Luzenac 20-pages - Rio Tinto

Meeting Today’s Needs.
Securing Tomorrow’s.
2003
Luzenac Sustainable Development Report

profile & policy
2 Luzenac
“Printed on Luzenac talc-coated paper
made from pulp from sustainably
managed forests and containing 30%
recycled paper”
Design: NEWriver Toulouse, France.
33 5 34 50 21 50
Printed by: Imprimerie Lahournere
Toulouse, France.
Who are we?
Luzenac is the world’s largest talc producer. Every year,
we produce and sell in excess of 1.4 million tonnes of talc
from 11 mines and 20 processing plants in Europe, North
America and Asia-Pacific. As world leader in our field, we are
committed to setting the standards for the talc industry in such
areas as innovation, product quality, health, safety and
the environment, community relations and sustainable
development (SD).
Luzenac is a wholly owned subsidiary of Rio Tinto, a world
leader in the finding, mining and processing of mineral
resources. Rio Tinto is one of the world’s leading thinkers in
the field of sustainable development, and has been the
driving force behind the Global Mining Initiative, designed to
develop an SD model to improve the mining sector’s social and
environment performance.
Since 2002, Luzenac has been playing a leading role in
the voluntary scheme for the public reporting of sustainable
development indicators (SDI) launched by the European
Commission (EC). The aim of the SDI scheme is to throw light on
how companies are working to balance the environmental,
social and economic dimensions of their businesses. It is the first
of its kind in the world and Luzenac is serving on the EC
Working Group, alongside Government, NGO and other industry
groups, as the official representative of the European Industrial
Minerals Association. For more information see page 4.
Our Sustainable
Development Policy
Luzenac acknowledges that balancing the increasing needs of
the growing population with the Earth’s natural systems and
resources is the biggest challenge the human race is facing.
Luzenac realises that industry, government and civil society
must work together to meet this challenge and is committed to
doing its part, in line with our Code of Conduct for Ethical
Business Practice.
Luzenac interprets sustainable development as meaning
specifically:
¬ Building quality relationships with our customers
¬ Implementing fair and safe employee practices
¬ Enjoying respected status in our communities
¬ Managing the environment responsibly
¬ Making efficient use of mineral deposits
¬ Fostering supplier and joint venture relationships that are
in line with our HSEC standards
¬ Ensuring the economic, social and environmental viability
of all our acquisitions and projects.
Luzenac will set goals in these areas, monitor progress and
pursue continuous improvement based on communicating,
learning and adapting.
Luzenac believes that adherence to this policy delivers
sustainable growth in ethical shareholder value.

Welcome…
Welcome to Luzenac’s second sustainable development report.
2003 was an important year for us as we progressed from the ideas
and ambitions set out in our SD Policy to taking concrete action in our
business. These actions included offsetting greenhouse gas emissions,
taking a structured approach to community relations, promoting biodiversity,
and looking at how the human resources function can contribute to
SD. We also greatly improved our financial performance through an efficiency-based
cost-cutting drive.
One central theme for Luzenac is the efficient and responsible use of our
resources: the talc ore we mine, the energy and water we use, the after-use
of the land we disturb, and the support we give to our local communities.
In this report we describe our efforts in all the above, both as Luzenac and
as a member of the industrial minerals industry.
In all these areas, it is our ‘Human Resources’, our employees, who make it
possible to innovate, progress and exercise good corporate governance. The
responsible selection and development of our people is the key, therefore, to
our continued success—economic, social and environmental.
In 2003, we strengthened our safety systems with the introduction worldwide
of our own software management tool and a more hands-on
approach to safety from managers in the field. Despite a poor result in
terms of the number of lost time injuries, the trend is towards less serious
accidents. Constant effort is needed to maintain this trend.
In environmental matters, our Mexican and Australian operations
obtained ISO 14001 certification. This completed the set until
we acquired the controlling interest in two process plants in Japan.
We are giving priority to safety systems here but will be working towards
certification for these operations as well.
Throughout the year we witnessed growing interest in our SD efforts from
our leading customers. Many of them are as committed to SD as we are
and they are finding comfort in their talc supplier sharing these values and
thus being a more secure business partner.
Whether you are a customer, employee, neighbour, investor, policy maker,
regulator or opinion former, we hope you find something of interest in this
report and welcome your suggestions on how we can continue to improve.
Joachim Roeser
President and CEO
Luzenac Group
Contents
4
5
7
10
12
14
16
17
18
19
EC Voluntary Scheme
for the reporting of SD Indicators
Building quality relationships
with our customers
Implementing fair and safe
employee practices
Enjoying respected status in our
communities
Managing the environment
responsibly
Talc, the mineral that contributes
to sustainable development
Making efficient use of our
mineral deposits
Fostering supplier and joint venture
relationships that are in line
with our HSEC standards
Ensuring the economic, social and
environmental viability of all our
acquisitions and projects
2001 Sustainable Development
Indicator Data for the EU
Industrial Minerals Industry
2003 targets vs.
performance
targets targets
2004 targets
2003
2004
talc for the world 3
targets targets
welcome

european commission
4 Luzenac
Sustainable development
indicators for the EU non-energy
extractive industry
European Commission voluntary
scheme for collecting and reporting
industry data
In the millennium year, the European Commission began a process of
engagement with the industrial minerals industry and its stakeholders
on the subject of sustainable development.
Europe is rich in natural resources and the extraction and
supply of minerals play a crucial role in the European
economy and society. Minerals provide many of the basic raw
materials that are essential for modern society, including
construction materials for the building of homes and roads, metals
for the production of cars and mobile phones, and specialist
minerals used in agriculture, pharmaceutical products and other
industrial processes.
However, mineral extraction can have significant environmental
effects if it is not properly controlled. In the last twenty years,
a number of incidents at mining sites coupled with shifting public
awareness concerning the environmental and societal performance
of industry has led to a change in European policy
strategies—requiring more secure and responsible industries
whilst maintaining the competitiveness of the different sectors.
In May 2000, the European Commission published a
Communication on promoting sustainable development in the EU
non-energy extractive industry. The Communication identified the
need for more transparency and improved dialogue between the
main stakeholders and for more voluntary initiatives—all of which
are key to achieving a sustainable minerals industry.
The extractive industry responded positively and under the
auspices of the DG Enterprise’s Raw Materials Supply Group has
been working to develop sustainable development indicators for
this sector. The indicators cover the three pillars of sustainable
development—environmental, social and economic—and include
the use of dangerous substances, communication with the local
community, health and safety, and land use. This is the first
time that SD indicators have been gathered and published
in this way. They provide an insight into the key areas of
interest to communities and public policy makers.
Luzenac played a key role in the creation of the voluntary
reporting scheme, serving on the Working Group,
alongside Government, NGO and other industry groups, as
the official representative of the European Industrial
Minerals Association.
The scheme is now up and running and the results of the
first data collection exercise, covering the year 2001, can be
accessed at the following web address:
http://europa.eu.int/comm/enterprise/steel/non-energy-extractive-industry/sd-indicators.htm
Luzenac is committed to providing this data for its
European operations and to urging others to do likewise.
It is our hope that this voluntary scheme will grow and that
it will provide a mechanism for improved SD performance
across the whole industry as well as demonstrate to policy
makers and land use planners the need to nurture our
industry.
For 2001 SD Indicator data for the EU Industrial Minerals
industry see page 19. ¬

