OneSteel Sustainability Report 2010 (PDF) - Arrium
OneSteel Sustainability Report 2010 (PDF) - Arrium
OneSteel Sustainability Report 2010 (PDF) - Arrium
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uilding a sustainable future<br />
sustainability REPORT <strong>2010</strong>
Preface<br />
It is difficult to imagine a world without steel.<br />
Steel is a fundamental building<br />
block of modern society, a key<br />
material in the infrastructure we<br />
depend on in our daily lives. The<br />
versatility of steel as a material<br />
delivers an ability for steel products<br />
to be transformed repeatedly after<br />
use in a variety of applications.<br />
As a company <strong>OneSteel</strong> is involved<br />
in all stages of the steel life cycle.<br />
It mines raw materials such as<br />
iron ore, produces iron and steel,<br />
manufactures and distributes steel<br />
finished products and collects<br />
scrap steel for recycling in the steel<br />
manufacturing process.<br />
This involvement in the production<br />
and re-use of steel ensures that<br />
<strong>OneSteel</strong> is committed to building<br />
a sustainable future for all of<br />
its stakeholders.<br />
<strong>OneSteel</strong> first produced a<br />
<strong>Sustainability</strong> <strong>Report</strong> as part of its<br />
Annual <strong>Report</strong> in 2007. This year<br />
<strong>OneSteel</strong> has chosen to produce a<br />
full separate online sustainability<br />
report that incorporates the<br />
Global <strong>Report</strong>ing Initiative (GRI)<br />
framework and principles.<br />
The <strong>2010</strong> <strong>Sustainability</strong> <strong>Report</strong> was<br />
prepared following research and<br />
consultation with a wide variety of<br />
stakeholders. The report focuses on<br />
the key areas of Safety & People,<br />
Customer & Market, Environment,<br />
Community and Economics.<br />
“ building a<br />
sustainable<br />
future ”
1<br />
Contents<br />
Contents<br />
IFC Preface<br />
2 About this <strong>Report</strong><br />
3 <strong>Sustainability</strong> Governance<br />
4 Managing Director’s Introduction<br />
6 <strong>Sustainability</strong> Drivers & Core Values<br />
8 Scorecard<br />
10 Safety & People<br />
18 Customer & Market<br />
24 Environment<br />
32 Community<br />
36 Economic<br />
38 GRI Index<br />
40 Glossary & Abbreviations
2<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
About this <strong>Report</strong><br />
Scope & Materiality<br />
<strong>OneSteel</strong> has elected to transition<br />
its <strong>Sustainability</strong> <strong>Report</strong> into a<br />
more comprehensive, standalone<br />
report to provide stakeholders with<br />
a greater level of communication<br />
on the company’s approach to<br />
sustainability. In doing this it was<br />
integral to engage key stakeholders<br />
in the determination of material<br />
aspects and information for the<br />
inclusion in the construction of<br />
the final report.<br />
The process for stakeholder<br />
engagement involved consultation<br />
and discussion of material<br />
aspects with each of the following<br />
stakeholder groups:<br />
• Government and<br />
non‐government organisations<br />
• Customers and industry<br />
• Investors, analysts and<br />
fund managers<br />
• <strong>OneSteel</strong> employees<br />
The feedback from this consultation<br />
helped to determine the most<br />
relevant and material information<br />
for inclusion in the report.<br />
In preparing the <strong>2010</strong> <strong>Sustainability</strong><br />
<strong>Report</strong>, <strong>OneSteel</strong> used a five-step<br />
process as outlined to the right.<br />
Throughout the engagement process<br />
to develop the <strong>2010</strong> <strong>Sustainability</strong><br />
<strong>Report</strong>, it has been confirmed<br />
that ongoing commitment to<br />
understanding and updating against<br />
key stakeholders’ information needs<br />
is paramount to creating a report<br />
with the ‘right content’.<br />
Boundary<br />
Approximately 90% of sites under<br />
<strong>OneSteel</strong>’s operational control<br />
are located in Australia. As this<br />
represents the vast majority of<br />
our interaction with sustainability<br />
issues, the content of this<br />
report has focused on domestic<br />
operations. In situations where<br />
overseas sites have been included<br />
in reported data, a statement to<br />
this effect has been provided.<br />
<strong>Report</strong> Development Process<br />
1. Market Assessment<br />
a. Our industry review of sustainability<br />
b. Adaptation of Global <strong>Report</strong>ing Initiative (GRI) to a <strong>OneSteel</strong><br />
reporting framework<br />
c. Approval of framework by the <strong>OneSteel</strong> <strong>Sustainability</strong> Panel<br />
2. Materiality Modelling<br />
a. Formation of stakeholder hypotheses<br />
b. Stakeholder engagement survey<br />
c. Materiality assessment of stakeholder feedback to determine<br />
scope of report<br />
3. Consolidation<br />
a. Audit of proposed report contents against the assessed<br />
materiality framework<br />
4. Endorsement<br />
a. Internal <strong>OneSteel</strong> <strong>Sustainability</strong> Panel Review<br />
b. GRI assessment<br />
5. Output<br />
a.<br />
b.<br />
Produce online <strong>Sustainability</strong> <strong>Report</strong><br />
Begin key stakeholder feedback collection on <strong>2010</strong> <strong>Report</strong>
3<br />
<strong>Sustainability</strong><br />
Governance<br />
<strong>Sustainability</strong><br />
Governance<br />
<strong>OneSteel</strong>’s Board is our most<br />
senior governance body. The Board<br />
operates a number of committees<br />
that deal with a variety of issues.<br />
From a sustainability<br />
perspective there are three<br />
main Board committees;<br />
• The Human Resources Committee<br />
is responsible for developing<br />
<strong>OneSteel</strong>’s strategic leaders and<br />
monitoring remuneration and<br />
incentive practices to ensure<br />
decision‐making behaviour is<br />
focused on deriving long-term<br />
value creation.<br />
• The Board Audit & Compliance<br />
Committee has the role of<br />
oversight of the establishment and<br />
maintenance of a framework of<br />
internal financial and accounting<br />
control and compliance.<br />
• The Occupational Health, Safety<br />
and Environment Committee<br />
regularly visits site operations<br />
to obtain an overview of the<br />
environment and the safe working<br />
operations of our locations,<br />
overseeing matters of legislative<br />
compliance, management<br />
systems and performance.<br />
The above three committees all<br />
report to <strong>OneSteel</strong>’s Board.<br />
<strong>OneSteel</strong> also has a <strong>Sustainability</strong><br />
Panel, comprised of senior<br />
company management, that<br />
considers sustainability matters<br />
within the company. The<br />
<strong>Sustainability</strong> Panel is chaired by<br />
a senior executive who provides<br />
a direct link between the panel<br />
and <strong>OneSteel</strong>’s CEO. The panel is<br />
comprised of a broad cross‐section<br />
of <strong>OneSteel</strong> businesses and<br />
functional areas. The Panel<br />
has leadership of the <strong>OneSteel</strong><br />
<strong>Sustainability</strong> Strategy, which is<br />
approved by the OHS&E Committee.<br />
The Panel is also responsible for<br />
the implementation of the <strong>OneSteel</strong><br />
<strong>Sustainability</strong> Principles, which can<br />
be found on the Scorecard.<br />
Governance Structure<br />
ONESTEEL BOARD<br />
ONESTEEL BOARD COMMITTEES COVERING SUSTAINABILITY<br />
AUDIT & COMPLIANCE<br />
COMMITTEE<br />
GENERAL MANAGER<br />
HUMAN RESOURCES<br />
GENERAL MANAGER<br />
SAFETY & ENVIRONMENT<br />
OHS&E COMMITTEE<br />
ONESTEEL SUSTAINABILITY PANEL<br />
EXECUTIVE GENERAL<br />
MANAGER TECHNOLOGY<br />
SAFETY & SERVICES (Chair)<br />
GENERAL MANAGER<br />
INVESTOR RELATIONS<br />
HUMAN RESOURCES<br />
COMMITTEE<br />
GENERAL MANAGER<br />
MARKETING STRATEGY<br />
PROJECT DIRECTOR CPRS<br />
GROUP FINANCIAL<br />
ACCOUNTANT<br />
CORPORATE MANAGER<br />
ENVIRONMENTAL<br />
SUSTAINABILITY (SECRETARY)<br />
THE ONESTEEL<br />
ENVIRONMENT NETWORK<br />
ONESTEEL BUSINESS FUNCTIONS
4<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Managing Director’s<br />
Introduction<br />
Welcome<br />
to <strong>OneSteel</strong>’s<br />
sustainability report<br />
for the year ended<br />
30 June <strong>2010</strong>.<br />
geoff plummer / Managing Director<br />
<strong>OneSteel</strong>’s mission to deliver<br />
superior and sustainable returns<br />
can only be achieved through<br />
sustainable business practices.<br />
Our approach to the way we do<br />
business in the communities in<br />
which we operate is underpinned by<br />
our sustainability principles,<br />
which include:<br />
Value for stakeholders<br />
Operate our businesses in an<br />
efficient and financially sustainable<br />
way in order to supply products<br />
and solutions that satisfy our<br />
customers’ needs and provide value<br />
to our stakeholders.<br />
Environmental protection<br />
Optimise the eco-efficiency of our<br />
products through the product lifecycle,<br />
including increased resource<br />
and energy efficiency in the<br />
production and distribution of our<br />
products and during the use of<br />
steel products. We are committed to<br />
the promotion of the recovery, reuse<br />
and recycling of steel and other<br />
products.<br />
Safety and health<br />
Foster the well-being of our<br />
employees and provide them<br />
with a safe and healthy working<br />
environment.<br />
Local communities<br />
Demonstrate social responsibility<br />
by promoting values and initiatives<br />
that show respect for the people<br />
and communities associated with<br />
our businesses.<br />
Ethical standards<br />
Conduct our business with high<br />
ethical standards in our dealings<br />
with employees, customers,<br />
suppliers and the community.<br />
Shareholder engagement<br />
Engage our stakeholders and<br />
independent third parties in<br />
constructive dialogue to help<br />
fulfil our sustainable development<br />
commitments.<br />
This year we have elected to<br />
report using the Global <strong>Report</strong>ing<br />
Initiative framework including<br />
providing information on our<br />
performance and initiatives<br />
against the above principles.<br />
I hope you find this new format for<br />
the report informative.<br />
geoff plummer<br />
Managing Director<br />
Geoff Plummer with Laverton<br />
Steel Mill employees.
5<br />
Managing<br />
Director’s<br />
Introduction<br />
Value for stakeholders<br />
Environmental protection<br />
safety & health<br />
local communities<br />
ethical standards<br />
shareholder engagement<br />
onesteel<br />
sustainability<br />
principles
6<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
<strong>Sustainability</strong> Drivers<br />
& Core Values<br />
ECONOMIC<br />
COMMUNITY<br />
ENVIRONMENT<br />
PEOPLE<br />
MARKET<br />
CORE VALUES<br />
SAFETY<br />
CUSTOMERS<br />
<strong>OneSteel</strong>’s <strong>Sustainability</strong> <strong>Report</strong>ing<br />
Framework illustrated here as the<br />
content of a Grinding media ball.<br />
Safety is one of two core values in<br />
<strong>OneSteel</strong>. Our goal is to establish a<br />
workplace free from injuries, incidents<br />
and illness. <strong>OneSteel</strong> demonstrates a<br />
strong commitment to occupational<br />
health and safety, believing that all<br />
injuries, occupational illnesses and<br />
incidents are preventable.<br />
Customer is a core value at <strong>OneSteel</strong>.<br />
In meeting our promise to customers,<br />
we sell over 40,000 products to a<br />
wide range of end markets including<br />
residential and non-residential,<br />
engineering construction, mining,<br />
consumables, manufacturing,<br />
automotive and rural.
7<br />
<strong>Sustainability</strong> Drivers<br />
& Core Values<br />
<strong>Sustainability</strong> Drivers<br />
& Core Values<br />
Onesteel employs over 10,000 people, services over<br />
30,000 customers, produces 40,000 products and<br />
generates<br />
$6 billion in revenue<br />
MARKET<br />
PEOPLE<br />
ENVIRONMENT<br />
COMMUNITY<br />
ECONOMIC<br />
<strong>OneSteel</strong> produces and sells over<br />
2 million tonnes of steel products in<br />
Australia and exports over 6 million<br />
tonnes of iron ore to overseas steel<br />
makers as well as having one of<br />
Australia’s largest metal<br />
recycling operations.<br />
<strong>OneSteel</strong> employs approximately 10,000<br />
people across Australia, New Zealand,<br />
the United States and Asia, of which<br />
over 67% of employees were involved in<br />
safety observations<br />
during FY10.<br />
Environmental material inputs include<br />
iron ore, coal, steel scrap, limestone,<br />
oxygen and water. <strong>OneSteel</strong>’s outputs<br />
include scrap, carbon dioxide, water,<br />
slag, hot gases and waste products.<br />
55% of steel produced is made from<br />
recycled material collected externally.<br />
<strong>OneSteel</strong> engages with the community<br />
at major sites through several<br />
consultation groups such as the<br />
Environment Consultation Group in<br />
Whyalla and Waratah Community<br />
Liaison Committee in Newcastle. Across<br />
<strong>OneSteel</strong>, businesses and sites invest<br />
in improving the local community and<br />
engage with communities, governments<br />
and other representative bodies.<br />
<strong>OneSteel</strong>‘s total revenue was $6.2 billion<br />
during FY10 with payments to providers<br />
of capital of $212 million.
8<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Scorecard<br />
<strong>Sustainability</strong><br />
Drivers <strong>Sustainability</strong> Principles Outcomes 2009-<strong>2010</strong> Planned Initiatives 2011-2012<br />
Safety<br />
& People<br />
• Foster the well-being of<br />
our employees and provide<br />
them with a safe and healthy<br />
working environment.<br />
13% improvement in the Lost Time Injury Frequency Rate (LTIFR) to 1.4 per million<br />
hours worked and a further 9% improvement in the Medical Treatment Injury<br />
Frequency Rate (MTIFR) to 8.3 per million hours worked. Despite these<br />
improvements <strong>OneSteel</strong> incurred a fatality during the year.<br />
<strong>OneSteel</strong> seeks to achieve ‘Goal Zero’; a workplace free from<br />
injuries, incidents and illness.<br />
Over 67% of our employees were actively engaged in safety observations.<br />
<strong>OneSteel</strong> was recently recognised at the Self Insurance of South Australia Awards<br />
in a number of categories.<br />
Programs aimed at increasing employee awareness of<br />
hazards in their environment, encouraging employees to<br />
consider potential risks and reporting potential issues or<br />
incidents.<br />
10th Anniversary of the <strong>OneSteel</strong> Safety Excellence Awards saw a record number<br />
of nominations from across the business. This program has also resulted in over<br />
$12,000 being donated to charity by the winners of these awards.<br />
<strong>OneSteel</strong> will continue to promote and reward employees and<br />
contractors for their safety excellence.<br />
• Conduct our business with high<br />
ethical standards in our dealings<br />
with employees, customers,<br />
suppliers and the community.<br />
<strong>OneSteel</strong> has continued to invest in the development of skills for the future with<br />
over 170 apprentices and more than 100 cadets and graduates currently employed.<br />
<strong>OneSteel</strong>’s employee-initiated turnover rate was approximately 8% this financial<br />
year, the lowest annual rate since 2005.<br />
Continue to develop leaders to ensure ready successors for<br />
key roles to meet the future capability and leadership needs<br />
of <strong>OneSteel</strong><br />
Build the capability of front-line leaders in the manufacturing<br />
businesses to both effectively engage employees and to drive<br />
more effective manufacturing processes<br />
Customer<br />
& Market<br />
• Engage our stakeholders and<br />
independent third parties<br />
in constructive dialogue to<br />
help fulfil our sustainable<br />
development commitments.<br />
Provided data (Life Cycle Inventory) on energy consumption and greenhouse gas<br />
production to Worldsteel Association’s Climate Action Program, to contribute to<br />
ongoing efforts of the global steel industry to improve carbon efficiencies.<br />
Worked with the Green Building Council of Australia as part of their Steel Expert<br />
Reference Panel to revise the GreenStar ® steel credit to drive more sustainable<br />
use of steel in construction.<br />
<strong>OneSteel</strong> is updating Life Cycle Inventory for approximately<br />
60% of steel products to be provided to the Building Products<br />
Innovation Council to be made publically available in 2011.<br />
Work with the Green Building Council of Australia, Australian<br />
Green Infrastructure Council and Steel Stewardship Forum<br />
to engage in further cooperative activities to promote<br />
stewardship and sustainability in steel.<br />
Promoted the more sustainable design of steel buildings with the provision of<br />
a ‘Design for Deconstruction’ note for industry reference.<br />
Support and promote changes to steel standards, with<br />
particular reference to the mandatory marking of steel to<br />
enable product re-use.<br />
Presented at and also attended multiple technical conferences and symposiums,<br />
supporting education and scientific research on the sustainable use of steel.<br />
Conduct a broader awareness campaign to ensure all relevant<br />
stakeholders are informed of the sustainable application<br />
of steel including understanding Green Building Council of<br />
Australia’s GreenStar ® steel credit
9<br />
Scorecard<br />
Scorecard<br />
<strong>Sustainability</strong><br />
Drivers <strong>Sustainability</strong> Principles Outcomes 2009-<strong>2010</strong> Planned Initiatives 2011-2012<br />
Environment<br />
• Optimise the eco-efficiency of<br />
our products through the product<br />
life-cycle, including increased<br />
resource and energy efficiency in<br />
the production and distribution<br />
of our products and during the<br />
use of steel products. We are<br />
committed to the promotion of<br />
the recovery, re-use and recycling<br />
of steel and other products.<br />
<strong>OneSteel</strong> is deriving some reductions in greenhouse gas emissions through<br />
incremental energy efficiency projects at sites. These gains do not necessarily<br />
translate to overall site greenhouse gas intensity data improvements due to their<br />
size and other factors. In terms of seeking larger step change in greenhouse<br />
intensity work this has continued in Research & Development on biomass and dry<br />
slag granulation projects.<br />
Under the Energy Efficiencies Opportunities (EEO) program <strong>OneSteel</strong> has reported<br />
implementing projects resulting in a total energy reduction of over 290 TJ/yr,<br />
equating to 55 ktCO 2<br />
-e/yr since 2006.<br />
Established in 2009, <strong>OneSteel</strong>’s Technical Energy Network (OSTEN) has been<br />
designed to improve our response to energy and resource efficiency.<br />
<strong>OneSteel</strong>’s Strategic <strong>Sustainability</strong> Plan will continue to see<br />
improvements across the business in relation to emissions.<br />
Over the coming year, <strong>OneSteel</strong>’s Technical Energy Network<br />
will be continuing the roll-out of an extensive Change<br />
Management Program with a heavy focus on improving the<br />
organisation’s attitude towards energy conservation.<br />
<strong>OneSteel</strong> Whyalla reduced its Murray River water consumption by approximately<br />
700 million litres over the past 2 years despite further increases in magnetite<br />
processing and hematite mining & export in the same period.<br />
<strong>OneSteel</strong> Whyalla has a medium term target of using less<br />
than 5,800 million litres per annum from the Murray River<br />
and is carrying out further water reduction projects and<br />
investigating the installation of a small saltwater reverse<br />
osmosis plant to assist in meeting this goal.<br />
Community<br />
• Demonstrate social responsibility<br />
by promoting values and<br />
initiatives that show respect for<br />
the people and communities<br />
associated with our businesses.<br />
The <strong>OneSteel</strong> workplace giving program, OneCommunity, donated $219,000 to our<br />
supported charities.<br />
The Whyalla Red Dust Action Group disbanded after successful community<br />
engagement to address the red dust issues in Whyalla, with none of the<br />
allowable 5 p.a. days exceeding the community dust target.<br />
In the coming year, <strong>OneSteel</strong> is planning to relaunch the<br />
OneCommunity program to increase employee participation<br />
and maximise our impact.<br />
<strong>OneSteel</strong> Whyalla will increase its already active environmental<br />
and social responsibility program to benefit the community of<br />
Whyalla, and will continue to actively communicate dust and<br />
environmental performance.<br />
Further $50,000 payment to University of New South Wales to continue<br />
undergraduate and postgraduate student development.<br />
<strong>OneSteel</strong> and University of New South Wales can further<br />
strengthen the relationship with an additional funding pledge<br />
over the next five years beginning in 2011.<br />
$323,000 in regional contributions to the community. <strong>OneSteel</strong> will continue to encourage regional investment<br />
in the community on an ongoing basis.<br />
Economic<br />
• Operate our businesses in<br />
an efficient and financially<br />
sustainable way in order to supply<br />
products and solutions that<br />
satisfy our customer’s needs and<br />
provide value to our stakeholders.<br />
<strong>OneSteel</strong>‘s total revenue was $6.2 billion during FY10 with payments to providers<br />
of capital of $212 million.<br />
Expected high prices compared to historical standards in<br />
iron ore, and scrap steel, together with improved demand<br />
from the commencement of infrastructure projects and from<br />
economic recovery, is expected to benefit <strong>OneSteel</strong> and its<br />
stakeholders in the short term.
