Showing posts with label water. Show all posts
Showing posts with label water. Show all posts

Friday, 16 February 2018

Failed coal seam gas mining company Linc Energy's 9 week trial underway in Queensland, Australia


As the story unfolded.........

ABC News, 16 April 2016:

Oil and gas company Linc Energy has been placed into administration in a bid to avoid penalties for polluting the environment, a Queensland green group says.

It was announced late Friday that administrators PPB Advisory had been called in to work with Linc's management on options including a possible restructure.

In a statement to the ASX, the company said after receiving legal and financial advice and considering commercial prospects the board decided it was in the best interests of the company to make the move.

It comes one month after the company was committed to stand trial on five charges relating to breaches in Queensland's environmental laws at its underground coal gasification site.

The state's environment department accused the company of wilfully causing serious harm at its trial site near Chinchilla on the Darling Downs.

Drew Hutton from the Lock the Gate Alliance said the company could face up to $56 million in fines if found guilty, but the penalty might never be paid.

"It is going to be difficult to get any money out of this company now that it is in administration," he said.


Mr Hutton said going into administration was a common legal manoeuvre to dodge fines and costly clean-ups......

Queensland Government, Dept. of Environment and Heritage Protection, 29 January 2018:

Environmental Protection Order directed to Linc

Prior to Linc entering liquidation, DES issued Linc with an Environmental Protection Order (EPO) which required it to retain critical infrastructure on-site, conduct a site audit and undertake basic environmental monitoring to characterise the current status of the site.

Linc’s liquidators launched a legal challenge associated with this EPO in the Supreme Court seeking orders that they were justified in not causing Linc to comply with the EPO (or any future EPO). DES opposed this application.

In April 2017, the Supreme Court directed that Linc’s liquidators are not justified in causing Linc not to comply with the EPO. The Court accepted DES’ argument that the relevant provisions of the EP Act prevail over the Commonwealth Corporations Act and that Linc’s liquidators are executive officers of the company. Subject to any appeal decision, this confirms DES’s ability to enforce compliance with environmental obligations owed by resource companies who have gone into administration or liquidation.

Linc’s liquidators have since appealed the decision to the Court of Appeal. This appeal was heard in September 2017 and the decision was reserved.

Environmental Protection Order directed to a related person of Linc

DES used the ‘chain of responsibility’ amendments to the EP Act to issue an EPO to a ‘related person’ of Linc. The EPO requires the recipient to take steps to decommission most of the site’s dams and provide a bank guarantee of $5.5 million to secure compliance with the order.

The recipient of the EPO has appealed to the Planning and Environment Court and that litigation is ongoing.

The recipient of the EPO also applied for an order that the appeal be allowed and the EPO be set aside on the basis that DES denied him procedural fairness. The Planning and Environment Court dismissed that application. The recipient of the EPO appealed that decision to the Court of Appeal. That appeal was heard in March 2017 and judgment in favour of DES was delivered in August 2017. Subject to any further appeal, this decision confirms that the recipient was not denied procedural fairness and that DES’ interpretation of the EP Act was correct.

The earlier appeal in relation to the EPO (regarding the substance of the document) is yet to be heard by the Planning and Environment Court.

Investigation and prosecution of Linc and former executives

Linc Energy Limited will stand trial in the Brisbane District Court, commencing 29 January 2018, on five counts of wilfully causing serious environmental harm, in contravention of the Environmental Protection Act 1994.

All counts relate to operations at the Linc Energy underground coal gasification site near Chinchilla, from approximately 2007 to 2013, and allege that contaminants were allowed to escape as a result of the operation.

In addition, the Queensland Government has charged five former Linc Energy executives over the operation of the UCG site in Chinchilla. A committal hearing in the Brisbane Magistrates Court is expected to take place in mid-2018.

As these matters remain before the courts, DES is unable to comment further on the legal proceedings.

Media releases


ABC News, 30 January 2018:

A landmark case described by a District Court judge as "unusual" will hear how gas company Linc Energy allegedly contaminated strategic cropping land causing serious environmental damage to parts of Queensland's Western Downs.

Linc Energy is charged with five counts of wilfully and unlawfully causing environmental harm between 2007 and 2013 at Chinchilla.

The charges relate to alleged contamination at Linc Energy's Hopeland underground coal gasification (UCG) plant.

The trial will enter its second day today in the District Court in Brisbane, with crown prosecutor Ralph Devlin QC expected to begin his opening address to the empanelled jury later this morning.

