Xstrata Copper North Queensland.pdf - Mount Isa Mines

Xstrata Copper North Queensland 

Sustainability Report 2010

Contents 

2 Chief Executive’s 

message 

4 Chief Operating 

Officer’s message 

7 Targets and scorecard 

13 Scope of report 

15 Our Sustainable 

Development Strategy 

18 Corporate governance 

21 Our operations 

and economic 

performance 

Enquiries and feedback 

29 Workplace health and 

safety 

29 Health and safety 

29 Safety performance 

30 Occupational health 

30 Monitoring programs 

31 Mount Isa Mines 

copper operations 

35 Ernest Henry Mining 

38 Townsville operations 

43 Our people 

43 Employment 

43 Diversity and 

opportunity 

43 Non-discrimination 

policy 

43 Labour relations 





About us 

57 Sustainable 

communities 

57 Stakeholder engagement 

and consultation 

57 Community feedback 

58 Corporate Social 

Involvement program 

58 Community grievances 

58 Indigenous rights and 

Aboriginal cultural 

heritage 

58 Mine closure 





79 Environmental 

performance 

79 Environmental incidents 

80 Climate change 

80 Energy 

82 Water management 

82 Biodiversity 

82 Emissions 

82 Waste and tailings 

management 

84 Product responsibility 

84 Copper and sustainable 

development 





110 Summary of key 

sustainability data 

111 GRI index 

IBC Glossary 

Our sustainability report is designed to share our 

progress with you and we welcome your feedback. 

Melanie Edgar 

Manager Corporate Affairs and Community Relations 

North Queensland 

Tel: +61 7 4744 2011 

Please email your comments to: 

nqsustainability@xstratacopper.com.au or write to: 

Community Relations 

Xstrata Copper 

Private Mail Bag 6 

Mount Isa, Queensland, 4825, Australia 

Xstrata Ethics Line 

The Xstrata Ethics Line is a confidential facility operated 

independently by KPMG. The line provides employees 

and other stakeholders with a means through which 

they can report any breaches of Xstrata’s Business 

Principles, policies or prevailing legislation. A free phone 

number is provided in every country in which Xstrata 

has managed operations. 

Xstrata Copper is the world’s fourth largest copper producer. In 2010, its 

attributable mined production of copper contained in cathodes and concentrates 

reached 913,500 tonnes. It is also one of the world’s largest producers of 

smelter and refined copper, including from third-party materials. 

Headquartered in Brisbane, Australia, Xstrata Copper is one of the commodity 

business units within the major global diversified mining group, Xstrata plc. Its 

mining and metallurgical operations and development projects span eight countries: 

Argentina, Australia, Canada, Chile, Papua New Guinea, Peru, the Philippines and 

the United States. Its operations and projects are administered through a regional 

divisional management structure, which ensures that critical decisions are taken 

close to the related businesses. Xstrata Copper also has a recycling business 

(Xstrata Recycling) with plants in the United States and offices in Canada and Asia. 

Xstrata is a global diversified mining group, listed on the London and Swiss Stock 

Exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful 

position in seven major international commodity markets: copper, coking coal, 

thermal coal, ferrochrome, nickel, vanadium and zinc with additional exposure to 

gold, cobalt, lead and silver. The Xstrata Group also comprises a growing platinum 

group metals business, iron ore projects, recycling facilities and a suite of global 

technology products, many of which are industry leaders. The Group’s operations 

and projects span 20 countries. 

The Ethics Line can be accessed online via 

www.xstrataethics.com or by calling the following 

free call phone number within Australia 1800 987 310.


Xstrata Copper’s North Queensland Division is headquartered in Mount Isa and comprises the Mount Isa 

Mines copper operations – consisting of the Enterprise and X41 underground copper mines, the copper 

concentrator and copper smelter, Ernest Henry Mining open cut copper mine located near Cloncurry, 

and the Townsville operations – comprising the copper refinery, and the Townsville port facilities 

and logistics (Townsville port operations). The Xstrata Copper North Queensland Division employs 

3,931 people (2,887 employees and 1,044 contractors). 

Townsville 

Cloncurry 

Mount Isa 

Bowen 

QUEENSL AND 

Australia 

Brisbane 

2010 Production Facts 

Mount Isa Mines 


Copper ore 

6.1 million tonnes of ore mined at two underground 

copper mines: Enterprise and X41 

Copper in concentrate 

158,143 tonnes 

Copper in anode 

214,041 tonnes produced at the smelter 

Plants 

1 concentrator – 7.2 million tonnes per annum capacity 

1 copper smelter – 300,000 tonnes per annum capacity 

Ernest Henry Mining 

Copper ore 

15.29 million tonnes of ore mined; 

9.84 million tonnes of ore milled on site 

Copper in concentrate 

74,595 tonnes 

Gold in concentrate 

91,259 ounces 

Townsville operations 

Townsville copper refinery 

2010 throughput 

287,001 tonnes of copper cathode 

Townsville port operations 

2010 throughput 

887,836 tonnes concentrate loaded to ship 

692,267 tonnes fertiliser loaded to ship 

Sustainability Report 2010 1

Chief Executive’s message 

The strong recovery in global demand for copper in 2010 together with robust copper prices, enabled 

Xstrata Copper to finish the year with a solid set of operational and financial results. The business was 

well positioned to leverage these favourable economic conditions as a result of the actions taken by 

our management teams during 2009 in response to the global financial crisis, including prudent cost 

reductions in the context of an unwavering focus on sustainable development and on our growth strategy. 

Charlie Sartain 

Our commitment to sustainable development 

remained firm in 2010 and was reflected 

in the 22 national and regional awards 

presented to our sites during the year for best 

practice in this field. It was also pleasing to 

note that, at the group level, Xstrata retained 

its position as Mining Sector Leader on the 

Dow Jones Sustainability Index in 2010/11, 

for the fourth consecutive year, and was 

named as the Super Sector Leader for Basic 

Resources Industries. 

As part of the Xstrata Group, the principles 

of sustainable development are integral to 

our business model and guide our daily 

decision-making. We take a systematic 

approach to setting targets, monitoring 

performance and reporting, both internally 

and externally, against our sustainable 

development policy, standards and targets. 

In May, following an annual review of 

our management policies, we launched 

an integrated Xstrata Copper Sustainable 

Development Policy which strengthened our 

published position on human rights; improved 

the alignment between the policy objectives 

of the Xstrata Group, Xstrata Copper and 

our operations; and simplified our overall 

sustainable development framework. 

Our sustainable development performance 

was closely monitored and evaluated 

throughout the year by the Xstrata Copper 

Sustainable Development Committee and 

our sites also participated in a combination 

of internal and external audits to provide 

assurance against the sustainability standards 

of Xstrata Copper and those of the 

Xstrata Group. 

Xstrata Copper exceeded many of its safety 

and health targets for 2010, and registered 

improvements of 30%, 50% and 33% 

for its Total Recordable Injury Frequency 

Rate (TRIFR), Lost Time Injury Frequency 

Rate (LTIFR) and Disabling Injury Severity 

Rate (DISR) respectively compared to 2009. 

Since 2007, following the acquisition of 

Falconbridge which doubled the size of our 

organisation, we have achieved significant 

improvements in injury rates across our 

operations with our TRIFR, LTIFR and 

DISR decreasing by 55%, 76% and 66% 

respectively over this period. 

“Our commitment 

to sustainable 

development remained 

firm in 2010 and 

was reflected in the 

22 national and 

regional awards 

presented to our sites 

during the year for best 

practice in this field.” 

However, despite this overall continuous 

improvement, we have been deeply saddened 

during the past year by critical incidents 

involving fatality or serious injury at our 

sites. At our Tintaya mine (Peru), Ronald 

Mamani suffered serious injuries from an 

electric shock while performing maintenance 

activities and tragically remains in a coma. 

More recently, in early 2011, Richard Roy 

sustained a fatal injury in an underground 

incident at our Kidd mine (Canada). It is 

clear that we must re-double our efforts on 

catastrophic hazard and high hazard activities 

to eliminate fatalities and serious injuries 

from our business. 

To that end, over the past year we 

have progressively introduced ‘positive 

performance indicators’ to monitor our safety 

performance, including targets for workplace 

observations of high hazard activities; 

percentage compliance with site audits 

of critical risks; and improved tracking of 

actions and recommendations from incident 

investigations. This proactive approach builds 

on our strong culture of incident reporting 

and further supports our ultimate goal of 

achieving injury-free, safe work environments. 

In the area of environmental management, 

we met our target of zero significant 

(Category 3) environmental incidents in 

2010 and the increase in our reporting of 

negligible (Category 1) incidents during the 

year was a positive reflection of the strong 

environmental consciousness across our sites. 

We recognise the importance of increasing 

the eco-efficiency of our operations and 

all sites have targets in place to minimise 

their impact on the natural environment 

while improving productivity. In 2010 our 

sites continued to make good progress 

towards achieving these targets that include 

reducing greenhouse gas emissions, energy 

consumption and fresh water usage and 

increasing energy efficiency, water recycling 

and emissions capture and treatment. 

2 XSTRATA COPPER NORTH QUEENSLAND

Chief Executive’s message 

Environmental and social impact studies 

(ESIAs) were also significantly advanced 

for a number of projects during the year 

with the Antapaccay ESIA approved by the 

Peruvian government in July; the Las Bambas 

ESIA submitted in May; and the Tampakan 

ESIA completed for submission in 2011. 

Our El Pachón (Argentina) and Frieda River 

(Papua New Guinea) projects are scheduled 

to complete ESIAs in 2011, and the Río 

Cuervo ESIA, as part of our Energía Austral 

project, is currently being evaluated by the 

Chilean authorities. 

I am also pleased to report that the major 

remediation program at the Murdochville 

and Gaspé sites in Quebec, Canada was 

completed in late 2010 within the agreed 

timeframe and well within budget. Mine 

closure plans are in place at all our operations 

and the work undertaken by our Canadian 

division clearly demonstrates that our 

commitment to our communities and the 

environment extends well beyond our project 

and operational phases and into post-closure. 

In 2010 we invested over US$32 million 

in Corporate Social Involvement projects, 

primarily in the areas of social and community 

development, education, art and culture and 

health. These programs were developed in 

consultation with local communities, and in 

many cases implemented in partnership with 

local stakeholder groups. Throughout the 

year, we continued to engage closely with 

our communities on a range of issues related 

to our mining operations. The resettlement 

agreements reached with the Fuerabamba 

community at our Las Bambas project and 

landholders at our Antapaccay project during 

the year were major achievements and a 

good reflection of the solid relationships our 

sites continue to build with our stakeholders 

through ongoing dialogue. 

Following the approvals of the Lomas Bayas II 

(North Chile) and Ernest Henry Mining 

underground developments in 2009, a 

further three major development projects 

were approved during the year, including the 

US$1.3 billion expansion to Antamina (Peru) 

in January; the US$1.47 billion Antapaccay 

brownfield expansion to the Tintaya mine 

(Peru) in July; and the US$4.2 billion Las 

Bambas greenfield project in August. With all 

these projects now under development we 

will now progressively see the realisation of 

our exciting organic growth strategy which 

will deliver a 50% increase in our production 

to 1.5 million tonnes per annum by the end 

of 2014. 

As a result of this ambitious expansion 

program, the total number of full-time hours 

worked by our own people and contractors 

will increase by around 50% as we move 

into 2011. This will bring some significant 

challenges, particularly in terms of safety, 

and we remain absolutely committed to 

ongoing improvements across all areas of 

sustainable development. 

Each year, Xstrata Copper publishes 

sustainability reports for our managed 

operations in line with the globally recognised 

GRI G3 reporting guidelines. These reports 

disclose our operations’ economic, safety, 

environmental, and social performance for 

the year and enable our stakeholders to 

compare our performance against our annual 

targets and to track our performance over 

time. This report is one of 11 Sustainability 

Reports* published by Xstrata Copper on 

our sustainable development performance 

for 2010. 

Top: Mount Isa City 

Above: Native Mitchell grass on Ernest Henry 

Mining’s rehabilitated south waste rock dump 

Left: A haul truck at Ernest Henry Mining 

Xstrata Copper also produces a quarterly 

Sustainability Bulletin that highlights best 

practice case studies from across our 

operations. Both the bulletin and our 

sustainability reports can be accessed via 

our website www.xstratacopper.com and 

I encourage you to visit this site regularly for 

further information on our operations. 

I hope that you find this sustainability 

report, and our other publications, interesting 

and informative and we look forward to 

keeping you updated on our progress in 

the year ahead. 

Charlie Sartain 

Chief Executive, 

Xstrata Copper 

* excludes Xstrata Copper’s non-managed joint venture operations, Collahuasi and Antamina, that independently publish sustainability reports. 

These reports can be accessed at www.collahuasi.cl and www.antamina.com respectively. 


Chief Operating Officer’s message 

The beginning of 2011 has been a difficult time for our state and the nation, and many Queenslanders have 

been facing tough challenges as they deal with a number of devastating natural disasters – major flooding 

occurred across Queensland in December and January and Tropical Cyclone Yasi hit Far North Queensland 

in February. We are pleased to report that our people and their families remained safe during these events. 

Steve de Kruijff 

As a key mining operation in Queensland, 

Xstrata is committed to supporting our 

state’s communities, and we were pleased 

to contribute $2 million to the Queensland 

Premier’s Disaster Relief Appeal to assist 

Queenslanders to get back on their feet after 

these events. 

Our operations also continued to play an 

important role in the economy of our region, 

and we contributed more than $1.3 billion to 

the Queensland economy in 2010. 

Our sustainable 

development and 

operational performance 

Overall, 2010 was a very positive year for 

the Xstrata Copper North Queensland 

Division as we continued our commitment 

to investing in our business, the community 

and our people. Through sheer hard work, 

dedication and importantly great teamwork 

we achieved outstanding results in both 

our sustainable development practices and 

operational performance, and a number of 

key achievements are highlighted here. 

Safety performance and recognition 

Although we were not successful in achieving 

our safety improvement targets for 2010, we 

continued to improve our safety performance 

by reducing our total recordable injury 

frequency rate (TRIFR) by 11% from 2009 

to 7.4. Our lost time injury frequency rate 

(LTIFR) reduced by 22% from 2009 to 0.7 and 

in May we celebrated achieving in excess of 

4.5 million hours lost time injury (LTI) free. 

Our Townsville copper refinery was awarded 

the Innovation Award at the annual 

Queensland Resources Council’s Safety and 

Health Conference for its innovative Copper 

Nodule Catcher system (read more about this 

innovation in the case study on page 41). 

Corporate Social Involvement (CSI) 

In 2010, we invested more than $1.7 million 

in our CSI Program, which comprises the 

Xstrata Community Partnership Program 

North Queensland (XCPPNQ) and a 

sponsorship and donations program. Through 

the XCPPNQ, we provided almost $1.1 million 

towards community partnerships in the north 

Queensland communities of Mount Isa, 

Cloncurry and Townsville. 

Through our sponsorship and donations 

program, we contributed more than $614,000 

to community organisations for various 

community initiatives and events including the 

Xstrata Mount Isa Rotary Rodeo, the Xstrata 

Mount Isa Mining Expo, the Townsville Greek 

Fest and the Ernest Henry Mining Curry Merry 

Muster Festival. 

In addition to these programs, we are also 

supporting a number of social infrastructure 

projects in Mount Isa, Townsville and 

Cloncurry, including the Cloncurry Community 

Precinct project and the new Mount Isa 

Dental Health Building. Since 2006, we 

have contributed over $5.5 million towards 

the development of a range of social 

infrastructure projects. 

Our CSI programs are very important to us 

and our north Queensland communities, 

where residents are seeing real benefits 

from the wide range of initiatives that our 

programs support. It also highlights our 

commitment to sustainable development 

through ensuring the communities where we 

operate are benefiting from our operations 

both in the short and long term. 

Environmental performance 

We are pleased to report that no significant 

environmental incidents occurred at our 

north Queensland copper operations during 

2010. We made significant progress with our 

committed Regulatory Transition studies and 

implemented a number of key environmental 

improvements such as the completion and 

commissioning of the Death Adder Gully 

stormwater management system at our 

Mount Isa site, and completion of a new 

water recycling project (read more about this 

in our case study on page 95). Xstrata Mount 

Isa Mines also reported substantial decreases 

in five of the six emissions compounds to 

the Federal Government’s National Pollutant 

Inventory (NPI) for which it was the major 

contributor for the 2009–10 period (visit 

www.npi.gov.au to read more about this). 

Operational performance and 

recognition 

During the year, we either met or exceeded 

the majority of our production targets 

across the business. At Mount Isa, the 

copper concentrator delivered an additional 

3,000 tonnes of copper through its innovative 

mill recovery project, while in our copper 

smelter we successfully completed the 

smelter rebrick shutdown on schedule with 

no recordable injuries, which paved the way 

for the second highest ever half year anode 

production of 125,000 tonnes. Townsville’s 

copper refinery also had a year with record 

production of cathode, 3% up from the 

previous record year in 2009. 

Progress was made on Ernest Henry Mining’s 

$589 million extension project comprising 

a shaft underground mine and magnetite 

processing facility announced at the end 

of 2009. Despite shaft underground mine 

project activities being suspended in June 


Chief Operating Officer’s message 

Anodes from the Mount Isa copper smelter make 

their way to Xstrata’s Townsville copper refinery 

via the Mount Isa to Townsville rail corridor 

due to the uncertainty created by the 

Federal Government’s proposed Resource 

Super Profits Tax (RSPT), activities resumed 

in July after the Government’s decision to 

replace the RSPT with a Mineral Resource 

Rent Tax (MRRT). The first magnetite 

concentrate was produced at the end of 

December, taking EHM one step closer to 

becoming Queensland’s first exporter of 

magnetite concentrate. 

Xstrata’s north Queensland operations 

won the Minerals and Energy sector Export 

Award at the Premier of Queensland’s Export 

Awards and at the Australian Export Awards 

in recognition of our outstanding export 

performance in 2010, which saw exports 

increase by 22% from the previous year. 

During the year, Xstrata Mount Isa Mines was 

also inducted into the Queensland Business 

Leaders Hall of Fame in recognition of our 

contribution to the state of Queensland. 

Living safely with lead 

in Mount Isa 

Our highest priority is the health and safety 

of our workers, their families, and the 

communities in which they live. The lead levels 

in residents of the Mount Isa community 

continued to be a matter we considered 

seriously. During the year we worked with 

the community and other key stakeholders 

to address this important community 

health issue. 

We are a founding member of the Living with 

Lead Alliance and through this we continued 

our focus on improving community awareness 

of how to live safely in an environment 

where lead occurs from natural and industrial 

sources. We continued to provide free, 

independent and confidential blood lead 

testing to community members, and we will 

continue our commitment to this initiative 

in the future. 

In 2010, Queensland Health conducted a 

second screening program of Mount Isa 

children in the target age range of one to four 

years, with the results showing the amount of 

children recording safe blood lead levels has 

increased to 95%, up from 89% in 2008. 

We also continued our support for the 

Lead Pathways Study, an independent study 

with three phases to enable us to better 

understand potential pathways of lead into 

the Mount Isa community through land, air 

and water. Please read more about this in our 

case study on the Lead Pathways Study on 

page 93. 

Looking ahead 

The economic outlook in 2011 remains good 

and the copper price and demand from Asia 

also remains strong. I am optimistic that 

this will give us the opportunity in 2011 to 

capitalise on our achievements in 2010 and 

look for further efficiency improvements. 

Some of the challenges and opportunities 

facing our north Queensland operations in 

2011 include: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

Driving improvements in our overall 

health and safety performance 

Transitioning from the Mount Isa Mines 

Limited Agreement Act (MIMLAA) 1985 

to the Environmental Protection Act 

(EPA) 1994 

Releasing the results of Stages II (Air) and 

III (Water) of the Lead Pathways Study 

Continuing our commitment to local 

communities in north Queensland, 

with an estimated investment of around 

$1.2 million in our CSI programs 

Maintaining our investment in training 

and apprenticeship programs to ensure a 

sustainable workforce 

Maintaining the strong operating 

performances we achieved at our 

Division in 2010 

Delivering magnetite concentrate from 

Ernest Henry Mining near Cloncurry to 

our Townsville port for export 

Commencing head frame construction 

and the shaft sink for the Ernest Henry 

Mining underground mine 

Successfully transitioning from open-pit to 

underground operations at Ernest Henry 

Mining in the second half of the year 

Assessing three options for securing 

long-term energy supply to north west 

Queensland 

Progressing the implementation of our 

continuous improvement programs 

■■ 

■■ 

Advancing work on key projects, 

including the evaluation of future 

open-cut potential at Mount Isa, 

the Copperbalt plant and the copper 

concentrator refurbishment and crude 

ore stockpile 

Focusing on exploration and business 

development opportunities. 

As always, the safety of our workforce will 

remain a top priority in 2011. We have set 

ourselves a goal of achieving Zero Harm 

where we have a safe and healthy workplace, 

free from injury, to ensure that all our people 

go home safely at the end of each day. 

The Xstrata Copper North Queensland 

Division publishes a sustainability report each 

year that seeks to address the material issues 

that have been raised by local stakeholders as 

well as those which Xstrata Copper considers 

essential to achieve our high standards in 

sustainable development. This report details 

our performance against our targets and 

outlines new targets for the coming year. 

I trust that you will find this report a valuable 

source of information not only about the 

Xstrata Copper North Queensland Division, 

but also about the sustainable development 

principles and objectives that guide all of 

Xstrata Copper’s business activities. 

Thank you for your support and we look 

forward to keeping you updated on our 

operations. 

Steve de Kruijff 

Chief Operating Officer, 



Members of the Environment team check an area that was recently seeded at Ernest Henry Mining. 

The area in the background was rehabilitated in previous years 


Targets and scorecard 

We strive for continuous improvement in our health and safety, social responsibility and 

environmental performance and to share the benefits of our activities locally, so that we 

leave behind a positive legacy of stronger, more sustainable communities. 

Safety 

Operation 2010 Target Performance 2011 Target 

Xstrata 

Copper North 


Division 

Zero fatalities (0) Zero fatalities 

LTIFR < 0.4 (0.7) LTIFR < 0.6 

TRIFR < 7 (7.4) TRIFR < 7 

DISR < 75 (130.6) DISR < 100 

100% of catastrophic hazards identified 

and risk management plans developed 

> 90% of high risk safety tasks/actions 

completed 

(100%) 100% 

(90%) > 90% of high risk safety tasks/actions 

completed 

> 80% compliance to mandatory training (87.4%) > 80% compliance to mandatory training 


Mines copper 

operations 

Ernest Henry 

Mining 

Townsville 

copper refinery 

Townsville port 

operations 


LTIFR < 0.4 (0.8) LTIFR < 0.6 

TRIFR < 7 (8) TRIFR < 6 

DISR < 75 (168.8) DISR < 100 


Zero LTIFR (0.5) Zero LTIFR 

TRIFR < 5.8 (5.6) TRIFR < 5.6 

DISR < 50 (13.9) DISR < 45 

10% minimum number of PASS 

champions per department 

Risk Management training S1, S2, S3 

100% leadership team 

(30%) 

(100%) 

100% of Bow-Tie assessments completed Nil scheduled Bow-Ties achieved 

> 85% safety training compliance (85%) > 85% safety training compliance 

Zero fatalities (0) 2011 targets are combined for the 

Zero LTIFR (0) 

Townsville operations (copper refinery 

and port operations). See below. 

TRIFR < 6 (8.23) 

Zero DISR (192) 

> 85% safety training compliance (81.2) 

Zero fatalities (0) 2011 targets are combined for the 

Zero LTIFR (0) 



Zero DISR (0) 

Zero TRIFR (0) 

> 85% safety training compliance (71.1%) 

Townsville 

operations 

See above. (Townsville copper 

refinery and Townsville port 

operations 2010 targets) 

See above. (Townsville copper 

refinery and Townsville port 

operations 2010 performance) 

Zero fatalities 

Zero LTIFR 

TRIFR < 6 

DISR < 100 

> 80% compliance to mandatory training 

Achieved Not achieved Action continues into 2011 



Health 




Division 

2010 Target Performance 2011 Target 

> 95% compliance to re-employment 

health assessments 

> 70% compliance to periodic health 

assessments 

100% hygiene hazards risk assessed in 

all departments 

(99%) > 95% compliance to re-employment 


(72%) > 70% compliance to periodic health 

assessments 

(60%)^ 

100% hygiene hazards risk assessed in all 

departments 



operations 

Ernest Henry 

Mining 

> 90% compliance to internal blood 

lead testing 

No lead in blood removals over the 

national limit of 50 micrograms per 

decilitre 

> 95% compliance to re-employment 



assessments 

(91%) > 90% compliance to internal blood lead 

testing 

Nil recorded 

No lead in blood removals over the 

national limit of 50 micrograms per 

decilitre 

(95%) > 95% compliance to re-employment 


(75%) > 70% compliance to periodic health 

assessments 

Townsville 



operations 

Townsville 

operations 


assessments 

Review and update noise maps (100%) 


assessments 

Review and update noise maps (100%) 

(93%) 2011 target has been combined for the 



(100%) 2011 target has been combined for the 



See above See above > 90% compliance to periodic health 

assessments 

Our People 




Division 


Continue to roll out cultural initiatives Life Styles Inventory (LSI) program 

workshops and coaching undertaken 

Conduct culture surveys of Xstrata 

Copper employees in 2011 

Conduct 40 Leadership Development 

Program (LDP) workshops 

Scheduled for first quarter 2011 

57 LDP and 12 Introduction to 

Copper North Queensland Leadership 

workshops conducted 

Continue to roll out organisational 

cultural initiatives 

Conduct culture surveys of Xstrata 

Copper employees and conduct feedback 

sessions 

Conduct 40 LDP workshops 

Develop and deploy Indigenous 

Employment Strategy which aims to 

provide a framework for action in 

employing Indigenous people and 

promote greater participation of 

Indigenous Australians in the mining 

industry 



operations 

Maintain apprenticeship intake at 

≥ 45; continue to offer school-based 

apprenticeships and traineeships 

50 full-time apprentices commenced 

in 2010 

11 school-based apprentices and 

five school-based trainees 

commenced in 2010 

Maintain apprenticeship intake at 

≥ 50; continue to offer school-based 

traineeships 

Award 15 university scholarships and 

eight high school bursaries 

Awarded 14 university scholarships 

Awarded 16 high school bursaries 

Award 15 university scholarships and 

eight high school bursaries 

^ Hygiene hazard characterisation commenced in 2010 and will be completed in 2011. All departments are being reviewed through inspection, observation, interview and 

investigation processes of their local hygiene hazards. These hazards are then risk assessed, which will continue to allow us to systematically target resources to reduce 

exposure to the hazard. 




Our People 



operations 

(continued) 

Ernest Henry 

Mining 

Townsville 

operations 


Continue to offer Graduate and Vacation 

Program placements in our operations 

Continue work experience programs with 

local schools 

Continue STEPers Indigenous training and 

employment program 

Continue to offer National Indigenous 

Cadetship Support Program (NICS) 

Award more than one Xstrata bursary of 

$1,000 each for work experience 

22 graduates commenced in 2010 

76 Vacation Program placements 

107 work experience placements 

offered 

Four trainees obtained full-time 

positions and four new trainees 

appointed 

One NICS program placement 

awarded 

Awarded three bursaries, and four 

other work experience opportunities 

Continue to offer Graduate and Vacation 

Program placements in our operations 

Continue work experience programs 

with local schools 

Appoint 15 new indigenous trainees in 

2011 

Undertake advertising campaign to recruit 

four additional NICS placements 

Provide two work experience 

opportunities for local high school 

students 

Maintain > 2% Indigenous recruitment * (2.7%) Maintain > 2% Indigenous recruitment 

Recruit > two Indigenous employees 

into the STEPers Indigenous training and 

employment program * 

Offer one National Indigenous Cadetship 

Support Program (NICS) place to a local 

tertiary student * 

Recruited seven Indigenous 

employees into the 2010 STEPers 

program, and employed one 

permanent Indigenous Training 

Coordinator 

One NICS program placement 

awarded, vacation work was also 

offered to the cadet 

Recruit > five Indigenous employees 

into the STEPers Indigenous training and 

employment program 

Continue with current four year NICS 

placement and offer vacation work in 

second year of four year program 

Award two school-based bursaries Not achieved Award two school-based bursaries 

Social Responsibility 




Division 


Select new XCPPNQ partners for 2011–12 Seven new partners selected Select new XCPPNQ partners for 2012–13 

Manage existing XCPPNQ partnerships 

against program outcomes 

Develop formal community engagement 

plans for Xstrata Copper’s north 

Queensland sites 

Appoint XCPPNQ External Advisory 

Committee 

Partnerships effectively managed 

Community engagement plans 

developed 

Target revised. Decision made not to 

appoint external advisory committee 

for XCPPNQ due to results from 

annual surveying of communities 

directing where funds would best 

address community needs 

Manage new XCPPNQ partnerships 

against program outcomes 

Implement community engagement 

plans for Xstrata Copper’s north 

Queensland sites 

Conduct a Community Attitudes Survey 

in each of our North Queensland sites 



operations 

Manage existing XCPPNQ partnerships 

against agreed program outcomes 

Launch and implement Indigenous Affairs 

Strategy 

Partnerships effectively managed 

Indigenous Affairs Strategy developed 

and under review 

Refer to Xstrata Copper North 

Queensland Division 2011 Target 

Launch and implement Indigenous 

Affairs Strategy 

Review cultural awareness training and 

deployment plan across site 

Review of cultural awareness training 

commenced 

Deploy cultural awareness training 

across site 

Implement action plan developed in 

response to 2009 Community Attitudes 

Survey 

Action plan implemented (refer to 

pages 57–58) 

Continue implementing action plan and 

complete Community Attitudes Survey in 


Hold three Community Information 

Sessions 

Three Community Information 

Sessions held (March, July and 

November) 

Hold three Community Information 

Sessions 

* These targets were included in the Social Responsibility table in the 2009 Report. 




Social Responsibility 



operations 

(continued) 

Ernest Henry 

Mining 


Hold a presentation and surface tour 

for teachers, emergency services 

personnel and health professionals 

new to Mount Isa 

100 people attended annual 

‘New to Isa’ presentation and 

surface tour 

Launch Mount Isa Mines website Website launched in November 

www.mountisamines.com.au 

Launch a freecall 1800 Community 

Complaints Hotline 

Freecall 1800 number launched in 

November 1800 982 982 

Conduct Key Stakeholder 360º Survey Xstrata North Queensland 360° Key 

Stakeholder Survey conducted in 

October 

Hold two Community Information 

Sessions, one Neighbours Day and one 

Open Day 

Continue to promote and support tourism 

initiatives in Cloncurry 

Implement action plan developed 

in response to 2009 Community 

Attitudes Survey 

Two Community Information Sessions 

held (April and October) 

Neighbours Day held in November 

Open Day held in September 

Conducted 13 tours with a total 

of 205 visitors, in conjunction with 

Cloncurry Historical Society 

Substantial sponsorship towards new 

rail history display at Mary Kathleen 

Memorial Park 


page 69) 

Launch an EHM website Website development commenced 

in 2010 

Launch an EHM freecall 1800 Community 

Information and Complaints Line 

Hold a presentation and surface tour 

for teachers, emergency services 

personnel and health professionals 

new to Mount Isa 

Implement action plan developed in 

response to Xstrata North Queensland 

360° Key Stakeholder Survey 

Hold two Community Information 

Sessions, one Neighbours Day and one 

Open Day 

Continue to promote and support tourism 

initiatives in Cloncurry 

Refer to Xstrata North Queensland 

Division 2011 Target 

Launch EHM website 

Target deferred to 2011 Launch an EHM free call 1800 

Community Information and 

Complaints Line 

Townsville 

operations 

Conduct a Community Information 

Session and a Key Stakeholder Forum 

Assess effectiveness of 2010 XCPPNQ 

partnerships 

Implement action plan developed 

in response to 2009 Community 

Attitudes Survey 

One Community Information Session 

held in May 

Key Stakeholder Forum held 

in September 

Partnerships assessed and determined 

to be effective 


pages 68–69) 

Provide training for Contract Owners Training scheduled for first 

quarter 2011 

Develop Department Action Plan from 

SD audit results. Achieve targets as set 

out in Action Plan. 

Include SD actions from 2009 audit and 

maintain the policies and procedures 

incorporating the guiding principles for 

all contracts and tenders 

Department Action Plan developed 

Continue work to achieve targets 

Department policies and procedures 

are maintained under the Document 

Control system with set review dates 

Review the Service Level Agreements Service Level Agreements reviewed 

Achieve desired corrective actions from 

Department Action Plan. Maintain 

internal and external audits to monitor 

systems and policies 

Department action plan developed 

and maintained and internal and 

external audits completed as per 

audit schedule 

Conduct a Community Information 

Session and a Key Stakeholder Forum 





Provide training for Contract Owners 




Environment 




Division 


Achieve carbon intensity of 2.8 tonnes 

of carbon equivalents per tonne of 

contained metal 

Achieve energy intensity of 25 gigajoules 

per tonne of contained metal 

3.0 Achieve carbon intensity of 2.96 tonnes 

of carbon equivalents per tonne of 


29 gigajoules per tonne of contained 

metal 

Achieve energy intensity of 

28.5 gigajoules per tonne of 




operations 

Continue progression of Phase 2 Air and 

Phase 3 Water of Lead Pathways Study 

Draft Phase 3 (Water) report of the 

Lead Pathways Study received 

Complete and publish both Phase 2 

(Air) and Phase 3 (Water) of the Lead 

Pathways Study 

Xstrata Copper Smelter Emissions Project 

team to complete feasibility studies 

Engineering studies and actions 

ongoing, work through continuous 

improvement plan actions 

Xstrata Copper Smelter Emissions Project 

team to continue with high priority 

actions in continuous improvement plan 

Review Air Quality Control Centre 

operation improvements and processes 

Review completed and improvements 

implemented 

Achieve 300 litres of fresh water per 

tonne of ore milled at the copper 

concentrator 

209 litres of fresh water per tonne of 

ore milled 

Achieve 260 litres of fresh water per 

tonne of ore milled at the copper 

concentrator 

Average 7.0 megalitres per day of mine 

dewatering into the recycled water circuit 

Averaged 7.7 megalitres per day 

Average 7.0 megalitres per day of mine 

dewatering into the recycled water circuit 

Ernest Henry 

Mining 

Maintain tailings underflow density at 

68% solids 

Raw water consumption 

< 410 litres per tonne of ore treated 

Re-use > 80% of pit and bore 

groundwater 

Rehabilitate 25 ha on the waste rock 

dumps 

Average underflow density of 

71% solids 

Maintain tailings underflow density at or 

above 71% solids 

373 litres per tonne of ore treated Achieve a 10% reduction in raw water 

consumption over 2010 use 

49% of pit and bore groundwater 

reused (refer to Environment section) 

25.2 ha of waste rock dumps 

rehabilitated 

Reuse ≥ 80% of pit and bore 

groundwater 

Rehabilitate 50 ha on the waste rock 

dumps 

Townsville 



operations 

Zero Category 2 (minor) and Zero 

Category 3 (significant) 

environmental incidents 

Zero non-compliances with licence 

conditions 

Two Category 2 (minor) 

environmental incidents occurred 

at the copper refinery in 2010 

(refer page 104) 

Zero Category 3 (significant) 


Zero non-compliances 

Zero Category 2 (minor) and Zero 

Category 3 (significant) environmental 

incidents 


conditions 

Zero regulatory actions or fines Zero regulatory actions or fines Zero regulatory actions or fines 

Undertake an independent biodiversity 

study of Stuart Creek 

Zero Category 2 (minor) and 




conditions 

Study completed (refer to case study 

on page 103) 





conditions 





conditions 

Zero regulatory actions or fines Zero regulatory actions or fines Zero regulatory actions or fines 



Shaun Cislowski – Boilermaker, welds pipe in the Site Services workshop at Xstrata Mount Isa Mines 


Scope of report 

This report provides comprehensive information about the economic, health, safety, 

environmental and social practices and performance of the Xstrata Copper North Queensland 

Division (Mount Isa Mines copper operations, Ernest Henry Mining, and the Townsville 

operations) from 1 January 2010 to 31 December 2010. 

In line with Xstrata Copper’s commitment to 

transparency and stakeholder engagement, 

all of its operating divisions and major 

development projects publish an annual 

report on their sustainable development 

(SD) performance. 

The report provides a general description of 

Xstrata Copper’s SD Policy and how this is 

reflected in the way we manage our business. 

The full version of this Policy can be found on 

Xstrata Copper’s website 1 . 

This is the Xstrata Copper North Queensland 

Division’s seventh Sustainability Report 

and is one of 11 published this year by 

Xstrata Copper 2 . 

In 2010 there were no changes in the scope 

and boundary since the previous report, 

and there were also no changes in data 

measurement methods. The Xstrata Group 

also publishes an annual Sustainability 

Report which includes an overview 

of Xstrata Copper’s SD performance. 

All these reports are available on the 

Xstrata sustainability website 3 . 

As part of the Xstrata Group, all Xstrata 

Copper policies are aligned with Xstrata’s 

SD Policy and 17 SD Standards and its 

operations and projects are audited annually, 

either internally or externally, against these 

standards. The Policy and Standards are 

published on Xstrata’s sustainability website. 

All data and calculations included in this 

report were obtained through procedures 

that are regulated and aligned with 

measurement models provided by Xstrata 

and also take into account technical 

protocols for indicators as set out in the 

Global Reporting Initiative G3 Guidelines. 

All monetary values are expressed 

in Australian Dollars (AUD) unless 

otherwise stated. 

Target audience 

This report provides our stakeholders with 

information about Xstrata’s SD Policies and 

practices and our performance at each 

of our Xstrata Copper operating sites in 

north Queensland. Our target audience 

groups include local, state and federal 

government, intergovernmental bodies, 

local communities associated with our 

operations, employees and their families, 

local contractors, community organisations 

and non-governmental organisations (NGOs), 

business partners including suppliers, media, 

and industry participants. 

Changes to size, structure, 

ownership of operations 

There have been no changes to the size, 

structure, or ownership of the Xstrata 

Copper North Queensland Division 

operations in 2010. 

Report distribution 

In order to ensure ready access to this Report, 

it is available in the following forms: 

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■■ 

■■ 

■■ 

1,300 printed copies in English 

Online at www.xstratacopper.com 

Online at www.xstrata.com/sustainability 

Online at www.mountisamines.com.au. 

Defining report content 

This report highlights specific issues that 

are material to the Xstrata Copper North 

Queensland Division and are related to the 

economic, health and safety, community, 

GRI application level 

and environmental sustainability of the areas 

in which we operate. 

In addition, it addresses issues considered 

material by our stakeholders and that have 

the potential to become material to the 

long-term success of our business. We are 

committed to being accountable to our 

stakeholders, and we describe the ways we 

engage with and respond to different groups 

in the Sustainable communities section of this 

report from page 57. 

In preparing this report, we have sought 

to present a view of our sustainability 

performance that is accurate, clear 

and balanced. 

In identifying issues or topics that are material 

to the Xstrata Copper North Queensland 

Division, we have considered: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

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feedback on our sustainability 

performance and reporting from 

key stakeholders 

company-specific issues raised either 

directly or indirectly by external 

stakeholders including NGOs, media, 

governments, communities and investors 

specific issues arising from the 

management of our business 

specific issues raised by our employees 

industry challenges raised in industry 

associations and forums 

Xstrata plc’s Business Principles 

and SD Policy and Standards. 

Xstrata Copper’s SD Framework, Policies 

and Standards 

indicators and topics outlined in the GRI 

G3 Guidelines, International Council on 

Mining and Metals’ principles, and other 

best practice guidelines and initiatives. 

2002 

In Accordance C C+ B B+ A A+ 

Mandatory 

Self Declared 

Report 

Externally 

Assured 

Report 

Externally 

Assured 

Report 

Externally 

Assured 

1 www.xstratacopper.com 

2 Reports can be found in the sustainable development section of our website www.xstratacopper.com 

3 www.xstrata.com/sustainability 


Scope of report 

The Global Reporting 

Initiative (GRI) 

This report was prepared in accordance 

with the GRI G3 Guidelines, the 

world’s most widely used sustainability 

reporting framework. 

On the basis of the G3 indicators presented 

here, corresponding to different stages of 

content definition, we consider that this 

report complies with Application Level A on 

the scale of A to C established by the GRI G3 

Guidelines, including the Mining and Metals 

Sector Supplement, to reflect the level of 

information and indicators reported. 

A GRI Index showing how the Xstrata Copper 

North Queensland Division has applied the 

G3 Guidelines in this report can be found 

on pages 111 to 112. 

Quality assurance 

As part of the external verification of 

the Xstrata Group’s 2010 Sustainability 

Report, independent auditors Ernst & 

Young examined the way in which Xstrata 

compiled its main SD data, figures and/or 

indicators over the course of the year. The 

signed assurance statement contains a brief 

description of this process and is published in 

Xstrata’s 2010 Sustainability Report which is 

available on www.xstrata.com. 

While this report has not been independently 

audited, it draws its key sustainability data 

from the same database as the Group report 

that is externally assured. 

The most recent previous Xstrata Copper 

North Queensland Division Sustainability 

Report was published in April 2010, which 

reported on 2009 sustainability performance. 

Prepared anodes ready for use in refining process at Xstrata Copper’s Townsville copper refinery 


Our Sustainable Development Strategy 

Sustainable development (SD) is at the core of our business strategy. Xstrata Copper is firmly committed to 

putting SD into practice. It understands that, in order for an organisation to be successful and a valuable 

partner to communities where it operates, it must set and comply with ever higher SD standards. 

Definition of purpose 

Our strategic objectives 

Our values 

We will maximise value for shareholders 

by successfully growing and managing an 

industry-leading portfolio of copper assets 

that deliver superior returns. 

We will achieve this in a safe, 

environmentally and socially responsible way, 

in open partnerships between our people 

and with communities, governments and 

other stakeholders. 

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■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

Injury-free, safe work environments 

Demonstrated leadership in 

environmental performance 

Reputation for social responsibility 

Realisation of the full potential 

of our people 

Maximize value from our 

physical assets 

Cost competitiveness through 

the cycles 

Value creation through dynamic growth 

and continuous improvement 

Our decisions and actions will 

reflect the following values: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

Honesty 

Dependability 

Respect 

Confidence 

Ingenuity 

Courage 

Passion 

Sustainable Development 

Strategy 

We operate according to the SD Management 

Framework established by Xstrata Copper 

and strive to meet the highest international 

standards, seeking to balance social, 

environmental and economic considerations 

in the management of our business. Similarly, 

Xstrata Copper’s operations regularly submit 

to internal and external audits in a bid to 

ensure compliance with our principles, 

policies and standards. 

Our undertakings are clearly established in 

our SD Policy, which is reviewed annually to 

ensure that it is aligned with our objectives. 

As a result of the review carried out in 2010 

Xstrata Copper decided in May to adopt the 

content of Xstrata plc’s SD Policy in order to 

bring the Xstrata Copper business unit and 

its operations more closely into line with the 

objectives of this policy. 

The SD Policy defines and directs our 

strategies and objectives and is incorporated 

into the annual Business Planning process. 

Action Plans are developed, implemented 

and reviewed annually to ensure that the 

objectives of the SD policy are being met. 

Precautionary approach 

Xstrata Copper takes a precautionary 

approach to the environmental management 

of its global activities. We use a 

comprehensive risk-based approach to 

manage the potential detrimental impacts 

of our activities. This approach means 

that, even in the absence of evidence that 

environmental degradation is occurring or 

will occur, we take action to mitigate the 

possibility that it will. 

As shown in this report, Xstrata Copper 

takes a systematic approach to setting 

targets, monitoring its performance and 

reporting (both internally and publicly) on 

all the main aspects of sustainability. Xstrata 

Copper’s SD Strategy and Management 

Framework interpret and support its SD 

Policy and the Xstrata Group’s SD Policy and 

17 SD Standards 1 and are aligned with our 

definition of purpose. 

Key challenges and 

opportunities 

Xstrata Copper requires all its sites and 

operations to identify their principal risks. 

From internal review and feedback from 

stakeholders, the Xstrata Copper North 

Queensland Division has identified a number 

of key challenges that may affect the success 

of our business and be relevant to our 

stakeholders now and in the future. 

1 www.xstrata.com/corporate/commodities/copper/publications 


Strategy and governance 

For each prioritised challenge, targets are set 

to reduce its impact on our operations. Our 

performance against these targets in 2010 

is shown in the scorecard on pages 7 to 11. 