Building quality relationships
with our customers
Much of the thinking and resulting action in sustainable
development involves how you build and conduct relationships.
For Luzenac, our most important relationships are with our
customers. Without them we would not exist. They are first among
talc for the world 5
equals. customers
From the outset we examined how our SD concept could
increase business value both for us and for our customers. One
important area is the environmental benefits talc brings in its
end-use applications. We work closely with customers to enhance
these benefits and to develop new ideas. In 2003, for example,
we rolled out three innovations for the wastewater treatment,
wood-plastic composites and agrochemical markets—all of which
contribute to protecting the environment in one way or another
(see page 15).
Another important area for our customers is Life Cycle
Assessment. Life Cycle Assessment is an integrated
cradle-to-grave approach to evaluating the environmental
performance of products and services. We actively assist our
customers in their Life Cycle Assessment processes and provide
them with all the technical data they need on our products.
In logistics, Luzenac has been working with customers to reduce
fuel consumption per tonne of product delivered through better
routing, good fleet maintenance, and maximisation of rail and
waterway opportunities. We have also improved safety for our
customers by integrating safety regulations into our haulage
supplier contracts.
2003 also witnessed the integration of our European customer
service function into our Business Units based in Toulouse,
France. Customers work with a dedicated customer service
assistant who is capable of following the sales process through
from start to finish and who shares their language and culture.
This fully integrated customer service function shortens the
offer-to-delivery chain and facilitates contact between our
Business Units and their customer base.
By making us a more sustainable and reliable supplier, Risk
Management—including improved asset protection, business
interruption control, and crisis management systems—brings
many customer benefits. Indeed, in an era where customers
want “just-in-time” delivery and zero storage at their sites, Risk
Management is becoming increasingly important. Luzenac
invested a great deal of time and effort in these areas last year.
Luzenac contributes to safeguarding
its customers’ reputations. By keeping
our own house in order in HSE and
community relations, and by making
sure our key suppliers do the same, our
customers can rest assured that their
talc supplier will be enhancing rather
than damaging their own good names.
ISO 9001-2000 certification for all Luzenac
operations
In 2003, we continued upgrading our documented Quality
Management System to the current ISO 9001-2000
standard. Whilst all our production sites have had
documented systems in place since the early 1990’s, in
2002-2003, Luzenac’s headquarters and R&D labs in
Europe and the US were included in the scope of the
project. A lot of hard work has been put into this project
and we are now proud to announce that all Luzenac
operations worldwide are ISO 9001-2000 certified.
The desired outcome of this process however is not just
the achievement and recognition of obtaining ISO 9000
certification. The bottom-line is that this paves the way for
our customers worldwide to receive more consistent,
sustainable, higher quality products and service—well into
the twenty first century. ISO 9000 certification also serves
as a reminder to customers, employees and the community
that Luzenac is in the talc business for the long term, and
as such, will make the necessary investments in both
people and resources to ensure a healthy, equitable, and
sustainable future.
2003
targets vs. performance
> We presented our SD approach to key
customers worldwide, and pursued
dialogue with them on HSEC and
product stewardship.
> We incorporated HSE provisions into
many of our outsourcing contracts.

customers
6 Luzenac
004 targets
> Establish SD dialogue with 10 new
key customers in Europe and the USA
and identify SD related risks and
opportunities.
> Reduce number of non-conformances
and develop improved corrective action
and root cause analysis tools.
Supplier recognition
Happily, our efforts to be what our customers want us to be do not
go unrecognised.
BEHR Process Corporation manufactures quality paint products
for the North American market. BEHR’s 34 consecutive years of
record sales have earned it the mantle “world's fastest growing
paint company" and rank it number two in the US architectural /
trade paint market.
In 2003, BEHR honoured our American operations with an
excellence award in recognition of “commitment to quality and
exceptional performance". BEHR recognises that, by providing
high quality raw materials, on-time delivery and expert technical
service, its suppliers are critical to its success.
At BEHR’s annual supplier appreciation dinner held
at its headquarters in Santa Ana, California, Cyriac Alexander,
Senior VP Purchasing and Technology, acknowledged that,
despite some significant swings in BEHR production with
major peaks in output, Luzenac had been able to
“respond impressively”. ¬
crop
protection
wastewater
treatment
wood-plastic
composites
Luzenac’s Invelop® SPF is a natural, talc-based
solution that replaces the use of synthetic
chemicals and continuous cooling systems for
protecting growing fruit and crops from the
sun’s damaging rays.
Luzenac’s Aquatal® provides biological wastewater
treatment plant operators with an
all-round natural solution to sludge settleability
and dewatering problems.
Incorporating talc into sustainable construction
materials like wood-plastic composites can
considerably enhance their performance.
route du talc
Building solid customer relations
doesn’t have to be all work and no play.
For the last five years, our Paper
Business Unit based in Toulouse has
been creating networking opportunities
for customers and staff through an
annual bike-riding event known as
the Route du Talc. Hosted by our
French operation in the Pyrenees, the
Route du Talc is a golden opportunity
for would-be Lance Armstrongs from
Luzenac and our papermaker customers
to show what they are made of during
a 14 kilometre slog from Luzenac village
(800 metres) up to Trimouns mine (1,800
metres).
Last year’s venue included the usual
bike ride followed by an al-fresco lunch
of spit-roast lamb, and a trip to the
nearby Niaux prehistoric caves housing
some of Europe’s finest cave paintings.
Since its inception in 1999, the event has
been attended by representatives from
most of our European paper customers.

