Luzenac - Rio Tinto

Meeting Today’s Needs.
Securing Tomorrow’s.
Luzenac Sustainable Development Report 2002

Our Sustainable
Development Policy
Design: Groupe Composer, Toulouse
Printed by: Imprim’d’Oc, Toulouse
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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 sustainability of:
• quality customer relationships;
• fair and safe employee practices;
• respected status in our communities;
• responsible environmental management;
• efficient use of mineral deposits;
• supplier and joint-venture relationships consistent
with our HSEC standards;
• economic, social and environmental evaluation
of 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.
Printed on Luzenac talc-coated paper made from pulp from sustainably managed forests
and containing 30% recycled paper

Editorial
Welcome to our first Sustainable Development (SD) report. Luzenac only began public HSE and social
reporting in 2000, so this is a rapid development for us.
In recent years, we have been assessing our business and comparing it with the sustainable development
agenda. This assessment has covered not only all our mines and processing plants but also talc's
many applications. 2002 saw the birth of our first global SD programme. This involved drawing up an
internal SD Assessment report, adopting an SD policy and setting goals for 2003 and beyond.
In September 2002, the European Commission officially launched the Voluntary Scheme for the public
reporting of Sustainable Development Indicators (SDI) in the non-energy extractive industry (i.e., industrial
minerals, metals, aggregates, lime etc.). This scheme is the first of its kind in the world and, as we have
reported over the last two years, Luzenac served on the Working Group which devised it, along with
Government, NGO and other industry groups. As the representative of the Industrial Minerals Association
(IMA), Luzenac played a leading role in this initiative.
This SDI Scheme throws light on how companies are working to balance environmental, social and
economic dimensions. We hope it will be useful to industry and stakeholders alike.
In parallel with the SDI Scheme, we also developed an internal system for Corporate Compliance Assurance.
As many companies are discovering, a formal system that ensures you are acting in accordance both with
the law and with your own corporate policies is essential. We are now in the process of implementing
this system, which covers all aspects of the company: human resources, finance, commercial dealings,
health, safety, environment and community (HSEC) and so on.
Environment will always have a special place in SD, and we are especially pleased that nearly all our
operations are now certified to ISO 14000. This company-wide project is the culmination of efforts from
all our people around the world. Only two operations, Mexico and Australia, are still uncertified. Both
are now operating to environmental management systems compliant to ISO 14000 and are scheduled to
have their audits and obtain certification in 2003.
Lastly, one of our key goals is to use our ore resources in the most efficient way possible. One way of
doing this is through new technologies. Our chapter on efficient use of
mineral deposits gives several examples.
As I said above, in 2002 we drew up a formal SD policy that focuses on seven
key areas (see opposite). The layout of our report follows the seven parts of
this policy and provides illustrations of what we are doing in each one.
We hope this review gives you a better understanding of our approach to
sustainable development. Please tell us what you think–we welcome your
comments.
Joachim Roeser
President and CEO
Luzenac Group
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Building quality
relationships
with our
customers
Driven by innovation: the front wing of the
Audi A2 contains 17% of talc. It’s not only
stronger, it’s lighter and easy to recycle.
Every year, we perform over one thousand
formulation studies for our customers.
2003 goals and targets
Objectives for 2003 include:
- continuing dialogue with
customers selected from our
Business Units in Europe and
the USA on such matters as
product stewardship and HSEC;
- incorporating HSE provisions
into all outsourcing contracts.
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Luzenac has been around for over a hundred
years. Not everyone can claim this kind of track
record. Today we are the world’s leading talc
producer, selling in excess of 1.4 million tons of
talc to over 10,000 customers in 70 countries
around the globe.
Our spread of over 30 ore-bodies, mines and
processing plants worldwide means we
have a unique position in the talc
business. With the widest
product range and unsurpassed
applications
expertise, we are the
only talc producer that
can meet all customer
requirements worldwide.
Luzenac wouldn’t
be in this unique position if
it weren’t for the excellent relationships
we have built up with our customers over
the years. Translating what the customer wants into
how it can happen is the role of our R&D centres and
Business Units created in early 2000 to serve the
coatings, paper, polymers, and specialities (ceramics,
personal care, agriculture and foodstuffs, and wastewater
treatment) markets.
Good understanding of each of these markets is fundamental
to developing the right talc for the right
application. Luzenac’s Business Units employ specialists
from the markets we serve, and our sales and
technical support teams work closely with customers,
combining their mineral experience with the customer’s
product expertise. Every customer has a designated
Luzenac advisor who can work directly with
them on their formulations. And every year, we perform
more than one thousand formulation studies at
our laboratories in Denver, Gent, Graz, Singapore,
and Toulouse.
Our mission has always been innovation driven. Year
after year, we seek new solutions for existing markets
and develop new applications for new customers. We
do this through groundbreaking, performance-enhancing
and cost-effective solutions for our customers.
Indeed, every year, Luzenac invests over 3.5%
of revenues in research and development.
As a resolutely customer-oriented business,
our customers are at the heart
of our SD work as well, and we
strive continually to improve
the service package we provide
to them. Indeed, the Luzenac brand
is made up of a series of customer
benefits of which total quality control
of the products’ specification,
reliability of supply, development
of new applications and full service
back-up are the four corner
stones. Our SD policy brings other
important benefits to the package
including improved reliability of
supply.
Luzenac customers have the assur-
Last year, as part of a company-wide
Crisis Management Plan, we devoted much
time to examining the sources of business
interruption (fire, equipment breakdown,
spares backup, electric power failure,
flooding, etc) and making changes
to reduce these risks. For the customer,
this means increased peace of mind.
ance that their talc supplier will contribute to
enhancing their own reputation in areas such as
health, safety, environment, community relations,
supply-chain responsibility and business ethics. This
is backed up by our internal Compliance Assurance
System–our guarantee to our customers that we not
only act in accordance with the law but with our
own corporate policies too. Moreover, Luzenac is
willing to assist customers in their Life Cycle
Assessment and we are working on programmes to
reduce energy and water use as well as exploring
the potential for renewable energy at our sites.■
In 2002,Luzenac established dialogue with
two paper manufacturing customers on the subject of
sustainable development.
