Minmetals Resources Limited 2011 Sustainability Report (PDF)

PerformanceThe graph below provides a breakdown of our socialinvestment across our local host communities in anumber of different investment areas. In 2011, a totalof A$11,326,767 (approximately 2% of net profitafter tax) was invested in our local host communities,with nearly half of this sum going into local (non-staff)training and education initiatives. This was a significantincrease on 2010 investment and demonstrates ourcontinued commitment to invest in the developmentof our communities.Post-closure community expectationsWe engage local communities to help build their futurebeyond mine closure, including developing sustainablelocal economies, land rehabilitation and maintenanceof the former mine site.Responsibility for our mining sites reaches beyond extractionoperations, to include closure, care and maintenance, andrehabilitation. Consideration of ongoing host communityimpacts post-closure, and the local financial impacts ofclosure itself, are important for our long-term strategy andplanning. We work with our host communities to developsustainable economies aside from our mine operationsand to engage with them in closure planning.Consultation on a draft multidisciplinary and risk-basedclosure standard commenced in 2011, and is expectedto be finalised in 2012. A business-wide Closure SteeringCommittee was also established with endorsement fromthe Executive Committee. The committee has thefollowing objectives:» Promote a multidisciplinary approach to ensure thatclosure is consistently managed across the entireMMG project lifecycle;SOCIAL INVESTMENT IN 2011$14,280$2,450,194$1,351,428$272,106$1,064,481$2,241,246$5,150,457$35,573$386,658$2,939,740 $1,701,644Capacity buildingCompensationDonationsSponsorshipsEducation and trainingLocal business developmentinitiativesCommunity developmentinitiatives2010 TOTAL 2011 TOTALNote: In 2010, compensationdata were not included in socialinvestment, and donations andsponsorships were combined.Compensation comprises paymentfor land acquisition.» Improve the governance and communication of closureactivities across our operations to ensure that lessonsare shared and closure risks are actively minimisedduring mine life;» Provide an integrated body that takes “carriage” for theclosure standard beyond safety, health and environment;» Actively manage provisions and research anddevelopment; and» Focus on closure planning at Century as a priority, witha mine life to approximately 2016.Mine closure planning includes landform design andrehabilitation. During 2012, we plan to review and updateour rehabilitation management standard to align withthe ICMM Principles and provide specific direction onrehabilitation expectations.During 2011, a Legacy Risk Management Frameworkwas endorsed by the Board SHEC Committee and willbe driven by a Corporate Legacy Risk Committee to:» Establish objectives for the management of legacyrisks (e.g. minimise liabilities, enhance reputationand reduce demands on operating sites' resources);» Provide triggers for the identification of new legacyrisks as the business grows;» Provide continuity for the ongoing management oflegacy risks;» Develop an exit strategy for those legacy risks thatare not generating value and/or revenue;» Implement management plans for legacy sites that havea strategic business objective (i.e. exploration); and» Adequately quantify the legacy risk and their associatedprovisions.MMG recognises that if legacy risks are not appropriatelymanaged there may be:» Negative impacts on environment and public health;» Exposure to legal liability or financial loss in the form ofa statutory liability to remediate or otherwise clean uplegacy sites, or claims by third parties alleging propertydamage or personal injury;» Impact on the reputation of MMG in local communitiesand/or more broadly;» Continued impacts to the bottom line, where financialprovision for known legacy risk must continue;» Continued reaction rather than pro-active initiative andawareness of potential risks; and» Delays in future development approvals until regulatorsare satisfied that surrounding legacy sites are beingmanaged effectively.Note: In 2010, compensation data was not included in social investment,and donations and sponsorships were combined. Compensation comprises40 payment for land acquisition.