Minmetals Resources Limited 2011 Sustainability Report (PDF)

CASE STUDY: Approval of the Dugald River Environmental Impact StatementIn January 2011, MMG released its Environmental ImpactStatement (EIS) on the proposed Dugald River project. InNovember 2011, the EIS assessment report advised thatthe project was suitable to proceed to the next stage ofthe approval process. Approval of the full EnvironmentalManagement Plan is expected around the middle of2012. The release of the EIS was an important step forthe project and followed the completion of a feasibilitystudy in 2008, which was updated in 2010.Dugald River is an important part of our strategy to builda leading global diversified base metals company. As aresult of the impending closure of several major zincmines over the next few years, including our Centurymine, which is expected to close around 2016, thetiming of the development of Dugald River is important.It is expected that Dugald River will produce concentratescontaining approximately 200,000 tonnes of zinc,25,000 tonnes of lead and 900,000 ounces of silverannually over a 23-year mine life.An important element of the current phase of thisproject is consultation between MMG, the localcommunity and other key stakeholders. In 2012, we willestablish a local office in Cloncurry to assist with thisconsultation process.In December 2011, Dugald River was included in MMR’sMineral Resources and Ore Reserves for the first time.Coinciding with this, the MMR Board was pleased toapprove expenditure of A$157 million to develop thenext stage of the project. In addition, the EnvironmentalImpact Statement for the mine received approval fromthe former Queensland Department of Environment andResource Management (DERM).The next stage will progress project activities up toreceipt of the full Environmental Management Plan.Major work will include detailed engineering,metallurgical testwork, long lead-time major equipmentprocurement, continuation of early site works andunderground decline development. Key localinfrastructure development including load-out, powerand accommodation will also be advanced. Followingcompletion of this phase the MMR Board will considerfinal approval of project development and construction.The Dugald River was included in the scopeof the environmental impact assessment.SUSTAINING OUR ECONOMIC PERFORMANCE RESPECTING OUR ENVIRONMENT WORKING WITH OUR STAKEHOLDERS HEALTH AND SAFETY OUR PEOPLE63