Environment Performance

One environmental non- compliance was recorded at QFO in 2004 - an improvement on the two Level 1 environmental non-compliances recorded in 2003. View 2004 environmental non-compliance incidents for QFO.

Resources Use

Water

Management of water resources is a significant issue in the arid environment of North West Queensland. At QFO's Phosphate Hill operations, water is pumped from a local aquifer that is contained by the same geological formation that underlies the phosphate ore being mined.

In September 2004, Phosphate Hill commenced a mine dewatering program in order to access and mine the deeper phosphate ore deposits. For the next four years, water will be pumped from bores at a rate of approximately 11,000 Megalitres per annum, almost twice the rate required to meet the operations water consumption demand. Excess water is discharged into nearby Kolar Creek, a dry sandy streambed which normally only flows after heavy seasonal rains.

Water consumption at Phosphate Hill's operations during 2004 was 5,200 Megalitres, with an estimated additional 1,214 Megalitres from mine dewatering was discharged into Kolar Creek.

Water consumption at the WMC fertilizer's acid plant at Mt Isa is drawn from the town supply, that is drawn from Lake Moondarra. Water consumption during 2004 was 1,890 Megalitres, down slightly from 2003 in line with changes in water conservation measures and production.

Land Management and Biodiversity

The mining lease (13,500 ha) sits amid the Chatsworth Station which is grazed extensively by cattle. Tree cover is limited to sparse open fringing woodland along the small water courses and scattered trees generally reflecting drainage lines or other low lying areas.

The process plant site is located adjacent to and west of the railway line from Duchess to Phosphate Hill. The site is in a tributary catchment to the Burke River. The site is isolated and is on generally flat terrain that was significantly altered by past grazing and mining activities. The site was initially evaluated for the significance of the existing flora and fauna. The findings were:

• Flora surveys indicated no significant conservation value for the flora of the site;
• Fauna surveys did not identify any fauna of conservation significance although the area may be visited by an avifauna or reptiles of conservation significance.

There was no loss of agricultural land or soils due to the operation. The area in general has limited grazing value except those areas of black soils plains where grey-brown heavy clays with Mitchell grass are dominant.

Purple-necked Rock Wallaby

An annual monitoring survey is performed on the Purple Necked Rock Wallaby following the 2001 baseline survey when they were found. Eight sites were monitored over a two week period for individual sightings and the presence of scats. The 2004 monitoring was performed in September with Rock Wallabies found on all the sites from 2003.

Rock Wallaby populations around Australia have decreased due to predation by introduced predators such as cats and foxes. Fortunately foxes have not been found in the Phosphate Hill area. This is believed to be one of the reasons for the healthy population of Rock Wallabies at Phosphate Hill. Rock Wallaby numbers have increased on one of the satellite outcrops and their strong numbers have been maintained throughout the area.

Vegetation Monitoring

The quarterly sampling for fluoride in the vegetation surrounding Phosphate Hill continued to develop the knowledge of how seasonal variation impacts on the level on fluoride contained in the leaf matter. Fluoride concentrations have decreased over the past two years. Fluoride concentrations have been found to oscillate with seasonal rainfall, decreasing during wet seasons and increasing again during the dry season.

Annual bird monitoring

Bird monitoring is performed on a weekly basis at the Phosphate Hill site. Each week the water bodies around site are monitored for bird species to determine which species the Gypsum stacks may impact on. It also allows for listed species to be identified if they migrate to our region.

In 2004, 53 different species were identified however no listed species were found.. A total of approximately 2340 sightings were recorded during 2004. The most abundant species were the Grey Teal and the Hardhead, both common duck species. Other significant species were the Plumed Whistling Duck, Australasian Grebe and the Black Winged Stilt.

A total of eight bird deaths occurred on the Gypsum Stacks at Phosphate Hill this year. This is 0.35% of the 2340 bird sightings at Phosphate Hill in 2004 and a reduction from the 12 bird deaths that occurred in 2003.

Feral animals - pigs and cats, red crabs

At Phosphate Hill predator abundance monitoring consisting of track transects and spotlighting is performed on a quarterly basis. During 2004, 28 spotlighting nights and 169 track transect nights were conducted. Track transects found a total of 23 dog tracks and 4 cat tracks. Spotlighting conducted found 14 pigs, 4 dogs and 3 rabbits, however no cats were found during the spotlighting.

In November 2004 a professional pig trapper reinitiated a pig trapping program at Phosphate Hill to remove the pigs from the area. This is in conjunction with the dewatering project to minimise the harm that the feral pigs can cause to the creek ecology. If an increase in other feral animals is found, similar steps will be taken.

