SustainabilityReport
2021
Shane Hansen CEO Kestrel Coal Resources In 2021, as the world emerged from the uncertainty surrounding the COVID-19 pandemic, Kestrel is proud to be able to report a strong operating and financial performance. Highlighted by truly satisfying improvements across all of our health and safety indicators, and enhanced by taking significant steps along our Environment, Social and Governance (ESG) journey.
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Kestrel achieved production targets exporting 5.6 Mt of high-quality coking coal to our diverse customer base. While this is a notable achievement, it is important to understand how Kestrel achieved this result, success that can not be measured simply in terms of productivity. For Kestrel to achieve ongoing success we also need to demonstrate continual improvement of our ESG performance and by doing so ensure our workforce, customers, environment, and communities have a sustainable future right beside us. At Kestrel we believe the growth of our people supports and sustains our business growth. In 2021 we continued to roll out strategies to maintain Kestrel as an employer of choice. This included the release of our Cultural Strategy for unleashing opportunity, along with further embedding our Code of Conduct, strengthening our commitment to providing a workplace that fosters mutual respect and honest working relationships. Kestrel’s values – We Are One, We Are Agile, We are Committed, We Are Respectful – have become embedded into our daily work routines, with the flow-on effects felt across all levels of operations. Our H&S results for 2021 strongly reflect this with all key health and safety indicators showing significant improvement. While this trend is encouraging, we never forget that each statistic represents an actual or potentially harmful situation. Kestrel’s goal is to ensure that all our people go home safely, every day, and we will continue to work to this goal in Responsible2022. land and water stewardship are the centre of Kestrel’s goal to leave a lasting positive legacy across our land holdings. Throughout the year, agricultural production continued to occur on the surface of the land, while we mined below. Flooding towards the end of 2021 resulted in Kestrel’s first controlled water releases since 2014, with water returned to the natural systems well within our stringent From the CEO legal compliance requirements. As an underground coal mine operating in Queensland, Kestrel is producing high quality coking coal with one of the smallest land and water footprints currently available anywhere in the Kestrelworld.isproud to continue our collaborative relationship with the Western Kangoulu people, ensuring the cultural heritage values of their traditional lands are protected and mining activities are managed in accordance with the jointly developed Cultural Heritage Investigation and Management Agreement. Kestrel was also instrumental in facilitating the launch of the Indigenous Business Development Hub in Emerald in September 2021, that highlighted the wide community and business support for developing Indigenous business opportunities in the region. We look forward to working with the Western Kangoulu people well into the future to achieve sustainable business opportunities. At Kestrel we are embarking on detailed assessments for a range of options to reduce our carbon footprint. We acknowledge a low emission future is a pre-requisite for operation, and we seek to utilise innovative technology opportunities to arm our fight against climate change, reduce carbon emissions and ensure a sustainable future for the next generation. As we look to the future, we have also commenced early feasibility studies to extend mining operations into one of our adjoining tenements, that would allow mining to continue well beyond the currently approved mine life. We are calling this opportunity Kestrel West, and further work will be completed on this project in the coming years. With a successful year behind us, and an exciting future ahead, I am extremely pleased to present Kestrel’s Sustainability Report for 2021.
2021 SUMMARY workingProduct5.6MtSaleableMined0.24tCO2-e/tCoalProduct13.7TRIFR(1,000,000hours)28% $ spent on local & regional FullDirect$112ksupplierscommunitysupport62%timeworkforcelivinglocally RawCultural$820kHeritageInvestment157lwaterusage per tonne of coal product RehabilitatedGender7.4%Diversity25.4MlTotalWaterReleased571haland certified 1,936ha Disturbancerehabilitationestablished60%todaterehabilitated 3KESTREL COAL RESOURCES
Kestrel Coal Resources acknowledges and pays respect to the Western Kangoulu people, as the registered native title claimants for the land, on which we operate. We pay our respects to Elders past, present and emerging.
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We proudly work in collaboration with the Western Kangoulu people under a voluntary Cultural Heritage Investigations and Management Agreement to achieve effective management that actively maintains, protects, and preserves heritage. Working together, our shared goal is to create meaningful, sustainable opportunities for Indigenous peoples through employment and business development.
Acknowledgement and Recognition of Country
Contents FROM THE CEO ............................................................................. 02 SUMMARY OVERVIEW............................................................... 03 ACKNOWLEDGEMENT AND RECOGNITION OF COUNTRY 04 CORPORATE GOVERNANCE .................................................... 06 Our Sustainability Approach ................................................ 09 Governance and Leadership ..................................................10 Human Rights 13 Information Integrity 13 Risk Management 14 Living with COVID-19 15 SOCIAL 16 Social – Health and Safety 17 Case Study – Kestrel Lifestyle Challenge .......................... 20 Social – People & Culture ...................................................... 21 Case Study – UNLEASHED................................................... 23 Social – Stakeholder Engagement ........................................24 Case Study – Kestrel Community Grants.......................... 26 Social – Indigenous Development ....................................... 27 Case Study – Indigenous business development hub "Make it Real" 28 ENVIRONMENT 29 Land Stewardship 30 Land Management - Heritage 32 Waste Management 33 Case Study – Kestrel West Feasibility 34 Water Stewardship 36 Climate Change and Carbon Management 38 IMPORTANT NOTICES AND DISCLAIMER This document has been prepared by Kestrel Coal Resources (ABN 98 624 245 325) (Kestrel) for informational purposes only. Kestrel has prepared this document based on information available to it at the time of preparation. The information contained in this document is general in nature & does not purport to be complete. The document does not contain an offer, solicitation, invitation to apply, recommendation or advice to buy, sell or hold any securities of Kestrel. This report has been prepared in accordance with the International Council on Mining and Metals (ICMM) Mining Principles. Metrics describing health, safety, environment, people and community related performance in a joint venture operation, from 1 January 2021 - 31 December 2021. This document may contain forward looking statements, including statements about plans, strategies and objectives of management; and anticipated productive lives of projects, mines and facilities; and climate change, other environmental and energy transition scenarios (which are potential scenarios and not forecasts). These forward looking statements are not guarantees, or predictions of future performance. Certain information contained in this document is based on information prepared by third parties. Kestrel has not prepared and is not responsible for this third party material and accordingly Kestrel does not make any representation or warranty that this third party material is accurate, complete or up to date. Kestrel accepts no obligation to correct or update this third party material and all persons relying on this information do so at their own risk. 5KESTREL COAL RESOURCES
Corporate Governance 6 SUSTAINABILITY REPORT 2021
Kestrel mines metallurgical coal from the German Creek coking coal seam, via the underground longwall mining method. A single longwall delivers Run-of-Mine (ROM) coal onto a 7km overland conveyor directly to the Coal Handling and Preparation Plant (CHPP) for washing, and then to our dedicated train loadout for delivery to Gladstone Port for international customers. We produce 8-10MT/yr of ROM coal at 75-80% yield. The coking coal produced at Kestrel is of high quality and is valued for its properties in steel production. We have a diverse customer base, across Asia and Europe, who recognise the quality of our product with long term contracts in place to ensure continuity of supply.
Kestrel Coal operates in Queensland’s Bowen Basin coalfield and is located 40km north of the vibrant town of Emerald. The majority of our workforce live in Emerald, with a small team working from Brisbane for finance, sales and marketing, strategy, planning and corporate leadership.
Kestrel Coal Resources is a private Australian company that is ultimately owned by EMR Capital and PT Adaro Energy. Kestrel Coal Resources is the 80% owner and manager of the Kestrel Coal Joint Venture, the remaining 20% being owned by Mitsui.