Implementing fair and safe
employee practices
Our employees are our most valuable resource. Their talents,
competencies and commitment are competitive advantages that
drive our mission as a market-focused, values-based, global talc
supplier of choice.
In 2003, we continued focusing efforts on safety, with the
introduction of the SAFER programme in all our operations.
Safety is, and always will be, our priority.
Safety remains our number one priority
In our 2002 edition, we reported the death of an Australian
colleague in a traffic accident, killed whilst driving on a public
road during a technical visit to the US. The risk of a road accident
is a constant one for most of us and in February 2003 an Austrian
colleague was killed in her car on the morning commute to the
office. The definitions are such that this was not classified as a
work-related accident; however, we treated it in a very similar way.
We want all our people to be safe, on or off the job. Part of our
response was to offer safe driver training to all employees who do
significant driving as part of their job. Safety kits (comprising a
hammer, seat belt cutter, fluorescent vest, etc.) were approved and
offered at reduced prices to all employees. As we make our mines
and plants safer, the dangers of driving stand out more.
We also initiated a training programme for employees who carry
out work on customers’ premises such as installing and operating
talc slurry units for the paper industry. They now have the same
level of protection and training as those working in our mines and
plants.
We missed our 2003 headline Key Performance Indicator LTIR
(Lost Time Injury Rate) objective.The target was 0.65 but the result
was a hugely disappointing 1.39. There was good news along with
the bad, however. The All Injury Rate (AIR: LTIs plus medical
treatment cases with no lost time) was down to 1.6 from 1.9
the previous year. Luzenac Europe met its AIR of 1.2. Only three
incidents involved contractors and we had no accidents with
electricity. Muscle strains, caused by incorrect lifting and pulling,
accounted for 11 out of 21 LTIs. Without these our target would
have been met.
However, we are not interested in juggling with statistics.
Our only concern is the safety of individuals, and in 2003
we are delighted to report that nobody was seriously hurt.
One of the most frustrating aspects of our safety record is
that 80% of our accidents were clearly the result of unsafe
behaviour on the job. To heighten awareness of this and in
a bid to establish a culture in which employees take full
responsibility for their own and their colleagues’ safety, our
operations worldwide strengthened their pre-task risk
assessment programmes in 2003.
Based on a standardised pre-task process known as
“SAFER” (Stop And First Evaluate Risk), the programme
encourages employees to stop, analyse the task, actively
search for hazards and then apply controls to reduce or
eliminate hazards prior to beginning work.
Some of our operations have been using the
pre-task risk assessment programme for several
months now and the process is proving to be
very effective in reducing our injury frequency
and severity rates. Additional benefits include
improvements in efficiency, quality, job planning
and, ultimately, time-savings.
For 2004, we have kept the same LTIR target of
0.65 and will continue focusing on behaviour.
We have hired DuPont Safety Resources to
advise us how we can improve our internal
communications and working habits. We have
also enlisted the help of our Human Resources
department to make sure we have the right set of
incentives and sanctions in place.
We are determined as ever to have a company
where everyone can come to work and not get
hurt, year after year. ¬
Luzenac Group Lost Time Injury Frequency Rate
(employees and contractors combined)
talc for the world 7
employees

employees
8 Luzenac
003
argets vs performance
> Crisis Management plans were
completed including SEVESO II
provisions. We drew up danger effect
zone maps, which indicate any
dangerous facilities within 3 km of our
sites. These are being used throughout
Luzenac and have been adopted by
Rio Tinto.
> An LTIR of 1.39 against a target of 0.65.
> We drew up a set of groupwide HR
polices, principles and values.
> We introduced two new training
programmes in project leadership and
creativity / innovation.
In 2003, we continued installing new equipment to enhance safety and working
conditions at our operations.
vacupowerlift
A VacuPowerlift at our British processing plant
improves manual handling of 25 kg sacks.
fall arrest & lifeline
Fall arrest and lifeline systems at several of our
operations dramatically reduce the risk to
employees working at heights.
PLC-based operating system
Our mine and plant in Canada have transferred process operating
controls to PLC-based (Programmable Logic Controllers) operating
systems, meaning operators don't have to walk around as much to
produce the talc.
backfill mixer
This customised backfill mixer at our Rodoretto
underground mine in Italy is easy to load
and manoeuvre and safer than its predecessor.
Our European operations rolled out the SAFER
programme under the banner “Think before you act”.
biofluid systems
Our French operation is gradually replacing its degreasing units with safe,
ecological biofluid systems.
dust levels
A network of detectors monitor dust levels continuously at our processing
plant in the French Pyrenees.
cationic tank
A new cationic tank at our Austrian operation
eliminates manual handling of cans.
road cleaning
A road cleaning network improves working
conditions for shovel and dumper drivers
at our French operation.
powered sander
Our Penhorwood plant in Canada has invested in a powered sander to
minimize manual sanding of the roads around the mine and floatation
plant in winter, and provide better coverage.

Luzenac tests Crisis Management plans
In 2003, we continued to hone our Crisis Management plans at all
our operations, several of which organised full-blown mock-ups
during the year.
Luzenac Australia conducted a full-scale crisis simulation at its
mine site last December. The scenario involved a vehicle collision
on the main site access road between a group of visitors and
the company bus carrying site personnel home.Victims were made
up professionally to provide a sense of reality. The simulation
included two fatalities and varying severity of injuries, which
the Emergency Response Team dealt with in a very professional
manner. A mock media contingent arrived at site during the
exercise as well as an indigenous group who were checking sacred
sites in the area.
The Local Crisis Management and Recovery teams and the
Emergency Response Team learned a great deal from the
experience and proved that the site was ready to face a real crisis.
A mock media conference was held at the conclusion of the
exercise, which demonstrated just how sensitive it can be to
handle the media in a public forum.
HR principles and values for all
In 2003, we set up a Human Resources working group, with
representatives from America, Australia and Europe, to work on
a set of HR employee principles and values that support our
commitment to sustainable development.
• During September and October 2003,
Luzenac’s Italian operation, Luzenac Val
Chisone (LVC), played host to 600 doctors from
INAIL, the Italian industrial accident insurance
organisation. The visit included a tour to the
Paola mine museum, which traces the history
of mining in the area, and a chance to study
our Rodoretto underground mine, which works
to the highest safety standards.
• INAIL organises a number of activities aimed
at monitoring trends in employment and
occupational injuries with a view to
promoting safer, healthier work environments.
These initiatives include providing small and
medium-sized companies with training and
advice on safe practices and subsidising
investments that contribute to improving
safety.
The aim of the exercise was threefold: to provide a common
framework across the Luzenac organisation for current and
developing employment policies; to underline what is
important to us during our working life within the group;
and to set common standards in HR management for all
our employees groupwide.
Among the principles and values endorsed by the working
group and tested at different levels in our international
business:
¬ Individual, open, two way communication
¬ A safe working environment
¬ Competitive and equitable compensation and
benefits
¬ Competency-based recruitment and selection
that embraces equal opportunity and diversity
¬ Clear performance criteria linking individual
and company goals
¬ A personal and professional development
environment to enhance skills through
training, career management and mobility
¬ High ethical standards and accountability.
These principles and values provide the yardstick against
which practices in all our operations shall henceforth be
measured. They will be disseminated and explained to all
employees groupwide during 2004.
Through such principles and values, human resources
management aims to strengthen employee commitment
and motivation. Once implemented throughout the Group,
they will enhance business value for us all. ¬
INAIL visits LCV
• The visit to LVC was part of a refresher
course for INAIL staff on occupational disease
and injury, organised at national level with
the help of our company doctor Maurizio
Coggiola. Luzenac Val Chisone was only too
pleased to share its knowledge and experience
with the guests and to prove that an
underground mine can work to the most
stringent safety standards.
In 2003, we took the difficult decision to
close our West Windsor processing plant in
Vermont, USA. Some of the employees from
Windsor have transferred to our dry
milling plant at Ludlow and Argonaut
mine. For those leaving the company,
equitable financial packages were tendered
along with outplacement and training
assistance.
2004 targets
talc for the world 9
> Conduct Crisis Management
simulations in all three regions:
Europe, North America and Asia-Pacific.
> An LTIR of 0.65.
employees
> Fully implement the SAFER pre-task
risk assessment across the Group
> Provide Compliance Assurance
training for all relevant employees
> Launch Total Quality Management
programme worldwide
> Communicate Employment Principles
and Values across the Group

