Adi Endro – Environmental Advisor, and Ryan Francis – Graduate Environmental Advisor, sample water at <strong>Mount</strong> <strong>Isa</strong> Golf Club, adjacent to the <strong>Xstrata</strong> <strong>Mount</strong> <strong>Isa</strong> <strong>Mines</strong> lease 78 XSTRATA COPPER NORTH QUEENSLAND
Environmental performance We aim to preserve the health, functions and long-term viability of the natural environments affected by our operations. In line with <strong>Xstrata</strong> <strong>Copper</strong>’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 <strong>Xstrata</strong>’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 our operations. <strong>Xstrata</strong> <strong>Copper</strong> is committed to its recycling business in <strong>North</strong> 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. <strong>Xstrata</strong> <strong>Copper</strong> 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 <strong>Xstrata</strong> <strong>Copper</strong> <strong>North</strong> <strong>Queensland</strong> 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 – <strong>Xstrata</strong> <strong>Copper</strong> <strong>North</strong> <strong>Queensland</strong> 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 <strong>Xstrata</strong> <strong>Copper</strong> <strong>North</strong> <strong>Queensland</strong> 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, <strong>Xstrata</strong> <strong>Mount</strong> <strong>Isa</strong> <strong>Mines</strong> 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 <strong>Mount</strong> <strong>Isa</strong> 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. The <strong>Xstrata</strong> <strong>Copper</strong> <strong>North</strong> <strong>Queensland</strong> Division has established environmental plans, management systems and procedures at its operations. <strong>Xstrata</strong> <strong>Copper</strong> reviewed and improved its ISO 14001-compliant environmental management systems through continually involving operational areas in its development, using feedback from the <strong>Xstrata</strong> SD Assurance Program, specialist audits, and other internal and external environmental benchmarking activities. Sustainability Report 2010 79
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