XSTRATA MOUNT ISA MINES Xstrata Mount Isa Mines ... · Xstrata Mount Isa Mines Private Mail Bag 6 Mount Isa, Queensland, 4825 Australia Xstrata Ethics Line The Xstrata Ethics Line

Xstrata Mount Isa MinesSustainability Report 2009

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2 Executives’ message

4 Targets and scorecard

7 Scope of report

9 Our approach to sustainable development

12 Governance and ethics

15 Our operation and economic contribution

19 Workplace health and safety

19 Health and safety

19 Performing safely

22 Occupational health

27 Our people

27 Diversity and opportunity

27 Non-discrimination policy

27 Labour relations

28 Training and education

31 Sustainable communities

31 Stakeholder engagement and consultation

32 Community feedback

35 Corporate Social Involvement program

36 Community grievances

36 Indigenous rights and Aboriginal Cultural Heritage

37 Mine closure

43 Caring for our Environment

44 Environmental incidents

44 Climate change

46 Energy

47 Water management

48 Biodiversity

50 Emissions

53 Waste and tailings management

55 Transporting product, goods and materials

57 Summary of key sustainability data

58 GRI index

IBC Glossary

Contents

Enquiries and feedbackOur sustainability report is designed to share our progress with you and we welcome your feedback.

Melanie Edgar Manager Community Relations North Queensland Tel: +61 7 4744 2011

Please email your comments to: [email protected] (include Xstrata Mount Isa Mines in the subject line) or write to:

Community Relations Xstrata Mount Isa Mines Private Mail Bag 6 Mount Isa, Queensland, 4825 Australia

Xstrata Ethics LineThe Xstrata Ethics Line is a confidential facility operated independently by KPMG. The line provides employees and other stakeholders with a means through which they can report any breaches of Xstrata’s Business Principles, policies or prevailing legislation. A free phone number is provided in every country in which Xstrata has managed operations.

The Ethics Line can be accessed online via www.xstrataethics.com or by calling the following free call phone number within Australia 1800 987 310.

About Xstrata plcXstrata is a global diversified mining group, listed on the London and Swiss Stock Exchanges, with its headquarters in Zug, Switzerland. Xstrata’s businesses maintain a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with a growing platinum group metals business, additional exposures to gold, cobalt, lead and silver, recycling facilities and a suite of global technology products, many of which are industry leaders. The Group’s operations and projects span 19 countries.

About Xstrata CopperHeadquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its mining and metallurgical operations and development projects span eight countries: Australia, Argentina, Chile, Peru, Canada, the USA, the Philippines and Papua New Guinea. Its operations are administered by five separate divisions, based close to the mining operations, namely the North Queensland, Minera Alumbrera, North Chile, Southern Peru and Canada divisions. It also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia.

Xstrata Copper’s world-class portfolio of copper development projects include Tampakan in the Philippines, Frieda River in Papua New Guinea, Las Bambas and Antapaccay in Peru and El Pachón in Argentina. Xstrata Copper is also developing the Energía Austral hydropower project in southern Chile.

Xstrata Copper is the fourth largest global copper producer with attributable mined production in 2009 of 907,000 tonnes of copper in cathodes and concentrates. The company is also one of the world’s largest producers of smelter and refined copper, including from third party materials. It employs approximately 19,500 people, including contractors.

About Xstrata ZincHeadquartered in Madrid, Spain, Xstrata Zinc is one of the world’s largest producers of zinc and one of the commodity business units within the major global diversified mining group Xstrata plc. Xstrata’s zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the United Kingdom.

Xstrata Zinc’s operations in Spain comprise the San Juan de Nieva zinc smelter and the Arnao zinc semis plant in Asturias, and the Hinojedo roasting plant in Cantabria.

In Australia, operations comprise: the Mount Isa, George Fisher underground, Handlebar Hill open cut and Black Star open cut zinc-lead mines, zinc-lead concentrator, lead smelter and Bowen Coke Works in north Queensland; the McArthur River open pit zinc-lead mine, processing and loading facility in the Northern Territory; and 75% of the Lady Loretta zinc lead deposit in north-west Queensland.

In Canada, operations and exploration projects include the Brunswick zinc-lead mine and lead smelter in New Brunswick; 25% of the CEZ zinc smelter near Montreal; and the Perseverance zinc deposit in Quebec.

Xstrata Zinc also operates the Nordenham zinc smelter in northern Germany; the Northfleet lead refinery in the United Kingdom; and owns 33.75% of the Antamina mine in Peru.

Around half of all zinc currently consumed is used for galvanizing steel, which is an environmentally friendly method of protecting steel against corrosion. Zinc also finds application in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals..

SUSTAINABILITY REPORT 2009 1

Xstrata Mount Isa MinesXstrata Mount Isa Mines operates two separate mining and processing streams, copper and

zinc-lead-silver, at Mount Isa. Together the company’s mines form one of the largest underground

mining operations in the world, and employ 3,362 employees and 721 contractors.

QUEENSLAND

Townsville

BowenMount Isa

Cloncurry

AUSTRALIA Brisbane

Mount Isa Mines copper operations

Copper Ore6 million tonnes of ore mined at two underground copper mines: Enterprise and X41

Copper in concentrate162,000 tonnes of copper in concentrate produced

Copper in anode214,000 tonnes of copper in anode produced at the smelter

Plants1 concentrator – 7.2 million tonnes per annum capacity; 1 copper smelter – 300,000 tonnes per annum capacity

Mount Isa Mines zinc, lead and silver operations

Zinc-lead Ore7.4 million tonnes of ore per annum mined from George Fisher underground mine, Black Star open cut mine and Handlebar Hill open cut mine

Zinc in concentrate324,000 tonnes of zinc in concentrate

Lead in bullion146,000 tonnes of lead in lead bullion

Silver in bullion243 tonnes of silver in bullion

Plants1 concentrator – 8 million tonnes per annum capacity; 1 zinc filter plant; 1 lead smelter

2009 Production Facts

2 XSTRATA MOUNT ISA MINES

Executives’ messageAs Mount Isa celebrated its 85th year of commerce and community in 2009, Xstrata Mount Isa Mines

faced many challenges. Once again, however, we demonstrated our commitment to a sustainable future,

by investing in our businesses, the community and our people. Our operations continued to play a vital

role as an economic driver in the region, contributing over $1.9 billion to the Queensland economy.

In responding to the Global Financial Crisis, dramatic falls in commodity prices and a record wet season, we focused on the long term sustainability of our businesses by conducting strategic reviews of our operations and implementing a wide range of cost savings initiatives. We also reviewed operating and capital expenditure, held contractor forums to identify cost reductions, focused on higher recoveries at the copper smelter and focused on production-critical roles.

As a result, we restructured the Mount Isa zinc-lead operations in early 2009 including suspending mining operations at Handlebar Hill. However, as conditions improved in early 2010, we began mining opportunistically again at Handlebar Hill to support production throughput in the zinc-lead concentrator.

The AUD$589 million investment decision by Xstrata plc in December last year to extend the life of the Ernest Henry Mining copper operations to 2024 with an underground mine and magnetite processing plant development, was welcome news indeed. It underscores the sustainability of our integrated copper mining and processing operations in north Queensland. It also means EHM will become the first iron ore concentrate producer in Queensland.

In 2009 we were not able to meet our most important target of being a fatality free mining operation. Tragically, a fatal incident occurred at George Fisher Mine when a loader entered a stope causing the loss of a valued long-term employee, Pekka Tuppurainen. Following this incident mid-year, a contractor was involved in a single vehicle accident when travelling down the George Fisher underground decline resulting in serious injury. Since this time, many changes have occurred both within the mine and within the mining industry

in Queensland. In response, we are doing everything possible to establish and maintain safe work environments and further changes to both systems and resources will be made in 2010 to continue to monitor and review our practices.

In September 2009, Kevin Hendry officially retired from his role as Executive General Manager Xstrata Zinc Mount Isa. We thank Kevin for his outstanding contribution to Xstrata Mount Isa Mines and the local community over the past six years.

Consolidating our performanceDespite the tough operating environment, in 2009 we continued to consolidate our operating and sustainable development performance to achieve solid results across the Mount Isa businesses including:

■■ A continued focus on injury-free, healthy work environments including an 11% improvement at Xstrata Mount Isa Mines’ copper operations as we achieved a total recordable injury frequency rate (TRIFR) of less than 10.

■■ Record achievements at the Mount Isa Copper Operations (MICO) which included mine development, production drilling, underground fill placement, and a throughput of 6.97 million tonnes at the copper concentrator.

■■ Record production levels at Mount Isa zinc-lead operations following restructuring resulting in a 15% increase in zinc in concentrate.

■■ Increased mill throughput and higher grades resulted in a 7% increase to copper in concentrate production.

■■ Commissioned the $120 million zinc-lead concentrator expansion to increase production from an average of 6.5 Mtpa to 8.0 Mtpa.

“The health and safety of our workers and the communities in which they live is Xstrata Mount Isa Mines’ highest priority.”

Steve de Kruijff

Brian Hearne


Executives’ message

■■ Maintaining our focus on pro-active continuous environmental improvement including reducing emissions from the copper and lead smelters through the Smelter Emissions Project, the Lead Pathways Study, improving stormwater management and further remediation of the Leichhardt River.

■■ Above-budget production at the copper smelter due to a strong focus on copper recovery and a site clean up to reclaim copper bearing materials on the lease.

■■ Strong support from the local community as we continued over $3 million in commitments in Mount Isa through the Xstrata Community Partnership Program North Queensland despite the tough economic conditions.

Living safely with leadThe health and safety of our workers and the communities in which they live is Xstrata Mount Isa Mines’ highest priority. We take the issue of lead levels in the Mount Isa community very seriously and in 2009 we continued to work with the community and other key stakeholders to address this important social issue.

We are committed to continuously improving our environmental performance and since taking ownership of Mount Isa operations in 2003, Xstrata has invested in excess of $250 million on over 150 environmental initiatives.

Key initiatives undertaken in 2009 to manage lead included:

■■ Continuation of the Smelter Emissions Project to further reduce emissions from our smelters and to design and implement operations and engineering controls to collect and reduce off-gases.

■■ Completion of Phase 1 (Land) of the Independent Lead Pathways Study (LPS) to examine potential pathways of lead into the community.

■■ Completion of Stage 3 of the Leichhardt River Remediation Project (LRRP), a recommendation from the LPS, to remove a further 40,000 tonnes of historical mine sediment from the riverbed.

■■ Implementing comprehensive programs to manage and minimise occupational exposure to lead and other contaminants and minimise the risk of traces of these metals being taken into the community. In late 2009, we upgraded our clean in/clean out facilities with the completion of a Northern Gate laundry facility and the full implementation of site only clothing of the zinc-lead operational areas.

■■ Continuing our comprehensive environmental air quality monitoring system to measure levels of sulphur dioxide, heavy metals and dust throughout the city to ensure we operate within acceptable limits. Importantly, lead measured in airborne dust at all statutory monitoring stations in the Mount Isa community remained below WHO guidelines.

■■ Continuing to actively work with local and Queensland Government to improve community awareness of living safely with lead in Mount Isa by being a member of the Living with Lead Alliance.

■■ Providing free, independent and confidential blood lead testing to the Mount Isa community.

For more information on these initiatives, please refer to the Living safely with lead Case Study on page 34.

OutlookLooking ahead this year, the economic outlook is continuing to improve and the commodity prices and demand from China are both looking strong. We are optimistic that this will give us the opportunity in 2010 to capitalise on our 2009 achievements and look for further efficiency improvements, undertake expansion projects and improve our sustainable development performance at our Mount Isa operations.

Key challenges and opportunities in 2010:

■■ Continuing to achieve solid operating performances and managing feasibility studies and projects to expand production from the copper and zinc-lead operations.

■■ Transporting increased product volumes on the Mount Isa to Townsville rail line.

■■ Managing the ongoing cost pressures on our business particularly in the smelting and refining areas and the potential impact of the Federal Government’s proposed Emissions Trading Scheme (ETS).

■■ Implementing continuous environmental improvements including working with the Queensland Government to transition to new environmental regulations and biodiversity management planning.

■■ Improve safety performance in the operations through the reduction of risk.

■■ Continuing our strong commitment to local communities and implementing outcomes from last year’s Community Attitudes Survey.

For more information on our challenges and opportunities, please refer to pages 10 and 11.

As always, we need to continue our focus on maintaining injury-free and healthy work environments.

This report details the efforts we have made over the last year to improve our operations’ sustainable development performance. I hope you find it both interesting and informative. We commend it to you as a record of our commitment to sustainable development and for ongoing improvement in these vitally important areas. It is vital that we develop our businesses sustainably so that Xstrata Mount Isa Mines can continue to play an important role in the future prosperity of north west Queensland.

Steve de KruijffChief Operating Officer, Xstrata Copper, North Queensland Division

Brian Hearne Chief Operating Officer, Xstrata Zinc Australia


Targets and scorecard

Health

2009 Target Performance 2010 Target

> 90% compliance to internal blood lead testing > 90% compliance to internal blood lead testing

No lead in blood removals over the national limit of 50 micrograms per decilitre

Not achieved – one removal in the zinc-lead operations (lead smelter)

No lead in blood removals over the national limit of 50 micrograms per decilitre

Safety


Mount Isa copper operations

Zero fatalities (0) Zero fatalities

LTIFR < 0.5 (1.05) < 0.4

TRIFR < 10 (9.30) < 7

DISR < 94 (175.04) < 75

Mount Isa zinc-lead operations

Zero fatalities (1) Zero fatalities

LTIFR < 0.4 (2.1) < 1.7

TRIFR < 15 (17.8) < 15.1

DISR < 68 (141.4) < 120

Our People*


Award 30 university scholarships and 16 school bursaries

30 university scholarships and 16 school bursaries awarded

Award 30 university scholarships and 16 school bursaries

Maintain apprenticeship intake at ≥ 70;

Continue to offer school-based apprenticeships

71 apprentices commenced

18 school-based apprenticeships commenced

Maintain apprenticeship intake at ≥ 50;

Continue to offer school-based apprenticeships

Continue to offer Graduate and Vacation program placements in our operations

Continue work experience programs with local schools

Conduct 40 Leadership Development Workshops

* The ‘Our People’ targets were previously recorded in the ‘Social Responsibility’ table.

Social Responsibility


Launch and deploy Indigenous Affairs Strategy Indigenous Affairs Strategy developed Launch and implement Indigenous Affairs Strategy

Continue cultural awareness training and deployment plan across site

Ongoing Review cultural awareness training and deployment plan across site

Manage existing XCPPNQ partnerships against agreed program outcomes

Target achieved Manage existing XCPPNQ partnerships against agreed program outcomes

Implement an effective Indigenous training and employment program (STEPers) in the Mount Isa copper operations and employ > 20 people in first intake

STEPers program implemented. 15 trainees accepted in to first intake due to Global Financial Crisis

Continue STEPers Indigenous training and employment program across site operations

Annually review stakeholder engagement plan

Achieved Not achieved Action continues into 2010


Targets and scorecard

Environment

2009 target Performance 2010 target

Publish Lead Pathways Study Phase 1 Land Report

Report results published in July 2009 Continue progression of Phase 2 Air and Phase 3 Water of Lead Pathways Study

Smelter Emissions Project team to complete project definition to assess the feasibility for capture and treatment of sulphur dioxide from the copper and lead smelters

Project definition complete and other components continuing

Smelter Emissions Project team to progress initiatives to further reduce emissions from the copper and lead smelters

Complete integration of area specific awareness components of Environmental Awareness Handbook into employee training plans

Environmental awareness training packages have been reviewed to include area specific components

Continue to roll out environmental awareness training across site

Installation of stormwater collection and recycling system at George Fisher Mine

In progress – design complete and construction to commence post wet season

Complete construction of George Fisher Mine stormwater collection and recycling system

Undertake third party (external) review of the Air Quality Monitoring systems

Air Quality Monitoring systems reviewed Review Air Quality Control Centre operation improvements and processes

Average 6.5 megalitres (ML) per day of mine dewatering water into the recycled water circuit

8.12 ML daily average Average of 7.0 megalitres per day of mine dewatering into the recycled water circuit

Achieve 430 litres of freshwater per tonne of ore milled at the zinc-lead concentrator

400 litres of freshwater per tonne of ore milled

Achieve 400 litres of freshwater per tonne of ore milled at the zinc-lead concentrator

Achieve 350 litres of freshwater per tonne of ore milled at the copper concentrator

238 litres of freshwater per tonne of ore milled

Achieve 300 litres of freshwater per tonne of ore milled at the copper concentrator

Sunrise over the Selwyn Ranges, Mount Isa

Social Responsibility


Implement National Indigenous Cadetship Program (NICP) at the Mount Isa copper operations and offer positions to two local tertiary students

Two local tertiary students selected in the copper operations for NICP placements

Continue to offer National Indigenous Cadetship Support Program (now known as NICS)

Conduct bi-annual Community Attitudes Survey in Mount Isa

Survey conducted in June Implement action plan developed in response to 2009 Community Attitude Survey

Hold three Community Information Sessions Three Community Information Sessions held Hold three Community Information Sessions

Hold a presentation and surface tour for teachers, emergency services personnel and health professionals new to Mount Isa

150 people attended annual ‘New to Isa’ presentation and surface tour

Hold a presentation and surface tour for teachers, emergency services personnel and health professionals new to Mount Isa

Launch Mount Isa Mines website

Launch a free call 1800 Community Complaints Hotline

Conduct Key Stakeholder 360 survey


George Fisher Mine employees board the cage to start shift


■■ Xstrata plc’s Business Principles and SD policy and standards

■■ Xstrata Copper and Xstrata Zinc’s SD Framework, Policies and Standards

■■ indicators and topics outlined in the GRI G3 Guidelines†, International Council on Mining and Metals’ principles, and other best practice guidelines and initiatives.

Global Reporting Initiative (GRI)This report meets self-declared application level A of the GRI G3 Sustainability Reporting Guidelines, including the Mining and Metals sector supplement.

A GRI index detailing how Xstrata Mount Isa Mines has addressed the G3 Guidelines within this report can be found at page 58 to 60 of this report.‡

Quality assuranceIndependent auditors Ernst & Young have verified Xstrata’s data management and reporting systems and processes as part of its external verification of the Group’s 2009 Sustainability Report. A brief description of the assurance process and the signed assurance statement are provided in the Group’s 2009 Sustainability Report available from www.xstrata.com from April 2010.

While the Xstrata Mount Isa Mines Sustainability Report has not been independently audited, it draws its key sustainability data from the same database as the Group report that is externally assured.

Changes to size, structure, ownership of operationsThere were no changes to the size, structure, or ownership of Xstrata Mount Isa Mines in 2009.

Defining report contentXstrata applies the principles of inclusivity, materiality and responsiveness as defined by the AccountAbility 1000 Principles Standard 2008 (AA1000APS) in our reporting. The Xstrata Copper North Queensland Division is committed to being accountable to our stakeholders. We describe the ways we engage with and respond to different groups on pages 31 to 32.

Sustainable development topics or issues that are material to Xstrata Mount Isa Mines or have the potential to become material to the long term success of our business have been prioritised in this report. We have aimed to provide a complete and balanced view of our SD performance tailored to the expectations and interest of our stakeholders.

In determining which issues or topics are material to Xstrata Mount Isa Mines we considered:

■■ feedback on our sustainability performance and reporting from key stakeholders

■■ company-specific issues raised either directly or indirectly by external stakeholders including NGOs, governments, communities and investors

■■ industry challenges raised in industry associations and forums

This report includes the sustainable development (SD) performance of Xstrata Copper and Xstrata Zinc’s Mount Isa-based operations. We publish our reports annually and this is the fifth report produced by Xstrata Mount Isa Mines.*

In 2009 there were no changes from previous reporting periods in the scope, boundary or measurement methods applied. However, we have revised measurement methods in some sections since the previous report. These restatements are clearly outlined in the relevant sections of the report.

An overview of our sustainability performance is also provided in the Xstrata Group Sustainability Report. All these reports are available on the Xstrata sustainability website, www.xstrata.com/sustainability.

A general description of Xstrata’s SD Policies is provided in this report. The full policies are published on the Xstrata website: www.xstrata.com/corporate/commodities/copper/publications. As part of the Xstrata Group, all Xstrata Copper and Xstrata Zinc policies are aligned with Xstrata’s SD policy and 17 SD Standards and its operations are annually audited against these standards.†

All monetary values are expressed in Australian Dollars unless otherwise stated.

Target audienceThe Xstrata Mount Isa Mines Sustainability Report 2009 will provide a broad range of stakeholders with information about Xstrata’s SD policies and practices and our performance at Xstrata Mount Isa Mines.

Our target audience groups include local, state and federal government, intergovernmental bodies, local communities associated with our operations, employees and their families, local contractors, community organisations and nongovernmental organisations (NGOs), business partners including suppliers, media, and industry participants.

Scope of reportThis report details the economic, health, safety, environment and social performance

of Xstrata Mount Isa Mines from 1 January 2009 to 31 December 2009.

* The most recent previous sustainability report for the Xstrata North Queensland Division was published in April 2009, which reported on sustainability performance in 2008† Xstrata’s SD Policy and Standards are published on Xstrata’s sustainability website, www.xstrata.com/sustainability‡ Information about how to apply the Application level is found at www.globalreporting.org

GRI application level

2002 In Accordance C C+ B B+ A A+

Mandatory Self DeclaredReport

Externally Assured

Report Externally Assured

Report Externally Assured


C Crew Development Supervisor Clancy Royes conducts a PASS meeting prior to the start of shift


We strive to preserve the long term health, function and viability of the natural environments affected by our operations and to maintain safe and healthy workplaces based on mutual respect, fairness and integrity.

We aspire to the highest standards of business conduct, set out in Xstrata’s Statement of Business Principles to protect and enhance our corporate reputation and ensure ongoing access to mineral resources.

We aim to create value for our stakeholders and contribute to a sustainable environment through investments in our businesses to improve their performance efficiency, to ensure the efficient use of resources such as water and energy and to maintain safe and healthy workplaces.

To ensure harmonious relationships with our stakeholders, minimise risk and secure an ongoing licence to operate we aim to create mutual benefits for stakeholders, working in partnership with the various parties who have an interest in or are affected by our business.

Xstrata Mount Isa Mines takes a systematic approach to setting targets, monitoring performance and reporting (both internally and publicly) against our targets in each of the key sustainability areas, as demonstrated in this report.

Our SD framework interprets and supports the Xstrata group’s SD policy and 17 SD Standards, and is consistent with our Definition of Purpose.

Precautionary approachXstrata Mount Isa Mines takes a precautionary approach to the environmental management of its activities. We use a comprehensive risk-based approach to manage the potential detrimental impacts of our activities. This approach means that even in the absence of evidence that environmental degradation is occurring or will occur, we take action to mitigate the possibility that it will.

Our approach to sustainable developmentXstrata Mount Isa Mines is committed to balancing social, environmental, and economic

considerations in how we manage our businesses. Although the lifespan of our activities is finite,

we aim to invest in skills, education, health, social and enterprise development that lead to

economic benefits and sustainable communities that outlive these activities in Mount Isa.

Xstrata Mount Isa Mines’ definition of purposeWe will maximise value for shareholders by successfully growing and managing an industry-leading portfolio of copper and zinc-lead assets that deliver superior returns.