communities
10 Luzenac
Bernard Mabit (left), General Manager of our
French operation, shows local community leaders
around Trimouns open-pit mine, following an
information meeting presenting the results of
the local community survey.
003
argets vs performance
> A socio-economic baseline study and
community survey were conducted at
our French operation, with results
being used to good effect with the
community.
Enjoying respected status
in our communities
“Luzenac strives to be an active and welcome member of the
community wherever it operates. We believe in sincere and altruistic
involvement in such areas as education, culture, sport, health and
environmental restoration.” Luzenac Code of Conduct for Ethical Behaviour
Communities consulted on site closure
A key test of a mining company’s SD stance is in the process of
closing an operation. In 2002, we had to take this difficult decision
with a mine and process plant in Bavaria, Germany. We designed
the closure in line with our strict SD requirements, looking at the
social, environmental, customer and employee implications.
Although our decision to leave was initially unwelcome, both the
regulatory authorities and the local community were pleasantly
surprised by Luzenac’s thorough and considerate approach.
Indeed, the strong community acceptance we have built wherever
we operate has allowed us to move forward with two new mining
projects in Austria (see page 18). We have demonstrated that
positive outcomes for the community and the environment are
possible, even when we have to leave an area.
2003 saw the closure of our West Windsor minerals floatation and
processing plant in Vermont, USA. The decision was taken after
efforts to improve operational efficiencies and costs did not
achieve the necessary requirements to offset lower competitive
prices and declining volumes.The West Windsor plant was built in
1963 by Eastern Magnesia Talc and was later owned by Windsor
Minerals, a subsidiary of Johnson & Johnson. Luzenac has
operated the Windsor facility since 1989.
The facility will be marketed to manufacturing companies with
help from local and state economic development officials. The
remainder of the 30-acre site, where several tailings ponds are
situated, will be revegetated with native species and will feature a
number of small lakes.
In planning for the reclamation, Luzenac met with residents from
surrounding communities to determine their wishes for the
property. After debating such options as landscaped playgrounds,
ball fields and even a nine-hole golf course, the consensus was to
return the property to its natural state with the incorporation of
low maintenance nature paths for hikers and hunters.The seeding
of the property with native grasses, along with the planting of red
and white pines, hemlocks, and spruce trees will be completed in
2004. Most of the saplings will be harvested from Luzenac’s
Windsor tree nursery originally established for restoration
purposes. Upon completion of the restoration, the site will be
deeded over to the community.
Our first community baseline and attitude
survey at the birthplace of Luzenac
In 2002, we reported that Luzenac had adopted a Five-Year
Community Action Plan. The plan puts great emphasis on
two-way communication with our communities to gauge
how we are regarded, what their concerns are and what
their expectations are of us. Up until now, we had never
tried to assess our impact on the community in a formal,
structured way. We have therefore decided to embark on a
series of socio-economic baseline studies and community
attitude surveys at our mine and plant sites to bring a
degree of formality and objectivity to our knowledge
building. 2003 saw the first of these at our French operation
Talc de Luzenac France.
Talc de Luzenac France (TLF) in the French Pyrenees is
our oldest and biggest operation. Situated above the village
of Luzenac to which the company owes its name, the
mine has been worked since the 1880s and the company
itself dates back to 1905. A family-run firm for much of its
lifetime, the local communities continue to be formed to a
significant extent by our employees themselves and their
families. The integration between TLF and the local
community is naturally very strong, so it seemed only
logical that our first socio-economic baseline study and
community attitude survey should be conducted here at
Luzenac’s birthplace.
The survey results were both helpful and interesting
(see box). Our French operation is now actively seeking
ways to support and involve itself in the life of local
communities in a more targeted way.
Following this very useful work, we will be conducting
further socio-economic baseline studies and community
attitude surveys at our other mine and plant operations
over the next four years. Specifically consulting in this
manner will allow us to establish if our contributions in
cash and in kind are directed in the way the communities
want.
Residents from a neighbouring
village visit our
Trimouns open-pit mine in
the French Pyrenees and
gain an insight into what
Luzenac is doing to
mitigate its impact on
the environment.

On the 2003 communities agenda
In 2003, our operations around the world continued to organise
events in their respective communities, ranging from open days to
birdwatching excursions to hiking trips with family and friends…
Luzenac America organises loon count
The 2003 annual Luzenac America Montana operations bird
watching event was held at Ennis Lake near the Luzenac
Yellowstone mine. This year’s event, a count of loons that use the
lake during fall migration, was a joint effort organised by Luzenac,
Montana Audubon, Sacajawea Audubon, the Montana Outdoor
Science School, and the Madison Valley Ranchlands Group. Over
100 common loons were present on count day and the participants
observed 49 other species of birds.
About 60 pairs of common loons nest in Montana, with 30 or so
pairs successfully raising fledglings in a typical year. The loons on
Ennis Lake use the area as a migratory stopover, feasting on fish
and the occasional crayfish.These large lakes and rivers, with their
abundant fish populations, are critical to the survival of North
American loons.
The information we gathered at this year’s event will be added to
community survey results
A sphere of influence extending over a
thousand square kilometres
• The baseline study conducted in March
and April 2003 revealed that TLF’s sphere of
influence extends over a thousand square
kilometres, and includes around 34,000
inhabitants in a total 87 municipalities.
A predominantly rural, mountainous area,
many of these municipalities number less than
100 inhabitants. 42% of the populations of the
villages lying within a 25-kilometre radius of
TLF work for the company. TLF is therefore one
of the principal mainstays of the local
economy through the jobs and spin-offs it
provides, and the tax revenues it pays.
• The employment situation is very mixed.
Industry still has a high profile in certain
towns, but has been experiencing problems
in some areas due to the decline of the
textile industry and major downsizing at
Péchiney’s local aluminium smelter. Generally
speaking, changes over recent decades
highlight a decline in the primary sector,
the erosion of the manufacturing sector
and strong growth in the service sector,
particularly the tourist industry.
A good image but a certain nostalgia for
the management style of the past
• The attitude survey was conducted among
a representative sample of the local
population in the form of a questionnaire
sent out to about 500 people in the districts
around the operation. The sample included
a large proportion of community leaders.
Responses to the questionnaires were rounded
out by fifty telephone and face-to-face
interviews.
• The survey revealed that TLF is broadly well
regarded. 93% of respondents said the
company had a good image. When asked to
describe TLF, a majority of respondents used
positive adjectives such as “beneficial”,
“professional” or “dynamic”, and most were
optimistic as to the future of the operation.
Respondents recognised the efforts our French
the bank of bird-inventory data being collected
in support of nominating a portion of the Madison Valley
as an Important Bird Area (IBA). The IBA project is a
collaborative project sponsored by Luzenac, Montana
Audubon, Sacajawea Audubon, the Madison Valley
Ranchlands Group, and is funded in part by the Rio Tinto
Birdlife Partnership Action Fund. ¬
operation has made in recent years to
mitigate its effects on the environment. They
also think TLF takes a responsible approach to
managing its resources and the health and
safety of its employees.
• However, there was some concern about the
impact of the mine on the environment,
particularly the landscape. Respondents also
expressed nostalgia for the era when the
company was a locally managed, “family”
firm and much closer to the local population.
Indeed, once considered an integral part of
the local community, and despite its generally
good image, TLF is now perceived as an
“outsider”. This is mainly due to the fact
that management no longer lives in the
village and is therefore less directly involved in
community life, and to the fact that TLF
is now part of a major international group
and that the decision-making centre has
shifted away. Despite this, TLF is still seen
as the major driving force behind the
area’s economy.
During a trip to Rodoretto, the Bishop
of Pinerolo (second left) asked to tour
our underground mine and to meet
the Polish miners’ community.
2004 targets
talc for the world 11
As part of a local cultural event
in the Rabenwald-Oberfeistritz
region where our Austrian open
pit mine and mill are located,
Luzenac Naintsch and the Styrian
Government sponsored an exhibition
of the work of Hungarian
Op-art painter Victor Vasarely.
communities
> Conduct socio-economic baseline
studies and community surveys at our
Rabenwald-Oberfeistritz operation in
Austria and at our Montana mine and
plants in the USA.