Former Linc Energy scientists, geologists, and engineers as well as several investigators from the Queensland Environment Department are among those expected to give evidence.

Echo NetDaily, 30 January 2018:

BRISBANE, AAP – A failed energy company accused of knowingly and illegally polluting a significant part of Queensland’s Darling Downs has faced trial in a landmark criminal case in Brisbane.

Linc Energy is charged with five counts of wilfully and unlawfully causing environmental harm between 2007 and 2013 after allegedly allowing toxic gas to leak from its operations.

The Brisbane District Court trial has heard Linc’s four underground coal gasification (UCG) sites and water were polluted to the point it was unfit for stock to consume but the company kept operating.

Crown prosecutor Ralph Devlin QC told the jury the company allowed hazardous contaminants to spread even after scientists and workers warned about gases bubbling from the ground.

Linc operated four UCG sites in Chinchilla where it burnt coal underground at very high temperatures to create gas.

In his opening address on Tuesday, Mr Devlin said scientists warned senior managers about the risk environmental harm was being caused throughout the operation…..

 ‘Bond prioritised Linc’s commercial interests over the requirements of operating its mining activity in an environmentally safe manner,’ Mr Devlin said.

‘Linc did nothing to stop, mitigate or rehabilitate the state of affairs that Linc itself had caused.’

As part of the UCG process, Linc injected air into the ground, which created and enlarged fractures.

It tried to concrete surface cracks and use wells to control pressure but they didn’t sufficiently reduce risks or damage, the court heard.

‘Linc kept going, even knowing the measures weren’t working,’ Mr Devlin said.

Scientists who visited the site are due to give evidence during the nine-week trial, but no senior managers from the company, which is in liquidation, will take the stand.

The trial continues.

ABC News, 8 February 2018:

Workers at an underground coal gasification plant on Queensland's Western Darling Downs were told to drink milk and eat yoghurt to protect their stomachs from acid, a court has heard.

The gas company has pleaded not guilty to five counts of causing serious environmental harmfrom its underground coal gasification operations between 2007 and 2013 in Chinchilla.

The corporation is not defending itself as it is in liquidation so there is no-one in the dock or at the bar table representing the defence.

A witness statement by former gas operator Timothy Ford was read to the court, which he prepared in 2015 before his death.

The court was not told how Mr Ford died.

He said the gas burnt his eyes and nose and he would need to leave the plant after work to get fresh air because it made him feel sick.

"We were told to drink milk in the mornings and at the start of shift… we were also told to eat yoghurt," he said.

"The purpose of this was to line our guts so the acid wouldn't burn our guts.

"We were not allowed to drink the tank water and were given bottled water."

Mr Ford said he always felt lethargic, suffered infections and had shortness of breath.

"During my time at the Linc site, would be the sickest I have been," he said.

"It is my belief that workplace was causing my sickness.

"I strongly feel that the Linc site was not being run properly due to failures of the wells and gas releases.".....

Sunshine Coast Daily, 9 February 2018:

A CONCRETE pumper says he saw 'black tar' seeping up at a Linc Energy site and raised concerns with the company.

Robert Arnold has told a court he noticed some odd occurrences when he went to the Chinchilla site in late 2007……

On Thursday, Mr Arnold told jurors he noticed several phenomena at the site.
"We saw bubbles coming up ... and a black tar substance. We commented back to Linc about it."

"A few of us went over and had a look ... basically it just looked like a heavy black oil ... it was in the puddles as well, in the same area," Mr Arnold added.

"We couldn't place our equipment close to the well because of these overhead pipes ... it was dripping out of the joints."

Prosecutor Ralph Devlin earlier claimed a "bubbling" event happened on the ground after rainfall at the coal gasification site.

Mr Arnold told jurors that after discussing the oozing substance, concrete trucks turned up and he pumped the concrete into a well.

Mr Arnold said he felt the concrete used that time was "very light" but the on-site supervisor made that decision.

Prosecutors previously told the court concerns were raised at various times with Linc leadership about the quality of cement and geological data used at the site.

The Crown has also claimed Linc used its underground wells in a way that made them fail, and allowed contaminants to escape far way, to places Linc could not remove them.

BACKGROUND
Wikipedia, 5 February 2018:

Linc started its Chinchilla Demonstration Facility in July 1999. First gas was produced in that very same year. Initially Linc Energy used the underground coal gasification technology worked out by Ergo Exergy Technologies, Inc, of Canada. 