The scorecard also includes future targets 

which are set to drive further improvements 

and address areas of under performance 

in 2010. 

Opportunities identified to make a positive 

contribution to sustainable development and 

create value for shareholders include: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

continuing improvement of energy 

and resource efficiency at our north 

Queensland operations 

positively influencing the sustainability 

performance of the mining industry in 

Australia through our active participation 

in forums such as the Minerals Council of 

Australia, Queensland Resource Council 

and other industry associations 

continuing our commitment to supporting 

local communities by providing 

opportunities for employment, using 

local suppliers and purchasing goods 

and services from the north Queensland 

region wherever possible 

increasing our interaction with 

suppliers and contractors through 

regular Supplier Forums 

contributing to the acquisition of skills 

and improving education to benefit our 

future and current workforce through 

workplace and community training and 

development programs 

maintaining community morale in difficult 

economic times, the need for good 

communication and the importance 

of supporting our local communities. 

We will do this by updating our north 

Queensland communities on issues 

important to them through regular 

community information sessions and 

forums to ensure residents remain 

informed of our progress. Feedback will 

continue to be actively sought from our 

communities through regular surveys 

such as the bi-annual Community 

Attitudes Survey. Read more about our 

commitment to ensuring sustainable 

communities and activities undertaken 

within our communities in 2010 on 

pages 57 to 77. 

Challenges faced by the Xstrata Copper 

North Queensland Division include: 

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■■ 

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Regional growth issues 

This Includes competition for staff, skills 

shortages, demand for infrastructure, 

affordable housing and coping with 

economic and population growth. 

In 2010 we continued to implement our 

Human Resources Strategy to attract 

and retain talented people and match 

employees’ family members with suitable 

local employers where possible. We 

continued to work with all levels of 

government and relevant organisations to 

address infrastructure needs and improve 

liveability in our local communities, 

particularly in the remote and regional 

communities of Cloncurry and Mount Isa. 

Changes to Federal tax and 

royalty structure 

The Federal Government’s proposed 

Resource Super Profits Tax (RSPT) resulted 

in Xstrata suspending its exploration and 

EHM expansion programs. At EHM, 

shaft underground mine activities 

resumed on 2 July 2010 in light of 

the Federal Government’s decision to 

replace the RSPT with a Mineral 

Resource Rent Tax (MRRT). 

Transition to new environmental 

legislation at Xstrata Mount 

Isa Mines 

We continue to operate within our 

current environmental licensed limits 

set by the Queensland Government 

and continue to work with them to 

implement the upcoming changes to our 

environmental regulation. In 2010 several 

studies were progressed to assist us with 

developing new environmental authority 

conditions and to ensure we can continue 

to sustainably manage our operations. 

Read more about our transition on 

page 86. 

Mount Isa to Townsville rail corridor 

A key issue affecting our north 

Queensland operations is the reliability 

of the Mount Isa to Townsville rail link 

and the potential impact of increased 

rail and product movements. In 2010 

we continued to work with Queensland 

Rail and the Queensland Government to 

address this issue. 

■■ 

■■ 

■■ 

Townsville Ocean Terminal 

development 

As a major user of the Port of Townsville, 

and a member of the Townsville Port 

User’s Group (TPUG), Xstrata Copper 

seeks to remain active in ensuring that 

the interests of port users are protected. 

In 2010 the Port of Townsville and the 

Queensland Government reached an 

agreement that will incorporate an 

Ocean Terminal in the redevelopment 

of Berth 10 and cancelled plans to 

include a residential precinct on adjacent 

reclaimed land. 

Townsville Port bulk loading facility 

The current wharf supporting the bulk 

handling shiploader has been in service 

for almost 100 years and is nearing the 

end of its serviceable life. Throughout 

2010 Xstrata Copper has been working 

with the Port of Townsville to identify 

a new berth for this activity. Significant 

progress has been made in reaching an 

agreement on relocating from Berth 7 

to Berth 8 and formal agreements are 

expected to be finalised in 2011. 

Environmental and health issues 

This includes the lead in blood issue 

and emissions controls in Mount Isa, 

environmental impacts such as water 

discharge events at Mount Isa and EHM, 

and dust emissions at the Townsville 

port operations. 

We continue to undertake a process of 

continuous environmental improvement 

to underpin our ongoing commitment to 

ensure the health, safety and wellbeing 

of our local communities. 

Specifically in Mount Isa, we continued 

our commitment to the Living with Lead 

Alliance, partnering with the Queensland 

Government (Queensland Health and the 

Department of Environment and Resource 

Management), the local Member of 

Parliament, and the Mount Isa City 

Council to increase awareness and 

influence behaviour of residents to live 

safely with lead. We also continued our 

commitment to the Lead Pathways Study 

and accessing new technologies through 

the Smelter Emissions Project. 

In Cloncurry we continued our close 

relationship to our pastoralist neighbours 

to manage events which can have a 

potential impact on their land or livestock. 


Strategy and governance 

Left: Loading fertiliser at Townsville Port 

Top: John (Sparrow) Harrison – Grader Operator 

Above: A Liebherr 996 shovel loads material 

into a haul truck in Ernest Henry Mining’s 

open pit mine 

■■ 

At our Townsville port operations we 

remained focused on ensuring our dust 

emissions remain within regulatory limits 

and that our operations focus on dust 

minimisation strategies as part of our 

commitment to achieving continuous 

improvement at our port operations. 

Climate change and energy 

As a producer and significant consumer 

of energy, we seek to contribute to 

the challenge of satisfying north west 

Queensland’s growing energy needs 

while reducing carbon emissions. We 

do this by participating in the Energy 

Efficiency Opportunity (EEO) program and 

proactively managing energy efficiency 

of our operations, reducing direct 

emissions and investing in capital projects 

such as the expansion of the Xstrata 

Power Station. 

In 2010 we expanded the Xstrata Power 

Station with the installation of three 

additional 3 MW generation units. 

This upgrade will not provide enough 

power to address the long-term energy 

requirements for Xstrata Mount Isa 

Mines, the community and other mining 

projects in the NWQMP and we will 

continue to investigate options for long- 

term energy supply for our north west 

Queensland operations. 

In 2010 our target was to maintain 

carbon intensity at 2.8 tonnes CO 2 -e 

per tonne contained metal, which 

we achieved. 

Most importantly, we continue to work 

with the Queensland Government and 

local councils to bring competitive 

and efficient energy to the north west 

Queensland Minerals Province (NWQMP). 

This is critical to ensuring the ongoing 

competitiveness of regional businesses 

and our own industry. Read more about 

our approach and response to climate 

change in the Environmental performance 

section of this report from page 79. 

Awards 

In 2010 the Xstrata Copper North 

Queensland Division received widespread 

recognition for the positive work its north 

Queensland operations have undertaken in 

its sustainable development activities through 

the following awards and achievements: 

■■ 

Australian Export Award (Minerals and 

Energy category) – Xstrata Mount Isa 

Mines. Please refer to the case study on 

page 24 for more information 

■■ 

■■ 

■■ 

■■ 

■■ 

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Premier’s Export Award (Minerals and 

Energy category) – Xstrata Mount 


Induction into the Queensland Business 

Leaders Hall of Fame – Xstrata Mount 


Innovation Award – 2010 Queensland 

Mining Industry Health and Safety 

Conference – Townsville Copper Refinery 

Kerry Brisbane, Electrical Team Leader 

Xstrata Skills Centre – Tradesperson 

of the Year Award at the Queensland 

Resources Council’s Resources Awards 

for Women 

Kylie Hughes, Production Engineering 

Officer Ernest Henry Mining – Highly 

Commended in the Overall Award 

category, Queensland Resources Council’s 

Resources Awards for Women 

Ricky O’Donoghue, Boilermaking 

Apprentice – finalist in the Apprentice 

of the Year category, Queensland 

Training Awards. 


Corporate governance 

Xstrata Copper adheres to the corporate governance standards set out in Xstrata’s Statement of 

Business Principles and SD Management Standards 1 . Xstrata’s Board of Directors establishes and 

reviews the Group’s SD Policy globally and its members receive regular reports on key performance 

indicators, critical and high-risk incidents and the SD assurance program. 

This approach is further supported by Xstrata 

Copper’s SD Policy and Fraud Policy as well as 

its SD Strategy and Management Framework 

and its own Common Systems in the areas 

of health, safety, the environment, risk 

management and human resources. 

Xstrata Copper’s SD performance is 

monitored and evaluated by the Xstrata 

Copper SD Committee, which meets 

monthly. Through Xstrata Copper’s 

Board of Directors, it reports regularly 

to the Xstrata Executive Committee. 

Steve de Kruijff, Chief Operating Officer 

of the Xstrata Copper North Queensland 

Division, sits on Xstrata Copper’s SD 

Committee and, in line with the business 

unit’s devolved management model, is 

responsible for drawing up, establishing and 

implementing SD strategies and management 

systems across the Division. 


Division has SD committees operating 

at all of its operations. 

Xstrata Copper’s SD Governance Structure 

Xstrata plc 

Xstrata Copper Board 

Copper Executive Committee 

Xstrata Copper SD Committee 

Divisional Management 

Operations/Projects 

Sustainable development 

assurance 

Xstrata Copper undertakes a series of internal 

and external assurance activities to guarantee 

its compliance with the Xstrata Group’s 

SD Policy and Standards and to ensure 

continuous improvement in this field. This 

process also ensures that SD targets are in 

place for relevant issues, monitoring systems 

are robust and reporting is material, accurate 

and timely. 

In 2009, the Xstrata Copper North 

Queensland Division’s SD Management 

System was subjected to an external audit. 

These audits were conducted by four 

qualified auditors against Xstrata’s 17 SD 

Standards using internationally recognised 

criteria. Scored out of 100 points, the Mount 

Isa Mines copper operations, Ernest Henry 

Mining and Townsville operations scored 64, 

55 and 55 respectively which placed them in 

the ‘weak’ band of performance. In 2010 our 

operations identified the actions necessary to 

address improvement opportunities, and aims 

to achieve a score of 80 (in the ‘good’ band 

of performance) by 2012. 

Internal risk audits, insurance audits, key 

Common System audits, regulatory audits 

and NQ internal risk compliance audits 

continued to be major activities in 2010. 

This included but was not limited to 

contractor management, ICT outsourcing 

contractor management, port and logistics, 

purchasing and warehouse management 

and shafts and winder systems risk control. 

The Mount Isa Mines copper operations’ 

next external third party SD audit is 

scheduled for 2011. Both Ernest Henry Mining 

and our Townsville operations have third 

party SD audits scheduled for 2012. 

Ethics and transparency 

In line with the Xstrata Group’s Statement 

of Business Principles, we are committed 

to managing our business ethically and 

transparently and seek to work in an 

open and responsible way, both internally 

and externally. 

Corruption 

In accordance with Xstrata’s Business 

Principles, we do not offer, solicit or accept 

any form of inducement or bribe. Xstrata’s 

internal audit function, supported by KPMG, 

reflects the ethical performance expectations 

contained in our Statement of Business 

Principles and covers identified fraud and 

compliance risks associated with our key 

business activities. 

In addition, Xstrata Copper’s Fraud Policy 2 

explicitly states that the organisation 

will not tolerate any incidence of fraud 

committed by employees or others, either 

from within or outside the organisation, 

and will take immediate and serious action 

against those persons committing a fraud, 

irrespective of length of service or position. 

In addition, it highlights the channels 

available for employees or others to safely 

and confidentially report non-transparent 

behaviour that is at odds with ethics and 

Xstrata’s Business Principles. 

There were no incidents of corruption, 

fraud or unethical behaviour recorded at 


Division in 2010. 

1 For further details, see the corporate governance sections of the Xstrata Group’s Annual Report and Sustainability Report on www.xstrata.com. 

2 The full version of Xstrata Copper’s Fraud Policy is available on www.xstratacopper.com. 


Corporate governance 

Public policy participation and 

political contributions 

Xstrata’s Business Principles prohibit political 

contributions of any kind. In line with this 

policy, the Xstrata Copper North Queensland 

Division did not provide any financial or 

in-kind contribution to political parties or 

individuals in 2010. 

Xstrata plays an active role in a number of 

important international and national industry 

organisations and multi-stakeholder groups, 

through membership, funding, provision of 

expertise and participation in committees and 

working groups. These include membership 

of the International Council on Mining and 

Metals (ICMM) and support for the Extractive 

Industries Transparency Initiative (EITI). 

Similarly, Xstrata Copper plays an active role 

in organisations that are copper-specific 

and others that are unique to geographical 

areas where it is the only Xstrata commodity 

business in operation. Its global public 

policy participation commitments include 

its involvement in the International Copper 

Association (ICA), which is chaired by Xstrata 

Copper Chief Executive Charlie Sartain, 

and the Australia-Latin America Business 

Council (ALABC). 

There were no legal actions for anticompetitive 

behaviour, anti-trust or monopoly 

practices at the Xstrata Copper North 

Queensland Division in 2010. 

Xstrata Ethics line 

At Xstrata Copper, each employee 

and/or contractor has a responsibility 

to act ethically and in accordance with 

Xstrata’s Business Principles. 

The Xstrata Ethics Line is a confidential 

facility, operated independently by 

KPMG, through which employees and 

other stakeholders, such as contractors 

or suppliers, can report any breaches 

of Xstrata’s Business Principles, policies, 

or prevailing legislation. A free phone 

number is provided in every country 

in which Xstrata has managed 

operations. The free number within 

Australia is 1800 987 310. The Ethics 

Line can also be accessed online 

via www.xstrataethics.com. 

The Xstrata Ethics line is promoted 

to all Xstrata Copper employees and 

contracting companies through the 

distribution of the Xstrata plc Business 

Principles booklet. 

Human Rights 

As part of the Xstrata Group, we 

endorse the principles set out in the UN 

Universal Declaration of Human Rights, 

the International Labour Organization 

Conventions and the UN Global Compact. 

Xstrata’s SD Standards require Xstrata 

Copper operations and projects to implement 

community relations strategies that ensure 

transparent and honest stakeholder 

engagement, and respect for cultural 

heritage, traditions and norms. Appropriate 

community grievance mechanisms are also 

set up to protect these rights. 

As a mining company with operations 

in diverse and often remote geographic 

locations, Xstrata Copper recognises that the 

primary human rights issues of our business 

are related to labour, safety and communities. 

We are committed to protecting the rights 

of our employees and contractors to work 

for equal pay, to associate freely, to a 

safe and healthy work environment, to 

non-discrimination and fair treatment that 

respects their legal rights. 


Division ensures that all of its human 

resources employees are trained on human 

rights policies. In 2010, 100% of our 

security staff undertook training on human 

rights policies. During the year we also 

investigated suitable training models for our 

future needs to remain compliant with our 

SD commitments and will be implementing 

ongoing training in 2011. 

Child and forced labour 

As stated in Xstrata’s Business Principles, 

we support the elimination of all forms of 

forced or compulsory labour and will not 

tolerate any form of child or forced labour. 

All Xstrata operations annually report the age 

of their youngest employee and contractor 

and are audited through the internal riskmanagement 

audit program. 

The Mining and Quarrying Safety and Health 

Act (1999) and Mining and Quarrying Safety 

and Health Regulations (2001) stipulate that 

all employees at our underground operations 

must be at least 16 years of age or older. 

In 2010 the age of our youngest employee 

at the Xstrata Copper North Queensland 

Division was 17. 

Principal memberships 

As a member of the Minerals Council 

of Australia (MCA), Xstrata Copper is a 

signatory to the MCA’s Enduring Value, 

the Australian Minerals Industry Framework 

for Sustainable Development. Enduring 

Value is the centrepiece of the mining 

industry’s commitment to achieving continual 

improvement in its environmental, social 

and economic performance, accountability, 

and ensuring that it operates in a manner 

that is attuned to community expectations. 

The framework aligns with global industry 

initiatives, such as the International Council 

on Mining and Metals (ICMM) Sustainable 

Development Framework Principles and builds 

on the Australian Minerals Industry Code for 

Environmental Management. 

Xstrata Copper is a member of the: 

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Queensland Resources Council (QRC) 

Minerals Council of Australia (MCA) 

Australasian Institute of Mining and 

Metallurgy (AusIMM) 

Mining Industry Skills Centre (MISC) 

Skills DMC – National Industry Skills 

Centre (NISC) 

Australian Institute of Occupational 

Hygienists 

Queensland Minerals and Energy 

Academy (QMEA) 

Mount Isa Chamber of Commerce (MICC) 

Townsville Chamber of Commerce 

Townsville Enterprise Limited (TEL) 

Townsville Port Users Group (TPUG) 

Mount Isa Tourism Association (MITA) 

Living with Lead Alliance. 

Xstrata Copper also supports the: 

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Australian Government Energy Efficiency 

Opportunities program (EEO) 

Annual Queensland Mining Industry 

Safety and Health Conference 

Annual MISC Queensland Training 

Conference and Awards 

MISC regional training group 

QMEA steering committee for Indigenous 

employment 

North West Queensland Indigenous 

Resources Industry Initiative – a 

collaborative partnership between the 

QRC, Queensland Government, Minerals 

Council of Australia and the Australian 

Government 

Southern Gulf Catchments Group in 


Mount Isa to Townsville Economic Zone 

(MITEZ). 


A haul truck at Ernest Henry Mining 


Our operations and economic performance 

The Xstrata Copper North Queensland Division continues to generate employment 

opportunities, support local businesses, fund community projects and pay government 

taxes and charges. We are proud that in doing so, we bring substantial benefits to the 

north Queensland communities in which we operate. 

Our operations 


Division consists of: 

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Mount Isa Mines copper operations, 

and metallurgical operations including 

the Mount Isa copper concentrator 

and copper smelter, and administration 

and services 

Ernest Henry Mining open cut copper 

and gold mine near Cloncurry 

Xstrata Copper’s Townsville 


Townsville port operations. 

Mount Isa Mines copper operations 

The Mount Isa Mines copper operations 

consist of the Enterprise and X41 

underground copper mines, a copper 

concentrator, copper smelter and supporting 

services. We use state-of-the-art mining 

and processing technology to produce 

approximately six million tonnes of copper ore 

annually from our world-class underground 

ore bodies. 

In 2010 the copper operations produced 

6.1 million tonnes of ore, 158,143 tonnes of 

copper in concentrate, and 214,041 tonnes 

of copper in anode. The copper 

concentrator and copper smelter have a 

7.2 million and 300,000 tonnes per annum 

capacity respectively. 

Copper concentrate produced at Mount Isa 

Mines is blended with concentrate received 

from Xstrata Copper’s Ernest Henry Mining 

operations before being smelted to copper 

anodes. The copper anodes are transported 

by rail to the Townsville copper refinery to 

be further refined into copper cathodes 

containing 99.995% pure copper. 


The Ernest Henry Mining (EHM) copper-gold 

mine is located 38 kilometres north-east 

of Cloncurry. 

In 2010 over 32 million tonnes of material 

was mined from the open pit, producing 

15.29 million tonnes of copper ore. Ernest 

Henry Mining produced 74,595 tonnes of 

copper in concentrate and 91,259 ounces 

of gold in concentrate in 2010. 

Copper concentrate containing gold is 

trucked to Mount Isa for smelting to anode 

and the anode is then railed to Townsville 

for refining to cathode at Xstrata Copper’s 

Townsville copper refinery. 

Metal production increased by 75% at EHM 

in 2010 due to higher ore grades coming 

from the pit. Processing of remnant lowergrade 

surface stockpiles ceased in June 2010 

following increased availability of ex-pit ore 

with the remaining stockpiles to be processed 

in 2011. Gold in concentrate increased by 

92% in 2010 compared to 2009 due to 

improved feed grades. 

EHM’s open pit mining operation is scheduled 

for completion in August 2011. However, the 

EHM operation will continue beyond this time 

following Xstrata Copper’s announcement 

in December 2009 to invest $589 million to 

extend the life of the EHM operation to at 

least 2024 by transforming it from an open 

pit mining operation to a major underground 

mining operation with an associated 

magnetite extraction plant. 

The project will create 330 jobs during the 

construction phase and another 400 jobs 

from 2013 until 2024. Ore will be trucked 

out of the underground mine via the 

underground decline until the hoisting shaft 

is commissioned in the first quarter of 2013. 

The project will enable EHM to achieve 

annual production levels averaging 

50,000 tonnes of copper and 70,000 ounces 

of gold in concentrates from 2013, once the 

underground shaft has been commissioned, 

until 2024. Ore will be mined principally from 

a major hoisting shaft to be sunk to a depth 

of 1,000 metres, producing an expected 

six million tonnes per annum of ore at 

full capacity. 

Significant works were completed during 

2010 to progress both the shaft underground 

and magnetite plant projects. EHM 

produced its first magnetite concentrate 

on 31 December 2010 and commissioning 

continued in the first quarter of 2011. The 

first train load of magnetite concentrate is 

expected to leave Cloncurry for Townsville 

in the second quarter of 2011. 

The magnetite processing operation at 

EHM is expected to produce approximately 

1.2 million tonnes of magnetite per annum 

at full capacity for export to Asia, making 

EHM Queensland’s first exporter of iron 

ore concentrate. 

Headframe construction for the underground 

shaft is expected to commence in the first 

half of 2011 with the shaft sink beginning 

in the second half of 2011. The headframe 

is due to be completed in the second half 

of 2012 with the shaft commissioned in the 

first half of 2013. Full scale operations will 

commence after this time. Please refer to the 

Investing in the future section on page 25 

and the case study on page 27 for more 

information on these projects. 




Xstrata Copper’s Townsville copper refinery 

and port operations form a major part of the 

Xstrata Copper North Queensland Division. 

Copper Refineries Pty Ltd refines anode 

produced at Xstrata’s Mount Isa copper 

smelter and also anode produced overseas 

(99.7% pure copper) to copper cathode for 

domestic and international sales as ISA brand 

99.995% pure copper. In 2010 the refinery 

produced 287,001 tonnes of saleable copper 

cathode. Copper cathode is sold to customers 

in Australia and throughout the world 

including Asia. 

Xstrata Technology (XT) has a business unit 

located at the Townsville copper refinery. 

More than 1.7 million stainless steel cathode 

plates have been manufactured and 

exported to the world since the technology 

was developed at the Townsville refinery 

in the mid 1970s. The business recorded 

approximately $89 million in technology 

and equipment sales in 2010. The stainless 

cathode plates are sold to refineries 

throughout the world using patented 

XT technology. 

The Townsville port operations handle mineral 

concentrates in and out of port, and fertiliser 

out of the port. In 2010 our port operations 

shipped a total of 1.58 million tonnes of 

product, comprising 887,836 tonnes of 

concentrate and 692,267 tonnes of fertiliser. 

Xstrata concentrates are sold to export 

markets throughout the world including 

Spain, India, Thailand, China, Japan and 

Korea. The port operations also handle 

significant volumes of third party concentrates 

and fertiliser for a number of Australian and 

international clients. 

Net sales 

Information on the Xstrata Copper North 

Queensland Division’s net sales can be found 

in Xstrata plc’s Annual Report 2010. Please 

refer to www.xstrata.com/publications/ 

financial. 

“Ore is mined at the 

Mount Isa Mines and 

EHM operations ... 

copper anodes are 

transported to our 

Townsville copper 

refinery where they 

are refined into 

copper cathodes. “ 

Markets and customers 


Division serves 16 countries in five markets 

including Asia, Europe, North America and 

the United Kingdom. 


Division’s ore is mined at the Mount Isa 

Mines and EHM operations. Copper ore 

mined at EHM is concentrated and road 

freighted to Mount Isa for smelting. From 

Mount Isa the copper anodes are transported 

by road and rail to our Townsville copper 

refinery where they are refined into copper 

cathodes. Approximately 20% of our 

copper cathode production is placed into 

the Australian domestic market and copper 

reverts are sold to Canada. The remaining 

material is exported to markets in Asia 

including China, Indonesia, Japan, Korea, 

Malaysia, Singapore, Taiwan, and Thailand. 

Direct economic 

contribution 

During 2010 the Xstrata Copper North 

Queensland Division contributed $1.34 billion 

to the Queensland economy through: 

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employment of 3,931 people; including 

2,887 employees and 1,044 contractors 

an annual wages bill in excess of 

$334 million 

apprenticeship and youth training 

opportunities of over $13 million 

over $785 million spent purchasing goods 

and services within Queensland 

approximately $1.81 million paid to local 

councils for annual rates 

annual Corporate Social Involvement 

contributions of over $1.7 million directed 

to community partnerships, donations, 

sponsorships and other community 

programs 

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$149.9 million spent on rail, power and 

water charges 

over $58 million paid to governments in 

taxes and charges. 


contributed to the Queensland 

economy through: 

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employment of 2,762 people; including 

2,260 employees and 502 contractors 


$264 million 


opportunities of over $13 million 

over $608 million spent purchasing goods 

and services within Queensland, 30.09% 

spent with local Mount Isa suppliers 

over $1 million paid to the local council 

for annual rates 


contributions of $606,548 directed to 

community partnerships, donations, 

sponsorships and community programs 

over $100 million in rail, power and 

water charges 

over $37 million paid to governments 

in taxes, charges and royalties. 

Ernest Henry Mining contributed to the 

Queensland economy through: 

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employment of 911 people; including 

451 employees and 460 contractors 


$51 million 


opportunities in excess of $167,525 

$132 million spent on purchasing goods 

and services within Queensland, 30.09% 

spent with local suppliers 

$496,391 paid to the local council for 

annual rates 

$3.3 million paid to the local council to 

support local infrastructure, including 

roads 



community partnerships, sponsorships, 

donations and other community programs 

$36.5 million in rail, power and water 

charges. 

over $20 million paid to governments 

in taxes, charges and royalties. 



The Ernest Henry Mining open pit 

copper-gold mine 

Local suppliers 


Division supports local businesses by 

consciously sourcing goods and services from 

local suppliers wherever possible. 

Our policy is to source local suppliers who 

provide value for money and quality. We also 

assess businesses based on their involvement 

in community support programs or local 

social initiatives. 

All suppliers and contractors are provided 

with a copy of Xstrata’s Business Principles 

and Sustainable Development (SD) Standards 

so they are aware of our core values and 

performance expectations. 

Economic Contribution 2010 – Xstrata Copper North Queensland 

Type of expenditure 

Wages bill 

The Townsville operations contributed to the 

Queensland economy through: 

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Apprenticeship and youth training opportunities 

Purchasing goods and services within Queensland 

Rates to local councils 

CSI contributions 

Utility charges (rail, power and water) 

Government taxes, charges and royalties 

Total 

employment of 258 people, including 

176 employees and 82 contractors 


$18 million 


opportunities of $16,118 

$45 million spent purchasing goods and 

services within Queensland, 65.5% spent 

with local suppliers 

$316,000 paid to the local council for 

annual rates 



community partnerships, sponsorships, 

donations and other community programs 

$13.4 million in rail, power and 

water charges 

$846,799 paid to governments in 

taxes and charges. 

Expenditure 

$334.7 million 

$13 million 

$785 million 

$1.84 million 

$1.7 million 

$149.9 million 

$58 million 

$1.3 billion 

Infrastructure for public 

benefit 

In 2010 the Mount Isa Mines copper 

operations entered into a partnership with 

Queensland Health to contribute $2 million 

towards the construction of a new Dental 

Health Building and training centre. This 

initiative forms part of the Queensland 

Government’s $65 million redevelopment 

of the Mount Isa Hospital. Construction of 

the Dental Health Building commenced in 

mid-2010 and is due for completion 

in mid-2011. 

In 2010 EHM continued its partnership with 

the Cloncurry Shire Council, contributing 

$750,000 over two years (2009 and 

2010) towards the Cloncurry Community 

Precinct project. The project involves the 

redevelopment of the current Shire Hall and 

library complex to create a central community 

hub for Cloncurry. Construction works for the 

project are expected to commence in 2011. 

This project is addressing community needs 

identified in the 2007 and 2009 Community 

Attitudes Surveys. 

We recognise the value that can be delivered 

to the local economy through our activities 

and wherever possible, encourage the 

development and use of local suppliers and 

contractors. We define a local supplier as a 

supplier from the nearest regional centre with 

proximity to our mining operations. 

Our suppliers include businesses local to 

our operations as well as large national 

and international suppliers. We seek to use 

local suppliers and support these suppliers 

in enhancing community development 

opportunities. Through our SD management 

standards we require our suppliers to 

identify potential SD risks associated with 

their operations and minimise any adverse 

consequences of these risks. 


Queensland Division’s combined expenditure 

on goods and services was around 

$785 million, which can be grouped into 

four major categories: utilities, freight and 

logistics; mining consumables; process 

consumables and on-site support services. 

At the Mount Isa Mines copper operations 

and EHM more than 30.09% of total goods 

and services expenditure was with local 

suppliers. Expenditure on Mount Isa suppliers 

totalled $182.9 million while we spent 

$39.7 million on suppliers in Cloncurry. 

In 2010 the portion of total goods and 

services expenditure with local suppliers at 

the Townsville operations was 65.5%, with 

an expenditure of $29.5 million. 



Case study 

Xstrata Mount Isa Mines wins 

two Export Awards 

It was a year of accolades for Xstrata Mount Isa Mines, winning 

awards at both the 2010 Premier of Queensland’s Export Awards 

and the 2010 Australian Export Awards in the Minerals and 

Energy category. 

“The award is a testament to the effort 

and accomplishments being made every 

day by everyone involved in our operations, 

with a world class team we run a world class 

operation and such a feat would not be 

possible without all of our people,” 

said Steve. 

For Xstrata Mount Isa Mines, receiving the 

Premier’s Export Award was a welcome 

recognition of its export achievements, and 

it was the second time in four years that 

Xstrata Mount Isa Mines had entered and 

won the award in this category. 

It also meant that Xstrata Mount Isa Mines 

automatically progressed as a national finalist 

in the 2010 Australian Export Awards, where 

they were awarded the 2010 Australian 

Export Award in the same category for the 

22 percent increase in exports in the 2010 

financial year to $2.3 billion. Between 2008 

and 2010, zinc and copper exports by volume 

increased by 105% and 20% respectively. 

Steve de Kruijff – Chief Operating Officer 

Xstrata Copper North Queensland, 

said recognition of Xstrata Mount Isa 

Mines’ export achievements is a clear 

acknowledgement of our achievements 

across all areas of operations and for our 

employees and stakeholders. 

With a workforce of over 4,000 employees 

and contractors, Xstrata Mount Isa Mines is a 

significant contributor to the local economy. 

Xstrata Mount Isa Mines is also extremely 

proud of its sustainable development 

practices. The company’s commitment to, 

and achievements in employee and contractor 

safety, the environment, and to the regional 

communities supporting the company’s 

operations are a clear indication for 

ongoing success. 

Pictured above: Merv Sharkey – Commercial Manager, Mark Roberts – General Manager Refinery, Port and Logistics and Ross Thompson – Principal Advisor, 

Energy and Infrastructure Xstrata Copper, receive the Minerals and Energy Award at the 2010 Premier of Queensland’s Export Awards 



Financial assistance 

received from government 


received funding from all levels of 

government to support a range of 

employment, training and education 

programs (please refer to page 44 for details). 

The Townsville operations benefited indirectly 

from this training funding provided to 

Mount Isa. 


Queensland Division received a government 

diesel fuel rebate totalling approximately 

$20 million (Mount Isa Mines copper 

operations $4.7 million, Ernest Henry Mining 

$15.4 million and Townsville operations 

$33,000). 

Investing in the future 


Division’s capital projects in 2010 totalled 

$397.7 million, with $210.6 million spent on 

sustaining projects and $187 million spent on 

expansionary projects. 

Xstrata Copper continues to strengthen its 

investment in the future of north Queensland 

through a number of planned projects for 

2011, which are outlined below. 


Capital projects in 2010 totalled 


sustaining projects and $24.2 million spent 

on expansionary projects. 

By-product opportunities – copperbalt 

A pre-feasibility study was completed in 

2010 evaluating potential for by-product 

production of cobalt by reprocessing 

waste streams from the existing copper 

concentrator. The study indicated that cobalt 

production may be viable and a staged 

feasibility study commenced late in 2010. 

Piloting of the main process was successfully 

completed at the end of 2010 as part of 

the feasibility study and upon confirmation 

of the business case a feasibility study will 

commence early 2011. In addition to the 

cobalt, the proposed plant would extract 

residual copper from the waste streams. 

Copper Starter Pit pre-feasibility study 

The Copper Starter Pit pre-feasibility study 

was completed in 2010. The study concluded 

that open cut mining to extract copper 

was not feasible as a stand alone project 

at this time. 

Mount Isa Open Pit concept study 

A conceptual study to evaluate the mining of 

a larger copper, zinc-lead open pit in Mount 

Isa commenced in 2010. This study aims to 

develop a case for a large open pit operation 

in Mount Isa. If the outcomes outline a 

successful case for future development, a 

pre-feasibility study will commence in 2011. 

1100 Orebody Halo Caving study 

A scoping study for block caving of the 

1100 Orebody Halo was completed in 2010. 

The study identified potential risks in the 

sustainability of the mining method over the 

life of the project. The 1100 Orebody Halo 

is currently under consideration within the 

Mount Isa Open Pit concept study. 

Smelter Emissions Project 

The Xstrata Copper Smelter Fugitive Emissions 

Program continued in 2010 to characterise 

smelter emissions, identify opportunities to 

further improve the capture and treatment 

of emissions, and design and implement 

operational and engineering controls to 

realise those opportunities. Performance in 

2010 focused on engineering studies and 

working through continuous improvement 

plan actions which will continue in 2011. 

In 2010 Xstrata Mount Isa Mines invested 

$8.7 million on design and construction of 

a number of engineering controls to reduce 

emissions from the lead and copper smelters. 

Since mid-2007 Xstrata has invested in excess 

of $30 million on this project to increase the 

capture and treatment of emissions from our 

lead and copper smelters. 

Major suppliers 


Mines 

copper 

operations 

Ernest 

Henry 

Mining 

Townsville 

operations 

Utilities, logistics and freight Mining consumables Process consumables On-site support services 

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Santos 

CS Energy 

APA Group 

ARG/Queensland Rail 

Toll North 

Mount Isa Water 

CS Energy 


North West Queensland 

Water 

Tarong Energy 

Ergon Energy 

Origin Energy 


ARG/Queensland Rail 

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Shell 

Caterpillar 

Sandvik Tamrock 

Atlas Copco 

Komatsu 

Michelin 

Bridgestone 

Dyno Nobel Asia Pacific 

Growth Asia 

Shell 

Hasting Deering 

Orica 

Sandvik Tamrock 

Michelin 

Liebherr 

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N/A ■■ 

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Donhad 

SNF Flowmin 

Sibelco (Unimin) 

Coogee Chemicals 

ANI Bradken 

Orica Mining Chemicals 

Donhad 

SNF Flowmin 

Unimin 

Growth Asia 

ANI Bradken 

Coogee Chemicals 

Redox Chemicals 

ITW Packaging 

Icon Plastics 

J Blackwood & Sons 

Shell 

Silcom 

CNW Electrical 

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Downer Engineering – Engineering 

Services 

Gemini Medical Services 

Secure Corp – Security Services 

Cleanaway – Waste Management 

Huddy’s Mining Services 

PYBAR 

Skilled Group Limited 

Mine Site Technologies Pty Ltd 

Mine Consultants Australia (MCA) 

Barminco 

Downer Engineering – Engineering 

Services 

Sodexho 

Ausenco 

Pac-Rim 

Rutherfurd Group 

Huddy’s Mining 

Skilled Group Limited 

S&N Constructions 

Walz Constructions 

AECOM Australia 

ICS Electrical 

Cleanaway 

Skilled 

Environmental Asset Services 

ADM Engineering 

Ardent Security 

Eco Lab 




Capital projects in 2010 totalled 


sustaining projects and $155.6 million spent 

on expansionary projects. 

Underground mine and magnetite plant 

Significant works were completed during 

2010 to progress EHM’s life of mine extension 

project which involves the construction of a 

major underground mine together with an 

associated magnetite extraction plant. 

Please refer to the case study on the next 

page for more information on this project. 


Capital projects in 2010 totalled $14.8 million; 

with $4.4 million spent on sustaining projects 

at Xstrata Copper’s Townsville copper 

refinery. At the Townsville port operations, 

$3.1 million was spent on sustaining projects 

and $7.2 million on an expansionary project. 

Our Townsville port operations continued 

with dust mitigation throughout 2010 with 

the Train Wagon Tippler dust suppression 

project’s detail design completed, and 

the investigation into Berth 7 outloading 

equipment. The Train Wagon Tippler design 

included sizing of an appropriate extraction 

system and the upgrade of electrical supply 

systems. Approximately $1 million was 

invested in the Train Wagon Tippler and 

Berth 7 outloading system dust suppression 

projects this year. Future works will continue 

in the Train Wagon Tippler in 2012, including 

detailed designs for an extraction system for 

the concentrate storage sheds. 

Significant achievements in 2010 at our 

Townsville operations include: 

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The Townsville copper refinery continued 

with the upgrade of the stormwater 

drainage and stormwater first flush 

system. Contracts have been signed for 

the first stage of these works including 

the construction of the sediment basin 

and northern drainage line. The onset 

of an early wet season and government 

approval delays has pushed back 

commencement to the end of the current 

wet season, around April 2011. 

The Townsville port operations completed 

its Stormwater Quality Improvement 

Options Study. This study investigated 

upgrade options to improve the 

discharged stormwater quality for the 

Townsville port operations’ site. 



Case study 

Life of mine extension project 

On 3 December 2009, Xstrata Copper announced corporate approval of a $589 million 

development to extend the life of Ernest Henry Mining (EHM) through the transformation 

of open pit mining operations to a major shaft underground mine with an associated 


The project will enable EHM to achieve 

annual production levels averaging 50,000 

tonnes of copper and 70,000 ounces of 

gold in concentrates from 2013 once the 

underground shaft has been commissioned 

until 2024. Ore will be mined principally 

from a major hoisting shaft to be sunk 

to a depth of 1,000 metres, producing 

six million tonnes per annum of ore at full 

capacity. EHM will produce approximately 

1.2 million tonnes of magnetite concentrate 

per annum at full capacity for export to 

Asia, making it Queensland’s first iron ore 

concentrate exporter. 

Copper-gold concentrates from EHM will 

continue to be hauled by purpose-built trucks 

to Xstrata’s Mount Isa copper smelter, with 

the anode then railed to Xstrata Copper’s 

refinery in Townsville, while the magnetite 

concentrate will be transported by purposebuilt 

trucks to a storage and rail load-out 

facility near Cloncurry and then railed to 

Xstrata’s Port facility at Townsville. 

Project works for the shaft underground 

mine commenced in January 2010 however 

activities were suspended on 3 June 2010 

due to the uncertainty created by the Federal 

Government’s proposed Resource Super 

Profits Tax (RSPT). Despite the suspension, 

development works continued for a smaller 

decline underground mine that had also been 

considered as part of the project feasibility 

study. Shaft underground mine activities 

resumed on 2 July 2010 in light of the Federal 

Government’s decision to replace the RSPT 

with a Mineral Resource Rent Tax (MRRT). 

Underground development works progressed 

during 2010 with a focus on key headings 

for access to the base of the shaft and 

for ventilation and de-watering systems. 

More than 11,000 metres of underground 

development was completed during the 

year. Works commenced for an escape way 

system providing a ladderway to the surface 

from underground, and a refrigeration plant 

was installed on the surface for improved air 

quality. Works for a high voltage reticulation 

system also commenced during the year 

to provide a new overhead line for the 

underground power supply. 

Headframe construction is expected to 

commence in the first half of 2011 with the 

shaft sink beginning in the second half of 

2011. The headframe is due to be completed 

in the second half of 2012 with the shaft 

commissioned in the first half of 2013, 

enabling full scale operations from that time. 

Steve de Kruijff – Xstrata Copper North 

Queensland Chief Operating Officer, said 

EHM’s life of mine extension project will play 

an important part in sustaining Xstrata’s 

north Queensland copper operations that 

make a significant contribution to the local 

and state economies. 

“The project will 

generate an additional 

330 jobs during 

construction and 

400 full-time jobs 

from 2013.” 

“The project will ensure a sustainable future 

for our Ernest Henry operations and the 

continued supply of copper concentrate to 

our smelter in Mount Isa that in turn supports 

our refining operations in Townsville,” 

said Steve. 

“It will generate an additional 330 jobs 

during construction and 400 full-time jobs 

from 2013. 

“In 2010 Xstrata Copper North Queensland 

contributed around $1.3 billion to the 

Queensland economy. 

“This project will help to further strengthen 

Queensland’s economy, not only through 

ongoing employment, but also since Ernest 

Henry Mining will become Queensland’s first 

iron ore concentrate exporter,” he said. 

Construction of the magnetite plant 

commenced in July 2010 and EHM produced 

its first magnetite concentrate on 31 

December 2010 as part of the commissioning 

phase. Commissioning continued in the first 

quarter of 2011 with exports scheduled 

to commence from Townsville port in the 

second quarter of 2011. 

Myles Johnston – EHM General Manager, 

said the magnetite plant is a major part of 

EHM’s life of mine extension project which 

will extend the life of the EHM operations to 

at least 2024. 

“I am pleased to report that the magnetite 

base plant has been delivered safely, on time 

and within budget, which is a credit to all 

those involved,” said Myles. 

“The shaft underground mine is on 

budget also and we are looking forward to 

successfully transitioning from open pit to 

underground mining during 2011,” he said. 

Clockwise from top: The magnetite extraction plant adjoins the copper-gold concentrator 

John Twomey – Magnetite Project Manager, with the first magnetite concentrate produced at EHM 

A bulk air cooler was installed to improve air temperature and working conditions in the underground mine 

A contractor installs concrete lining for ground support in the underground shaft 

Ernest Henry Mining’s underground shaft collar and headframe foundations 


Dominic Clarke – Graduate Electrical Engineer, Xstrata Mount Isa Mines 


Workplace health and safety 

We aim to operate a safe workplace that is injury- and fatality-free, and to enhance 

the wellbeing of employees, contractors and communities. 

Health and safety 

We pursue this goal by promoting and 

sustaining a culture of safety that seeks to 

promote a positive attitude and awareness 

of the issues involved. We provide visible 

leadership and make our management 

accountable for safety performance and for 

training employees to improve their safety 

knowledge, skills, and to make them aware 

that they have a responsibility to themselves, 

their family and friends to work and 

behave safely. 

We detect and eliminate or mitigate 

conditions that pose a potential risk to 

safety and health in our workplaces and 

neighbouring communities. We ensure that 

every task undertaken in our operations 

has a safe system of work defined and that 

our people have tools and equipment that 

are fit for the purpose and well maintained 

to complete tasks safely and productively. 

In addition, through screening programs, 

we monitor our employees’ health, wellbeing 

and fitness for work. 

Injury performance – 


Xstrata Copper uses a risk-management 

system to identify, assess and eliminate 

or control safety risks. When an unsafe 

condition is detected or a safety incident 

occurs, it is investigated immediately and the 

necessary action is taken to eliminate the 

risks involved. Safety auditing takes place 

regularly across our business to improve 

safety standards, practices and performance. 

Safety initiatives and issues are regularly 

communicated to all of our people. 

Our challenges 

Enhancing our risk management strategies 

in all aspects of our business was a strategic 

initiative in 2010 with three primary 

focus areas: 

■■ 

■■ 

■■ 

Reduction of high consequence 

low probability incidents 

Reduction of low consequence 

high probability incidents 

Health and hygiene. 

Disabling injury severity rate † – 


To assist in managing these we achieved 

99% completion of recording Significant 

Risks, Catastrophic Hazards and High Hazard 

Activities in our Risk Registers and 83% 

completion of Bow-Tie assessments against 

these. This process ensures risks are clearly 

identified with critical control and task 

owners. This data then forms the basis of 

monthly and quarterly reporting and our risk 

management plans which are reviewed as 

part of the annual planning process. 

We implemented a series of High Hazard 

Activity audit and observation checklists 

to monitor workforce behaviour for at-risk 

acts and integrated these with enhanced 

inspection programs. 

Occupational Hygiene Committees were 

established at each of our north Queensland 

sites. Committee membership included 

representatives from management, 

technical experts and the workforce 

to ensure a consultative and scientific 

approach to the identification, evaluation 

and control of hygiene hazards in the 

workplace. Hygiene hazard characterisation 

studies also commenced in 2010 (refer 

Occupational Health section on page 32 

for more information). 

