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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

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