However, in 2006 the cooperation with Ergo Exergy was terminated and the cooperation agreement for technology usage, consultation and engineering services was signed with the Skochinsky Institute of Mining and the Scientific-Technical Mining Association of Russia.[2]

In 2005, Linc signed a memorandum with Syntroleum granting a licence to use the Syntroleum's proprietary gas-to-liquid technology and started to build a GTL pilot plant in November 2007 at the Chinchilla facility. The plant was commissioned in August 2008. The first synthetic crude was produced in October 2008.[3]

Thursday, 15 February 2018

Gas industry finally admits that its lobbying spin contains untruths?


Tucked into the wall-to-wall spin of this media release is a tacit admission that safe aquifer recharge with treated water is little more than a convenient deception offered up to governments and citizens in the gas industry's drive to create more gasfields and extract more water from the natural environment in the mining process.
Research into the effects of the Coal Seam Gas industry on groundwater is continuously improving our understanding about underground water movements and implications for coal seam development.
Scientists from Queensland's independent Office of Groundwater Impact Assessment (OGIA) and the University of Queensland Centre for Coal Seam Gas have been wading through an enormous amount of data being contributed by landholders, government, industry and other research projects to build up a better understanding of groundwater movements.
Early studies suggest that the recharge of underground aquifers may not be as effective as once thought and recharge flow paths may not be what we first thought.
Research indicates that much of the rain recharging the Hutton and Precipice Sandstone aquifers in the North-East Surat Basin is discharging into the local low topography of the Dawson River.
That means the water is flowing in a north easterly direction, rather than to the south west into the regional Great Artesian Basin as was thought prior to 2009.
These findings were applied by OGIA in the development of regional groundwater flow models in 2012 and 2016 but many landholders remain unaware of the new findings.
It's also thought there could be small faults that create a localised connection between the Precipice and Hutton Aquifers in the vicinity of what is known as the Moonie-Goondiwindi fault system.
Researchers stress that this is still a work in progress and it is currently being reviewed by UQ and CSIRO researchers working independently on multiple data sets to either confirm or refute the hypothesis.
Lead researcher at the UQ Centre for Coal Seam Gas, Prof Jim Underschultz says, "Our understanding of the Great Artesian Basin is increasing as researchers analyse the growing amount of data collected from the basin.
"The use of groundwater monitoring data, water production figures, detailed geographic distributions of water levels and hydrocarbon migration 'fingerprints' are giving us a level of detail never seen before".
The UQ researchers are collaborating closely with CSIRO, OGIA and the CSG Compliance Unit to ensure that research findings are made publicly available as quickly as possible.
Jim's research publications can be found at: http://researchers.uq.edu.au/researcher/8868
[my yellow highlighting]

Friday, 9 February 2018

Falling biodiversity, degradation of productive rural land, intensification of coastal & city development, and the threat of climate change require Australia to produce blueprint for a new generation of environment laws


“The next generation of environmental laws will need to recognise explicitly the role of humanity as a trustee of the environment and its common resources, requiring both care and engagement on behalf of future generations.”  [APEEL, Blueprint for the Next Generation of Environmental Law, August 2017]

The Guardian, 6 February 2018:
Environmental lawyers and academics have called for a comprehensive rethink on how Australia's natural landscapes are protected, warning that short-term politics is infecting decision-making and suggesting that the public be given a greater say on development plans.
The Australian Panel of Experts on Environmental Law has launched a blueprint for a new generation of environment laws and the creation of independent agencies with the power and authority to ensure they are enforced. The panel of 14 senior legal figures says this is motivated by the need to systematically address ecological challenges including falling biodiversity, the degradation of productive rural land, the intensification of coastal and city development and the threat of climate change.
Murray Wilcox QC, a former federal court judge, said the blueprint was a serious attempt to improve a system that was shutting the public out of the decision-making process and failing to properly assess the impact of large-scale development proposals.
"We found the standard of management of the environment is poor because everything is made into a political issue," Wilcox said. "Nothing happens until it becomes desperate.
"We need a non-political body of significant prestige to report on what is happening and have the discretion to act."
The legal review, developed over several years and quietly released in 2017, resulted in 57 recommendations. It was suggested by the Places You Love alliance, a collection of about 40 environmental groups that was created to counter a failed bid to set up a "one-stop shop" for environmental approvals by leaving it to the states. The panel undertook the work on the understanding it would be independent and not a piece of activism.
Review report can be found here.