environment
003
12 Luzenac
argets vs performance
> We continued to examine ways of
reducing water and energy consumption
and explored renewable energy
supply options.
> We measured and reported water
usage and energy consumption according
to the EUs SDI scheme.
> We created partnerships with local
biodiversity experts wherever we do
land restoration.
> We committed to a five-year total
energy reduction plan (2003 – 2008):
Reduction per tonne Europe USA
water consumption -11.6% -13%
GHG emissions -5.3% -5.7%
Energy use -5% -8.8%
Managing the environment
responsibly
Our work in this area in 2003 has brought global as well as local
benefits. We have pressed ahead with restoration and revegetation work,
which brings obvious benefits to the local community but also locks up
a certain amount of carbon, offsetting greenhouse gas emissions. We
have also concluded a contract for wind-generated electricity for our
largest mine in North America and committed to a five-year total
energy reduction target.
Endorsing renewable energy
In early 2003, our Yellowstone mine in Montana—one of the
largest in the world—partnered with the Bonneville
Environmental Foundation (BEF) to purchase 100% of its annual
electrical needs from renewable, non-polluting wind energy.
BEF is a non-profit organisation, established in 1998, to further
the development and use of new renewable energy resources.
Through revenues generated from the sale of green power
products, BEF funds projects that restore damaged watersheds
and support new renewable energy projects from solar, wind and
biomass sources.
Green Tags, or Tradable Renewable Energy Credits as they are also
known, are sold in blocks of 1,000 kilowatt-hours and the revenues
they generate are reinvested in new forms of renewable energy,
offsetting the environmental effects of burning coal, gas and other
fossil fuels.
Luzenac’s purchase represents over 1,700 megawatt–hours of
renewable energy, rendering electricity consumption at the mine
in Montana completely climate neutral and non-polluting. It will
result in annual savings of 1,200 tonnes of greenhouse gas emissions,
primarily carbon dioxide (CO 2) that would have otherwise
been released into the atmosphere. This is the CO 2 offset equivalent
to planting 200 hectares of trees or taking 234 cars off the road
for one year.
Luzenac America joins the Green Power
Leadership Club
The United States Environmental Protection Agency (EPA) officially
recognised Luzenac’s commitment to renewable energy
sources during the Green Power Leadership Awards ceremony in
November 2003. Co-sponsored by the U.S. Department of Energy
(DOE) and the Center for Resource Solutions (CRS), the
Leadership Awards distinguish organisations that are
significantly advancing the development of renewable
electricity sources.
Awards are given in three principle categories: Partner of
the Year, Green Power Purchasing and On-Site Generation,
but the EPA and DOE also honour Members of the Green
Power Leadership Club—partners that have made an
exemplary green power purchase. To qualify for the club,
organisations are required to purchase a certain percentage
of their electrical requirements from renewable energy
sources.
Luzenac was nominated for club membership by the
Bonneville Environmental Foundation. BEF felt we should
receive some deserved attention from the EPA as we are
probably one of the few mining companies who have made
a substantial purchase of Green Tags. They also believe our
ISO 14001 certification underscores our commitment to
protecting the environment.
It is interesting to note that one of our main customers,
Johnson & Johnson, were among the winners of the Green
Power Partner of the Year Award.
Promoting biodiversity
Mining can scar the landscape for generations. At Luzenac,
we put great effort into minimising the adverse footprint
we leave, and the restoration schemes we implement are
specifically designed to encourage biodiversity.
For instance, our Rabenwald talc mine is located on the
edge of the Pöllau Tal Nature Park, 130 square kilometres of
wood and farm land in the heart of the Austrian region of
Styria. In 2001, as part of a long-term management plan,
and with the support of the EU and national and federal
governments, Pöllau Tal commissioned an extensive
research project on biodiversity in the park.
Our Austrian operation is currently planning to transfer
mining from the north pit to the south pit so it took this
opportunity to bring in experts to assess biodiversity at
both mine sites. The results of the study will not only be
crucial to reclaiming the land at the north pit, but to
ensuring that we have the data we need to revegetate the
land with native species when reserves in the new pit
become exhausted in twenty to thirty years time.
Scientists found 26 different types of habitat on our overburden
slopes, which are home to some 220 species of plant
including a number of pioneer and endangered species.
This GIS (Geographical Information System) data has now
been compiled into a database, which will be a valuable tool
for many years to come.
Encouraging sustainability
of wildlife habitats
Wintertime in the Rocky Mountains is extremely harsh and
a particularly stressful time of year for mountain wildlife