10<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
<strong>2010</strong><br />
onesteel<br />
sustainability drivers
11<br />
Safety &<br />
People<br />
Safety & People<br />
1 2 3 4 5 6 7<br />
The MTiFr per million hours<br />
worked improved a further<br />
9% to 8.3<br />
Our Approach to Safety<br />
Safety is one of two core values<br />
that underpins <strong>OneSteel</strong>’s mission<br />
to deliver superior and sustainable<br />
returns. <strong>OneSteel</strong> will not<br />
compromise on safety.<br />
In <strong>OneSteel</strong>, occupational health and<br />
safety is everyone’s responsibility.<br />
Our goal is to establish a workplace<br />
free from injuries, incidents and<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
Perc<br />
2006<br />
2007<br />
2008<br />
2009<br />
<strong>2010</strong><br />
%<br />
Medical Treatment Injury<br />
Frequency Rate<br />
illness. The Safety Principles listed<br />
opposite outline the philosophy<br />
guiding Onesteel’s approach to safety.<br />
The role of management is to provide<br />
direction, set the safety standards<br />
and drive improvement within the<br />
business to assist all employees,<br />
contractors and visitors in working<br />
towards the goal of ZERO incidents,<br />
injuries and occupational illnesses.<br />
2.0<br />
1.5<br />
1.0<br />
0.5<br />
0.0<br />
%<br />
2006<br />
2007<br />
2008<br />
2009<br />
Lost Time Injury<br />
Frequency Rate<br />
<strong>2010</strong><br />
All employees must value each and<br />
every contribution towards making<br />
<strong>OneSteel</strong> a safer place to work, and<br />
improving our personal health and<br />
safety (source: <strong>OneSteel</strong> Occupational<br />
Health, Safety and Environment<br />
Committee Charter).<br />
Our Safety Performance<br />
<strong>OneSteel</strong>’s injury rate for the<br />
2009/<strong>2010</strong> Financial Year continued<br />
the improvement trend previously<br />
evident. The Lost Time Injury<br />
Frequency Rate (LTIFR) improved a<br />
further 13% to 1.4 and the Medical<br />
Treatment Injury Frequency Rate<br />
(MTIFR) improved 9% to 8.3. All<br />
safety statistics on this page include<br />
contractors. LTIFR and MTIFR<br />
statistics include the former Smorgon<br />
Steel sites from 2008.<br />
Despite these improvements we were<br />
deeply saddened to report the fatality<br />
of one of our employees during<br />
the year. The Company carried out<br />
intensive investigations in relation to<br />
the fatality and remains determined<br />
to eliminate fatalities from our<br />
operations.<br />
The <strong>OneSteel</strong><br />
Safety<br />
Principles<br />
All injuries can be prevented<br />
Working safely is a condition of employment<br />
Employee involvement is essential<br />
Management is accountable for safety<br />
All operating exposures can be safeguarded<br />
Training employees to work safely is essential<br />
GOAL<br />
NO INCIDENTS<br />
ZERO<br />
MTIFR = (Fatalities + Lost Time Cases<br />
+ Medical Treatment Treated Injuries<br />
but excludes minor injuries)<br />
per million hours worked.<br />
LTIFR = (Fatalities + Lost Time Cases)<br />
per million hours worked.<br />
Recording and reporting of incidents<br />
is in line with applicable legislation<br />
and follows AS1885.1 1990<br />
Note: there was a merger with Smorgon<br />
Steel in 2008<br />
NO INJURIES
12<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Safety & People<br />
the onesteel oh&s plan recognises<br />
that injury prevention programs alone will<br />
not prevent significant incidents<br />
1 2 3 4 5 6 7<br />
Our actions in Safety to Build<br />
a Sustainable Future<br />
<strong>OneSteel</strong> Safety Plan<br />
Throughout the year the CEO led a<br />
review of the <strong>OneSteel</strong> approach to<br />
safety, including the effectiveness<br />
of the implementation of our<br />
Codes of Practice, a review of our<br />
approach to safety at small sites,<br />
and the suitability of our existing<br />
performance measures to drive the<br />
reduction of significant incidents.<br />
A comprehensive <strong>OneSteel</strong><br />
Occupational Health and Safety<br />
(OHS) plan has been cascaded<br />
into the <strong>OneSteel</strong> business units.<br />
The plan recognises that injury<br />
prevention programs alone will not<br />
prevent significant incidents and<br />
our approach reflects the need to<br />
continue to build the capability and<br />
systems in the organisation so that<br />
the organisation continually improves<br />
its ability to recognise, assess and<br />
manage significant risk.<br />
Safety Leadership<br />
The Occupational Health Safety and<br />
Environment (OHSE) Council oversees<br />
the execution of the OHS plan and<br />
drives continued improvement. The<br />
Council, chaired by the Managing<br />
Director and Chief Executive Officer,<br />
includes the key business leaders<br />
and provides focus, alignment, and<br />
accountability across <strong>OneSteel</strong> for<br />
key OHS activities.<br />
Throughout the year <strong>OneSteel</strong><br />
continued to use the DuPont<br />
organisation to assist in safety<br />
improvement activities.<br />
Safety Management Systems<br />
The OHS Management System Audit<br />
Program utilises the national self–<br />
insurers auditing model to facilitate<br />
an internal safety management<br />
system audit process. This provides<br />
the site with gap analysis and<br />
recommendations for safety system<br />
improvements and supports our<br />
National self–insurance licensing.<br />
A new common <strong>OneSteel</strong><br />
computer–based safety information<br />
management system for such<br />
elements as injury and incident<br />
investigation and hazard registers has<br />
been developed. The system has been<br />
implemented within our Recycling<br />
business. The system is designed to<br />
improve consistency of reporting,<br />
facilitate the sharing of information<br />
as well as provide a tool to facilitate<br />
the effective management of<br />
corrective actions. Implementation<br />
of the common system across the<br />
remainder of the organisation will<br />
commence in the second half of <strong>2010</strong>.<br />
Risk Management<br />
Emphasis has been placed on building<br />
capability in hazard identification, risk<br />
assessment and risk management.<br />
During the year, implementation<br />
continued for each of the 14 <strong>OneSteel</strong><br />
Codes of Practice. The Codes of<br />
Practice represent the minimum<br />
standards for the management<br />
of common significant risks<br />
across <strong>OneSteel</strong>.<br />
The <strong>OneSteel</strong> Assurance Program<br />
reviews compliance with the Codes of<br />
Practice through auditing, reporting,<br />
and monitoring close–out of actions.
Safety & People<br />
<strong>OneSteel</strong>’s LTIFR of 1.4 is well below that<br />
of our global steel industry peers which<br />
averaged a LTIFR of 3.88 for the five–year<br />
period from 2005 until 2009<br />
13<br />
Safety &<br />
People<br />
1 2 3 4 5 6 7<br />
Employee Engagement<br />
Ensuring a high level of employee<br />
involvement in safety activities is<br />
an essential element of <strong>OneSteel</strong>’s<br />
approach to further reducing<br />
workplace injuries and incidents.<br />
<strong>OneSteel</strong> is driving towards a culture<br />
of interdependence in regard to<br />
safety, whereby employees accept<br />
responsibility for their own safety but<br />
also actively care for the safety of<br />
one another.<br />
Engagement of all employees is seen<br />
as a key step in reducing incidents<br />
and accidents. A number of programs<br />
operate throughout <strong>OneSteel</strong> that<br />
are aimed at increasing awareness of<br />
hazards in the working environment,<br />
encouraging employees to take time<br />
to consider potential risks prior to<br />
starting work and reporting potential<br />
issues or incidents. In the <strong>2010</strong><br />
financial year, 67% of our employees<br />
have been actively engaged in<br />
safety observations.<br />
External Environment<br />
Our Occupational Health and Safety<br />
systems, practices and performance<br />
have been an important element<br />
in <strong>OneSteel</strong> being granted Workers<br />
Compensation Self–Insurance status<br />
in all states where it is eligible.<br />
<strong>OneSteel</strong>’s LTIFR of 1.4 is well below<br />
that of our global steel industry peers<br />
which averaged a LTIFR of 3.88 for<br />
the five–year period from 2005<br />
until 2009.<br />
At the 2009 Self Insurers of South<br />
Australia Safety Awards, <strong>OneSteel</strong><br />
received the Injury Prevention<br />
award for the “Coke Ovens Charger<br />
Sleeve Automation” Project at<br />
Whyalla Coke Making. James<br />
Holmes from Whyalla Steel Products<br />
received the Outstanding Employee<br />
Contribution Award.<br />
The <strong>OneSteel</strong> Codes of Practice<br />
received a ‘Highly Commended’ award<br />
in the Best Workplace Health and<br />
Safety Management System Category<br />
at the 2009 NSW WorkCover<br />
Safety Awards.<br />
<strong>OneSteel</strong> was also well represented<br />
in the 2009 Australian Steel<br />
Institute Safety Awards:<br />
• Australian Tube Mills Newcastle<br />
Operations Manager Garry<br />
Meagher received the Safety<br />
Leader Individual Award.<br />
• Sheet Coil and Aluminium National<br />
Safety Manager Dave Beaman<br />
and Steel and Tube Quality, Safety<br />
and Environment Co-ordinator<br />
Max Sayer each received High<br />
Commendation Awards.<br />
• The teams at Sheet Coil<br />
Aluminium — Hemmant and<br />
Australian Tube Mills Newcastle<br />
also received High Commendation<br />
Awards in the site category.<br />
<strong>2010</strong> Safety Excellence Awards<br />
Through the <strong>OneSteel</strong> Safety<br />
Excellence Awards we recognise and<br />
reward those employees, contractors<br />
and suppliers who have made an<br />
outstanding contribution towards<br />
our goal of injury prevention and the<br />
reduction of significant incidents. The<br />
annual Safety Awards, which have<br />
been in place since the formation of<br />
the Company, also provide a platform<br />
to encourage sharing of best practice<br />
across the organisation.<br />
This year marked the 10th Anniversary<br />
of the <strong>OneSteel</strong> Safety Excellence<br />
Awards, and we again received a<br />
record number of nominations from<br />
across the business.<br />
Workplace Initiative winning project<br />
at Sydney Steel Mill<br />
Case study<br />
Workplace Initiative Winner:<br />
Sydney Steel Mill —<br />
Billet Disconnect<br />
At the Sydney Steel Mill, failure of the billet disconnect<br />
process regularly introduced an operating situation which<br />
required employees to closely interact with hot billets to bring<br />
the production process back into control.<br />
To address this issue a team of Operators, Maintenance<br />
Employees, and Process Engineers worked together to study<br />
the billet disconnect process. Through the application of six<br />
sigma analysis techniques the team was able to identify the<br />
critical process variables, which resulted in a successful start<br />
up, and pinpointed key equipment failures which impacted on<br />
the overall control of the process.<br />
The resulting modifications to the control system, and<br />
implementation of a robust process control plan, have<br />
delivered a sustainable improvement. Since the completion<br />
of the project, the Sydney Steel Mill Billet Caster has had no<br />
delays associated with the caster start up disconnect process.<br />
This initiative has resulted in safer working conditions and<br />
has also delivered an operating cost benefit.<br />
Good Safety is Good Business.