Number per million hours worked 

30 

25 

20 

15 

10 

5 

19.0 

16.0 

10.0 

1.5 

0.9 

0.7 

8.3 

0.9 

7.4 

0.7 

Number per million hours worked 

300 

250 

200 

150 

100 

50 

107.5 

112.6 

123.8 

138.8 

131.8 

Safety performance 


Division values the health and safety of our 

people. Safety performance is tracked using 

the following measures: 

■■ 

■■ 

■■ 

Total Recordable Injury Frequency Rate 

(TRIFR), which includes all injuries except 

first aid treatments 

Lost Time Injury Frequency Rate (LTIFR) 

Disabling Injury Severity Rate (DISR), 

which records the number of days lost 

or on restricted duties per million hours 

worked. 

0 

2006 2007 2008 2009 2010 

0 

2006 2007 2008 2009 2010 

TRIFR 

LTIFR 

† Previously we reported DIFR for 2006. We have now restated to show the DISR results. The Disabling Injury 

Frequency Rate (DIFR) measures the number of disabling injuries x 1,000,000 divided by the number of hours 

worked, the Disabling Injury Severity Rate (DISR) measures the number of disabling injury days x 1,000,000 

divided by the number of hours worked. 




Division achieved improvements in safety 

performance in 2010. Our operations 

were not successful in achieving our safety 

improvement targets however we achieved 

an 11% improvement in the TRIFR, a 

22% improvement in our LTIFR, a 5% 

improvement in our DISR and recorded 

> 4.5 million hours Lost Time Injury (LTI) free 

in the first half of 2010. Overall, since 2003, 

significant improvements have been made in 

safety performance. 

Occupational health 

Xstrata Copper values the health and 

wellbeing of our people and we encourage 

our employees and their families to maintain 

a healthy lifestyle. The safety performance, 

emergency preparation plans, contractor 

management, and occupational health 

of each of our north Queensland sites is 

outlined in the following pages. 

Monitoring programs 

Xstrata Copper invested more than 

$700,000 on occupational hygiene sampling 

and analysis at its north Queensland 

operations in 2010. 

case study 

Improved safety with 

new vent fan platform 

Fan maintenance is a common practice throughout the mining 

industry. At Mount Isa Mines copper operations, scheduled 

maintenance is required on surface ventilation fans to ensure 

they are operating at full utilisation. 

Occupational illnesses by type – Xstrata 

Copper North Queensland 

Nature of illness 2009 2010 

Musculo-skeletal injury 1 2 

Noise-induced hearing loss 9 14 

Total recordable injuries* – Xstrata Copper 

North Queensland 

Nature of injury 2009 2010 

Amputation 0 1 

Contusions/crush 6 6 

Fractures 5 9 

Intracranial injury 0 1 

Lacerations/abrasions 24 24 

Sprains/strains 25 21 

Injured body part 

Ankle/toes/feet 5 6 

Arms/shoulders/elbows 10 9 

Face/head 8 2 

Hands/fingers/wrist 19 26 

Hips/knees/legs 8 2 

Spine/back/neck 9 9 

Trunk/groin/abdomen 1 5 

* This table represents all injuries excluding first 

aid injuries 

To undertake fan maintenance at the 

Mount Isa site, the fan was rolled out from 

under the fan shroud to allow maintenance 

personnel to access the hub and rotor. As 

there was no dedicated means of access 

to the fan hub, personnel were exposed to 

hazards associated with working at heights 

and near openings and edges, and relied 

on Personal Protective Equipment to protect 

them from falls. 

In early 2009, investigations commenced 

to identify how the fan maintenance 

process could be improved to eliminate 

the risk of workplace incidents. Following 

the completion of these investigations, a 

removable platform complete with edge 

protection was created. The innovative 

vent fan access platform requires minimal 

assembly on the ground and can be installed 

with a single lift from a crane to cover the 

opening to allow safe access to the hub. 

The access platform can also be transported 

between fan sites due to its ability to be 

broken down into small sections. 

The new access platform was first used 

during 2010 shutdowns at the Mount Isa 

Mines copper operations and provided an 

effective access point for maintenance of 

the fans. The platform totally eliminates the 

potential for personnel to fall from height, 

and removes the requirement for personnel 

to wear a harness to prevent a fall during fan 

maintenance. 

In addition, the access platform allows more 

personnel to access the fan hub. Prior to 

this improvement, only one person could 

undertake maintenance on the fans and the 

implementation of this innovative vent fan 

access platform allows three to four people 

to work on the rotor centre at any one time, 

significantly reducing the time it takes to 

complete maintenance. 

David Schraag – Superintendent MICO 

Infrastructure Maintenance, said the 

improvement had improved workplace safety 

at the Mount Isa Mines copper operations. 

“The new access platform means personnel 

can do this work without the risk of a fall, 

and with more people able to access the fan 

hub at one time, it has also reduced the time 

it takes to do the work,” David said. 

The innovation involved an investment of 

$55,000 by the Mount Isa Mines copper 

operations, and won the 2009 Xstrata 

Copper North Queensland Innovation Award. 

Pictured above: Vent fans expel spent air from 

the underground mining operations at Mount 






Environment Department employees conducting a daily PASS meeting 


In 2010 we continued to develop our North 

Queensland Sustainable Development (SD) 

Management System. Significant progress 

has been made in the areas of risk and 

change, emergency, and health and hygiene 

management. Ongoing audits and reviews of 

our procedures ensure they are aligned with 

internal and external expectations. 

During the year we enhanced our training 

programs and implemented multiple contracts 

with external registered training organisations 

for core training requirements. We also 

improved our data capture and reporting 

on skills and competency requirements. 

As part of our improved emergency 

management system we upgraded our 

site access system and implemented new 

software that will enhance the way we 

control access to site, linking access to key 

health and training compliance requirements 

as a key focus in 2011. 



continued to show improvement in safety 

performance in 2010. Our operations 

were not successful in achieving our 

safety improvement targets, however we 

achieved a 16% improvement in the TRIFR, 

a 13% improvement in the LTIFR, and a 

4% improvement in the DISR. Significant 

improvements against all these measures 

have been achieved since 2003. 


also analysed the causal factors of lost time, 

restricted work and medical treatment injuries 

in 2010. Contusions and lacerations to hands 

and fingers and musculoskeletal injuries 

represented the majority of these injuries. 

Initiatives implemented in 2010 continued 

to build on strategies from previous years, 

including our ergonomics taskforce, preemployment 

occupational therapy screens 

for high risk roles, increased workplace 

observations and improved incident 

investigation quality with more focus on the 

identification of contributing factors and 

corresponding actions to prevent recurrence. 

During the year our Occupational Therapist 

continued to be involved in serious 

musculoskeletal incident investigations and 

we established targets for attendance and 

completion of the multidisciplinary incident 

investigation training, a diploma level training 

course for our safety professionals and key 

line personnel. 

As part of our behavioural-based safety 

programs, we piloted a Visible Felt 

Safety Leadership program at our copper 

concentrator in 2010. This is a peoplebased 

safety approach aimed at changing 

fundamentally the operation’s approach 

to safety. It involves actively looking out 

for people and focuses on changing safety 

behaviour as well as coaching people for a 

better safety result. The aim of this approach 

is to create a safety culture built on selfeffectiveness, 

personal control and optimism 

from each individual. These qualities will 

increase the willingness of employees to care 

for their own safety and also the health and 

safety of their teams. This program will be 

rolled out to other areas of the Mount Isa 

Mines copper operations in 2011. 



Left: Matthew Salmons – WorkPac employee, 

undergoes a periodic blood lead test at 

Gemini Medical Centre 

Above: Occupational Therapist – Brad 

Pritchard, performs an orthopaedic hip 

assessment during the Xstrata Copper preemployment 

screening process 

Contractor management 

With contractors representing 32% of our 

workforce, we continued to work with 

contracting firms to assist them in developing 

their own safety management standards. 

Xstrata’s Contractor Portal was enhanced 

in 2010 with Xstrata-engaged contracting 

firms being given access to Xstrata’s 

Business Principles, all site-level sustainable 

development (SD) documents, commercial 

terms and released site communications. 

This helps improve their understanding of 

our requirements and also enables them 

to use the information to build their own 

systems and safety management standards 

in line with Xstrata’s SD requirements. 

Crisis and emergency 

preparation 

To ensure we are prepared to respond to a 

range of operational challenges, we enhanced 

our training on the North Queensland 

Response and Recovery Manuals which 

included scenario-based exercises at Xstrata 

Copper’s north Queensland sites in 2010. 


participated in the North West Minerals 

Province Mines Rescue Challenge at Outback 

at Isa and in total, six teams from mining 

companies across north west Queensland 

took part in the challenge. 

Challenging and realistic scenarios were 

created for participants and they were 

presented with various emergency scenarios. 

Each team was judged on its proficiency 

at dealing with the situation. Events are 

designed to provide scenarios that could 

happen on or around a mine site and 

include drills involving road accident rescue, 

multi-casualty, search and rescue, and 

vertical rescue, and in 2010 the Queensland 

Government Emergency Services assisted with 

the organisation of this challenge. Xstrata 

Mount Isa Mines’ B Crew won the overall 

prize for the competition. 


In 2010 the Health Risk Management and 

Occupational Hygiene teams formed an 

alliance to identify and manage common 

issues. Initially developed to address 

occupational dermatitis, the Health Hygiene 

linkage has expanded to include occupational 

hygiene hazards in the Job Role Criteria 

and health surveillance programs. The links 

between health and hygiene have been 

broadened to include third party review to 

validate and strengthen our ongoing health 

surveillance program to mitigate potential 

harm through occupational exposures to 

our workers. 

This has allowed a sharing of information 

between the health and hygiene work groups 

and utilisation of knowledge and skills within 

health and injury management, resulting in 

a strengthened process to identify potential 

hazards and associated health and hygiene 

risks with our workers. It has also given us 

the opportunity to proactively manage and 

address issues as they are identified. 

During the year, our health promotion 

campaigns continued across our north 

Queensland operations. Campaigns focused 

on serious diseases dengue fever and H1N1 

and health and support information on 

obesity, smoking, alcohol and drugs, fatigue, 

nutrition, men’s and women’s health, mental 

health, hearing conservation and shift work. 

The health promotions website was improved 

and received on average around 560 hits 

a month. 

In 2010 we commenced an Occupational 

Hygiene characterisation process. The aim 

was to systematically identify and risk rank all 

hygiene hazards based on their potential to 

cause harm. This information has been used 

to direct resources to control hazards that 

pose the highest risk. 




Prevention of harm due to hygiene hazard 

exposure is a key priority for the Mount 

Isa Mines copper operations. In 2010 we 

continued our extensive monitoring programs 

for dust contaminants, Diesel Particulate 

Matter (DPM), noise, lead, arsenic, radiation, 

vibration and potable water. 

The shift sampling log introduced by 

Occupational Hygiene during 2009 assisted 

with analyses of results from the 2010 

monitoring program. Log completion is 

undertaken by each worker participating in 

the dust and DPM sampling program and 

records tasks and task location, along with 

environmental conditions experienced during 

the sampled shift. The information has 

enabled us to determine exposure sources 

which can then be targeted for control. 

More than $400,000 was invested on 

occupational hygiene sampling and analysis 

at the Mount Isa Mines copper operations 

in 2010. 

Sampling and analysis 

Potable water 

Potable water is sampled from drinking water 

sources across the lease to ensure water 

provided to our workers is safe and adheres 

to Australian Drinking Water Guidelines. 

Water samples undergo a range of chemical, 

physical and biological tests which measure 

for metals, chlorine, bacteria, pH and 

turbidity amongst others. An annual sampling 

program ensures all designated drinking 

water sites are maintained within safe limits. 

Noise 

“The Mount Isa Mines 


continued to show 

improvement in safety 

performance in 2010.” 

copper and thallium. Respirable dust particles 

range in size from less that 0.1 to 10 microns 

which have the potential to travel to the 

deep reaches of the lungs. Crystalline silica is 

analysed from respirable dust samples. 

DPM exposure continued to be monitored 

in our underground operations at Xstrata 

Mount Isa Mines throughout 2010. DPM and 

dust contaminant exposure to workgroups 

is risk ranked to enable control strategies for 

exposure sources to be prioritised, with the 

goal of reducing worker exposure to as low 

as reasonably practicable. 

Arsenic 

At the Mount Isa Mines copper operations, 

arsenic is potentially most hazardous during 

the copper smelting process. 

A broad range of control strategies were 

implemented at the Mount Isa copper smelter 

during 2010. These included engineering 

and plant design changes, arsenic awareness 

training, along with the enforcement of a 

mandatory respirator zone and designated 

smoking area for primary smelting. 

Arsenic exposure continues to be monitored 

through arsenic in urine analysis and 

workers showing elevations are placed on 

a management program. This program has 

proved effective in reducing workers’ longterm 

exposure to arsenic. 

Lead 

An elevated blood lead level at our 

operations is taken seriously. This is evident 

in the strict protocols in place to reduce lead 

exposure to employees in the workplace. 

Biological and dust monitoring is conducted 

in accordance with the NOHSC standard and 

recognised occupational hygiene standards. 

In 2010, there were no instances of Xstrata 

Copper employees exceeding the national 

medical removal limit. However, in the fiveyear 

period from 1998-2002, there were 32 † 

reported instances of National Occupational 

Health and Safety Commission (NOHSC) 

elevations. In the current eight-year period 

from 2003–10 we have had 13 † reported 

instances of NOHSC elevations. 

We set our medical removal limit below 

this standard of 50 micrograms per decilitre 

(μg/dL). Employees with a blood lead 

concentration of 40 μg/dL or greater 

must be removed from the workplace until 

levels return to below 30 μg/dL. Pregnant 

employees should not have a blood lead 

concentration that exceeds the national 

standard of 10 μg/dL. 

All employees at our operations are required 

to have venous lead in blood tests at 

frequencies which are determined by the area 

they work in, previous result, gender and 

reproductive capacity. This form of biological 

sampling provides an accurate measure of a 

worker’s exposure to lead. 

A total of 5,542 blood lead samples were 

taken from our Xstrata Copper employees 

and contractors during 2010 providing an 

accurate evidence base in order to manage 

lead exposure. 

In 2010 a comprehensive noise study was 

conducted across Xstrata’s north Queensland 

operations. The aim was to identify and 

assess all noise sources in a department, 

then formulate a control strategy focusing 

on sources that pose the greatest health 

risk to workers. Noise control plans will be 

developed and rolled out in 2011. 

Dust contaminants and Diesel 

Particulate Matter (DPM) 

Workers participate in personal inhalable 

and respirable dust monitoring programs 

in all work areas of our operations to 

provide representative samples of exposure. 

Inhalable dust particle size ranges from less 

than 0.1 to 100 microns and are primarily 

deposited in the upper respiratory tract. 

Dust contaminants analysed from inhalable 

dust samples include lead, arsenic, cadmium, 

Occupational illnesses by type – Mount Isa Mines copper operations 



Musculoskeletal injury 1 2 

Occupational hygiene sampling and analysis – Mount Isa Mines copper operations 

Type of sample collected and analysed 2009 2010 

Airborne dust (inhalable, respirable, static and asbestos) † 314 388 

Arsenic in urine † 1,290 1,371 

Diesel Particulate Matter (DPM) † 39 63 

Lead in blood (employees and contractors) 3,898 5,542 

Noise † 106 221 

Potable water (microbiological and metals) † 547 714 

† These numbers reflect the combined copper and zinc businesses operating at Xstrata Mount Isa Mines. 



Job Role Criteria (JRC) 

Throughout 2010 the JRC tool has been 

refined and developed into an interactive 

web-based resource. The role library grew to 

over 240 roles across our north Queensland 

operations and the expansion of the current 

evidence base to include Thermal Work Limit, 

Manual Task Risk Matrix, and Whole Body 

Vibration data. Please refer to the case study 

on page 55 for an update on the JRC. 

Earth Moving Equipment 

Safety Round Table 

Since 2008 we have provided the Earth 

Moving Equipment Safety Round Table 

(EMESRT) Underground Hard Rock mining 

group with input into its vision, purpose, 

scope and annual action plans. 

The group saw developments in 2010 with 

the four initial design philosophies being 

broadened to 15. The mining industry utilises 

communication from EMESRT in relation to 

design philosophies and reference points 

for Original Equipment Manufacturers when 

designing and redesigning existing equipment 

used in mining operations. This has increased 

the understanding of and influenced design 

considerations in the areas of ergonomic 

equipment design, noise, working at 

heights, fire, dust, isolation, visibility/collision 

avoidance, machine stability, guarding, whole 

of body vibration, controls/displays, tyres, 

manual handling, and equipment access. 

EMESRT now includes representation from 

major mining companies and equipment 

providers. Through EMESRT, Xstrata Copper 

North Queensland continues to work in 

partnership with Caterpillar and Sandvik and 

other underground, earthmoving, drilling and 

surface exploration equipment providers. 

The EMESRT forum provides an opportunity 

for open dialogue aimed at improving our 

equipment’s usability and reducing the risks 

inherent with their design. 

case study 

Bulk density weighing unit 

At the Mount Isa Mines copper operations, bulk density weighing 

is conducted to measure the weight in air and in water of diamond 

drill core to determine its bulk density. 

The practice of bulk density weighing 

using a manual methodology is common 

throughout the mining industry. This 

method requires significant manual handling 

of core samples and the movement of large 

quantities of water, exposing personnel to a 

range of potential workplace hazards. 

In 2008, Mount Isa Mines copper 

operations developed a solution to several 

critical issues associated with the manual 

process of bulk density weighing. These 

issues involved a work environment that 

required significant manual handling of core 

samples, often at poor angles, and also 

required the movement of large quantities 

of water causing both manual handling and 

slip hazards. 

Secondly, the data recording process was 

done by hand transfer of weights to a paper 

sample sheet. The hand written weights 

were then transferred to a computer 

spreadsheet and loaded to the computer 

network, resulting in increased time to 

complete the work as data was recorded 

multiple times. 

Thirdly, there were data quality issues as the 

method was repetitive and often prone to 

error when conducted over the course of 

a shift, often resulting in data transfer and 

input errors. 

A new bulk density weighing unit was 

designed to address these issues. This 

resulted in an integrated work platform 

with a clear path in and out to handle the 

core sample volumes being tested on a 

regular basis; a motorised lift system for 

the weighing basket and the water tank 

to reduce the manual handling issues of 

lowering samples in and out of the water 

tank; a pumping system to remove the 

water from the tanks, and to control the 

water level in the tank; and a digital scale 

and laptop computer included in the unit 

enabling data to be recorded just once and 

minimising transfer errors. 

Xstrata’s Manager, Strategic Mine Planning, 

Nathan Bullock said the design of a new 

bulk density weighing unit had provided a 

number of safety and operational benefits 

to the Mount Isa Mines copper operations. 

“The unit is set up so that there is less 

handling of core samples and it has 

eliminated the need for personnel to 

bend and reach like they used to with the 

previous method and also reduced the 

likelihood of muscle strains and repetitive 

motion injuries,” said Nathan. 

Mount Isa Mines Copper Operations 

invested $31,500 for each unit, and two 

units were fully operational by early 2009. 

Project work undertaken during 2010 has 

shown the introduction of the bulk density 

weigh unit has improved the quality of data 

collected from the stations. Additionally, 

with an incident and injury free year at the 

core shed in 2010 the project highlights the 

benefits of undertaking operational safety 

improvements in the workplace. 

Rachael Schultz – Core Shed Technician, 

operates the Bulk Density Unit 





Nathan Pollard – Mobile Equipment Technician, and Andrew Green – Fitter and Turner with Detroit, respond to a mock road accident rescue situation during 

Emergency Response Team training at Ernest Henry Mining 


Xstrata Copper announced in December 

2009 that it would invest $589 million to 

extend the life of the EHM operation to 

2024 through the transformation of open 

pit mining operations to underground mining 

and magnetite processing. 

The commencement of the associated 

construction works for these projects 

created unprecedented levels of contractor 

activity on site during 2010. Many of these 

contractors have specialist backgrounds 

outside of the mining industry, which created 

a unique challenge for EHM to ensure that all 

contractors understood and were compliant 

with site and industry requirements. 

The Health, Safety and Training department 

experienced significant growth in 2010 

in response to the considerable changes 

at EHM, providing ongoing challenges 

in identifying improvement strategies to 

maintain a safe and healthy workplace. 


After achieving nearly 1.5 million man hours 

recordable injury free in the first half of the 

year (a record achievement), EHM recorded a 

number of Medical Treatment Injuries (MTIs) 

and one Lost Time Injury (LTI). However, 

despite the high level of project activity, 

transitioning to underground mining and 

a doubling of our workforce, we remained 

on track and achieved most of our 2010 

safety targets. Our TRIFR target of 5.8 was 

exceeded at 5.6 and our DISR target of 

50 was greatly exceeded at 13.9. Despite 

not achieving our LTIFR target of zero, we 

recorded a rate of 0.5, an improvement on 

the result of 0.6 recorded in 2009. 

Our leadership commitment to the Safety 

Culture Journey to Zero Harm remained a 

focus in 2010 with the first two stages of the 

program now complete. The next stage is 

to enhance front-line leadership practices to 

increase quantity and quality of performance 

feedback and recognition. In 2011, a Safety 

Climate Survey will be distributed to all 

employees to provide a snapshot of attitudes 

and perceptions about safety and to identify 

areas for improvement. 

The Supervisor Quality Support Tool was 

developed in 2010 and will be implemented 

in 2011, providing valuable opportunities 

for supervisors to identify opportunities 

to improve their leadership skills. These 

initiatives will ensure a sustainable, mature 

safety culture is developed throughout EHM. 


preparation 

In 2010 EHM appointed its first Emergency 

Management Advisor, providing invaluable 

leadership and direction for emergency 

management at our operation. It was a 

challenging year for the Emergency Response 

Team (ERT) with declining team numbers due 

to the workforce transition to underground. 

Despite this, they continued to improve 

their skills with Certificate III Occupational 

Emergency Care and Certificate IV Emergency 

Medical Technician courses being run on 

site. This resulted in success when the team 

attended the North West Minerals Province 

Mines Rescue Challenge at Outback at Isa 

and won the Confined Space section. 



Contractors prepare to erect structural 

steelwork for Ernest Henry Mining’s magnetite 

extraction plant 

In December 2010, EHM recruited an on-site 

Occupational Therapist to provide: 

Occupational illnesses by type – Ernest Henry Mining 


Noise-induced hearing loss Nil 1 

Occupational hygiene sampling and analysis – Ernest Henry Mining 

Type of sample collected and analysed 2009 2010 

Airborne dust (inhalable and respirable) 203 115 

Diesel Particulate Matter (DPM) 35 36 

Noise 85 42 

The acquisition of a range of new specialised 

equipment allows us to respond to the 

unique challenges presented by the 

developing shaft underground mine. This 

includes two Underground Emergency 

Response light vehicles, BG4 closed circuit 

breathing apparatus, a new ERT building and 

other specialist tools. 


2010 was a record year for EHM with a large 

influx of contractors for the construction of 

the magnetite plant and shaft underground 

mine in addition to various supporting 

infrastructure projects. Much effort was made 

to ensure all contractors were appropriately 

integrated into the workforce with dedicated 

induction programs, targeted Safe Work 

Observations and regular audits. 

In addition to the short-term management of 

project contractors, work commenced on a 

review of the Health and Safety Management 

System to ensure there was an effective 

process for management of contractor 

systems used on site. The new system 

incorporates management of Health, Safety, 

Environment and Community requirements 

and provides simplified access to information 

for our contractors. 

Occupational Health 

A Fatigue Management Program commenced 

in 2010 with all foreseeable risks associated 

with fatigue management requiring a review 

of current controls and the development 

of appropriate additional controls. EHM 

is predominately a fly-in/fly-out (FIFO) 

operation, with charter and commercial 

flights from Cairns, Townsville and Brisbane. 

Around 19% of the workforce (employees 

and contractors) lives locally, so there are a 

range of different roster combinations, with 

the majority working 12 hour days. 

One of the biggest fatigue-related risks 

facing EHM is the issue of commuting 

prior to, during and following a sequence 

of shifts. Therefore, fatigue management 

is incorporated into our Health and Safety 

Management System and aims to achieve the 

following outcomes: 

■■ 

■■ 

■■ 

Identification of robust strategies and 

actions for implementation and a plan 

to sustain the impetus for the long term 

Consistent application of fatigue 

assessment and management 

strategies, through improved 

behavioural observations and revamped 

education programs 

The promotion and maintenance of a safe 

and healthy workforce fulfilling EHM’s 

Duty of Care principles and requirements. 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

acute services for injury management 

with the aim of returning workers 

promptly to pre-injury levels 

a more diverse range of services, such 

as massage, relaxation and other stressrelated 

strategies 

education and training, particularly in 

relation to injury avoidance, and health 

and wellbeing 

after-work programs at the 

accommodation village e.g. gym, 

weight loss 

ERT fitness programs 

workplace assessments and assistance 

with the hygiene monitoring program. 


During the year we continued the 

identification of hygiene hazards and 

implemented the 2010 monitoring and control 

strategy. Occupational Hygiene monitoring 

was undertaken for dust, noise and 

underground Diesel Particulate Matter (DPM). 

Noise 

Employees participate in personal sampling 

in each of the operating areas to provide 

representative samples of exposure to noise. 

During the year, EHM participated in the 

North Queensland noise survey, to identify 

and assess noise sources at EHM. An EHM 

noise control plan that targets noise sources 

identified in the survey as posing the greatest 

health risk to workers will be developed and 

implemented in 2011. 

Airborne dust 

Employees participate in routine personal 

inhalable and respirable dust monitoring 

programs in each of the operating areas to 

provide representative samples of exposure. 

Inhalable dust samples measure dust particles 

and the level of other contaminants in the 

dust, such as lead and arsenic. Personal 

respirable dust monitoring, which includes 

monitoring for respirable quartz (silica), 

measures smaller dust particles which can be 

inhaled into the deep reaches of the lungs. 

Diesel Particulate Matter 

In 2010 exposure in the underground 

environment was included in our sampling 

program. We prioritised controls aimed at 

limiting the DPM generated from vehicles 

and ensuring adequate ventilation to exhaust 

diesel fumes from mine areas. Our goal is to 

reduce DPM exposure to personnel to as low 

as reasonably practicable. 



case study 

Safety Culture Program 

At Ernest Henry Mining, we aim to operate a safe workplace that is 

injury- and fatality-free, and to enhance the wellbeing of employees 

and contractors. We pursue this goal by promoting and sustaining 

a culture of safety that seeks to embed a positive attitude and 

awareness of the issues involved. 

We developed the Safety Culture Program 

at Ernest Henry Mining to enhance our 

operation’s safety performance and to 

reinforce leadership commitment to the 

cultural journey to Zero Harm. 

The goal of the program was to influence 

our workforce’s thinking patterns and to 

embed a safety culture of performance and 

accountability into organisational culture. 

This would ensure sustainable safety success 

through the projected change and growth 

phase at EHM as we transform from open 

pit mining operations to a major shaft 

underground mine with an associated 


While traditional methods such as policies, 

procedures, quality tools and education 

programs were well implemented, safety 

performance had reached a plateau and 

we identified the need to reinforce the 

importance of visible and felt leadership. 

Ernest Henry Mining partnered with 

Conexus Consulting to develop a program 

to improve safety performance in a way that 

complemented the existing cultural strategy 

by focusing on constructive behaviours. 

The first part of the program was the 

delivery of Safety Culture Workshops to the 

leadership team. 

The workshops provided leaders with 

tangible strategies and skills to enable them 

to model visible and felt leadership to their 

crews and foster relationships that are based 

on trust and credibility. In creating a positive 

safety culture we are able to challenge 

current values and beliefs and develop a 

strong, interdependent safety culture. 

The next phase of the program is to enhance 

front-line leadership practices to increase 

quantity and quality of performance feedback 

and recognition. A Safety Climate Survey will 

be distributed to the workforce in 2011 that 

will allow us to review the performance of 

the new program. 

A positive safety culture has many benefits 

beyond workplace safety; it helps to create 

a safer community, build a solid reputation 

for corporate social responsibility, attract and 

retain quality staff as well as reduce losses 

from incidents and injuries. 

Myles Johnston – General Manager Ernest 

Henry Mining, said that while changes to 

organisational culture takes time, tangible 

results are already being seen. 

“Even with the sizeable increase in 

contractors on site with the commencement 

of project infrastructure works, our safety 

statistics continue to show improvements,” 

said Myles. 

“We are proud to report that we have 

achieved close to 1.5 million man hours free 

of recordable injuries in the first half of the 

year, a record achievement for EHM. 

“The program is also receiving a lot of 

attention externally, with many of our 

stakeholders closely following the progress 

and outcomes of the program as they 

consider implementing the program at 

their organisations. 

“The success of the program to date 

highlights our commitment to continual 

improvement and ensuring our employees 

and contractors are working in a safe 

environment through the development of a 

positive safety culture,” he said. 

Program research and scoping commenced 

in early 2009. Leadership safety culture 

workshops for managers were rolled out in 

early 2010, with workshops for supervisors 

and superintendents scheduled for 2011. 

Ernest Henry Mining invested $66,700 in the 

program that will be implemented in four 

phases over a two year period. 

John Twomey – Magnetite Project Manager, conducts a Safe Work Observation with contractors 

working on the magnetite filter building, providing visible and felt safety leadership 





Townsville copper refinery staff checking electrode alignment 


The key challenge and focus at our Townsville 

operations in 2010 was improving the high 

level risk management strategies and systems 

by identifying all risks and foreseeable 

emergencies and implementing effective 

controls. We also focused on managing 

exposure to occupational hygiene hazards at 

our operations. 

Health and safety 

In 2010 we conducted an internal review of 

our Townsville operations’ risk register. This 

involved five control verification audits being 

conducted in March. In 2011 we will conduct 

internal control verification audits to assess 

their effectiveness for controlling the risk. 

During the year we continued to develop our 

Occupational Health and Safety Management 

System and significant progress was made 

in the areas of risk management and annual 

sustainable development (SD) planning. 

Audits and reviews of our operational 

systems and key procedures ensure they are 

aligned with the Xstrata North Queensland 

Common System. Full alignment to the North 

Queensland system will result in greater 

efficiencies as we work to defined common 

goals and strategies, and work will continue 

on this in 2011. 


In 2010 our Townsville port operations 

achieved its 2010 LTIFR and TRIFR targets 

of zero. The Townsville copper refinery 

achieved its LTIFR target of zero, however 

did not achieve its TRIFR target of


Trini McLean – Occupational Hygienist attaches 

a personal dust monitor to Steve Jensen – 

Electrical Trades Assistant 

During the year we reviewed workplace 

observation data from the previous two 

years to assess the observations by location, 

category, body area of concern and follow 

up actions. The review identified that 

observations were being conducted in the 

most ‘at risk’ areas and that a wide range 

of tasks were being observed. The results of 

this review will help us improve workplace 

observations training and highlight areas of 

concern, and action plans will be developed 

in 2011 to implement key recommendations 

of the review. 

In 2010 we continued to engage an 

Occupational Therapist to provide specialised 

advice and guidance in the area of manual 

handling through specific workplace 

observations. Two observations were 

undertaken each month where workers 

were observed performing their normal 

workplace duties. Discussions then took 

place regarding manual handling techniques, 

with both positive work practices and areas 

for improvement highlighted. This program 

supports manual handling training to reduce 

the risk of workers sustaining these types of 

injuries, and further improvements will be 

made to the program in 2011. 


preparation 

A response and recovery manual is in place 

at the Townsville operations to ensure that 

we are prepared to respond to a range 

of crisis and emergency events. In 2010 

further training was conducted in Crisis 

and Emergency Management and in On 

Scene Commander. The competency-based 

training sessions were delivered on site using 

Xstrata Copper’s new response and recovery 

training program. 

In 2010 evacuation drills were conducted at 

our Townsville operations. Issues highlighted 

from these drills were addressed and action 

plans developed and implemented. This 

contributed to the success of an evacuation 

that took place at the Townsville copper 

refinery in October 2010 following a small 

fire. The Site Response and Recovery 

Team was activated and all processes and 

procedures followed correctly and in a timely 

manner. Queensland Fire and Rescue Service 

were engaged following the incident for a 

formal debrief that identified an efficient site 

emergency response system. 

Cyclones and extreme wind and rain 

conditions are a seasonal event for the 

Northern coast of Australia, which can affect 

our Townsville operations. Cyclone procedures 

and check sheets for all departments were 

reviewed in 2010 requiring checks to be 

completed at the start of the cyclone season 

before the identification of any cyclone 

threat. All cyclone check sheets were 

completed by the end of November, and 

actions arising from the check sheets were 

assigned to ensure the operations were well 

prepared for the cyclone season. 


Contractors made up 32% of our Townsville 

operations’ workforce in 2010. Managing 

contractors and their activities more 

effectively at our operations remained a key 

focus of our Safety Management System. 

Our objective is to ensure that the standards 

and procedures adopted for engaging 

contractors are consistent with our Common 

System Standards. 

SKILLED, one of our operations’ contractors, 

introduced the ‘Take 5’ system of risk 

management for their workforce on site at 

the Townsville copper refinery. This initiative 

was actively promoted and supported by the 

entire contractor management team, and will 

continue to be supported in 2011. 


A bi-monthly health promotion campaign 

continued across our Townsville operations in 

2010. The campaign included programs on 

protecting hearing, working in hot conditions, 

“Our Townsville port 

operations achieved its 

2010 LTIFR and TRIFR 

targets of zero.” 

maintaining Personal Protective Equipment, 

obesity, skin care and sun cancer, alcohol 

abuse, fatigue, mental health and shift 

work. These programs were well received by 

employees. The health promotion campaign 

will continue in 2011 to promote healthy 

living to our people. 

Periodic health assessments continued in 

2010 and employees with more than four 

years service were required to participate. 

We achieved our 2010 participation target of 

> 90%. In addition a number of employees 

were invited to participate in health 

management programs to assist them in 

returning to their normal duties following 

domestic injury or illness. In consultation 

with the treating doctors, suitable duties 

plans were developed to provide them with 

appropriate tasks. 

Health assessments are an important part 

of our safety and health strategy. These 

assessments provide us with an indicator of 

an employee’s level of fitness to perform the 

tasks they are required to do. 

We continued to develop the Job Role 

Criteria (JRC) tool. All job roles have a 

detailed description of the requirements, 

tasks and equipment associated with the job. 

Please refer to the JRC case study on page 55 

for more information. 


In 2010 we continued our extensive 

monitoring programs for dust, arsenic in 

urine, and lead in blood levels. We invested 

more than $100,000 on occupational hygiene 

sampling and analysis during the year, and 

there were no new occupational illnesses 

reported at our operations in 2010. 



Noise 

Static noise sampling is performed across our 

Townsville operations to identify problem 

work areas. All results are used to assist in 

the review and implementation of noise 

reduction strategies which include hearing 

protection requirements, maintenance 

schedules, sound proofing options, and 

influencing plant and equipment selection 

and design, meeting ‘buy quiet’ principles 

to reduce the impacts of noise-induced 

hearing loss. 

In 2010 we completed a formal review to 

update the noise maps for our Townsville 

operations. The final report from this review 

is expected in early 2011, and an action 

plan will be developed from the findings. 

Audiometry testing continued in 2010 to 

ensure all noise exposure personnel are tested 

on a regular basis. There were two claims for 

work-related hearing loss in 2010. 

Airborne dust 

Employees are required to participate in a 

routine program of personal inhalable dust 

sampling which includes determination of 

exposure to dust, and metal contaminants 

such as lead, arsenic, copper, and acid 

mists. These results provide an indication of 

exposure levels for the various workgroups, 

and provide the basis for determining 

performance against exposure criteria and 

evaluation of controls. 

The occupational hygiene monitoring 

program is part of a dynamic process to 

constantly review emerging data trends, 

and respond in a risk based manner by 

adjusting sampling targets as necessary. 

Across our Townsville operations in 2010 a 

number of workgroups were changed to less 

frequent sampling regimes while a number 

of new workgroups were included in the 

sampling program. A week-long arsenic 

investigation was conducted at the Townsville 

copper refinery in 2010. Between changes 

to sampling programs, and the arsenic 

investigation sampling, the result was a slight 

increase in the number of samples collected 

in 2010. 

In addition to the routine monitoring 

program, non-routine sampling is also 

undertaken on request and is often used 

to evaluate exposures in tasks undertaken 

infrequently or where specific concerns are 

raised. Static sampling is also undertaken 

on request and is valuable in monitoring 

emissions, evaluating contaminant levels at 

particular locations, and for the evaluation 

of controls. 

Arsenic 

At the Townsville operations, arsenic can be 

found in all copper process areas, however 

it is potentially most hazardous during the 

copper refining process. Comprehensive 

programs are in place across the Xstrata 

Copper North Queensland Division to 

manage and minimise occupational exposure 

to arsenic and other contaminants. 

During 2010 the number of workgroups 

included in the arsenic monitoring program 

was expanded to ensure exposure profiles 

were well determined across our operations. 

For those workgroups previously sampled 

intensively, numbers and frequencies were 

reduced while still maintaining comfortable 

monitoring of exposure. The overall effect 

of these changes was a net reduction in 

sample numbers, but a more comprehensive 

understanding of arsenic exposures across 


At our port operations arsenic is less of 

a concern, however exposure potential 

still exists as it is present in some of the 

concentrates handled. Previous extensive 

urinary arsenic monitoring had established a 

low arsenic uptake profile for port operators 

and sampling frequency was reduced. In 

2010 we decided to review arsenic exposure 

through urinary arsenic sampling at a three 

year interval, and this is scheduled for 2011. 

Lead management 

An elevated blood lead level is a matter 

Xstrata Copper takes seriously. This is 

evident in the strict protocols in place to 

reduce employees’ exposure to lead in 

the workplace. 

Occupational Illnesses by type – Townsville operations 

Biological and workplace monitoring is 

conducted in accordance with the National 

Occupational and Health Safety Commission 

(NOHSC) standard and recognised 

international occupational hygiene monitoring 

standards. The NOHSC medical removal 

limit is recommended at 50 micrograms per 

decilitre (μg/dL), though Xstrata has adopted 

more conservative criteria. Employees with 

blood-lead concentration levels of 35 μg/dL 

or greater must be removed from the 

workplace until concentrations are below 

30 μg/dL. Pregnant employees should not 

have a blood-lead concentration that exceeds 

the national standard of 10 μg/dL. 

All employees at our Townsville operations 

are required to have venous lead in blood 

tests at frequencies which are determined by 

the area they work in, their previous result, 

gender and reproductive capacity. This form 

of biological sampling provides an accurate 

measure of a worker’s exposure to lead. 

In 2010 there were no instances of people 

exceeding the national medical removal limit, 

nor the lower Xstrata criteria of 35 μg/dL. 

Stability in the numbers of operators in those 

workgroups tested for blood lead has seen 

little variation in test numbers at our copper 

refinery between 2009 and 2010. A notable 

increase in test numbers was seen at our 

port operations, due to new starters being 

included in testing, and increased monitoring 

of individuals with slightly elevated results. 

Increased testing frequency and investigation 

is undertaken for any persistent elevation in 

blood lead levels, even while comfortably 

below the removal level. This proactive 

approach assists in maintaining compliance 

within exposure criteria and demonstrates our 

commitment to controlling lead exposure. 



Occupational hygiene sampling and analysis* – Townsville operations 

Townsville 


Townsville 

port operations 

Type of sample collected and analysed 

2009 2010 2009 2010 

Acid mist 24 24 n/a n/a 

Airborne dust (inhalable and asbestos)* 27 76 22 28 

Arsenic in urine* 1,101 540 0 0 

Lead in blood 48 40 30 59 

* Please see the Monitoring programs section for details regarding the sampling frequency for airborne dust and 

arsenic in urine 



Case study 

Townsville copper 

refinery wins 2010 

Innovation Award 

The Townsville copper refinery proudly 

accepted the Innovation Award at the 2010 

Queensland Mining Industry Health and Safety 

Conference for its unique Cathode Nodule 

Catcher innovation, which was nominated for its 

innovative means of collecting copper nodules. 

The Cathode Nodule Catcher is installed in the cathode stripping 

machine wash water system. The nodules are collected in the 

catcher using gravity separation and water flow redirection that 

causes the solid nodules to drop out of the water flow, being 

deposited into the nodule catcher’s removable lower chamber. 

This reduces the amount of manual cleaning required in the wash 

chamber itself, which used to take place in cramped areas and in 

very warm and humid conditions as the wash water temperature 

was maintained at 85 degrees Celsius. 

“This innovation has provided a cleaner system and has reduced 

the requirement for employees to enter the wash station from 

weekly for up to 1.5 hours, to once every two weeks for around 

10 minutes,” said Noel Kimlin – Superintendent Continuous 

Improvement for Xstrata Copper’s Townsville copper refinery. 

“Simply put, the operators can now remove the nodules by 

removing the catcher’s lower chamber and exchanging it for 

an empty one. 

“The manual handling risks have reduced significantly, along with 

the risks associated with working in hot conditions, and this is 

thanks to this new system that virtually cleans the wash station 

by gravity,” Noel said. 

Steve de Kruijff – Chief Operating Officer Xstrata Copper North 

Queensland, said ensuring the health and safety of our employees 

and contractors in the workplace is of primary importance to 

Xstrata Copper. 

“Zero harm is our goal and we 

believe that all work-related 

incidents, illnesses and injuries 

are preventable.” 

“Our focus on an injury-free, healthy work environment is driving 

further improvements in our safety performance. It is encouraging 

to see our employees leading the way in designing innovations 

that ensure we improve our safety standards,” Steve said. 

Left: The award winning nodule catcher innovation 


Bernard Paul – Mine Surveyor, Mount Isa Mines copper operations 


Our people 

We maintain a safe working environment based on mutual respect, equity and integrity. 

Our strategic objective is to realise the full potential of our employees. 

In line with Xstrata Copper’s SD Policy, we 

value diversity and treat all our employees 

and contractors fairly, offering equality of 

opportunity at all levels of the organisation, 

without prejudice of any type. We hire 

according to the skills and experience 

required for each particular position, without 

discrimination based on gender, race, age, 

sexual orientation, religion, nationality or any 

other factor. At the Xstrata Copper North 

Queensland Division, salaries are negotiated 

based on qualifications and experience, and 

are the same regardless of gender. Entry 

level wages are higher than the Australian 

minimum wage and again, are the same 

regardless of gender. 

The commitment and capability of our 

people is key to the ongoing success and 

sustainability of the Xstrata Copper North 

Queensland Division. Our Human Resources 

(HR) strategy, and accompanying initiatives, 

supports this requirement by developing 

individual capabilities and a constructive 

organisational culture. 

Employment 

In 2010, the Division provided jobs for 

3,931 people (2,887 employees and 1,044 

contractors). Our rate of voluntary employee 

turnover in 2010 averaged 13.5%, which is 

below the average voluntary turnover rate of 

20.9% reported by Queensland participants in 

the Resources Industry Turnover Analysis. 

Employing locally 

We are committed to employing local 

residents from the communities in which 

we operate. A significant majority of our 

workforce is employed on a permanent basis. 

We estimate that approximately 60.6% of 

our total employees in north Queensland, 

excluding contractors, were hired from the 

local communities of Mount Isa, Cloncurry 

and Townsville. 

However, the growth in the resources 

sector in 2010 coupled with the national 

skills shortage has meant a small number of 

employees with management and professional 

skills were recruited from outside Australia. 

In 2010, 54.1% of our employees were 

covered by collective agreements and each 

employee spent an average of 138 hours 

in training. 

Training and education 

We provide our people with exciting career 

opportunities, and training and development 

is embedded in our culture. Development 

opportunities are discussed with employees in 

annual performance reviews. 

We work closely with community stakeholders 

to provide real and meaningful vocational 

career pathways for individuals, in careers that 

reflect the needs of our business. Initiatives 

are outlined throughout this section. 

Diversity and opportunity 

We seek to foster a culture in which our 

employee-related decisions, whether it 

be employment, training or promotion, 

are taken based solely on an individual’s 

ability and contribution to Xstrata’s success, 

irrespective of gender, age, race, disability, 

sexual orientation or any other aspect of their 

identity. Of the Division’s total workforce, 

14.6% are female and 85.4% are male; total 

workforce by age demographic shows 30% 

are under 30, 53% are 30 to 50 and 17% 

are over 50. Approximately 8.57% identify as 

Aboriginal or Torres Strait Islander. 

Non-discrimination policy 

As stated in Xstrata’s Business Principles, we 

value the contribution made by our employees 

and, under our SD Policy, do not tolerate 

any form of discrimination, abuse of power, 

harassment or physical or verbal violence in 

the workplace. We also provide employees 

with a fair and non-discriminatory mechanism 

for complaints and foster practices that 

respect their rights and personal dignity. 

