Hazard Audit Report for Evolution Mining, Cowal …

1 Hazard Audit Report FOR Evolution mining PTY LIMITED, Cowal GOLD OPERATIONS, NSW Prepared by: Dean Shewring 5 June 2016 Approved By: Jason Greive General Manager Cowal Gold Operations Evolution mining Pinnacle Risk Management Pty Limited ABN 83 098 666 703 PO Box 5024 Elanora Heights NSW Australia 2101 Telephone: (02) 9913 7284 Facsimile: (02) 9913 7930 Pinnacle Risk Management Evolution Hazard Audit Report Rev 5 June 2016 Acknowledgment The author would like to thank the Evolution mining ( Cowal ) Pty Limited staff who were involved with the Hazard Audit for their willingness to participate.

2 Disclaimer This Report was prepared by Pinnacle Risk Management Pty Limited (Pinnacle Risk Management) as an account of work for Evolution mining ( Evolution ). The material in it reflects Pinnacle Risk Management s best judgement in the light of the information available to it at the time of preparation. However, as Pinnacle Risk Management cannot control the conditions under which this Report may be used, Pinnacle Risk Management will not be responsible for damages of any nature resulting from use of or reliance upon this Report .

3 Pinnacle Risk Management s responsibility for advice given is subject to the terms of engagement with Evolution . Hazard Audit Report for Evolution mining , Cowal Gold Project Rev Date Description Reviewed By A 20/5/16 Draft for Comment Evolution B 5/6/16 Final Issue Evolution Pinnacle Risk Management Evolution Hazard Audit Report Rev 5 June 2016 CONTENTS EXECUTIVE SUMMARY .. I GLOSSARY .. IV 1 INTRODUCTION AND SCOPE OF Audit .. 1 Objectives, Requirements and Scope .. 1 Audit Objectives .. 1 Requirements of the Audit .

4 2 Scope of the Audit .. 2 Methodology .. 3 Basic Approach .. 3 Personnel Interviewed .. 4 Summary and Conclusions .. 4 2 SITE OVERVIEW .. 6 Site Location, Surrounding Land Uses and Layout .. 6 Process Description .. 11 Properties of Materials Being Handled / Processed .. 11 3 Hazard Audit OF PLANT OPERATIONS .. 13 Plant and Equipment .. 13 Loading and Unloading Operations .. 15 Storages .. 16 Process Control .. 18 Fire Safety .. 19 Environmental Protection .. 20 4 Hazard Audit OF MANAGEMENT SYSTEMS.

5 23 Plant Procedures, Records and Other Documentation .. 25 Pinnacle Risk Management Evolution Hazard Audit Report Rev 5 June 2016 Materials Handling .. 25 Operating Procedures .. 25 Maintenance Procedures, Permits, Testing and Records .. 26 Plant Modification .. 28 Operator Training .. 30 Emergency Planning .. 31 5 SITE HISTORY .. 33 Incident History .. 33 Previous Studies .. 34 6 REFERENCES .. 35 LIST OF FIGURES Figure 1 Site Location .. 7 Figure 2 Site Layout .. 8 Figure 3 Processing Plant Layout.

6 9 LIST OF TABLES Table 1 Summary of Materials .. 11 LIST OF APPENDICES Appendix 1 Department of Planning Approval Correspondence. Appendix 2 Selected Documents Obtained or Sighted. Appendix 3 Recommendations Implementation Program. Pinnacle Risk Management Evolution Hazard Audit Report Rev 5 June 2016 i EXECUTIVE SUMMARY This Report constitutes the fourth Hazard Audit that has been undertaken for the Evolution mining Cowal Gold Project, NSW. The Report is written in accordance with the Department of Planning s Hazard Audit Guidelines.

7 The scope of the Audit covers a critical examination of the systems and procedures, which exist in order to operate and maintain the facility for the purpose for which it was designed. This required a review of the Evolution documentation systems at the mine site and records of the mine s operational history since the previous Hazard Audit . The following points summarise the results of this Hazard Audit : As with previous Hazard audits, the personnel interviewed during this Audit showed an adequate appreciation of the hazards associated with the operations and knowledge of the control measures used to reduce the risk of a potential hazardous event; Personnel from all levels of management, operation and maintenance displayed a strong, committed approach to safety and environmental protection.

8 Procedures and documents have, generally, been kept up-to-date as well, the emergency response plan; There is a strong culture of incident reporting and performing work area inspections at the site; The processing plant has significant corrosion to structural steelwork including platforms. This is being addressed by an on-going maintenance programme and will require future significant effort to maintain the steelwork s integrity; There were leaks associated with the copper sulphate, xanthate and sodium metabisulphite reagents dosing systems observed during the Hazard Audit .

9 These need to be stopped to prevent personnel being exposed to these hazardous materials; and The recommendations made throughout this Hazard Audit Report are largely designed to further enhance the existing safety management system. The hazards associated with the facility have been previously identified and are included in various forms of the Evolution safety management system. Being a mining and processing site with explosive, corrosive, oxidising, radioactive, toxic, combustible and flammable materials, large machinery and large civil structures, tailings dams, there are a number of hazardous events associated with potential losses of containment or control leading to impact to Pinnacle Risk Management Evolution Hazard Audit Report Rev 5 June 2016 ii people, the environment, property and/or the business.

10 The hazards associated with the materials and processes were found to be well known and understood by the Evolution staff involved in the Audit . It is noted that the recommendations made throughout this Report are included in an implementation program to monitor improvement progress. This implementation program will require regular review and updating (of actions that have been completed). Also, it will need to be regularly issued to the Department of Planning until all recommendations are adequately addressed.