14<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Safety & People<br />
1 2 3 4 5 6 7<br />
The <strong>OneSteel</strong> Safety Excellence Awards categories, winners and finalists for <strong>2010</strong>, are shown below (pic).<br />
Safety Leader<br />
of the Year<br />
Contractor/Supplier<br />
of the Year<br />
Safety Frontline Leader<br />
of the Year<br />
Work Team/Department<br />
of the Year<br />
Workplace Safety Initiative<br />
of the Year<br />
Safety Employee<br />
of the Year<br />
Winner Winner Winner Winner Winner Winner<br />
Tony Schreiber,<br />
— ATM<br />
Konarg Pty Ltd<br />
— Brisbane<br />
Robin Unger,<br />
— Laverton Steel Mill<br />
Ironmaking<br />
— Whyalla<br />
Billet Disconnect<br />
— Sydney Steel Mill<br />
Frank Rocchi,<br />
— Whyalla, Steel Products<br />
Finalists Finalists Finalists Finalists Finalists Finalists<br />
Reuben Bird, SCA<br />
— George Ward<br />
Jason Ryan, HWE<br />
— Whyalla Mines and Exports<br />
Chris Draper, Recycling<br />
— Geebung<br />
Welshpool Distribution Centre<br />
— Midalia Steel<br />
Drum Loader,<br />
— Waratah — Grinding Media<br />
Paul Bolch,<br />
— Wire Ropes, Newcastle<br />
Garry Meagher, ATM<br />
— Newcastle<br />
Alex Fraser Demolitions<br />
— Whyalla<br />
Scott Funnell, Piping Systems<br />
— Kembla Grange<br />
Incident Investigation<br />
Committee — ATM<br />
Working at Heights<br />
— Top of Truck, ARC — Pinkenba<br />
Dale Bartlett, ATM<br />
— Acacia Ridge<br />
Bruce Rossow, Iron Duke Mine<br />
— Whyalla<br />
HWE — Sample Tray Collection<br />
Device — Whyalla Mines and<br />
Export<br />
Shayne Daniell, Iron Duke Mine<br />
— Whyalla<br />
Wire Ropes OHSE Committee<br />
— Newcastle<br />
Pneumatic Winch Puller,<br />
— Reinforcing — Acacia Ridge<br />
Nicola Clark, Piping Systems<br />
— Unanderra<br />
1 2 3 4 5 6<br />
Safety Awards photos:<br />
Photo 1 Safety Leader of the Year (left to right) Tony Schreiber & Dean Pritchard (Director)<br />
Photo 2 Safety Contractor of the Year (left to right) Kon Argyros and John Watson (WorkCover NSW)<br />
Photo 3 Safety Front-line Leader of the Year (left to right) Robin Unger and Graham Smorgon (Director)<br />
Photo 4 Work Team/Department of the Year — Whyalla Ironmaking (left to right) Damien Trenwith, Robert Peter and Eileen Doyle (Director)<br />
Photo 5 Workplace Safety Initiative of the Year (left to right): Andrew Unwin, Ghiath Wahbi, Geoff Plummer (Managing Director and CEO) and Cath Skidmore<br />
Photo 6 Safety Employee of the Year — Frank Rocchi
15<br />
Safety &<br />
People<br />
Safety & People<br />
1 2 3 4 5 6 7<br />
Our Approach to Human<br />
Resources<br />
<strong>OneSteel</strong> recognises that superior<br />
business performance and continued<br />
organisational growth requires<br />
capable and engaged people,<br />
combined with the appropriate<br />
organisational design and processes<br />
to deliver business outcomes.<br />
<strong>OneSteel</strong> employs around 10,000<br />
people, and our Human Resources<br />
and Organisational Effectiveness Plan<br />
articulates the key strategies and<br />
actions that <strong>OneSteel</strong> is employing<br />
towards business outcomes, as part<br />
of the overall <strong>OneSteel</strong> strategic plan.<br />
The key strategies of this plan include:<br />
• Supporting business<br />
improvement and growth<br />
initiatives<br />
• Driving succession, talent and<br />
development outcomes<br />
• Ensuring effective attraction,<br />
engagement and retention of<br />
employees<br />
Our Human Resources<br />
Performance<br />
The majority of <strong>OneSteel</strong>’s employees<br />
are full–time employees with around<br />
90% based in Australia.<br />
The graphs below show <strong>OneSteel</strong>’s<br />
employees according to employment<br />
type (Australia only), employment<br />
contract (Australia only) and region.<br />
Employment Type & Contract<br />
<strong>OneSteel</strong> also engages other labour<br />
either under contracts for services<br />
(eg. maintenance contractors) or<br />
under contracts for labour through<br />
labour hire providers. These equate<br />
Employment Type<br />
to approximately 2,000 full-time<br />
equivalents (FTEs). In FY10 <strong>OneSteel</strong>’s<br />
employee initiated turnover rate<br />
reduced to approximately 8% for<br />
the year, the lowest annual rate<br />
since 2005.<br />
Region<br />
With the majority of non–staff<br />
employees covered by collective<br />
agreements, <strong>OneSteel</strong> continues<br />
to effectively manage employee<br />
relations to facilitate ongoing<br />
productivity improvement and to<br />
ensure constructive workplace<br />
relationships. During the financial<br />
Employment Contract<br />
Executives 0.60%<br />
Permanent Full-Time 97.1%<br />
Staff 43.90%<br />
• Permanent Part-time 1.5%<br />
Wages/Award 55.50% Fixed term 0.6%<br />
•<br />
• casual 0.9%<br />
year, <strong>OneSteel</strong> has efficiently<br />
managed the introduction of the Fair<br />
Work legislation and the associated<br />
introduction of Modern Awards and<br />
the National Employment Standards.<br />
Region<br />
Australia 88.6%<br />
New Zealand/PNG/Fiji 7.0%<br />
Asia 2.0%<br />
• US 2.4%
6<br />
5<br />
-<br />
6<br />
9<br />
16<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Safety & People<br />
1 2 3 4 5 6 7<br />
Business Improvement and<br />
Growth Initiatives<br />
During the <strong>2010</strong> Financial Year,<br />
the <strong>OneSteel</strong> Human Resources<br />
team has played a key role in<br />
facilitating significant business<br />
change. A focus of the first half of<br />
the financial year was facilitating<br />
the company-wide labour cost<br />
reduction program. This program,<br />
which ran throughout P<br />
erc<br />
the 2009<br />
calendar year, resulted in annualised<br />
cost savings of approximately<br />
$160 million, of which $100 million<br />
is expected to be permanent<br />
irrespective of future operating<br />
levels. The program resulted in a<br />
7<br />
0<br />
+<br />
Age Profiles by Employment Group FY10<br />
Percentage of Employees<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
15–19<br />
20–24<br />
25–29<br />
30–34<br />
35–39<br />
40–44<br />
6<br />
Age profiles continue to demonstrate 0<br />
diversity<br />
4<br />
across various types of employees within onesteel<br />
8<br />
reduction of approximately 2,000<br />
full time equivalents during the 2009<br />
calendar year and was achieved<br />
through reductions<br />
3<br />
in the use of<br />
contractors, casuals and labour hire,<br />
as well as approximately 1,000 direct<br />
employees. These 2 reductions were<br />
partly achieved through voluntary<br />
redundancy programs with severance<br />
payments and out-placement<br />
support provided 1 as per our Human<br />
Resources policy.<br />
The <strong>OneSteel</strong> Recycling Australian<br />
Diversity<br />
1 2 2<br />
<strong>OneSteel</strong> is an equal opportunity 0 5 0 5<br />
employer where diversity is valued - - -<br />
1 2 2<br />
and actively sought. The key diversity 9 4 9<br />
indicators used to monitor and record<br />
diversity within <strong>OneSteel</strong> are those<br />
described within this summary and<br />
include:<br />
• Age profiles by employment group<br />
• Gender breakdown by employment<br />
group<br />
6<br />
0<br />
• Gender diversity of talent<br />
business also acquired Metals Trading<br />
management and development<br />
0<br />
and Ace Metals businesses during<br />
program participants 4<br />
2006 2007 2008 2009 <strong>2010</strong> 8<br />
the year and Human Resources were • Proportion of female recruits and<br />
instrumental in integrating people internal appointments<br />
3<br />
6<br />
from these businesses into <strong>OneSteel</strong>.<br />
45–49<br />
Age Groups<br />
50–54<br />
Energy (PJ)<br />
2<br />
4<br />
1<br />
2<br />
0<br />
50<br />
40<br />
30<br />
20<br />
10<br />
1<br />
5<br />
-<br />
1<br />
9<br />
2<br />
0<br />
-<br />
2<br />
4<br />
3<br />
6<br />
2<br />
4<br />
1<br />
2<br />
2<br />
5<br />
-<br />
2<br />
9<br />
3<br />
0<br />
-<br />
3<br />
4<br />
3<br />
5<br />
-<br />
3<br />
9<br />
4<br />
0<br />
-<br />
4<br />
4<br />
4<br />
5<br />
-<br />
4<br />
9<br />
3<br />
0<br />
-<br />
3<br />
4<br />
The table below right shows<br />
3the 4proportion 4 of females by<br />
5 0 5 7<br />
occupational - - -<br />
category.<br />
0<br />
Females<br />
3represent 4 4 13% of non-executive<br />
+<br />
9 4 9<br />
directors on the <strong>OneSteel</strong> Board<br />
and 12% of senior executives who<br />
are defined as reporting no more<br />
than two levels below the CEO. The<br />
proportion of female executives has<br />
increased over the past few years and<br />
is expected to continue this upward<br />
trend of increased representation of<br />
women in senior roles.<br />
During <strong>2010</strong> Financial Year, more<br />
than 20% of new recruits have<br />
been female, representing a<br />
higher proportion of than current<br />
female representation in the<br />
workforce. In addition, 23% of<br />
internal appointments during <strong>2010</strong><br />
were women. Similarly, female<br />
representation on development<br />
programs for high potential<br />
employees is higher than the<br />
general female representation in<br />
the workforce. For example, 33% of<br />
participants on the “YoungSteelers”<br />
7<br />
0<br />
+<br />
program have been female.<br />
<strong>OneSteel</strong> offers a range of<br />
competitive leave arrangements<br />
including paid maternity and<br />
paternity leave for most employees.<br />
<strong>OneSteel</strong> has a track record of<br />
Percentage of<br />
Female Employees<br />
by Category<br />
18%<br />
49%<br />
13% 12% 12% 12%<br />
Non-executive<br />
directors<br />
Executives<br />
Managers<br />
1%<br />
Professionals<br />
Clerical<br />
Wages<br />
Total<br />
0<br />
6<br />
7<br />
8<br />
9<br />
t CO2-e/ t Crude Steel<br />
55–59<br />
60–64<br />
65–69<br />
70+<br />
Age Profiles<br />
Executives<br />
Staff<br />
Employees<br />
Wage<br />
Employees<br />
high return rates from maternity<br />
leave for professional employees.<br />
There are many examples of flexible<br />
arrangements being put in place to<br />
accommodate individual needs, to<br />
facilitate return to work after parental<br />
leave and to assist with ongoing<br />
flexibility to provide work-life balance.<br />
<strong>OneSteel</strong>’s age profiles continue to<br />
demonstrate diversity across various<br />
types of employees.
17<br />
Safety &<br />
People<br />
Safety & People<br />
1 2 3 4 5 6 7<br />
Workers Compensation<br />
<strong>OneSteel</strong> has maintained self–<br />
insurance status in the relevant<br />
jurisdictions and continues to manage<br />
workers compensation in the non–<br />
self–insured states under existing<br />
commercial insurance arrangements.<br />
Contrary to previous trends,<br />
<strong>OneSteel</strong>’s outstanding self insurance<br />
claims liabilities increased during<br />
the course of the year. A number<br />
of factors contributed to this<br />
outcome, most notably an increase<br />
in compensation claims due to<br />
substantial labour rationalisation and<br />
organisational change during the<br />
2009 and <strong>2010</strong> financial years.<br />
Our Human Resources Actions<br />
to Build a Sustainable Future<br />
Driving Succession, Talent and<br />
Development Outcomes<br />
Leaders at <strong>OneSteel</strong> continue to<br />
focus on ensuring high calibre<br />
successors are available for<br />
leadership roles in the future. Over<br />
the past 12 months, approximately<br />
70% of senior management roles<br />
have been filled through internal<br />
succession. Leadership capability<br />
has also been extended through<br />
some targeted external recruitment,<br />
particularly into some key<br />
executive roles.<br />
<strong>OneSteel</strong> has continued to invest<br />
in the development of skills for the<br />
future with over 170 apprentices and<br />
more than 100 cadets and graduates<br />
currently employed. In addition,<br />
employees continue to be developed<br />
through coaching programs, targeted<br />
development interventions and<br />
development assignments to build<br />
the capability of our future leaders.<br />
<strong>OneSteel</strong> launched a new targeted<br />
attraction program for graduates<br />
during the <strong>2010</strong> financial year<br />
with a theme of “Extraordinary<br />
People, Extraordinary Careers”. This<br />
attraction program, in partnership<br />
with key relationships with a range of<br />
tertiary institutions and sponsorship<br />
of graduate development initiatives,<br />
has resulted in an increased calibre<br />
of graduates competing for our<br />
graduate roles this year. This is highly<br />
valued as graduates form a key<br />
pipeline for future senior manager<br />
roles in <strong>OneSteel</strong>.<br />
Workers Compensation Outstanding Claims Provision<br />
<strong>2010</strong><br />
$m<br />
2009<br />
$m<br />
2008<br />
$m<br />
New South Wales 21.2 20.1 21.6<br />
Queensland 3.3 2.3 2.7<br />
Victoria 5.3 2.4 3.7<br />
South Australia 2.3 4.4 2.8<br />
Western Australia 1.4 1.0 0.5<br />
Total — Self-insurance<br />
Workers Compensation<br />
Provision 33.6 30.2 31.3<br />
Case study<br />
<strong>OneSteel</strong>’s Commitment to Graduate<br />
Recruitment and Development<br />
<strong>OneSteel</strong> has a track record of successfully<br />
developing graduates across a range of<br />
disciplines to meet current and future<br />
business needs. <strong>OneSteel</strong> currently employs<br />
graduates in the disciplines of commercial/<br />
accounting, law, IT, HR, geology, sales<br />
and marketing, business management,<br />
operations, metallurgy and engineering.<br />
As well as recruiting high calibre graduates<br />
to be <strong>OneSteel</strong>’s future leaders, <strong>OneSteel</strong><br />
also invests significantly in the development<br />
of graduates and other high potential<br />
professionals who are commencing their<br />
careers with <strong>OneSteel</strong>. In addition to onthe-job<br />
and discipline-specific development,<br />
<strong>OneSteel</strong> runs an innovative leadership<br />
development program on an annual basis.<br />
The “YoungSteelers” program is designed to<br />
accelerate the development of participants<br />
by building an understanding of the<br />
overall <strong>OneSteel</strong> business and by assisting<br />
participants to take ownership of their own<br />
development and career management.<br />
This year there were 80 participants from<br />
across <strong>OneSteel</strong>, with every state and every<br />
business represented. The cohort also<br />
included significant diversity of gender, age<br />
and ethnic background.<br />
The YoungSteelers program has been<br />
running since 2006 and a recent review<br />
showed that 70% of previous participants<br />
were still employed in the business and of<br />
these, 60% had been promoted to a more<br />
senior role.<br />
This year, <strong>OneSteel</strong> has continued to<br />
engage and partner with a number of<br />
universities and other tertiary institutions.<br />
<strong>OneSteel</strong> managers have been involved<br />
in presenting guest lectures, providing<br />
work experience and hosting site visits<br />
to <strong>OneSteel</strong> facilities. This year <strong>OneSteel</strong><br />
has again been a sponsor of Students in<br />
Free Enterprise (SIFE), an international<br />
not-for-profit organisation which is run by<br />
volunteers and supported by corporate and<br />
individual donations. Teams of university<br />
students compete to create an ‘economic<br />
opportunity for others’ with the national<br />
championship bringing together teams for<br />
judging by senior business leaders from<br />
numerous organisations including <strong>OneSteel</strong>.<br />
Involvement in SIFE has proved an effective<br />
way of engaging with high calibre potential<br />
graduates and as a result of <strong>OneSteel</strong> has<br />
hired a number of successful graduates and<br />
vacation students.
18<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Customer & Market<br />
1 2 3 4 5 6<br />
Our Approach<br />
Like Safety, Customer is also a core<br />
value at <strong>OneSteel</strong>. Whilst explicitly<br />
defined as meeting our promise to<br />
customers today, in order to develop<br />
sustainable market offers of the future,<br />
<strong>OneSteel</strong> is constantly engaging in<br />
industry and customer partnerships<br />
to better understand, further develop<br />
and communicate steel’s role as a<br />
sustainable solution.<br />
We recognise the steelmaking<br />
process has some significant inherent<br />
environmental impacts; however<br />
<strong>OneSteel</strong>’s approach involves the<br />
adoption of specific in-market<br />
sustainability initiatives to address<br />
these. Such areas include life cycle<br />
analysis, waste reduction in use,<br />
sustainable construction design,<br />
product certification and compliance<br />
and industry communication and<br />
collaboration.<br />
<strong>OneSteel</strong> adopts a proactive approach<br />
to understanding and addressing<br />
customers and other stakeholders’<br />
sustainability perceptions and concerns<br />
relating to steel.<br />
Our Performance<br />
In 2009, <strong>OneSteel</strong> collaborated with<br />
the WorldSteel Association (WSA)<br />
and commissioned an analysis of<br />
Australian stakeholders including<br />
customers, conducted independently<br />
by Technische Universität<br />
Bergakademie Freiberg. This analysis<br />
and its international equivalents<br />
have shown us that our customers<br />
and stakeholders understand steel<br />
to be an essential part of society but<br />
that steel is sometimes thought of<br />
as part of the ‘problem’ rather than<br />
the ‘solution’. However, steel is a<br />
product with inherent sustainability<br />
advantages. Its strength and<br />
recyclability are two key factors that<br />
allow steel to be one of the most<br />
versatile products in the world and a<br />
part of building a sustainable future.<br />
Over the last financial year, <strong>OneSteel</strong><br />
Recycling (Australia) collected 1.7<br />
million tonnes of scrap steel by<br />
recycling. This helped enable more<br />
than half our sales (1.3 million<br />
tonnes) to be produced from recycled<br />
scrap, mainly via <strong>OneSteel</strong>’s three<br />
Electric Arc Furnaces. This resulted<br />
in an average recycled content of<br />
<strong>OneSteel</strong> products produced and<br />
sold of approximately 55 percent<br />
(excluding <strong>OneSteel</strong>’s internal scrap<br />
but including post industrial scrap).<br />
While this level of recycling is<br />
certainly significant and important<br />
to <strong>OneSteel</strong>, the actual proportion of<br />
recycled content is limited due to the<br />
long service life of steel products. For<br />
long products used in construction<br />
this is particularly the case, leading<br />
to a shortage of available scrap<br />
compared to steel demand, not only<br />
in Australia but around the world.<br />
This means that a significant portion<br />
of our steel must be produced from<br />
raw materials such iron ore and<br />
coking coal via Blast Furnaces such as<br />
<strong>OneSteel</strong>’s in Whyalla.<br />
Steel life cycle RAW<br />
MATERIALS<br />
Raw materials<br />
Steel production<br />
recycling<br />
Manufacturing<br />
use phase<br />
Steel Scrap<br />
Diagram shows the life cycle of steel<br />
from raw material extraction through<br />
to recycling.