In 2010, 20 incidents of bullying, harassment 

and/or discrimination were reported across 


Division. Of these reported incidents, 75% 

have been resolved and are now closed off 

to the satisfaction of the employee. Six of the 

incidents were found to have no case. Two 

of the 20 complainants have exercised their 

discretion to refer to external bodies. 

Labour relations 

Four Union Collective Agreements were 

negotiated or implemented in 2010: Copper 

Refineries Pty Ltd Collective Agreement, 

Services Area Collective Agreement, 

Mining Area Collective Agreement and 

the Metallurgical Plants Area Collective 

Agreement. The Health and Safety topics 

covered in those formal agreements with 

trade unions include: flexible working 

practices where individuals work to their 

capacities, subject to being safe, legal and 

competent; reasonable rest breaks between 

shifts; introduction of new rosters that must 

be preceded by consultation and satisfy health 

and safety requirements, as well as clauses 

relating to personal protective equipment. 

Within Xstrata Copper there are examples 

of various workplace relations models, 

including individual agreements and collective 

bargaining agreements, as per the Fair 

Work Act 2009. 

All employees are free to join a union of their 

choice. Labour relations are a fundamental 

responsibility of operational management 

and we seek to have a direct relationship 

between our employees and line management 

founded on quality leadership, effective 

communication, mutual respect and trust. 

We consult with employees in advance 

of any significant operational change. 

Minimum notice periods vary across our 

operations and are generally specified in 

collective agreements. 


Our people 

Our people 


Daniel Jacobs – Apprentice Diesel Fitter, and Troy Cleary – Apprentice Auto Electrician, in the Enterprise underground copper mine 

Employment 

In 2010, the Mount Isa Mines copper 

operations provided jobs for 2,762 people 

(2,260 employees and 502 contractors). 

Our rate of voluntary employee turnover in 

2010 averaged 17.7%, similar to the average 

voluntary turnover rate of 17.6% reported 

by Queensland participants in the Resources 

Industry Turnover Analysis. 

Employment profile* – 


54% Employees– 

MountIsa 

27% Employees– 

restofAustralia 

1% Foreign 

nationals 

18% Contractors 

*Basedontotalemployees(includingcontractors) 

Benefits provided to permanent employees 


that are not provided to casual employees 

include paid leave provisions, external/ 

tertiary education assistance, higher rates 

of superannuation, disability cover, and 

salary continuance. 

The majority of our employees (99.8%) 

belong to accumulation style (defined 

contribution) superannuation funds. A small 

number belong to a defined benefit fund, 

which is held and maintained separately from 

Xstrata’s resources. Assets in the fund are 

currently greater than the vested benefits of 

the members. Benefits are payable based on 

the member’s final salary and the number of 

years of service with the company. 


As part of our ongoing business strategy, 

we are committed to employing Mount 

Isa residents. The significant majority of 

the Mount Isa Mines copper workforce is 

employed on a permanent basis. However, 

the continuing skills shortage in core 

mining occupations has meant a small 

number of employees were recruited from 

outside Australia. In 2010, 1.2% (35) of 

our employees (excluding contractors) 

were foreign nationals who did not have 

permanent residence in Australia. 

All our employees live locally in Mount Isa. 

For this reason, the Mount Isa Mines copper 

operations have not previously recorded 

the proportion of the workforce and senior 

management hired from the local community. 

We estimate that in 2010 approximately 

66% (1,492) of our total employees 

(excluding contractors) were hired from 

the local community. 

Financial assistance 

In 2010, our Mount Isa Mines copper 

operations received $311,544 from the 

Mining Industry Skills Centre for the delivery 

of nationally accredited competencies. 

We also received $406,393 from the 

Queensland Apprenticeship Services to 

support our apprenticeship program, $64,020 

from Construction Skills Queensland for 

retaining apprentices who are linked to the 

construction industry, and $199,317 from the 

Mount Isa Institute of TAFE for training first 

year apprentices. 


Our people 


In 2010, 1,413 employees (64.7%) in the 

Mount Isa Mines copper operations were 

covered by collective agreements. 

Our Mount Isa SD Workforce Committees 

comprised 73% employees and 27% 

management, which included line supervisors, 

superintendents and managers. 


To ensure our employees have the 

appropriate levels of safety and health 

competency to perform their work 

activities and in line with our commitment 

to developing our people, we invested 

$9.7 million on training locally during 2010 

with an average of $4,460 per employee. 

Ralph Bartholomew – Training Facilitator, instructs new employees at the Mount Isa Copper Operations 

New Starter Centre in the safe use of a grinder 

Training Coordinators work closely with line 

management and supervisory staff to identify 

training requirements and gaps in knowledge. 

In 2010 all of our employees completed an 

annual performance evaluation review where 

training opportunities were identified as part 

of their professional development. 

Our award-winning training systems 

continued to focus on delivering competencybased 

training for all workers. Training 

requirements identified during career 

planning, and leadership and professional 

development also formed part of the process. 

Building leadership 

Our 2010 Leadership Development Program 

attracted 432 participants in Mount Isa. 

The program aims to articulate the role of 

a leader within the business and provide 

participants with the required skills. Modules 

included Introduction to Copper North 

Queensland Leadership, which provides 

context around the organisational cultural 

change initiatives underway across the 

business, as well as modules focusing on 

leadership, coaching for performance, 

planning and communication. 

Xstrata Apprenticeship Program 

Xstrata Mount Isa Mines runs the largest 

apprenticeship program in north Queensland, 

with more than 172 apprentices at our 

copper operations. Nineteen of these 

apprenticeships are sponsored or area 

apprentices, meaning they were only open to 

current Xstrata employees to provide them 

with the opportunity to up-skill or obtain 

a trade. 

The program is designed to enhance our 

maintenance programs and strategies. It is 

focused on providing real employment and 

development opportunities for people living 

in the region and currently targets eight 

key trades. 

In 2010 we invested approximately 

$5.2 million in apprenticeships and 

scholarships, and recruited 50 apprentices 

plus 11 school-based apprentices for their 

first year training at the Xstrata Skills Centre. 

2010 also saw the introduction of a new 

school-based initiative and we took on five 

school-based operational trainees. In 2010 

offers of employment have been made for 

56 apprenticeships and 19 for school-based 

trainees who will begin in 2011. 

The Xstrata Skills Centre has been developed 

to suit our growing business needs by upskilling 

our trades people and providing a 

supportive and communicative environment 

for developing the skills and needs of our 

apprentices and trainees. 

Developing vocational skills 

Our Vocational Skills Development Program 

targets secondary schools in the north west 

region. It introduces students to opportunities 

and careers within the mining sector and 

provides on-the-job training. 

Program initiatives include structured 

work experience and readiness programs, 

traineeships, lead involvement in the 

Queensland Academy of Minerals and Energy, 

information programs and school-based 

apprenticeships. In 2010 the Work Experience 

Program incorporated four programs: the 

Work Experience Program, the Skills for the 

Future Program, the Engineering Camp and 

the Gifted and Talented Program. 

In 2010 Xstrata Mount Isa Mines (copper and 

zinc-lead operations) awarded 16 bursaries 

worth $1,000 each to high performing 

secondary school students, to assist with 

their education, and they undertook work 

experience at site during their school 

holidays. In total, including bursary recipients, 

107 students undertook work experience at 

Xstrata Mount Isa Mines (copper and zinclead 

operations). 

Developing professional skills 

Our Mount Isa Mines copper operations 

recruited 18 permanent graduates in 2010. 

The Graduate Program provides employment 

and structured development opportunities for 

recent graduates and assists us to develop 

technical and leadership capability. 

We also employed 61 university students 

in our Vacation Work Experience Program, 

based on demand in our copper operations. 

Students worked across the operations 

and undertook assigned projects. The 

program provides excellent salaries as 

well as assistance with accommodation 

and transportation. 

Following the 2009–10 Vacation Program, 

53% of participants returned to our Mount 

Isa Mines copper operations as either 

a vacation student or graduate for the 

2010–11 intake. 

In 2010 we awarded 14 bursaries worth 

$10,000 each to university students to assist 

them with their education. 


case study 

Another successful year for our 

Apprenticeship Program 

Xstrata Copper is committed to providing real and meaningful 

vocational career pathways for individuals in careers that reflect the 

needs of our business. We make it part of our business strategy to 

invest in training and developing local talent. 

Daniel DeValter commenced his full-time 

apprenticeship as a fitter and turner. 

Joining the program straight from school, 

Daniel was familiar with the Apprenticeship 

Program from prior experience as a schoolbased 

apprentice and Xstrata bursary 

scholarship recipient. 

Prior to 2006, Xstrata employed on average 

25 apprentices a year. However, in 2006, the 

$3.5 million custom built, state-of-the-art 

Xstrata Skills Centre commenced operation, 

employing 72 apprentices in its first year 

to help develop our own employees and 

continue to attract and retain our workforce. 

The unique environment of the Xstrata Skills 

Centre provides students with real life, handson 

work experience and interaction with 

other apprentices in an encouraging, safetyfocused 

and disciplined environment. 

Xstrata Mount Isa Mines now has over 250 

apprentices or trainees on site. The training 

programs offered at the Skills Centre include 

several key innovative initiatives including 

the Apprenticeship Program, school-based 

apprenticeship, Certificate II in Metalliferous 

Mining, and Certificate I in Engineering. 

On 27 January 2010, 50 new apprentices 

started work at the Xstrata Skills Centre. 

As with every new intake, 2010 saw a 

diverse group of apprentices come together, 

all motivated by the year ahead and the 

opportunity to develop their skills. 

Dave Watson – Superintendent of the Xstrata 

Skills Centre, believes the first year at the 

Xstrata Skills Centre is a vital component of 

the Apprenticeship Program. 

“The Xstrata Skills Centre is integrated 

into Xstrata’s Apprenticeship Program to 

offer students the opportunity to learn in a 

controlled and safe environment,” said Dave. 

“It allows apprentices to develop essential 

skills without the pressure of production, so 

when they go out into the workforce they 

add value and make positive contributions,” 

he said. 

Kerry Brisbane – Apprentice Team Leader, 

said there had been a lot of positive 

outcomes from the 2010 group. 

“This year’s group of apprentices were 

fantastic. They worked well, and excelled at 

the projects they were given,” said Kerry. 

“The apprentices participated in placements 

on site and in community events such as the 

Xstrata Mount Isa Mining Expo, Mardi Gras 

float and Christmas party set-ups,” she said. 

Alongside the Apprenticeship Program, 

the Xstrata Skills Centre conducted schoolbased 

programs such as the school-based 

apprenticeships. During 2010, 11 students 

from high schools were given the opportunity 

to discover trade options and to experience 

what potential careers will hold for them. 

“The school-based program gave me the 

opportunity to discover all the different fields 

and it helped me to decide which trade I 

wanted to do,” said Daniel. 

“Being both a school-based apprentice and 

a bursary recipient gave me the advantage 

of getting my foot in the door and gave me 

experience in how Xstrata operates. It also 

assisted me to build a positive relationship 

with the supervisors,” he said. 

Xstrata also introduced the school-based 

Trainee Program, which was introduced 

to encourage Year 12 school students to 

consider working at Xstrata Mount Isa 

Mines after leaving school. There were five 

students selected for the program in 2010 

and four of these were Indigenous students. 

All five students completed and achieved a 

Certificate II in Metalliferous Mining. Three 

of the students were given apprenticeships, 

while the other two students returned to 

their own communities in Normanton and 

Doomadgee to find work. The program 

proved so successful in 2010 that the 

company’s school-based Apprenticeship 

Program will be modified in 2011 to include 

the Certificate II training elements. 

2010 also saw the introduction of the Xstrata 

Skills Centre partnership with TAFE. This 

partnership has proved beneficial for the 


Our people 


Employees by employment contract 

Number 

Permanent 2,143 

Temp/Fixed Term 117 

Total 2,260 

Employees by employment type 

Number 

Full Time 2,236 

Part Time 24 

Total 2,260 

Turnover profile by age and gender Female Male Total 

Under 30 37 115 152 

30 to 50 42 160 202 

over 50 4 42 46 

Total 83 317 400 

Xstrata Skills Centre as it allows all Stage One 

training to be completed on site. 

Dave Watson said the TAFE partnership has 

allowed Xstrata to better align its training 

program to business requirements. 

“We realise the importance of training our 

own people and providing enhanced skills to 

employees so we have tailored our programs 

around the long-term goal of supplying 

the business with quality trades people 

specifically trained in areas that are relevant 

to our industry and site. 

“It’s important that new apprentices be 

familiar with correct procedures like isolation 

and lockout, risk assessment and hazard 

identification, working in confined spaces 

or at heights, manual handling and be able 

to use hand tools correctly. Knowing these 

procedures and learning how to do the basics 

correctly significantly reduces incidents and 

prevents injury,” he said. 

With motivated apprentices joining the 

program in 2010 and changes to the training 

regime, 2010 was another successful year for 

the Xstrata Skills Centre. 

The Xstrata Skills Centre is an example of our 

commitment to providing our staff with the 

highest level of skills possible and in doing 

so creating a sustainable future for our local 

communities in north Queensland. 

Clockwise from left: First year mechanical fitting 

apprentices receive instruction from Peter Fricke 

– Xstrata Skills Centre Instructor 

First year electrical apprentices receive 

instruction from Cameron Gibson – Xstrata Skills 

Centre Instructor 

Cameron Gibson instructs first year electrical 

apprentice Gary Knight 

Turnover profile by role type 

Number of 

leavers 

Number of 

employees 

Percentage 

turnover 

Executive Management 0 1 0 

Senior Management 2 8 20 

Management 32 150 17.6 

Supervisors, administration, technical 122 683 15.2 

Operational, production, maintenance 244 1,418 14.7 

Total 400 2,260 17.7 

Average training hours by employee Senior Management Workforce 

Average hours per employee/year 17.7 105.7 

Average cost per employee $2,044 $5,242 

Training hours by role type Actual hours Average hours 

Executive Management 0 0 

Senior Management 71 18 

Management 11,144 66 

Supervisors, administration, technical 58,107 77 

Operational, production, maintenance 283,553 174 

Total 352,875 138 

Ratio of men and women Women Men 

Senior Management 11% 89% 

Workforce 14% 86% 

Employees by role type and gender Female Male Total 



Management 24 126 150 

Supervisors, administration, technical 220 463 683 

Operational, production, maintenance 74 1,344 1,418 

Total 319 1,941 2,260 

Employees by age and gender Female Male Total 

under 30 143 572 715 

30 to 50 157 1,038 1,195 

over 50 19 331 350 

Total 319 1,941 2,260 


Our people 

Our people 


Henry Wang – Vacation Student (Electrical Engineering), helps to set up scrapers for magnetite filtration at Ernest Henry Mining 

Employment 

In 2010 Ernest Henry Mining (EHM) provided 

jobs for 911 people (401 permanent and 

50 fixed-term and casual employees, 249 

permanent contractors and an average of 211 

project contractors). Our rate of voluntary 

employee turnover for 2010 averaged 10% 

which is similar to turnover in 2009 despite 

different circumstances during these years. 

Turnover in 2009 declined due to a roster 

change in 2008, whereas 2010 saw an 

increased staff turnover rate as a result of 

the impending open pit mine closure and 

a number of employees leaving for more 

long-term, permanent opportunities. Average 

voluntary turnover of 10% is lower than the 

voluntary turnover rate of 17.6% reported 



Staff turnover in 2010 increased consistent 

with the changing business focus at EHM 

and in particular the scheduled closure of 

the open pit mine, and development and 

eventual opening of the magnetite plant and 

underground mine. Open cut mining and 

underground mining are significantly different 

and not all of the open pit mine employees 

have elected to transition to an underground 

role. Where employees have elected to leave, 

we are working on a ‘transition to life after 

EHM’ plan for individual employees so that 

the transition is smooth and supported. 

Employment profile – 

Ernest Henry Mining Employees 

All permanent and temporary employees 

receive the same benefits, with the exception 

of casual employees who receive a higher 

base pay rate to compensate for paid leave 

provisions. Trainees are employed on a casual 

basis and once they are deemed competent 

are offered permanent positions with all 

benefits, inclusive of leave, roster allowances 

and various other mine-specific allowances. 

Employment profile – 

Ernest Henry Mining Contractors 

23% Cloncurry 

30% Brisbane 

25% Townsville 

19% Cairns 

3% MountIsa 

andothers 

16% Cloncurry 

35% Brisbane 


23% Cairns 


Our people 


EHM is a fly-in/fly-out operation. Preference 

is given to potential employees from the local 

Cloncurry community, however technical and 

professional skills are not always available 

locally. All employees in professional and 

technical roles are offered the option of 

relocating to Cloncurry at company expense. 

In 2010 EHM introduced a number of 

improved incentives to encourage more 

workers to move to Cloncurry. See the case 

study on page 52 for more detail. 

Following on from 2008 and 2009, when 

EHM introduced a replacement-only 

recruitment strategy, due to the anticipated 

closure of open pit operations, 2010 saw 

increased employee and contractor numbers 

to accommodate the underground mine and 

magnetite build projects. The EHM Village 

increased from 284 permanent ensuite 

rooms to 384 permanent and 200 temporary 

ensuite rooms. 


EHM has a number of career opportunities 

available to our employees, including: 

Building leadership 

The Leadership Development Program (LDP) 

provides participants with leadership skills 

and the program incorporates leadership, 

coaching for performance, planning and 

communication. In 2010, 88 EHM employees 

attended the program, with 56 participants 

completing the course. 

EHM continued to roll out the Life Styles 

Inventory (LSI) program to all supervisors. In 

2010, 38 EHM employees participated in an 

LSI survey which is a 360 degree leadership 

style peer review with follow up coaching. 

Fostering apprentices 

In 2010, two apprentices from the electrical 

and mechanical disciplines completed their 

third year and one apprentice graduated. 

In 2011, six new apprenticeships (four 

maintenance and two electrical) will 

commence at EHM. 


Employees by 

employment contract 

Number 

Permanent 401 

Temp/Fixed Term 50 

Total 451 

Employees by 

employment type 

Number 

Full Time 450 

Part Time 1 

Total 451 

Turnover profile by age and gender Female Male Total 

Under 30 11 17 28 

30 to 50 8 27 353 

over 50 1 11 12 

Total 20 55 393 

Turnover profile by role type 

Number of 

leavers 

Number of 

employees 

Percentage 

turnover 



Management 3 11 27.3 

Supervisors, administration, technical 35 226 9.7 

Operational, production, maintenance 33 213 13.2 

Total 75 451 16.6*^ 

Average training hours by employee Senior Management Workforce 

Average hours per employee/year 52 77 

Average cost per employee ($) 1,500 850 

Ratio of men and women Women Men 

Senior Management 0% 100% 

Workforce 20% 80% 

Employees by role type and gender Female Male Total 



Management 4 27 31 

Supervisors, administration, technical 44 144 195 

Operational, production, maintenance 38 181 212 

Total 86 365 451 

Employees by age and gender Female Male Total 

under 30 34 82 116 

30 to 50 47 214 261 

over 50 5 69 74 

Total 86 365 451 

Minority Group Employees Number Percentage 

Female 1 5.6 

Male 17 94.4 

Total (Includes ESL & ATSI) 18 100 

* Turnover percentage represents all staff, including casual, fixed-term project, and temporary staff 

(contractors not included). 

^ We had high turnover in 2010 due to the pending end of open pit operations and the 

Underground Build Project activities. 


Our people 

Clockwise from top: Myles Johnston – General Manager Ernest Henry Mining, presents a State of the Operation update to workers at Ernest Henry Mining 

Edward Oliver – Indigenous Trainee, helps with renovation works in an office building at Ernest Henry Mining 

Beryl Walker – Mining Technician, at the controls of Ernest Henry Mining’s Liebherr 996 shovel 

Peter Kirk – Concentrator Technician, and Cam McClymont – Mechanical Technician, complete an overhead crane training course at Ernest Henry Mining 

Developing vocational skills – 

training opportunities for school 

students 

Our Vocational Skills Development Program 

introduces students to opportunities and 

careers within the mining sector and provides 

on-the-job training that contributes directly 

to a recognised qualification (Certificate I 

or trade). 

In 2010 two local school students undertook 

work experience and vocation work at Ernest 

Henry Mining. One student undertook three 

separate work experiences to determine if 

he was suitable for an apprenticeship, and 

has since been awarded one. Three students 

were awarded an Xstrata School Bursary of 

$1,000 with work experience to commence in 

February 2011. 

Indigenous Traineeship Program 

2010 saw the commencement of an 

Indigenous Traineeship Program at EHM. 

The program provides Indigenous people 

with the skills necessary to gain employment 

in the mining industry. Under the guidance 

of a Coordinator – Indigenous Trainees, 

seven trainees participated in the program 

during the year, and a further five trainees 

commenced the program in January 2011. 


In 2008 all EHM employees were employed 

on individual staff contracts or Australian 

Workplace Agreements (AWAs). Following 

the changes in federal legislation in 2010, no 

new AWAs/ITEAs were entered into during 

the year. 

In 2009 EHM implemented an Employee 

Collective Agreement. Currently 41 

employees are employed under this Collective 

Agreement, and as current AWAs expire and 

employees transition to underground work, 

employees will move onto the Collective 

Agreement. All new non-staff employees are 

employed under the terms and conditions of 

the Collective Agreement. 

At all times we seek to be open and honest 

with our employees, promoting a culture of 

success and capability. 


Our people 

case study 

Transitioning our workforce through 

workplace planning and support 

For the past three years at Ernest Henry Mining, we have been 

consulting with our workers on Life of Mine planning, and will 

continue to work and communicate with employees and contractors 

as the site transitions to underground mining operations in 2011. 

Ernest Henry Mining’s open pit operation is 

scheduled for closure in August 2011 and 

the closure will affect approximately 200 

employees. A transition strategy is helping to 

ensure a smooth transition for all employees, 

either through redeployment within Ernest 

Henry Mining (EHM) and Xstrata, or within 

the mining industry. 

EHM’s transition initiatives include 

transitioning employees from open pit to 

underground roles; completion interviews; 

and offering roles internally. 

The move to underground mining presented 

an employment opportunity to open pit 

miners, but the two mining environments 

and practices are distinctly different. Many 

miners in this situation find they do not want 

to transition from open pit to underground 

mining, or when they attempt to transition 

they find working underground challenging. 

Despite this, EHM was still keen to progress 

this initiative as an option for open pit 

miners. 

By November 2009 EHM had identified which 

underground roles could be undertaken 

by open pit employees provided adequate 

training was undertaken. There were 40 

technician roles that could be created for the 

current open pit mine production teams to fill. 

In late 2009 expressions of interest for 

underground roles were called and interviews 

commenced in March 2010. All candidates 

underwent a rigorous interview process 

and were given the opportunity to go 

underground to experience conditions. 

More than 130 people applied for roles or 

enquired about underground employment. 

Following this, 74 employees were 

interviewed for underground roles, 66 

employees went underground for tours and 

49 employees were selected for available 

roles. To date, 31 employees have accepted 

employment in underground roles. 

We also conducted a survey of employees 

to establish how many were interested in 

working in EHM’s underground mining 

operation and if not, identifying what 

services they required to transition to other 

employment either within the business or 

externally. Completion interviews were held 

with those employees who would be leaving 

the business after closure to help finalise 

plans for redeployment options. 

Completion interviews were undertaken for 

all mining and professional staff affected 

by the closure. Around 200 interviews were 

held over a six month period from September 

2010. The interviews identified that most 

employees wanted to remain with Ernest 

Henry Mining or Xstrata if they were able 

to secure work in a similar role to the one 

they had previously undertaken for the 

business. We have commenced the process 

of identifying suitable opportunities for those 

employees interested in remaining with us. 

An additional workforce planning initiative 

involved offering internal roles to employees 

in the Mining Department, the first group 

of employees affected by the open pit 

mine closure. As roles in other areas of 

the business became available, they were 

advertised internally to attract those people 

affected by the pending closure. Four 

employees were successful in securing and 

transferring to different departments at EHM. 

During 2011 we will continue to offer 

our support to those employees leaving 

the company after closure of the 

open pit operation, including financial 

and superannuation counselling, and 

outplacement services including résumé 

preparation, job search advice, and interview 

practice. This assistance is provided to help 

people successfully move on to the next 

stage in their careers. 

Kenny Mountford, an EHM employee who is 

transitioning from open-pit to underground 

mining, said he was interested in gaining 

more skills and knowledge in a different 

area of mining. 

“I applied for an underground position 

so that I could gain more skills and 

knowledge in another area of mining 

at EHM,” said Kenny. 

“I enjoyed the physical work the training 

involved, and I also enjoyed the workmanship 

with the underground personnel. 

“The training taught me a lot about 

underground mining - new techniques and 

the way things are done in this area of 

mining. 

“EHM provided us with the option of 

transitioning to underground, and it’s a good 

opportunity for employees who are keen to 

do something new within the business and a 

chance to better themselves,” he said. 

Above: Kenny Mountford – Services Technician 

in the EHM open pit mine, completes training 

underground after expressing interest in taking 

up an underground role 


Our people 

“At present around 

23% of our 

employees reside in 

Cloncurry with the 

remainder being 

fly-in/fly-out from 

Brisbane, Townsville 

and Cairns.” 

case study 

Local initiatives to encourage 

workers to move to Cloncurry 

Ernest Henry Mining recently improved its local living incentives in a bid to 

encourage more workers to move to, and remain in, Cloncurry. 

Since 2007 Ernest Henry Mining (EHM) has 

seen a reduction in the number of employees 

living locally. Workshops were held early in 

2010 to develop initiatives to counteract this 

growing trend. As a result, improved local 

living incentives were introduced. 

EHM’s local living allowance increased 

significantly in September for all Cloncurrybased 

employees. 

EHM also introduced an accommodation 

allowance for people in supervisory and 

managerial roles who were not living in 

company-provided housing. 

“We believe these improved incentives will 

help us to retain more of our local workforce 

and attract more employees to live in 

Cloncurry,” said Myles Johnston – General 

Manager Ernest Henry Mining. 

“At present around 23% of our employees 

reside in Cloncurry with the remainder being 

fly-in/fly-out (FIFO) from Brisbane, Townsville 

and Cairns. 

“As we transition to underground mining 

and magnetite processing we are determined 

to continue balancing FIFO and local 

employment so we can minimise the impacts 

of FIFO on our local community. 

“Since the incentives were introduced we 

have had two FIFO employees request to 

relocate to Cloncurry. There have also been 

a number of queries from other people 

considering moving to town and two 

locally-based employees have cancelled their 

requests to become FIFO,” he said. 

Besides monetary incentives, EHM has also 

changed its FIFO eligibility period for certain 

roles from two to three years. This is the 

amount of time an employee must work 

in their role before being eligible to 

become FIFO. 

Local employment rates demonstrate that 

we have managed to stabilise local 

employment since the introduction of the 

increased allowance. From June 2007 to 

June 2010, local employee numbers reduced 

from 171 to 93, but since then we have 

seen a steady increase to 110 employees 

in January 2011 and we will continue to 

review these numbers to ensure these figures 

remain stable. 

EHM announced this change and its new 

incentives to around 40 members of the 

public at a Community Information Session 

held in Cloncurry in October. 

Mayor of Cloncurry Andrew Daniels stood 

up during the session’s question time to 

thank EHM for its commitment towards local 

employment and its ongoing support for the 

Cloncurry community. 

“These changes are a huge step in the right 

direction so we can attract more people to 

town. The more people we have living and 

spending here, the better for Cloncurry,” 

Andrew said. 

Myles Johnston said that a coordinated 

approach is required to improve the attraction 

and retention of people to Cloncurry. 

“We will continue to work with Cloncurry 

Shire Council and the community as a 

whole to implement initiatives that will help 

Cloncurry to grow and prosper,” he said. 

Peter Watling – Shutdown Coordinator at 

EHM, has requested to move to Cloncurry 

after flying in and out of Brisbane for more 

than 13 years 


Our people 

Our people 


Gerry Figg – Project mechanical supervisor, Townsville operations 

Employment 

In 2010, the Townsville operations provided 

jobs for 258 people (176 employees and 82 

contractors). The rate of voluntary employee 

turnover in 2010 averaged 10.5% for the 

copper refinery and 5.8% for the port 

operations, which were both well below the 

average voluntary turnover of 17.6% reported 



The benefits provided to permanent 

employees at the Townsville operations 

that are not provided to casual employees 

include: paid leave provisions, external/tertiary 

education assistance, higher rates of 

superannuation, disability cover and 

salary continuance. 


The Townsville operations are committed to 

employing local residents and the majority of 

our workforce is employed on a permanent 

basis. We have a permanent workforce of 

172 people and the majority of these are 

from the Townsville-Ayr region. 


The Townsville operations invested over 

$780,000 on training during 2010, an 

average of $4,406 per employee. This is a 

substantial increase from 2009, and ensured 

employees received improved levels of safety 

and health competency training to perform 

their work activities throughout 2010. 

The Training Advisor worked closely with 

line management, supervisory staff and key 

personnel throughout the year to identify 

training requirements. Our training systems 

continued to focus on delivering competencybased 

training for all workers. 

A communication strategy was implemented 

in 2010 to help achieve our training targets 

and to increase training awareness across the 

Townsville operations. This involved regular 

communication through weekly and monthly 

reporting, regular announcements via email 

and the intranet, and also through verbal 

means, resulting in an increased awareness 

of training by employees. In support of this 

strategy, a significant increase in training 

sessions with more flexible training times 

was offered. 

“The Townsville 

operations are 

committed to 

employing local 

residents and 

the majority of 

our workforce is 

employed on a 

permanent basis.” 


Our people 


Although the 2010 target of >85% 

compliance to mandatory training for both 

the copper refinery and port operations was 

not achieved, a significant improvement 

was recognised with an overall result of 

>80% compliance for the copper refinery, 

as compared to 69% achieved in 2009, and 

at our port operations we recorded a result 

of 71% compliance, up from 65% recorded 

in 2009. 

Bursary Program 

The Xstrata North Queensland Bursary 

Program was successfully introduced to 

the Townsville operations in 2008. In 2010 

the program was temporarily put on hold 

due to resourcing issues. There are plans to 

reintroduce the program during 2011, with 

the Townsville operations committed to 

awarding two $1,000 bursaries. 


In 2010, 43.4% of our employees were 

covered by Collective Bargaining Agreements, 

and 56.6% were covered by either Australian 

Workplace Agreements (AWAs) or Common 

Law contracts. The Townsville copper 

refinery’s Collective Agreement was voted on 

in 2009 and ratified by Fair Work Australia 

in 2010. Negotiations commenced on a new 

Enterprise Agreement for the Townsville 

port operations in 2010, with negotiations 

expected to be concluded early in 2011. 

Employees currently employed under AWAs 

will progress to the Collective Agreement 

on expiry of their AWAs. All new non-staff 

employees will be employed under the 

Collective Agreement. 

In 2010 the Townsville operations’ SD 

Workforce Committee comprised 50% 

employees and 50% management which 

included line supervisors, superintendents and 

managers, and the Committee met monthly. 

Employees by employment contract 

Copper refinery Port operations Total 

Permanent 139 33 172 

Temporary/Fixed term 3 1 4 

Total 142 34 176 

Employees by employment type 

Copper refinery Port operations Total 

Full time 142 34 176 

Part time 0 0 0 

Total 142 34 176 

Turnover breakdown by age and gender 

Copper refinery 

Port operations 

Age and gender Female Male Total Female Male Total 

Under 30 1 6 7 0 0 0 

30 to 50 4 7 11 0 0 0 

Over 50 0 6 6 0 1 1 

Total 5 19 24 0 1 1 

Average training hours by employee type 

Average hours training per 

employee/year 

Senior Management 

Workforce 

10 72 

Average cost per employee $4,839 $4,839 

Ratio of men and women 



Women Men Women Men 

Senior Management 0% 100% 0% 0% 

Workforce 11% 89% 9% 91% 

Employees by role type and gender 



Female Male Total Female Male Total 

Executive Management 0 0 0 0 0 0 

Senior Management 0 1 1 0 0 0 

Management 2 8 10 0 4 4 

Supervisors, administration, 

technical 

Operational, production, 

maintenance 

10 26 36 3 8 11 

3 91 95 0 19 19 

Total 15 126 142 3 31 34 

Employees by age and gender 



Female Male Total Female Male Total 

Under 30 6 11 17 1 3 4 

30 to 50 6 62 68 1 17 18 

Over 50 3 54 57 1 11 12 

Total 15 127 142 3 31 34 


Case study 

Job Role Criteria greatly assists 

the injury management process 

Originally developed in 2005 to meet an emerging demand from the 

working population, the Job Role Criteria tool was designed to assist 

health and rehabilitation staff during their assessments, observations, 

treatment and considerations in relation to the daily occupational 

activities of employees. It has since become a proactive injury 

management tool which details the functional requirements of 

all roles within Xstrata’s north Queensland operations. 

“This is a great tool for the recruiting process, 

as it’s just not possible for one person to 

know all the tasks and role requirements for 

every single job across our north Queensland 

sites,” said Leanne. 

“The program is easily accessible on our 

intranet site, and gives us an instant view 

of what’s required physically to do a 

particular job, which has proved really useful 

throughout the year,” she said. 

During 2009 the Job Role Criteria tool 

evolved into an interactive web-based 

resource that provided an accessible, 

useable, and dynamic presentation of key 

information that medical, rehabilitation, and 

operational staff could use throughout the 

injury management process. The role library 

grew to over 200 roles and there was an 

expansion of the evidence base to include 

Thermal Work Limit, Manual Task Risk 

Matrix, Whole Body Vibration data, and the 

review of 17 areas and roles across Xstrata’s 

north Queensland operations. 

The Job Role Criteria tool was rolled 

out in 2010 through presentations to 

management, safety, health, training, human 

resources and medical staff, by the North 

Queensland Safety and Health department. 

The web-based program was made available 

on the Xstrata Mount Isa Mines intranet, 

making it highly accessible, user friendly, 

and able to be updated continually. The 

program provides access to nearly every 

job on site. Each job contains a role 

description, its physical requirements, the 

environmental context of role participation 

and cognitive performance components for 

task participation. In addition, the tool was 

developed as a transportable USB-based 

resource to allow access and interaction by 

remote and travelling staff and employees. 

Brad Pritchard – Occupational Therapist at 

Xstrata Mount Isa Mines, and Lyndonna 

Ross – Graduate Occupational Therapist, said 

it had proved a very useful tool across the 

company’s north Queensland sites in 2010. 

“The Job Role Criteria Tool provides a 

comprehensive and rich evidence base 

that allows external medical specialists and 

internal health and rehabilitation people to 

make a more informed decision about future 

goals and the suitability to provide assistance 

in a return to work process,” said Brad. 

“The program has the potential to be 

used in other departments such as the 

Safety Department during workplace risk 

assessments, and human resources during 

recruitment, not just those based on 

rehabilitation and other medical services,” 

he said. 

Leanne Ryder – Senior Human Resources 

Advisor, said the program had been very 

useful for Human Resources. 

Since being rolled out in 2010 the Job 

Role Criteria tool has made notable 

improvements to: 

■■ 

■■ 

■■ 

■■ 

Pre-employment processes – by providing 

an objective measure from which to 

assess applicants 

Injury Prevention – by highlighting and 

addressing hazardous tasks and/or 

work practices 

Injury Management processes – by 

facilitating appropriate tasking, and 

providing ultimate functional goals 

for rehabilitation 

Training and Human Resources functions. 

Overall, the tool has assisted communication 

and rehabilitation program development 

between health, injury management and 

workplace management and area leaders. 

It has provided a common language and 

reference point, assisting in planning, 

developing and assessing rehabilitation 

goals and operational risk. 

The Job Role Criteria tool assists health and 

rehabilitation staff to identify the functional 

requirements of all roles on site 


Hugh Dickinson-Jones plays on new equipment at Cloncurry Kindergarten purchased under the XCPPNQ 


Sustainable communities 

We contribute to the sustainable social and economic development 

of communities near our operations. 

Xstrata Copper seeks to improve the quality 

of life of communities near its operations. We 

believe that contributing to the development 

of sustainable communities and engaging 

with our stakeholders in two-way, open 

dialogue enhances our corporate reputation 

and is crucial to maintaining our social licence 

to operate. 

We identify our communities and other 

stakeholders at the earliest possible stage 

and maintain an active, transparent and 

culturally appropriate engagement with 

them throughout the life cycle of our 

operations. In this way, we seek to establish 

mutually beneficial relationships based on 

active engagement. 

We register, monitor and address questions 

and complaints from communities. We 

establish fair and equitable processes for 

engagement with Indigenous and local 

communities, seeking, where relevant, their 

prior and informed consent and respecting 

their culture, customs, interests and rights. 

Our Corporate Social Involvement (CSI) 

program in north Queensland includes the 


North Queensland (XCPPNQ) and a 

sponsorships and donations program. 

Through the XCPPNQ, we seek to develop 

partnerships with the community in the areas 

of art and culture, education, enterprise and 

job creation, the environment, social and 

community development and health. These 

partnerships contribute to the sustainable 

development and local capacity building of 

communities. 

We also support a range of other community 

initiatives and major events in these areas 

through a sponsorship and donations 

program, and provide significant in-kind 

support to community groups through the 

provision of goods, materials or personnel 

time throughout the year. 

Xstrata Copper also supports local businesses 

and employs local people in a bid to 

strengthen local and regional economies. 

Key community challenges for the Xstrata 

Copper North Queensland Division include: 

■■ 

■■ 

■■ 

Building community capacity to improve 

social services and facilities 

Ensuring Indigenous cultural heritage is 

not affected by our mining operations 

Increasing emphasis on and awareness 

of our programs and their long-term, 

beneficial impacts on the development 

of our communities. 

Stakeholder engagement 



Division encourages dialogue with our 

stakeholders and integrates stakeholder 

feedback into business planning and strategy. 

Stakeholder feedback is used to identify 

and manage risks and opportunities, guide 

our strategy and business activities, protect 

and develop our corporate reputation, 

strengthen stakeholder relationships, manage 

expectations, respond to concerns and share 

our plans for the business. 

We systematically identify our external 

stakeholders at a divisional, site and 

operational level on a regular basis. Proactive 

communication occurs with external 

stakeholders who are concerned with or 

affected by our sustainable development 

performance. Stakeholder engagement is 

conducted in an equitable and culturally 

appropriate manner with the maximum 

transparency that is commercially possible. 

Sustainable Development (SD) strategies are 

reflected in consultation with relevant internal 

and external stakeholders. Annual SD plans 

are developed and implemented at divisional 

and site levels in consultation with identified 

internal and external stakeholders. 

Through internal assessments of key groups, 

our membership of various associations, and 

engagement with interested parties, the 

Xstrata Copper North Queensland Division 

has identified its stakeholders, which are 

outlined throughout this section. 

Community feedback 

Our engagement program is critical to our 

understanding of material SD issues. As 

part of our commitment to sustainable 

development and ensuring we identify and 

respond to community needs, we conducted 

the Xstrata North Queensland 360° Key 

Stakeholder Survey in 2010. This survey is 

conducted every two years. 

An independent research firm conducted 

interviews with 64 stakeholders in Cloncurry, 

Mount Isa, Townsville and Bowen asking 

questions about their opinions of Xstrata’s 

community support programs, view of major 

social and environmental issues facing the 

community, the dissemination of information 

from Xstrata’s north Queensland operations 

and the best way for Xstrata to communicate 

news and information to local residents. 

Survey participants included 22 stakeholders 

in Mount Isa, 12 in Cloncurry, 16 in 

Townsville and 14 in Bowen. From this 

research the following areas of concern 

were identified: 

■■ 

■■ 

■■ 

■■ 

■■ 

The economy, outlook for the future 

and the possible impact of a planned 

mining tax on Xstrata’s operations and 

investment in north Queensland 

The lead issue and the impact negative 

publicity could have on attracting 

prospective workers and external 

businesses to Mount Isa if they perceive 

there is a health risk due to lead in the 

environment 

Employment opportunities for young 

and Indigenous people 

The impact of fly-in/fly-out (FIFO) 

workers on the communities of 

Mount Isa and Cloncurry 

Infrastructure access and costs. 



An action plan will be developed to 

address issues and concerns raised, and 

feedback from the survey will also be used 

to review and refine, where appropriate, 

our operational responses to these issues 

in 2011. We look forward to responding to 

residents’ concerns at our north Queensland 

operations as part of our commitment to 

continuous improvement. 

In addition, in 2011 we will undertake our 

biannual Community Attitudes Survey of 

more than 1,200 local residents across our 

north Queensland communities. Combined 

with the stakeholder feedback, we will have a 

full picture of our social involvement planning 

requirements for 2012. 

Corporate Social 

Involvement (CSI) program 

Xstrata Copper commits up to 1% of its 

pre-tax profit each year to fund CSI initiatives 

and activities in the communities in which 

we operate. 

From these funds we run the successful 


North Queensland (XCPPNQ). Established in 

2004, the program reflects our belief that 

local communities should benefit from our 

operations, both in the short and long term. 

Total CSI expenditure by community – 


36% MountIsa 

(MountIsa 

Minescopper 

operations) 

50% Cloncurry 

(ErnestHenry 

Mining) 


(Townsville 

operations) 

The program commenced in 2005 with 

$4 million and supported 34 community 

initiatives in the communities of Mount 

Isa, Cloncurry, Townsville and Bowen. The 

program has since expanded to support 

more than 60 initiatives and several social 

infrastructure projects with a total program 

value of more than $16.4 million through 

to the end of 2010, and is delivering real 

improvements to our north Queensland 

communities. 

The increase in XCPPNQ funding since 2009 

is a result of the social infrastructure projects 

that are supported through this program that 

were not previously reported on under this 

program in our sustainability report. From 

2008–10 we contributed $5.5 million towards 

several key social infrastructure projects in our 

north Queensland communities. 

In addition to the XCPPNQ, the Division 

invested more than $614,000 in 2010 

on sponsorships, donations and in-kind 

community support initiatives. Please see 

the pie graphs below. 

Community grievances 


Division records, monitors and addresses 

community complaints, takes corrective 

action where appropriate, and provides 

feedback to complainants. 

Total CSI expenditure by type – 


11% Enterpriseand 

jobcreation 

10% Education 

12% Environment 

50% Socialand 

community 

development 

12% Health 

5% Artandculture 

In 2010 the Division received 124 community 

complaints, and all of these were received 

in Mount Isa. All complaints were handled 

by our Xstrata Mount Isa Mines Community 

Relations team and were responded 

to promptly. Refer pie graph below for 

breakdown of complaints by type. 

Indigenous rights and 


heritage 


Division respects the traditional rights of 

Indigenous people and supports Aboriginal 

cultural heritage and customs. It structures 

its engagement activities in a manner that is 

culturally appropriate and facilitates the active 

involvement of Indigenous peoples, including 

traditional custodians in consultation, 

including capacity-building initiatives, where 

necessary or appropriate, and welcoming 

ceremonies as part of our approach to 

community activities. 

Mine closure 

Mine closure planning is integral to 

Xstrata Copper’s approach to sustainable 

development whether the life cycle 

of projects are short or long term. As 

a requirement of our Environmental 

Management System, the Xstrata Copper 

North Queensland Division maintains closure 

plans based on Xstrata’s Closure Facility 

guideline, which includes requirements for 

socio-economic considerations and requires 

sites to maintain and continually review 

site closure plans for sustainable, stable, 

non-polluting final mined landforms. In 

these reviews the sites must check for the 

adequacy and effectiveness of their existing 

approaches to closure and improve them 

through regular review of identification and 

implementation of best practice research and 

monitoring programs. Further details on our 

north Queensland operations’ mine closure 

plans are outlined in this section. 

Sponsorships, donations, in-kind community 

support – Xstrata Copper North Queensland 

XCPPNQ expenditure by type – 


Total community complaints by type – 



jobcreation 

13% Education 


60% Socialand 

community 

development 

12% Health 



jobcreation 

8% Education 


45% Socialand 

community 

development 

12% Health 


36% Fumes 

1% Noise 

57% Falloutdamage 

6% Other 



Case study 

Mount Isa Diabetes Clinic 

continuing to make a difference 

More than 6,000 free consultations have been provided to people 

with diabetes in the Mount Isa region since the Mount Isa Diabetes 

Clinic commenced in 2005 (previously the Mount Isa Diabetes 

Service). This has significantly alleviated pressure on the region’s 

healthcare system by reducing the number of diabetes patients seen 

regularly by local doctors and health clinics. 