Also, as part of the creek dewatering requirements, a redclaw (an introduced crayfish species) trapping program was performed in the ‘turkeys nest’. A total of 60 trap nights were conducted with no redclaw found. However, four Cherax destructor, a native freshwater crustacean were found.

Rehabilitation trails - waste rock dumps

Rehabilitation monitoring was performed in April and October 2004. Monitoring of both the 2001 and 2002 rehabilitation trials was performed. The maturity of the species has increased with significantly higher numbers of mature Acacia species. Mirroring the increase in maturity, the groundcover has also increased, averaging 25% cover on the slopes of the waste rock dumps. Sites have shown that species diversity has not altered since the 2003 monitoring results, but is significantly higher than 2002. Average species diversity on all sites averaged 13 different species being present, however this peaked at 20 different species as a result of seasonal variation.

Air Emissions

Carbon Dioxide

Carbon dioxide (CO₂), a common greenhouse gas, is emitted at QFO as, a by product in the production of ammonia from natural gas, as a by-product from the combustion of natural gas for electricity, and from diesel fuel usage by vehicles, mining equipment and rail. The ammonia plant, responsible for the production of ammonia required in the manufacture of ammonium phosphate fertilizers, uses the reaction between natural gas, air and steam. The CO₂ emitted in this process is the largest contributor to the total emissions from QFO.

During 2004 approximately 63,7000 tonnes CO₂ equivalent was emitted. This is less than was emitted during 2003 due to the decrease in fertilizer production for 2004.

Sulphur Dioxide

Since it was first installed in 1999, QFO Acid Plant at Mt Isa has been collecting sulphur dioxide gas emissions from the nearby copper smelter, and converting the atmospheric pollutant into sulphuric acid, an essential ingredient in the production of ammonium phosphate fertilizers.

The sulphuric acid plant was designed to capture approximately 80% of the sulphur dioxide emissions from Xstrata's copper processing and smelting operations which are collected, cleaned and piped to the sulphuric acid plant adjacent to the copper smelter. Here, the gas is cleaned and converted into sulphuric acid with a conversion efficiency of better than 95%.

Efficiency targets relating to the percentage of sulphur dioxide recovery are set annually, based on plant performance and improvements. This quantifies the overall recovery of SO₂ relative to the total quantity of SO₂ available for recovery. In 2004, we achieved 77% recovery of sulphur dioxide which is below our target of 82%. This was due to two unplanned acid plant outages occurring during the year where the plant was not available to capture the smelter emissions. Despite the lower than anticipated recovery, the operation of the acid plant resulted in the capture of approximately 427,000 tonnes of sulphur dioxide.

The overall target capture of available SO₂ emissions in 2005 is 87%. The higher recovery rate should be possible as a result of improved coordination of operations and maintenance activities at the acid plant and the copper smelter, linked with improved operational and mechanical performance. Where possible, maintenance work is being scheduled to coincide with plant shut downs required to ensure air quality objectives are met during adverse weather conditions.

Fluoride emissions

Fluorides, and in particular Hydrogen Fluoride vapours, are emitted to atmosphere from the granulation stacks, the phosphoric acid plant and the gypsum stacks at Phosphate Hill. Fluoride emissions can potentially impact vegetation, and can be ingested by grazing cattle and native animals.

Since 2000, we have had a vegetation monitoring program in place to assess the uptake of fluoride by grasses, trees and shrubs. The program involves taking vegetation samples at 36 locations around the plant and the gypsum stacks. Grass samples are taken up to 4 kilometres from the operations. We also monitor ambient fluoride levels around the plant using a high-volume air sampler and passive samplers developed by the CSIRO.

A key feature of our fluoride monitoring program over the last two years has been the assessment of the effects of fluoride exposure on cattle grazing in paddocks close to the lease boundary. The program involves assessing cattle tooth condition and taking a bone biopsy from the tails of test cattle. Results from the 2004 tests have confirmed last year's results in which the bone biopsy showed some evidence of fluoride accumulation, while minimal fluoride exposure was evident from the tooth assessment. Fluoride accumulation has the potential to impact on the cattle's health not on the meat. All 350 cattle assessed as part of this monitoring program have been described as being in good health and condition. The results of the bone biopsy are not considered to be a cause for concern and are not expected to require any material change to grazing practices.

Waste Management

Gypsum Storage

Gypsum storage is a major issue, as QFO produce almost three tonnes of gypsum for every tonne of fertilizer. Options for re-use of this product have not been identified, therefore gypsum is stored as a waste product in stacks with broad flat-top elevations and sloping sides. A rehabilitation scoping study was developed in 2004 and it is expected that rehabilitation trials will commence in 2005.

We continue to identify and evaluate potential reuse options for gypsum produced at Phosphate Hill, if the opportunity arises in the future.

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