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Springvale Water Treatment Project

SSD 7592

Progress Report #6

19 December 2018

December 2018 – Progress Report #6 for SSD 7592 Springvale WTP

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Table of Contents

Introduction ............................................................................................................... 5

1 Project Status ..................................................................................................... 6

1.1 Works Completed during Reporting Period ................................................. 6

1.2 Works Proposed for Upcoming Year ........................................................... 7

1.3 Identified Potential Delays and Mitigation Measures ................................... 8

2 Reporting ........................................................................................................... 8

2.1 Report Access ............................................................................................. 9

3 Site Photos ....................................................................................................... 10


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Introduction SSD 7592, for the Springvale Water Treatment Project, was granted to Springvale Coal Pty Limited on the 19

th of June 2017 by the Planning Assessment Commission (under delegation

from the Minister of Planning). Veolia Australia & New Zealand (Veolia) have been engaged as the construction and operations contractor to carry out the Springvale Water Treatment Project (Project) for MP Water, who are contracted to Springvale SK Kores Pty Limited, Centennial Springvale Pty Limited (together, the Springvale Joint Venturers) and EnergyAustralia NSW Pty Ltd (EnergyAustralia) for that purpose. The approved Project encompasses the following major elements:

A mine water transfer system with sufficient hydraulic capacity to allow transfer of 42 ML/day of dewatered mine water from the existing mine water Booster Station 2, forming part of the approved dewatering facilities on the Newnes Plateau, to the Mt Piper Power Station (MPPS) site;

A new water treatment plant at MPPS incorporating desalination processes to reduce the salinity in mine water to a standard suitable for either industrial reuse or environmental release;

Transfer of treated water from the water treatment plant for use in the MPPS cooling water system;

Infrastructure to allow pumping of excess treated water to Thompsons Creek Reservoir;

Disposal of residuals from the pre-treatment process in the reject emplacement area (REA) at the Springvale Coal Services site;

Transfer of the saline brine stream to the MPPS for integration with existing fly ash and brine disposal practices; and

Installing a crystalliser to provide further treatment of the additional salt load generated within the MPPS cooling water blowdown system.

The NSW Department of Planning and Environment (DPE) issued a modification application (SSD 7592 MOD1) for the Project on 12 January 2018. The changes to the Project as a result of the modification include an amended brine management process, a change to the pond strategy, additional hydraulic controls and minor changes to the pipeline alignments and an increase in the estimated peak construction workforce.

On the 16th of April 2018, DPE approved a request to extend the construction hours for the

Water Treatment Project. The approval was in relation to:

Extended construction hours for the Water Transfer System works over a 48hour period to complete horizontal directional drilling at the Wolgan Road drill site.

Extended construction hours (24hours, 7 days a week) at the Water Treamtnet Facility as required, to ensure the Project is completed within the approved timeframe (June 2019).

In accordance with Schedule 4, Condition 7 of SSD 7592 (as modified), reproduced below in Table 1, this progress report has been prepared to address the requirements of this condition.

The reporting period covers the period between the 20th of September 2018 to 19

th of

December 2018 (Reporting Period).


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Table 1: Condition Requirements

Condition No.

Requirement Section Addressed

7 Progress Reporting

The Applicant must monitor the status of the development and submit a quarterly progress report to the Secretary. The report must:

Noted

(a) be submitted within 3 months of 19 June 2017 and every 3 months thereafter until the operation of the Water Treatment Plant;

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(b) describe the development (including any construction) that was carried out in the past 3 months, and the development that is proposed to be carried out over the next year;

1.1

1.2

(c) identify any potential delays and describe measures to ensure that the Water Treatment Plant is operational by 1 July 2019; and

1.3

(d) be made publicly available on the Applicant’s website; 2.1

to the satisfaction of the Secretary. Noted

1 Project Status

1.1 Works Completed during Reporting Period

During the Reporting Period the progress made is as follows:

Design:

All major design packages for mechanical engineering (all structural, mechanical and

piping deliverables within the WTF) have been issued for construction, with final

interface works around vendor-supplied equipment ongoing;

Electrical and instrument design packages are being progressively issued to

construction. Plant control philosophies are finalised and the control system

configuration is progressing; and

The process detailed design is complete except for minor punch items and

incorporation of vendor designs.

Water Treatment Facility (WTF):

Onsite construction of major process tanks remains on-track for completion before

Christmas, despite wet weather impacts;

Underground pipework, pits and conduits, and civil works within the WTF footprint

have been brought forward and substantially completed to maximise site access for

mechanical, piping and cabling installation works;

Process drainage installation is progressing to completion;

Delivery and installation of process equipment for the WTF is almost complete. The

main Reverse Osmosis process plant is in transit to site having completed fabrication

and testing; and

Piping interconnection works have been underway during most of this period:

o Interface Pipelines run between WTF and Mount Piper Power Station;


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o Stainless steel header pipework installed in the water pre-treatment rack in

the Actiflo area;

o Major pipe-racks connecting the plant areas installed providing multiple work-

fronts for ongoing process pipe installation;

o Main RO plant and WTF polymer buildings have been erected;

o Electrical installation work has commenced.