We will achieve this in a safe, environmentally and socially responsible way, in open partnerships between our people and with communities, governments and other stakeholders.

Our strategic objectives■■ Injury-free, safe work environments

■■ Recognised leadership in environmental performance

■■ Reputation for social responsibility

■■ Realisation of the full potential of our people

■■ Achievement of the full capacity of our physical assets

■■ Cost competitiveness through the cycles

■■ Value creation through dynamic growth and continuous improvement.

Our valuesOur decisions and actions will demonstrate the following values:

■■ Honesty

■■ Dependability

■■ Respect

■■ Confidence

■■ Ingenuity

■■ Courage

■■ Passion.

“We strive to preserve the long term health, function and viability of the natural environments affected by our operations and to maintain safe and healthy workplaces based on mutual respect, fairness and integrity.”


Our approach to sustainable development

■■ Environmental and health issues including the lead in blood issue, emissions controls, and environmental impacts.

Xstrata Mount Isa Mines continues to actively pursue environmental excellence to underpin our ongoing commitment to ensuring the health, safety and wellbeing of our local communities.

We remain committed to the Living with Lead Alliance, partnering with the Queensland Government (Queensland Health and the Department of Environment and Resource Management formerly the Environmental Protection Agency), the local Member of Parliament, and the Mount Isa City Council, to increase awareness and influence behaviour of residents to live safely with lead. We also remain committed to completing the Lead Pathways Study and accessing new technologies to reduce emissions through the Smelter Emissions Project.

Read more about these initiatives on pages 34 and 50 to 53.

■■ Links with communities including maintaining community morale in difficult economic times, the need for good communication and the importance of support for the community from Xstrata Mount Isa Mines.

Ensuring sustainable communities are developed in the areas in which Xstrata operates in north Queensland remains one of our highest priorities. We will continue to survey residents and stakeholders in our local community to seek feedback regarding our SD progress and Corporate Social Involvement (CSI)programs to ensure we are meeting the needs of the local community.

We will continue to update the Mount Isa community on issues important to them through regular community information sessions and forums to ensure residents remain informed of our progress.

Read more about our commitment to ensuring Mount Isa remains a sustainable community on pages 31 to 41.

■■ Climate change and energy

Xstrata Mount Isa Mines aims to reduce its carbon emissions and carbon and energy intensity levels year on year, and we run efficiency and awareness programs across our business to identify opportunities and implement initiatives to achieve these targets.

Despite the stronger demand for commodities we continue to take a measured approach to our operations and remain focused on the long term sustainability of our businesses. As part of the Xstrata Group, the principles of Sustainable Development are integrated into our business model and guide our daily decision-making. Ongoing improvements across a range of indicators in 2009 demonstrate that our commitment to Sustainable Development has not wavered during these difficult times. We will continue to invest in the operational integrity of our sites, maintain industry-leading safety standards and improve our environmental performance. Our Corporate Social Involvement program will also continue throughout 2010.

■■ Regional growth issues including competition for staff, skills shortages, demand for infrastructure, affordable housing and coping with economic and population growth.

In line with our 2008 activities, we continued to implement our Human Resources Strategy to attract and retain talented people and where possible, match employees’ family members with suitable local employment. Our Mount Isa operations continued to work with all levels of government and relevant organisations to address infrastructure needs in our communities and improve liveability in our local community.

We will continue to contribute to the acquisition of skills and improving education to benefit our future and current workforce through workplace and community training and development programs.

Key challenges and opportunities Xstrata requires all its sites and operations to identify their principal risks. From internal review and feedback from our stakeholders, we have identified a number of key challenges and opportunities that may impact on our ability to successfully operate our businesses now and in the future.

For each prioritised challenge, targets are set to reduce its impact on our operations. Our performance against these targets in 2009 is shown in the scorecard on pages four and five. The scorecard also includes future targets, which are set to drive further improvements and address areas of under performance in 2009.

The key challenges and opportunities at Xstrata Mount Isa Mines include:

■■ Global Financial Crisis (GFC)

The Global Financial Crisis presented difficult challenges for the mining sector in 2009. From late 2008 and into 2009, there was a dramatic collapse in demand for commodities. The Xstrata Group responded rapidly and decisively, with management teams across our businesses implementing cost reduction programs and deferring non-critical capital expenditures. These actions allowed us to improve the operating cost structures, including at our north Queensland operations, and will help ensure we remain sustainable during challenging global economic conditions.


Our approach to sustainable development

AwardsIn 2009 Xstrata Mount Isa Mines received widespread recognition for the positive work it was undertaking in its SD activities through the following awards and achievements:

■■ Named a Top Ten Engineering Wonder of Queensland by Engineers Australia

■■ Individual Award for Excellence in Training at 2009 Mining Industry Skills Centre Conference and Training Awards (Geoff Gray – Electrical Maintenance Superintendent)

■■ Injured Worker Achievement Award – Return to Work Same Employer – 2009 QComp

■■ Finalist – 2009 Australian Mining Prospect Awards:

• Metalliferous Mine of the Year – Xstrata Copper’s Mount Isa Operations

• Mine Manager of the Year – Steve de Kruijff

• Best Contribution to Mining – Michael Holmes, General Manager Mount Isa Copper Operations (MICO) for the MICO New Starters Training Centre

• Excellence in Occupational Health and Safety – Xstrata Copper North Queensland

• Innovative Mining Solutions and Excellence in Occupational Health and Safety – Ernest Henry Mining’s geotechnical hazard management strategy

• Excellence in Environmental Management – Xstrata North Queensland.

■■ Australasian Institute of Mining and Metallurgy (AusIMM) Mineral Industry Operating Technique Award

■■ Most Interactive Display Award – 2009 Xstrata Mount Isa Mining Expo.

■■ Transition to new environmental legislation at Xstrata Mount Isa Mines

We continue to operate within our current environmental licensed limits set by the Queensland Government and we are working with them to implement the upcoming changes to our environmental regulation. Read more about this on page 44.

■■ Mount Isa to Townsville rail corridor

One key issue affecting Xstrata’s north Queensland operations is the reliability of the Mount Isa to Townsville rail link.

In early 2009 during a particularly heavy wet season, significant outages on the rail link caused by flooding occurred at a time when our businesses could least afford delays in delivering commodities to international markets. Queensland Rail and Australian Railroad Group worked closely with Xstrata’s logistics department to minimise the impact associated with these rail outages.

We will continue to work with Queensland Rail and the Queensland Government on this issue.

■■ Industry participation

As a major player in the State and National mining industry we aim to positively influence the sustainability performance of the mining industry in Australia through our active participation in forums such as Minerals Council Australia, Queensland Resources Council and other industry organisations. Refer to page 13 for details on industry involvement.

However, as ore grades at Mount Isa continue to decline, higher volumes of ore will have to be processed in order to recover equivalent amounts of contained metal. This increase in processing will inevitably see an increase in the site’s energy consumption, making continued reductions in greenhouse gas emissions and carbon and energy intensity levels a significant challenge for the operation going forward.

The availability of a long term competitive energy solution is critical to the continued operation of Xstrata Mount Isa Mines and the future development of the north west Minerals Province by ourselves and others in the Northern Economic Triangle.

In late 2008, the Queensland Government in partnership with the Queensland Resources Council, commissioned an independent review into energy supply in north west Queensland. The Sims Review has been positive in highlighting the complexities of this issue and in assessing supply options for the region.

The review’s findings, released in May 2009, identified that a number of competitive energy solutions could underpin development in the region, including renewable energy sources such as wind, solar or geothermal. This is consistent with the Federal Government’s new legislation of ensuring 20% of Australia’s electricity supply comes from renewable energy by 2020.

Xstrata Mount Isa Mines supports the review’s findings and looks forward to working closely with the Queensland Government to progress its recommendations.

■■ National Pollutant Inventory (NPI) reporting

As the largest mining, processing and smelting operation in Australia, Xstrata Mount Isa Mines reported substantial decreases in five of the six emissions to the NPI database in 2008 and 2009 compared to the previous year.

We will continue to improve our emissions performance going forward and work with our regulators to ensure we remain compliant against legislative requirements. Our Smelter Emissions Project teams will also continue their focus on assessing the feasibility for capture and treatment of further sulphur dioxide (SO2) from the copper and lead smelters. Read more about the NPI and the Smelter Emissions Project on pages 52 to 53.

Copper Concentrator Electrical Maintenance Superintendent Geoff Gray (centre) received the Individual Award for Excellence in Training at the 2009 Mining Industry Skills Centre Conference and Training Awards


Governance structureXstrata Mount Isa Mines operates within the structure of Xstrata’s robust standards of corporate governance as set out in Xstrata’s Statement of Business Principles and sustainable development (SD) management standards. Further information about Xstrata’s governance mechanisms is provided in the corporate governance sections of the Group’s Annual Report and Sustainability Report.

This approach is supplemented by Xstrata Mount Isa Mines’ own Common Systems and policies in the areas of health and safety, environment, community, risk management, human resources and Sustainable Development, which ensure that clear and common standards, procedures and performance measures are applied across all sites for key SD areas.

Our SD performance is monitored and evaluated by Xstrata Mount Isa Mines’ SD Workforce Committees, which meet monthly to address issues and review SD performance across the site’s operations and projects. Through the Xstrata Copper and Xstrata Zinc Boards, the Business Unit’s SD performance is regularly reported to the Xstrata Executive Committee.

Sustainable Development assuranceXstrata Mount Isa Mines undertakes a combination of internal and external SD assurance activities to gain assurance that the requirements of the Xstrata Group’s SD Policy and Standards are being met. This includes the completion of specified internal and external audits against the requirements of the Xstrata SD Policy and Standards.

The process also ensures that SD targets for material issues have been identified, our monitoring systems are robust, and our reporting is material, accurate and timely (read more about the 2009 SD Audits on page 20).

In May 2009 the Department of Environment and Resource Management conducted an audit on Xstrata Mount Isa Mines’ operations. The purpose of this audit was to inspect and evaluate waste tracking compliance against the Environmental Protection (Waste Management) Regulation 2000.

Ethics LineThe Xstrata Ethics Line is a confidential facility operated independently by KPMG. The line provides employees and other stakeholders with a means through which they can report any breaches of Xstrata’s Business Principles, policies or prevailing legislation. A free phone number is provided in every country in which Xstrata has managed operations. The Free Phone number in Australia is 1800 987 310. The Ethics Line can also be accessed online via www.xstrataethics.com.

The Xstrata Ethics Line is promoted to all Xstrata Mount Isa Mines employees and contractors through the distribution of the Xstrata plc Business Principles booklet.

Human RightsAs part of the Xstrata Group, we endorse the principles set out in the United Nations’ (UN) Universal Declaration of Human Rights and the International Labour Organisation Conventions. Xstrata is a signatory to the UN Global Compact and has aligned its SD framework with 10 universally accepted principles in the areas of human rights, labour, the environment and anti-corruption.

We are committed to the rights of our employees and contractors to work for equal pay, to associate freely, to a safe and healthy work environment, to non-discrimination and fair treatment and to legal rights.

Xstrata Mount Isa Mines implements community relations strategies that ensure transparent and honest stakeholder engagement, and respect for cultural heritage, traditions and norms. Appropriate community grievance mechanisms are set up to protect these rights.

In areas where we employ security personnel (either directly or as contractors) to protect our people and assets, we ensure that human rights training has taken place and monitor compliance with our Business Principles, SD policy and standards, in line with Xstrata’s management standard for suppliers, contractors and partners.

Xstrata Mount Isa Mines ensures that all of its human resources employees are trained on human rights policies. In 2009 our security staff were trained on human rights policies. Xstrata Mount Isa Mines’ suppliers and contractors were not screened on compliance to human rights in 2009 however suppliers and contractors that accept a purchase order for the supply of goods and/or services are contractually bound to comply with the governing laws of Queensland, Australia.

Child and forced labourXstrata plc’s Business Principles uphold the elimination of all forms of forced or compulsory labour and stipulate that no form of child or forced labour will be tolerated. Our operations report the age of our youngest employee or contractor on an annual basis and are audited through the internal audit risk management program.

Governance and ethicsWe are committed to best practice in corporate governance, recognising that strong and

accountable governance is directly linked to our ability to manage risk, seize opportunities

and achieve optimal performance.


Governance and ethics

Principal membershipsXstrata Mount Isa Mines is a member of the:

■■ Queensland Resources Council (QRC)

■■ Minerals Council of Australia (MCA)

■■ Australasian Institute of Mining and Metallurgy

■■ Mining Industry Skills Centre (MISC)

■■ Skills DMC – National Industry Skills Centre (NISC)

■■ Australian Institute of Occupational Hygienists

■■ Queensland Minerals and Energy Academy (QMEA)

■■ Mount Isa Tourism Association

■■ Mount Isa Chamber of Commerce.

Xstrata Mount Isa Mines also supports the following:

■■ Australian Government Energy Efficiency Opportunities program (EEO)

■■ Annual Queensland Mining Industry Safety and Health Conference

■■ Annual MISC Queensland Training Conference and Awards

■■ MISC regional training group

■■ QMEA steering committee for Indigenous employment

■■ North West Queensland Indigenous Resources Industry Initiative – a collaborative partnership between the QRC, Queensland Government, Minerals Council of Australia and the Australian Government

■■ Southern Gulf Catchments Group

As a member of the Minerals Council of Australia (MCA), Xstrata Copper is a signatory to the MCA’s Enduring Value, the Australian Minerals Industry Framework for Sustainable Development. Enduring Value is the centrepiece of the industry’s commitment to achieving continual improvement in its environmental, social and economic performance, accountability, and ensuring that it operates in a manner that is attuned to community expectations. The framework aligns with global industry initiatives, such as the International Council on Mining and Metals (ICMM) Sustainable Development Framework Principles and builds on the Australian Minerals Industry Code for Environmental Management. Further information on this initiative can be found at www.minerals.org.au/enduringvalue/

There were no instances of corruption or bribery at our Mount Isa Mines operations in 2009.

We ensure that all relevant employees use the Delegated Authorities Manual that sets out the framework and controls for key decisions to be made in relation to financial matters. Further, the internal audit function regularly tests the adequacy of these controls particularly in relation to the procurement of goods and services. This ensures that business deals are always conducted in a competitive environment.

There were no legal actions for anti-competitive behaviour, anti-trust and monopoly practices at Xstrata Mount Isa Mines in 2009.

Public policy participation and political contributionsXstrata’s Business Principles prohibits political contributions of any kind. Xstrata plays an active role in a number of significant international and national industry organisations and multi-stakeholder groups, through membership, funding, provision of expertise and participation in committees and working groups, including membership of the International Council of Mining and Metals (ICMM) and the Extractive Industries Transparency Initiative (EITI).

In line with our policy Xstrata Mount Isa Mines did not provide any financial or in-kind contribution to political parties or individuals in 2009.

The Mining and Quarrying Safety and Health Act (1999) and Mining and Quarrying Safety and Health Regulations (2001) stipulates that all employees at our underground operations must be at least 16 years or older. In 2009:

■■ The age of our youngest Mount Isa copper operations employee was 17

■■ The age of our youngest Mount Isa zinc-lead operations employee was 18

■■ The age of our youngest work experience student was 15.

Bribery and corruptionXstrata’s Business Principles state that we do not offer, solicit or accept any form of inducement or bribe. Xstrata’s internal audit function, supported by KPMG, takes into account identified fraud and compliance risks associated with our key business activities, including the ethical performance expectations contained in our Statement of Business Principles.

In addition, our Fraud Policy explicitly states that Xstrata Mount Isa Mines will not tolerate any incidence of fraud committed by employees or others, either from within or outside the organisation and will take immediate and serious action against those persons committing a fraud, irrespective of length of service or position. It outlines the channels available for employees or others to safely and confidentially report fraud or other unethical behaviour that is contrary to the Xstrata Business Principles. In addition all employees receive a copy of the Fraud Policy.

QMEA Engineering Camp participants spent 10 days at the Xstrata Mount Isa Mines site to gain hands-on engineering work experience

Heavy Medium reject stockpiles at the Mount Isa zinc-lead operations’ Heavy Medium Plant



Our operations and economic contributionIn 2009, we continued to deliver significant economic, social and infrastructure benefits to the

Mount Isa community by generating employment opportunities, supporting local businesses,

funding community projects and contributing to government taxes and charges.

Our operationsOur long term objective is to make a meaningful and sustainable contribution to the economy of Mount Isa, which is closely linked to our sustainable development (SD) performance. As the largest mining and processing facility in Australia, Xstrata Mount Isa Mines is committed to sustainably managing its operations.

Our significant operational footprint is comparable to the sum of multiple individual mines and industrial facilities and consists of the:

■■ George Fisher underground zinc-lead mine (GFM)

■■ Mount Isa Copper Operations (MICO) – Enterprise and X41 underground copper mines and copper concentrator

■■ Black Star and Handlebar Hill open cut zinc-lead mines

■■ lead smelter

■■ copper smelter

■■ zinc-lead concentrator

■■ zinc filter plant

■■ administration and shared services.

Xstrata Mount Isa Mines’ copper operations use state-of-the-art mining and processing technology to produce approximately six million tonnes of copper ore annually from our world-class underground ore bodies.

In 2009 the copper operations produced 6 million tonnes of ore, 162,000 tonnes of copper in concentrate, and 214,000 tonnes of copper in anode. The copper concentrator and copper smelter have a 7.2 million and 300,000 tonnes per annum capacity respectively.

Our Mount Isa zinc-lead operations also use state-of-the-art mining and processing technology to produce 7.4 million tonnes of ore annually from our world class underground and open cut ore bodies. In 2009 the zinc-lead operations produced 324,000 tonnes of zinc in concentrate, 146,000 tonnes of lead in bullion, and 243 tonnes of silver in bullion.

The zinc-lead concentrator and lead smelter have an 8 million and 175,000 tonnes per annum capacity respectively.

The $120 million zinc-lead concentrator expansion project, designed to increase ore production from 6.5 Mtpa to 8 Mtpa, was fully commissioned in December 2009. The concentrator, which now incorporates a new flotation circuit and ball mill, is scheduled to mill 8 Mtpa for 2010, 2011 and 2012.

Please refer to the Investing in the future section on pages 16 and 17 for more details on Xstrata Copper and Xstrata Zinc’s capital projects.

Net salesInformation on Xstrata Copper and Xstrata Zinc’s net sales for their Mount Isa operations can be found in Xstrata plc’s Annual Report 2009. Please refer to www.xstrata.com/publications/financial.

Direct economic contributionDuring 2009 Xstrata Mount Isa Mines contributed almost $2 billion to the Queensland economy. This included employment of 4,083 people; consisting of 3,362 employees and 721 contractors. Please refer to the economic contribution table below for a breakdown of expenditure by type.

Markets and customersIn addition to domestic sales, Xstrata Mount Isa Mines serves 16 countries in five markets including:

■■ North Asia and South Asia, including China, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand

■■ Europe, including Germany and Spain

■■ United Kingdom, England.

Copper cathode is exported to Asia and also sold domestically in Australia. Copper and zinc concentrates are sold to India, China, our crude lead to England, and our tankhouse slimes to Germany. Zinc concentrates are also sold in the domestic market.

During 2009 our products were sold globally to six major customers:

■■ 130 tonnes of copper, 4,400 tonnes of zinc and 152,000 tonnes of lead were delivered to Europe

■■ 179,000 tonnes of copper and 194,000 tonnes of zinc were delivered to Asia.

In addition we achieved the following domestic deliveries:

■■ 98,000 tonnes of copper delivered

■■ 71,000 tonnes of zinc and 2,600 tonnes of lead were delivered.

Economic contribution 2009

Type of expenditure Expenditure

Wages bill $396 million

Apprenticeship and youth training opportunities $16.8 million

Purchasing regional goods and services (including 33% spent with local suppliers) $435 million

Purchasing goods and services within Queensland $851 million

Rates to local councils $0.8 million

CSI contributions $4.1 million

Utility charges (rail, power and water) $164 million

Government taxes and charges $73.8 million

Total $1,915 million


Our operations and economic contribution

Infrastructure for public benefitIn partnership with the Mount Isa City Council, and in response to feedback from our 2007 Community Attitudes Survey, Xstrata Mount Isa Mines helped to establish a new family recreational park in Mount Isa.

In 2009 we contributed $500,000 (in addition to the $500,000 provided in 2008) in funding towards the final stage of development of the $4.25 million Mount Isa Family Fun Park. Our total contribution of $1 million complemented Council’s $1.5 million contribution and was leveraged by a $1.5 million contribution from the Queensland Government. The park was officially opened on 5 June 2009 as part of the Queensland 150th birthday celebrations. For further information, please refer to the case study on page 33.

Late in 2009, the Mount Isa Mines copper operations also entered into a partnership with the Queensland Government’s Department of Health to contribute $2 million towards the construction of a new Dental Health Building and training centre. This social infrastructure initiative forms part of the Queensland Government’s $65 million redevelopment of the Mount Isa Base Hospital, and construction on the Dental Health Building is expected to commence in mid-2010.

Financial assistanceXstrata Mount Isa Mines received the following financial assistance from government and other organisations in 2009:

■■ $325,000 from the Federal Government (Department of Education Employment and Workplace Relations) towards the STEPers (Structured Training Employment Program Employment Resource Services) program and $31,000 for the National Indigenous Cadetship Support program in Mount Isa. (Further information about these programs can be found on page 36 in the Sustainable Communities section of this report.)

■■ $396,000 from the Mining Industry Skills Centre.

■■ $266,000 from Queensland Apprenticeship Services.

Investing in the futureXstrata continues to strengthen its investment in the future of Mount Isa through the following planned projects for 2010.

Xstrata Mount Isa Mines copper and zinc-lead operations

Continuing the Smelter Emissions Project across the Xstrata Mount Isa Mines copper and zinc-lead operations to characterise smelter emissions, identify opportunities to further improve the capture and treatment of emissions, and design and implement operational and engineering controls to realise those opportunities.

Local suppliersXstrata Mount Isa Mines supports local businesses by consciously sourcing goods and services from local suppliers wherever possible. In 2009, the combined expenditure on regional goods and services was approximately $435 million, which can be grouped into three major categories: utilities, freight and logistics; mining consumables; and process consumables and on-site support services. Please refer to page 15 for more information.

We recognise the value that can be delivered to the local economy through our activities and wherever possible, encourage the development and use of local suppliers and contractors. We define a ‘local’ supplier as a supplier from the nearest regional centre with proximity to our mining operations. In 2009, around 33% of Xstrata Mount Isa Mines’ total expenditure for contracted services was with local suppliers.

Our policy is to source local suppliers who provide value for money and quality. We also assess businesses based on their involvement in community support programs or local social initiatives. All suppliers and contractors are provided with a copy of Xstrata’s Business Principles so they are aware of our core values.

Through our sustainable development (SD) management standards we require our suppliers to identify potential SD risks associated with their operations and minimise any adverse consequences of these risks. In addition to local suppliers, we also use the services of large national and international suppliers to service our operations.

Xstrata Mount Isa Mines contributed $1 million during 2008/09 to help establish a new family recreational park in Mount Isa


Our operations and economic contribution

In 2009, Xstrata Mount Isa Mines invested around $16 million on a range of initiatives to reduce fugitive emissions and design and implement operational and engineering controls to collect and reduce off-gases produced from each vessel. The team will work with the operation and maintenance teams to monitor the effectiveness of these systems. Please refer to check pages 52 and 53 for more information.