Xstrata’s partnership with Queensland Health 

through the Xstrata Community Partnership 

Program North Queensland is supporting 

this free community service that targets 

prevention, early intervention, treatment 

and self management of diabetes. The clinic 

treats adults and youth from Indigenous and 

non-indigenous backgrounds, children with 

diabetes and pregnant women suffering from 

gestational diabetes. 

Diabetes is Australia’s fastest growing chronic 

disease, and it is particularly prevalent among 

Indigenous Australians, where the incidence 

rates of diabetes have more than doubled 

over the past decade. Diabetes is a serious 

concern in the Mount Isa Health Service 

District; while 8.7% of the District’s nonindigenous 

population have diabetes, more 

than 14% of the Indigenous population 

are sufferers, and this is compared with 

a national average of less than 5%. This 

highlights the demand for a local, dedicated 

diabetes management clinic to help sufferers 

manage their disease and avoid the serious 

complications that can arise from it. 

The clinic employs two full-time clinical 

nurse consultants (diabetes educators). 

They conduct local clinics in Mount Isa and 

also provide an outreach service, where 

they regularly visit outlying Indigenous 

communities to provide diabetes education 

to people who would not otherwise 

have the resources to travel to Mount Isa 

for treatment. 

The service’s diabetes educators provide 

specialist diabetes management advice to 

general practitioners and healthcare workers 

in Mount Isa, and conduct regular diabetes 

and nutrition awareness sessions at local 

schools, community groups, and at events 

including the Xstrata Mount Isa Mining Expo. 

The Mount Isa Diabetes Clinic has shown 

some very positive results in improving the 

health of those people living with diabetes. 

Statistics from the clinic show that following 

treatment and advice, clients have an average 

reduction in blood glucose levels of 1.4%, 

equating to diabetes complications being 

reduced by 33.6%. 

Xstrata has supported the service for six 

years with a total funding contribution 

of $360,000 over this period. From 2011, 

Xstrata will continue to provide support 

for the clinic through its donations and 

sponsorships program. 

Kerry O’Brien – Mount Isa Diabetes Clinic 

Outreach Educator, discusses nutrition with 

Frances Page 





Eli Vincent – Environmental Technician, assists Barkly Highway State School students plant the garden they won as part of Xstrata’s sponsorship of Green Week 




identify its key stakeholders as: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

residents of Mount Isa 

Xstrata employees and contractors, 

unions and other organisations that 

represent these groups 

Traditional Custodian groups in north 

west Queensland, including the 

Kalkadoon 

business partners, including joint venture 

partners, suppliers and customers 

local, state, and national governments 

and their agencies 

inter-governmental bodies and 

organisations 

local schools 

local, regional, national, and international 

media 

non-government and community-based 

organisations 


North Queensland (XCPPNQ) partners. 

Engagement with stakeholders 

in 2010 included: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

Distributing the 2009 Xstrata Copper 

North Queensland Sustainability Report 

and 2009 Xstrata Mount Isa Mines 

Sustainability Report to employees and 

other key stakeholders 

Conducting three Community Information 

Sessions to share information on our 

operations and provide a forum for 

feedback from community members 

Conducting a 360° Key Stakeholder 

Survey to gain feedback on issues of 

importance to them and determine where 

best to direct our future efforts 

Launching Mount Isa Mines website 

www.mountisamines.com.au 

Launching a freecall Community 

Feedback Hotline 1800 982 982 

Conducting a publications survey 

Conducting two Supplier Forums to share 

information on Xstrata’s business and for 

suppliers to learn about our SD practices 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

Holding two Business Stakeholder 

Briefing Sessions for local business 

owners and associated groups regarding 

the Federal Government’s proposed 

Resources Super Profits Tax and the 

suspension of Ernest Henry Mining’s shaft 

underground mine project and Xstrata’s 

regional exploration program 

Mailing 10 issues of the Mine to Market 

newsletter to employees and stakeholders 

Contributing articles to, and advertising 

in, the North West Star, and facilitating 

interviews with local radio outlets to keep 

community members informed about our 

operations 

Hosting four anniversary dinners for longterm 

employees celebrating 20, 30, and 

40 years of service 

Conducting regular surface tours of the 

mining operations in conjunction with 

community tourism organisations 

Visiting local schools to explain mining 

and environmental processes to students 

studying mining units in science 

Hosting operational site visits for visiting 

Australian and overseas dignitaries 

Conducting community, employee and 

multi-stakeholder forums and workshops 

Organising regular customer, business 

partner and supplier meetings 



The Xstrata Apprenticeship Program 

continued to expand with a further 50 

apprentices employed in 2010 making 

the program the largest of its kind in 

north Queensland. 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

Offering a freecall Ethics Line and other 

formal grievance mechanisms, including 

a dedicated freecall community feedback 

1800 telephone number 

Continuing our annual safety calendar 

competitions to engage children of 

employees of the Mount Isa Mines 


Publicising the Lead Pathways Study 

through local media and updates in Mine 

to Market 

Participating in regular meetings with our 

XCPPNQ partners 

Providing event management assistance 

for various community events 

Participating in major local events such as 

the annual Mining Expo, Rodeo, Fishing 

Classic, NAIDOC Week celebrations and 

employment expos. 

In addition, members of our senior 

management team and employees in Mount 

Isa represented Xstrata Copper on boards 

including the Mount Isa Water Board; Mount 

Isa Chamber of Commerce; Laura Johnson 

Home; and local committees including Rotary, 

the Mount Isa Community Development 

Association, and School Parent and Citizen 

Committees. They also actively participated 

in community development organisations, 

coached and played in sporting teams and 

attended local and regional events. 


The Community Attitudes Survey (CAS) 

conducted in 2009 identified several key 

areas of concern facing the community. 

During 2010, we continued to address the 

community’s concerns: 

Air pollution 

Xstrata Mount Isa Mines maintains a robust 

air monitoring program including 10 sulphur 

dioxide (SO 2 ) monitors and five dust samplers 

to monitor emissions in Mount Isa. We are 

also working on improving the capture and 

treatment of smelter emissions through 

the Smelter Emissions Project. During the 

year, several operational improvements 

were implemented to further reduce 

smelter emissions. 

Unemployment 

Above: Two members of 

the University of New South 

Wales field research team 

plaster an arm bone of a 

Diprotodon discovered in 

June 

Left: Myuma trainee 

Shannon Coats learning to 

use the dumpy level 

We are maintaining our employee levels at 

the Mount Isa Mines copper operations, 

and delivering XCPPNQ initiatives addressing 

enterprise and job creation (refer to the 

XCPPNQ table on page 64 for details). 

Future of the mine and long-term 

viability of the town 

Xstrata Mount Isa Mines is committed 

to investing in CSI activities including the 

development of social infrastructure in Mount 

Isa (refer to the XCPPNQ table for social 

and community development initiatives). In 

2010 we contributed $2 million towards the 

construction of a new Dental Health Building 

and training centre. This social infrastructure 

initiative forms part of the Queensland 

Government’s $65 million redevelopment of 

the Mount Isa Hospital. 

Lead in blood levels in Mount Isa 

Many residents were concerned with the 

issue of blood lead levels. Over the past 

six years, Xstrata has invested more than 

$275 million in over 220 environmental 

initiatives to minimise potential impacts of 

our operations on the environment and 

local community. We continue to support 

the Living with Lead Alliance to deliver 

community education programs concerning 

living safely with lead in Mount Isa. We 

also continue to offer free, independent 

and confidential blood-lead testing through 

Queensland Medical Laboratory for all 

community members. 

During 2010, the University of Queensland 

progressed Phases Two (Air) and Three 

(Water) of the independent Lead Pathways 

Study following the July 2009 release 

of Phase One (Land) data that was 

independently peer reviewed. The reports 

for both Phase Two and Phase Three will be 

released and results communicated to the 

community during 2011. To date, Xstrata 

Mount Isa Mines has invested in excess of 

$30 million on a Smelter Emissions Project to 

further improve the capture and treatment of 

emissions from its lead and copper smelters. 

In early 2011, a court proceeding was 

commenced on behalf of a claimant against 

Mount Isa City Council, the Queensland 

Government and Xstrata Mount Isa Mines 

seeking damages for alleged negligence. Our 

operations have never breached regulatory 

limits for respirable lead at any air monitor 

in the Mount Isa community since Xstrata’s 

acquisition of Mount Isa Mines in 2003 and 

Xstrata is prepared to answer the claim 

in court. 






operations supported 10 initiatives with 

a program value of $280,000 under the 

XCPPNQ. See page 64 for further information 

on our partnerships. This is a significant 

reduction to our 2009 XCPPNQ contribution 

of $2.7 million; however last year’s figure 

was a result of two large social infrastructure 

projects totalling $2.25 million being 

supported through the program. 

In addition to the XCPPNQ, we invested 

$326,548 in 2010 on sponsorships, donations 

and other community initiatives including 

support of many major community events 

and significant in-kind support to community 

groups through provision of goods, materials 

or personnel time. Please refer to the pie 

graphs on page 63. 


Xstrata Mount Isa Mines operates a 24-hour 

community feedback hotline to manage 

complaints and enquiries and to provide 

feedback to callers. In late 2010, we launched 

a freecall Community Feedback Hotline 

1800 892 892 and a dedicated feedback 

page on the Mount Isa Mines website 

www.mountisamines.com.au to further 

strengthen the link between our operation 

and the community. 

In 2010, 53 complaints relating to our copper 

operations were received in Mount Isa and 

71 fallout damage claims were made. The 

majority of our complaints related to fumes 

and in each case complainants were advised 

of the current Air Quality Control (AQC) 

Centre status and any action being taken. 

The AQC Centre closely monitors emissions 

and automatically closes down the smelter if 

emissions approach regulatory limits. Please 

refer to the pie graph on page 63. 



heritage 


facilitate the active involvement of Indigenous 

peoples such as the Kalkadoon through 

consultation, including capacity building 

initiatives where necessary or appropriate. 

Our Indigenous Affairs Policy has taken the 

position that identification of local lands 

with concern to Indigenous peoples shall 

be based on the Native Title Claims Register 

administered by the Australian Government’s 

National Native Title Tribunal (NNTT). 

“We have continued to 

work collaboratively 

with the Kalkadoon 

people to improve 

operational procedures 

to ensure the protection 

and preservation of 


heritage sites.” 

Any person carrying out an activity has 

an obligation to take all reasonable and 

practicable measures to ensure the activity 

does not harm Aboriginal cultural heritage. 

To ensure compliance with this obligation, 

our internal procedures require us to seek the 

engagement of the identified Aboriginal Party 

in the planning, conducting and reporting 

of Aboriginal Cultural Heritage Surveys prior 

to undertaking an activity that may disturb 

Aboriginal cultural heritage within the site 

of operations. 

We have continued to work collaboratively 

with the Kalkadoon people to improve 

operational procedures to ensure the 

protection and preservation of Aboriginal 

cultural heritage sites of significance on our 

Mount Isa mining lease. 

In 2010 we continued to assess all new 

mining and project areas for cultural 

significance, such as archaeological and 

sacred sites, prior to disturbance and in 

consultation with the Kalkadoon people. 

Both parties worked together during 2010 

to develop strategies to avoid impacts where 

possible and to ensure that both parties 

have access to important sites prior to any 

activities being undertaken by Xstrata Copper 

on such sites. 

No incidents of a breach or unauthorised 

disturbance of cultural heritage sites or 

artefacts were reported in 2010. However, in 

July 2010, Xstrata Mount Isa Mines was fined 

$80,000 in respect of inadvertent damage to 

cultural heritage objects while a contractor 

worked to upgrade a road in Mount Isa 

in 2008. 

Draft internal Aboriginal Cultural Heritage 

and Land Clearance procedures had been 

developed in consultation with the Kalkadoon 

people and were being trialled when the 

incident occurred. The procedures were 

reviewed in the light of the incident and are 

now in place. We take the issue of protecting 

Aboriginal cultural heritage very seriously and 

deeply regret this incident. 

Xstrata Mount Isa Mines has a good working 

relationship with the Kalkadoon people and 

continued to work collaboratively with the 

Kalkadoon people to improve operational 

procedures to ensure the protection and 

preservation of Aboriginal cultural heritage 

sites of significance in 2010. 

STEPers 

In November 2008, the Mount Isa Mines 

copper operations signed an inaugural 

Structured Training Employment Project 

Employment Related Services (STEPers) 

contract with the Commonwealth 

Government’s Department of Employment, 

Education and Workplace Resources (DEEWR). 

This joint initiative with Jobfind Centres 

Australia and DEEWR to increase job 

opportunities for Indigenous people at our 

operations continued throughout 2010. 

During the year a new, expanded program 

the Indigenous Employment Program (IEP) 

replaced STEPers. The program builds on 

existing program strengths and includes more 

support for small and medium businesses 

employers, including pre-employment training 

and mentoring. IEP will target regional 

areas and specific industries such as the 

mining industry that are experiencing labour 

shortages, as well as provide assistance 

to develop plans to recruit and retain 

Indigenous employees. 

A total of 15 traineeships were undertaken 

in 2009 with full-time employment 

opportunities offered to nine participants 

during that year. Four indigenous trainees 

completed their traineeship in 2010 and 

have obtained full-time positions. An 

Indigenous trainee that obtained a full-time 

position post-STEPers has been successful 

in obtaining an apprenticeship for 2011. 

Four Indigenous trainees who went through 

the pre-employment program were offered 

traineeships in 2010 and will commence 

in 2011. 

Aboriginal Cultural Heritage Survey 

Outcomes 2010 

Number of Aboriginal Cultural 

Heritage Surveys completed 

11 

Total area covered (hectares) 1,360 

Findings 2010 

Aboriginal artefacts 6 

Sites of significance 1 



National Indigenous Cadetship 

Support Program (NICS) 


operations awarded one NICS Program 

placement to a local Indigenous tertiary 

student, and additional placements will be 

advertised in early 2011. This program is 

supported by DEEWR. 

Creating business opportunities 

After being awarded the contract in late 

2009, Kalkadoon Community Pty Ltd 

continued to manage the two kiosks at our 

copper operations, resulting in the direct 

employment of nine Indigenous people to 

provide a continuous seven day, 15 hour 

service to our employees and contractors. 

Kalkadoon Community Pty Ltd were also 

awarded several fencing contracts and 

completed fencing work at Xstrata Zinc’s 

Handlebar Hill open cut mine, the Marie 

Kruttschnitt Building and vacant land located 

adjacent to the Mount Isa RSL which forms 

part of the Mount Isa Mines lease. Kalkadoon 

Community were also awarded the contract 

for conducting weed control works on site. 

Above: Spinifex State 

College Year 9 students and 

Principal Denise Kostowski 

in the new Spinifex Junior 

Campus future classroom 

Left: The Mount Isa 

community turned up 

in force at the Xstrata 

sponsored Lake Moondarra 

Fishing Classic held in late 

October 

Creating capacity 

Members of Xstrata Copper’s senior 

management team in Mount Isa continued 

their involvement in the Queensland 

Resources Council’s North West Queensland 

Indigenous Resource Industry Initiative 

(NWQIRII) during 2010. The aim of the 

initiative is to develop strategies to increase 

engagement between the Indigenous 

community and businesses in the areas 

of employment, training and business 

development. One outcome in 2010 was 

an agreed collaborative approach to the 

development of an Indigenous mining sector 

employment passport that is expected to be 

implemented in 2011. 

Mine closure 

During 2010, the closure cost estimate was 

reviewed and updated by a third party civil 

engineering consultant. The update of the 

closure estimate included the consideration 

of more current earthworks rates as well as 

the inclusion of a contingency allowance. The 

latest estimates were supplied to regulating 

authorities in October 2010 for comment. 

Furthermore, a Closure Planning Working 

Group was established with representation 

from all departments of the organisation. 

The working group identified gaps associated 

with closure planning and developed action 

plans to address these gaps in 2011. 




jobcreation 

11% Education 


29% Socialand 

community 

development 

25% Health 



support – Mount Isa Mines copper operations 


jobcreation 

12% Education 


48% Socialand 

community 

development 

20% Health 





jobcreation 

10% Education 


7% Socialand 

community 

development 

31% Health 


Total community complaints by type – 


36% Fumes 

1% Noise 

57% Falloutdamage 

6% Other 





North Queensland projects 

Enterprise and job creation 

Project Partner Description Timeframe 2010 outcomes 

North West 


Indigenous Catholic 

Social Services 

traineeships 

Dugalungi Civil 

Construction 

and Mining Skills 

Prevocational Program 

Education 

North West 


Indigenous Catholic 

Social Services 

(NWQICSS) 

Myuma Pty Ltd 

Traineeships for disadvantaged 

Indigenous students 

Fund places for Indigenous 

participants in two separate 

13-week live-in programs, 

and funds to support the 

expansion of training and 

mentoring services delivered 

during and between programs 


Junior Future 

Classroom 

Spinifex State College 

Social and community development 

Develop a media classroom for 

students to gain exposure to 

multimedia technology 


Mount Isa Safe 

Community Project 

Brilla Brilla Breakfast 

Program and 

community centre 

upgrade project 

Riverbed Action 

Group Burke Street 

Interventions Centre 

Mount Isa Safe 

Community Action 

Team (MISCAT) 

NWQICSS 

NWQICSS 

Assist MISCAT’s application to 

the World Health Organisation 

to gain endorsement of Mount 

Isa as an international Safe 

Community 

Fund a daily breakfast program 

at the Brilla Brilla Community 

Centre at Yallambee Reserve, 

and assist with improvements 

to the Community Centre’s 

kitchen and laundry 

Provide ongoing diversionary 

initiatives to combat issues 

associated with alcohol and 

substance abuse 

2008–10 Two new Indigenous trainees commenced 

traineeships in Community Services and have been 

placed across the NWQICSS network to work and 

develop skills needed to complete competencies. 

Both trainees completed their Certificate IV in 

Workplace Trainer and Assessor to become trainers 

for other NWQICSS staff. 

2008–10 Myuma conducted two 13-week training 

programs at the Dugalungi camp in Camooweal 

in 2010, each of which attracted 30 Indigenous 

participants. 

Of the 60 participants who commenced the course 

57 successfully graduated, with most securing 

full-time employment. In total, 33 competencies 

were delivered to each participant over the course 

of the program. 

2008–10 Spinifex Future Classroom has been fully functional 

since early 2009. 2010 funding enabled the school 

to update and improve the technology resources 

and continue subscription to important educational 

software. 

2007-09 Due to a delayed commencement to the program 

in 2007, the partnership continued in 2010. 

During the year MISCAT and the St George 

Institute facilitated the first community-based short 

course in Injury Prevention and Safety Promotion 

and held an Abstract Writing Workshop. MISCAT 

worked closely with a number of action partner 

groups and participated in community events to 

promote the safety programs implemented under 

the safe community banner. 

2008–10 Healthy breakfasts were supplied to an average 

of 15–20 children five days a week, and around 

20 lunches were prepared daily. Please refer to 

the case study on page 67 for an update on this 

partnership. 

2008–10 During 2010 the Interventions Centre ran a 

16 week Alcohol and Other Dependencies (AOD) 

program with eight clients graduating from 

the program. 

All graduate clients are participating in follow up 

aftercare programs or have an open offer to enter 

this aftercare program. 



Health 


SimMan and SimBaby 

artificial simulators 

(medical mannequins) 

Diabetes Centre and 

education program 

Mount Isa Centre for 

Rural and Remote 

Health; and the Royal 

Flying Doctor Service 

(RFDS) 

Queensland Health 

Provide local and regional 

health professionals with 

training in the diagnosis and 

implementation of advanced 

medical procedures 

Funding towards a centre that 

provides modern diabetes 

management including a 

diabetes educator for outlying 

Indigenous communities 

Equipment upgrades Laura Johnson Home To support the region’s only 

aged care facility to upgrade 

its existing equipment and 

furniture 

Mount Isa Dental 

Health Building 

Queensland Health 

To support the construction 

of a dedicated dental health 

facility as part of the Mount 

Isa Hospital Redevelopment 

2008–10 Five Mount Isa District Advanced Life Support 

(ALS) refresher courses were held. Outreach trips 

with the RFDS continued and a new training 

session incorporating Xstrata Mount Isa Mines’ 

Rescues team and the Queensland Ambulance 

Service was held. Paediatric Grand Rounds and 

mock scenario sessions for Queensland Health 

staff continued, and the appointment of a Mount 

Isa Health District Coordinator has increased 

nursing participation in these training activities. 

2008–10 Mount Isa Diabetes Service continued to provide 

advice on diabetes management and provided 

approximately 1,200 free consultations to diabetes 

sufferers in the Mount Isa community. The 

diabetes outreach clinic continued visits to the 

Indigenous communities of Mornington Island, 

Doomadgee and Normanton. 

A gap analysis was undertaken for the current 

service delivery resulting in increased focus and 

education on gestational diabetes. Xstrata’s 

support has enabled the purchase of equipment 

including sharps, containers and lancets. 

2008–10 Xstrata’s funding has enabled the home to 

upgrade the bathrooms in the high care wing and 

to purchase an additional shower trolley. 

In early 2010 work was completed on beautifying 

a courtyard area at the home as an in-kind 

support initiative between the Xstrata Skills 

Centre, Building Services Group and Community 

Relations. 

2010–11 An official launch of the Mount Isa Hospital 

Redevelopment was held in June 2010. 

Construction of the Dental Health Building has 

commenced and is due for completion mid-2011. 

Environment 


Native animal and 

wildlife care program 

Riversleigh Fossil 

Project 

North West Wildlife 

Carers Group 

University of New 

South Wales 

To fund supplies for registered 

carers in the north west region 

to assist them to nurse and 

rehabilitate injured wildlife 

To help fund a number of 

collaborative educational, 

environmental and research 

initiatives into the geological 

and palaeontological resources 

of the Riversleigh Fossil Trail 

near Lawn Hill National Park 

2008–10 A variety of native animals including 73 kangaroos, 

wallabies and over 100 birds were cared for by the 

North West Wildlife Carers Group. 

The Group educated the broader community 

about the importance of native animals in our 

ecosystem by conducting regular visits to schools 

and community groups. 

2008–10 Riversleigh fieldwork resulted in the discovery of 

a Diprotodon skeleton, the largest marsupial ever 

to have lived on earth, among other findings. The 

skeleton will be excavated during 2010–11. Xstrata 

funding has continued the development of the 

Xstrata Fossil and Mineral Trail and has helped PhD 

student Mira Van Der Ley commence her doctoral 

project focused on the Lawn Hill area of north 

west Queensland. Lectures and presentations 

about Riversleigh Fossils were given by researchers 

and numerous scientific papers produced. 





Case study 

Xstrata helps make a difference 

to the lives of Indigenous children 

Since 2006 Xstrata has supported the Brilla Brilla Community Centre and their Breakfast 

Program that has seen outstanding results, with up to 36 children from the Yallambee 

community attending daily for a healthy breakfast and many of these children attending 

school on a regular basis. Some of the children now live in the community but continue 

to be involved in the program. 

The Brilla Brilla Breakfast Program is 

addressing the issue of poor nutrition and 

low literacy levels in Indigenous children 

living in the Yallambee community by serving 

daily breakfasts and providing a pathway to 

education for these children. 

Around 10–20 Indigenous families are part 

of the Yallambee Aboriginal Community 

living in the heart of Mount Isa. Many of 

these families are socially and financially 

disadvantaged which can include child 

neglect, lack of educational or employment 

opportunities, overcrowding as well as drug 

and alcohol abuse. 

The Brilla Brilla Community Centre was able 

to reopen in 2006 after Xstrata funded 

repairs to the centre. This enabled the 

centre to restart daily playgroup activities 

for children living at Yallambee, and in 

2007 the centre started a program aimed 

at encouraging children from the Yallambee 

community to regularly attend school. 

Xstrata partnered with Centacare in 2008 

to support this program that provides 

children from the Yallambee community with 

breakfast, a shower, clean clothes and a 

packed lunch as well as transport to and from 

school, and supervision of homework in the 

afternoon before the children return to their 

homes. Younger siblings not yet old enough 

to attend school are also benefiting with 

the meals, showers and clothes the program 

provides. Xstrata’s support also assisted with 

centre improvements including work on their 

kitchen, bathroom and laundry facilities. 

Maryann Devine – Brilla Brilla Communities 

for Children Program Manager, said more 

than 36 children are directly benefiting from 

the program each day with notable results 

in their health, speech development and 

social skills. 

“We have seen amazing changes in the 

children participating in this program since it 

began,” said Maryann. 

“Over the period of the partnership, the 

health and literacy levels of the children in 

the Yallambee community have improved 

remarkably with some children now entering 

their fifth year of the program and making 

excellent progress at school. 

“In 2010 we had five children attend 

Prep, which is very positive in terms 

of their ongoing participation in the 

education system. 

“Xstrata’s support is really helping to make 

a difference in the lives of these children,” 

she said. 

Maryann Devine won the Minister’s Special 

Commendation Award at the 2009 Regional 

Achievement and Community Awards, 

where the Culture of Education Program 

which includes the Breakfast Program also 

won an award in the Regional Service 

Award category. 

To date, Xstrata has provided $80,000 in 

funding to support the Brilla Brilla Community 

Centre and its Breakfast Program, and has 

committed an additional $15,000 to enable 

the program to continue in 2011. 

“Over the period of the 

partnership, the health 

and literacy levels of 

the children in the 

Yallambee community 

have improved 

remarkably with some 

children now entering 

their fifth year of the 

program and making 

excellent progress 

at school.” 

Denise Perkins – Centacare employee, assists Delta Jay Reid (Peppi) to complete a puzzle at the Brilla Brilla Community Centre 



Sustainable Communities 


Children play dress ups at Cloncurry Kindergarten on the new deck area that was constructed with funding from the Xstrata Community Partnership 

Program North Queensland (XCPPNQ) 



Ernest Henry Mining (EHM) identifies its key 

stakeholders as: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

local pastoralists 

residents of Cloncurry and local business 

owners 

Ernest Henry Mining employees and 

contractors and organisations that 


Traditional Owner groups in north west 

Queensland, including the Mitakoodi 

Juhnjular and Mayi people 



local, regional and national governments 



organisations 

local schools and other educational and 

training institutions 

local, regional, national and international 

media 


organisations 

XCPPNQ partners. 

68 XSTRATA COPPER NORTH QUEENSLAND 



■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

Conducting two Community Information 

Sessions in Cloncurry to share information 

on our operations and provide a forum 

for feedback from community members 

Holding a Business Stakeholder Briefing 

Session in June for local business owners 

and associated groups regarding the 

suspension of EHM’s shaft underground 

mine project and the Federal 

Government’s proposed Resource 

Super Profits Tax (RSPT) 

Holding an annual Open Day in 

September for community members to 

visit and tour EHM 

Holding an annual Neighbours Day in 

November to enable local pastoralists 

with property in the near vicinity of EHM 

to visit and tour EHM, hear an update on 

our operation and discuss issues that may 

affect their businesses 

Conducting a 360° Key Stakeholder Survey 

Distributing copies of the 2009 Xstrata 

Copper North Queensland Sustainability 

Report to employees, contractors and 

key stakeholders 

■■ 

■■ 

■■ 

■■ 

■■ 

Publishing EHM’s fortnightly internal 

newsletter Zingari Express 

Distributing Xstrata North Queensland’s 

Mine to Market newsletter to employees, 

contractors and Cloncurry residents 

Holding tours of the EHM operation 

for local schools and for tourists in 

conjunction with local tourism groups 

Contributing articles and advertisements 

to various publications to inform 

community members of our activities 

Holding regular meetings with key 

stakeholders. 


The 360° Key Stakeholder Survey conducted 

in October 2010 surveyed 12 Cloncurry 

residents. This research identified 

areas of concern facing the Cloncurry 

community, including: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

The future of the mine and town 

Unemployment and job opportunities 

The fly-in/fly-out nature of EHM 

Ongoing funding and support for local 

projects and businesses 

The cost of living in and travelling to/from 

Cloncurry 

An increase in crime and anti-social 

behaviour in Cloncurry.


Karen Elphick – Manager Community 

Development at Cloncurry Shire Council, 

hosts a meeting at Cloncurry Shire Hall. 

Karen’s position has been funded by EHM 

under the Xstrata Community Partnership 

Program North Queensland (XCPPNQ) 

from 2008–10 

An action plan considering each of these 

concerns will be developed and implemented 

during 2011. 


conducted in 2009 identified four main areas 

of concern facing the Cloncurry community. 

During 2010 we continued to address the 

community’s concerns: 

Water problems 

EHM installed additional surface water 

management infrastructure on site to improve 

its ability to capture and control surface water 

and to reduce the risk of discharge events 

occurring. Further improvements will be 

made during 2011. These improvements will 

help protect natural waterways and aquatic 

environments and will also increase our water 

re-use capabilities on site. Please refer to the 

Environmental performance section from 

page 96 for more information on these and 

other improvements. 

Unemployment 

EHM continued to deliver the Graduate and 

Vacation Work programs and provided work 

experience opportunities for local students. 

We also expanded our Indigenous training 

and employment initiatives through various 

programs. Towards the end of the year we 

commenced the recruitment process for six 

new locally-based apprentices to commence 

employment at EHM in 2011. Through 

the XCPPNQ we continued to support the 

Cloncurry Shire Council and its Community 

and Economic Development Advisor role. 

Fly-in/fly-out workforce 

In 2010, EHM offered improved incentives for 

locally-based employees to help attract more 

people to live and remain in Cloncurry. Please 

see the case study on page 52 to read about 

these incentives. 

Future of EHM and town 

EHM advanced its shaft underground mine 

and magnetite processing projects during 

2010. Please see the case study on page 27 

for more information on these projects. 

We also continued to support the Cloncurry 

Community Precinct project by providing 

$750,000 under the XCPPNQ. 



In 2010 the XCPPNQ supported 10 initiatives 

in Cloncurry with a program value of 

$665,000. Details of these partnerships are 

located in the community partnership table 

on page 72. 

In addition, EHM invested $196,898 in 

2010 on sponsorships, donations and other 

community support initiatives in Cloncurry 

(see pie graph below). A selection of our 

sponsorships and donations in 2010 included 

support for the Cloncurry and District 

Agricultural Show; Cloncurry Stockman’s 

Challenge; Curry Merry Muster Festival; 

Australian Festival of Chamber Music’s 

Community Concert; a new prep playground 

at St Joseph’s Catholic Primary School and a 

rail history display facility to be constructed 

by the Cloncurry Historical Society at Mary 

Kathleen Memorial Park. Funding was 

also provided to support the purchase of 

new equipment for Cloncurry Authentic 

Taekwondo Club and Cloncurry Scouts. 

We also completed maintenance work and 

repairs at the Cloncurry Recreation Grounds; 

loaned equipment to Cloncurry PCYC to 

assist with fundraising activities; provided 

materials required for the installation of 

the new prep playground at St Joseph’s 

Catholic Primary School; performed electrical 

maintenance works at Cloncurry Blue Care; 

and provided funding towards trees planted 

at Cloncurry Cemetery as part of National 

Tree Day. 


No community complaints were recorded at 

Ernest Henry Mining in 2010. 

Total CSI expenditure by type – EHM 

XCPPNQ expenditure by type – EHM 


support – EHM 


jobcreation 

9% Education 


66% Socialand 

community 

development 

4% Health 



jobcreation 

8% Education 


60% Socialand 

community 

development 

5% Health 



jobcreation 

12% Education 


85% Socialand 

community 

development 

1% Health 






heritage 

There were no known incidents of 

Indigenous rights being violated in 2010 

and we recorded no breaches of Aboriginal 

cultural heritage. We conducted a series of 

Aboriginal Cultural Heritage surveys under 

the Aboriginal Cultural Heritage Act 2003 

Duty of Care Guidelines in 2010. Through this 

process a number of artefacts and sites were 

identified and we will continue to engage the 

traditional custodians in relation to these. 

A Cultural Awareness Training Package was 

scheduled for roll out in 2010. This has been 

deferred to 2011 so that the program can 

be reviewed and refined. During 2010 we 

recruited seven local Indigenous employees 

into the Indigenous-specific employment and 

training pathway, Structured Training and 

Employment Projects Employment Related 

Services (STEPers). We also awarded one 

National Indigenous Cadetship Support 

Program place to a local Indigenous 

tertiary student. 

Mine closure 

EHM continued to revise its mine closure 

strategy in 2010. Studies continued into the 

potential impacts of closure on the local 

groundwater resource and the stability of 

waste rock dumps and the tailings dam in 

the long term. 

EHM continued working with its pastoral 

neighbours in 2010 to progress its bore 

census on properties surrounding the 

operation’s lease so that potential impacts 

on groundwater can be measured and 

managed on these properties. 

The Mine Closure Plan was reviewed in 

2010 and updated to reflect the latest 

closure strategies developed in response 

to EHM’s ongoing groundwater studies 

and revegetation, tailings capping, and 

evaporation trials. It was also updated to 

incorporate plans for underground mining 

and magnetite processing. 



Case study 

Ernest Henry Mining supports 

Cloncurry Night Patrol 

At Ernest Henry Mining (EHM) we aim to contribute to the sustainable social 

development of Cloncurry, and we are committed to ensuring Cloncurry is a safe 

and enjoyable place to live and work. 

Cloncurry Night Patrol is a project 

coordinated by the Cloncurry Justice 

Association. Commencing in 2007 as a 

community intervention project, it aims to 

maintain peace and prevent harm within 

the Cloncurry community, with a focus on 

assisting in the reduction of people passing 

through the Criminal Justice System. 

Cloncurry Night Patrol staff drive around 

patrolling the streets on weekends between 

10pm and 5am, and on other nights when 

there is a large event being held in the 

community. The patrol aims to help children 

and youth in particular, and works to 

decrease the number of young people on 

the streets late at night, reducing associated 

criminal activities in the process. It also assists 

adults engaging in alcohol or substance 

abuse and other anti-social behaviours within 

the community and drives home those 

deemed most as ‘at risk’. 

Cloncurry Night Patrol is supported by 

the local police and the local taxi service. 

Detailed records are taken during each shift 

on the number of people the service assists. 

This can include anything from domestic 

violence assistance to Criminal Justice System 

diversion, cautioning regarding anti-social 

behaviour, suicide intervention, diffusing 

community fights and mediation. 

Local business owners and residents have 

expressed their appreciation for the Cloncurry 

Night Patrol. However, the service relies on 

funding support to continue its work. It uses 

a car donated by the Cloncurry Shire Council 

for patrol activities and receives some in-kind 

and financial support from local businesses, 

and State Government funding supported the 

project in 2007. In 2009 the project ceased 

operations for six months due to a lack 

of funding. 

Our Community Attitudes Survey conducted 

in 2009 identified concern within the local 

community about anti-social behaviour 

in Cloncurry such as drug use, domestic 

violence, public drunkenness and youth 

wandering the streets. In response to this, 

EHM provided $40,000 in sponsorship to the 

Cloncurry Night Patrol in December 2009 

to enable the service to continue in 2010. 

The Cloncurry Shire Council also provided 

$10,000 in funding at this time – in addition 

to the car already provided – to support the 

initiative in partnership with EHM. 

In 2010 we conducted a stakeholder survey 

that again identified the community’s concern 

about drug and alcohol abuse and antisocial 

behaviour, along with an increase in crime. 

We use feedback from surveys to help us 

strengthen our stakeholder relationships and 

to guide us in responding to community 

concerns. At the end of 2010, we announced 

our commitment to supporting the Cloncurry 

Night Patrol by providing $136,000 over two 

years (2011 and 2012) under the Xstrata 

Community Partnership Program North 

Queensland (XCPPNQ). 

This funding will assist Cloncurry Night Patrol 

to operate two nights per week for the next 

two years so that it can continue assisting 

people and help to reduce crime in the 

community. It is hoped that this partnership 

will assist the project to secure additional 

funding so that it can expand and provide a 

long-term service in Cloncurry. 

Rachelle Rub – Manager, Cloncurry Justice 

Association Inc. said the funding support 

from EHM was allowing this important 

service to continue. 

“Cloncurry Night Patrol helps to protect 

people in our community by keeping 

some out of harm’s way and by stopping 

others from entering the justice system,” 

said Rachelle. 

“We’re really appreciative of the funding 

we’ve received from Ernest Henry Mining 

as we wouldn’t be able to operate as 

successfully as we do without this support,” 

she said. 

In 2010 alone, the Cloncurry Night Patrol 

assisted 756 youth (18 years and under), 

625 adult males and 446 adult females – 

1,827 people in total. 

Cloncurry Night Patrol has received much 

recognition since it commenced. The 

Cloncurry Justice Association received a 

Certificate of Achievement for the project at 

both the 2007 and 2008 Cloncurry Australia 

Day Awards; Federal Member for Kennedy, 

Bob Katter, then awarded the project with an 

Achievement Award following its recognition 

on Australia Day; and in 2010 the Queensland 

Ambulance Service and Cloncurry’s local 

Ambulance Committee awarded the 

Cloncurry Night Patrol with a Certificate of 

Appreciation during local Ambulance Week 

for its community service efforts. 

Cloncurry Night Patrol staff Charles Hill, Ben Olesen and Rachelle Rub with the Cloncurry Night Patrol vehicle 






Education 


Tuckshop and 

Information 

Technology (IT) 

upgrades 

Computer and 

IT upgrades 

Indoor/outdoor play 

area improvements 

Cloncurry State School 

St Joseph’s Catholic 

Primary School 

Cloncurry 

Kindergarten 


Funding to support and 

encourage healthy eating and 

to enhance the school’s IT 

learning environment through 

improved facilities 

Funding to enhance 

the school’s IT learning 

environment 

Funding to improve 

kindergarten play areas 

and learning environments 


PCYC Sergeant and 

club programs 

Health 

Cloncurry PCYC 

Funding to support the 

PCYC’s Sergeant position and 

associated club programs 


Aged care and ward 

improvements 

Art and culture 

Cloncurry Multi- 

Purpose Health 

Service 

Funding to help the Cloncurry 

Hospital make its aged care 

section more homely and to 

improve ward services 


Provision of musical 

instruments 

Cloncurry State School 

Funding to support and 

develop the school’s 

instrumental music program 

2008–10 The school completed tuckshop renovations to 

create a more modern facility and to enable the 

school to provide a healthy breakfast for students. 

The school purchased and installed three Short 

Throw Multi Media projectors and bought 10 DSI 

Lite Consoles with educational games for use as a 

behaviour management strategy. 

2008–10 The school installed a new alarm and public 

address system along with a new phone system 

connecting the administration area with all 

classrooms to improve safety and communication 

across the school grounds. 

2008–10 The kindergarten purchased a range of educational 

resources to replace outdated equipment and to 

comply with mandatory criteria and guidelines 

expected of early childhood centres. A stage 

platform was also constructed in the outdoor play 

area, creating a new play space and providing 

additional seating. 

2008–10 The PCYC developed and supported its boxing 

and Youth Management Team programs with its 

members participating in various competitions 

and self-development activities during 2010. 

Two jumping castles and an inflatable ‘Slip ‘n’ 

Slide’ were purchased which are available for 

hire, creating additional revenue for the club. The 

PCYC also held a successful Sportsman’s Dinner 

fundraising event. 

2008–10 The hospital purchased new furniture and 

equipment including three air comfort chairs, 

two low-back orthopaedic chairs and a chair that 

converts to a sofa bed for use by visiting family 

members. It also purchased a blanket warmer, 

a tonometer and bladder scanner, enabling it to 

provide services that were previously not available 

in Cloncurry. 

2008–10 The school purchased a bass guitar and an electric 

guitar along with a portable sound system, 

amplifiers, microphones and music stands to aid in 

rehearsals and public performances. 



Clockwise from top left: Steve de Kruijff – 

Chief Operating Officer Xstrata Copper North 

Queensland (left), and Myles Johnston – 

General Manager Ernest Henry Mining (right), 

present a $750,000 cheque to Cr. Andrew 

Daniels – Mayor of Cloncurry, with Betty 

Kiernan MP – State Member for Mount Isa, in 

support of the Cloncurry Community Precinct 

Some of EHM’s neighbouring landholders in 

front of the underground portal following a 

special tour held as part of Neighbours Day 

Well-known horseman Ben Hall (‘Bibil’ 

Station, Muttaburra) completes the wet 

work phase of the 2010 Ernest Henry Mining 

Cloncurry Stockman’s Challenge 

Year Ten student – Jill McGee, plays Cloncurry 

State School’s new bass guitar purchased with 

funds from the XCPPNQ in support of the 

school’s instrumental music program 

Environment 


Public shade 

Cloncurry 

beautification 

Enterprise and job creation 


Cloncurry Community 

and Economic 

Development Advisor 

Cloncurry Shire 

Hall and Library 

redevelopment project 


Council 


Council 


Council 


Council 

Funding to aid in the 

installation of shade structures 

at the Cloncurry Swimming 

Pool and at the local skate 

park 

Funding to beautify 

Cloncurry’s streets and 

recreation areas 

Funding for a Community 

and Economic Development 

Advisor 

Funding to support 

redevelopment of the 

Cloncurry Shire Hall and 

Library 

2008–10 Designs have been finalised for shade structures to 

be installed at the skate park in early 2011 in time 

for National Youth Week celebrations. 

2008–10 Delays were experienced in the design and 

approval stages however a plan of works was 

finalised in 2010 and work is scheduled to 

commence in 2011. 

2008–10 This role has helped develop a Master Plan 

for a new Recreation Grounds and Equestrian 

Centre in Cloncurry and helped secure funding 

for the Cloncurry Community Precinct project, 

improvements at the PCYC Activity Hall and for 

a new Sport and Recreation Coordinator position 

within the Council. Since this role was established, 

the Community Development function has been 

given more emphasis within the Council, with 

a full-time and a part time staff member now 

employed and more growth expected in 2011. 

2009–10 The Council held a Community Information 

Session in November to share concept designs 

for the Cloncurry Community Precinct project 

with the community. Positive feedback was 

received. Detailed designs will be shared with 

the community early in 2011 and construction is 

expected to commence during the year. 





Children participating in activities during the Xstrata Annual Children’s Exhibition, ‘Play Lunch’ 



Our Townsville operations identify its key 

stakeholders as: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

residents of Townsville 

Xstrata employees and contractors, 

unions and other organisations that 


Traditional Custodians – the Girambilbarra 

people 



local, state, and national governments 



organisations 

local schools 

local, regional, national, and international 

media 


organisations 

XCPPNQ partners. 



■■ 

■■ 

■■ 

■■ 

■■ 

Distributing The Townsville News, a bimonthly 

newsletter, and 10 editions of 

the Mine to Market newsletter to around 

500 key stakeholders 

Distributing Well @ Work healthy lifestyle 

quarterly newsletter to employees 

Conducting tours of the Townsville 

operations for students from local 

schools, engineering students, retired 

professionals and business people, 

personnel from other mining companies, 

and potential and existing customers of 

the Xstrata Technology Group 

Holding an annual Key Stakeholder 

Information Evening and Community 

Information Session to share information 

on our business activities 

Conducting a 360° Key Stakeholder 

Survey to gain feedback on issues of 

importance to the community and to 

determine where best to direct our future 

efforts. 



conducted in 2009 identified five key areas 

of concerns facing the community and 

action plans were developed to address 

these concerns. We continued to address 

these in 2010. 

Key areas of concern to Townsville residents 

were the Global Financial Crisis (GFC) and 

the resultant job losses, and unemployment 

in the community. Xstrata is addressing these 

concerns by maintaining employee levels 

at our Townsville operations, continuing 

delivery of the Graduate and Vacation 

Work programs, and providing work 

experience opportunities for local students 

in our operations. 

Another area of concern was businesses 

in Townsville going bankrupt. Xstrata is 

addressing this issue by continuing to support 

local business, suppliers and contractors 

through our operations. Please refer to 

page 23 for more information on Xstrata’s 

policy in regard to using local suppliers. 





Left: Xstrata Greek Fest 2010 

Above: Xstrata Percival Portrait Award 

Merv Sharkey – Manager Commercial 

and Logistics, Judge Andrew Sayers from 

Canberra and Tait Adams subject of winning 

artist Ted May’s portrait 


jobcreation 

11% Education 


49% Socialand 

community 

development 

9% Health 


A final issue of concern was law and order 

and although presently this is not a concern 

that Xstrata is addressing, we are committed 

to using stakeholder feedback to refine, 

where appropriate, our operational responses 

to these issues contained in the 2010 

stakeholder engagement plan. 



In 2010, the XCPPNQ supported eight 

initiatives in the Townsville community with 

a program value of $153,000. A selection of 

these community partnerships is outlined in 

the table on page 76. 