Tuesday, 16 January 2018

Forecasting a dangerous present and devastating future for Australia



“Background warming associated with anthropogenic climate change has seen Australian annual mean temperature increase by approximately 1.1 °C since 1910. Most of this warming has occurred since 1950.” [Australian Bureau of Meteorology, Annual Climate Statement 2017]

Bloomberg, 10 January 2018:

The road-melting heatwave that made Sydney the hottest place on Earth at the weekend may just be a taste of things to come. 

Temperatures in Australia are set to rise until around 2050 due to greenhouse gas emissions already in the atmosphere, according to the country’s weather bureau

“Australia is one country where you really can see the signal of global warming,” Karl Braganza, the Bureau of Meteorology’s head of climate monitoring, told reporters on a call. “We’ve locked the degree of warming in until mid-century and that means it’s likely that one of the next strong El Nino events in the coming decade or two will set a new record.”

Western Sydney touched 47.3 degrees Celsius (117 degrees Fahrenheit) on Sunday and 2017 was Australia’s third-hottest year on record. Heat and drought risk devastating crops in Australia, the world’s third-largest exporter of cotton where farm production is forecast to be worth A$59 billion ($46 billion) this financial year.

The Heat is On
Australia has had just one cooler-than-average year since 2005
Since 2005, Australia has notched up seven of its 10 warmest years, the weather bureau said in its annual climate statement.

More heatwaves could stress a power grid that’s struggled to cope with demand as people crank up air-conditioning during the scorching summer months.

Australian Bureau of Meteorology Annual Climate Statement 2017, issued January 2018.

Visible impacts in 2018.................

The Guardian, 9 January 2018:

More than 400 animals have died in one colony alone as temperatures soar above 47C, causing exhaustion and dehydration

Mounds of dead flying foxes in Campbelltown suburb of Sydney, Australia. Photograph: Facebook/Help Save the Wildlife and Bushlands in Campbelltown

Wednesday, 13 December 2017

Tony Windsor on fighting the Santos pipeline


They were there in an attempt to survey a pipeline to convey coal seam gas from gas giant Santos’s proposed Narrabri gas field. As one landholder, David Chadwick, said: the pipeline was the “head of the snake” and if allowed to proceed would provide the infrastructure to convey the gas to Sydney or internationally and provide the political pressure to develop about 850 gas wells near Narrabri, with a view to hundreds more across the Liverpool Plains and associated areas.” [Tony Windsor, former  independent member for the federal seat of New England]

The Saturday Paper, 9-15 December 2017:

Last week I was working with my son Andrew on our farm 25 kilometres north of Coonamble when he received a message that there were trespassers on the neighbouring farm. A digital alert system had been put in place for such an event.

Within minutes, farm vehicles from all the neighbours converged on the scene. Others moved in on the trespassers from the eastern side and in a pincer movement the trespassers became trapped and unable to gain access to their vehicles.

By this time, about 100 agitated and concerned farmers, their employees and families were there to express their disgust at what had just occurred. The police had also arrived.
It was ascertained that these trespassers were not your everyday illegal pig hunters or bushwalkers. But they were no less illegal and in breach of the law.

These trespassers were eventually allowed to leave after the police took their details. They proceeded to another small town called Warren, more than 100 kilometres away, where they were observed acting strangely.

The next day, they were followed on the ground by vehicle and in the air by aircraft and again they invaded private lands without appropriate authority and were hunted off. They returned to Coonamble to complain to police about being harassed, and then they left the district.

The trespassers were dressed in new clothes, trying to look like ecological scientists but without any identification. They had a security officer with them.

The question is why? Why would these people climb over a gate to gain access to the property when on that gate was a sign warning about biosecurity, with the farmer’s mobile phone number on the sign? Why wasn’t contact made? Why were they behaving like this?

It has often been said there will be wars over water. In its own way, the scene I was watching was a skirmish in what has the potential to become a war and rewrite the politics of water, land use and energy in this country. It was also an insight into how threatened the farm community felt and demonstrated how it would be difficult to fight these farmers’ guerilla tactics. It was a warning they were serious players.

It also occurred to me that most people in our major cities would not necessarily understand why a small community would mobilise itself so quickly at an apparent breach of their rights.

This article is an attempt to explain some of the detail and policy clashes that will evolve over the coming year, on the Liverpool Plains, on the plain country west of the Pilliga, and around the Adani coalmine in Queensland.

Read the full article here.