Mount Isa copper operations

Xstrata Copper’s capital projects in 2009 totalled $163.5 million, with $126.9 million spent on sustaining projects and $36.6 million spent on expansionary projects. These projects include:

Mount Isa Open Pit scoping study

Completion of the Mount Isa Open Pit scoping study, which demonstrated that open cut mining to extract copper ore may be viable in the previously-worked Black Rock area. A prefeasibility study commenced in 2009 to further evaluate the opportunity. If the study is successful, a feasibility study will commence in 2010.

1100 Orebody scoping study

A scoping study commenced in 2009 to evaluate potential caving opportunities on the 1100 orebody halo (the mining lease that Xstrata Mount Isa Mines is located on).

By-product opportunities

A separate scoping study was completed in 2009 evaluating potential for by-product production of cobalt by reprocessing waste streams from the existing copper concentrator. The study indicated that cobalt

production may be viable and a prefeasibility study commenced late in 2009. In addition to the cobalt, the proposed plant would extract residual copper from the waste streams. If the study is successful, a feasibility study will commence in 2010.

Mount Isa zinc-lead operations

Xstrata Zinc’s capital projects in 2009 totalled more than $140 million, with more than $66 million spent on sustaining projects and over $74 million on expansionary projects. These projects include:

■■ Investigating the feasibility of a northern extension of the Handlebar Hill open cut mine.

■■ Continuing a feasibility study to investigate the expansion of the existing Black Star open cut mine with the potential to produce zinc ore.†

■■ Continuing a feasibility study to investigate the expansion of the George Fisher mine with the potential to produce zinc ore.†

■■ Undertaking a scoping study to investigate the best process route for sideritic zinc ore in and around the existing open pits on ML8058 (the mining lease that Xstrata Mount Isa Mines is located on).

In 2009, Xstrata Zinc commissioned the $120 million zinc-lead concentrator expansion to increase production from an average of 6.5 Mtpa to 8 Mtpa.

† Both projects are part of an overall value adding strategy to increase zinc production from current assets and further the strategic growth of our north Queensland operations. The Black Star Open Cut Deeps expansion feasibility project is a current feasibility study into a deepening project for increased tonnes in 2011 and 2010 and the George Fisher Mine feasibility study underway is investigating an increase in hoist capacity from 2012.

New floatation cells constructed as part of the zinc-lead concentrator expansion project

Major suppliers – Mount Isa Mines copper operations

Utilities and freight:■■ Santos■■ CS Energy■■ APA Group■■ Queensland Rail■■ Toll Logistics

Mining consumables:■■ Shell■■ Mobil Australia■■ Caterpillar■■ Sandvik Tamrock■■ Atlas Copco■■ Komatsu■■ Michelin■■ Bridgestone

Process consumables:■■ Donhad■■ SNF Flowmin ■■ Unimin■■ Coogee Chemicals■■ Growth Asia■■ ANI Bradken

On site support services:■■ Downer Engineering –

Engineering Services■■ Gemini Medical Services■■ Secure Corp – Security Services■■ Cleanaway – Waste

Management■■ Huddy’s Mining Services■■ PYBAR■■ Skilled Group Limited■■ Mine Site Technologies Pty Ltd

Section

Terry Hill, Timberman, waits to start shift at Enterprise Copper Mine



Health and safetyOur objective is to create and sustain injury-free, safe work environments for everybody in our workplaces. To achieve this we make our management accountable for safety performance, train our employees to improve their safety knowledge and skills and make them aware that they have a responsibility to themselves, their family and friends to work and behave safely.

We also ensure that every task undertaken in our workplace has a safe system of work identified and our people have tools and equipment that are fit for purpose and well maintained to complete tasks safely and productively. Furthermore, our regular health assessment programs monitor our employees’ health, wellbeing and fitness for work.

Xstrata Mount Isa Mines uses a risk management system to identify, assess and eliminate or control risk. When an unsafe condition is identified or when a safety incident, such as a High Potential Risk Incident (HPRI), occurs it is investigated immediately and action is taken to eliminate the risks involved. Safety auditing occurs regularly across our business to improve safety standards and practices and our safety performance, safety initiatives and issues are regularly communicated to all of our people.

Our challengesImproving risk management strategies and systems by identifying all risks and foreseeable emergencies and implementing effective controls continued to be a primary focus in 2009. Our approach is designed to ensure that all risks, in all aspects of our operation, through all life cycles of mining, are identified, risk assessed, eliminated or controlled and monitored. This is achieved through applying a consultative risk

management system, compliant with AS-4360 Risk Management and supported by tools that foster the consideration of risk at task, process and business levels. In 2009 we subjected our risk management systems to external review and received good practice and leading practice recognition for elements of the system and application across our operations.

With the Global Financial Crisis impacting 2009, our review of training programs and initiatives heightened, with our focus on understanding our skills requirements, identifying and reviewing training requirements, selecting the right training delivering quality outcomes. The New Starter Training Centre for our Mount Isa Copper Operations covering all core requirements of working in an underground mining environment was in operation for a full year in 2009 and inducted 651 workers.

The occupational health and safety component of our sustainable development (SD) system continued to be subjected to both internal and external audits in 2009. Audit results identified many positive and leading practices in health and safety across Xstrata Mount Isa Mines and positive improvement opportunities to be implemented and shared with the entire business. Read more on this in the Audit section on page 20.

Performing safelyXstrata Mount Isa Mines values the health and safety of its people. Safety performance is tracked using the following measures:

■■ Total Recordable Injury Frequency Rate (TRIFR), which includes all injuries except first aid treatments

■■ Lost Time Injury Frequency Rate (LTIFR)

■■ Disabling Injury Severity Rate (DISR), which records the number of days lost or on restricted duties per million hours worked.

Xstrata Mount Isa Mines copper operations

The copper operations continued to show improvement in safety performance in 2009. The operations achieved the TRIFR target of < 10 with an 11% improvement on 2008 and achieved 4.8 million hours lost time injury free in the first half of the year. Our copper operations were not successful in achieving their DISR or LTIFR targets of < 94 and < 0.5, recording 175.04 and 1.05 respectively. Overall however, significant improvements against all these measures have been achieved since 2003.

Our Mount Isa copper operations also analysed the causal factors of lost time, restricted work and medical treatment injuries in 2009. Contusions and lacerations to hands and fingers and musculoskeletal injuries represented the majority of these injuries.

Initiatives implemented in 2009 continued to build on strategies from previous years, including our ergonomics task force, increased workplace observations and improved incident investigation quality with more focus on the identification of contributing factors and corresponding actions to prevent recurrence. Our Occupational Therapist continued to be involved in serious musculoskeletal incident investigations in 2009 and we established targets for attendance and completion of the multi-disciplinary incident investigation training, a diploma level training course for our safety professionals and key line personnel.

Workplace health and safetyEnsuring the health and safety of our employees and contractors in the workplace is of primary

importance to Xstrata Mount Isa Mines. Zero harm is our goal and we believe that all work-related

incidents, illnesses and injuries are preventable.


Workplace health and safety

Mount Isa zinc-lead operations changing to new site use only clothing in November. The clothing is worn by all personnel within all operational areas and is stored and laundered on site. This reduces potential hygiene risks not only for Xstrata on-site personnel but to the Mount Isa community.

Safety leadership

Improvements to our approach on ensuring effective safety leadership continued during the year. The Safety Profile and Mature Leadership project is aimed at improving the overall safety culture and leadership effectiveness within Xstrata Zinc. It looks at both entry level assessments for potential employees and the development of leadership capabilities and mentoring programs for personnel in supervisory and higher roles within the organisation. Both phases involve assessing the links between reasoning ability, personality and cognitive maturity. The program commenced in 2008 and continued to be implemented throughout the Mount Isa zinc-lead operations in 2009. Further work on the program will continue in 2010.

Xstrata Mount Isa Mines zinc-lead operations contributed funding for the development of the Underground Drilling and Blasting Safety DVD, a joint venture with the CSIRO, Curtin University and the University of Western Australia.

AuditsInternal risk audits, key common system audits and regulatory audits continued to be major activities in 2009. This included but was not limited to water supply loss, winder management and fire systems.

In November 2009, the Xstrata Copper SD Management System was subjected to an external audit. This was conducted by four qualified auditors over a 10 day period against the 17 Xstrata SD Standards using internationally recognised criteria. The scope and timing of the audit allowed auditors to verify system compliance in the operating areas. Fifteen best practices and three leading practices were identified throughout the audit which is a commendable effort.

Our copper operations have developed SD Action and Implementation Plans to address feedback and opportunities to enhance existing systems. Our copper operations aim to achieve a score of 80, which is in the ‘good’ band of performance during the next third party SD Audit which is scheduled for 2012.

For Xstrata Zinc, the SD assurance aspect including internal and external auditing remains a key component of our system

Xstrata Mount Isa Mines zinc-lead operations

In 2009 we were not able to meet our most important target of being a fatality free mining operation. Tragically, a fatal incident occurred at George Fisher Mine when a loader entered a stope causing the loss of a valued long-term employee, Pekka Tuppurainen. Following this incident mid-year, a contractor was involved in a single vehicle accident when travelling down the George Fisher underground decline resulting in serious injury. Since this time,

many changes have occurred both within the mine and within the mining industry in Queensland. In response, we are doing everything possible to establish and maintain safe work environments and further changes to both systems and resources will be made in 2010 to continue to monitor and review our practices.

Our Mount Isa zinc-lead operations undertook many safety initiatives to improve our health and safety performance. The completion of the ‘Site Use Only’ clothing project was a significant milestone in 2009 with the entire

0

Injury performance – Mount Isa Mines copper operations

number per million hours worked

30

10

5

20

25

15

2009200820072005 2006

TRIFR LTIFR

19.5

10.4

9.3

19

20

0.6

0.5 1.05

0.82.

3

02005* 2006* 2007 20092008

Injury performance – Mount Isa Mines zinc-lead operations


30

5

15

25

20

10

TRIFR LTIFR

23.8

13.1

17.9

22.2

17.6

0.8

0.5 2.

13.3

2.8

02005 2006 2007 20092008

Disabling injury severity rate† – Mount Isa Mines copper operations


300

50

150

200

250

100

62

98.8

175

66.7

230.

7

02005* 2006* 2007 20092008

Disabling injury severity rate† – Mount Isa Mines zinc-lead operations


300

50

150

200

250

100

67.5 8

0.8

141.

4

123.

2

210

* In 2005 and 2006 the Mount Isa zinc-lead operations’ LTIFR, TRIFR and DISR statistics included Bowen Coke Works.

† Previously Xstrata Zinc reported DIFR in 2005 and Xstrata Copper reported DIFR for years 2005 and 2006. We have now restated those years to show the DISR results. The Disabling Injury Frequency Rate (DIFR) measures the number of disabling injuries x 1,000,000 divided by the number of hours worked, the Disabling Injury Severity Rate (DISR) measures the number of disabling injury days x 1,000,000 divided by the number of hours worked.



development. In 2009, this involved completing an internal audit on key components of the SD Management System in two phases; the first assessment held in March and the second assessment taking place in November. As part of this process a training and development session was undertaken for the Xstrata Zinc Management teams and personnel identified as key SD implementers. It is planned that this focus will allow our operations to develop our systems and practices to ensure visible and proactive leadership in Sustainable Development.

Contractor managementWith contractors representing almost 25% of our workforce, Xstrata Mount Isa Mines’ key focus in 2009 remained on continuing to work with contracting firms to assist them to develop their own safety management standards.

An upgrade to the Xstrata contractors SD website was made early in 2009. Xstrata-engaged contracting firms now have access to all site level SD documents to not only improve their understanding of our requirements but to enable them to use the information to build their own systems in line with Xstrata’s requirements. This work builds on a program initiated in 2006 to improve SD standards of contractors while working on site.

In 2009 Xstrata Mount Isa Mines zinc-lead operations conducted 14 contractor audits to ensure continual improvement of the contracting firm’s ability to develop their SD management systems to the same level as Xstrata and enable a continual improvement of our health, safety, environmental and community performance. Contractor engagement surveys were also completed by our key contractor groups in 2009 to further develop an understanding of our contractors’ workforce.

Furthermore, contractors that perform any work on site must be accredited to do so. The accreditation application process includes questioning the contractor as to whether their employment practices comply with relevant Federal and Queensland Government legislation. If the accreditation application is successful, then the contractor is obligated to comply with the requirements of all applicable laws including the Mining and Quarrying Safety and Health Act (Qld) 1999 and the Mining and Quarrying Safety and Health Regulations (Qld) 2001 which take precedence over any direction given to, or obligation undertaken by, the contractor. All contractors are required to adhere to Xstrata’s Business Principles and Sustainable Development Policy and Standards.

case study

Hydraulic Semi-Automatic Chain Control SystemThe Hydraulic Semi-Automatic Chain Control System was

developed at Xstrata Mount Isa Mines following an incident

that occurred at the operation in January 2009.

The incident demonstrated both the risk of personal injury during a process involved in the delivery of wet ore to the U62 and R62 Copper Feeder Rooms, and the significant time taken to set up the chain block and slings as part of this process. An engineering solution was deemed the most appropriate control.

The Hydraulic Semi-Automatic Chain Control System on the U1A feeder swing chute was designed, developed and installed in February 2009. The system aimed to reduce the risk to personnel and control the flow of wet material.

Tradesmen working on the first prototype identified an opportunity to improve the original design and this was installed on the U1B feeder swing chute in March. Using one hydraulic ram, this removed the need to lift and lower the chute. Both applications are being trialled for effectiveness, operational ease and safety.

By automating the process, the risk of personal injury resulting from manual handling has been eliminated as there is no preparation time involved in choking the feeder, thus greatly increasing the safety of personnel.

Xstrata invested approximately $30,000 on the system, and it was a finalist in the ‘Innovations’ category at the Queensland Resources Council Safety and Health Conference in August 2009.

The hydraulic semi-automatic chain control system on U1A feeder chute developed to control the flow of wet ore


Crisis and emergency preparationTo ensure we are prepared to respond to a range of operational challenges, we continued to test the North Queensland Response and Recovery Manuals with a number of responses in 2009.

Xstrata Mount Isa Mines coordinated a Mines Rescue Challenge at Outback at Isa and in total, seven teams from mining companies across north west Queensland took part in the competition.

Teams were faced with challenging emergency scenarios. Each scenario was designed around real-life emergency situations that could potentially happen on or around a mine site. Each team was judged on its proficiency at

dealing with the situation which tested their ability to implement a range of drills including accident rescue, multi-casualty, search and rescue and vertical rescue.

Occupational healthWe value the health and wellbeing of our workers and we encourage our employees and their families to maintain a healthy lifestyle. In 2009 health promotion campaigns were conducted across Xstrata Mount Isa Mines’ copper and zinc-lead operations. The campaigns were coordinated by our health risk management team in conjunction with Gemini Medical Services. These included programs on obesity, smoking, alcohol abuse, fatigue, nutrition, sleep apnoea, mental health and shift work. We also developed the Health Promotions website during 2009 to provide information on health issues (refer to case study on page 24).

No new occupational diseases were recorded at our Mount Isa zinc-lead operations.

Monitoring ProgramsPrevention of harm due to hygiene hazard exposure remains a key focus for Xstrata Mount Isa Mines. In 2009 we continued our extensive monitoring programs for dust contaminants, Diesel Particulate Matter, noise, lead, arsenic, radiation, vibration and potable water.

A new shift sampling log was introduced by occupational hygiene during 2009. The log is completed by each worker who participates in our dust and Diesel Particulate Matter sampling program and records tasks, task

location, along with environmental conditions experienced by the worker on their sampled shift. The shift log information has assisted occupational hygiene determine exposure sources which can then be targeted for control.

Xstrata Mount Isa Mines invested more than $500,000 on occupational hygiene sampling and analysis during 2009.

Sampling and analysis

Potable water

Potable water is sampled from drinking water sources across the lease to ensure water provided to our workers is safe and adheres to Australian Drinking Water Guidelines. Water samples undergo a range of chemical, physical and biological tests which measure for metals, chlorine, bacteria, pH and turbidity amongst others. An annual sampling program is established to ensure all designated drinking water sites on the lease are maintained within safe limits.

Noise

Workers at Xstrata Mount Isa Mines participate in personal noise sampling. Noise results are used to risk rank workgroups in relation to their noise exposure. From here noise abatement programs can be prioritised. Noise data is also used to determine appropriate hearing protection requirements and also influences the selection of plant and equipment.

A Hearing Conservation Program will be rolled out across Mount Isa Mines during 2010. Components of the program will include:

■■ the identification of noise sources and noise hazard zones

■■ noise control strategies to reduce noise exposure to workers, including our ‘buy quiet’ policy relating to the purchase of new plant and equipment

■■ measurement of noise exposure to workers

■■ health surveillance involving periodic audiometric screening to assess hearing capacity

■■ the fitting of Hearing Protective Devices which are commensurate with the level of noise exposure

■■ education and training.


Occupational illnesses by type – Mount Isa zinc-lead operations

2009

Noise Induced Hearing Loss 6

Musculoskeletal Injury 0

Occupational illnesses by type – Mount Isa copper operations

2009

Noise Induced Hearing Loss 9

Musculoskeletal Injury 1

A Mine Rescue team member extinguishes a fire as part of the 2009 Mine Rescue Challenge


area for primary smelting, the provision of an arsenic awareness brochure and arsenic awareness training. Arsenic exposure continues to be monitored through arsenic in urine analysis and workers showing elevations are placed on a management program. The management program has been effective in reducing workers long term exposure to arsenic.

Lead

At Xstrata Mount Isa Mines an elevated blood lead level is taken seriously. This is evident in the strict protocols that are established to reduce lead exposure to employees in the workplace. Biological and dust monitoring is conducted in accordance with The National Occupational Health and Safety Commission (NOHSC) standard and recognised occupational hygiene standards.

In 2009 there was one instance of an employee in the lead smelter exceeding the national medical removal limit. In the five-year period from 1998–2002, there were 32 reported instances of NOHSC elevations. However, in the current seven-year period from 2003–2009 we have had 13 reported instances of NOHSC elevations.

Xstrata Mount Isa Mines sets its medical removal limit below this standard of 50 micrograms per decilitre (μg/dL). Employees with a blood lead concentration of 40 μg/dL or greater must be removed from the workplace until levels return below 30 μg/dL. In the lead smelter, where the lead is more concentrated, the limit is 45 μg/dL or greater, and will reduce to 38 μg/dL in 2010 for male employees. Pregnant employees should not have a blood lead concentration that exceeds the national standard of 10 μg/dL.

All Xstrata Mount Isa Mines employees are required to have venous lead in blood tests at frequencies which are determined by the area they work in, their previous result, gender and reproductive capacity. This form of biological sampling provides an accurate measure of a worker’s exposure to lead. A total of 8,474 blood lead samples were taken from employees during 2009 providing an accurate evidence base in order to manage lead exposure.

All workgroups which are exposed to 80 dB(A) or greater will be enrolled in the Hearing Conservation Program. The frequency between audiometric assessments will depend on workers last test result and also the level of noise exposure in their work environment.

These measures are designed to preserve the hearing health of our workers and move toward our goal of Zero Harm.

Dust contaminants and Diesel Particulate Matter

Dust exposure in the work environment is measured through workers participation in the inhalable and respirable dust monitoring program which occurs in the operational areas of Xstrata Mount Isa Mines. Inhalable dust is the dust that enters the nose and mouth.

Dust contaminants analysed from inhalable dust samples include lead, arsenic, cadmium, copper, and thallium. Respirable dust particles range from 0.1 to 10 microns and have the potential to travel and deposit in the deep reaches of the lungs. Crystalline silica is analysed from respirable dust samples.

Diesel Particulate Matter (DPM) exposure continued to be monitored in our underground operations at Xstrata Mount Isa Mines throughout 2009. DPM and dust contaminant exposure to workgroups is risk ranked to enable control strategies for exposure sources to be prioritised. As with all hygiene hazards, our goal is to reduce worker exposure to as low as reasonably practicable.


Arsenic

At Xstrata Mount Isa Mines copper operations, arsenic can be found in all copper process areas; however it is potentially most hazardous during the copper smelting process.

A broad range of control strategies were implemented by the copper smelter during 2009 with more planned for 2010 which aims to reduce the arsenic exposure to workgroups identified as being most at risk. Some of the control strategies include engineering and plant design changes, the enforcement of a mandatory respirator zone, establishment of a designated smoking

“At Xstrata Mount Isa Mines an elevated blood lead level is taken seriously. This is evident in the strict protocols that are established to reduce lead exposure to employees in the workplace.”

Occupational hygiene sampling and analysis

Mount Isa copper

operations

Mount Isa zinc-lead

operations Total

Type of sample collected and analysed

Potable Water (microbiological and metals) 547 557 1,104

Noise 106 98 204

Airborne Dust (Inhalable, Respirable, Static and Asbestos)

314 358 672

Diesel Particulate Matter (DPM) 39 26 65

Lead in Blood 3,898 4,576 8,474

Arsenic in Urine 1,290 - 1,290


case study

Health Promotions intranet pageXstrata values the health and wellbeing of our workers

and we encourage our employees and their families to

maintain a healthy lifestyle.

Launched in 2009, the Xstrata Health Promotions initiative involved the development of an online tool to assist employees in addressing general health issues. The Health Promotions page is published on the intranet sites of our north Queensland operations.

The Health Promotions page provides information on health issues such as common colds, headaches and fatigue, immunisations, medication use and general health and wellbeing.

The H1N1 Influenza strain (Swine Flu) pandemic led to a new focus for the Health Promotions page, with the inclusion of a dedicated information portal about the pandemic and direct links to government websites providing up-to-date fact sheets and other relevant information.

Xstrata utilised the local Gemini Medical Services’ ‘Feelin’ Fine in ‘09’ annual planner to create monthly topics for the Health Promotions page that coincided with the health topics included in the planner. For example, heat and dehydration was printed during September, which included information on protecting yourself from heat and dehydration, melanoma, the importance of water, sun protection, and an Xstrata Mount Isa Mines ‘Working in Heat’ powerpoint presentation.

The online tool provides employees with access to health information in a private and discrete manner. Should they wish to investigate health issues any further, they are able to contact the Gemini Medical Centre, a 24 hour on-site facility, to gain additional information or make an appointment to discuss their concerns further.

The Health Promotions initiative is expected to be an ongoing service for the life of the mine, and regular improvements will made to the intranet page.

New site only uniforms and on-site launderingA new style of uniform was introduced at the lead smelter in early 2008 and George Fisher mine, the zinc lead concentrator Handlebar Hill and Black Star open cut mine transitioned to the new uniforms on 25 November. The fluorescent yellow and navy colour has reflective stripping and will assist the site to manage both pedestrian visibility and to ensure work wear does not leave the site. Clear wording on the back of the overalls and shirts, as well as down the leg of pants clearly designates the clothing as site only. As part of our clean in/clean out procedures, the uniforms are laundered on site and returned to lockers prior to the next shift to reduce the risk of lead being taken into the community.

