 993:

o change to area of Slurry Corridor Development Envelope (SCDE)

o addition of aerodrome to elements in the Infrastructure Corridor Development Envelope (ICDE)

o additional clearing for an aerodrome in the ICDE o change to area of ICDE

• 8 March 2019: Attachment 2 to MS 993:

o an increase in groundwater abstraction from the Water Corridor Development Envelope from 14 gigalitres per annum (GL/a) up to 20 GL/a, an increase of 6 GL/a, from the previously authorised extent.

o an increase of power station capacity from 120 MW to 221 MW.

• 2 December 2019: Schedule 2 and Attachment 3 to MS 993:

o a 204 ha decrease in the area covered by the ICDE to 4,950 ha

o a corresponding increase of 204 ha in the area covered by the MDE to 5,174 ha.

o minor changes to wording within Table 2 of Schedule 2.

• May 2020:

o Amendments to the development envelopes, with no additional clearing to occur.

o Additional 4.5 GL/a dewatering to facilitate mining below the water table o Amendment of coordinates listed in Schedule 3.

The authorised extent of the proposal as currently approved is described in Table 2.

Table 2: Current Approved Extent (Attachment 3 to MS 993)

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Element Authorised Extent Mine Development Envelope

Open-cut mine pits, groundwater production bores, waste rock dumps, tailings storage facility and associated infrastructure.

Clearing of no more than 3,493 ha within the revised mine development envelope of 5,174 ha.

Water Corridor Development Envelope Borefield, water supply pipeline and associated infrastructure.

Clearing of no more than 886 ha within the water corridor development envelope of 28,696 ha.

Abstraction at a rate of 20 GL/a.

Slurry Corridor Development Envelope

Slurry pipeline, natural gas pipeline, access road and associated infrastructure.

Clearing of no more than 315 ha within the slurry corridor development envelope of 2,781 ha.

Infrastructure Corridor Development Envelope Aerodrome, access roads, groundwater production bores, transmission pipelines, gas pipeline and slurry pipeline.

Clearing of no more than 557 ha within the revised infrastructure corridor development envelope of 4,950.

Construction of the power station and power generation at North Star are not specifically referenced in Attachment 3 to MS 993. EPA Report 1514 mentions power generation in the water corridor for pumping stations to give the relative location of the accommodation camp.

However, the PER document describes:

Power will be supplied to the mine area via an onsite 120 MW power station located adjacent to the Processing Plant in the Mining Development Envelope. The power station will consist of three gas turbines. The power station will operate on a 24 hour, 7 day a week basis.

All generators will be designed to operate on either diesel or natural gas (dual fuel) to allow for potential supply chain interruptions. It is envisaged that all generators will operate on natural gas except in times of gas supply interruption.

Subsequently, the s.45C approved on 8 March 2019 states that the powerplant will produce 221 MW to support North Star.

2.1 Key Environmental Factors

EPA Report 1514 noted the key environmental factors for the original proposal as being:

• Flora and Vegetation

• Terrestrial Fauna

• Subterranean Fauna

• Hydrological Processes and Inland Waters Environmental Quality

• Offsets – Integrating Factor.

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2.2 Implementation of Existing Proposal

Evidence of substantial commencement of North Star was provided to Department of Water and Environmental Regulation on 5 August 2019. This has included commencement of construction of:

• an aerodrome and associated access road

• expansion of the North Star accommodation village

• water pipeline

• development/ widening of the existing site access road.

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3. STEP 2: CONTENT OF THE PROPOSED CHANGE

This proposal involves one main change – replacement of the 221 MW North Star power station with 15 MW of diesel generation (with up to 40 MW capacity for back-up purposes), and

resultant connection of North Star to the PEG transmission network.

The proposed changes do not require amendments to Schedules 1 or 2 of MS 993.

As this application proposes the removal of powerplant infrastructure from the North Star there is no associated development schedule.

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4. STEP 3: DETRIMENTAL IMPACTS OF THE ORIGINAL PROPOSAL

This application deals exclusively with changes to greenhouse gas emissions, only these impacts are restated in this section. For a summarised description of the overall environmental impact of the original proposal please refer to previous change to proposal applications for changes to MS 993. As Fortescue’s supporting documents to s. 45C applications all follow the same structure, this information is to be found in Section 4, ‘Step 3: Detrimental Impacts of the Original Proposal’.

Maximum annual greenhouse gas emissions from North Star power station approved under MS 993 are estimated at 1,196,423 t CO2-e (Table 3)^.

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5. STEP 4: DETRIMENTAL IMPACTS OF THE PROPOSED CHANGE

The implementation of the proposed change detailed in this s. 45C application will not result in a significant, detrimental environmental effects. The use of the PEG power network will result in reduced construction impacts at North Star, and reduced greenhouse gas emissions required to provide power to North Star.

Maximum annual greenhouse gas emissions from the North Star power station approved under MS 993 are estimated at 1,196,423 t CO2-e (Table 3). Maximum annual greenhouse gas emissions from the PEG power station is estimated at 609,696 t CO2-e. Provision of power to the Iron Bridge Mine Site from the PEG network rather than an onsite gas turbine power station will provide a net reduction in greenhouse gas emissions to atmosphere compared to the construction and operation of the power station approved under MS 993. However, it should be noted that neither the approved 221 MW power station nor the PEG network is able to power the borefield in the Canning Basin.