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01 BUSINESSETHICAL 02 MAKINGDECISION 03 RIGHTSHUMAN 04 MANAGEMENTRISK 05 ANDHEALTHSAFETY 06 PERFORMANCEENVIRONMENTAL 07 OFCONSERVATIONBIODIVERSITY 08 PRODUCTIONRESPONSIBLE 09 PERFORMANCESOCIAL 10 ENGAGEMENTSTAKEHOLDER 8 SUSTAINABILITY REPORT 2021 GOVERNANCECORPORATE
1. Recognising a clear need in both developed and developing societies for metallurgical coal to produce steel.
3. Ensuring business integrity and commercial viability.
Our Sustainability Approach
This Sustainability Report covers operations at the Kestrel Coal underground mine, located near Emerald in Central Queensland, and the Kestrel corporate office located in ThisBrisbane.sustainability report has been set out along ESG reporting lines, and broadly aligns to the following Sustainability frameworks: ICMM – Mining with Principles UN – Sustainable Development Goals
2. Inherent respect and specific action to protect and support our shared values around human rights, health and safety, cultural heritage, environment, community, climate action and economic prosperity.
4. Identifying and innovative management of risk, change and opportunity.
6. Seeking a beneficial legacy from our investment and operation.
Kestrel’s sustainability approach honours our past, present and future, as we look to contribute to our place in the world and operate a meaningful place of Kestrel’semployment.2021Sustainability Report highlights our journey of continual improvement to incorporate and refine Environment, Social and Governance (ESG) principles into business decisions across all levels of the operation, and to reflect this through our policies, procedures and daily actions towards a more sustainable future.
Kestrel’s sustainability approach is guided by:
5. Resource stewardship through minimised resource usage, focussed on maintaining quantity and protection of quality.
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Kestrel operates under the guidance of a full Board of Directors (the Board) with an Operating Sub-Committee (OpCo) that act as an advisory group to the Board. Our current Board consists of ten (10) Directors with equal representation across Adaro and EMR Capital.
Both the Board and the OpCo meet regularly to determine key business decisions, set corporate direction and ensure appropriate governance. Each Board meeting includes review of governance requirements, including compliance tracking and reporting, Whistleblower registry, audit outcomes, major decisions and setting corporate targets. Our Chief Executive Officer (CEO) reports to the Board and is responsible for delivering the sustainable performance of our business. Kestrel’s sustainability direction is determined by the CEO, approved by the Board, and documented through our Values, Code of Conduct, Sustainability Report and our Sustainability and Climate Change Policy.
In 2021 Kestrel continued to roll out our Code of Conduct (the Code) through interactive workshops held within the company. The Code outlines Kestrel’s commitment to providing a workplace that fosters mutual respect and honest working relationships. Everyone has the basic right to a fair and inclusive workplace, and the Code outlines the standard of behaviour expected by all persons who work for, or on behalf of, Kestrel.
The Code describes appropriate actions and processes to comply with relevant legislation and standards around: Anti-bribery and Corruption Human Rights and Modern Slavery Data Privacy Theft and Fraud Discrimination, Bullying and Harassment
Governance and Leadership
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All employees of Kestrel are required to sign onto the Code at the commencement of employment. Kestrel has distilled the Code into four (4) Values that both overarch and underpin all activities across KCR.
WE RESPECTFULARE We act with honesty, integrity & aim to be the team member everyone wants to work with. WEAGILEARE We approach our work through a different lens. we do it safely & get the results few others can. WE COMMITTEDARE Whether its safety, hitting our targets, caring for our people, community or environment, we’re committed to doing it right. WEONEARE We are a diverse group with varied skills working together as one team. 11KESTREL COAL RESOURCES GOVERNANCECORPORATE
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IntegrityInformation
Kestrel is a privately owned company but subject to public ownership materiality requirements and standards through our joint venture partners. We maintain a media and information release policy across our operations, including reporting our resources and reserves to JORC Code (2012 Edition) requirements and applying independent reviews to our planning models. The information contained in this report is sourced from all departments and at all levels across the operations. An information request is sent out to all areas of responsibility, and as information is provided, it is collated and analysed initially within the Sustainability team, and then sent back to the area leads for verification. An intensive internal review process is then undertaken to ensure all information that has been provided is accurate and defensible. Information specifically relating to National Pollutant Inventory (NPI) and greenhouse gas (GHG) emissions required under the National Greenhouse and Energy Report Act 2007 (NGER Act), are assurance checked via third party and/or internal processes.
Kestrel’s on-boarding process for new employees requires each individual to sign on to the Values, as well as a range of Policy and Procedure that provide specific details of living up to our Values, including: Code of Conduct Remuneration - showing Kestrel’s fair and open process for remuneration Indigenous Peoples and Heritage Fair work information sheet for relevant external contacts Leave provisions Modern Slavery position Kestrel’s first Modern Slavery Statement was completed in 2021 as required under the Commonwealth Modern Slavery Act 2018. The next statement is due in June 2022.
Human Rights
Kestrel adheres to all human rights legislation and enforces the highest standards of equality and fair play across all of our operations.
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Two of our Values relate to how the Kestrel team work together, and how we interact with others - We Are Respectful and We Are One.
Risk and opportunity management for Kestrel is to provide business resilience; protection from loss and sustainability of things we value, including people, community, stakeholders, environment, ongoing operation and business viability to Kestrel’sprosperity.riskmanagement is aligned to regulatory industry standards, and complies with health and safety standards legislated under the Queensland Coal Mining Safety and Health Act 1999, and associated regulations. However our risk management approach is so much broader than this, and incorporates aspects across all of our operations, focussing on health and safety, environment, compliance, cultural heritage, finance, changing context, business continuity, major projects, security and reputational risks. To ensure all risk categories across our operations are assessed for hazards, have appropriate controls and can minimise potential for adverse events, risk assessments are undertaken across five (5) levels within the company:
4. Job Hazard Analysis (JHA) –activity planned works 5. Take 5 – on the job checks undertaken by the teams prior to work commencing To maintain focus and ensure appropriate standards are maintained, independent audits are undertaken a number of times each year for specific priority health and safety performance areas, and at least once a year the overall effectiveness of the Safety Health Management System (SHMS) is independently audited and reported to the Kestrel Board.
1. Business Enterprise Risk 2. Operations Broad Brush Risk Assessment (BBRA)
3. Formal Risk Assessment – Workplace Risk Assessment and Control (WRAC)
Risk Management Principal & critical controls Social, enviro & cultural BusinessgovernanceContinuity Identification of operation risk Equipment & managementAllocationregistershealthtostructure Identification & control of hazards Principal & critical control plans Standard operating procedures Supervision, authority & permits Workplace & job inspection People trained & authorised in job Personalidentificationhazard Plan to work to safe conditions Task work & equipment team plan Safe processes & identificationTasktechniqueshazard&control GOVERNANCE & BUSINESS LEVEL RISK Materiality threshold at: Fatality Interruption for 7 days $10m cost OPERATION RISK Principal hazards (Coal Act) Critical hazards (single fatality) Compliance (enviro, stat) If events occur where business as usual does not apply – we use Trigger Action Response Plans (TARPs) Controls on practice Supervision & leadership in the field MateSafe CONTROL PLANS FOR SYSTEMS –BUSINESS AS USUAL Principal hazards (Coal Act) Critical hazards (single fatality) Compliance (enviro, stat) Key business processes REVIEW OF HAZARDS PRIOR TO WORKTEAMFOROFPLANNINGWORKSEQUENCEOFWORK Operation-wide broadbased risk(BBRA)assessment Workplace risk assessment & control (WRAC) Job hazard(JHA)analysis Take 5 Enterprise risk (BBRA, bowtie, SQRA 1 2 3 4 5 Set of critical controls Critical control check & assurance process SHMS effectiveness review Independent audits 14 SUSTAINABILITY REPORT 2021 GOVERNANCECORPORATE
There is also ongoing access to reliable information on Kestrel's SharePoint portal. While immunisations have allowed a reduction of COVID-19 controls, Kestrel’s systems and processes remain ready to respond to any change in the current situation. Kestrel maintained Rapid response leadership team meeting to address changing requirements Employee updates via written and social media avenues Provision of RAT testing and health professionals to assess and administer tests as required
Kestrel has further developed enterprise risk management mapping and systems such that enterprise level risks are now captured with appropriate actions and timeframes. Active Risk Manager is the software that has been implemented for Kestrel to track and ensure actions and timeframes are achieved. In 2021, Kestrel received one whistleblower report, investigated internally and resolved in accordance with legal requirements and to Kestrel’s acceptable behaviour codes. Kestrel maintained ‘Your voice matters’ - an independent Whistleblower hotline for anonymous reporting of any areas of potential concern. Kestrel has strict processes to manage all commercial transactions and maintains the highest level of internal financial checks and balances in order to prevent any form of fraud, bribery or Living with COVID-19 corruption taking place. These include delegation of authority, audits and supplier validity confirmations.