19<br />
Customer<br />
& Market<br />
Customer & Market<br />
1 2 3 4<br />
5 6<br />
<br />
Our Actions to Build a<br />
Sustainable Future<br />
<strong>OneSteel</strong> has adopted a scientific life<br />
cycle based approach to encourage<br />
better sustainability outcomes for<br />
steel in our marketplace. Life cycle<br />
thinking requires consideration of the<br />
environmental and social externalities<br />
incurred from a product’s raw material<br />
extraction and manufacture through<br />
to its final disposal (see diagram on<br />
previous page). In steelmaking this<br />
is referred to as the impacts of a<br />
product from ‘cradle to grave’ or<br />
‘cradle to cradle’ when recycling or<br />
re-use is employed. At <strong>OneSteel</strong>, life<br />
cycle thinking encapsulates Life Cycle<br />
Inventory, Life Cycle Analysis and<br />
promoting the Waste Hierarchy.<br />
Life Cycle Inventory & Analysis<br />
Life Cycle Inventory (LCI) defines the<br />
inputs required to produce a product,<br />
its use and key outputs produced.<br />
In FY10 <strong>OneSteel</strong> provided a set of<br />
LCI data at the major manufacturing<br />
plant level for energy consumption<br />
and greenhouse gas production to<br />
the World Steel Association for their<br />
Climate Action Program. We are<br />
also currently updating LCI data at<br />
the construction product level for<br />
around 60% of our total production<br />
to help enable the long-term benefits<br />
of using steel in construction to<br />
be assessed. <strong>OneSteel</strong>’s LCI data<br />
will feed into a Building Product<br />
Innovation Council (BPIC) project<br />
that intends to produce a publicly<br />
available database of LCI data for the<br />
major Australian building products<br />
from 2011.<br />
LCI is the starting point for Life Cycle<br />
Analysis (LCA) which is a process<br />
for assessing the environmental<br />
impact of a product from the time of<br />
its creation to its post-consumption<br />
end-of-life.<br />
LCA provides a quantified<br />
environmental account for the<br />
whole life of a given product. This<br />
is an imperative consideration<br />
for the steel industry as the highembodied<br />
energy, water consumption<br />
and greenhouse gas emissions<br />
during steel manufacture, is<br />
often counterbalanced by the low<br />
environmental impact of the product<br />
during its extended use phase. Steel<br />
products in construction for example,<br />
are highly durable and easily<br />
re-used or recycled thus extending<br />
the product’s lifespan and<br />
significantly reducing environmental<br />
impact of having to produce ‘new’<br />
steel from raw materials. See right for<br />
an example of <strong>OneSteel</strong>’s application<br />
of improving recycled steel’s life cycle<br />
performance using patented Polymer<br />
Injection Technology.<br />
Onesteel is currently updating lci data at the<br />
construction product level for around 60% of our<br />
total production to help enable the long-term<br />
benefits of using steel in construction to<br />
be assessed<br />
Case study<br />
Polymer Injection Technology<br />
To minimise energy use, electric arc furnace (EAF) steelmaking<br />
facilities use coke or anthracite in slag foaming to insulate<br />
molten steel surface, keeping it hot for longer.<br />
The University of New South Wales (UNSW) has demonstrated<br />
that polymers (for example, rubber from tyres) can replace<br />
some of the coke within the EAF steelmaking process and<br />
increase the volume of foamy slag.<br />
The UNSW developed the idea that polymers contain an<br />
essential source of carbon required for slag foaming in EAF<br />
steelmaking. This led to a three-year technology development<br />
and testing program in partnership with <strong>OneSteel</strong> at its Sydney<br />
EAF facility. Regulatory approval followed, in 2008, for use of<br />
the polymer carbon in steel mills.<br />
At <strong>OneSteel</strong>’s Sydney Steel Mill, under controlled condition<br />
trials, polymer injection technology reduced electrical energy<br />
consumption per billet tonne from 424 kWh to 412 kWh,<br />
reduced the amount of carbon injectant required from 464<br />
kg/heat to 406 kg/heat, and improved the number of liquid<br />
tonnes per power on time minute from 2.12 to 2.20<br />
tonnes/minute.<br />
Polymer injection of rubber sourced from waste tyres is now<br />
in commercial operation at two of <strong>OneSteel</strong>’s EAF facilities,<br />
in Sydney and Laverton, Australia. Extrapolating savings<br />
measured under controlled conditions at Sydney to total<br />
annual production means a carbon dioxide saving equivalent<br />
of the removal of approximately 4,000 cars from the road.<br />
Polymer Injection Technology (PIT) has recently been<br />
recognised as a mechanism to enhance the sustainability of<br />
steel by the GBCA through its GreenStar® scheme.
20<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Customer & Market<br />
1 2 3 4 5 6<br />
The Waste Hierarchy — 3Rs<br />
<strong>OneSteel</strong> promotes the three ‘R’s’<br />
Waste Hierarchy to drive life cycle<br />
thinking and decision-making in the<br />
downstream use of steel. The 3Rs<br />
comprise of Reduction, Re-use and<br />
Recycling (see right).<br />
The first and arguably most<br />
important aspect of the waste<br />
hierarchy is to ‘Reduce’ the amount of<br />
steel required for a given application.<br />
Like any material, less steel in use<br />
means less environmental impact<br />
throughout the supply chain during<br />
manufacture and production. This<br />
can be achieved through the use<br />
of a stronger grade of steel with<br />
appropriate design adjustments.<br />
Next is ‘Re-use’. Whilst recycling<br />
has an important environmental<br />
benefit, it is more advantageous<br />
if these products can be re-used<br />
in another building in exactly the<br />
same way. It is the strength and<br />
durability of steel that makes this<br />
possible. When a building reaches<br />
the end of its life, it is usually<br />
demolished and the structural<br />
members, such as steel beams,<br />
columns and trusses, are recovered<br />
and recycled. However if pre-planned<br />
deconstruction is adopted as an<br />
alternative to demolition it is also<br />
possible to extract a portion of these<br />
steel members and re-use them in<br />
another building.<br />
‘Recycle’ is perhaps the most wellknown<br />
sustainability aspect of steel.<br />
Steel is a highly recyclable material<br />
that can be recycled many times over<br />
to produce new steel products; with<br />
the utilisation of considerably less<br />
energy than initially required during<br />
its original production. The fact that<br />
steel has these properties gives scrap<br />
steel a very high intrinsic value and<br />
makes it a highly recycled material.<br />
<strong>OneSteel</strong> has one of Australia’s largest metal recycling operations<br />
which during FY10 collected 1.7million tonnes of scrap metal.<br />
The Waste Hierarchy<br />
Recycle<br />
reuse<br />
reduce<br />
Using the same steel in different<br />
products for new jobs<br />
Using the steel to do the<br />
same job longer/again<br />
Doing the same job<br />
with less steel<br />
A 2009 study conducted by Hyder Consulting found that approximately<br />
90% of steel that derives from end-of-life construction use in<br />
Australia is currently being recovered which compares<br />
favourably to best practice in the rest of the world
21<br />
Customer<br />
& Market<br />
Customer & Market<br />
1 2 3 4 5 6<br />
<strong>Sustainability</strong> of Steel<br />
in Construction<br />
As construction is our largest market<br />
consuming over half of our steel<br />
products in Australia, <strong>OneSteel</strong><br />
continually supports and promotes<br />
the use of sustainable steel products<br />
and sustainable construction<br />
practices. Specific sustainability<br />
initiatives that <strong>OneSteel</strong> have<br />
adopted and promoted in the steel<br />
construction market can be broadly<br />
classified under the categories of<br />
Design Support, Design for Re-use<br />
and Steel Use Reduction.<br />
Design Support<br />
<strong>OneSteel</strong> has a number of<br />
development teams for its individual<br />
product groups that produce design<br />
publications and tools that provide<br />
assistance to steel designers,<br />
architects and engineers to support<br />
more efficient steel building design.<br />
Over 50 design guides, documents<br />
and software packages are available<br />
from <strong>OneSteel</strong> to help reduce<br />
over-design and specification in<br />
construction. These design aids are<br />
supported by technical personnel<br />
to ensure that designers know of<br />
their availability and how they can<br />
be used. For example, <strong>OneSteel</strong><br />
business development managers offer<br />
a redesign service to produce more<br />
efficient steel designs for multi-storey<br />
buildings to developers, builders,<br />
architects and engineers.<br />
Design for Re-use<br />
<strong>OneSteel</strong> promotes design for Reuse<br />
at two levels. Firstly there is<br />
the re-use of a building or structure<br />
as an alternative to its demolition<br />
and secondly, the re-use of a steel<br />
member. The concept of re-using a<br />
structure rather than demolishing it<br />
has obvious energy and raw material<br />
savings. Research and development<br />
in steel framing and subsequent<br />
promotion through design assistance<br />
tools and literature produced by<br />
<strong>OneSteel</strong>, has facilitated many<br />
building projects to utilise solutions<br />
such as vertical extension and<br />
upgrading of the existing structure, in<br />
preference to demolition.<br />
If buildings cannot be modified and<br />
re-used at the end of their current<br />
design lives the opportunity exists f<br />
or the structure to be disassembled<br />
rather than demolished. This would<br />
allow structural steel members to<br />
be re-used rather than recycled<br />
(re-melted). This, however, is not<br />
always feasible due to the way<br />
the structure was designed and<br />
constructed or because of the lack<br />
of documentation that exists for the<br />
building in question. To facilitate<br />
this opportunity on buildings that<br />
are currently being designed and<br />
constructed <strong>OneSteel</strong> produced<br />
a design note titled “Design for<br />
Deconstruction”, providing guidance<br />
on factors that need to be considered<br />
to facilitate deconstruction and<br />
ultimately the re-use of structural<br />
steel from buildings that have reached<br />
the end of their useful life. This can<br />
be found on the <strong>OneSteel</strong> website<br />
www.onesteel.com<br />
77 King St Sydney, highlights the strength to weight<br />
properties of <strong>OneSteel</strong>’s 300PLUS ® steel sections that<br />
facilitates the four storey vertical extension and upgrade of<br />
an existing building. This economically viable alternative to<br />
demolition and rebuilding represents a significantly more<br />
sustainable option.<br />
<strong>OneSteel</strong> business development managers offer<br />
a redesign service to produce more<br />
efficient steel designs for multi-storey<br />
buildings to developers, builders, architects<br />
and engineers
22<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Customer & Market<br />
1 2 3 4 5 6<br />
Steel Use Reduction<br />
In many instances a higher grade or<br />
stronger steel will result in a smaller<br />
quantity of steel being required for a<br />
particular application. While <strong>OneSteel</strong><br />
has, for many years, produced<br />
a range of higher than standard<br />
grades of steel, they have not been<br />
readily adopted by designers. As<br />
part of its work with the Australian<br />
Steel Institute (ASI) and Green<br />
Building Council of Australia (GBCA)<br />
from 2009, <strong>OneSteel</strong> has actively<br />
promoted higher strength steel<br />
for hot rolled and tubular sections<br />
respectively recognising the benefits<br />
they bring in terms of sustainability.<br />
As a result high strength steels<br />
have been recognised by the GBCA<br />
through their revised GreenStar ®<br />
steel credit as a desirable mechanism<br />
to enhance the sustainability of steel<br />
in construction.<br />
In reinforcing steel products,<br />
<strong>OneSteel</strong> has recently supported<br />
many initiatives designed to reduce<br />
wastage of both reinforcing bars and<br />
mesh on a construction site. Products<br />
such as made to order engineered<br />
meshes, off site factory prefabricated<br />
elements and BAMTEC ® roll out rebar<br />
carpets can effectively reduce the<br />
amount of steel used on a project.<br />
Engineered meshes can reduce<br />
wastage by minimising the number<br />
of laps and providing the option to<br />
adjust spacing and placement of bars,<br />
thereby reducing any redundancy.<br />
Prefabricated reinforcing cages for<br />
concrete elements such as slabs,<br />
walls, cores, columns and piles can<br />
utilise design-driven, in-factory<br />
fabrication techniques to optimise<br />
steel intensity and spacing between<br />
bars, thereby reducing on site<br />
material and wastage associated with<br />
reinforcing steel placement.<br />
Another example of achieving the<br />
same outcome using less steel is<br />
the use of <strong>OneSteel</strong>’s LiteSteel ®<br />
Beams, which due to their unique<br />
patented design, have extremely high<br />
deflection resistance for their weight<br />
(see right).<br />
Engagement to Promote<br />
<strong>Sustainability</strong> in Steel<br />
<strong>OneSteel</strong> recognises that it has<br />
an important role to play in the<br />
education and future promotion of<br />
more sustainable production and<br />
application of steel in the markets in<br />
which the company operates.<br />
As a founding member of the<br />
Australian Steel Institute (ASI)<br />
<strong>Sustainability</strong> Committee, <strong>OneSteel</strong><br />
supported and sponsored the ASI’s<br />
inaugural <strong>Sustainability</strong> Awards in<br />
2009 and helped successfully launch<br />
the Steel Fabricators Charter. The<br />
Charter facilitates the provision<br />
of tools such as environmental<br />
management system guides and<br />
carbon footprint calculators to<br />
improve sustainability outcomes<br />
in downstream structural steel<br />
processing by Australian steel<br />
industry SMEs.<br />
We also maintain current and active<br />
memberships of the Green Building<br />
Council of Australia (GBCA) and<br />
the Australian Green Infrastructure<br />
Council (AGIC). <strong>OneSteel</strong> personnel<br />
were represented on the GBCA’s Steel<br />
Expert Reference Panel for the review<br />
of their GreenStar ® steel credit in<br />
2009/10. <strong>OneSteel</strong> is also a supporter<br />
of the Building Products Innovation<br />
Council (BPIC) via the ASI and is<br />
playing its role in developing LCI for<br />
the Australian built environment.<br />
Case study<br />
LiteSteel ® YHA<br />
LiteSteel ® Technologies YHA Building in The<br />
Rocks, Sydney saw the application lightweight<br />
steel products to minimise environmental<br />
impact.<br />
The challenge was to not only reduce materials<br />
used during the process and therefore increase<br />
energy and emissions efficiencies, but also to<br />
balance the need for sensitivity on the historical<br />
site. As one of the few remaining reminders of<br />
European settlement, the location required a<br />
LiteSteel ® Beam truss system to elevate the<br />
building off the ground and minimise contact.<br />
The building is the embodiment of sustainable<br />
responsibility having successfully achieved<br />
demountability and re-use of the structures and<br />
material minimisation.<br />
<strong>OneSteel</strong> recognises that it has an<br />
important role to play in the education<br />
and future promotion of more sustainable<br />
production and application of steel
23<br />
Customer<br />
& Market<br />
Customer & Market<br />
1 2 3 4 5 6<br />
At a global level, through our<br />
membership of the World Steel<br />
Association (WSA), we also support<br />
international steel industry in<br />
sustainability initiatives including:<br />
• Signatory to the WSA<br />
<strong>Sustainability</strong> Charter<br />
• Attendance at WSA LCA Experts<br />
Group meeting June <strong>2010</strong><br />
• Member of the WSA Climate<br />
Action Program<br />
• Member of the WSA CO2<br />
Breakthrough Program (see<br />
Environment for more details)<br />
Product Certification<br />
and Compliance<br />
For steel products, compliance<br />
through labelling is achieved in the<br />
form of conformance to standards<br />
and the provision of test certificates<br />
that demonstrate this conformance.<br />
<strong>OneSteel</strong> is actively involved in<br />
the development and updating<br />
of relevant steel material and<br />
construction standards. For<br />
example, four <strong>OneSteel</strong> personnel<br />
were recently members of on the<br />
Australian Standards Committee<br />
BD023, which is responsible for<br />
producing the joint Australian and<br />
New Zealand Standard AS/NZS 3679.1<br />
for Hot rolled structural sections<br />
and bars.<br />
As part of the latest revision of<br />
AS 3679 that was approved by the<br />
committee in June <strong>2010</strong>, a permanent<br />
rolled-in mark to identify the mill of<br />
manufacture has been introduced as<br />
a mandatory requirement. <strong>OneSteel</strong><br />
has always rolled in a permanent<br />
mark to identify its product. Not<br />
all steel manufacturers currently<br />
roll in their mark, however if steel<br />
manufacturers produce steel sections<br />
to this Standard they will now be<br />
required to roll in a mark that will<br />
facilitate identification and future reuse<br />
schemes.<br />
A similar standards revision process<br />
was also conducted with <strong>OneSteel</strong><br />
involvement for AS 1163 for coldformed<br />
steel pipe and tube, which<br />
was updated in 2009.<br />
During FY10, <strong>OneSteel</strong> had no<br />
significant compliance breaches<br />
related to the provision and use of<br />
products to Australian Standards.<br />
<strong>OneSteel</strong> Steel and Tube<br />
supplied structural steel<br />
including DuraGal ® angles to<br />
the Electricity Trust of South<br />
Australia (ETSA) owned<br />
transmission towers.<br />
<strong>OneSteel</strong> manufactured 300PLUS ® Universal<br />
Columns are utilised across a variety of<br />
industrial applications. Often used as upright<br />
supports in commercial buildings, bridges and<br />
jetties where tensile strength is required.