We presented our SD Assessment Report and
discussed the benefit to the customer of having
suppliers who can deliver this level of assurance.
We continue to keep them informed of significant
developments in the implementation of this programme.
To strengthen our brand image,
in 2002 we introduced a single logo
and slogan for all our operations
worldwide.
One of our most recent
innovations in Personal
Care is a Talc Stick
concept that has the
same qualities and
performance of talcum
powder in a no-mess,
no-dust, solid stick form.

Implementing
fair and safe
employee
practices
Our approach to safety is focused
on encouraging safe behaviour at work.
This goes hand in hand with improving
equipment and working conditions.
One example of this is the more fashionable
and comfortable, baseball-style, safety
hats our employees now wear.
As set out in our Code of Conduct for Ethical
Business Behaviour, “Luzenac provides its people
with a fair remuneration in return for their
best efforts and loyalty... We strive to create a
safe and healthy workplace for our employees
and contractors, provide freedom of choice on
collective representation and train and develop
our people consistent with the needs of our business.
Luzenac people treat each other, and those
they deal with outside the company, with
respect.”
Some of our operations have been mining talc for
over a hundred years and have at least another hundred
years’ worth of proven reserves. Here, talc forms
the basis of social continuity. The extraction, selection,
processing and delivery of talc for its various
uses are commercially complex. Consequently, the
talc industry, and Luzenac in particular as the market
leader, provides high-quality career opportunities
in our mines, process plants, logistics, customer
service, R&D, HSEC and other departments.
Talent pool
Luzenac is an integral part of the Rio Tinto Group and
as such we are actively participating in their fresh
approach to Human Resources management. This is
an evolution from succession planning to the notion
of “talent pool“. It entails looking at the skills, qualifications
and experience of staff in all parts of Rio
Tinto and seeing what opportunities exist, so as to
match people’s ambitions with company needs. This
enables management to think “outside the box” and
conceive of new roles that are not constrained by
fixed structures.
This new approach not only opens up a wealth of
new opportunities for Luzenac people, it directs new
sources of talent into our company. This is an aspect
of globalisation that is rarely spoken of but which
brings real positive change to people’s lives. Luzenac
has an active programme of seeking opportunities
for staff to live and work in different countries and
experience other cultures. For example, in 2002,
seven international placements were organised
across the Group: two from Europe to Asia, one from
the US to Europe and another four within our
European operations.
Transferable skills
With 1,550 people in over 30 sites in 14 countries
covering the Americas, Europe and Asia-Pacific and
operating in diverse industries such as polymers,
paper, coatings, ceramics, personal care, wastewater
treatment and many others, Luzenac can be considered
a medium-sized group with a global spread.
As such, many of our people need to acquire a broad
set of skills, enabling them to progress by taking up
responsibilities wherever opportunities are present.
Indeed, many of our employees speak several languages,
which is a considerable asset in a multicultural
environment.
Since 1995, Luzenac has been introducing training
programmes covering generic competencies which
enhance performance in people’s daily work and
which are transferable to other roles and regions.
Participants come from all over the Group and from
different backgrounds. This encourages the development
of additional competencies which are not specifically
addressed in the course content but which form
part of those skill sets which can be used in different
occupations and in different cultural contexts.
The types of generic training provided at international
level over the past seven years include management
and leadership, oral and written
communication and persuasive skills, foreign language
skills, computer applications, marketing, interpersonal
relations, finance and induction to the
organisation and roles within all functional areas.
Two new courses, project leadership and creativity
/ innovation, will be introduced in 2003.
There are four prerequisites to encouraging the acquisition
of transferable skills: identification of individual
skills; knowledge of what Luzenac is seeking;
communication of competencies to the organisation,
and their ongoing development.
Luzenac supports active career management strategies
in a number of ways:
• Over the past year we have been identifying the
competencies required by our staff which are used
for recruitment, training needs identification,
coaching, professional development and performance
reviews;
• A new programme introduced in 2002, entitled
“Developing our capabilities”, whereby participants
identify for themselves and assist others in
5

In 2002, our Rodoretto mine in Italy
installed a guided man-hoisting system
in its ventilation and emergency egress
shaft. The system enables the quick
evacuation of injured people.
In 2002, Luzenac Inc., based in Ontario,
Canada, won an award of excellence for
safety from the Mines Aggregate Safety and
Health Association, as a a result of having
the lowest lost-time and medical aid
frequencies of member firms in Ontario.
In 2003,we are continuing to
strive for lower accident rates companywide,
and have set a target of less than
0.65 LTIFR for the Luzenac Group as a
whole. Part of our preparation to meet
this target has been the achievement,
mostly in 2002, of compliance to a strict
safety standard, which is now common
throughout the Rio Tinto Group. We are
dedicated to the proposition that, in the
mining industry, everyone should be able
to go home after a day’s work in the same
physical condition as they were when
they arrived.
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acquiring self-knowledge of their strengths and
improvement areas, followed by an individual
career discussion;
• Quarterly HR reviews both within Luzenac, with
other Rio Tinto companies and with Rio Tinto HQ
on management and professional development of
our talent pool;
• A policy of internal notification of vacancies and
internal sourcing of personnel prior to external
recruitment, and a job vacancy section on our corporate
website;
• Externally run sessions for selected participants
to identify competencies and career orientations.
In the event of a site closure, transferable skills
increase the person’s marketability and open larger
sectors of the job market to them. This means they
are equipped to look for jobs and identify alternative
occupations outside Luzenac or our industry.
Luzenac considers that the acquisition of transferable
skills opens up career opportunities and
enhances personal motivation both within and outside
the group, and will continue efforts to encourage
competency development.
Safety - our number one priority
Safety in all aspects of our work is our first priority.
This not only applies to our mines and plants, but to
people performing technical service work at the customer’s
plant, sales people driving to see customers,
and our lab and office staff. We encourage people to
be safety conscious in their life outside of work too.