At Kestrel we aim to enhance our business continually. In 2021 cyber security processes were reviewed and improved and investigations commenced on Enterprise Resource Planning (ERP) software implementation, aimed to optimise our Duringperformance.2021Kestrel entered into a Memorandum of Understanding with POSCO, a leading global steel producer from South Korea, to establish the GEM Matching Fund for joint investment in community support projects in South Korea and Australia. The size of the GEM Matching Fund is 100,000 USD per year, with the funds during the first year planned to be used for forest restoration activities in South Korea. The fund is aimed at promoting activities that can continuously contribute to developing local communities beyond responsible supply chain management suppliers.
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Approach In 2021, managing Covid outbreaks and Government mandates had largely become business as usual. Through the year, Kestrel reacted with agility to adapt to changing requirements while ensuring there was no disruption to our operations. Our principles of personal health responsibility in social distancing and hygiene remains, whilst continuing key controls aligned with Federal and State guidelines to protect our people, our community and our business.
Outcomes for 2021:
Kestrel remains diligent and aware of COVID-19 transmission potential and controls to reduce COVID-19 risk for the health of all Kestrel families and community. The mining industry is identified as a critical business, with site classified as having a higher risk of transmission given the nature of work. Additional measures above community protections will continue to be implemented to provide supplementary risk control as required.
Additionally, in 2021 Kestrel joined the global fight against COVID-19 by donating $200k to the JSW Foundation & Tata Education and Development Trust, focused on mitigating COVID-19 related impacts within the communities of India. Both foundations pledged to aid COVID-19 relief efforts in India by providing on-ground isolation wards, support to communities with essentials, importation of ventilators and through advancement of teaching, learning, research and funding.
The year ahead In 2022, Kestrel proposes to: Review and update the Modern Slavery Statement Develop and roll out the Kestrel ESG Strategy Develop an enterprise compliance register Implement Enterprise Resource Planning (ERP) software Continue to work with POSCO contributing to the GEM matching fund Kestrel continues to provide COVID-19 updates via email and text to employees in response to changing conditions and updated information provided by the Queensland and Australian Governments, albeit on a reduced frequency as urgency of controls have been reduced in line with increased immunisation levels.
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The INX InControl System was reviewed and updated to reflect the critical control verifications that were developed as part of the operational risks identified in the BBRA (Broad Brush Risk Assessment). This work will continue throughout 2022, with the aim of improving the current system to ensure verifications for critical controls are accurate, value adding and providing continuous improvement opportunities for site. Kestrel proudly hosted the 2021 Queensland Mines Rescue Memorial Cup. Eight mine rescue teams from underground coal operations across the Bowen Basin came to Kestrel Mine to participate in the annual competition.
Safety Re-sets Safety resets were completed in August and September with the theme; “Chronic unease: improving safety culture through better hazard and incident reporting”. Guest speakers Brant “Bugsy” North and Mark Matthews provided insight about their own personal experiences and learnings, addressing choices and consequences. 700 employees and contractors attended the sessions to go through the slide pack that was supplied by the Resources Minister and additional information relating to Healthy and Safety performance at Kestrel. Outcomes In 2021 Kestrel continued to achieve and improve upon our high standards of health and safety management. Kestrel’s reportable injuries were significantly lower than that of previous years, with recordable injuries below the QLD Coal UG Industry Standard in both total recordable injury frequency rate (TRIFR) and lost time injury frequency rate (LTIFR).
Health and Safety 17KESTREL COAL RESOURCES SOCIAL
Social –
Approach Kestrel is committed to providing a working environment where all of our employees, contractors and visitors are able to maintain good physical and mental health, so they can work safely, and return home well from every shift. Our deepest and most enduring value is to protect people from harm. Risk management is the foundation to achieve our health and safety commitment, and Kestrel understands that it requires focus and effort from all our workforce to make this a daily reality. In 2021, Kestrel’s workforce uploaded 158 formal risk assessments, 446 Job Hazard Analysis (JHAs) and 559 hazards into the Safety Health Management System (SHMS), and completed over 1000 Take 5’s a month. It is through individual ownership of this that Kestrel has been able to reduce incidents and injuries on site.
SOCIAL Recordable Injuries – TRIFR, LTIFR and Industry Standard Jan-215.918.90 Feb-214.716.16 Mar-215.519.42 Apr-215.718.43 May-215.818.09 Jun-215.117.65 Jul-215.917.59 Aug-215.818.94 Sep-215.917.56 Oct-214.413.88 Nov-214.412.36 Dec-214.313.72QLD UG Coal Industry LTIFR (5.9) 222526242321 2019 18 17 121516141311 04080910070605030201 RATEFREQUENCY QLD UG Coal Industry TRIFR (23.7) 12M TRIFR (per 100ppl/year) 12M LTIFR (1 million working hours) 18 SUSTAINABILITY REPORT 2021
Tracking Safety Performance Safety performance is measured, reported, and tracked through a range of key metrics that are standard across the mining industry, and are calculated as a factor of equivalent working hours of 100 people over a year (1,000,000 hours) so that they are also directly comparable across all mining operations. However, Kestrel never loses sight that each metric we report is in fact talking about one of our people. INJURY STATS 2021 2020 VARIANCE Total Injuries 81 109 -28 Total TRIs Total Recordable Injuries 19 30 -11 Total LDI Lost Day Injury 6 9 -3 RATESFREQUENCY 2021 2020 VARIANCE AIFR All Injury Frequency Rates 58.45 (Target: 61.20) 68.00 (Target 71) -9.55 TRIFR Total Recordable Injury Frequency Rates 13.70 (Target: 12.75) 18.70 (Target: 12.75) -5.00 Mental Health Kestrel is a proud supporter of the employee assistance programGryphon Psychology. We encourage our workforce to access and use Gryphon’s services available, including free and confidential counselling for work and personal problems, free webinars, and an app for employees, contractors, and their families to ensure that they are accessible in any circumstances.
The Year Ahead In 2022 Kestrel will remain focussed on our risk assessment approach and continual improvement in all health and safety controls. JHA’s, Hazard Reports, Find it/Fix it, and Take5’s will continue to ensure focus is directed to both our usual daily tasks and management of any new tasks that may be required.
Establish baseline data for vibration monitoring to determine the risk profile for site.
Specifically for 2022, Kestrel is also proposing the following initiatives:
Undertake ergonomic reviews of standard tasks using leading edge technology that identifies the optimal body positioning to minimise muscular strains and sprains. This is in direct response to sprains and strains again being the leading recordable injury.
Implementation and compliance to Recognised Standard 22 Management Structure Increase in Kestrel Lifestyle Challenge participants.