24<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Environment<br />
1 2 3 4 5 6 7<br />
8<br />
Greenhouse Emissions<br />
Our Approach<br />
<strong>OneSteel</strong> is committed to pursuing<br />
a high standard of environmental<br />
management throughout its<br />
operations, as outlined in our<br />
Environmental Policy, available<br />
online at www.onesteel.com. We<br />
5<br />
strive for continual improvement<br />
of environmental performance, the<br />
4<br />
efficient use of resources, and the<br />
minimisation or prevention of pollution.<br />
3<br />
<strong>OneSteel</strong> recognises that steelmaking<br />
has inherent resources requirements<br />
2<br />
and emissions intensity. The following<br />
section details our performance in<br />
1<br />
environmental areas as we seek to<br />
use energy, fresh water and other<br />
0<br />
resources more efficiently where<br />
5<br />
economically viable.<br />
We also seek to comply with applicable<br />
4<br />
environmental laws, regulations and<br />
mandatory standards. Where these do<br />
3<br />
not exist, we apply appropriate internal<br />
standards that reflect <strong>OneSteel</strong>’s<br />
2<br />
commitment to minimise adverse<br />
environmental impacts resulting from<br />
1<br />
its operations, products and services.<br />
Our Performance:<br />
Greenhouse Gas Emissions<br />
<strong>OneSteel</strong>’s energy and greenhouse<br />
0<br />
inventory is calculated for Australian<br />
sites that fall under <strong>OneSteel</strong>’s<br />
operational control. This captures<br />
the vast majority of <strong>OneSteel</strong>’s<br />
emissions with the non-Australian<br />
operations likely to represent less<br />
than one percent of <strong>OneSteel</strong>’s<br />
greenhouse inventory.<br />
<strong>OneSteel</strong>’s current energy and<br />
greenhouse inventory aligns with<br />
the accounting methodologies<br />
of the Australian National<br />
Greenhouse Emissions <strong>Report</strong>ing<br />
Scheme (NGERS).<br />
<strong>OneSteel</strong>’s greenhouse emissions for<br />
the <strong>2010</strong> financial year are shown<br />
to the right. Approximately 88% of<br />
<strong>OneSteel</strong>’s greenhouse gas emissions<br />
derive from the steelmaking and hot–<br />
roll/forging operations at Whyalla in<br />
South Australia, Sydney and Waratah<br />
in New South Wales and Laverton<br />
in Victoria.<br />
<strong>OneSteel</strong> updates its historical<br />
energy and greenhouse data in<br />
line with changes to governmental<br />
carbon accounting methodologies<br />
and conversion factors so that a<br />
common approach is presented in the<br />
underlying data as far as practicable.<br />
<strong>2010</strong> Direct, Indirect and Total Greenhouse Gas Emissions<br />
Greenhouse (Mt Co2-e)<br />
Scope 1<br />
million<br />
tonnes<br />
CO 2<br />
-e<br />
Scope 2<br />
(electricity<br />
only) million<br />
tonnes CO 2<br />
-e<br />
Total<br />
million<br />
tonnes<br />
CO 2<br />
-e<br />
<strong>OneSteel</strong> Australian Operations 2.55 1.34 3.89<br />
— Whyalla Steelworks 2.23 0.11 2.34<br />
— <strong>OneSteel</strong> Electric Arc Furnaces<br />
(Sydney, Laverton & Waratah) 0.23 0.87 1.10<br />
— Rest of <strong>OneSteel</strong><br />
Australian operations 0.09 0.36 0.45<br />
5<br />
4<br />
3<br />
2<br />
1<br />
0<br />
2006<br />
2007<br />
2008<br />
2009<br />
<strong>2010</strong><br />
t CO2-e/ t Crude Steel<br />
3<br />
2<br />
1<br />
0<br />
2006 2007 2008 2009 <strong>2010</strong><br />
Steelmaking Processes<br />
• (including coal) 51.7%<br />
Use of Carbonates<br />
Natural Gas 8.0%<br />
Other 2.1%<br />
•<br />
(e.g limestone and dolomite) 3.7%<br />
Indirect Electricity 34.4%<br />
Whyalla<br />
Steel Works 1.5<br />
Sydney<br />
Steel Mill 1.0<br />
Laverton<br />
0.5<br />
Steel Mill<br />
Waratah<br />
0.0<br />
Steel Mill<br />
Others<br />
3.0<br />
2.5<br />
2.0<br />
Greenhouse Gas FY06-FY10<br />
Greenhouse Intensity of Steelmaking Sites FY06-FY10<br />
1. Smorgon Steel data<br />
obtained for FY06, FY07<br />
prior to acquisition in<br />
August 2007.<br />
2. FY09 data shows the<br />
effect of the Global<br />
Financial Crisis on<br />
production, and<br />
therefore energy<br />
use, emissions,<br />
and intensities.<br />
3. Historical data has<br />
been adjusted where<br />
possible against changes<br />
in governmental<br />
methodology and facility<br />
boundaries in energy and<br />
greenhouse accounting<br />
against FY10 for a<br />
comparable basis.<br />
4. Steel Mill sites include all<br />
on–site activities not just<br />
crude steel production<br />
(e.g. including rolling,<br />
forging).<br />
5. Whyalla Steelworks<br />
intensity increased<br />
in FY10 due to blast<br />
furnace problems<br />
and downtime.
25<br />
Environment<br />
Environment<br />
Fitting of variable speed electronic control to existing fume<br />
extraction fans for energy efficiency improvements. This energy<br />
savings project was successful in receiving a government grant<br />
under the Energy Savings Fund.<br />
1 2 3 4 5 6 7<br />
8<br />
Our Actions to Build a<br />
Sustainable Future<br />
At present, there are no economically<br />
viable technologies available<br />
capable of delivering step changes<br />
in carbon steelmaking emissions<br />
in the foreseeable future. Steel is a<br />
staple commodity that underpins<br />
economic prosperity and growth.<br />
Steel is fundamental to buildings,<br />
transport, utilities, infrastructure and<br />
manufacturing within developed and<br />
developing economies.<br />
The steel industry has been<br />
continually improving energy<br />
efficiency. Recent and ongoing<br />
significant rises in energy prices<br />
provide a further powerful incentive<br />
to reduce energy intensity, and the<br />
Australian iron and steel industry is<br />
an efficient energy user in both the<br />
blast furnace (integrated) and EAF<br />
processes. However, in the integrated<br />
steelmaking process carbon is used<br />
Table: <strong>OneSteel</strong> Whyalla Steelworks Electricity<br />
Purchased Electricity from Grid<br />
Self Generated Electricity<br />
On-Sold Electricity<br />
Export back to Grid<br />
Net site electricity consumption<br />
as a chemical reductant that converts<br />
needed iron ore in iron metal (as<br />
well as an energy source) and there<br />
is no proven alternative available to<br />
significantly reduce the role of carbon<br />
in this process of conversion.<br />
The iron and steel industry is<br />
characterised by mature technologies<br />
with high capital intensity and long<br />
investment cycles. There are no near<br />
to mid term technology improvement<br />
that will deliver large step reductions,<br />
despite investment by the global steel<br />
industry in collaborative research.<br />
Joint research activity is being carried<br />
out with CSIRO through their Minerals<br />
Down-Under Flagship program, in<br />
conjunction with BlueScope Steel<br />
and <strong>OneSteel</strong> under the Australian<br />
CO 2<br />
Breakthrough banner. This is also<br />
linked to the WorldSteel Association<br />
CO 2<br />
Breakthrough Program<br />
researching concepts for largescale<br />
greenhouse house<br />
50<br />
abatement<br />
40<br />
30<br />
153,517 MWh<br />
20<br />
188,214 MWh<br />
3,814 MWh<br />
5,340 MWh<br />
10<br />
332,576 MWh<br />
0<br />
opportunities over the medium to<br />
long-term. The Australian research<br />
program is continuing its work on<br />
biomass opportunities within the<br />
iron and steel industry and a new<br />
technology for dry slag granulation<br />
with heat recovery.<br />
<strong>OneSteel</strong> Whyalla has developed<br />
a Marginal Abatement Cost Curve<br />
(MACC) to identify and prioritise<br />
carbon abatement projects. One<br />
carbon abatement project involved<br />
changing operational practices at the<br />
Pellet Plant Waste Gas Cleaning Plant<br />
to remove the requirement to operate<br />
a high‐pressure air compressor<br />
system. This resulted in a saving<br />
of around 10,000 t CO 2<br />
-e p.a. This<br />
has proved to be an effective project<br />
identification process.<br />
Energy (PJ)<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
2006<br />
2007<br />
2008<br />
2009<br />
<strong>2010</strong><br />
Energy Consumption FY06-FY10<br />
GJ / t Crude Steel<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
0<br />
Our Performance:<br />
Energy Consumption<br />
In the <strong>2010</strong> financial year, <strong>OneSteel</strong><br />
consumed approximately 36.61<br />
petajoules (PJ) of energy. Of this,<br />
92 percent was consumed at the<br />
four major steelmaking operations of<br />
the integrated steelworks at Whyalla<br />
(26.89PJ), the electric arc furnaces<br />
and manufacturing operations at<br />
Waratah (2.24PJ), Laverton (2.79PJ)<br />
and Sydney Steel Mills (1.58PJ). See<br />
chart below.<br />
<strong>OneSteel</strong> Whyalla Steelworks, apart<br />
from purchasing electricity from the<br />
grid, also self-generates a significant<br />
proportion of its energy requirements<br />
through use of blast furnace and coke<br />
ovens off-gases powering boilers in<br />
a powerhouse, and natural gas feed<br />
2006 2007 2008 2009 <strong>2010</strong><br />
Energy Intensity of Steelmaking Sites FY06-FY10<br />
to a cogeneration plant. The site also<br />
on-sells surplus electricity to third<br />
parties, and exports some electricity<br />
back to the grid. This electricity,<br />
which is on-sold and sent back to the<br />
grid, is netted off from electricity<br />
purchased and self-generated to<br />
calculate site consumption.<br />
See chart below.<br />
Whyalla<br />
Steel Works<br />
Sydney<br />
Street Mill<br />
Laverton<br />
Steel Mill<br />
Waratah<br />
Steel Mill<br />
Others<br />
1. Smorgon Steel data<br />
obtained for FY06, FY07<br />
prior to acquisition in<br />
August 2007.<br />
2. FY09 data shows the effect<br />
of the 35.000000 Global Financial<br />
Crisis on production, and<br />
therefore energy use,<br />
29.166667<br />
emissions, and intensities.<br />
3. Historical 23.333333 data has<br />
been adjusted where<br />
possible against changes<br />
17.500000<br />
in governmental<br />
methodology and facility<br />
11.666667<br />
boundaries in energy and<br />
greenhouse accounting<br />
5.833333<br />
against FY10 for a<br />
comparable basis.<br />
0.000000<br />
4. Steel Mill sites include all<br />
on–site activities other<br />
than just crude steel<br />
production (e.g. including<br />
rolling, forging).<br />
5. Electricity consumption<br />
includes self generated<br />
electricity at <strong>OneSteel</strong><br />
Whyalla Steelworks.<br />
6. Whyalla Steelworks<br />
intensity increased in<br />
FY10 due to blast furnace<br />
problems and downtime.
26<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
New Electronic System that<br />
controls the Electric Arc<br />
Furnace Electrode position<br />
at the Waratah Steel Mill.<br />
Environment<br />
1 2 3 4 5 6 7<br />
8<br />
Our Actions to Build a<br />
Sustainable Future<br />
<strong>OneSteel</strong> Technical Energy Network<br />
(OSTEN)<br />
The <strong>OneSteel</strong> Technical Energy<br />
Network (OSTEN) was formed in<br />
August 2009 to improve our response<br />
to energy and resource efficiency.<br />
The Network’s primary function is to<br />
establish and deploy standardised<br />
compliant energy management<br />
systems, collate and monitor<br />
energy performance and abatement<br />
activity data and identify and<br />
assess opportunities for energy and<br />
greenhouse reduction. OSTEN also<br />
provides a foundation for knowledge<br />
transfer through <strong>OneSteel</strong>’s Energy<br />
Best Practice Groups.<br />
Over the coming year, OSTEN will<br />
be continuing the roll-out of an<br />
extensive change management<br />
program. OSTEN’s other key<br />
focus over the coming period is to<br />
finalise and promote the use of an<br />
internally developed Energy Audit<br />
Tool to identify and subsequently<br />
assess opportunities for energy and<br />
greenhouse reduction.<br />
Major <strong>OneSteel</strong> sites must meet<br />
the requirements of the national<br />
Energy Efficiency Opportunities<br />
(EEO) scheme. The Scheme sets<br />
out key minimum requirements for<br />
operational energy management<br />
systems, and includes annual public<br />
reporting of the energy efficiency<br />
opportunities assessed and<br />
implemented through the year. In<br />
October 2009 the Newcastle Rod Mill<br />
volunteered to participate in a trial<br />
governmental Verification Audit, the<br />
mill was found to be fully compliant<br />
in all audited areas in addition<br />
to being rated Leading Practice<br />
across a number of elements. Since<br />
commencement of the EEO program<br />
in 2006 <strong>OneSteel</strong> has reported<br />
implementing projects resulting in a<br />
total energy reduction of over 290<br />
TJ/yr, equating to 55 ktCO 2<br />
-e/yr. The<br />
2009 public EEO report can be found<br />
on the <strong>OneSteel</strong> website at<br />
www.onesteel.com.<br />
Case study<br />
Energy Reduction Projects<br />
• Under the NSW Energy Savings Scheme Participation,<br />
Waratah and Sydney Steel Mills have been able to register<br />
eligible energy efficiency projects and generate Energy<br />
Savings Certificates (ESCs). The projects successfully<br />
registered in FY09 included energy efficiencies at our Electric<br />
Arc Furnaces and culminated in an estimated annual saving of<br />
12,000MWh per annum and generated over $600,000 dollars<br />
in sale proceeds from the ESCs.<br />
• In order to shape steel, the Newcastle Rod Mill Reheat Furnace<br />
burns natural gas through multiple burners across three<br />
zones to heat billets to approximately 1100 deg C. In 2008,<br />
oxygen meters were installed to identify where the flame was<br />
burning inefficiently. Work has been done to improve the ratio<br />
of gas to air in each zone, and has resulted in an approximate<br />
3% reduction in the amount of gas being used to heat each<br />
tonne of steel. At Sydney Steel Mill, an oxygen analyzer was<br />
installed and modifications made to the number of steel billets<br />
charged into the furnace at any one time. An approximate 6%<br />
improvement in furnace efficiency has been achieved.<br />
• A comparison of the 2008 and 2009 shutdown periods for<br />
the Newcastle Rod Mill has shown an average improvement<br />
of 21% in baseline electricity load for each shut down period<br />
longer than 24 hours. This improvement in load shedding<br />
represents a saving of approximately 522 MWh in 2009,<br />
which has been maintained into <strong>2010</strong>.
5<br />
6400<br />
Greenhouse (Mt Co2-e)<br />
4<br />
3<br />
2<br />
1<br />
0<br />
4800<br />
3200<br />
1600<br />
0<br />
27<br />
Environment<br />
2006<br />
Environment<br />
2007<br />
2008<br />
2009<br />
<strong>2010</strong><br />
1 2 3 4 5 6 7<br />
8<br />
FY09<br />
Our Performance:<br />
Water Consumption<br />
For <strong>OneSteel</strong> and the global steel<br />
industry, water plays an integral part<br />
in the steelmaking process. Whilst our<br />
operations require the withdrawal of<br />
water from sensitive sources such<br />
as regional 7000 and urban townswater<br />
supplies and the Murray River, we<br />
6125<br />
are endeavouring to meet the global<br />
and domestic<br />
5250<br />
water challenge by<br />
implementing<br />
4375<br />
initiatives to minimise<br />
our usage.<br />
FY08 3500 FY07 FY'06<br />
<strong>OneSteel</strong>’s annual consumption<br />
2625<br />
of townswater from its major<br />
manufacturing 1750 units i.e. Whyalla<br />
operations, <strong>OneSteel</strong> Market Mills<br />
875<br />
major manufacturing units, and the<br />
0<br />
Townswater Consumption<br />
Top Six Sites<br />
Million Litres<br />
7,000<br />
6,000<br />
5,000<br />
4,000<br />
3,000<br />
2,000<br />
1,000<br />
0<br />
Whyalla<br />
Steelworks<br />
& Iron Ore<br />
Mines<br />
Laverton<br />
Steel Mill<br />
Waratah<br />
Steel Mill<br />
major Australian Recycling sites, was<br />
approximately 8230 million litres in<br />
Newcastle the <strong>2010</strong> Financial Rod Mill Year.<br />
Townswater consumption from<br />
Sydney Steel Mill<br />
<strong>OneSteel</strong>’s top six operating sites by<br />
Newcastle usage is shown Wiremill in the chart. These<br />
sites represent approximately 96% of<br />
Waratah Steel Mill<br />
the consumption tracked above.<br />
Laverton The consumption Steel Mill of town water by<br />
the Whyalla steelworks and mines<br />
Whyalla<br />
in 2006<br />
Steelworks<br />
and 2007 is<br />
&<br />
not<br />
Iron<br />
directly<br />
Ore Mines<br />
comparable to the consumption<br />
from 2008 onwards. In 2008, the<br />
steelworks was converted from<br />
dry hematite feed to wet slurried<br />
magnetite feed for the steelworks<br />
increasing water consumption per<br />
tonne of steel. This change in process<br />
Newcastle<br />
Wire Mill<br />
Sydney<br />
Steel Mill<br />
Newcastle<br />
Rod Mill<br />
FY06<br />
FY07<br />
FY08<br />
FY09<br />
FY10<br />
8000<br />
7000<br />
6000<br />
5000<br />
has improved dust levels in the<br />
community as described previously in<br />
<strong>OneSteel</strong> Annual <strong>Report</strong>s.<br />
Murray River<br />
The townswater in the Whyalla area<br />
is derived from the Murray River<br />
via pipeline, and is therefore under<br />
significant focus due to low Murray<br />
River water levels.<br />
Whyalla operations townswater use in<br />
FY08 was 6,800 million litres, FY09<br />
was 6,200 million litres and in FY10<br />
6,100 million litres. The reduction<br />
in Murray River water consumption<br />
of 700 million litres since FY08 was<br />
achieved despite the increase in<br />
magnetite feed rate to the steelworks<br />
over this period, as well as an increase<br />
in hematite iron ore for export. Water<br />
used during mining and export is<br />
predominantly for dust suppression.<br />
Whyalla also sources freshwater<br />
from treated towns sewage water<br />
and <strong>OneSteel</strong> tailings dams.<br />
Approximately 156,500 million litres<br />
of salt water are also used for various<br />
cooling operations at Whyalla and<br />
are generally returned to the sea<br />
after use.<br />
The Newcastle Rod Mill has improved its capture<br />
of waste water draining from the mill saving<br />
approximately 60KL each week.<br />
Newcastle Rod Mill<br />
Sydney Steel Mill<br />
Newcastle Wiremill
28<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Environment<br />
1 2 3 4 5 6 7<br />
8<br />
Our Actions to Build a<br />
Sustainable Future<br />
Water Wise @ Whyalla Steelworks<br />
Whyalla has a comprehensive water<br />
reduction strategy focused on driving<br />
water reduction across its business.<br />
Through the development of a Water<br />
Abatement Curve (WAC) at least<br />
five water savings projects were<br />
approved for funding during the <strong>2010</strong><br />
Financial Year. Additionally, <strong>OneSteel</strong><br />
is investigating the installation of<br />
a small saltwater, reverse-osmosis<br />
desalination plant. Water produced by<br />
this plant would save approximately<br />
1,500 million litres of potable water<br />
per year.<br />
Whyalla continues to support and<br />
work with the University of South<br />
Australia Institute for Sustainable<br />
Systems and Technologies to identify<br />
the optimum technology solution<br />
to produce demineralised water<br />
from saltwater further reducing<br />
<strong>OneSteel</strong> Whyalla’s reliance on fresh<br />
water from the River Murray, and to<br />
reduce the site’s carbon footprint by<br />
utilising available waste energy. This<br />
support includes a 3-year $100,000<br />
commitment from <strong>OneSteel</strong> Whyalla.<br />
Water Wise @ Whyalla mine site<br />
Water for mine sites in the South<br />
Middleback Ranges (SMR) is<br />
only available by pipeline from<br />
Whyalla. A number of water saving<br />
programs have been adopted<br />
and are expected to produce<br />
further water savings, including,<br />
re‐using recovered water for dust<br />
suppression from our waste tailings<br />
storage facility by decanting to a<br />
series of dams and automating<br />
Density Control to save water at<br />
the thickener stage of the Ore<br />
Beneficiation Plant and optimising<br />
dewatering at the magnetite<br />
concentrator.<br />
Our Performance:<br />
Recycled Materials<br />
As has been previously indicated,<br />
<strong>OneSteel</strong> both procures ferrous<br />
scrap and uses it as an input in the<br />
manufacture of steel. Approximately<br />
55% of steelmaking is produced from<br />
recycled steel.<br />
Total tonnes of post and preconsumer<br />
scrap used by <strong>OneSteel</strong><br />
in FY09/10 was 1,286,945 tonnes.<br />
Internal-to-site scrap is not included<br />
in these numbers.<br />
Proportion of <strong>OneSteel</strong> crude steel that is from recycled steel<br />
Site<br />
% Postconsumer*<br />
Material (scrap)<br />
% Post + Preconsumer^<br />
Material (scrap)<br />
<strong>OneSteel</strong> Whyalla Steelworks 7.5 7.5<br />
<strong>OneSteel</strong> Electric Arc Furnace<br />
Steelmaking (weighted average)<br />
Water consumption efficiency<br />
initiatives at <strong>OneSteel</strong> Whyalla.<br />
84.5 91.0<br />
<strong>OneSteel</strong> Total Steel make 52.0 55.0<br />
^Pre-consumer material diverted from the waste stream during a manufacturing process.<br />
Excluded is reutilization of materials such as rework, regrind or scrap generated in a process and<br />
capable of being reclaimed within the same process that generated it.<br />
*Post-consumer material generated by households or by commercial, industrial and institutional<br />
facilities in their role as end-users of the product which can no longer be used for its intended<br />
purpose. This includes returns of material from the distribution chain.
