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Hydro Annual Report 2011b

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54<br />

vIABIlItY perForMAnCe<br />

Resource management<br />

See the big picture<br />

“If we assume that it is good to use aluminium – partly because it<br />

is a light metal that impacts the environment less when it is used<br />

than other materials – then it should be acceptable to extract<br />

aluminium’s raw material, bauxite. However, the extraction of<br />

bauxite will often be controversial since it is found mainly in<br />

tropical areas where there are rain forests with rich biodiversity<br />

and extensive carbon storage. The extraction must take place with<br />

great awareness of the responsibilities that it entails, so that the<br />

biological footprint that is left can be as small as possible.”<br />

Peter Johan Schei,<br />

Director, Fridtjof Nansen Institute<br />

Read full interview at www.hydro.com/reporting2011<br />

The ongoing loss of biodiversity and degradation of ecosystems<br />

represent long-term risks for the industry and society at<br />

large. We see a need for more sustainable frameworks and are<br />

participating in several initiatives, including the WBCSD Ecosystem<br />

program. In 2011, <strong>Hydro</strong> became a member of the<br />

International Council of Mining and Metals, which gives us<br />

access to their principles and guidelines on the environment as<br />

well as an arena for sharing best practices.<br />

Through our revised environmental strategy in 2011, we have<br />

established an aspiration toward no net loss of biodiversity.<br />

Land management and reforestation<br />

<strong>Hydro</strong>’s bauxite mining involves removing topsoil and overburden<br />

by machinery to extract the bauxite deposits below.<br />

The overburden at Paragominas is normally 8-to-10 meters<br />

Monitoring and improving<br />

reforestation efforts<br />

<strong>Hydro</strong> has a 5 percent stake in MRN, in Pará in Brazil, and is an<br />

offtaker of 45 percent of its production. The mine is within the<br />

borders of the Saracá-Taquera national forest, which is a part of<br />

the Amazon rain forest. Before starting extraction of bauxite, the<br />

existing vegetation is cleared. Any clearance is subject to approval<br />

from the federal environment authorities ICMbio. Reforestation<br />

starts as soon as a mining area is closed. The company owns the<br />

mining rights to 25,000 hectares, of which 7,000 are so far affected.<br />

Of these, 4,000 hectares have been reforested. The oldest areas<br />

have reached a profile that reminds of the original state. Still, many<br />

more years are needed to reach a level where the flora and fauna<br />

are recovered. Beehives were installed in February 2011 in the<br />

reforested areas older than 10 years, as a means to accelerate this<br />

process. In addition to increased pollination, the beehives provide<br />

extra income to the surrounding communities of traditional Amazon<br />

peoples. The collection of seeds from local species and planting of<br />

the seedlings also are sources of income for the local communities.<br />

The areas are thoroughly surveyed. Since 1997, about 50 Master’s<br />

theses and 25 PhD theses have studied the flora and fauna in the<br />

reforested areas. MRN has used 450 different plant species in total<br />

in the rehabilitation. Today, 120 different species are normally used,<br />

including epiphytes like bromeliads and orchids.<br />

thick. As soon as the bauxite has been extracted from one area,<br />

the overburden and topsoil are refilled and the process for<br />

rehabilitation can begin. Bauxite extraction started in Paragominas<br />

in 2006. The reforestation program started in 2009 and<br />

will continue untill beyond 2040 in the present area. A reclamation<br />

program is established where the landscape is systematically<br />

shaped back to how it looked before mining. The<br />

topsoil is then added and seedlings are planted in a grid in the<br />

areas prepared. The seedlings will establish a forest system of<br />

the same structure as that which is typical in the pristine forest<br />

in the areas. It will still take a few years to acheive a balance<br />

between land impacted by mining operations and land rehabilitated.<br />

The present tailings dams will be full between 2015<br />

and 2020, and work will soon be initiated to optimize the closure<br />

and reforestation of these tailings.<br />

The Paragominas mine is located in what is normally recognized<br />

as the deforestation belt around the central Amazon<br />

River. The mining area has been exposed to selective logging<br />

and clear cutting of forest for development of subsequent pasture<br />

land. In terms of land use, the municipality of Paragominas<br />

has seen, over a period of almost 20 years, more than 30<br />

percent reduction in its forest cover, an increase of 6 percent in<br />

secondary forests and about 20 percent of the area is still pasture.<br />

However, in recent years the municipality has been in the<br />

forefront in Brazil in halting the illegal and uncontrolled<br />

logging.<br />

When bauxite extraction is finalized, rehabilitation is started.<br />

<strong>Hydro</strong>’s Paragominas mine started production in 2006, and<br />

the reforestation program started in 2009. We have identified<br />

improvement potential with regard to reforestation and wildlife<br />

management at Paragominas, and are evaluating possible<br />

adjustments. In total 853 hectares of land was disturbed during<br />

2011 and approximately 4,700 hectares since the start of<br />

the mining operations. In 2011 we rehabilitated 142 hectares,<br />

while about 400 hectars have been rehabilitated in total since<br />

the operations started in 2006.<br />

A reforestation assessment performed by <strong>Hydro</strong> in 2011<br />

reviewed areas close to the mine which have been exposed to<br />

selective logging. The study found that the main structure of<br />

the forest ecosystems was still in place, even though most of<br />

the commercially interesting trees had been logged. We have<br />

identified improvement potential related to reforestation and<br />

wildlife management at Paragominas, and are evaluating possible<br />

adjustments.<br />

<strong>Hydro</strong> has exploration activities in several areas in Brazil. In<br />

connection with such activities, <strong>Hydro</strong> has been alleged to<br />

have been involved in illegal logging in a preservation area in<br />

Minas Gerais, and is under public investigation.<br />

<strong>Hydro</strong>’s minority share in the bauxite mine and alumina refinery<br />

Alpart in Jamaica was sold in September 2011.

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