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The Kestrel Lifestyle Challenge involves a 90-day challenge where employees and contractors of Kestrel are given the opportunity to participate in a range of activities that encourage healthy behaviour. The lifestyle challenge incorporates body composition analysis scans, weekly health and nutrition updates, exercises and a community that support each other in forming healthy habits. As part of the program outline, all Kestrel employees, and contractors (whether on the program,
“My motivation are my twin boys, they are the real winners in my eyes from this competition, giving me more energy to play with them.”
SOCIAL CASE KestrelSTUDYLifestyle Challenge or not) received weekly updates containing health and nutrition advice. Leaders worked with employees to overcome barriers identified to participating in the challenge, incorporating exercise routines into pre-shift meetings, providing a stationary bike in the control room and mentoring. The challenge encouraged a total weight loss of 578.7kg (448.1kg Body fat loss) across a total of 156 participants (underground, CHPP, professional staff onsite and in Brisbane), and an improved feeling of wellness across all participants. Success on the engagement and enjoyment of the challenge were also measured. Participants gave positive feedback, posted to Facebook, and were found to be encouraging others. Teams were finishing 12 hour shifts with a 2km walk back up the drift, clearly indicating a successful Health Program.
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The Kestrel Lifestyle Challenge has highlighted Kestrel’s sense of community, and our people’s determination to be the best version of themselves, with participants entering local community clubs and events such as the Emerald Park Run and Central Highlands Mountain Bike Club. In 2022 the Kestrel Lifestyle Challenge is set to continue, with hopes of significant increase in challenge participants. Testimonials “The kestrel lifestyle challenge provided the circuit breaker moment I needed to get my lifestyle back on track after falling into numerous unhealthy habits. The challenge to see what results can be achieved in 12 weeks has provided the motivation to stay focused.”
The coal mining industry can be a physically demanding working environment. At Kestrel we acknowledge that a high performing workforce is driven by happy, healthy people and we support our team to be the best versions of themselves. A healthy lifestyle and balanced eating behaviours are important to prevent chronic illnesses and overall wellbeing. To foster better health awareness amongst our workforce, the Kestrel Lifestyle Challenge was launched.
Kestrel’s most valuable resource is our workforce, with every individual across the organisation respected for the role they play to keep operations moving. We believe the growth of our people will support and sustain the growth of Kestrel, so we focus on strengthening our peoples’ capabilities underlying the promise to lead our business, through our people.
Approach
Kestrel is working to embed our culture today, to solidify our foundation for future growth. Our core values embody this and are strongly communicated across all levels of the company. We Are One is a core value to recognise diversity within our team as a strength, working together to achieve our shared, successful future, while We Are Respectful aligns how we do our work to ensure this success is achieved with honesty and integrity. Kestrel’s aim is to be the team that everyone wants to work with. Outcomes In 2021, our workforce consisted of 648 people in a combination of direct employees (457) and contractors (191). The figures below show the breakdown of the workforce into direct employees and contractors, further assessed by gender, average year of service and average age across roles within the company.
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MANAGEMENTSENIORMANAGEMENTMIDDLEPROFESSIONALSFRONTLINESURFACELEADERSUNDERGROUNDFRONTLINELEADERSWORKFORCESURFACEUNDERGROUNDWORKFORCE Average Years of Service Average Age (Years) Females Males2002101901801701601501401301201101009080706050403020100 9095100105 85 707580 65 60 55 50 45 40 35 30 25 20 15 10 5 0 (MALE/FEMALE)EMPLOYEESOFNUMBER (YEARS)SERVICEOFYEARS/AGE Breakdown of Employee Workforce Social – People & Culture
The year ahead In 2022, Kestrel propose to explore and create opportunities for a diversified working environment, that encourages employees across the broadest range of people to want to work and stay with Kestrel.
An important part of creating these opportunities is through the development of an Inclusion Strategy that will involve setting diversity targets, across a range of under-represented groups, within the company. The strategy will comprise an array of initiatives to improve workplace gender diversity and equality, establishing measurable, achievable, sustainable diversity targets across a range of diversity indices.
With initial consultation and negotiation well progressed in 2021, it is expected that an updated Enterprise Agreement will be achieved in 2022.
Negotiations also commenced in 2021 for an updated Enterprise Agreement for Kestrel employees working at the Kestrel mine site. Several meetings were held in 2021, with an approved Enterprise Agreement the target for all parties in 2022.
The program enables direct learning opportunities between both mentor and mentee. The program facilitates the sharing of corporate knowledge while supporting employees to progress within the company allowing them to reach their full potential.
Female representation at Kestrel increased from 6% in 2020 to 7.4% in 2021. While the underground workforce is dominated by male employees, there is a significant female representation in professional roles and middle management. Employee turnover for 2021 was 8.6%, slightly higher than 2020 at 7.1%. As covid continues to impact operations, unplanned leave has decreased slightly from 2020 (3.9%) to 3.1% in 2021. Indicative Indigenous employee rates, based on who has disclosed their ethnicity, is 2.1%.
Kestrel also engage external mentors, as part of the formal mentioning process. In 2021 Kestrel continued to build upon the Kestrel experience, launching into development programs, leadership growth opportunities and the evolution of the Kestrel company culture. The flagship program for this was the Unleashed training that commenced in 2021 and is planned for completion by the end of 2022 (see case study).
A formal mentoring program was developed within Kestrel to reinforce our leadership approach, culture, and values. Our Talent Development Plans are the platform for the program, building long-term relationships across functions and departments forming stronger connection and commitment.
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KESTREL COAL RESOURCES
2021 saw the launch of UNLEASHED - Kestrel’s new leadership development program. UNLEASHED is not an “off the shelf” training program, having been developed by Kestrel people, for Kestrel people. For our people to thrive as leaders, we believe in investing in building the right opportunities and education that strengthens our people’s leadership capabilities. Our investment will return in leaders who lead with ownership, authenticity and make values-based decisions. The Kestrel design is about putting the people at the heart, creating an impactful learning experience. UNLEASHED is being completed internally through a range of delivery methods, individuals can work through at their own pace, provided with time to focus on becoming better leaders, contributing to a strong future with Kestrel. There are 225 leaders & developing leaders currently working through the 9 UNLEASED modules.