The Townsville operations also invested 

around $91,000 in 2010 on sponsorships, 

donations and other community support 

initiatives in Townsville (see pie graphs on 

this page). 

This included goods and monetary donations 

to Wulguru, Stuart, Oonoonba and Garbutt 

State Schools; Books in Homes; Perc Tucker 

Regional Gallery; Reef HQ Turtle Hospital; 

Salvation Army Red Shield Appeal; Kith and 

Kin Association; Endeavour Foundation; 

Cootharinga Society; Alzheimer’s North 

Queensland Inc; OptiMIND Challenge; 

Australian Volunteer Coast Guards – 

Townsville Flotilla; involvement with new 

recycling initiative MobileMusters and 

continued participation in Planet Ark’s 

Cartridges for Planet Ark. 


Xstrata Copper’s Townsville operations 

received no community complaints in 2010. 




jobcreation 

6% Education 


46% Socialand 

community 

development 

11% Health 



Aboriginal Cultural 

Heritage 

The Girambilbarra people are the traditional 

custodians of the land on which we 

operate. In 2010 there were no incidents 

of Indigenous rights being violated, and 

no Aboriginal cultural heritage sites were 

disturbed by our operations during the year. 

Mine closure 

Our Townsville operations finalised 

preliminary closure plans for our copper 

refinery and port operations. These plans 

identify risks for operations, decommissioning 

and post closure, stakeholder identification 

and future engagement strategies, specific 

studies for completion, environmental 

monitoring requirements, forecasting 

of projects until closure to progressively 

rehabilitate sites and provide cost estimates 

for provisioning. These conceptual plans 

progress to detailed closure plans within 

three years of a site ceasing operations. 


support – Townsville operations 


jobcreation 

20% Education 


54% Socialand 

community 

development 

7% Health 


“In addition to the 

XCPPNQ, the Townsville 

operations invested 

around $91,000 in 

2010 on sponsorships, 

donations and 

other community 

support initiatives 

in Townsville.” 






Education 


Technology in the 

classroom 

Environment 


Sustainable 

environmental 

practices 

Wulguru State 

School 


Hermit Park State 

School 

Developing ways to integrate 

technology into the curriculum 

using a variety of applications 


Drama and self 

development for 

young people 

Friday Night 

Juniors 

Health 

Lifeline North 


Townsville and 

District Rugby 

Union 

Developing personal growth 

and enhancing self-esteem, 

decision making and social 

skills in young people 

Developing the local rugby 

union junior program 


Emergency Health 

Equipment 

Therapy Dogs 

Art and culture 

Townsville 

Hospital 

Foundation 

Delta Society 

Australia – 

Townsville 

Therapy Dog 

Program 

Funding emergency support 

equipment for the Hospital’s 

Emergency Department 

Funding to recruit, train 

and accredit dogs and their 

handlers to visit hospitals, 

aged care facilities, day respite 

centres, mental health care 

units and palliative care centres 


Live Theatre 

Tropic Sun 

Theatre Company 

Support for the annual 

Shakespearean production 

Cultural treat Greek Fest Support for annual Greek 

cultural festival 

Funding to further develop 

the school’s environmental 

program 

2008–10 Since 2008, five Interactive Whiteboard systems have been 

provided to classes, and a LEGO Educational Program has 

been rolled out providing student resources and teacher 

curriculum support in the area of technology. 

2008–10 The creative program was extended to the youth of 

Magnetic Island giving them an opportunity to workshop 

ideas in areas including song writing, movie making, 

music, design and theatre. 

2008–10 Since 2008, player and team numbers have increased 

significantly with over 1,100 junior players and 44 

teams now registered. The junior program is played 

in a positive, non-confrontational environment giving 

players opportunities to learn ball skills and teamwork 

participation. 

2008–10 Vital equipment purchased includes a BARD portable 

ultrasound Bladder Scanner, Oxylog II ventilating machines, 

portable operating lamp and diagnostic sets. 

2008–10 Our funding support has enabled Delta Townsville to 

expand its number of volunteer teams to 36, with an 

additional 16 teams accredited in 2010. 

2008–10 Tropic Sun launched its 2010 program with a new name – 

Full Throttle Theatre – and a new direction. The company 

presented to Townsville audiences ‘Nocturnal’ – a dynamic 

and challenging theatrical experience featuring 34 local 

young, emerging and independent artists and theatre 

technicians to replace their Shakespearean piece. 

2008–10 The 2010 Festival attracted a 27,000 strong crowd. The 

success of this partnership was recognised when the 

Xstrata Greek Fest was named by the Townsville City 

Council as the Community Event of the Year at the 2010 

Australia Day Awards Ceremony. 

2008–10 The school has created a ‘live reef’, a hydroponics garden 

and constructed a real life working comet windmill on 

school grounds. The windmill is used to pump water to the 

school’s toilet cisterns and sprinkling systems. 



Case study 

Xstrata Copper supports 

Reef HQ Aquarium’s Turtle Hospital 

The Turtle Hospital in Townsville provides a dedicated facility where 

sick and injured marine turtles can be cared for and rehabilitated. It 

plays a key role in raising community awareness about threatened 

species and encouraging behavioural change that contributes to 

nature conservation. 

Two very lucky green turtles, Torres and 

Barnie have embarked on their new life in the 

Great Barrier Reef Marine Park after being 

nursed back to health at the Turtle Hospital. 

Fred Nucifora, Reef HQ Aquarium Director 

said both turtles had recovered well following 

the special care and rehabilitation they had 

received at the Aquarium. 

“We’re delighted that Torres and Barnie 

the green turtles are healthy enough to be 

released back into their natural environment,” 

he said. 

“It’s fantastic for us to see first-hand how 

the hospital can benefit these protected and 

iconic species of the Great Barrier Reef.” 

Torres was brought to Reef HQ in 2006 

weighing a tiny 366 grams. After four years 

of rehabilitation, Torres weighed a healthy 

45 kilograms and was fit for release. Torres 

grew faster and larger than green turtles of 

a similar age due to the optimal conditions 

provided at the Aquarium. 

Barnie was admitted to the Turtle Hospital in 

April 2010 suffering from a range of health 

problems, but was rehabilitated and also 

released back into the Marine Park. 

Both turtles are fitted with an acoustic tag 

that transmits a signal to local receivers 

across Cleveland Bay, Magnetic Island and 

other regional areas across the Marine Park. 

In addition, Torres has been fitted with a 

satellite tag where researchers and the 

public can follow his movements (visit 

www.reefhq.com.au). 

Dr Mark Hamann, Principal Research Fellow 

and Senior Lecturer with James Cook 

University, said very little research had been 

conducted on turtle movements within 

the Marine Park, in particular released 

rehabilitated turtles, and turtles like Torres 

that had never been in the wild. 

Xstrata Copper has donated more than 

$14,000 since 2009 to support the work 

of Reef HQ Aquarium’s Turtle Hospital, 

which won the New Tourism Development 

Award at the 2010 Townsville Airport North 

Queensland Tourism Awards. 

“It’s fantastic for us 

to see first-hand 

how the hospital 

can benefit these 

protected and iconic 

species of the Great 

Barrier Reef.” 

Injured turtle Torres is released in the Great Barrier Reef Marine Park after being nursed back to health 

at Reef HQ Aquarium’s Turtle Hospital 


Adi Endro – Environmental Advisor, and Ryan Francis – Graduate Environmental Advisor, sample water at Mount Isa Golf Club, 

adjacent to the Xstrata Mount Isa Mines lease 



We aim to preserve the health, functions and long-term viability of the natural environments affected 

by our operations. In line with Xstrata Copper’s Sustainable Development (SD) Policy, we operate 

according to industry-leading environmental norms and, where relevant, eliminate, mitigate or repair 

the environmental impact of our operations. 

The environmental management systems in 

place at our sites and operations are aligned 

with Xstrata’s Business Principles and SD 

Standards against which we regularly test 

our performance. 

Our operations and projects must comply 

with norms that sometimes go beyond 

legal requirements. We have set robust 

targets for our operations in terms of carbon 

intensity, energy intensity, fresh water 

consumption in arid areas and sulphur dioxide 

(SO 2 ) emissions. 

We manage biodiversity-related risks and 

seek to minimise or mitigate any negative 

impact on biodiversity that may be caused by 


Xstrata Copper is committed to its recycling 

business in North America. This extends the 

useful life of metals and helps to reduce 

electronic scrap, which is an increasing source 

of environmental concern and landfill waste. 

When environmental incidents do occur 

we determine the cause and take steps to 

prevent recurrence. Xstrata Copper also plans 

and implements the closure of operations in 

a way that is consistent with its commitment 

to sustainable development and the prevailing 

regulation where our operations take place. 

We believe that superior environmental 

management results in increased efficiency, 

lower risk and higher overall performance of 

our operations. It is also critical to maintain 

our social licence to operate. 

We aim to minimise the environmental 

impacts of the Xstrata Copper North 

Queensland Division’s operations. We will 

achieve this by managing risks, seeking 

opportunities to avoid, minimise and 

mitigate impacts through the efficient use 

of natural resources, pollution control, waste 

management and biodiversity conservation. 

In 2010, the Division invested almost 

$34 million on environmental 

protection, management and initiatives. 

Environmental protection expenditures and investments by type – 

Xstrata Copper North Queensland Division 

Expenditure/investment category 2010 

Capital $15,717,641 

Clean up costs for remediation of spills 0 

Environmental consultants/contractors $2,509,154 

Environmental personnel – employees $2,723,356 

Licences/liability insurance $751,436 

Rehabilitation and decommissioning costs $469,639 

Research and development $1,556,692 

Treatment and disposal of waste* $5,371,179 

Treatment of emissions $210,000 

Monitoring and analysis equipment $1,043,361 

Other operating expenses $3,613,005 

Total $33,965,464 

* The significant increase in expenditure compared to 2009 is due to ESP stockpiled material treatment. 

Environmental incidents 

and compliance 

In 2010 no Category 3 (significant) incidents 

occurred at any of the Xstrata Copper North 

Queensland operations. 

Two prosecutions and fines were recorded in 

2010 as a result of incidents that occurred in 

late 2008 and early 2009. 

In July 2010, Xstrata Mount Isa Mines 

pleaded guilty in the Brisbane Magistrates 

Court to one charge under the Aboriginal 

Cultural Heritage Act 2003 and was fined 

$80,000 in respect of inadvertent damage to 

cultural heritage objects while a contractor 

worked to upgrade a road in Mount Isa 

in 2008. Draft internal Aboriginal Cultural 

Heritage and Land Clearance procedures 

had been developed in consultation with the 

Kalkadoon people and were being trialled 

when the incident occurred. The procedures 

were reviewed in the light of the incident 

and are now in place. We take the issue of 

protecting Aboriginal cultural heritage very 

seriously and deeply regret this incident. 

In August 2010, Ernest Henry Mining did not 

challenge proceedings brought forward by 

Environmental Incident Classification 

Incident 

Category 

Environmental impact 

1 Negligible incident 

2 Minor incident 

3 Significant incident 

4 Serious incident 

5 Disastrous incident 

the Department of Environment and Resource 

Management in relation to stormwater 

discharges that occurred in early 2009. 

Ernest Henry Mining was fined $100,000, 

and no conviction was recorded. 


Division has established environmental plans, 

management systems and procedures at 

its operations. Xstrata Copper reviewed 

and improved its ISO 14001-compliant 

environmental management systems through 

continually involving operational areas in 

its development, using feedback from the 

Xstrata SD Assurance Program, specialist 

audits, and other internal and external 

environmental benchmarking activities. 



Climate change 

As established in Xstrata Copper’s SD Policy, 

we set targets to reduce our direct and 

indirect greenhouse gas emissions and work 

with governments, organisations and other 

groups to address climate change. 


Division is committed to managing energy 

use and the emission of associated 

greenhouse gases. We recognise that the 

future impacts of climate change including 

increased regulation, higher energy costs, 

and physical impacts such as drought and 

flooding, present a risk to our operations. 

We support a Climate Change Policy which 

leads to reductions in global emissions and 

introduces a carbon cost that is shared across 

the community. However, we believe that 

the policy must not prejudice Australian 

trade competitiveness causing the loss of 

Australian output and jobs simply to have the 

production and emissions move off-shore. 

Carbon emissions 


Division sets annual targets for energy 

and carbon intensity levels for each major 

operating area. The targets are set with the 

aim of reducing, where possible, intensity 

levels year on year. Energy efficiency 

improvement and awareness programs are 

run to highlight opportunities for actions to 

achieve these targets. 

The amount of carbon emissions from 

our north west Queensland operations is 

heavily influenced by changing mineral 

properties and production rates. As ore 

grades decline, higher volumes of ore will 

need to be processed in order to recover 

equivalent amounts of contained metal. 

This increase in processing will increase 

the site’s energy consumption making 

continued reductions in carbon intensity 

and energy intensity a significant challenge 

going forward. Furthermore, the Ernest 

Henry mine is transforming from an open 

cut to underground mine in 2010–12 

which will result in significant changes to 

energy use and related emissions. In 2010, 


Division’s total greenhouse gas emissions was 

851,000 tonnes of carbon dioxide equivalents 

(CO 2 -e), an increase from the 2009 total of 

811,000 tonnes of CO 2 -e. 

“We support a Climate 

Change Policy which 

leads to reductions in 

global emissions and 

introduces a carbon 

cost that is shared 

across the community.” 

National Greenhouse and 

Energy Reporting System 

(NGERS) 

Xstrata Holdings Pty Ltd was registered 

in accordance with National Greenhouse 

and Energy Reporting Act 2007 and 

our annual report was submitted to 

government in October 2010. The 


Division’s activities are reported as 

part of the Xstrata Holdings Pty 

Ltd submission. 

Prior to the introduction of the National 

Greenhouse and Energy Reporting 

System (NGERS), our operations 

collected carbon activity data and 

reported greenhouse gas emissions 

in our annual sustainability reports 

and annual submissions under the 

Australian Government’s Greenhouse 

Challenge Plus and the Energy Efficiency 

Opportunities program. 

Due to the detailed and evolving 

mandatory reporting requirements of 

NGERS, we continue to review our 

existing data and reporting systems to 

improve data integrity and compliance. 

This process was applied to 2010 

data in this report and has been 

retrospectively applied to previous 

years’ data. Changes to our GHG and 

energy data in this report is due to the 

way energy use for on-site generation 

of electricity is reported at Xstrata 

Mount Isa Mines. This has resulted in 

revisions to previously reported figures 

to now align with legislated Australian 

Government reporting requirements 

under NGERS. The changes at Xstrata 

Mount Isa Mines also results in a revision 

of Xstrata Copper North Queensland 

Division figures. 

Carbon intensity for the Division was higher 

during 2010, at 3.0 tonnes of CO 2 -e per 

tonne of contained metal compared to 

2.9 tonnes of CO 2 -e per tonne of contained 

metal in 2009. This increase is due to an 

increase in mining activity (mainly at Ernest 

Henry Mining) relative to metal production in 

2010 compared to 2009. 

The Division’s total greenhouse gas emissions 

are comprised of direct and indirect emissions 

(please refer to the Energy use by source 

table on page 81). Direct emissions are those 

which are generated by on-site activities, such 

as driving a diesel powered truck. Indirect 

emissions are those which are generated by 

an external supplier that provides a product 

or service to the operation, for example 

emissions generated by a power station that 

supplies electricity to the site. 

In 2010, the Xstrata Copper North 

Queensland Division’s direct emissions 

accounted for 333,000 tonnes of CO 2 -e 

of the total greenhouse gas emissions, 

compared to 309,000 tonnes of CO 2 -e 

in 2009. Indirect emissions accounted 

for 518,000 tonnes CO 2 -e of the total 

greenhouse gas emissions, compared to 

501,000 tonnes of CO 2 -e in 2009. 

Energy 


Division increased its total energy 

consumption in 2010 to 8.4 petajoules (PJ) 

compared to 7.9 PJ in 2009. Total energy 

consumption increased due to an increase 

in mining and mineral processing activity in 

2010 compared to 2009. 

Greenhouse gas emissions – 

Xstrata Copper North Queensland † 

’000s tonnes CO 2 -e 

1,200 

1,000 

800 

600 

400 

200 

0 

788 

808 

813 

811 

851 

2006 2007 2008 2009 2010 

† 2007–09 figures have been restated to account for a 

change in the reporting methodology related to the 

on-site generation of electricity. 



Recycled water is pumped to a spraying unit 

to suppress dust on the Run Of Mine (ROM) 

pad at Ernest Henry Mining 

The Division’s energy consumption by source 

can be found in the table below. 

Energy intensity was 29 gigajoules (GJ) per 

tonne of contained metal in 2010 consistent 

with the result achieved in 2009. 

Energy Efficiency 

Opportunities Program 

Xstrata Holdings Pty Ltd is a participant in the 

Australian Government’s Energy Efficiency 

Opportunities (EEO) Program. Participants are 

required to assess their operations for energy 

saving opportunities and to publicly report on 

initiatives where the payback period for an 

initiative is less than four years. 

The report for the 2009–10 reporting period, 

including details of the Xstrata Copper 

North Queensland Division’s EEO initiatives, 

is located on the Xstrata Mount Isa Mines 

website at www.mountisamines.com.au. 

As part of the 2010 EEO program, we 

continued to engage the workforce in 

identifying and evaluating energy saving 

opportunities. Xstrata Copper’s north 

Queensland operations have identified 

a number of energy saving initiatives. 

These include the Parkside Solar Project 

at Mount Isa (see case study on page 85), 

diesel fuel filtering at Ernest Henry Mining 

and the optimisation of ventilation and 

refrigeration systems servicing underground 

copper mining at Mount Isa Mines. Details on 

each of these are included in the EEO public 

report referenced above. Work will continue 

to evaluate and develop business cases for 

cost effective and technically feasible EEO 

opportunities in 2011. 

Energy use by source (GJ) – Xstrata Copper North Queensland 

Consumption 2010 

Direct 

Coal 318,700 

Coke 22,800 

Diesel 2,264,000 

Natural gas 2,655,800* 

Other sources (other energy sources such as LPG, petrol, and oils and greases) 121,200 

Indirect 

Electricity 3,049,500 

Total 8,431,900 

* The increase in natural gas use from the figure reported in 2009 (1.4 million GJ) is a result of the 2010 figure 

now including the gas used to generate electricity on site. Prior to 2010, only the natural gas used in the 

processes (i.e. the smelters) was included in the reported figure. 

Carbon intensity – 

Xstrata Copper North Queensland^ 

tonnes CO 2 -e per tonne contained metal 

6 

Energy use – 


‘000s GJ 

12,000 

Energy intensity – 


GJ per tonne contained metal 

60 

5 

4 

10,000 

8,000 

7,400 

7,300 

8,100 

7,900 

8,400 

50 

40 

3.2 

3.0 

2.9 

2.9 

3.0 

3.0 

30 

29 

29 

29 

29 

3 

6,000 

30 

27 

2 

4,000 

20 

1 

2,000 

10 

0 

2006 2007 2008 2009 2010 2011* 

0 

2006 2007 2008 2009 2010 

0 

2006 2007 2008 2009 2010 2011* 

*Target 

*Target 

^ 2007–09 figures have been restated to account for a 

change in the reporting methodology related to the 

on-site generation of electricity. 



Phil Abel – Apprentice Electrician, and 

Robert Van Ryt – Electrician, recycle fluorescent 

light tubes using a Fluro Disposal Machine 

Water management 

Effective water management and 

conservation is critical to the long-term 

viability of the Xstrata Copper North 

Queensland Division. Our operations 

have taken an integrated approach to 

water management. 

Our key focus is to minimise fresh water 

usage and maximise process water recycling 

and usage at our operations. Alternative 

water sources to fresh water used at our 

operations include harvested stormwater, 

underground mine dewatering, water 

recycled internally within plant areas, 

return water from tailings thickeners 

and tailings decant water. 

Biodiversity 

Biodiversity and its management are 

of strategic importance to the Xstrata 

Copper North Queensland Division. We 

are committed to the integration of 

biodiversity conservation considerations 

into environmental and social decision 

making in the search for sustainable 

development outcomes. 

Emissions 

Emissions monitoring, control and impact 

reduction strategies are a major component 

of environmental management at the Xstrata 

Copper North Queensland Division. Each of 

our north Queensland operational sites are 

complemented with their own comprehensive 

network of dust monitoring systems. These 

systems are essential to minimise the impact 

of our activities on the environment and on 

the communities in which we operate. 

Water use – 


GL 

15.0 

12.5 

10.0 

7.5 

5.0 

9.5 

9.3 

8.9 

8.5 

8.5 

In 2010 Xstrata invested in excess of 

$8.7 million at its north Queensland 

operations on a range of initiatives to 

further improve the management and 

reduction of emissions. Further information 

on these initiatives can be found throughout 

this section. 

Our north Queensland operations do not 

emit ozone depleting substances. 

Waste and tailings 

management 

Xstrata’s Product Stewardship standard 

requires that all operations eliminate, 

reduce, reuse, recycle where practicable 

or responsibly dispose of waste generated. 

In line with this standard, the Xstrata 

Copper North Queensland Division has 

a waste management system that is 

continually evolving to suit the needs of 

operational areas. 

At its core is a waste management contract 

for general waste and scrap metal collection 

based on a ‘polluter pays’ principle. Waste 

costs are distributed to departments 

according to the volume they generate. The 

incentive is that any money received through 

scrap metal recovery in their area is credited 

back to the department responsible for 

that area. 

Materials 


Division is committed to the efficient 

use of input materials and actively seeks 

opportunities for reducing input consumption. 

Material usage is recorded at our operations 

to ensure they can be tracked and managed 

responsibly. Where practical alternatives 

exist, hazardous materials are replaced by 

less hazardous products, to ensure the 

impact from our operations is reduced and 

appropriately managed on an ongoing basis. 

Consumption information is also used as part 

of the National Pollutant Inventory (NPI) and 

other reporting requirements. 

2.5 

0 

2006 2007 2008 2009 2010 



Above: Wild camels graze alongside the 

Duchess Highway near Mount Isa 

Left: Townsville operations’ Environmental 

Advisors check the copper refinery’s first flush 

and stormwater drainage system 

Major waste streams and disposal/treatment methods – Xstrata Copper North 

Queensland Division 

Waste type Amount Treatment methods 

Recycled/reused 

Batteries (t) 112 Recycled off site 

Conveyor belt (m) 2,322 Repaired and reused on site 

General/domestic waste (t) 36 Recycled 

Scrap metal (t) 4,364 Recycled off site 

Waste oil (kL) 885 Recycled off site 

Spent electrolyte (t) 4,244 Recycled in Xstrata Mount Isa Mines’ electrostatic 

precipitator dust leaching plant 

Waste sent to landfill 

General waste – 

to landfill on site* 


to landfill off site* 

Hazardous wastes – 

disposed on site 

Scrap metal – to on-site 

landfill 

Mining wastes 

Excavated materials, 

overburden and 

waste rock 

(t) 6,544 General waste at Xstrata Mount Isa Mines and EHM 

is disposed of in on-site landfills 

(t) 138 General waste from the Townsville copper refinery, 

and some general waste from EHM is sent to offsite 

landfills 

(t) 10,927 Xstrata Mount Isa Mines maintains a regulated 

landfill; in which some of hazardous wastes 

generated on site, and by other Xstrata North 

Queensland operations is disposed 

(t) 268 Scrap metal that is unable to be reclaimed for 

recycling is disposed of in the Xstrata Mount Isa 

Mines regulated landfill 

(t) 16,782,266 Stored as per Department of Environment and 

Resource Management (DERM) requirements 

Processing wastes 

Tailings (t) 17,991,087 Stored as per DERM requirements 

(t) 2,722,245 Recycled as underground fill in the copper 

operations at Xstrata Mount Isa Mines (includes 

tailings waste from the copper and zinc-lead 

concentrators) 

* From 2010, general waste will be broken down into general waste disposed to landfill on site, off site, 

and recycled. This figure was previously combined. 

Land disturbed (ha) – Xstrata Copper North Queensland 

2009 2010 

Rehabilitation during the year 28 25 

Total rehabilitation completed to date 160 185 

Area disturbed during the year 23 39 

Total area disturbed 3,155 3,266 

Total materials usage – Xstrata Copper 

North Queensland Division 

Product 

Annual 

usage 

Acetylene (m 3 ) 4,823 

Cement (t) 111,720 

Coal (t) 11,802 

Coke (t) 846 

Flocculants (t) 496 

Gelatin (t) 22 

Grinding media (t) 15,772 

Lime/limestone – other 

purposes 

(t) 13,206 

Limestone – flux (t) 8,760 

Oils and greases – 

lubricating, hydraulic, 

cooling 

Oxygen purchased 

(not made on site) 

(kL) 2,556 

(m 3 ) 22,100 

Silica (t) 32,956 

Sodium carbonate (t) 60 

Sodium hydroxide (t) 34 

Sulphuric acid (t) 1,579 

Thiourea (t) 28 

Tyres used – large 

vehicles, heavy 

equipment 

No. 431 

Tyres used – light vehicle No. 2,529 

Xanthates and other 

floatation reagents 

(t) 1,774 

Fuel consumed 

Diesel (kL) 58,654 

Kerosene (used but not 

combusted) 

(kL) 15 

LPG (kL) 322 

Unleaded fuel (kL) 258 

Wood (t) 184 

Explosives 

Explosives (t) 10,997 



Lee Kingdom and Glenn Farley – 

Air Quality Controllers, in Mount 

Isa’s Air Quality Control Centre 

Product responsibility 

Xstrata’s SD Standards provide guidelines to 

ensure that the impacts and risks associated 

with our products and services are identified, 

analysed, evaluated and minimised. Material 

safety data sheets are completed for products 

and intermediaries, including products’ 

physical and chemical composition, risks to 

human health, handling, transport, storage 

and exposure control. 

A number of initiatives are in place at our 

north Queensland operations to facilitate 

and encourage responsible product design, 

and use, reuse, recycling and disposal of our 

products. This has been achieved through 

continuous improvements in our emissions 

reduction, materials use, waste management 

and environmental management systems 

and strategies. 

In 2010, there were no significant fines 

for non-compliance with laws and regulations 

concerning the provision and use of 

products across the Xstrata Copper North 

Queensland Division. 

Copper and sustainable 

development 

Copper is one of the oldest metals known 

to man. It is estimated that around 80% 

of the copper that has been mined over 

the centuries is still in circulation as 

copper is 100% recyclable, one of its 

distinguishing features. 

“Copper is one of the 

oldest metals known 

to man. It is estimated 

that around 80% of 

the copper that has 

been mined over the 

centuries is still in 

circulation ...” 

Over the years, copper’s uses have multiplied, 

thanks to its unique combination of 

properties. Copper is both malleable and 

ductile, that is it can be shaped into a variety 

of forms, such as wire or thin sheets, and is a 

highly efficient heat and electrical conductor 1 . 

It is estimated that around 70% of all 

copper consumed is used for its thermal and 

electrical properties. 

This versatility, combined with copper’s 

durability, makes it a key component of 

everyday life, from the coins in our pockets to 

the roofing of our homes and the power lines 

that provide us with electricity. 

New uses are also constantly appearing 

as technology advances, whether in 

communications, computers or medicine. 

Furthermore its extensive use in ‘green’ 

technologies such as solar cells, water heating 

panels and electric vehicles, ensures that 

copper will continue to play a key role in a 

sustainable future. 

Copper and health 

Copper is essential to plant and animal life. 

As a micro-ingredient of many common 

foods, it plays a vital role in human health. 

Children suffering from a low copper intake 

can experience growth difficulties and weak 

bones while in adults a lack of copper can 

result in increased infections and heart and 

liver complaints. 

According to the US Department of 

Agriculture, the recommended daily intake of 

copper for adults is 1–2 mg. This is typically 

obtained naturally through a balanced diet 

as copper is contained in foods such as milk, 

nuts and chocolate. 

Copper also makes another important 

contribution to human health through 

its ability to destroy bacteria. Officially 

recognised by the US Environmental 

Protection Agency in 2008, copper and 

copper alloys can kill 99.9% of bacteria 

within two hours. As a result, copper 

is now increasingly used as a surfacing 

material in hospitals, helping to prevent the 

spread of the hospital-acquired infections 

that are one of today’s most significant 

healthcare problems. 

The main organisation responsible for 

publicising information about copper uses is 

the International Copper Association (ICA). 

Since 2009, ICA has been chaired by Xstrata 

Copper Chief Executive Charlie Sartain and 

our company is committed to increasing 

awareness of the uses of copper. 

1 www.copperinfo.com 



Case study 

Installation of solar 

panels in Mount Isa 

At Xstrata Mount Isa Mines, we recognise that the future 

impacts of climate change including increased regulation, 

higher energy costs, and physical impacts such as drought 

and flooding, present a risk to our operations. 

We are committed to a process of continuous, proactive environmental 

improvement. Emissions monitoring, control and impact reduction strategies 

are a major component of environmental management at our operations 

in north Queensland. In 2010 we implemented a solar panels initiative in 

Mount Isa that demonstrates our leadership in environmental performance. 

The initiative involved the installation of 96 Solar PV systems that have 

155 kilowatts of total generating capacity. The solar panels will provide 

renewable electricity supply to apartments in the Xstrata Parkside 

accommodation complex used by Xstrata Mount Isa Mines for employee 

and contractor accommodation. The panels will provide export power to 

the local electricity grid at times when the apartments are not occupied. 

Pieter Swart, Environment Manager North Queensland said the installation 

of the solar panels highlights to Queensland communities the benefits of 

renewable energy. 

“These solar panels provide clean energy for our apartment complex in 

Mount Isa and demonstrate the effectiveness of solar technology to 

communities in north west Queensland,” said Pieter. 

“Other environmental benefits include reduced use of fossil fuel generated 

electricity, reduced carbon dioxide emissions and lower energy costs. 

“Again, this highlights to our local community and other stakeholders our 

commitment to investing in renewable energy and the process of proactive 

environmental improvement,” he said. 

The installation will have metering of power generated by the solar panels to 

provide quantifiable results. The data will also be used for community promotion 

of and education about solar energy. It is estimated that this initiative will reduce 

greenhouse gas emissions by 500 kilograms of CO 2 -e per day. 

The solar panels initiative will be eligible to create renewable energy certificates 

in accordance with the Australian Government’s renewable energy target 

scheme. In this way the project is supported by government, as well as 

through policies to encourage solar installations on households such as 

solar feed in tariffs. 

The installation of the solar panels was completed in December 2010 

and will operate indefinitely. Xstrata invested more than $900,000 on 

the implementation of this initiative. 

Top: Kevin Lu – Electrical Engineer, and Bruce Valentine – Engineering 

Superintendent, inspect a section of the solar panel installation at 

Mount Isa Mines’ Parkside Accommodation 

Left: Solar panel installation at Mount Isa Mines’ Parkside Accommodation 





Mount Isa landscape 

Environmental challenges 

The key environmental challenges for the 

Mount Isa Mines copper operations include: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

regulatory transition from the Mount Isa 

Mines Limited Agreement Act 1985, to 

the Environmental Protection Act 1994 

minimising emissions to air from the 

Mount Isa Mines copper smelter and 

dust from surface operations 

managing site stormwater according 

to HAZDAM requirements 

preparing for and reducing our 

contribution to climate change 

minimising fresh water consumption 

and maximising process water reuse 

planning for effective progressive 

rehabilitation 

minimising waste generation and 

maximising materials recycling. 

86 XSTRATA COPPER NORTH QUEENSLAND 

Environmental protection 

expenditures 

Since taking ownership of the Mount Isa 

Mines operations in 2003, Xstrata has 

invested in excess of $275 million on over 

220 environmental initiatives. In 2010, the 

Mount Isa Mines copper operations invested 

more than $29.4 million on environmental 

protection expenditures and investments. 




operations recorded a total of 48 minor 

environmental incidents, of which 45 were 

considered Category 1 (negligible), and 

three of the incidents were considered 

Category 2 (minor). All incidents were 

investigated and corrective measures 

implemented to prevent recurrence. In 2010, 

no Category 3 (significant) environmental 

incidents were reported. Regulatory noncompliances 

associated with the environment 

were reported to the Queensland 

Department of Environment and Resource 

Management (DERM). 

One prosecution that resulted in a fine of 

$80,000 was received by the Mount Isa 

Mines copper operations in 2010 due to an 

incident that occurred in September 2008. 

Please refer to page 79 for more detail. 

Transition from the 

Mount Isa Mines Limited 

Agreement Act 

In May 2008, the Queensland Government 

passed legislation to transition Xstrata Mount 

Isa Mines from the Mount Isa Mines Limited 

Agreement Act 1985 to the Environmental 

Protection Act 1994. The existing Mining 

Plan 2010–15 originally established under 

the Mount Isa Mines Limited Agreement 

Act 1985 will remain the guiding document 

for environmental management on site until 

the transition period expires and Xstrata 

Mount Isa Mines is provided with a new 

Environmental Authority beyond May 2011. 

During the transition period Xstrata will work 

closely with the Queensland Government 

and other key stakeholders to implement 

the upcoming changes to our environmental 

regulation. Various studies were 

undertaken during this period to improve 

understanding of environmental conditions 

and to help develop new Environmental 

Authority conditions.


Sulphur dioxide, a by-product of the 

copper smelting process, is transferred 

directly to the Incitec Pivot Acid Plant 

via a dedicated pipeline 

Climate Change 


In 2010, Xstrata Mount Isa Mines copper 

operations’ total greenhouse gas emissions 

was 482,000 tonnes of carbon dioxide 

equivalents (CO 2 -e), a decrease from the 

2009 total of 491,000 tonnes of CO 2 -e. † 

Carbon intensity for the site remained at 

2.3 tonnes of CO 2 -e per tonne of contained 

metal in 2010. 

Our operations’ total greenhouse gas 

emissions are comprised of direct and indirect 

emissions (please refer to the Energy use by 

source table on page 88). In 2010 the Xstrata 

Mount Isa Mines copper operations’ direct 

emissions accounted for 193,000 tonnes 

of CO 2 -e of the total greenhouse gas 

emissions, compared to 207,000 tonnes of 

CO 2 -e in 2009. † Indirect emissions accounted 

for 289,000 tonnes CO 2 -e of the total 


284,000 tonnes of CO 2 -e in 2009. † 

Carbon emission reduction through 

operation efficiencies 

The energy efficient 30 megawatt (MW) 

Xstrata Power Station (XPS) continues to be 

operated as a base load power station. Due 

to its higher efficiency compared to alternate 

power supplies, the XPS reduces indirect 

emissions by 65,000 tonnes of CO 2 -e each 

year. The XPS is being expanded to a capacity 

of 39 MW with the expansion project to be 

completed in the second quarter of 2011. 

The Mount Isa Mines copper operations’ 

underground Pelton Wheel generator 

added 3,200 megawatt hours (MWh) of 

zero emissions electricity to the site’s power 

network in 2009. The generator acts as a 

small hydro power station, which recovers 

the potential energy from chilled water 

being piped 800 metres underground to 

cool the copper mine. Rather than using a 

pressure relief valve to dissipate the pressure 

in the pipeline, the pressure drives a turbine 

which in turn drives a generator. As a result 

we achieve an indirect emission saving of 

2,000 tonnes of CO 2 -e annually. 

Environmental protection expenditures and investments by type – Mount Isa Mines 


Expenditure category 2010 

Capital* $14,708,000 

Environmental consultants/contractors $2,089,656 

Environmental personnel – employees $1,813,293 


Rehabilitation and decommissioning costs $19,036 

Research and development $1,371,342 

Treatment and disposal of waste $4,936,329 

Treatment of emissions $210,000 

Monitoring and analysis equipment $727,988 

Operating costs – other $3,124,302 

Total $29,435,945 

* The majority of this expenditure was related to the Smelter Emissions Project and the tailings reclaim water 

line installation. 


Mount Isa Mines copper operations^ 

‘000s tonnes CO 2 -e 

600 

500 

400 

300 

200 

100 

442 

479 

473 

491 

482 



Tonnes CO 2 -e per tonne contained metal 

3.0 

2.5 

2.0 

1.5 

1.0 

0.5 

1.8 

1.9 

1.9 

2.3 

2.3 

2.2 

0 

2006 2007 2008 2009 2010 

0 

2006 2007 2008 2009 2010 2011* 

† 2009 figures have been restated to account for 

a change in the reporting methodology related 

to the on-site generation of electricity. 

*Target 

^ 2007–09 figures have been restated to account for a change in the reporting methodology related to 

the on-site generation of electricity. 



Left: A newly installed pump system at Death 

Adder Gully helps to reduce stormwater run 

off from the Mount Isa Mines lease 

Above: Ryan Francis – Graduate 

Environmental Advisor consults with 

Adi Endro – Environmental Advisor over 

bore sample readings 

Energy use by source (GJ) – Mount Isa 

Mines copper operations 


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


Total water used (includes potable, raw 

groundwater and recycled/process water) 

2009 2010 

19,100 19,833 

Total water recycled or reused* 12,600 12,353 

Percentage of water recycled and reused* 66 62 

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

Direct 

Coal 318,700 

Coke 22,800 

Diesel 511,000 

Natural gas 2,370,500 

Other sources (other energy 

77,100 

sources such as LPG, petrol, 

and oils and greases) 

Indirect 

Electricity 1,840,100 

Total 5,140,200 

Energy use – 


‘000s GJ 

7,500 

Energy intensity – 


GJ per tonne contained metal 

30 

Fresh water use – 


GL 

6 

25 

6,250 

5,000 

4,200 

4,400 

5,300 

5,300 

5,100 

25 

20 

17 

18 

21 

24 

24 

5 

4 

4.8 

4.4 

3.9 

4.6 

4.7 

3,750 

15 

3 

2,500 

10 

2 

1,250 

5 

1 

0 

2006 2007 2008 2009 2010 

0 

2006 2007 2008 2009 2010 2011* 

0 

2006 2007 2008 2009 2010 

*Target 

^ 2007–09 figures have been restated to account for a change in the reporting methodology related to the on-site generation of electricity. 



Energy 


operations had a total energy consumption 

of 5.1 petajoules (PJ) compared to 5.3 PJ in 

2009. This decrease was primarily due to 

reduced consumption of natural gas and coal. 

Energy intensity remained stable in 2010 at 

24 gigajoules (GJ) per tonne of contained 

metal, the same result we reported in 2009. 


Fresh water supply and use 

Fresh water consumed at the Mount Isa 

Mines copper operations is sourced from 

Lake Moondarra and Lake Julius. These two 

dams are used in combination to ensure fresh 

water supply to Mount Isa Mines as well as 

the Mount Isa community. Lake Moondarra 

reached 87% capacity in March 2010 and 

Lake Julius reached 100% in February 2010. 

Of the fresh water consumed in 2010, 100% 

was sourced from Lake Moondarra. In 2010, 

a total of 4,670 ML of fresh water was 

consumed by the Mount Isa Mines copper 

operations, including mining, processing 

and smelting operations. The water intensity 

figure for 2010 was 21.75 kilolitres per tonne 

of contained metal. 

Surface water 

Surface water in the Mount Isa Mines region 

flows into the Leichhardt River and then into 

Lake Moondarra approximately 15 kilometres 

downstream of the major site operations. 

Water discharged off site is sampled and 

analysed; and results have been provided to 


Management. 

In 2010, approximately $4 million was spent 

on installing a new tailings reclamation line, 

enabling water that would otherwise be 

lost to evaporation in the tailings dams, to 

be reused as process water on site. Refer to 

case study on page 95 for more information. 

Other improvements to water management 

systems on site during 2010 have included 

cleaning out antipollution ponds, relining 

drains, and increasing stormwater 

pumping capabilities. 

Significant improvements have been made 

across site over the past few years in order to 

maximise reuse of stormwater in the process 

water circuits. In particular, we have focused 

on improving stormwater management 

in areas associated with potential off-site 

discharge points. In 2010, the final stage of 

the Death Adder Gully (DAG) improvements 

was completed, including installation of a 

pumping system to enable water at the DAG 

weir to be pumped back into Barracks Dam, 

which forms part of the site-wide water 

management strategy. 

Biodiversity 


manage approximately 30,000 hectares (ha) 

of land on mining lease ML8058, for the 

copper and zinc businesses, within the Mount 

Isa Inlier bioregion and Australia’s tropical 

savannas. ML8058 is characterised by rugged, 

rocky hills and poor shallow soil. Low open 

woodland with Eucalyptus, Corymbia and 

Acacia species predominates, with a ground 

layer of Triodia species (Spinifex) which 

reflects the complex geology, infertile soil and 

semi-arid climate. 

In 2010, 11 ha of land was disturbed by 

our Mount Isa Mines copper operations 

(see table below) for the construction 

of infrastructure and to support mine 

development. Opportunity for rehabilitation 

on ML8058 is limited because most areas 

currently disturbed are considered ‘active’ and 

are not available for rehabilitation. Numerous 

rehabilitation studies were progressed in 

2010 to develop best practice rehabilitation 

techniques specifically tailored to the 

local environment. 

During the year we continued biodiversity 

management planning comprising various 

projects and internal systems updates with 

outcomes from the ML8058 biodiversity 

study, which was finalised early in the year. 

Effects on local environment 

As part of the biodiversity management 

planning in 2010, recommendations from 

the ML8058 biodiversity study were 

developed and will remain ongoing in 2011. 

Biodiversity projects targeted key threatening 

processes for biodiversity on the lease and 

included development of a fire management 

plan, and a pest management plan. No 

known effects were identified on the Red 

Goshawk, which is listed as ‘vulnerable’ 

under national legislation and International 

Union for Conservation of Nature (IUCN) 

Red List. During 2010, areas of conservation 

significance were managed by existing land 

management systems. No disturbed areas 

were identified during the biodiversity study 

as being of conservation significance. 

Management of sulphur dioxide (SO 2 ) 

emissions forms part of the biodiversity 

strategy as SO 2 fallout from the smelters 

can have a localised impact on vegetation. 

The introduction of the acid plant in 2000, 

owned and operated by Incitec Pivot, 

reduced SO 2 emissions from the copper 

smelter by 78% during 2010. 

Habitats protected or restored 

The conservation significance of ML8058 

has been interpreted with respect to the 

surrounding landscape, the conservation 

status of the species present and the 

potential and actual threats operating on 

the lease. Our copper operations are within 

a traditionally grazed area and confined to 

a minimal footprint. However there were 

some habitats identified during the 2009 

biodiversity study which are deemed to be 

of conservation significance. 

A Conservation Management Plan was 

developed in 2009 based on the outcomes 

of the study in relation to these regional 

ecosystems, and the plan was finalised and 

communicated to key stakeholders early 

in 2010. 

Following the vegetation survey conducted 

as part of the biodiversity study, seeds were 

collected from a community of Eucalyptus 

nudicaulis trees. The conservation status 

of this species is being reviewed and 

may be classified as vulnerable. Seeds 

were propagated and distributed into the 

community during various environment 

events such as World Environment Day and 

Green Week. 

During 2010 there were no instances of 

stormwater discharging off site from copper 

mining or processing areas at the Mount Isa 

Mines site. 

Land disturbed (ha) – Mount Isa Mines copper operations 

2009 2010 



Area disturbed during the year 23 11 




Emissions 

Xstrata Mount Isa Mines is committed 

to a process of continuous proactive 

environmental improvement. Emissions 

monitoring, control and impact reduction 

strategies are a major component of 

environmental management. 

In July 2007, Xstrata Mount Isa Mines 

established the Smelter Emissions Project to 

assess the feasibility to further improve the 

capture and treatment of emissions from the 

lead and copper smelters. In 2010, Xstrata 

invested in excess of $8.7 million on a range 

of initiatives to limit emissions as part of 

this project. 

Lee Kingdom – Air Quality Controller, analyses wind and weather data received from a doppler radar 

At Xstrata Mount Isa Mines we have a 

comprehensive SO 2 and dust monitoring 

network to measure and manage the impact 

of emissions on the community. 

The Air Quality Control (AQC) monitors 

10 SO 2 real-time monitoring stations located 

in the community to ensure that the smelters 

operate within accepted regulatory limits. 

These in turn direct operations at our Mount 

Isa copper and lead smelters and Incitec 

Pivot’s acid plant. No Mount Isa resident lives 

more than 1,200 metres from one of the 

real-time SO 2 monitors. 

There are also five high-volume dust samplers 

located throughout the community to 

monitor levels of respirable lead, cadmium 

and arsenic in the air. These high-volume 

dust samplers collect samples of PM 10 and 

PM 2.5 ; that is, particulate matter less than 10 

and 2.5 microns in size respectively, which are 

then analysed at an external laboratory. Refer 

to the map on page 91 for monitor location. 