To ensure the mine met the laundering requirements a new laundry was installed. The new upgrades increased capacity at the clean in/clean out facility, which is designed to prevent work clothes being taken off site and into the local community. The industrial laundry upgrades were completed in July 2009 and now allow the facility to wash and dry up to 600 sets of clothes in 12 hours. In total, the laundry now houses four industrial washing machines, with two capable of washing a 100 kilogram load each. The laundry also boasts four 77 kilogram, one 55 kilogram and one 35 kilogram clothes dryers. In order to ensure the health and safety of the laundry staff, the washing machines are ergonomically designed and tilt forward, allowing for easy removal of uniforms without the risk of injury. Due to the size of the machines and the strict hygiene requirements all washing detergents and fabric conditioning agents are controlled through computerized dosing units from 1,000 litre pods. The automatic system also prevents spillage and manual handling issues associated with previous methods of manual loading. Another benefit of this upgrade is the capture and re-use of wastewater from the facility for on-site dust suppression of unsealed roads within the mining lease.

Together the new uniforms and laundry facilities ensure that clothing does not leave the mining lease from production areas via the 1,000 employees and 400 contractors using the clothing and the clean in/clean out facilities.


“The Health Promotions page provides information on health issues such as common colds, headaches and fatigue, immunisations, medication use and general health and wellbeing.”

Mount Isa Copper Operations employees donated funds to raise awareness for prostate cancer as part of a Health Promotions program barbeque


Earth Moving Equipment Safety Round TableXstrata became a founding member of the Earth Moving Equipment Safety Round Table (EMESRT) Underground Hard Rock mining group in 2008. As part of this we were involved in moulding its vision, purpose and scope, and in outlining an action plan for 2009.

2009 saw the development of four design philosophies; fire, equipment access and egress, manual handling and equipment drivability. These design philosophies will provide a communication tool and reference point for Original Equipment Manufacturers (OEMs) when re-designing existing earth moving equipment used in mining operations.

EMESRT’s 2009 activities were capped by a meeting with Sandvic and Atlas at their home factories in Scandinavia. This meeting provided the opportunity to introduce the EMESRT concept and approach to two major equipment manufacturers and begin an open dialogue aimed at improving our equipment’s usability and reducing the risks inherent with their design.

Xstrata Lead CommitteeIn 2009 a number of new initiatives were implemented by the internal Xstrata Lead Committee. Two significant improvements made during the year include completion of the Northern Gate laundry facility and the full implementation of the site only clothing for the lead operational areas.

Further initiatives implemented in 2009:

■■ On-site refuelling of vehicles was made possible through the addition of an unleaded fuel system, reducing the need for vehicles to leave site.

■■ A purpose-built blood sampling centre was constructed at the Northern Gate and at George Fisher mine maintenance workshop.

■■ Site-specific training was developed for living and working safely with lead. All aspects of lead through workplace controls, environmental and community aspects of lead management were included in the training package.

■■ Improvements to facilities to allow more vehicles to be serviced on site again reducing the need for those vehicles to leave site.

■■ Inclusion of the Living with Lead Alliance education material within new starters information packs and in entrance area information stands.

Job role criteriaThroughout 2009 the Xstrata Mount Isa Mines Job Role Criteria (JRC) tool continued to evolve into an interactive web-based resource. This reformatted resource provides an accessible, usable, and dynamic presentation of key information which our medical, rehabilitation, and operational staff will use throughout the injury management process.

The role library grew to over 200 roles in 2009 and the expansion of the current evidence base to include Thermal Work Limit (TWL), Manual Task Risk Matrix, Whole Body Vibration (WBV) data, and the review of 17 areas and roles across Xstrata North Queensland operations. The tool is scheduled to be rolled out during the second half of 2010.

Job Role Criteria was a finalist in the Excellence in Occupational Health and Safety category at the 2009 Australian Mining Prospect Awards.


Job Task EvaluationsTogether with Mount Isa Physiotherapy, Xstrata Mount Isa Mines employees developed the Job Task Evaluation process in 2007. During late 2007 the program was piloted with new starters for the Black Star open cut mine. In 2009 the program was fully launched within the zinc-lead operations as part of the recruitment process. This process is an important step forward for the mitigation of manual injuries within the workplace through either pre-existing conditions or a lack of job fitness. Prospective employees are taken through a series of physical scenarios located at the physiotherapy centre. The scenarios mimic conditions that would be found on the mine site so new prospective employees can be assessed for their fit for the workplace roles. Loader cabins, ladders, hoses and loose rock surfaces all feature in the assessment area.

As the program has developed the assessment area has been named the Work Hardening Centre at Mount Isa Physiotherapy as the concept has been enhanced to include rehabilitation exercises for those returning to work from injury. Built on physiotherapy and ergonomic principles, our Work Hardening Centre provides benchmark industrial rehabilitation and injury preventative services unique to Queensland. Throughout the design and workplace assessment process the program has been designed around the risk management approach to manual tasks. Qualified physiotherapists conduct each assessment and the program has been successful in ensuring that the right role is selected for the physical abilities of the personnel being assessed.

The new Northern Gate laundry facility was completed during 2009


Karen Hazlewood, Civil Engineer, is a participant in the Xstrata Graduate Program


Our peopleThe commitment and capability of our people is key to the ongoing success and sustainability of

Xstrata Mount Isa Mines. Our Human Resources (HR) strategy, and accompanying initiatives, supports

this requirement by developing individual capabilities and an organisational culture.

At Xstrata Mount Isa Mines, entry level wages are higher than the Australian minimum wage and are the same regardless of gender.

Employing locally

As part of our ongoing business strategy, we are committed to employing Mount Isa residents. The significant majority of Xstrata Mount Isa Mines workforce is employed on a permanent basis. However, the continuing national skills shortage has meant a small proportion of employees with management and professional skills were recruited from outside Australia.

The majority of our employees (> 99%) live locally in Mount Isa. For this reason, Xstrata Mount Isa Mines has not previously recorded the proportion of the workforce and senior management hired from the local community. In 2009, we began recording this information for all positions filled. Based on the data collected in 2009, we estimate that approximately 64%† (2,152) of our employees are hired from the local community.

In 2009, 1.25% (42) of our employees (excluding contractors) were foreign nationals who did not have permanent residence in Australia.

Diversity and opportunityIn line with Xstrata’s policies, Xstrata Mount Isa Mines seeks to employ a diverse workforce, to benefit from a varied range of skills, backgrounds and perspectives. We employ people based on the skills and experience required for each particular position, without discrimination according to gender, race, age, sexual orientation, religion, nationality or any other factor. Salaries are negotiated based on qualifications and experience, and are the same regardless of gender.

Non-discrimination policyAs outlined in Xstrata’s Business Principles, we value the contribution made by employees, and our policies and practices respect their personal dignity and rights. We do not tolerate any form of workplace discrimination, harassment or physical assault. No incidents of discrimination, harassment or physical assault were reported at Xstrata Mount Isa Mines in 2009.

Labour relationsAt Xstrata Mount Isa Mines we have a devolved management structure and there are various workplace relations models, including individual agreements and collective bargaining agreements in place.

In 2009, 1,446 employees (63%) in the copper operations and 741 employees (69%) in the zinc-lead operations were covered by collective agreements.

All employees are free to join a union of their choice subject to the existing Representation Order. Labour relations are a fundamental responsibility of operational management and we seek to have a direct relationship between our employees and line management founded on quality leadership, effective communication, mutual respect and trust.

We consult with employees in advance of any significant operational change. Minimum notice periods vary across our Mount Isa copper and zinc-lead operations and are specified in collective agreements.

The entire Xstrata Mount Isa Mines workforce is covered by formal joint management-worker health and safety committees (Mount Isa Sustainable Development (SD) Workforce Committees) that help monitor and advise on occupational health and safety programs. In 2009, these committees comprised 50% employees and 50% management, which included line supervisors, superintendents and managers.

EmploymentOur objective is to build the capability of our workforce through the realisation of the full potential of our employees, and therefore sustain our long term success as a company.

In 2009, Xstrata Mount Isa Mines provided jobs for 4,083 people (3,362 employees and 721 contractors). Our rate of voluntary employee turnover in 2009 averaged 8.75% (7.25% copper and 11.5% zinc), which is below the average turnover of 13.9% reported by Queensland participants in the Resources Industry Turnover Analysis.

Benefits provided to permanent employees at Xstrata Mount Isa Mines that are not provided to casual employees include paid leave provisions; external education assistance/tertiary education assistance; higher rates of superannuation; disability cover; and salary continuance.

The majority of our employees (97%) belong to accumulation style (defined contribution) superannuation funds. A small number belong to a defined benefit fund, which is held and maintained separately from Xstrata’s resources. Assets in the fund are currently greater than the vested benefits of the members. Benefits are payable based on the member’s final salary and the number of years of service with the company.

81% Employees – Nationals (3,320)

1% Employees – Foreign Nationals

(42)18% Contractors (721)

Employment profile*

* Based on total employees (including contractors)† Based on total employees (excluding contractors)


Our people

Training and educationWe provide our people with career opportunities through our HR Strategy and accompanying initiatives, and by embedding training and development into our culture. Development opportunities are discussed with employees in their annual performance reviews.

To ensure our employees have the appropriate levels of safety and health competency to perform their work activities and in line with our commitment to developing our people, Xstrata Mount Isa Mines invested $18.8 million on training locally during 2009. Of that, the copper operations invested $12.7 million with an average of $5,568 per employee and the zinc-lead operations invested $6.1 million with an average of $4,684 per employee and contractor.

Training Coordinators work closely with line management and supervisory staff to identify training requirements and gaps in knowledge. In 2009, all of our employees completed an annual performance evaluation review where training opportunities were identified as part of their professional development.

Our award-winning training systems continued to focus on delivering competency-based training for all workers. Training requirements identified during career planning, and leadership and professional development also formed part of the process.

Building leadership

Our 2009 Leadership Development Program attracted 574 participants in Mount Isa (copper 413; zinc 161). The program aims to articulate the role of the leader within the business and provide participants with the required skills. Modules included leadership, coaching for performance, planning and communication.

Xstrata Apprenticeship Program

Xstrata Mount Isa Mines runs the largest apprenticeship program in North Queensland. More than 200 apprentices were enrolled in 2009.

The Xstrata Apprenticeship Program is designed to enhance our maintenance programs and strategies. It is focused on providing real employment and skills opportunities for people living in the region and currently targets eight key trades.

In 2009, Xstrata Mount Isa Mines invested almost $7.1 million in apprenticeships and scholarships and recruited 71 apprentices plus 18 school-based apprentices into the business.

We have also developed competency-based programs to suit our growing business needs by upskilling our tradespeople and providing a supportive and communicative environment for the developing skills and needs of our apprentices.

In 2010, 54 offers have been made for apprenticeships, 11 for school based apprenticeships, and 5 for school based traineeships In addition to new apprentices, we also offer our existing employees, who are interested in moving into a trade field, the opportunity to undertake an apprenticeship. More than 200 employees are currently undertaking apprenticeships within our Mount Isa operations.

Our apprenticeship program is developed to suit our growing business needs by upskilling our trades people and providing a supportive and communicative environment for the developing skills and needs of our apprentices.

Developing vocational skills

Xstrata Mount Isa Mines works closely with key stakeholders in the community to provide real and meaningful vocational career pathways for individuals, in careers that reflect the needs of our business.

Our Vocational Skills Development Program targets secondary schools in the north west region and introduces students to opportunities and careers within the mining sector and provides on-the-job training.

Program initiatives include structured work experience and readiness programs, traineeships, lead involvement in the Queensland Academy of Minerals and Energy (QMEA), information programs and school-based apprenticeships.

In 2009 the Work Experience Program incorporated three programs; Work Experience Program, Skills for the Future Program and Gifted and Talented Program.

The Work Experience Program saw 91 Year 10–12 students from Mount Isa, Townsville and Brisbane placed into a variety of trade, engineering, administration and other roles for a one week period. In the Skills for the Future Program, 10 Year 10 students and 29 Year 9 students completed a variety of tasks

designed to give them an insight into trades and engineering skills. In the Gifted and Talented Program, 23 Year 7 students from Mount Isa primary schools participated in this mining industry information program aimed at increasing students’ awareness of roles in the mining industry.

In 2009, we hosted a very successful QMEA Engineering Camp, which involved 11 students and four teachers travelling to Mount Isa for an intensive 10 days of hands-on engineering work experience at the Xstrata Mount Isa Mines site. The program provided them with knowledge to help them make decisions about a career in the mining industry.

Xstrata Mount Isa Mines also awarded 16 bursaries worth $1,000 each to high performing secondary school students to assist with their education, and they participated in work experience at our site during their school holidays.

Developing professional skills

Xstrata Mount Isa Mines recruited 79 permanent graduates in 2009, based on demand within our operations. The Graduate Program provides employment and structured development opportunities for recent graduates and assists us to develop technical and leadership capability.

We also employed 71 university students in our Vacation Work Experience Program, based on demand in our copper and zinc-lead operations. Students worked across the operations and undertook assigned projects. The program provides excellent salaries as well as assistance with accommodation and transportation.

Thirty percent of the 2008/09 vacation program participants returned to Xstrata Mount Isa Mines as either a vacation student or graduate for the 2009/10 intake.

In 2009, we awarded 30 bursaries worth $8,000 each to university students to assist them with their education.

Electrical apprentices Clinton Elliott and Zeke Fortune at the Copper Smelter electrical workshop


Our people

Employees by employment contract Number Number

Permanent 2,051 1,063

Temp/Fixed Term 239 9

Total 2,290 1,072

Turnover profile by age and gender Female Male Total Female Male Total

Under 30 16 70 86 23 92 115

30 to 50 17 67 84 12 81 93

over 50 6 33 39 3 23 26

Total 39 170 209 38 196 234

Average training hours by employee Senior Management Workforce Senior Management Workforce

Average hours per employee/year 48.5 152.8 34 37.6

Average cost per employee $5,568 $5,568 $4,684* $4,684*

Training hours by role type Actual HoursAverage

Hours Actual HoursAverage

Hours

Executive Management 4 4 0 0

Senior Management 113 16 101 34

Management 7,548 50 437 49

Supervisors, administration, technical 54,902 80 12,358 39

Operational, production, maintenance 270,805 187 26,853 36

Total 333,372 146 39,750 37

Employees by age and gender Female Male Total Female Male Total

under 30 138 574 712 57 319 376

30 to 50 161 997 1,158 67 498 565

over 50 21 399 420 5 126 131

Total 320 1,970 2,290 129 943 1,072

Employees by employment type Number Number

Full Time 2,105 1,063

Part Time 185 9

Total 2,290 1,072

Turnover profile by role typeNumber of

leaversNumber of employees

Percentage Turnover

Number of leavers

Number of employees

Percentage Turnover

Executive Management 0 1 0.0% 0 0 0.0%

Senior Management 0 7 0.0% 1 3 33.3%

Management 10 150 6.7% 2 9 22.2%

Supervisors, administration, technical 65 686 9.5% 85 319 26.7%

Operational, production, maintenance 134 1446 9.3% 146 741 19.7%

Total 209 2,290 9.1% 234 1,072 21.8%

Ratio of men and women Women Men Women Men

Senior Management 13.9% 86.1% 0.0% 100%

Workforce 14.0% 86.0% 10.9% 89.1%

Employees by role type and gender Female Male Total Female Male Total

Executive Management 0 1 1 0 0 0

Senior Management 0 7 7 0 3 3

Management 22 128 150 0 9 9

Supervisors, administration, technical 225 461 686 62 257 319

Operational, production, maintenance 73 1,373 1,446 55 686 741

Total 320 1,970 2,290 117 955 1,072

Copper operations Zinc-lead operations

* The zinc-lead operations average cost includes contractors in the cost per employee.

Sustainable communities


Tracy Nemo tucks into a healthy breakfast at the Brilla Brilla Community Centre as part of the Breakfast Program funded through the Xstrata Community Partnership Program North Queensland (XCPPNQ)


Xstrata Mount Isa Mines is proud of its reputation for social responsibility. We are committed to contributing to the social, economic and institutional development of the Mount Isa community to improve the quality of life for all.

As outlined in our Community Policy, our community relations practices are characterised by open and honest engagement with all our stakeholders through effective, transparent consultation and communication. We consult and communicate with stakeholders regularly in culturally appropriate and respectful ways, using materials that are easily understood. We also provide feedback to issues raised in a similar way.

We record, monitor and address community complaints and we establish fair and equitable processes for engagement with Indigenous and local communities including, where relevant, free prior informed consent.

Xstrata Mount Isa Mines’ CSI programs are developed in line with Xstrata’s Sustainable Development (SD) Policy and Standards and form an important part of our work with local communities.

Through these programs we develop community partnerships in the areas of art and culture, education, enterprise and job creation, environment, social and community development, and health. These community partnerships contribute to the development of sustainable communities and emphasise local capacity building. We also support local businesses and employ local people where possible in order to strengthen Mount Isa’s local economy and the north west region.

Key community challenges for our Mount Isa operations are:

■■ Building community capacity to improve social services and facilities.

■■ Ensuring Indigenous cultural heritage is not affected by our mining operations.

■■ Increasing emphasis on and awareness of our programs and their long-term, beneficial impacts on the development of our communities.

Stakeholder engagement and consultationXstrata Mount Isa Mines encourages dialogue with our stakeholders and we integrate stakeholder feedback into business planning and strategy. Stakeholder feedback is used to identify and manage risks and opportunities, guide our strategy and business activities, protect and develop our corporate reputation, strengthen stakeholder relationships, manage expectations, respond to concerns and share our plans for the businesses.

Engaging with our local community is critical to understanding community priorities and sharing clear, open and honest information on our activities is also equally important to our social licence to operate.

We systematically identify our external stakeholders at a site and operational level on a regular basis. Proactive communication occurs with external stakeholders who are concerned with or affected by our SD performance. Stakeholder engagement is conducted in an equitable, effective and culturally appropriate manner with the maximum transparency that is commercially possible.

Through internal assessments of key groups, our membership of various associations, and engagement with interested parties, Xstrata Mount Isa Mines has identified its stakeholders as:

■■ residents of Mount Isa

■■ Xstrata employees and contractors, unions and other organisations that represent these groups

■■ Traditional Custodian groups in north west Queensland, including the Kalkadoon

■■ business partners, including joint venture partners, suppliers and customers

■■ local, state, and federal governments and their agencies

■■ inter-governmental bodies and organisations

■■ local schools

■■ local, regional, national, and international media

■■ non-government and community-based organisations

■■ Xstrata Community Partnership Program North Queensland partners.

Sustainable communitiesThrough our Corporate Social Involvement (CSI) program, we develop community partnerships that

contribute to the development of sustainable communities and emphasise local capacity building.

We believe that the wellbeing of our employees, their families and the residents of Mount Isa is

crucial to maintaining our social licence to operate.

“ Engaging with our local community is critical to understanding community priorities.”



its efforts in the community have been successful and to identify emerging areas where additional action may be needed. The CAS is an ongoing initiative undertaken every two years to track resident opinion and community concerns over time.

An independent research firm surveyed over 300 residents in Mount Isa on their opinions of Xstrata’s community support programs, major social and environmental issues facing the community, the dissemination of information from Xstrata Mount Isa Mines and the best way for Xstrata to communicate news and information to Mount Isa residents.

From this research we have identified five key areas of concern facing the Mount Isa community and have developed an action plan for each of these key items (see page 33).

This feedback is also being used to review and refine, where appropriate, our operational responses to these issues and the 2010 stakeholder engagement plan. We look forward to implementing these suggestions as part of our commitment to continuous improvement.

Engagement with stakeholders in 2009

■■ Distributing the Xstrata Mount Isa Mines Sustainability Report 2008 to employees and key stakeholders.

■■ Conducting three Community Information Sessions to share information on Xstrata’s operations and allow questions from community members.

■■ Conducting a bi-annual Community Attitudes Survey of 300 Mount Isa residents.

■■ Mailing 10 issues of the Mine to Market newsletter to all employees and stakeholders.

■■ Contributing articles to, and advertising in, the North West Star, and facilitating interviews with local radio outlets, to keep members of the community informed about our operations.

■■ Hosting five anniversary dinners for long serving employees celebrating 20, 30, 40 and 50 years of service.

■■ Conducting regular surface tours of the mining operations in conjunction with community tourism organisations.

■■ Visiting local schools to explain mining and environmental processes to students studying mining units in science.

■■ Holding two open days at the copper smelter for families of copper smelter employees and operational site visits.

■■ Conducting community, employee and multi-stakeholder forums and workshops.

■■ Organising regular customer, business partner and supplier meetings.

■■ Offering a free call Ethics Line and other formal grievance mechanisms, including a dedicated community complaints telephone number.

■■ Continuing our annual safety calendar competitions to engage children of employees of the zinc-lead operations and Mount Isa Copper Operations (MICO).

■■ Publicising the Leichhardt River Remediation Project Stage 3 through local media and letterbox drops to residents and businesses in the immediate vicinity of project works.

■■ Participating in regular meetings with our Xstrata Community Partnership Program North Queensland partners.

■■ Providing event management assistance for various community events.

■■ Facilitating and participating in events to celebrate 85 years of commerce and community in Mount Isa (please refer to the Case Study on page 33 for more information).

In addition, Xstrata Mount Isa Mines’ senior management teams and employees represented Mount Isa Mines on boards including the Mount Isa Water Board, Mount Isa Chamber of Commerce; Laura Johnson Home; local committees including Rotary, the Mount Isa Community Development Association, School Parent and Citizen committees, and the Frank Aston Museum Development Advisory Committee. They also actively participated in community development organisations, coached and played in sporting teams and attended local and regional events.

Community feedbackXstrata Mount Isa Mines’ engagement program is critical to our understanding of material SD issues. Stakeholder feedback is used to identify and manage risks and opportunities and integrated into business planning and strategy.

As part of our commitment to sustainable development and ensuring we identify community needs, Xstrata North Queensland conducted a Community Attitudes Survey† (CAS) in June 2009 to determine where

Mount Isa Mines Community Relations Advisor, Melissa Trim, reads to Shoshanna Nemo at the

Brilla Brilla Community Centre

† A summary of the key findings from the survey can be found at www.xstrata.com/operation/mountisa/publications



2009 Community Attitudes Survey Results and Action Plan

Community needs Current Actions Planned Actions

Air pollution ■■ Maintaining a robust air monitoring program including 10 sulphur dioxide monitors and five dust samplers to monitor emissions in Mount Isa

■■ Improving the capture and treatment of smelter emissions through the Smelter Emissions Project in Mount Isa

■■ Continue to further improve emissions efficiency at Mount Isa Mines

■■ Continue our focus on dust management and emissions monitoring at Mount Isa

Unemployment/lack of employment opportunities

■■ Maintaining employee levels at each of our North Queensland operations

■■ Delivering XCPPNQ initiatives addressing enterprise and job creation

■■ Maintain and enhance the Xstrata Apprenticeship Program

■■ Continue investment in CSI activities such as the XCPPNQ

Future of mine and town/long term viability of town

■■ Announced two prefeasibility projects; Black Star Open Cut Deeps and George Fisher Mine expansion feasibility study

■■ Continuing to invest in CSI activities including the development of social infrastructure in the community (refer to the XCPPNQ table on pages 39 to 41 for more information)

Lead in blood levels in Mount Isa

■■ Investing more than $250 million in over 150 environmental improvements in the past six years to minimise potential impacts on the environment and local community

■■ Supporting the Living with Lead Alliance to deliver community education programs regarding living safely with lead

■■ Commissioning the Lead Pathways Study (see Living safely with lead case study on page 34 for more information)

■■ Continuing to offer free, independent and confidential blood-lead testing for all community member through QML

■■ Progress Phases Two (Air) and Three (Water) of the Lead Pathways Study following the July release of Phase One data which was independently reviewed

■■ Finalise planning work as part of the Smelter Emissions Project to further improve the capture and treatment of smelter emissions

Lack of services ■■ Implementing the Xstrata Mount Isa Mines’ Housing Management Plan which includes constructing new management houses, nine duplexes and the Barracks at George Fisher Mine for contractors

■■ Through our CSI programs, deliver real improvements by maximising our existing partnerships (refer to the XCPPNQ table on pages 39 to 41 for more information)

In 2009, Mount Isa celebrated 85 years of commerce and community.