SOCIAL CASE UNLEASHEDSTUDY U nleashing One Kestrel N urturing Your Potential L eading Your Team E xpectations and Accountabilities A pproaching Planning and Priorities S afety, Everyday H ow to Motivate and Influence Engaging Communication D riving Improvement An individual leadership diagnostic impact survey in 2021 showed an increase in leadership thinking across all completed modules. The most notable increase of confidence within Kestrels Leadership team is associated with being able to identify things that are unique to the individual’s leadership style. This has enabled Kestrels leaders to work within their own strengths and weaknesses to develop and execute on innovative business improvements with their teams. The remaining modules are planned for completion in 2022. 23
Insurers SponsorsLenders JV Partners GeneralpublicmediaIndustry R&D &Neighboursnearbysites Traditional owner applicantsKangouluWestern CustomersRegulator & State Gov ernment People & servicecommunitygroups of Central Highlands Local governmentCHRCLease land as active cattle farm AACo Financial operations&partnersIndustry & interest groups Local Workforce Full-time70%workers40%Contractors Social – Stakeholder Engagement
Kestrel
Approach At Kestrel we aim to work collaboratively with our stakeholders to provide clear, consistent and transparent communications. Kestrel’s Cultural Experience Strategy includes key streams that help direct our engagement approach, including our aim to deliver positive outcomes by continuing to do good work and build connected communities in the areas we operate. At Kestrel we ensure we are always acting with integrity and respect in fostering relationships with our stakeholders. Kestrel’s values of We Are Committed embraces our commitment to care for our people, communities and
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Kestrel’s stakeholders are broadly defined as any party that may be impacted by the operations or have an impact on the operations. Kestrel’s stakeholders will predominantly fall within one or more of the groups displayed in the figure below:
environment; We Are Respectful confirms we will act with honesty and integrity in all of our dealings with our stakeholders; and We Are One incorporates our desire to work with our stakeholders’ establishing partnerships, where possible, that help us support each other to achieve mutually beneficial outcomes. Stakeholders
Welcomed a new cohort of vacation students all of whom are studying Engineering at various Queensland Universities. The CQUniCares Kestrel Coal 2021 Engineering Scholarship, awarded to Connor Robson. Partnered with @WorkPac and conducted an Apprentice Assessment Centre, targeting our next intake of Apprentices for 2022. Participation in AG-Grow Emerald field day. Sapphire Sponsor of the Central Highlands Development Corporation bi-annual Business Excellence Awards. We developed Kestrel’s Cultural Experience Strategy that sets expectations, providing the framework for strengthening our capabilities, clarifying, inspiring, and initiating new perspectives towards our future for all of Kestrel’s internal and external engagement activities. For Kestrel, community is all about connection and partnerships. Investing in our community shows our genuine desire to build relationships, opportunities, and growth, connecting our communities. As a largely residential based operation, we work within our communities, providing direct benefits of employment, training, and economic contributions. With strong community ties we are always looking for opportunities to generate positive impacts in the work we do and the way we operate to increase connectedness within our four walls at Kestrel. In 2021, Kestrel invested $82.9M into the Emerald and local business economy through buying local as direct supply, and a further $81.3M into the regional business economy (total Kestrel$164.2M).proudlycontributed over $80k directly to the community through the Community Grants initiative (see case study) and a further $32k to in-kind donations, totally $112k. Each year, Kestrel provide ongoing support to the community in a number of ways. We support Central Queensland (CQ) Rural Health via housing for medical residents to undertake residency in Emerald who provide medical services to the region during their training. Kestrel hope to actively contribute to a positive experience of rural lifestyle, which may lead to increased medical professionals in the region. Additionally Kestrel also contribute to the community with a number of in-kind donations such as providing marquees to not-forprofit groups and working with the Emerald Neighbour Centre to assist in delivering their annual charity gift drive.
SOCIAL Local28%&RegionalSuppliers26%QueenslandSuppliers96%AustralianSuppliers 25KESTREL COAL RESOURCES
Engage and connect with our community and stakeholders via newsletters, social media, networking, and community events Support local and regional economies by buying local, where possible Host a Family Open Day to showcase our work to our family, friends and community, including a guided tour of Kestrel South and Kestrel North Continue to support the community through the community grants initiative and ongoing sponsorships. Continue hosting Kestrel annual Neighbor Day
The year ahead In 2022 we will continue to build upon our strong foundations within the community and commit to:
Outcomes Through 2021 Kestrel focussed on fostering relationships built on trust, honesty and integrity with some key communication and partnership opportunities. Partnerships were established with local schools and universities, with information flowing in both directions to increase knowledge of career opportunities and pathways to achieve them, such as:
SOCIAL CASE KestrelSTUDYCommunity Grants Each year Kestrel gives not for profit groups or community service organisations within the Emerald and Central Highlands surrounding area the opportunity to apply for grants through Kestrels Community Grant initiative. All applications are reviewed by a small group of Kestrel and community members who work together to help fund community initiatives, events and sponsorship programs. In 2021 we saw an overhaul of our core focus areas aligning them with the needs of the community and kestrel’s core values: Health and Well-being - Healthy minds, healthy bodies and healthy relationships are key to a healthy community Education and Opportunity - Brighten the opportunities for our locals and encourage life-long learning Enhancing Livelihoods - Create access to a diverse range of support and services and improve the lives of our people In 2021, Kestrel received many applications, all of which were reviewed granting 48 contributing a total of over $80k to the program. Some of the highlights for 2021 include: Sponsored a Defensive Driving Course in Emerald for Year 11 and 12 students. Emerald Seals Swimming Club swimming clinic, organised by the Emerald Amateur Swimming Clubincluded invited guests, Maxine Seear and Mollie O’Callaghan. $80,773 Community Grant Funding Profile HEALTH & WELL-BEING $29,108 (36%) LIVELIHOODSENHANCING $28,642 (35.5%) EDUCATION & OPPORTUNITY $23,023 (28.5%) OPPORTUNITYEDUCATIONAND HEALTHAND WELL-BEING LIVELIHOODSENHANCING 26 SUSTAINABILITY REPORT 2021
SOCIAL
Approach At Kestrel we work in close relationship with the Western Kangoulu (WK) people, as the registered native title claimants for the land on which we operate. We take our responsibility to protect heritage and significant areas seriously. Everyone at Kestrel has a responsibility to protect heritage values, with our minimum disturbance approach and eliminating potential for harm in our design. Heritage has been incorporated into Kestrel’s risk matrix to ensure protection from harm to heritage values. We survey extensively, we build awareness through our workforce, protect significant areas with restricted access, strictly control our ground activities and clearly demarcate heritage areas. We also risk assess all ground activities. We hold a Cultural Heritage Investigation & Management Agreement (CHIMA) with Western Kangoulu. Our CHIMA outlines our commitment to heritage protection and how Kestrel and Western Kangoulu work together. Above all, we value our relationship with Western Kangoulu, and we work together to achieve our mutual aspirations.
Social
Indigenous Development In 2021 we commenced formal Indigenous development opportunities in Indigenous employment, development and procurement. A Western Kangoulu joint venture business was employed to install demarcation as heritage demarcation for protection, and a joint venture was trialled to allow a WK business and civil construction company to work together and provide overarching supervisory capacity for Kestrel field works, in this case, a groundwater drilling program. We saw the launch of the Indigenous business development hub in partnership with our community of Emerald, seeking opportunities to increase Indigenous employment, training development and procurement opportunities both in Kestrel and across our community (see case study). The year ahead In 2022 Kestrel will adopt agreed Indigenous development targets Kestrel will continue to support, promote and provide opportunities in Indigenous development – Indigenous
Development 27KESTREL COAL RESOURCES
CASE developmentIndigenousSTUDYbusinesshub“Make it Real”
1. Grow presence and connection in Emerald 2. Employment & procurement opportunity through Kestrel 3. On Country opportunities 4. Education and culture opportunities In his opening speech at the launch, Jonathon Malone from Western Kangoulu said “it’s so important for us as a community to have access to opportunity, so our kids can see their Mum & Dad’s heading off to work and can see what they can do in their lives”. With approximately 75 attendees, the launch experienced massive support from across business, mining, suppliers, local government, education facilities and the wider Emerald community. We consider ourselves lucky to have this opportunity and to work with Western Kangoulu, and to operate with such strong relationships with key stakeholders. The night was enjoyed by all and shared among social circles across central Queensland. Interest generated a deepening of relationship with Central Highlands Regional Council and Development Corporation, with genuine interest from our workforce and suppliers.
In 2021 Kestrel was excited to launch our WK-Kestrel indigenous development program in Emerald. Our strategy is to Make it Real – to Respect, Inspire, Develop & support Choice in self-determining career and lifestyles for Western Kangoulu and Indigenous peoples. The launch was held in Emerald and was open for all local businesses and stakeholders with the aim to bring about engaged discussions across industry, community groups, government, development, and education, bringing people together and connecting them into Indigenous development. The Make It Real strategy has four aims:
Kerry Hayes, CHRC Mayor, said “It should not be lost on those attending the IBD Launch Evening that it won’t be one company that will deliver success for our region, but the collective effort from many. Very grateful to be asked to attend and congratulations to the Kestrel team”. In 2022, we will begin implementation of the indigenous development strategy with Western Kangoulu, with business initiatives and community programs on our path to Make It Real.