In 2002, one of our Australian colleagues was tragically
killed in a car accident while on a
technical visit to our operations in
Montana, USA. He was driving at the
end of the workday from the mine to the
hotel. His passenger, from the same
Australian operation, narrowly escaped death. The
official investigation showed there was no fault with
our colleague’s actions or with our travel policy and
practice, and that the fault lay with the driver of the
other vehicle. Nevertheless, we have completely
overhauled our whole system of foreign travel to take
this tragic event and other possible scenarios into
account.
In last year’s social and environment report (webbased
only), we reported that our 2002 target for
reduction of Lost Time Injuries (LTI) was a frequency
rate of less than 0.7. We failed to meet this. The
result was 0.9, virtually unchanged from the previous
year.
However this bald statistic disguises five real
advances in our safety performance:
• The severity of the accidents, measured by the
number of shifts lost, was halved across the Group
and was cut by factor 10 in Europe.
• Several of our operations reported zero accidents
in the year. These include Spain, Italy, UK, Mexico
and Texas, USA. Our Spanish operations (a total
of five locations) have now gone almost seven
years without a single LTI.
• At 0.63, our European operations (22 locations)
had their lowest accident frequency rate on record.
• Our Yellowstone mine was awarded the prestigious
Rio Tinto Chief Executive Safety Award for
12 years without an LTI (see opposite).
• Following a terrible accident in 2001 in which a
colleague lost fingers in a screw conveyor, we systematically
modified equipment and procedures
across the Group so that moving parts are inaccessible
when a machine is running.
Our approach to safety continues to be focused on
improving behaviour. This goes hand in hand with
improving equipment and working conditions.■

Rio Tinto CEO Leigh Clifford
(fourth from left) with
Montana management members.
The 174 employees at
Luzenac’s Montana operations, (Yellowstone mine,
Sappington and Three Fork mills) were awarded the
“Rio Tinto Chief Executive Safety Award” last autumn
for their outstanding safety performance. All of Rio
Tinto’s operating businesses (over one hundred operations)
were in the running, with performance being
measured over 2000 and 2001. Luzenac and co-winner,
Richards Bay Mine in South Africa, were short-listed
from 12 operations selected on the basis of no fatalities
during the previous two years, a better LTIFR (lost
time incident frequency rate) than the Rio Tinto overall
safety target, and at least 400, 000 hours worked.
2002 saw
the consolidation
of a number of sites in the Group, including the
closure of our Azemuth mine and processing plant
in Germany. This decision was taken on the basis of
risk assessment studies that showed that, although
there was no immediate danger, the safety
conditions in the mine did not meet corporate safety
standards required of all Luzenac companies. To
upgrade the facilities to these standards would
have meant substantial investment. With an annual
production rate of around 9,000 tons and limited
resources, the Azemuth operation was just too
small to justify a major investment. We worked
closely with all stakeholders to develop the site
closure plan–so that the closed facility could
become an asset to the community rather than a
liability–and handled closure issues with sensitivity
and an open mind.
Last summerwe conducted a survey of how our employees
perceive our reputation and internal communications. This was the first step
following a decision to make internal communications one of our key priorities.
This new approach is essentially driven by the recognition that our employees are
key to our success and that we need to increase and improve our dialogue with
them, but also that employee involvement is a key component of job satisfaction.
In 2003, we drew up our first group-wide internal communications plan. For
Luzenac, good internal communications is about engaging in healthy and open
dialogue with employees and encouraging them to share their ideas and opinions.
It is about mutual trust. It is about listening. It is about sharing successes, but it is
also about telling the bad news up front. And it is about top management showing
personal commitment to company values and ethical practices.
Our internal survey revealed that our employees wanted more information
about Luzenac’s strategy and objectives. One area they were particularly keen
to learn more about was what Luzenac was doing in the field of sustainable
development. We therefore made Luzenac’s SD work the central theme of our
latest issue of Talc Talk, our in-house magazine.
As Luzenac North America’s Health and Safety
Director, John Pettit, points out: “The safety culture
is part of our work ethic... Our employees look after
themselves and each other...” For Luzenac North
America, implementing a structured safety programme
was more a question of adding a systematic
means of assessing risks, reducing hazards, and a
series of tools to measure and improve safety performance
to something that was already deeply
ingrained in their corporate culture. Yellowstone mine
has just celebrated 12 years without a single lost time
accident.
Over and above normal closure practices we:
• designed a fair and equitable redundancy plan that
significantly exceeded market practices;
• actively supported our employees in finding new
jobs, organised training courses, and guaranteed
them employment during the closure process;
• provided customers with an alternative feedstock
strategy and, on request, reworked their
formulations so they could use a different talc. This
meant there was no negative impact on the financial
health of our local ceramics customers;
• increased biodiversity on the rehabilitated mine, by
creating new habitat areas for rare species of fauna
such as the eagle owl, Natterjack toad and the
common European frog, and flora such as wild
carrot, prickly lettuce, weasel's snout, marsh
horsetail and hawkweed;
• preserved historic mining equipment (hoist, stone
washing, sorting station, mine locomotive, mineral
specimens, etc.) and donated it to local mining
museums.
2003 goals and targets
Objectives for 2003 include:
- completing our Crisis
Management Plans including
SEVESO II (hazardous
neighbours) provisions;
- reviewing policy on training
in general and for skills
legacy, post-closure.
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Enjoying
respected status
in our
communities
A local arts group made sculptures
from talc during an open day held
at our Belgian operation in Gent.
Our Montana operations regularly host tours for local
schoolchildren and their teachers.
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Decades before the term sustainable development
was coined, Luzenac practised good neighbourliness.
Not only was it clearly what is now
called “enlightened self interest”, it just seemed
like the right thing to do.
Our commitment to our local communities is set out
clearly in our Code of Conduct for Ethical Behaviour,
“Luzenac strives to be an active and welcome member
of the community, wherever it operates. We believe
in sincere, altruistic involvement in areas of education,
culture, sport, health and environmental restoration.
Consistent with the needs of our business, we share
our expertise and resources with our neighbours”.