Thursday, 9 November 2017

ICAC investigating water theft and allegations of NSW government corruption involving party donors


Eventually full details of this investigation will become public, as it cannot seriously be thought to be in the public interest for the NSW Independent Commission Against Corruption (ICAC) not to publish findings.

The Australian, 27 October 2017:

ICAC has begun a preliminary ­investigation into whether NSW public officials favoured Nationals donor and irrigator Peter ­Harris by not prosecuting him over ­alleged water theft.

The Independent Commission Against Corruption is also investigating whether public officials made decisions in favour of western NSW irrigator and lobbyist Ian Cole by changing water sharing arrangements to benefit him.

A day after The Australian ­revealed that the corruption watchdog was investigating a case where Multicultural Affairs Minister Ray Williams wrote to ­Primary Industries Minister Niall Blair asking for prosecutorial ­action against constituent Garry Bugeja to be dropped, it has emerged that the NSW government is facing a ­series of inquiries over its water policies.

The Berejiklian government is facing the real spectre of a public ICAC inquiry potentially involving the two ministers and at least one former primary industries minister, Katrina Hodgkinson, just months out from the 2019 state election.

ICAC is investigating whether former deputy director-general of the Department of Primary ­Industry Gavin Hanlon disclosed confidential information to ­Barwon-Darling irrigators, allegations that have been the subject of a government inquiry and led to Mr Hanlon’s resignation.

The commission is also understood to be looking at whether any public official failed to properly investigate or prosecute Mr Harris, a cotton farmer from Moree, in northern NSW. ICAC is also understood to be investigating why the department’s strategic investigations unit was disbanded, leading to the abandonment of several water compliance operations.
There is also an investigation into whether any public official acted inappropriately in making changes to the Barwon-Darling Water Sharing Plan to benefit ­irrigator Mr Cole.

Another line of investigation is understood to be whether any person improperly gave access to departmental files and confidential material for the benefit of Mr Harris. Investigations into Mr Cole are understood to also involve whether pumps were attached to a property and were authorised by the department in breach of water laws…..

It was revealed earlier this year that Mr Blair sought law changes which may have benefited Mr Harris by retrospectively approving water-trading rights granted to him that appeared to not comply with the law. But Environment Minister Gabrielle Upton blocked the changes.

Mr Blair also legislated to allow past illegal works to be retrospectively approved — another piece of law which may have helped Mr Harris….

Mr Bugeja was not prosecuted for an alleged ­illegal dam in Sydney after Mr Williams wrote to Mr Blair

Friday, 27 October 2017

Are the NSW Berejiklian Government & local Nationals preparing to trash the Clarence River Estuary?


If there’s one thing the NSW Nationals can be relied on to do it is to run with any short-sighted idea which involves the threat of environmental degradation and risk to regional water catchments.

Here we have them joining the Liberals in touting what appears to be a deal done in Sydney (with no genuine local community consultation) to bring international cruise ships into the environmentally sensitive Clarence River estuary – an act which would require a significant degree of initial and ongoing dredging to maintain access, with perhaps the partial dismantling of one of the internal training walls which were built to direct flood water flows.
Even cruise operators with smaller vessels will demand a guarantee of risk free access and some form of terminal – demands which would see existing local tourism along with commercial and recreational fishing disrupted and perhaps diminished.
It seems that Nationals MP for Clarence Chris Gulaptis has all but forgotten that just last year he was not in favour of the last attempt to co-opt the Lower Clarence River for the personal gain of outside financial interests.
Perhaps he needs reminding that ships that meet his specifications such as this one pictured below would still require estuary modification and shoreline development which is also unlikely to tick any of the social or environmental boxes he once thought important.
As the average small cruise ship would exceed length overall LOA 30 metres they would all require compulsory pilotage to and from the river entrance to their berth.

Local residents are aware that Mr. Gulaptis has been lobbying Clarence Valley Council on the matter of cruise ships having access to and use of the river estuary. Perhaps he might like to inform us all exactly on whose behalf he has been doing this lobbying? And declare if he is receiving some form of consideration or financial benefit from such lobbying?
The Daily Examiner, 25 October 2017:

THE FIRST cruise ship that could test the Port of Yamba's passenger facilities could arrive before the end of the year, says Member for Clarence Chris Gulaptis.

"I've heard there could be a cruise ship coming this year,” Mr Gulaptis said.

But he was unsure of the any details of the size or type of vessel that could be coming.