such as elk, mule deer, and bighorn sheep. Large grazers such
as these will migrate to lower mountain foothills where the air is
warmer and there is less snow.
Our Yellowstone mine in Montana is right in the heart of this
prime wintering range. In 2003, our Senior Environmental
Engineer at Yellowstone began working with the U.S. Forest
Service, the Rocky Mountain Elk Foundation and neighbouring
ranchers to determine how our 3,400 acres of mine property could
be enhanced to promote its appeal to wintering elk herds.
With a $10,000 grant from the Elk Foundation, water supplied by
the Forest Service, and cattle willingly provided by neighbouring
ranchers and Forest Service grazing lessees, the Yellowstone mine
property is gradually being transformed into a quadrant of large
fenced grazing pastures that will provide wintering elk with a new
home. The cattle grazing is key to this formula in that the cows
reduce the tall grasses down to short stubble which in turn attracts
the elk who shun ungrazed ranges.
By the winter of 2004, hundreds of elk will be settling in for the
winter on the environs of the Yellowstone mine.
Looking at new water management ideas
Reducing water consumption is an ongoing target for Luzenac
operations worldwide.
In 2003, Luzenac Australia continued looking at new water
management ideas for its site in Western Australia, with a view to
reducing its demands on the local fresh water supply.
In 2003, we continued introducing methods and investing
in equipment that safeguard the environment
¬ A new pump system installed at the sorting station at
our French operation allows us to recycle process water
and has led to a 65% drop in our industrial water
requirements.
¬ The high intensity discharge lighting at our Yellowstone mine in Montana has
been moved so that it shines away from a nearby highway, thereby reducing light
pollution. All outdoor area lighting has been put on timers with photocells to
reduce the total amount of time that the lights are on, thus reducing energy use.
¬ An energy-efficient compressor at our British mill
provides a 50% reduction in compressed air energy use.
The Three Springs site is fortunate enough to have a fresh
water aquifer on the lease. Luzenac Australia is currently
assessing the suitability of this water for processing in
terms of chemistry and flow rate. It also intends to enclose
and recycle the water in the processing circuits and
investigate blending the saline water with the fresher water
to slow the corrosion process.
Monitoring effluents
Luzenac Australia is also currently carrying out seasonal
studies on the lake system that receives the mining site’s
discharge water.
Initially the lake system was surveyed once a year to meet
regulatory requirements. However, in 2003, we decided
to investigate whether there were any natural changes
occurring in the lake system potentially caused by
discharge from our mining site. The land is surrounded by
farming properties and is exposed to runoff containing
herbicides and other chemical residues. The lake is also
subject to periods of severe evaporation followed by sudden
high inflows of rainfall.
Studies on the lake have identified several types of micro
flora, invertebrates, fauna and avian species. Information to
date suggests that change in salinity caused by discharge
from our mine may play an important part in the breeding
of these invertebrates. ¬
¬ A new superheater at our Weißkirchen plant in Austria
improves production efficiency and reduces energy
consumption.
¬ Our French operation now uses water from the settling
ponds to wash trucks and shovels, considerably cutting
freshwater consumption.
¬ Three new oil / water separators have been installed at our Sappington mill in
Montana. Two treat stormwater runoff to reduce pollutants prior to discharge, the
other treats compressor condensate by evaporating the water and capturing the oil
for recycling.
¬ Steel-bunded tanks at our British mill have been
replaced with totally enclosed, integrally bunded,
polyethylene tanks. The bunds themselves have a 110%
overspill capacity and are fitted with a spill sensor. The
filling nozzle also has an automatic cut-off to prevent
spillage.
2004 targets
talc for the world 13
Elk winter range on reclaimed land
at our Yellowstone mine in
Montana
ISO 14001 Last year, we
reported that all our operations,
except two, had obtained ISO
14001 certification. We are
pleased to report that all our
operations are now ISO 14001
compliant.*
* With the exception of the two joint venture
plants over which Luzenac gained management
control last autumn.
environment
> With the support of government
bodies and government-sponsored
consultants, actively investigate further
opportunities for energy consumption
reduction, energy generation from
renewable sources and carbon emission
offsets.

talc the mineral
14 Luzenac
Talc, the mineral that contributes
to sustainable development
At Luzenac, sustainable development also means developing new,
environmentally safe and friendly products for a sustainable society.
Indeed, in many of its applications—be it paper, paint, plastics, ceramics,
etc.—talc not only brings value to our customers, it enhances their
own environmental and sustainable development activities.
Dashboard and interior parts
The use of talc in polypropylene for interior components
such as dashboards, pillar trim and consoles increases
dimensional stability and stiffness enabling downgauging
Catalytic converters
Honeycomb talc-based cordierite structures are a
critical component in today’s catalytic converters and
particle filters
Bumpers
Very fine talcs provide polypropylene bumpers with the
right balance of rigidity and impact strength, allowing
them to be made thinner and lighter
Tyres
Talc powdering accelerates tyre demoulding cycles,
thus reducing energy costs
Door sealants
Incorporating talc into door sealants improves
weathering and extends product life
Take the average car. Talc is an important ingredient in a number of automotive
components where it brings environmental benefits. For instance, talc imparts stiffness and
other crucial properties to polypropylene, which has replaced less environmentally friendly
plastics such as PVC and ABS in a broad array of car parts. Polypropylene is easily recyclable
and its use enables car manufacturers to down-gauge parts, contributing to making cars
generally lighter and lowering fuel consumption. Talc is also one of the principal components
of ceramic cordierite, which is used as a support in today’s catalytic converters and diesel particle
filters for automotive exhaust systems.
For more examples of how talc contributes
to the environment in other applications,
consult our 2002 SD report on www.luzenac.com
Under the bonnet / hood components
Tough, lightweight polypropylene parts containing up
to 40% of talc have replaced many of the metal components
in car engines, such as heating, ventilation and
air conditioning units
Bodywork
Talc improves the rigidity of polypropylene making it a
viable replacement for metal in bodywork parts.
Using plastics for bodywork:
• reduces overall vehicle weight hence fuel consumption
• eliminates the use of paint with its associated volatile
organic compounds
• provides greater design freedom
• improves recyclability
• enhances safety features

wastewater treatment
New solutions for biological
wastewater treatment plants
One of the principal problems facing
biological wastewater treatment plant
operators is how to deal with the huge
volumes of wet sludge left at the end of
the settling process.
At the Pollutec Exhibition held in Paris
in December 2003, Luzenac presented a
new application for its Aquatal® range
aimed to optimise the sludge dewatering
process.
Aquatal® is a natural, environmentally
friendly blend of talc and chlorite
with a specific mineral composition
and particle size distribution. It is a
structuring agent, which improves
water/sludge separation efficiency.
Aquatal® speeds up the separation of
the solid and liquid phases during
crop protection
Talc protects growing fruit…
naturally
There is nothing quite like biting into a
sweet, juicy Granny Smith apple on a
hot summer day, or baking them into a
homemade, deep-dish apple pie.
However, in order to get this highly
popular fruit to market, it first has to
survive the rigours of maturing in the
orchard—and dealing with the harsh,
burning UV-rays of the sun. Yes, just like
people, fruit can get sunburn. In fact, if
left unattended, sunburn and heat
stress can damage up to 45% of a
typical crop.
To combat this problem, Luzenac
has begun development of a new
draining and facilitates water
extraction during pressing. It also
improves flocculation, preventing
seepage, mesh clogging and sticking of
sludge cakes.
A low dosage of Aquatal® before the
dewatering process enables wastewater
treatment plant operators to reduce
volume and mass of wet sludge,
accelerate machine throughput and
optimise sludge preparation.
Aquatal® is already used in over 150
municipal and industrial wastewater
treatment plants in Europe to improve
sludge settleability in the case of
bulking and hydraulic or organic overload.
With the development of this new
application, Aquatal® now provides
wastewater treatment plant operators
with an all-round natural solution.
talc-based crop protectant product,
Invelop® SPF. Initial trials conducted
in 2003 evaluated sunburn protection
for apples. The data showed that when
Invelop® SPF was sprayed onto Granny
Smith apples it reduced the surface
temperature and lowered the incidence
of sunburn by up to 60%.
Invelop® SPF is a natural solution to a
natural problem, replacing the use of
synthetic chemicals and continuous
cooling water sprays. EPA registration
and approvals for use in organic
farming are expected for Invelop® SPF.
Further trials on grapes, pears, and
plums will be conducted in 2004.
sustainable construction materials
Talc for sustainable construction materials
One of our major innovations in 2003 was an
engineered talc product for the wood-plastic
composite market.
Wood-plastic composites are a mixture of
plastic, wood flour, sawdust or other natural
fibres and, in some cases, minerals. These
components are melt blended in extruders
or other processing devices to form a variety
of extruded profiles, thermoformed and
compression moulded parts used to construct
patio decking, window frames, doors, railings,
roofing, patio furniture, fencing, docks and
garden structures.
Wood-plastic composites present a range of
advantages from a sustainable development
point of view:
• They provide an outlet for scrap plastic,
recycled plastics, waste wood and side
products from the wood processing industry;
• They provide a viable alternative to impregnated
wood, which may contain toxic
substances, as well as valued hardwoods;
talc for the world 15
• They are easy to recycle and can be ultimately
burnt for the production of heat;
• They are highly durable and have low-maintenance
requirements;
• They eliminate paint, thus reducing VOC
emissions;
• They have extended functional service life
and enhanced weatherability.
For the time being, these composites are
primarily used for non-structural applications.
However, research performed by Luzenac
America and Washington State University
has shown that incorporating talc into woodplastic
composites considerably enhances
their performance in terms of stiffness,
dimensional stability and water resistance,
making talc-reinforced wood-plastic composites
suitable for use in structural applications
such as decking supports, piers and home
construction.
Talc-reinforced plastic composites may well
become a major material for the construction
market in years to come.
talc the mineral