With 1,550 employees in Western Europe, North
America, Asia and Australia, Luzenac spans many
countries and cultures. We have two kinds of operations
from the “communities” standpoint. The first
are mines and their processing plants that are situated
in the vicinity of the communities themselves;
the second are stand-alone processing plants on large
industrial estates, where the word “community” has
less meaning. In the former case, many of Luzenac’s
operations were family-run firms for much of their
lifetimes, which often stretch back decades or, in
some instances, over a hundred years. At these operations
the local communities are still formed to a significant
extent by the employees themselves and
their families. Indeed, our talc operations are often
the principal employer, making a major contribution
both economically and socially to the communities,
and, in some cases, rendering it possible for families
to be sustained in rural communities where there
has been a dramatic decline in
other employment opportunities.
Consequently, the bond between
our various operations and the
local communities is naturally
very strong, and, as responsible
citizens in their own communities,
employees are often
actively involved in shaping the
community programmes themselves.
The examples below illustrate
how we have earned and how we
maintain our respected status–but
our community relations do not
stop there. As part of our SD programme,
we are setting out to
Several employees from our Timmins
operation in Canada ran an educational
booth at the local shopping mall during
“Timmins Mining Week”.
learn more about our communities in a more structured
way. Last year was marked by the adoption of a rolling
Five-year Community Action Plan; something our parent
company Rio Tinto introduced us to. The plan puts
great emphasis on organised two-way communication
with the communities to find out how we are regarded,
what their concerns are and what their expectations
are of us. To do this, we will be commissioning socioeconomic
baseline studies and community attitude /
needs surveys, which will be conducted by independent
specialists. The first will be carried out at our largest
and oldest location in the French Pyrenees. This will
form the model for future studies at our other mine/plant
locations around the world.
Raising awareness
about the talc industry
One of the aims of our community relations is to raise
awareness, particularly amongst younger generations,
about talc as a mineral, its many uses and the
talc industry in general.
In 2002, our Belgian operation, Luzenac NV, organised
an Open Day at its plant in Gent to mark its
tenth anniversary in the Group. The event was part
of a scheme led by the Belgian Chemical Industry
Federation to promote the Belgian chemical industry
and was particularly targeted at young people
and students fresh out of university. Over 250 enthusiastic
visitors braved the wet weather to tour the
plant.
At our Montana operations in North America,
Luzenac is actively supporting the ‘Minerals
Education Workshop’, a continuing education course
for secondary school teachers, where teachers learn
earth science facts about mining and minerals and
how they contribute to improving our quality of life.
The final day of the workshop is a field trip to the
Yellowstone mine, where we showcase resource
stewardship as well as mining and beneficiation
practices. Throughout the workshop, we establish
contacts with local teachers, and often conduct tours
for their classes after they have studied the rocks
and minerals segment. The tours we have hosted at
the mine and mills have been as rewarding for
Luzenac as they have been for the teachers and students
involved.

2003 goals and targets
Objectives for 2003 include:
- conducting a social/economic
base line study covering the
region where our French
operation, Talc de Luzenac
France, is located;
- conducting a survey of the
local community within and
around our French operation.
Luzenac also participates actively in a number of local
fairs. For instance, in the spring of 2002, several
employees from Luzenac’s Timmins operation in
Canada volunteered their time to set up and service
an educational booth about talc during “Timmins
Mining Week”. Sponsored by the Porcupine
Prospector’s Association, the annual Mining Week
involves different mines sending representatives to
address students at conferences and at local
colleges. There are special exhibitions at the museum
and the week culminates with the mines setting up
displays at a local shopping mall to inform the public.
Children and adults alike were fascinated by the
wide applications and uses of talc, and according to
a survey conducted by the Prospector’s Association,
Luzenac’s booth generated the most interest.
Just good neighbours
The “Paint-A-Thon” was particularly
rewarding for all involved.
Many of our employees are involved with local charities.
Brothers Redevelopment Inc. (BRI) is a non-profit
organisation that helps elderly people with home
improvement projects in the Denver area. In August
2002, employees from Luzenac, Kennecott Energy
and Rio Tinto Asset Utilisation and their family members
and friends joined forces with BRI to paint the
house of a needy homeowner.
Prior to the “Paint-A-Thon,” team members solicited
area businesses for donations, met with the homeowner
to inspect problem areas and power-washed
the house. A local home improvement store donated
primer and Rio Tinto employees donated rollers, pans,
brushes and the use of the power washer.
At the end of the day, Loraine, the elderly widow,
who owned the house was thrilled, and the camaraderie,
teamwork, and fun they had made this a particularly
rewarding day for all involved.
As you can see, much of the impetus for Community
Relations comes from our employees themselves,
and many initiatives are simply what our employees
want to do in their own communities–be it serving
on local charities or town councils or clearing
hiking paths in the French Pyrenees. This employee
involvement is crucial to us. After all, our employees
are our greatest ambassadors in the outside
world and good community relations are vital to our
long-term success.■
Our Austrian operation hosted Luzenac’s
first European birding event
Last year was marked, however, by Luzenac’s first ever birdwatching event at one of our
European locations, organised by our Austrian operation, Luzenac Naintsch. The headquarters of Luzenac
Naintsch are on the edge of a small national park that is home to a number of wild animals and over sixty
different species of bird. At the beginning of this year, the small lake in the park completely dried out.
Environment issues are high on Luzenac’s priority list, so Luzenac Naintsch was keen to help preserve the
lake and made a donation to the park’s lake fund. To thank them, the park authorities organised a bird
watching excursion for Luzenac employees and their families and friends.
Birdwatch 2002 took place on 26 September last. The landscape around Luzenac Naintsch is one of green
valleys and rolling hills flanked by conifers and the park’s incumbent ornithologist has recorded 69 different
bird species in the area. Many of the species had moved to sunnier climes for the winter, but participants
nevertheless caught glimpses of mallards, herons, and great tits and heard nuthatches and spotted
woodpeckers.
The bird watching event afforded an occasion to foster closer ties with national park staff and was a great
opportunity to get together with friends and relatives and enjoy the simple pleasures of the great outdoors.
