Luzenac 20-pages - Rio Tinto

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