Xstrata’s air quality monitoring system 

provides data which indicates that 

ambient 90-day average lead-in-air (PM 10 ) 

concentrations in Mount Isa remained lower 

than the Mount Isa Mines Limited Agreement 

Act 1985 air standard during 2010. Ambient 

lead-in-air (PM 10 ) concentration data for 

2006–10 is shown in the graph on 

this page. 

Dust generation is controlled primarily by 

regularly watering unsealed roads, keeping 

vehicle traffic volumes and speeds to a 

minimum and planning blasting to coincide 

with favourable weather conditions. Dust 

suppressant additives are also used at our 

operations and a road sweeper is used to 

maintain reduced levels of dust on the sealed 

road areas. 

Annual sulphur dioxide (SO 2 ) 

emissions 

The annual average ground level SO 2 

concentration was recorded as 16 micrograms 

per cubic metre (µg/m 3 ) in 2010 which has 

remained consistent with the 2009 average, 

and is an improvement on the 2008 average 

of 26 µg/m 3 . The 2010 result is well below 

the Mount Isa Mines Limited Agreement 

Act’s required level of 80 µg/m 3 . 

Westerly winds have a significant impact 

on our Mount Isa operations. In 2010, the 

Mount Isa Mines AQC restricted copper 

smelter operations (including complete and 

partial shutdowns) for 889 hours, compared 

to 931 hours during 2009. 

Ambient PM 10 lead-in-air 90 day average 

concentrations for monitored sites 

µg/m 3 

2.0 

1.5 

1.0 

0.5 

0 

2006 2007 2008 2009 2010 

Mount Isa Mines Limited Agreement Act level 

Monitoring Locations 

RSL 

Miles St 

BSD 

Racecourse 

Kruttschnitt Oval 

The copper smelter recorded SO 2 emissions 

of 43,600 tonnes in the 2009–10 National 

Pollutant Inventory reporting year. The 

copper smelter has achieved a 487,000 tonne 

(92%) decrease on SO 2 emissions (from 

530,600 tonnes) since the acid plant was 

introduced in 2000. 

National Pollutant Inventory (NPI) 

The NPI is an initiative of the Federal 

Department of Environment, Water, 

Heritage and the Arts. The online database 

contains information relating to the 

emission of 93 substances from industrial 

facilities and diffuse (non-industrial) sources 

across Australia. 

Annual* sulphur dioxide (SO 2 ) emissions – 


‘000s tonnes 

240 

200 

160 

120 

80 

40 

0 

130 

122 

117^ 

134 

44** 

2006 2007 2008 2009 2010 

* NationalPollutantInventory(NPI)reportingyear 

was1July2009–30June2010. 

**PleaserefertotheNationalPollutantInventory 

(NPI) commentaryonthispageandpage91for 

anexplanationonthedecreaseinemissionsfrom 

2009to2010. 

^ The2008figurehasbeenrestatedfrom129to117 

tocorrectapreviouserror. 



The NPI does not measure emissions into 

the community itself and cannot be used 

directly to determine the potential impact 

of these emissions on the community and 

the environment. 

Due to the proximity of Xstrata Copper and 

Xstrata Zinc’s mining, processing and smelting 

operations in Mount Isa, emissions are 

reported to the NPI as a single operational 

footprint. As a result, Xstrata Mount Isa 

Mines is comparable to the sum of multiple 

individual mines and industrial facilities listed 

on the NPI. 

Xstrata Mount Isa Mines reported substantial 

decreases in five of the six emissions 

compounds to the NPI database for which it 

was the major contributor for the 2009–10 

period. This included decreases in beryllium, 

arsenic, lead, antimony and sulphur dioxide. 

These decreases were due to an improved 

confidence in emissions estimates; a reduction 

in feed through the copper smelter; a focus 

on continuous environmental improvement; 

and an increase in the treatment of gas at 

Incitec Pivot’s acid plant, which takes sulphur 

dioxide gas from the copper smelter and 

turns it into liquid sulphuric acid. An increase 

in cadmium emissions was due to a change in 

the feed grade of the concentrates processed 

in the zinc-lead processing stream. 

A summary of Xstrata Mount Isa Mines’ 

reported emissions for which it was the major 

contributor the previous year is outlined in 

the table on this page. 

Information on the NPI and estimated on-site 

emissions at the source are available from 

www.npi.gov.au. 

Emissions reduction strategies 

A number of major projects are underway 

at Xstrata Mount Isa Mines to manage 

emissions as well as to assess the potential 

for impact from emissions, including the 

Smelter Emissions Project, and the Lead 

Pathways Study. 


Xstrata established a Smelter Emissions 

Project team in 2007 to characterise 

smelter emissions, identify opportunities 

to significantly increase the capture 

and treatment of emissions, and design 

and implement controls to realise those 

opportunities. As part of the Smelter 

Emissions Project, Xstrata Copper has 

been assessing the feasibility of and 

progressively implementing opportunities 

from over 120 emissions reduction initiatives. 

North 

RSL Club, 

Barkly Highway 


Mount Isa Mines 

Kruttschnitt Oval 

Incitec Pivot 

acid plant car park 

Summary of top eight of the most significant on-site emissions estimates as reported to 

the National Pollutant Inventory (NPI)* 

2009–10 

Erap St 

Miles St 

FN Land, 

Fourth Ave 

Parkside Flats, 

Railway Ave 

Opal St 

% change 

to previous 

year 2008–09 

Sunset State School 

Qld Country 

Credit Union, 

Camooweal St 

Racecourse, 

Simpson St 

SO 2 Monitors 

DERM Ambient 

Metals Monitor 

Hi-Volume Monitors 

Outback at Isa 

Brett Ave 

% change 

to previous 

year 2007–08 

Kookaburra St 

% change 

to previous 

year 

Antimony (t) 5 -34% 8 -60% 21 -21% 

Arsenic (t) 18 -54% 40 -37% 64 -15% 

Cobalt (t) 9 -86% 68 83 37 290% 

Copper (t) 28 -71% 95 -72% 338 -18% 

Cadmium (t) 12 42% 9 -17% 10 144% 

Lead (t) 118 -44% 209 -21% 263 -15% 

Sulphur dioxide (t) 176,103 -33% 262,626 5% 249,131 19% 

Zinc (t) 71 -70% 238 -25% 316 -30% 

* The Xstrata Mount Isa Mines NPI report includes on-site emissions estimates for the copper and zinc-lead 

businesses in Mount Isa. Due to geographical location, George Fisher Mine and Handlebar Hill open cut 

(both zinc-lead operations) submit separate reports. 



In 2010 Xstrata invested in excess of 

$8.7 million on a range of initiatives to 

limit emissions. 


activities undertaken in 2010 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

Designed and constructed off-site trials of 

Isasmelt furnace feed port sealed feeder 

prototype 

Gas handling system condition audits 

and repairs 

Designed, constructed and installed new 

ventilation system and new matte spout 

hood on rotary holding furnace No.1 

Decommissioned 70 metre high 650 fan 

stack, and redirected emissions to 153 

metre high main copper smelter stack 

Completed computational fluid dynamics 

study to investigate the feasibility of a 

new converter hood design 

Carried out improved sealing trials on 

converter No.2 – sealed opsis, pyro, rear 

flap and water cooled front panel 

Designed and installed gland boxes on 

converter crossover damper actuators 

Designed and installed proportional 

control system on converter crossover 

damper 

Carried out feasibility study for new hood 

and ventilation system on rotary holding 

furnace No.2 hood system 

Completed pre-feasibility study of central 

copper smelter control room 

Carried out Isasmelt throat sealing trials 

Designed Isasmelt throat seal, lance box 

seal, and combustion air addition system 

Designed and procured Isasmelt furnace 

feed moisture analyser 

Designed and procured camera system 

for smelter emissions monitoring 

Procured open path sulphur dioxide 

analyser for fugitive emissions monitoring 

Completed sealing and pressurisation of 

Isasmelt furnace control room 

Installed Isasmelt tapping floor air lock 

and locker room 

■■ 

Modelled copper smelter emissions – 

Phase 2 

■■ 

■■ 

Modelled copper smelter and Incitec Pivot 

acid plant emissions 

Developed key performance indicators 

(KPIs) and worked with smelter operations 

to embed ‘Operational Best Practices for 

Reduced Emissions’. 

In 2011, work will continue on assessing the 

feasibility of, and implementing opportunities 

to significantly increase the capture and 

treatment of smelter emissions. 

Lead Pathways Study 

In late 2006, Xstrata commissioned an 

independent Lead Pathways Study to examine 

potential sources of lead in the Mount Isa 

community from both naturally occurring 

minerals and those from mining operations. 

The Lead Pathways Study is a comprehensive 

research program being conducted by 

the University of Queensland’s Centre for 

Mined Land Rehabilitation in collaboration 

with the National Research Centre for 

Environmental Toxicology. 

The Study has three phases to enable us to 

better understand potential pathways of lead 

into the Mount Isa community through land, 

air and water. 

We are committed to this study and we will 

continue to act on its recommendations and 

keep the Mount Isa community informed of 

the study’s progress. 

Read more about the Lead Pathways Study in 

the case study on page 93 of this report. 

“In 2010 Xstrata 

invested in excess 

of $8.7 million on a 

range of initiatives to 

limit emissions.” 

Left: Andrew Nielsen – Electronics Technician, 

inspects an SO 2 monitor located within the 

Mount Isa community 

Above: Five TEOM dust sampling monitors are 

stationed within the Mount Isa community 


management 

At the Xstrata Mount Isa Mines copper 

operations all non-salvageable waste is 

disposed of in line with our strict waste 

management systems and legislative 

requirements. In 2010, over 3.5 million tonnes 

of waste material was recycled. The major 

components being 2.7 million tonnes of 

tailings used as underground fill in the copper 

underground operation, 86,500 tonnes 

of reprocessed copper reverts, and 

700,000 tonnes of copper slag from our 

copper smelter. 

Other regulated wastes that were recycled 

include wastes such as oil (336 kilolitres), 

batteries (106 tonnes) and non-hazardous 

recyclable waste mainly being scrap metal 

(2,866 tonnes) as well as conveyor belt 

(2,322 metres). A large proportion of the 

scrap metal is exported to South East Asia 

for recycling. 

There were no significant environmental spills 


during the year. 

Tailings at our copper operations are stored 

as per the Tailings Placement Strategy. 

Currently, tailings dams seven and eight store 

all tailings produced by the operations. These 

two active dams at Mount Isa are split into an 

eastern and western fan. Tailings deposition 

is alternated between the two on a regular 

basis to keep the fans moist to reduce the 

likelihood of dusting by wind gusts. 



Case study 

Mount Isa homeowners 

support Lead Pathways Study 

Xstrata takes the health and safety of the Mount Isa community 

very seriously and understands the unique situation of mining 

and smelting operations situated close to town amid an area of 

naturally-occurring lead mineralisation. 

In late 2006 Xstrata Mount Isa Mines 

commissioned the Lead Pathways Study to 

better understand the potential pathways of 

lead in the Mount Isa community. 

The Lead Pathways Study is an independent 

research program being undertaken by the 

University of Queensland’s Centre for Mined 

Land Rehabilitation in collaboration with the 

National Research Centre for Environmental 

Toxicology. The study has three phases of 

assessing potential pathways of natural and 

industrial sources of lead in the Mount Isa 

community through land, air and water. 

In October 2010, the Lead Pathways Study 

team invited homeowners in Mount Isa to 

participate in the Phase Two (Air) house 

dust sampling program. Local homeowners 

showed full support for the house dust 

sampling program with the project team 

receiving over 100 requests to participate. 

The project team identified the required 44 

properties in line with the Property Selection 

protocol, to ensure a broad variety of houses 

were sampled, and to ensure a geographic 

representation of houses from across 

Mount Isa. 

Chief Operating Officer, Xstrata Copper 

North Queensland, Steve de Kruijff said it 

was great to see the Mount Isa community 

support this landmark study. 

“Our aim is to ensure this independent 

study delivers a comprehensive analysis of 

potential pathways of lead into the Mount Isa 

community,” Mr de Kruijff said. 

“The collected dust samples from each house 

will be assessed for lead levels and potential 

human health impacts in various parts of 

the house. 

“An analysis of these dust samples will also 

be used to compare lead samples taken at 

various sites across our operations, as well 

as naturally occurring lead sources across the 

community,” he said. 

In July 2009 the Lead Pathways Study 

released its Phase One (Land) report; finding 

that the risk to human health from historical 

mine sediment is low. 

Despite this finding, Xstrata has invested 

around $2.7 million to remove over 

160,000 tonnes of soil containing historical 

mine sediment from the Leichhardt 

River. Xstrata is committed to the Lead 

Pathways Study and will continue to act on 

its recommendations. 

Xstrata Mount Isa Mines anticipates that the 

Phase Two (Air) report will be delivered in late 

2011, and the Phase Three (Water) report will 

be delivered in mid-2011. 

Associate Professor Barry Noller collects a 

house dust sample for analysis from Member 

for Mount Isa – Betty Kiernan’s residence 



Seepage from the tailings dam is captured 

in seepage ponds and pumped back to the 

tailings dam to prevent off-site discharges. 

Seepage to groundwater is monitored 

through a series of groundwater bores. 

Assessment of tailings’ chemical properties 

indicates that they are non-acid forming. 

Visual operational inspections are regularly 

completed on the tailings dams and seepage 

ponds. External consultants undertake 

monthly and annual inspections of each 

of the tailings dam walls, and an annual 

inspection to assess the hydraulic and 

structural integrity of the dam. 

At this time, tailings waste is recycled as 

much as possible as underground fill. Filling 

of stopes is vital to ongoing development 

of the underground mines. By using tailings 

material in the fill process, the volume of 

consumables such as cement is significantly 

reduced and is a good example of product 

stewardship in the business. 

Two major research and development 

projects were initiated in 2008 to assess 

long-term closure options and potential 

environmental impacts from the tailings 

dams. These projects will be used to refine 

closure criteria for the dams to ensure that 

they are safe, stable and non-polluting in the 

long term. 

Waste sludges generated at our operations 

generally contain economically viable 

concentrations of copper. These are 

stockpiled to dry and then re-processed 

through our processing plants to recover 

metal. If sludges are of no commercial value 

then they are deposited in a designated cell 

at the site’s licensed hazardous waste facility. 

The table below identifies the major waste 

streams of the Mount Isa Mines copper 

operations and the disposal or treatment 

method for each. 


A number of initiatives are in place at 

our Mount Isa Mines copper operations 

to facilitate and encourage responsible 

product design, and use, reuse, recycling 

and disposal of our products. This has been 

achieved through continuous improvements 

in our emissions reduction, material use, 

waste management and environmental 

management systems and strategies. 

Materials 

Major waste streams and disposal/treatment methods – 



We are committed to the efficient use 

of input materials. As a result we are 

actively seeking opportunities to reduce 

input consumption. 


Batteries (t) 106 Recycled off site 

Conveyor belt (m) 2,322 Repaired and reused on site 

Scrap metal (t) 2,886 Recycled off site 

Waste oil (kL) 336 Recycled off site 


General waste (t) 5,163 General waste is disposed of in on-site landfills 

Hazardous wastes (t) 7,584 Mount Isa Mines maintains a regulated landfill in 

which the majority of hazardous wastes generated 

on site are disposed where appropriate 


Tailings (t) 3,899,436 Tailings storage facility 

(t) 2,722,245 Recycled as underground fill in the copper 

operations. Tailings waste is from both the copper 

and zinc-lead concentrators. 

Copper reverts (t) 86,500 Recycled in the copper smelter 

Copper slag (t) 700,000 Recycled in the copper concentrator 

Refractory block (t) 1,800 Recycled 

We believe that effective management of 

input materials makes good business sense 

as it reduces our operating costs and reduces 

the impact on natural resources. For example, 

a significant amount of cement is saved 

by using tailings in filling operations of the 

underground copper operations. Projects to 

improve the recycling and reuse of process 

water also have the benefits of a reduction in 

fresh water consumption, and potential flowon 

benefits with respect to energy efficiency. 

Total materials usage – Mount Isa Mines 


Product 

Annual 

usage 

Raw materials and consumables 


Cement (t) 94,585 

Coal (t) 11,802 

Coke (t) 846 




purposes 

(t) 6,638 

Limestone – flux (t) 8,760 



cooling 



(kL) 1,483 

(m 3 ) 18,529 

Silica (t) 32,956 

Sodium carbonate (t) 60 

Sodium hydroxide (t) 34 


vehicles, heavy 

equipment 

(No.) 217 

Tyres used – light vehicle (No.) 2,184 



(t) 1,513 

Fuel consumed 

Diesel* (kL) 13,243 

Kerosene (used but not 

combusted) 

(kL) 15 

LPG (kL) 299 


Wood (t) 184 

Explosives 


* In previous sustainability reports, ‘Diesel’ was 

reported as ‘Diesel non-transport’ and ‘Diesel 

transport’. From 2010, consumption will be recorded 

as one total amount. 



Case study 

Engineering a sustainable water 

supply at Xstrata Mount Isa Mines 

Effective water management and conservation is critical to the 

long-term viability of our business. The implementation of a 

uniquely designed pipeline and pump station at the Mount Isa 

site in 2010 demonstrates our commitment to leadership in 

environmental performance. 

As a result of this initiative, recycled water 

can now be pumped from the tailings dam 

back into our operations at a rate of up to 

200 litres per second. 

Adam Purkis – Acting General Manager 

Engineering Support and Major Projects, 

said the water recycling project, which 

reclaims processed water from the tailings 

dam for use in our operations, is expected to 

significantly reduce our copper operations’ 

fresh water consumption. 

“The pumping station and pipeline is able to 

return 17 megalitres of reclaimed water per 

day,” said Adam. 

“This significantly reduces the need for 

additional fresh water in the zinc-lead and 

copper concentrators and demonstrates our 

commitment to sustaining local resources,” 

he said. 

When severe water restrictions were about 

to be introduced in 2008 as result of drought 

conditions, Xstrata dedicated a team to 

investigating water saving opportunities 

across our Mount Isa operations. 

Matt O’Neill – Mount Isa Copper Operations 

Infrastructure Manager, helped identify this 

water saving initiative and said it provided 

many benefits to both Xstrata operations and 

the local environment. 

“One of the benefits of this project is that 

we don’t have to rely on Lake Moondarra as 

the sole provider of water supply in order to 

sustain our operations,” said Matt. 

“The region’s Drought Management Plan 

would restrict our water allocation by 30% 

when dam levels dropped to critical levels. 

“After the drought had eased, we 

continued the project because our findings 

demonstrated how much water we could 

save into the future,” he said. 

The $4 million pump station and pipeline 

construction commenced in May and the 

pipeline was commissioned in September 

2010. The new pump station is located at 

the south-eastern base of Xstrata Mount Isa 

Mines’ Tailings Storage Facility. 

The pipeline feeds the reclaimed water back 

into the system to be used by the zinc-lead 

and copper concentrators. A flow meter at 

the new pump station measures the amount 

of water reclaimed by the new system. Fresh 

water consumption is also monitored using 

flow meters across the Xstrata Mount Isa 

Mines lease. 

The eight kilometre long pipeline had to 

be laid over difficult and remote terrain to 

reclaim the water. Through an innovative 

design and the support of multiple local 

contracting companies and Xstrata personnel, 

the project has proved a great success, and 

highlights our commitment to proactive 

environmental improvement. 

Above: The new pump station installed at 

Tailings Dam 8 as part of the tailings pipeline 

project to reclaim process water 





Megan Moar – Environmental Field Technician, conducts surface water monitoring at Ernest Henry Mining 


The key environmental challenges at Ernest 

Henry Mining (EHM) include: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

maximising the efficient use of water 

improving stormwater management 

during high rainfall events 

modelling groundwater drawdown and 

recharge (post-closure) 

developing sustainable capping strategies 

for the tailings dam and waste rock 

dumps 

updating the Mine Closure Plan 

reducing EHM’s financial liability 

improving biodiversity and land use 

planning. 

Environmental protection 

expenditures 

In 2010 Ernest Henry Mining invested 

$2.9 million on environmental protection, 

management and initiatives. 

Managing environmental risks 

EHM continues to maintain its area specific 

environmental Aspects and Impacts 

Registers. These registers are used to monitor 

controls that are implemented to minimise 

environmental risks. They also identify where 

additional controls can be implemented to 

further reduce environmental risk at the mine. 

The main risks and controls identified in 

these registers are integrated into the budget 

planning process. 

Continuous environmental 

improvement 

In 2010, EHM continued to manage 

an Environmental Improvement Plan 

(EIP), which listed key environmental 

improvement initiatives developed from 

the Aspects and Impact Registers. An EIP is 

developed annually to encourage continual 

environmental improvement at our operation. 

Our main focus during the year was further 

improving water use efficiency and the 

management of stormwater on site. 

Environmental protection expenditures 

and investments by type – EHM 

Expenditure/investment 

category 2010 

Capital $19,800 

Environmental 

consultants/contractors 

Environmental personnel – 

employees 

$419,498 

$660,062 


Rehabilitation and 

decommissioning costs 

$432,847 

Research and development $185,350 

Treatment and disposal of 

waste 

Monitoring and analysis 

equipment 

$396,566 

$93,084 

Operating costs $449,308 

Total $2,944,277 





EHM had no environmental incidents greater 

than Category 1 (negligible) in 2010. 

In August 2010, EHM was fined $100,000 by 


Management (DERM) as a result of an 

extreme rainfall event that occurred in 2009 

that contributed to the release of stormwater 

that did not comply with the water quality 

limits in the EHM Environmental Authority 

Conditions (electrical conductivity (salinity) 

and sulphate levels were slightly above 

permitted limits). 

There was one non-compliance with the EHM 

Environmental Authority licence conditions in 

2010. This was related to an adjustment to a 

Financial Assurance bond required by DERM. 



In 2010, EHM’s total greenhouse gas 

emissions was 246,000 tonnes of carbon 

dioxide equivalents (CO 2 -e) up from the 2009 

total of 201,000 tonnes of CO 2 -e. Carbon 

intensity for the site in 2010 was 0.03 tonnes 

of CO 2 -e per tonne of ore processed, the 

same intensity as 2009. 

Clockwise from top: Lil Howarth – Environmental Advisor, conducts an Environmental Audit 

with David Tempany from Hastings Deering in EHM’s heavy vehicle workshop 

A water bird at EHM 

EHM’s rehabilitated south waste rock dump 

EHM’s total greenhouse gas emissions are 

comprised of direct and indirect emissions 

(refer to the Energy use by source table on 

this page). In 2010, EHM’s direct emissions 

accounted for 124,500 tonnes of the total 

CO 2 -e greenhouse gas emissions, compared 

to 89,000 tonnes of CO 2 -e in 2009. Indirect 

emissions accounted for 122,000 tonnes of 

CO 2 -e of the total greenhouse gas emissions, 


in 2009. 

As a proportion of total energy used, the 

ratio of diesel to power use increased in 

2010. As the combustion of diesel produces 

less CO 2 -e emissions per unit of energy than 

the generation of power, this meant that 

while energy intensity increased, carbon 

intensity as a proportion of total production 

was stable. The increase in the proportion of 

diesel consumption was due to the need to 

go deeper into the pit (longer haul distance) 

to extract ore. 

Greenhouse gas emissions – EHM 


450 

375 

300 

225 

150 

75 

0 

247 

231 

224 

201 

246 

2006 2007 2008 2009 2010 

Carbon intensity – EHM 

Tonnes CO 2 -e per tonne ore processed 

0.06 

0.05 

0.04 

0.03 

0.02 

0.01 

0 

*Target 

0.02 

0.02 

0.02 

0.03 

0.03 

0.02 

2006 2007 2008 2009 2010 2011* 



Energy 

In 2010, EHM’s total energy consumption 

increased to 2.6 petajoules (PJ) compared to 

2.0 PJ in 2009. This was due to increased 

mining (up 29%) and processing activity 

(up 23%) during the year. Energy intensity 

increased by only 4% (from 0.25 to 0.26 GJ 

per tonne of ore processed) despite a 29% 

increase in total material moved. This was 

primarily due to a large reduction in the 

ratio of overburden to ore removed from the 

open pit. 

Energy Efficiency Opportunities 

(EEO) Program 

Xstrata Holdings Pty Ltd, which incorporates 


Division, is a participant of the Australian 

Government’s EEO Program. Further 

information regarding this can be found on 

page 81 of this report. 

EEO activity at EHM was suspended in 2010 

due to imminent mine closure in 2011. 

However, when the decision was made to 

Energy use by source (GJ) – EHM 


Direct 

Diesel 1,743,000 

Other sources (other energy 41,000 

sources such as LPG, petrol, 

and oils and greases) 

Indirect 

Electricity 774,000 

Total 2,558,000 

Energy use – EHM 

‘000s GJ 

4,500 

3,750 

3,000 

2,250 

2,600 

2,400 

2,200 

2,000 

2,600 

“Our main focus in 2010 

was further improving 

water use efficiency 

and the management 

of stormwater on site.” 

extend the mine life to 2024 by developing 

an underground operation, the EEO program 

was reinstated in late 2010, with an EEO 

workshop. A number of energy savings ideas 

were canvassed and a cost benefit analysis of 

these ideas will be completed in 2011. Those 

rated as delivering the most cost effective 

energy reductions will be implemented at an 

appropriate time. 


Ernest Henry Mining’s primary water sources 

are groundwater pumped from the open pit, 

DWB05, and Lake Julius. A key focus for EHM 

is to minimise the use of Lake Julius water 

and maximise the use/reuse of ground, storm 

and process water. 

Improvements in site water management 

processes not only reduces the consumption 

of water but also minimises any potential 

impacts from stormwater runoff from mine 

impacted areas. 

Lake Julius water use 

In 2009, the consumption of Lake Julius 

water averaged 458 litres per tonne of 

ore milled. In 2010 EHM set an ambitious 

target to reduce this consumption by 10% 

to less than 410 litres per tonne of ore 

milled. Despite the mechanical failure of the 

dewatering bore DWB05 in August 2010 

which impacted EHM’s ability to reach this 

target, we still managed to exceed this 

Energy intensity – EHM 

GJ per tonne ore processed 

0.450 

0.375 

0.300 

0.225 

0.24 

0.21 

0.19 

0.25 

0.26 

0.20 

target by 9% with an average of 373 litres 

per tonne of ore milled. This was a 19% 

reduction on 2009 consumption. 

In 2010, EHM consumed 3,687 megalitres 

(ML) of water from Lake Julius, which was 

only 56% of our 6,500 ML allocation. 

Stormwater management 

After the extreme rainfall events of 2009, 

a number of stormwater management 

improvements were made including 

the construction of large sediment 

dams, the installation of pumping 

infrastructure and changes to on-site water 

management strategies. 

Improvements completed in 2010 include: 

■■ 

■■ 

■■ 

■■ 

■■ 

Redesign of the tailings evaporation 

dam to increase its stormwater retention 

capacity from being able to contain a 

one in 10 year 60 day rainfall event plus 

process flows, to a one in 100 year 60 

day rainfall event plus process flows 

Alterations and maintenance of site 

drainage systems to improve the 

separation of clean and potentially mine 

impacted stormwater 

Development of a Storm Trigger Action 

Response Plan to provide guidance to site 

personnel in high rainfall/storm events 

Changes to water use priorities to further 

increase stormwater retention capacity 

and to reduce the potential mineral 

content of stormwater on site 

Installation of laser guidance systems 

on equipment used for progressive 

rehabilitation of waste rock dumps, to 

improve surface drainage and reduce the 

potential for percolation of rainfall into 

the dumps. 

These improvements resulted in the successful 

capture and containment of 100% of 

stormwater on site in 2010 despite receiving 

850mm of rain during the year against a 

region average of 485mm. Whilst EHM is 

authorised under its Environmental Authority 

to release stormwater from site, subject 

to compliance with strict quality criteria, 

full containment of all stormwater on site 

is considered a better risk management 

strategy for reducing potential impacts on 

the environment. 

Groundwater management 

1,500 

750 

0.150 

0.075 

EHM continued to pump groundwater via 

dewatering bore 05 (DWB-05) from the 

eastern rim of the EHM pit. This dewatering 

process is necessary to ensure dry mining 

conditions and to maintain pit wall stability. 

0 

2006 2007 2008 2009 2010 

0 

2006 2007 2008 2009 2010 2011* 

*Target 



In August 2010, due to a mechanical 

malfunction, this pump ceased operation. 

Dewatering has recommenced via sump 

pumps at various locations inside the pit. 

DWB-05 will be recommissioned in 2011. 

An Environmental Impact Study (EIS) 

conducted in 1996 identified that dewatering 

activities were likely to have an impact on 

the surrounding environment. As a result, 

EHM developed a groundwater model and 

implemented a monitoring program to 

routinely measure water levels and quality 

in up to 64 bores surrounding the mine. 

The monitoring data is used to identify any 

changes that are occurring, or to predict 

any future potential changes to regional 

groundwater resources. 

In 2009, a bore census commenced of 

all regional pastoralist bores that had 

the potential to be impacted by EHM’s 

dewatering activities. The data gathered 

from this census is used to improve the 

EHM groundwater model’s predictive 

capability to identify any potential longterm 

impacts. In 2010, improvements were 

made to the census process to obtain more 

detailed data and the census area was also 

extended to include pastoralist properties 

located further from the mine site. The 

groundwater model will be updated as new 

data becomes available. The information 

obtained from the model will be provided 

to local landholders and used for developing 

mine closure strategies in consultation with 

local stakeholders. 

Pat Windsor – Environmental Advisor, and Jess Naylor – Graduate Environmental Advisor, inspect 

vegetation on Ernest Henry Mining’s rehabilitated south waste rock dump 

Total Lake Julius water use – EHM* 

GL 

6 

5 

4 

3 

2 

4.6 

4.8 

4.9 

3.9 

3.7 

Lake Julius water use – EHM 

Litres per tonne ore milled 

750 

625 

500 

375 

250 

543 

436 

428 

457 

373 

Reuse of groundwater 

Groundwater pumped from the EHM 

pit is used during the ore concentrating 

processes and also for dust suppression 

around site. The mechanical failure of DWB05 

restricted our ability to reuse groundwater 

during 2010, and while we didn’t achieve our 

target of 80% groundwater reuse we still 

used 49% of the volume pumped. 

Tailings densities 

Automation of the tailings underflow pumps 

continued to provide consistency to tailings 

underflow densities in 2010. Increased tailings 

underflow densities results in less water 

consumed in processing and less contained 

within the mine’s tailings, which is eventually 

lost to evaporation. 

During 2010, tailings underflow densities 

in the concentrator were maintained at an 

average, solids to water percentage of 71%, 

which exceeded the 2010 target of 70%. 

1 

0 

2006 2007 2008 2009 2010 

*Previouslyreportedasfreshwateruse. 

Groundwater reused – EHM 

% groundwater reused 

100 

80 

60 

40 

20 

61 

64 

78 

78 

49 

125 

0 

100 

80 

40 

2006 2007 2008 2009 2010 

Tailings underflow densities – EHM 

% solids 

60 

20 

64 

65 

69 

68 

71 

0 

2006 2007 2008 2009 2010 

0 

2006 2007 2008 2009 2010 



Emissions 

Emissions to air, land and water are closely 

monitored and results are communicated 

to the government through the National 

Pollutant Inventory (NPI) and to neighbouring 

properties on a regular basis. 

Megan Moar – Environmental Field Technician (left), and Lil Howarth – Environmental Advisor, collect 

animal traps at EHM as part of the feral animal management program 

Biodiversity management 

Ernest Henry Mining manages an area of 

approximately 7,000 ha of land situated 

within the Gulf Plains Bioregion just north of 

the border with the North West Highlands 

Bioregion of Queensland. Defining areas 

based on biodiversity values is a complex 

process and involves the identification of 

geology, landforms, watercourses and floral 

and faunal communities and examining the 

subsequent interactions. 

A Biodiversity Strategy, Operational Guideline, 

Biodiversity and Land Management Plan, 

and a Weed Management Plan have been 

developed as part of our progress towards 

Xstrata’s SD Standard for Biodiversity and 

Land Management. We are committed to 

developing and implementing scientifically 

sound technologies and procedures for the 

effective management and conservation of 

biodiversity in the rehabilitation of disturbed 

land to a planned post-completion use. 

Our biodiversity commitments include: 

■■ 

■■ 

■■ 

responsible stewardship of land under our 

management 

identification of biodiversity conservation 

opportunities 

involvement of community and relevant 

stakeholders in the management of 

identified biodiversity issues. 

The underlying land tenure of the EHM 

project area, located in black soil plains 

country, is the Fort Constantine Pastoral Lease 

with over 100 years of grazing history. Only 

ephemeral creeks and rivers are found in the 

area surrounding our operation. The closest 

permanent water bodies include Chinaman 

Creek Dam 45 kilometres away and the 

ephemeral Cloncurry River, approximately 

10 kilometres to the west of the mine site. 

There were no species of significance 

listed under the International Union for 

Conservation of Nature (IUCN) Red List found 

on or in the immediate vicinity of the mining 

lease prior to disturbance. No new species of 

flora or fauna were identified in 2010. 

EHM continued to undertake aquatic 

ecological health assessments at downstream 

locations, and results indicate that the 

ecological health of these locations remain in 

good condition. 

Rehabilitation occurs on an annual basis by 

the University of Queensland’s Centre for 

Mined Land Rehabilitation (CMLR). EHM 

consults with CMLR on a regular basis 

regarding our rehabilitation practices. 

Ernest Henry Mining’s biodiversity initiatives 

in 2010 included ongoing aquatic and 

rehabilitation monitoring. 


There were no habitats protected or 

restored by, or adjacent to EHM in 2010. 

Our operation is located within a heavily 

grazed area. 

EHM has a comprehensive copper 

concentration and dust monitoring network 

that measures emission levels in the vicinity 

of our leases. In 2010, EHM continued to 

monitor dust deposition rates and copper 

concentrations up to 15 kilometres from 

the mining leases. There are no residences 

located in this area and due to low 

rainfall and cattle grazing activities the 

background dust levels are normally quite 

high. Monitoring results are compared 

against the Department of Environment and 

Resource Management’s criteria in the EHM 

Environmental Authority. 

Dust suppression techniques continued to 

be used at EHM. Water carts were utilised 

in the pit area and on unsealed roads, and 

spray systems were used on conveyors and 

stockpiles in the processing area. Water 

used for dust suppression is mainly sourced 

from pit dewatering activities. Effective dust 

suppression is important to maintain a safe 

work environment for our people. 

National Pollutant Inventory (NPI) 

Ernest Henry Mining reported to the NPI for 

the Australian financial year 2009–10 as per 

Federal Government requirements. 

The NPI provides data on on-site emissions 

only and identifies potential hazards 

associated with listed substances. As a result 

of an increase in ore and waste tonnage, 

longer hauling distances and an increased 

rate of development in the underground 

mine, EHM saw an increase in emissions 

over the 2009–10 NPI reporting year from 

the previous year on nine reportable 

substances. Detailed information regarding 

EHM’s NPI performance can be accessed 

via www.npi.gov.au. 


management 

Waste rock and tailings 

In 2010, EHM continued to characterise and 

selectively handle all waste rock from the pit. 

The aim of selective handling is to minimise 

any risks to ground and surface water from 

potential acid mine drainage. To manage 

these risks, any waste rock that is potentially 

acid forming is encapsulated within the 



centre of the waste rock landform. This rock 

is then covered with benign, competent 

waste rock on the outside surface of the 

waste rock landform. These landforms are 

also designed to shed surface water and 

thereby minimise any potential percolation 

of rainfall into the core of the dumps. When 

any area of the waste rock dump reaches 

its full design height, or areal extent, these 

areas are progressively rehabilitated with 

vegetation native to the region. All of these 

control measures combined greatly reduce 

any potential for acid mine drainage. 

EHM continues to stockpile benign, 

competent waste rock to ensure sufficient 

material is available to complete construction 

of the waste rock landform and tailings dam 

to the required specifications. 

EHM continued to manage tailings produced 

from our concentrator according to regulatory 

requirements. The tailings storage facility is 

audited annually by independent Registered 

Professional Engineer Queensland (RPFQ) 

Land disturbed (ha) – EHM 

Major waste streams and disposal/treatment methods – EHM 

Waste type Amount Treatment method 


General/domestic 

waste* (paper) 

(t) 1 Recycled 

Scrap metal (t) 1,245 Recycled off site by a scrap metal contractor 

Waste oil (kL) 534 Collected and treated off site by licensed 

contractors 



to landfill on site* 


to landfill off site* 

Mining wastes 

Excavated materials, 

overburden and waste 

rock 

certified engineers to certify its environmental 

performance complies with all relevant 

regulatory requirements. 

Two PhD studies being managed by the 

University of Queensland in cooperation with 

EHM continued in 2010. These studies are 

investigating the potential ‘Environmental 

Risks of Tailings Seepage in Naturally 

Mineralised Areas’ and ‘An examination of 

Options for Tailings Revegetation’, and we 

will support these studies through to 2013. 

General waste 

General waste from EHM and our residential 

village is contained and disposed of on site 

in accordance with Environmental Authority 

conditions. Waste aluminium cans from the 

EHM village are donated to the local Lions 

Club for recycling. Other materials such as 

metal tin cans, cardboard and waste cooking 

oil are recycled. Scrap steel is collected, taken 

off site and recycled. Around 1,245 tonnes of 

scrap metal was recycled in 2010. 

(t) 1,381 Disposal in a non-hazardous landfill on site 

(t) 35 Disposal in a non-hazardous landfill off site 

(t) 16,782,266 Stored as per Plan of Operations 

2009 2010 



Area disturbed during the year 28 



Tailings (t) 9,180,989 Stored in a licensed facility as per Plan of 

Operations 

Regulated waste 

Regulated wastes are removed from site 

by licensed contractors and transported to 

Townsville for recycling or disposal. Scrap 

tyres are disposed of within designated cells 

in the waste rock dumps. 

Rehabilitation 

Around 1,665 hectares (ha) of land has been 

disturbed by our operation. During the life of 

the mine, disturbed areas are progressively 

rehabilitated to match the surrounding 

landscape. In 2010, EHM rehabilitated a 

further 25 ha, bringing total land rehabilitated 

to date to 185 ha. 

During 2010, the tailings capping trials 

continued, involving three trial plots 30 

metres by 30 metres in surface area, two of 

which are store and release capping designs. 

The objective of these trials is to determine 

the most effective cover design to minimise 

any potential post-closure environmental 

risks. During the year, we commenced a 

Tailings Revegetation trial to ascertain suitable 

tailings remediation. The objective of the 

field trials is to assess the physical constraints, 

water storage and salt stratification within 

the tailings profile with the use of different 

amending materials. This information can 

then be used for long-term modelling of 

tailings revegetation. 

In 2011, EHM will continue to rehabilitate 

disturbed land on the waste rock landforms 

as it becomes available. 

Materials 

A wide range of raw materials and other 

consumables are used at EHM. The table 

below shows the main materials consumed 

at our operations by weight or volume in 

2010. There was a significant increase in 

cement use due to the advancement of the 

underground decline and construction of the 

magnetite plant and shaft sink. There was 

also an increase in diesel and electricity use 

as a result of more material movement and 

mill throughput. 

Transporting product, 

goods and materials 

In 2010, there were no environmental 

incidents associated with the transportation 

of concentrate between EHM and the Mount 

Isa copper smelter. 

* From 2010, general waste will be broken down into general waste disposed to landfill on site, off site, 

and recycled. This figure was previously combined. 



Left: Pat Windsor – Environmental Advisor, 

and Jess Naylor – Graduate Environmental 

Advisor, inspect vegetation on EHM’s 

rehabilitated south waste rock dump 

Above: Lil Howarth – Environmental Advisor, 

collects data for EHM’s Tailings Columns Trial 


EHM aims to reduce, reuse and recycle 

materials wherever practicable within its 

operations, including input, product and 

waste streams. In 2010 this included: 

■■ 

■■ 

■■ 

■■ 

■■ 

the first production of magnetite (this 

change decreases the volume of tailings 

moving forward by approximately 25%) 

continuing the recycling of waste oil, 

scrap metal, printer cartridges, food 

metal tins, aluminium cans and batteries 

reducing the volume of plastic and metal 

five and 20 litre containers by buying 

coolant and lubricants in bulk 

completing an operational review of 

tailings management strategies 

implementing further site water 

management improvements to increase 

water reuse and recycling. 

Projects scheduled for 2011 at EHM include 

increasing the magnetite recovery by 

installing an IsaMill in the concentrator, and 

evaluating tailings re-mining for magnetite 

and/or cobalt. 

Mine closure planning 

EHM maintains a Mine Closure Plan which 

is reviewed periodically and includes closure 

cost estimates. The anticipated costs of 

decommissioning and rehabilitating areas 

affected by activities associated with mining 

and minerals processing are incorporated into 

long-term financial models. The main aspects 

requiring investigation include potential longterm 

impacts on local groundwater resources, 

the stability of the waste rock landforms and 

the tailings storage facility. 

Current long-term predictions of groundwater 

drawdown have indicated that the 

evaporation rate of water from the open pit 

will have a limited impact on groundwater 

recovery post-closure. Accordingly, 

comprehensive plans are being developed 

to address social, labour, environmental and 

economic issues associated with closure. 

Throughout the life of an operation the 

closure plan, which includes environmental 

costing to achieve an agreed post completion 

land use, is updated to reflect resource 

models. Closure planning at EHM is well 

progressed with ongoing rehabilitation 

of waste rock landforms and long-term 

groundwater modelling. 

The plan is reviewed annually and updated 

as required to reflect the latest closure 

strategies developed as part of our ongoing 

groundwater studies, revegetation, and 

tailings capping trials. As the underground 

development will extend EHM’s mine life 

through to 2024 these changes will be 

incorporated into the 2011 Mine Closure Plan. 

Total materials usage – EHM 

Product 

Annual 

usage 



Cement (t) 17,135 



Lime/Limestone – other 

purposes 

(t) 6,543 



cooling 




vehicles, heavy equipment 

(kL) 1,050 

(m 3 ) 3,571 

No. 214 

Tyres used – light vehicle No. 345 



(t) 261 

Fuel consumed 

Diesel (kL) 45,148 

LPG (kL) 21 


Explosives 




case study 

Stuart Creek Biodiversity Study 

Xstrata is committed to the integration of biodiversity conservation 

considerations into environmental and social decision making in the 

search for sustainable development outcomes. 

Xstrata Copper manages biodiversityrelated 

risks and seeks to avoid, minimise or 

mitigate any negative effects on the regional 

biodiversity caused by our operations. 

During 2010, the Townsville copper refinery 

commissioned consultants RPS Group to 

undertake a biodiversity assessment of 

Stuart Creek, which forms the catchment for 

the refinery. The assessment identified key 

biodiversity values and assessed the condition 

of the riparian vegetation and aquatic 

ecosystems of Stuart Creek near the refinery. 

Stuart Creek is located within the Ross River 

Basin and provides an important biodiversity 

corridor due to its connectivity within the 

landscape. This creek is the last remaining 

fresh water system within the Ross River 

Basin that retains open estuarine connections, 

providing an important migratory breeding 

and nursery area for a variety of 

estuarine species. 

A number of suitable monitoring locations 

were identified as part of the assessment, 

including upstream reference sites and 

test sites immediately adjacent to and 

downstream of the copper refinery. The 

study involved an assessment of the overall 

ecological health of the system. It looked 

at creek vegetation, with permanent 

photographic monitoring points established to 

visually monitor any changes in condition over 

time. Aquatic monitoring was undertaken as 

part of the study, which concentrated on the 

ecology and water quality of Stuart Creek. 

Incidental observations of native flora and 

fauna utilising the ecosystems of Stuart Creek 

were also recorded. 

“The study highlights 

our commitment to 

managing biodiversityrelated 

risks.” 

Kelly Malone – Health, Safety, Environment 

and Training Superintendent at the Townsville 

operations, said there were no species of 

significance identified. 

“The Biodiversity Assessment of Stuart Creek 

resulted in the development of measurable 

biodiversity indicators that may be used for 

future impact assessments. 

“It will also inform practical mitigation 

measures and solutions to assist Xstrata 

Copper in achieving its sustainable 

development objectives,” said Kelly. 

The study highlights our commitment to 

managing biodiversity-related risks with 

clear linkages to Xstrata’s SD Standard 

10 (regarding Environment, Biodiversity 

and Landscape Functions). The results of 

this inaugural assessment will provide a 

benchmark of condition as the basis for 

determining changes in the ecosystem health 

of Stuart Creek over time. 

