Xstrata Copper North Queensland.pdf - Mount Isa Mines

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Our operations and economic performance Townsville operations 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 The Xstrata Copper North Queensland Division serves 16 countries in five markets including Asia, Europe, North America and the United Kingdom. The Xstrata Copper North Queensland 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: ■■ ■■ ■■ ■■ ■■ ■■ 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 ■ ■ ■■ $149.9 million spent on rail, power and water charges over $58 million paid to governments in taxes and charges. The Mount Isa Mines copper operations contributed to the Queensland economy through: ■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■ employment of 2,762 people; including 2,260 employees and 502 contractors an annual wages bill in excess of $264 million apprenticeship and youth training 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 annual Corporate Social Involvement 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: ■■ ■■ ■■ ■ ■ ■ ■ ■ ■ ■■ ■ ■ ■■ employment of 911 people; including 451 employees and 460 contractors an annual wages bill in excess of $51 million apprenticeship and youth training 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 annual Corporate Social Involvement contributions of $861,897 directed to 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. 22 XSTRATA COPPER NORTH QUEENSLAND
Our operations and economic performance The Ernest Henry Mining open pit copper-gold mine Local suppliers The Xstrata Copper North Queensland 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: ■■ ■■ ■■ ■ ■ ■ ■ ■■ ■ ■ ■ ■ 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 an annual wages bill in excess of $18 million apprenticeship and youth training 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 annual Corporate Social Involvement contributions of $244,031 directed to 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. In 2010 the Xstrata Copper North 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. Sustainability Report 2010 23
Page 1 and 2: Xstrata Copper North Queensland Sus
Page 3 and 4: Xstrata Copper North Queensland Xst
Page 5 and 6: Chief Executive’s message Environ
Page 7 and 8: Chief Operating Officer’s message
Page 9 and 10: Targets and scorecard We strive for
Page 11 and 12: Targets and scorecard Our People Mo
Page 13 and 14: Targets and scorecard Environment X
Page 15 and 16: Scope of report This report provide
Page 17 and 18: Our Sustainable Development Strateg
Page 19 and 20: Strategy and governance Left: Loadi
Page 21 and 22: Corporate governance Public policy
Page 23: Our operations and economic perform
Page 27 and 28: Our operations and economic perform
Page 29 and 30: Our operations and economic perform
Page 31 and 32: Workplace health and safety We aim
Page 33 and 34: Workplace health and safety Workpla
Page 35 and 36: Workplace health and safety Monitor
Page 37 and 38: Workplace health and safety Workpla
Page 39 and 40: Workplace health and safety case st
Page 41 and 42: Workplace health and safety Trini M
Page 43 and 44: Workplace health and safety Case st
Page 45 and 46: Our people We maintain a safe worki
Page 47 and 48: Our people Labour relations In 2010
Page 49 and 50: Our people Mount Isa Mines copper o
Page 51 and 52: Our people Employing locally EHM is
Page 53 and 54: Our people case study Transitioning
Page 55 and 56: Our people Our people Townsville op
Page 57 and 58: Case study Job Role Criteria greatl
Page 59 and 60: Sustainable communities We contribu
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Page 63 and 64: Sustainable communities The Xstrata
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Page 67 and 68: Sustainable communities Health Proj
Page 71 and 72: Sustainable communities Karen Elphi
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Sustainable communities Clockwise f
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Sustainable communities Total CSI e
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Sustainable communities Case study
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Environmental performance We aim to
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Environmental performance Recycled
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Environmental performance Above: Wi
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Environmental performance Case stud
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Environmental performance Sulphur d
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Environmental performance Energy In
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Environmental performance The NPI d
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Environmental performance Environme
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Environmental performance In August
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Environmental performance centre of
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Environmental performance case stud
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Environmental performance The secon
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Environmental performance Elizabeth
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GRI index This table indicates wher
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Glossary ALABC Australia-Latin Amer
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