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SOCIAL
Environment 080706 29KESTREL COAL RESOURCES
underground mining methods mean that we do not have to clear vegetation in order to access the coal seam. There are no open mining pits, final voids or spoil piles, typically associated with opencut mining. The only vegetation clearing that occurs is for surface infrastructure, which equates to approximately 4% of our land surface. That means that 96% of the mine area is maintained as a commercial grazing property. We are mining below, while cattle graze above us. At Kestrel we recognise ongoing success will only come about through strong partnerships with the Traditional Owners of the land, our agricultural land managers, our neighbours and our local communities. Through these partnerships, we will operate collaboratively, and in the long term deliver a post mining land use that can be easily incorporated into the regional landscape and provide ongoing value for the surrounding community. Outcomes Throughout the year Kestrel has maintained our relationship with Australian Agricultural Company (AACo), who have the lease to operate almost 96% of our land as an active productive cattle farm. AACo is a significant Australian beef producer, and their Land Stewardship team live and work on Kestrel land. We have been working with AACo since 2018, to coordinate activities and allow successful operation of both mining and Whilefarming.theland has rich soils and a long history of high-yielding agricultural production, Kestrel is also focussed on understanding and enhancing the ecological and biodiversity values, particularly for riparian habitats along waterways, and within uncleared areas of remnant vegetation. In 2021, Kestrel commenced field studies to identify the occurrence and extent of existing flora and fauna species and ecological communities within the mining tenements. These studies cover the current approved mining lease land, as well as extending into Mineral Development Lease (MDL) 182 land, where early feasibility works for a potential mine extension are underway. These field surveys will occur over several seasons and allow definition of the current ecological values over all of Kestrel land.
Approach Kestrel’s land stewardship approach is detailed in our Environment and Land Policy, incorporating our commitment to excellence and continual improvement in environmental management and land stewardship, being a good neighbour and minimising impact to people and the planet. As the owner of over 17,000 ha of land, we commit to maintaining or improving all of the associated land values. Land values include the agricultural productivity of the land, but also extend to the ecological and biodiversity values that are maintained along waterways and in remnant vegetation, and to the heritage values and connection to country that have been established over centuries by the Traditional Owners of the Kestrel’sland.
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ENVIRONMENT
Targeted surveys are also underway to confirm the extent and condition of the native Bluegrass communities, including the endangered Queensland Bluegrass community (Dicanthium queenslandicum), known to occur onsite. While Kestrel and AACo are aware of some Bluegrass communities from earlier studies, and already work to protect these areas from disturbance, updated mapping and detailed assessment of the communities will identify opportunities to improve the health and potentially expand these areas. Field surveys are due to be completed in 2022.
ENVIRONMENT 31KESTREL COAL RESOURCES
As required by all Queensland mining operations, Kestrel has been transitioning to meet new legislation requirements under the Mineral and Energy Resources (Financial Provisioning) Act 2018. In 2021 Kestrel submitted and had accepted a 5-year Estimated Rehabilitation Cost (ERC) application. This is to ensure that Kestrel is providing appropriate financial allowances now, for any future rehabilitation costs. Kestrel has also commenced preparation of a Progressive Rehabilitation and Closure Plan (PRCP), that will incorporate rehabilitation milestone commitments through the life of the mine, up to and including mine closure. Within the PRCP, particular attention will be given to a Final Landform and Rehabilitation study for the Co-disposal Facility at Kestrel. The study will provide the technical assessment of rehabilitation methods to ensure the final Codisposal Facility rehabilitation will address all regulator and community expectations, for a safe, stable, nonpolluting and self-sustaining post mining land use. At Kestrel, we hold great confidence in our rehabilitation methods with 571ha of subsidence rehabilitation being certified as successful by the regulator. Kestrel is one of the few mining operations in Queensland that have achieved certified rehabilitation and are in a position to ensure we can return our land to the agreed post mining land use. The year ahead In 2022, Kestrel plans to finalise the significant ecological and land management studies commenced in 2021, as well as undertake soil surveys in line with current land suitability criteria. The outcome from these works will be the development of current, scientifically verified documents that will be used to set the future direction for Kestrel’s land stewardship, biodiversity and rehabilitation commitments. These documents will include: Terrestrial ecology reports that will identify existing ecological values across all of Kestrel tenements, including potential habitat and wildlife corridors A report to opportunitiesBluegrassandtargetedopportunities,biodiversityidentifyimprovementparticularlytowardsthehealthextentofKestrel’scommunities,andtoenhance these areas A PRCP that will include final closure landforms and rehabilitation criteria that will be disposalfocusofagreedprogressively,appliedtoachieveoutcomesattheendminelife,withparticulararoundtheCo-Facility Soil Survey reports that incorporate soil suitability assessments. All of the collated information will then be utilised to develop a holistic land management strategy, currently proposed to be completed in 2023.
The year ahead WK and Kestrel will commence design and progressive delivery of the shared Heritage Management System to embed and build heritage management and cultural awareness processes The Indigenous Cultural and Heritage Awareness program will be designed with WK and delivered across Kestrel
Area194haSurveyed85Scarredtrees7 Significant areas under TraditionalWesternprotectiondisturbance11KangouluOwnersinvolved85DaysspentinsurveyorinvestigationatKestrel 32 SUSTAINABILITY REPORT 2021
For the 2021 seismic program high reliability heritage control plans were created in collaboration with WK, including: specific risk assessments undertaken with WK in project planning project specific induction and familiarisation for the project teams control plans included clear responsibilities and supervisory expectations daily checklists and regular contacts for quality assurance. The updated approach to heritage management highlighted the effectiveness of heritage awareness training for management of complex projects and protection of heritage value areas. The program is planned to be developed further and rolled out in 2022, embedded across Kestrel.
Land management – Heritage
A detailed archaeological survey of Policeman’s lagoon was completed including, ethnographic, soils and vegetation surveys as part of an ongoing process of Free, Prior & Informed method to assess potential heritage value impacts. A Gordon Downs historical heritage investigation was completed and identified multiple historical features on Gordon Downs including the original homestead, racetrack and market gardens areas In 2021 works included survey of the 500 series, seismic survey management, plus a new program of dating and cataloguing the large amount of scar trees located within Kestrel’s lease areas. 85 scarred trees have been identified. Kestrel and WK are working through development of a Scar Tree Management Plan, a plan of how Scarred Trees will be managed and maintained moving forward. A review of the Cultural Heritage Investigation and Management Agreement (CHIMA) was completed. The key outcome was agreed to shared development and implementation of a shared Heritage Management System between Kestrel and WK. The HMS is an indication of the increasing maturity of our partnership, and further systemise heritage management to current practices.
ENVIRONMENT
Scarred Tree Control Management Plan will be further developed in methodology and deliverables
There were a total of 8 Cultural Heritage survey events, conducted over 5-8 days each, in 2021. These surveys identified 814 culturally significant artefacts, salvaging 558, and contributing $0.85m into cultural heritage investment.
Kestrel were also invited to discuss our heritage approach by a leading legal team as a subject matter webinar. As our relationship partners we presented with Western Kangoulu as it is a joint approach in our learnings and our successes. We will continue to give voice to WK, recognising their knowledge and creating opportunities.
Waste and Reject management Approach
ENVIRONMENT In 2021 the Kestrel operations generated 4517 Tonnes of waste in total, broken down as: 288.7tRecycledWaste Including general recyclables and used oils 1394tSolidWaste to Landfill Liquid2835tWaste other than used oil 4517tTotalWaste
33KESTREL COAL RESOURCES
Outcomes In 2021 there was a targeted program for all departments to clear their areas of scrap steel, including any historic wastes. This focussed approach resulted in 6805 tonnes of scrap steel being collected from site and recycled by a regional steel recycling company. General waste management on site is undertaken by a specialised contractor, who reports all major waste streams. Kestrel also reports annually to the National Pollutant Inventory (NPI), with results being publically available. NPI reports predominantly on a range of chemical substance movements and emissions, resulting from operational activities and waste management practices. Our 2021 NPI report confirmed Kestrel had maintained all reported figures generally in accordance with our 2020 reported volumes.