29<br />
Environment<br />
Environment<br />
1 2 3 4 5 6 7<br />
8<br />
Our Actions to Build a<br />
Sustainable Future<br />
As a business <strong>OneSteel</strong> endeavours<br />
to minimise resource use across all<br />
areas of our operations.<br />
<strong>OneSteel</strong> Recycling is working with<br />
the Australian Council of Recyclers<br />
(ACOR) to lift recycling rates within<br />
the community through a number<br />
of activities including input into the<br />
new National Waste Policy Legislative<br />
framework due to be announced in<br />
early 2011.<br />
<strong>OneSteel</strong> Whyalla has been<br />
conducting a comprehensive iron<br />
mass balance for the site, which<br />
on a bi-monthly basis identifies all<br />
iron unit loss from the value chain.<br />
Processes are now underway to<br />
establish the true cost of these losses<br />
to the business and to develop a<br />
strategy to reduce the loss of this<br />
material. In addition to the reduction<br />
of iron loss as an input material,<br />
<strong>OneSteel</strong> Whyalla has continued<br />
to investigate the potential use of<br />
crushed air-cooled Blast Furnace slag<br />
(a by-product of steel making) in the<br />
local cement industry.<br />
At Newcastle Wire Mill “zinc<br />
skimmings” from the wire galvanising<br />
zinc baths are now recycled on‐site<br />
with the use of zinc recovery<br />
furnaces. The recovered zinc<br />
ingots are then re-used in the wire<br />
galvanising process. Material that has<br />
not been recovered is collected and<br />
sold for further recycling. This project<br />
represents a significant reduction in<br />
the consumption of replacement zinc<br />
for the galvanising process.<br />
In addition, in 2009, Newcastle<br />
Wire mill trialled and purchased<br />
a wiredrawing lubricant recycling<br />
unit. The unit screens dust and<br />
magnetically removes any steel<br />
particles. The resulting clean material<br />
can be re-used in the wiredrawing<br />
machine. The savings from this<br />
practice have been encouraging with<br />
10 tonnes of lubricant being saved in<br />
12 months from one machine. Three<br />
additional recycling units have been<br />
purchased as a result of the trial.<br />
<strong>OneSteel</strong> Australian Tube<br />
Mills employees David Clark<br />
and Shaun Ingall discussing<br />
water run off efficiency<br />
improvements at our<br />
Newcastle site.
30<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Environment<br />
1 2 3 4 5 6 7<br />
8<br />
Our Performance: <strong>OneSteel</strong>’s<br />
Environmental Compliance<br />
During the <strong>2010</strong> Financial Year,<br />
<strong>OneSteel</strong> received three penalty<br />
notices with associated fines. These<br />
notices related to the accidental<br />
release of contaminated water to<br />
storm water (two notices, each<br />
with an associated fine of $1,500)<br />
and the placement of a bin to<br />
receive scrap metal outside the<br />
gates of a premise (one notice with<br />
a fine of $3,000). These notices<br />
included various directives to make<br />
operational changes to ensure<br />
ongoing compliance.<br />
The management of contaminated<br />
sites is another key area of<br />
environmental compliance for<br />
<strong>OneSteel</strong>. Due to historical activities<br />
there are a number of sites where<br />
soil or groundwater contamination<br />
has occurred. Where these sites<br />
are identified a risk assessment is<br />
undertaken and management or<br />
remediation measures implemented<br />
as appropriate.<br />
For example, in 2000 <strong>OneSteel</strong><br />
acquired a former manufacturing site<br />
in Pagewood, NSW, as part of a joint<br />
venture. This site was subsequently<br />
found to be contaminated with<br />
industrial solvents. In <strong>2010</strong> a<br />
voluntary management proposal<br />
was submitted to undertake<br />
extensive investigations into this<br />
contamination and identify potential<br />
remediation options.<br />
Within <strong>OneSteel</strong>, environmental<br />
incidents, such as spills, are classified<br />
according to severity on a scale<br />
of 1 to 5, with 1 being of negligible<br />
severity and 5 being extreme<br />
severity. An event of negligible<br />
severity is defined as having low-level<br />
impacts on the biological or physical<br />
environment, or limited damage to a<br />
minimal area of low significance. In<br />
the <strong>2010</strong> Financial Year, there were<br />
no spills or similar environmental<br />
incidents that were classified as<br />
greater than Severity 1 (negligible).<br />
The ceasing of trucked ore for export<br />
to northern stockpiles has resulted in a<br />
significant decrease in road train traffic<br />
and allowed remediation of this area.<br />
In the <strong>2010</strong> financial year, there were<br />
no significant spills or similar<br />
environmental incidents
A fauna monitoring study was undertaken during the<br />
year to assess the impact of mining operations on species<br />
of national significance<br />
31<br />
Environment<br />
Environment<br />
1 2 3 4 5 6 7<br />
8<br />
Our Performance: Biodiversity<br />
& Rehabilitation<br />
The South Middleback Ranges (SMR)<br />
in South Australia is an important<br />
feature on the Eyre Peninsula<br />
landscape and the source of iron<br />
ore for the Whyalla Steelmaking<br />
operations and iron ore export.<br />
A fauna monitoring study was<br />
undertaken during the year to assess<br />
the impact of mining operations<br />
on species of national significance<br />
and other indicator species. This<br />
study was the second of its type and<br />
showed that the range and status of<br />
species populations are regionally<br />
healthy. These, plus similar studies<br />
will continue, and are expected to<br />
assist management strategies for<br />
maintaining the natural environment.<br />
<strong>OneSteel</strong> Whyalla Steelworks<br />
undertakes regular sea grass studies<br />
to monitor the health and distribution<br />
of sea grasses at control sites. The<br />
most recent study was conducted in<br />
<strong>2010</strong> and found that the condition of<br />
the seagrass continues to improve.<br />
<strong>OneSteel</strong> has purchased and<br />
donated the Shirrocoe Pastoral<br />
lease in the Middleback Ranges to<br />
the South Australian Department of<br />
Environment and Natural Resources<br />
(DENR) for conservation purposes<br />
and as an off-set against mining<br />
activities. In January 2009 <strong>OneSteel</strong><br />
purchased and destocked<br />
Uplands Station adjacent to the<br />
Iron Chieftain Mining lease and, in<br />
conjunction with the neighbouring<br />
land managers, including the DENR,<br />
is pursuing sound land management<br />
outcomes on both Uplands and<br />
Shirrocoe. <strong>OneSteel</strong> Whyalla has<br />
been instrumental in setting up<br />
the Middleback Alliance of Land<br />
Managers for the development and<br />
implementation of programs that<br />
cover pest plant and animal control,<br />
threatened species recovery and land<br />
rehabilitation works for the benefit of<br />
the ecology of the whole Middleback<br />
Range region.<br />
Supporting biodiversity<br />
at Whyalla Steelworks<br />
and South Middleback<br />
Ranges mine sites.<br />
<strong>OneSteel</strong> Whyalla Steelworks Cokemaking<br />
waste water treatment process
32<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Community<br />
1 2 3 4<br />
Our Approach<br />
<strong>OneSteel</strong> recognises that achieving<br />
positive sustainable relationships<br />
within the communities in which<br />
we operate is imperative to doing<br />
business. At <strong>OneSteel</strong> we have<br />
fostered a responsible approach to<br />
demonstrating social responsibility,<br />
by promoting values and initiatives<br />
such as investment and engagement<br />
that show respect for the people<br />
and communities associated with<br />
our businesses.<br />
There are a number of key initiatives<br />
and consultation based programs<br />
that have been formed, further<br />
strengthened or dissolved, to<br />
reflect key issues that affect our<br />
local communities. In addition,<br />
<strong>OneSteel</strong> and our employees<br />
pride themselves on physically or<br />
monetarily supporting regional and<br />
local activities across Australia - from<br />
providing education and training,<br />
donations and sponsorships through<br />
to charity fundraising events.<br />
To monitor the ongoing impact of<br />
<strong>OneSteel</strong>’s operations, we invest,<br />
inform, consult and develop<br />
relationships with local communities<br />
to work towards mutually beneficial<br />
outcomes and continually earn our<br />
social licence to operate.<br />
Our Performance<br />
Investment and Development<br />
This financial year, through donation<br />
via <strong>OneSteel</strong>’s workplace giving<br />
program “OneCommunity” and<br />
community investment outside<br />
of the program, <strong>OneSteel</strong> and<br />
our employees have raised and<br />
invested over $542,000 in total<br />
for the community.<br />
OneCommunity<br />
For <strong>OneSteel</strong>, community is vital to<br />
the success of our operations. The<br />
community supports our people,<br />
providing services that we all use in<br />
our daily lives. The OneCommunity<br />
workplace giving program provides<br />
a way for all employees to give<br />
something back to the community and<br />
assist those that are less fortunate.<br />
Since the OneCommunity workplacegiving<br />
program was established<br />
in December 2003, <strong>OneSteel</strong> and<br />
its employees have generously<br />
donated around $1.3 million through<br />
the program. <strong>OneSteel</strong> matches<br />
employee contributions up to<br />
$250,000 per annum.<br />
OneCommunity currently supports<br />
12 charities in our community,<br />
providing necessary financial aid.<br />
Over the past financial year, <strong>OneSteel</strong><br />
and its employees have assisted these<br />
charities by donating approximately<br />
$219,000. Current charities include;<br />
Alzheimer’s Australia, Cancer Council,<br />
CARE Australian, Guide Dogs,<br />
Hunter Medical Research Institute,<br />
Landcare Australia, Lifeline, Royal<br />
Flying Doctor Service, RSPCA, The<br />
Smith Family, The Salvation Army<br />
and Westpac Rescue Helicopter<br />
Service. We are currently undertaking<br />
employee engagement activities in<br />
order to better understand how we<br />
can increase employee participation<br />
in community giving programmes<br />
and ultimately our positive impact on<br />
communities.<br />
<strong>OneSteel</strong> wishes to thank all<br />
employees that have participated<br />
in the OneCommunity workplace<br />
giving program.<br />
Other Investments<br />
<strong>OneSteel</strong> and our employees<br />
have contributed over $323,000 in<br />
community investments this financial<br />
year; through community fundraising<br />
activities, sponsorships, donations<br />
and other investments at a regional<br />
level. Since 2001, such community<br />
investments outside the <strong>OneSteel</strong><br />
workplace giving program have<br />
exceeded $2.5 million.<br />
<strong>OneSteel</strong> contributed $20,000 in bar,<br />
wire and mesh products to Channel<br />
Nine’s Random Acts of Kindness to<br />
help build a baseball field and boxing<br />
shed for two Aussie heroes.<br />
<strong>OneSteel</strong> Environment Superintendent,<br />
Jeff Neave, inspecting building<br />
accoustics at our Waratah site to<br />
minimise community disturbance.