We hope it will be the first of many in our other operations.
9

Managing
the environment
responsibly
Flashing light system powered
by photovoltaic cells.
Luzenac Set, our Spanish
operation, has recently replaced
its fuel-powered forklifts by electric
forklifts. This not only reduces
greenhouse gas emissions,
it minimises health risks for
employees.
10
Luzenac’s Health, Safety, Environment and
Communities policy requires that we “be a steward
of the environment and the natural resources
under our responsibility and be a respected member
of the community wherever we operate”.
It also requires that we “build from a foundation of regulatory
compliance with consistency in standards, practices
and procedures worldwide”. This means that we
have an integrated view of environmental management
and community responsibility. Our primary aim
is to operate our business with the minimum of environmental
damage and to work with our neighbours
to ensure we are not causing them problems.
ISO 14000
Last year, we set a target for all
our operations to be certified to
ISO 14000. By year-end, two
operations, Mexico and Australia, remained uncertified.
Both are now operating to environmental management
systems compliant to ISO 14000 and will
have their certification audits in 2003. This means
that all our operations are now managing environment-related
matters in a manner that is planned,
controlled, monitored and recorded in compliance
with an internationally acknowledged Environmental
Management System.
The auditing process covers whether landscape rehabilitation
is planned for and carried out progressively,
and is commensurate with the nature of the operation;
and whether the landforms created are stable
and safe and allow for a development of the land
which is consistent with company and stakeholder
expectations and regulatory requirements. The auditors
also check that our resources are used in a sustainable
manner, and that all generated waste is
minimised, handled safely, treated and disposed of
in a suitable way.
These audits are all performed by trained auditors
from all operations and from different backgrounds.
This not only ensures that our operations come under
the scrutiny of an impartial eye, but that experience
and best practice are shared within the group.
Exploring new energy sources
A new goal for us is to explore the use of more renewable
(“green”) energy sources such as wind and solar
to meet at least some of our electricity needs. We
have already started this in a very modest way at our
The former tailings area of our Johnson
Mill in Vermont is now a recreational area
featuring a soccer field, three baseball
fields and a children’s playground.
Trimouns mine in the Pyrenees, which now uses solar
energy to power the flashing light system used to warn
drivers on the road to the mine that one of our cableway
buckets is about to pass overhead. These lights
are operated 24 hours a day by photovoltaic cells.
Originally powered by batteries, this solution is not
only environmentally friendly, it is cheaper.
Land management:
a key issue for Luzenac
The mining and processing of talc is relatively benign
from an environment perspective. Our key environmental
issue is land management–even in this
department we are very fortunate in that we have
very little unwanted rock mixed in with the talc that
has to be separated and discarded. This is added to
the overburden and generally used for landscaping,
creating visual and noise barriers and to rehabilitate
the land we have disturbed.
The restoration schemes we implement are designed
to enhance local species and biodiversity. To help us,
we engage local academics to advise us on cultivation
techniques, the choice of species, where and
when to plant, how to nurture and so on. This work
is combined with water run-off management as the
quantity and quality of water flow is directly related
to these land management aspects. This water can
be of great benefit to our neighbours.
Great effort, therefore, goes into minimising the
adverse footprint of our mines and mills and to maximising
the beneficial footprint we can create. Indeed,
when we investigate the acquisition of an operation,
we take into consideration how we would restore
the landscape once the deposit is exhausted.
Take our Johnson talc mill in Vermont for instance.
The mill was first opened in the late 1800s and finally
closed its doors in 1991. Initially operated as a dry
grind mill, in later years the previous owners installed
a flotation circuit for the processing of talc for cosmetic
products. With flotation came the need for tailings
settling ponds–but the facility was located in a
sensitive area on the banks of the Lamoille River.
At the time of closure, over 19 acres of land had been
utilised as tailings ponds. Although Luzenac had
owned and operated the Johnson mill for less than
five years when it closed, we agreed with the local
community that we would reclaim the whole tailings
area and turn it over to the community as a recreational
area. Ten years on, there are three baseball /
softball fields, a soccer field, a playground, a parking

The picture (right) taken from our West Windsor
Mill and Vermont Operations office shows
six plantations, plus temporary reclamation
in the tailings ponds area.
Old cells...
… New cells.
2003 goals and targets
Objectives for 2003 include:
- measuring and reporting water
usage according to the EU’s SDI
Scheme and examining ways of
reducing consumption;
- measuring and reporting energy
consumption according to the EU’s
SDI Scheme and exploring new
renewable energy supply options;
- ensuring active relationships with
local experts to optimise
biodiversity on restored land.
area and a walking path all within the area of the former
tailings ponds.
Rehabilitation doesn’t just take place when we close
an operation, however. It is an ongoing process. Our
Vermont Operations have been using tree plantations
for a variety of purposes for over 20 years now.
One of our initial goals was to use the trees as
screening for the various mines and mills. The concept
was then expanded to provide trees for live
transplants for reclamation, Christmas trees for
employees, and decorative trees for resale to the
general public. Since inception, a total of eight plantations
have been created in hitherto non-productive
farmland in and around the West Windsor and
Ludlow operations. Our plantations provide excellent
wildlife habitat for turkeys and other birds, deer
and numerous other small wildlife.
Reducing energy consumption
and CO 2 emissions
The reduction of energy and water consumption and
GHG emissions is an ongoing goal for Luzenac. In 2002,
we kicked off a number of projects along these lines.
In order to improve its yields and decrease its electricity
and water consumption, Luzenac Inc., our
Canadian operation, completed the installation of
state-of-the-art flotation cells at its talc processing
operations in Penhorwood, Ontario. The 12 cells
replaced 40 older, less efficient flotation cells. These
new cells operate at higher densities with two fewer
cleaning stages, which results in a considerably lower
re-circulating load. Over 500 horsepower were eliminated
from the circuits.
Our Trimouns mine in the Pyrenees has just acquired
a new Liebherr shovel, equipped with an electronic
oil recycling system, which re-injects the oil into the
engine and transforms it into energy. The shovel has
a 300-litre oil tank built into the engine, which means
the oil tank needs purging once a year instead of
once a month. This system not only reduces the
A new-generation shovel
designed to save oil.