The Mount Isa 85th Anniversary Campaign was an initiative of Xstrata Mount Isa Mines, the Mount Isa City Council and the Mount Isa Chamber of Commerce, with the support of the State Member for Mount Isa, Hon Betty Kiernan MP, and Queensland Tourism.

The aim of the project was to promote the 85th Anniversary of commerce and community in the region following the establishment of Mount Isa Mines Limited in January 1924 and the subsequent Queensland Government survey of the town of Mount Isa east of the Leichhardt River in May 1924.

The campaign also promoted the city of Mount Isa today and the rich and valuable contribution of the region to the prosperity of Queensland.

A few of the many positive outcomes of the campaign included the development of an anniversary logo and website, www.celebrateisa.com.au, in January 2009; installation of the number 85 on Mount Isa’s historic Urquhart Head Frame; city-wide promotional materials; and production of an Xstrata Mount Isa Mines 85th Anniversary booklet. There was also a stakeholder celebration event hosted by Xstrata Copper and Xstrata Zinc in Brisbane in October 2009; a two week museum-style display of Mount Isa’s 85th Anniversary in Brisbane; and announcement of Xstrata Mount Isa Mines as one of the top 10 engineering wonders of Queensland by Engineers Australia in November 2009.

The Mount Isa 85th Anniversary Campaign was successfully celebrating Mount Isa’s remarkable history, its vibrant city and its important contribution to the State of Queensland.

case study

Celebrating 85 years

World renowned didgeridoo performer and Mount Isa local William Barton performed at an event to celebrate Mount Isa’s 85th anniversary



Xstrata Mount Isa Mines continues to work with the local and Queensland Government to raise community awareness about living safely with lead.

Living with Lead AllianceIn December 2007, Xstrata joined with Queensland Health, the EPA (now DERM), the local State Member of Parliament, Betty Kiernan MP and the Mount Isa City Council to form the Living with Lead Alliance.

The aim of the Alliance is to provide people in Mount Isa with the information they need, so they can put in place simple measures to help them stay healthy in an environment with naturally occurring minerals such as lead. The Alliance is also driving long term actions to address the issue of lead in the community.

For example, as part of the Alliance’s Greening Mount Isa funding program, the Alliance delivered around $670,000 in funding grants to local schools, kindergartens, day care centres, sporting organizations and community groups in the local area. This program is designed to improve the recreational and environmental facilities for children in Mount Isa.

Other initiatives undertaken by the Alliance in 2009 include:

■■ an ongoing public information campaign, including print, radio and television advertisements

■■ the establishing of an Indigenous Health Working Group, and an Alliance local support group

■■ becoming a partner of the Mount Isa Safe Community Advisory Team

■■ developing of a range of educational material including brochures, posters, factsheets, bumper stickers, magnets and a promotional mascot

■■ initiating a regular Alliance E-Newsletter;

■■ meeting with local schools, kindergartens and community groups to discuss the alliance and living safely with lead

■■ showcasing information at a range of community events.

In 2010 the Alliance is planning to:

■■ initiate a LEADSmart education program in local schools

■■ assist Queensland Health with any promotional requirements for a follow-up blood lead test of local children

■■ implement a pregnancy working group;

■■ coordinate education sessions for local health professionals

■■ progress funding for Greening Mount Isa initiatives.

In addition to the actions of the Alliance, Xstrata Mount Isa Mines continues to offer free, independent and confidential blood lead testing for Mount Isa residents through Queensland Medical Laboratory. This testing has been made available since 1993.

Understanding and limiting operational impactsIn recent years, Xstrata has made significant progress in understanding and limiting potential impacts from its Mount Isa operations with projects such as the Lead Pathways Study and Smelter Emissions Project.

Lead Pathways Study

In late 2006, Xstrata Mount Isa Mines commissioned the Lead Pathways Study to better understand the potential pathways of lead in the Mount Isa community.

The Lead Pathways Study is an independent research program being undertaken by the University of Queensland’s Centre for Mined Land Rehabilitation in collaboration with the National Research Centre for Environmental Toxicology. The study has three phases of assessing potential pathways of natural and non-natural sources of lead in the Mount Isa community through land, water and air.

In July 2009, the Study released its Phase One (Land) report, finding that the risk to human health from historical mine sediment is low. Despite this finding, Xstrata has invested around $2.7 million to remove over 160,000 tonnes of soil containing historical mine sediment from the Leichhardt River.

Any actions taken that support a sense of confidence in the safety of our community is a step in the right direction. We are committed to the Lead Pathways Study and will continue to act on its recommendations.

Xstrata is anticipating the release of the Phase Three (Water) report in early 2011, and the Phase Two (Air) report in the second half of 2011.

Smelter Emissions Project

In July 2007, Xstrata Mount Isa Mines established the Smelter Emissions Project to assess the feasibility of further improving the capture and treatment of sulphur dioxide (SO2) emissions from the lead and copper smelters.

The Smelter Emissions Project team is characterising smelter emissions, identifying opportunities to further improve the capture and treatment of SO2 emissions, and designing and implementing operational and engineering controls to realise those opportunities.

As part of the Smelter Emissions Project, Xstrata is assessing the feasibility of over 120 initiatives to reduce emissions and limit the potential environmental impacts to its employees and the local community.

In 2009, Xstrata invested in excess of $16 million on a range of initiatives to limit emissions as part of its Smelter Emissions Project.

As the Lead Pathways Study and Smelter Emission Project progress, we will continue to develop and implement environmental initiatives that limit environmental impacts from our operations.

case study

Living safely with leadXstrata takes the health and safety of the Mount Isa community

very seriously and understands the unique situation with mining

and smelting operations situated close to town amid an area of

naturally-occurring lead mineralisation.

Living with Lead Alliance project officer Libby Hall meets with Mount Isa ABC Childcare Centre staff to distribute information to centre staff and parents



We also continued to provide significant in-kind support through goods, material or personnel time. This included providing Kalkadoon Community Pty Ltd with the use of the Xstrata Mount Isa Mines-owned Maree Kruttschnitt building on Barkly Highway as their administrative office for their cultural heritage and economic development divisions. We also provided building and surveying support of around $50,000 supplied to AFL Mount Isa in the development of a new sporting complex. We undertook internal fundraising activities for a number of charities including the Battle of the Mines and the Leukaemia Foundation’s Shave for a Cure. We also involved our apprentices in designing and constructing pieces of equipment for a variety of community and sporting organisations.

Sponsorships and community donations

In addition to the XCPPNQ, Xstrata Mount Isa Mines invested $612,239 in 2009 on sponsorships, donations and other community support initiatives in Mount Isa. A selection of our sponsorships and donations include:

■■ naming rights to the Xstrata Mount Isa Rotary Rodeo

■■ naming rights to the 14th Xstrata Mount Isa Mining Expo

■■ NAIDOC Week celebrations

■■ Bush Kids Ball

■■ Mount Isa and Regional Business Awards

■■ Mount Isa Show

■■ Clean Up Australia Day local initiatives.

Corporate Social Involvement ProgramXstrata Mount Isa Mines’ CSI programs are developed in line with Xstrata’s CSI policy and guidelines and form an important part of our work with the local community. Through these programs Xstrata Mount Isa Mines develops community partnerships and undertakes sponsorship and donations in the areas of enterprise and job creation; health; education; art and culture; environment; and social and community development.

These community partnerships contribute to the development of a sustainable community and emphasise local capacity building and investment in social infrastructure.

Xstrata Community Partnership Program

In 2009, Xstrata Mount Isa Mines supported 23 initiatives with a program value of $3.43 million under the Xstrata Community Partnership Program North Queensland (XCPPNQ). See pages 39 to 41 for further information on this program.

The program, established in 2004, reflects our belief that local communities should benefit from our operations, both in the short and long term. The program commenced in 2005 with $4 million and supported 34 community initiatives in Xstrata’s North Queensland host communities of Mount Isa, Cloncurry, Townsville and Bowen.

The XCPPNQ has expanded in following years to support more than 60 initiatives with a total program value of almost $11 million through to 2010. The program is delivering real improvements to Mount Isa, and is viewed positively by the local community according to the 2009 Community Attitudes Survey.

St Kieran’s Primary School students practice for the Latin American Carnivalé performance an initiative of Xstrata’s community partnership with the Queensland Arts Council

Total CSI expenditure by type

6% Enterprise and job creation

28% Social/community development

3% Education

1% Environment

3% Art and culture

59% Health

XCPPNQ expenditure by type



3% Education

1% Environment

3% Art and culture

66% Health

Sponsorships/donations/in-kind community support



4% Education

1% Environment

1% Art and culture

19% Health



identification of local lands with concern to Indigenous peoples shall be based on the Native Title Claims Register administered by the Australian Government’s National Native Title Tribunal (NNTT).

Aboriginal Cultural Heritage

Any person carrying out an activity has an obligation to take all reasonable and practicable measures to ensure the activity does not harm Aboriginal Cultural Heritage. To ensure compliance with this obligation, our internal procedures require us to seek the engagement of the identified Aboriginal Party in the planning, conducting and reporting of Aboriginal Cultural Heritage Surveys prior to undertaking an activity that may disturb Aboriginal Cultural Heritage within the site of operations.

We have continued to work collaboratively with the Kalkadoon people to improve operational procedures to ensure the protection and preservation of Aboriginal Cultural Heritage sites of significance on the Xstrata Mount Isa Mines lease.

In 2009 we continued to assess all new mining and project areas for cultural significance, such as archaeological and sacred sites, prior to disturbance and in consultation with the Kalkadoon people. Both parties successfully worked together during 2009 to develop strategies to avoid impacts where possible and to ensure that both parties have access to important sites prior to any activities being undertaken by Xstrata Mount Isa Mines on such sites.

During 2009 there were no known incidents of Indigenous rights being violated as a result of our copper operations. However, in December 2009 the Department of Environment and Resource Management notified us of their intention to prosecute Mount Isa Mines copper operations in relation to an Aboriginal Cultural Heritage incident recorded in September 2008.

Community grievancesWe record, monitor and address community complaints, take corrective action where appropriate, and provide feedback to complainants. All complaints received are handled by members of the Community Relations team and complainants are responded to promptly.

Xstrata Mount Isa Mines operates a 24-hour community information telephone line to manage complaints and enquiries and to provide feedback to callers.

In 2009, 151 complaints were received by Xstrata Mount Isa Mines. In each case complainants were advised of the current Air Quality Control (AQC) status and any action being taken. The AQC Centre closely monitors emissions and automatically closes down the smelter if emissions approach regulatory limits. Please refer to the table and graph below.

Indigenous rights and Aboriginal Cultural HeritageXstrata Mount Isa Mines respects the traditional rights and cultural heritage of Indigenous people, recognising that they have a distinct ethnic identity. We ensure that Indigenous groups are properly identified in stakeholder engagement.

Xstrata Mount Isa Mines structures its engagement activities in a manner that is equitable and culturally appropriate, and facilitates the active involvement of Indigenous peoples such as the Kalkadoon through consultation, including capacity building initiatives where necessary or appropriate.

Xstrata Mount Isa Mines’ Indigenous Affairs Policy has taken the position that

This case is scheduled to be mentioned in the Mount Isa District Court in April 2010.

Site Protection and Preservation Plans for these sites, where required, and significant areas are developed by Xstrata Mount Isa Mines in consultation with the relevant Indigenous people and access is provided on an agreed basis.

During 2009 the Indigenous Affairs strategy was developed, and cultural awareness training for employees continued to be deployed to key personnel at Xstrata Mount Isa Mines.

Structured Training Employment Project Employment Resources Services (STEPers)

In November 2008, our Xstrata Mount Isa Mines copper operations signed an inaugural Structured Training Employment Project Employment Resources Services (STEPers) contract with the Commonwealth Government’s Department of Employment, Education and Workplace Resources (DEEWR). STEPers is a joint initiative with Jobfind Centres Australia and DEEWR to increase job opportunities for Indigenous people at our operations.

The first intake of employees commenced on site in February 2009 after completing a structured pre-employment program with Jobfind. A total of 15 traineeships were undertaken at our copper operations in 2009 with full time employment opportunities offered to nine participants. The remaining six applicants are expected to complete their traineeships by early 2010. Additional STEPers trainees will be recruited into the copper and zinc-lead operations in 2010.

In 2009, STEPers were engaged to assist in building Xstrata Mount Isa Mines’ new $4.5 million accommodation precinct, ‘Thilimarri Place,’ in Mount Isa. The trainees provided essential construction and landscape support. Further, representatives of the Kalkadoon people were invited to open ‘Thilimarri Place’. The name Thilimarri was decided on it consultation with the Kalkadoon community and family life.

Additional STEPers trainees will be recruited into the copper and zinc-lead operations in 2010.

National Indigenous Cadetship Support Program (NICS)

In 2009, the Xstrata Mount Isa Mines Copper Operations awarded two National Indigenous Cadetship Support Program (NICS) places to local Indigenous tertiary students.

This program, formerly the National Indigenous Cadetship Program (NICP) is supported by DEEWR. More NICS positions will be created in the copper and zinc-lead operations in 2010.

Community complaints (total)

1% Dust

3% Other

43% Fumes

1% Noise

52% Fallout damage*

Community complaints (5 year comparison)

2005 2006 2007 2008 2009

67 40 52 68 151

Community complaints (by operation)

Copper Zinc

Dust 1 1

Fumes 56 8

Noise 0 1

Other 4 1

Fallout damage* 79 0

Total 140 11

* Prior to 2009, Mount Isa Mines did not report on any complaints relating to fallout damage from Incitec Pivot Limited’s Acid Plant and our copper smelter. Reporting this category accounts for the increased number of complaints in 2009.



Aboriginal Cultural Heritage Survey Outcomes

Xstrata Copper Xstrata Zinc Total

Number of Aboriginal Cultural Heritage Surveys completed

14 9 23

Total Area Covered (Hectares) 2,675 1,215 3,890

Aboriginal Cultural Heritage Survey Findings

Aboriginal artefacts 21 7 28

Sites of significance 3 1 4

Creating business opportunities

Members of our senior management teams were proactively involved in the Queensland Resources Council’s North West Queensland Indigenous Resource Industry Initiative. The aim of this initiative is to develop strategies to increase engagement between the Indigenous community and businesses in the areas of employment, training and business development. As a result there has been an agreed collaborative approach to the development of an Indigenous mining sector employment passport. This is expected to be implemented by mid-2010.

Representatives from Xstrata Mount Isa Mines and the Xstrata Skills Centre participated in the Australian Government-sponsored Former Origin Greats Indigenous Careers Expo held in Mount Isa and Townsville.

In 2009, Xstrata Mount Isa Mines presented at the Australian Government’s North West Queensland Indigenous Business Forum hosted by Indigenous Business Australia to facilitate better engagement between

Indigenous Businesses and the Resources Sector. The presentation outlined Xstrata’s Tenderlink process for promotion of contracts and the process and expectations for contractor accreditation for businesses supplying services to Xstrata Mount Isa Mines.

In late 2009, Xstrata Mount Isa Mines copper operations awarded Kalkadoon Community Pty Ltd with a contract to operate two kiosks on site. This has resulted in nine Indigenous persons being directly employed to provide a continuous seven day, 15 hour service to Xstrata Mount Isa Mines’ employees and contractors.

In addition, during the Leichhardt River Remediation Project, undertaken in October and November 2009, Kalkadoon Community Pty Ltd was engaged to provide labour hire support services for the project.

Mine closureMine closure planning is integral to Xstrata’s approach to Sustainable Development whether the life cycle of projects are short

or long term, and all of Xstrata Mount Isa Mines’ operations have closure plans in place. As a requirement of our Environmental Management System, we maintain a closure plan based on Xstrata’s Closure Facility guideline, which includes requirements for socio-economic considerations and requires sites to maintain and continually review site closure plans for sustainable, stable, non-polluting final mined landforms. In these reviews the sites must check for the adequacy and effectiveness of their existing approaches to closure and improve them through regular reviews of identification and implementation of best practice research and monitoring programs.

In 2009, a review of the estimated closure costs was conducted in consultation with a third party civil engineering consultant and audited by an independent accounting firm. Through a consultative process with the Queensland Department of Environment and Resource Management, the financial assurance arrangement was submitted to regulatory authorities in mid-2009.

During the Closure Planning process an estimate for a third party contractor was developed to remediate the land disturbance during Xstrata Mount Isa Mines’ Mining Plan. This provides assurance to the government that there are systems and processes in place that promote effective environmental management during operations and, in a worst case situation of unplanned closure, that there are sufficient funds to close and manage the site appropriately. The estimate consisted of two main components being the demolition of fixed plant and the rehabilitation of final mined landforms including waste rock dumps, tailings dams and general land disturbed.

The estimation also made provisions for the cost of recycling scrap metal, and the on-site safe disposal of concrete foundations and soil materials with remnant traces of process materials. Estimations provided by the third party civil engineering consultant included the most significant landforms such as active tailings dams, Black Star open cut waste rock dump and Handlebar Hill open cut waste rock dump, which will require additional benign material to meet the closure criteria agreed with regulatory authorities.

A number of research studies are underway to refine closure criteria aimed to achieve safe, stable, non-polluting and sustainable final mined landforms through the use of benign materials that are generated by our normal mining operations and minimise the need to source additional materials from undisturbed areas.

Aboriginal artefacts discovered during a cultural heritage survey on the Mount Isa Mines mining lease


case study

Mount Isa Family Fun ParkIn 2007, Xstrata conducted a Community Attitudes Survey in Mount Isa, Cloncurry,

Townsville and Bowen, the north Queensland communities in which we operate.

This survey identified the need for more family-friendly parks in Mount Isa, particularly

parks that were fenced, shaded and more interactive.

Children enjoy the carousel at the Mount Isa Family Fun Park


Following discussions between Xstrata Mount Isa Mines and the Mount Isa City Council, the Council fast-tracked a project to develop a large block of vacant land into a vibrant, family-friendly park. Construction of the Mount Isa Family Fun Park commenced in late 2008 and comprised 2.4 metre high security mesh fencing around the park; an all-abilities playground to cater for children with disabilities; a water fun park utilising recycled water pumps; shade cloth structures above key playground equipment; a sensory garden to promote native plants; and installation of BBQs for families.

Xstrata contributed more than $1 million to the project, which was leveraged by an additional $1.5 million from the Queensland

Government through its Queensland 150 year (Q150) anniversary celebrations funding. Xstrata also gifted a 2,100 m2 parcel of land for conversion to a family-friendly car park with ample room for families with prams as well as car spaces available for disabled parking. The total cost of the Mount Isa Family Fun Park was $4.25 million.

Mayor of Mount Isa City Council, Cr John Molony, said that the partnership with Xstrata Mount Isa Mines and the Queensland Government has delivered a truly relished Family Fun Park that addressed the city’s needs.

“We are proud that our project has delivered a much needed and vibrant family space for our residents and visitors, and that it was chosen as Mount Isa’s Q150 project.

The Mount Isa Family Fun Park was officially opened by the Deputy Premier of Queensland on 5 June, 2009 as part of the Q150 celebrations, and had in fact been selected by the Queensland Government as its only Q150 project in the north west Queensland region.

Families and visitors now have access to a colourful, resourced, safe and secure park in which to enjoy time with their families and friends. This project highlights Xstrata’s commitment to contributing to the development of the communities where we operate to improve the quality of life for all.


Xstrata Community Partnership Program North Queensland projects

Enterprise and Job Creation

Project Partner Description Timeframe Status/update

Arilla Indigenous Women’s Paper Mill

Arilla Paper Update equipment and increase training opportunities for local Indigenous women to develop high quality paper products

2008 to 2009

Arilla has taken several steps to ensure they can remain viable and sustainable in the long term by submitting an application for funding to Indigenous Business Australia (IBA) and entering into a Joint Venture with Outback at Isa.

Additional funding for the erection of a new papermaking workshop and plans to engage a permanent workforce have also been put in place.

North West Qld Indigenous Catholic Social Services traineeships

North West Qld Indigenous Catholic Social Services (NWQICSS)

Funding of two traineeships for disadvantaged Indigenous students.

2008 to 2010

One trainee graduated in March and has now obtained full time employment in the Northern Territory.

Two new Indigenous trainees started a Certificate IV Training and Assessment which will provide NWQICSS with trained indigenous staff to assist with their other training programs.

NWQICSS have recently entered into partnerships with JobFind and Mount Isa TAFE that has increased the range of courses they have available for clients.

Dugalungi Civil Construction and Mining Skills Prevocational Program

Myuma Pty Ltd

To fund places for Indigenous participants in two separate 13-week live-in programs, and funds to support the expansion of training and mentoring services delivered during and between programs.

2008 to 2010

Two 13-week training programs were delivered at the Dugalungi Camp in Camooweal during 2009.

Of the 60 participants who commenced the courses, 54 (90% of the course intake) successfully graduated. Since the graduation, most participants have secured full time employment.

Geological Research in the North-West Minerals Province

James Cook University’s Economic Geology Research Unit (EGRU)

Funding of a Research Fellow to identify and work on geology research projects with Xstrata Copper’s Exploration department

2007 to 2009

Two PhD research projects were progressed and PhD students continued to work collaboratively with the Xstrata Copper Exploration department.

Education


Junior Future Classroom

Spinifex State College

To develop a media classroom for students to gain exposure to state of the art multimedia technology.

2008 to 2010

Spinifex Future Classroom has been fully functional since Term 1, 2009. It operates with 28 IT stations and is fully utilised by students and teachers. Funds have also purchased a Datashow and speakers into 27 classrooms and four Interactive white boards.

Social and Community


Mount Isa Safe Community Project

Mount Isa Safe Community Action Team (MISCAT)

To assist MISCAT’s application to the World Health Organisation to gain endorsement of Mount Isa as an international Safe Community.

2007 to 2009

Mount Isa achieved World Health Organisation status as a ‘Safe Community’ in late 2008.

The Official Mount Isa Safe Community Designation Ceremony and Family Fun Day were held on 21 February 2009.

The partnership has provided for Mount Isa Safe Communities attendance at several national strategic planning and injury prevention conferences.




Social and Community


Brilla Brilla Breakfast Program and community centre upgrade project

North West Queensland Catholic Indigenous Social Services; and Communities for Children

To fund a daily breakfast program at the Brilla Brilla Community Centre located at Yallambee reserve in Mount Isa; and to help make improvements to the Brilla Brilla Community Centre’s kitchen and laundry.

2008 to 2010

Around 5400 breakfasts and school lunches were prepared at the centre during 2009.

Two participants of the breakfast program graduated from primary school at the end of 2009 and one has been identified as a gifted and talented student.