At Kestrel our general waste management approach is based on the waste hierarchy, with the aim to apply this approach to as many waste streams as possible. All Kestrel offices and operations are equipped with recycling bins and general waste bins to optimise recycling effort throughout the workforce, making individuals accountable for how they manage their individual and operational generated waste, every day. With a strong focus on compliance, Kestrel work with appropriately licenced waste contractors to ensure that all waste streams, including regulated waste, are handled, stored, transported, tracked, and disposed of in accordance with our site Environmental Authority and regulatory requirements. Coal wastes are managed as a separate waste category. Coal from underground operations is delivered to the Coal Handling and Preparation Plant (CHPP) where it undergoes a washing process to remove larger impurities (rejects) and finer material (tailings or fines). The product coal is then loaded onto trains for transport to the Gladstone coal terminal for export, while the rejects and fines have historically been mixed together for disposal at the Co-disposal Facility (CDF).
Assess waste reporting processes to deliver waste volume information to a single repository, for ease of internal and external reporting.
34 SUSTAINABILITY REPORT 2021
Additional outcomes from 2021 included:
Review of current waste management contract conditions to identify waste reduction initiatives that can be included in future contracts
The year ahead In 2022 the focus will be to confirm accuracy of waste reporting figures, investigate opportunities for new waste reduction strategies and establish a regular waste compliance audit process.
ENVIRONMENT
Following on from the scrap steel clean up in 2021, Kestrel will undertake a similar campaign to remove redundant or abandoned items from all site lay-down areas. Re-useable items will be offered for purchase, recyclable items will be delivered to appropriate recycling facilities, and waste items will be identified for collection by Kestrel’s waste management contractor
Kestrel is proposing the following specific initiatives for 2022:
Utilisation of personal protective equipment (PPE) vending machines that record individual staff usage as a mechanism to reduce waste Assessing the viability of a drill tip repurposing program. The program involves recovering drill tips, to be sent back to the manufacturer for refurbishment With a focus on continual improvement, in July 2021 Kestrel engaged an independent consultant to conduct a high-level audit of the mine’s current waste management systems. The audit report identified several improvement opportunities that Kestrel is addressing on a riskbased priority basis.
In 2020, Kestrel initiated a dry-stack tailings process to reduce the amount of water contained in the fines through the use of solid bowl centrifuges, and subsequently reduce the amount of water that is transported and stored in the CDF. We were the first underground coal mine in Australia to introduce this process, and we have continued to refine these operations throughout 2021. The benefits of this process include greater geotechnical stability, reduced risk of acid rock drainage, reduced water consumption and percolation of water through the facility, ability for progressive rehabilitation and capacity to contain all coal wastes within the existing CDF area until the end of the current approved mining areas.
Kestrel has commenced early feasibility studies to assess the potential for the current mining operations to extend into parts of Mineral Development Licence (MDL) 182, also referred to as Kestrel West. Kestrel is initially focussing our assessment on land that is owned by the company. Early feasibility studies commenced in 2021 and will continue throughout 2022 and 2023, including baseline surveys for identification of environmental, social and cultural heritage values. Kestrel will also undertake further coal resource definition and identify any geological concerns in the project area. The outcome from this work will be used to identify potential constraints and opportunities associated with the project and help to determine an appropriate path forward for approval and development options. Kestrel plans to undertake extensive stakeholder engagement throughout this process and will incorporate stakeholder concerns as part of the project assessment.
COMMUNITYCompletedStudiesCONSULTATION with visits, detailed end of
that will progress into more
TO OCCUR THROUGHOUT ENTIRE PROCESS Works undertaken in 2021 included: installation of an additional 14 groundwater bores updating the existing groundwater model an extensive landowner bore census late dry season flora and fauna studies commencement of stakeholder engagement activites, starting
KW EnvironmentalKWDECISIONAPPROVALBaselineStudiesCommence Approval Pathway Determined State & Commonwealth Approval Processes KW SubmittedDocumentsApprovaltoDES&DAWE KWPreparationDocumentsApprovalKW AssessmentImpactWorksMine Footprint & Baseline
ENVIRONMENT CASE KestrelSTUDYWestFeasibilityProjectTimeline
2022, Kestrel is planning to have a conceptual mining footprint for Kestrel West that will be communicated to all relevant stakeholders. The conceptual mining footprint will inform the likely environmental approval pathway, as well as commencing the formal project stakeholder engagement process. WE ARE HERE 35KESTREL COAL RESOURCES
newsletters and farm
engagement in 2022 ongoing resource definition, that will lead to development of a proposed mining footprint Works planned for 2022 include: monitoring of groundwater bores wet season flora and fauna studies stakeholder engagement, including newsletters, neighbours day and a combination of individual and group information sessions soil suitability surveys air and noise baseline monitoring By the
While Kestrel reuses approximately 90% of all raw water that comes onto site, in 2021 our raw water importation increased to 877 ML, a 175ML rise from 2020. While still well within our licensed offtake volume conditions, this increase in raw water usage was reviewed and found to be attributed to a combination of: optimisation issues associated with the reverse osmosis plants raw water requirements for construction of ventilation shaft (VSA3) (grout and mud specifications) water leaks in some underground equipment in the lead-up to a major maintenance shutdown Kestrel has addressed these issues, whereby the maintenance shutdown Our water stewardship approach recognises that there are shared needs and demands on our water resources, and these must be understood and managed in collaboration with our neighbours, local communities and other stakeholders within the water catchment. Outcomes Kestrel has established a detailed site water management system, and throughout the year we maintained a number of positive water management initiatives, including:
ENVIRONMENT
3378.5ML Total site water 9.2ML/D Averageextractiondaily 2021 Water Source Breakdown RAW WATER 2.4 ML/DAY (877ML) SUPPLEMENTARY BORE 0.0008 ML/DAY (0.3ML) SIS DRAINAGE 0.4 ML/DAY (153.9ML) DEWATERING 6.4 ML/DAY (2347.3ML) 36 SUSTAINABILITY REPORT 2021
Water Stewardship
Approach Kestrel appreciates that clean water is a valuable and finite resource, particularly within the Fitzroy River Drainage Basin, where there are times of extreme under and over supply. These extremes can even occur within the same year, as happened in 2021 where the year commenced on the back of almost a decade of below average wet seasons but ended with a major flooding event in December. Managing water across the mine site through these extremes aims to find a balance between water usage, water storage and water release, depending on the conditions at the time. dewatering of coal tailings material to produce a semi-dry filtercake, increasing water available for recycling through the system, and also reducing the amount of water held long-term in the mine codisposal facility operation of 2 reverse osmosis (RO) plants to allow recycled mine water to be utilised in equipment underground, reducing the amount of imported raw water upkeep and management of recycling options, with 90% of site water estimated to be reused at some point through the operations maintaining a site water balance that can respond to changing conditions, such as allowing for mine water releases for the first time in 7 years.