Overburden is
used to reinforce
river embankments.
amount of waste oil we have to dispose of, it lessens
the risk of human and environmental accidents during
oil changes.
Reducing water consumption
Generally speaking, the talc process is a dry one. We
mine high quality talc and use dry grinding and sorting
processes to obtain various products from it. Due
to the high quality of our ore we do not need additional
separation and cleaning processes. Traditionally,
Luzenac focuses on dry processes to keep water and
energy consumption to a minimum. In our mines, water
is used on mine roads to prevent dust emissions and
for ore washing. Pit water is generally used for this.
Last year, to improve the efficiency of freshwater use,
our Spanish Respina operation installed a new washing
system in its ore hand-sorting area. Rainwater is
now pumped and directly channelled to a sprinkler
system in the mineral washing area. This new system,
which replaces a conventional tap system, has
led to a 50% reduction in the operation’s mineral
washing water consumption.
State-of-the-art technology contributes
to safeguarding the environment
Luzenac’s Canadian operation has just installed dry
compaction equipment in its Timmins mill in Ontario.
Dry compaction uses high-pressure briquette technology
to compress talc powder. Our older, conventional
compaction technology involves mixing water
and talc to form a paste, extruding the paste in a pellet
mill, then removing the water from the pellets by
drying. The new dry compaction equipment eliminates
the steps of adding and removing water, costs
less and reduces greenhouse emissions.
Other technologies we are currently looking at include
micronisation–a process which leads to energy savings,
and pugging, which will allow us to reduce consumption
of additives used in slurries for the paper
coating industry. ■
The new washing system
installed by Luzenac SET in Spain
has led to a 50% drop in mineral
washing water consumption.
11

Talc, the mineral
that contributes
to Sustainable
Development
In sanitaryware, talc helps
reduce the amount of potentially
dangerous substances such as
toxic heavy metals that are used
in glaze formulations.
Using talc in refractories for
kiln rollers has contributed to
the development of new fastfiring
technology that
consumes less energy.
Talc-reinforced polypropylene allows
automotive parts to be made thinner
and thus lighter.
12
In all its applications: plastics, paper, coatings,
water treatment, talc plays a beneficial–albeit
modest–role in meeting human needs and protecting
the environment.
In plastics...
In years past, the interior of cars was made up of
a variety of plastics including polyvinyl chloride
(PVC), acrylonitrile-butadiene-styrene (ABS) and
polyurethane (PU). These polymers are expensive to
make, not very biodegradable, have a number of toxic
intermediates and their differences inhibit their recycling.
A much less expensive polymer, polypropylene,
made from by-product natural gas liquids, can be
reinforced with different grades of talc, to replace
all of these other polymers. Talc-reinforced polypropylene
allows automotive parts to be made thinner and
thus lighter. The weight reduction helps increase the
fuel economy of the car, thus cutting emissions. The
result is a less expensive, better performing, more
environmentally friendly car where the plastics can
be fully recycled. Talc-reinforced polypropylene is
now incorporated into many cars and light-trucks produced
around the world–and its usage continues to
grow every year.
The replacement of steel parts with talc-reinforced
plastics in household appliances reduces the energy
required to produce these appliances. Plastic components
also have greater durability than steel components.Talc-reinforced
plastics are corrosion
resistant and unaffected by household solvents and
cleaners. They are now common elements in wash-
ing machines, dryers, dishwashers, refrigerators, and
coffee machines.
Talc-reinforced plastics have also enhanced the transportation,
handling and storage of food products.
These plastics are used to produce lightweight, protective
containers. Talc increases the shelf life of
foods by improving the barrier properties of containers.
In ceramics...
Talc is also a key ingredient in the manufacture of
ceramic cordierite, which has one of the lowest coefficients
of thermal expansion of any material known.
This allows it to be heated and cooled thousands of
times without cracking or crumbling. Honeycomb
talc-reinforced cordierite structures are a critical component
in today’s automotive catalytic converters.
The structures are used to support the oxidation catalysts
that clean up the exhausts of conventional
petrol engines. Additionally, talc-filled cordierite structures
are now being used as particulate filters to
remove dirty emissions from diesel engines–an
advancement in pollution control technology that will
allow countries all around the world to effectively
and affordably reduce the hazardous particulate emissions
from diesel powered cars, trucks, buses, and
heavy equipment.
In paper...
Talc’s special properties help to remove contaminants
that affect paper quality without the use of chemi-
Talc has been used as an effective pitch
and stickies control agent for many years.

By increasing the covering power,
durability and longevity of paints,
our talcs have a positive impact on
life-cycle analysis of painted products.
cals and the need for special recovery systems. This
helps reduce water consumption and wastewater
output in the paper industry.
Wood fibre used to make paper contains resinous
compounds known as pitch. Pitch causes significant
problems in papermaking, because the deposits
affect pulp and paper quality as well as productivity.
Recycled pulp and paper mills experience similar
problems due to the presence of substances used in
the conversion processes such as latex and adhesives.
These are known as stickies. Talc has been
used as an effective pitch and stickies control agent
for many years.
Luzenac Group sells over 200,000 tons a year of pitch
control talc worldwide. This equates to over 10 million
tons of pulp, paper and recycled fibre being
improved without the use of chemicals. Water systems
are thus improved and the
efficient use of wood fibre is
increased. As more and more paper
is recycled and paper producers are
requiring virgin pulp from sustainable
forestry, talc’s ability to trap
detrimental substances helps the
paper maker utilise his prime material
more efficiently.