Mr Gulaptis was with the NSW Minister for Roads, Maritime and Freight, Melinda Pavey, and Minister for Transport and Infrastructure, Andrew Constance, yesterday when they announced Yamba and Coffs Harbour were being considered as potential international cruise ship terminals for the NSW Mid North Coast.

Mrs Pavey announced the start of investigations as part of the launch of the government's Future Transport 2056 strategy.

"This is a major step, with the need for a facility being recognised in the 10 to 20-year horizon, so early investigations can begin now,” Mrs Pavey said.

The new facility has the potential to link in with North Coast tourist hotspots and part of the process will look at how to integrate the proposed port with the wider area.

"The cruise industry is booming and is set to get bigger in coming years.

"A cruise terminal would give the region a share of that industry,” Mr Constance said.

Despite the minister's optimism, Mr Gulaptis said there were lot of obstacles to overcome.

"Just where passengers would embark and disembark is not known,” he said.

"Goodwood Island could handle the size of the vessels, but its facilities have been used for live cattle exports and it's well away from Yamba.

"The only other place I can think of is at the marina on the other side of the wall, where the fishing boats moor.”

He said any use of the river would need approval of its owners, the Yaegl People, and the ships could not impact the Dirrangun reef, which was sacred to them.

He said the vessels would be much smaller than the big cruise liners.

"I think the maximum draught at Yamba is about five metres, so that should limit the size of the vessels to no bigger than 5000 tonnes,” he said.

The prospect of cruising liners coming to Yamba alarmed environmentalists such as Iluka's Ian Gaillard, who was a vocal opponent of a proposal that emerged last year to build a megaport in the Clarence Estuary.

He said people may think cruise liners coming to Yamba could represent progress, but in reality, it would be a retrograde step.

"Cruise ships bring with them some of the worst excesses of modern life,” he said.

”The danger for the local populace is that once these things are established, they change the amenity of the place forever.”

NSW Minister for Roads, Maritime and Freight Melinda Pavey is obviously confident that she and her cronies will be able to expand Port of Yamba by stealth.

Perhaps someone should remind her that Northern Rivers communities tend to jealously guard the existing aesthetic, environmental, cultural, social and economic values of their waterways and lands.

Like Chris Gulaptis, last year Cr. Jim Simmons was mindful of the environmental and cultural issues associated with dredging the entrance to the river and estuary.

Look at him now..... 

Clarence Valley’s new mayor Jim Simmons was quick to jump on board the idea to support Yamba and Grafton's tourist credentials. “Oh yeh, we’d give it  a go at Grafton.  We’ve got the best beaches up here and I think Coffs Harbour has had its fair share of things and it’s time other places got a go,” he says.

Tuesday, 3 October 2017

Surge in water consumption prompts call from Clarence Valley Council for people to be careful with their water use


Clarence Valley Council, media release, 27 September 2017:

Clarence residents urged to be water wise

A surge in water consumption has prompted a call from the Clarence Valley Council for people to be careful with their water use.

The council’s general manager, Ashley Lindsay, said figures for the same date for each of the past four years showed how much water people were using this Spring.

“On September 25, 2014, we consumed 12 megalitres,“ he said.

“On September 25, 2015 we used 14 megalitres, on that date in 2016 we used 15 megalitres, but on September 25 this year – Monday – we used 25 megalitres.

“That is more than double the consumption we had in 2014.

“All we are asking is for people to be mindful of their consumption. Our field staff has noticed a lot of residential properties where sprinklers are being used during the day, contrary to the permanent level one water conservation measures we have in place.

“We’ve printed a notice that is being dropped into letterboxes of the residences involved.”

Level one water restrictions are:

# Residential gardens - Fixed hoses and sprinklers are BANNED between 9am and 4pm. No
restriction on hand-held hoses or water efficient micro sprinklers.

# Car washing - No restriction. Do not leave hose running, consider using a trigger nozzle
.
# Washing of driveways and paved areas - No restriction. Sweeping and other dry methods are
encouraged. If a hose is required, please use a pressure cleaner.

# Swimming pools - No restriction. Consider a cover to reduce evaporation and minimal topping
up.

# All sports grounds (including public parks and gardens, school grounds), commercial
operations, industry, nurseries, orchards etc. - No restriction. Reduce evaporation by avoiding
watering in the heat or middle of the day and on windy days.

# All other essential water use associated with commercial and industry operations - No
restriction. Businesses should follow water-efficient practices and minimise water use, respecting
the restrictions that apply to the general community, as outlined above.

Copy of a card being dropped into the letterboxes of residents who have been using sprinklers outside of the recommended times.