33<br />
Community<br />
Sponsorship by Laverton employees has seen a growth in support<br />
provided to students; from 12 in 1989 through to 300 in <strong>2010</strong><br />
Community<br />
1 2 3 4<br />
Random Acts of Kindness<br />
<strong>OneSteel</strong> contributed $20,000 in bar,<br />
wire and mesh products to two local<br />
heroes through the Nine Network’s<br />
Random Acts of Kindness television<br />
show. The donation of <strong>OneSteel</strong>’s<br />
products saw the completion of a<br />
baseball field for a Bankstown local<br />
who volunteers his time to teach<br />
disabled children baseball and<br />
sportsmanship. <strong>OneSteel</strong>’s products<br />
were also used to build a boxing shed<br />
for a couple that fund boxing classes<br />
for youth.<br />
Laverton Steel Mill Saving<br />
our Kids<br />
The Laverton Steel Mill ‘Save our<br />
Kids’ program was established with<br />
the aim of donating funds to a variety<br />
of youth focused initiatives. This year<br />
has seen the contribution of over<br />
$10,500 directly from employees’<br />
wages to a variety of local issues;<br />
from homelessness, illness, education<br />
and special needs based programs.<br />
A highlight of ‘Save our Kids’ is the<br />
contribution Laverton employees and<br />
staff have made to the Open Family’s<br />
‘Back to School’ program, which<br />
totals $8,000. The program aims<br />
to sponsor the education of local<br />
students whom are deemed homeless<br />
by the Commonwealth.<br />
Sponsorship by Laverton employees<br />
has seen a growth in support<br />
provided to students; from 12 in 1989<br />
through to 300 in <strong>2010</strong>. Over 50<br />
local high schools are represented in<br />
this figure in addition to a number of<br />
students who are completing tertiary<br />
qualifications in the areas of medicine<br />
and arts.<br />
Banking on Food<br />
This year, <strong>OneSteel</strong> pledged to<br />
provide $10,000 a year for the<br />
next five years to Foodbank South<br />
Australia. Foodbank comprises of<br />
over 35 social welfare organisations<br />
that have signed up to the program<br />
in an effort to supply packaged food<br />
to those in need. In July, this included<br />
supplying food to those affected by<br />
severe thunderstorms in the Spencer<br />
Gulf region. Foodbank is closely<br />
working with Save the Children,<br />
Australian Red cross and Mission<br />
Australia to assist in food education<br />
programs in schools.<br />
Kids, Karts & Cops<br />
<strong>OneSteel</strong> has commenced sponsoring<br />
a new crime prevention program<br />
in South Australia, ‘Kids, Karts &<br />
Cops.’ The program aims to help<br />
youths who have been identified as<br />
having committed crime in the past<br />
or at high risk, in discovering a new<br />
interest. In the program, youths get to<br />
drive, maintain and teach each other<br />
about go-karts in addition to building<br />
mutually-beneficial relationships<br />
with police.<br />
Worthy of Gold<br />
<strong>OneSteel</strong> Whyalla employee Noel<br />
Goldsworthy embarked on a journey<br />
of physical resilience and endurance<br />
to support the families of two local<br />
teenagers who were made paraplegic<br />
within weeks of each other. Noel<br />
says, “Their stories struck a cord<br />
with me as having had a very active<br />
life, all my life, I felt a strong need to<br />
try and do something to help them<br />
and their families.” Noel called on<br />
businesses, colleagues, friends and<br />
the generosity of strangers to raise<br />
a staggering $62,000 for the two<br />
families by cycling 400km through<br />
Whyalla on April 10-11th this year.<br />
<strong>OneSteel</strong> Steel Magnolias<br />
competing in Relay for<br />
Life which raised<br />
almost $22,000<br />
<strong>OneSteel</strong> worked with council in Whyalla to improve<br />
the amenity at the Whitehead Street Park.<br />
Noel Goldsworthy and Jim White at the<br />
completion of Noel’s 400km charity Cycle
34<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Community<br />
1 2 3 4<br />
Consultation and Engagement<br />
Red Dust Action Group Dissolves<br />
The Whyalla Red Dust Action Group<br />
(WRDAG) announced that it was<br />
officially dissolving on May 26 <strong>2010</strong>,<br />
after having successfully worked with<br />
<strong>OneSteel</strong> Whyalla to address the red<br />
dust related issues at East Whyalla.<br />
Spokesperson for the WRDAG, Ted<br />
Kittel, said that the group’s objectives<br />
had been fulfilled and that over<br />
the past three years, a strong and<br />
valuable partnership based on trust<br />
and goodwill had developed between<br />
the group and <strong>OneSteel</strong> Whyalla.<br />
He said that <strong>OneSteel</strong> Whyalla is<br />
now setting benchmarks in the way<br />
it engages with the community in<br />
respect to environmental issues and<br />
also through the positive new and<br />
innovative way it’s tackling these<br />
issues in the workplace.<br />
“No longer are homes and property<br />
stained and ruined by continual<br />
coatings of red iron ore dust, and<br />
the quality of everyday life for east<br />
Whyalla residents has improved<br />
because of this very positive<br />
outcome,” Mr Kittel said.<br />
“Living without red dust impacts<br />
now can only be described as truly<br />
marvellous. Having the knowledge<br />
and understanding of the dedication<br />
that the company now has pledged<br />
to continually improving its<br />
environmental performance augurs<br />
well for me, and it augurs well for the<br />
future residents of east Whyalla.”<br />
This outcome is the culmination<br />
of Project Magnet, which saw the<br />
pelletising plant converted from a<br />
dry to a wet process and paved the<br />
way for the removal of redundant 10.0<br />
equipment and stockpiles at the<br />
pelletising plant.<br />
7.5<br />
5.0<br />
2.5<br />
Community Dust Target<br />
The <strong>OneSteel</strong> Whyalla community<br />
dust target was established in 2008 in<br />
conjunction with <strong>OneSteel</strong>, the South<br />
Australian Environment Protection<br />
Agency and local community.<br />
The system is designed to not<br />
only monitor fugitive dust levels<br />
originating from <strong>OneSteel</strong>’s<br />
operations and ensure <strong>OneSteel</strong>’s<br />
accountability, but ultimately to also<br />
provide locals with reprieve from high<br />
levels of fugitive dust.<br />
The Steelworks agreed that fugitive<br />
dust impacts related to its operations<br />
would not exceed a certain level of<br />
fine particulate matter in the air<br />
(50ug/m3) on a defined number of<br />
days. This was originally set at 10<br />
days in 2008, followed by eight days<br />
in 2009, before gradually decreasing<br />
to five days in 2011. This gradual<br />
decrease aimed to reflect the stepchanges<br />
anticipated as a result of<br />
Project Magnet.<br />
As can be seen below (graph), 2008<br />
saw three exceedence days (compared<br />
to a year-end target of 10) and none<br />
in 2009. The excellent result in 2009<br />
led to voluntary advancement of the<br />
target by <strong>OneSteel</strong> to five exceedence<br />
days in <strong>2010</strong> ahead of the original<br />
target set for 2011.<br />
<strong>OneSteel</strong> continues to monitor dust<br />
levels with 24 hour automatic devices<br />
located around our operations.<br />
Environment Consultation<br />
Group (ECG)<br />
Whilst the WRDAG has finalised<br />
its collaboration, the Whyalla<br />
Environment Consultation Group<br />
continues to remain a strong alliance<br />
between local government, regulatory<br />
associations (such as the EPA), the<br />
community (including schools and<br />
businesses) and <strong>OneSteel</strong>.<br />
Over the past three years, <strong>OneSteel</strong><br />
has worked with the ECG to improve<br />
the amenity buffer between <strong>OneSteel</strong><br />
and the community. The Whitehead<br />
Street development project<br />
included a park with barbeque,<br />
plants and walkways. The park was<br />
officially opened on July 4 <strong>2010</strong> to<br />
align with Whyalla Council’s 40th<br />
birthday celebrations.<br />
Community Dust target<br />
10<br />
8<br />
5<br />
3<br />
0 0<br />
2008 2009 <strong>2010</strong><br />
0.0<br />
Images show imrpovement in fugitive<br />
dust levels at Whyalla between<br />
December 2006 and September 2009.<br />
Dust Exceedance Days<br />
Target for Total Days of<br />
Dust Exceedance
35<br />
Community<br />
Community<br />
1 2 3 4<br />
Waratah Community<br />
Liaison Committee<br />
The Waratah Community Liaison<br />
Committee meets quarterly to discuss<br />
any environmental issues that could<br />
potentially affect neighbours to<br />
<strong>OneSteel</strong>’s operations. Highlights<br />
for the group last year include the<br />
asphalting of an exposed portion of<br />
the site to prevent dust generation<br />
during windy weather, changing<br />
the location of various activities to<br />
either less exposed locations onsite,<br />
or to other locations offsite so as to<br />
eliminate the chance of noise affecting<br />
the neighbours, and installing an<br />
acoustic roller door to mitigate<br />
noise from a production area. The<br />
Committee remains a valuable forum<br />
for communication between the<br />
Company and its neighbours.<br />
Whyallina Heritage Aboriginal<br />
Corporation Inc, the Barngarla<br />
Native Title Claimants and the<br />
Walga Mining Company<br />
<strong>OneSteel</strong> continues to support<br />
the Whyallina Heritage Aboriginal<br />
Corporation Inc. — a local Aboriginal<br />
organisation which has as its focus<br />
Aboriginal cultural issues in the local<br />
Whyalla and districts area.<br />
<strong>OneSteel</strong>’s exploration activities in<br />
and around the Middleback Ranges<br />
of South Australia are wholly within<br />
the the native title claim area of<br />
the Barngarla people. In addition<br />
to its mineral exploration activities,<br />
<strong>OneSteel</strong> operates four mines in<br />
the Middleback Ranges which are<br />
also within the native title claim<br />
area of the Barngarla people. These<br />
exploration and mining activities are<br />
Left to right: <strong>OneSteel</strong>’s Manager Mineral Resources Don Dart,<br />
Deputy Chairman Barngarla Native Title Land Management Committee<br />
Elliot McNamara, Chairman Barngarla Native Title Land Management Committee<br />
Howard Richards, Barngarla Legal Representative Philip Teitzel, <strong>OneSteel</strong> General<br />
Manager <strong>Sustainability</strong> Jim White<br />
undertaken in accordance with all<br />
legal and statutory requirements,<br />
including all legal and statutory<br />
obligations in relation to Aboriginal<br />
heritage and native title.<br />
<strong>OneSteel</strong> also continues to support<br />
the local Aboriginal community by<br />
sourcing some of its contract mining<br />
services requirements from the<br />
Walga Mining Company. The Walga<br />
Mining Company is a contract mining<br />
services business whose priority is<br />
to provide employment to Aboriginal<br />
people in the mining industry. The<br />
Walga Mining Company provided<br />
contract mining services to <strong>OneSteel</strong><br />
during the past financial year and<br />
has continued to do so in the current<br />
financial year.<br />
Case study<br />
Our Actions to Build<br />
a Sustainable Future<br />
University of New South Wales<br />
Extensive collaboration between the University of New South Wales<br />
(UNSW) and <strong>OneSteel</strong> is increasingly gaining momentum to further<br />
support student research and development. This financial year saw<br />
a further $50,000 contribution to the second research effort as part<br />
of the Australian Research Council Linkage Project program, which<br />
went towards steelmaking research and development at UNSW. The<br />
Australian Research Council matches a component of the funds<br />
pledged by industry, which ultimately not only increases the amount<br />
received by UNSW but also the developmental benefits this provides<br />
to its students. Since the early 2000s, <strong>OneSteel</strong> has contributed<br />
$500,000 to steelmaking research at UNSW and as much again<br />
in mentoring, access to our facilities and guidance in real industry<br />
projects. <strong>OneSteel</strong> and UNSW can further strengthen the relationship<br />
with an additional pledge of funding over the next five years<br />
beginning in 2011.
36<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Economic<br />
1 2<br />
Our Approach<br />
Economic Value Management<br />
at <strong>OneSteel</strong><br />
As a listed ASX company <strong>OneSteel</strong><br />
has a range of governance<br />
processes in place at a board level<br />
to help manage the creation and<br />
distribution of economic value. For<br />
further information on the overall<br />
governance and management of<br />
<strong>OneSteel</strong> please refer to our <strong>2010</strong><br />
Annual <strong>Report</strong>.<br />
Our Performance<br />
Our Results for the <strong>2010</strong> financial year are detailed in <strong>OneSteel</strong>’s Annual<br />
<strong>Report</strong>. The following are the results at a glance:<br />
Statutory FY10 $M FY09 $M Change %<br />
Sales Revenue 6,205 7,242 (14)<br />
EBITDA 638 597 7<br />
EBIT 423 395 7<br />
Net Profit After Tax 258 230 12<br />
Operating Cashflow 602 368 64<br />
Net Debt 964 1,224 21<br />
Gearing<br />
(net debt/net debt + equity) 18% 22% (4 pts)<br />
Earnings per share<br />
(weighted average) 19.5c 22.6c (14)<br />
Underlying FY10 $M FY09 $M Change %<br />
Sales Revenue 6,205 7,242 (14)<br />
EBITDA 618 661 (7)<br />
EBIT 414 461 (10)<br />
Net Profit After Tax 241 215 12<br />
Operating Cashflow 653 365 79<br />
Net Debt — including Hedging 1,007 1,305 23<br />
Gearing — including Hedging<br />
(net debt/net debt + equity) 18% 23% (5 pts)<br />
Earnings per share —<br />
including Hedging (weighted<br />
average) 18.2c 21.2c (14)<br />
The following table is prepared to show the “Direct economic value generated”<br />
for the <strong>2010</strong> financial year in accordance with the GRI framework using data<br />
extracted from the company’s financial statements.<br />
Direct economic value generated<br />
Revenues<br />
(Total Income)*<br />
Economic value distributed<br />
Operating<br />
costs<br />
Employee<br />
wages and<br />
benefits<br />
Payments<br />
to providers<br />
of capital^<br />
Description FY10 FY09<br />
Net sales plus revenues<br />
from financial investments<br />
and sale of assets 6,260.9 7,307.8<br />
Payments to suppliers,<br />
non‐strategic investments,<br />
royalties, and facilitation<br />
payments**<br />
Total monetary outflows<br />
for employees — current<br />
payments<br />
(5,605.4) (7,029.8)<br />
All financial payments<br />
made to the providers of<br />
the organisation’s capital (212.0) (343.8)<br />
Payments to<br />
government + Gross taxes 47.0 (66.3)<br />
Community<br />
Investments OneCommunity 0.2 0.2<br />
Community<br />
Investments<br />
Other voluntary<br />
contributions and<br />
investment of funds in the<br />
broader community 0.3 0.4<br />
Total (5,769.9) (7,439.3)<br />
Economic<br />
value retained<br />
* Total Income, Note 4 Full Financial <strong>Report</strong><br />
** Cash Flow Statement — Payments to<br />
suppliers and employees<br />
Economic value generated<br />
less Economic value<br />
distributed 489.8 (131.5)<br />
^ Interest and other costs of finance paid<br />
(Cash flow) + dividends (Note 23)<br />
+ Cash Flow Statement — Income Taxes paid
37<br />
Economic<br />
Economic<br />
1 2<br />
Actions and Risks of Building<br />
a Sustainable Future<br />
Emissions Trading Scheme (ETS)/<br />
Carbon Tax<br />
<strong>OneSteel</strong>’s steelmaking operations<br />
are emissions–intensive and trade–<br />
exposed, as they compete with<br />
international competitors, many<br />
of which are not subject to any<br />
carbon costs.<br />
If an ETS or Carbon Tax is introduced<br />
by the Australian Government,<br />
which is not certain, <strong>OneSteel</strong> will be<br />
exposed to additional operating costs<br />
that will have an adverse impact on<br />
the financial performance of <strong>OneSteel</strong>.<br />
The extent of this impact, however,<br />
remains uncertain as it will dependent<br />
on the design of the scheme or tax<br />
and the level of assistance <strong>OneSteel</strong><br />
may be eligible for, neither of which is<br />
currently known.<br />
Minerals Resource Rent Tax (MRRT)<br />
<strong>OneSteel</strong> is a miner and seller of iron<br />
ore and also uses iron ore internally<br />
for steel production.<br />
If the proposed MRRT is introduced,<br />
it will have an adverse impact on the<br />
financial performance of <strong>OneSteel</strong>.<br />
However, the extent of this impact<br />
is uncertain as it is dependent<br />
on the final form of the MRRT, if<br />
it is introduced, and whether the<br />
tax will apply to materials used<br />
internally by our steelworks. It<br />
is our understanding that the<br />
MRRT is not intended to affect the<br />
Whyalla Steelworks.<br />
Environment<br />
The severe drought conditions in<br />
Australia may impact on industrial<br />
water allocations. Any restriction<br />
on <strong>OneSteel</strong>’s access to water may<br />
have a material adverse impact on<br />
its business operations and financial<br />
performance. Primary risk comes<br />
through government regulation and<br />
programs, secondarily through social<br />
responsibility and company local<br />
environmental track record.<br />
<strong>OneSteel</strong>’s operations are subject<br />
to environmental and planning<br />
laws and regulations in each of the<br />
jurisdictions in which it operates.<br />
A risk of material environmental<br />
liability may exist in relation to<br />
former sites including where<br />
<strong>OneSteel</strong> has provided indemnities<br />
in connection with the divestment of<br />
sites and existing sites as a result of<br />
site contamination.<br />
<strong>OneSteel</strong> exports over<br />
six million tonnes of<br />
iron ore to overseas<br />
steelmakers.<br />
Primary risk comes through<br />
government regulation & programs,<br />
secondarily through social<br />
responsibility & company local<br />
environmental track record
38<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
GRI Index<br />
1 2<br />
STANDARD DISCLOSURES PART I: Profile Disclosures<br />
1. Strategy and Analysis<br />
Profile<br />
Disclosure Description Cross-Reference<br />
1.1 Statement from the most senior decision-maker of Managing Director’s Introduction<br />
the organization<br />
2. Organizational Profile<br />
Profile<br />
Disclosure Description Cross-Reference<br />
2.1 Name of the organization. <strong>OneSteel</strong><br />
2.2 Primary brands, products, and/or services. Annual <strong>Report</strong>:<br />
— About <strong>OneSteel</strong><br />
2.3 Operational structure of the organization, including<br />
main divisions, operating companies, subsidiaries,<br />
and joint ventures.<br />
Annual <strong>Report</strong>:<br />
— Operational Overview<br />
— Controlled Entities<br />
2.4 Location of organization’s headquarters. <strong>OneSteel</strong> Limited<br />
Level 40 259 George Street SYDNEY<br />
NSW 2000 Australia<br />
T. +61 2 9239 6666 F. +61 2 9251 3045<br />
2.5 Number of countries where the organization operates,<br />
and names of countries with either major operations or<br />
that are specifically relevant to the sustainability issues<br />
covered in the report.<br />
2.6 Nature of ownership and legal form. Annual <strong>Report</strong>:<br />
— Controlled Entities<br />
2.7 Markets served (including geographic breakdown,<br />
sectors served, and types of customers/beneficiaries).<br />