mineral resources
003
16 Luzenac
argets vs performance
> We extended Throw-Out technology to
our Talc de Luzenac France plant.
> We optimised our existing friction sorting
system at our Yellowstone mine in
the US and launched pilot studies in
France and Australia.
004 targets
> Extend friction sorting pilot study to
our Spanish operation, Luzenac SET.
> Prepare long-term mining plans
for all our North American mining
operations.
Making efficient use of our
mineral deposits
Sustainable development is often defined and discussed in terms of three
‘pillars’ of performance—environmental, social and economical. We must
bear in mind, however, that SD is principally about the wise management
of resources. As the world’s leading supplier of talc products, Luzenac has
a particular responsibility for the stewardship of its talc resources. It is our
job to get the most ‘value’ (economical, social and environmental) from
every tonne of rock we disturb and make the most thorough use of our talc
ore bodies. The activities described below are just some examples of how we
are doing this.
Microwave technologies
In collaboration with Rio Tinto Technical Services (RTTS) and its
Office of the Chief Technologist, Luzenac is currently assessing
innovative solutions to eliminate trace minerals responsible for
major ore discolorations.
These contaminants have a negative impact on recovery rates and
in extreme cases significant fractions of the orebody have to be
discarded. At our Trimouns mine in the French Pyrenees,
for example, some of the brighter talc ore is irremediably
contaminated by pyrites and there are minute graphite crystals
throughout the orebody.
Microwave technologies pioneered by a British university and
RTTS look promising because they can selectively destroy the
contaminant or enhance specific properties that can then be
exploited for efficient separation.
Throw Out
Demand for white products is constantly growing. Yet, year after
year, Talc de Luzenac France is forced to downgrade tonnes of
white industrial minerals for simple process reasons.
The purpose of the Throw Out project currently being led at our
French operation is to meet this growing demand for white talc
whilst respecting the natural balance of our mineral resources at
Trimouns mine.
Throw Out is a simple purification system enabling contaminants
such as pyrites, carbonates and quartz contained in the mineral to
be ejected during the pendular grinding process.
optimise
In 2003, we completed the initial test phase on the five
experimental Throw Out machines at our processing plant
and are now entering the product qualification validation
and industrial project phase.
Our French mill will eventually house ten Throw Out
machines linked to a centralised waste recovery system.
Small Particle Sorter
The Small Particle Sorter or SPS is a friction slide sorter
system that separates talc from chlorite and other sterile
products such as carbonates and pegmatites by friction
sorting fractions of between 20mm and 100mm.
The process follows an initial screening process to obtain
this fraction and which can, in some cases, lead to direct
recovery of marketable grades (less than 20mm).
The combined screening-SPS process is used to recover
marketable products from sterile sources, and purify
certain industrial ores.
SPS technology has been tried and tested by our North
American operations and is currently undergoing pilot
testing at our French and Australian operations.We are also
looking to extend this technology to our Spanish operation,
Luzenac SET. ¬

Fostering supplier and joint
venture relationships that are
in line with our HSEC standards
No man is an island. The saying could apply equally well to
businesses. What our partners are doing in the realm of HSEC is
rapidly becoming as important as what we do ourselves. Whether
with regard to the environment, quality, health or safety, Luzenac
seeks to implement the highest possible standards in everything it
does. In return, it expects its partners to pursue the same level of
excellence—our reputation depends on it.
Increasing profile in Japan
2003 was marked by the signature of an agreement with our
Japanese joint-venture partners, Toyota Tsusho Corporation and
Sobue, which gave us overall management control of Nihon
Mistron Company Ltd, a talc processing enterprise.
Nihon Mistron Co. has two processing plants: one at Tomokamai
on the Hokkaido island in the north of Japan, and the other in
Suzuka on the Honshu island. The plants produce around 30,000
tonnes of processed talc a year and employ 16 permanent staff and
a number of contractors.
Both have been in operation for several decades and when we
reviewed local HSEC practices in November last year we were
satisfied with what we found. We have decided to focus initial
efforts on bringing safety practices in line with Rio Tinto standards,
and will be following up progressively with occupational
health and environment. A detailed internal audit and insurance
risk survey looking at fire protection and maintenance programmes
is slated for February 2004, with a full safety audit by Rio Tinto
due at the end of this year.
Sharing best practices with Chinese suppliers
In our 2002 SD report, we stated that Luzenac had set up a
Supply Chain Responsibility programme with its Chinese
talc ore supplier partners. Following an initial visit to our
principal suppliers in the spring of 2002, Luzenac’s Chief
Buyer and our representative in Beijing paid a second visit
in November 2003 to pursue dialogue and continue to share
best practices in the realm of HSEC.
Some suppliers operate underground mines and were
very keen to hear our suggestions and recommendations,
particularly in the area of occupational safety, which, under
the impetus of the Chinese authorities, is now a key issue.
We were also pleased to see that a number of the suggestions
we made during our previous visit had been taken on
board.
In addition to respecting Chinese regulations related to
mining and industry, we are now satisfied that our crude
talc purchases comply with Luzenac and Rio Tinto ethical
requirements.
Promoting sustainable practices with
suppliers and contractors
Our operations continued promoting sustainable practices
with their supplier and contractor partners in 2003.
In June,Talc de Luzenac France invited fifty of its principal
suppliers and sub-contractors to an information session on
Total Quality Management.The aim was to share our values,
inform our partners about our requirements and let them
know how important these areas are to Luzenac so that
they, in turn, observe and apply our standards.We also took
this opportunity to disseminate Rio Tinto’s statement of
business practice, “The Way We Work”.
The presentation was followed by an informal lunch and a
tour of the Trimouns mine. Everybody welcomed the initiative.
In the words of one participant: “This was a good
opportunity to get to know the Luzenac Group better and
to find out more about its sustainable development policy.
We fully support your action plan, which will allow us, we
hope, to strengthen our business relations”.
In April 2003, our Austrian operation, Luzenac Naintsch,
invited contractors who regularly work for them to a safety
seminar held at their head offices in Graz. The aim of the
workshop was to familiarise our contractors with our
HSEC management system and to encourage them to
initiate such systems in their own businesses. ¬
talc for the world 17
In 2003, our French operation installed gantry and
lifeline systems to allow our contract drivers to access
their cargo dome areas safely during loading operations
on our premises. We also integrated general safety
regulations, governing such areas as the wearing of PPE
and safe driving, into all our haulage contracts.
2003
targets vs performance
> We integrated HSE provisions into
all our haulage supplier contracts
worldwide.
> We introduced a formal procedure for
evaluating HSEC aspects of all JV
opportunities.
2004 targets
suppliers & JVs
> Pre-approve all contractors by reviewing
historical performance, level of
training and HSE programme content.
> Assess effectiveness of procedure in
any JV opportunities in the year.