Friday, 29 September 2017

WA company with Chinese & UK backing announces a desire to mine near, extract water from and potentially pollute Clarence River catchment waters



The Daily Examiner, 29 September 2017, p.1:

JUST 35km north-west of Grafton is a block of private land with the potential to change the face of Clarence Valley’s industry as we know it.

Mt Gilmore, which lies between Fine Flower and The Gorge, has been revealed to be home to several deposits of high-grade cobalt.

Now Western Australia-based company Corazon Mining is trying to work out just how big that deposit is, and whether it’s worth mining.

On June 16 2016, Corazon announced it had secured the right to earn up to 80% of the Mount Gilmore Cobalt-Copper-Gold Project from private company Providence Gold and Minerals Pty Ltd.

Their project tenure included one granted Exploration Licence covering an area of approximately 25km by 15km, and over the past couple of months they have been drilling to in an effort to find precious metals.

Corazon managing director Brett Smith said so far, things were looking good.

“We’ve been saying that this is one of the highest- grade cobalt deposits in Australia, we just don’t know how big it is,” he said. “There was a lot of gold and copper prospecting there back in the late 1800s, early 1900s, and so it’s amazing where it’s located how little modern exploration has gone on there.”

The reason they have their eye on cobalt, rather than gold or copper, is that the element’s value has risen exponentially in recent years due to its use in lithium-ion batteries.

Mr Smith said demand from the battery sector had tripled in the past five years and was projected to double again by 2020.

It is most commonly used in smartphones, laptops, and electric vehicles.

“Cobalt is the most expensive raw material used for building lithium-ion batteries, paying about $61,000 per tonne,” Mr Smith said.

“A lot of people have been exploring for cobalt in NSW but are looking at oxide deposits. Ours is a bit different in that it’s a sulphide deposit, and they are fairly rare to be cobalt dominant.

“It’s all in vogue at the moment so we’re pretty hopeful this can be used to produce cobalt salts for batteries.”

Mr Smith said the company was currently on its second drill program, which they hoped could be used to accurately determine the lay of the land.’

Exactly what mining exploration licence is this newspaper article talking about?

Well according to NSW Planning & Environment on 1 September 2017 it is  EL8379 granted to Mt Gilmore Resources Pty Ltd on 23 June 2015.

So who is Corazon  Mining Limited?

The company’s 2016-17 Annual Report states:

Corazon Mining Limited (ASX: CZN) (“the Company” or “Corazon”) is an Australian based company exploring and developing the Lynn Lake Nickel-Copper-Sulphide project in Canada and Mt Gilmore Cobalt-Copper-Gold project in Australia.

It has three main exploration projects -  the Lynn Lake and  Victory projects both in Manitoba Canada and the Mt Gilmore Project in NSW Australia.

This is the corporations current Board of Directors:

Clive Jones, Non-Executive Chairman - 4,235,330 fully paid ordinary shares, 5,000,000 options exercisable at $0.035 expiring 31 March 2020, total annual remuneration $154,607
Brett Smith, Executive Managing Director - 7,107,131 fully paid ordinary shares, 10,000,000 options exercisable at $0.035 expiring 31 March 2020, total annual remuneration $417,250
Adrian Byass, Non-Executive Director - 9,357,370 fully paid ordinary shares, 7,000,000 options exercisable at $0.035 expiring 31 March 2020, total annual remuneration $144,600
Jonathan Downes, Non-Executive Director - 11,154,512 fully paid Ordinary Shares, 5,000,000 options exercisable at $0.035 expiring 31 March 2020, total annual remuneration $190,557
Mark Qiu, Non-Executive Director (appointed 18 August 2017) - 1,269,300 fully paid ordinary shares, total annual remuneration unknown
Robert Orr is company secretary and Chief Financial Officer, shareholding unknown, total annual remuneration $114,360.

The last annual report indicated that the company share structure comprised 1,039,283,317 fully paid ordinary shares held by 2,135 individual shareholders and, 60,000,000 unquoted options are held by 10 individual option holders.


The largest options holders are Brett Smith with 10 million held and Zenix Nominees Pty Ltd with 20 million held.

On 1 December 2016 the Company announced the issue of 3,410,840 shares to key management personnel in lieu of cash-based salary. This strategy was implemented in order to conserve cash reserves for operational expenditure.

Corazon Mining appears to be operating at a loss and apparently paid no tax in 2016-17.