Annual <strong>Report</strong>:<br />
— About <strong>OneSteel</strong><br />
The <strong>2010</strong> <strong>OneSteel</strong> <strong>Sustainability</strong> <strong>Report</strong> covers domestic<br />
operations only unless otherwise stated.<br />
Annual <strong>Report</strong>:<br />
— About <strong>OneSteel</strong><br />
— Review of Operations<br />
2.8 Scale of the reporting organization. Safety & People:<br />
— Our Human Resources Performance<br />
Economic:<br />
— Our Performance<br />
Annual <strong>Report</strong>:<br />
— About <strong>OneSteel</strong><br />
2.9 Significant changes during the reporting period<br />
regarding size, structure, or ownership.<br />
Annual <strong>Report</strong>:<br />
— Calendar of Events<br />
2.10 Awards received in the reporting period. Annual <strong>Report</strong>:<br />
— Calendar of Events<br />
Safety & People:<br />
— External Environment<br />
3. <strong>Report</strong> Parameters<br />
Profile<br />
Disclosure Description Cross-Reference<br />
3.1 <strong>Report</strong>ing period (e.g., fiscal/calendar year) for<br />
FY<strong>2010</strong><br />
information provided.<br />
3.2 Date of most recent previous report (if any). Preface<br />
3.3 <strong>Report</strong>ing cycle (annual, biennial, etc.) Annual<br />
3.4 Contact point for questions regarding the report or<br />
its contents.<br />
3.5 Process for defining report content. About this <strong>Report</strong><br />
3.6 Boundary of the report (e.g., countries, divisions,<br />
subsidiaries, leased facilities, joint ventures, suppliers).<br />
See GRI Boundary Protocol for further guidance.<br />
3.7 State any specific limitations on the scope or boundary<br />
of the report<br />
3.8 Basis for reporting on joint ventures, subsidiaries, leased<br />
facilities, outsourced operations, and other entities that<br />
can significantly affect comparability from period to<br />
period and/or between organizations.<br />
3.10 Explanation of the effect of any re-statements of information<br />
provided in earlier reports, and the reasons for such restatement<br />
(e.g.,mergers/acquisitions, change of base years/<br />
periods, nature of business, measurement methods).<br />
3.11 Significant changes from previous reporting periods in<br />
the scope, boundary, or measurement methods applied<br />
in the report.<br />
3.12 Table identifying the location of the Standard Disclosures<br />
in the report.<br />
4. Governance, Commitments, and Engagement<br />
sustainabilityreport@onesteel.com<br />
<strong>OneSteel</strong> Limited<br />
Level 40 259 George Street SYDNEY<br />
NSW 2000 Australia<br />
T. +61 2 9239 6666 F. +61 2 9251 3045<br />
About this <strong>Report</strong>:<br />
— Boundary<br />
About this <strong>Report</strong>:<br />
— Scope and Materiality<br />
— Boundary<br />
See footnotes in graphs and tables<br />
Preface<br />
Preface<br />
About this <strong>Report</strong><br />
GRI Index<br />
Profile<br />
Disclosure Description Cross-Reference<br />
4.1 Governance structure of the organization, including<br />
committees under the highest governance body<br />
responsible for specific tasks, such as setting strategy<br />
or organizational oversight.<br />
4.2 Indicate whether the Chair of the highest governance<br />
body is also an executive officer.<br />
4.3 For organizations that have a unitary board structure, state<br />
the number of members of the highest governance body<br />
that are independent and/or non-executive members.<br />
4.4 Mechanisms for shareholders and employees to<br />
provide recommendations or direction to the highest<br />
governance body.<br />
<strong>Sustainability</strong> Governance<br />
Annual <strong>Report</strong>:<br />
— Corporate Governance Statement<br />
Annual <strong>Report</strong>:<br />
— Corporate Governance Statement<br />
Annual <strong>Report</strong>:<br />
— Corporate Governance Statement<br />
4.14 List of stakeholder groups engaged by the organization. About this <strong>Report</strong><br />
4.15 Basis for identification and selection of stakeholders with About this <strong>Report</strong><br />
whom to engage.<br />
Annual <strong>Report</strong>:<br />
— Continuous Disclosure and Shareholder Communication
39<br />
GRI Index<br />
STANDARD DISCLOSURES PART III: Performance Indicators<br />
Economic<br />
Performance<br />
Indicator Description Cross-Reference<br />
EC1<br />
Direct economic value generated and distributed, Economic:<br />
including revenues, operating costs, employee<br />
— Our Performance: Direct Economic<br />
compensation, donations and other community<br />
Value Generated<br />
investments, retained earnings, and payments to capital Community:<br />
providers and governments.<br />
— Our Performance<br />
Annual <strong>Report</strong>:<br />
— Key Financials<br />
EC2<br />
Financial implications and other risks and opportunities<br />
for the organization’s activities due to climate change.<br />
<strong>Sustainability</strong> Governance at <strong>OneSteel</strong><br />
Customer & Market:<br />
— Our Performance<br />
— Actions to Build a Sustainable Future<br />
(including PIT Case Study)<br />
Economic:<br />
— Actions and Risks of Building a<br />
Sustainable Future<br />
Annual <strong>Report</strong>:<br />
— Finance and Risk Management<br />
Environmental<br />
Performance<br />
Indicator Description Cross-Reference<br />
EN2 Percentage of materials used that are recycled<br />
Environment:<br />
input materials.<br />
— Our Performance: Recycled Materials<br />
EN3 Direct energy consumption by primary energy source. Environment:<br />
— Our Performance: Energy Consumption<br />
EN6<br />
EN7<br />
Initiatives to provide energy-efficient or renewable<br />
energy based products and services, and reductions<br />
in energy requirements as a result of these initiatives.<br />
Initiatives to reduce indirect energy consumption and<br />
reductions achieved.<br />
Environment:<br />
— Actions to Build a Sustainable Future<br />
— <strong>OneSteel</strong> Manufacturing Energy<br />
Reduction Projects<br />
Environment:<br />
— Actions to Build a Sustainable Future<br />
— <strong>OneSteel</strong> Manufacturing Energy<br />
Reduction Projects<br />
EN8 Total water withdrawal by source. Environment:<br />
— Our Performance: Water Consumption<br />
EN9<br />
EN12<br />
Water sources significantly affected by withdrawal<br />
of water.<br />
Description of significant impacts of activities, products,<br />
and services on biodiversity in protected areas and areas<br />
of high biodiversity value outside protected areas.<br />
Environment:<br />
— Murray River<br />
Environment:<br />
— Our Performance: Biodiversity<br />
& Rehabilitation<br />
EN13 Habitats protected or restored Environment:<br />
— Our Performance: Biodiversity<br />
& Rehabilitation<br />
EN16<br />
Total direct and indirect greenhouse gas emissions<br />
by weight.<br />
Environment:<br />
— Our Performance: Greenhouse<br />
Gas Emissions<br />
EN23 Total number and volume of significant spills. Environment:<br />
— Our Performance: <strong>OneSteel</strong>’s<br />
Environmental Compliance<br />
Further<br />
Explanation<br />
Fully<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed<br />
Further<br />
Explanation<br />
Partially<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed<br />
Partially<br />
<strong>Report</strong>ed<br />
Partially<br />
<strong>Report</strong>ed<br />
Partially<br />
<strong>Report</strong>ed<br />
Partially<br />
<strong>Report</strong>ed<br />
Partially<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed<br />
EN26<br />
Initiatives to mitigate environmental impacts of products<br />
and services, and extent of impact mitigation.<br />
EN28 Monetary value of significant fines and total number<br />
of non-monetary sanctions for non-compliance with<br />
environmental laws and regulations.<br />
Social: Labour Practices and Decent Work<br />
Community:<br />
— Our Performance: Consultation<br />
and Engagement<br />
Environment:<br />
— Our Performance: <strong>OneSteel</strong>’s<br />
Environmental Compliance<br />
Performance<br />
Indicator Description Cross-Reference<br />
LA1<br />
LA3<br />
LA7<br />
LA13<br />
Total workforce by employment type, employment<br />
contract, and region.<br />
Benefits provided to full-time employees that are not<br />
provided to temporary or part-time employees, by major<br />
operations.<br />
Rates of injury, occupational diseases, lost days, and<br />
absenteeism, and number of work-related fatalities by region.<br />
Composition of governance bodies and breakdown of<br />
employees per category according to gender, age group,<br />
minority group membership and other indicators of diversity.<br />
Safety & People:<br />
— Our Human Resources Performance<br />
Annual <strong>Report</strong>:<br />
— Employee Benefits<br />
Safety & People:<br />
— Our Safety Performance<br />
Safety & People:<br />
— Our Performance<br />
Social: Human Rights<br />
Performance<br />
Indicator Description Cross-Reference<br />
MM5 Total number of operations taking place in or adjacent Community:<br />
to Indigenous Peoples’ territories, and number and — Whyalla Whyallina Indigenous Group<br />
percentage of operations or sites where there are formal and the Walga Mining Company<br />
agreements with Indigenous Peoples’ communities.<br />
Social: Society<br />
Performance<br />
Indicator Description Cross-Reference<br />
SO1 Nature, scope, and effectiveness of any programs<br />
and practices that assess and manage the impacts<br />
of operations on communities, including entering,<br />
operating, and exiting.<br />
SO8 Monetary value of significant fines and total number of<br />
non-monetary sanctions for non-compliance with laws<br />
and regulations.<br />
Social: Product Responsibility<br />
Performance<br />
Indicator Description Cross-Reference<br />
PR6<br />
PR9<br />
Programs for adherence to laws, standards, and voluntary<br />
codes related to marketing communications, including<br />
advertising, promotion, and sponsorship.<br />
Monetary value of significant fines for non-compliance<br />
with laws and regulations concerning the provision and<br />
use of products and services.<br />
Community:<br />
— Our Approach<br />
— Consultation and Engagement<br />
— Our Actions to Build a Sustainable Future<br />
Environment:<br />
— <strong>OneSteel</strong>’s Environmental Compliance<br />
Customer & Market:<br />
— Product Certification and Compliance<br />
Customer & Market:<br />
— Product Certification and Compliance<br />
MM11 Programs and progress relating to materials stewardship. <strong>Sustainability</strong> Governance at <strong>OneSteel</strong><br />
Customer & Market:<br />
— Our Performance<br />
— Our Actions to Build a Sustainable Future<br />
Economic:<br />
Actions and Risks of Building a<br />
Sustainable Future<br />
Fully<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed<br />
Further<br />
Explanation<br />
Partially<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed<br />
Partially<br />
<strong>Report</strong>ed<br />
Partially<br />
<strong>Report</strong>ed<br />
Further<br />
Explanation<br />
Fully<br />
<strong>Report</strong>ed<br />
Further<br />
Explanation<br />
Fully<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed<br />
Further<br />
Explanation<br />
Fully<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed<br />
Fully<br />
<strong>Report</strong>ed
40<br />
<strong>OneSteel</strong><br />
<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2010</strong><br />
Glossary & Abbreviations<br />
Glossary<br />
AS/NZS3679.1 Australian and New Zealand standard for<br />
hot rolled structural sections and bars<br />
AS1163 Australian standard for cold-formed structural<br />
steel hollow sections<br />
AS1885.1 1990 Australian standard for classification<br />
of injuries<br />
AS3679 As part of the latest revision of AS 3679,<br />
a permanent rolled-in mark to identify the mill of<br />
manufacture has been introduced as a mandatory<br />
requirement.<br />
BAMTEC BAMTEC involves prefabricating steel ‘carpets’<br />
for reinforcing, greatly improving speed, quality and<br />
safety in construction.<br />
BD023 1163 Australian Standards Committee. This Joint<br />
Australian/New Zealand Standard was prepared by Joint<br />
Technical Committee BD-023, Structural Steel.<br />
Billet Section of cast steel approximately 127mm to<br />
175mm square and 12 meters long which is used to<br />
produce rod and bar.<br />
Blast furnace Furnace used for converting iron ore into<br />
pig iron.<br />
Boundary Refers to scope of the report. The <strong>2010</strong><br />
<strong>OneSteel</strong> <strong>Sustainability</strong> <strong>Report</strong> includes information and<br />
data from approximately 90% of sites under <strong>OneSteel</strong>’s<br />
operational control.<br />
CO 2<br />
Carbon dioxide<br />
Coke Carbonised coal used in blast furnaces to produce<br />
steel or the solid product resulting from the destructive<br />
distillation of coal in an oven or closed chamber or by<br />
imperfect combustion, consisting principally of carbon:<br />
used chiefly as a fuel in metallurgy to reduce metallic<br />
oxides to metals.<br />
CRU London based consulting firm that provides<br />
business information and market analysis in the areas<br />
of non-ferrous metals, steel and ferro-alloys and wire<br />
and cable.<br />
Electric Arc Furnace (EAF) Converts scrap steel into<br />
molten steel.<br />
Employee initiated turnover rate Number of<br />
employees who voluntarily leave <strong>OneSteel</strong><br />
Grade Refers to composition and physical properties<br />
of steel<br />
GreenStar® <strong>OneSteel</strong> worked with the Green Building<br />
Council of Australia as part on their Steel Expert<br />
Reference Panel to revise the GreenStar steel credit to<br />
drive more sustainable use of steel in construction.<br />
Hematite A type of iron ore<br />
Integrated steelworks An integrated steelworks uses<br />
blast furnace and basic oxygen steelmaking technology<br />
to manufacture steel from iron ore.<br />
Loss Time Injury Frequency Rate (LTIFR)<br />
A statistical measure of safety performance.<br />
A lost time injury is an injury which is attributable to a<br />
workplace incident and which results in at least one full<br />
shift of work being lost at some time (not necessarily<br />
immediately) after the shift during which the injury<br />
occurred. Lost time injury frequency rate is the number<br />
of lost time injuries per million hours worked and is<br />
calculated as follows: lost time injury frequency rate<br />
equals number of lost time injuries per reporting<br />
period times one million, divided by hours worked per<br />
reporting period<br />
Magnetite Iron Ore Type of iron ore used for<br />
pellet processing<br />
Materiality Refer to ‘Boundary’.<br />
Mpa Grade Unit of pressure/stress<br />
Medical Treatment Injury Frequency Rate (MTIFR)<br />
A medical treatment injury is an injury which is<br />
attributable to a workplace incident, required medical<br />
treatment (including restricted work) and results in less<br />
than a full shift of work being lost. Injuries which result<br />
in at least one full shift of work being lost are classified<br />
as lost time injuries. The medical treatment injury<br />
frequency rate is the number of medical treatment<br />
injuries per million hours worked and is calculated as<br />
follows: medical treatment injury frequency rate equals<br />
number of medical treatment injuries per reporting<br />
period times one million, divided by hours worked per<br />
reporting period.<br />
Ore Mineral bearing rock<br />
Pellet Plant The pellet plant takes iron ore and<br />
produces hard balls of iron ore that can be fed into<br />
the blast furnace<br />
Post-consumer scrap Scrap arising from end-of-life<br />
consumer items<br />
* Where possible, definitions align with previous <strong>OneSteel</strong> Annual <strong>Report</strong>s<br />
Post-industrial scrap Scrap arising from industrial/<br />
manufacturing processes, other than those on-site<br />
Raw steel Raw steel is produced at the Whyalla<br />
Steelworks and the Sydney Steel Mill and is cast in the<br />
form of billet, bloom and slab steel.<br />
Rod and Bar Rod and bar is a semi-finished product<br />
that can be used for further value-added products such<br />
as wire, reinforcing steel, grinding media, posts etc.<br />
Safety observations Whereby employees are asked to<br />
assess day-to-day operations for safe working conditions<br />
Scope 1 Direct emissions generated. Emissions that are<br />
the release of greenhouse gases into the atmosphere as a<br />
direct result of an activity, or series of activities (including<br />
ancillary activities) that constitute the facility.<br />
Scope 2 Indirect emissions generated. Emissions<br />
that are the release of greenhouse gases into the<br />
atmosphere as a direct result of one or more activities<br />
that generate electricity, heating, cooling or steam<br />
that is consumed by the facility but do not form part<br />
of the facility.<br />
Scrap Post consumer and post-industrial steel waste<br />
Sheet and coil Sheet and coil is purchased from<br />
outside steel producers and processed and distributed<br />
by <strong>OneSteel</strong> or used in the manufacture of pipe and tube.<br />
Structural steel Large steel sections used for frames<br />
for buildings, factories, bridges and other infrastructure.<br />
Total scrap Combination of internal returs, post<br />
consumer and post industrial scrap<br />
Townswater Water withdrawn from a climate<br />
sensitive source that provides water to regional<br />
and urban populations<br />
Waste Hierarchy Reduce, Reuse and Recycle<br />
YoungSteelers Accelerated development program for<br />
<strong>OneSteel</strong> Graduates<br />
Abbreviations<br />
ACCC Australian Competition and Consumer Commission<br />
ACOR Australian Council of Recyclers<br />
AGIC Australian Green Infrastructure Council<br />
ASI Australian Steel Institute<br />
BER Building and Education Resolution<br />
BPIC Building Product Innovation Council<br />
CEO Chief Executive Officer<br />
CPRS Carbon Pollution Reduction Scheme<br />
CSIRO Commonwealth Scientific Industrial Research Organisation<br />
DENR Department of Environment and Natural Resources<br />
ECG Environment Consultation Group<br />
EEO Energy Efficiencies Opportunities<br />
EITE Emission Intensive Trade Exposed<br />
EPA Environmental Protection Authority<br />
ESCs Energy Savings Certificates<br />
FY Financial Year<br />
GBCA Green Building Council of Australia<br />
GFC Global Financial Crisis<br />
GRI Global <strong>Report</strong>ing Initiative<br />
ICN Industry Capability Network<br />
ILO International Labour Organisation<br />
ktCO2-e/yr Kilotons of carbon dioxide emissions per year<br />
KWh Kilowatt hour<br />
LCA Life Cycle Analysis<br />
LCI Life Cycle Inventory<br />
MACC Marginal Abatement Cost Curve<br />
NGERS National Greenhouse and Energy Reduction<br />
NIEIR National Institute of Economic Industry Research<br />
OHS Occupational Health and Safety<br />
OHS&E Occupational Health, Safety & Environment Committee<br />
OSTEN <strong>OneSteel</strong> Technical Energy Network<br />
PIT Polymer Injection Technology<br />
PJ Petajoules<br />
SIFE Students in Free Enterprise<br />
SMR South Middleback Ranges<br />
TPA Trade Practices Act<br />
TJ/py Terajoules per year<br />
ug/m3 Micrograms per cubic meter of air<br />
UNSW University of New South Wales<br />
VMP Voluntary Management Plan<br />
WAC Water Abatement Curve<br />
WACC Whyalla Abatement Cost Curve<br />
WSA Worldsteel Association<br />
ZUDS Zero Usable Discharge Strategy
d e s i g n e d a n d p r o d u c e d b y d e s i g n at e i n v e s to r<br />
Credit: Some Whyalla photography by Nigel Cooper, Media Pit
sustainabilityreport@onesteel.com<br />
<strong>OneSteel</strong> Limited<br />
Level 40 259 George Street<br />
SYDNEY<br />
NSW 2000 Australia<br />
T: +61 2 9239 666<br />
F: +61 2 9251 3045