Water Transfer System (WTS):

Vegetation clearing and grubbing of the pipe corridor in Zone 5 complete;

Erosion and sediment controls are progressively being installed along the pipeline

construction corridor. The erosion and sediment controls regularly monitored and

maintained for them to work properly, and effectively minimise sediment pollution;

WTS pipe laying has reached 11.7km out of 14.6km installed (80%):

o Installation of the WTS sections in Zones 0,1,4, complete;

o Rehabilitation of the disturbed areas in Zone 6 complete; and

Hydrotesting of the WTS sections in Zones 2, 3 and 6 complete.

Procurement:

Procurement packages cumulatively ordered at 95% complete with all major

equipment procured. Minor equipment such as chemical storage trays and working

spares are being purchased; and

Quality Assurance inspections continued at various suppliers without any significant

issues being identified.

1.2 Works Proposed for Upcoming Year

The following work is scheduled to be completed in the forward 12 month period:

Engineering and Procurement:

Completion and certification of final design;

Plant operating manuals and control system configuration; and

Placement of remaining orders for minor equipment and operating consumables.

Water Transfer System (WTS):

Installation of the WTS sections at Zones 5, interface pipelines site and under Skelly

road;

Joining and hydrotesting of remaining WTS sections;

Installation of fibre optic communication cable for pipeline monitoring;

Rehabilitation of the disturbed areas; and

Pre-commissioning and commissioning of the WTS.

Water Treatment Facility (WTF):

Interconnecting pipelines to the power station water systems;

Final receipt of process equipment and installation;

Installation of switchboards and power supplies;

Piping and cabling installation and connections;

Installation of buildings, offices and associated infrastructure;

Pre-commissioning and commissioning of the WTF; and

Beginning of operations period.


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1.3 Identified Potential Delays and Mitigation Measures

Recent schedule reviews have identified there is risk that the project may not be fully

operational in time to meet the regulatory date for ending water releases from Licensed

Discharge Point 9. A wide range of mitigation measures are being investigated and

progressed to address this risk, with certain key construction measures outlined below.

This period has seen substantial acceleration of construction works due to design,

procurement and changes in the WTF configuration that will ensure robust treated water

quality during operation, whilst still focussing on meeting key targets for start of water

processing. Strategies implemented during this period, such as bringing forward and

completing underground works, revised construction sequencing to maximise available work-

fronts, contracting multiple piping teams to work in parallel, integration of Veolia’s team with

its major sub- contractor, and extended working hours are showing increased productivity.

During the coming period, parallel work activities will continue with mechanical, structural and

electrical installation works, with early pre-commissioning activities taking place during night

shift to manage site congestion.

Dedicated task-forces have significantly reduced forecast delays in critical fabrication and

delivery of the main reverse osmosis plant, as well as most of the valves and instrumentation,

to mitigate delivery impacts on construction completion. Whilst much has been achieved

through these initiatives, accommodation of late delivery of equipment, valves and

instruments continues to put increased pressure on the project schedule and completion

targets.

Wet weather has also significantly impacted work progress over the current period and

remains a risk to the schedule. To the extent possible, weather-protection of work areas to

maintain productivity have been implemented.

Plant commissioning resources are being established within the project team and planning is

underway to ensure an effective commissioning program aligned to core stakeholder

requirements for the mine-water treatment.

2 Reporting

A timeline of reporting under Schedule 4, Condition 7 of SSD 7592 is tabulated below.

Table 2: Reporting Submissions

Progress Report #

Date Prepared By Distribution

- 19 June 2017 NA – SSD 7592 Granted.

1 19 September 2017 Springvale Coal Pty Limited DPE, Veolia, Centennial website

2 19 December 2017 Springvale Coal Pty Limited DPE, Veolia, Centennial website, Energy Australia, SSKK

3 19 March 2018 Springvale Coal Pty Limited DPE, Veolia, Centennial website, Energy Australia, SSKK

4 19 June 2018 Springvale Coal Pty Limited DPE, Veolia, Centennial website, Energy Australia, SSKK

5 19 September 2018 Springvale Coal Pty Limited DPE, Veolia, Centennial website, Energy Australia, SSKK

6 19 December 2018 Springvale Coal Pty Limited DPE, Veolia, Centennial website, Energy Australia, SSKK


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2.1 Report Access

Progress Reports can be located on the Centennial website, located at the following website address:

https://data.centennialcoal.com.au/domino/centennialcoal/cc205.nsf/Published.xsp?site=Springvale&type=Water%20Treatment%20Project&date=All




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3 Site Photos

Project Construction Zones


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Rehabilitation Complete – Zone 6

WTS Installation Complete – Zone 4


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Water Treatment Facility – Site Overview

WTF RO Building


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WTF RO Cartridge Filters

WTF Brine Dual Media Filters and Brine Exchange WAC


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WTF RO Neutralisation (Concrete) Tank

Springvale Coal Pty Ltd

P O Box 198

Wallerawang NSW 2845

www.centennialcoal.com.au

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