Responsibility Report - Peabody Energy

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environmental responsibility | 36Restoring Lands for Greater Community BenefitThrough Operation Green Earth, Peabody began restoration activities two decadesbefore the U.S. Surface Mining Control and Reclamation Act became law in 1977,resulting in the planting of tens of millions of trees on restored lands. Peabodybelieves sustainability is achieved by developing and implementing environmentalsolutions that return lands for higher community benefit through best practices andstakeholder collaboration.In 2011, Peabody restored more than 5,100 acres of land and planted more than360,000 trees. Peabody’s environmental leadership is advanced by a team of expertswho continue to be honored by government officials and peers as among the bestin the field. For example, Peabody Energy’s former Big Sky Mine in Colstrip, Mont.,is a national environmental model. The U.S. Department of the Interior’s Office ofSurface Mining recognized Peabody’s restoration efforts at the mine with its 2011Director’s Award, a prize that is typically given to only one coal producer annuallyfor outstanding achievement in land and habitat restoration. The honor recognizesdramatic improvements to erosion control, rangeland productivity, water supply andwildlife habitat at the 2,200-acre site.In the United States, Peabody has accelerated community-based partnerships topromote environmental excellence. Over the past five years, for example, Peabody’sNorth Antelope Rochelle Mine in Wyoming has collaborated with neighboringlandowners to maintain, establish, enhance, or restore almost 30,000 acres ofimportant habitat for the greater sage grouse and other sagebrush-dependent wildlifespecies. The company also reclaimed more than 15,000 acres of prime farmland forcommunity use In 2011.Peabody is building on this progress and setting a new standard for rehabilitation(reclamation) in Queensland and New South Wales, Australia. An area is classified asrehabilitated in Australia when grading, topsoiling and seeding have been completed.A total of 1,830 acres were rehabilitated during 2011, and the company is focusingon rapidly expanding the quantity and quality of future rehabilitation through theimplementation of standardized best practices and new technologies.The company has set an aggressive goal to reclaim or rehabilitate 90 percent ofavailable land at its Australian operations by 2015. Peabody’s work in the Surat Basinof southeast Queensland is representative of how the company partners with locallandowners to achieve its objectives. The Surat region is rich in natural resources,and until recently agriculture has been responsible for most local economic activity.Rapid resources industry growth in the basin has strained relationships between thelocal community, agricultural users and industry. Intensive lobbying prompted theEnvironmental PerformanceDollars in Millions Except Where Indicated2011 2010 2009 2008 2007Reclamation Performance Bonds Approved $1,721.3 $1,624.4 $1,594.2 $1,514.0 $1,073.4Federal Coal Reclamation Fees $59.9 $56.3 $55.4 $59.2 $61.2Volumes of Hazardous Waste Recycled (Tons) 505 1,462 1,030 518 37Total Volume Recycled Materials (Tons) 16,596 21,256 16,298 14,856 13,999Water Treatment Costs (Dollars in Thousands) $45.0 $96.0 $162.0 $160.0 $253.0Disturbed Land (Acres) 6,618 8,114 6,550 6,183 7,570Permanently Reclaimed Land (Acres) 5,113 5,212 3,695 3,767 7,945Cumulative Developed (Acres) 152,658 144,485 134,931 136,646 107,511Cumulative Permanently Reclaimed (Acres)* 92,616 86,047 80,742 83,194 72,271Bond Release All Phases $41.9 $54.6 $35.0 $26.1 $36.3Number of Trees Planted 364,360 489,516 243,381 251,411 527,048Forestland Established (Acres) 148 308 136 310 711*The decrease in cumulative permanently reclaimed acres from 2008 to 2009 was due to selling theBaralaba Mine and repermitting some reclaimed areas at the Wild Boar and Bear Run mines.Peabody planted about 360,000 trees and established a variety of properties,including 148 acres of forested land, in 2011. The proportion of forest andfarmland restored varies from year to year depending on community needs andprevious use. In the United States, 100 percent of the company’s reclamationtargets were met in three out of four operating regions.Queensland and New South Wales governments to independently develop strategicland use legislation that would limit resource development. With many farmersunconvinced their interests will be adequately protected by legislation, governmentsalso are under pressure to introduce further limits on resource-industry projects.When the Wilkie Creek Mine in the Surat Basin came across an area ofuncharacteristically fertile black alluvial soils during mining preparation, theenvironmental team saw an opportunity to capitalize on Peabody’s U.S. rehabilitationexpertise. Employees forged a partnership with a local landholder and created andnurtured a two-hectare sorghum crop to a successful harvest, earning significantrecognition in the community. Despite uneven rainfall, the team obtained a yield fromthe crop of 1.8 metric tons per hectare in 2011 – an impressive result by industrystandards – and raised A$1,000 in sorghum sales. These funds were combined withroyalties the mine received from timber and gravel sales and donated to the nearbyDalby Public Hospital for the purchase of much-needed medical equipment.
Corporate and Social responsibility | 37Other major 2011 awards received in the United States include:• The Excellence in Surface Mining honor awarded to the North Antelope RochelleMine (NARM) for creating superior habitat and protection for multiple raptorspecies from the Wyoming Department of Environmental Quality.• The annual Reclamation Award granted to NARM by the Interstate MiningCompact Commission for excellence in compliance, contemporaneousreclamation, drainage control, bond release and innovation.• The Environmental Stewardship Award presented to the Twentymile Mine bythe Colorado Mining Association for its innovative recycling program and overallenvironmental excellence.Colorado’s most productive mining operation, Twentymile developed an employeeawareness handbook to train employees in environmental stewardship and toencourage recycling best practices. The mine recycled more than 840,000 poundsof solid and 150,000 pounds of liquid waste in 2011.Major awards received in Australia include:• The Environmental and Community Excellence Award given by the New SouthWales Minerals Council to the Metropolitan Mine for its innovative recycling of coalmine waste rock into disused underground workings.• The People’s Choice Award given by the New South Wales Minerals Council tothe Metropolitan Mine for its innovative recycling of coal mine waste rock.Major awards received in Asia include:• The Best Eco Mine Award from the Mongolian Mining Journal honoringPeabody’s partnership for establishing 16 hectares of hardy pastureland near thenorthern city of Bulgan, Mongolia, as part of the first coal mine restoration projectin Mongolia’s history.Through a joint venture, the company led a team of scientists, engineers andgovernment specialists in transforming Ereen, a former mine site, into acres ofproductive grazing land. The company also created a community well and pond forlivestock. The area is four times more productive than nearby native lands.• The “Distinguished Environmentalist” designation given by Mongolia’s Ministryof Nature, Environment and Tourism to Vern Pfannenstiel, Peabody Energy’sSenior Manager of International Reclamation, for leadership to establish bestscientific practices in land restoration to protect Mongolia’s environment.Peabody Energy’s former Big Sky Mine in the U.S. West was recognized by theU.S. Department of the Interior for best practices to restore mined land and waterfeatures to a pristine condition.
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