Xstrata Copper North Queensland.pdf - Mount Isa Mines

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Environmental performance 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. The Xstrata Copper North Queensland 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 The Xstrata Copper North Queensland 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, the Xstrata Copper North Queensland 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 Xstrata Copper North Queensland 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 The Xstrata Copper North Queensland 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. 80 XSTRATA COPPER NORTH QUEENSLAND
Environmental performance 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 – Xstrata Copper North Queensland^ ‘000s GJ 12,000 Energy intensity – Xstrata Copper North Queensland^ 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. Sustainability Report 2010 81
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Chief Executive’s message Environ
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Xstrata Copper North Queensland.pdf - Mount Isa Mines

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