Equipment purchased in 2009 included a new fridge for the centre, repair of hot water system, replacement of front door and glass, upgrade of plumbing and purchase of fire safety equipment.

Riverbed Action Group Burke Street Interventions Centre

North West Queensland Catholic Indigenous Social Services

To provide ongoing diversionary initiatives to combat issues associated with alcohol and substance abuse.

2008 to 2010

The Burke Street diversionary centre is now fully operational and full time counselling staff have been employed to run the programs at the centre.

The Murri Men’s and Women’s Groups continue to be engaged in arts and crafts activities at Burke Street.

A series of personal development programs including anger management and connection to culture have been developed for the men’s group.

Health


SimMan and SimBaby artificial simulators (medical mannequins)

Mount Isa Centre for Rural and Remote Health; and the Royal Flying Doctor Service (RFDS)

To provide local and regional health professionals with training in the diagnosis and implementation of advanced medical procedures.

2008 to 2010

Continued delivery of the fortnightly training sessions for local health professionals.

Additional medical equipment was purchased during 2009 so that training equipment now mirrors equipment used in the emergency department at the hospital.

External sessions for medical professionals in outlying communities continued with the assistance of the RFDS.

Diabetes Centre and education program

Queensland Health

Funding of a centre to provide consistent, modern diabetes management including a diabetes educator for outlying indigenous communities.

2008 to 2010

During 2009 the Mount Isa Diabetes Clinic treated and advised around 1200 patients.

The diabetes outreach clinic also conducted outreach visits to Mornington Island, Doomadgee and Normanton servicing over 1000 clients during these visits.

Remote Health Research Fellowships

James Cook University and Mount Isa Centre for Rural and Remote Health

To support research based fellowships focusing on health related issues specific to rural and remote communities and to expand the academic body of knowledge.

2007 to 2009

Several new projects were funded in 2009 including School Health Nurses: The role and scope of practice of Queensland Health Nurses conducting school health screening in Queensland

This partnership is now finalised, however, some unused funding will be used in 2010 to continue several research projects and compile a brochure on the outcomes of all research achieved during the life of the partnership.

Left: Spinifex Junior Campus students try out the new interactive whiteboards in the Future Classroom. Right: Mine Rescue Team members undergo training in emergency medical response utilising the Xstrata sponsored SimMan medical mannequin at the Mount Isa Centre for Rural and Remote Health



Health


Equipment Upgrades Laura Johnson Home

To support the region’s only aged care facility to upgrade its existing equipment and furniture.

2008 to 2010

Xstrata’s 2009 funding has enabled the home to purchase a new shower trolley for $5,500. The balance of the 2009 funding will go towards bathroom renovations in 2010.

Xstrata employees continue to support the home through other avenues and via Workplace Giving. In late 2009 work commenced on beautifying a courtyard area at the home as an in-kind support initiative between the Xstrata Skills Centre, Building Services Group and Community Relations.

Arts and Culture


Arts and cultural enrichment with live performances

Queensland Arts Council

To fund a range of arts and cultural performances and enrichment programs in north Queensland communities to raise the profile of and increase active participation in the arts.

2005 to 2009

Record numbers in Cloncurry and Mount Isa attended performances of Gods of Spicy Things: a divine comedy by Far North Queensland’s JUTE Theatre, on 23 and 25 August.

Latin American Carnivalé was also featured from 24 August– 4 September, involving 10 schools and hundreds of students from across the region. Visiting artists joined forces to create new work inspired by Latin American rhythms culminating in a public performance at the Mount Isa Multicultural Festival during September.

Environment


Native animal and wildlife care program

North West Wildlife Carers Group

To fund supplies for registered carers in the north west region to assist them to nurse and rehabilitate injured wildlife.

2008 to 2010

A variety of native animals including 44 kangaroos and wallabies and 100 birds were cared for by the North West Wildlife Carer’s Group during 2009.

North West Carers Group has continued to educate the broader community about the importance of native animals in our ecosystem by conducting regular visits to schools and community groups.

Riversleigh Fossil Project

University of New South Wales

To help fund a number of collaborative educational, environmental and research initiatives into the geological and palaeontological resources of the Riversleigh Fossil Trail near Lawn Hill National Park.

2008 to 2010

Riversleigh fieldwork conducted at Lawn Hill discovered several new fossil-rich and significant sites including one of the first freshwater fish-rich sites known from Riversleigh.

Public lectures about Riversleigh Fossils were given by researchers at Lawn Hill and Outback at Isa, as well as presentations at several conferences throughout the year and numerous scientific papers produced.

The Xstrata Mineral and Fossil Trail development continues with several more mineral and fossil sites identified and surveyed to include as part of the Trail.

Left: The Riversleigh expedition team uncovered a complete skull (possibly the best ever found) of one of the ‘giant wallabies’ Protemnodon during a dig in north west Queensland. Right: Schoolchildren perform at Latin American Carnivalé

Caring for our environment


Kalkadoon Community Pty Ltd Chairperson Doug Bruce, shares stories with Kate Masters from Southern Gulf Catchments


EnvironmentOur operations are required to set themselves targets to meet and, where practicable, exceed relevant laws, regulation and standards. We have set our operations robust targets to reduce carbon and energy intensity, freshwater use in arid regions, and sulphur dioxide (SO2) emissions that go beyond our current license requirements.

We manage biodiversity-related risks and seek to avoid, minimise or mitigate any negative affects on the regional biodiversity caused by our operations. When environmental incidents do occur we determine the cause and take steps to prevent recurrence.

Xstrata Mount Isa Mines believes that superior environmental management results in increased efficiency, lower risk and higher overall performance of our operations. It is also critical to maintain our social licence to operate.

The Mount Isa Mines site aims to minimise the environmental impacts of our operations. We will achieve this by managing risks, seeking opportunities to avoid, minimise and mitigate impacts through the efficient use of natural resources, pollution control, waste management and biodiversity conservation.

Environmental protection expenditures and investments by typeSince taking ownership of the Mount Isa Mines operations in 2003, Xstrata has invested in excess of $250 million on over 150 environmental initiatives. In 2009, Mount Isa Mines copper operations invested almost $37 million in environmental protection expenditures and investments.

Environmental challengesThe key environmental challenges for Xstrata Mount Isa Mines are:

■■ minimising emissions to air from the Mount Isa copper and lead smelters and dust from surface operations

■■ preparing for and reducing our contribution to climate change

■■ minimising freshwater consumption and maximising process water reuse

■■ planning for effective progressive rehabilitation

■■ minimising waste generation and maximising materials recycling

■■ transition to contemporary environmental regulation

■■ managing impacts on the surrounding environment in conjunction with continual growth.

Caring for our environmentIn line with Xstrata’s strategic objectives, we strive for industry leadership in environmental performance.

Our environmental management systems are aligned with Xstrata’s business Principles and Sustainable

Development (SD) standards. Xstrata Mount Isa Mines routinely assesses its performance against these

systems and standards.

“Since taking ownership of Mount Isa Mines’ operations in 2003, Xstrata has invested in excess of $250 million on over 150 environmental initiatives.“

Environmental protection expenditures and investment by type

Expenditure category Total

Capital* $18,201,685

Clean up costs for remediation of spills $852,074

Environmental consultants/contractors $1,900,738

Environmental personnel – employees $3,505,167

Licences/liability insurance $855,786

Rehabilitation and decommissioning costs $111,540

Research and development $5,217,285

Treatment and disposal of waste $1,736,690

Treatment of emissions $2,361,497

Monitoring and analysis equipment $1,281,014

Operating costs – other $657,288

Total $36,680,769

* The majority of this expenditure was related to the Smelter Emissions Project – read more details on page 51



Climate changeThe Xstrata plc Sustainable Development Policy sets out Xstrata’s commitment to reduce greenhouse gas emissions produced directly from its activities and indirectly from its energy usage. Further information about Xstrata’s approach to climate change can be found in the Group’s 2008 and 2009 Sustainability reports and on its sustainability website www.xstrata.com/sustainability.

Xstrata Mount Isa Mines is committed to managing energy use and the emission of associated greenhouse gases. We recognise that the future impacts of climate change including increased regulation, higher energy costs and physical impacts such as drought and flooding, present a risk to our operations.

We support an Australian Climate Change Policy which leads to reductions in global emissions and introduces a carbon cost that is shared across the community. However, we believe that the policy must not prejudice Australian trade competitiveness causing the loss of Australian output and jobs simply to have the production and emissions move off-shore.

In response to the Australian Government’s white paper and draft legislation for an emissions trading scheme (ETS), Xstrata made a number of submissions and representations seeking amendments to reduce the impact of such a scheme on the mining and minerals processing sector in the absence of a global agreement covering our competitors.

Transition from the Mount Isa Mines Limited Agreement ActIn May 2008, the Queensland Government passed legislation to transition Xstrata Mount Isa Mines from the Mount Isa Mines Limited Agreement Act 1985 to the Environmental Protection Act 1994. The existing Mining Plan 2005–2010 originally established under the Mount Isa Mines Limited Agreement Act 1985 will remain the guiding document for environmental management on site until the transition period expires in May 2011. During the transition period Xstrata will continue to work closely with the Queensland Government and other key stakeholders to implement the upcoming changes to our environmental regulation while monitoring the sustainability of our operations.

Environmental incidents and complianceNo environmental fines or penalties were received by Xstrata Mount Isa Mines in 2009 and there were no monetary or non-monetary sanctions received by Xstrata Mount Isa Mines for non-compliance with environmental regulations.

In 2009 Xstrata Mount Isa Mines recorded a total of 86 minor environmental incidents of which 62 were considered Category 1 and 24 were considered Category 2 (minor). All incidents were investigated and corrective measures implemented to prevent recurrence. In 2009 no Category 3 (significant) incidents were reported. Regulatory non-compliances were reported to the Queensland Department of Environment and Resource Management.

In 2009, Xstrata Mount Isa Mines reviewed and improved its ISO 14001 environmental management systems through the continued involvement of operational areas in its development, and through feedback from the Xstrata SD Assurance Program, specialist audits, and other internal and external environmental benchmarking activities.

Catherine Bryant – Xstrata Mount Isa Mines Community Relations Advisor, and Darren Reddicliffe – Ergon Energy Mount Isa Work Group Leader, get some colouring-in tips from St Kieran’s Catholic Primary School students Isaiah Lea and Marizelle Nell in the Ergon Energy Savers Student Competition

Environmental Incident Classification

Incident Category Environmental impact

1 Negligible incident

2 Minor incident

3 Significant incident

4 Serious incident

5 Disastrous incident



Under the proposed legislation, some industry specific assistance is proposed for Emissions Intensive Trade Exposed (EITE) activities. Based on the proposed ETS eligibility criteria, Xstrata Mount Isa Mines would receive some EITE assistance for its copper and lead smelters which accounts for around 40% of the operation’s total carbon emissions. However, the majority of our Mount Isa operations, including underground and open cut mining and concentrate production, will not receive any assistance under the proposed ETS.

In addition to purchasing carbon permits, Xstrata Mount Isa Mines will face higher energy, consumables and transportation costs as providers of these services pass-on their carbon costs to consumers. As such, the proposed ETS legislation will significantly impact on the long term viability of our copper and zinc-lead mining and minerals processing businesses and adversely affect the regional communities which support them.

The proposed ETS legislation was not passed in 2009. While it is not clear when the draft legislation is likely to be reintroduced to the Australian Federal Parliament, the potential cost impost of the ETS has been factored into the site’s energy price forecasts used for budgeting and project evaluation modelling. Xstrata Mount Isa Mines will maintain a close watch on ETS developments in 2010 and actively participate in providing submissions on draft legislation and regulations.

National Greenhouse and Energy Reporting System (NGERS)

The Australian Government introduced the National Greenhouse and Energy Reporting Act 2007 which established NGERS. The scheme requires industries which emit greater than 25,000 tonnes of carbon dioxide equivalents (CO2-e) per annum to register and report annually their total carbon emissions. The first reporting year for this scheme was for the year ending 30 June 2009. Xstrata Holdings Pty Ltd was registered in accordance with National Greenhouse and Energy Report Act 2007 and the first annual report was submitted to government in October 2009. Xstrata Mount Isa Mines activities are reported as part of the Xstrata Holdings Pty Ltd submission.

Prior to the introduction of NGERS, our operations collected carbon activity data and reported greenhouse emissions in our annual sustainability reports and annual submissions under the Australian Government’s Greenhouse Challenge Plus and the Energy Efficiency Opportunities Programs.

Due to the more detailed reporting requirements of NGERS, we have reviewed and streamlined our existing data capture, recording and reporting system to further improve data integrity and compliance. This process has been applied to the 2009 data for this Sustainability Report but has not been retrospectively applied to previous years’ data.

In 2010, Xstrata Mount Isa Mines plans to implement an emissions management software tool to further improve our NGERS reporting. The tool will also assist in providing more detailed information to management on energy and emissions trends and forecasts so that resources can be better targeted to reduction outcomes.

Carbon emissionsXstrata Mount Isa Mines has set targets for energy and carbon intensity levels for each of the major operating areas. The targets have been set with the aim of reducing intensity levels year on year, and efficiency and awareness programs are run to highlight opportunities to achieve these targets.

In 2009, Xstrata Mount Isa Mines’ total greenhouse gas emissions was 902,000 tonnes of carbon dioxide equivalents

(CO2-e) down approximately 7% from the 2008 total of 969,000 tonnes. Carbon intensity for the site was 1.3 tonnes of CO2-e per tonne of contained metal compared to 1.4 tonnes of CO2-e per tonne of contained metal in 2008.

These results were primarily driven by a significant improvement in energy efficiency at the zinc-lead ore concentrator as a result of a facility upgrade and reduced zinc-lead ore trucking from the Handle Bar Hill open pit mine.

The reduction in greenhouse gas emissions and carbon intensity in 2009 was a sound achievement considering the total site volume of ore processed to recover metal increased by 12.5% on the previous year. As ore grades at Mount Isa continue to reduce, higher volumes of ore will need to be processed in order to recover equivalent amounts of contained metal. This increase in processing will increase the site’s energy consumption, making continued reductions in greenhouse gas emissions and carbon intensity a significant challenge for the operation going forward.

The site’s total greenhouse gas emissions is comprised of direct and indirect emissions (please refer to the Energy use by source table on page 47). Direct emissions are those which are generated by on-site activities, such as driving a diesel powered truck. Indirect emissions are those which are generated by an external supplier that provides a product or service to the operation, for example emissions generated by a power station that supplies electricity to the site.

“ We support an Australian Climate Change Policy which leads to reductions in global emissions ...”

Greenhouse gas emissions (direct and indirect)

109

130

88

122

132

129

105

103

115

0

‘000s tonnes CO2-e

1,200

200

600

800

1,000

400

2005 2006 20092007 2008


797

969

902

742

699

Total greenhouse gas emissions for 2008 have been restated from 902,000 to 969,000 tonnes of CO2-e to correct a previous calculation error.

Carbon intensity (copper and zinc-lead operations)

0

tonnes CO2-e per tonne contained metal

3.0

0.5

1.5

2.0

2.5

1.0

2005 2006 20092007 2008

1.3 1.

4

1.31.

4

1.1

Carbon intensity has been restated for all years since 2005 based on contained metal in copper anode, copper concentrate sold as concentrate, lead bullion and zinc concentrate.



in the pipeline the pressure drives a turbine which in turn drives a generator. As a result we achieved an indirect emission saving of 2,000 tonnes of CO2-e.

In addition, the copper smelter’s waste heat recovery boiler, which converts waste heat into steam, generated 77,000 MWh of electricity in 2009. This equated to an indirect emission savings of 60,500 tonnes of CO2-e.

Energy

Energy consumption

Xstrata Mount Isa Mines reduced its total energy consumption by 11% in 2009 to 7.8 petajoules (PJ) compared to 8.9 PJ in 2008. This reduction was primarily due to a significant decrease in diesel fuel consumption as a result of reduced zinc-lead ore trucking at the Handlebar Hill open pit mine. Upgrades to the zinc-lead concentrator to improve energy efficiency also contributed to the result. A table detailing energy consumption by source can be found on page 47.

Energy intensity also reduced in 2009 to 11 GJ per tonne of contained metal from 13 GJ per tonne of contained metal in 2008. The reduction in energy consumption was the key driver behind this result as contained metal production remained at a similar level to 2008.

In 2009, Xstrata Mount Isa Mines’ direct emissions accounted for 343,000 tonnes of CO2-e of the total greenhouse gas emissions, compared to 397,000 tonnes of CO2-e in 2008.† Indirect emissions accounted for 559,000 tonnes CO2-e of the total greenhouse gas emissions, compared to 572,000 tonnes of CO2-e in 2008.†

Carbon emission reduction through operation efficiencies

2009 saw the second full year of operation of the energy efficient 30 megawatt Xstrata Power Station (XPS). The XPS resulted in indirect emission savings of 65,200 tonnes of CO2-e due to its higher energy conversion efficiency compared to alternate power supplies.

The Mount Isa copper operation’s underground Pelton Wheel generator added 2,500 megawatt hours (MW h) of zero emission electricity to the site’s power network in 2009. The generator acts as a small hydro power station, which recovers the potential energy from chilled water being piped 800 metres underground to cool the copper mine. Rather than using a pressure relief value to dissipate the pressure

Energy Efficiency Opportunities Program

Xstrata Holdings Pty Ltd is a participant of the Australian Government’s Energy Efficiency Opportunities (EEO) program. The program encourages large energy users (> 0.5 PJ) to improve energy efficiency through identifying and implementing energy saving initiatives. Participants are required to assess their operations for energy saving opportunities and to publicly report on initiatives if the payback period for an initiative is less than four years.

In 2009, Xstrata Holdings Pty Ltd submitted its EEO progress report for the 2008/2009 financial year which included details of Xstrata Mount Isa Mines’ specific EEO initiatives. This report is located on the Xstrata website at www.xstrata.com/assets/pdf/xcu_eeo_public_report_2009.pdf

As part of the 2009 EEO program, Xstrata Mount Isa Mines continued to undertake site based workshops to engage the workforce in identifying and evaluating energy saving opportunities. Key energy saving initiatives identified in 2009 included:

■■ Replacing a gas fired boiler used to provide hot water to the lead smelter’s change-house and laundry facilities with a more efficient unit resulting in an estimated energy saving of 835 GJ per annum.

■■ Replacing two copper smelter thickener underflow pumps to improve pumping efficiency – resulting in an estimated energy saving of 1,325 GJ.

■■ Installing extractor fans in roof to remove heat from buildings.

■■ Painting office roofs with reflective paint.

During 2009 work commenced on the upgrade of the MIT Switchyard which when complete will increase energy efficiency on site

Energy use

10913

0

122

13212

9

119

10311

5

0

‘000s GJ

12,000

2,000

6,000

8,000

10,000

4,000

2005 2006 20092007 2008


7,30

0

8,9

00

7,80

0

7,10

0

6,60

0

† Direct and indirect emissions for 2008 have been restated from 333,565 to 397,000 tonnes of CO2-e and from 568,654 to 572,000 tonnes of CO2-e respectively to correct a previous calculation error.



■■ Minimising spill pump energy wastage in the copper concentrator by applying improved control technology.

■■ Installing solar hot water systems at the zinc-lead operation’s Northern Gate clean in/clean out facility resulting in an estimated energy savings of 362 GJ per annum.

Work will continue in 2010 to evaluate the remaining opportunities identified during the year and to implement those initiatives that are cost effective.

Xstrata Mount Isa Mines believes in the importance of promoting energy efficiency behaviour both at work and at home. In 2009, Xstrata Mount Isa Mines co-partnered with Ergon Energy in the Mount Isa Energy Savers Student Competition. The competition was offered to schools in Mount Isa and was designed to help educate young people about sustainable energy initiatives and encourage students to learn how they can help to conserve energy around the home.

Future energy supply

The availability of a long term competitive energy solution is critical to the continued operation of Xstrata Mount Isa Mines and the future development of the north west Minerals Province by ourselves and others in the Northern Economic Triangle.

In late 2008, the Queensland Government in partnership with the Queensland Resources Council, commissioned an independent review into energy supply in north west Queensland. The Sims Review has been positive in highlighting the complexities of this issue and in assessing supply options for the region.

The review’s findings, released in May 2009, identified that a number of competitive energy solutions could underpin development in the region, including renewable energy sources such as wind, solar or geothermal. This is consistent with the Federal Government’s new legislation of ensuring 20% of Australia’s electricity supply comes from renewable energy by 2020.

Xstrata Mount Isa Mines supports the review’s findings and looks forward to working closely with the Queensland Government to progress its recommendations.

Water management Effective water management and conservation is critical to the long term viability of operations in north west Queensland. Our operations have taken an integrated approach to water management.

Our key focus is to minimise freshwater usage and maximise process water usage at our operations (refer to the tables at the bottom of this page). Alternative water sources to freshwater used at our operations include harvested stormwater, underground mine dewatering, water recycled internally

within plant areas, wastewater streams from neighbouring operations, return water from tailings thickeners and tailings decant water.

Freshwater consumed at Xstrata Mount Isa Mines is sourced from Lake Moondarra and Lake Julius. These two dams are used in combination to ensure the supply of freshwater to Xstrata Mount Isa Mines and the Mount Isa community. Both of these dams reached 100% capacity in January 2009 after a long drought period where the dam levels reached lows of 18% at Lake Moondarra and 67% at Lake Julius. As a result, from January 2009 the region was no longer under the Drought Management Plan (DMP).

In 2009, a total of 8,400 ML of freshwater was consumed by Xstrata Mount Isa Mines’ mining, processing and smelting operations. Six percent (500 ML) of freshwater was consumed by Xstrata Mount Isa Mines from Lake Julius, while 94% (7,900 ML) of freshwater was consumed from Lake Moondarra.

Energy intensity*

0

GJ per tonne of contained metal

30

5

15

20

25

10

2005 2006 20092007 2008

* Carbon intensity has been restated for all years based on contained metal in copper anode, copper concentrate sold as concentrate, lead bullion and zinc concentrate.

12

13

11

14

10

Energy use by source (GJ)

Consumption 2008 2009

Direct

Coal 253,449 337,540

Coke 1,169,046 1,018,548

Diesel 2,607,627 1,709,135

LPG non-transport 7,839 13,465

Natural gas 1,152,090 1,139,886

Petrol/gasoline transport 10,508 5,441

Wood 4,089 3,337

Indirect

Electricity 3,642,628 3,561,484

Total 8,847,358 7,788,836

Percentage and total volume (ML) of water recycled and reused – Mount Isa Mines copper operations

2009

Total water used (includes potable, raw groundwater and recycled/process water)

19,100

Total water recycled or reused*

12,600

Percentage of water recycled and reused*

66%

* Does not include the use of groundwater, however groundwater is included as part of the total water used

Percentage and total volume (ML) of water recycled and reused – Mount Isa Mines zinc-lead operations

2009

Total water used (includes potable, raw groundwater and recycled/process water)

18,127

Total water recycled or reused*

13,850

Percentage of water recycled and reused*

76%

* Does not include the use of groundwater, however groundwater is included as part of the total water used



In 2009, 23 hectares of land was disturbed (comprising Mount Isa zinc-lead operations – 0.24 hectares, and Mount Isa copper operations – 22.57 hectares) for the construction of infrastructure and to support mine development. Opportunity for rehabilitation on ML8058 is limited because most areas currently disturbed are considered ‘active’ so are not available for rehabilitation. However numerous rehabilitation studies are currently being undertaken to develop best practice rehabilitation techniques specifically tailored to the local environment.