Talc in coatings
A new use for talc is in packaging where OCC (old corrugated
containers) is used as the prime raw material. Here there are high
quantities of adhesives and other contaminants which form hard deposits
on paper machines and other auxiliary equipment. Papermakers are thus
forced to shut down machines to clean with the aid of expensive and
environmentally unfriendly chemicals. The new talc product, Mistron ® PB,
launched by Luzenac in 2002, will allow papermakers to reduce cleaning
frequency, chemical usage and effluent discharge. Additional benefits of
talc include paperboard quality improvement and increased usage of OCC
fibres. Mistron ® PB also helps the environment. Unlike chemicals, Mistron ®
PB does not increase the chemical oxygen demand (COD) of receiving
streams, rivers and lakes, and when added to the papermaking process, it
is retained in the paper. Any residual Mistron ® PB that stays with the mill
effluent can be used to neutralise the residual resin and fatty acids, which
are toxic to fish and other aquatic creatures. Furthermore, Mistron ® PB that
remains in the sludge during wastewater treatment acts as a sludgedewatering
agent thus enabling reduction in the cost of the dewatering
polymer. Mistron ® PB also increases the sludge solids resulting in lower
More and more, life-cycle analyses
are now being carried out on products
in order to determine the
impact they have on the environ-
Our Aquatal ® range
considerably improves
the performance of biological
wastewater plants.
ment throughout their lifetime, from production to
destruction. If an object or product is painted, the
paint film is logically included in this life-cycle analysis.
By increasing covering power, paint durability
and longevity, Luzenac talcs have a positive impact
on the life-cycle analysis of painted products.
Organic solvents are used in paint production because
they act as dilutants to facilitate paint application.
However, these solvents contain volatile organic compounds
(VOC) that contribute to atmospheric pollution.
Paint producers are now seeking to produce
low-VOC paints without impairing end-product quality.
Luzenac’s low-oil absorption talcs are ideal for
low-VOC formulations because they reduce the
amount of resin needed in the film, hence the quantity
of VOC-containing solvent needed to dilute it to
the appropriate viscosity.
Talc in wastewater treatment
Luzenac’s Aquatal ® range improves the performance
of biological wastewater plants where bacteria are
used to degrade the pollutants. The Aquatal ® particles
ballast the flocs of bacteria, thereby improving
and controlling their sedimentation, resulting in high
quality effluent even in the event of hydraulic organic
overloading or biological disorders.
Aquatal ® talc is used by municipalities, pulp and
paper plants, dairy plants, meat processing facilities
and chemical plants to control the quality of wastewater
before it is released into rivers and the
drainage system. ■
transportation costs for sludge disposal and smaller landfill space
requirements. Compost prepared from sludge with talc is more
environmentally friendly than similar compost with chemicals. According to
the Fiber Box Association, the American cardboard industry’s professional
organisation, around 3 billion pounds of waxed-containing paperboards are
produced each year. Boards containing waxes cannot be recycled if the
waxes are not removed or deactivated as they tend to clog screens, felts
and cause deposits on presses, dryer drums, and finished paper.
Papermakers are forced to shut down machines to clean with the aid of
expensive and environmentally unfriendly chemicals. Current treatments
available are not economically viable. As such, the wax-containing boards
that are non-biodegradable end up in landfills where they block essential
biodegradation and “digestion” processes. Mistron ® PB can allow the
wax-containing boards to be recycled, thereby eliminating the need to
landfill. Mistron ® PB, unlike clay, bentonite, calcium carbonate and other
earth minerals, has an excellent affinity towards waxes. The use of
Mistron ® PB allows papermakers to reduce cleaning frequency, chemical
usage and effluent discharge, and improves paperboard quality.
13

14
TLF’s new camera analyses
the colour of the talc at a rate
of 3,000 particles per second.
Making the most
efficient use
of our mineral
deposits
Luzenac is currently testing thow out
technology on its roller mills in several
of its operations. The results are extremely
promising.
2003 goals and targets
Objectives for 2003 include:
- extending throw-out technology
to the roller mills at our Talc de
Luzenac France plant;
- completing the ore sorter
project study at our Three
Springs operation in Australia;
- optimising our existing friction
sorting system at our
Yellowstone operation
in Montana, USA.
Some argue that if you exploit a finite resource
then, by definition, your activity cannot be sustainable.
At Luzenac, we believe that reality is
more complex than that.
Human life could not exist as we know it if we did
not take geological resources from the Earth. We
consider acceptability to be a question of abundance
of the mineral, the degree of damage caused (environmental
and social) in mining and processing it,
the efficiency of the extraction method and opportunities
for recycling. Talc is beneficial in meeting
human needs today and the indications are that we
will be able to meet those needs for centuries to
come. Due to the nature of the mineral, talc can be
mined and processed without significant harm to
people or the environment. In its major applications,
talc is not only recyclable, it contributes to the environmental
friendliness of the end product itself. If
the rule were that all mineral resources should be
left in the ground for future generations, then life as
we know it would be impossible. And if this rule were
right for us, then surely it would be right for future
generations too!
Nonetheless, it is our responsibility to ensure that
we make the most efficient use of the resources we
own. Luzenac has been seeking ways to do this for
many years now and uses a number of state-of-theart
processes, such as optical and friction sorting, in
its mine operations to ensure that ore recovery is
maximised.
In 2002, we completed or initiated a number of projects
designed to optimise our extraction processes.
Ore sorting
Our French operation has been using optical sorting
to optimise ore resources for the last twenty
years. In 2002, Talc de Luzenac France (TLF) installed
a new-generation optical sorter with a highresolution
camera able to detect rock particles as
small as five millimetres at a rate of 3,000 particles
per second. This has allowed us to considerably
increase recovery of white ore, enabling us
to reduce the total number of tons of ore we
extract from the ground by nearly 10%. TLF is now
ready to produce pure, white “000” grade talcs,
particularly suited to the pharmaceuticals industry.
Luzenac Australia’s Three Springs Mine produces
around 150,000 tons per year of lump microcrystalline
talc in six different grades. After a selective mining
operation based on colour and mineralogy criteria,
followed by a crushing and sizing operation, the ore
is refined by hand sorting on a picking belt in order
to remove accessory minerals present in the talc. The
hand-sorting process is inefficient and results in low
overall product/reserve recovery. The hand sorting
of small fractions is physically impossible and this
size fraction represents 20% to 25% of total
extracted ore downgraded or ‘stocked’ at zero value.
