Minmetals Resources Limited 2011 Sustainability Report (PDF)

Management reporting and decision-makingGood management reporting is necessary to facilitateeffective decision-making and improve our ability tointegrate future acquisitions smoothly.In 2011, a program commenced to review and upgradeour information technology (IT) systems required toeliminate reliance on legacy systems and supportmanagement reporting and decision-making. There wasa significant step-up in investment in IT in 2011, relatingto the transformation of key management systems toprovide a foundation for the company’s simplificationand growth including essential infrastructure. Work hascommenced on a standardised and simplified businessmanagement system, underpinned by common globalprocesses and standard SAP mining platform. Thistransformational program aims to improve managementresponsiveness and overall operational efficiency.The economic and social contribution of mining isimportant to our stakeholders and we anticipate willcontinue to be a challenge in the future. Mining andexploration businesses pay royalties and other fees togovernments in order to explore for and extract mineralsresources. The investment and long term focus requiredto bring these projects to production is significant.Companies must ensure that the benefits of theiroperations are reinvested to all stakeholders, be theyshareholders, employees or local communities. However,companies need to be assured of a long-term economicreturn on their investment. This is an issue that MMGwill continue to monitor as governments around theworld continue to assess their expectations of theminerals industry.CASE STUDY: Mine rescue teams at MMGIn 2011, MMG’s high-performing mine rescue teamsreceived a number of commendations for their effortsafter competing at various Australian state-run minerescue competitions.Century’s Emergency Response Team excelled at theNorth West Mine Rescue Challenge at the end ofOctober. The team won first place in the Road AccidentRescue, second place in the Vertical Height Rescue(Ropes) and third place in the First Rescue categoriesof the challenge.Also in October 2011, the Golden Grove Mine RescueTeam achieved an outstanding result at the Chamberof Minerals and Energy’s annual Underground MinesRescue Competition held at Mount Charlotte inKalgoorlie, Western Australia, finishing second overall.The team produced consistent results, placing in the topthree in nine out of the 11 available awards. Adding tothe success, first-time team Captain Frank Vink wasrewarded with the competition’s Captain’s Award foroutstanding leadership.In November 2011, in the Tasmanian EmergencyRescue Competition held at Vedanta Copper Mines,the Rosebery Mine Rescue Team secured the overallchampionship for the third time in four years. Led byElmar Van Breda, who secured the Captain’s Award, theteam produced excellent results, placing first in six ofnine categories: safety, first aid, team skills, confinedspace, vehicle extraction, and underground rescue.2012 challengesThe business will continue to confront challenges in2012 as it develops a number of the opportunities inits project pipeline, focusing on:» Progressing the Dugald River Project, moving fromthe feasibility phase into project development;» The transition and integration of Anvil’s businessprocesses, systems and standards into MMG.» Progressing the Izok Corridor Project, moving frompre-feasibility to feasibility phase; and» Continuing to target acquisition opportunities withthe aim to complete at least one material acquisitionper year.Golden Grove’s Mine Rescue Team providedlocal fire fighters with personnel, resources andmachinery during the recent local bush fires72