In 2009 Xstrata Mount Isa Mines continued biodiversity management planning comprising three key components:

■■ Biodiversity Strategy – provides the strategic framework for the assessment and mitigation of potential impacts on biodiversity values and the setting of targets for achieving the Strategy’s objectives.

■■ Operational Biodiversity Guide – provides a ‘ready reference’ for operations personnel to implement the Strategy and specifies the processes and requirements for planning and undertaking mining activities over the lease from a biodiversity management perspective.

■■ Biodiversity and Land Management Environmental Management Program (Biodiversity EMP) – this sets specific lease-wide targets for achieving the objectives of the Biodiversity Strategy. This includes monitoring and assessing biodiversity status, compliance with legislative and corporate frameworks, and initiating and implementing projects to understand, maintain or enhance biodiversity values.

Effects on local environment

As part of the Biodiversity management planning in 2009, State and National legislation as well as other conservation criteria were used to identify key species and regional ecosystems on the lease. This included one bird species (Red Goshawk) which is listed as ‘vulnerable’ under national legislation and International Union for the Conservation of Nature and Natural Resources (IUCN) Red List. For more details please see the case study on page 45.

During 2009, areas of conservation significance were managed by existing land management systems. No disturbed areas were identified during the biodiversity study as being of conservation significance.

Sulphur dioxide (SO2) fallout from the smelters can have a localised impact on vegetation, however any effects on habitat can be reversed over time. The introduction of the acid plant in 2000, owned and operated by Incitec Pivot, has substantially reduced SO2 emissions from the copper smelter by 81%.

The operation’s focus over the past few years has been on the Death Adder Gully (DAG) catchment area that runs adjacent to the operation’s copper smelter. Prior to this work, any flows over the Death Adder Gully weir would exit the lease boundary and flow into the Leichhardt River.

Xstrata invested almost $4 million over three years to implement several improvement initiatives. A new 70 ML dam was installed in the upper catchment of DAG and the mine-side dam capacity was increased to 55 ML. As a result, the retainment capacity in the upstream catchment area was increased to 125 ML. The capacity of the Death Adder Gully weir was also increased from 2 ML to 4.19 ML. The design and installation of a pump and pipeline system to assist with water management in Death Adder Gully is currently underway.

We closely monitor the water quality of all stormwater discharges from site in accordance with our environmental requirements and report discharge events to the Department of Environment and Resource Management.

This initiative will assist us to further minimise stormwater discharges from DAG, and to improve our ability to recycle water on-site.

BiodiversityXstrata Mount Isa Mines manages approximately 30,000 hectares of land on mining lease ML8058 within the Mount Isa Inlier bioregion and Australia’s tropical savannas. ML8058 is characterised by rugged, rocky hills and poor shallow soil. Low open woodland with Eucalyptus, Corymbia and Acacia species predominates, with a ground layer of Triodia species (Spinifex) which reflects the complex geology, infertile soil and semi-arid climate.

Surface water

Surface water in the Xstrata Mount Isa Mines region flows into the Leichhardt River and then into Lake Moondarra approximately 20 kilometres downstream of the major site operations.

We monitor the quality of water discharged off-site. This monitoring, in conjunction with water quality results from Lake Moondarra, indicates that the water quality of Lake Moondarra is not impacted by our operations.

In 2009, approximately $3.5 million was spent on increasing water reclamation, stormwater containments and drainage across the mining lease. These upgrades have increased the process water reclamation from tailings dam eight, increased the capacity at Lower Star Gully and cleared the drainage channels around Black Star open cut mine. Further water reclamation projects are planned for 2010.

During 2009, there were 15 minor instances of stormwater discharging off-site due to the extreme storm events that occurred during January and February. All locations across our site are currently undergoing assessment to increase the containment capacity for stormwater during high rainfall events. This will ensure we maximise reuse of stormwater from disturbed and plant areas in the process water circuits.

Death Adder Gully water improvements

Since 2006, Xstrata Mount Isa Mines has invested $10.2 million on stormwater management initiatives to minimise the discharge of stormwater from the operating mining lease area.

Water intensity

0

kL per tonne contained metal

30

5

15

20

25

10

2005 2006 20092007 2008

16.9

11.8

12.3

16.6

13.7

Freshwater use

130

88

122

132

129

105

103

115

0

GL

12

2

6

8

10

4

2005 2006 20092007 2008


9.6

8.0 8.

4

9.1

8.4



Xstrata invested almost $500,000 in the study, which commenced in December 2008 with a comprehensive literature review of the legislation, past biodiversity studies and current management systems.

Three different biodiversity surveys covering vegetation, terrestrial fauna, and aquatic fauna were designed and undertaken separately in 2009.

The terrestrial vegetation survey was conducted in April and July 2009. There were no species of national significance identified through the survey. However, under state legislation five plant species and two regional ecosystems, Swamp Box Gullies and River Red Gums along creeks, were deemed to be of a conservation significance.

The terrestrial fauna survey was conducted in July and October 2009. There was one bird species (Red Goshawk) of national

significance identified through this survey. Under state legislation, two rare bird species and the vulnerable Purple-necked Rock-Wallaby species were also identified.

The aquatic fauna survey was conducted in February and April 2009. There were no species of national or state conservation significance identified, however a freshwater sole species was identified, and may undergo state re-classification to vulnerable.

Aside from these surveys, stakeholder workshops were held with the local Indigenous group, Kalkadoon Community Pty Ltd, to discuss the scope of the study and findings of the surveys.

The outcomes of the study have led to the development of a range of conservation management and weed management plans, which will be integrated into the existing Xstrata Mount Isa Mines

Environmental Management system. The information collected also contributes to setting strategic direction and identifying operational priorities for transitioning from the Mount Isa Mines Limited Agreement Act 1985 to the contemporary legislation in 2011.

This study highlights our commitment to the continual improvement of the biodiversity strategy with clear linkages to Xstrata’s Sustainable Development Standard 10, the principles set out by the International Council on Mining and Metals (ICMM) and the Xstrata Mount Isa Mines Environmental Management System.

The study was completed in February 2010 and a final presentation was delivered by Southern Gulf Catchments to Xstrata and other key stakeholders in March 2010.

case study

Biodiversity Study of Mining Lease 8058During 2009 Xstrata conducted a lease-wide biodiversity study in association with Southern Gulf

Catchments and a team of experts to enhance the sustainable management of Xstrata Mount Isa

Mines’ Mining Lease 8058 (ML8058).

Graduate Environmental Advisor Kate Ireland and Biodiversity Survey participant Penny Gleeson from Ecowise, conducting a macroinvertebrate survey



initiatives at our Mount Isa operations to limit potential environmental impacts on the local community. Emissions monitoring, control and impact reduction strategies are a major component of environmental management at Xstrata Mount Isa Mines.

In July 2007, Xstrata Mount Isa Mines established the Smelter Emissions Project to assess the feasibility to further improve the

Habitats protected or restored

The conservation significance of ML8058 has been interpreted with respect to the surrounding landscape, the conservation status of the species present and the potential and actual threats operating on the lease. Our copper operation is within a traditionally grazed area and confined to a minimal footprint. However there were some habitats identified during the 2009 biodiversity study which are deemed to be of conservation significance.

A conservation management plan was developed based on the outcomes of the study in relation to these regional ecosystems.

Following the vegetation survey, conducted as part of the biodiversity study, seeds were collected from a community of Eucalyptus nudicaulis trees. The conservation status of this species is being reviewed and may be classified as vulnerable. As such, plans are underway to propagate the seeds in 2010 for distribution to community groups throughout Mount Isa. Several seedlings will also be established on the mine lease.

More details regarding the Biodiversity Study can be found in the case study on page 49.

EmissionsXstrata Mount Isa Mines is committed to a process of continuous, proactive environmental improvement. Since taking ownership of Mount Isa Mines’ operations in 2003, Xstrata has invested in excess of $250 million on over 150 environmental

RSL Club, Barkly Highway

Erap St

Racecourse, Simpson St

Sunset State School

Station St

Qld Country Credit Union, Camooweal St

Kruttschnitt Oval

Incitec Pivot acid plant car park

FN Land, Fourth Ave

Parkside Flats, Railway Ave

Brett Ave

Opal St

Kookaburra St

Miles St

SO2 Monitors

TEOMs*

Hi-Volume Monitors

Xstrata Mount Isa Mines

capture and treatment of sulphur dioxide (SO2) emissions from the lead and copper smelters. In 2009, Xstrata invested more than $16 million on a range of initiatives to limit emissions as part of this project.

At Xstrata Mount Isa Mines we have a comprehensive SO2 and dust monitoring network to measure and manage the impact of emissions on the community. There are 15 monitoring stations throughout Mount Isa that monitor ambient SO2 levels and heavy metal dusts in the air.

The Air Quality Control Centre monitors ten SO2 real-time monitoring stations located in the community to ensure that the smelters operate within accepted regulatory limits. These in turn direct operations at Xstrata Mount Isa Mines’ copper and lead smelters and Incitec Pivot’s acid plant. Every Mount Isa resident lives no more than 1,200 metres from one of the real-time SO2 monitors.

There are also five high-volume dust samplers located throughout the community to monitor levels of respirable (particles small enough to be breathed in) lead, cadmium and arsenic in the air. Refer to the map above for locations of our monitors.

In May 2009, the Department of Environment and Resource Management (DERM) installed an Ambient Metals Monitor in Mount Isa that provides information on the level of metals in air. This new monitor supports Xstrata’s world-class air monitoring system which provides data to the DERM.

Ambient lead-in-air (PM10) concentrations in Mount Isa remained significantly lower than the Mount Isa Mines Limited Agreement

200720062005 2008 2009

Ambient PM10 lead-in-air 90 day average concentrations for monitored sites*

0

µg/m3

2.0

Mount Isa Mines Limited Agreement Act level

Monitoring Locations

RSLMiles St

BSDRacecourse

Kruttschnitt Oval

1.0

0.5

1.5

* Xstrata completed a detailed investigation into an air monitor reading from October to December 2009, which indicated that one out of the five high-volume air sampling stations had a disproportionately high lead level reading. The outcome of the investigation showed that lead levels at the particular air monitor were actually less than one third of regulatory limits.

North

* TEOMs are real time dust concentration monitors



Act 1985 air standard for 90 day average in 2009. Ambient lead-in-air (PM10) concentration data for 2005–2009 is presented below (left).

Dust generation is controlled primarily by regularly watering unsealed roads and keeping vehicle traffic volumes and speeds to a minimum. Dust suppressant additives are also used at our operations and a road sweeper is used to maintain reduced levels of dust on the sealed road areas.

Annual sulphur dioxide (SO2) emissions

The annual average ground level SO2 concentration was recorded as 16 micrograms per cubic metres (µg/m3) in 2009 compared to the average of 26 recorded in 2008. The 2009 result is well below the Mount Isa Mines Limited Agreement Act 1985’s required level of 80 micrograms per cubic metre. This is largely due to a decrease in the amount of hours of westerly winds blowing across town.

Westerly winds have a significant impact on Xstrata Mount Isa Mines’ operations. In 2009 wind conditions resulted in a total of 931 and 482 downtime hours to the copper smelter and lead smelter operations respectively compared to 1,021 and 385 hours during 2008.

Sulphur dioxide emissions were slightly higher in 2009, due to forced shutdowns by Incitec Pivot’s acid plant, which takes SO2 from the copper and lead smelters and converts it into liquid sulphuric acid, due to record rainfall events.

case study

Smelter Emissions ProjectXstrata Mount Isa Mines

is committed to a process

of proactive, continuous

environmental improvement.

Since taking ownership of Mount Isa Mines’ operations in 2003, Xstrata has invested in excess of $250 million on over 150 environmental initiatives to limit potential environmental impacts on the local community.

In July 2007, Xstrata Mount Isa Mines established the Smelter Emissions Project to assess the feasibility of a range of initiatives and activities to significantly increase the capture and treatment of sulphur dioxide (SO2) emissions. By improving the capture and treatment of SO2, Xstrata will also reduce heavy metal emissions.

As part of this project, Xstrata Mount Isa Mines is targeting an eight percent reduction in SO2 emissions at its lead smelter with the commissioning of an upgrade to its zinc-lead concentrator. The $11 million concentrator upgrade produces a higher quality concentrate with a lower proportion of sulphur.

The upgrade is part of the $120 million expansion of the concentrator over the past two years to increase production of zinc, lead and silver ore from an average

of 6.5 million tonnes per annum to 8.0 million tonnes per annum.

Brian Hearne, Chief Operating Officer, Xstrata Zinc Australia, said the upgraded concentrator provides a significant advance in the reduction of emissions.

“With further fine tuning and test work, we may be able to achieve higher grades of concentrate in the future, which would create even greater emissions reductions,” Mr. Hearne said.

“As our Smelter Emissions Project progresses, we will continue to deliver environmental improvements that limit potential impacts from our operations on the local community,” he said.

“With further fine tuning and test work, we may be able to achieve higher grades of concentrate in the future, which would create even greater emissions reductions.”

Annual* sulphur dioxide (SO2) emissions13

0

122

129

105

115

0

tonnes (’000s)

400

100

300

200

2005 2006 20092007 2008

Copper smelter Lead smelter

* National Pollutant Inventory (NPI) reporting year was 1 July 2008–30 June 2009

210

261

263

239

224

Members of Mount Isa’s Living with Lead Alliance view the upgraded zinc-lead concentrator



estimated on-site emissions at the source to the NPI on an annual basis. On-site emissions for the George Fisher underground mine and Handlebar Hill open cut zinc mine are reported separately due to their physical separation from the town complex.

Xstrata Mount Isa Mines reported substantial decreases in five of the eight emissions compounds to the NPI database in 2008/09 for which it was the top emitter the previous year (see table left). These decreases in lead, zinc, arsenic, antimony and cadmium were partly due to an increased volume of sampling which has improved confidence in emissions estimates. The NPI 2008/09 results also showed that Xstrata Mount Isa Mines became the top emitter of copper and cobalt for that period.

A significant reduction in NPI-reported emissions are expected for the 2009/2010 reporting year due to lower production profiles and enhancements and improvements carried out by the Smelter Emissions Project to maximise capture within current infrastructure constraints.

The NPI does not measure emissions into the community itself and cannot be used directly to determine the potential impact of these emissions on the community and the environment.

Information on the NPI and estimated on-site emissions at the source are available from www.npi.gov.au.

Emissions reduction strategies

Currently a number of major projects are underway at Xstrata Mount Isa Mines to manage emissions as well as to assess the potential for impact from emissions, the Smelter Emissions Project, and the Lead Pathways Study.

Smelter Emissions Project

Xstrata Mount Isa Mines established a Smelter Emissions Project team in 2009 to characterize smelter emissions, identify opportunities to significantly increase the capture and treatment of emissions, and design and implement operational and engineering controls to realise those opportunities.

In 2009, Xstrata Mount Isa Mines invested around $4 million towards emissions project activities at the copper smelter. These activities include:

■■ Control system improvements to maximise SO2 capture to the Incitec Pivot acid plant

The copper smelter recorded SO2 emissions of 134,100 tonnes in the 2008/2009 NPI reporting year. The copper smelter has achieved a 395,500 tonnes (75%) decrease on SO2 emissions (from 530,600 tonnes) since the acid plant, owned by Incitec Pivot, was introduced in 2000. The lead smelter SO2 emissions have been fairly consistent with their production rate.

Please refer to the case study on page 51 for further information on Xstrata Mount Isa Mines’ Emissions Reduction Strategies and the Smelter Emissions Project.

Xstrata Mount Isa Mines does not emit ozone depleting substances at either of its copper or zinc-lead operations.

National Pollutant Inventory

As the largest mining, processing and smelting operation in Australia, Xstrata Mount Isa Mines has a significant operational footprint including two open cut mines, three underground mines, two smelters, two concentrators, a filter plant, multiple engineering and maintenance facilities, warehouses and supply depots, rock quarries and tailings dams. As a result, Xstrata Mount Isa Mines is comparable to the sum of multiple individual mines and industrial facilities listed on the National Pollutant Inventory (NPI).

The NPI is an initiative of the Federal Department of Environment, Water, Heritage and the Arts. The Internet database contains information relating to the emission of 93 substances from industrial facilities and diffuse (non-industrial) sources across Australia. Xstrata Mount Isa Mines reports its

Tailings process water from the copper and zinc-lead concentrators enters the process water surge tanks where it will later be reused in the concentration process on site

Summary of top eight on-site emissions estimates as reported to the National Pollutant Inventory (NPI)

2008–2009 % change to previous year

2007–2008 % change to previous year

2006–2007

Antimony (t) 8.28 -60% 20.58 -21% 26.00

Arsenic (t) 40.02 -37% 63.50 -15% 75.00

Cadmium (t) 8.56 -17% 10.26 144% 4.20

Cobalt (t) 67.83 83% 37.13 290% 9.5

Copper (t) 94.92 -72% 338.25 -18% 410.00

Lead (t) 208.82 -21% 263.32 -15% 310.00

Sulphur dioxide (t)

262,626.42 5% 249,131.23 19% 210,000.00

Zinc (t) 237.86 -25% 315.93 -30% 450.00



■■ Installation of a Flexible High Temperature Fume Barrier to seal the ISASMELTTM Furnace Throat

■■ Feasibility studies for the ISASMELTTM Furnace and Rotary Holding Furnace Secondary Ventilation, the ISASMELTTM Furnace Sealed Feeder, and the Converter Primary and Secondary Hood Improvements

■■ Implementation of ‘best practices for reduced emissions’.

At the lead smelter, we invested around $12 million towards initiatives that lower emissions. Activities undertaken at the lead smelter include:

■■ Upgrades to the zinc/lead concentrator, which delivered an 8% reduction in SO2 emissions (based on current production levels and ore quality)

■■ Installation of a replacement bin at the Asarco baghouse

■■ Refurbishment of the 224 conveyor

■■ Upgraded ductwork over the sinter oven

■■ Implementation of a HMA baghouse maintenance program to lower dust levels.

Read more about these initiatives in the Case Study on page 51.

In 2010, work will continue towards assessing the feasibility of implementing a range of opportunities to significantly increase the capture and treatment of smelter emissions.

Lead Pathways Study

In late 2006, Xstrata commissioned an independent Lead Pathways Study to examine potential sources of lead in the Mount Isa community from both naturally occurring minerals and those from mining operations.

The Lead Pathways Study is a comprehensive research program being conducted by the University of Queensland’s Centre for Mined Land Rehabilitation in collaboration with the National Research Centre for Environmental Toxicology.

In 2009, Phase 1 (Land) report was completed. For more information go to: www.xstrata.com/operation/mountisa/publications. Please read more about the Lead Pathways Study in the Living safely with lead case study on page 34 of this report.

The Phase 2 (Air) study is continuing to investigate potential sources of dust in the community, their signatures in terms of lead make-up and the potential risk to human health. The Phase 3 (Water) study is examining water quality from samples taken in the Leichhardt River and its tributaries.

Waste and tailings managementXstrata’s Product Stewardship standard requires that all operations eliminate, reduce, reuse, recycle where practicable or responsibly dispose of waste. In line with this standard, Xstrata Mount Isa Mines has a waste management system that is continually evolving to suit the needs of operational areas.

At Xstrata Mount Isa Mines all non-salvageable waste is disposed of in line with our strict waste management systems and legislative requirements. In 2009, a total of 4.3 million tonnes of waste material was recycled. The major components being 3.3 million tonnes of tailings, used as underground fill in the copper underground operation, 85,700 tonnes of reprocessed copper reverts, and 750,200 tonnes of copper slag from our copper smelter. Over 16,300 tonnes of lead dross was recovered from the smelting process and sold to third party customers.

Other regulated wastes that were recovered include wastes such as oil (696 tonnes), batteries (46 tonnes) and non hazardous recyclable waste, primarily being scrap metal (3,700 tonnes) was recycled in 2009. A large proportion of the scrap metal is exported to South East Asia for recycling. There were no significant environmental spills during 2009.

Tailings at Xstrata Mount Isa Mines are stored as per the Tailings Placement Strategy. Currently, tailings dams seven and eight store all tailings produced by the operations. These two active dams at Mount Isa are split into an eastern and western fan. Tailings deposition alternates between the two on a regular basis to keep the fans moist to reduce the likelihood of dusting by wind gusts.

Seepage from the tailings dams is captured in seepage ponds and pumped back to the tailings dam to prevent off-site discharges. Seepage to groundwater is monitored through a series of groundwater bores. Assessment of tailings chemical properties indicates that they are non-acid forming.

Visual operational inspections are regularly completed on the tailings dams and seepage ponds by supervisors. External consultants undertake monthly and annual inspections of each of the tailings dam walls and an annual inspection which assesses the hydraulic and structural integrity of the dam.

Major waste streams and disposal/treatment methods 2009

Waste type Amount Treatment methods

Xstrata Mount Isa Mines copper operations

Batteries* (t) 23 Recycled

General waste (t) 2,358 Disposal at licensed landfill

Light vehicle tyres* 2,158 Disposed at licensed landfill

Scrap metal (t) 2,543 Processed on site and transported off-site for recycling

Tailings (t) 6,201,125

3,340,038

Tailings storage facility

Recycled as underground fill

Waste hydrocarbons* (kL) 230 Collected by subcontractor for off-site recycling

Xstrata Mount Isa Mines zinc-lead operations

Batteries* (t) 0.2 Recycled

General waste (t) 1,632 Disposal at licensed landfill

Light vehicle tyres* 685 Disposed at licensed landfill

Scrap metal (t) 1,144 Processed on site and transported off-site for recycling

Tailings (t) 4,616,185

515,613

Tailings storage facility

Recycled as underground fill

Waste hydrocarbons* (kL) 313 Collected by subcontractor for off-site recycling

* Hazardous wastes.

“In 2009, Xstrata Mount Isa Mines invested around $12 million towards initiatives that lower emissions at the lead smelter.”



Waste rock

Black Star and Handlebar Hill open cut mines have developed waste rock dumps from their open cut operations in accordance with best practice design principles. A major component is encapsulating potentially acid forming materials within the waste rock dumps for long term storage, away from exposure to weather.

Two projects were commissioned in 2008 to refine the dimensions required for long term encapsulation of potentially acid forming material. These included numerical modelling and field trial constructions. The field trials are focused on the design of moisture store and release cover systems which sit on top of the waste rock dump to contain rainfall during the summer and then release this moisture through evaporation during the dry season. The numerical modelling has focussed on final outer slope designs for the waste rock dumps.

The Black Star Open Cut Moisture Store and Release Cover System Trials were commissioned in May 2008 and this program will continue for approximately three to five years ensuring improved environmental outcomes for waste rock storage facilities at Xstrata Mount Isa Mines. To date, we have invested more than $1 million on these projects.

The ‘Role of Vegetation within Moisture Store and Release Cover Systems Field Trials’ is part of a doctorate study and research project which is being coordinated by the

At this time tailings waste is recycled as much as possible as underground fill. Filling of stopes is vital to ongoing development of the underground mines. By using tailings material in the fill process, the volume of consumables such as cement is significantly reduced.