Table 3 demonstrates the reduced total annual greenhouse gas emissions achieved by replacing the North Star power station with PEG power supply, and how future additions are calculated to provide further reductions through displacement of fossil fuel combustion.

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Table 3: Modelled emissions and emission reductions from the Proposal and associated infrastructure.

Emission Intensity t CO2-e/MWh

Annual Emissions t CO2-e

Annual Reduction Compared to Already Approved (MS 993) scenario t CO2-e

Annual Modelled reductions from PEG¹ t CO2-e

Annual Net CO2-e reduction² t CO2-e

Additional power North Star would have required in addition to the 221 MW power station

(15 MW diesel generation³)

0.687 90,271 N/A N/A N/A

North Star power station

approved under MS 993 0.618 1,196,423 N/A N/A N/A

Proposed PEG power station

(gas only) 0.464 609,696 586,727 - -

Integration ofLambda and North Star Junction Solar Farms.

- - - 64,627 185,075

Integration of 50MW Battery system for Spinning Reserve Services

- - - - 162,410

1This column illustrates modelled benefit to the PEG Gas fired emissions when PEG Gas fired generation is augmented by Solar generation in a future scenario.

2Including other entities such as Solomon power station, but excluding reductions already counted in Annual Modelled reductions from PEG

3This power generation is still required in the proposed scenario, and is the expected load. However, 40 MW of generation capacity will be provided for back-up purposes

The calculations undertaken for Table 8 are based on likely scenarios, but are calculated in a conservative way. Estimation techniques developed for NGER reporting were utilised where applicable. Data collected at existing Fortescue operations was used to estimate the

greenhouse gas emissions where appropriate. That is, Christmas Creek power station emissions from the 2019 financial year were used to calculate the emissions for the first row.

The already approved scenario was based on the procurement of GE LM6000 gas turbines in combination with Solar Titan Turbines to construct a power station at North Star approved under MS 993. Two LM6000s and four Solar Titan turbines are installed at Solomon power station, and the specifications fit what was outlined, ~40MW gas turbines, in the original North Star PER

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(Fortescue, 2013) with some of the difference between the original 120MW and the revised 221MW to be made up with Solar Titan units.

PEG has utilised data from the likely engine supplier. The PEG power station emissions were calculated based on the highest likely dispatch of the power station, 150MW.

The net CO2-e benefit that the integration of a 60MW Battery system to provide Spinning Reserve Services, is calculated on the assumption that one Solomon power station LM6000 would need to be continuously dispatched to provide this service. The minimum speed a

LM6000 unit could run at to provide this service would be 75%, so this figure (75%) was used in the calculation.

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6. STEP 5: ADDITIONAL OR DIFFERENT DETRIMENTAL ENVIRONMENTAL EFFECTS OF THE PROPOSED CHANGE

The implementation of the proposed change detailed in this change to proposal application will not result in a significant, detrimental environmental effect in addition to, or different from, the effect of the original proposal.

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7. SIGNIFICANCE OF THE ADDITIONAL OR DIFFERENT ENVIRONMENTAL EFFECTS

The implementation of this amendment to the original proposal, as detailed in this change to proposal application, will not result in any significant detrimental environmental effects that are in addition to, or different from, the effects of the original proposal.

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8. ENVIRONMENTAL MANAGEMENT OF THE PROPOSED CHANGE

No additional management measures are proposed to manage environmental impacts as a result of this change to proposal application as removal of the power station from North Star will result in lower greenhouse gas emissions being produced from the alternative power source proposed for North Star.

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9. CONCLUSION

FMGIB has reviewed the environmental factors assessed in the PER and submits that

implementation of the proposed changes, as detailed in this change to proposal application will not result in significant, detrimental environmental effects. In addition, FMGIB submits the implementation of this amendment to the original proposal, as detailed in this s. 45C application, will not result in any significant detrimental environmental effects that are in addition to, or different from, the effects of the original proposal.

The implementation of this proposal will reduce greenhouse gas emissions produced from the alternative power source proposed for the Iron Bridge Mine Site.

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10. REFERENCES

Environmental Protection Authority. (2014). Report and recommendations of the Environmental Protection Authority: North Star Magnetite Project, Fortescue Metalks Group Iron Bridge (Aus) Pty Ltd. Perth: Environmental Protection Authority. Retrieved from

http://epa.wa.gov.au/sites/default/files/EPA_Report/Rep%201514%20North%20Star%20 Magnetite%20PER%20230614_0.pdf

Environmental Protection Authority. (2016, September 24). Instructions for request tfor a change to proposal under section 45C of the Environmental Protection Act 1986.

Retrieved from http://epa.wa.gov.au/forms-templates/instructions-change-proposal- under-section-45c September 2019

Environmental Protection Authority. (2019, September 24). Environmental Impact Assessment (Part IV Divisions 1 and 2) Administrative Procedures 2016. Retrieved from

http://epa.wa.gov.au/sites/default/files/Policies_and_Guidance/Gg223.pdf

Fortescue Metals Group Limited. (2013). North Star Magnetite Project Public Environmental Review. Perth: Fortescue Metals Group Limited.

Statement 993 under Section 45C of the Environmental Protection Act

Request to Amend Ministerial