acquisitions & projects
18 Luzenac
003
argets vs performance
> We introduced a requirement to
consider the social and environmental
acceptability of all our acquisitions and
projects. This was partially achieved
through our contribution to the
development of Rio Tinto Environment
Standards.
004 targets
> Continue to apply this requirement to
the two on-going projects in Austria.
Ensuring the economic,
social and environmental viability
of all our acquisitions and projects
We have two major projects in the pipeline—both in Austria. The first is to
extend our Rabenwald open pit mine. The second is to open a new underground
mine at Katzensteiner to replace our Kleinfeistritz mine, following
the existing orebody to the other side of the valley. Both are being planned
for and conducted in line with our SD agenda.
Katzensteiner project
In 2003, we performed a risk assessment of our Katzensteiner
underground mining project.The method, developed by our sister
company Hammersly Iron, involved comparing certain economic,
environmental and social aspects of our existing Kleinfeistritz
operation with two alternatives: the Katzensteiner project
and a ‘Do Nothing’ scenario, and then setting the results against
‘acceptable’ and ‘desirable’ limits using a scorecard system.
Economic
¬ Capacity to supply
related industry
¬ Earnings after
capital charge
¬ Net present value
¬ Strategic impact
on our Austrian
operation
¬ Capacity to sustain
investment
¬ Extraction rate
Environment
¬ Maintenance of a stable
resource base
¬ Surface disturbance
¬ Environmental load
factor / tonne extracted
¬ Biodiversity
¬ Visibility impact
Social
¬ Tax contributions to
community and state
¬ Employment potential
¬ Job security
¬ Overall safety rating
¬ Strategic social importance
for our Austrian
operation
¬ Public image
The Katzensteiner option either met or exceeded our requirements
in all three areas.
Rabenwald project
We embarked on the drilling programme for the
Rabenwald south pit extension in April 2003.The programme
consisted of drilling about 50 holes to an average depth
of 70m in areas where we have little information
about the depth and the quality of the orebody.
The resulting information has enabled us to
calculate an accurate block model to support our mine
planning study. The block model and new pit design show
reserves of around 2 million tonnes—or another 17 years’
life for Rabenwald.
Before commencing the exploration, we invited local
villagers to participate in a consultation process beginning
with an information session on the Rabenwald extension
and culminating in a feedback session during which villagers
were asked to comment on how they had experienced
the programme during the year. Their reaction was generally
positive with many villagers pleasantly surprised at
how low dust and noise levels had been. ¬
Rabenwald

2001 sustainable development
indicator data for the EU
industrial minerals industry
Category
Employment
Direct employment
Indirect employment
Skills development
Hours of training
Health & Safety employees
Total hours worked
Total hours lost as result of occupational accidents
Total hours training in H&S
Total fatalities
R&D Investment
Total turnover
Total expenditure R&D
Exploration costs
Total exploration costs
Communication to the community 1
Total number of public events for neighbouring communities
Percentage of companies with system for registration / follow-up citizen
complaints
Energy efficiency
Total of all energy carriers
Water demand
Total net water consumption
Land demand
Total surface land area of operation for mineral extraction
Total new surface land area opened up for mineral extraction
Total surface of rehabilitated land
Use of dangerous substances 2
Amount of classified dangerous substances used in mineral processing
and percentage of tonnage produced
Transport constraints
Average transport distance from point of extraction to customer 3 by road
Average transport distance from point of extraction to customer by rail
Average transport distance from point of extraction to customer by water
Proportion of road transport in total transport
Proportion of rail transport in total transport
Proportion of water transport in total transport
Environmental incidents 4
Total number of reportable environmental incidents
Data
17,150
70,000
268,000
21,824,000
104,750
67,121
4
3,700 million
66 million
9,773,000
1,723
78
505
0.57
14,755
2,275
1,490
3,700
0.008
245
234
2,482
63
15
22
56
Unit
Full-time equivalent
(est.)
Hours
Hours
Hours
Hours
Number
Euros
Euros
Euros
Number
%
MJ per functional unit
(1 tonne of total saleable product)
M 3 per functional unit
(1 tonne of total saleable product)
Hectares
Hectares
Hectares
Kilograms
% tonnage produced
Kilometres
Kilometres
Kilometres
%
%
%
Number
1 Communication of the company with the community to which
it belongs.
2 According to Directive 67/548/EEC, only dangerous substances
labelled R23-R28, R39, R45, R48, R49, R50-R59 need to be considered.
This information is given in safety data sheets and on warning
labels of substances.
3 Including any transport for processing within the company.
4 An incident is an infringement of national environmental
legislation—however minor.
talc for the world 19
SDI data

We welcome your feedback.
Contact: communication@europe.luzenac.com
This SD report is also available in PDF format
on our website www.luzenac.com
Luzenac Group
131, av. Charles de Gaulle
92200 Neuilly - France
tel +33 1 47 45 90 40
fax +33 1 47 45 58 05
Luzenac America Luzenac Asia
9000 E. Nichols ave.
Centennial, CO 80112 - U.S.A
tel +1 303 643 0400
fax +1 303 643 0446
www.luzenac.com
Luzenac Europe
B.P. 1162
31036 Toulouse Cedex 1 - France
tel +33 5 61 50 20 20
fax +33 5 61 40 06 23
3, International Business Park
01 - 18 Nordic European Centre
Singapore 609927
tel +65 6890 6926
fax +65 6890 6927