Two major research and development projects have been initiated to assess long-term closure options and potential impacts from the tailings dams. These projects will be used to refine closure criteria for the dams to ensure that they are safe, stable and non-polluting in the long term.

Waste sludges generated at Xstrata Mount Isa Mines generally contain economically viable concentrations of copper and lead. These are stockpiled to dry and then re-processed through our processing plants to recover metal. If sludges are of no commercial value then they are deposited in a designated cell at the site’s licensed hazardous waste facility.

The table on page 53 identifies Xstrata Mount Isa Mines’ major waste streams and the disposal or treatment method for each.

Centre for Mined Land Rehabilitation at the University of Queensland. In May 2009, native grasses were planted to determine the role of vegetation in cover systems and how this vegetation affects the water balance of the system through the take up of water. Trial plots were constructed in two separate one month periods and monitoring and evaluation will take place over the next three years.

In 2009, a number of 3D simulations of erosion processes were completed. The findings from initial modelling show that current outer slope designs for the waste rock dumps will be stable into the long term. Field trials to calibrate these models commenced in 2009 and will be monitored over the next two to three years.

MaterialsWe are committed to the efficient use of input materials. As a result we are actively seeking opportunities to reduce input consumption. Effective management of input materials makes good business sense as it reduces our operating costs and reduces the impact on natural resources. For example, a significant amount of cement is saved by using tailings in filling operations of the underground copper and zinc-lead operations (refer to the table on page 53).

Almost 515,700 tonnes of tailings was mined from a disused tailings dam at the Mount Isa town complex and hauled 20 kilometres to the George Fisher Mine for use in the underground as fill, reducing the volume of cement that would otherwise be required.

Environmental Advisor Jono Sanders and Anne Schneider, PhD student, plant native grasses on the Black Star Open Cut waste rock dump as part of a study into how vegetation affects the water balance of cover systems



Throughout 2009 a process review of the lead-zinc concentrator has enabled a significantly decreased use of reagents used in the flotation cells. Cyanide usage has dropped by 59%, dextrin has decreased by 45% by removing the Jameson CellTM from the circuit and Sodium Carbonate (Soda Ash) has been removed from the process completely.

Transporting product, goods and materialsDue to the distance to the nearest regional centre, travel of products from Mount Isa is generally done by rail and road. Xstrata has undertaken a study to determine its carbon footprint from the transport of goods. We are also gathering information on our carbon footprint from the materials use, waste management and environmental management systems and strategies. These improvements have been detailed throughout this section of the report.

Product stewardshipXstrata’s SD Standards provide guidelines to ensure that the impacts and risks associated with our products and services are identified, analysed, evaluated and addressed. Material safety data sheets are completed for products and intermediaries, including product physical and chemical composition, risks to human health, handling, transport, storage and exposure control.

Copper has beneficial impacts on the environment. It improves electrical efficiency

and is used in a wide range of common electrical products such as refrigerators, computers, air conditioning, and electric motors. It also enhances the efficiency of renewable energy sources including geothermal, wind and solar. Health benefits have also been identified. In 2008, the US Environmental Protection Agency granted registration of copper and copper alloys as antimicrobial agents opening the way for the metal to be used in a wide variety of healthcare facilities.

Zinc is used for galvanising steel, which is a highly cost-effective and environmentally-friendly method of protecting steel against corrosion. Zinc also finds application in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals.

Lead is primarily used in lead acid batteries. Other applications for lead include alloys, submarine cables, lead sheeting and oxide lead uses.

A number of initiatives are in place at Xstrata Mount Isa Mines to facilitate and encourage responsible product design, and use, reuse, recycling and disposal of our products. This has been achieved through continuous improvements in our emissions reduction, materials use, waste management and environmental management systems and strategies.

In 2009, there were no significant fines for non-compliance with laws and regulations concerning the provision and use of products at Xstrata Mount Isa Mines.

Total material usage – Mount Isa Mines

Product Annual Usage

Cement (t) 124,588

Coal (t) 8,216

Coke (t) 37,724

Copper Sulphate (t) 896,734

Diesel Fuel (kl) 71,430

Grinding Media (t) 4,6061

Heavy vehicle tyres (ea) 56

Kerosene (kl) 13

Light vehicle tyres (ea) 176

Lime (t) 3,082

Limestone (t) 95,726

LPG Non Transport (kl) 525

Lubricants (kl) 27,642

Lubricating oils (kl) 2,542

Natural Gas GJ 1,139,843

Oils (kl) 1

Oxygen (t) 73

Silica (t) 28,412

Sodium Carbonate (t) 0.053

Sodium Hydroxide (t) 3402.482

Unleaded Fuel (kl) 167

Wood (t) 206

Xanthate (t) 1,481

Lake Moondarra, Mount Isa’s water supply and popular recreational area



Summary of key sustainability data

Economic Contribution 2008 2009

Employee wages (AUD $ million) 377 396Royalties and taxes (AUD $ million) 55.7 73.8Corporate Social Involvement (AUD $ million) 2.34 4Apprenticeships, scholarships and training (AUD $ million) 16.5 16.8

Our People

Total workforce (No.) 4,367 4,083Employees (No.) 3,428 3,362Contractors (No.) 939 721

Total employees covered by collective agreements (No.) 2,217 2,187Percentage of employees hired from local area (%) – † 64Average hours of training per employee (Hours) 72 111

Fatalities (No.) 0 1

Total Recordable Injury Frequency Rate (TRIFR) Mount Isa Mines copper operations 10.4 9.3Mount Isa Mines zinc-lead operations 13.1 17.8

Lost Time Injury Frequency Rate (LTIFR) Mount Isa Mines copper operations 0.5 1.05Mount Isa Mines zinc-lead operations 0.5 2.1

Disabling Injury Severity Rate (DISR) Mount Isa Mines copper operations 98.8 175.04Mount Isa Mines zinc-lead operations 80.7 141.4

Occupational illnesses (No.) 12* 16

Our Community

Community complaints (No.) 68‡ 151

Our Environment

Direct energy use (PJ) 5.2 4.2Total energy use (PJ) 8.9 7.8Energy intensity (GJ per tonne contained metal) 13 11Carbon intensity (tonnes CO2-e er tonne contained metal) 1.4 1.3

Total water use (GL) 8.0 8.4Direct greenhouse gas emissions (CO2 equivalent thousand tonnes) 397 343Total greenhouse gas emissions (CO2 equivalent thousand tonnes) 969 902Sulphur dioxide emissions (thousand tonnes) 261 263Ground level sulphur dioxide concentration (Annual average micrograms per cubic metre) 26 16

Land disturbed (hectares) 3,537 23Land rehabilitated^ (hectares) 10 0Category 3 (significant) incidents (No.) 0 0Category 4 (serious) incidents (No.) 0 0Category 5 (disastrous) incidents (No.) 0 0

Prosecutions ($) 0 0Fines ($) 0 0

† The percentage was not previously reported.* Mount Isa zinc-lead operations did not report on occupational illnesses in 2008.‡ Fallout damage claims from the copper smelter and Incitec Pivot acid plant were not reported in the 2008 report, which accounts for the increase.^ Approximately 10 hectares of land was partially rehabilitated through remediation research and development projects.


GRI indexThis table indicates where to locate information relating to GRI G3 indicators and principles

in this report or other publications.

Indicator Description Level Reference

Strategy & analysis

1.1 Statement from the most senior decision maker about the relevance of sustainability to the organisation and its strategy p.2–3

1.2 Description of key impacts, risks, and opportunities p.3,10–11

Organisational Profile

2.1 Name of the organisation Inside front cover

2.2 Primary brands, products, and/or services

2.3 Operational structure of the organisation

2.4 Location of organisation’s headquarters

2.5 Number of countries where the organisation operates, and names of countries

2.6 Nature of ownership and legal form Inside front cover

2.7 Markets served including geographic breakdown, sectors served, and types of customers/beneficiaries p.15

2.8 Scale of the reporting organisation p.1

2.9 Significant changes during the reporting periods p.7

2.10 Awards received in the reporting period p.11

Report Parameters

3.1 Reporting period for information provided p.7

3.2 Date of most recent previous report

3.3 Reporting cycle

3.4 Contact point for questions regarding the report or its contents Inside front cover

3.5 Process for defining report content p.7

3.6 Boundary of the report

3.7 State any specific limitations on the scope or boundary of the report n/a (no specific limitations)

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities n/a –

3.9 Data measurement techniques, and the basis of calculations n/a Did not substantially

diverge from the GRI Indicator

protocols

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and reasons p.7

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied p.7

3.12 Table identifying the location of the standard disclosures report p.58–60

3.13 Policy and current practices with regard to external assurance p.7

Governance, Commitments and Engagement

4.1 Governance structure of the organisation p.12

4.2 Indicate whether the Chair of the highest governance body is also an executive officer n/a Refer to Xplc 2009 Sustain. Report

4.3 State the number of members of the highest governance body that are independent, and/or non-executive n/a

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body n/a

4.5 Linkage between compensation and the organisation’s performance (including social and environmental performance) n/a

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided n/a

4.7 Process for determining the qualification and expertise of Board members on economic, environmental, and social topics n/a

4.8 Statements of mission or values, codes of conduct, and principles p.9

4.9 Procedures for overseeing the identification and management of economic, environmental, and social performance p.12–13

4.10 Processes for evaluating Board performance, particularly with respect to economic, environmental and social performance p.12

4.11 Explanation of whether and how the precautionary approach or principal is addressed by the organisation p.9

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses p.13

4.13 Memberships in associations and/or national/international advocacy organisations

4.14 List of stakeholder groups engaged by the organisation p.31

4.15 Basis for identification and selection of stakeholders

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group p.31–32

4.17 Key topics and concerns raised through stakeholder engagement, and how the organisation has responded p.32–33

Economic indicators

EC1 Direct economic value generated and distributed p.15

EC2 Financial implications, other risks and opportunities for the organisation’s activities due to climate change p.44–45

EC3 Coverage of the organisation’s defined benefit plan obligations p.27

EC4 Significant financial assistance received from government p.16

EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation p.27

EC6 Policies, practices and proportion of spending on locally-based suppliers at significant locations p.16

EC7 Procedures for local hiring, and proportion of senior management hired from the local community p.27

fully reported partially reported not reported n/a = not applicable


GRI Index


EC8 Development and impact of infrastructure investments and services provided primarily for public benefit p.16,38

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts

MM1 Identification of sites where the local economic contribution and development impact is of particular significance p.15–17

MM2 Value added disaggregated to country level n/a –

Environmental indicators

EN1 Weight of materials used by weight or volume p.55

EN2 Percentage of materials used that are recycled input materials

EN3 Direct energy consumption by primary energy source p.47

EN4 Indirect energy consumption broken down by primary source

EN5 Energy saved due to conservation and efficiency improvements p.46–47

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements

EN7 Initiatives to reduce indirect energy consumption and reductions achieved

EN8 Total water withdrawal by source p.47–48

EN9 Water sources significantly affected by withdrawal of water

EN10 Percentage and total volume of water recycled and reused

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas p.48

EN12 Description of significant impacts of activities on biodiversity in protected areas and areas of high biodiversity value

EN13 Habitats protected or restored p.50

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity p.48,49,50

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk p.48

EN16 Total direct and indirect greenhouse gas emissions by weight p.45–46

EN17 Other relevant indirect greenhouse gas emissions by weight n/a –

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved p.46–47

EN19 Emissions of ozone-depleting substances by weight n/a no ozone depleting substances

EN20 NOx, SOx, and other significant air emissions by type and weight p.50–53

EN21 Total water discharge by quality and destination p.48

EN22 Total weight of waste by type and disposal method p.53–54

EN23 Total number and volume of significant spills n/a no spills

EN24 Weight of transported, imported, exported, or treated hazardous waste p.53

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by discharges of water and runoff p.47

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation p.55

EN27 Percentage of products sold and their packaging materials that are reclaimed by category n/a –

EN28 Value and number of significant fines and non-monetary sanctions for non-compliance with environmental laws and regulations p.44

EN29 Significant environmental impacts of transporting products and other goods and materials p.55

EN30 Total environmental protection expenditures and investments by type p.43

MM3 The number/percentage of sites identified as requiring biodiversity management plans, and with plans in place p.48

MM4 Percentage of product(s) derived from secondary materials

MM5 Policies for assessing the eco-efficiency and sustainability attributes of products n/a Refer to Xplc 2009 Sustain. Report

MM6 Approach to management of overburden, rock, tailings, and sludges/residues p.54–55

Labour Practices and Decent Work

LA1 Total workforce by employment type, employment contract, and region p.27,29

LA2 Total number and rate of employee turnover by age group, gender, and region

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations p.27

LA4 Percentage of employees covered by collective bargaining agreements

LA5 Minimum notice period(s) regarding significant operational changes

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region p.19–25

LA8 Education, training, counselling, prevention, and risk-control programs in place regarding serious diseases p.22–25

LA9 Health and safety topics covered in formal agreements with trade union

LA10 Average hours of training per year per employee by employee category p.28–29

LA11 Programs for skills management and lifelong learning p.28

LA12 Percentage of employees receiving regular performance and career development reviews

LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity

p.27

LA14 Ratio of basic salary of men to women by employee category p.27

MM12 Approach to identifying, preparing for, and responding to emergency situations p.22

MM13 Number of new cases of occupational disease by type. Programs to prevent occupational disease p.22


GRI Index


Human Rights

HR1 Percentage and total number of significant investment agreements that include human rights clauses or human rights screening n/a –

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken p.12,21

HR3 Employee training on policies and procedures concerning aspects of human rights p.12

HR4 Total number of incidents of discrimination and actions taken p.27

HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk p.27

HR6 Operations identified as having significant risk for incidents of child labour p.12

HR7 Operations identified as having significant risk for incidents of forced or compulsory labour

HR8 Percentage of security personnel trained in policies or procedures concerning human rights

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken p.36

Society

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

p.31–41

SO2 Percentage and total number of business units analysed for risks related to corruption p.13

S03 Percentage of employees trained in organisation anti-corruption policies and procedures

S04 Actions taken in response to incidents of corruption

SO5 Public policy positions and participation in public policy development and lobbying

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country

SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes

SO8 Monetary value of and total number of fines or non-monetary sanctions for non-compliance with laws/regulations n/a no fines or sanctions

MM7 Description of significant incidents affecting communities during the reporting period, and grievance mechanisms used p.36

MM8 Description of programs in which the reporting organisation has been involved that addressed artisanal and small-scale mining (ASM) n/a no ASM

MM9 Description of resettlement policies and activities n/a no resettlements

MM10 Number or percentage of operations with closure plans, company policy, stakeholder engagement processes, frequency of plan review, and amount and type of financial provisions for closure

p.37

MM11 Process for identifying local communities’ land and customary rights, including those of indigenous peoples, and grievance mechanisms used to resolve any disputes

p.36

Product Responsibility

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

p.55

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

n/a –

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship n/a –

PR9 Monetary value of significant fines for non-compliance with laws/regulations concerning the provision and use of products and services n/a no fines

GlossaryAQC Air Quality Control centre. The centre monitors sulphur dioxide emissions and weather conditions and directs the operations of the Mount Isa Mines smelters to control sulphur dioxide concentrations within license limits.

AWAs Australian Workplace Agreements.

Biodiversity An abbreviation of ‘biological diversity’ that means the variability among living organisms from all sources, including land based and aquatic ecosystems of which they are a part. These include diversity within species, and of ecosystems.

Business Principles Xstrata’s Statement of Business Principles sets out the ethical framework for the way we work globally. The statement sets out specific aspirations and commitments that apply to the company’s relations with its customers, employees, stakeholders, partners, suppliers and in the communities where it operates.

Carbon intensity Calculated as CO2-e tonnes per tonne of product.

CAS Community Attitudes Survey.

Closure Plan A formal document detailing a costed conceptual outline of how the operation will be completed, taking into account the options available to deal with prevailing social and environmental issues.

CO2-e Carbon dioxide equivalent is a standard metric by which greenhouse gases other than carbon dioxide are converted to CO2 equivalence to facilitate comparisons and quantification.

Commodity business Xstrata’s activities are structured into global commodity businesses organised along commodity lines.

Community grievances Any issue raised by a member of the community relating to the operation in question, whether resolved or not. This can relate to an enquiry or other incident or non-compliance.

CPRS Carbon pollution reduction scheme.

CSI Corporate Social Involvement.

DEEWR Federal Government Department of Education, Employment and Workplace Relations.

DERM Queensland Department of Environment and Resource Management.

DISR – Disabling Injury Severity Rate Disabling injury severity rate = (LTI days lost + RWI days lost) x 1,000,000/hours worked in the reporting period.

DPM – Diesel Particulate Matter Consisting of small particles that aggregate to form chains to make larger particles which are usually less than one micron.

EEO Energy Efficiency Opportunity.

EHM Ernest Henry Mining.

EIS Environmental Impact Statement.

EITI Extractive Industries Transparency Initiative aims to increase transparency in transactions between governments and companies within extractive industries.

EPA Environmental Protection Agency (now DERM).

ERT Emergency Response Team.

ESIA Environmental and Social Impact Assessment.

ETS Emissions trading scheme.

Fatality A death resulting from an occupational injury or disease/illness and identified within the reporting period.

Feed Ore entering the beginning of a unit process.

Freshwater Untreated water extracted from ground water, dams or rivers.

GFC Global Financial Crisis.

GFM George Fisher Mine.

GHG – Greenhouse gas Any gas that absorbs infra-red radiation in the atmosphere, causing the warming of the earth’s atmosphere.

GJ Gigajoules (1 GJ = 1,000,000,000 joules).

Global Compact The UN Global Compact is a voluntary corporate responsibility initiative to advance ten universal principles in the areas of human rights, labour, the environment and anti-corruption.

GRI – Global Reporting Initiative a multi-stakeholder, international process whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines to assist corporations in reporting on the economic, environmental, and social performance of their operations.

ha Hectares (1 ha = 10,000 square metres).

HMA Hosokawa Mikropul Australasia

Hours worked Total number of hours worked by employees in the reporting period, including overtime and training, excluding leave, sickness and other absences, including the total number of contractor hours worked on site during the year.

Inhalable dust is dust of less than 100 microns Aerodynamic Equivalent Diameter that enters through the nose and or mouth.

ICMM International Council on Mining and Metals.

ISO International Standardisation Organisation.

ISO 14001 The International Standardisation Organisation’s standard for environmental management systems.

IUCN International Union for the Conservation of Nature and Natural Resources, also known as ‘World Conservation Union’.

kg Kilogram (1 kg = 1,000 grams).

kL Kilolitre (1 kL = 1,000 litres).

Km Kilometre (1 km = 1,000 metres).

kW Kilowatt (1 kilowatt = 100,000 watts).

Land disturbed Land disturbed by operational activities.

Land rehabilitated Land disturbed by operational activities and then reshaped and revegetated.

LPG Liquid petroleum gas.

LSI Life Styles Inventory.

LTI – Lost Time Injury An occupational injury or disease that results in days away from work on any rostered shift subsequent to that on which the injury occurred. A fatality is also recorded as an LTI.

LTIFR – Lost Time Injury Frequency Rate Lost time injury frequency rate = LTI x 1,000,000/hours worked in the reporting period.

Materiality Disclosing all information of significant concern to stakeholders for assessing our economic, environmental, and social performance.

MICO Mount Isa copper operations, consisting of the R62 and X41 underground copper mines and the copper concentrator.

Micron one millionth of a metre.

MISC Mining Industry Skills Centre.

ML Megalitre (1 megalitre = 1,000,000 litres or 1,000 kilolitres).

ML8058 the Xstrata Mount Isa Mines mining lease.

MTI Medical Treatment Injuries an occupational injury/illness which is not classified as an LTI or RWI, but which results in loss of consciousness or medical treatment after first aid.

MW Megawatt, a unit for measuring electric power, which has the value of 1,000,000 watts or 1,000 kilowatts.

MWh – Megawatt hours the number of megawatts used in an hour.

μg/dl Micrograms per decilitre.

NGERS National Greenhouse and Energy Reporting System.

NGOs Non-governmental organisations.

NICP National Indigenous Cadetship Program.

NISC National Industry Skills Centre.

NOHSC National Occupational Health and Safety Commission.

NOx Oxides of nitrogen (nitric oxide and nitrogen dioxide).

NPI National Pollutant Inventory. Australia’s national public database of pollutant emissions.

Occupational illness An occupational illness is registered when it is confirmed as a work-related compensable case by a medical practitioner/physician.

Ore A mineral-bearing rock from which metal can be extracted.

Oz Ounces.

Particulate emissions Controlled discharges from stacks containing microscopic solids in the form of dust or smoke.

PASS Positive Attitude Safety System.

PER Review Performance and career development review.

PJ Petajoules (1 PJ = 1,000,000,000,000,000 joules).

PM10 Particulate matter less than 10 microns in size.

PPE Personal protective equipment.

QMEA Queensland Minerals and Energy Academy.

QRC Queensland Resources Council.

Recycled water Recycled/re-used water is water that has been used at least once in a process within the operation or at another operation within the organisation; and that would otherwise be part of a waste stream; and if not re-used, would require the input of raw water.

Red List IUCN Red List of Threatened Species.

Rehabilitation In this report, rehabilitation is defined as disturbed areas that have been prepared for rehabilitation and seeded.

Respirable dust is dust of less than 10 microns Aerodynamic Equivalent Diameter that enters the deep lung.

RFDS Royal Flying Doctor Service.

SD Sustainable Development.

SD Standards A set of 17 Standards which set out corporate performance expectations for each operation and against which sites and commodity businesses are independently audited through the Xstrata SD Assurance Program.

SO2 Sulphur dioxide.

STEPers Structured Training Employment Project – Employment Resources Services.

Stormwater Rainfall that does not infiltrate into the soil but runs overland into creeks, catchment areas or man-made water storage facilities, such as dams (i.e. unplanned discharge of water).

Tailings and tailings dams The fine fraction of waste rock remaining after the mining and on-site processing of mineral resources. Tailings are piped into engineered impoundments known as tailings dams.

t tonnes. (1 t = 1,000 kg)

TPUG Townsville Port Users Group

TRIFR – Total Recordable Injury Frequency Rate Total recordable injury frequency rate = (LTI + RWI + MTI) x 1,000,000/hours worked.

UN United Nations.

Wastewater discharged Total volume of effluent discharged to: surface water for irrigation; third parties for treatment; and rivers or oceans.

WHO World Health Organisation.

XCPPNQ Xstrata Community Partnership Program North Queensland.

Xplc Xstrata plc.

XPS Xstrata Power Station.

Xstrata Mount Isa Mines Refers to the copper and zinc-lead operations on ML8058.

MIM1461 02/10

www.xstrata.com

Mount Isa Mines Limited ABN: 87 009 661 447

Private Mail Bag 6 Mount Isa Queensland 4825 Australia Tel +61 7 4744 2011 Fax +61 7 4744 3731

Xstrata Queensland Limited ABN 69 009 814 019

GPO Box 1433 Brisbane Queensland Australia 4001 Tel +61 7 3295 7500 Fax +61 7 3295 7640

Documents

XSTRATA MOUNT ISA MINES Xstrata Mount Isa Mines ... · Xstrata Mount Isa Mines Private Mail Bag 6 Mount Isa, Queensland, 4825 Australia Xstrata Ethics Line The Xstrata Ethics Line