Likewise, ore with high levels of other minerals cannot
be treated by hand sorting and is also ‘stocked’
at zero value. For at least the last twenty years the
Three Springs Mine has produced and ‘stocked’
around 1.5 millions tons of talc with high levels of
associated minerals (dolomite, arenite, clay, chert,
quartzite) with no commercial market value.
In 2002, our Australian operation initiated an “Ore
Sorter Project” to effectively extend the reserves by
improving the efficiency of the use of the ore body
through an alternative process to hand sorting such
as friction sorting and/or optical sorting. The study
is expected to last one and a half years.
In the pipeline...
Other processes we are currently testing include
“throw out” and electrostatic separation. The throw
out process is designed to eliminate other minerals
such as pyrites, carbonate and quartz. Throw-out systems
have been installed on our roller-mill ore crushers
in our Italian and Austrian operations. They will
enable us to enhance productivity and product quality
and reduce wear on grinders.
Electrostatic separation, designed to separate talc
from minerals such as sepiolite, carbonate, quartz
and pyrites, enhances recovery of low-grade ore. It
is a dry process and a good alternative to floatation
systems that require the use of tailings ponds. An
electrostatic separation system is being tested at
our Italian operation, Luzenac Val Chisone.■

Fostering supplier
and joint venture
relationships
that are in line
with our HSEC
standards
When you are striving for continuous improvement
in your own business, it is very easy to overlook
what supplier companies and joint venture
partners are doing on their side.
Until recently it wasn’t even considered relevant.
However this view is rapidly changing. In an SD
world, these partners need to be seen as part of your
own organisation in many ways. Our item below on
our Chinese ore suppliers is a good example.
Suppliers and joint venture arrangements tend to be
managed by departmental functions that are generally
far removed from HSEC. Their level of involve-
Luzenac sources most of its needs from its 11 wholly
owned mines in France, Austria, Italy, Spain, USA, Canada and Australia.
Nevertheless, we do buy lump talc ore from mines in China and process it at
several of our 19 plants around the world. This trade has been going on for
about 15 years now.
To forge closer ties with our Chinese partners and to share good practice, we
have started a “Supply Chain Responsibility” activity. We made our first visits
to the principal mines (open pit and underground) in March 2002, during which
we exchanged documents on policies, safety and health statistics and
practices, and toured the operations. The atmosphere was positive and
friendly in each case. Our Chinese suppliers have a keen sense of customer
satisfaction and are cleverly incorporating HSEC management into their ISO
9000 systems.
Direct commercial benefit came to us and our Chinese suppliers in the
summer of 2002 when a big brand name customer requested documented
assurance that HSE issues were being responsibly managed and that no child
labour existed in our supply chain. Luzenac was able to provide that
assurance, based on first-hand knowledge.
At the beginning of
2002,our French operation, Talc de
Luzenac France (TLF), held a meeting with its
principal sub-contractors. Forty representatives
from 25 companies working with Luzenac
attended the meeting, which comprised a
presentation by management members of our
Quality, Health, Safety and Environment
policies. We made the most of this opportunity
to remind our partners of the safety procedures
they are required to observe when working on
site. The presentation was followed by an
informal lunch, during which participants were
able to discuss issues raised during the
meeting. The event was welcomed by all, and
TLF will be repeating the exercise with other
partners in 2003.
ment in SD matters is a good way of gauging how
well SD is integrated into the business as a whole
and how it is managed in general.
At Luzenac, the full range of economic, social, environmental
and compliance issues are raised at senior
management level and form part of the Executive
Committee’s (ExCo) normal decision-making process.
While one ExCo member is specifically responsible
for SD issues (including Compliance Assurance) and
HSEC, all ExCo members have attended training and
awareness sessions on SD and are involved in the
discussions and decisions. ■
Luzenac is in the process
of acquiring a majority shareholding
in a joint venture in the Far East. This
enterprise has talc processing
plants which have been in operation
for several decades. There appear
to be no negative aspects regarding
community relations, environmental
pollution or health and safety. As
majority shareholder, Luzenac will
become responsible for these
operations and will be introducing
all our standards for health, safety,
environment, community relations,
ethical business behaviour, and
sustainable development, within a
reasonable timeframe.
2003 goals and targets
Objectives for 2003 include:
- introducing formal HSEC
examination steps into
evaluation of JV opportunities;
- introducing “green”
requirements into our
consumable purchasing chain.
15

Ensuring
the economic,
social and
environmental
viability of all our
acquisitions
and projects
Luzenac Group
131, av. Charles de Gaulle
92200 Neuilly
France
Tel. +33 1 47 45 90 40
Fax +33 1 47 47 58 05
Luzenac has several new projects currently
underway. These include the expansion of our
open pit mine at Rabenwald in Austria and the
development of a new underground mine to take
over from our Kleinfeistritz mine, also in Austria,
which will be depleted in a few years time,
We also ensure that when we have to close an
operation, this is done in a socially and environ-
Luzenac America
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
mentally acceptable manner (see closure of our
Azemuth mine and plant, page 7).
All of these projects are planned for and conducted
in accordance with the sustainable development
agenda. We are considering the economic, social
and environmental aspects in an integrated way,
looking at how one affects the others, and seeking
optimum solutions. The resulting models will be
used in similar projects as and when they
arise in all parts of the Luzenac organisation.
The people who have worked on
these projects will be called upon to contribute
their skills and experience.
When planning for a new operation, it is
also important to build in safety and occupational
health in the outline and detailed
design of new processing facilities and
mines. Much can be done at the design
stage to make routine operation and
maintenance tasks intrinsically safe.
Indeed, any modifications we need to
make can be almost free of cost when
the facility is still on the drawing board.
Once built, alterations are difficult if not
impossible at reasonable cost.■
We are currently planning
the extension of our Rabenwald
open-pit mine in Austria.
Contact: communication@europe.luzenac.com
This SD report is also available in PDF format on our website:
www.luzenac.com / All about Luzenac / Health, Safety and Environment.
Luzenac Asia
3, International Business Park
#01-18 Nordic European Centre
Singapore 609927
Tel. +65 6890 6926
Fax +65 6890 6927