Corazon Mining Limited’s Purchase Agreement for the Mt Gilmore Cobalt-Copper-Gold joint venture project:

Under the terms of the agreement with Providence and subject to Corazon completing due diligence to its sole satisfaction on or before 30 June 2016, Corazon has the exclusive right to earn up to an 80% interest in the Project as follows:

Corazon can earn an initial 51% interest by:
* Issuing Providence 25 million Corazon Mining Limited shares
* Paying cash reimbursements of costs totalling $100,000
* Spending $200,000 on exploration within the first 12 months from the date of satisfaction of all conditions precedent (“Commencement Date).

Corazon can earn a further 29% interest (totalling 80%) by:
* Completing $2M  in exploration within 3 years of the Commencement Date
* Paying $150,000 in cash or shares upon the earlier of the commencement of the third year and Corazon spending a minimum of $500,000 on exploration
* Paying $250,000 in cash or shares upon earning 80% equity in the Project.

Corazon has the opportunity to extend this earn-in period by one year by paying $50,000 in cash or shares.

According to Corazon Mining;

The Project is located only 35km from the major centre of Grafton in north-eastern New South Wales. Project tenure includes one granted Exploration Licence (EL8379 – one year old), covering an area of approximately 25km by 15km……

On 22 August 2017 the Company issued 139,856,665 fully paid ordinary shares at an issue price of $0.014. The share issue was comprised of:
- an issue of 120,000,000 shares to Hanking Australia Investments Pty Ltd under a Subscription Agreement for a $1,680,000 investment in the Company;
- an issue of 7,356,665 to sophisticated investors to raise $102,993; and
- an issue of 12,500,000 shares to Providence Gold and Minerals Pty Ltd pursuant to the Company’s Earn-in Agreement with Providence in respect of the Mt Gilmore Project. Under this Agreement, Corazon has the exclusive right to earn up to an 80% interest in the Project. The shares have a total valuation of $175,000.

On the same date, the Company also issued 85,000,000 options to Hanking Australia Investments Pty Ltd following their investment in the Company. The options were issued with an exercise price of $0.03 and an expiry of 22 August 2019.

On 18 August 2017, Dr Mark Qiu of Hanking Australia Investments Pty Ltd was appointed to the Company’s Board of Directors.

China Hanking Holdings Limited, registered in the Cayman Islands and listed on the Hong Kong Stock Exchange, is the parent company of Hanking Australia Investments Pty Ltd.

The second largest shareholder in Corazon Mining Limited is Crescent Nominees Limited, a private equity firm registered in Northern Ireland since 2014 and owned by venture capitalist Crescent Capital NI Limited.

As part of NSW Minerals Week Corazon Mining Limited had a booth at the 14th Sydney Resources Round-Up in May 2017 where interested geologists could view their sulphide core from the 2016 Cobalt Ridge drilling program. 

Area in which the proposed cobalt mine would be situated

Satellite image of Mount Gilmore (height 372m) situated just above the Clarence River system at The Gorge

It doesn’t take a genius to look at this image and see the potential for heavy rain episodes over Mt. Gilmore leading to surface water runoff into Clarence River tributaries.

So the first question is; what happens if Corozon Mining was granted a mining licence by the NSW Berejiklian Coalition Government and one or more of its heavy metal contaminated holding ponds were breached during such a rain period? The potential exists for any such breaches to result in long-term contamination of surrounding soils and water courses, as well as higher sediment levels in surface waters.

Heavy metal and metalloid concentrations within stream-estuary sediments already occur naturally in NSW north-eastern coastal rivers and current Clarence River levels are also the result of historic mining in the upper catchment below the Dorrigo Plateau region.

This leads to a second question. Can a river system, which supplies drinking water to est.126,008 residents (Census 2016) along with water to farmers, graziers and commercial fishers in the Clarence Valley and Coffs Harbour City local government areas, safely tolerate higher heavy metal and metalloid concentrations in that water? Communities relying on the Clarence river system might not be happy with the thought of any increase in localised or overall toxicity.

Given that mining is a thirsty business and water used in its extractive processes has to come from nearby surface/groundwater sources, there is a third question which immediately springs to mind. In the face of increasing impacts from climate change can we afford to have the environmental water flow in the Clarence River system compromised further?

Then there is the question of required associated infrastructure, including transport of ore via trucks and rail – need I say more?

One has to wonder when Clarence Valley Council was going to mention this proposed mining activity to residents and ratepayers because it is highly likely that this mining company or someone acting on its behalf has approached either the Mayor or council administration.