Minmetals Resources Limited 2011 Sustainability Report (PDF)

CASE STUDY: MMG Climate Change StudyWe participate in the National Greenhouse and EnergyReporting Scheme (NGERS) and the Energy EfficiencyOpportunities (EEO) Program for our Australianoperations, and collect equivalent data for our Seponmine in Laos. We commissioned a climate change riskassessment through our internal audit partner in 2010.As an outcome of this process, the highest-rated riskwas lack of a clear Climate Change Policy (CCP) for thecompany. In November 2011, MMG adopted a CCPmandating a study be undertaken to look at energyefficiency opportunities, prepare MMG for a carbon priceand examine the implications of setting a voluntaryemissions reduction target. These three objectives formthe basis of the MMG Climate Change Study.The main objectives of this study have been endorsedby the SHEC Committee and the Energy and ClimateChange Steering Committee in June 2011 and include:Outcome 1: Site EEO assessments (includesSepon) – Identify and screen Greenhouse Gas(GHG) reduction projects and meet AustralianFederal Government EEO obligations;Outcome 2: Carbon legislation planning – Evaluateand prioritise GHG reduction projects and prepareMarginal Abatement Cost Curves; andOutcome 3: Voluntary emissions reduction targets –Describe potential and favoured target scenariosavailable to MMG.The Climate Change Study demonstrates MMG'scommitment to the ICMM Principles, and to establish acomprehensive and rigorous climate change managementprogram of policy principles and leading practice.BiodiversityMining activity can impact the habitats of native flora andfauna. Offset projects to balance impacts on biodiversityfrom operations represent best practice.The land area held by MMG fluctuates regularly. Atthe end of 2011, total land area managed globally was2,121,241 hectares. Some of this land is adjacent to areasof high biodiversity value and high-use value for localcommunities. Effective and sensitive management of thisland and our impacts on surrounding ecosystems istherefore a high priority for us.Biodiversity management plans are in place at Sepon,Golden Grove, and Rosebery. A plan is currently beingdeveloped for Century. In addition, we have a number ofbiodiversity offset projects operating to rehabilitate andsupport biodiversity in other disturbed areas in exchangefor areas that are disturbed by our operations. We arecurrently investigating options for managing biodiversityoffsets where we can strive to achieve no net biodiversityloss and are also developing biodiversity managementplans for all mining operations during the next three years.During 2012, we plan to review and update our existingbiodiversity management standard to align with theICMM Principle 7, to contribute to biodiversityconservation, and the International Finance Corporation(IFC) Performance Standard 6: biodiversity conservationand sustainable management of living natural resources.Land disturbance and rehabilitationAt the beginning of 2011, a total of 5,183 hectares ofland was in use and classified as “disturbed” (as detailedbelow). During 2011, a further 127 hectares weredisturbed and 11 hectares rehabilitated, resulting ina 2011 closing balance of 5,298 hectares of disturbedland. This compares with 2010 where the openingbalance was 4,878 hectares.SiteTotal Land Disturbednot yet Rehabilitated(2011 opening balance)(Hectares (Ha))Total 2011Disturbed Land(Ha)Total 2011Rehabilitated Land(Ha)Total Land Disturbednot yet Rehabilitated(2011 closing balance)(Ha)Century 2,873 0 0 2,873Sepon 1,282 26.99 0 1,308Rosebery 2.52 0 0 2.4Golden Grove 992.8 91.9 0.88 1,083.9Exploration 32.7 7.9 9.7 30.9Total MMG 5,183 127 11 5,29858