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The year ahead In 2022 Kestrel proposes to refine our mine water release process to optimise water release opportunities, always maintaining compliance with our EA conditions. The volume of water released in 2021 was minimal, and highlighted some unnecessary restrictions in our release procedures. Following the floods, Kestrel worked with the regulator to agree on improved water release conditions, and in 2022 we will be significantly updating our procedures and infrastructure to allow the maximum volume of water to be released back into the environment, as and when natural flow conditions allow. Additional water management initiatives for 2022 include: Improve the capacity and throughput of Reverse Osmosis plants onsite Improve metering and recording of mine water movements Infrastructure to direct goaf water directly to Reverse Osmosis Plants for treatment De-silting of the Rejects Return Water Dam to reinstate the design storage capacity 09/12/202101/12/202126/11/2021
ENVIRONMENT
25.43MlWaterreleasedincomplianceduring2021
addressed a number of water leaks in underground equipment, while additional work programs to improve throughput of the RO plants are ongoing.
The wet season for 2021 arrived early and with significant rainfall, resulting in flooding around the Kestrel mine in November and December. This allowed for the dilution of mine water held onsite, and Kestrel took advantage of the optimal conditions to undertake our first controlled water releases since 2014. A total of 25.43 ML of water was released over three separate events, in strict compliance with Environmental Authority conditions, fully monitored and reported to the regulator, DES.
Kestrel is also an active member of the Fitzroy Partnership for River Health, and provides input into the annual Stewardship Reports and Annual River Health Report Cards, that are publicly reported. Partners have a common goal of providing a more complete picture on river health, and support this goal by providing information and support through data-sharing arrangements. As an underground mine, it is imperative that Kestrel understands the surrounding hydrogeology, and specifically how potential water inflows may impact underground workings. In 2021, Kestrel collaborated with nearby operators to update the existing site groundwater model to allow a wider, more detailed regional groundwater model to be developed. Modelling allows Kestrel to predict groundwater interactions with the mine operations, with the model being regularly calibrated in response to the ongoing groundwater monitoring program. The groundwater model allows the mine to better understand any impact on the groundwater system enabling management and mitigation solutions to be developed as required.
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our Scope 1 and Scope 2 emissions annually via the National Greenhouse and Energy Reporting (NGER) framework. For FY21, Kestrel reported a total of 1.32 Mt CO 2-e. This is an increase of 20% from our FY20 figures. To provide some context to this increase of carbon footprint, it is necessary to understand Kestrel’s emission sources, some constraints related to underground mining and the specific geological conditions for Kestrel Mine. Kestrel’s main source of carbon emissions are coal related gas (Scope 1), which is flared or vented. Coal related gas accounts for 88% of all Kestrel’s carbon footprint, with diesel and electricity combining for around 10%. This means that even major reductions in diesel or electricity emissions will have negligible effects on our total carbon footprint. Any major reduction in carbon footprint at Kestrel will need to occur through initiatives in reducing, re-using or mitigating our coal related gas Coalemissions.relatedgas at Kestrel includes:
ENVIRONMENT
Kestrel recognises our responsibility to work with national and international
There is also a factor of geology relating to the make-up of Kestrel’s carbon footprint. As Kestrel proceeds through the 400 panels and approaches the 500 panels, we are mining at depths up to 450m below the surface. As the coal seam deepens, the total amount of gas increases and the composition of coal seam gas changes to a higher concentration of methane relative to CO 2. Based on mining conditions alone, Kestrel’s carbon footprint will increase for the next 6-8 years, before significantly reducing as we progress back into shallower sections of the mine into lower gas level and less methane rich zones.
VAM is our largest footprint as it is vented as methane and there is no viable technology currently available in Queensland to convert these low concentrations of methane to CO 2
Flaring of pre and post drainage gas converts the methane gas to CO 2. Under NGER reporting, methane is identified
1. Pre-gas drainage extraction, a regulated safety requirement to reduce gas content in the seam ahead of mining, minimising risk of gas outburst or ignition. All pre-gas drainage is flared to convert methane to CO 2 2. Post-gas drainage extraction (also known as goaf extraction) to remove gas from overlying seams during longwall retreat. Post-gas drainage is flared as much as possible to convert methane to CO 2 3. Vented-air methane (VAM) is gas extraction at very low concentrations from the mine working environment via the primary ventilation systems.
Approach Climate change, as a result of carbon emissions, impacts across human and natural systems are evident, and Kestrel recognises that reducing carbon emissions is a responsibility we share globally. As a coal mining company, Kestrel has identified climate change and the resulting need for carbon footprint reduction as one of our critical corporate risks. We need to get this right both as a company and as part of the global community if we are going to maintain climate change within acceptable limits and retain our social and environmental licence to operate in the Kestrelfuture.reports
as 28 times more potent than CO 2 as a greenhouse gas. Flaring methane, converting it to CO 2, reduces carbon emissions by half. Kestrel has already installed pre-drainage and post-drainage flaring infrastructure and is achieving these reductions.
For 2021 and beyond, Kestrel is focused on assessing the viability of a range of carbon reduction initiatives. While not currently available or viable, we acknowledge that technology to allow conversion of VAM to CO 2, or to a usable methane concentration, would provide the biggest single advance in our goal for carbon minimisation.
Climate Change and Carbon Management
Increasing areas for pre-gas drainage, including that of overlaying seams, to allow greater flaring of coal gas and reduction of VAM Investing in additional post-gas drainage wells and infrastructure to increase methane capture for flaring abatement prior to entering into VAM streams
Late in 2021, Kestrel also commenced a range of carbon reduction initiative and technology assessments that will be completed in 2022. The Year Ahead Kestrel will be exploring a diverse range of innovative technology options to reduce our carbon footprint across all emission sources. We will continue to dedicate significant resources to determine the viability of these opportunities to reduce our carbon footprint and act against climate change.
consumption1,759,357Kestrel’s1.32MtnetannualGHGemissionsinFY21(CO2e)(GJ)Kestrel’snetenergyinFY21
*NGER reporting occurs on a financial year basis, and so reference to emission figures for 2021 will be referring to emissions reported between July 2020 – June 2021.
carbon reduction leaders, our local, state and commonwealth governments and our communities, to realise a lowcarbon economy for the well-being of future generations. Outcomes In 2021 significant focus has been directed to understanding our emission profile in order to better identify our carbon reduction opportunities. Through the process of collecting, collating, and analysing our carbon emission data sources, we have also identified some improvement opportunities in how we capture and report our carbon footprint. Our FY21 NGER report included a voluntary reasonable assurance audit to ensure veracity and transparency of our reporting Operationally,figures.Kestrel is actively identifying opportunities to improve coal gas drainage operations by:
39KESTREL COAL RESOURCES
Kestrel’s exploration will include opportunities around utilisation of existing methane emissions, on-site projects to improve emission capture and flaring, carbon sequestration viability, blue or green power generation, land management carbon credit projects, partnerships with national or international parties for carbon reduction projects and ongoing liaison with industry leaders and representative bodies to identify any technology that will help to address VAM reduction opportunities. By the end of 2022, Kestrel propose to have an ESG Strategy that will incorporate a statement of Kestrel’s carbon footprint, carbon reduction initiatives and a plan for progressing a range of carbon reduction projects based on the outcome of detailed technical assessments.
ENVIRONMENT
Seeking opportunities to improve existing gas drainage efficiency Maintaining seal standards to reduce leakage occurring from older mining operations In 2021, Kestrel engaged GHD Advisory to assist in a climate change risk assessment to identify the risk of climate change impacts to Kestrel’s operations over the coming decades. For Kestrel, significant risks were identified predominantly through the transition to a Net-zero carbon footprint operation.
Critical risks were identified under the categories: Policy and Legal Risk Technology Risk Market Risk Customer and Stakeholder Risk Physical Risks – associated with short and long term affects of changing weather patterns All critical climate change risks have been allocated control actions and personnel responsible to implement these controls, with ongoing assessment against these committed actions.
Contact Phone: +61 (0) 7 3557 3000 | Email: info@kestrelcoal.com Kestrel Coal Resources Address: Level 22, 10 Eagle Street, Brisbane QLD 4000 Postal address: GPO Box 628 Brisbane QLD 4001