Above: Casey Richardson, Environmental 

Vacation Student, and Elizabeth Hunnam, 

Environmental Advisor, sample water quality 

at Stuart Creek 





Elizabeth Hunnam – Environmental Advisor, checks the ambient real time dust monitor for shipping activities at Xstrata Copper’s Townsville port operations 


The key environmental challenges 

of our Townsville operations include: 

■■ 

■■ 

■■ 

■■ 

■■ 

■■ 

improving dust and stormwater 

management practices at our port 

operations 

improving stormwater management at 

our copper refinery and port operations 

integrating energy conservation practices 

within our operations to minimise our 

carbon intensity and carbon footprint 

minimising fresh water consumption and 

maximising process water reuse 

minimising waste generation and 

maximising materials recycling 

managing impacts on the surrounding 

environment in conjunction with 

continual growth. 

In 2010, the Townsville operations invested 

almost $1.6 million on environmental 

protection, management and initiatives. 



In 2010 there were no fines, penalties or 

prosecutions received by our Townsville 

operations, and we were fully compliant with 

government licence conditions. Our port 

operations achieved its 2010 target of zero 

Category 2 environmental incidents. At the 

copper refinery we did not achieve this 

target, recording two Category 2 (minor) 

environmental incidents during the year 

(detailed below). 


The first Category 2 incident involved the 

failure of the lining within a process wash 

water bund, which allowed process wash 

water to leak into communication conduits, 

and then feed into a sediment pit within 

the site’s internal drainage system. The 

process water was contained within the 

internal drainage system and no off-site 

discharge occurred. There was no regulatory 

exceedance resulting from this incident. 

Environmental protection expenditures 

and investments by type – Townsville 

operations 

Expenditure/investment 

category 2010 

Capital $989,841 

Environmental personnel – 

employees 

$250,001 


Rehabilitation and 

decommissioning costs 

Treatment and disposal of 

waste 

Monitoring and analysis 

equipment 

$17,756 

$38,284 

$222,289 

Operating costs $39,395 

Total $1,585,242 



The second Category 2 incident was recorded 

when approximately 2,000–4,000 litres 

of electrolyte spilt due to a process hose 

clamp coming loose. Again, the entire spill 

was contained within the internal drainage 

system, and subsequently recovered and 

treated. No off-site discharge occurred, 

and no environmental impacts resulted 

from this incident. 

Full incident investigations took place for both 

incidents and corrective measures were taken 

to prevent a recurrence. 



In 2010, the Townsville copper refinery’s 

total greenhouse gas emissions was 

121,000 tonnes of carbon dioxide equivalents 

(CO 2 -e) a slight increase on the 2009 total of 

117,000 tonnes of CO 2 -e. Carbon intensity 

for the copper refinery in 2010 remained 

consistent with 2009 at 0.42 tonnes of 

CO 2 -e per tonne of contained metal. 

Elizabeth Hunnam – Environmental Advisor, conducts dust deposition monitoring at Xstrata Copper’s 







ML 

The port operations’ total greenhouse gas 

emissions were 1,700 tonnes of CO 2 -e in 

2010. They accounted for only 1.4% of 

the Townsville operations’ emissions and 

have remained at similar levels for the past 

five years. 

150 

125 

100 

97 

96 

114 

117 

121 

12 

10 

8 

7.7 

The Townsville operations’ total greenhouse 

gas emissions are comprised of direct and 

indirect emissions. In 2010, the Townsville 

operations’ direct emissions accounted 

for 15,000 tonnes of CO 2 -e of the total 


13,000 tonnes of CO 2 -e in 2009. Indirect 

emissions accounted for 106,000 tonnes 

CO 2 -e of the total greenhouse gas emissions, 


in 2009. 

Energy 

In 2010, the Townsville copper refinery 

increased its total energy consumption 

to 723,000 gigajoules (GJ) compared to 

671,000 GJ in 2009. This was due to an 

increase in the volume of copper anode 

processed through the refinery. In addition 

to the anode produced in Mount Isa, the 

refinery continued to process imported 

anode. The refinery had 4% greater 

production in 2010 compared to 2009. 

A table detailing energy consumption by 

source can be found on page 106. 

75 

50 

25 

0 



Tonnes CO 2 -e per tonne contained metal 

0.750 

0.625 

0.500 

0.375 

0.250 

2006 2007 2008 2009 2010 

0.46 

0.41 

0.43 

0.42 

0.42 

0.42 

6 

4 

2 

0 



ML 

150 

125 

100 

75 

50 

3.2 

117 

3.7 

110 

5.1 

116 

114 

5.3 

2006 2007 2008 2009 2010 

127 

Energy intensity increased to 2.5 GJ per tonne 

of contained metal compared to 2.4 GJ 

per tonne of contained metal in 2009. 

0.125 

25 

0 

2006 2007 2008 2009 2010 2011* 

0 

2006 2007 2008 2009 2010 

*Target 



Bob Griffin – Port Operations Coordinator, 

inspects the Xstrata Port sump system, which 

allows capture and reuse of stormwater 

The Townsville port operations’ energy 

consumption was 10,400 gigajoules (GJ) in 

2010 up from 10,200 GJ in 2009 (please note 

that the 2009 report had incorrectly stated in 

the text that energy consumption was 10 GJ 

for 2009, when it was actually 10 terajoules 

(TJ), or 10,200 GJ. This accounted for only 

1.5% of the Townsville operations’ energy 

consumption. The port operations’ energy is 

sourced from a combination of electricity and 

diesel and consumption levels have remained 

constant for the past five years. 

Water use and 

management 

A number of key stormwater management 

initiatives were completed in 2010: 

Energy use by source (GJ) – Townsville operations 


Direct 

Diesel 5,500 

Natural gas 285,300 

Other sources (other energy sources such as LPG, petrol, and oils and greases) 2,400 

Indirect 

Electricity 429,800 

Total 723,000 

Energy use – EHM 

Energy intensity – EHM 

‘000s GJ 

GJ per tonne ore processed 

4,500 

0.450 

■■ 

■■ 

The expansion of the Townsville copper 

refinery’s irrigation area. Currently, 

the refinery uses sustainable irrigation 

practices as a method of stormwater and 

extracted groundwater control as per 

our Environmental Licence conditions. 

In an effort to increase our capacity to 

deal with extreme rainfall periods we 

expanded our irrigation area by 

13 hectares and installed two new 

travelling irrigators. Final commissioning 

of the irrigators will take place in 2011. 

Our port operations commissioned a 

study to identify options to improve the 

quality of the stormwater discharged 

from site. The study examined site 

characteristics, current water quality, 

desired outcomes and the current 

first flush capture system to provide 

an analysis of the options available. 

The Townsville operations consume 

potable water and are considered a 

small consumer of water in a regional 

context. Fresh water consumed at 

Xstrata Copper’s Townsville operations 

is sourced from the local supply system 

fed from the Ross River Dam. In 2010 

potable water consumption at the 

copper refinery increased by 11% with 

a total consumption of 127 megalitres 

(ML) recorded. 

3,750 

3,000 

2,250 

2,600 

2,400 

2,200 

2,000 

2,600 

0.375 

0.300 

0.225 

0.24 

0.21 

0.19 

0.25 

0.26 

0.20 

Potable water use at our port operations 

decreased by 31% from 2009, with a total of 

5.3 ML consumed in 2010. This is consistent 

with 2008 consumption as 2009 was an 

unusually dry year which resulted in increased 

potable water use. 

1,500 

750 

0 

2006 2007 2008 2009 2010 

0.150 

0.075 

0 

2006 2007 2008 2009 2010 2011* 

Our Townsville operations put significant 

effort into capturing and reusing process 

water and stormwater where possible to 

minimise potable water consumption. The 

copper refinery used approximately 81 ML 

of captured stormwater and process water 

for irrigation. 

*Target 



Elizabeth Hunnam –Environmental Advisor 

(right), and Casey Richardson – Environmental 

Vacation student, conduct groundwater and 

surface water monitoring at Xstrata Copper’s 


The port operations’ first flush stormwater 

and washdown water is captured using a 

comprehensive sump system. These waters 

are then treated for discharge and/or recycled 

to above ground storage tanks that are used 

to wash down conveyors, hoppers and chutes 

between changes of conveyed material. 

In 2010, 0.6 ML of water was reused at our 

port operations. 

There are a number of stormwater controls in 

place at the copper refinery. These controls 

include first flush capture and treatment 

and storage dams. All stormwater from 

site goes through these controls prior to 

being discharged. The stormwater then 

drains across a flood plain area and a minor 

creek system that eventually makes its way 

to Cleveland Bay. Ongoing monitoring of 

the flood plain area and creek systems is 

undertaken and all results are forwarded to 


Management (DERM). 

Stormwater improvements at our copper 

refinery are investigated and implemented 

annually. At our port operations, stormwater 

is captured and treated in sumps before being 

discharged into the Port harbour located 

in Cleveland Bay. Water quality monitoring 

occurs at the four licensed discharge points 

and is provided to DERM for review. 

Following the completion of the port 

operations’ eastern yard upgrade project in 

2009 at a value of $2.4 million, stormwater 

metal concentrations have reduced by up 

to half that of pre-upgrade analysis results. 

The upgrade included the installation of the 

eastern yard stormwater controls for the 

tippler rail corridor, roof stormwater and side 

road water catchments. 

In 2010, the Townsville copper refinery 

discharged approximately 941 ML of 

stormwater and our port operations 

discharged approximately 86 ML. This is a 

substantial increase on previous years which 

is attributed to record rainfall during the year. 

Biodiversity 

Our Townsville operations had no significant 

regional effects on the environment in 2010. 

An Environmental Management Plan for 

biodiversity and land management is in 

place for the Townsville operations along 

with a Weed Management Plan for the 

copper refinery. 

Xstrata Copper manages an area of 

1,100 hectares (ha) of land in the Townsville 

State Development Area. A significant 

percentage of this land is used for cattle 

grazing. The Townsville copper refinery 

encompasses approximately 90 ha on 

which there is no regular significant land 

disturbance or rehabilitation required. 

Our copper refinery land is bordered by 

Stuart Creek, a permanent fresh water creek. 

An independent biodiversity assessment study 

of Stuart Creek was conducted in 2010 (see 

case study page 103). Weed management 

works were undertaken in 2010 with the 

clearing of 20 ha invaded predominately 

by Chinee apple (Ziziphus mauritiana) 

and Leucaena (Leucaena leucocephala). 

The cleanup of the 20 ha paddock was in 

accordance with our Pest Management Plan. 

Further work will be undertaken in 2011. 

The Port of Townsville conducted biodiversity 

assessments in the port harbour on behalf of 

its users. 

The International Union for Conservation 

of Nature (IUCN) Red List indicates that no 

species of biodiversity significance are located 

within or near our Townsville operations. 


There were no habitats protected or restored 

by, or adjacent to, the Townsville operations 

in 2010. Both our copper refinery and port 

operations are located in industrial areas. 



Emissions 

Due to the characteristics of the materials 

being handled at our Townsville port 

operations, dust management is integral to 

minimising impacts from the operations on 

the local community and environment. 

At the port facility we have two realtime 

ambient air quality monitors in place 

downwind of the shiploader. These monitors 

allow the assessment of our management 

practices for product loading and handling. 

Additional dust control measures in place at 

our port operations include enclosed product 

handling areas and moisture control. Recycled 

water is used to maintain product moisture. 

During the year we continued to investigate 

and implement dust management strategies 

at our port facility. The investigation assessed 

dust suppression and management options 

for the train wagon tippler, the ship load out 

facilities and the bulk storage shed at the 

port facility. At the copper refinery, stack 

emission monitoring was conducted twice 

and full compliance for emission monitoring 

was achieved. 

Major waste streams and disposal/treatment methods – Townsville operations 




Batteries (t) 0.15 Recycled 


Scrap metal (t) 233 Recycled 

Waste oil (kL) 13 Recycled 

Spent electrolyte (t) 4,244 Reused in Xstrata Mount Isa Mines’ 

electrostatic precipitator dust leaching 

plant 


General waste – to landfill off 

site 

Hazardous waste – disposed 

off site 


(t) 94 Landfill disposal 



Waste oil (kL) 2 Recycled 


General waste – to landfill off 

site 


management 

The Townsville operations are guided by a 

Waste Management Plan that clearly defines 

the waste types that are generated at our 

operations and details the correct disposal 

methods and locations in accordance with 

Queensland Waste regulations. 

The Waste Management Plan ensures that all 

regulated waste movement and disposal is 

tracked using Queensland Government waste 

tracking certificates. All potentially hazardous 

wastes are handled within a solids waste 

storage facility. 

A number of waste streams are transported 

to Mount Isa Mines for disposal in regulated 

tailings dams or licensed landfill, but where 

possible recycling is conducted. A waste 

recycling program is a key component of the 

Townsville operations’ waste management 

system. The program includes glass, plastics, 

paper, cardboard, scrap metal, waste oil 

and spent electrolyte, which makes up a 

significant amount of the regulated waste 

(t) 3,101 Disposed at Mount Isa Mines’ regulated 

landfill 

(t) 9 Landfill disposal 

Regulated waste (t) 242 Various off-site disposal and treatment 

facilities 

disposed off site. Spent electrolyte is reused 

at Xstrata Mount Isa Mines as an acid 

leaching agent for the copper smelter’s 

Electrostatic Precipitator dust leaching plant. 

The table on this page identifies the major 

waste streams generated in 2010 at our 

Townsville operations. 

Materials 

Due to the nature of the processes at the 

Townsville copper refinery only small amounts 

of input materials are required, as outlined in 

the materials usage table below. 


Practices of recycling major by-products 

from various steps in the refining process 

continued in 2010. Approximately 728 tonnes 

of slimes by-product were sold within Xstrata 

for the recovery of precious metals. 

Transporting product, 

goods and materials 

In November 2009, subsidence of a roadway 

caused the spillage of zinc concentrate into 

the harbour at our Townsville port operations. 

Significant incident recovery and remediation 

work was completed under the supervision 

of the Department of Environment and 

Resource Management. Ongoing monitoring 

and testing continued in 2010 to ensure 

any potential for environmental impacts are 

mitigated. An independent assessment found 

no significant potential environmental harm 

existed following the recovery actions. 

Total materials usage – 


Product 

Unit 

Annual 

usage 


Acetylene (m 3 ) 116 

Gelatin (t) 22 


purposes 

(t) 25 



cooling 

(kL) 23 

Sulphuric acid (t) 1,579 

Thiourea (t) 28 

Fuel consumed 

Diesel (kL) 263 

LPG (kL) 2 




Case study 

Townsville copper refinery’s sustainable 

irrigation expansion 

The Townsville copper refinery currently uses a sustainable 

irrigation method to manage site stormwater runoff and 

extracted groundwater. 

Captured stormwater is used to irrigate 

pastures and produce fodder for cattle. 

This water is monitored to ensure it meets 

appropriate guidelines. An environmental 

assessment was completed in 2009 which 

confirmed that the soils across the irrigated 

areas have not been impacted and that the 

irrigation practices remain sustainable. 

This report also reviewed the option of 

opening a second irrigation area immediately 

to the north of the main irrigation dam. A 

key driver for this investigation was to allow 

an increase in the land under irrigation, 

and to help improve the overall stormwater 

management process at the Townsville 

copper refinery. Following the investigation, 

Xstrata Copper decided to proceed with 

the upgrade. 

Instead of relying on one irrigator in times of 

frequent rainfall events, the new Southern 

Irrigation Area has two irrigators that can 

work in tandem, which reduces the impact of 

plant breakdown. Additionally, the irrigation 

pump at the main irrigation dam has been 

upgraded to allow more rapid transfer of 

water between the two irrigation dams. 

Increasing the capacity to sustainably irrigate 

Townsville’s copper refinery increases the 

ability to capture stormwater for reuse 

and decreases the chance of any potential 

uncontrolled releases of water and any 

resultant soil degradation. The Townsville 

region predominately contains sodic soils 

which have the ability to erode rapidly 

under such events. The current land use for 

the irrigation areas is grazing, so good soil 

stability is key to sustaining land use into 

the future. 

“Overall this project allows greater capture 

of stormwater while maintaining control 

to prevent potential dam overtopping or 

unsustainable irrigation during high rainfall 

periods where capacity has historically 

been stretched and management 

needs more intensive,” said Rodney 

Cooper – Environmental Advisor at the 

Townsville operations. 

Xstrata Copper invested $100,000 in the 

upgrade which included site preparation and 

service roads to allow ease of access during 

wet periods. The 2010–11 wet season has 

caused some delays in commissioning the 

system, which is due for completion in 2011. 

Above: New irrigation equipment was installed 

at the Townsville coppery refinery 


Summary of key sustainability data 

Economic contribution 2008 2009 2010 

Division revenue 

Employee wages 

Division royalties, taxes and charges 

Corporate Social Involvement (including public infrastructure) 

Apprenticeships, scholarships and training 

Corporate governance and ethics 

(USD $ million) 

(AUD $ million) 




1,743 

297 

62.6 

3.1 

12.1 

913 

325 

40 

4.1 

14 

2,205 

334 

58.1 

1.7 

13 

Total value of financial and in-kind contributions to political parties 

Percentage of security personnel trained in human rights 

Percentage of suppliers and contractors screened on human rights 

Nil 

100% 

Nil 

Nil 

100% 

Nil 

Nil 

100% 

Nil 

Our people 

Total workforce 

Employees 

Contractors 

Total women employed 

(No.) 

(No.) 

(No.) 

(No.) 

3,552 

2,801 

751 

404 

3,509 

2,865 

644 

420 

3,931 

2,887 

1,044 

422 

Total employees covered by collective agreements 

Average hours of training per employee 

Percentage of employees hired from local area 

(%) 

(No.) 

49.9 

88 

Not recorded 

52.1 

131 

60.9 

54.1 

138 

60.6 

Fatalities 

Total Recordable Injury Frequency Rate (TRIFR) 

Lost Time Injury Frequency Rate (LTIFR) 

Disabling Injury Severity Rate (DISR) 

Health and safety prosecutions 

Health and safety fines 

Occupational illnesses 

(No.) 

(No.) 

($) 

(No.) 

0 

10 

0.7 

123.8 

Nil 

Nil 

12 

0 

8.3 

0.9 

138.8 

Nil 

Nil 

10 

0 

7.4 

0.7 

130.6 

Nil 

Nil 

19 

Community 

Community complaints (No.) 50 143 124 

Environment 

Direct energy use 

Total energy use 

Energy intensity 

Carbon intensity 

Direct greenhouse gas emissions 

Total greenhouse gas emissions 

Sulphur dioxide emissions 

Ground level sulphur dioxide concentration 

Copper smelter downtime 

Total fresh water use* 

Total recycling and reuse of water 

Land disturbed 

Total land rehabilitated (to date) 

Category 3 (significant) incidents 

Category 4 (serious) incidents 

Category 5 (disastrous) incidents 

Prosecutions 

Fines 

* Does not include dirty water from mine dewatering, or groundwater consumed. 

(PJ) 

(PJ) 

(GJ per tonne contained metal) 

(tonnes CO 2 -e per tonne contained metal) 

(CO 2 -e thousand tonnes) 

(CO 2 -e thousand tonnes) 

(thousand tonnes) 

(annual average micrograms per cubic metre) 

(hours) 

(GL) 

(GL) 

(ha) 

(ha) 

(No.) 

(No.) 

(No.) 

(No.) 

($) 

5.3 

8.1 

29 

2.9 

325 

813 

117 

26 

1,021 

5.0 

7.9 

29 

2.9 

309 

811 

134 

16 

931 

8.9 8.5 

12.6 

13 

132 

0 

0 

0 

0 

0 

23 

160 

1 

0 

0 

0 

0 

5.4 

8.4 

29 

3.0 

333 

851 

44 

16 

889 

8.5 

12.3 

39 

185 

0 

0 

0 

2 

$180,000 


GRI index 

This table indicates where to locate information relating to GRI G3 indicators and principles 

in this report or other publications. 

Indicator Description Level Reference 

Strategy & analysis 

1.1 Statement from the most senior decision maker about 

p.2-3 

the relevance of sustainability to the organisation and 

its strategy 

1.2 Description of key impacts, risks, and opportunities p.5,15-17 

Organisational Profile 

2.1 Name of the organisation IFC 

2.2 Primary brands, products, and/or services IFC 

2.3 Operational structure of the organisation IFC 

2.4 Location of organisation’s headquarters IFC 

2.5 Number of countries where the organisation operates, 

IFC 

and names of countries 

2.6 Nature of ownership and legal form IFC 

2.7 Markets served including geographic breakdown, sectors 

p.22 

served, and types of customers/beneficiaries 

2.8 Scale of the reporting organisation p.1 

2.9 Significant changes during the reporting periods p.13 

2.10 Awards received in the reporting period p.17 

Report Parameters 

3.1 Reporting period for information provided p.13 

3.2 Date of most recent previous report p.14 

3.3 Reporting cycle p.13 

3.4 Contact point for questions regarding the report or its 

IFC 

contents 

3.5 Process for defining report content p.13 

3.6 Boundary of the report p.13 

3.7 State any specific limitations on the scope or boundary 

of the report 

n/a 

No specific 

limitations 

3.8 Basis for reporting on joint ventures, subsidiaries, leased 

facilities, outsourced operations, and other entities 

n/a - 

3.9 Data measurement techniques, and the basis of 

calculations 

3.10 Explanation of the effect of any re-statements of 

information provided in earlier reports, and reasons 

3.11 Significant changes from previous reporting periods in 

the scope, boundary, or measurement methods applied 

3.12 Table identifying the location of the standard disclosures 

report 

3.13 Policy and current practices with regard to external 

assurance 

n/a 

n/a 

n/a 

Did not 

substantially 

diverge from the 

GRI indicator 

protocols 

No re-statements 

of information 

No significant 

changes 

p.111–112 

Governance, Commitments and Engagement 

4.1 Governance structure of the organisation p.18 

4.2 Indicate whether the Chair of the highest governance 

body is also an executive officer 

4.3 State the number of members of the highest governance 

body that are independent, and/or non-executive 

4.4 Mechanisms for shareholders and employees to provide 

recommendations or direction to the highest governance 

body 

4.5 Linkage between compensation and the organisation’s 

performance (including social and environmental 

performance) 

4.6 Processes in place for the highest governance body to 

ensure conflicts of interest are avoided 

4.7 Process for determining the qualification and expertise 

of Board members on economic, environmental, and 

social topics 

4.8 Statements of mission or values, codes of conduct, and 

principles 

4.9 Procedures for overseeing the identification and 

management of economic, environmental, and social 

performance 

4.10 Processes for evaluating Board performance, particularly 

with respect to economic, environmental and social 

performance 

p.14 

n/a Refer to Xplc 2010 

Sustainability 

Report 

n/a 

n/a 

n/a 

n/a 

n/a 

p.15 

p.18 

n/a Refer to Xplc 2010 

Sustainability 

Report 


4.11 Explanation of whether and how the precautionary 

p.15 

approach or principal is addressed by the organisation 

4.12 Externally developed economic, environmental, and 

p.19 

social charters, principles, or other initiatives to which 

the organisation subscribes or endorses 

4.13 Memberships in associations and/or national/ 

p.19 

international advocacy organisations 

4.14 List of stakeholder groups engaged by the organisation p.13,57,60,68,74 

4.15 Basis for identification and selection of stakeholders p.57 

4.16 Approaches to stakeholder engagement, including 

frequency of engagement by type and by stakeholder 

group 

p.57,60-61,68,74 

4.17 Key topics and concerns raised through stakeholder 

engagement, and how the organisation has responded 

p.57-58,61, 

68-69,74-75 

Economic indicators 

EC1 Direct economic value generated and distributed p.22-23 

EC2 Financial implications, other risks and opportunities for 

p.80 

the organisation’s activities due to climate change 

EC3 Coverage of the organisation’s defined benefit plan 

p.44 

obligations 

EC4 Significant financial assistance received from government p.25 

EC5 Range of ratios of standard entry level wage compared 

p.43 

to local minimum wage at significant locations of 

operation 

EC6 Policies, practices and proportion of spending on locallybased 

p.23 

suppliers at significant locations 

EC7 Procedures for local hiring, and proportion of senior 

p.43,44,49,53 

management hired from the local community 

EC8 Development and impact of infrastructure investments 

p.22-23,58,69 

and services provided primarily for public benefit 

EC9 Understanding and describing significant indirect 

economic impacts, including the extent of impacts 

Environmental indicators 

EN1 Weight of materials used by weight or volume p.83,94,102,108 

EN2 Percentage of materials used that are recycled input 

Not material 

materials 

EN3 Direct energy consumption by primary energy source p.80-81,88-89, 

EN4 Indirect energy consumption broken down by primary 

source 

97,105-106 

EN5 Energy saved due to conservation and efficiency 

improvements 

p.81,85,87, 

90-92,97 

EN6 Initiatives to provide energy-efficient or renewable 

energy based products and services, and reductions in 

energy requirements 

EN7 Initiatives to reduce indirect energy consumption and 

reductions achieved 

EN8 Total water withdrawal by source p.82,88-89,98,106 

EN9 

EN10 

EN11 

EN12 

EN13 

EN14 

EN15 

EN16 

EN17 

EN18 

Water sources significantly affected by withdrawal of 

water 

Percentage and total volume of water recycled and 

reused 

Location and size of land owned, leased, managed 

in, or adjacent to, protected areas and areas of high 

biodiversity value outside protected areas 

Description of significant impacts of activities on 

biodiversity in protected areas and areas of high 

biodiversity value 


Strategies, current actions, and future plans for 

managing impacts on biodiversity 

Number of IUCN Red List species and national 

conservation list species with habitats in areas affected 

by operations, by level of extinction risk 

Total direct and indirect greenhouse gas emissions by 

weight 

Other relevant indirect greenhouse gas emissions by 

weight 

Initiatives to reduce greenhouse gas emissions and 

reductions achieved 

n/a 

No water sources 

significantly 

affected 

p.82,88,98-99, 

106-107 

p.89,100,107 

p.80,87,97,105 

Data is currently 

not recorded 

p.80-81,85,87, 

90-92 

fully reported partially reported not reported n/a = not applicable 


GRI index 


Environmental indicators 

EN19 Emissions of ozone-depleting substances by weight p.82 

EN20 NOx, SOx, and other significant air emissions by type 

p.90-91 

and weight 

EN21 Total water discharge by quality and destination p.89,98,106-107 

EN22 Total weight of waste by type and disposal method p.83,94,101,108 

EN23 Total number and volume of significant spills p.92,101,108 

EN24 Weight of transported, imported, exported, or treated 

p.83,94,101,108 

hazardous waste 

EN25 Identity, size, protected status, and biodiversity value of 

water bodies and related habitats significantly affected 

by discharges of water and runoff 

n/a No water bodies 

or habitats 

significantly 

affected 

EN26 Initiatives to mitigate environmental impacts of products 

p.84,94,102,108 

and services, and extent of impact mitigation 

EN27 Percentage of products sold and their packaging n/a - 

materials that are reclaimed by category 

EN28 Value and number of significant fines and non-monetary 

p.79,86,97,104 

sanctions for non-compliance with environmental laws 

and regulations 

EN29 Significant environmental impacts of transporting 

p.94,101,108 

products and other goods and materials 

EN30 Total environmental protection expenditures and 

p.79,86,96,104 

investments by type 

MM1 Amount of land disturbed or rehabilitated p.83,89,101,107 

MM2 The number/percentage of sites identified as requiring 

p.89,100,107 

biodiversity management plans, and with plans in place 

MM3 Total amounts of overburden, rock, tailings and sludges 

and their associated risks 

p.82,92,94,101,108 

Labour Practices and Decent Work 

LA1 Total workforce by employment type, employment 

contract, and region 

p.43-44,47, 

48-49,54 

LA2 Total number and rate of employee turnover by age 

group, gender, and region 

p.43-44,47, 

48-49,54 

LA3 Benefits provided to full-time employees that are not 

p.44,48,53 

provided to temporary or part-time employees, by major 

operations 

LA4 Percentage of employees covered by collective 

p.43,45,50,54 

bargaining agreements 

LA5 Minimum notice period(s) regarding significant 

p.43 

operational changes 

LA6 Percentage of total workforce represented in formal 

p.45,54 

joint management-worker health and safety committees 

that help monitor and advise on occupational health and 

safety programs 

LA7 Rates of injury, occupational diseases, lost days, and 

absenteeism, and number of work-related fatalities by 

p.29-33,35-36, 

38-40 

region 

LA8 Education, training, counselling, prevention, and riskcontrol 

p.29-40 

programmes in place regarding serious diseases 

LA9 Health and safety topics covered in formal agreements 

p.43 

with trade union 

LA10 Average hours of training per year per employee by 

p.47,49,54 

employee category 

LA11 Programs for skills management and lifelong learning p.43,45,49-50,53 

LA12 Percentage of employees receiving regular performance 

p.43,45 

and career development reviews 

LA13 Composition of governance bodies and breakdown of 

p.47,49,54 

employees per category according to gender, age group, 

minority group membership, and other indicators of 

diversity 

LA14 Ratio of basic salary of men to women by employee 

p.43 

category 

MM4 Number of strikes and lock-outs exceeding one week’s 

duration by country 

n/a 

No strikes 

or lock-outs 

MM12 Approach to identifying, preparing for, and responding 

to emergency situations 

p.31,32,35-36,39 

MM13 

Number of new cases of occupational disease by type. 

Programmes to prevent occupational disease 

p.30,32-33,36, 

39-40 


Human Rights 

HR1 Percentage and total number of significant investment 

agreements that include human rights clauses or human 

rights screening 

HR2 

HR3 

HR4 

HR5 

HR7 

HR8 

HR9 

MM5 

Society 

SO1 

SO2 

S03 

Percentage of significant suppliers and contractors that 

have undergone screening on human rights and actions 

taken 

Employee training on policies and procedures concerning 

aspects of human rights 

Total number of incidents of discrimination and actions 

taken 

Operations identified in which the right to exercise 

freedom of association and collective bargaining may be 

at significant risk 

Operations identified as having significant risk for 

incidents of forced or compulsory labour 

Percentage of security personnel trained in policies or 

procedures concerning human rights 

Total number of incidents of violations involving rights 

of indigenous people and actions taken 

Total number of operations taking place in or adjacent 

to Indigenous Peoples’ territories, and number and 

percentage of operations or sties where there are formal 

agreements with Indigenous Peoples’ communities 

Nature, scope, and effectiveness of any programs 

and practices that assess and manage the impacts 

of operations on communities, including entering, 

operating, and exiting 

Percentage and total number of business units analysed 

for risks related to corruption 

Percentage of employees trained in organisation anticorruption 

policies and procedures 

n/a 

No significant 

investment 

agreements 

in 2010 

p.19 

p.19 

p.43 

p.43,50,54 

p.19 

p.19 

p.62,70,75 

p.62-63,70,75 

p.57-77 

S04 Actions taken in response to incidents of corruption n/a No incidents of 

corruption 

SO5 Public policy positions and participation in public policy 

p.19 

development and lobbying 

SO6 Total value of financial and in-kind contributions to 

p.19 

political parties, politicians, and related institutions by 

country 

SO7 Total number of legal actions for anti-competitive 

p.19 

behaviour, anti-trust, and monopoly practices and their 

outcomes 

SO8 Monetary value of and total number of fines or nonmonetary 

p.62,79,86,97,110 

sanctions for non-compliance with laws/ 

regulations 

MM6 Number and description of significant disputes relating 

p.62 

to land use, customary rights of local communities and 

Indigenous Peoples 

MM7 The extent to which grievance mechanisms were used 

to resolve disputes relating to land use, customary rights 

of local communities and Indigenous Peoples, and 

the outcomes 

p.57-77 

MM8 

MM9 

Number (and percentage) of company operating 

sites where artisanal and small-scale mining (ASM) 

takes place on, or adjacent to, the site; the associated 

risks and the actions taken to manage and mitigate 

these risks 

Sites where resettlements took place, the number of 

households resettled in each, and how their livelihoods 

were affected in the process 

n/a 

n/a 

p.18 

p.18 

No artisinal mining 

and small-scale 

mining taking 

place 

No resettlement 

MM10 Number and percentage of operations with closure plans p.94,102 

Product Responsibility 

PR1 Life cycle stages in which health and safety impacts of 

p.82,84,94,102 

products and services are assessed for improvement, 

and percentage of significant products and services 

categories subject to such procedures 

PR3 Type of product and service information required by n/a 

procedures, and percentage of significant products and 

services subject to such information requirements 

PR6 Programs for adherence to laws, standards, and 

n/a 

voluntary codes related to marketing communications, 

including advertising, promotion, and sponsorship 

PR9 Monetary value of significant fines for non-compliance n/a 

No fines 

with laws/regulations concerning the provision and use 

of products and services 

MM11 Programs and progress relating to materials stewardship p.82,84,94,102 

fully reported partially reported not reported n/a = not applicable 


Glossary 

ALABC Australia-Latin America 

Business Council. 

AQC Air Quality Control centre. 

The centre monitors sulphur dioxide 

emissions and weather conditions 

and directs the operations of the 

Mount Isa Mines smelters to control 

sulphur dioxide concentrations within 

license limits. 

ARG Australian Railroad Group. 

ATSI Aboriginal and Torres 

Strait Islander. 

AusIMM Australian Mining Institute of 

Mining and Metallurgy. 

AWAs Australian Workplace Agreements. 

Biodiversity An abbreviation of 

‘biological diversity’ that means the 

variability among living organisms from 

all sources, including land based and 

aquatic ecosystems of which they are 

a part. These include diversity within 

species, and of ecosystems. 

Business Principles Xstrata’s Statement 

of Business Principles sets out the 

ethical framework for the way we work 

globally. The statement sets out specific 

aspirations and commitments that 

apply to the company’s relations with 

its customers, employees, stakeholders, 

partners, suppliers and in the 

communities where it operates. 

Carbon intensity Calculated as CO 2 -e 

tonnes per tonne of product. 

CAS Community Attitudes Survey. 

Closure Plan A formal document 

detailing a costed conceptual outline of 

how the operation will be completed, 

taking into account the options available 

to deal with prevailing social and 

environmental issues. 

CMLR Centre for Mined 

Land Rehabilitation. 

CO 2 -e Carbon dioxide equivalent is a 

standard metric by which greenhouse 

gases other than carbon dioxide are 

converted to CO 2 equivalence to 

facilitate comparisons and quantification. 

Commodity business Xstrata’s 

activities are structured into global 

commodity businesses organised along 

commodity lines. 

Community grievances Any issue 

raised by a member of the community 

relating to the operation in question, 

whether resolved or not. This can relate 

to an enquiry or other incident or noncompliance. 

CPRS Carbon pollution 

reduction scheme. 

CRL Copper Refinery Limited. 

CSI Corporate Social Involvement. 

Cu copper. 

DAG Death Adder Gully. 

DEEWR Federal Government 

Department of Education, Employment 

and Workplace Relations. 

DERM Queensland Department of 

Environment and Resource Management. 

DISR – Disabling Injury Severity 

Rate = (LTI days lost + RWI days lost) 

x 1,000,000/hours worked in the 

reporting period. 

DMP Drought Management Plan. 

DPM – Diesel Particulate Matter 

– consisting of small particles that 

aggregate to form chains to make 

larger particles which are usually less 

than one micron. 

EBAs Enterprise Bargaining Agreements. 

EEO Energy Efficiency Opportunity. 

EGRU Economic Geology Research Unit. 

EHM Ernest Henry Mining. 

EIP Environmental Improvement Plan. 

EIS Environmental Impact Statement. 

EITE Emissions Intensive Trade Exposed. 

EITI Extractive Industries Transparency 

Initiative aims to increase transparency in 

transactions between governments and 

companies within extractive industries. 

EMESRT Earth Moving Equipment Safety 

Round Table. 

EMP Environmental 

Management Program. 

EMS Environmental 

Management System(s). 

ERT Emergency Response Team. 

ESIA Environmental and Social 

Impact Assessment. 

ESL English as a second language. 

ETS Emissions trading scheme. 

Fatality A death resulting from an 

occupational injury or disease/illness and 

identified within the reporting period. 

FIFO Fly-in/fly-out (type of employee/ 

contractor). 

Feed Ore entering the beginning of a 

unit process. 

Fresh water Untreated water extracted 

from ground water, dams or rivers. 

GET Ground Engaging Tools. 

GFC Global Financial Crisis. 

GFM George Fisher Mine. 

GHG – Greenhouse gas Any gas 

that absorbs infra-red radiation in the 

atmosphere, causing the warming of the 

earth’s atmosphere. 

GJ Gigajoules (1 GJ = 

1,000,000,000 joules). 

Global Compact The UN Global 

Compact is a voluntary corporate 

responsibility initiative to advance ten 

universal principles in the areas of 

human rights, labour, the environment 

and anti-corruption. 

GRI – Global Reporting Initiative 

a multi-stakeholder, international 

process whose mission is to develop 

and disseminate globally applicable 

Sustainability Reporting Guidelines to 

assist corporations in reporting on the 

economic, environmental, and social 

performance of their operations. 

H1N1 Influenza A virus. 

ha Hectares (1 ha = 10,000 

square metres). 

Hours worked Total number of hours 

worked by employees in the reporting 

period, including overtime and training, 

excluding leave, sickness and other 

absences, including the total number of 

contractor hours worked on site during 

the year. 

HPRI High Potential Risk Incident. 

IBA Indigenous Business Australia. 

ICA International Copper Association. 

IEP Indigenous Employment Program. 

ICMM International Council on Mining 

and Metals. 

ISO International 

Standardisation Organisation. 

ISO 14001 The International 

Standardisation Organisation’s standard 

for environmental management systems. 

ITEAs Individual Transitional 

Employment Agreements. 

IUCN International Union for 

Conservation of Nature. 

JRC Job Role Criteria. 

JSA Job Safety Analysis. 

Kg Kilogram (1 kg = 1,000 grams). 

kL Kilolitre (1 kL = 1,000 litres). 

Km Kilometre (1 km = 1,000 metres). 

kW Kilowatt (1 kilowatt = 

100,000 watts). 

Land disturbed Land disturbed by 

operational activities. 

Land rehabilitated Land disturbed by 

operational activities and then reshaped 

and revegetated. 

LDP Leadership Development Program. 

Local supplier – a supplier from the 

nearest regional centre with proximity to 

our mining operations. 

LPG Liquid petroleum gas. 

LPS Lead Pathways Study. 

LSI Life Styles Inventory. 

LTI – Lost Time Injury An occupational 

injury or disease that results in days 

away from work on any rostered shift 

subsequent to that on which the injury 

occurred. A fatality is also recorded as 

an LTI. 

LTIFR – Lost Time Injury Frequency 

Rate Lost time injury frequency rate = 

LTI x 1,000,000/hours worked in the 

reporting period. 

M3 Cubic metres. 

Materiality Disclosing all information of 

significant concern to stakeholders for 

assessing our economic, environmental, 

and social performance. 

MCA Minerals Council of Australia. 

MICC Mount Isa Chamber of Commerce. 

MICO Mount Isa copper operations, 

consisting of the Enterprise and X41 

underground copper mines and the 

copper concentrator. 

MISC Mining Industry Skills Centre. 

MISCAT Mount Isa Safe Community 

Action Team. 

MITA Mount Isa Tourism Association. 

MITEZ Mount Isa to Townsville 

Economic Zone. 

ML Megalitre (1 megalitre = 1,000,000 

litres or 1,000 kilolitres). 

ML8058 the Xstrata Mount Isa Mines 

mining lease. 

Mount Isa Mines Limited the copper 

and zinc-lead business operating 

on ML8058. 

MRRT Minerals Resource Rent Tax. 

MTI Medical Treatment Injuries – an 

occupational injury/illness which is not 

classified as an LTI or RWI, but which 

results in loss of consciousness or 

medical treatment after first aid. 

MW Megawatt, a unit for measuring 

electric power, which has the value of 

1,000,000 watts or 1,000 kilowatts. 

MWh Megawatt hours. 

μg/dl Micrograms per decilitre. 

μg/m2/day Micrograms per square 

metre per day. 

NGERS National Greenhouse and Energy 

Reporting System. 

NGOs Non-governmental organisations. 

NICP National Indigenous 

Cadetship Program. 

NISC National Industry Skills Centre. 

NNTT National Native Title Tribunal. 

NOHSC National Occupational Health 

and Safety Commission. 

NOx Oxides of nitrogen (nitric oxide and 

nitrogen dioxide). 

NPI National Pollutant Inventory. 

Australia’s national public database of 

pollutant emissions. 

NWQIRII North West Queensland 

Indigenous Resource Industry Initiative. 

NWQMP North West Queensland 

Minerals Province. 

Occupational illness An occupational 

illness is registered when it is confirmed 

as a work-related compensable case by a 

medical practitioner/physician. 

OEMs Original 

Equipment Manufacturers. 

Ore A mineral-bearing rock from which 

metal can be extracted. 

Oz Ounces. 

Particulate emissions Controlled 

discharges from stacks containing 

microscopic solids in the form of dust 

or smoke. 

PASS Positive Attitude Safety System. 

PER Review Performance and career 

development review. 

PJ Petajoules (1 PJ = 

1,000,000,000,000,000 joules). 

PM10 Particulate matter less than 10 

microns in size. 

PPE Personal protective equipment. 

QMEA Queensland Minerals and 

Energy Academy. 

QML Queensland Medical Laboratory. 

QRC Queensland Resources Council. 

Recycled water Recycled/re-used water 

is water that has been used at least 

once in a process within the operation 

or at another operation within the 

organisation; and that would otherwise 

be part of a waste stream; and if not 

re-used, would require the input of 

raw water. 

Red List IUCN Red List of 

Threatened Species. 

Rehabilitation In this report, 

rehabilitation is defined as disturbed 

areas that have been prepared for 

rehabilitation and seeded. 

RFDS Royal Flying Doctor Service. 

RSPT Resources Super Profit Tax. 

RWIs Restricted Work Injuries. 

SD Sustainable Development. 

SD Standards A set of 17 Standards 

which set out corporate performance 

expectations for each operation and 

against which sites and commodity 

businesses are independently 

audited through the Xstrata SD 

Assurance Program. 

SO 2 Sulphur dioxide. 

STEPers Structured Training and 

Employment Projects – Employment 

Related Services. 

Stormwater Rainfall that does not 

infiltrate into the soil but runs overland 

into creeks, catchment areas or manmade 

water storage facilities, such as 

dams (i.e. unplanned discharge of water). 

SWO Safe Work Observations. 

Tailings and tailings dams The fine 

fraction of waste rock remaining after 

the mining and on-site processing of 

mineral resources. Tailings are piped into 

engineered impoundments known as 

tailings dams. 

t tonnes. 

TARP Trigger Action Response Plan. 

TEL Townsville Enterprise Limited. 

TMS Training Management System. 

TOT Townsville Ocean Terminal. 

Townsville operations – Townsville 

copper refinery and port operations. 

TPUG Townsville Port Users Group. 

TRIFR – Total Recordable Injury 

Frequency Rate = (LTI + RWI + MTI) x 

1,000,000/hours worked. 

TWL Thermal work limit. 

UN United Nations. 

Wastewater discharged Total volume 

of effluent discharged to: surface water 

for irrigation; third parties for treatment; 

and rivers or oceans. 

WBV Whole Body Vibration. 

WHO World Health Organisation. 

XCPPNQ Xstrata Community Partnership 

Program North Queensland. 

Xplc Xstrata plc. 

XPS Xstrata Power Station. 

Xstrata Mount Isa Mines Xstrata 

Copper and Xstrata Zinc operations 

on ML8058. 

XT Xstrata Technology.

Xstrata Queensland Limited ABN 69 009 814 019 

GPO Box 1433 Brisbane Queensland Australia 4001 Tel +61 7 3295 7500 Fax +61 7 3295 7640 

Mount Isa Mines Limited 

ABN: 87 009 661 447 

Private Mail Bag 6 


Queensland 4825 

Australia 

Tel +61 7 4744 2011 

Fax +61 7 4744 3731 

Ernest Henry Mining Pty Ltd 

ABN: 18 008 495 574 

PO Box 527 

Cloncurry 


Australia 

Tel +61 7 4769 4500 

Fax +61 7 4769 4555 

Copper Refineries Pty Ltd 

ABN: 12 009 676 975 

PO Box 5484 

Townsville 


Australia 

Tel +61 7 4781 8211 

Fax +61 7 4778 2308 

www.xstrata.com 

MIM1700 04/11

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